Entrepreneurship 1 Unit 5 Test

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Charise is considering how much to charge for her small business’s products. Charise is involved in

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pricing.

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

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exchange price.

Front

Sellers must carefully set prices so that buyers feel they are receiving __________ value for their money.

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optimum

Front

What might happen if a business’s customers feel that they are not getting the most value for their money?

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Customers spend money elsewhere.

Front

Can prices be set too low?

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Yes, customers may feel quality is too low.

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With what do many customers associate price?

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Quality

Front

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

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services.

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?

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Place

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Long-range forecasting

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Sales forecasting that predicts sales for periods of more than two years; used when making strategic plans to develop new products, enter new markets, build new facilities, etc.

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Market segment

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A group of people who share the same characteristic(s) (e.g., age, nationality, gender)