Mark 3000 Chapter 14-Pricing
Concepts for Capturing Value Exam
Questions and Answers Verified
Solutions Latest Update (2026/2027)
Question:
Practice questions for this set
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Consumers' ability to substitute other products for the focal brand, thus
increasing the price elasticity of demand for the focal brand
Choose an answer
Five C's of Pricing
Substitution Effect
Demand Curve
Maximising Profits
Don't know?
Terms in this set (66)
Five C's of Pricing
company objectives, customers, costs,
competition, channel members
Company objectives
Objectives that seems to fit where the firms needs
to go to be successful - how it grows by increasing
profits, increasing sales, decreasing competition or
building customer satisfaction
A company objective that can be implemented by
Profit orientation
focusing on target profit pricing, maximizing
profits, or target return pricing.
A pricing strategy implemented by firms when they
Target profit pricing
, have a particular profit goal as their overriding
concern; uses price to stimulate a certain level of
sales at a certain profit per unit
A profit strategy that relies primarily on economic
Maximising Profits
theory. If a firm can accurately specify a
mathematical model that captures all the factors
required to explain and predict sales an
A pricing strategy implemented by firms less
Target Return pricing
concerned with the absolute level of profits and
more interested in the rate at which their profits are
generated relative to their investments; designed
to produce a specific return on investment, usually
expressed as a percentage of sales
A company objective based on the belief that
Sales orientation
increasing sales will help the firm more than will
increasing profits
A competitor-based pricing method by which the
Primium Pricing
firm deliberately prices a product above the prices
set for competing products to capture those
consumers who always shop for the best or for
whom price does not matter
A company objective based on the premise that
Competitor Orientation
the firm should measure itself primarily against its
competition.
A firm's strategy of setting prices that are similar to
Competitive Parity
those of major competitors.
A company objective based on the premise that
Customer Orientation
the firm should measure itself primarily according
to whether it meets its customers' needs. -based on
Concepts for Capturing Value Exam
Questions and Answers Verified
Solutions Latest Update (2026/2027)
Question:
Practice questions for this set
Learn
Study with Learn
Consumers' ability to substitute other products for the focal brand, thus
increasing the price elasticity of demand for the focal brand
Choose an answer
Five C's of Pricing
Substitution Effect
Demand Curve
Maximising Profits
Don't know?
Terms in this set (66)
Five C's of Pricing
company objectives, customers, costs,
competition, channel members
Company objectives
Objectives that seems to fit where the firms needs
to go to be successful - how it grows by increasing
profits, increasing sales, decreasing competition or
building customer satisfaction
A company objective that can be implemented by
Profit orientation
focusing on target profit pricing, maximizing
profits, or target return pricing.
A pricing strategy implemented by firms when they
Target profit pricing
, have a particular profit goal as their overriding
concern; uses price to stimulate a certain level of
sales at a certain profit per unit
A profit strategy that relies primarily on economic
Maximising Profits
theory. If a firm can accurately specify a
mathematical model that captures all the factors
required to explain and predict sales an
A pricing strategy implemented by firms less
Target Return pricing
concerned with the absolute level of profits and
more interested in the rate at which their profits are
generated relative to their investments; designed
to produce a specific return on investment, usually
expressed as a percentage of sales
A company objective based on the belief that
Sales orientation
increasing sales will help the firm more than will
increasing profits
A competitor-based pricing method by which the
Primium Pricing
firm deliberately prices a product above the prices
set for competing products to capture those
consumers who always shop for the best or for
whom price does not matter
A company objective based on the premise that
Competitor Orientation
the firm should measure itself primarily against its
competition.
A firm's strategy of setting prices that are similar to
Competitive Parity
those of major competitors.
A company objective based on the premise that
Customer Orientation
the firm should measure itself primarily according
to whether it meets its customers' needs. -based on
