chapter 11 learn smart

profit manufacturing costs overhead

Cost-oriented approaches to pricing considers which of the following in the setting of a products price?

pricing objectives

Marketing managers may identify profit, market share, social responsibility, or even survival as

predatory pricing and price fixing

Pricing practices that are legally restricted

variable

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

standard

_____ markup pricing entails adding a fixed percentage to the cost of all items in a specific product class

demand-oriented pricing

________ approaches weigh factors underlying expected customer taste and preferences more heavily than other factors

one-price

a _____ policy is also known as fixed pricing

dynamic

a _____ pricing policy allows for more responsiveness to demand, cost, and competitive factors than does a fixed-price policy

levels of price

a demand curve is derived by measuring how many units of a product are sold at various

penetration

a firm may introduce a new product with _____ pricing by using a low initial price designed to appeal to the many customers that are believed to be price sensitive

promotional allowance

a price reduction offered to channel members for featuring the manufacturer's product in their advertising or selling activities

elastic

a product with _____ demand is one in which a slight decrease in price results in a relatively large increase in demand or units sold

add extra fees subtract incentives and allowances

according to the price equation, to find the actual price, you should do which of the following to the list price?

total cost and total revenue

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

competition-oriented demand-oriented cost-oriented

common approaches to setting an approximate price level for a product

demand factors

consumer tastes and income are among the factors that determine their willingness and ability to pay for products and services are known as

total revenue

equal to the unit price for a product times the quantity of it sold

demand-oriented

factors underlying customer tastes and preferences are weighed most heavily

costs that do not fluctuate when production changes

fixed costs are

discrimination

if a firm sells the same product to different buyers at different prices, it may be guilty of price _____

at-market

if an organization sets prices similar to those of major competitors, it is using _____ pricing

negative

if total cost is greater than total revenue, then profit is

maximum units sold

on a demand curve, one of the axes represents the price of a product while the other represents the

elasticity

price _____ of demand is a measure of how sensitive consumer demand and the firm's revenues are to changes in the product's price

deceptive pricing

price deals that mislead consumers fall into the category of ____ pricing

cost-oriented

price is set by looking at the production and marketing costs, and then adding enough to cover direct expenses, overhead, and profit

competition-oriented

price setter stresses what "the market" is doing is determining a price

price

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

target return pricing target profit pricing

profit-oriented approaches to setting a price?

example of list price

published tuition

quantity

reductions in unit costs for a larger order are known as _____ discounts

example of extra fees

room and board, activity fees

example of incentive or allowance

scholarship or financial aid

discourages competitors potential to gain market share production costs drop with increased volume

select all of the following that are benefits of a penetration pricing strategy

target return maximizing current profits

strategies that can be used as part of a firm's profit objectives include which two of the following?

break-even

the ______-_____ point is the quantity at which total revenue and total cost are equal

constraints

the demand for a products class, a product, or a brand, or the newness of a product can act as pricing_____ to limit a firm's options

reward wholesalers and retailers for marketing functions

the firms goal in offering a trade discount is to

consumers' access to pricing information from many competitors and companies' ability to change prices frequently

the internet has resulted in which two things that affect the competitive environment for pricing?

bundle

the marketing of two or more products in a single package price

price

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

profit-oriented

the price setter balances both revenues and costs to set a price

attract customers that will hopefully buy other products too, at higher margins

the purpose of using low prices in a loss-leader pricing strategy is to

value

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

decreased profits

the social responsibility pricing objective often results in

seasonal discounts

to encourage buyers to stock inventory earlier than their demand would require

quantity discounts

to encourage customers to place larger orders

cash discounts

to encourage retailers to pay their bill quickly

trade discounts

to reward channel members for future marketing efforts

fixed cost and variable cost

total cost is the sum of what?

change with

variable costs ____ production volume

skimming pricing

when a firm introduces an innovative new product, it may choose ______ pricing, setting the highest initial price that customers who really desire the product are willing to pay

predatory

when using ____ pricing, a firm sets a very low price for one or more of its products with the specific intent to drive its competition out of business

what "the market" is doing

when using competition-oriented pricing approaches, price setters stress

what will pay for all associated costs, including marketing? What are customers willing to pay? What will provide a profit to the company?

which of the following are essential to consider when setting a price?

flexible-price one-price

which two of the following are the options when choosing a price policy?

prestige pricing

with _____ pricing, the marketer must not drop the price of a product below the point where customers become skeptical of its quality and refuse to purchase it

a complex approach that continually matches demand and supply to customize the price for a service

yield management pricing is