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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