The Price of the Good or Service Is a Key

question 92

Multiple Choice

The price of the good or service is a key decision for a marketer because it most significantly and directly affects the product's:

• A) distribution
• B) costs
• C) demand
• D) promotion
• E) quality

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Definitions:

Elastic Demand

A situation in which the demand for a product is sensitive to price changes, meaning a small price change can cause a large change in quantity demanded.

Airline Prices

The cost of air travel tickets, influenced by factors such as fuel prices, demand, seasonality, and market competition.

Price-Inelastic

Describes a situation where the demand for a good or service changes little in response to changes in price.

Business Travelers

Individuals who travel as part of their job or business, often to attend meetings, conventions, or to conduct business with other companies.