POM- Unit 3 Chapters 12- 17

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

What are customers willing to pay for the product? Will enough money be made to pay for the development and production of the product? Will it generate enough sales dollars to pay for the marketing of the product? Will the product provide a profit for the company?

Demand- oriented

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

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

approximate price levels

Small changes in price _____.

can have comparably big effects on company profit

Legal and regulatory issues and consumer demand are pricing ______ that limit what a company can charge for its products.

constraints

The relationship between price and quantity sold is called the ______.

demand curve

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

its marketing plans its strategic plans

What element of the marketing mix has a unique role in that it is the place where all other business decisions come together?

price

What two elements are shown on a demand curve?

price quantity sold

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

price elasticity of demand

cost-oriented

pricing approaches that consider the production and marketing costs and then add enough to cover direct expenses, overhead, and profit

When a marketing manager sets prices for all items in a product line, seeking to produce a profit for the entire line but not necessarily each product, it is known as

product-line pricing

Common approaches to pricing are oriented around which four elements?

profit demand competition cost

What is the definition of price?

the money or other considerations exchanged for the ownership or use of a product

Why must a marketing manager consider pricing objectives and constraints?

to narrow the range of choices among the variety of pricing strategies

In the profit equation, what is multiplied by quantity sold?

unit price

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

value

When using competition-oriented pricing approaches, price setters stress Blank______.

what "the market" is doing

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

Cost-oriented approaches to pricing consider which three things in the setting of a product's price? Multiple select question. profit consumer preferences overhead production costs product quality market share Correct Answer profit overhead production costs

According to the profit equation, profit equals ______.

total revenue minus total cost