Questions On Marketing Price And Strategy Quiz! Trivia

This statement is false. Price is not only about pricing strategies, methods, and tactics. Price is an important factor in marketing and business, but it is not the only aspect to consider. Other factors such as product quality, customer needs and preferences, competition, and market demand also play a significant role in determining the price of a product or service. Pricing strategies and tactics are just one part of the overall pricing decision-making process.

Going rate pricing refers to setting the price of a product or service at the same level as competitors. This strategy is commonly used when a company wants to maintain market share or avoid price wars. By pricing their product at the same level as competitors, the company ensures that customers perceive their offering as being on par with others in the market. This approach can be beneficial in industries where product differentiation is low, and price becomes a key factor in consumer decision-making.

The market-based method focuses on determining the value of a product or service based on customers' perception. In this method, the value of the product is determined by how customers perceive it. On the other hand, psychological price barriers refer to the maximum price that customers are willing to pay for a product. It is the price beyond which customers will not go, indicating a limit to their willingness to pay. Therefore, in this context, the customers' perceived value is what customers value the product at, and psychological price barriers represent the price beyond which customers will not go.

The given answer of £20 is the selling price. This means that the item is being sold for £20.