What Does the Price of a Product Tell You? Question Content Area INTRODUCTION: A product's price is very important to an organization and to its customers. The price of a product can have multiple meanings to an organization's customers and can have significant effects on customers' perceptions of a product. Question Content Area INSTRUCTIONS: You will agree with some of these statements and disagree with others. You may find it hard to make a decision, but you should go ahead and make a choice. Record your answers next to the statement according to the following scale: Strongly Disagree (1), Disagree (2), Agree (3), or Strongly Agree (4). Strongly Disagree Disagree Agree Strongly Agree Question 1. A low price means low quality. 2. There is competition that is not based on price. 3. Profit can be determined by deducting total costs from total revenue. 4. A marketer at a company usually is satisfied if the company can reach its breakeven point, which refers to when the costs of producing a product equal the revenue made from selling the product. 5. A high price means high quality. 6. Strong brand loyalty may allow a seller to charge a higher price. 7. When companies compete on a nonprice basis, marketers in one organization do not need to know the prices charged by other organizations. 8. In business organizations, almost all pricing objectives are based on making a certain amount of profit. 9. If the price of gasoline increases by 10 percent, the consumption of gasoline will decline by 10 percent. 10. Price is the most flexible marketing mix element.

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

See similar textbooks

Question Content Area

INTRODUCTION: A product's price is very important to an organization and to its customers. The price of a product can have multiple meanings to an organization's customers and can have significant effects on customers' perceptions of a product.

Question Content Area

INSTRUCTIONS: You will agree with some of these statements and disagree with others. You may find it hard to make a decision, but you should go ahead and make a choice. Record your answers next to the statement according to the following scale: Strongly Disagree (1), Disagree (2), Agree (3), or Strongly Agree (4).

Strongly Disagree	Disagree	Agree	Strongly Agree	Question
				1. A low price means low quality.
				2. There is competition that is not based on price.
				3. Profit can be determined by deducting total costs from total revenue.
				4. A marketer at a company usually is satisfied if the company can reach its breakeven point, which refers to when the costs of producing a product equal the revenue made from selling the product.
				5. A high price means high quality.
				6. Strong brand loyalty may allow a seller to charge a higher price.
				7. When companies compete on a nonprice basis, marketers in one organization do not need to know the prices charged by other organizations.
				8. In business organizations, almost all pricing objectives are based on making a certain amount of profit.
				9. If the price of gasoline increases by 10 percent, the consumption of gasoline will decline by 10 percent.
				10. Price is the most flexible marketing mix element.