Marketing Pricing Strategies - Chapter 12

What is the definition of a price for a product or service?

• The amount of money a seller pays to a buyer.

• The amount of money given by a buyer to a seller in exchange for goods or services.

• The cost of production for an item.

• The profit margin a business makes on a sale.

Which of the following are the 4 main components of a Mixed Marketing Strategy?

• People, Process, Physical Evidence, Price

• Product, Price, Place, Promotion

• Planning, Production, Packaging, Placement

• Profit, Positioning, Packaging, People

What is a potential consequence for a shopkeeper who does not correctly calculate pricing techniques?

• Increased customer loyalty due to lower prices.

• Guaranteed long-term business success.

• Bearing a loss or customers paying excessively high prices.

• Automatic adjustment of prices by market forces.

What are some of the raw materials mentioned for calculating the cost of a cup of coffee?

• Water, sugar, and cups.

• Coffee beans, milk, and sugar.

• Tea leaves, milk, and honey.

• Chocolate, cream, and sprinkles.

What is a potential consequence if a business prices its product significantly higher than its competitors?

• Customers will perceive higher quality and buy more.

• Customers will likely choose competitors' products.

• The business will establish itself as a luxury brand.

In a market with high product availability, what is the likely impact on the product's price?

• The price will increase due to higher supply.

• The price will remain stable regardless of availability.

• The price will decrease to clear stock.

• The price will be determined solely by demand.

Which of the following is NOT typically considered a direct factor in calculating the cost price of a product?

• Labor fees

• Machine charges

• Electricity bills

• Competitor's pricing strategy

Why do many online and offline stores price items at $99.99 instead of $100?

• It simplifies accounting and inventory management.

• It is a marketing technique to make the price appear lower and attract customers.

• It reflects a precise calculation of production costs.

• It is a legal requirement for certain product categories.