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| Question | Answer |
| demand | what customers are willing to buy at a given price |
| supply | determined by business amount businesses are willing to offer for sale |
| Factors affecting price | Objectives Taxes Marketing Mix Competition Costs Consumers perceptions |
| Pricing Strategies | set of plans designed to meet a specific marketing aim |
| cost based pricing(cost-plus) | pricing strategies based on the prices charged by rivals adding mark up may lower sales bc of high cost |
| market oriented pricing | pricing strategies based upon the conditions in the market |
| What are the types of Market-orientated pricing? | Skimming/creaming penetration pricing psychological pricing loss leaders discounts and sales |
| skimming/creaming | using a high cost for a new product then decreasing it when sales slow down |
| penetration pricing | using a low price at first then increasing it when it gains interest |
| psychological pricing | charging a cent less for example $99.99, not $100 |
| loss leaders | lower price than cost often used in supermarkets |
| competition based pricing | charge same price as competitors follow price leadership(남이 쓰는 가격) |
| destroyer/ predatory pricing | lowering price to drive out competition |
| price elasticity of demand | measures the responsiveness of demand to change in price |
| Price inelastic demand(minority) | where a price will result in a much smaller change in demand |
| mark up | the percentage added to costs which makes a profit for a business hen setting the price |
| price elastic demand(majority) | where a price change will result in a significant change in demand. |
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