Pricing

The determination of an exchange price acceptable to both the buyer and the seller of a product is called

• pricing.

• promotion.

• place decision.

• product decision.

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

• demand.

• value.

• markdown.

• exchange price.

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

• no

• minimum

• little

• optimum

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

• realistic

• flexible

• competitive

• inflexible

A station across the street is offering gasoline for five cents cheaper per gallon. The other stations in the area decide to lower their prices as well. This is an example of ___________ pricing.

• inflexible

• unrealistic

• competitive

• realistic

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

• reduced.

• the same.

• higher.

• lower.

A company with a high profit margin decides to advertise with a full-page, high-cost magazine ad. This is an example of how pricing influences

• product.

• promotion.

• physical inventory.

• place.

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?

• Promotion

• Product

• Place

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

• advertising goal.

• transportation choice.

• product strategy.

• pricing objective.

Covering costs is a pricing objective related to

• profitability.

• sales.

• competition.

• image.