BA 332 Exam 3 Review (Part 3 and 4 plus Article)

Business Administration 332 with Moon/zondag at University of Tennessee - Knoxville

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Created: 2009-10-26
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Define the broad definition of price.

The sum of all the values that consumers exchange for the benefits of having or using the product or service.

___________ ____________ is charging differenct prices depending on individual customers and situations.

Dynamic Pricing

The nature of the market and demand, competition, and other environmental factors make up the ___________ factors affecting price decisions.

external

Marketing objectives, marketing mix, costs, and organizational considerations make up the ___________ factors affecting price decisions.

internal

The demand curve shows that different levels of __________ result in different levels of __________.

price, demand

The price elasticity of demand refers to how responsive the ________ will be to a change in ________.

demand, price

Demand hardly changing with a small change in price represents ___________ demand.

inelastic

Demand changing greatly with a small change in price represents __________ demand.

elastic

___________ ____________ is an approach that adds a standard markup to the cost of the product.

Cost-Plus Pricing

Product, Cost, Price, Value, and Customers are ALL aspects of _________-based pricing.

cost

Customers, Value, Price, Cost, and Product are ALL aspects of __________-based pricing.

value

______-_______ is when a company sets prices based on what competitors are charging.

Going-Rate

_______-________ is when a company sets prices based on what they think competitors will charge.

Sealed-Bid

Setting a high price for a new product to "Skim" maximum revenues from the target market is known as ___________ _____________.

Market-Skimming

What are the three conditions in which it is appropriate to use Market-Skimming?

1. Products quality and image must support its higher price.

2. Costs can't be so high that they cancel the advantage of charging more.

3. Competitors should not be able to enter market easily and undercut price.

Setting a low price for a new product in order to "penetrate" the market quickly and deeply is known as __________ ____________.

Market Penetration

What are the three conditions in which it is appropriate to use market penetration?

1. Market is highly price sensitive so a low price produces more growth.

2. Production/Distribution costs must fall as sales volume increases.

3. Competition must be kept out of the market or the effects will be only temporary.

____________ _____________ considers the psychology of prices and not simply the economics.

Psychological pricing

Consumers usually perceive higher-priced products as having _________ quality.

higher

Consumers use ________ when they can judge the quality of a product by examining it or recalling experiences.

less

_________-_________ is pricing optional or accessory products sold with the main product.

optional-pricing

Is ink that is used for a printer an example of optional-pricing or captive- pricing?

captive-pricing

Pricing low-value by-products to get rid of them and make the main product's price more competitive is known as ____________ pricing.

By-product

Combining several products and offering the bundle at a reduced price is known as _________-__________.

product-bundling

_________-________ pricing involves setting price steps between various products in a product line based on cost differences between products, customer evaluations of different features, and competitors prices'.

Product-line

Being able to by software, a monitor, a PC, and a printer for a lower price then buying each separately is an example of __________-___________.

product-bundling

A ___________ ____________ is a set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user.

Distribution Channel

The purpose of marketing intermediaries is to match _________ from from producers to __________ of consumers.

supply , demand

A distributor __________ the number of channel transactions.

reduces

What is the equation that determines the number of contacts without a distributor?

M x C

Where M is the number of manufacturers and C is the number of Contact.

What is the equation that determines the number of contacts with a distributor?

M + C

Where M is the number of manufacturers and C is the number of Contacts.

What type of conflict occurs amoung firms at the same level of the channel? (for example retailer to retailer)

horizontal conflict

What type of conflict occurs between different levels of the same channel? (ex. wholesaler to retailer)

vertical conflict

Company-sponsored training programs and high margins on spare parts are incentives that encourage high levels of __________ ___________.

customer service

___________ is how a company gets other members of the channel to cooperate when they do not own the channel and they don't have contracts with the other members of the channel.

incentives

What are the three types of Vertical Marketing Systems?

Corporate, Contractual, Administered

Which type of vertical marketing system includes leadership that is assumed by one or a few dominant members?

Administered

Which type of vertical marketing system involves common ownership at different levels of the channel.

Corporate

Western Auto is an example of a ___________ vertical marketing system.

contractual

What are the four channel management issues?

1. Product availability

2. Promotion

3. Customer Service

4. Market Information

Manufacturers want to have the product available with the __________ level of coverage.

desired

Manufacturers want to have the product available in a _________ location within the retail outlet.

desirable

With regards to marketing intermediaries, what are the three types of distribution?

Intensive, Selective, and Exclusive

New products, old products, and inventory relationships incentives to encourage _________ ___________.

product availability

___________ ___________ will begin selling new cars and truck on _________ in an attempt to regain market share in the U.S.

General Motors , EBay

T/F GM's market share of 13.5% is below average.

True

About this deck

By: Anonymous
Created: 2009-10-26
Size: 46 flashcards
Views: 71

About StudyBlue

“I have been getting MUCH better grades on all my tests for school. Flash cards, notes, and quizzes are great on here. Thanks!”
Kathy