MKT 13, 14, 17, 18, 19, 20, 21

discount

A reduction from the list price that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller is called

loss-leader pricing.

Deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well, is referred to as

bundle pricing

Marketing two or more products in a single package price is referred to as

target profit pricing

Setting an annual target of a specific dollar volume of profit is referred to as

dynamic pricing policy

Setting different prices for products and services in real time in response to supply and demand conditions is referred to as

fixed-price policy

Setting one price for all buyers of a product or service is referred to as

odd-even pricing

Setting prices a few dollars or cents under an even number is referred to as

product line pricing

The setting of prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item, is referred to as

Target pricing refers to

a method of estimating the price that ultimate consumers would be willing to pay for a product, then working backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers.

Experience curve pricing refers to

a method of pricing based on the learning effect, which holds that the unit cost of many products and services declines by 10 to 30 percent each time a firm's experience at producing and selling them doubles.

Elastic demand exists when a small percentage decrease in price produces a smaller percentage increase in quantity demanded. a small percentage decrease in price produces a larger percentage increase in quantity demanded. an increase in price causes a larger increase in quantity demanded. the quantity demanded remains the same regardless of level of price.

a small percentage decrease in price produces a larger percentage increase in quantity demanded.

Inelastic demand exists when a small percentage decrease in price produces a smaller percentage increase in quantity demanded, and thus decreasing total revenue. the quantity demanded remains the same regardless of any changes in marketing strategies. a small percentage increase in price produces a larger percentage increase in quantity demanded, and therefore, increases total revenue. an increase in price is impossible due to government restrictions.

a small percentage decrease in price produces a smaller percentage increase in quantity demanded, and thus decreasing total revenue.

Setting a market price for a product or product class based on a subjective feel for the competitors' price or market price as the benchmark is referred to as

above-, at-, or below-market pricing.

Standard markup pricing refers to

adding a fixed percentage to the cost of all items in a specific product class.

The practice of exchanging products and services for other products and services rather than for money is referred to as

barter

Yield management pricing refers to

charging different prices to maximize revenue for a set amount of capacity at any given time.

Summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price is referred to as

cost plus pricing

Setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors is referred to as

customary pricing

According to the price equation, final price equals list price minus ________ plus extra fees.

incentives and allowances

The competitive market situation in which many sellers compete on nonprice factors is referred to as

monopolistic competition

The competitive market situation in which the few sellers are sensitive to each other's prices is referred to as

oligopoly

From a marketing viewpoint, ________ is the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

price

Setting the price of a line of products at a number of different specific price points is referred to as

price lining

Factors that limit the range of prices a firm may set are referred to as

pricing constraints

________ = (Unit price × Quantity sold) − Total cost.

profit

The competitive market situation in which many sellers follow the market price for identical, commodity products is referred to as

pure competition

The competitive market situation in which one seller sets the price for a unique product is referred to as

pure monopoly

A target return profit objective implies that a company chooses to set targets whose performance can be measured quickly. reduce investment in any further market or product research. set a profit goal that is often determined by its board of directors. give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets.

set a profit goal that is often determined by its board of directors.

Prestige pricing refers to

setting a high price so that quality or status conscious consumers will be attracted to the product and buy it

Penetration pricing refers to

setting a low initial price on a new product to appeal immediately to the mass market.

Target return-on-sales pricing refers to

setting prices to achieve a profit that is a specified percentage of the sales volume.

Skimming pricing refers to

setting the highest initial price that customers who really desire the product are willing to pay.

Pricing objectives involve reconciling the prices charged by an organization to the values set forth in its business mission. specifying the role of price in an organization's marketing and strategic plans. taking specific steps to compensate for an organization's weaknesses as they apply to price. taking specific steps to capitalize on an organization's internal strengths as they apply to price.

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

A reference value involves comparing the costs and benefits of

substitute items

Setting a price to achieve an annual target return-on-investment (ROI) is referred to as

target return-on-investment pricing.

Value pricing refers to the ratio of perceived benefits to price. the money or other considerations exchanged for the ownership or use of a product or service. list price minus incentives and allowances plus extra fees. the practice of simultaneously increasing product and service benefits while maintaining or decreasing price

the practice of simultaneously increasing product and service benefits while maintaining or decreasing price

Unit volume as a pricing objective refers to the ratio of production costs to the minimum sales price that would still generate profit. the quantity of products to be produced or sold. the total quantity of product sold by a firm relative to the total quantity of product sold by all firms in the industry. the ratio of price per unit to unit variable cost.

the quantity of products to be produced or sold.

A demand curve is a graph that relates the quantity sold and price, which shows the maximum number of units that will be sold at a given price. total production costs to various price points in order to determine how many units must be sold in order to realize a predetermined profit. revenues and costs, which shows the minimum number of units that must be sold to break even. the quantity sold and revenues, which shows the minimum number of units that must be sold in order to make a profit.

the quantity sold and price, which shows the maximum number of units that will be sold at a given price.

The ratio of perceived benefits to price is referred to as

value