a _______ is what is being charged or exchanged for a product or service
What is price?
what is being charged or exchanged for a product or service
What is value?
What a product or service is worth to a consumer, or the maximum amount a consumer would pay
Value is what a product or service is ______ to a consumer
Price is what is being ______ or exchanged for a product or service
What are fixed costs?
costs associated with the operating and marketing expenses of a company
Fixed costs are costs associated with...
the operating and marketing expenses of a company
Fixed costs are the costs associated with the _______ and _______ expenses of a company
Do fixed costs change with the number of products sold?
an example of this type of cost is the cost of renting a warehouse to store product
Fixed costs ____ ____ over the number of units sold
What are variable costs?
the per-unit costs associated with the product.
the per-unit costs associated with the product are called...
what is an example of variable costs?
the cost of material to make the product. If it costs $1 in material to make a widget, then it costs the company $1 in variable costs each time it produces a widget.
the breakeven point for a product is...
the point at which revenues equal expenses
what is a breakeven quantity?
A breakeven quantity is the quantity the company needs to sell at a certain price in order to cover fixed costs.
A breakeven quantity is the quantity the company needs to ______ at a certain price in order to cover ______ costs.
Thr breakeven price is the amount...
the amount a marketer needs to price a product in order to cover expenses at a certain quantity sold.
The amount a marketer needs to price a product in order to cover expenses at a certain quantitiy sold is called...
the quantity the company needs to sell at a certain price in order to cover fixed costs is called...
What is the first step to developing a pricing structure?
how there particular industry behaves with prices
What are the two general types of industries for pricing?
What happens in a dumb industry?
companies tend to compete for price
In a dumb industry companies...
tend to compete for price
What is a company’s main strategy for winning customers in a dumb industry?
its main differentiator is to simply have the lowest price.
Competition for the lowest priced product is called...
what is a "price sensitive" customer greatly influecned by?
the price of the product
In which price market do you find price senstive buyers?
Dumb markets lead to...
price sensitive customers and price wars