TOPIC 4 - Decisions on prices (5.3)

Front

What would Apple's pricing strategy be taking into account its close competitors in the smartphone industry (Samsung, Xiaomi...)?

Back

Price maintenance

Front

Choose an example of a tender / contest competitive situation: Adidas and Nike, El Corte Inglés and Lidl, Iberia and Ryanair, Rolex and Swatch

Back

Iberia and Ryanair

Front

Which of the following is an example of a random offer or discount? A 10% discount available only today without prior notice, A January clearance sale, A payment plan in 6 monthly installments, A fair price based on ethical production

Back

A 10% discount available only today without prior notice

Front

What do ethical prices usually take into account?

Back

The social or environmental impact of the product

Front

Which of the following characteristics is typical of a Skimming Pricing strategy? Options: The product is not new and the market is highly competitive, High price sensitivity among consumers, Inelastic demand and innovative product, Low price to quickly gain market share

Back

Inelastic demand and innovative product

Front

Which statement is true about the Penetration Pricing strategy? Options: It is applied in markets with low competition, It targets exclusive, high-perceived value products, It aims to recover costs quickly before imitation, It takes advantage of economies of scale to reduce unit cost

Back

It takes advantage of economies of scale to reduce unit cost

Front

Which pricing strategy relies on consumers having a fixed expectation of a product’s cost due to its stability over time? Options: Prestige pricing, Customary price, Reference price, Price according to perceived value

Back

Customary price

Front

A luxury watch brand increases its prices significantly, and instead of losing customers, it gains more because consumers associate the price with higher quality. Which pricing strategy is being used?

Back

Prestige pricing

Front

What is the correct interpretation of a negative cross elasticity of demand?

Back

The demand for one product decreases when the price of another product increases

Front

Which of the following best describes elastic demand? A change in price causes a small change in quantity demanded, Demand does not respond to price changes at all, A small change in price causes a large change in quantity demanded, Quantity demanded increases even if price increases

Back

A small change in price causes a large change in quantity demanded