BUAD 332 Exam 3 Questions And Correct
Answers | New Update 2025
Price is the amount of money a customer pays for a product. T or F? - ANSWER
False
Marketers should see price as - ANSWER the sum of all the values that
consumers exchange for the benefits of having or using the product or service
Price= - ANSWER Sacrifice
Internal factors or pricing decisions - ANSWER marketing objectives, marketing
mix strategy, costs, organizational considerations
External factors of pricing decisions - ANSWER nature of the market and
demand, competition, other environmental factors (economy, resellers,
government)
low prices in hoping to increase demand - ANSWER Survival
choose the price that produces the maximum current profit - ANSWER Current
Profit Maximization
low as possible prices to become the market share leader - ANSWER Market
Share Leadership
,Product Quality Leadership - ANSWER High prices to cover higher
performance and R&D
Product Quality Leadership example - ANSWER pharmaceuticals
costs that do not vary with production or sales level. Executive Sales, Rent -
ANSWER Fixed costs (overhead)
costs that vary with the quantity of output produced. Raw materials - ANSWER
variable costs
fixed costs + variable costs - ANSWER Total Costs
Costs Determine _______ and Customers determine ________ - ANSWER
Floor, Ceiling
Many buyers and sellers have little effect on the price - ANSWER Pure
Competition
many buyers and sellers who trade over a range or prices - ANSWER
monopolistic competition
the only supplier of a unique product with no close substitutes - ANSWER pure
monopoly
, few sellers who are sensitive to each other's pricing/marketing strategies -
ANSWER oligopolistic competition
demand in which changes in price have little or no effect on the amount
demanded - ANSWER inelastic demand
A situation in which consumer demand is sensitive to changes in price -
ANSWER elastic demand
Marketers want to create an ___________ demand - ANSWER inelastic
Creating an inelastic demand makes - ANSWER -brands will not be perceived
as easily substitutable
-customers wont always seek the lowest price
-Price cuts wont be the accepted way to increase demand
setting a high price for a new product to skim maximum revenues layer by layer
from the segments willing to pay the high price; the company makes fewer but
more profitable sales - ANSWER Market-skimming pricing
Use this strategy pricing when:
-Products quality and image must support its higher price
-costs cant be so high that they cancel the advantage of charging more
-Competitors shouldn't be able to enter market easily and undercut the high price
- ANSWER Market skimming
Answers | New Update 2025
Price is the amount of money a customer pays for a product. T or F? - ANSWER
False
Marketers should see price as - ANSWER the sum of all the values that
consumers exchange for the benefits of having or using the product or service
Price= - ANSWER Sacrifice
Internal factors or pricing decisions - ANSWER marketing objectives, marketing
mix strategy, costs, organizational considerations
External factors of pricing decisions - ANSWER nature of the market and
demand, competition, other environmental factors (economy, resellers,
government)
low prices in hoping to increase demand - ANSWER Survival
choose the price that produces the maximum current profit - ANSWER Current
Profit Maximization
low as possible prices to become the market share leader - ANSWER Market
Share Leadership
,Product Quality Leadership - ANSWER High prices to cover higher
performance and R&D
Product Quality Leadership example - ANSWER pharmaceuticals
costs that do not vary with production or sales level. Executive Sales, Rent -
ANSWER Fixed costs (overhead)
costs that vary with the quantity of output produced. Raw materials - ANSWER
variable costs
fixed costs + variable costs - ANSWER Total Costs
Costs Determine _______ and Customers determine ________ - ANSWER
Floor, Ceiling
Many buyers and sellers have little effect on the price - ANSWER Pure
Competition
many buyers and sellers who trade over a range or prices - ANSWER
monopolistic competition
the only supplier of a unique product with no close substitutes - ANSWER pure
monopoly
, few sellers who are sensitive to each other's pricing/marketing strategies -
ANSWER oligopolistic competition
demand in which changes in price have little or no effect on the amount
demanded - ANSWER inelastic demand
A situation in which consumer demand is sensitive to changes in price -
ANSWER elastic demand
Marketers want to create an ___________ demand - ANSWER inelastic
Creating an inelastic demand makes - ANSWER -brands will not be perceived
as easily substitutable
-customers wont always seek the lowest price
-Price cuts wont be the accepted way to increase demand
setting a high price for a new product to skim maximum revenues layer by layer
from the segments willing to pay the high price; the company makes fewer but
more profitable sales - ANSWER Market-skimming pricing
Use this strategy pricing when:
-Products quality and image must support its higher price
-costs cant be so high that they cancel the advantage of charging more
-Competitors shouldn't be able to enter market easily and undercut the high price
- ANSWER Market skimming
