MKT-315
MKT-315 FINAL EXAM PREP
Final Exam
Preparation
Amy Bolton
,MKT-315 FINAL EXAM PREP
PRICING
Chapter 7
, 1. Break-even Analysis
2. Demand Curve Cha
3. Elasticity of Demand Voc
MKT-315 FINAL EXAM PREP
4. Loss Leader Pr
5. Milton Friedman’s Famous Maxim
6. Odd Even Pricing
7. Penetration Pricing
8. Price Elasticity
9. Pricing
10.Pricing Metrics
11.Pricing Strategies
12.Profit Equation
13.Return-on-Investment
14.Skimming Pricing
, Break-even Analysis Demand Curve Elasticity of Demand Loss Leader
• Page 4 • Page 9 - 10 • Page 10 • Page 16
• The point where average • Used to determine the effects • A measure of price sensitivity • An item sold at less-tha
revenue is equal to average on demand at different prices. providing a relationship market prices, often be
total costs. between adjustments in price cost, in order to lure
MKT-315 FINAL EXAM PREP
• Calculated to see how much and the quantity demanded of consumers into a store
revenue is needed to cover a good or service. purchase other produc
costs, taking into consideration • There are 5 determinants of • These items are sold be
fixed and variable costs, selling elasticity: substitutes and cost to stimulate sales
prices, volume, and product complements, number of profitable goods.
mix. buyers and sellers, necessity,
portion of budget, and time
perspectives.
• The more substitutes available,
the more elastic the demand
Friedman’s Maxim Odd Even Pricing Penetration Pricing Price Elasticity
• Page 2 • Page 15 • Page 6 - 8 • Page 10
• Paraphrased as the social • A psychological influence • Strategically setting a • A measure of price
responsibility of business on consumers. An example lower-than-market price in sensitivity providing
is to make a profit is pricing an item at $29.95 order to promote the relationship betwee
(Friedman, 1970). instead of $30. brand and gain market adjustments in price
• Consumers who share over a longer period the quantity deman
experience time scarcity of time. a good or service
are more apt to look for
rounded dollar amounts.
MKT-315 FINAL EXAM PREP
Final Exam
Preparation
Amy Bolton
,MKT-315 FINAL EXAM PREP
PRICING
Chapter 7
, 1. Break-even Analysis
2. Demand Curve Cha
3. Elasticity of Demand Voc
MKT-315 FINAL EXAM PREP
4. Loss Leader Pr
5. Milton Friedman’s Famous Maxim
6. Odd Even Pricing
7. Penetration Pricing
8. Price Elasticity
9. Pricing
10.Pricing Metrics
11.Pricing Strategies
12.Profit Equation
13.Return-on-Investment
14.Skimming Pricing
, Break-even Analysis Demand Curve Elasticity of Demand Loss Leader
• Page 4 • Page 9 - 10 • Page 10 • Page 16
• The point where average • Used to determine the effects • A measure of price sensitivity • An item sold at less-tha
revenue is equal to average on demand at different prices. providing a relationship market prices, often be
total costs. between adjustments in price cost, in order to lure
MKT-315 FINAL EXAM PREP
• Calculated to see how much and the quantity demanded of consumers into a store
revenue is needed to cover a good or service. purchase other produc
costs, taking into consideration • There are 5 determinants of • These items are sold be
fixed and variable costs, selling elasticity: substitutes and cost to stimulate sales
prices, volume, and product complements, number of profitable goods.
mix. buyers and sellers, necessity,
portion of budget, and time
perspectives.
• The more substitutes available,
the more elastic the demand
Friedman’s Maxim Odd Even Pricing Penetration Pricing Price Elasticity
• Page 2 • Page 15 • Page 6 - 8 • Page 10
• Paraphrased as the social • A psychological influence • Strategically setting a • A measure of price
responsibility of business on consumers. An example lower-than-market price in sensitivity providing
is to make a profit is pricing an item at $29.95 order to promote the relationship betwee
(Friedman, 1970). instead of $30. brand and gain market adjustments in price
• Consumers who share over a longer period the quantity deman
experience time scarcity of time. a good or service
are more apt to look for
rounded dollar amounts.
