Marketing Test 3
price elasticity
a measure of the sensitivity of demand to changes in price
A car buyer can choose a base model at one price, or one with a premium sound and navigation system at a higher price. This is an example of _______ pricing.
optional-product
Common Pricing Objectives
(1) Maximize profit, (2) maximize sales, (3) increase market share, (4) meet competition, (5) return on investment
Internal factors that affect pricing include _________________.
The company's overall marketing strategy, objectives, and marketing mix
When a college or university charges more for out-of-state students than in-state students, it is practicing ______________________.
location-based pricing
When sellers set prices in conjunction or collaboration with one another, this illegal practice is known as _______________.
price fixing
Which of the following reverses the usual process of first designing a new product, determining its cost, and then asking, "Can we sell it for that?"
target costing
A variation of break-even pricing is ____________________, which uses the concept of a break-even chart that shows the total cost and total revenue expected at different sales volume levels.
target return
Which of the following refers to setting prices based on buyers' perception of value rather than on the seller's cost?
customer-value based pricing