UCF MAR 3023 EXAM 4 REVIEW (CH. 14-17) | QUESTIONS AND ANSWERS | SCORED A+.
If you found this helpful, *Venmo* me @*ASerros* to show your appreciation! Good luck! - (ANSWER)
What is the definition of *price*? - (ANSWER)The overall sacrifice a consumer is willing to make—
money, time, energy—to acquire a specific product or service.
What are the 5 C's of Pricing? - (ANSWER)Competition, Costs, Company Objectives, Customers, Channel
Members
What is *Profit-Orientation*? - (ANSWER)A company objective that can be implemented by focusing on
target profit pricing, maximizing profits, or target return pricing.
What is *Target Profit Pricing*? - (ANSWER)A pricing strategy implemented by firms when they have a
particular profit goal as their overriding concern; uses price to stimulate a certain level of sales at a
certain profit per unit.
What is *Maximizing Profits*? - (ANSWER)A profit strategy that relies primarily on economic theory. If a
firm can accurately specify a mathematical model that captures all the factors required to explain and
predict sales and profits, it should be able to identify the price at which its profits are maximized.
What is *Target Return Pricing*? - (ANSWER)A pricing strategy implemented by firms less concerned
with the absolute level of profits and more interested in the rate at which their profits are generated
relative to their investments; designed to produce a specific return on investment, usually expressed as
a percentage of sales.
What is *Sales Orientation*? - (ANSWER)A company objective based on the belief that increasing sales
will help the firm more than will increasing profits.
What is *Premium Pricing*? - (ANSWER)A competitor-based pricing method by which the firm
deliberately prices a product above the prices set for competing products to capture those consumers
who always shop for the best or for whom price does not matter.
What is *Competitor Orientation*? - (ANSWER)A company objective based on the premise that the firm
should measure itself primarily against its competition.
, UCF MAR 3023 EXAM 4 REVIEW (CH. 14-17) | QUESTIONS AND ANSWERS | SCORED A+.
What is *Competitive Parity*? - (ANSWER)A firm's strategy of setting prices that are similar to those of
major competitors.
What is *Status Quo Pricing*? - (ANSWER)A competitor-oriented strategy in which a firm changes prices
only to meet those of competition.
What is *Customer Orientation*? - (ANSWER)A company objective based on the premise that the firm
should measure itself primarily according to whether it meets its customers' needs.
What is the *Demand Curve*? - (ANSWER)Shows how many units of a product or service consumers will
demand during a specific period at different prices.
What is the *Price Elasticity of Demand*? - (ANSWER)Measures how changes in a price affect the
quantity of the product demanded; specifically, the ratio of the percentage change in quantity
demanded to the percentage change in price.
What is Price *Elastic*? - (ANSWER)Refers to a market for a product or service that is price sensitive;
that is, relatively small changes in price will generate fairly large changes in the quantity demanded.
What is Price *Inelastic*? - (ANSWER)Refers to a market for a product or service that is price insensitive;
that is, relatively small changes in price will not generate large changes in the quantity demanded.
What is *Dynamic Pricing*? - (ANSWER)Refers to the process of charging different prices for goods or
services based on the type of customer, time of the day, week, or even season, and level of demand.
What is *Income Effect*? - (ANSWER)Refers to the change in the quantity of a product demanded by
consumers due to a change in their income.
What is the *Substitution Effect*? - (ANSWER)Refers to consumers' ability to substitute other products
for the focal brand, thus increasing the price elasticity of demand for the focal brand.
If you found this helpful, *Venmo* me @*ASerros* to show your appreciation! Good luck! - (ANSWER)
What is the definition of *price*? - (ANSWER)The overall sacrifice a consumer is willing to make—
money, time, energy—to acquire a specific product or service.
What are the 5 C's of Pricing? - (ANSWER)Competition, Costs, Company Objectives, Customers, Channel
Members
What is *Profit-Orientation*? - (ANSWER)A company objective that can be implemented by focusing on
target profit pricing, maximizing profits, or target return pricing.
What is *Target Profit Pricing*? - (ANSWER)A pricing strategy implemented by firms when they have a
particular profit goal as their overriding concern; uses price to stimulate a certain level of sales at a
certain profit per unit.
What is *Maximizing Profits*? - (ANSWER)A profit strategy that relies primarily on economic theory. If a
firm can accurately specify a mathematical model that captures all the factors required to explain and
predict sales and profits, it should be able to identify the price at which its profits are maximized.
What is *Target Return Pricing*? - (ANSWER)A pricing strategy implemented by firms less concerned
with the absolute level of profits and more interested in the rate at which their profits are generated
relative to their investments; designed to produce a specific return on investment, usually expressed as
a percentage of sales.
What is *Sales Orientation*? - (ANSWER)A company objective based on the belief that increasing sales
will help the firm more than will increasing profits.
What is *Premium Pricing*? - (ANSWER)A competitor-based pricing method by which the firm
deliberately prices a product above the prices set for competing products to capture those consumers
who always shop for the best or for whom price does not matter.
What is *Competitor Orientation*? - (ANSWER)A company objective based on the premise that the firm
should measure itself primarily against its competition.
, UCF MAR 3023 EXAM 4 REVIEW (CH. 14-17) | QUESTIONS AND ANSWERS | SCORED A+.
What is *Competitive Parity*? - (ANSWER)A firm's strategy of setting prices that are similar to those of
major competitors.
What is *Status Quo Pricing*? - (ANSWER)A competitor-oriented strategy in which a firm changes prices
only to meet those of competition.
What is *Customer Orientation*? - (ANSWER)A company objective based on the premise that the firm
should measure itself primarily according to whether it meets its customers' needs.
What is the *Demand Curve*? - (ANSWER)Shows how many units of a product or service consumers will
demand during a specific period at different prices.
What is the *Price Elasticity of Demand*? - (ANSWER)Measures how changes in a price affect the
quantity of the product demanded; specifically, the ratio of the percentage change in quantity
demanded to the percentage change in price.
What is Price *Elastic*? - (ANSWER)Refers to a market for a product or service that is price sensitive;
that is, relatively small changes in price will generate fairly large changes in the quantity demanded.
What is Price *Inelastic*? - (ANSWER)Refers to a market for a product or service that is price insensitive;
that is, relatively small changes in price will not generate large changes in the quantity demanded.
What is *Dynamic Pricing*? - (ANSWER)Refers to the process of charging different prices for goods or
services based on the type of customer, time of the day, week, or even season, and level of demand.
What is *Income Effect*? - (ANSWER)Refers to the change in the quantity of a product demanded by
consumers due to a change in their income.
What is the *Substitution Effect*? - (ANSWER)Refers to consumers' ability to substitute other products
for the focal brand, thus increasing the price elasticity of demand for the focal brand.
