BA 303 CORRECT STUDY GUIDE QUESTIONS AND
ANSWERS SURE A+
✔✔Pioneer pricing - ✔✔brand new price and product
Clean shower
✔✔Odd number vs. even number - ✔✔people tend to equate odd numbers with
bargains and value
✔✔Prestige pricing - ✔✔appropriate for some businesses
Joy perfume sells for $589 an oz.
✔✔Price lining - ✔✔eliminating prices to cut down on confusion
department stores do this a lot
✔✔Leader pricing - ✔✔pick and item/group of items that is popular and run very low
pricing
Walmart baby diapers in the back of the store
✔✔Special event pricing - ✔✔Black Friday will have bargains
✔✔Bait and switch tactics - ✔✔bait you with a great offer then trick you into buying
something better
, TV set on sale and convince you to buy the more expensive one
✔✔Cost-plus or markup - ✔✔base retail price on cost of item
restaurant businesses
✔✔Breakeven - ✔✔base decisions on how much the cost of the item
✔✔Perceived-value pricing - ✔✔base decisions on what you think you can sell your
product for, not based on cost
airlines during the holiday season
✔✔Going rate - ✔✔base prices on competition
Best Buy and Amazon
✔✔Sealed bid - ✔✔must submit a bid with others, trickiest because you don't know
what they are doing
contractors bidding with other contractors
✔✔Reduce margins - ✔✔markdown prices, creates potential bad business for
customers
✔✔Quantity discounts - ✔✔buying in bulk will cost you less money
Sam's club
✔✔Trade discounts - ✔✔given to channel system hoping that the end customer pays a
lower price so they can be more competitive
✔✔Cash discounts - ✔✔discount for paying promptly
2/10 net 30
apartment rent discount
✔✔Dating - ✔✔when bill is actually due, could be coupled with discount getting extra
time to pay
✔✔Anticipation - ✔✔PAYING a bill way in advance
✔✔Seasonal discounts - ✔✔given for ORDERING way in advance
buying leather outerwear and coats in November for following fall
✔✔Allowances and rebates - ✔✔gives you money back, but you do not have to lower
the price
cellphones and computers
ANSWERS SURE A+
✔✔Pioneer pricing - ✔✔brand new price and product
Clean shower
✔✔Odd number vs. even number - ✔✔people tend to equate odd numbers with
bargains and value
✔✔Prestige pricing - ✔✔appropriate for some businesses
Joy perfume sells for $589 an oz.
✔✔Price lining - ✔✔eliminating prices to cut down on confusion
department stores do this a lot
✔✔Leader pricing - ✔✔pick and item/group of items that is popular and run very low
pricing
Walmart baby diapers in the back of the store
✔✔Special event pricing - ✔✔Black Friday will have bargains
✔✔Bait and switch tactics - ✔✔bait you with a great offer then trick you into buying
something better
, TV set on sale and convince you to buy the more expensive one
✔✔Cost-plus or markup - ✔✔base retail price on cost of item
restaurant businesses
✔✔Breakeven - ✔✔base decisions on how much the cost of the item
✔✔Perceived-value pricing - ✔✔base decisions on what you think you can sell your
product for, not based on cost
airlines during the holiday season
✔✔Going rate - ✔✔base prices on competition
Best Buy and Amazon
✔✔Sealed bid - ✔✔must submit a bid with others, trickiest because you don't know
what they are doing
contractors bidding with other contractors
✔✔Reduce margins - ✔✔markdown prices, creates potential bad business for
customers
✔✔Quantity discounts - ✔✔buying in bulk will cost you less money
Sam's club
✔✔Trade discounts - ✔✔given to channel system hoping that the end customer pays a
lower price so they can be more competitive
✔✔Cash discounts - ✔✔discount for paying promptly
2/10 net 30
apartment rent discount
✔✔Dating - ✔✔when bill is actually due, could be coupled with discount getting extra
time to pay
✔✔Anticipation - ✔✔PAYING a bill way in advance
✔✔Seasonal discounts - ✔✔given for ORDERING way in advance
buying leather outerwear and coats in November for following fall
✔✔Allowances and rebates - ✔✔gives you money back, but you do not have to lower
the price
cellphones and computers
