Chapter 11. Pricing Products and Services

demand curve

The chart that shows how many units of a product or service consumers will demand during a specific period of time at different prices

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

approximate price levels

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

Common approaches to pricing are oriented around which four elements?

demand profit competition cost

Demand-oriented pricing approaches weigh which factors most heavily?

expected customer tastes and preferences

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

levels of price

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

loss-leader pricing customary pricing

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

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

price

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

profit overhead production costs

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

quantity demanded; price

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

target return pricing target profit pricing

According to the profit equation, profit is ______.

total revenue minus total cost

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

value