This quiz tests practical concepts about cost-plus vs. value-based. Answer each question to gauge your mastery.
Cost‑plus pricing adds a fixed ______ to unit cost to arrive at selling price.
tax
utility score
margin percentage
discount
This method ensures cost recovery plus profit. It’s simple but ignores customer willingness.
Value‑based pricing starts with estimating customer‑perceived ______.
markup
breakeven
unit cost
benefit
Price is set below perceived value yet above costs. It requires deep market insight.
Which approach typically yields higher margins for differentiated products?
value‑based
penetration
loss‑leader
cost‑plus
When perception of value exceeds cost, firms can charge premiums. Cost‑plus might under‑price.
Cost‑plus pricing risks leaving money on the table when perceived value is ______ than cost.
equal
much lower
negative
much higher
Ignoring willingness to pay may price too low. Competitors may still price higher.
Dynamic airline ticket pricing is a real‑time example of ______ pricing.
full‑cost
two‑part tariff
value‑based
markup
Algorithms adjust fares to reflect demand value. They optimize revenue per seat.
Public utilities often use cost‑plus models due to regulatory focus on ______ recovery.
cost
surge
value
auction
Transparent mark‑ups justify rates. Regulators vet allowable returns.
In cost‑plus, calculating accurate ______ cost allocation is critical.
demand elasticity
reference price
perceived value
overhead
Misallocated overhead distorts price accuracy. It could erode profit margins.
Value‑based pricing requires researching customer ______ elasticity.
exchange‑rate
labor
demand
supply
Elasticity guides how price changes affect volume. It informs optimal point on demand curve.
Cost‑plus pricing is relatively insensitive to competitive ______.
lifetime value
positioning
segmentation
willingness to pay
It prioritizes internal cost structures. Market shifts may make it uncompetitive.
Value‑based pricing aligns directly with the marketing mix element of ______.
perceived value proposition
production scheduling
tax accounting
risk pooling
Pricing communicates the benefit promised. It must match brand narrative.
Starter
Keep exploring the fundamentals.
Solid
Nice work—refine the finer points.
Expert!
Outstanding mastery of the topic.
