COB 300 MARKETING ANTWERP EXAM
QUESTIONS AND ANSWERS
market penetration - Answer-lower price to attract large target audience
prestige pricing - Answer-set high price for prestige
price constraints - Answer--demand for product
-newness of product
cost oriented pricing - Answer-based on costs of production and marketing costs plus a
reasonable return for risk
cost plus pricing - Answer-apply standard profit margin to costs
target return pricing - Answer-set price to achieve pre-set return (profit)
Approaches to set Final Price: - Answer-1. Demand-oriented
2. Cost-oriented
3. Profit-oriented
4. Competition-oriented
Psychological pricing - Answer-price signals value of product to customer
reference pricing - Answer-price buyers have in mind and refer to when considering
product; "Anchor"
price quality deduction - Answer-people think more expensive products have better
quality
compromise effect - Answer-adding more expensive items to product line because
adding a large size increases sales of medium size; customers don't have to comprise
price signals - Answer-odd and even pricing; .99
target costing - Answer-inverse pricing
ex: Steve Jobs ipads
predatory pricing - Answer-setting unreasonably low price for short term to eliminate
competition
loss-leader pricing - Answer-selling new Harry Potter book for 1 pound
dynamic pricing - Answer-different prices depending on individual customers
, relational pricing - Answer-offering incentives to loyal customers
adjustments to price level - Answer-discounts
allowances
geographical adjustments
trade-in allowances - Answer-discount for trading in old item with purchase of new item
promotional allowances - Answer-discount to resellers for participating in sales-support
programs
Free on Board (FOB) - Answer-term used to determine where the liability responsibility
for the goods transfer from seller to buyer
Supply chain - Answer-set of entities directly involved in the upstream or downstream
flows of product from source to customer
distribution channel - Answer-"downstream" part of supply chain; from company to
consumers
exclusive distribution - Answer-smaller target audience; luxury brands
rolex
selective distribution - Answer-available in more places but not everywhere
intensive distribution - Answer-can find anywhere
coke
value delivery network - Answer-network that consists of company, suppliers,
intermediaries, and customers that engage in partnership to improve the performance of
whole system
Channel conflict - Answer-disagreement with channel members on goals
conventional marketing system - Answer-1. manufacturer
2. wholesaler
3. retailer
4. consumer
vertical marketing system - Answer-producers, wholesalers, and retailers act as unified
system
corporate vms - Answer-manufacturing and distribution owned by single company;
ABInBev
QUESTIONS AND ANSWERS
market penetration - Answer-lower price to attract large target audience
prestige pricing - Answer-set high price for prestige
price constraints - Answer--demand for product
-newness of product
cost oriented pricing - Answer-based on costs of production and marketing costs plus a
reasonable return for risk
cost plus pricing - Answer-apply standard profit margin to costs
target return pricing - Answer-set price to achieve pre-set return (profit)
Approaches to set Final Price: - Answer-1. Demand-oriented
2. Cost-oriented
3. Profit-oriented
4. Competition-oriented
Psychological pricing - Answer-price signals value of product to customer
reference pricing - Answer-price buyers have in mind and refer to when considering
product; "Anchor"
price quality deduction - Answer-people think more expensive products have better
quality
compromise effect - Answer-adding more expensive items to product line because
adding a large size increases sales of medium size; customers don't have to comprise
price signals - Answer-odd and even pricing; .99
target costing - Answer-inverse pricing
ex: Steve Jobs ipads
predatory pricing - Answer-setting unreasonably low price for short term to eliminate
competition
loss-leader pricing - Answer-selling new Harry Potter book for 1 pound
dynamic pricing - Answer-different prices depending on individual customers
, relational pricing - Answer-offering incentives to loyal customers
adjustments to price level - Answer-discounts
allowances
geographical adjustments
trade-in allowances - Answer-discount for trading in old item with purchase of new item
promotional allowances - Answer-discount to resellers for participating in sales-support
programs
Free on Board (FOB) - Answer-term used to determine where the liability responsibility
for the goods transfer from seller to buyer
Supply chain - Answer-set of entities directly involved in the upstream or downstream
flows of product from source to customer
distribution channel - Answer-"downstream" part of supply chain; from company to
consumers
exclusive distribution - Answer-smaller target audience; luxury brands
rolex
selective distribution - Answer-available in more places but not everywhere
intensive distribution - Answer-can find anywhere
coke
value delivery network - Answer-network that consists of company, suppliers,
intermediaries, and customers that engage in partnership to improve the performance of
whole system
Channel conflict - Answer-disagreement with channel members on goals
conventional marketing system - Answer-1. manufacturer
2. wholesaler
3. retailer
4. consumer
vertical marketing system - Answer-producers, wholesalers, and retailers act as unified
system
corporate vms - Answer-manufacturing and distribution owned by single company;
ABInBev
