Method of Price Setting
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Method of Price Setting

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@WarmerPlutonium

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Questions and Answers

Which pricing method bases the price of a product on the production cost?

  • Cost-based pricing (correct)
  • Value based pricing
  • Competitive based pricing
  • Maximizing Profits

    • What function does price serve when it is used as a symbol for a product's quality?

  • Accessibility function
  • De-marketing function
  • Product-Positioning function (correct)
  • Maximizing Profits

    • How does a high price influence target adopters' perception of a product's quality?

  • It indicates poor quality
  • It leads to casual interest
  • It suggests high quality or prestige (correct)
  • It maximizes the number of target adopters

    • When target adopters use price as a standard for judging quality, what does a low price suggest to them?

    <p>It indicates poor quality</p> Signup and view all the answers

    In social marketing, what might a free product lead target adopters to be in terms of their interest?

    <p>Casual in their interest</p> Signup and view all the answers

    Which of the following is NOT a method of price setting mentioned in the text?

    <p>De-marketing</p> Signup and view all the answers

    What is the primary focus of competitive based pricing?

    <p>Competitors' prices</p> Signup and view all the answers

    Which pricing objective aims at covering the expenses of producing and marketing a product?

    <p>Recovering Costs</p> Signup and view all the answers

    What does value based pricing take into consideration when setting prices?

    <p>Customer perceptions of value</p> Signup and view all the answers

    Which factor affects the ability of target adopters to acquire a social product?

    <p>Accessibility function</p> Signup and view all the answers

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