MGT 103 Bates Final Exam with Answers Graded A+
% of ticket sales are now Online 50
the money or other considerations (think:
Price bartering) exchanged for the ownership
or use of a product or service
exchanging products and services for
Barter
other products and services
List Price - (Incentives + allowances) +
Extra Fees
Calculating the Final Price (Formula)
College Student ex.
Tution - scholarships + books/housing
Value (Formula) Percieved Benefits / Price
Lowering price while keeping benefits
the same
Value Pricing (strategy) or
Increasing benefits while keeping price
the same
When we pay a higher price, we tend to
perceive a higher quality
Price to Value Relationship doesn't mean that people will always be
willing to pay a higher price though.
ex) pizza sales example
Total Revenue - Total Cost
broken down further:
Profit (Formula)
(Unit Price x Quantity Sold) - (Fixed Cost
+ Variable Cost)
- Sales Revenue
Potential Pricing Objectives - Market Share
- Unit Volume
,MGT 103 Bates Final Exam with Answers Graded A+
- Survival
- Social Responsibility
Price x Quantity sold, money made be-
Sales Revenue
fore factoring in costs
Ratio of a firms sales to the industry
Market Share
- used when sales in an industry are flat
or declining
total amount sold
Unit Volume
- used when trying to bring up consumer
demand to match production capacity
the process of staying alive
Survival
- used when a firm cant match rivals price
cuts
when a firm forgoes greater profits to
Social Responsibility
meet obligations to society
Demand
Newness
Cost of Production
Pricing Constraints
whether Single Product or Product Line
Cost of Changing prices
Type of competitive market
the greater the demand, the higher price
Demand
that can be charged
products can be sold for higher prices
Newness
earlier in their life cycles
firms are forced to price products in a
Cost of Production way that ensures their distribution part-
ners profit as well
, MGT 103 Bates Final Exam with Answers Graded A+
single/unique products can be sold for
higher price
Single Product vs Product line
when a company has a range of similar
products they kind of have to stay in line
with eachother, price wise
cost of updating online sites, catalog re-
Cost of Changing Prices
tail avenues, etc.
many sellers and consistent market price
(Agriculture- Wheat/Corn)
Pure Competition market
same benefit of corn, price is determined
by what consumers want to pay
many sellers compete on both price, and
benefits
(books movies restaurants)
Monopolistic Competition
there isnt a consistent price (there is a
price range, though) like pure competi-
tion since there are differentiated bene-
fits
few sellers that avoid price competition
Oligopoly and focus on differentiated benefits
(car manufacturers/banks)
No price competition and the seller can
Pure Monopoly charge mostly what it wants
(cable TV)
gives customers a low price 24/7 365.
Every Day Low Prices No discounts, no need for comparison
shopping
Initially sells a product for high price, then
High/Low pricing later sells on discount for low when the
product becomes undesirable
9.98 vs 10
Odd/Even pricing
Both are desirable, depending on how
% of ticket sales are now Online 50
the money or other considerations (think:
Price bartering) exchanged for the ownership
or use of a product or service
exchanging products and services for
Barter
other products and services
List Price - (Incentives + allowances) +
Extra Fees
Calculating the Final Price (Formula)
College Student ex.
Tution - scholarships + books/housing
Value (Formula) Percieved Benefits / Price
Lowering price while keeping benefits
the same
Value Pricing (strategy) or
Increasing benefits while keeping price
the same
When we pay a higher price, we tend to
perceive a higher quality
Price to Value Relationship doesn't mean that people will always be
willing to pay a higher price though.
ex) pizza sales example
Total Revenue - Total Cost
broken down further:
Profit (Formula)
(Unit Price x Quantity Sold) - (Fixed Cost
+ Variable Cost)
- Sales Revenue
Potential Pricing Objectives - Market Share
- Unit Volume
,MGT 103 Bates Final Exam with Answers Graded A+
- Survival
- Social Responsibility
Price x Quantity sold, money made be-
Sales Revenue
fore factoring in costs
Ratio of a firms sales to the industry
Market Share
- used when sales in an industry are flat
or declining
total amount sold
Unit Volume
- used when trying to bring up consumer
demand to match production capacity
the process of staying alive
Survival
- used when a firm cant match rivals price
cuts
when a firm forgoes greater profits to
Social Responsibility
meet obligations to society
Demand
Newness
Cost of Production
Pricing Constraints
whether Single Product or Product Line
Cost of Changing prices
Type of competitive market
the greater the demand, the higher price
Demand
that can be charged
products can be sold for higher prices
Newness
earlier in their life cycles
firms are forced to price products in a
Cost of Production way that ensures their distribution part-
ners profit as well
, MGT 103 Bates Final Exam with Answers Graded A+
single/unique products can be sold for
higher price
Single Product vs Product line
when a company has a range of similar
products they kind of have to stay in line
with eachother, price wise
cost of updating online sites, catalog re-
Cost of Changing Prices
tail avenues, etc.
many sellers and consistent market price
(Agriculture- Wheat/Corn)
Pure Competition market
same benefit of corn, price is determined
by what consumers want to pay
many sellers compete on both price, and
benefits
(books movies restaurants)
Monopolistic Competition
there isnt a consistent price (there is a
price range, though) like pure competi-
tion since there are differentiated bene-
fits
few sellers that avoid price competition
Oligopoly and focus on differentiated benefits
(car manufacturers/banks)
No price competition and the seller can
Pure Monopoly charge mostly what it wants
(cable TV)
gives customers a low price 24/7 365.
Every Day Low Prices No discounts, no need for comparison
shopping
Initially sells a product for high price, then
High/Low pricing later sells on discount for low when the
product becomes undesirable
9.98 vs 10
Odd/Even pricing
Both are desirable, depending on how
