ID# 2035358690 Name: Md.

Nizamul Haque Shakil

Class Test-2
EMB-520: Principles of Marketing & Management
EMBA Program
School of Business, NSU
● Answer ALL the questions.
● Don’t cross the word limit while answering the questions.
● Type your answer in the designated place of this answer script.
● Make sure your answer is unique and not copied from any source.
● Please don’t email the answer script; submit it in the Google classroom.

1. The knowledge of economics is not good enough for setting the right price for the product
a marketer sells. What is the implied message of the statement? [Max 70 words] [10 marks]
Answer:
Customers do not buy based on price alone. Apart from the knowledge of economics the
marketers must consider several other factors while setting the price such as company’s
market share, Customer’s phycology, profit goals, what impact its price will have on other
parties in its environment. Also, political knowledge is required to set the right price of the
product.

2. Pricing decisions are highly sensitive and complicated. What are the factors making
pricing decisions highly sensitive and complicated? [Max 70 words] [10 marks]
Answer:
There are several internal and external factors such as product cost, company’s market share,
company’s overall marketing strategy and mix, competitors strategy and prices, brand’s
price-demand curve, market demand of product, price sensitivity, price elasticity of demand,
the nature of the market, location of Business, economic position, Governmental laws &
regulation and environmental factors.