MKT315 FINAL CERTIFICATION
EVALUATION QUESTIONS AND SOLUTIONS
GRADED A+
●● Pricing Strategy: Penetration Pricing
Answer: Low price to increase sales and market share.
●● Pricing Strategy: Skimming Pricing
Answer: Starts out with a high price and slowly lowers it to fit the
market.
●● Pricing Strategy: Competition Pricing
Answer: Setting prices nearly equal to competitors.
●● A cable company may start out with a low price to get subscribers.
Eventually, price will increase as their market share increases.
Answer: Penetration Pricing
●● A cellular phone carrier charges a premium price at the onset, but
reduces the price of its phones over five years, following the natural
product lifecycle.
Answer: Skimming Pricing
, ●● Price matching is one example. Some companies (such as cell phone
carriers) give the customer a refund that covers competitors' fees, to
convince them to switch carriers.
Answer: Competition Pricing
●● Wholesaling
Answer: The process of enabling the movement of merch from
manufacturers to retailers.
●● Retailing
Answer: The process that enables the sale of products and services to
end-use consumers, including business consumers and individuals at
their homes.
●● Intermediary Functions
Answer: Transactional, Logistical, and Facilitating services that provide
benefits to consumers.
●● Distribution Channels
Answer: Facilitate the movement and final sales of products and services
to consumers.
●● Types of retailers
Answer: Walmart, Costco, Nordstrom, Macy's...
EVALUATION QUESTIONS AND SOLUTIONS
GRADED A+
●● Pricing Strategy: Penetration Pricing
Answer: Low price to increase sales and market share.
●● Pricing Strategy: Skimming Pricing
Answer: Starts out with a high price and slowly lowers it to fit the
market.
●● Pricing Strategy: Competition Pricing
Answer: Setting prices nearly equal to competitors.
●● A cable company may start out with a low price to get subscribers.
Eventually, price will increase as their market share increases.
Answer: Penetration Pricing
●● A cellular phone carrier charges a premium price at the onset, but
reduces the price of its phones over five years, following the natural
product lifecycle.
Answer: Skimming Pricing
, ●● Price matching is one example. Some companies (such as cell phone
carriers) give the customer a refund that covers competitors' fees, to
convince them to switch carriers.
Answer: Competition Pricing
●● Wholesaling
Answer: The process of enabling the movement of merch from
manufacturers to retailers.
●● Retailing
Answer: The process that enables the sale of products and services to
end-use consumers, including business consumers and individuals at
their homes.
●● Intermediary Functions
Answer: Transactional, Logistical, and Facilitating services that provide
benefits to consumers.
●● Distribution Channels
Answer: Facilitate the movement and final sales of products and services
to consumers.
●● Types of retailers
Answer: Walmart, Costco, Nordstrom, Macy's...
