GB 350 Ole Miss- Final Exam Question
With Verified Answers
\.3 Factors in the Importance of Price - ANSWERS✔--Seller
-Consumer
-Profitability
\.What price means to a SELLER - ANSWERS✔-Revenue
\.What price means to CONSUMER - ANSWERS✔-Cost of something
\.What price means in relation to PROFITABILITY - ANSWERS✔-Sales revenue vs. Expenses
\.The SACRIFICE effect of price - ANSWERS✔-Price is the sacrifice to get a good or service
\.The INFORMATION effect of price - ANSWERS✔-People infer quality information based on
price
\.Value is based upon PERCEIVED SATISFACTION - ANSWERS✔-"reasonable price" means
"perceived reasonable price"
\.Trends Influencing Price - ANSWERS✔--Food of new products
-Increased availability of bargain- priced private and generic brands
, -Price cutting as a strategy to maintain or regain market share
-Internet used for comparison shopping
-U.S. recession from late 2007 to 2009
\.Pricing Objectives - ANSWERS✔--Profit Oriented
-Sales Oriented
-Status Quo
\.Profit- Oriented Pricing Objective (subcategories) - ANSWERS✔--Profit Maximization
-Satisfactory Profits
-Target Return on Investment
\.Profit Maximization - ANSWERS✔-The absolute maximum price a market is willing to tolerate
\.Satisfactory Profits - ANSWERS✔-A reasonable price point for both the customer and the
company
\.Target Return on Investment - ANSWERS✔-Based on the amount an investor (shareholder)
expects to gain or recover from their investment
\.Sales- Oriented Pricing Objective (subcategories) - ANSWERS✔--Market Share
-Sales Maximization
\.Market Share - ANSWERS✔-company prices to gain as much market share (best margins)
possible- how much money you're trying to SPEND
With Verified Answers
\.3 Factors in the Importance of Price - ANSWERS✔--Seller
-Consumer
-Profitability
\.What price means to a SELLER - ANSWERS✔-Revenue
\.What price means to CONSUMER - ANSWERS✔-Cost of something
\.What price means in relation to PROFITABILITY - ANSWERS✔-Sales revenue vs. Expenses
\.The SACRIFICE effect of price - ANSWERS✔-Price is the sacrifice to get a good or service
\.The INFORMATION effect of price - ANSWERS✔-People infer quality information based on
price
\.Value is based upon PERCEIVED SATISFACTION - ANSWERS✔-"reasonable price" means
"perceived reasonable price"
\.Trends Influencing Price - ANSWERS✔--Food of new products
-Increased availability of bargain- priced private and generic brands
, -Price cutting as a strategy to maintain or regain market share
-Internet used for comparison shopping
-U.S. recession from late 2007 to 2009
\.Pricing Objectives - ANSWERS✔--Profit Oriented
-Sales Oriented
-Status Quo
\.Profit- Oriented Pricing Objective (subcategories) - ANSWERS✔--Profit Maximization
-Satisfactory Profits
-Target Return on Investment
\.Profit Maximization - ANSWERS✔-The absolute maximum price a market is willing to tolerate
\.Satisfactory Profits - ANSWERS✔-A reasonable price point for both the customer and the
company
\.Target Return on Investment - ANSWERS✔-Based on the amount an investor (shareholder)
expects to gain or recover from their investment
\.Sales- Oriented Pricing Objective (subcategories) - ANSWERS✔--Market Share
-Sales Maximization
\.Market Share - ANSWERS✔-company prices to gain as much market share (best margins)
possible- how much money you're trying to SPEND
