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Objectives in Pricing

Total questions: 14

Worksheet time: 2mins

Name
Class
Date
1.

The price of each product is designated to be higher than the total cost of producing and selling the product to ensure that the firm incurs profit in every sale transaction

(a)  

2.

One element of the marketing mix that produce revenue; the other elements produce costs.

(a)  

3.

Setting a price that similar products or service and make adjustments as one of the features for differentiating.

(a)  

4.

In this strategy, all competitors respond to supply and demand, in order to set a market price that reduces shortages and surpluses.

a)

Price skimming

b)

Cost-based Pricing

c)

Competitive pricing

d)

Supply and demand pricing

5.

Fast food restaurants such as McDonalds use this pricing strategy for selling combos of burgers, fries and a beverage at a lower price than the total price of the items sold individually. This is an example of:

a)

Price discrimination

b)

Product- bundle pricing

c)

Discounts

d)

Stability pricing

6.

Which pricing strategy uses the

buyers’ perceptions of value rather than seller’s cost?

a)

Value- based pricing

b)

Customer- based Pricing

c)

Competition - based pricing

d)

none of the option

7.
If a price change results in a large change in the demand for a product, the product is said to have a:
a)
Low elastic demand
b)
High elastic demand
c)
Value pricing
d)
None of the options
8.
Value pricing strategies are sometimes used to increase market share and have more customers..
a)
True
b)
False
9.

Which of the following must a business accomplish through selling price:

a)

Pay all product costs.

b)

Maintain market share.

c)

Acquire start-up capital.

d)

Company valuation.

10.

Selling price helps customers to allocate their money because price determines

a)

what customers need to purchase.

b)

the value of products to all purchasers.

c)

the quality of all goods and services.

d)

what customers can afford to purchase.

11.

Is the following statement true or false: There is no connection between a firm’s marketing objectives and its pricing objectives.

a)

True, marketing and pricing are independent of each other.

b)

False, marketing objectives are based on pricing objectives.

c)

True, some businesses do not even need marketing objectives.

d)

False, pricing objectives should be used to achieve marketing objectives.

12.

Why is it important for businesses to recover their costs?

a)

So that they can pay lower taxes

b)

So that they can stay in business

c)

So that they can maximize their losses

d)

So that they can avoid government regulation

13.

Discount is ______from the price

a)

added

b)

subtracted

c)

divided

d)

disect

14.

A Music stote bought a CD set a cost of 150, when the store sold the CD set, the mark -up was 40%, find the selling price.

a)

190

b)

205

c)

210

d)

160