Marketing Exam 3 University of Miami
MKT:201 Questions and Answers
Customer value based pricing ✅✅Setting price based on buyers' perceptions of value
rather than on the seller's cost.
Good Value Pricing ✅✅Offering the right combination of quality and good service at a
fair price
Value- added pricing ✅✅Instead of cutting prices, they add quality, service and value to
differentiate their offers and supports their higher prices
Cost-based pricing ✅✅Sets price on the cost of production, distribution and selling the
product. Also adds a fair rate of return
Pure competition ✅✅Many firms selling commodities for the same prices
More price competition
,Monopolistic competition ✅✅Many firms selling differentiated products at different prices
Less price competition
Oligopolistic ✅✅A handful of firms control the market
More Price competition
Pure monopoly ✅✅One firm controls the market
Less price competition
Price-Demand Relationships ✅✅Demand and price inverse relationship
Price goes up, demand goes down
Price goes down, demand goes down
Price Elasticity of Demand: ✅✅Is a measure of the sensitivity of demand to changes in
price.
, Promotion Mix: ✅✅Specific blend of promotion tools that company used to communicate
customer value and build relationships
Advertising ✅✅Is any paid form of non personal presentation and promotion of ideas,
goods, or services by an identified sponsor
Sales Promotion ✅✅IS a short-term incentive to encourage the purchase or sale of a
product or service
Personal Selling ✅✅Is the personal interaction by the firm's sales force for the purpose of
engaging customers, making sales, and building customer relationships
Public Relations ✅✅Involves building good relations with the company's various publics
by obtaining favorable publicity, building up a good corporate image, and handling or
heading off unfavorable rumors, stories, and events.
MKT:201 Questions and Answers
Customer value based pricing ✅✅Setting price based on buyers' perceptions of value
rather than on the seller's cost.
Good Value Pricing ✅✅Offering the right combination of quality and good service at a
fair price
Value- added pricing ✅✅Instead of cutting prices, they add quality, service and value to
differentiate their offers and supports their higher prices
Cost-based pricing ✅✅Sets price on the cost of production, distribution and selling the
product. Also adds a fair rate of return
Pure competition ✅✅Many firms selling commodities for the same prices
More price competition
,Monopolistic competition ✅✅Many firms selling differentiated products at different prices
Less price competition
Oligopolistic ✅✅A handful of firms control the market
More Price competition
Pure monopoly ✅✅One firm controls the market
Less price competition
Price-Demand Relationships ✅✅Demand and price inverse relationship
Price goes up, demand goes down
Price goes down, demand goes down
Price Elasticity of Demand: ✅✅Is a measure of the sensitivity of demand to changes in
price.
, Promotion Mix: ✅✅Specific blend of promotion tools that company used to communicate
customer value and build relationships
Advertising ✅✅Is any paid form of non personal presentation and promotion of ideas,
goods, or services by an identified sponsor
Sales Promotion ✅✅IS a short-term incentive to encourage the purchase or sale of a
product or service
Personal Selling ✅✅Is the personal interaction by the firm's sales force for the purpose of
engaging customers, making sales, and building customer relationships
Public Relations ✅✅Involves building good relations with the company's various publics
by obtaining favorable publicity, building up a good corporate image, and handling or
heading off unfavorable rumors, stories, and events.
