4 Marketers of financial services use price to achieve three objectives: market share,...
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Finance
4
Marketers of financial services use price to achieve three objectives: market share, profit generation and ____.
A
Profit optimization
B
Profit sustainability
C
Customer retention and loyalty building
D
Cost reduction
E
Promote sales of bundled services
5
The prime limitation of using parity pricing is that it is _______.
A
Difficult to allocate fixed costs across multiple services
B
Pricing can be volatile due to uncontrollable factors
C
Dependent on the consumers perceptions of parity
D
Difficult to define
E
Dependent on competitors pricing strategies
6
When MBNA Bank Canada introduced its credit card in Canada, it offered a generous 6-month period of 0% interest on balances transferred from competitors credit cards. A disadvantage of this promotional pricing strategy is that it can attract customers who do not revolve high credit balances.
A
True
B
False
7
In addition to creating awareness of a financial services brand and to stressing intangible product features, advertising also _______.
A
Promotes immediate purchase
B
Attracts new buyers
C
Assists to differentiate from the brands and products competitors
D
Generates positive post-purchase dissonance
E
Contributes towards economic and social prosperity
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