Which pricing method is used to capture market share by charging low introductory prices?

Select one:

a. None of these

b. Peak load pricing

c. Penetration pricing

d. Price gouging

e. Price skimming

Managers determine what a customer is willing to pay for a product or service under which one of these pricing methods?

Select one:

a. Life-cycle

b. Market-based

c. None of these

d. Cost-based

e. Activity-based

A value chain is the sequence of business processes in which:

Select one:

a. costs are determined with activity-based principles

b. all non-value-added activities are eliminated

c. none of these

d. value is added to a product or service

e. managers determine prices

A major drawback of cost-based pricing is that it:

Select one:

a. ignores the full cost of a product

b. can be used only when all costs have been incurred

c. ignores variable costs and includes only fixed costs

d. ignores the relationship between customer demand and price

e. none of these