MKTG Chapter 11

___________________ 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. (Enter one word in the blank)

Fixed

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

approximate price levels

Common approaches to pricing are oriented around which four elements?

competition demand cost profit

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

constraints

Legal and regulatory issues and consumer demand are pricing ________ that limit what a company can charge for its products.

constraints

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

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

cost-oriented demand-oriented competition-oriented profit-oriented

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

customary pricing loss-leader pricing

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

demand

The chart that shows how many units of a product or service consumers will demand during a specific period of time at different prices is known as the Blank______.

demand curve

Demand-oriented pricing approaches weigh which factors most heavily?

expected customer tastes and preferences

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

its marketing plans its strategic plans

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

Pricing ________ involve specifying the role of price in an organization's marketing and strategic plans.

objectives

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

price elasticity of demand

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

profit-oriented

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

quantity demanded; price

Fixed costs Blank______.

remain at the same level despite changes in production

Total is equal to the unit price for a product times the quantity of it sold. (Enter one word in the blank.)

revenue

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

target profit pricing target return pricing

Unit price times quantity sold is ______.

total revenue

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

total revenue total cost

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

at various levels of output

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

competition-oriented

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

objectives; constraints

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

overhead production costs profit