9100311
Description
Flashcards by Kathleen Keller, updated more than 1 year ago
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Created by Kathleen Keller
over 7 years ago
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| Question | Answer |
| That which is given up in an exchange to acquire a good or service. | PRICE |
| The price charged to customers multiplied by the number of units sold. | Revenue |
| Revenue minus Expenses | Profit |
| Objectives that include profit maximization, satisfactory profits, and target return on investment. | Profit-Oriented Pricing Objectives |
| Net Profit after taxes divided by total assets. Can predetermine desired level of profitability. | Return on Investment ROI |
| Pricing objective based either on market share or on dollar or unit sales. | Sales Oriented Pricing Objectives |
| A company's product sales as a percentage of total sales for that industry | Market Share |
| A pricing objective that maintains existing prices or meets the competition's prices. | Status Quo Pricing |
| The quantity of a product that will be sold in the market at various prices for a specified period. | Demand |
| The quantity of a product that will be offered to the market by a supplier at various prices for a specified period. | Supply |
| The price at which demand and supply are equal. | Price Equilibrium |
| Consumers' responsiveness or sensitivity to changes in price. | Elasticity of Demand |
| A situation in which an increase or a decrease in price will not significantly affect demand for the product. | Inelastic Demand |
| A cost that varies with changes in the level of output. | Variable Cost |
| A cost that does not change as output (production) increases or decreases. | Fixed Cost |
| The change in total costs associated with a one unit change in output. The cost of that next unit produced. | Marginal Cost (MC) |
| The cost of buying the product from the producer plus amounts for profit and for expenses not otherwise accounted for. | Markup Pricing |
| The practice of marking up prices by 100% or doubling the cost. | Keystoning |
| A method of determining what sales volume must be reached before total revenue equals total costs. | Break-Even Analysis |
| A basic, long-term pricing framework, which establishes the initial price for a product and the intended direction for price movements over the product life cycle. | Price Strategy |
| A pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion. | Price Skimming |
| A pricing policy whereby a firm charges a relatively low price for a product initially as a way to reach the mass market. | Penetration Pricing |
| An agreement between two or more firms on the price they will charge for a product. | Price Fixing |
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