common mistakes in pricing correct answer: 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 cons...
MKTG 3340 FINAL Questions And Answers
common mistakes in pricing correct answer: 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 correct answer: marketers:
demand and cost
consumer:
value received
value correct answer: value pricing correct answer: the practice of simultaneously increasing product and service benefits while maintaining or decreasing price
value costs correct answer: psychological
temporal
monetary
value benefits correct answer: functional
social
personal steps in setting price correct answer: 1. Identify pricing objectives and constraints
2. Estimate demand and revenue
3. Determine cost, volume, and profit relationships
identify pricing objectives correct answer: profit
sales
market share
unit volume
survival
social responsibility
identify pricing constraints correct answer: 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 correct answer: price
consumer tastes
availability of substitutes
consumer income
elastic demand correct answer: product is price sensitive
the percentage change in quantity demanded is GREATER than the percentage change in price
inelastic demand correct answer: product is NOT price sensitive the percentage change in quantity demanded is LESS than the percentage change in price
unitary demand correct answer: sales revenue remains the same
the percentage change in quantity demanded is IDENTICAL to the percentage change in price
market shares correct answer: measurement of a company's sales in a market relative to its competitors
total revenue correct answer: total dollar sales generated
unit sales correct answer: the measure of sales volume (ounces, grams, gallons, liters, pounds, cases, etc.)
total costs correct answer: unit contribution correct answer: the amount of money that the sale of one unit will contribute to overall fixed costs and add to the profit of a company
profit correct answer: % profit margin correct answer: margin analysis in the channel correct answer: break even analysis correct answer: point either in volume or dollars that where total costs = total revenues
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