ID: A 7. The lowest price at which it is worthwhile for a company to increase th
ID: 384052 • Letter: I
Question
ID: A 7. The lowest price at which it is worthwhile for a company to increase the amount of goods and services it makes available for sale can be determined via a. price-floor pricing. b. cost-plus pricing. The first step in demand-minus pricing is to determine c. markup pricing d. target pricing. 48. return-on-investment requirements. a. b. production and marketing costs. markup requirements for all channel members c. d. final selling price. No bargaining with customers over price is permitted with 49. c. leader pricing d. customary pricing. a one-price policy. a. b. price-floor pricing. According to the price-quality association, a. consumers have price floors but not price ceilings. b. subjective prices do not influence purchase behavior. c. cons 50. sumers may believe that high prices represent high quality and that low prices represent low quality using loss lead ers will increase store traffic and sales. d.Explanation / Answer
Here are my explanations for your questions:
Q47) The answer is Option B, Cost Plus Pricing. This is a method where you determine all the basic costs, overheads, input costs associated with your product, and add a margin to it to determine the selling price. Hence, this gives you an idea of what can be the lowest possible price for a given product/service
Q48) Option D, Final Selling Price. This is the first step in demand minus pricing, where you determine the final selling price and then calculate your way backwards from there to determine the costs associated with the product or service.
Q49) Option A, One Price Policy. This is self explanatory and you might have seen this in shops. A one price policy means the shop offers only one price for a particular product for all customers - there is absolutely no negotiations on this front
Q50) Option C. What the price quality association tells us is that you can expect a correlation between prices and quality - if customers perceive high quality with a product, then they perceive the costs associated with it to be on the higher side, and vice versa. For example - Apple products.