Why Are Marketing Managers Finding It More Difficult to Set

question 145

Multiple Choice

Why are marketing managers finding it more difficult to set prices in today's environment?

• A) Inflationary and recessionary periods have made customers less price-sensitive.
• B) Fewer dealer and generic brands are available because the competition has been eliminated.
• C) The high rate of new-product introductions has led to careful reevaluation by consumers.
• D) Marketing managers are finding it difficult to compare prices between suppliers.
• E) Buyers are less informed and are less price-sensitive.

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Definitions:

Fixed Costs

Expenses that do not change with the level of output or sales within a certain range and period.

Break-Even Point

The point at which total revenues equal total costs, and the business makes neither profit nor loss.

Fixed Expenses

A repackaged definition of fixed costs emphasizing their nature as constant across different levels of output or sales.

Selling Price

The amount of money charged to the buyer for a product or service.