Price is the cash expenditure plus taxes that consumers have to pay for a good or service. True False 2.
The key to successful pricing is to match the product with the consumer's perception of value. True False 3.
Price is the only part of the marketing mix that does not generate costs. True False 4.
If Brandon buys hats for his store for $5 each and sells them for $15 each, he is using a keystoning pricing strategy. True False 5.
Rarely is the lowest-price product offering the dominant brand in a given market. True False 6.
A demand curve shows the relationship between income and demand. True False …show more content…
that offers the opportunity for an oligopoly.
B. that is subject to gray market manipulation.
C. that leads to competition.
D. that generates revenue.
E. all of these.
Price is often the most challenging of the four Ps to manage, partly because it is often _________________________ in developing marketing strategies.
A. the least important aspect
B. treated as an afterthought
C. calculated by senior consultants
D. difficult to calculate markups
E. the subject of cross-shopping differentiation
Historically, prices were:
A. the center of attention in almost all marketing strategies.
B. analyzed and changed constantly.
C. calculated to minimize contribution per unit.
D. allowed to vary seasonally as cross-shopping tendencies fluctuated.
E. rarely changed except in response to radical shifts in market conditions.
Chet knows the pro shops selling his golf photography will "keystone" his products. He also knows sales will decline significantly if the retail price is greater than $200. The maximum wholesale price Chet can charge is:
It cannot be determined from this information.
Using "keystoning" as a pricing strategy:
A. creates undue complexity for retailers.
B. avoids having to participate in pure competition.
C. ignores consumers' sensitivity to changes in prices.
D. allows marketers