BUAD 332 EXAM 3, BUSINESS LOGISTICS
EXAM, SUPPLY CHAIN M ANAGEMENT,
BUAD TEST QUESTIONS, OPERATIONAL
STRATEGY, BUAD 332 ANSWERS,
LOGISTICS EXAM
Question : What is the narrow definition of a Price?
CORRECT ANSWER: price is the amount of money
charged for a product or service
Question : What is the broad definition of a Price?
CORRECT ANSWER: price is the sum of all the values
that consumers exchange for the benefits of having or using the product or service
Question : What is an example of 2 things costing the same
and not having the same price?
CORRECT ANSWER: Clark boots from Amazon vs. from
Dillard's
Question : What are the 4 Internal Factors that affect the
Pricing Decisions?
CORRECT ANSWER: Marketing objectives, Marketing
mix strategies, Costs, Organizational considerations
Question : What are the 3 External Factors that affect the
Pricing Decisions?
CORRECT ANSWER: Nature of the market and demand,
Competition, Other environmental factors (economy, government, resellers, social concerns)
Question : What are the 4 Marketing Objectives?
CORRECT ANSWER: Survival, Current Profit
Maximization, Market Share Leadership, Product Quality Leadership
Question : Marketing Object about Low prices hoping to
increase demand
CORRECT ANSWER: Survival
Question : Marketing Objective about Chose the price that
produces the maximum current profit
CORRECT ANSWER: Current Profit Maximization
Question : Marketing Objective about low as possible prices
to become the market share leader
CORRECT ANSWER: Market Share Leadership
Question : Marketing Objective about high prices to cover
higher performance quality and R&D
CORRECT ANSWER: Product Quality Leadership
Question : What is an example of Product Quality
Leadership?
CORRECT ANSWER: Pharmaceuticals
Question : Fixed Costs
CORRECT ANSWER: Costs that don't
vary with sales or production levels
Question : Variable Costs
CORRECT ANSWER: Costs that do vary
directly with the level of production
Question : _______ determines the price floor, _______
determines the price ceiling
CORRECT ANSWER: Cost; customers
Question : What are the 3 External Factors Affecting Pricing
Decisions
CORRECT ANSWER: 1. Markets and Demand, 2.
Competitor's Costs, Prices, and Offers, and Other External Factors (Economic Conditions, Reseller Reactions, Government Actions, and Social Concerns)
Question : Pricing Decision from Many Buyers and Sellers
Who Have Little Effect on the Price
CORRECT ANSWER: Pure Competition
Question : What is an example of Pure Competition?
CORRECT ANSWER: Wheat
Question : Pricing Decision from Many Buyers and Sellers
Who Trade Over a Range of Prices
CORRECT ANSWER: Monopolistic Competition
Question : What is an example of Monopolistic Competition?
CORRECT ANSWER: Clothing
Question : Pricing Decision from Few Sellers Who Are
Sensitive to Each Other's Pricing/ Marketing Strategies
CORRECT ANSWER: Oligopolistic Competition
Question : What is an example of Oligopolistic Competition?
CORRECT ANSWER: Airline industry, cell phone
provider