BADM326 Final Exam Questions With 100% Correct Answers
0 view 0 purchase
Course
BADM326
Institution
BADM326
BADM326 Final Exam Questions With 100%
Correct Answers
Segmented pricing - answer-pricing based on market segments
-logic based on differences among buyers in terms of costs, price sensitivities, and competition
-buyers and comp are not likely to be cooperative with your price segmentation effo...
BADM326 Final Exam Questions With 100%
Correct Answers
Segmented pricing - answer✔-pricing based on market segments
-logic based on differences among buyers in terms of costs, price sensitivities, and competition
-buyers and comp are not likely to be cooperative with your price segmentation efforts
-some forms of price segmentation might be illegal
Which segments are more price sensitive: personal vs. business travelers - answer✔-might think
personal bc they have to pay for it vs business pays for bus travel
-BUT personal might be less sensitive when traveling for special events like honeymoon
-personal might be less sensitive during emergencies (ex. need to get out, family sick)
Which segments are more price sensitive: new to market vs experienced buyers - answer✔-new
might be more sensitive (they don't know a lot about quality but they know about price)
-new might be less price sensitive when they're tourists (don't know any better, locals get
discounts)
-exp. might be more sensitive when buying good tech (they know a lot and what its worth; also
get used to prices)
Which segments are more price sensitive: light users vs heavy users - answer✔-similar to new vs
experienced buyers
Which segments are more price sensitive: students/retired vs employed - answer✔-students are
less price sensitive for textbooks
-if parents are paying for students, they are likely less price sensitive (ex. buying a car,
apartments- don't have many choices if you want to be on campus)
Steinway piano example: tiny but well known piano maker grew quickly after the founder's
daughter came up w/idea to offer free piano lessons w/the sale of each piano. why did she do
this? - answer✔bc --> learning to play piano got a discount bc they're more price sensitive
(maybe don't know as much about quality and how much it usually costs like exp. vs new
buyers)
Which segments are more costly to serve: peak vs off-peak purchasers - answer✔-ice cream may
be more expensive in winter (off-peak)
-BUT if companies run at capacity, peak may be more costly (have to buy more resources and
labor)
Which segments are more costly to serve: new customers vs. established customers - answer✔-
established may be more demanding bc they know what they want
Mechanisms for price segmentation: 1) by buyer identification - answer✔-buyers have obvious
characteristics that distinguish them
-ex. Mercedes offers discounts to doctors --> doctors are typically respected but not in China
(shouldn't offer them a discount there)
-companies shouldn't offer students a discount
-sometimes veterans get discounts
-senior citizens: have to show their ID to show how old they are
Mechanisms for price segmentation: 2) by purchase location - answer✔-buying online vs offline:
when only available online they charge higher online, local prices may be lower bc when its
online its available to everyone in the world (only locals see the local promotion though)
-McDonalds prices in diff locations
-Gas stations examine location and traffic: if station is on the side of the traffic they may change
pricing
-Urbana charges higher tax than Champaign...more businesses are located west of Wright street
Mechanisms for price segmentation: 3) by time of purchase - answer✔-restaurants offer lunch
specials... if you're already busy at lunch don't offer lunch special!
-people are less price sensitive when buying lunch fast food...lunch is a short time, people are
willing to pay to save the time
-in business districts they should offer dinner specials (ex. some companies will pay for your
dinner if you work till 7 unpaid...incentivize you to work!)
The benefits of buying summaries with Stuvia:
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
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
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 sirjoel. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
