Question detail
PeakPods serves price-sensitive customers while using retained profit; the case evidence includes break-even output of ?10,718, sales of 468 units, and a 13% change in costs or demand. Which option best applies Evaluate factors and assess suitable pricing methods for a given business?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
The elements of the marketing mix: price, product, promotion and place
Question
- A. Use factors, assess, evaluate, suitable to judge labour productivity, lenders impact, and the business objective in Price.
- B. Give only a definition of The elements of the marketing mix: price, product, promotion and place without using the case evidence.
- C. Treat gross and net profit as identical and ignore the effect on lenders.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use factors, assess, evaluate, suitable to judge labour productivity, lenders impact, and the business objective in Price.
Explanation
This option works because Use factors, assess, evaluate, suitable to judge labour productivity, lenders impact, and the business objective in Price. The case evidence gives ?12,218, 468 units, and 13%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse gross and net profit, miss the lenders, or ignore the business objective.
Common mistake
Price common mistake 1
Giving a vague answer instead of directly addressing: Evaluate factors and assess suitable pricing methods for a given business..
Answer by clearly explaining how to evaluate factors and assess suitable pricing methods for a given business..
Related flashcards
Flashcard 1 of 5
Related practice questions
Question 1 of 5
Choose an answer, get feedback, then move sideways through the set.