What Causes Most Pricing Errors in Small Business Firms

question 208

Multiple Choice

What causes most pricing errors in small business firms?

• A) Owners select poor locations for service firms.
• B) Owners don't know the price of their competitors' products.
• C) Entrepreneurs introduce new products that they like but for which there is no market.
• D) Over-reliance on word-of-mouth advertising results in potential customers who do not know about the product or service.
• E) Failure to project operating expenses accurately

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Definitions:

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of the operation grows.

Product's Life Cycle

The progression of a product through several stages including introduction, growth, maturity, and decline, affecting marketing strategies and management decisions.

Nostalgia

A sentimental longing or wistful affection for the past, typically for a period or place with happy personal associations.

Antagonism

Opposition or active resistance against something; in pharmacology, it may refer to a substance that interferes with or inhibits the physiological action of another.