Certified Nurse Manager and Leader (CNML) Practice Test

In the 4 P's of Marketing, what does 'Price' refer to?

1. The production cost of the product

2. The selling price of the product

3. The location where the product is available

4. The promotional strategies used

The correct answer is: The selling price of the product

In the context of the 4 P's of Marketing, 'Price' specifically refers to the selling price of the product. This encompasses not just the monetary amount that customers pay but also the overall pricing strategy employed to attract and retain customers. Price is a critical component because it affects the perceived value of the product, the sales volume, and the company's profitability. While the production cost is essential for determining pricing, it is not the same as the actual selling price. The selling price is influenced by factors such as market demand, competition, and overall marketing strategy. Understanding how to set the selling price effectively can help in differentiating the product from competitors and ensuring its marketability. The other elements, including location and promotional strategies, while vital in a marketing plan, do not pertain directly to the concept of price within the 4 P's framework.