GB 350 OLE MISS- FINAL EXAM STUDY GUIDE
3 Factors in the Importance of Price - Answers --Seller
-Consumer
-Profitability
What price means to a SELLER - Answers -Revenue
What price means to CONSUMER - Answers -Cost of something
What price means in relation to PROFITABILITY - Answers -Sales revenue vs.
Expenses
The SACRIFICE effect of price - Answers -Price is the sacrifice to get a good or service
The INFORMATION effect of price - Answers -People infer quality information based
on price
Value is based upon PERCEIVED SATISFACTION - Answers -"reasonable price"
means "perceived reasonable price"
Trends Influencing Price - Answers --Food of new products
-Increased availability of bargain- priced private and generic brands
-Price cutting as a strategy to maintain or regain market share
-Internet used for comparison shopping
-U.S. recession from late 2007 to 2009
Pricing Objectives - Answers --Profit Oriented
-Sales Oriented
-Status Quo
Profit- Oriented Pricing Objective (subcategories) - Answers --Profit Maximization
-Satisfactory Profits
-Target Return on Investment
Profit Maximization - Answers -The absolute maximum price a market is willing to
tolerate
Satisfactory Profits - Answers -A reasonable price point for both the customer and the
company
Target Return on Investment - Answers -Based on the amount an investor
(shareholder) expects to gain or recover from their investment
Sales- Oriented Pricing Objective (subcategories) - Answers --Market Share
3 Factors in the Importance of Price - Answers --Seller
-Consumer
-Profitability
What price means to a SELLER - Answers -Revenue
What price means to CONSUMER - Answers -Cost of something
What price means in relation to PROFITABILITY - Answers -Sales revenue vs.
Expenses
The SACRIFICE effect of price - Answers -Price is the sacrifice to get a good or service
The INFORMATION effect of price - Answers -People infer quality information based
on price
Value is based upon PERCEIVED SATISFACTION - Answers -"reasonable price"
means "perceived reasonable price"
Trends Influencing Price - Answers --Food of new products
-Increased availability of bargain- priced private and generic brands
-Price cutting as a strategy to maintain or regain market share
-Internet used for comparison shopping
-U.S. recession from late 2007 to 2009
Pricing Objectives - Answers --Profit Oriented
-Sales Oriented
-Status Quo
Profit- Oriented Pricing Objective (subcategories) - Answers --Profit Maximization
-Satisfactory Profits
-Target Return on Investment
Profit Maximization - Answers -The absolute maximum price a market is willing to
tolerate
Satisfactory Profits - Answers -A reasonable price point for both the customer and the
company
Target Return on Investment - Answers -Based on the amount an investor
(shareholder) expects to gain or recover from their investment
Sales- Oriented Pricing Objective (subcategories) - Answers --Market Share
