A Company Trying to Position Itself as Value Oriented Should

question 30

Multiple Choice

A company trying to position itself as value oriented should not

• A) set prices that are reasonable relative to product quality.
• B) use premium pricing for its products.
• C) set prices similar to those of its competitors.
• D) use any advertising for its products.
• E) consider costs when determining the price of products.

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Definitions:

Price Elasticity of Supply

An economic measure of how much the quantity supplied of a good changes in response to a change in price.

Equilibrium Values

The set of prices or quantities in a market or economic model where supply equals demand, and no incentive exists for change.

Cyclical Industries

Industries in which sales tend to magnify cyclical changes in gross domestic product and national income.

Business Earnings

The profit made by a business over a period of time, indicating its financial performance and profitability.