The Role of Price Is an Important Element in a Firm's

question 46

Multiple Choice

The role of price is an important element in a firm's international marketing mix because price will:

• A) help to produce profit for the firm.
• B) affect demand for a product.
• C) generate revenue for the firm.
• D) affect the perceived value of the product.
• E) all of the above.

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Definitions:

Consumption

The process by which goods and services are used up by consumers, representing the end phase of the economic cycle.

Income

Financial gains, customarily on a constant basis, from vocational activities or investments.

Interest Rate

The percentage charged on a sum of money borrowed or earned on deposited funds over a period of time.

Utility Function

A representation in economics that shows the relationship between the utility (satisfaction) individuals receive from consuming goods and services and different consumption bundles.