Final exam study notes - Marketing 396 Notes Final Exam The Final Examination covers Lessons 8 to 14(textbook Chapters 11 to 17 and Chapter 19 and

Final exam study notes - Marketing 396 Notes Final Exam The...

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Marketing 396 Notes Final Exam The Final Examination covers Lessons 8 to 14 (textbook Chapters 11 to 17 and Chapter 19) and consists of two parts. Part I contains 30 multiple-choice questions; Part II contains eight short-answer questions, from which you must select five questions to answer. Chapter 11 Price The amount of money charged for a product or service; the sum of all values that customers exchange for the benefits of having or using the product or service Customer Value-based pricing Setting price based on buyers’ perceptions of value rather than on the seller’s cost Good-Value pricing Offering the right combination of quality and good service at a fair price Value-added pricing Attaching value-added features and services to differentiate a company’s offers and charging higher prices Cost-based pricing Setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk. Fixed costs (overhead) Costs that do not vary with production or sales level Variable costs Costs that vary directly with the level of production Total costs The sum of the fixed and variable costs for any given level of production Experience Curve (learning curve) The drop in the average per-unit production cost that comes with accumulated production experience Cost-plus pricing (markup pricing) Adding a standard markup to the cost of the product Break-even pricing (target return pricing) Setting price to break even on the costs of making and marketing a product or setting price to make a target return Competition-based pricing Setting prices based on competitor’s strategies, costs, prices and market offerings Target costing Pricing that starts with an idea selling price and then targets costs that will ensure that the price is met Demand curve A curve that shows the number of units the market will buy in a given time period at different prices that might be charged Price elasticity A measure of the sensitivity of demand to changes in price Market-skimming pricing (price skimming) Setting a high price for a new product to skim maximum revenues payer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales Market penetration pricing Setting a low price for a new product to attract a large number of buyers and a large market share Product line pricing Setting the price steps between various product line based on cost differences between the products, customer evaluations of different features, and competitors’ prices Optional product pricing The pricing of optional or accessory products along with the main product Captive product pricing Setting a price for products that must be used along with a main product, such as blades for a razor and games for a video game console By-product pricing Setting a price for by-products to make the main product’s price more competitive Product bundle pricing Combining several products and offering the bundle at a reduced price Discount
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  • Winter '18
  • Marketing, producer, Notes Final Exam

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