MKTG1501 Lecture Notes - Lecture 11: Experience Curve Effects, Demand Curve, Marketing Mix
Document Summary
When a company sets the price of its products to yield a given profit on a level of investment, it is using: cost-plus pricing, customer value pricing, break-even and target profit pricing, buyer-based pricing approach, maximum profit pricing. A computer company that offers the computer, printer, software and scanner for a single price is an example of: product/service line pricing, consumer value pricing, captive pricing, optional/product service pricing, product/service bundle pricing. Cost-plus or mark-up pricing is a popular method because: sellers are more certain about costs than about demand, sellers do not have to make frequent price adjustments as demand changes. It is considered fairer to both buyer and seller: all of the above. Internal factors affecting pricing decisions include all the following except: the (cid:272)o(cid:373)pa(cid:374)(cid:455)"s (cid:373)arketi(cid:374)g o(cid:271)je(cid:272)tives, the (cid:272)o(cid:373)pa(cid:374)(cid:455)"s produ(cid:272)tio(cid:374) (cid:272)osts, the (cid:373)arket de(cid:373)a(cid:374)d for the (cid:272)o(cid:373)pa(cid:374)(cid:455)"s produ(cid:272)ts, the organizational structure of the company. 1: all of the above are internal factors.
