MKTG Ch 11

Total cost is the sum of which of these?

1. Fixed cost 2. Variable cost

What four factors must be taken into consideration to determine the "right" price for a product?

1. Will it generate enough sales dollars to pay for the marketing of the product? 2. Will the product provide a profit for the company? 3. Will enough money be made to pay for the development and production of the product? 4. What are customers willing to pay for the product?

Pricing objectives involves specifying the role of price in what two areas of an organization?

1. its strategic plans 2. its marketing plans

What two strategies can be used as part of a firm's profit objectives?

1. maximizing current profits 2. target return

What two elements are shown on a demand curve?

1. price 2. quantity sold

Current profit ______ and target ______ are two strategies used by firms that are pursuing a profit pricing objective.

maximization; return

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

quantity demanded; price

Profit = (____ x quantity sold) - (fixed cost + variable cost)

unit price

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

maximum units sold

What is the demand curve?

a graph relating quantity sold and price

Why must a marketing manager consider pricing objectives and constraints?

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

Unit price times quantity sold equals ______.

total revenue

According to the profit equation, profit equals Blank______.

total revenue minus total cost

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

value

Which three items would be subtracted from the list price in order to arrive at the final price of a product?

1. rebates 2. discounts 3. trade-ins

Break-even analysis is a technique that analyzes the relationship between which two variables at various levels of output?

1. total cost 2. total revenue

______ is the ratio of a product's perceived benefits and its price.

Value

Small changes in price Blank______.

can have comparably big effects on company profit

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

constraints

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

constraints

The relationship between price and quantity sold is called the ______.

demand curve

According to the price equation, the actual price is the list price less Blank______, plus extra fees.

incentives and allowances

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

objectives

What element of the marketing mix has a unique role in that it is the place where all other business decisions come together?

price

Break-even analysis can help evaluate the impact of changes in ______ and ______ on ______.

price; costs; profit

Total _______ is equal to the unit price for a product times the quantity of it sold.

revenue

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

at various levels of output

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

at various levels of output

Total cost represents ______.

variable costs plus fixed costs

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

objectives; constraints

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

price elasticity of demand