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Chapter 13
Marketing Test 4
Term | Definition |
---|---|
Price | Money or other considerations exchanged for the ownership or use of a product or service. |
Barter | Practice of exchanging products or services for other products and services rather then for money. |
Value | Ratio of perceived benefits to price; or price Value=(perceived benefits divided by price) |
Value-Pricing | Practice of simultaneously increasing product while maintaining or decreasing price. |
Average Revenue | Average amount of money received for selling one unit of a product, or simply the price of that unit. |
Marginal Revenue | Change in total revenue that results form producing and marketing one additional unit of a product. |
Price Elasticity of Demand | Percentage change in the quantity relative to a percentage change in price. |
Total Cost | Total expense incurred by a firm in producing and marketing a product. Total cost is the sum of fixed and variable cost. |
Fixed Cost | Sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold. |
Variable Cost | Sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold. |