Module 3

24問 • 1年前

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Total amount of money a business receives from sales and investments.

Revenue

Also known as gross income, it is the amount of revenue that remains after the direct costs of providing a product or service are subtracted.

Gross Profit

A company's overall income after all expenses including taxes have been deducted from total revenue.

Net Income

Anything that contributes to the expense of the product or service provided by a business

Cost

Costs that are set and neither change with different business functions nor how many sales a company makes. • It is referred to as overhead or overhead costs.

Fixed Cost

Any costs that vary with the number of products produced. • It includes production costs, as well as any cost that applies to each individual sale.

Variable Cost

It is a measure of product profitability on a unit basis. • The fixed costs are ignored for this calculation.

Contribution Margin

in a graphical presentation is the point where the contribution margin and fixed costs meet. Which also means that this is the point where the business has sold enough units to become profitable.

Break-even analysis

When selling a product with a positive contribution margin there is a point at which revenue is equal to expenses

Break-even Point

It is an act of determining the value of a product or service.

Pricing

Also known as skim pricing • A pricing strategy in which a firm charges a high initial price and then gradually lowers the price to attract more price-sensitive customers.

Price Skimming

is used by businesses to attract customers to a new product or service by offering a lower price during its initial offering.

Penetration Pricing

Multiple products or services are sold together as a package at a discounted price compared to buying each item individually. • Aims to increase sales by offering customers a better deal for purchasing multiple items at once.

Bundle Pricing

Business sets the price of their product or service based on market price. • Where a company or business prices its product at the same level as or very close to its competitors.

Going-rate Pricing/Competitive Pricing

A strategy of consistently pricing at or near the high end of the possible price range to help attract status-conscious consumers.

Premium Pricing

The price may vary depending upon the type of customer you are existing or new, how often do you purchase, how much do you buy,

Dynamic Pricing

A pricing method premised to the theory that consumers perceive products with odd endings as lower in price than they are.

Psychological Pricing/odd Pricing

A marketing approach where a product is intentionally sold at a loss or minimal profit to attract customers.

Loss leader Pricing

A business prices its offerings according to the quality, features, or attributes to differentiate it from other similar offerings.

Price Lining

Businesses reduce the typical cost of their goods or services for a specific amount of time. • Only temporary in nature and always downward

Promotional Pricing

is the reduction of a product's selling price. • most common method of promotional pricing used for stimulating customer demand.

Markdown

Three Types of Markdown

Temporary Markdown Seasonal Markdown Permanent Markdown

• A business will use short-term campaigns to spark interest and create demand for a product or service.

Sales Promotion

- Also known as Mark-up Pricing - the selling price of a product is determined by adding a specific fixed percentage (a "markup") to the product's unit cost.

Cost- Plus Pricing

Module 6 UTS

Angel Holivelle Carasco · 32問 · 1年前

Module 6 UTS