In the Price-Setting Process, the Next Step After Demand Has

question 115

Multiple Choice

In the price-setting process, the next step after demand has been evaluated is to

• A)analyze the competitive price environment.
• B)define the pricing objectives.
• C)choose a price.
• D)determine the costs.
• E)evaluate the alternatives.

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Definitions:

Psychological Reactance Theory

A theory which proposes that people value thinking and acting freely. Therefore, situations that threaten their freedom arouse discomfort and prompt efforts to restore freedom.

Regulatory Focus Theory

The theory proposing that individuals regulate their behavior via two distinct systems: promotion focus (pursuit of goals and aspirations) and prevention focus (avoidance of negative outcomes).

Elaboration Likelihood Model

A theory in social psychology that explains the different ways people process persuasive messages, either through careful thought and evaluation or more automatic responses.

Promotion Focus

A general tendency to think and act in ways oriented toward the approach of positive outcomes.