MKT 291 Final Exam Study Guide Questions With Correct Answers

MKT 291 Final Exam Study Guide Questions
With Correct Answers


Price - CORRECT ANSWER✔✔-is the money or other considerations
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(including other products and services) exchanged for the ownership or
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use of a product or service.
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Value - CORRECT ANSWER✔✔-is the ratio of perceived benefits to price;
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or _________ = (Perceived benefits divided by Price).
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Profit Equation - CORRECT ANSWER✔✔-total revenue - total cost
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(unit price * quantity sold) - (fixed cost + variable cost)
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Pricing objectives - CORRECT ANSWER✔✔-specify the role of price in an
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organization's marketing and strategic plans
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Pricing constraints - CORRECT ANSWER✔✔-are factors that limit the
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range of prices a firm may set
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,Demand Curve - CORRECT ANSWER✔✔-is a graph relating to the
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quantity sold and price, which shows the maximum number of units
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that will be sold at a given price
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price elasticity of demand - CORRECT ANSWER✔✔-is the percentage
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change in quantity demanded relative to a percentage change in price.
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total revenue - CORRECT ANSWER✔✔-is the total money received from
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the sale of a product.
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Total cost (TC) - CORRECT ANSWER✔✔-is the total expense incurred by
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a firm in producing and marketing a product.
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Break-even analysis - CORRECT ANSWER✔✔-is a technique that
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analyzes the relationship between total revenue and total cost to
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determine profitability at various levels of output.
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Break-even analysis equation - CORRECT ANSWER✔✔-fixed cost / (unit
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price - unit variable cost)
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Skimming pricing - CORRECT ANSWER✔✔-involves setting the highest
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initial price that customers who really desire the product are willing to
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pay when introducing a new or innovative product.
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, penetration pricing - CORRECT ANSWER✔✔-involves setting a low initial
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price on a new product to appeal immediately to the mass market.
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Prestige pricing - CORRECT ANSWER✔✔-involves setting a high price so
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that quality- or status-conscious consumers will be attracted to the
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product and buy it. | | |




Odd-even pricing - CORRECT ANSWER✔✔-involves setting prices a few
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dollars or cents under an even number.
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Target pricing - CORRECT ANSWER✔✔-consists of
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(1) estimating the price that ultimate consumers would be willing to pay
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for a product,
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(2) working backward through markups taken by retailers and
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wholesalers to determine what price to charge wholesalers, and then
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(3) deliberately adjusting the composition and features of the product
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to achieve the target price to consumers.
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Bundle pricing - CORRECT ANSWER✔✔-involves the marketing of two or
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more products in a single package price.
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Yield management pricing - CORRECT ANSWER✔✔-involves the
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charging of different prices to maximize revenue for a set amount of
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capacity at any given time | | | |