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Flashcards in CHAPTER 10 Deck (8)
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1

Who said "Price is what you pay, value is what you get?"

Warren buffet

2

Warren Buffet said, _____ is what you pay, ______ is what you get

price, value

3

What causes one company to set the price of a limited-edition pencil at $10,000 and another company to price pencils at a penny for a pack of ten? What causes customers to purchase one of these and not the other?

the answers lie in pricing strategies and the psychology behind them

4

What is operating profit?

revenue minus the cost of goods sold, the operating expenses, depreciation, amortization

5

what are two questions marketers struggle with?

How do we know the correct price for this item?
How do we know what this is worth to the consumer?

6

What happens if a companies products are too high?

customers won't buy the product

7

What happens if a companies products are too low?

the company either doesn't make money or it leaves potential revenue on the table

8

Customers look to price to help decide which brands are ______.

trustworthy