Chapter 4 The Marketing Mix - Price

Price refers to how much customers have to (a)   for a product.

3Cs of pricing are:

• costs to the business

• customers' willingness to pay

• corporate identity

• competitors' prices

(a)   refers to the amount of money a business pays to buy or produce its products.

A business usually sets a price close to its competitors' price.

• TRUE

• FALSE

Product-line pricing involves

• setting prices just below an even amount.

• setting the prices of optional or accessory products along with the main product.

• setting different prices for different versions of the same product.

• pricing a few related products as a bundle and offering it at a reduced price.

Optional-product pricing involves

• setting prices just below an even amount.

• setting the prices of optional or accessory products along with the main product.

• setting different prices for different versions of the same product.

• pricing a few related products as a bundle and offering it at a reduced price.

Product-bundle pricing involves

• setting prices just below an even amount.

• setting the prices of optional or accessory products along with the main product.

• setting different prices for different versions of the same product.

• pricing a few related products as a bundle and offering it at a reduced price.

Odd-even pricing involves

• setting prices just below an even amount.

• setting the prices of optional or accessory products along with the main product.

• setting different prices for different versions of the same product.

• pricing a few related products as a bundle and offering it at a reduced price.

Discount pricing involves

• setting prices just below an even amount.

• temporarily pricing products below the listed prices in order to increase short-term sales.

• setting different prices for different versions of the same product.

• pricing a few related products as a bundle and offering it at a reduced price.

A business may price its product higher than its competitors if its product is different and perceived to be of a higher (a)   by customers.