MKTG Chapter 13
step 2
Estimating demand, sales revenue, and price elasticity are issues that would be addressed during ______ of the price-setting process
Price
From a marketing viewpoint, _____________ is the money or other considerations (including other products and services) exchanged for the ownership pr use of a product or service
determine cost, volume, and profit relationships
Step 3 in the Price-Setting Process
Consumer income
When estimating demand, price is not the only factor to be considered. Three other elements emphasized by economists are consumer tastes, price and availability of similar products, and ______________________
values
a society's personally or socially preferable modest of conduct or states of existence that tend to persist over time
Price
the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.
value pricing
the practice of simultaneously increasing product and service benefits while maintaining or decreasing price.
break even chart
A graphic presentation of the break-even analysis that shows when total revenue and total cost intersect to identify profit or loss for a given quantity sold.
survival
Some specialty retailers pursue a ________________ pricing objective to generate cash to ward off bankruptcy
identify pricing objectives and constraints
Step 1 in the Price-Setting Process
estimate demand and revenue
Step 2 in the Price-Setting Process
price elasticity of demand
The percentage change in quantity demanded relative to a percentage change in price.
fixed cost
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.
variable cost
The sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold
total cost
The total expense incurred by a firm in producing and marketing a product. This is the sum of fixed cost and variable cost
pricing constraints
These are factors that limit the range of prices a firm may set
pricing objectives
This involves specifying the role of price in an organization's marketing and strategic plans.
break even analysis
This is a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output.
demand curve
This is is a graph that relates the quantity sold and price, showing the maximum number of units that will be sold at a given price.
break even point
This is the quantity at which total revenue and total cost are equal. Profit then comes from all units sold
profit equation
This is? Profit= Total rev - total cost = (unit price x quantity sold) - (fixed cost + variable cost)
barter
This practice of exchanging products and services for other products and services rather than for money
Pricing constraints
Which tern describes factors that limit the range of prices a firm may set?
total revenue
the total money received from the sale of a product.