BUAD 332
BUAD 332 Exam 3 Study Questions and Answers 2025
What is the narrow definition of a Price? -Correct Answer ✔price is the amount of
money charged for a product or service
What is the broad definition of a Price? -Correct Answer ✔price is the sum of all the
values that consumers exchange for the benefits of having or using the product or
service
What is an example of 2 things costing the same and not having the same price? -
Correct Answer ✔Clark boots from Amazon vs. from Dillard's
What are the 4 Internal Factors that affect the Pricing Decisions? -Correct Answer
✔Marketing objectives, Marketing mix strategies, Costs, Organizational considerations
What are the 3 External Factors that affect the Pricing Decisions? -Correct Answer
✔Nature of the market and demand, Competition, Other environmental factors
(economy, government, resellers, social concerns)
What are the 4 Marketing Objectives? -Correct Answer ✔Survival, Current Profit
Maximization, Market Share Leadership, Product Quality Leadership
Marketing Object about Low prices hoping to increase demand -Correct Answer
✔Survival
Marketing Objective about Chose the price that produces the maximum current profit -
Correct Answer ✔Current Profit Maximization
BUAD 332
,BUAD 332
Marketing Objective about low as possible prices to become the market share leader -
Correct Answer ✔Market Share Leadership
Marketing Objective about high prices to cover higher performance quality and R&D -
Correct Answer ✔Product Quality Leadership
What is an example of Product Quality Leadership? -Correct Answer ✔Pharmaceuticals
Costs that don't
vary with sales or
production levels -Correct Answer ✔Fixed Costs
Costs that do vary
directly with the
level of production -Correct Answer ✔Variable Costs
_______ determines the price floor, _______ determines the price ceiling -Correct
Answer ✔Cost; customers
What are the 3 External Factors Affecting Pricing Decisions -Correct Answer ✔1. Markets
and Demand, 2. Competitor's Costs, Prices, and Offers, and Other External Factors
(Economic Conditions, Reseller Reactions, Government Actions, and Social Concerns)
Pricing Decision from Many Buyers and Sellers Who Have Little Effect on the Price -
Correct Answer ✔Pure Competition
What is an example of Pure Competition? -Correct Answer ✔Wheat
BUAD 332
, BUAD 332
Pricing Decision from Many Buyers and Sellers Who Trade Over a Range of Prices -
Correct Answer ✔Monopolistic Competition
What is an example of Monopolistic Competition? -Correct Answer ✔Clothing
Pricing Decision from Few Sellers Who Are Sensitive to Each Other's Pricing/ Marketing
Strategies -Correct Answer ✔Oligopolistic Competition
What is an example of Oligopolistic Competition? -Correct Answer ✔Airline industry, cell
phone provider
Pricing Decision from a Single Seller -Correct Answer ✔Pure Monopoly
What is an example of a Pure Monopoly? -Correct Answer ✔Utilities companies, some
say pharmaceutical companies
Demand that if you raise price, the demand does not change very much -Correct Answer
✔Inelastic
Demand that if price changes, there is a big difference in demand -Correct Answer
✔Elastic
What do marketers want to do regarding price elasticity? -Correct Answer ✔Reduce it
Setting a High Price for a New Product to Skim Maximum Revenues from the Target
Market; Results in Fewer, But More Profitable Sales. -Correct Answer ✔Market Skimming
BUAD 332
BUAD 332 Exam 3 Study Questions and Answers 2025
What is the narrow definition of a Price? -Correct Answer ✔price is the amount of
money charged for a product or service
What is the broad definition of a Price? -Correct Answer ✔price is the sum of all the
values that consumers exchange for the benefits of having or using the product or
service
What is an example of 2 things costing the same and not having the same price? -
Correct Answer ✔Clark boots from Amazon vs. from Dillard's
What are the 4 Internal Factors that affect the Pricing Decisions? -Correct Answer
✔Marketing objectives, Marketing mix strategies, Costs, Organizational considerations
What are the 3 External Factors that affect the Pricing Decisions? -Correct Answer
✔Nature of the market and demand, Competition, Other environmental factors
(economy, government, resellers, social concerns)
What are the 4 Marketing Objectives? -Correct Answer ✔Survival, Current Profit
Maximization, Market Share Leadership, Product Quality Leadership
Marketing Object about Low prices hoping to increase demand -Correct Answer
✔Survival
Marketing Objective about Chose the price that produces the maximum current profit -
Correct Answer ✔Current Profit Maximization
BUAD 332
,BUAD 332
Marketing Objective about low as possible prices to become the market share leader -
Correct Answer ✔Market Share Leadership
Marketing Objective about high prices to cover higher performance quality and R&D -
Correct Answer ✔Product Quality Leadership
What is an example of Product Quality Leadership? -Correct Answer ✔Pharmaceuticals
Costs that don't
vary with sales or
production levels -Correct Answer ✔Fixed Costs
Costs that do vary
directly with the
level of production -Correct Answer ✔Variable Costs
_______ determines the price floor, _______ determines the price ceiling -Correct
Answer ✔Cost; customers
What are the 3 External Factors Affecting Pricing Decisions -Correct Answer ✔1. Markets
and Demand, 2. Competitor's Costs, Prices, and Offers, and Other External Factors
(Economic Conditions, Reseller Reactions, Government Actions, and Social Concerns)
Pricing Decision from Many Buyers and Sellers Who Have Little Effect on the Price -
Correct Answer ✔Pure Competition
What is an example of Pure Competition? -Correct Answer ✔Wheat
BUAD 332
, BUAD 332
Pricing Decision from Many Buyers and Sellers Who Trade Over a Range of Prices -
Correct Answer ✔Monopolistic Competition
What is an example of Monopolistic Competition? -Correct Answer ✔Clothing
Pricing Decision from Few Sellers Who Are Sensitive to Each Other's Pricing/ Marketing
Strategies -Correct Answer ✔Oligopolistic Competition
What is an example of Oligopolistic Competition? -Correct Answer ✔Airline industry, cell
phone provider
Pricing Decision from a Single Seller -Correct Answer ✔Pure Monopoly
What is an example of a Pure Monopoly? -Correct Answer ✔Utilities companies, some
say pharmaceutical companies
Demand that if you raise price, the demand does not change very much -Correct Answer
✔Inelastic
Demand that if price changes, there is a big difference in demand -Correct Answer
✔Elastic
What do marketers want to do regarding price elasticity? -Correct Answer ✔Reduce it
Setting a High Price for a New Product to Skim Maximum Revenues from the Target
Market; Results in Fewer, But More Profitable Sales. -Correct Answer ✔Market Skimming
BUAD 332
