MKTG Chapter 13

step 2

Estimating demand, sales revenue, and price elasticity are issues that would be addressed during ______ of the price-setting process

Price

From a marketing viewpoint, _____________ is the money or other considerations (including other products and services) exchanged for the ownership pr use of a product or service

determine cost, volume, and profit relationships

Step 3 in the Price-Setting Process

Consumer income

When estimating demand, price is not the only factor to be considered. Three other elements emphasized by economists are consumer tastes, price and availability of similar products, and ______________________

values

a society's personally or socially preferable modest of conduct or states of existence that tend to persist over time

Price

the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

value pricing

the practice of simultaneously increasing product and service benefits while maintaining or decreasing price.

break even chart

A graphic presentation of the break-even analysis that shows when total revenue and total cost intersect to identify profit or loss for a given quantity sold.

survival

Some specialty retailers pursue a ________________ pricing objective to generate cash to ward off bankruptcy

identify pricing objectives and constraints

Step 1 in the Price-Setting Process

estimate demand and revenue

Step 2 in the Price-Setting Process

price elasticity of demand

The percentage change in quantity demanded relative to a percentage change in price.

fixed cost

The sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold.

variable cost

The sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold

total cost

The total expense incurred by a firm in producing and marketing a product. This is the sum of fixed cost and variable cost

pricing constraints

These are factors that limit the range of prices a firm may set

pricing objectives

This involves specifying the role of price in an organization's marketing and strategic plans.

break even analysis

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

demand curve

This is is a graph that relates the quantity sold and price, showing the maximum number of units that will be sold at a given price.

break even point

This is the quantity at which total revenue and total cost are equal. Profit then comes from all units sold

profit equation

This is? Profit= Total rev - total cost = (unit price x quantity sold) - (fixed cost + variable cost)

barter

This practice of exchanging products and services for other products and services rather than for money

Pricing constraints

Which tern describes factors that limit the range of prices a firm may set?

total revenue

the total money received from the sale of a product.