CPM CPM Value-Based Pricing & Customer Segmentation 2

Question 1

Which method estimates the maximum price a customer will pay by measuring attribute trade-offs?

Accepted Answer

Conjoint analysis

Answer

Conjoint analysis asks respondents to choose among product profiles, revealing implicit willingness-to-pay for each attribute.

Question 2

In value-based pricing, 'differentiation value' refers to:

Accepted Answer

The monetary worth of features superior to the next best alternative

Answer

Differentiation value is the positive (or negative) dollar value your product delivers beyond what the next best alternative offers.

Question 3

A company using 'good-better-best' product architecture primarily aims to:

Accepted Answer

Segment customers by value perception and maximize total revenue

Answer

Good-better-best ladders allow a firm to serve multiple willingness-to-pay tiers while upgrading customers over time.

Question 4

Which of the following best describes 'price sensitivity' in CPM methodology?

Accepted Answer

The degree to which demand changes in response to price changes

Answer

Price sensitivity measures how responsive buyers are to price changes, closely related to the price elasticity of demand.

Question 5

Segment-specific pricing is legally permissible when:

Accepted Answer

Price differences reflect cost differences or do not harm competition

Answer

Under the Robinson-Patman Act, price differences between buyers of like goods must be justified by cost differences or competitive necessity.

CPM - Certified Pricing Manager Practice Test