When Establishing Prices, a Marketer's First Step Is to

question 166

Multiple Choice

When establishing prices, a marketer's first step is to

• A) determine demand.
• B) develop pricing objectives.
• C) select a pricing policy.
• D) evaluate competitors' prices.
• E) determine a pricing method.

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Definitions:

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.

Residual Income

The net income an investment or business venture generates above the minimum rate of return.

Minimum Required Rate

The lowest return rate that an investor or project manager would accept for an investment.

Residual Income

Income that remains after all costs and expenses, including minimum required return on investment, have been subtracted.