price - Answers -the value paid for a product in a marketing exchange
the demand curve - Answers -inverse relationship between price and demand; a graph
of the quantity of products expected to be sold at various prices, if other factors remain
constant
break-even point - Answers -the point at which the costs of producing a product equal
the revenue made from selling the product
break-even analysis - Answers -BE = fixed costs/per unit contribution to fixed costs
(price-variable) costs
factors that affect pricing decisions - Answers -1. Organizational and Marketing
Objectives
2. Costs
3. Other Marketing Mix Variables
4. Channel Member Expectations
5. Customer's Interpretation and Response
6. Reference Prices
7. Competition
8. Legal and Regulatory Issues
categorizations of buyers (value conscious) - Answers -concerned about both price and
quality of the product
categorizations of buyers (price conscious) - Answers -strive to always pay low prices
categorizations of buyers (prestige-sensitive) - Answers -focus on products to signify
prominence and status
transfer pricing - Answers -occurs when one unit in an organization sells a product to
another unit
price is determined by what methods? - Answers -- actual full cost
- standard full cost
- cost plus investment
- market-based cost
question: price is... - Answers -the value exchanged for products in a marketing
transaction
question: a graph of the quantity of products marketers expect to sell at various places if
other factors remain constant is... - Answers -demand curve
, question: price competition exists when... - Answers -consumers have difficulty
distinguishing competitive offerings and marketers emphasize low prices
question: the demand curve... - Answers -is a graph of the quantity of products
expected to be sold at various prices, other factors being constant
question: which of the following products is characterized by high-elastic demand? -
Answers -sports cars
price elasticity of demand - Answers -a measure of the sensitivity of demand to
changes in price
inelastic demand - Answers -a change in price causes an opposite change in total
revenue
elastic demand - Answers -a change in price results in a parallel change in total
revenue
pricing objective: survival - Answers -adjust price levels so the firm can increase sales
volume to match organizational expenses
three major dimensions of prices - Answers -1. cost
2. demand
3. competition-based pricing
cost-based pricing - Answers -adding a dollar amount or percentage to the cost of the
product
demand - Answers -customers pay higher price when the demand for the product is
strong and a lower price when the demand is weak
differential pricing - Answers -charging different prices to different buyers for the same
quality and quantity of the product
promotion pricing - Answers -price is often coordinated with promotion
price leaders - Answers -products priced below the usual markup, near cost, or below
cost
special-event pricing - Answers -advertised sales or price-cutting is used to increase
sales volume and is linked to a holiday, a season, or other event
comparison discounting - Answers -the pricing of a product at a specific level and
simultaneously comparing it to a higher price
the demand curve - Answers -inverse relationship between price and demand; a graph
of the quantity of products expected to be sold at various prices, if other factors remain
constant
break-even point - Answers -the point at which the costs of producing a product equal
the revenue made from selling the product
break-even analysis - Answers -BE = fixed costs/per unit contribution to fixed costs
(price-variable) costs
factors that affect pricing decisions - Answers -1. Organizational and Marketing
Objectives
2. Costs
3. Other Marketing Mix Variables
4. Channel Member Expectations
5. Customer's Interpretation and Response
6. Reference Prices
7. Competition
8. Legal and Regulatory Issues
categorizations of buyers (value conscious) - Answers -concerned about both price and
quality of the product
categorizations of buyers (price conscious) - Answers -strive to always pay low prices
categorizations of buyers (prestige-sensitive) - Answers -focus on products to signify
prominence and status
transfer pricing - Answers -occurs when one unit in an organization sells a product to
another unit
price is determined by what methods? - Answers -- actual full cost
- standard full cost
- cost plus investment
- market-based cost
question: price is... - Answers -the value exchanged for products in a marketing
transaction
question: a graph of the quantity of products marketers expect to sell at various places if
other factors remain constant is... - Answers -demand curve
, question: price competition exists when... - Answers -consumers have difficulty
distinguishing competitive offerings and marketers emphasize low prices
question: the demand curve... - Answers -is a graph of the quantity of products
expected to be sold at various prices, other factors being constant
question: which of the following products is characterized by high-elastic demand? -
Answers -sports cars
price elasticity of demand - Answers -a measure of the sensitivity of demand to
changes in price
inelastic demand - Answers -a change in price causes an opposite change in total
revenue
elastic demand - Answers -a change in price results in a parallel change in total
revenue
pricing objective: survival - Answers -adjust price levels so the firm can increase sales
volume to match organizational expenses
three major dimensions of prices - Answers -1. cost
2. demand
3. competition-based pricing
cost-based pricing - Answers -adding a dollar amount or percentage to the cost of the
product
demand - Answers -customers pay higher price when the demand for the product is
strong and a lower price when the demand is weak
differential pricing - Answers -charging different prices to different buyers for the same
quality and quantity of the product
promotion pricing - Answers -price is often coordinated with promotion
price leaders - Answers -products priced below the usual markup, near cost, or below
cost
special-event pricing - Answers -advertised sales or price-cutting is used to increase
sales volume and is linked to a holiday, a season, or other event
comparison discounting - Answers -the pricing of a product at a specific level and
simultaneously comparing it to a higher price
