Price Strategies

Question 1

one of the most obvious ways of influencing the target market to buy a product or service is by __________________

Answer 1

setting a low price

Question 2

an entrepreneur must see to it that the price is “_______” in order to make a profit, sustain the business, and let it grow, and continue serving the needs of the target market

Answer 2

right

Question 3

the charge business set for its products or services; exchange rate you put on all the tangible and intangible aspects of the business

Answer 3

price

Question 4

sends a message about your product or service, creating a perceived value

Answer 4

pricing

Question 5

businesses tend to cover their costs lowly, affecting their overall growth and targets; there is a likelihood that businesses lose opportunity to earn more

Answer 5

if the price is low

Question 6

demand or appeal can be affected if ____________. unless businesses offe an exclusive product, customers tend to shift more to affordable substitutes when prices go high

Answer 6

price is high

Question 7

most common method of pricing techniques; derived from how much is the cost in manufacturing/assembling a product (plus labor) then adding desired markup

Answer 7

cost-based pricing

Question 8

this pricing strategy is used when business firms have identified competitors and such, they do not deviate their prices from competitors; the reason behind this steategy is to minimize the likelihood of switching to competing firms

Answer 8

competitor based pricing

Question 9

you can price your product _______ to establish in your target marker’s mind that your product or service is far better or more superior and is of higher value

Answer 9

higher

Question 10

you can price your product or service at ________ to show your market that for the same amount of money, they can get a better product

Answer 10

the same level

Question 11

you can price your product _______ as an introductory offer

Answer 11

lower

Question 12

used by firms in setting the price of a product or service based in the economic value it offers to the customers; firms are able to capture the maximum amount a customer is willing to pay, significantly improving company profits

Answer 12

value-based pricing

Question 13

allows you to set a high price when the demand is strong and a low price when the demand is weak

Answer 13

demand-oriented pricing