Review of Pricing

The objective of some firms is to make the most possible immediate profit. This is called

• profit maximization

• being greedy

• short-sighted loss

• cash flow

Companies can use multiple pricing objectives together to achieve their goals.

• TRUE

• FALSE

An illegal pricing practice when competitors agree on certain price ranges within which they set their own prices.

• Price fixing

• Price discrimination

• Price gouging

• Bait-and-switch

Allows customers to compare pricing in relation to a standard unit of measurement to see if they are getting the best deal per unit of measure.

• Price fixing

• Price discrimination

• Price gouging

• Unit Pricing

All the activities used to insure the effective exchange of goods and services between businesses and consumers

• Marketing
• Voluntary Exchange
• Capitalism
• Supply and demand

Considers the needs of customers when planning, pricing, distributing, and promoting a product or service

• Marketing mix

• Voluntary Exchange

• Marketing concept

• Target Market

Which function of marketing determines how much gross profit a business will make on a good or service?

• Pricing

• Distribution

• Promotion

• Risk Management

Can prices be set too low?

• Yes, customers may feel quality is too high.

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

• Yes, customers may feel quality is too low.

• No, the lower the price, the greater the product's appeal.

Businesses in a competitive market might have to charge similar prices to their competitors.

• True

• False

Pricing is important for both:

• Customer Complaints and Company Success

• Customer Satisfaction and Company Success

• Customer Satisfaction and Company Profit Loss