UTA 3321 MARKETING STUDY GUIDE 3 2026
TEST PAPER QUESTIONS AND SOLUTIONS
GRADED A+
●● should companies sell price or value?.
Answer: value
●● Firms should strive to convince consumers that __________ is
justified by ___________ provided.
Answer: price, value
●● considerations in setting price (chart).
Answer:
●● cost-based pricing.
Answer: setting prices based on the costs of producing, distributing, and
selling the product plus a fair rate of return for effort and risk
●● what are the types of costs.
Answer: fixed costs, variable costs, total costs
●● cost-plus pricing.
,Answer: adding a standard markup to the cost of the product
●● break-even pricing.
Answer: setting price to break even on the costs of making and
marketing a product, or setting price to make a target return
●● break even point formula.
Answer: fixed cost / (unit price - unit variable cost)
●● competition.
Answer: Setting prices based on competitors' strategies, costs, prices,
and market offerings
●● what is value-based pricing.
Answer: A pricing system based upon a buyer's view of product or
service value
●● what are the other considerations affecting pricing decisions.
Answer: internal and external factors
●● what are internal factors.
Answer: - Pricing decisions must coordinate with packaging,
promotion, and distribution decisions
,- Positioning may be based on price
●● external factors.
Answer: - Types of Markets
- Market and demand
- Economy
●● pricing in different types of markets.
Answer: 1. Pure competition
2. Monopolistic competition
3. Oligopolistic competition
●● different pricing result in different levels of.
Answer: demand
●● price elasticity of demand.
Answer: • Refers to changes in demand due to change in price.
• Small demand change = inelastic demand.
• Large demand change = elastic demand.
●● what are factors (in the economy) that impact pricing strategies.
Answer: - Boom or recession
, - Inflation
- Interest rates
●● Responses to the frugality of post-recession
consumers.
Answer: - Cut prices and offer discounts
- Develop more affordable items
- Redefine value propositions
●● Market-skimming pricing (price skimming).
Answer: setting a high price for a new product to skim maximum
revenues layer by layer from the segments willing to pay the high price;
the company makes fewer but more profitable sales
●● market penetration pricing.
Answer: setting a low price for a new product in order to attract a large
number of buyers and a large market share
●● product mix pricing.
Answer: product line pricing,
optional product pricing,
captive product pricing,
by-product pricing,
TEST PAPER QUESTIONS AND SOLUTIONS
GRADED A+
●● should companies sell price or value?.
Answer: value
●● Firms should strive to convince consumers that __________ is
justified by ___________ provided.
Answer: price, value
●● considerations in setting price (chart).
Answer:
●● cost-based pricing.
Answer: setting prices based on the costs of producing, distributing, and
selling the product plus a fair rate of return for effort and risk
●● what are the types of costs.
Answer: fixed costs, variable costs, total costs
●● cost-plus pricing.
,Answer: adding a standard markup to the cost of the product
●● break-even pricing.
Answer: setting price to break even on the costs of making and
marketing a product, or setting price to make a target return
●● break even point formula.
Answer: fixed cost / (unit price - unit variable cost)
●● competition.
Answer: Setting prices based on competitors' strategies, costs, prices,
and market offerings
●● what is value-based pricing.
Answer: A pricing system based upon a buyer's view of product or
service value
●● what are the other considerations affecting pricing decisions.
Answer: internal and external factors
●● what are internal factors.
Answer: - Pricing decisions must coordinate with packaging,
promotion, and distribution decisions
,- Positioning may be based on price
●● external factors.
Answer: - Types of Markets
- Market and demand
- Economy
●● pricing in different types of markets.
Answer: 1. Pure competition
2. Monopolistic competition
3. Oligopolistic competition
●● different pricing result in different levels of.
Answer: demand
●● price elasticity of demand.
Answer: • Refers to changes in demand due to change in price.
• Small demand change = inelastic demand.
• Large demand change = elastic demand.
●● what are factors (in the economy) that impact pricing strategies.
Answer: - Boom or recession
, - Inflation
- Interest rates
●● Responses to the frugality of post-recession
consumers.
Answer: - Cut prices and offer discounts
- Develop more affordable items
- Redefine value propositions
●● Market-skimming pricing (price skimming).
Answer: setting a high price for a new product to skim maximum
revenues layer by layer from the segments willing to pay the high price;
the company makes fewer but more profitable sales
●● market penetration pricing.
Answer: setting a low price for a new product in order to attract a large
number of buyers and a large market share
●● product mix pricing.
Answer: product line pricing,
optional product pricing,
captive product pricing,
by-product pricing,
