MKT 4.01, 4.02, & 4.03 Quiz

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

product is called

• pricing

• product decision

• place decision

• promotion 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

• little

• minimum

• optimum

With what do many customers associate price?

• quality

• discounts

• comfort

• location

Can pricing affect a business’s image?

• Yes; a business with low prices may have a discount image.

• Yes; a business with low prices will have a prestigious image.

• No; pricing does not affect a business’s image.

• No; pricing affects only selling and customer decisions.

Which area of promotion will pricing affect?

• Choice of transportation channels

• Advertising budget

• Where the product is offered

• Materials used in production

Covering costs is a pricing objective related to

• profitability

• sales

• competition

• image

Which of the following must a business accomplish through selling price:

• Pay all product costs

• Maintain market share

• Acquire start-up capital

• Company valuation

Selling price helps customers to allocate their money because price determines

• what customers need to purchase.

• the value of products to all purchasers.

• the quality of all goods and services.

• what customers can afford to purchase.

It costs a publishing company $8 to produce a paperback book. The company sells each

paperback it produces for $9.99. The $1.99 difference is known as

• captial

• markup

• demand

• elasticity