MKTG 345: Chapter 11

one-side

A ________ policy is also known as fixed pricing.

objectives

A firm may set goals for its business in terms of profit, sales, or unit volume. These are types of pricing

prices

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

narrow the range of choices among the variety of pricing strategies.

A marketing manager considers pricing objectives and constraints to __________________________________________.

Demand-oriented

A new energy efficient light bulb was introduced at $3.00 (about three times the price of a conventional bulb) and will last 6,000 hours (about four times the conventional bulb).

all buyers of the product

A one-price policy means there is one price for ______________________.

demand

A portion of a ________ curve is shown here.

competitors

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

various levels of output.

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

profit-oriented

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

Predatory pricing

Charging a very low price for a product with the intent of driving competitors out of business

Price discrimination

Charging different prices to different buyers for goods of like grade and quality.

Price fixing

Conspiracy among firms to set prices.

quantity discounts

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

Expected customer tastes and preferences

Demand-oriented pricing approaches weigh which factors most heavily?

approxiamate

Demand-oriented, cost-oriented, and profit-oriented approaches can be used to set a(n) ________ price level for a product.

constraints

Factors that limit the range of prices a firm may set are known as pricing ___________________.

Demand-oriented

Factors underlying customer tastes and preferences are weighed most heavily.

trade

For _______ discounts, reductions off the list price are offered to resellers in the marketing channel on the basis of where they are in the channel and the marketing activities they are expected to perform in the future.

negative.

If total cost is greater than total revenue, then profit is

Competition-oriented

Intel slashed its prices to be more similar to those of AMD, a rival computer chip maker.

constraints

Legal and regulatory issues and consumer demand are pricing ________ that limit what a company can charge for its products.

objectives

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

maximum units sold

On a demand curve, one of the axes represents the price of a product while the other represents the _______________________.

elasticity

Price ________________ of demand is a measure of how sensitive consumer demand and the firm's revenues are to changes in the product's price

mislead consumers

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

Deceptive pricing

Price deals that mislead consumers.

Cost-oriented

Price is set by looking at the production and marketing costs, and then adding enough to cover direct expenses, overhead, and profit.

Competition-oriented

Price setter stresses what "the market" is doing is determining a price.

total revenue

Price times quantity sold is ____________________.

objectives; constraints

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

objectives

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

cost-oriented.

Pricing approaches that consider the production and marketing costs and then add enough to cover direct expenses, overhead, and profit are known as

predatory pricing

Proving the practice of ________ is difficult because it must be shown that there was an explicit attempt to destroy a competitor with the use of a low price.

quantity

Reductions in unit costs for a larger order are known as _________________ discounts.

one-price

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

Cost-oriented

Target priced its new patio furniture sets by adding 15 percent to the invoice price it paid for those products.

Companies' ability to change prices frequently Consumers' access to pricing information from many competitors

The Internet has resulted in which two of the following that affect the competitive environment for pricing?

a graph relating quantity sold and price.

The demand curve is

constraints

The demand for a product class, a product, or a brand, or the newness of a product can act as pricing ________ to limit a firm's options.

reward wholesalers and retailers for marketing functions

The firm's goal in offering a trade discount is to _______________________________________.

price

The money or other consideration (including other products and services) exchanged for the ownership or use of a product is known as

Profit-oriented

The owner of a vacuum cleaner store sets a target of a 20 percent return on sales.

price elasticity of demand

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

Profit-oriented

The price setter balances both revenues and costs to set a price.

value

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

the price

To determine ______ for a product, you must consider limitations based on customers, actual costs, and profits.

price; sold

Total revenue = unit _____ x quantity ______

unit price

Total revenue equals the product quantity sold times is the ____________________.

profit

Total revenue minus total cost is known as ____________.

perceived benefits divided by price.

Value is defined as

what "the market" is doing.

When using competition-oriented pricing approaches, price setters stress

drive its competition out of business

When using predatory pricing, a firm sets a very low price for one or more of its products in order to ____________________________.

What will pay for all associated costs, including marketing? What will provide a profit to the company? What are customers willing to pay?

Which of the following are essential to consider when setting a price?

Price fixing Predatory pricing

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

Target profit pricing Target return pricing

Which of the following are profit-oriented approaches to setting a price?

Trade

_______ discounts are also known as functional discounts.

Competition

________-oriented approaches to pricing set the price to reflect the way the marketer wants consumers to interpret prices relative to competitor's offerings.

Demand

________-oriented pricing approaches weigh factors underlying expected customer tastes and preferences more heavily than other factors.

Cost

_______________-oriented approaches to pricing start with production and manufacturing costs and then add enough to cover direct, expenses, overhead, and profit.

Break-even

________________________ analysis is a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output.