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Unformatted text preview: Chapter 11, questions 1,2, 7 and 12 and Case 11.1 1. What is the meaning of price? Contrast the basic price mix with the price promotion mix. Price is the amount of money a buyer pays to a seller in exchange for products and services. Price is the one aspect of the marketing mix that is most easily changed. The basic price mix includes components that define the size and means of payment exchanged for goods and services such as list price, usual terms of payment and terms of credit. The price promotion mix includes supplemental components of price, which aim at encouraging purchase behavior by strengthening the basic price mix during relatively short periods. 2. Why are pricing decisions so important? What are the effects of setting prices too low? Too high? Pricing decisions are so important because they are influenced by the five C’s of pricing, costs, customers, channels of distribution, competition and compatibility, but Costs determine the minimum level of prices. These decisions must also distribution, competition and compatibility, but Costs determine the minimum level of prices....
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This note was uploaded on 09/06/2011 for the course ECON 2312 taught by Professor Dan during the Spring '11 term at The University of Texas at San Antonio- San Antonio.
- Spring '11