Chapter 11

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

Approximate

A ---- analysis is a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output. (one word each blank)

Break-Even

A ________ visually shows that the total revenue curve and the total cost curve intersect at a point of zero profit.

Break-even

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

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

Select all of the following that are common approaches to setting an approximate price level for a product.

Demand-oriented Competition-oriented Cost-oriented

Uber and Lyft customers often complain about the practice of "surge" or "prime-time" pricing used by these companies during periods of peak demand. This is an example of a __________ pricing policy.

Dynamic

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

Objectives Restraints

Organizations using ________ pricing set the initial price low for the introduction of the new product to appeal immediately to the mass market.

Penetration

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

Price

The money or other considerations exchanged for the ownership or use of a product or service is its

Price

________ represents the vertical axis of a demand curve graph.

Price per unit

of demand is a measure of how sensitive consumer demand and the firm's revenues are to changes in the product's price. (one word)

Price-elasticity

Patents and limited competition reduce ________, making high prices possible for technology products early in their life cycles.

Pricing constraints

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

Profit oriented

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

Target-profit Target return

The newer a product and the earlier it is in its life cycle, ______.

The higher the price can usually be charged

Break-even analysis analyzes the relationship between which two at various levels of output?

Total cost Total revenue

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

Various levels of output

What is target pricing?

estimating the price that the ultimate consumer would be willing to pay for a product, then working backward through markups taken by retailers and wholesalers to determine wholesale price

Total revenue = unit _____ x quantity ______

price; sold

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

quantity demanded; price

Price elasticity of demand refers to

the percentage change in quantity demanded relative to the percentage change in price.

Price-elasticity of demand refers to

the percentage change in quantity demanded relative to the percentage change in price.