Flashcards in Chapter 2 | Strategic Pricing Deck (9)
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1
Q
Price
A
A measure of the value given up (exchanged) by a buyer and a seller in a business transaction
2
Q
4 P’ s of Marketing Mix and their effect on price
A
Product: Product or service delivered to buyer
Price: what is given up in exchange for the product or service
Promotion: The means of communication between buyer and seller
Place: The location or means of delivering the product or service to be sold
3
Q
Law of supply and demand
A
Need to look up
4
Q
Relationship of cost vs. revenue
A
look up
5
Q
Relationship of Cost vs. Price
A
look up
6
Q
Relationship of price vs. demand
A
look up
7
Q
Determinants of demand
A
Ability to pay
Willingness to pay
8
Q
Factors that influence customer demand
A
- Income
- Taste and preferences
- Expectations
- Reference prices
- The number of consumers in the market
9
Q
Willingness to pay
A
Individual needs/wants/desires
Maximum price a customer will pay for an item
