MM51-Unit 4 Marketing Study Guide

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.

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

• realistic
• flexible
• competitive
• inflexible

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

In which of the following businesses would a separate department most likely be responsible for establishing prices:

• Small boutique
• Local clothing store
• Chain store
• Hair salon

Which of the following is a product factor that sandwich shops consider when deciding on the price to charge for menu items:

• Method of delivery
• Amount of advertising
• Cost of food
• Type of décor

When companies increase the quality of materials used in the production of their products, their prices will tend to be

• reduced.
• the same.
• higher.
• lower.