Services - Answer-the intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value
4 I's of Services - Answer-Four unique elements to services: intangibility, inconsistency, inseparability, and inventory
7 P's of ...
MGT 103 Exam 2 Questions with
Complete Answers
Services - Answer-the intangible activities or benefits that an organization provides to
satisfy consumers' needs in exchange for money or something else of value
4 I's of Services - Answer-Four unique elements to services: intangibility, inconsistency,
inseparability, and inventory
7 P's of Services Marketing - Answer-Expanded marketing mix concept. Includes
original 4 P's (product, price, promotion, place/distribution) as well as people, physical
environment, and process.
Revenue Equation - Answer-Revenue = Price x Quantity
Profit Equation - Answer-Profit = Total Revenue - Total Cost
Profit = (Unit Price x Quantity Sold) - (Fixed Cost + Variable Cost)
Six steps in setting Price - Answer-Step 1: Identify pricing objectives and constraints
Step 2: Estimate demand and revenue
Step 3: Determine cost, volume, and profit relationships
Step 4: Select an approximate price level
Step 5: Set list or quoted price
Step 6: Make special adjustments to list or quoted price
Step 1 in setting price - Answer-Identify pricing objectives and constraints
- objectives like profit, market share, and survival
- constraints like demand, newness, cost, and competition
Step 2 in setting price - Answer-Estimate demand and revenue
-demand estimation
-sales revenue estimation
-price elasticity estimation
Step 3 in setting price - Answer-Determine cost, volume, and profit relationships
- cost estimation
- marginal analysis, in relation to profit
- Break-even analysis, in relation to profit
Price Elasticity of Demand (E) - Answer-E = Percentage Change in Qd/Percentage
Change in Price
Total Cost - Answer-Total expense incurred by a firm in producing and marketing a
product. Sum of FC and VC
Fixed Cost - Answer-Sum of expenses a firm that is stable and does not change w/
quantity of a product
Variable Cost - Answer-Sum of the expenses that vary directly with the quantity of a
product that is produced
Unit Variable Cost (UVC) - Answer-VC/Q
Demand Curve - Answer-A graph relating quantity sold and price, which shows the
maximum number of units that will be sold at a given price
Price Elasticity of Demand - Answer-The percentage change in quantity demanded
relative to a percentage change in price
Break-even analysis - Answer-a technique that analyzes the relationship b/w total
revenue and total cost to determine profitability at various levels of output
Pricing objectives - Answer-specify the role of price in an organization's marketing and
strategic plans
Pricing constraints - Answer-factors that limit the range of prices a firm may set
Step 5 in setting price - Answer-Set list or quoted price
-Fixed price or dynamic price
-Company, customer, and competitive effects
-Incremental costs and revenue
Step 6 in setting price - Answer-Make special adjustments to list or quoted price
- Discounts
- Allowances
- Geographical adjustments
CH14 Slides have a lot of pricing types - Answer-Skimming, penetration, prestige, price
lining, odd-even, target, bundle, yield management, standard markup, cost-plus,
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller lectknancy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
