what is the last step in the price planning process
Develop pricing tactics
what are average fixed costs
The fixed costs per unit produced
The pricing strategy in which a firm introduces a new product at a very low price to encourage more customers to purchase it is known as
penetration pricing
What are the costs of production that are tied to and vary depending on the number of units produced?
variable costs
what happens when the profit objective is used to determine the pricing strategy
The focus is on a target level of profit growth or a desired net profit margin.
which of the following describes elastic demand for a product
When customers are sensitive to changes in prices, and a change in price results in a substantial change in demand
The pricing tactic in which a firm adds a standard shipping charge to the price for all customers regardless of location is __________ pricing.
uniform delivered
The __________ is primarily used to show the quantity of a product that customers will buy in a given time period, at different prices that might be charged.
demand curve
what is internal reference price
A set price or price range in consumers' minds to which they refer in evaluating a product's price
what is internal reference price
A set price or price range in consumers' minds to which they refer in evaluating a product's price
What is penetration pricing?
The pricing strategy in which a firm introduces a new product at a very low price to encourage more customers to purchase.
Developing pricing tactics is the __________ and final step in the price planning process.
sixth
whats a break even point
The point at which a firm doesn't lose any money but doesn't make any profit
In which of the following pricing methods does the seller total all the costs for the product and then add an amount to arrive at the selling price?
cost plus pricing
Examining the pricing environment is the step in the price planning process that __________.
involves looking at the economy, the competition, government regulation, consumer trends, and the international environment
Setting pricing objectives is the __________ step in the price planning process.
first
_ pricing is the pricing policy of setting prices very low or even below cost to attract customers into a store.
cross leader
The amount added to the cost of a product to create the price at which a channel member will sell the product is known as _
mark up
Which of the following is a set price or price range in consumers' minds to which they refer in evaluating a product's price?
internal reference price
what describes the illegal practice of bait and switch
An advertised price special is used to get customers into the store with the intention of switching them to a higher-priced item
what is loss leader pricing
The pricing policy of setting prices very low or even below cost to attract customers into a store
Which step in the price planning process involves looking at the economy, the competition, government regulation, consumer trends, and the international environment?
examine the pricing environment
why do marketers want to see and understand demand curves
They are primarily used to show the number of units the market will buy in a given time period, at different prices that might be charged.
pricing is a pricing strategy in which the price of a product is raised as demand for that product goes up and lowered as demand goes down.
surge pricing
When customers are sensitive to changes in prices, and a change in price results in a substantial change in demand, the product is said to have
elastic demand
What is the name for the fixed costs per unit produced?
average fixed cost
What is the term used when a company provides a product in its most basic version free of charge but charges money for upgraded versions of the product?
freemium strategy
a trade discount is a
discount off the list price of products to members of the channel of distribution who perform various marketing functions