Pricing Quiz

What is a coupon?

• A reward given for purchasing in bulk

• A document or code that provides a discount on a product or service

• A tool for measuring customer loyalty

• A type of warranty for defective products

What is markup in pricing?

• The total sales revenue generated

• The percentage increase over the cost of a product to set the selling price

• The amount spent on advertising

• The value added to a product through branding

What does Return on Investment (ROI) measure?

• The profit from an investment compared to its cost

• The number of units sold

• The customer satisfaction level

• The cost of goods sold

What happens after you hit the breakeven point?

• The business continues to incur losses

• All additional revenue contributes to profit

• Costs increase exponentially

• Demand decreases significantly

What is demand elasticity?

• The ability of a product to be stretched without breaking

• How demand for a product changes with a change in price

• The long-term stability of a product's demand

• The relationship between supply and production

Which of the following is an example of an inelastic product?

• Designer handbags

• Gasoline

• Luxury cars

• Smartphones

What is price discrimination?

• Setting a universal price for all customers

• Offering different prices to different customer segments for the same product

• Selling products below cost to drive competitors out of business

• Pricing based on competitor strategies

Which of the following is a psychological pricing strategy?

• Marking items at $0.99 instead of $1.00

• Offering a fixed percentage discount to all customers

• Adjusting prices to reflect production costs

• Selling in bulk at discounted rates

What is an example of bundle pricing?

• Selling two related products together for a lower combined price

• Offering a product for free with every purchase

• Charging a premium for expedited shipping

• Discounting items based on loyalty points

What does breakeven analysis help determine?

• The level of customer satisfaction

• The minimum sales volume needed to avoid a loss

• The number of products needed for a profit of $1 million

• The average selling price in a competitive market