MKT 300 EXAM 3 MOMAN QUESTIONS AND ANSWERS
NEWEST RATED A+ 2025/2026 UPDATED NEW!!
Stages of Establishing Prices - CORRECT ANSWERS 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 ANSWERS Emphasizing price as an issue and matching or beating
competitors' prices
Non-price competition - CORRECT ANSWERS Emphasizing factors other than price to
distinguish a product from
competing brands
Pricing objectives - CORRECT ANSWERS Goals that describe what a firm wants to achieve
through pricing
Profit - CORRECT ANSWERS The objective of profit maximization is rarely operational because
its achievement is difficult to measure
Return on Investment - CORRECT ANSWERS Pricing to attain a specified rate of return on the
company's investment is a profit-related pricing objective.
Market share - CORRECT ANSWERS A product's sales in relation to total industry sales
Cash Flow - CORRECT ANSWERS The difference between cash coming in and cash going out of
a business
,Status Quo - CORRECT ANSWERS Maintaining a certain market share, meeting competitors'
prices, achieving price stability, or maintaining a favorable public image
Product Quality - CORRECT ANSWERS 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 ANSWERS A measure of the sensitivity of demand to
changes in price
Elastic Demand - CORRECT ANSWERS A situation in which consumer demand is sensitive to
changes in price
inelastic demand - CORRECT ANSWERS A situation in which an increase or a decrease in price
will not significantly affect demand for the product
Breakeven point - CORRECT ANSWERS The point at which the costs of producing a product
equal the revenue made from selling the product
Cost-based pricing - CORRECT ANSWERS Adding a dollar amount or percentage to the cost of
the product
Cost-plus pricing - CORRECT ANSWERS Adding a specified dollar amount or percentage to the
seller's cost
Markup pricing - CORRECT ANSWERS Adding to the cost of the product a predetermined
percentage of that cost
, Demand-based pricing - CORRECT ANSWERS Pricing based on the level of demand for the
product
Competition-based pricing - CORRECT ANSWERS Pricing influenced primarily by competitors'
prices
New-Product Pricing - CORRECT ANSWERS Charging the highest possible price that buyers who
most desire the product will pay
Penetration pricing - CORRECT ANSWERS Setting prices below those of competing brands to
penetrate a market and gain a significant market share quickly
Differential pricing - CORRECT ANSWERS Charging different prices to different buyers for the
same quality and quantity of product
Negotiated pricing - CORRECT ANSWERS Establishing a final price through bargaining between
seller and customer
Secondary-market pricing - CORRECT ANSWERS Setting one price for the primary target
market and a different price for another market
Periodic discounting - CORRECT ANSWERS Temporary reduction of prices on a patterned or
systematic basis
Random discounting - CORRECT ANSWERS Temporary reduction of prices on an unsystematic
basis
Psychological pricing - CORRECT ANSWERS Strategies that encourage purchases based on
consumers' emotional responses, rather than on economically rational ones
NEWEST RATED A+ 2025/2026 UPDATED NEW!!
Stages of Establishing Prices - CORRECT ANSWERS 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 ANSWERS Emphasizing price as an issue and matching or beating
competitors' prices
Non-price competition - CORRECT ANSWERS Emphasizing factors other than price to
distinguish a product from
competing brands
Pricing objectives - CORRECT ANSWERS Goals that describe what a firm wants to achieve
through pricing
Profit - CORRECT ANSWERS The objective of profit maximization is rarely operational because
its achievement is difficult to measure
Return on Investment - CORRECT ANSWERS Pricing to attain a specified rate of return on the
company's investment is a profit-related pricing objective.
Market share - CORRECT ANSWERS A product's sales in relation to total industry sales
Cash Flow - CORRECT ANSWERS The difference between cash coming in and cash going out of
a business
,Status Quo - CORRECT ANSWERS Maintaining a certain market share, meeting competitors'
prices, achieving price stability, or maintaining a favorable public image
Product Quality - CORRECT ANSWERS 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 ANSWERS A measure of the sensitivity of demand to
changes in price
Elastic Demand - CORRECT ANSWERS A situation in which consumer demand is sensitive to
changes in price
inelastic demand - CORRECT ANSWERS A situation in which an increase or a decrease in price
will not significantly affect demand for the product
Breakeven point - CORRECT ANSWERS The point at which the costs of producing a product
equal the revenue made from selling the product
Cost-based pricing - CORRECT ANSWERS Adding a dollar amount or percentage to the cost of
the product
Cost-plus pricing - CORRECT ANSWERS Adding a specified dollar amount or percentage to the
seller's cost
Markup pricing - CORRECT ANSWERS Adding to the cost of the product a predetermined
percentage of that cost
, Demand-based pricing - CORRECT ANSWERS Pricing based on the level of demand for the
product
Competition-based pricing - CORRECT ANSWERS Pricing influenced primarily by competitors'
prices
New-Product Pricing - CORRECT ANSWERS Charging the highest possible price that buyers who
most desire the product will pay
Penetration pricing - CORRECT ANSWERS Setting prices below those of competing brands to
penetrate a market and gain a significant market share quickly
Differential pricing - CORRECT ANSWERS Charging different prices to different buyers for the
same quality and quantity of product
Negotiated pricing - CORRECT ANSWERS Establishing a final price through bargaining between
seller and customer
Secondary-market pricing - CORRECT ANSWERS Setting one price for the primary target
market and a different price for another market
Periodic discounting - CORRECT ANSWERS Temporary reduction of prices on a patterned or
systematic basis
Random discounting - CORRECT ANSWERS Temporary reduction of prices on an unsystematic
basis
Psychological pricing - CORRECT ANSWERS Strategies that encourage purchases based on
consumers' emotional responses, rather than on economically rational ones
