MKTG Chap 11

________-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. (Enter one word in the blank)

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

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

competition-oriented

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

competition-oriented demand-oriented cost-oriented

A pricing constraint firms face is the price that its _________ are currently charging and likely to charge in the future.

competitors

Factors that limit the range of prices a firm may set are known as pricing ______.

constraints

The demand for a product class, a product, or a brand, or the newness of a product can act as pricing ________ to limit a firm's options.

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

____________-oriented approaches to pricing regard expected customer tastes and preferences as the most important factors in the decision.

demand

Common approaches to pricing are oriented around which four elements?

demand cost competition profit

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

elasticity

_____________ 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. (Enter one word in the blank)

fixedd

A demand curve enables a firm to examine prices

in terms of quantity sold

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

its marketing plans its strategic plans

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

level of price

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

loss-leader pricing customary pricing

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 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

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

pricee

A firm must know its competitors' ________ in order to best set its own.

pricess

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

production costs overhead profit

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

profit-oriented

Reductions in unit costs for a larger order are known as __________ discounts.

quantity

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

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

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

target return pricing target profit pricing

What four factors must be taken into consideration to determine the "right" price for a product?

the cost of production, the price elasticity of demand, market conditions, and government policies

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

total cost total 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