MKT 300 ASU EATON EXAM 1 STUDY GUIDE
WITH SOLUTIONS 2026
◉ Market Pricing. Answer: 1. Selling Price = $1,800, Cost = $600.
What is markup %?
2. Cost = $100, markup % = 75%. What is selling price?
3. Selling Price = $300, markup % = 33.3%. What is cost?
1. 66.7% (cost is 1/3, so markup% must be 2/3)
2. $400 (3/4 of the selling price is markup, ¼ is cost)
3. $200 (cost must be 2/3 of $300 selling price)
◉ Break-Even Pricing. Answer: Total Fixed Costs / (Selling price -
Variable cost)
◉ Everyday Low Prices. Answer: Settling a low price for products on
a consistent basis
◉ Reference pricing (Selling against the Brand). Answer: Pricing a
product at a moderate level and positioning it next to a more
expensive model or brand
,Retailers sometimes add higher-priced items to extend the range of
product price alternatives
◉ Portfolio Pricing. Answer: Different levels of price points across a
product category where consumers are willing to pay more for
extras
◉ Price bundling. Answer: Packaging together two or more
complementary products and selling them for a single price
◉ Captive-product pricing. Answer: Captive products are items
designed specifically for use with another product (many are
necessary for the core product to function properly)
◉ Multiple-unit pricing. Answer: Packaging together two or more
identical products and selling them for a single price
◉ Single-price. Answer: all customers are charged the same price for
all the goods and services offered for sale within that product
category
◉ Bait pricing. Answer: Illegal practice of advertising unrealistically
low prices to bring customers into the store
, ◉ Leader pricing (loss-leader pricing). Answer: products priced
below the usual markup, near cost, or below cost
◉ If price goes up for one product and the sales of a second product
go up, are these substitutes or complements?. Answer: Substitutes
◉ Marketing Channel. Answer: A group of individuals and
organizations directing the flow of products from producers to
customers
◉ Channel Strategies. Answer: Intensity of Distribution
-Intensive: Uses all available outlets to distribute a product
-Selective: Uses only some available outlets to distribute a product,
several not everywhere.
-Exclusive: Uses a single outlet in a fairly large geographic area to
distribute a product
Channel Choice Factors
-Product factors
-Producer factors
-Market factors
◉ Modes of Transportation. Answer:
WITH SOLUTIONS 2026
◉ Market Pricing. Answer: 1. Selling Price = $1,800, Cost = $600.
What is markup %?
2. Cost = $100, markup % = 75%. What is selling price?
3. Selling Price = $300, markup % = 33.3%. What is cost?
1. 66.7% (cost is 1/3, so markup% must be 2/3)
2. $400 (3/4 of the selling price is markup, ¼ is cost)
3. $200 (cost must be 2/3 of $300 selling price)
◉ Break-Even Pricing. Answer: Total Fixed Costs / (Selling price -
Variable cost)
◉ Everyday Low Prices. Answer: Settling a low price for products on
a consistent basis
◉ Reference pricing (Selling against the Brand). Answer: Pricing a
product at a moderate level and positioning it next to a more
expensive model or brand
,Retailers sometimes add higher-priced items to extend the range of
product price alternatives
◉ Portfolio Pricing. Answer: Different levels of price points across a
product category where consumers are willing to pay more for
extras
◉ Price bundling. Answer: Packaging together two or more
complementary products and selling them for a single price
◉ Captive-product pricing. Answer: Captive products are items
designed specifically for use with another product (many are
necessary for the core product to function properly)
◉ Multiple-unit pricing. Answer: Packaging together two or more
identical products and selling them for a single price
◉ Single-price. Answer: all customers are charged the same price for
all the goods and services offered for sale within that product
category
◉ Bait pricing. Answer: Illegal practice of advertising unrealistically
low prices to bring customers into the store
, ◉ Leader pricing (loss-leader pricing). Answer: products priced
below the usual markup, near cost, or below cost
◉ If price goes up for one product and the sales of a second product
go up, are these substitutes or complements?. Answer: Substitutes
◉ Marketing Channel. Answer: A group of individuals and
organizations directing the flow of products from producers to
customers
◉ Channel Strategies. Answer: Intensity of Distribution
-Intensive: Uses all available outlets to distribute a product
-Selective: Uses only some available outlets to distribute a product,
several not everywhere.
-Exclusive: Uses a single outlet in a fairly large geographic area to
distribute a product
Channel Choice Factors
-Product factors
-Producer factors
-Market factors
◉ Modes of Transportation. Answer:
