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Marketing > Chapter 11 > Flashcards

Chapter 11 Flashcards

1
Q

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

A

Price

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2
Q

The practice of exchanging products and services for other products and services rather than for money is known as

A

Barter

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3
Q

The ratio of perceived benefits to price or value
= Perceived benefits divided by price is known as

A

Value

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4
Q

the practice of simultaneously increasing
product and service benefits while maintaining or decreasing price is known as

A

Value Pricing

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5
Q

Total revenue − Total cost; or Profit= (Unit price × Quantity sold) − (Fixed cost + Variable cost)
is the formal for which equation?

A

Profit Equation

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6
Q

What is the profit equation formula?

A

Total revenue − Total cost; or Profit = (Unit price × Quantity sold) − (Fixed cost + Variable cost)

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7
Q

What term involves setting the highest initial price that
customers really desiring the product are willing to pay when introducing a new or innovative product

A

Skimming Price

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8
Q

What term involves setting a high price so that quality-
or status-conscious consumers will be attracted to the product
and buy it.

A

Prestige Pricing

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8
Q

What term involves setting a low initial price on a
new product to appeal immediately to the mass market.

A

Penetration Pricing

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9
Q

What term involves setting prices a few dollars or cents under an even number?

A

Odd-Even Pricing

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10
Q

What term involves the marketing of two or more products in a single package price?

A

Bundle Pricing

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11
Q

What term involves adding a fixed percentage to the cost of all items in a specific product class

A

Standard Markup Pricing

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12
Q

What cost involves summing the total unit cost of providing a product or service an

A

Cost-plus pricing

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13
Q

What term involves setting an annual target of a specific dollar volume of profit

A

Target Profit Pricing

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14
Q

What term involves setting a price to achieve a profit that is a specified percentage of the sales volume

A

Target Return on-sales pricing

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15
Q

What term involves setting a price to achieve an annual target return-on-investment (ROI)

A

Target Return-on-investment pricing

16
Q

What term involves setting a price that is dictated by
tradition, a standardized channel of distribution, or other competitive factors

A

Customary Pricing

17
Q

What term involves setting a
market price for a product or product class based on a
subjective feel for the competitors’ price or market price as the benchmark.

A

Above-, or below-market pricing

18
Q

What term involves deliberately selling a product
below its customary price, not to increase sales, but to attract customers’ attention in hopes that they will buy other products with large markups as well

A

Loss-leader pricing

19
Q

a graph that relates the quantity sold and price, showing the maximum number of units that will be sold at a given price is known as a

A

Demand Curve

20
Q

the percentage change in
quantity demanded relative to a percentage change in price is known as

A

Price Elasticity of Demand

21
Q

the total money received from the sale of a product is known as

A

Total Revenue

22
Q

the total expense incurred by a firm in producing and marketing a product. Total cost is the sum of fixed cost and variable cost is known as

A

Total Cost

23
Q

a technique that analyzes the
relationship between total revenue and total cost to determine profitability at various levels of output is known as

A

Break-Even Analysis

24
Q

What term specifies the role of price in an organization’s
marketing and strategic plans.

A

Pricing Objectives

25
Q

What are the factors that limit the range of prices a firm may set?

A

Pricing Constraints

26
Q

What is the formula for final price?

A

Final Price = List Price-
( Incentives+Allowances) + Extra Fees

27
Q

Final Price = List Price-
( Incentives+Allowances) + Extra Fees
is the formula for which equation?

A

Final Price

28
Q

What is the formula for value?

A

Perceived benefits DIVIDED BY
Price

29
Q

What is the formula for profit?

A

Profit = Total revenue- Total Cost

30
Q

What are the 4 approaches for selecting approximate price level?

A
  • Demand-oriented approaches
  • Cost-oriented approaches
  • Profit-oriented approaches
  • Competition-oriented approaches
31
Q

What are the examples of demand-oriented approaches?

A

Skimming
Penetration
Prestige
Odd-Even
Bundle

32
Q

What are the examples of cost-oriented approaches?

A

Standard markup
Cost-plus

33
Q

What are the examples of profit-oriented approaches?

A

Target profit
Target return on sales
Target return on investment

34
Q

What are the examples of competition-oriented approaches?

A
  • Customary
  • Above, at, or below market
  • Loss leader
35
Q
A

Marketing (31 decks)

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