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Questions and Answers
What is the purpose of price in marketing?
What is the purpose of price in marketing?
- To drive product innovation
- To determine a firm’s market share and profitability (correct)
- To create brand coolness
- To establish customer loyalty
What is customer value-based pricing based on?
What is customer value-based pricing based on?
- Market demand
- The seller’s cost
- Buyers’ perceptions of value (correct)
- The product's features
What is the main focus of good-value pricing?
What is the main focus of good-value pricing?
- Emphasizing premium quality
- Striking a balance between benefits and price (correct)
- Maximizing profit margin
- Setting the lowest possible price
What does value-added pricing emphasize?
What does value-added pricing emphasize?
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When is price considered in customer value-based pricing?
When is price considered in customer value-based pricing?
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Study Notes
The Purpose of Price in Marketing
- The purpose of price is to capture the value that a product or service provides to customers
Pricing Strategies
- Customer Value-Based Pricing: based on the perceived value that customers place on a product or service
- Good-Value Pricing: focuses on offering a product or service at a price that is perceived as a good value by the customer
- Value-Added Pricing: emphasizes the additional benefits or value that a product or service provides to customers
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Description
Test your knowledge of pricing strategies and customer value with this quiz based on Chapter 9 of "Marketing: An Introduction Seventh Canadian Edition." Explore the concept of premium pricing using Apple as a case study and understand the significance of pricing in capturing customer value.
