Page 39 - MARKETING MIX

Discussion

Question

1. Explain the main factors affecting the pricing decision of a firm.

2. Which of the formula given can be used to calculate the profit?

A. Profit = total revenue - total cost

B. Profit = total cost - total revenue

C. Profit = variable cost - fix cost

D. Profit = variable cost + fix cost

3. What is a suitable pricing objective to apply when the company needs to face a hard time due to

the recession in the economy?

A. Current-profit maximization

B. Market share leadership
C. Product-quality leadership

D. Survival

4. Which of the following is the most appropriate situation for a company to use price penetration

strategy?
A. The demand for the product is relatively inelastic

B. The new product represents a technological breakthrough

C. The production is limited due to technical difficulties

D. Introduce a new product into the current market.

Which method of price fixation is being referred to here :

a) Megat lowers the price of the vegetables at his shop in the evening because

they are not as fresh as they were in the morning.

b) Farid, a fruit-seller increases the price of ‘king of fruit’, as if there will be a
heavy demand for them during the season.

c) Milah introduces a new brand of biscuits at a low introductory price.

d) Johan charges a high price for the exclusive designer handkerchiefs that
she designs for a selective group of customers.

e) Aisyah fixes the price of shirts that he manufactures and sells at a price of

15% higher than its cost.

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