Price

What might happen if the global price of oil increases?

• Petrol company increases its prices

• Petrol company decreases its prices

• Petrol company stays the same

• Petrol company closes

What is the purpose of using a high price strategy?

• To signal luxury or quality

• To sell more products

• To attract more customers

• To reduce costs

What is one challenge of a high price strategy?

• Attracting customers

• Finding products

• Reducing prices

• Increasing costs

Why do customers look for the cheapest product?

• To spend more money

• To save money

• To waste money

• To lose money

What might low prices be associated with?

• High quality

• Poor quality

• No quality

• Medium quality

When will customers buy a product at a low price?

• If they see it as a waste of money

• If they see it as value for money

• If they see it as too expensive

• If they see it as useless

What is the tactic used in market skimming pricing?

• Price initially high

• Prices reduced for short time

• Prices kept low

• Business makes a profit

If a cake costs £1 to make and the company wants a 50% profit, how much will they sell the cake for?

• £1.00

• £1.50

• £2.00

• £0.50

Which of the following is an example of cost-based pricing?

• Setting prices based on competitor prices

• Setting prices based on production cost plus 50% profit

• Setting prices based on customer feedback

• Setting prices based on market demand

What is a disadvantage of cost-based pricing?

• It covers all production costs

• It ignores competitor pricing

• It ensures a profit margin

• It is easy to calculate