Since Consumers Have the Tendency to Compare Prices on Almost

question 29

Multiple Choice

Since consumers have the tendency to compare prices on almost everything they buy, marketers setting prices should attempt to capitalize on this tendency by determining the price consumers will consider fair and reasonable for a product. This is known as the

• A)break-even point.
• B)dynamic price.
• C)reference price.
• D)benchmark price.
• E)reasonable price.

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Definitions:

Dividends Per Share

The amount of dividend a company pays out for each share of its stock over a specific period, typically a quarter or year.

Net Income

The total profit or loss a company generates from its operations, calculated as revenues minus expenses, taxes, and additional costs.

Cash Dividend

A payment made by a corporation to its shareholders, the amount of which is determined by the company's board of directors, and is usually distributed in cash based on the profits earned.

Liability

An obligation of an entity arising from past transactions or events, the settlement of which is expected to result in an outflow of resources embodying economic benefits.