Unit 4.0 Pricing

Front

A buyer is willing to pay $9.99 for a product. If the seller is willing to accept that amount, then $9.99 is the

Back

exchange price.

Front

Sellers must carefully set prices so that buyers feel they are receiving __________ value for their money.

Back

optimum

Front

What might happen if a business’s customers feel that they are not getting the most value for their money?

Back

Customers spend money elsewhere.

Front

Can prices be set too low?

Back

Yes, customers may feel quality is too low.

Front

A downturn in the economy has forced a home builder to lower its prices. This company has __________ prices.

Back

flexible

Front

To set prices, businesses must price the physical product and all of its associated:

Back

services.

Front

In which of the following businesses is the business owner usually responsible for setting prices: Walmart, Sears, Java Joe’s Coffee Shop, Macy’s

Back

Java Joe’s Coffee Shop

Front

In which of the following businesses would a separate department most likely be responsible for establishing prices: Small boutique, Local clothing store, Chain store, Hair salon

Back

Chain store

Front

Which of the following is a product factor that sandwich shops consider when deciding on the price to charge for menu items: Method of delivery, Amount of advertising, Cost of food, Type of décor

Back

Cost of food

Front

When companies increase the quality of materials used in the production of their products, their prices will tend to be

Back

higher.