final - C11 1. Demand-based pricing means that the selling...

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C11 1. Demand-based pricing means that the selling price is based on an estimate of voloume or quantity that a firm can sell in different markets at different prices. Firms must determine how much product they can sell in… Target costing Yield management pricing Adv: matches customer’s perception of value Dis: may not recover all costs 2. Price elasticity of demandis … Graph When demand is elastic… VS. (examples) 3. What is skimming, penetration, trial? Trial: pros: gets attention; cons: customers may not be willing to pay higher price later 4. Total cost = Contribution margin = Profit margin = Total costs: total of fixed costs and variable costs for a set number of units produced Graph Fomulas 5. Price bundling means selling two or more… A retailer would implement this … Charging one price will…
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final - C11 1. Demand-based pricing means that the selling...

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