Marketing MKT 300 Exam 5 Study Guide and Practice Questions
Price - correct answer ✔✔ What a customer must give up to get the benefits offered by the rest
of a firms marketing mix
Dynamic Pricing - correct answer ✔✔ Means changing product prices based on demand, the
type of customer, or the state of the weather
Target Return Objective - correct answer ✔✔ Sets a specific level of profit as an objective
Profit Maximization Objective - correct answer ✔✔ Seeks to get as much profit as possible.
Sales-Oriented Objective - correct answer ✔✔ Seeks some level of unit sales, dollar sales, or
share of market - WITHOUT REFERRING TO PROFIT
Status-Quo Objective - correct answer ✔✔ Don't-rock-the-PRICING-boat objectives. Managers
may say they want to stabilize prices, or meet competition, or even avoid competition. This type
of thinking is most common when the total market is NOT growing.
Non-Price Competition - correct answer ✔✔ Aggressive action on one or more of the Ps other
than price.
Administered Prices - correct answer ✔✔ Consciously set prices. Instead of letting daily market
forces decide pricing, firms set the prices themselves.
One-Price Policy - correct answer ✔✔ Means offering the same price to all customers who
purchase products under essentially the same conditions and in the same quantities
, Flexible-Price Policy - correct answer ✔✔ Means offering the same product and quantities to
different customers at different prices
Skimming-Price Policy - correct answer ✔✔ Tries to sell the top (skim the cream) of a market—
the top of the demand curve—at a high price before aiming at more price-sensitive customers
Penetration-Price Policy - correct answer ✔✔ Tries to sell to whole market at one low price
Introductory Price Dealing - correct answer ✔✔ Temporary price cuts—to speed new products
into a market and get customers to try them
Basic-List Prices - correct answer ✔✔ The prices final customers or users are normally asked to
pay for products
Discounts - correct answer ✔✔ Are reductions from list price given by a seller to buyers who
either give up some marketing function or provide the function themselves
Quantity Discounts - correct answer ✔✔ Discounts offered to encourage customers to buy in
larger amounts. This lets a seller get more of a buyer's business, or shifts some of the storing
function to the buyer, or reduces shipping and selling costs—or all of these
Cumulative Quantity Discounts - correct answer ✔✔ Apply to purchases over a given period—
such as a year—and the discount usually increases as the amount purchased increases.
Cumulative discounts encourage repeat buying by reducing the customer's cost for additional
purchases.
Noncumulative Quantity Discounts - correct answer ✔✔ Apply only to individual orders. Such
discounts encourage larger orders but do not tie a buyer to the seller after that one purchase
Price - correct answer ✔✔ What a customer must give up to get the benefits offered by the rest
of a firms marketing mix
Dynamic Pricing - correct answer ✔✔ Means changing product prices based on demand, the
type of customer, or the state of the weather
Target Return Objective - correct answer ✔✔ Sets a specific level of profit as an objective
Profit Maximization Objective - correct answer ✔✔ Seeks to get as much profit as possible.
Sales-Oriented Objective - correct answer ✔✔ Seeks some level of unit sales, dollar sales, or
share of market - WITHOUT REFERRING TO PROFIT
Status-Quo Objective - correct answer ✔✔ Don't-rock-the-PRICING-boat objectives. Managers
may say they want to stabilize prices, or meet competition, or even avoid competition. This type
of thinking is most common when the total market is NOT growing.
Non-Price Competition - correct answer ✔✔ Aggressive action on one or more of the Ps other
than price.
Administered Prices - correct answer ✔✔ Consciously set prices. Instead of letting daily market
forces decide pricing, firms set the prices themselves.
One-Price Policy - correct answer ✔✔ Means offering the same price to all customers who
purchase products under essentially the same conditions and in the same quantities
, Flexible-Price Policy - correct answer ✔✔ Means offering the same product and quantities to
different customers at different prices
Skimming-Price Policy - correct answer ✔✔ Tries to sell the top (skim the cream) of a market—
the top of the demand curve—at a high price before aiming at more price-sensitive customers
Penetration-Price Policy - correct answer ✔✔ Tries to sell to whole market at one low price
Introductory Price Dealing - correct answer ✔✔ Temporary price cuts—to speed new products
into a market and get customers to try them
Basic-List Prices - correct answer ✔✔ The prices final customers or users are normally asked to
pay for products
Discounts - correct answer ✔✔ Are reductions from list price given by a seller to buyers who
either give up some marketing function or provide the function themselves
Quantity Discounts - correct answer ✔✔ Discounts offered to encourage customers to buy in
larger amounts. This lets a seller get more of a buyer's business, or shifts some of the storing
function to the buyer, or reduces shipping and selling costs—or all of these
Cumulative Quantity Discounts - correct answer ✔✔ Apply to purchases over a given period—
such as a year—and the discount usually increases as the amount purchased increases.
Cumulative discounts encourage repeat buying by reducing the customer's cost for additional
purchases.
Noncumulative Quantity Discounts - correct answer ✔✔ Apply only to individual orders. Such
discounts encourage larger orders but do not tie a buyer to the seller after that one purchase
