Marketing 4.01-4.03 Review

Front

A buyer is willing to pay $9.99 for a product. If the seller is willing to accept that amount, then $9.99 is the

Back

exchange price.

Front

With what do many customers associate price?
Options: a. Quality, b. Discounts, c. Comfort, d. Location

Back

Quality

Front

A downturn in the economy has forced a home builder to lower its prices. This company has __________ prices.

Back

flexible

Front

To set prices, businesses must price the physical product and all of its associated

Back

services.

Front

When companies increase the quality of materials used in the production of their products, their prices will tend to be

Back

higher.

Front

Can pricing affect a business’s image?

Back

Yes; a business with low prices may have a discount image.

Front

A company decides to save money by shipping its products by truck instead of by plane. Which marketing mix element is pricing influencing in this example?

Back

Place

Front

When Mariah sets prices for her company, she strives to maximize profit, which is considered a(n)

Back

pricing objective.

Front

Companies A, B, and C sell similar products. Together, they recently decided to sell their products for the same price. In what unethical activity are the businesses engaging?

Back

price fixing

Front

A business charges a small company a higher price for a product than it charges a large company for the same product. What does this represent?

Back

price discrimination