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BUAD 332 EXAM 3 NEWEST 2025/2026 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED||
Setting a High Price for a New Product to Skim Maximum
Revenues from the Target Market; Results in Fewer, But More
Profitable Sales. - ANSWER-Market Skimming
What are the 3 conditions of Market Skimming? - ANSWER-1.
Product's Quality and Image Must Support Its Higher Price, 2.
Costs Can't be so High that They Cancel the Advantages of
Charging More, 3. Competitors Shouldn't be Able to Enter Market
Easily and Undercut the High Price
Setting a Low Price for a New Product in Order to Penetrate the
Market Quickly and Deeply; Attract a Large Number of Buyers
and Win a Larger Market Share. - ANSWER-Market Penetration
What are the 3 conditions of Market Penetration? - ANSWER-1.
Market Must be Highly Price-Sensitive so a Low Price Produces
More Market Growth, 2. Production/Distribution Costs Must Fall
as Sales Volume Increases, 3. Must Keep Out Competition &
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Maintain Its Low Price Position or Benefits May Only be
Temporary.
What is an example of market skimming? - ANSWER-Apple
Watches
What is an example of market penetration? - ANSWER-Kindle
Fire
Pricing optional or accessory products sold with the main product.
For example: added memory on a computer - ANSWER-Optional-
Product
Pricing products that must be used with the main product (ink for
printer) - ANSWER-Captive-Product
What are the 5 ways to adjust basic price to reward customers for
certain responses? - ANSWER-1. Cash discount, 2. Quantity
discount, 3. Promotional allowance, 4. Seasonal discount, 5.
Trade-In allowance
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When do customers use price more? - ANSWER-When that can't
judge the quality of a product
What is an example of a good with a psychological value? -
ANSWER-Rolex
What are the 3 reasons to cut prices? - ANSWER-1. Excess
capacity, 2. Falling market share, 3. Dominate market through
lower prices
What are the 2 reasons to increase prices? - ANSWER-1. Cost
inflation, 2. Over-demand (company cannot supply all customers'
needs
Set of interdependent organizations organizations involved in the
process of making a product or service available for use or
consumption by the consumer or business user. - ANSWER-
Distribution Channel
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Intermediaries used for distribution channels - ANSWER-
Contacts, Experience, Specialization, Scale of operation
What is an example of Channel of Distribution? - ANSWER-Orbit
irrigation products use Home Depot as their Channel of
Distribution
"What should the channel look like?" answers what question? -
ANSWER-Channel Design
"How do I get the channel partners to do what I want them to do?"
answers what question? - ANSWER-Channel Management
Intensive products - ANSWER-have it available in a lot of any
location: Doritos
Exclusive products - ANSWER-going to be picky about where this
product can be sold (prestige): Rolex
BUAD 332 EXAM 3 NEWEST 2025/2026 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED||
Setting a High Price for a New Product to Skim Maximum
Revenues from the Target Market; Results in Fewer, But More
Profitable Sales. - ANSWER-Market Skimming
What are the 3 conditions of Market Skimming? - ANSWER-1.
Product's Quality and Image Must Support Its Higher Price, 2.
Costs Can't be so High that They Cancel the Advantages of
Charging More, 3. Competitors Shouldn't be Able to Enter Market
Easily and Undercut the High Price
Setting a Low Price for a New Product in Order to Penetrate the
Market Quickly and Deeply; Attract a Large Number of Buyers
and Win a Larger Market Share. - ANSWER-Market Penetration
What are the 3 conditions of Market Penetration? - ANSWER-1.
Market Must be Highly Price-Sensitive so a Low Price Produces
More Market Growth, 2. Production/Distribution Costs Must Fall
as Sales Volume Increases, 3. Must Keep Out Competition &
,2|Page
Maintain Its Low Price Position or Benefits May Only be
Temporary.
What is an example of market skimming? - ANSWER-Apple
Watches
What is an example of market penetration? - ANSWER-Kindle
Fire
Pricing optional or accessory products sold with the main product.
For example: added memory on a computer - ANSWER-Optional-
Product
Pricing products that must be used with the main product (ink for
printer) - ANSWER-Captive-Product
What are the 5 ways to adjust basic price to reward customers for
certain responses? - ANSWER-1. Cash discount, 2. Quantity
discount, 3. Promotional allowance, 4. Seasonal discount, 5.
Trade-In allowance
,3|Page
When do customers use price more? - ANSWER-When that can't
judge the quality of a product
What is an example of a good with a psychological value? -
ANSWER-Rolex
What are the 3 reasons to cut prices? - ANSWER-1. Excess
capacity, 2. Falling market share, 3. Dominate market through
lower prices
What are the 2 reasons to increase prices? - ANSWER-1. Cost
inflation, 2. Over-demand (company cannot supply all customers'
needs
Set of interdependent organizations organizations involved in the
process of making a product or service available for use or
consumption by the consumer or business user. - ANSWER-
Distribution Channel
, 4|Page
Intermediaries used for distribution channels - ANSWER-
Contacts, Experience, Specialization, Scale of operation
What is an example of Channel of Distribution? - ANSWER-Orbit
irrigation products use Home Depot as their Channel of
Distribution
"What should the channel look like?" answers what question? -
ANSWER-Channel Design
"How do I get the channel partners to do what I want them to do?"
answers what question? - ANSWER-Channel Management
Intensive products - ANSWER-have it available in a lot of any
location: Doritos
Exclusive products - ANSWER-going to be picky about where this
product can be sold (prestige): Rolex
