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