1st 9 Weeks Test Review

When a business sets a price higher than normal for a product in high demand

Policy in which customers pay different prices for the same type or amount of merchandise

The difference between an item's final sale price and its cost.

The decision process and acts of people involved in buying and using products.

When a business reduces items in price for a short period of time

Encourages buyers to buy in bulk & purchase more then they originally intended to purchase

discounts offered outside the customary buying season.

Idea that a business should strive to satisfy customers' needs& wants while generating a profit

When all costs & expenses are calculated, then the desired profit is added to arrive at a price

attempt to determine what consumers are willing to pay for given goods and services.

When a business sets higher than average prices to suggest status & high quality to consumer

The added value of a product in economic terms

when a firm advertises a low price for an item when it has no intention of selling it

Involves changing raw materials or putting parts together to make them more useful

money earned from conducting business after all costs and expenses have been paid

Which one of the following is not part of the product life cycle?

recognizes buyer sensitivity to price and its one way to identify customers segment

customers pay different prices for the same type of merchandise.

when a business matches the prices of a product with competitors.

Conscious, logical reason for a purchase

Involves understanding concepts & strategies to develop &target specific marketing strategies

Occurs when competitors agree on certain price ranges within which they set their own prices

segmentation groups people based on where they live

Involves setting prices for accessories or options sold with a main product.

when a business sets prices that all end in either even or odd numbers.

Product, price, place, and promotion

This is a pricing policy that sets a very high price for a new product

Used when a person needs little information about a product

Pricing technique that sets a limited # of prices for specific groups or lines of merchandise

An item is priced at or below cost to draw customers into a store.