MKT 300 Exam questions with
answers well graded A+
Stages of Establishing Prices - ANS✅✅Development of pricing objectives
Assessment of target market's evaluation of price
Determination of demand
Analysis of demand, cost, and profit relationship
Price competition - ANS✅✅Emphasizing price as an issue and matching or beating competitors'
prices
Non-price competition - ANS✅✅Emphasizing factors other than price to distinguish a product
from
competing brands
Pricing objectives - ANS✅✅Goals that describe what a firm wants to achieve through pricing
Profit - ANS✅✅The objective of profit maximization is rarely operational because its achievement
is difficult to measure
Return on Investment - ANS✅✅Pricing to attain a specified rate of return on the company's
investment is a profit-related pricing objective.
Market share - ANS✅✅A product's sales in relation to total industry sales
Cash Flow - ANS✅✅The difference between cash coming in and cash going out of a business
Status Quo - ANS✅✅Maintaining a certain market share, meeting competitors' prices, achieving
price stability, or maintaining a favorable public image
Product Quality - ANS✅✅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 - ANS✅✅A measure of the sensitivity of demand to changes in price
Elastic Demand - ANS✅✅A situation in which consumer demand is sensitive to changes in price
inelastic demand - ANS✅✅A situation in which an increase or a decrease in price will not
significantly affect demand for the product
Breakeven point - ANS✅✅The point at which the costs of producing a product equal the revenue
made from selling the product
Cost-based pricing - ANS✅✅Adding a dollar amount or percentage to the cost of the product
Cost-plus pricing - ANS✅✅Adding a specified dollar amount or percentage to the seller's cost
Markup pricing - ANS✅✅Adding to the cost of the product a predetermined percentage of that
cost
Demand-based pricing - ANS✅✅Pricing based on the level of demand for the product
Competition-based pricing - ANS✅✅Pricing influenced primarily by competitors' prices
New-Product Pricing - ANS✅✅Charging the highest possible price that buyers who most desire the
product will pay
Penetration pricing - ANS✅✅Setting prices below those of competing brands to penetrate a
market and gain a significant market share quickly
Differential pricing - ANS✅✅Charging different prices to different buyers for the same quality and
quantity of product
Negotiated pricing - ANS✅✅Establishing a final price through bargaining between seller and
customer
, Secondary-market pricing - ANS✅✅Setting one price for the primary target market and a different
price for another market
Periodic discounting - ANS✅✅Temporary reduction of prices on a patterned or systematic basis
Random discounting - ANS✅✅Temporary reduction of prices on an unsystematic basis
Psychological pricing - ANS✅✅Strategies that encourage purchases based on consumers'
emotional responses, rather than on economically rational ones
Odd-number pricing - ANS✅✅The strategy of setting prices using odd numbers that are slightly
below whole-dollar amounts
Multiple-unit pricing - ANS✅✅The strategy of setting a single price for two or more units
Reference pricing - ANS✅✅Pricing a product at a moderate level and positioning it next to a more
expensive model or brand
Bundle pricing - ANS✅✅Packaging together two or more complementary products and selling
them for a single price
Everyday low prices - ANS✅✅Setting a low price for products on a consistent basis
Customary pricing - ANS✅✅Pricing on the basis of tradition
Captive pricing - ANS✅✅Pricing the basic product in a product line low, but pricing related items at
a higher level
Premium pricing - ANS✅✅Pricing the highest-quality or most versatile products higher than other
models in the product line
Price lining - ANS✅✅The strategy of selling goods only at certain predetermined prices that reflect
definite price breaks
answers well graded A+
Stages of Establishing Prices - ANS✅✅Development of pricing objectives
Assessment of target market's evaluation of price
Determination of demand
Analysis of demand, cost, and profit relationship
Price competition - ANS✅✅Emphasizing price as an issue and matching or beating competitors'
prices
Non-price competition - ANS✅✅Emphasizing factors other than price to distinguish a product
from
competing brands
Pricing objectives - ANS✅✅Goals that describe what a firm wants to achieve through pricing
Profit - ANS✅✅The objective of profit maximization is rarely operational because its achievement
is difficult to measure
Return on Investment - ANS✅✅Pricing to attain a specified rate of return on the company's
investment is a profit-related pricing objective.
Market share - ANS✅✅A product's sales in relation to total industry sales
Cash Flow - ANS✅✅The difference between cash coming in and cash going out of a business
Status Quo - ANS✅✅Maintaining a certain market share, meeting competitors' prices, achieving
price stability, or maintaining a favorable public image
Product Quality - ANS✅✅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 - ANS✅✅A measure of the sensitivity of demand to changes in price
Elastic Demand - ANS✅✅A situation in which consumer demand is sensitive to changes in price
inelastic demand - ANS✅✅A situation in which an increase or a decrease in price will not
significantly affect demand for the product
Breakeven point - ANS✅✅The point at which the costs of producing a product equal the revenue
made from selling the product
Cost-based pricing - ANS✅✅Adding a dollar amount or percentage to the cost of the product
Cost-plus pricing - ANS✅✅Adding a specified dollar amount or percentage to the seller's cost
Markup pricing - ANS✅✅Adding to the cost of the product a predetermined percentage of that
cost
Demand-based pricing - ANS✅✅Pricing based on the level of demand for the product
Competition-based pricing - ANS✅✅Pricing influenced primarily by competitors' prices
New-Product Pricing - ANS✅✅Charging the highest possible price that buyers who most desire the
product will pay
Penetration pricing - ANS✅✅Setting prices below those of competing brands to penetrate a
market and gain a significant market share quickly
Differential pricing - ANS✅✅Charging different prices to different buyers for the same quality and
quantity of product
Negotiated pricing - ANS✅✅Establishing a final price through bargaining between seller and
customer
, Secondary-market pricing - ANS✅✅Setting one price for the primary target market and a different
price for another market
Periodic discounting - ANS✅✅Temporary reduction of prices on a patterned or systematic basis
Random discounting - ANS✅✅Temporary reduction of prices on an unsystematic basis
Psychological pricing - ANS✅✅Strategies that encourage purchases based on consumers'
emotional responses, rather than on economically rational ones
Odd-number pricing - ANS✅✅The strategy of setting prices using odd numbers that are slightly
below whole-dollar amounts
Multiple-unit pricing - ANS✅✅The strategy of setting a single price for two or more units
Reference pricing - ANS✅✅Pricing a product at a moderate level and positioning it next to a more
expensive model or brand
Bundle pricing - ANS✅✅Packaging together two or more complementary products and selling
them for a single price
Everyday low prices - ANS✅✅Setting a low price for products on a consistent basis
Customary pricing - ANS✅✅Pricing on the basis of tradition
Captive pricing - ANS✅✅Pricing the basic product in a product line low, but pricing related items at
a higher level
Premium pricing - ANS✅✅Pricing the highest-quality or most versatile products higher than other
models in the product line
Price lining - ANS✅✅The strategy of selling goods only at certain predetermined prices that reflect
definite price breaks
