MKT 300 Exam 4 Eaton ASU questions with
answers
price - CORRECT ANSWERS ✔✔the value that you exchange for the benefits of
having or using the product/service
value = - CORRECT ANSWERS ✔✔benefits - costs
internal factors on pricing decisions - CORRECT ANSWERS ✔✔marketing
objectives, marketing mix strategy, costs
marketing objectives - CORRECT ANSWERS ✔✔to maximize profit
to gain market share
to infer a level of quality
to survive
marketing mix strategy - CORRECT ANSWERS ✔✔Price needs to be consistent with
other 3P's (needs to reflect advertising, etc.)
costs - CORRECT ANSWERS ✔✔your costs affect your profit, so set the optimal
price
external factors on pricing decisions - CORRECT ANSWERS ✔✔demand for your
product, competition, economy
,competition - CORRECT ANSWERS ✔✔competitor's prices
strength of competition
economy - CORRECT ANSWERS ✔✔cost of components (natural resources)
economic conditions
price elasticity - CORRECT ANSWERS ✔✔tells us how much the demand for a
product will change with a change in price (% change in quantity demanded/%
change in price)
elastic demand - CORRECT ANSWERS ✔✔a relatively small decrease in price
results in a substantial increase in quantity demanded
inelastic demand - CORRECT ANSWERS ✔✔a relatively large increase in price
results in only a small decrease in quantity demanded
unitary elasticity - CORRECT ANSWERS ✔✔an increase in sales exactly offsets a
decrease in prices and revenue is unchanged
importance of price - CORRECT ANSWERS ✔✔type of product, type of target
market, purchase situation
profit - CORRECT ANSWERS ✔✔identify price and cost levels that allow the firm to
maximize profit per product
, status quo - CORRECT ANSWERS ✔✔identify price levels similar to competitor
average price
market share - CORRECT ANSWERS ✔✔adjust price levels so that the firm can
maintain or increase sales relative to competitors' sales
sources of competitors pricing information - CORRECT ANSWERS ✔✔-comparative
shoppers
importance of knowing competitors prices - CORRECT ANSWERS ✔✔-Helps
determine how important price will be to customers
-Helps marketers in setting competitive prices for their products
customer view of pricing and marketing - CORRECT ANSWERS ✔✔pricing above
competition
pricing below competition
cost-plus pricing - CORRECT ANSWERS ✔✔adding a specified dollar amount to the
seller's costs
markup - CORRECT ANSWERS ✔✔adding to the price of the product a
predetermined percentage of the variable cost
margin - CORRECT ANSWERS ✔✔adding to the price of the product a
predetermined percentage of the total price
answers
price - CORRECT ANSWERS ✔✔the value that you exchange for the benefits of
having or using the product/service
value = - CORRECT ANSWERS ✔✔benefits - costs
internal factors on pricing decisions - CORRECT ANSWERS ✔✔marketing
objectives, marketing mix strategy, costs
marketing objectives - CORRECT ANSWERS ✔✔to maximize profit
to gain market share
to infer a level of quality
to survive
marketing mix strategy - CORRECT ANSWERS ✔✔Price needs to be consistent with
other 3P's (needs to reflect advertising, etc.)
costs - CORRECT ANSWERS ✔✔your costs affect your profit, so set the optimal
price
external factors on pricing decisions - CORRECT ANSWERS ✔✔demand for your
product, competition, economy
,competition - CORRECT ANSWERS ✔✔competitor's prices
strength of competition
economy - CORRECT ANSWERS ✔✔cost of components (natural resources)
economic conditions
price elasticity - CORRECT ANSWERS ✔✔tells us how much the demand for a
product will change with a change in price (% change in quantity demanded/%
change in price)
elastic demand - CORRECT ANSWERS ✔✔a relatively small decrease in price
results in a substantial increase in quantity demanded
inelastic demand - CORRECT ANSWERS ✔✔a relatively large increase in price
results in only a small decrease in quantity demanded
unitary elasticity - CORRECT ANSWERS ✔✔an increase in sales exactly offsets a
decrease in prices and revenue is unchanged
importance of price - CORRECT ANSWERS ✔✔type of product, type of target
market, purchase situation
profit - CORRECT ANSWERS ✔✔identify price and cost levels that allow the firm to
maximize profit per product
, status quo - CORRECT ANSWERS ✔✔identify price levels similar to competitor
average price
market share - CORRECT ANSWERS ✔✔adjust price levels so that the firm can
maintain or increase sales relative to competitors' sales
sources of competitors pricing information - CORRECT ANSWERS ✔✔-comparative
shoppers
importance of knowing competitors prices - CORRECT ANSWERS ✔✔-Helps
determine how important price will be to customers
-Helps marketers in setting competitive prices for their products
customer view of pricing and marketing - CORRECT ANSWERS ✔✔pricing above
competition
pricing below competition
cost-plus pricing - CORRECT ANSWERS ✔✔adding a specified dollar amount to the
seller's costs
markup - CORRECT ANSWERS ✔✔adding to the price of the product a
predetermined percentage of the variable cost
margin - CORRECT ANSWERS ✔✔adding to the price of the product a
predetermined percentage of the total price
