Robert Jay P.

Mejorada
BSBA 4B

Direction: Answer the following questions.

1. What is Pricing?
Pricing is an action wherein any business sets a certain price at which it sells its product and
services. This is a part of a business' marketing plan. This is important to marketers since it
represents the marketer's assessment of the value customers see in the product or service and are
willing to pay for it.
2. How does Pricing affect service quality?
It is when the prices increase that might affect the customers' perception of the quality of the
product being sold. But setting a low price for your product can also make a difference for the
customer to be more aware of its quality in general and might be more likely to identify the faults
or potential shortcomings of your products.
3. What is a Promotional Mix?
This set out a blend of promotional variables chosen by marketers to help businesses or firms
reach their goals. The promotional mix has several components such as sales promotion,
advertising, personal selling, direct marketing, and more and these are essential to achieve an
effective promotional mix including the use of media and non-media marketing communication.
4. How does the internet help business in promoting services?
By using the internet, specifically, social media you can build an effective website and attract
potential customers through various internet-based marketing tactics. Since internet marketing is
inexpensive, it is easy to inform the market about your business which is requisite to entice
people to purchase your products and services.
Direction: Answer the following questions to evaluate your understanding of the lesson.

1. What is the best pricing strategy you can use if you are selling a tangible product?
It would seem that cost-plus pricing is the best method to use if you are selling a tangible product
considering the total cost of making your product and it is because we are talking about a
tangible product, is it easy to determine to set what will be the right price for your product by
using the cost-plus pricing allowing you to set to add a mark up to the total cost. In addition, if
the tangible product is new to the market, it is effortless to set a price by using this kind of
pricing especially if your business is newly established.

2. Do you consider price as the greatest indicator when buying a product/service? Why or
why not?
Yes, because consumers or customers perceive this as the prime indicator when they are buying
and to presume the quality of the product. They believed that if its high-priced products, it
attributes a better quality and might last longer, and when the product is low priced, this indicates
the less expectation of the quality of the products. I think the price is a more effective metric that
measures your product's performance than quality. As they say" if it costs more it must be better”
and "you get what you pay for".

Direction: True or False.

1. True
2. True
3. False
4. True
5. False
6. True
7. True
8. True
9. False
10. True