What is the primary motive of all firms when it comes to pricing?

• To reduce production costs

• To increase market share

• To attract more customers

• To maximize profit

In which stage of the product life cycle is price unlikely to be a lead variable?

• Decline stage

• Maturity stage

• Growth stage

• Introduction stage

What is the most flexible tool in the marketing mix ?

• Price

• Product

• Distribution

• Promotion

What is the importance of price in building the image of a product?

• Consumers believe high priced products are of high value

• Price has no impact on product image

• Consumers do not consider price when evaluating product value

• Consumers believe low priced products are of high value

When is price used as a lead variable in the marketing mix?

• When the product is in the growth stage

• When the product is in the introduction stage

• When the product is in the decline stage

• When the product is in the maturity stage

What is the role of price in countering competition?

• To reduce market share

• To prevent new competitors from entering the market

• To decrease demand for the product

• To increase production costs

What is the importance of price in sales promotion?

• Price is an important tool of sales promotion

• Price is not important in sales promotion

• Price is used to increase long-term sales

• Price is used to decrease sales volume

What is the primary determinant of profit ?

• Product quality

• Price

• Promotion strategy

• Market share

What is the role of price in targeting a particular segment of customers ?

• Price is used to target a particular segment of customers

• Price is not used to target specific customer segments

• Price is used to discourage customer segmentation

• Price is used to target all customer segments equally

What is the importance of understanding customer needs in relation to pricing?

• Understanding customer needs has no impact on pricing

• Understanding customer needs can help identify opportunities to raise prices

• Understanding customer needs is only important for product development

• Understanding customer needs is irrelevant in pricing decisions