16 Questions
What is the equation for calculating the final price?
Price = List price - (Discounts and allowances) + Extra fees
What is the term used for exchanging goods by goods or services?
Counter trade
How is value defined in relation to price?
Value = Perceived benefits / Price
What does creative marketing engage in when it comes to pricing?
Value-based pricing
What critical decision is made by a marketing executive according to the text?
Pricing
What is exchanged for the ownership or use of a good or service according to the text?
Money or other considerations
What is the relationship between price and quantity sold?
Price affects the quantity sold indirectly
Which of the following is NOT a pricing constraint or objective in setting prices?
Inflation rate
What is the main purpose of marginal analysis in marketing decisions?
To study whether revenue from an additional product is greater than the marginal cost
In breakeven analysis, what does the breakeven point represent?
The quantity at which total revenue equals total cost
What is skimming pricing?
Setting a price higher than what customers are willing to pay
What does penetration pricing involve?
Setting a price to gain a larger market share quickly
What is Step 3 in setting prices primarily concerned with?
Determining cost, volume, and profit relationships
What is Step 6 in setting prices focused on?
Making special adjustments to list or quoted price
What does breakeven analysis analyze?
The relationship between total revenue and total cost to determine profitability at various levels of outputs.
What is the main purpose of demand-based methods in selecting an approximate price level?
To help find an approximate price level based on customer demand.
Test your knowledge of pricing concepts and the price equation with this quiz. Explore topics such as list price, discounts, allowances, and extra fees.
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