E II - OBJ 3.07 MC

Charise is considering how much to charge for her small business’s products. Charise is involved in

• pricing.

• promotion.

• a place decision.

• a 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

• exchange price.

• demand.

• value.

• markdown.

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

• optimum

• no

• minimum

• little

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

• Customers spend money elsewhere.

• Sales increase.

• 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.

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

• flexible

• realistic

• 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.

• competitive

• inflexible

• unrealistic

• realistic

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

• pricing objective

• advertising goal.

• transportation choice.

• product strategy.

Which area of promotion will pricing affect?

• Advertising budget

• Choice of transportation channels

• Where the product is offered

• Materials used in production

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.