Lesson 11 - Managing Sales & Promotions

Which of the following is NOT a form of price?

• Tuition

• Fares

• Profits

• Wages

What is a key function of pricing in business?

• Determining employee wages

• Managing customer satisfaction

• Generating revenue and profit

• Reducing product quality

How do marketers view consumers' approach to pricing?

• Consumers are passive price takers

• Consumers actively interpret and process price information

• Consumers only buy the cheapest products available

• Consumers ignore price differences altogether

Which factor does NOT influence consumer perceptions of price?

• Prior purchasing experience

• Advertising and promotions

• The exact cost of production

• Word-of-mouth recommendations

What are the two types of price thresholds consumers consider?

• Market price and demand price

• Lower price threshold and upper price threshold

• Fixed price and variable price

• Retail price and wholesale price

When must a firm set a price for the first time?

• When launching a new product

• When expanding into a new market

• When bidding on a contract

• All of the above

Which of the following is NOT one of the six main steps in the pricing process?

• Determining demand

• Estimating costs

• Selecting a pricing method

• Increasing product quality

Why might a company lower its prices?

• To attract more customers and increase sales

• To increase production costs

• To decrease profit margins intentionally

• To discourage consumer purchases

What is a major risk of cutting prices?

• Customers may demand further price reductions

• It strengthens customer loyalty

• It guarantees higher profit margins

• It leads to an increase in production costs

Which of the following is a reason for initiating price increases?

• Cost inflation

• Excess supply

• Market saturation

• Decreasing brand loyalty