MKTG 3340 FINAL TEST QUESTIONS WITH ANSWERS

common mistakes in pricing price is too cost oriented price is not revised often enough price doesn't take into account the rest of the marketing mix prices are not varied enough throughout the product line, market segments, distribution channels marketers perspective vs consumers perspective on price marketers: demand and cost consumer: value received value value pricing the practice of simultaneously increasing product and service benefits while maintaining or decreasing price value costs psychological temporal monetary value benefits functional social personal steps in setting price 1. Identify pricing objectives and constraints 2. Estimate demand and revenue 3. Determine cost, volume, and profit relationships identify pricing objectives profit sales market share unit volume survival social responsibility identify pricing constraints demand for product class, product, and brand newness of the product: stage in product life cycle single product vs product line cost of producing and marketing the product cost of changing pricing and the time period they apply competitors prices factors effecting demand price consumer tastes availability of substitutes consumer income elastic demand product is price sensitive the percentage change in quantity demanded is GREATER than the percentage change in price inelastic demand