To explain: The meaning of the term price and its importance for a firm along with the meaning of the term crypto currency and block chain.
Introduction:
Price: Price is the value of any commodity or any service being offered to the consumer so that the consumer can satisfy the needs and wants.
Crypto Currency is a digital currency which has no physical presence but is available online.
Block chain is a data structure which keeps the transactional information of digital currencies.
Explanation of Solution
Price: Price is the value of any commodity or any service being offered to the consumer so that the consumer can satisfy the needs and wants. This value is in monetary terms. The price of a commodity is fixed by the manufacturer keeping in mind various factors like, demand of the product, the
Importance of price for a firm: “Price” is a critical element of marketing mix. It is important to a firm because of the following reasons-
- Price fixed by a firm affects the profit margin of a firm. A price which is too low that it does not even cover the fixed and variable cost of a firm will not generate enough revenues whereas a price which is too high will force the customers to look for substitute products.
- Price also affects the sales volume of a firm directly, other factors remaining constant.
- Price also affects the image and position of the firm in the market. If the customers find price to be very high, the consumers will gradually leave that firm and eventually the demand will decline.
- A firm can penetrate into the market if the firm keeps the price low in the beginning, other factors being constant.
- Price also affects the other elements of marketing mix. Hence, price fixation is considered to be the most crucial decision for a firm.
The above mentioned points show that why price is so important to any firm.
Crypto currency: Crypto Currency is a digital currency which has no physical presence but is available online. This is different from a regular currency in a way that crypto currency is not a legal tender and is not yet accepted as a mode of payment by everybody. Crypto currency is available in the form of digital coins which are kept in a digital wallet. One can purchase or sell anything provided the other person accepts the payment in crypto currency. This currency is traded like a security is traded in the financial market and likewise a person can make
Block chain:Block chain is a kind of a chain which maintains security and transparency of digital currencies by maintaining information on transactions of such currencies and is connected with a peer to peer network like a chain. Block chain uses various functions and coding which is hard to crack which keeps the data secure from hackers.
Want to see more full solutions like this?
Chapter 10 Solutions
MARKETING:REAL PEOPLE,REAL CHOICES
- Home Depot Marketing and Distribution Strategiesarrow_forwardWrite the best answer in the blank. Here is your word bank: Ego, monetary risk, psychographic, physical risk, demographic, social risk, geographic, functional risk, behavioral, Super Ego, psychological risk, Ikea Effect, Classical Conditioning, Linked Prosperity, Id, J.N.D. Home Depot targets the Professional segment (e.g. contractors, builders etc). They purchase in bulk and generally have specific delivery requirements because of the types of products they purchase. Home Depot uses what basis of segmentation to target their “Pros”: _______________________arrow_forwardThis print ad is targeting a consumer that most likely falls into this Maslow’s Hierarchy of Needs category: a) Self-Actualization b) Physiological Needs c) Love and Belonging d) Safety and Security e) None of the Abovearrow_forward
- Self-image congruence models suggest that we choose products when their attributes match some aspect of the self. Beyonce’s Beehive fan club uses this theory of the self-concept: a) Looking Glass Self b) Influential Self c) Ideal Self d) Extended Self e) None of the abovearrow_forwardAnswer each question below. Use details, specifics, and examples to explain your answer. You should write five sentences at a minimum. Each question is worth 10 points. Question: According to the video watched in class, explain how Ben & Jerry’s use activism to build their brand.arrow_forwardKFC is using what specific type of marketing in this ad: a) Ethical b) Corporate c) Philanthropic d) Consumer e) None of the abovearrow_forward
- Answer each question below. Use details, specifics, and examples to explain your answer. You should write five sentences at a minimum. Question: What did you learn about social media from our class?arrow_forwardAnswer each question below. Use details, specifics, and examples to explain your answer. You should write five sentences at a minimum. Question: Discuss the principles learned in the NPR audio called I Buy Therefore I Am?arrow_forwardThis ad for Real Beauty Production is using what type of Affect: https://www.youtube.com/watch?v=qbD3MXdGKFo&t=27s a) Positive b) Visual c) Classical d) Photographic e) None of the Abovearrow_forward
- Answer each question below. Use details, specifics, and examples to explain your answer. You should write five sentences at a minimum. Question: What does it take to get consumers to try something new?arrow_forwardAnswer each question below. Use details, specifics, and examples to explain your answer. You should write five sentences at a minimum. Each question is worth 10 points. Question: Explain how marketers use scent marketing to persuade consumers.arrow_forwardQuestion: A woman shopping for a new perfume remembers her favorite celebrity wearing this brand and decides to buy it. This is called: a) Social Awareness b) Positive Reinforcement c) Social Proof d) Instrumental Conditioning e) None of the abovearrow_forward
