Sales Revenue - Price x Quantity sold, money made before factoring in costs
Market Share - Ratio of a firms sales to the industry
- used when sales in an industry are flat or declining
Unit Volume - total amount sold
- used when trying to bring up consumer demand to match production capacity
Survival - the process of staying alive
- used when a firm cant match rivals price cuts
Social Responsibility - when a firm forgoes greater profits to meet obligations to society
Pricing Constraints - Demand
, Newness
Cost of Production
whether Single Product or Product Line
Cost of Changing prices
Type of competitive market
Demand - the greater the demand, the higher price that can be charged
Newness - products can be sold for higher prices earlier in their life cycles
Cost of Production - firms are forced to price products in a way that ensures their distribution partners
profit as well
Single Product vs Product line - single/unique products can be sold for higher price
when a company has a range of similar products they kind of have to stay in line with eachother, price
wise
Cost of Changing Prices - cost of updating online sites, catalog retail avenues, etc.
Pure Competition market - many sellers and consistent market price
(Agriculture- Wheat/Corn)
same benefit of corn, price is determined by what consumers want to pay
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