Question detail
QuickFix Repairs serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?8,886, sales of 806 units, and a 15% change in costs or demand. Which option best applies Explain factors influencing pricing decisions, including costs, market nature, competition and product life cycle?
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 including, influencing, pricing, factors to judge net profit margin, 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 fixed and variable costs 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 including, influencing, pricing, factors to judge net profit margin, lenders impact, and the business objective in Price.
Explanation
This option works because Use including, influencing, pricing, factors to judge net profit margin, lenders impact, and the business objective in Price. The case evidence gives ?10,386, 806 units, and 15%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse fixed and variable costs, miss the lenders, or ignore the business objective.
Common mistake
Price common mistake 1
Giving a vague answer instead of directly addressing: Explain factors influencing pricing decisions, including costs, market nature, competition and product life cycle..
Answer by clearly explaining how to explain factors influencing pricing decisions, including costs, market nature, competition and product life cycle..
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