Price is a key element in the marketing mix because it relates directly to
A) the size of the sales force.
B) the speed of an exchange.
C) quality controls.
D) the generation of total revenue.
E) brand image.

Question

Quizplus · Accepted Answer

Price directly impacts the generation of total revenue. The price of a product or service determines how much money a company earns from the sales of that product or service. A higher price may result in higher revenue per sale, but may also result in lower sales volume. A lower price may result in higher sales volume but may also result in lower revenue per sale. Thus, price is a critical component in determining a company's overall revenue.

Price Is a Key Element in the Marketing Mix Because