MKT 300 EXAM 4 EATON ASU

price - Answer-the value that you exchange for the benefits of having or using the product/service value = - Answer-benefits - costs internal factors on pricing decisions - Answer-marketing objectives, marketing mix strategy, costs marketing objectives - Answer-to maximize profit to gain market share to infer a level of quality to survive marketing mix strategy - Answer-Price needs to be consistent with other 3P's (needs to reflect advertising, etc.) costs - Answer-your costs affect your profit, so set the optimal price external factors on pricing decisions - Answer-demand for your product, competition, economy competition - Answer-competitor's prices strength of competition economy - Answer-cost of components (natural resources) economic conditions price elasticity - Answer-tells us how much the demand for a product will change with a change in price (% change in quantity demanded/% change in price) elastic demand - Answer-a relatively small decrease in price results in a substantial increase in quantity demanded inelastic demand - Answer-a relatively large increase in price results in only a small decrease in quantity demanded unitary elasticity - Answer-an increase in sales exactly offsets a decrease in prices and revenue is unchanged impo