FM 117 Chapter Notes - Chapter 20-21: Yield Management, Marginal Revenue, Dynamic Pricing

• School: FIT
• Department: Fashion Business Management
• Course: FM 117
• Professor: Joelle Williams

Document Summary

Revenue: price charged to customer multiplied by the number of units sold: price x units = revenue. To survive in today"s highly competitive marketplace, companies need pricing objectives that are specific, attainable, and measurable. Return on investment (roi): net profit after taxes divided by total assets: roi = net profits after taxes / total assets. Market share: a company"s product sales as a percentage of total sales for that industry. Status quo pricing: a pricing objective that maintains existing prices or meets the competition"s prices. After marketing managers establish pricing goals, they must set specific prices reach those goals. Demand: the quantity of a product that will be sold in the market at various prices for a specified time period. Supply: the quantity of a product that will be offered to the market by a supplier at various prices for a specified period. Price equilibrium: the price at which demand and supply are equal.