Purpose of Pricing
Pricing Formulas
Elasticity
New Pricing Terms
Sectors
100
When an agencies attempts to gain revenue that will exceed expenditures
What is the Purpose of Pricing to Recover Costs
100
The formula letter for Variable Costs
What does V stand for when calculating pricing
100
Market Segments with an elasticity greater than 1.0
What is Relative Elastic
100
Charging more at rush-hour than non rush-hour.
What is peak user pricing?
100
The pricing in this sector is geared toward generating profit
What is the commercial sector?
200
To the improve the perception of the product for the consumer
What is the purpose of pricing when creating new resources
200
The formula letter for Fixed Costs
What does F stand for when calculating pricing
200
Relative Inelastic
What are Market Segments with an elasticity less than 1.0
200
When a company provides limited editions of a product.
What is premium product pricing?
200
When pricing is not the #1 revenue source
What is the Public Sector
300
This is a factor for a consumer who is attempting to elevate its status amongst choices
What is purpose of pricing when establishing value
300
P=(V+F)/N
What is the formula for Variable pricing
300
% Change in Quantity Demanded/ % Change in Price
What is Price Elasticity of Demand
300
When a company attempts to generate greater profits off of guarantees
What is enhanced warranty pricing?
300
When prices are set to at least break-even.
What is the Non-profit Sector
400
When an agencies adds late fees, deposits, or bulk discounts to assist in decision making process
What is the purpose of pricing to influence behavior
400
P= C(V+F)/N
What is formula for Contingency pricing
400
Types of teams that have a relatively inelastic demand.
What are Professional Sport teams?
400
When companies offer enhanced services for additional fees.
What is priority service pricing?
400
This sector receives the most subsidization for its prices
What is the Public Sector
500
Providing a "fair" chance for all income levels to participate
What is the purpose of pricing when promoting equity
500
Pm = (1-Sm)((F+V)+C(F+V))/N)
What is the formula for Subsidization
500
A type of market in which changes to price do not change levels of demand.
What is an Adult Market
500
When different rates apply to different individuals, based on socioeconomic status.
What is customer segment pricing?
500
This type of sector typically has prices for their admissions that are inelastic
What is the Commercial Sector
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