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An exchange takes place under which condition?
AWhen a buyer researches a product but decides not to buy it
BWhen two parties give something of value to each other
CWhen a seller lowers the price of a product below its cost
DWhen a firm advertises a product to a large group of people
Answer & Solution
Correct answer: B. When two parties give something of value to each other
1. An exchange happens when two parties each give the other something of value.
2. The purpose on both sides is to satisfy their respective needs or wants.
3. Marketing is about creating exchanges, so the two-sided transfer of value is the defining test.
4. Researching without buying, cutting a price and advertising are all one-sided acts, so none of them is an exchange.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 11 "Creating Products and Pricing Strategies to Meet Customers' Needs", section 11.1 The Marketing Concept_
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