MRKT 3301 - SB11 Review
Four approaches used to set ______ are oriented around demand, cost, profit, and competition.
Approximate price levels
Small changes in price _______.
Can have comparably big effects on company profit
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
Legal and regulatory issues and consumer demand are pricing ________ that limit what a company can charge for its products.
Constraints
Price deals that mislead consumers fall into the category of _________ pricing.
Deceptive
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 Blank______.
Demand curve
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 marketing manager considers pricing objectives and constraints to ______.
Narrow the range of choices
Pricing ________ involve specifying the role of price in an organization's marketing and strategic plans.
Objectives
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
Which of the following are pricing practices that are legally restricted?
Price discrimination Price fixing
A firm must know its competitors' ________ in order to best set its own.
Prices
By focusing on target profit pricing or target return pricing, a firm is using a ________ pricing approach.
Profit-oriented
Fixed costs
Remain at the same level despite changes in production
The ratio of perceived benefits to price is a product's ________.
Value
Which of the following is an example of deceptive pricing?
a bait an switch to lure customers into the store to sell them a higher priced product
Demand-oriented, cost-oriented, profit-oriented, and competition-oriented are four approaches used to set ______.
approximate price levels
Break-even analysis analyzes the relationship between total revenue and total cost to determine profitability ______.
at various levels of output
Common approaches to pricing are oriented around which four elements?
competition cost profit demand
If firms set prices with specific consideration of firms challenging them directly for customers, they have adopted a ________ approach to pricing.
competition-oriented
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
Select all of the following that are common approaches to setting an approximate price level for a product.
cost-oriented competition-oriented demand-oriented
Organizations choosing competitor-oriented approaches to set prices might use which two pricing strategies?
customary pricing loss-leader pricing
Demand-oriented pricing approaches weigh which factors most heavily?
expected customer tastes and preferences
Pricing objectives involves specifying the role of price in what two areas of an organization?
its strategic plans its marketing plans
A demand curve is derived by measuring how many units of a product are sold at various Blank______. Multiple choice question.
levels of price
Price deals that _____ fall into the category of deceptive pricing.
mislead consumers
Marketing managers may identify profit, market share, social responsibility, or even survival as pricing ______.
objectives
Pricing ________ frequently reflect corporate goals, while pricing ________ often relate to conditions existing in the marketplace.
objectives; constraints
A ________ policy is also known as fixed pricing.
one-price
Setting a price with no variation for product buyers is called a ________ policy.
one-price
If a firm sells the same product to different buyers at different prices, it may be considered Blank______. Multiple choice question.
price discrimination
The percentage change in quantity demanded relative to a percentage change in price is known as ______.
price elasticity of demand
The practice of colluding with other firms to set prices is called ______.
price fixing
Cost-oriented approaches to pricing consider which three things in the setting of a product's price?
production costs overhead profit
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
Total _______ is equal to the unit price for a product times the quantity of it sold.
revenue
Price fixing is the conspiracy among firms to _____.
set prices for a product
Which two are profit-oriented approaches to setting a price?
target profit pricing target return pricing
Price is defined as
the money or other considerations exchanged for the ownership or use of a product.
Unit price times quantity sold is ______.
total revenue
Break-even analysis analyzes the relationship between which two at various levels of output?
total revenue and total cost
According to the profit equation, profit is ______.
total revenue minus total cost
Profit = (____ x quantity sold) - (fixed cost + variable cost)
unit price