GB 350 EXAM 4 OLE MISS CASCIO
QUESTIONS COMPLETE WITH 100%
CORRECT ANSWERS
\.price - ANSWERS✔-that which is given up in an exchange to acquire a good or service
\.two perspectives of pricing - ANSWERS✔--price = sacrifice
-price = information signal
\.price = sacrifice - ANSWERS✔--what are we willing to give up?
Ex: 2/3 of Americans with children under 18 report willingness to spend beyond their means for
holiday presents
\.price = information signal (sometimes) - ANSWERS✔--when local identity is important, price =
quality
-when global identity is important, price = quality
Ex: Amazon launches lower priced grocery service
Ex: Panera bread, local
Ex: Eyewear company, global
\.price reasonable perceptions - ANSWERS✔--"reasonable price" means "perceived reasonable
value" at the time of the transaction
, -more consumers saying now is not a good time to buy or sell a home; nothing new under
$200k
\.profit oriented - ANSWERS✔-a. Profit maximization- Lululemon
b. Satisfactory profits - Old Navy
c. Return on investment (ROI)
20-30% general rule of thumb
\.sales oriented - ANSWERS✔-d. market share - UPS simple rate
e. sales maximization- wait until to buy vehicle at the end of year
\.status quo - ANSWERS✔-f. price matching - coastal contact lenses
e. maintain existing prices
\.elasticity of demand - ANSWERS✔-consumers' responsiveness or sensitivity to changes in
price
\.American Express - ANSWERS✔--price goes down
-revenue goes up
-demand is elastic
\.dynamic pricing - ANSWERS✔-adjusts prices in a real-time to balance changes in demand,
supply, and competitor pricing actions
-allows sellers to price in a competitive manner
-stimulate purchases when demand is low and supply is high
-maximize profits when demand is high and supply is low
QUESTIONS COMPLETE WITH 100%
CORRECT ANSWERS
\.price - ANSWERS✔-that which is given up in an exchange to acquire a good or service
\.two perspectives of pricing - ANSWERS✔--price = sacrifice
-price = information signal
\.price = sacrifice - ANSWERS✔--what are we willing to give up?
Ex: 2/3 of Americans with children under 18 report willingness to spend beyond their means for
holiday presents
\.price = information signal (sometimes) - ANSWERS✔--when local identity is important, price =
quality
-when global identity is important, price = quality
Ex: Amazon launches lower priced grocery service
Ex: Panera bread, local
Ex: Eyewear company, global
\.price reasonable perceptions - ANSWERS✔--"reasonable price" means "perceived reasonable
value" at the time of the transaction
, -more consumers saying now is not a good time to buy or sell a home; nothing new under
$200k
\.profit oriented - ANSWERS✔-a. Profit maximization- Lululemon
b. Satisfactory profits - Old Navy
c. Return on investment (ROI)
20-30% general rule of thumb
\.sales oriented - ANSWERS✔-d. market share - UPS simple rate
e. sales maximization- wait until to buy vehicle at the end of year
\.status quo - ANSWERS✔-f. price matching - coastal contact lenses
e. maintain existing prices
\.elasticity of demand - ANSWERS✔-consumers' responsiveness or sensitivity to changes in
price
\.American Express - ANSWERS✔--price goes down
-revenue goes up
-demand is elastic
\.dynamic pricing - ANSWERS✔-adjusts prices in a real-time to balance changes in demand,
supply, and competitor pricing actions
-allows sellers to price in a competitive manner
-stimulate purchases when demand is low and supply is high
-maximize profits when demand is high and supply is low
