Test Review

Test Review

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What is pricing?

Pricing is a marketing function that involves the determination of an exchange price at which the buyer and seller perceive optimum value for a good or service.

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Why is pricing important?

Effective pricing is important for customer satisfaction and for the continued success of a business.

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What are the characteristics of effective pricing?

Effective prices are realistic (not too high or too low), flexible, and competitive.

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Who sets prices?

Depending on the size of the business, many people may be involved in establishing prices. In a smaller business, the person most often responsible for setting prices is the manager or owner. This person will check competitors’ prices and use the company’s own records to establish prices for the goods and services the business offers. In larger companies, an entire department (part of marketing) is usually responsible for setting prices for the company. The department may use more sophisticated means to determine prices for the company’s products. It may analyze market research, conduct customer surveys, study competitors’ prices, and analyze current and past sales records and trends to help with pricing decisions.

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What factors affect prices?

Many factors, both internal and external, affect the final price decision. These include important influences such as costs, supply and demand, economic conditions, competition, government regulations, channel members, and company objectives and strategies.

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What is a selling price and what all can that include?

The amount a seller charges for a good or service is the selling price. The selling price could include membership dues, college tuition, insurance premiums, bus fair, legal fees. In other words, it is not just the figure shown on the price tag. 

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Why is selling price important to sellers?

Because it shows the customers how much they are selling for and the worth of their product.

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What goals might a business achieve by using profit-oriented pricing objectives?

Earning a lot of money you can also maximize your profits and finally earn return on sales and investments.

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What are the four voice elements to focus on when giving a presentation?

Tone, Pitch/Inflection, Rate, Volume