Marketing Chapter 19

Price is considered to be the variable in the marketing mix that is

Most flexible

The oldest form of exchange⎯trading of products⎯is known as

barter.

Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Caterpillar is producing at the ____ point.

breakeven

When a customer is considering the purchase of a product in a less-familiar product category, that individual is likely to rely more heavily on

external reference prices.

Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing

nonprice competition

When marketers emphasize price as an issue and match or beat the prices of other companies, they are using

price competition.

A measure of sensitivity of demand in relation to changes in price is

price elasticity of demand.

Isabella is a product manager for The Container Store, a retailer of plastic bins and other storage containers. Sales have been declining in the past nine months and her management team is pressuring her to compete based on price discounts. However, Isabella is aware of the dangers associated with engaging in price competition. She knows that competitors can also change prices quickly and aggressively, which can result in a(n) ____ that will be harmful to both companies.

price war

If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the

quantity demanded goes down.

Price is

the value that is exchanged for products in a marketing transaction.