Marketers Can Deliver High Value Through High or Low Prices,depending

question 67

Multiple Choice

Marketers can deliver high value through high or low prices,depending on

• A) profit contribution per unit.
• B) the bundle of benefits the product or service delivers.
• C) monopolistic competition.
• D) target return pricing that is greater than variable cost per unit.
• E) the income effect.

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Definitions:

Variable Selling Expense

Expenses that fluctuate in direct proportion to the number of sales, like sales commissions and freight fees.

Shipping Costs

Expenses associated with the delivery of goods from the manufacturing point to the customer or distribution center.

Variable Manufacturing Cost

Costs that fluctuate with the level of production output, such as raw materials and direct labor.

Fixed Manufacturing Cost

Overheads that do not change with the level of manufacturing output, including salaries of permanent staff and rent.