UCF MAR3023 Exam 4 EXAM(Graded A+ actual test)

price - Answer-the overall sacrifice a consumer is willing to make to acquire a specific product or service successful pricing strategies are built around the _______ __________ _____________ of ___________, we examine these in detail because each makes a significant contribution to formulating good pricing policies - Answer-five critical components (the five C's) of pricing profit oriented - Answer-institute a companywide policy that all products must provide for at least an 18% profit margin to reach a particular profit goal for the firm sales oriented - Answer-set prices very low to generate new sale an take sales away from competitors, even if profits suffer competitor oriented - Answer-to discourage more competitors from entering the market, set prices very low customer oriented - Answer-target a market segment of consumers who highly value a particular product benefit and set prices relatively high target profit pricing - Answer-implemented when companies have a particular profit goal as their overriding concern, firms use price to stimulate a certain level of sales at a certain profit per unit maximizing profits - Answer-this strategy relies primarily on economic theory, a firm identifies the price where the profits are maximized target return pricing - Answer-when firms are less concerned with the absolute level of profits and more interested in the rate at which their profits are generated relative to their investments competitive parity - Answer-firms set prices that are similar to those of their major competitors status quo pricing - Answer-changes prices only to meet those of the competitiondemand curve - Answer-shows how many units of a product or service consumers will demand during a specific period of time at different prices demand curves assume that - Answer-everything other than price and quantity demanded remains the same total cost - Answer-the sum of the variable and fixed costs