MKT 300 Exam 3 Moman with correct
answers graded A+
Stages of Establishing Prices - CORRECT ANSWER ✔✔Development of pricing objectives
Assessment of target market's evaluation of price
Determination of demand
Analysis of demand, cost, and profit relationship
Price competition - CORRECT ANSWER ✔✔Emphasizing price as an issue and matching or
beating competitors' prices
Non-price competition - CORRECT ANSWER ✔✔Emphasizing factors other than price to
distinguish a product from
competing brands
Pricing objectives - CORRECT ANSWER ✔✔Goals that describe what a firm wants to achieve
through pricing
Profit - CORRECT ANSWER ✔✔The objective of profit maximization is rarely operational because
its achievement is difficult to measure
Return on Investment - CORRECT ANSWER ✔✔Pricing to attain a specified rate of return on the
company's investment is a profit-related pricing objective.
Market share - CORRECT ANSWER ✔✔A product's sales in relation to total industry sales
,Cash Flow - CORRECT ANSWER ✔✔The difference between cash coming in and cash going out
of a business
Status Quo - CORRECT ANSWER ✔✔Maintaining a certain market share, meeting competitors'
prices, achieving price stability, or maintaining a favorable public image
Product Quality - CORRECT ANSWER ✔✔Attaining a high level of product quality is generally
more expensive for the firm, as the costs of materials, research, and development may be
greater
Price elasticity of demand - CORRECT ANSWER ✔✔A measure of the sensitivity of demand to
changes in price
Elastic Demand - CORRECT ANSWER ✔✔A situation in which consumer demand is sensitive to
changes in price
inelastic demand - CORRECT ANSWER ✔✔A situation in which an increase or a decrease in price
will not significantly affect demand for the product
Breakeven point - CORRECT ANSWER ✔✔The point at which the costs of producing a product
equal the revenue made from selling the product
Cost-based pricing - CORRECT ANSWER ✔✔Adding a dollar amount or percentage to the cost of
the product
Cost-plus pricing - CORRECT ANSWER ✔✔Adding a specified dollar amount or percentage to the
seller's cost
Markup pricing - CORRECT ANSWER ✔✔Adding to the cost of the product a predetermined
percentage of that cost
, Demand-based pricing - CORRECT ANSWER ✔✔Pricing based on the level of demand for the
product
Competition-based pricing - CORRECT ANSWER ✔✔Pricing influenced primarily by competitors'
prices
New-Product Pricing - CORRECT ANSWER ✔✔Charging the highest possible price that buyers
who most desire the product will pay
Penetration pricing - CORRECT ANSWER ✔✔Setting prices below those of competing brands to
penetrate a market and gain a significant market share quickly
Differential pricing - CORRECT ANSWER ✔✔Charging different prices to different buyers for the
same quality and quantity of product
Negotiated pricing - CORRECT ANSWER ✔✔Establishing a final price through bargaining
between seller and customer
Secondary-market pricing - CORRECT ANSWER ✔✔Setting one price for the primary target
market and a different price for another market
Periodic discounting - CORRECT ANSWER ✔✔Temporary reduction of prices on a patterned or
systematic basis
Random discounting - CORRECT ANSWER ✔✔Temporary reduction of prices on an unsystematic
basis
answers graded A+
Stages of Establishing Prices - CORRECT ANSWER ✔✔Development of pricing objectives
Assessment of target market's evaluation of price
Determination of demand
Analysis of demand, cost, and profit relationship
Price competition - CORRECT ANSWER ✔✔Emphasizing price as an issue and matching or
beating competitors' prices
Non-price competition - CORRECT ANSWER ✔✔Emphasizing factors other than price to
distinguish a product from
competing brands
Pricing objectives - CORRECT ANSWER ✔✔Goals that describe what a firm wants to achieve
through pricing
Profit - CORRECT ANSWER ✔✔The objective of profit maximization is rarely operational because
its achievement is difficult to measure
Return on Investment - CORRECT ANSWER ✔✔Pricing to attain a specified rate of return on the
company's investment is a profit-related pricing objective.
Market share - CORRECT ANSWER ✔✔A product's sales in relation to total industry sales
,Cash Flow - CORRECT ANSWER ✔✔The difference between cash coming in and cash going out
of a business
Status Quo - CORRECT ANSWER ✔✔Maintaining a certain market share, meeting competitors'
prices, achieving price stability, or maintaining a favorable public image
Product Quality - CORRECT ANSWER ✔✔Attaining a high level of product quality is generally
more expensive for the firm, as the costs of materials, research, and development may be
greater
Price elasticity of demand - CORRECT ANSWER ✔✔A measure of the sensitivity of demand to
changes in price
Elastic Demand - CORRECT ANSWER ✔✔A situation in which consumer demand is sensitive to
changes in price
inelastic demand - CORRECT ANSWER ✔✔A situation in which an increase or a decrease in price
will not significantly affect demand for the product
Breakeven point - CORRECT ANSWER ✔✔The point at which the costs of producing a product
equal the revenue made from selling the product
Cost-based pricing - CORRECT ANSWER ✔✔Adding a dollar amount or percentage to the cost of
the product
Cost-plus pricing - CORRECT ANSWER ✔✔Adding a specified dollar amount or percentage to the
seller's cost
Markup pricing - CORRECT ANSWER ✔✔Adding to the cost of the product a predetermined
percentage of that cost
, Demand-based pricing - CORRECT ANSWER ✔✔Pricing based on the level of demand for the
product
Competition-based pricing - CORRECT ANSWER ✔✔Pricing influenced primarily by competitors'
prices
New-Product Pricing - CORRECT ANSWER ✔✔Charging the highest possible price that buyers
who most desire the product will pay
Penetration pricing - CORRECT ANSWER ✔✔Setting prices below those of competing brands to
penetrate a market and gain a significant market share quickly
Differential pricing - CORRECT ANSWER ✔✔Charging different prices to different buyers for the
same quality and quantity of product
Negotiated pricing - CORRECT ANSWER ✔✔Establishing a final price through bargaining
between seller and customer
Secondary-market pricing - CORRECT ANSWER ✔✔Setting one price for the primary target
market and a different price for another market
Periodic discounting - CORRECT ANSWER ✔✔Temporary reduction of prices on a patterned or
systematic basis
Random discounting - CORRECT ANSWER ✔✔Temporary reduction of prices on an unsystematic
basis
