MRKT 3301 - SB11 Review

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

Approximate price levels

Small changes in price _______.

Can have comparably big effects on company profit

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

Competitors

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

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

Deceptive

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

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.

Fixed

A marketing manager considers pricing objectives and constraints to ______.

Narrow the range of choices

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

Objectives

The money or other considerations exchanged for the ownership or use of a product or service is its ________.

Price

What element of the marketing mix has a unique role in that it is the place where all other business decisions come together?

Price

Which of the following are pricing practices that are legally restricted?

Price discrimination Price fixing

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

Prices

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

Profit-oriented

Fixed costs

Remain at the same level despite changes in production

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

Value

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

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

approximate price levels

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

at various levels of output

Common approaches to pricing are oriented around which four elements?

competition cost profit demand

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

competition-oriented

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 competition-oriented demand-oriented

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

customary pricing loss-leader pricing

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 strategic plans its marketing plans

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

levels of price

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

mislead consumers

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

objectives

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

objectives; constraints

A ________ policy is also known as fixed pricing.

one-price

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

one-price

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

price discrimination

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

price elasticity of demand

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

price fixing

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

production costs overhead profit

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

quantity demanded; price

Customers are encouraged to buy a larger number of a single product when a firm offers ______.

quantity discounts

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

revenue

Price fixing is the conspiracy among firms to _____.

set prices for a product

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

target profit pricing target return pricing

Price is defined as

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

Unit price times quantity sold is ______.

total revenue

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

total revenue and total cost

According to the profit equation, profit is ______.

total revenue minus total cost

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

unit price