MGT 103 Exam Questions and Answers with
Verified Solutions | Latest Updated 2026
What is the formula for profit (X)? (X) Profit = (unit price * quantity sold) -
total cost
What distribution strategy is best selective distribution
for
athletic shoes like Nike and Adidas
What distribution strategy is used intensive distribution
for
toothpaste?
What distribution strategy is exclusive distribution
appropriate for high-end designer
handbags?
What pricing strategy did Disney Penetration Pricing
use
when entering the streaming
market
at a lower price than Netflix?
Penetration Pricing
Price lining
Skimming pricing
Bundle pricing
,Which pricing strategy is NOT Captive pricing
considered illegal?
Captive pricing
Bait and switch pricing
False former price comparison
Predatory pricing
What is the best type of market Exclusive distribution
coverage for specialty items like
Fendi handbags and Rolex
watches?
Exclusive distribution
Selective distribution
Intensive distribution
Prestige distribution
, When is a skimming pricing policy When enough customers are willing to buy
most effective? at a
1. (), 2. The high initial price will high price to make it profitable.
not
attract competitors, 3. Lowering
the
price has only a minor effect on
increasing the sales volume and
reducing the unit cost, 4.
Customers
interpret the high price as a
signifying high quality
Enough customers are willing to
buy
at a high price to make it profitable
Consumers tend to be price
sensitive
The lower price makes it easier to
set
measurable sales unit goals
The lower price will significantly
reduce unit costs
Verified Solutions | Latest Updated 2026
What is the formula for profit (X)? (X) Profit = (unit price * quantity sold) -
total cost
What distribution strategy is best selective distribution
for
athletic shoes like Nike and Adidas
What distribution strategy is used intensive distribution
for
toothpaste?
What distribution strategy is exclusive distribution
appropriate for high-end designer
handbags?
What pricing strategy did Disney Penetration Pricing
use
when entering the streaming
market
at a lower price than Netflix?
Penetration Pricing
Price lining
Skimming pricing
Bundle pricing
,Which pricing strategy is NOT Captive pricing
considered illegal?
Captive pricing
Bait and switch pricing
False former price comparison
Predatory pricing
What is the best type of market Exclusive distribution
coverage for specialty items like
Fendi handbags and Rolex
watches?
Exclusive distribution
Selective distribution
Intensive distribution
Prestige distribution
, When is a skimming pricing policy When enough customers are willing to buy
most effective? at a
1. (), 2. The high initial price will high price to make it profitable.
not
attract competitors, 3. Lowering
the
price has only a minor effect on
increasing the sales volume and
reducing the unit cost, 4.
Customers
interpret the high price as a
signifying high quality
Enough customers are willing to
buy
at a high price to make it profitable
Consumers tend to be price
sensitive
The lower price makes it easier to
set
measurable sales unit goals
The lower price will significantly
reduce unit costs
