MKTG 3600 Chapter 11
On a demand curve, one of the axes represents the price of a product while the other represents the _____.
maximum units sold
Price elasticity of demand is expressed as percentage change in ________ divided by the percentage change in ________.
quantity demanded; price
Competition-oriented approaches to pricing
stress what "the market" is doing.
Total revenue equals the product quantity sold times
the unit price.
Drag and drop pricing approaches against the corresponding examples of the approaches.
Cost-oriented ---Target priced its new patio furniture sets by adding 15 percent to the invoice price it paid for those products. Competition-oriented ----- Intel slashed its prices to be more similar to those of AMD, a rival computer chip maker. Demand-oriented ----- A new energy efficient light bulb was introduced at $3.00 (about three times the price of a conventional bulb) and will last 6,000 hours (about four times the conventional bulb). Profit-oriented ----- The owner of a vacuum cleaner store sets a target of a 20 percent return on sales.
Which of the following does cost-oriented approaches to pricing consider while setting of a product's price?
Profit Manufacturing costs Overhead costs
________ - ________ approaches to pricing start with production and manufacturing costs and then add enough to cover direct expenses, overhead, and profit.
cost - oriented
Drag and drop pricing approaches against the corresponding focal points of the approaches.
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. Demand-oriented ----- Factors underlying customer tastes and preferences are weighed most heavily. Profit-oriented ---- The price setter balances both revenues and costs to set a price.
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
________-oriented pricing approaches weigh factors underlying expected customer tastes and preferences more heavily than other factors.
demand
____________ -oriented approaches to pricing regard expected customer tastes and preferences as the most important factors in the decision.
demand
Price ________ of demand is a measure of how sensitive consumer demand and the firm's revenues are to changes in the product's price.
elasticity
Demand-oriented pricing approaches weigh which factors most heavily?
expected customer tastes and preferences
Price fixing, price discrimination, and predatory pricing are ______.
legally prohibited
Pricing ________ frequently reflect corporate goals, while pricing ________ often relate to conditions existing in the marketplace.
objectives; constraints
Organizations using ________ pricing set the initial price low for the introduction of the new product to appeal immediately to the mass market.
penetration
The money or other considerations exchanged for the ownership or use of a product or service is its ________.
price
By focusing on target profit pricing or target return pricing, a firm is using a ________ pricing approach.
profit-oriented
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.
skimming
When a new product appeals to those segments of consumers who are willing to pay a high initial price to have an innovation first, marketers should use a ________ pricing strategy.
skimming
In ________, prices are lowered in a series of steps with the demand by those who really desire the product being satisfied at the highest prices.
skimming pricing
Which two are profit-oriented approaches to setting a price?
target return pricing target profit pricing
When using competition-oriented pricing approaches, price setters stress _____.
what "the market" is doing
