Business Pricing Quiz

Which of the following is a true statement?

• Only certain types of products have selling prices.

• Selling prices are easy for businesses to determine.

• Selling prices for products always remain the same over time.

• There are many kinds of selling prices for goods and services.

Erica wants to buy Marco’s used iPod. He is asking her to pay him $100 for it. $100 is the iPod’s

• cost of goods.

• selling price.

• cash flow.

• profit.

Which of the following must a business accomplish through selling price?

• Pay all product costs

• Maintain market share

• Acquire start-up capital

• Company valuation

The selling prices of products help customers to

• make buying decisions.

• find a company’s fixed costs.

• spend freely.

• determine the amount of markup.

Selling price helps customers to allocate their money because price determines

• what customers need to purchase.

• the value of products to all purchasers.

• the quality of all goods and services.

• what customers can afford to purchase.

Is the following statement true or false: There is no connection between a firm's marketing objectives and its pricing objectives.

• True, marketing and pricing are independent of each other.

• False, marketing objectives are based on pricing objectives.

• True, some businesses do not even need marketing objectives.

• False, pricing objectives should be used to achieve marketing objectives.

It costs a publishing company $8 to produce a paperback book. The company sells each paperback it produces for $9.99. The $1.99difference is known as

• capital.

• markup.

• demand.

• elasticity.

Which of the following is true of a business's pricing objectives:

• They must be changed each fiscal year.

• They must be adjusted from time to time.

• They are chosen for the life of the business.

• They are not affected by changing circumstances.

A business that uses sales-oriented pricing objectives wants to increase the

• cost of its marketing efforts.

• total amount of its income from sales.

• amount of promotion it uses.

• inefficiency of its human resources.

A business that sets its prices lower than those of competitors will not make a profit unless it also

• reduces its inventory.

• increases promotion.

• controls its costs.

• enlarges its staff.