BUAD 332 Exam 3 Study Question and Verified Correct Answers

BUAD 332 Exam 3 Study Question and Verified Correct Answers Narrowly, what is a price? - Correct Answer Narrowly, price is the amount of money charged for a product or service Broadly, what is a price? - Correct Answer Broadly, price is the sum of all values that consumers exchange for the benefits of having or using the product or service Price is not just money, think of price as - Correct Answer sacrifice Example of price - Correct Answer $88 boots from amazon versus exact same pair at Dillards for $88 as well. The price here is wait-time, trying them on, or convenience. The "lower price" depends on customer value Internal factors affecting price decisions - Correct Answer Marketing objectives Marketing mix strategies Costs Organizational considerations External factors affecting price decisions - Correct Answer Nature of the market and demand Competition Other environmental factors (economy, government, re-sellers, social concerns) In general, factors affection price decisions represent - Correct Answer either a limitation or "wiggle room" Marketing objectives affecting pricing decisions - Correct Answer 1. Survival 2. Current Profit Maximization 3. Market Share Leadership 4. Product Quality Leadership Survival - Correct Answer Low prices hoping to increase demand Current Profit Maximization - Correct Answer Choose the price that produces the maximum current profit Market Share Leadership - Corre