When the costs of raw materials increase considerably, a business is likely to perform which action?
Maintain similar profit margins as its competitors
Implement a long-term markup pricing policy
Continue following the same marketing strategies
Increase the selling price of a product
Which is an example of a business using a flexible pricing policy?
Establishing prices that are competitive
Lowering prices during bad economic times
Setting prices as low as possible
During which stage of the product life cycle is a business likely to try to stabilize the price of the product?
Expansion
Introductry
Obsolescence
Maturity
What is the purpose of sales-oriented, pricing objectives?
To increase the total amount of sales income
To create profits for the business
To increase the return on investment
To guarantee the survival of the business
One reason why the target market of a business affects its pricing is because consumers in each target market usually perform which action?
Monitor the industry standard
Expect a large product mix
Prefer products in the growth stage
Judge the value of products differently
The price function often influences the place function by determining which information?
When the product is made.
Why the product is shipped.
How the product is advertised.
Where the product is sold.
Why would a manager of a local business keep track of the prices that similar businesses in the area are charging?
To remain competitive
To improve advertising
To promote image
To offer new services
Why do some new companies set their selling prices as low as they can?
To get market share as fast as possible
To eliminate all possible competition
To earn a high return on investment
To quickly make a large profit
