BUAD 332|164 Exam 3 Questions with 100% Correct Answers | Verified | Latest Update

Narrowly, what is a price? - ️️Narrowly, price is the amount of money charged for a product or service Broadly, what is a price? - ️️Broadly, price is the sum of all values that consumers exchange for the benefits of having or using the product or service Price is not just money, think of price as - ️️sacrifice Example of price - ️️$88 boots from amazon versus exact same pair at Dillards for $88 as well. The price here is wait-time, trying them on, or convenience. The "lower price" depends on customer value Internal factors affecting price decisions - ️️Marketing objectives Marketing mix strategies Costs Organizational considerations External factors affecting price decisions - ️️Nature of the market and demand Competition Other environmental factors (economy, government, re-sellers, social concerns) In general, factors affection price decisions represent - ️️either a limitation or "wiggle room" Marketing objectives affecting pricing decisions - ️️1. Survival 2. Current Profit Maximization