MKTG 341 Ch.11

Common approaches to pricing are oriented around which four elements?

1. cost 2. demand 3. profit 4. competition

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

1. cost-oriented 2. demand-oriented 3. competition-oriented

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

1. its strategic plans 2. its marketing plans

Organizations choosing competitor-oriented approaches to set prices might use which two pricing strategies?

1. loss-leader pricing 2. customary pricing

Cost-oriented approaches to pricing consider which three things in the setting of a product's price?

1. overhead 2. profit 3. production costs

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

1. target return pricing 2. target profit pricing

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

1. total revenue 2. total cost

________-oriented pricing approaches weigh factors underlying expected customer tastes and preferences more heavily than other factors.

Demand

_________ cost is 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.

Fixed

A one-price policy means there is one price for ______.

all buyers of the product

Demand-oriented, cost-oriented, profit-oriented, and competition-oriented are four approaches used to set ______.

approximate price levels

Four approaches used to set ______ are oriented around demand, cost, profit, and competition.

approximate price levels

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

at various levels of output

Small changes in price ______.

can have comparably big effects on company profit

If firms set prices with specific consideration of firms challenging them directly for customers, they have adopted a ________ approach to pricing.

competition-oriented

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

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

The chart that shows how many units of a product or service consumers will demand during a specific period of time at different prices is known as the ______.

demand curve

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

A marketing manager considers pricing objectives and constraints to ______.

narrow the range of choices among the variety of pricing strategies

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

objectives

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

objectives; constraints

Setting a price with no variation for product buyers is called a ________ policy.

one-price

Value is defined as ______.

perceived benefits divided by price

The money or other consideration (including other products and services) exchanged for the ownership or use of a product is known as ______.

price

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

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

he money or other consideration (including other products and services) exchanged for the ownership or use of a product is known as ______.

price

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

price elasticity of demand

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

profit-oriented

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

quantity demanded; price

Customers are encouraged to buy a larger number of a single product when a firm offers ______.

quantity discounts

Which of the following are reductions in unit costs for a large order?

quantity discounts

Fixed costs ______.

remain at the same level despite changes in production

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

revenue

Unit price times quantity sold is ______.

total revenue

According to the profit equation, profit is ______.

total revenue minus total cost

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

unit price

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

value