Marketing 4.01 Quiz

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

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

• Sales increase.

• Customers spend money elsewhere.

• Customers purchase more.

• Sales remain the same

Can prices be set too low?

• Yes; customers may feel quality is too low.

• Yes; customers may feel quality is too high.

• No; the lower the price, the greater the product’s appeal.

• No; the lower the price, the more willing the customer is to buy.

With what do many customers associate price?

• Quality

• Discounts

• Comfort Discounts

• Location

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

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

• features

• services

• physical characteristics

• value

In which of the following businesses is the business owner usually responsible for setting prices:

• Walmart

• Sears

• Java Joe's Coffee Shop

• Macy's