Marketing Exam 3

Front 1

What is price?

Back 1

Price is that which is given up in an exchange to acquire a good or service.

Front 2

What is revenue?

Back 2

The price charged to customers multiplied by the number of units sold.

Front 3

What is profit?

Back 3

Revenue minus expenses.

Front 4

What is profit maximization?

Back 4

Setting prices so that total revenue is as large as possible relative to total costs.

Front 5

What is return on investment?

Back 5

Net profit after taxes divided by total assets.

Front 6

What is a market share?

Back 6

A company's product sales as a percentage of total sales for that industry.

Front 7

What is demand?

Back 7

The quantity of a product that will be sold in the market at various prices for a specific period.

Front 8

What is supply>

Back 8

The quantity of a product that will be offered to the market by a supplier at various prices for a specific period.

Front 9

What is price equilibrium?

Back 9

The price at which demand and supply are equal.

Front 10

What is elasticity of demand?

Back 10

Consumers' responsiveness or sensitivity to changes in price.

Front 11

What is elastic demand>

Back 11

consumers buy more or less of a product when price changes.

Front 12

What is inelastic demand?

Back 12

An increase or decrease in price will not change the demand.

Front 13

Variable costs?

Back 13

deviate with changes in level of output.

Front 14

Fixed costs?

Back 14

do not deviate as level of output changes.

Front 15

What is price strategy?

Back 15

A basic, long-term pricing framework, which establishes the initial price for a product and the intended direction for price movements over the product life cycle.

Front 16

What is penetration pricing?

Back 16

A pricing policy whereby a firm charges a relatively low price for a product initially as a way to reach the mass market.

Front 17

Unfair Trade Practice Acts?

Back 17

Laws that prohibit wholesalers and retailers from selling below cost.

Front 18

Price fixing?

Back 18

An agreement between two or more firms on the price they will charge for a product.

Front 19

Price discrimination?

Back 19

Prohibits any firm from selling to two or more different buyers at different prices if the result would lessen competition.

Front 20

Predatory Pricing?

Back 20

The practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market.

Front 21

Value-Based Pricing?

Back 21

The price is set at a level that seems to the customer to be a good price compared to the prices of other option.

Front 22

FOB Origin Pricing?

Back 22

The buyer absorbs the freight costs from the shipping point.

Front 23

Uniform Delivered pricing?

Back 23

The seller pays the freight charges and bills the purchaser an identical, flat freight charge.

Front 24

Zone pricing?

Back 24

The US is divided into zones and a flat freight rate is charged to customers in that zone.

Front 25

Freight Absorption pricing?

Back 25

The seller pays for all or part of the freight charges and does not pass them on to the buyer.

Front 26

Basing-Point Pricing?

Back 26

The seller designated a location as a basing point and charges all the buyers the freight costs from that point.

Front 27

Marketing Channel?

Back 27

A set of interdependent orgs. that ease the transfer of ownership as products move from producer to business user or consumer.

Front 28

Supply Chain?

Back 28

The connected chain of all the business entities, both internal and external to the company, that perform or support the logistics function.

Front 29

Specialization and division of labor?

Back 29

Provides efficiency and cost savings. Attains economies of scale. Aids producers who lack resources to market directly. Builds good relationships with customers.

Front 30

Discrepancy of Q?

Back 30

The difference between the amount of product produced and the amount an end user wants to buy.

Front 31

Discrepancy of Assortment?

Back 31

The lack of all the items a customer needs to receive full satisfaction from a product or products.

Front 32

Temporal Discrepancy?

Back 32

A situation that occurs when a product is produced but a customer is not ready to buy it.

Front 33

Spatial Discrepancy?

Back 33

The difference between the location of a producer and the location of widely scattered markets.

Front 34

Retailer?

Back 34

A channel intermediary that sells mainly to customers.

Front 35

Merchant Wholesaler?

Back 35

An institution that buys goods from manufacturers, takes title to goods, stores them, and resells and ships them.

Front 36

Agents and Brokers?

Back 36

Wholesaling intermediaries who facilitate the sale of a product by representing channel member.

Front 37

Logistics?

Back 37

The process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption.

Front 38

Direct Channel?

Back 38

A distribution channel in which producers sell directly to consumers.

Front 39

Supply Chain Management?

Back 39

A management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and eco. value.

Front 40

Supply Chain Communicator?

Back 40

Communicator of customer demand from point of sale to supplier.

Front 41

Physical flow process?

Back 41

that engineers the movement of goods.

Front 42

Marketing Channel?

Back 42

A set of interdependent orgs. that ease the transfer of ownership as products move from producer to business user or consumer.

Front 43

Supply Chain?

Back 43

The connected chain of all the business entities, both internal and external to the company, that perform or support the logistics function.

Front 44

Specialization and division of labor?

Back 44

Provides efficiency and cost savings. Attains economies of scale. Aids producers who lack resources to market directly. Builds good relationships with customers.

Front 45

Discrepancy of Q?

Back 45

The difference between the amount of product produced and the amount an end user wants to buy.

Front 46

Discrepancy of Assortment?

Back 46

The lack of all the items a customer needs to receive full satisfaction from a product or products.

Front 47

Temporal Discrepancy?

Back 47

A situation that occurs when a product is produced but a customer is not ready to buy it.

Front 48

Spatial Discrepancy?

Back 48

The difference between the location of a producer and the location of widely scattered markets.

Front 49

Retailer?

Back 49

A channel intermediary that sells mainly to customers.

Front 50

Merchant Wholesaler?

Back 50

An institution that buys goods from manufacturers, takes title to goods, stores them, and resells and ships them.

Front 51

Agents and Brokers?

Back 51

Wholesaling intermediaries who facilitate the sale of a product by representing channel member.

Front 52

Logistics?

Back 52

The process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption.

Front 53

Direct Channel?

Back 53

A distribution channel in which producers sell directly to consumers.

Front 54

Supply Chain Management?

Back 54

A management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and eco. value.

Front 55

Supply Chain Communicator?

Back 55

Communicator of customer demand from point of sale to supplier.

Front 56

Physical flow process?

Back 56

that engineers the movement of goods.