Correct Answer the final goods and services that are produced during a fixed period of time. Your Answer correct Suppose that in the last year consumers spent $14 billion on durable goods, $35 billion on non-durable goods, and $46 billion on services. Consumption equals $_____ billion.
Walmart, Sears, and Macy's are all large companies that have departments responsible for the pricing function. In which of the following businesses would a separate department most likely be responsible for establishing prices:
The owners of small boutiques, local clothing stores, and hair salons would most likely be in charge of setting prices for their goods and services. A hair care company cannot afford to spend millions of dollars on research for the new, inexpensive shampoo it is developing, so the company must choose a less expensive form of research.
b. Java Joe's Coffee Shop c. Walmart d. Sears Java Joe's Coffee Shop. In small companies, such as a coffee shop, the owner is more likely to be in charge of pricing. Walmart, Sears, and Macy's are all large companies that have departments responsible for the pricing function.
The price of a product is determined by the law of supply and demand. Consumers have a desire to acquire a product, and producers manufacture a supply to meet this demand. The equilibrium market price of a good is the price at which quantity supplied equals quantity demanded.
This competition of sellers against sellers and buyers against buyers determines the price of the product. It's called supply and demand. The price is the measure of how scarce one product is compared to all other products and all incomes.
What factors should be considered when pricing a product?The total costs of running your business including fixed and variable costs.Competitors' pricing.Market demand.Target customers spending power.The value of your product.
Demand ultimately sets the price in a competitive market; supplier response to the price they can expect to receive sets the quantity supplied. The law of supply is one of the most fundamental concepts in economics.
The two departments that determine the price for a product or service are marketing and accounting, with the two working together to help executive management make its final decision.
Price controls in economics are restrictions imposed by governments to ensure that goods and services remain affordable. They are also used to create a fair market that is accessible by all. The point of price controls is to help curb inflation and to create balance in the market.
If you want to know how to determine pricing for a service, add together your total costs and multiply it by your desired profit margin percentage. Then, add that amount to your costs. Pro tip: Consider your costs, the market, your perceived value, and time invested to come up with a fair profit margin.
To set your first price, add up all of the costs involved in bringing your product to market, set your profit margin on top of those expenses, and there you have it. If it seems too simple to be effective, you're half right—but here's how it works. Pricing isn't a decision you only get to make once.
a pricing method used in situations where a saleable by-product results in the manufacturing process.
Customer-driven pricing is the practice of setting prices according to customers' perceived value of a company's goods or services. The assumption basis for this model is that a customer is willing to pay a certain price when the value delivered exceeds that cost.
The determination of an exchange price acceptable to both the buyer and the seller of a product is called. Pricing. Pricing is the determination of an exchange price at which the buyer and seller perceive optimum value for a good or service. Promotion stimulates demand for products by informing customers of the products' availability.
Pricing affects the choice of medium for promotion. Products with very low profit margins are usually promoted in lower priced media, while products that have high profit margins are usually promoted in a combination of media, including high-cost advertising media like magazines.
Realistic prices are often associated with the quality of the product. Competitive pricing occurs when you try to meet or beat your nearest competitor's prices. Inflexible pricing occurs when a company refuses to change its prices to meet customer demand.
Adjusting prices to meet or beat the competition is competitive pricing. Competitive pricing often means being flexible, not inflexible. It also means being realistic (not too low or too high) rather than unrealistic. To set prices, businesses must price the physical product and all of its associated. Services.
The exchange price is the amount that both customers and sellers are willing to accept. Value is the amount of satisfaction a product will provide the customer. Markdowns are reductions in prices used to sell slow-moving or clearance items. Demand is the quantity of a good or service that buyers are ready and willing to buy at a given price ...
Pricing affects the type of research conducted, the length of the research project, and the amount of money spent on research . If a product is low priced, a company most likely will not be able to afford to spend lots of money on research. This is not an example of how pricing affects promotion or place.
Promotion stimulates demand for products by informing customers of the products' availability. Place decision is the marketing element focusing on considerations in getting a selected product in the right place at the right time. Product decision refers to what goods, services, or ideas a business will offer its customers.