ENT 5.01

Which is an example of a business using a flexible pricing policy?

• Establishing prices that are competitive

• Lowering prices during bad economic times

• Setting prices as low as possible

Why do some new companies set their selling prices as low as they can?

• To get market share as fast as possible

• To eliminate all possible competition

• To earn a high return on investment

• To quickly make a large profit

The price function often influences the place function by determining which information?

• When the product is made

• Why the product is shipped

• How the product is advertised

• Where the product is sold

One reason why the target market of a business affects its pricing is because consumers in each target market usually perform which action?

• Monitor the industry standard

• Expect a large product mix

• Prefer products in the growth stage

• Judge the value of products differently

When the costs of raw materials increase considerably, a business is likely to perform which action?

• Maintain similar profit margins as its competitors

• Implement a long-term markup pricing policy

• Continue following the same marketing strategies

• Increase the selling price of a product

During which stage of the product life cycle is a business likely to try to stabilize the price of the product?

• Expansion

• Introductory

• Obsolescence

• Maturity

Why would a manager of a local business keep track of the prices that similar businesses in the area are charging?

• To remain competitive

• To improve advertising

• To promote image

• To offer new services

What is the purpose of sales-oriented, pricing objectives?

• To increase the total amount of sales income

• To create profits for the business

• To increase the return on investment

• To guarantee the survival of the business