of the following statements about price are true EXCEPT:
A) Research on 1,000 large U.S. companies shows that a 1 percent price increase translates to a 12 percent increase in profitability, other factors remaining the same.
B) The price for a product or service must earn a profit for the company.
C) For most products and services, their prices are always the same.
D) The price must be "right"-in the sense that customers must be willing to pay it.
E) The price must generate enough sales dollars to pay for the cost of developing, producing, and marketing the product.

Question

Quizplus · Accepted Answer

The statement that "for most products and services, their prices are always the same" is not true. Prices can vary depending on factors such as location, time of year, and promotions. All the other statements are true. A price increase can lead to an increase in profitability, the price must earn a profit for the company, the price must be acceptable to customers, and the price must cover the costs associated with producing and marketing the product.

Of the Following Statements About Price Are True EXCEPT