Chapter 9

  1. Given up in an exchange to acquire a good or service
  2. price charged to customers multiplied by the number of units sold
  3. revenue minus expense
  4. net profit after taxes divided by total assets
  5. a company's product sales a percentage of total sales for that industry
    market share
  6. a pricing objective that maintains existing prices or meets the competition's prices
    status quo pricing
  7. the quantity of a product that will be sold in the market at various prices for a specified period
  8. the quantity of a product that will be offered to the market by a supplier at various prices for a specified period
  9. the price at which demand and supple are equal
    price equilibrium
  10. consumers' responsiveness or sensitivity to changes in price
    elasticity of demand
  11. a situation in which a consumer demand is sensitive to changes in price
    elastic demand
  12. a situation in which as increase or a decrease in price will not significantly affect demand for the product
    inelastic demand
  13. a situation in which total revenue remains the same when prices change
    unitary elasticity
  14. a technique for adjusting prices that uses complex mathematical software to profitably fill unused capacity by discounting early purchases, limiting early sales at these discounted prices, and overbooking capacity
    yield management system (yms)
  15. a cost that varies with changes in the level of output
    variable cost
  16. a cost that does not change as output is increased or decreased
    fixed cost
  17. total variable cost divided by quantity of output
  18. total costs divided by quantity of output
  19. the change in total cost associated with one-unit change in output
  20. the cost of buying the product from the producer, plus amounts for profit and for expenses not otherwise accounted for
    markup pricing
  21. the practice of marking up prices by 100 percent, or doubling the cost
  22. a method of setting prices that occurs when marginal revenue equals marginal cost
    profit maximization
  23. the extra revenue associated with selling an extra unit of output of the change in total revenue with a one-unit change in output
  24. a method of determining what sales volume must be reached before total revenue equals total cost
    break-even analysis
  25. stocking well-known branded items at high prices in order to sell store brands at discounted prices
    selling against the brand
  26. a private electronic network that links a company with its suppliers and customers
  27. charging a high price to help promote a high-quality image
    prestige pricing
Card Set
Chapter 9
Pricing Concept