Which of the following is correct with regard to price?
A) It refers only to the actual amount of money that consumers pay for a product.
B) It is generally the second-most important element in the marketing mix.
C) In some cases, high prices will actually attract customers by implying that the product is unusually good.
D) It is more important for industrial goods than it is for consumer goods.
E) All of these

Question

Quizplus · Accepted Answer

High prices can sometimes create a perception of quality or exclusivity, which can actually attract customers rather than deter them.

Answer: E 
 None of the other answer choices accurately describe price. Price refers not only to the cost of a product, but also includes discounts, payment terms, and other pricing strategies. It is also considered one of the four major elements of the marketing mix, along with product, promotion, and place. The importance of price may vary based on the type of product being sold and the target market.

Which of the Following Is Correct with Regard to Price