MKT 291 Final Exam Study Guide Questions
With Correct Answers
Price - CORRECT ANSWER✔✔-is the money or other considerations
| | | | | | | | |
(including other products and services) exchanged for the ownership or
| | | | | | | | | |
use of a product or service.
| | | | |
Value - CORRECT ANSWER✔✔-is the ratio of perceived benefits to price;
| | | | | | | | | |
or _________ = (Perceived benefits divided by Price).
| | | | | | | |
Profit Equation - CORRECT ANSWER✔✔-total revenue - total cost
| | | | | | | |
(unit price * quantity sold) - (fixed cost + variable cost)
| | | | | | | | | |
Pricing objectives - CORRECT ANSWER✔✔-specify the role of price in an
| | | | | | | | | |
organization's marketing and strategic plans
| | | | |
Pricing constraints - CORRECT ANSWER✔✔-are factors that limit the
| | | | | | | | |
range of prices a firm may set
| | | | | |
,Demand Curve - CORRECT ANSWER✔✔-is a graph relating to the
| | | | | | | | | |
quantity sold and price, which shows the maximum number of units
| | | | | | | | | | |
that will be sold at a given price
| | | | | | |
price elasticity of demand - CORRECT ANSWER✔✔-is the percentage
| | | | | | | | |
change in quantity demanded relative to a percentage change in price.
| | | | | | | | | |
total revenue - CORRECT ANSWER✔✔-is the total money received from
| | | | | | | | | |
the sale of a product.
| | | |
Total cost (TC) - CORRECT ANSWER✔✔-is the total expense incurred by
| | | | | | | | | | |
a firm in producing and marketing a product.
| | | | | | |
Break-even analysis - CORRECT ANSWER✔✔-is a technique that
| | | | | | | |
analyzes the relationship between total revenue and total cost to
| | | | | | | | | |
determine profitability at various levels of output.
| | | | | |
Break-even analysis equation - CORRECT ANSWER✔✔-fixed cost / (unit
| | | | | | | | |
price - unit variable cost)
| | | |
Skimming pricing - CORRECT ANSWER✔✔-involves setting the highest
| | | | | | | |
initial price that customers who really desire the product are willing to
| | | | | | | | | | | |
pay when introducing a new or innovative product.
| | | | | | |
, penetration pricing - CORRECT ANSWER✔✔-involves setting a low initial
| | | | | | | |
price on a new product to appeal immediately to the mass market.
| | | | | | | | | | | |
Prestige pricing - CORRECT ANSWER✔✔-involves setting a high price so
| | | | | | | | | |
that quality- or status-conscious consumers will be attracted to the
| | | | | | | | | |
product and buy it. | | |
Odd-even pricing - CORRECT ANSWER✔✔-involves setting prices a few
| | | | | | | | |
dollars or cents under an even number.
| | | | | |
Target pricing - CORRECT ANSWER✔✔-consists of
| | | | | |
(1) estimating the price that ultimate consumers would be willing to pay
| | | | | | | | | | |
for a product,
| | | |
(2) working backward through markups taken by retailers and
| | | | | | | | |
wholesalers to determine what price to charge wholesalers, and then
| | | | | | | | | |
(3) deliberately adjusting the composition and features of the product
| | | | | | | | | |
to achieve the target price to consumers.
| | | | | |
Bundle pricing - CORRECT ANSWER✔✔-involves the marketing of two or
| | | | | | | | |
more products in a single package price.
| | | | | | |
Yield management pricing - CORRECT ANSWER✔✔-involves the
| | | | | | |
charging of different prices to maximize revenue for a set amount of
| | | | | | | | | | | |
capacity at any given time | | | |
With Correct Answers
Price - CORRECT ANSWER✔✔-is the money or other considerations
| | | | | | | | |
(including other products and services) exchanged for the ownership or
| | | | | | | | | |
use of a product or service.
| | | | |
Value - CORRECT ANSWER✔✔-is the ratio of perceived benefits to price;
| | | | | | | | | |
or _________ = (Perceived benefits divided by Price).
| | | | | | | |
Profit Equation - CORRECT ANSWER✔✔-total revenue - total cost
| | | | | | | |
(unit price * quantity sold) - (fixed cost + variable cost)
| | | | | | | | | |
Pricing objectives - CORRECT ANSWER✔✔-specify the role of price in an
| | | | | | | | | |
organization's marketing and strategic plans
| | | | |
Pricing constraints - CORRECT ANSWER✔✔-are factors that limit the
| | | | | | | | |
range of prices a firm may set
| | | | | |
,Demand Curve - CORRECT ANSWER✔✔-is a graph relating to the
| | | | | | | | | |
quantity sold and price, which shows the maximum number of units
| | | | | | | | | | |
that will be sold at a given price
| | | | | | |
price elasticity of demand - CORRECT ANSWER✔✔-is the percentage
| | | | | | | | |
change in quantity demanded relative to a percentage change in price.
| | | | | | | | | |
total revenue - CORRECT ANSWER✔✔-is the total money received from
| | | | | | | | | |
the sale of a product.
| | | |
Total cost (TC) - CORRECT ANSWER✔✔-is the total expense incurred by
| | | | | | | | | | |
a firm in producing and marketing a product.
| | | | | | |
Break-even analysis - CORRECT ANSWER✔✔-is a technique that
| | | | | | | |
analyzes the relationship between total revenue and total cost to
| | | | | | | | | |
determine profitability at various levels of output.
| | | | | |
Break-even analysis equation - CORRECT ANSWER✔✔-fixed cost / (unit
| | | | | | | | |
price - unit variable cost)
| | | |
Skimming pricing - CORRECT ANSWER✔✔-involves setting the highest
| | | | | | | |
initial price that customers who really desire the product are willing to
| | | | | | | | | | | |
pay when introducing a new or innovative product.
| | | | | | |
, penetration pricing - CORRECT ANSWER✔✔-involves setting a low initial
| | | | | | | |
price on a new product to appeal immediately to the mass market.
| | | | | | | | | | | |
Prestige pricing - CORRECT ANSWER✔✔-involves setting a high price so
| | | | | | | | | |
that quality- or status-conscious consumers will be attracted to the
| | | | | | | | | |
product and buy it. | | |
Odd-even pricing - CORRECT ANSWER✔✔-involves setting prices a few
| | | | | | | | |
dollars or cents under an even number.
| | | | | |
Target pricing - CORRECT ANSWER✔✔-consists of
| | | | | |
(1) estimating the price that ultimate consumers would be willing to pay
| | | | | | | | | | |
for a product,
| | | |
(2) working backward through markups taken by retailers and
| | | | | | | | |
wholesalers to determine what price to charge wholesalers, and then
| | | | | | | | | |
(3) deliberately adjusting the composition and features of the product
| | | | | | | | | |
to achieve the target price to consumers.
| | | | | |
Bundle pricing - CORRECT ANSWER✔✔-involves the marketing of two or
| | | | | | | | |
more products in a single package price.
| | | | | | |
Yield management pricing - CORRECT ANSWER✔✔-involves the
| | | | | | |
charging of different prices to maximize revenue for a set amount of
| | | | | | | | | | | |
capacity at any given time | | | |
