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MGT 103 Bates Final Exam Questions and Answers (Graded A)
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MGT 103 Bates Final Exam Questions and Answers
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MGT 103 Bates Final Exam Questionsand Answers
__% of ticket sales are now Online - Answers -50
Price - Answers -the money or other considerations (think: bartering) exchanged for the
ownership or use of a product or service
Barter - Answers -exchanging products and services for other products and services
Calculating the Final Price (Formula) - Answers -List Price - (Incentives + allowances) +
Extra Fees
College Student ex.
Tution - scholarships + books/housing
Value (Formula) - Answers -Percieved Benefits / Price
Value Pricing (strategy) - Answers -Lowering price while keeping benefits the same
or
Increasing benefits while keeping price the same
Price to Value Relationship - Answers -When we pay a higher price, we tend to perceive
a higher quality
doesn't mean that people will always be willing to pay a higher price though.
ex) pizza sales example
Profit (Formula) - Answers -Total Revenue - Total Cost
broken down further:
(Unit Price x Quantity Sold) - (Fixed Cost + Variable Cost)
Potential Pricing Objectives - Answers -- Sales Revenue
- Market Share
- Unit Volume
- Survival
,- Social Responsibility
Sales Revenue - Answers -Price x Quantity sold, money made before factoring in costs
Market Share - Answers -Ratio of a firms sales to the industry
- used when sales in an industry are flat or declining
Unit Volume - Answers -total amount sold
- used when trying to bring up consumer demand to match production capacity
Survival - Answers -the process of staying alive
- used when a firm cant match rivals price cuts
Social Responsibility - Answers -when a firm forgoes greater profits to meet obligations
to society
Pricing Constraints - Answers -Demand
Newness
Cost of Production
whether Single Product or Product Line
Cost of Changing prices
Type of competitive market
Demand - Answers -the greater the demand, the higher price that can be charged
Newness - Answers -products can be sold for higher prices earlier in their life cycles
Cost of Production - Answers -firms are forced to price products in a way that ensures
their distribution partners profit as well
Single Product vs Product line - Answers -single/unique products can be sold for higher
price
when a company has a range of similar products they kind of have to stay in line with
eachother, price wise
Cost of Changing Prices - Answers -cost of updating online sites, catalog retail
avenues, etc.
, Pure Competition market - Answers -many sellers and consistent market price
(Agriculture- Wheat/Corn)
same benefit of corn, price is determined by what consumers want to pay
Monopolistic Competition - Answers -many sellers compete on both price, and benefits
(books movies restaurants)
there isnt a consistent price (there is a price range, though) like pure competition since
there are differentiated benefits
Oligopoly - Answers -few sellers that avoid price competition and focus on differentiated
benefits
(car manufacturers/banks)
Pure Monopoly - Answers -No price competition and the seller can charge mostly what
it wants
(cable TV)
Every Day Low Prices - Answers -gives customers a low price 24/7 365. No discounts,
no need for comparison shopping
High/Low pricing - Answers -Initially sells a product for high price, then later sells on
discount for low when the product becomes undesirable
Odd/Even pricing - Answers -9.98 vs 10
Both are desirable, depending on how the firm wants the product to be perceived as
(cheap vs premium)
Bundle Pricing - Answers -Marketing two or more products together as a single package
(get more people to buy fries by throwing in a drink)
Yield Management - Answers -Charging different prices to maximize revenue
prices change depending on capacity
(Hotels/airlines)
Standard Markup - Answers -adding a fixed percentage to the cost of all items in a
specific product class
(tends to be 10/20/40, manufacturing/wholesaler/retailer, where percentage additions
are calculated ontop of each other, not all at once)
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