BUAD 332 EXAM 3 | 164 VERIFIED
QUESTIONS AND ANSWERS 100%
CORRECT | NEW UPDATE 2025
Narrowly, what is a price? - ANSWER Narrowly, price is the amount of money
charged for a product or service
Broadly, what is a price? - ANSWER 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 - ANSWER sacrifice
Example of price - ANSWER $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 - ANSWER Marketing objectives
Marketing mix strategies
Costs
Organizational considerations
External factors affecting price decisions - ANSWER Nature of the market and
demand
Competition
,Other environmental factors (economy, government, re-sellers, social concerns)
In general, factors affection price decisions represent - ANSWER either a
limitation or "wiggle room"
Marketing objectives affecting pricing decisions - ANSWER 1. Survival
2. Current Profit Maximization
3. Market Share Leadership
4. Product Quality Leadership
Survival - ANSWER Low prices hoping to increase demand
Current Profit Maximization - ANSWER Choose the price that produces the
maximum current profit
Market Share Leadership - ANSWER Low as possible prices to become the
market share leader
Product Quality Leadership - ANSWER High prices to cover higher
performance quality and R&D
Product Quality Leadership Example - ANSWER Pharmaceuticals
Fixed costs (overhead) - ANSWER Costs that don't vary with sales or
production levels
, Total costs - ANSWER Sum of the fixed and variable costs for any given level of
production
Costs determine the... - ANSWER Floor
Customers determined the... - ANSWER Ceiling
External factors affecting Pricing decisions - ANSWER - Markets and Demand
- Competitors' costs, prices, and offers
- Other external factors: Economic conditions, reseller reactions, government
actions and social concerns
Market and demand factors affecting pricing decisions - ANSWER - Pure
Competition
- Monopolistic competition
- Oligopolisitic competition
- Pure Monopoly
Pure Competition - ANSWER Many buyers and sellers who have little effect on
the price
EX: Farming
Monopolistic Competition - ANSWER Many buyers and sellers who trade over
a range of prices
QUESTIONS AND ANSWERS 100%
CORRECT | NEW UPDATE 2025
Narrowly, what is a price? - ANSWER Narrowly, price is the amount of money
charged for a product or service
Broadly, what is a price? - ANSWER 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 - ANSWER sacrifice
Example of price - ANSWER $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 - ANSWER Marketing objectives
Marketing mix strategies
Costs
Organizational considerations
External factors affecting price decisions - ANSWER Nature of the market and
demand
Competition
,Other environmental factors (economy, government, re-sellers, social concerns)
In general, factors affection price decisions represent - ANSWER either a
limitation or "wiggle room"
Marketing objectives affecting pricing decisions - ANSWER 1. Survival
2. Current Profit Maximization
3. Market Share Leadership
4. Product Quality Leadership
Survival - ANSWER Low prices hoping to increase demand
Current Profit Maximization - ANSWER Choose the price that produces the
maximum current profit
Market Share Leadership - ANSWER Low as possible prices to become the
market share leader
Product Quality Leadership - ANSWER High prices to cover higher
performance quality and R&D
Product Quality Leadership Example - ANSWER Pharmaceuticals
Fixed costs (overhead) - ANSWER Costs that don't vary with sales or
production levels
, Total costs - ANSWER Sum of the fixed and variable costs for any given level of
production
Costs determine the... - ANSWER Floor
Customers determined the... - ANSWER Ceiling
External factors affecting Pricing decisions - ANSWER - Markets and Demand
- Competitors' costs, prices, and offers
- Other external factors: Economic conditions, reseller reactions, government
actions and social concerns
Market and demand factors affecting pricing decisions - ANSWER - Pure
Competition
- Monopolistic competition
- Oligopolisitic competition
- Pure Monopoly
Pure Competition - ANSWER Many buyers and sellers who have little effect on
the price
EX: Farming
Monopolistic Competition - ANSWER Many buyers and sellers who trade over
a range of prices
