Pricing Concept & Strategy

Which of the following is a key feature of cost-plus pricing?

• a) Pricing based on customer perceived value

• b) Adding a fixed profit margin to the cost of production

• c) Setting prices based on competitors' prices

• d) Dynamic pricing based on demand fluctuations

Value-based pricing primarily focuses on:

• a) Covering costs and ensuring profit margins
  

• b) Setting prices based on competitors’ prices

• c) The perceived value of the product to the customer
  

• d) Minimizing production costs

Which factor most influences competition-based pricing?

• Customer willingness to pay
  

• Economic conditions in the region

• Costs incurred in production

• Prices set by competitors

How do economic factors influence pricing strategies in different regions?

• 
  They affect customers’ purchasing power and willingness to pay

• They only influence production costs, not pricing
  

• They have no impact on pricing decisions
  

• They determine the legal constraints on pricing

Revenue management primarily aims to:

• 
  Reduce customer demand to match supply

• Minimize inventory

• 
  Maximize revenue by selling the right product to the right customer at the right time and price

• Maximize production efficiency
  

Which of the following is a common promotional tool used in revenue management?

• Discounting and special offers

• Eliminating demand during peak periods

• Cost reduction
  

• Increasing fixed costs
  

A key principle of revenue management is:

• Fixed pricing to maintain brand consistency

• Uniform pricing regardless of demand fluctuations
  

• Ignoring customer segmentation
  

• 
  Adjusting prices based on real-time demand and capacity constraints

Which of the following best describes the "promotional mix" in revenue management?

• The process of eliminating demand during off-peak periods

• The set of prices used during promotional periods only

• The combination of advertising, sales promotion, personal selling, and public relations used to influence demand
  

• A fixed set of discounts offered on all products