Lesson 24

Question 1

Price elasticity

Answer 1

Helps marketers understand whether raising or lowering prices will enable them to achieve their pricing objectives

Question 2

Marketing should ask the following questions when evaluating price elasticity

Answer 2

How much in a perfect will the price change have on demand?
How were the last to say be calculated it does it confirm the original assumption?
What affect does elasticity have on the pricing objectives?

Question 3

Target ROI

Answer 3

Pricing a product to achieve profit maximization

Question 4

Penetration pricing

Answer 4

Pricing a product low to achieve market share

Question 5

Price skimming

Answer 5

Pricing a new product high when it is a first mover

Question 6

Competitor based pricing

Answer 6

Pricing a product relative to other products in the market

Question 7

Stability pricing

Answer 7

Pricing a product to match a products value proposition

Question 8

Value pricing

Answer 8

To meet or exceed customer expectations

Question 9

Bottom line profit

Answer 9

Often established based on expenses it takes a to bring a product to market the pricing of product is set to achieve the bottom line profit which is called target return on investment ROI