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Worksheets2.2.2 Price
Total questions: 16
Worksheet time: 11mins
Which of the following statements is true?
Demand will always increase when selling prices fall
Revenue will always increase when selling prices rise
Prices of luxury products tend to be low to stimulate demand
Raising the price of a product with many close substitutes will usually result in a reduction in demand
At which stage in the product life cycle might a business reduce the selling price of a product to clear stock that is no longer in demand?
Introduction
Growth
Maturity
Decline
A significant downturn in the economy has led a business to review its pricing strategy. The business aims to continue to attract customers to purchase its products, despite the intense competition in the market. Which strategy is likely to be the most appropriate in this situation?
Increase selling prices
Keep selling prices the same as before the economic downturn
Lower selling prices
Copy the selling prices of rivals
Which of the following statements best describes the basic relationship between price and demand?
As prices rise demand is likely to fall
As prices rise demand is likely to stay the same
As prices rise demand is likely to rise
As prices fall demand is likely to stay the same
A business is likely to charge a high price when:
There is a lot of competition in a market
Its products are aimed at customers with a low income
It launches a new, innovative product onto the market
When a product is of a low quality compared to its competitors
In which stage of the product life cycle, when sales growth has slowed down after reaching a peak, would a business cut prices to attract competitors’ customers to purchase its products?
Introduction
Growth
Maturity
Decline
Customers frequently search online to find the most competitive price for goods and services. Which of the following influences on pricing strategies is most likely to have led to this development?
Cost of producing the product
Legislation
State of the economy
Technology
Which of the following statements is true?
Increasing prices will always increase a business’s profits
Reducing prices will always reduce a business’s profits
Revenue will fall if demand remains unchanged after a price reduction
Revenue will increase if demand remains unchanged after a price cut
The stage in the product life cycle at which a low price might be charged in order to establish a product in a competitive market is:
Introduction
Maturity
Decline
Growth
Which of the following pricing strategies is most likely to be used for the launch of a new weekly collector’s magazine into a highly competitive market?
Low price, low profit margin
Low price, high profit margin
High price, low profit margin
High price, high profit margin
Which two of the following businesses are most likely to set higher prices, sell lower volumes and experience higher profit margins?
M&S
Aldi
Waitrose
Morrisons
Tesco
Which of the following bests describes the process of a business establishing a distinct identity or personality for its products?
Branding
Sponsorship
Advertising
Promotion
Which of the following promotion strategies is an example of a special offer?
Advertising
2 for 1
Sponsorship
Product trials
A business donates money to a local football team and, in return, the team displays the name and logo of the business on its kit. This an example of:
Branding
Special offers
Sponsorship
Product trials
Which of the following is a benefit of 2 for 1 offers as a promotion strategy?
The brand may be damaged in the long term
Short term boost to sales
Data regarding the shopping habits of customers can always be collected by the business
Increases the profit made on each unit sold
Which two of the following are most likely to be drawbacks of television advertising as a promotion strategy?
It can be expensive for the business
No guarantee the target audience will receive the message
A large quantity of people will receive the message
Appropriate time slots and programmes can be chosen
Messages can be communicated with sight, sound and motion
