Why are customers typically relatively insensitive to price increases even though they have bargaining power?They do not believe an acceptable alternative exists.They do not believe they are paying more for perceived benefits.They believe that price protects products from counterfeiting.They believe switching costs are high.

The question addresses the phenomenon of customers being relatively insensitive to price increases…

Answered: Why are customers typically relatively…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter20: Setting Prices

Section: Chapter Questions

Problem 3DYMP

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Similar questions

Describe information that consumers may perceive from price. For example, some consumers think that if an item has a high price, then it will probably be better than its competitors. That may or may not be true.
what is the term given to mean that consumers can be prevented from buying something due to the price ?
A company has seen prices being gradually eroded by competition for several years. Suggest approaches it could consider avoid having to cut prices further
How can patterns of temporary price discounts “train” consumers to stop buying at full price?
The Price competition is muted in the soft drink industry dominated by Pepsi and Coke. Which of the following is not a possible reason? Their products are heterogeneous They have a very strong brand loyalty They have great economies of scale There is a strong network effect correct
To what extent is the price most important factor in ensuring a company can maximise profits?
Discuss at least three markets where you think time-varying prices mainly help to take advantage of differences in willingness to pay between groups of people that tend to purchase at different times. Briefly explain your choices.
Based on the scenario, how can you define the importance of the price of a product in attractingcustomers?
A primary marketing objective of all competitors in mature markets is simply to: Increase price to maximize profits. Increase market penetration. Hold their existing customers. Market their products to a new market. All of the above
If your customers can see the value of buying your product or service, they'll happily pay the price. If they don't see that value, it makes little difference how low you set your price, the customer will look somewhere else for the perceived value, even if "somewhere else" costs more than your product or service. True or False?
One of the four Ps of marketing is price. Explain what elements are involved in price besides the amount of money a customer pays for a product. In your answer, be sure to consider the concept of customer value
Which measures the changes in the prices of a "market basket" of some 100 goods produced by typical manufacturers? The Producer Price Index The Consumer Price Index The GDP price index The International Pricing Index

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