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.

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Definitions:

Percentile

A value on a scale of 100 that indicates the percent of a distribution that is equal to or below it.

Quartiles

Divisions of a data set that mark three points to divide the data into four equal parts, each representing a quarter of the dataset.

Histogram

A graphical representation of data using bars of different heights to show the frequency of data in different intervals.

Interquartile Range

The difference between the 75th and 25th percentiles of a data set, representing the spread of the middle 50% of values.