Marketing Test 3

price elasticity

a measure of the sensitivity of demand to changes in price

A car buyer can choose a base model at one​ price, or one with a premium sound and navigation system at a higher price. This is an example of​ _______ pricing.

optional-product

Common Pricing Objectives

(1) Maximize profit, (2) maximize sales, (3) increase market share, (4) meet competition, (5) return on investment

Internal factors that affect pricing include​ _________________.

The​ company's overall marketing​ strategy, objectives, and marketing mix

When a college or university charges more for​ out-of-state students than​ in-state students, it is practicing​ ______________________.

location-based pricing

When sellers set prices in conjunction or collaboration with one​ another, this illegal practice is known as​ _______________.

price fixing

Which of the following reverses the usual process of first designing a new​ product, determining its​ cost, and then​ asking, "Can we sell it for​ that?"

target costing

A variation of​ break-even pricing is​ ____________________, which uses the concept of a​ break-even chart that shows the total cost and total revenue expected at different sales volume levels.

target return

Which of the following refers to setting prices based on​ buyers' perception of value rather than on the​ seller's cost?

customer-value based pricing