Marketing Essentials

Section 2: Factors Involved in Price Planning

After You Read Online Action

Reviewing Key Terms and Concepts

1. Options might include: pass the costs to their customers; reduce the size of the item to keep the same price; drop some features their customers do not value; add more features or upgrade the materials to justify a higher price.
2. The five factors that affect demand elasticity  are: brand loyalty, price relative to income, availability or substitutes, luxury versus necessity, and urgency of purchase.
3. Federal Trade Commission (FTC)

Integrating Academic Skills

4. The break-even point is 160,000 CDs; 200,00 X $12 = $2,400,000 divided by $15 = 160,000
5. The three forms of discrimination the Robinson-Patman Act prevents are: price, discount, and other preferential treatment if they lessen competition or hurt individual competitors.