Ch 14

refers to the rate of percentage change in quantity demanded attributable to change in price

• cost/benefit analysis

• customer demand

• price elasticity of demand

• perceived value

• competitive edge

Examples of typical add-on benefits include:

• (a). joint working relationships

• (b). commitment

• (c). supplier flexibility

• (d). All of the above.

• (e). Only (a) and (b).

______ represents a business customer’s overall assessment of the utility of a relationship with a supplier based on the benefits received and sacrifices made.

• core benefits

• add-on benefits

• customer value

• relationship commitment

• total cost analysis

In B2B marketing, ‘price skimming’ refers to:

• rapidly decreasing prices

• setting low price to enter the market

• gradually lowering prices over time

• setting high price initially and then lowering it over time

General plant overhead is an example of _____ costs.

• direct traceable

• indirect traceable

• general

• attributable

The business marketer will find that total revenue will ____ if the price is decreased and demand is price inelastic.

• rise a little

• rise sharply

• remain the same

• fall

a formal invitation to potential suppliers to submit written, sealed bids.

• closed bidding

• open bidding

• in-line bidding

• E-commerce

• comparative bidding

In B2B marketing, what is cost plus pricing?

• setting prices based on the competition

• setting price below cost to enter a new market

• adding a standard markup to the cost of the production

• reducing prices based on customer demand

A skimming strategy is appropriate when:

• (a). there is high price elasticity of demand.

• (b). strong threat of imminent competition.

• (c). the firm has a distinctly new product in a monopoly period.

• (d). All of the above.

• e. Only (b) and (c)

Which of the following is key factor in B2B pricing

• emotional appeal of the product

• celebrity endorsements

• the cost structure of the product

• he color scheme of the product