GB 350 Exam 4 Ole Miss Cascio
Questions and Answers
price reasonable perceptions - ANSWER--"reasonable price" means "perceived
reasonable value" at the time of the transaction
-more consumers saying now is not a good time to buy or sell a home; nothing new
under $200k
profit oriented - ANSWER-a. Profit maximization- Lululemon
b. Satisfactory profits - Old Navy
c. Return on investment (ROI)
20-30% general rule of thumb
sales oriented - ANSWER-d. market share - UPS simple rate
e. sales maximization- wait until to buy vehicle at the end of year
status quo - ANSWER-f. price matching - coastal contact lenses
e. maintain existing prices
elasticity of demand - ANSWER-consumers' responsiveness or sensitivity to
changes in price
American Express - ANSWER--price goes down
-revenue goes up
-demand is elastic
dynamic pricing - ANSWER-adjusts prices in a real-time to balance changes in
demand, supply, and competitor pricing actions
-allows sellers to price in a competitive manner
-stimulate purchases when demand is low and supply is high
-maximize profits when demand is high and supply is low
-match or beat competitor prices
Ex: StubHub concert tickets, pricing assistant tools, adjust seller prices based on
competing prices
variable cost - ANSWER-cost that varies with changes in the level of output
Ex: Cocoa prices, encourage farmers to pay workers fair wages
fixed cost - ANSWER-cost that does not change as output is increased or decreased
break-even prices - ANSWER-price at which fixed and variable costs = revenues
Questions and Answers
price reasonable perceptions - ANSWER--"reasonable price" means "perceived
reasonable value" at the time of the transaction
-more consumers saying now is not a good time to buy or sell a home; nothing new
under $200k
profit oriented - ANSWER-a. Profit maximization- Lululemon
b. Satisfactory profits - Old Navy
c. Return on investment (ROI)
20-30% general rule of thumb
sales oriented - ANSWER-d. market share - UPS simple rate
e. sales maximization- wait until to buy vehicle at the end of year
status quo - ANSWER-f. price matching - coastal contact lenses
e. maintain existing prices
elasticity of demand - ANSWER-consumers' responsiveness or sensitivity to
changes in price
American Express - ANSWER--price goes down
-revenue goes up
-demand is elastic
dynamic pricing - ANSWER-adjusts prices in a real-time to balance changes in
demand, supply, and competitor pricing actions
-allows sellers to price in a competitive manner
-stimulate purchases when demand is low and supply is high
-maximize profits when demand is high and supply is low
-match or beat competitor prices
Ex: StubHub concert tickets, pricing assistant tools, adjust seller prices based on
competing prices
variable cost - ANSWER-cost that varies with changes in the level of output
Ex: Cocoa prices, encourage farmers to pay workers fair wages
fixed cost - ANSWER-cost that does not change as output is increased or decreased
break-even prices - ANSWER-price at which fixed and variable costs = revenues
