Which of the following statements about pricing of product as a function of marketing is NOT correct?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Deciding the promotion mix is one of the decisions marketers take under the pricing function.
Option (1) Price of a product is the amount of money customers have to pay to obtain the product. — True. This is the meaning of the price of a product.
Option (2) Generally, the lower the price of a product, the higher would be its demand. — True. Demand is related to price. Generally, when the price falls, demand rises, and the other way round.
Option (3) Deciding the promotion mix is one of the decisions marketers take under the pricing function. — False. The promotion mix is decided under the promotion function. Pricing decisions are setting pricing objectives, choosing pricing strategies, fixing the price and changing it.
Option (4) Price is an important factor affecting the success or failure of a product in the market. — True. Price affects how much customers buy, so it is an important factor in the success or failure of a product.
NCERT (2026-27 Edition): “8. Pricing of Product: Price of product refers to the amount of money customers have to pay to obtain a product. Price is an important factor affecting the success or failure of a product in the market. The demand for a product or service is related to its price. Generally lower the price, higher would be the demand for the product and vice-versa. The marketers have to properly analyse the factors determining the price of a product and take several crucial decisions in this respect, including setting the pricing objectives, determining the pricing strategies, determining the price and changing the prices.” “9. Promotion: Promotion of products and services involves informing the customers about the firm’s product, its features, etc., and persuading them to purchase these products. The four important methods of promotion include advertising, Personal Selling, Publicity and Sales Promotion. A marketer has to take several crucial, decisions in respect of promotion of the products and services such as deciding the promotion budget, the promotion mix, i.e., the combination of the promotional tools that will be use, the promotion budget, etc.” |