BUAD 332 EXAM 3 | COMPLETE QUESTIONS WITH 100% RATED
EXPERT SOLUTIONS |2026 LATEST UPDATED
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
EX: Jeans
Oligopolistic Competition - (answer)Few sellers who are sensitive to each other's
pricing/marketing strategies
EX: Airlines
Pure Monopoly - (answer)Single seller
EX: KUB
Downward sloping demand curve indicates that - (answer)As price gets lower, quantity
demanded gets higher.
MBA program example that contradicts a downward sloping demand curve - (answer)UTK was
charging $25,000 15 years ago but then decided that they could raise the price to $45,000.
The applications increased because...
If its hard to judge quality, price is usually a signal of quality therefore a higher price indicates
better quality
EXPERT SOLUTIONS |2026 LATEST UPDATED
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
EX: Jeans
Oligopolistic Competition - (answer)Few sellers who are sensitive to each other's
pricing/marketing strategies
EX: Airlines
Pure Monopoly - (answer)Single seller
EX: KUB
Downward sloping demand curve indicates that - (answer)As price gets lower, quantity
demanded gets higher.
MBA program example that contradicts a downward sloping demand curve - (answer)UTK was
charging $25,000 15 years ago but then decided that they could raise the price to $45,000.
The applications increased because...
If its hard to judge quality, price is usually a signal of quality therefore a higher price indicates
better quality
