Understanding Premium Pricing Strategy

Understanding Premium Pricing Strategy

Assessment

Interactive Video

Business

9th - 10th Grade

Hard

Created by

Jennifer Brown

FREE Resource

5 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary goal of a business using a premium pricing strategy?

To increase production volume

To reduce production costs

To position products as affordable

To target high-end customers seeking exclusivity

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does Rolex ensure its watches maintain a premium price?

By using low-cost materials

By hand-assembling watches and limiting production

By offering frequent discounts

By mass-producing watches

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one advantage of premium pricing for luxury brands?

It reduces the cost of production

It increases the overall market size

It results in higher profit margins per item

It makes products more accessible to everyone

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential downside of premium pricing?

It can damage a brand's reputation if quality is not met

It eliminates the need for marketing

It guarantees increased sales volume

It makes products more affordable

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might premium pricing limit the overall market size?

It increases production costs

It attracts too many customers

It excludes those who cannot afford the high prices

It reduces the quality of the product