25 Questions
What is the easiest marketing variable to vary among the 4P's?
Price
When setting the price of a product, what is an important consideration related to the nature of the product/service?
Quality of the product/service
What external factors should be considered when setting the price of a product or service?
Economy and government policies
Which factor can influence the price of a product or service based on the text?
Trade margins
What is price in the context of a product or service?
The amount exchanged for the product or service
Why is good pricing strategy important for a business?
To maximize profits on sales of products or services
Why would a customer not buy a product or service priced very high?
Because it exceeds the customer's budget
What does the set price have to cover for a company?
All the company's expenses
What has an intense effect together with product, place, and promotion in both small and big businesses?
Price
What is the outcome of a difficult set of calculations, doing research and understanding the market and risk-taking ability?
Pricing strategy
What is the primary focus of marketing companies according to the text?
Producing the highest possible margin
Who seeks satisfaction for a need or set of needs by buying a product or service?
Customer
What are regarded as elements of price from the customer's viewpoint?
Perceived benefits and perceived costs
What is suggested as a way to increase value for a business, according to the text?
Raising the perceived benefits or lessening the perceived costs of a product
What are the three levels of perceived benefits?
Physical, logical, emotional
Which element is considered flexible within the marketing mix according to the text?
Price
What is the role of price in a society, according to the text?
To control economic health and wealth accumulation
Why might higher prices result in lower profits for a business?
Higher prices may decrease sales volumes, offsetting the higher profit per item
What is the significance of price in businesses, according to the text?
Price affects profit margins and sales volumes
What is price elasticity, as mentioned in the text?
The reaction of consumer buying to a price change
How does society influence the affordability of products such as food and healthcare?
Society adjusts the pricing to make products affordable and available to everyone
What are perceived costs, as stated in the text?
Include money, time, labor, inconvenience, limited choice, and poor service
What does increasing perceived benefits do for a product or service?
Produces value-added to the product or service
What is one of the most noticeable effects of pricing in businesses?
An increase or decrease in sales volume
What is assumed under economic theory about the consequences of price manipulation?
They are rational and predictable
Test your knowledge of pricing strategy with this quiz. Explore different concepts related to setting prices and maximizing profits for products and services.
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