CSUF MKTG 351 Chapter 19
Questions and Complete
Solutions Graded A+
What roles does price play in evaluating product alternatives? - Answer: - measure of sacrifice
- information cue
Define price. - Answer: that which is given up in an exchange to acquire a good or service
What is the sacrifice effect of price? - Answer: - time and money
What is the information effect of price? - Answer: - price-quality; higher price, better quality
What is the importance of price to marketing managers? - Answer: - results in revenue
- results in profit
Define revenue. - Answer: price charged to customers multiplied by the number of units sold
Price x Units Sold = Revenue
Define profit. - Answer: revenue minus expenses
What are the 3 categories of pricing objectives? - Answer: -profit-oriented pricing objectives
-sales oriented pricing objectives
-status quo pricing objectives
What factors determine profit oriented pricing objectives? - Answer: -profit maximization
-satisfactory profits
, -target return on investment (ROI)
Price times units - Answer: What is revenue?
Price times sales
Price times units
Sales times profits
Profits times price
variable - Answer: Costs that vary in proportion to changes in the level of activity are:
Variable
Fixed
Variance
Margin
fixed - Answer: Costs that remain the same in total dollar amount as the activity base changes are:
Variable
Fixed
Variance
Margin
Define ROI. - Answer: firm's return on total assets, net profits after taxes divided by total assets
ROI = net profits after taxes ÷ total assets
What factors determine sales oriented pricing objectives? - Answer: -market share
-sales maximization
Questions and Complete
Solutions Graded A+
What roles does price play in evaluating product alternatives? - Answer: - measure of sacrifice
- information cue
Define price. - Answer: that which is given up in an exchange to acquire a good or service
What is the sacrifice effect of price? - Answer: - time and money
What is the information effect of price? - Answer: - price-quality; higher price, better quality
What is the importance of price to marketing managers? - Answer: - results in revenue
- results in profit
Define revenue. - Answer: price charged to customers multiplied by the number of units sold
Price x Units Sold = Revenue
Define profit. - Answer: revenue minus expenses
What are the 3 categories of pricing objectives? - Answer: -profit-oriented pricing objectives
-sales oriented pricing objectives
-status quo pricing objectives
What factors determine profit oriented pricing objectives? - Answer: -profit maximization
-satisfactory profits
, -target return on investment (ROI)
Price times units - Answer: What is revenue?
Price times sales
Price times units
Sales times profits
Profits times price
variable - Answer: Costs that vary in proportion to changes in the level of activity are:
Variable
Fixed
Variance
Margin
fixed - Answer: Costs that remain the same in total dollar amount as the activity base changes are:
Variable
Fixed
Variance
Margin
Define ROI. - Answer: firm's return on total assets, net profits after taxes divided by total assets
ROI = net profits after taxes ÷ total assets
What factors determine sales oriented pricing objectives? - Answer: -market share
-sales maximization
