Buad 332 Exam 3 2025/2026 Exam
Questions with Detailed Verified
Answers (100% Correct Answers) |
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what is a narrow definition for price? - 🧠 ANSWER ✔✔price is the *amount
of money* charged for a product or service
what is a more broad definition for price? aka price = ________. - 🧠
ANSWER ✔✔price is the *sum* of all the *values that consumers
exchange* for the *benefits of having or using the product*
price = SACRIFICE
there is a pair of boots sold on Amazon and at Dillard's for $88 with the
same tax and no shipping. are they the same price? <-- what question are
we really asking here? - 🧠 ANSWER ✔✔are they the same *sacrifice*?
- amazon's pair is cheaper because you dont have to go get them
- dillard's pair is cheaper because you dont hace to wait for them to be
delivered, and you can try them on before you buy them
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
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,*marketeres have to consider that customers will pick they product they get
for less sacrifice not always a cheaper price*
what 2 types of factors affect price decisions? what makes up each type? -
🧠 ANSWER ✔✔1. internal factors = marketing objectives, marketing mix
strategies, costs, organizational considerations
2. external factors = nature of market and demand, competition, other
environmental factors (economy, government, resellers, social concerns)
what are 4 strategies marketers could use to respond to internal factors
when choosing the price for a product? what characterizes each? what's an
example of each? - 🧠 ANSWER ✔✔1. *survival* strategy: low prices with
hope it'll increase demand; Amazon
2. *current profit maximization* strategy: choose the price that produces the
maximum current profit
3. *market share leadership* strategy: low as possible prices to become the
market share leader; Walmart
4. *product quality leadership* strategy: high prices to cover higher
performance quality and R&D; Marriot
what internal factors affect our price? - 🧠 ANSWER ✔✔TOTAL COSTS =
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
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,1. fixed costs +
2. variable costs
______ determines the floor of our price, but _________ determine the
ceiling. - 🧠 ANSWER ✔✔cost -- floor
customers -- ceiling
there is a spectrum of supply and demand situations that affect how a
company can set its prices. what are the 4 different stages on the spectrum
and what characterizes each? - 🧠 ANSWER ✔✔1. *pure competition*:
many buyers and sellers who have little effect on price
2. *monopolistic competition*: many buyers and sellers who trade over a
wide range of prices and quality (blue jeans)
3. *oligopolistic competition*: few sellers who are sensitive to each other's
pricing and marketing (cell phones, airlines)
4. *pure monopoly*: single seller with control over price
what is the goal of marketers when it comes to demand elasticity? why? - 🧠
ANSWER ✔✔reduce price elasticity
- org. doesn't have to compete on cost
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
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PRIVACY STATEMENT. ALL RIGHTS RESERVED
, - able to compete on quality, brands, etc.
- customer's won't always seek the lowest price = price cuts won't be way
to increase demand
- brands aren't perceives as substitutable
- premium price can be charged
what are 2 the methods companies use for setting prices for new products?
which sets the product at a high price and which at a low price? - 🧠
ANSWER ✔✔1. market skimming = high price
2. market penetration = low price
what is goal of market skimming? what conditions must be in place for
market skimming to be effective? what's an example? - 🧠 ANSWER ✔✔-
set a high price for a new product in order to *skim max revenues from
target market* resulting in fewer but more profitable sales
- certain conditions:
1. product quality and image support price
2. costs aren't too high
3. competitors can't easily enter market to undercut the price
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
4
PRIVACY STATEMENT. ALL RIGHTS RESERVED
Questions with Detailed Verified
Answers (100% Correct Answers) |
Already Graded A+
what is a narrow definition for price? - 🧠 ANSWER ✔✔price is the *amount
of money* charged for a product or service
what is a more broad definition for price? aka price = ________. - 🧠
ANSWER ✔✔price is the *sum* of all the *values that consumers
exchange* for the *benefits of having or using the product*
price = SACRIFICE
there is a pair of boots sold on Amazon and at Dillard's for $88 with the
same tax and no shipping. are they the same price? <-- what question are
we really asking here? - 🧠 ANSWER ✔✔are they the same *sacrifice*?
- amazon's pair is cheaper because you dont have to go get them
- dillard's pair is cheaper because you dont hace to wait for them to be
delivered, and you can try them on before you buy them
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,*marketeres have to consider that customers will pick they product they get
for less sacrifice not always a cheaper price*
what 2 types of factors affect price decisions? what makes up each type? -
🧠 ANSWER ✔✔1. internal factors = marketing objectives, marketing mix
strategies, costs, organizational considerations
2. external factors = nature of market and demand, competition, other
environmental factors (economy, government, resellers, social concerns)
what are 4 strategies marketers could use to respond to internal factors
when choosing the price for a product? what characterizes each? what's an
example of each? - 🧠 ANSWER ✔✔1. *survival* strategy: low prices with
hope it'll increase demand; Amazon
2. *current profit maximization* strategy: choose the price that produces the
maximum current profit
3. *market share leadership* strategy: low as possible prices to become the
market share leader; Walmart
4. *product quality leadership* strategy: high prices to cover higher
performance quality and R&D; Marriot
what internal factors affect our price? - 🧠 ANSWER ✔✔TOTAL COSTS =
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,1. fixed costs +
2. variable costs
______ determines the floor of our price, but _________ determine the
ceiling. - 🧠 ANSWER ✔✔cost -- floor
customers -- ceiling
there is a spectrum of supply and demand situations that affect how a
company can set its prices. what are the 4 different stages on the spectrum
and what characterizes each? - 🧠 ANSWER ✔✔1. *pure competition*:
many buyers and sellers who have little effect on price
2. *monopolistic competition*: many buyers and sellers who trade over a
wide range of prices and quality (blue jeans)
3. *oligopolistic competition*: few sellers who are sensitive to each other's
pricing and marketing (cell phones, airlines)
4. *pure monopoly*: single seller with control over price
what is the goal of marketers when it comes to demand elasticity? why? - 🧠
ANSWER ✔✔reduce price elasticity
- org. doesn't have to compete on cost
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
3
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, - able to compete on quality, brands, etc.
- customer's won't always seek the lowest price = price cuts won't be way
to increase demand
- brands aren't perceives as substitutable
- premium price can be charged
what are 2 the methods companies use for setting prices for new products?
which sets the product at a high price and which at a low price? - 🧠
ANSWER ✔✔1. market skimming = high price
2. market penetration = low price
what is goal of market skimming? what conditions must be in place for
market skimming to be effective? what's an example? - 🧠 ANSWER ✔✔-
set a high price for a new product in order to *skim max revenues from
target market* resulting in fewer but more profitable sales
- certain conditions:
1. product quality and image support price
2. costs aren't too high
3. competitors can't easily enter market to undercut the price
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
4
PRIVACY STATEMENT. ALL RIGHTS RESERVED
