The Role of Price in Marketing

When is price considered a lead variable in the marketing mix?

• When it is not strategically prominent

• When it is the primary variable in attracting and keeping customers

• When it is used to attract and keep customers

• When it is used as a background variable

Which of the following brands is associated with price as a background variable?

• Apple

• Harley-Davidson

• 7-Eleven

• Amazon

How can price be used as a differentiating factor for a product?

• By targeting a particular segment of customers

• By offering value for money

• By offering discounts

• By setting a reasonable price

In which stage of the product life cycle is price unlikely to be a lead variable?

• Introduction stage

• Growth stage

• Maturity stage

• Decline stage

What is the primary motive of all firms when determining the price of a product?

• To regulate the demand for the product

• To build the product image

• To counter the competition

• To earn profit

How does price help in countering competition?

• By increasing the sales volume

• By building the product image

• By preventing new competitors from entering the market

• By offering discounts

What does price often build for a product in the eyes of consumers?

• An image of luxury

• An image of affordability

• An image of low quality

• An image of high value and benefit

What is price often used as in sales promotion?

• A tool for offering discounts

• A tool for increasing sales during a short time period

• A tool for regulating demand

• A tool for increasing market share

What should companies focus on to gain ideas for cost innovations and counter competition?

• Product attributes of high importance to customers

• Product attributes of low importance to customers

• Product attributes of no importance to customers

• Product attributes of medium importance to customers

What is the most flexible tool in the marketing mix?

• Product

• Distribution

• Promotion

• Price