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WorksheetsPricing
Total questions: 20
Worksheet time: 12mins
The price skimming consists of setting high prices and reducing them over time to maximize the long-term profit.
True
False
Coffee pods for Dolce Gusto coffee machine are relatively inexpensive, considering the price of the machine. The pricing strategy used for the pods as auxiliary products is:
Product bundle
Captive product pricing
Creative pricing
All of the options
A competitive pricing strategy is good when the price objectives are status quo oriented.
True
False
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:
Discounts
Stability pricing
Price discrimination
Product-bundle pricing
Which pricing strategy involves setting prices based on the costs for producing, distributing and selling the product plus a fair rate of return for its effort and risk?
Customer Value-Based Pricing
Competition-Based Pricing
Cost-Based Pricing
Dynamic Pricing
Which of the following Pricing Strategies describes when you take the cost of producing a good and add on a percentage of profit to arrive at the selling price?
Cost-plus pricing
Low pricing
Promotional Pricing
High pricing
What are 3 things pricing may be based on?
Product, promotion, and service
Cost, Demand, and Competition
Cost, Demand, and Customers
Price, Promotion, Professionalism
Sets prices low for the base product but charges high prices for other components that are needed to complete the product or service.
Price mix
Price lining
Captive pricing
Bundling
________ uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to pricing.
Value-based pricing
Target return pricing
Variable costs
Price elasticity
Product image
Which of the following is NOT an internal factor that affects price ?
Consumer
Product differentiation
Marketing-mix strategies
Organization
What is cost-based pricing ?
cost+markup + final price
cost production + cost manufacturing + final price
cost manufacturing + cost distribution + final price
1.The price of the product must be lower than the cost of making the product
True
False
Which function of marketing determines how much gross profit a business will make on a good or service?
Pricing
Distribution
Promotion
Risk Management
The minimum price which can be charged bounded by product cost is also known as
Price Floor
Price Fixation
Price ceiling
Basic price
which of the following is correct for the costs related to production
fixed cost
Variable cost
Average cost
All the above
Which of the following is also referred to as markup pricing?
cost price
Cost plus pricing
Marginal pricing
Discounting pricing
The price-setting method which most closely corresponds to the concept of product positioning is
cost-plus pricing
going rate pricing
perceived value pricing
Psychological pricing
How does elasticity affect potential revenue for a firm?
If demand for a good is inelastic, lowering the price could raise revenue.
If demand for a good is inelastic, raising the price could reduce revenue.
If demand for a good is elastic, raising the price must increase revenue.
If demand for a good is elastic, raising the price could reduce revenue.
Which of the following two goods is more likely to be inelastically demanded?
Demand for insulin
Demand for vitamins
When demand changes a lot with the price of a good that is
Elastic
Inelastic
