CMC Pricing Strategy & Revenue Management Flashcards
6 cards from real CMC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CMC Pricing Strategy & Revenue Management flashcards as text
Dynamic pricing adjusts prices based on:
Answer: Real-time market conditions such as demand fluctuations
Dynamic pricing changes prices in real time in response to shifting demand, competitor prices, or inventory levels to optimize revenue.
A company's price floor is defined as:
Answer: The minimum price below which it cannot profitably sell
The price floor is the lowest price a company can set while still covering its costs and achieving its minimum required profit margin.
Bundle pricing involves:
Answer: Offering several products together at a combined lower price
Bundle pricing packages multiple products or services together at a combined price lower than if purchased individually, increasing perceived value.
Price discrimination involves:
Answer: Charging different prices to different customer groups for the same product
Price discrimination charges different customer segments different prices for the same product based on their varying willingness to pay, maximizing total revenue.
In pricing decisions, contribution margin is defined as:
Answer: Revenue per unit minus variable cost per unit
Contribution margin is the revenue from a product minus its variable costs, showing how much each unit sold contributes toward covering fixed costs and generating profit.
A freemium pricing model offers:
Answer: A basic version for free with premium features available for a fee
The freemium model provides a free basic product to attract users, then monetizes by charging for advanced or premium features.