pricing

Question 1

5 C’s

Answer 1

competition, costs, company objectives, customers, channel members

Question 2

profit-oriented

Answer 2

demand products be priced so that they’ll meet a certain profit margin

Question 3

sales-oriented

Answer 3

set prices very low to generate new sales and take away from competitors even if profits suffer

Question 4

competitor-oriented

Answer 4

set prices very low to discourage new companies from entering the market

Question 5

customer-oriented

Answer 5

target a segment of customers who highly value a product and will pay premium prices

Question 6

price elasticity

Answer 6

% change in quantity / % change in price

Question 7

elastic

Answer 7

price sensitive; elasticity is less than -1

Question 8

inelastic

Answer 8

not price sensitive; elasticity is greater than -1

Question 9

monopoly

Answer 9

less price competition; less firms: one firm controls the market

Question 10

oligopoly

Answer 10

more price competition; less firms: a handful of firms control the market

Question 11

monopolistic competition

Answer 11

less price competition; more firms: many firms selling differentiated products at different prices

Question 12

pure competition

Answer 12

more price competition; more firms: many firms selling commodities for the same prices

Question 13

channel members

Answer 13

Manufacturers, wholesalers, and retailers can have different
perspectives on pricing strategies

Question 14

everyday low pricing

Answer 14

Saves consumers money while reducing search costs

Question 15

high/low pricing

Answer 15

Provides the thrill of the chase for the lowest price

Question 16

penetration pricing

Answer 16

Starts at low price to get large unit sales volume and faster diffusion

Question 17

price skimming

Answer 17

Starts at the highest possible price and lowers it later