Reference no: EM132169495
1. Which of the following are reasons marketing managers choose to avoid a pricing strategy based on costs?
A) Prices determined strictly based on costs may be too high for the target market, thereby reducing or eliminating sales.
B) Cost-based pricing ignores demand.
C) If the price is too low, firms may unnecessarily sacrifice additional revenue.
D) All of the options are correct.
2. Factors that affect price elasticity, or how responsive demand will be to a change in price, include all of the following except ________.
A) the availability of substitutes
B) product durability or quality
C) the state of the economy
D) market-skimming pricing strategy
3. Companies like McDonald’s are following ________ pricing strategies by offering value meals and Happy Meals.
A) product bundle
B) captive
C) by-products
D) price adjustment