3.1

Question 1

Branding strategy

Answer 1

Carrying well-known brand names to attract customers who are loyal to those brands

Question 2

Cost-plus pricing

Answer 2

Setting a price based on production cost plus markup

Question 3

Cost-push inflation

Answer 3

Raising prices as a result of rising production costs

Question 4

Deception

Answer 4

False or misleading claims made about the quality, price, or purpose of a product

Question 5

Deflation

Answer 5

Decrease in the general level of prices for goods and services

Question 6

Demand-pull inflation

Answer 6

Higher prices as a result of consumers wanting to buy more goods and services than producers supply

Question 7

Direct advertising

Answer 7

Distribution of product information directly to consumers

Question 8

Disinflation

Answer 8

Rising prices with the rate of increase slowing down

Question 9

Economizing

Answer 9

Saving as much as possible and spending money only when necessary

Question 10

Hyperinflation

Answer 10

Rapidly rising prices that are out of control

Question 11

Inflation

Answer 11

Increase in the general level of prices for goods and services

Question 12

Low-balling

Answer 12

Advertising a basic service at an unusually low price and then claiming additional repairs or services are needed

Question 13

Market-based pricing

Answer 13

Setting prices to be competitive with prices of similar products currently being sold

Question 14

Markup

Answer 14

The percentage a mount added to production cost to obtain the price of an idem

Question 15

Normal profit

Answer 15

A profit that allows a business to survive and grow

Question 16

Optimizing

Answer 16

Getting the highest value for the money spent

Question 17

Pop-up ads

Answer 17

Internet ads that open a new window that pops onto the screen in front of the webpage being viewed

Question 18

Rational buying

Answer 18

Process of selecting goods and services based on need, want, and logical choices

Question 19

Real-cost inflation

Answer 19

Rising prices due to scarce resources or increased difficulty in obtaining resources

Question 20

Space-shifting

Answer 20

Copying the contents from one form of media to another for personal use

Question 21

Target audience

Answer 21

A specific group of people who are likely to buy the product

Question 22

Time-shifting

Answer 22

Recording video or audio for later viewing or listening

Question 23

Time value of money

Answer 23

A concept that says a dollar you receive in the future will be worth less than a dollar you receive today

Question 24

Value-based pricing

Answer 24

Setting prices based on how much consumers are willing to pay

Question 25

Advertising

Answer 25

Informing consumers about products and encouraging them to buy