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MICROECONOMICS > M6 > Flashcards

M6 Flashcards

1
Q

exchange or transaction

A

Price

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2
Q

given up to obtain benefits

A

Buyer’s View

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3
Q

reflects the revenue generated for each product sold.

A

Seller’s View

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4
Q

FIVE C’S OF PRICING

A
  • Company Objectives
  • Customers
  • Cost
  • Competition
  • Channel Members
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5
Q

methods and objectives may ultimately be oriented.

A

Company Objectives

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6
Q

firms usually implement target profit pricing

A

Profit Orientation

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7
Q

firms using a sales orientation to set prices believes that increasing sales.

A

Sales Orientation

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8
Q

firms take a competitor, they strategize according to the premise.

A

Competitor Orientation

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9
Q

invokes the concept of value. Focusing on customer satisfaction and setting prices.

A

Customer Orientation

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10
Q

developed their company objectives, understand consumer reactions to different prices.

A

Customers

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11
Q

shows how many units of products or services consumers will demand.

A

Demand Curves and Pricing

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12
Q

refers to % change in quantity demanded to % change in price.

A

Price Elasticity of Demand

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13
Q

FACTORS INFLUENCING PRICE ELASTICITY OF DEMAND:

A

Income Effect
Substitution Effect
Cross-Price Elasticity

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14
Q

people’s income increases, their spending behavior changes.

A

Income Effect

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15
Q

consumer’s ability to substitute other products for the present or focal brand.

A

Substitution Effect

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16
Q

this happens in the case of complementary products.

A

Cross-Price Elasticity

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17
Q

to make effective pricing decisions, firms must understand their cost structures.

A

Cost

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18
Q

labor and material that vary with production volume.

A

Variable Costs

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19
Q

cost that remain essentially at same level.

A

Fixed Costs

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20
Q

simply the sum of fixed and variable costs.

A

Total Costs

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21
Q

competition has profound impact on pricing strategies.

A

Competition

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22
Q

THREE LEVELS OF COMPETITIONS:

A

Oligopolistic
Monopolistic
Pure

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23
Q

manufacturers, wholesalers, and retailers can have different views when it comes to pricing strategies.

A

Channel Members

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24
Q

Types of Pricing Strategies

A

Cost-Based
Competitor Based
Value Based

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25
Q

determine the final price to be charged starting with the cost.

A

Cost-Based Methods

26
Q

prices are set to reflect the way they want.

A

Competitor Based

27
Q

focus on overall value of product offering

A

Value-Based

28
Q

PRICING METHODS

A
  • Premium Pricing
  • Penetration Pricing
  • Economy Pricing
  • Price Skimming
  • Psychological Pricing
  • Pricing Variations
  • Optional Product Pricing
  • Captive Product Pricing
  • Product Bundle Pricing
  • Geographical Pricing
  • Value Pricing
29
Q

uses a high price, but gives a good or services

A

Premium Pricing

30
Q

offers low price to gain market - share

A

Penetration Pricing

31
Q

placed at ‘no frills’ low price

A

Economy Pricing

32
Q

when prices are high- usually during introduction “parity”

A

Price Skimming

33
Q

to get a customer to respond on an emotional, rather than rational basis.

A

Psychological Pricing

34
Q

‘off-peak’ pricing, early booking discounts etc.

A

Pricing Variations

35
Q

e.g optional extras- BMW famously under-equipped

A

Optional Product Pricing

36
Q

products that complement others. e.g Gillete Razors (low price) Blades (high price)

A

Captive Product Pricing

37
Q

sellers combine several products at the same price e.g software, books, CD’s

A

Product Bundle Pricing

38
Q

different prices for customers in different parts of the world.

A

Geographical Pricing

39
Q

using during difficult economic conditions

A

Value Pricing

40
Q

A set of interdependent organizations
(intermediaries) involved in the process of
making a product or service available for
use or consumption by the consumer or
business user.

A

Distribution Channel

41
Q

TYPE OF CHANNEL MEMBERS

A
  1. Resellers
  2. Retailers
  3. Wholesalers
  4. Industrial Distributors
42
Q

generally purchase or take
ownership of products from the marketing company with the
intention of selling to others.

A

Resellers

43
Q

Organizations that sell products directly to
final consumers.

A

Retailers

44
Q

Organizations that purchase products from
suppliers

A

Wholesalers

45
Q

Firms that work mainly in the
business-to-business market selling products obtained from
industrial suppliers.

A

Industrial Distributors

46
Q

Organizations that mainly work to bring
suppliers and buyers together in exchange for a fee.

A

Agents and Brokers

47
Q

Offer services aiding in the
movement of products such as assistance with transportation, storage, and order processing.

A

Distribution Service Firms

48
Q

FACTORS AFFECTING DISTRIUBUTION CHANNEL

A
  • Product Issues
  • Promotion Issues
  • Pricing Issues
  • Target Market Issues
49
Q

LEVEL OF DISTRIBUTION COVERAGE

A
  • Mass Coverage
  • Selective Coverage
  • Exclusive Coverage
50
Q

DISTRIBUTION SYSTEMS: DIRECT

A
  • Direct Marketing System
  • Direct Retail System
  • Personal Selling System
  • Assisted Marketing System
51
Q

DISTRIBUTION SYSTEMS: INDIRECT

A
  • Single-Party Selling System
  • Multiple- Party Selling System
52
Q

is a form of corporate communication
that uses various methods to reach a targeted
audience

A

Promotion

53
Q

TYPES OF PROMOTION OBJECTIVES:

A
  • Build Awareness
  • Create Interest
  • Provide Information
  • Stimulate Demand
  • Reinforce the brand
54
Q

INTEGRATED MARKETING COMMUNICATION:

A
  • Advertising
  • Personal Selling
  • Public Relations
  • Direct Marketing
  • Sales Promotion
55
Q

Any Paid Form of
Nonpersonal Presentation and
Promotion of Ideas, Goods, or
Services by an Identified
Sponsor.

A

Advertising

56
Q

describes promotional methods
using special short-term techniques to persuade members of a target market to respond or
undertake certain activity.

A

Sales Promotion

57
Q

involves the cultivation of
favorable relations for organizations and products

A

Public Relations

58
Q

is a promotional method in which
one party (e.g., salesperson)

A

Personal Selling

59
Q

is a sometimes controversial
sales method by which advertisers approach
potential customers directly with products or
services.

A

Direct Marketing

60
Q
A

MICROECONOMICS (7 decks)

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