AACSB 3 LL 2 Learning Recognize the major factors considered in

Aacsb 3 ll 2 learning recognize the major factors

  • Rutgers University
  • MARKETING 301
  • Notes
  • bigbobsnotes
  • 256
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AACSB: 3 LL: 2 Learning Objective: 14-02 Recognize the major factors considered in deriving a final list or quoted price from the approximate price level 168. (p. 358) Marginal analysis refers to A. a continuing, concise trade-off of incremental costs against incremental revenues. B. the change in total cost that results from producing and marketing one additional unit of a product. C. a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output. D. a continuing concise trade-off of increased incremental costs and decreasing revenues. E. a technique that analyzes the relationship between market share, revenues, and profit relative to changes in production. Marginal analysis (Chapter 13), involves a continuing, concise trade-off of incremental costs against incremental revenues. AACSB: 3 LL: 3 Learning Objective: 14-02 Recognize the major factors considered in deriving a final list or quoted price from the approximate price level 14-181
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Chapter 14 - Arriving at the Final Price 169. (p. 358) Although the form of marginal analysis might take the guise as such questions as, "Should we extend our hours to include Sundays?" or "What if we put more apples in the pie?" the basic principle remains the same: A. As long as a marketing action breaks even, the action is worth taking. B. Expected incremental revenues from pricing and other marketing actions must more than offset incremental costs. C. Don't rock the boat, if your program is making a profit, leave well enough alone. D. If you are not willing to take risks, even if the numbers tell you otherwise, your business will ultimately fail. E. Marketing and finance are two different animals; if it feels right in your gut...go for it. Expected incremental revenues from pricing and other marketing actions must more than offset incremental costs. AACSB: 3 LL: 3 Learning Objective: 14-02 Recognize the major factors considered in deriving a final list or quoted price from the approximate price level 170. (p. 359) It is relatively easy to measure the incremental cost of a new advertising campaign; what is not as easy is A. measuring the extra fixed cost involved. B. measuring the extra variable cost involved. C. measuring the incremental revenue generated by the change. D. determining whether customers who stop buying the product are reacting negatively to the advertisement or to some other aspect of the product itself. E. determining what percentage of the ad-generated revenue should be reinvested into additional advertisements of the same form. A firm can measure the incremental cost of a new advertising campaign quite easily because the costs figures are readily available. It is difficult, however, to measure the incremental revenue generated by the advertising campaign.
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