If firms price their products too low it may a result

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If firms price their products too low, it may: A. result in lower costs. B. create a premium pricing effect. C. increase contribution per unit. D. result in inelastic demand. E. signal poor quality. A price that is too low may communicate that the product is of poor quality. AACSB: Analytic Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-01 List the four pricing orientations. Topic: Pricing Concepts 29. (p. 268) Gerald has a number of customers for his lawn care service who never question his bill but expect their lawns to be perfect. These customers do not want low prices, they want: Gerald's customers care about the quality of his work, and the value received, and they are willing to pay for the quality they seek. AACSB: Analytic Blooms: Apply Difficulty: 2 Medium Learning Objective: 13-01 List the four pricing orientations. Topic: Pricing Concepts 30. (p. 269) Marketers can deliver high value through high or low prices, depending on:
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Value can be delivered at a variety of price points, as long as the benefits delivered match the price. AACSB: Analytic Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-01 List the four pricing orientations. Topic: Pricing Concepts 31. (p. 269) Unlike product, promotion, or place, price is the only part of the marketing mix: Product, promotion, and place generate costs; price generates revenue. AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-01 List the four pricing orientations. Topic: Pricing Concepts 32. (p. 269) Price is often the most challenging of the four Ps to manage, partly because it is often _________________________ in developing marketing strategies. A. the least important aspect B. treated as an afterthought C. calculated by senior consultants D. difficult to calculate markups E. the subject of cross-shopping differentiation Despite the complex considerations when setting prices, pricing is often treated as an afterthought.
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AACSB: Analytic Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-01 List the four pricing orientations. Topic: Pricing Concepts 33. (p. 269)
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