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E) Price Inelasticity 12) The pricing method that sometimes uses responses of co

ID: 331381 • Letter: E

Question

E) Price Inelasticity 12) The pricing method that sometimes uses responses of consumers when asked how much they Closfpytiorthaditioa ene ttermine the price of the product or service is called A) Cost-Plus Pricing. B) Value-Based Pricing. C) Going-Rate Pricing. D) Target Profit Pricing. E) Segment Profit Pricing. 13) If a company sells its product directly to the consumer without using any intermediaries, it is using a (n): A) Direct Marketing Channel. B) Indirect Marketing Channel. C) Forward Channel. D) Hybrid Channel. E) Speculative Channel. 14) In Consumer marketing channels with two middlemen levels, the middlemen are typically called: A) Suppliers and Buyers. B) Agents and Actors. C) Wholesalers and Retailers. D) Suppliers and Vendors. E) Agents and Brokers.

Explanation / Answer

12) The pricing method that sometimes uses responses of consumers when asked how much they would pay for each additional benefit to determine the price of the product or service is called:

Value Based Pricing

Value-based price (also value optimized pricing) is apricing strategy which sets prices primarily, but not exclusively, according to the perceived or estimatedvalue of a product or service to the customer rather than according to the cost of the product or historicalprices

13) If a company sells its product directly to the consumer without using any intermediaries, it is using

Direct Marketing Channel

A direct channel of distribution describes a situation in which the producer sells a product directly to aconsumer without the help of intermediaries.

14) In consumer marketing channels with two middleman levels, the middlemen are typically called

Wholesalers and retailers