Chapter 2 Flashcards
The earliest commercial exchanges, goods or services were exchanged for other goods or
services
Barter
it is where a seller provides a product to a buyer in return for something in exchange
Commercial Exchange
product that is tangible
Goods
result of human or mechanical effort
Service
an individual who purchases a product for his or her own use
Consumer
an individual or group who purchases the product in order to resell it or for other business purposes
Customer
it is what is given in a commercial exchange in return for a good or service
Price
T or F
A cost is what a firm pays, while a price is what a business charge
True
What is the term for price when in college course or education
Tuition
What is the term for price when it comes to use of a place to live or use of equipment for a period of time
Rent
What is the term for price when its the use of money
Interest
What is the term for price when used in professional services: for lawyers, doctors, consultants
Fee
What is the term for price when for insurance
Premium
What is the term for price for transportation
Fare
What is the term for price used of a road, bridge, or long distance phone rate
Toll
What is the term for price for work of managers
Salary
What is the term for price for work of hourly workers
Wages
What is the term for price used in sales effort
Commission
The key to business success is to focus on
satisfying customer needs. This signifies that a business strives to meet consumer needs in every way possible
Marketing Concept
The four elements of the marketing mix
- Product development
- Placement/ distribution
- Promotion
- Pricing
Designing, naming, and packaging goods and/or services that meet client needs
Product Development
efforts to get the product to customers when and where they want it.
Placement/ distribution
the act of spreading information about a product and/or the company that makes it
Promotion
entails deciding what a client must provide in exchange for a product
Pricing
T or F
Pricing create value; Product, distribution and Promotion harvest value
False. Pricing harvests value; Product, distribution and Promotion creates value
refer to the benefits, or the satisfactions of needs and wants, that a product
provides to customers
Value
Three categories of pricing issues
- Buyer seller interactivity in determining prices
- Price structure
- Price format
a process involving some number of prices and offers and statements supporting the
validity of each.
Haggling
The seller and the customer would then try to arrive at an amount they can both agree on
Haggling
A price arrived at by the buyer–seller interactions of negotiation or the interactions of auction or bidding would be referred to as
Interactive Price
The price that the seller actually expects to receive and sticking to it is referred to as
Fixed Price
refers to the specific way prices are set or organized within a business
Price structure
The practice of charging different customers different prices for the same item is known as
Price Segmentation
The form of expression of a price is known as
Price Format
The question of whether a price should be expressed as a single number or as the sum of more than one number is the issue
Price partitioning
T or F
It is possible for a large company to experience problems in the effective implementation of pricing decisions.
True
the price of the item that will appear on the
customer’s bill
Invoice price
T or F
A business organization should take steps to help ensure that everyday marketing decisions fit with the organization’s strategies and long-term interests.
False. A business organization should take steps to help ensure that everyday PRICING decisions fit with the organization’s strategies and long-term interests.
