LSUS Chen- MBA 706 Module 4 Exam
Questions and Answers 100% PASS
Cost reductions - CORRECT ANSWER-Products are modified to provide similar
performance but at a lower cost:
ex: iphone XS vs Iphone XR
Price - CORRECT ANSWER-Pricing decisions are hard to make due to the
complexity of interaction among consumers, competitors, and the distribution
network: and decisions are made quickly without testing
- usually there is a large and aggressive company who determines the prices from
the industry, and almost all other companies are obliged to follow, except a few
niche companies
Pricing strategy - CORRECT ANSWER-Price takers:
- follow the prices set by other firms
Price makers:
- Possess the market power to determine the levels and patterns of price that
others follow
, Meeting or following competition: - CORRECT ANSWER-Follow competitor's
prices until establishing a good reputation
Single segment concentration - CORRECT ANSWER-- firms focus on a single
segment
- very high-risk strategy, but usually works well for small companies
- this type of concentrated marketing efforts can develop a strong market position
( brand image of specialist)
Survival - CORRECT ANSWER-Prices are reduced to below cost in order to
maintain a sufficient cash flow
Return on Investment - CORRECT ANSWER-Prices are set to achieve a
predetermined level of return on investment
Market stabilization - CORRECT ANSWER-Firms set prices to minimize the
possibility of market leader retaliation and to ensure market stability
Maintenance and improvement of market position - CORRECT ANSWER-Prices
are set to increase market share and minimize the possibility of price wars
Pricing to reflect product differentiation - CORRECT ANSWER-Prices are set
differently for each market segment and to create different perceptions of their
product's value
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
Questions and Answers 100% PASS
Cost reductions - CORRECT ANSWER-Products are modified to provide similar
performance but at a lower cost:
ex: iphone XS vs Iphone XR
Price - CORRECT ANSWER-Pricing decisions are hard to make due to the
complexity of interaction among consumers, competitors, and the distribution
network: and decisions are made quickly without testing
- usually there is a large and aggressive company who determines the prices from
the industry, and almost all other companies are obliged to follow, except a few
niche companies
Pricing strategy - CORRECT ANSWER-Price takers:
- follow the prices set by other firms
Price makers:
- Possess the market power to determine the levels and patterns of price that
others follow
, Meeting or following competition: - CORRECT ANSWER-Follow competitor's
prices until establishing a good reputation
Single segment concentration - CORRECT ANSWER-- firms focus on a single
segment
- very high-risk strategy, but usually works well for small companies
- this type of concentrated marketing efforts can develop a strong market position
( brand image of specialist)
Survival - CORRECT ANSWER-Prices are reduced to below cost in order to
maintain a sufficient cash flow
Return on Investment - CORRECT ANSWER-Prices are set to achieve a
predetermined level of return on investment
Market stabilization - CORRECT ANSWER-Firms set prices to minimize the
possibility of market leader retaliation and to ensure market stability
Maintenance and improvement of market position - CORRECT ANSWER-Prices
are set to increase market share and minimize the possibility of price wars
Pricing to reflect product differentiation - CORRECT ANSWER-Prices are set
differently for each market segment and to create different perceptions of their
product's value
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
