Chapter 14 & 16 - Price and Place

Question 1

What are the 5 C’s Pricing?

Answer 1

1) Company objectives
2) Customers
3) Costs
4) Competition
5) Channel Members

Question 2

Company Objectives Strategies

Answer 2

1) Profit oriented (target profit pricing & maximizing my profits)
2) Sales oriented (focus on increasing sales, concerned w/ overall market share)
3) Competitor oriented (value is not part of this strategy, changes prices to meet competitors)
4) Customer oriented (Match prices to
customer expectations)

Question 3

Price elasticity of demand

Answer 3

1) Substitution effect - Consumers’ ability to substitute other products for the focal brand
2) Cross-price elasticity - The percentage change in the quantity of Product A demanded compared with the percentage change in price in Product B