MKT 300 Questions and answers well
graded and answered
Price - ANS✅✅Value you exchange for the benefits of having or using the product/service
Marketing Objectives (4) - ANS✅✅- Maximize Profit
- Gain Market Share
- Infer a level of quality
- To Survive
Internal factors that affect pricing decisions (3) - ANS✅✅- Marketing Objectives
- Marketing Mix Strategy
- Costs
External factors that affect pricing decision (3) - ANS✅✅- Demand
- Competition
- Economy
Price Elasticity - ANS✅✅Tells us how much the demand for a product will change with a change in
price
Price Elasticity Equation - ANS✅✅e = % Change in quantity demanded / % Change in price
Price Elasticity Types (3) - ANS✅✅- Elastic
- Inelastic
- Unitary Elasticity
Elastic Demand - ANS✅✅Consumers buy more or less of a product when the price changes
E is >1
, Type of product that would have elastic demand - ANS✅✅Products that are price sensitive and
have many substitutes
Inelastic Demand - ANS✅✅An increase/decrease in price will not significantly affect demand
E is <1
Type of product that would have inelastic demand - ANS✅✅Less price-sensitive and have few
substitutes
Unitary Elastic Demand - ANS✅✅An increase in sales exactly offsets a decrease in prices &
revenue is unchanged
E is = to 1
6 Stages for establishing prices - ANS✅✅1. Develop Pricing Objectives
2. Assess Target Markets Evaluation of Price
3. Evaluate Competitors' Prices
4. Select a Basis for Pricing
5. Select a Pricing Strategy
6. Determine a Specific Price
Pricing Objectives (3) - ANS✅✅Profit
Status Quo
Market Share
Profit Pricing Objective - ANS✅✅- Identify price and cost levels that allow the firm to maximize
profit per product
Status Quo Pricing Objective - ANS✅✅- Identify price levels similar to competitor average price
graded and answered
Price - ANS✅✅Value you exchange for the benefits of having or using the product/service
Marketing Objectives (4) - ANS✅✅- Maximize Profit
- Gain Market Share
- Infer a level of quality
- To Survive
Internal factors that affect pricing decisions (3) - ANS✅✅- Marketing Objectives
- Marketing Mix Strategy
- Costs
External factors that affect pricing decision (3) - ANS✅✅- Demand
- Competition
- Economy
Price Elasticity - ANS✅✅Tells us how much the demand for a product will change with a change in
price
Price Elasticity Equation - ANS✅✅e = % Change in quantity demanded / % Change in price
Price Elasticity Types (3) - ANS✅✅- Elastic
- Inelastic
- Unitary Elasticity
Elastic Demand - ANS✅✅Consumers buy more or less of a product when the price changes
E is >1
, Type of product that would have elastic demand - ANS✅✅Products that are price sensitive and
have many substitutes
Inelastic Demand - ANS✅✅An increase/decrease in price will not significantly affect demand
E is <1
Type of product that would have inelastic demand - ANS✅✅Less price-sensitive and have few
substitutes
Unitary Elastic Demand - ANS✅✅An increase in sales exactly offsets a decrease in prices &
revenue is unchanged
E is = to 1
6 Stages for establishing prices - ANS✅✅1. Develop Pricing Objectives
2. Assess Target Markets Evaluation of Price
3. Evaluate Competitors' Prices
4. Select a Basis for Pricing
5. Select a Pricing Strategy
6. Determine a Specific Price
Pricing Objectives (3) - ANS✅✅Profit
Status Quo
Market Share
Profit Pricing Objective - ANS✅✅- Identify price and cost levels that allow the firm to maximize
profit per product
Status Quo Pricing Objective - ANS✅✅- Identify price levels similar to competitor average price
