MM3-PRELIM CHAPTER QUIZ (MM3 - PRICING STRATEGY)

There are 6 sub strategies in Psychological Pricing.

• True

• False

What is the meaning of the word Profit?

• Money made after investment costs are considered

• Investment

• What is costs to make the product

• All of the above

What is the 2nd rule of the Goals of pricing?

• Finding the ROI

• Saying hello then walking out the door

• Pricing to stay relevant against the competition

• Gaining market share

Fill in the blank: With pricing a ___________ can try to take business away from its competition, which would increase its market share.

• Market

• Company

• Store

• Consumer

This is a short-term pricing strategy that involves reducing the price of a product to help clear it.

• Promotional Pricing

• Demand-oriented Pricing

• Market Skimming Pricing

• Premium Pricing

• Destroyer Pricing

Establishing a pricing policy frees you from making different pricing decisions over and over again and let employees and customers know what to expect.

• True

• False

Adapting to technological changes can cause some business to become obsolete. Not adapting can give entrepreneur a competitive edge.

• True

• False

Businesses that purchase or manufacture goods for resale use markup pricing based on the cost of the item.

• True

• False

Each channel member has to make a profit to make handling the goods worthwhile. Their cost and profit together are your cost.

• True

• False

The price of your products helps create your image in the minds of customers. If your prices are too low, customers may consider you products inferior and if your prices are too high, you may turn some customers away.

• True

• False