To explain: The meaning of the term price and its importance for a firm along with the meaning of the term crypto currency and block chain.
Introduction:
Price: Price is the value of any commodity or any service being offered to the consumer so that the consumer can satisfy the needs and wants.
Crypto Currency is a digital currency which has no physical presence but is available online.
Block chain is a data structure which keeps the transactional information of digital currencies.
Explanation of Solution
Price: Price is the value of any commodity or any service being offered to the consumer so that the consumer can satisfy the needs and wants. This value is in monetary terms. The price of a commodity is fixed by the manufacturer keeping in mind various factors like, demand of the product, the
Importance of price for a firm: “Price” is a critical element of marketing mix. It is important to a firm because of the following reasons-
- Price fixed by a firm affects the profit margin of a firm. A price which is too low that it does not even cover the fixed and variable cost of a firm will not generate enough revenues whereas a price which is too high will force the customers to look for substitute products.
- Price also affects the sales volume of a firm directly, other factors remaining constant.
- Price also affects the image and position of the firm in the market. If the customers find price to be very high, the consumers will gradually leave that firm and eventually the demand will decline.
- A firm can penetrate into the market if the firm keeps the price low in the beginning, other factors being constant.
- Price also affects the other elements of marketing mix. Hence, price fixation is considered to be the most crucial decision for a firm.
The above mentioned points show that why price is so important to any firm.
Crypto currency: Crypto Currency is a digital currency which has no physical presence but is available online. This is different from a regular currency in a way that crypto currency is not a legal tender and is not yet accepted as a mode of payment by everybody. Crypto currency is available in the form of digital coins which are kept in a digital wallet. One can purchase or sell anything provided the other person accepts the payment in crypto currency. This currency is traded like a security is traded in the financial market and likewise a person can make
Block chain:Block chain is a kind of a chain which maintains security and transparency of digital currencies by maintaining information on transactions of such currencies and is connected with a peer to peer network like a chain. Block chain uses various functions and coding which is hard to crack which keeps the data secure from hackers.
Want to see more full solutions like this?
Chapter 10 Solutions
Marketing: Real People, Real Choices, Student Value Edition Plus MyLab Marketing with Pearson eText -- Access Card Package (9th Edition)
- Role of Central Banks and Moral Hazards Central banks have injected moral hazard into global markets, which skews investor behavior toward risky assets because the downside of risk is being underwritten by the central banks. Thus, bubbles occur, and bubbles are bound to burst. Critically discuss this statement in 2000-3000 words.arrow_forwardDo you think blockchain technology could be used to offset currency fluctuations? Would this likely increase or decrease the risk?arrow_forwardWhich one of the following statement is not true of a money market instruments? a. Bankers acceptances are short term loans b. Commercial paper is a promissory note. c. Treasury bills are long term securities issued by the Government d. A Euro dollar certificate of deposit is negotiablearrow_forward
- Tesla's stock price has been rapidly increasing (https://finance.yahoo.com/quote/TSLA/). Analyze their consumer markets, business markets, and global markets to discuss the following topics. Why do you think that investors are very positive about Tesla? What market challenges does Tesla face as it continues to grow?arrow_forwardWhat major risk contributed to the failure of Lehman Brothers in September 2008?arrow_forwardWhat is Money? What makes it useful? Explain its primary and derivative functions of Money? (100 words)arrow_forward
- Need a detailed and long self explanatory solution for the following questions In the UK referendum on EU membership in June 2016, why were most major British financial institutions against Brexit? Please provide referred sourcesarrow_forwardA) Why is inflation referred to as a tax on holding money?B)What is the federal funds rate?C) What problems does the FED encounter when trying to control the US money supply?arrow_forwardAnti-Money Laundering and Terrorist Financing Strategies- Discuss with examples, JP Morgan Chase Bank institution approaches and strategies to combat money laundering and terrorist financing issues.arrow_forward
- How do you analyze the efficacy of the various IT initiatives taken by the Union Bank of India? Also, highlight their limitationarrow_forwardLiteracy, financial literacy and digital financial literacy are three unique terms. Literacy rate is highest and digital financial literacy rate is lowest in India. Comment on the impact of financial literacy among investors on the investment pattern, and how digital financial literacy may enhance the proportion of investment in securities market in India?arrow_forwardWith aid of diagrams, your individual submission, should discuss in detail the following three important exchange-based modes of retail finance conducted by Islamic Banks in South-Asia and the Middle East;(i) Murabaha(ii) Bai’ al-Inah (e.g. Bai Bithaman Ajil – BBA)(iii) Tawarruq (Reverse Murabaha / Commodity Murabaha)In your answer, (a) discuss the various rules and issues related to each of the modes of finance, (b) illustrate and explain the mechanics of each transaction in terms of legal form, and also (c) give your opinion in terms of economic substance (with regard to the Islamic normative theory of profit).arrow_forward