| A | B |
|---|
| percentage | A markup is usually expressed as THIS |
| $6 | If a product sells for $3.00. and a company uses a 50 percent selling price markup, the consumers pay THIS |
| markup chain | When a product moves through several levels within a channel between being produced and its final sale at retail to a consumer, the price that the consumer pays |
| stockturn | THIS rate is time taken for a single batch of inventory to be sold. |
| earns | With respect to markups and turnovers, a marketing manager should be aware that markup combines with stockturn rate to determine what the product actually _________ |
| Average-cost | THIS pricing involves adding a “reasonable” markup to the average cost of a product. |
| easy | A primary reason that a firm would use average-cost pricing is that it is THIS |
| quantity | The average-cost approach does not consider how costs change as THIS changes. |
| $33 | The total cost of producing 600 units of a product is $12,000, including a total fixed cost of $5,400. This means that the average variable cost per unit is |
| quantity | Average-cost pricing works well if the firm actually sells the ___________ it used to calculate the average-cost price. |
| break-even analysis | an example of a cost-oriented price setting approach |
| 50,000 units | For this analysis they are assuming a selling price of $5.00 per valve. The total fixed cost associated with producing the valve is $20,000. The variable cost to produce each valve is $4.20. In this analysis, what is the break-even point (BEP) for the valve? |
| demand curve | Trying to find the most profitable price and quantity to produce requires an estimate of the firm's |
| marginal analysis. | The best pricing tool marketers have for looking at costs and revenue (demand) at the same time |
| profit | Marginal analysis focuses on the price that earns the highest _______, but a slight miss does not mean failure because demand estimates do not have to be completely accurate. |
| substitute | Customers tend to be more price-sensitive when they have substitute ways of meeting a need. |
| reference price | The price that a consumer expects to pay for a product |
| prestige pricing | a demand-oriented approach to pricing |
| value in use pricing | An equipment producer produces a new type of product that saves labor time and reduces waste The producer considers money saved on labor and efficiency savings to set a price |
| Subscription pricing | where customers pay on a periodic basis for access to a product. |
