Module 6 Price Introduction Quiz

<p>Specific, measureable, actionable, reasonable, and timetabled</p> Signup and view all the answers

<p>Return on activities</p> Signup and view all the answers

<p>Made price comparison shopping easier and efficient</p> Signup and view all the answers

<p>Prestige/luxury goods</p> Signup and view all the answers

<p>When Price Elasticity of Demand (PEoD) is greater than 1</p> Signup and view all the answers

<p>Markup Pricing</p> Signup and view all the answers

<p>The volume of units sold at which total costs equal total revenue</p> Signup and view all the answers

<p>To establish a minimum selling price for a product</p> Signup and view all the answers

<p>When determining the cost of production before making a product</p> Signup and view all the answers

<p>Fixed Cost / (Unit Price - Unit Variable Cost)</p> Signup and view all the answers

<p>Selling at a quantity where marginal cost equals marginal revenue</p> Signup and view all the answers

<p>It involves estimating costs and revenues at various volumes and prices</p> Signup and view all the answers

<p>Maintaining sales volumes and market share through competitive pricing</p> Signup and view all the answers

<p>It helps in understanding the point at which total revenue equals total costs</p> Signup and view all the answers

<p>It often results in a race to the bottom in terms of pricing</p> Signup and view all the answers

<p>Competitive structure of the industry</p> Signup and view all the answers

<p>Gives the organisation greater power over profit margins</p> Signup and view all the answers

<p>Close, long-term, and formal</p> Signup and view all the answers

<p>Value added to the offering</p> Signup and view all the answers

<p>To ensure profitable operations of partners</p> Signup and view all the answers

<p>Lifetime costs involved with the purchase</p> Signup and view all the answers

<p>Price Skimming</p> Signup and view all the answers

<p>Penetration Pricing</p> Signup and view all the answers

<p>Differential Pricing</p> Signup and view all the answers

<p>Product differentiation</p> Signup and view all the answers

<p>Price</p> Signup and view all the answers

<p>Special-Event Pricing links discounted prices with special/seasonal events</p> Signup and view all the answers

<p>Buyers and sellers agreeing on the value expressed in the price</p> Signup and view all the answers

<p>Pricing objectives being specific, measurable, actionable, reasonable, and timetabled</p> Signup and view all the answers

<p>Ensuring pricing strategies are fair and comply with regulations</p> Signup and view all the answers

<p>May focus on long-term prosperity rather than immediate profitability</p> Signup and view all the answers

<p>Balancing return on activities with the organization's mission</p> Signup and view all the answers

<p>Customer value and price ceiling set by customer's perception of value.</p> Signup and view all the answers

<p>Laws and regulations require pricing to be explicit and transparent, preventing deception or discrimination.</p> Signup and view all the answers

<p>Subsidies may allow organizations to offer products at lower prices, impacting their pricing objectives.</p> Signup and view all the answers

<p>Consumer willingness and ability to purchase a product based on unsatisfied wants/needs.</p> Signup and view all the answers

<p>NFP organizations need to generate enough funds to sustain their activities through pricing.</p> Signup and view all the answers

<p>Differential Pricing involves charging different buyers different prices for the same product. An example could be offering discounts to students or senior citizens for the same movie ticket.</p> Signup and view all the answers

<p>The Legal Environment can restrict certain pricing practices such as price fixing or predatory pricing. It also influences the way companies set prices to comply with regulations.</p> Signup and view all the answers

<p>The key objectives of Pricing include profit maximization, revenue maximization, market share growth, and competitive advantage. These objectives guide businesses in setting prices to achieve specific goals.</p> Signup and view all the answers

<p>Subsidies for Loss Making Services involve providing financial support to services that would otherwise operate at a loss. They are implemented to ensure essential services are available to the public despite being economically unviable.</p> Signup and view all the answers

<p>Demand-Based Pricing takes into account customers' willingness to pay and sets prices accordingly. By understanding customer preferences and price sensitivity, businesses can optimize pricing strategies to maximize revenue.</p> Signup and view all the answers

<p>PEoD measures how quantity changes in response to a change in price. If PEoD is greater than 1, demand is considered price elastic, and if PEoD is less than 1, demand is considered inelastic. This influences pricing strategies by helping businesses understand how sensitive consumers are to price changes.</p> Signup and view all the answers

<p>Businesses should be cautious of setting prices significantly above the intrinsic value of a product to avoid unethical practices.</p> Signup and view all the answers

<p>Subsidies for loss-making services can influence pricing objectives by allowing organizations to offer products or services at lower prices, even if they are not profitable in the short term.</p> Signup and view all the answers

<p>The legal environment plays a crucial role in pricing strategies by setting regulations and guidelines on pricing practices, preventing anti-competitive behavior, and ensuring consumer protection.</p> Signup and view all the answers

<p>Understanding customer behavior allows businesses to tailor pricing methods to meet consumer needs, set competitive prices, and create value propositions that resonate with their target market.</p> Signup and view all the answers