One of the Most Important Determinants of Customers' Response to a Price

question 6

Multiple Choice

One of the most important determinants of customers' response to a price is whether they perceive the price to be a fair exchange ________.

• A)compared to what they have paid in the past
• B)regardless of their actual experience with the product
• C)based on their expectation, not reality
• D)for the value they receive from the product or service

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Definitions:

Cost Focus

A business strategy that aims to become the lowest-cost producer in an industry or market segment to gain a competitive advantage.

Market Segments

Market Segments are distinct groups of consumers within a broader market who share similar characteristics and needs.

Differentiation Focus

A strategy where a company targets a specific market segment with a unique product or service offering to stand out from competitors.

Market Segments

Separation of a market into unique segments of consumers with diverse needs, traits, or actions who may need distinct products or marketing strategies.