Why Are Firms So Obsessed with the Pricing Element of the Marketing

question 45

Multiple Choice

Why are firms so obsessed with the pricing element of the marketing mix?

• A) Because pricing is the most difficult element of the marketing mix to change.
• B) Because the firm's pricing has a direct bearing on its ability to increase revenue.
• C) Because pricing is the only marketing element that matters to customers.
• D) Because pricing is the best part of the marketing mix in which to make an educated guess about the most appropriate strategy.
• E) Because pricing is directly responsible for demand.

---

Definitions:

Concentration Ratio

The concentration ratio is a measure used in economics to assess the level of competition within an industry by indicating the market share controlled by the top firms.

Fast Food Industry

A sector of the food service industry that specializes in quick service, standardized food products, and minimal table service.

Perfect Competitor

An idealized market structure where many firms sell identical products, and there are no barriers to entering or exiting the market.

Total Profit

The overall financial gain made by a business after subtracting all expenses from the total revenue generated.