BADM 326 UPDATED Actual Exam Questions and CORRECT Answers
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Course
BADM 326
Institution
BADM 326
BADM 326 UPDATED Actual Exam
Questions and CORRECT Answers
Segmented pricing - CORRECT ANSWER- -pricing based on market segments
-logic based on differences among buyers in terms of costs, price sensitivities, and
competition
-buyers and comp are not likely to be cooperative with your price ...
BADM 326 UPDATED Actual Exam
Questions and CORRECT Answers
Segmented pricing - CORRECT ANSWER- ✔✔-pricing based on market segments
-logic based on differences among buyers in terms of costs, price sensitivities, and
competition
-buyers and comp are not likely to be cooperative with your price segmentation efforts
-some forms of price segmentation might be illegal
Which segments are more price sensitive: personal vs. business travelers - CORRECT
ANSWER- ✔✔-might think personal bc they have to pay for it vs business pays for bus
travel
-BUT personal might be less sensitive when traveling for special events like honeymoon
-personal might be less sensitive during emergencies (ex. need to get out, family sick)
Which segments are more price sensitive: new to market vs experienced buyers - CORRECT
ANSWER- ✔✔-new might be more sensitive (they don't know a lot about quality but they
know about price)
-new might be less price sensitive when they're tourists (don't know any better, locals get
discounts)
-exp. might be more sensitive when buying good tech (they know a lot and what its worth;
also get used to prices)
Which segments are more price sensitive: light users vs heavy users - CORRECT ANSWER-
✔✔-similar to new vs experienced buyers
Which segments are more price sensitive: students/retired vs employed - CORRECT
ANSWER- ✔✔-students are less price sensitive for textbooks
-if parents are paying for students, they are likely less price sensitive (ex. buying a car,
apartments- don't have many choices if you want to be on campus)
Steinway piano example: tiny but well known piano maker grew quickly after the founder's
daughter came up w/idea to offer free piano lessons w/the sale of each piano. why did she do
this? - CORRECT ANSWER- ✔✔bc --> learning to play piano got a discount bc they're
, more price sensitive (maybe don't know as much about quality and how much it usually costs
like exp. vs new buyers)
Which segments are more costly to serve: peak vs off-peak purchasers - CORRECT
ANSWER- ✔✔-ice cream may be more expensive in winter (off-peak)
-BUT if companies run at capacity, peak may be more costly (have to buy more resources and
labor)
Which segments are more costly to serve: new customers vs. established customers -
CORRECT ANSWER- ✔✔-established may be more demanding bc they know what they
want
Mechanisms for price segmentation: 1) by buyer identification - CORRECT ANSWER- ✔✔-
buyers have obvious characteristics that distinguish them
-ex. Mercedes offers discounts to doctors --> doctors are typically respected but not in China
(shouldn't offer them a discount there)
-companies shouldn't offer students a discount
-sometimes veterans get discounts
-senior citizens: have to show their ID to show how old they are
Mechanisms for price segmentation: 2) by purchase location - CORRECT ANSWER- ✔✔-
buying online vs offline: when only available online they charge higher online, local prices
may be lower bc when its online its available to everyone in the world (only locals see the
local promotion though)
-McDonalds prices in diff locations
-Gas stations examine location and traffic: if station is on the side of the traffic they may
change pricing
-Urbana charges higher tax than Champaign...more businesses are located west of Wright
street
Mechanisms for price segmentation: 3) by time of purchase - CORRECT ANSWER- ✔✔-
restaurants offer lunch specials... if you're already busy at lunch don't offer lunch special!
-people are less price sensitive when buying lunch fast food...lunch is a short time, people are
willing to pay to save the time
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