marketing

Unit price times quantity sold is ______.

total revenue

The relationship, or ratio, between a product's perceived benefits and the consumer's costs is known as its ______.

value

-oriented approaches to pricing regard expected customer tastes and preferences as the most important factors in the decision.

Blank 1: Demand

Pricing approaches that consider the production and marketing costs and then add enough to cover direct expenses, overhead, and profit are known as ______ approaches.

cost-oriented

A demand curve enables a firm to examine prices Blank______.

in terms of quantity sold

________-oriented pricing approaches weigh factors underlying expected customer tastes and preferences more heavily than other factors.

Demand

cost is the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold.

Blank 1: Fixed

The demand for a product class, a product, or a brand, or the newness of a product can act as pricing ________ to limit a firm's options.

constraints

Organizations choosing competitor-oriented approaches to set prices might use which two pricing strategies?

customary pricing loss-leader pricing

When the New York Mets set higher ticket prices for games versus the popular New York Yankees than for those versus the Pittsburgh Pirates, its pricing is based on ______.

demand

Common approaches to pricing are oriented around which four elements?

demand profit competition cost

Generally, a seller can charge a higher price for a product when Blank______.

demand for the product is high

Select all of the following that are common approaches to setting an approximate price level for a product.

demand-oriented cost-oriented competition-oriented

When using predatory pricing, a firm sets a very low price for one or more of its products in order to ______.

drive its competition out of business

Prestige pricing means the organization deliberately prices a product ________ so that ________ consumer will be attracted to the product and buy it.

high; quality-conscious

Price fixing, price discrimination, and predatory pricing are ______.

legally prohibited

A demand curve is derived by measuring how many units of a product are sold at various Blank______.

levels of price

A marketing manager considers pricing objectives and constraints to ______.

narrow the range of choices among the variety of pricing strategies

Marketing managers may identify profit, market share, social responsibility, or even survival as pricing ______.

objectives

Marketers who use Blank______ to signal the quality of an item, must be careful not to drop the price of the product below the point where customers become skeptical of its quality and refuse to purchase it.

prestige pricing

Charging different prices to different buyers for goods of like grade and quality is known as ______.

price discrimination

A firm must know its competitors' ________ in order to best set its own.

prices

Price elasticity of demand is expressed as percentage change in ________ divided by the percentage change in ________.

quantity demanded; price

What two strategies can be used as part of a firm's profit objectives?

target return maximizing current profits

Price is defined as

the money or other considerations exchanged for the ownership or use of a product.

The practice of colluding with other firms to set prices is called ______.

price fixing

When a buyer arrives at a retail location and is told that the product she saw in a promotion is out of stock and no rainchecks are available, the retailer might be accused of ______.

bait and switch

Small changes in price Blank______.

can have comparably big effects on company profit

In penetration pricing, the initial price of the product is set Blank______.

low, to appeal to the mass market

If a firm prices its products relatively low compared to the cost to develop, with the prospect of gaining a high market share, it is utilizing which profit-oriented pricing objective?

managing for long-run profits

When a new product appeals to those segments of consumers who are willing to pay a high initial price to have an innovation first, marketers should use a ________ pricing strategy.

skimming

________ pricing is seen as the exact opposite of skimming pricing when introducing a new product.

Penetration

Factors that limit the range of prices a firm may set are known as pricing ______.

constraints

Many South Korean HDTV manufacturers are willing to give up immediate profits for long-term penetration of the market. This is a pricing objective known as ______.

managing for long-run profits

Current profit ________ and target ________ are two strategies used by firms that are pursuing a profit pricing objective.

maximization; return

Pricing ________ frequently reflect corporate goals, while pricing ________ often relate to conditions existing in the marketplace.

objectives; constraints

Which of the following are reductions in unit costs for a large order?

quantity discounts

Which two are profit-oriented approaches to setting a price?

target return pricing target profit pricing

A one-price policy means there is one price for ______.

all buyers of the product

A company can encourage its wholesalers and retailers to pay their bills quickly by offering ________ discounts.

cash

The ratio of perceived benefits to price is a product's .

Blank 1: value

Setting a price with no variation for product buyers is called a ________ policy.

one-price

Cash discounts are offered because they encourage customers to ______.

pay their bills quickly

The money or other consideration (including other products and services) exchanged for the ownership or use of a product is known as ______.

price

If a firm sells the same product to different buyers at different prices, it may be considered Blank______.

price discrimination

The percentage change in quantity demanded relative to a percentage change in price is known as ______.

price elasticity of demand

A firm's goal in offering a trade discount is to _____.

reward wholesalers and retailers for marketing functions

Price fixing is the conspiracy among firms to _____.

set prices for a product

Profit = (____ x quantity sold) - (fixed cost + variable cost)

unit price

Price deals that mislead consumers fall into the category of pricing.

Blank 1: deceptive

Reductions in unit costs for a larger order are known as discounts.

Blank 1: quantity or bulk

Which of the following is an example of deceptive pricing?

a bait an switch to lure customers into the store to sell them a higher priced product

Pricing objectives involves specifying the role of price in what two areas of an organization?

its marketing plans its strategic plans

Price deals that _____ fall into the category of deceptive pricing.

mislead consumers

By focusing on target profit pricing or target return pricing, a firm is using a ________ pricing approach.

profit-oriented

When a manufacturer offers a grocery retailer an extra amount of free product for including this product in weekly advertising and in-store sales, this is considered a ________ allowance.

promotional

Fixed costs Blank______.

remain at the same level despite changes in production

In what pricing strategy are prices lowered in a series of steps with the demand by those who really desire the product being satisfied at the highest prices?

skimming pricing

Break-even analysis analyzes the relationship between which two at various levels of output?

total cost total revenue

According to the profit equation, profit is ______.

total revenue minus total cost

Reductions off the list price offered to resellers in the marketing channel on the basis of where they are in the channel and the marketing activities they are expected to perform in the future are called ______ discounts.

trade

When using pricing, a firm sets a very low price for one or more of its products with the specific intent to drive its competition out of business.

Blank 1: predatory

A price reduction offered to channel members for featuring the manufacturer's product in their advertising or selling activities is called a(n) allowance.

Blank 1: promotional

Total is equal to the unit price for a product times the quantity of it sold.

Blank 1: revenue

What four factors must be taken into consideration to determine the "right" price for a product?

What are customers willing to pay for the product? Will it generate enough sales dollars to pay for the marketing of the product? Will the product provide a profit for the company? Will enough money be made to pay for the development and production of the product?

Demand-oriented, cost-oriented, profit-oriented, and competition-oriented are four approaches used to set Blank______.

approximate price levels

Four approaches used to set ______ are oriented around demand, cost, profit, and competition.

approximate price levels

Break-even analysis analyzes the relationship between total revenue and total cost to determine profitability ______.

at various levels of output

A used car dealer advertises a $5,000 SUV for sale in the local paper. When prospective customers arrive at the dealership they are told that the $5,000 SUV is sold and are offered a $15,000 SUV instead. This is an example of ______.

bait and switch

If firms set prices with specific consideration of firms challenging them directly for customers, they have adopted a ________ approach to pricing.

competition-oriented

A pricing constraint firms face is the price that its _________ are currently charging and likely to charge in the future.

competitors

Cost-oriented approaches to pricing consider which three things in the setting of a product's price?

overhead profit production costs