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Ch25: Marketing

Chapter 25: Price Planning

QuestionAnswer
the value in money (or its equivalent) placed on a good or service. Price
a calculation that is used to determine the relative profitability of a product Return on investment (ROI)
a firm's percentage of the total sales volume generated by all competitors in a given market. Market share
the point at which sales revenue equals the costs and expenses of making and distributing a product. Break-even point
the degree to which demand for a product is affected by its price. demand elasticity
states that consumers will buy only so much of a given product, even though the price is low. Law of diminishing marginal utility
occurs when competitors agree on certain price ranges within which they set their own prices. Price fixing
occurs when a firm charges different prices to similar customers in similar situation. Price discrimination
allows consumers to compare prices in relation to a standard unit or measure, such as an ounce or a pound. Unit pricing
where minimum price laws are not in effect, an item priced at or below cost to draw customers into a store. Loss leader
Created by: kweenbee30 on 2012-01-09




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