Chapter 13: Marketing Channles Flashcards Preview

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Flashcards in Chapter 13: Marketing Channles Deck (18)
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1
Q

Price

A

Overall sacrifice a consumer is willing to make to acquire a specific product or service

2
Q

Profit Orientation

A

Firms implement a profit orientation specifically by focusing on target profit pricing, maximizing profits or target return pricing

3
Q

Target Profit Pricing

A

Firms usually implement target profit pricing when they have a particular profit goal as their overriding concern

4
Q

Maximizing Profits

A

The maximizing profits strategy relies primarily on economic theory. If a firm can accurately specify a mathematical model that captures all the factors required to explain and predict sales and profits, it should be able to identify the price at which its profits are maximized

5
Q

Target Return Pricing

A

Firms less concerned with the absolute level of profits and more interested in the rate at which their profits are generated relative to their investments turn to target return pricing

6
Q

Sales Orientation

A

Firms using a sales orientation to set prices believe that increasing sales will help the firm more than will increasing profits

7
Q

Premium Pricing

A

Means the firm deliberately prices a product above the prices set for competing products to capture those customers who always shop for the best or for whom price does not matter

8
Q

Competitor Orientation

A

When firms take a competitor orientation, they strategize according to the premise that they should measure themselves primarily against their competition

9
Q

Competitive Parity

A

Means they set prices that are similar to those of their major competitors

10
Q

Status Quo Pricing

A

Changes prices only to meet those of the competition

11
Q

Customer Orientation

A

Explicitly invokes the concept of value. Sometimes a firm may attempt to increase value by focusing on customer satisfaction and setting prices to match consumer expectations

12
Q

Demand Curve

A

Shows how many units of a product or service consumers will demand during a specific period of time at different prices

13
Q

Prestige Products or Services

A

Products or services which consumers purchase for their status rather than their functionality

14
Q

Price Elasticity of Demand

A

Measures how changes in a price affect the quantity of the product demand

15
Q

Elastic

A

Relativity small changes in price will generate fairly large changes in the quantity demanded, so if a firm is trying to increase sales, it can do so by lowering prices

16
Q

Inelastic

A

Generally, if a firm must raise prices, it is helpful to do so with inelastic products or services because in such a market, fewer customers will stop buying or reduce their purchases

17
Q

Income Effect

A

Refers to the change in the quantity of a product demanded by consumers due to a change in their income

18
Q

Substitution Effect

A

Refers to consumers’ ability to substitute other products for the focal brand. The greater the availability of substitute products, the higher the price of elasticity of demand for any given product will be