UCF MAR 3023 Exam 4 Review (Ch. 14-17) Questions and Answer Rated A
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The overall sacrifice a consumer is willing to make—mon-
What is the definition of *price*?
ey, time, energy—to acquire a specific product or service.
Competition, Costs, Company Objectives, Customers,
What are the 5 C's of Pricing?
Channel Members
A company objective that can be implemented by focus-
What is *Profit-Orientation*? ing on target profit pricing, maximizing profits, or target
return pricing.
A pricing strategy implemented by firms when they have
a particular profit goal as their overriding concern; uses
What is *Target Profit Pricing*?
price to stimulate a certain level of sales at a certain profit
per unit.
A profit strategy that relies primarily on economic theory.
If a firm can accurately specify a mathematical model that
What is *Maximizing Profits*? 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.
A pricing strategy implemented by firms less concerned
with the absolute level of profits and more interested in
What is *Target Return Pricing*? 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.
A company objective based on the belief that increasing
What is *Sales Orientation*?
sales will help the firm more than will increasing profits.
A competitor-based pricing method by which the firm
deliberately prices a product above the prices set for com-
What is *Premium Pricing*?
peting products to capture those consumers who always
shop for the best or for whom price does not matter.
What is *Competitor Orientation*? 1/9
, A company objective based on the premise that the firm
should measure itself primarily against its competition.
A firm's strategy of setting prices that are similar to those
What is *Competitive Parity*?
of major competitors.
A competitor-oriented strategy in which a firm changes
What is *Status Quo Pricing*?
prices only to meet those of competition.
A company objective based on the premise that the firm
What is *Customer Orientation*? should measure itself primarily according to whether it
meets its customers' needs.
Shows how many units of a product or service consumers
What is the *Demand Curve*?
will demand during a specific period at ditterent prices.
Measures how changes in a price attect the quantity of
the product demanded; specifically, the ratio of the per-
What is the *Price Elasticity of Demand*?
centage change in quantity demanded to the percentage
change in price.
Refers to a market for a product or service that is price
What is Price *Elastic*? sensitive; that is, relatively small changes in price will gen-
erate fairly large changes in the quantity demanded.
Refers to a market for a product or service that is price
What is Price *Inelastic*? insensitive; that is, relatively small changes in price will not
generate large changes in the quantity demanded.
Refers to the process of charging ditterent prices for
What is *Dynamic Pricing*? goods or services based on the type of customer, time of
the day, week, or even season, and level of demand.
Refers to the change in the quantity of a product demand-
What is *Income Ettect*?
ed by consumers due to a change in their income.
What is the *Substitution Ettect*?
2/9
If you found this helpful, *Venmo* me @*ASerros* to
show your appreciation! Good luck!
The overall sacrifice a consumer is willing to make—mon-
What is the definition of *price*?
ey, time, energy—to acquire a specific product or service.
Competition, Costs, Company Objectives, Customers,
What are the 5 C's of Pricing?
Channel Members
A company objective that can be implemented by focus-
What is *Profit-Orientation*? ing on target profit pricing, maximizing profits, or target
return pricing.
A pricing strategy implemented by firms when they have
a particular profit goal as their overriding concern; uses
What is *Target Profit Pricing*?
price to stimulate a certain level of sales at a certain profit
per unit.
A profit strategy that relies primarily on economic theory.
If a firm can accurately specify a mathematical model that
What is *Maximizing Profits*? 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.
A pricing strategy implemented by firms less concerned
with the absolute level of profits and more interested in
What is *Target Return Pricing*? 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.
A company objective based on the belief that increasing
What is *Sales Orientation*?
sales will help the firm more than will increasing profits.
A competitor-based pricing method by which the firm
deliberately prices a product above the prices set for com-
What is *Premium Pricing*?
peting products to capture those consumers who always
shop for the best or for whom price does not matter.
What is *Competitor Orientation*? 1/9
, A company objective based on the premise that the firm
should measure itself primarily against its competition.
A firm's strategy of setting prices that are similar to those
What is *Competitive Parity*?
of major competitors.
A competitor-oriented strategy in which a firm changes
What is *Status Quo Pricing*?
prices only to meet those of competition.
A company objective based on the premise that the firm
What is *Customer Orientation*? should measure itself primarily according to whether it
meets its customers' needs.
Shows how many units of a product or service consumers
What is the *Demand Curve*?
will demand during a specific period at ditterent prices.
Measures how changes in a price attect the quantity of
the product demanded; specifically, the ratio of the per-
What is the *Price Elasticity of Demand*?
centage change in quantity demanded to the percentage
change in price.
Refers to a market for a product or service that is price
What is Price *Elastic*? sensitive; that is, relatively small changes in price will gen-
erate fairly large changes in the quantity demanded.
Refers to a market for a product or service that is price
What is Price *Inelastic*? insensitive; that is, relatively small changes in price will not
generate large changes in the quantity demanded.
Refers to the process of charging ditterent prices for
What is *Dynamic Pricing*? goods or services based on the type of customer, time of
the day, week, or even season, and level of demand.
Refers to the change in the quantity of a product demand-
What is *Income Ettect*?
ed by consumers due to a change in their income.
What is the *Substitution Ettect*?
2/9
