MKT 300 Exam 3 questions with 100% complete
solutions
1. price competition emphasizing price as an issue and matching or
beating competitors' prices
2. low cost; rapidly for price competition to work, you must be the
seller of the product and you must be
able to change prices and aggressively
3. nonprice competition emphasizing factors other than price to distinguish a
prod-
uct from competing brands; factors include distinct quali
excellent customer service, and ettective promotion
4. Normal Demand Curve as prices fall, demand increases, raising prices leads t
lower quantities sold
5. prestige product demand curve raising prices could lead to higher or lower
quantities sold
6. price elasticity of demand a measure of the sensitivity of demand to changes in
price
7. Elastic demand demand in which a slight decrease in price
results in a relatively large increase in demand,
or units sold
8. inelastic demand demand in which changes in price have little or no
ettect on the amount demanded
9. divide the change in how to calculate elasticity
quantity by the change in
price (Q2-Q1)/Q1 /
(P2-P1)/P1
10. perfectly inelastic when elasticity is 0
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40
,MKT 300 Exam 3 questions with 100% complete
solutions
11. relatively inelastic when elasticity is between 0 and -1
12. unit elastic when elasticity is -1 (change in P = change in Q)
13. elastic when elasticity is less than -1
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40
,MKT 300 Exam 3 questions with 100% complete
solutions
14. Markup The ditterence between the cost of a product and its
selling price
15. once someone buys a some grocery stores sell products at a negative
product, they will buy the markup because they're hoping that
product again
16. price skimming A pricing strategy that involves setting prices
relatively high at first and then lowering them over
time; used with things like popular electronics; good
for inelastic demand; en- courages competition
17. penetration pricing setting a low initial price on a new product to appeal
immediately to the mass market; designed for high
market share and discourages competition; good for
elastic prod- ucts
18. psychological pricing pricing that encourages purchases based
consumers'
emotional responses, rather than on economically
rational ones
19. differential pricing charging ditterent prices to ditterent buyers for the
same
quality and quantity of product (ex: coupons); the
market must consist of multiple segments with
ditterent price sensitivities
20. Bundle Pricing Packaging together two or more complementary
products and selling them at a single price
21. odd-end pricing Pricing that ends in an odd number ex: $2.99
is often perceived as $2
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40
,MKT 300 Exam 3 questions with 100% complete
solutions
22. Distribution The decisions and activities that make products
available to customers when and where they want
to purchase them
4/
40
solutions
1. price competition emphasizing price as an issue and matching or
beating competitors' prices
2. low cost; rapidly for price competition to work, you must be the
seller of the product and you must be
able to change prices and aggressively
3. nonprice competition emphasizing factors other than price to distinguish a
prod-
uct from competing brands; factors include distinct quali
excellent customer service, and ettective promotion
4. Normal Demand Curve as prices fall, demand increases, raising prices leads t
lower quantities sold
5. prestige product demand curve raising prices could lead to higher or lower
quantities sold
6. price elasticity of demand a measure of the sensitivity of demand to changes in
price
7. Elastic demand demand in which a slight decrease in price
results in a relatively large increase in demand,
or units sold
8. inelastic demand demand in which changes in price have little or no
ettect on the amount demanded
9. divide the change in how to calculate elasticity
quantity by the change in
price (Q2-Q1)/Q1 /
(P2-P1)/P1
10. perfectly inelastic when elasticity is 0
1/
40
,MKT 300 Exam 3 questions with 100% complete
solutions
11. relatively inelastic when elasticity is between 0 and -1
12. unit elastic when elasticity is -1 (change in P = change in Q)
13. elastic when elasticity is less than -1
2/
40
,MKT 300 Exam 3 questions with 100% complete
solutions
14. Markup The ditterence between the cost of a product and its
selling price
15. once someone buys a some grocery stores sell products at a negative
product, they will buy the markup because they're hoping that
product again
16. price skimming A pricing strategy that involves setting prices
relatively high at first and then lowering them over
time; used with things like popular electronics; good
for inelastic demand; en- courages competition
17. penetration pricing setting a low initial price on a new product to appeal
immediately to the mass market; designed for high
market share and discourages competition; good for
elastic prod- ucts
18. psychological pricing pricing that encourages purchases based
consumers'
emotional responses, rather than on economically
rational ones
19. differential pricing charging ditterent prices to ditterent buyers for the
same
quality and quantity of product (ex: coupons); the
market must consist of multiple segments with
ditterent price sensitivities
20. Bundle Pricing Packaging together two or more complementary
products and selling them at a single price
21. odd-end pricing Pricing that ends in an odd number ex: $2.99
is often perceived as $2
3/
40
,MKT 300 Exam 3 questions with 100% complete
solutions
22. Distribution The decisions and activities that make products
available to customers when and where they want
to purchase them
4/
40
