MGT 103 Bates Final Exam| Questions & Answers (100 %Score) Latest Updated
2024/2025 Comprehensive Questions A+ Graded Answers | With Expert Solutions
price - money or other considerations exchanged for the ownership or use of a product or service
barter - practice of exchaning products and service for other products or services rather than for money
price equation - list price -incentives and allowances + extra fees
value - ratio of perceived benefits to price
perceived benefits/price
value pricing - practice of simultaneously increasing product and service benefits while maintaining or
decreasing price
profit equation - =total revenue -total cost
=(unit price x quantity sold) - (fized cost +variable cost)
process of setting prices - 1. identify pricing objectives and constraints
2. estimate demand and revenue
3. determine cost, volume, and profit relationships
4. select an approximate price level
5. set list or quoted price
6. make special adjustments to list or quoted price
pricing objectives - specifying the role of price in an organizations marketing and strategic plans
-lower levels of org
3 objectives of firms profit - -ROI OR ROA
,-managing for long-run profits
-maximizing current profits
-target return
market share - ratio of the firms sales revenues or unit sales to those in the industry
unit volume - -the quantity produced or sold
pricing constraints - -factors that limit the range of prices a firm may set
pure competition - hundreds of people compete and their price is set by marketplace
monopolistic competition - dozens of regional, private brands , price and non price
oligopoly - -try to avoid price competition to try and avoid losing money
pure monopoly - own person in industry
consumer-driven pricing actions - consumers compare prices
seller/retailer driven pricing action - -aggresive price changes ;
demand curve - graph that relates the quantity sold and price, showing the maximum number of units
that will be sold at a given price
consumer tastes - depends on demographics, culture, and technology
-can change quickly
price and availability of similar products - price falls, more people buys
, -price of substitute falls or availability increases, demand for normal food falls
consumer income - consumers income increase, demand for a product will also increase
demand factors - factors that determine consumers willingness and ability to pay for products and
services
price elasticity of demand - = percentage change in quantity demanded/ percentage change in price
elastic demand - 1% decrease in price produces more than 1% increase in quantity demanded, thereby
increasing total revenue
inelastic demand - 1% decrease in price produces less than a 1% increase in quantity demanded, thereby
decreasing total revenue.
total revenue - total money recieved from the sale of a product
=P (price) x Q (quantity sold)
4 cost concepts - total cost, fixed cost, variable cost, and unit variable cost
break-even analysis - analyzes the relationship between total revenue and total cost to determine
profitability at various levels of output
break even point (BEP) - quantity at which total revenue and total cost are equal
= Fixed cost/ unit price -unit variable cost
break even chart - depicts graphic presentation of the break-even analysis
demand-oriented approach - weigh factors underlying expected customer tastes and preferences more
heavily than such factors such as cost, profit, and competition when selecting a price level
2024/2025 Comprehensive Questions A+ Graded Answers | With Expert Solutions
price - money or other considerations exchanged for the ownership or use of a product or service
barter - practice of exchaning products and service for other products or services rather than for money
price equation - list price -incentives and allowances + extra fees
value - ratio of perceived benefits to price
perceived benefits/price
value pricing - practice of simultaneously increasing product and service benefits while maintaining or
decreasing price
profit equation - =total revenue -total cost
=(unit price x quantity sold) - (fized cost +variable cost)
process of setting prices - 1. identify pricing objectives and constraints
2. estimate demand and revenue
3. determine cost, volume, and profit relationships
4. select an approximate price level
5. set list or quoted price
6. make special adjustments to list or quoted price
pricing objectives - specifying the role of price in an organizations marketing and strategic plans
-lower levels of org
3 objectives of firms profit - -ROI OR ROA
,-managing for long-run profits
-maximizing current profits
-target return
market share - ratio of the firms sales revenues or unit sales to those in the industry
unit volume - -the quantity produced or sold
pricing constraints - -factors that limit the range of prices a firm may set
pure competition - hundreds of people compete and their price is set by marketplace
monopolistic competition - dozens of regional, private brands , price and non price
oligopoly - -try to avoid price competition to try and avoid losing money
pure monopoly - own person in industry
consumer-driven pricing actions - consumers compare prices
seller/retailer driven pricing action - -aggresive price changes ;
demand curve - graph that relates the quantity sold and price, showing the maximum number of units
that will be sold at a given price
consumer tastes - depends on demographics, culture, and technology
-can change quickly
price and availability of similar products - price falls, more people buys
, -price of substitute falls or availability increases, demand for normal food falls
consumer income - consumers income increase, demand for a product will also increase
demand factors - factors that determine consumers willingness and ability to pay for products and
services
price elasticity of demand - = percentage change in quantity demanded/ percentage change in price
elastic demand - 1% decrease in price produces more than 1% increase in quantity demanded, thereby
increasing total revenue
inelastic demand - 1% decrease in price produces less than a 1% increase in quantity demanded, thereby
decreasing total revenue.
total revenue - total money recieved from the sale of a product
=P (price) x Q (quantity sold)
4 cost concepts - total cost, fixed cost, variable cost, and unit variable cost
break-even analysis - analyzes the relationship between total revenue and total cost to determine
profitability at various levels of output
break even point (BEP) - quantity at which total revenue and total cost are equal
= Fixed cost/ unit price -unit variable cost
break even chart - depicts graphic presentation of the break-even analysis
demand-oriented approach - weigh factors underlying expected customer tastes and preferences more
heavily than such factors such as cost, profit, and competition when selecting a price level
