Marketing Foundations - Chapter 14: Pricing Concepts

Comprehensive vocabulary flashcards covering the key pricing concepts, market structures, and financial formulas from Chapter 14 of Marketing Foundations.

Competitive Parity Strategy

a firm sets prices similar to those of its major competitors.

Maximizing Profits Strategy

A strategy that involves accurately measuring all the factors needed to predict sales and profits across price levels, identifying the exact price point that generates the highest return.

Five Cs of Pricing

The five core considerations of pricing strategy: competition, costs, company objectives, customers, and channel members.

Demand Curve

analyze how many units will be sold at any given price point

If the price for a product increases, the demand for the complementary product will

decrease

Break-Even Analysis

allows managers to determine the quantity that must be sold at a specific price to break even.

Contribution Per Unit=

price - the variable cost per unit.

Monopolistic Competition

A market structure where multiple firms offer differentiated products or services,

Because there are many firms with similar products in purley Competitive markets

price being set strictly by the laws of supply and demand.