Chapter 11. Pricing Products and Services
demand curve
The chart that shows how many units of a product or service consumers will demand during a specific period of time at different prices
Demand-oriented, cost-oriented, profit-oriented, and competition-oriented are four approaches used to set
approximate price levels
Pricing approaches that consider the production and marketing costs and then add enough to cover direct expenses, overhead, and profit are known as ______ approaches.
cost-oriented
Common approaches to pricing are oriented around which four elements?
demand profit competition cost
Demand-oriented pricing approaches weigh which factors most heavily?
expected customer tastes and preferences
A demand curve is derived by measuring how many units of a product are sold at various
levels of price
Organizations choosing competitor-oriented approaches to set prices might use which two pricing strategies?
loss-leader pricing customary pricing
Marketing managers may identify profit, market share, social responsibility, or even survival as pricing ______.
objectives
Pricing ________ frequently reflect corporate goals, while pricing ________ often relate to conditions existing in the marketplace.
objectives; constraints
A ________ policy is also known as fixed pricing.
one-price
What element of the marketing mix has a unique role in that it is the place where all other business decisions come together?
price
Cost-oriented approaches to pricing consider which three things in the setting of a product's price?
profit overhead production costs
Price elasticity of demand is expressed as percentage change in ________ divided by the percentage change in ________.
quantity demanded; price
Which two are profit-oriented approaches to setting a price?
target return pricing target profit pricing
According to the profit equation, profit is ______.
total revenue minus total cost
The ratio of perceived benefits to price is a product's
value