Name: Lurae Rubenstein
1. What is selling price?
The amount a seller charges for a good or a service.
2. What are the three components of selling price (the three things it must do)?
 costs of the product
 operating expenses
 factors affecting selling price
3. Why is selling price important to customers?
Selling price helps customers to compare products when making buying decisions.
4. Why is selling price important to sellers?
Selling price is important because it determines the amount of income from sales each business receives.
1. What are sales-oriented pricing objectives?
Sales-oriented pricing objectives is to increase the total amount of income from sales.
2. What goals might a business achieve by using sales-oriented pricing objectives?
 Creating an image for the business
 Being more competitive
 Obtaining, maintaining, or increasing market share
3. What are profit-oriented pricing objectives?
It focus on creating profits for the business. Some businesses choose prices that will result in the greatest possible amount of profit, but most businesses simply want to recover their costs and earn a reasonable amount of profit.
4. What goals might a business achieve by using profit-oriented pricing objectives?
 Surviving
 Maximizing profits
 Earning a return on investment
 Earning a return on sales
1. How do costs affect selling price?
 Fixed costs
 Variable costs
2. How does supply and demand affect selling price?
Supply and demand are determined not only by what people want but by what they can afford to buy. When consumer demand for a product increases, producers make more of it, the supply increases, and the selling price goes down. If a company makes a new video game that becomes popular, demand for the game increases, and the company makes more of it. As the supply increases, the number of buyers may decrease, and sellers will have to reduce the price of the game to get it off the shelves. On the other hand, if the producer is not able to increase production, and the supply of the game does not increase, the price may go up. Customers may be willing to pay the higher price to obtain the game. However, if the selling price goes too high, customers may stop buying, and demand will drop.
3. How do economic conditions affect selling price?

The national economy is always changing. Ups and downs in economic activity are known as business cycles. Marketers monitor business cycles and try to predict whether business conditions will get better or worse. This helps them to adjust their pricing according to the changes in the economy.
4. How does competition affect selling price?
 Pure competition
 Monopolistic competition
 Oligopoly
 Monopoly
5. How does government regulation affect selling price?
 Price fixing
 Price discrimination
 Price advertising
 Unit pricing
6. How do channel members affect selling price?
Each member of the channel of distribution, from producer to retailer, affects pricing because all channel members try to make a profit on the products they sell. Channel members who perform certain duties in the process of selling products expect producers to provide them with such support as sales and service training, sales promotions, or cooperative advertising. Producers must consider the cost of the supports they are expected to provide when they price their products. If they price the products too low to be able to provide this kind of assistance, channel members may buy from another producer. If they add too much to their prices to cover support activities, the price may be too high to encourage sales. When manufacturers and producers raise their prices, these increases are usually passed through the channel to customers. In some cases, channel members absorb part of the increase rather than pass all of it on to customers because they fear the higher price will reduce their sales.
7. How do company objectives and strategies affect selling price?
 Product mix
 Product life cycle
 Target market.