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MARKETING 3000 (ACTUAL 2025/2026) JOEL POOR
EXAM 3 (GRADED) A+MARKETING 3000 (ACTUAL
2025/2026) JOEL POOR EXAM 3 (GRADED) A+
Discount And Allowance Pricing - (answers)Adjustment Strategy where companies
adjust their prices in order to reward customers (examples: early payment of bills,
volume purchases, off-season buying)
Cash Discount - (answers)price reduction to those who pay in cash
Quantity Discount - (answers)Price reduction to buyers who buy large volume
Noncumulative quantity - (answers)given for a single purchase (Buy One Get One
Free)
Cumulative quantity discount - (answers)Discount is given over a number of
purchases (Get 9 hair cuts get the 10th free)
Functional Discount (AKA Trade Discount) - (answers)Offer given by the seller to
trade-channel members who perform certain functions (selling storing,
bookkeeping)
Seasonal Discount - (answers)Discount to buyers who buy merchandise out of
season
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Trade-in-allowance - (answers)Price reduction given for turning in an old item
(phone, car)
Promotional Allowances - (answers)payments or price reductions to reward
dealers for participating in advertising and sales support programs
Segmented/ Discriminatory Pricing - (answers)Companies adjust prices to allow
for differences in customers, products, and locations
Customer Segment Prices - (answers)Different customers may pay different prices
(Example: cars)
Product Form Pricing - (answers)Different versions of the product are priced
differently (not variable to actual costs)
Location Pricing - (answers)Charges different prices for different locations
Time Pricing - (answers)Price Varies based on time (season, month, day, time)
In order to use segmented pricing... - (answers)1. Market Must Be segment-able
2. Segments must show different degrees of demand
3. Cost of segmenting and watching the market cannot exceed extra revenue
obtained by price difference
4. Must be legal
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Psychological Pricing - (answers)consider psychology of pricing not only
economics (types reference pricing )
Reference pricing - (answers)Prices that buyers hold in their mind and what they
refer to when looking at a given product (what you think the price is based on
past prices)
Department store retailers mark-up prices and then offer discounted sales prices
(50% off) - (answers)Anchoring and Adjustment
Odd Pricing - (answers)practice of using prices like $.99 $19.95 $99.99
(May also use Even prices like Nordstrom)
Promotional Pricing - (answers)Companies will temporarily mark their products
below list price or cost in order to creating buying excitement and urgency (Black
Friday)
Loss Leaders - (answers)products priced below cost
Special Event Pricing - (answers)Type of promotional pricing where prices vary in
certain seasons (Back to school sale)
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Low interest Finance - (answers)type of Promotional pricing where manufactures
may offer longer warranties, free maintenance in order to reduce the consumers
price
Industry Price Wars - (answers)Caused by frequent use of Promotional tools
which result in few market leaders dominate market and constantly compete
against each other
Geographical Pricing - (answers)Different Pricing for different part of country or
world
FOB-origin pricing - (answers)practice that means goods are placed free on board
(producer pays for shipping)
Uniform Delivery Pricing - (answers)Company charges the same price plus freight
to all customers regardless of location
Zone Pricing - (answers)Company sets up two or more zones and bases their
pricing on what zone the purchaser is in
Basing Point Pricing - (answers)Seller selects a specific city and charges all
customers the freight cost from that city to the customers location
Freight absorption pricing - (answers)Seller absorbs all or part of the actual freight
charges in order to get the desired business
MARKETING 3000 (ACTUAL 2025/2026) JOEL POOR
EXAM 3 (GRADED) A+MARKETING 3000 (ACTUAL
2025/2026) JOEL POOR EXAM 3 (GRADED) A+
Discount And Allowance Pricing - (answers)Adjustment Strategy where companies
adjust their prices in order to reward customers (examples: early payment of bills,
volume purchases, off-season buying)
Cash Discount - (answers)price reduction to those who pay in cash
Quantity Discount - (answers)Price reduction to buyers who buy large volume
Noncumulative quantity - (answers)given for a single purchase (Buy One Get One
Free)
Cumulative quantity discount - (answers)Discount is given over a number of
purchases (Get 9 hair cuts get the 10th free)
Functional Discount (AKA Trade Discount) - (answers)Offer given by the seller to
trade-channel members who perform certain functions (selling storing,
bookkeeping)
Seasonal Discount - (answers)Discount to buyers who buy merchandise out of
season
,2|Page
Trade-in-allowance - (answers)Price reduction given for turning in an old item
(phone, car)
Promotional Allowances - (answers)payments or price reductions to reward
dealers for participating in advertising and sales support programs
Segmented/ Discriminatory Pricing - (answers)Companies adjust prices to allow
for differences in customers, products, and locations
Customer Segment Prices - (answers)Different customers may pay different prices
(Example: cars)
Product Form Pricing - (answers)Different versions of the product are priced
differently (not variable to actual costs)
Location Pricing - (answers)Charges different prices for different locations
Time Pricing - (answers)Price Varies based on time (season, month, day, time)
In order to use segmented pricing... - (answers)1. Market Must Be segment-able
2. Segments must show different degrees of demand
3. Cost of segmenting and watching the market cannot exceed extra revenue
obtained by price difference
4. Must be legal
,3|Page
Psychological Pricing - (answers)consider psychology of pricing not only
economics (types reference pricing )
Reference pricing - (answers)Prices that buyers hold in their mind and what they
refer to when looking at a given product (what you think the price is based on
past prices)
Department store retailers mark-up prices and then offer discounted sales prices
(50% off) - (answers)Anchoring and Adjustment
Odd Pricing - (answers)practice of using prices like $.99 $19.95 $99.99
(May also use Even prices like Nordstrom)
Promotional Pricing - (answers)Companies will temporarily mark their products
below list price or cost in order to creating buying excitement and urgency (Black
Friday)
Loss Leaders - (answers)products priced below cost
Special Event Pricing - (answers)Type of promotional pricing where prices vary in
certain seasons (Back to school sale)
, 4|Page
Low interest Finance - (answers)type of Promotional pricing where manufactures
may offer longer warranties, free maintenance in order to reduce the consumers
price
Industry Price Wars - (answers)Caused by frequent use of Promotional tools
which result in few market leaders dominate market and constantly compete
against each other
Geographical Pricing - (answers)Different Pricing for different part of country or
world
FOB-origin pricing - (answers)practice that means goods are placed free on board
(producer pays for shipping)
Uniform Delivery Pricing - (answers)Company charges the same price plus freight
to all customers regardless of location
Zone Pricing - (answers)Company sets up two or more zones and bases their
pricing on what zone the purchaser is in
Basing Point Pricing - (answers)Seller selects a specific city and charges all
customers the freight cost from that city to the customers location
Freight absorption pricing - (answers)Seller absorbs all or part of the actual freight
charges in order to get the desired business
