MKT Final Exam

Price

The money or other considerations exchanged for the ownership or use of a product or service.

Barter

Exchanging products and services for other products and services without using money.

Value

The ratio of perceived benefits to price; calculated as Value = Perceived Benefits / Price.

Demand-Oriented Pricing

A pricing strategy that includes Skimming, Penetration, Prestige, Odd-Even, and Bundle Pricing.

Elastic Demand

Describes a situation where a small price change causes a large change in quantity demanded.

Inelastic Demand

Describes a situation where a price change has little effect on the quantity demanded.

Fixed Cost

Costs that do not vary with production volume, such as rent.

Variable Cost

Costs that vary with production volume, such as materials.

Total Cost

The sum of fixed and variable costs.

Logistics

The process of ensuring the right product is at the right place and at the right time.

Retailing

The selling of goods or services to final consumers for personal use.

Integrated Marketing Communications (IMC)

The coordination of all promotional activities for consistent messaging.

Promotional Mix

The blend of advertising, personal selling, sales promotion, public relations, and direct marketing.

Showrooming

The practice of visiting a store to examine a product and then buying it online.

Webrooming

The practice of researching products online and then purchasing them in a store.

Hierarchy of Effects

The stages a consumer goes through from awareness to adoption of a product.