Chapter 25 Flashcards
Market position
Marketers relative standing in relation to their competitors
Return on investment
Calculation that is used to determine the relative profitability of a product
Break even point
Point when sales revenue equals the costs and expenses of making and distributing a product
Elastic demand
Change in price creates a change in demand
Law of diminishing marginal utility
Consumers will buy only so much of a given product, even though the price is low
In elastic demand
When a change in price has little effect on demand for the product
Price fixing
When competitors agree to set price within certain ranges
Price discrimination
A firm charges different prices to similar customers in similar situations
Loss leader
A good or service sold at less than market price in order to attract consumers
Unit pricing
The use of a standard unit of measuring to compare the prices of packages that are different sizes
Market share
A firms percentage of total sales volume generated by all competitors in a given market
Price
The value of money placed on a good or service
