LO1 Xmas Quiz R064

Which statement best describes "Price"?

• The cost of producing items

• The amount customers are charged for items

• The profit earned from selling items

What is price skimming?

• An initially high price charged to customer which will reduce over time

• An initially low price charged to customer which will increase over time

• A steady price charged to customer regardless of product age

What is an advantage of price skimming?

• Gains market share

• Covers costs and breaks even

• Allows an organisation to make the largest profit possible

What is Promotional pricing?

• When a business offers different prices to different customers

• When a business reduces price to below production cost to clear stock

• When a business offers a short term special offer such as buy one get one free to gain interest and increase sales

What is the selling price of an item which costs £5 to make and has a 50% mark up (profit added)?

• £7.50

• £5.00

• £10.00

What is meant by Psychological pricing strategy?

• Items are offered at an uneven number to appear cheaper encouraging sales (eg £9.99)

• Items are sold using a special promotional offer which is brightly coloured and attracts attention

• Items are sold at production cost price to attract customers into the store and increase purchases

What is an example of primary research?

• Magazine
• Observation
• Newspaper
• Government statistics

What is a problem with using secondary data?

• It is easy to find
• It is normally quicker to find
• You did not create it (it might be unreliable)
• You have to find the information yourself

Marketing research:

• is used to obtain information for management to make more informed decision making.
• is the collection and analysis of data from a sample or census of individuals or organizations.
• includes all forms of market, opinion and social research such as consumer and industrial surveys.
• is work undertaken to determine either structural characteristics of the industry of concern.

Secondary data has two important advantages over primary data. It is:

• capable of compensating for rapid environmental changes and technical improvements.
• always available and complete.
• seldom obsolete and usually fits the dimensions of your problem.
• generally cheaper to gather than primary data and takes less time to find.