Asked by
Harrison Macdonald
on Dec 15, 2024
Verified
Which of these statements is most accurate?
A) Nonprofit organizations are exempt from having to cover the costs of producing and/or marketing their products.
B) Socially responsible corporations should have the pricing constraint of covering all costs of producing and marketing their products, but they should not price their products to earn a profit.
C) Marketers must ensure that firms in their channels of distribution make an adequate profit or they will be cut off from their customers.
D) Price elasticity of demand makes it virtually impossible for companies to cover all their marketing and production costs at all times.
E) Marketing and production costs are the most difficult and expensive aspect of pricing because they draw so much capital away from other departments in the organization.
Channels Of Distribution
Paths or routes through which goods and services flow from the producer or supplier to the consumer.
Pricing Constraint
Limitations or factors that affect how a company can price its products or services, such as cost, competition, and demand.
Corporate Social Responsibility
Corporate social responsibility (CSR) involves businesses undertaking initiatives to contribute positively to society and the environment beyond their core economic motives.
- Understand how external elements, like competition pricing and market demand, impact a company's pricing strategy.
- Comprehend the factors influencing pricing choices, including the costs of production, the level of market demand, and the classification of the competitive market.
Verified Answer
VA
Learning Objectives
- Understand how external elements, like competition pricing and market demand, impact a company's pricing strategy.
- Comprehend the factors influencing pricing choices, including the costs of production, the level of market demand, and the classification of the competitive market.