Wk 4 - Practice: Ch. 13, Building the Price Foundation [due Day 5]
Click and drag on elements in order Order the types of competitive markets from most competitive to least competitive. NOTE: The most competitive market should be the top item in your list. Monopolistic competition Oligopoly pure competition pure monopoly
1. pure competition 2. monopolistic competition 3. oligopoly 4. pure monopoly
Match the type of competitive market to its correct description. Pure competition Monopolistic competition Oligopoly Pure monopoly
Pure competition : (Many sellers who follow the market price for identical, commodity products) Monopolistic competition: ( Many sellers who compete on nonprice factors) Oligopoly: ( Few sellers who are sensitive to each other's prices) Pure monopoly : ( One seller who sets the price for a unique product)
According to the price equation, to find the actual price, you should do which two things to the list price? Subtract incentives and allowances Add incentives and allowances Add extra fees Subtract extra fees
Subtract incentives and allowances Add extra fees
Total cost is the sum of which of these? Variable cost Marginal cost Unit price Fixed cost
Variable cost Fixed cost
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
Legal and regulatory issues and consumer demand are pricing ______ that limit what a company can charge for its products.
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.
constraints
The relationship between price and quantity sold is called the ______.
demand curve
Pricing objectives involves specifying the role of price in what two areas of an organization? its organizational culture its strategic plans its marketing plans its mission statement
its strategic plans its marketing plans
Current profit ______ and target ______ are two strategies used by firms that are pursuing a profit pricing objective.
maximization; return
On a demand curve, one of the axes represents the price of a product while the other represents the ______.
maximum units sold
Pricing ______ involve specifying the role of price in an organization's marketing and strategic plans.
objectives
Pricing ______ frequently reflect corporate goals, while pricing ______often relate to conditions existing in the marketplace.
objectives; constraints
What element of the marketing mix has a unique role in that it is the place where all other business decisions come together?
price
The percentage change in quantity demanded relative to a percentage change in price is known as ______.
price elasticity of demand
Break-even analysis can help evaluate the impact of changes in ______ and ______ on ______.
price; costs; profit
A firm must know its competitors'______ in order to best set its own.
prices
Price elasticity of demand is expressed as percentage change in ______ divided by the percentage change in ______.
quantity demanded; price
Total _____ is equal to the unit price for a product times the quantity of it sold.
revenue
What two strategies can be used as part of a firm's profit objectives? target return unit volume competitive parity maximizing current profits
target return maximizing current profits
Why must a marketing manager consider pricing objectives and constraints?
to narrow the range of choices among the variety of pricing strategies
The sum of fixed and variable costs is known as ______.
total cost
Break-even analysis is a technique that analyzes the relationship between which two variables at various levels of output? minimum cost maximum value total cost total revenue
total cost total revenue
Unit price times quantity sold equals ______.
total revenue
According to the profit equation, profit equals ______
total revenue minus total cost
Which three items would be subtracted from the list price in order to arrive at the final price of a product? shipping charges trade-ins discounts finance charges rebates
trade-ins discounts rebates
Profit = (____ x quantity sold) - (fixed cost + variable cost)
unit price
The ratio of perceived benefits to price is a product's ________.
value
______ is the ratio of a product's perceived benefits and its price.
value
Total cost represents ______.
variable costs plus fixed costs
