100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
BUSML 3250 Final OSU Questions and Answers $15.49   Add to cart

Exam (elaborations)

BUSML 3250 Final OSU Questions and Answers

 1 view  0 purchase
  • Course
  • BUSML 3250
  • Institution
  • BUSML 3250

BUSML 3250 Final OSU Questions and Answers

Preview 2 out of 13  pages

  • October 29, 2024
  • 13
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • BUSML 3250
  • BUSML 3250
avatar-seller
lectknancy
BUSML 3250 Final OSU Questions and
Answers
What is a price? - Answer-price is the sum of all the values that customers give up to
gain the benefits of having or using a product or service.

Value-based pricing - Answer-uses buyers' perceptions of value as the key to pricing.
Price is considered along with all other marketing mix variables before the marketing
program is set.

Good value pricing - offering the right combination of quality and good service at a fair
price.

Value Added Pricing - Rather than cutting prices to match competitors, they add quality,
services, and value-added features to differentiate their offers and thus support their
higher prices

Cost-based pricing - Answer-involves setting prices based on the costs of producing,
distributing, and selling the product plus a fair rate of return for the company's effort and
risk.

Cost plus pricing - adding a standard markup to the cost of the product. Construction
companies, for example, submit job bids by estimating the total project cost and adding
a standard markup for profit.

Break even pricing - The firm sets a price at which it will break even or make the target
return on the costs of making and marketing a product.

Competition-based pricing - Answer-involves setting prices based on competitors'
strategies, costs, prices, and market offerings.

Demand curves - Answer-shows the number of units the market will buy in a given time
period at different prices that might be charged

Price elasticity of demand - Answer-how responsive demand will be to a change in
price. If demand hardly changes with a small change in price, we say demand is
inelastic. If demand changes greatly, we say the demand is elastic.

Pricing new products: Market-skimming pricing vs. Market-penetration pricing - Answer-
Skimming - With each new generation of Apple iPhone, iPad, or Mac computer, new
models start at a high price then work their way down as newer models are introduced

Penetration - Companies set a low initial price to penetrate the market quickly and
deeply—to attract a large number of buyers quickly and win a large market share. The

, high sales volume results in falling costs, allowing companies to cut their prices even
further

Product mix pricing strategies - Answer-product line pricing - setting prices across an
entire product line
optional product pricing - Pricing optional or accessory products sold with the main
product
captive product pricing - Pricing products that must be used with the main product
by-product pricing - Pricing low-value by-products to get rid of or make money on them
product bundle pricing - Pricing bundles of products sold together

For example, Quicken offers an entire line of financial management software, including
Starter, Deluxe, Premier, Home & Business, and Rental Property Manager versions
priced at $29.99, $64.99, $94.99, $104.99, and $154.99, respectively

Reference prices - Answer-aspect of psychological pricing. prices that buyers carry in
their minds and refer to when looking at a given product

Price image - Answer-When designing price strategies price image must be considered
as to how it influences shopping behaviour.
Similar to brand image however it is uni-dimensional as opposed to multidimensional as
price is main focus.
Price image = a function of two types of factors: retail based factors which retailers can
directly influence, and consumer based factors which are personal and can't be
influenced by retailers directly

Everyday low pricing vs. high-low pricing - Answer-Create value in different ways
EDLP saves search costs of finding lowest overall prices
High/low provides the thrill of the chase for the lowest price

Odd-even pricing - Answer-Ending the price with certain numbers (odd numbers just
under even numbers) to influence buyers' perceptions of the price or product

Price-quality relationship - Answer-The perception of price as an indicator of product
quality (e.g., the higher the price, the higher the perceived quality of the product.)

Loss leader pricing - Answer-the pricing policy of setting prices very low or even below
cost to attract customers into a store

Legal and ethical aspects of pricing - Answer-price-fixing states that sellers must set
prices without talking to competitors.

predatory pricing—selling below cost with the intention of punishing a competitor or
gaining higher long-run profits by putting competitors out of business.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller lectknancy. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $15.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

83637 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$15.49
  • (0)
  Add to cart