BUS 343 Study Guide - Marginal Revenue, Profit Margin, Marginal Cost

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 343
• Professor: Zaheer Jiwani

Document Summary

Psychological cost: the stress, anxiety, or mental difficulty of buying and using a product. Operating costs: costs involved in using a product. Switching costs: costs involved in moving from one brand to another. Opportunity cost: the value of something that is given up to obtain something else. Profit objectives: pricing products with a focus on a target level of profit growth or a desired net profit margin. Smart objectives: objectives that are specific, measurable, attainable, relevant, and time-bounded. Sales or market share objective: pricing products to maximize sales or to attain a desired level of sales or market share. Prestige products: products that have a high price and that appeal to status-conscious consumers. Demand curve: a plot of the quantity of a product that customers will buy in a market during a period of time at various prices if all other factors remain the same.