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WorksheetsY9 Marketing Mix: Price
Total questions: 56
Worksheet time: 42mins
Definition - The business will charge a price based on the production costs.
Cost-Added Pricing
Cost-Plus Pricing
Competitive Pricing
Cost-Minus Pricing
Actions of competitors are completely ignored by businesses that use Cost-Plus Pricing?
True
False
Consideration into what customers are willing to pay is the main focus of Market-Led Pricing Strategies?
False
True
Market Research is...
Primary and Secondary
Expensive
Time consuming
A waste of business time and efforts
Essential for business success
Definition - Businesses will charge similar prices to other businesses. Is an example of...
Penetrative Pricing
Competition Pricing
Cost-Plus Pricing
Competitive Pricing
Businesses in a niche market are likely to have
Low profit margins
High profit margins
Is the following statement correct: "Broadly defined, price is the sum of all of the values that consumers give up in order to gain the benefits of having or using the product or service."
TRUE
FALSE
Which of the following is considered as cost-based pricing?
Production, labor and material cost
Combination of Profit & Volume
Position of the Competition
Status-Quo Pricing
Elements involved in marketing a good or service that interact significantly with each other.
Marketing Mix
Product
Place
Price
How many Parts are in the Marketing Mix?
7
8
2
4
_____________ decisions dictate how much to charge for goods and services in order to MAKE A PROFIT.
Pricing
Promotion
Selling
Market Planning
Which element of the marketing mix is a source of revenue for the business?
Product
Place
Promotion
Price
A factor that does not influence price is:
The cost of production
The cost of the item 10 years ago
The competitive environment
Whether it is a new or existing product to the market
When customers rushed to H&M to buy jeans for $19.99, the Gap decided to offer customers a similar discount. Under which marketing function does this action fall?
Place
Price
Product
Promotion
Business that produce only one product will use this pricing method
Cost plus pricing
Competitive Pricing
A business that has many competitors will use this pricing method
Premium pricing
Competitive pricing
A business that sells innovative technological products uses this type of pricing method
Price skimming
Cost plus pricing
A business that wants to increase sales or enter a new market uses this type of pricing
Promotional pricing
Competitive pricing
A business that sells luxury items and wants the product to be exclusive, use this type of pricing
Price skimming
Premium pricing
Which of these statements about customer perception of price is NOT TRUE?
The actual price may be a bigger factor to some segments
Sometimes buyers will tolerate a wide range of prices based on the situation
Customers may perceive the quality of an item based on its price
The breakeven price may be important to customer acceptance of a price
One airline institutes a new charge for luggage, and the other airlines each begin to charge for this same item. In this scenario, what is the main factor affecting the price of the product?
Cost of running the business
Demand for the product
Cost of making the product
Competitor's price
Which pricing objective focuses on generating the highest possible profits?
Increase market share
Maximize profits
Match the competition
All of the above
Which pricing method sets the price of the product on what the customer is willing to pay?
Cost-oriented pricing
Market-share pricing
Demand-oriented pricing
Competition-oriented pricing
Which statement describes the law of demand?
As prices rise, quantity demanded decreases
As prices rise, demand decreases.
As prices fall, quantity demanded decreases.
As prices fall, demand decreases.
The amount of a good or service that producers are willing and able to sell at all possible prices during a given period of time.
Supply
Demand
Factor of Production
Production
The market equilibrium price is the price at which
surpluses depress the number of goods supplied
shortages and surpluses will have no effect on the market
the government will not intervene in the market
the quantity demanded is the same as the quantity supplied
When there is a shortage the price will usually?
rise
fall
remain the same
equilibrium
Amazon Prime is selling Smencils. There are only a few packs left and they are very popular. What will happen to the price?
The price will go up.
The price will go down.
The week before Halloween, pumpkin patches all around the country sell lots of pumpkins. What will happen to the price of pumpkins on the day after Halloween?
The price will go up.
The price will go down.
Millions of people see a famous sports star drinking apple juice on television. The fans think apple juice helps make the athlete strong. What will happen to the price of apple juice?
The price will go up.
The price will go down.
When the supply goes higher, the demand will be______
Lower
Same
Higher
No more
When the supply goes lower, the demand will be____
Higher
Lower
No more
Its winter, no one likes to buy short pants, the supply is high, no demand, the short pants will be ______
Change into other things
Selling everywhere
If the price of printers goes down, what happens in the market for ink cartridges?
Supply increases.
Supply decreases.
Demand increases.
Demand decreases
Which statement best describes "Price"?
The cost of producing items
The amount customers are charged for items
The profit earned from selling items
Creating an image for a product in the customer's mind is called:
Advertising
Labeling
Positioning
Distributing
Why are Nike shoes so EXPENSIVE? Pick the best answer.
NIKE looks great for all casual activities
Runners run smoothly when wearing this type of shoes
Nike has cutting-edge technology you won't find anywhere else
Nike is famous that's why they are expensive
In setting your pricing strategy, we must NOT more focus on...
PROFIT
COST OF MATERIALS
CUSTOMER
COMPETITORS
What do you call a condition in the market that influences over price?
number of buyers
number of sellers
number of products
depends on the situation
As a future marketer, what would be your first priority in setting your prices.
Product quality
Product cost
overall cost
more profit
A movie theater sells its tickets at lower prices to students and seniors. This is an example of:
Prompt payment
Price discrimination
Price skimming
Stability pricing
The price skimming consists of setting high prices and reducing them over time to maximize long-term profit.
True
False
Which pricing strategy uses the
buyers’ perceptions of value rather than seller’s cost?
Customer Value-Based Pricing
Competition-Based Pricing
Cost-Based Pricing
Dynamic Pricing
Mark-Up
Working out how much a product cost and then adding a percentage
Working out how much the product cost and increasing the price by the required profit
What pricing strategy involves setting a price based on the production costs?
Cost-Added Pricing
Cost-Plus Pricing
Competitive Pricing
Cost-Minus Pricing
What term is used to describe creating an image for a product in the customer's mind?
Advertising
Labeling
Positioning
Distributing
Which pricing objective focuses on generating the highest possible profits?
Increase market share
Maximize profits
Match the competition
All of the above
What pricing method involves setting the price based on what the customer is willing to pay?
Cost-oriented pricing
Market-share pricing
Demand-oriented pricing
Competition-oriented pricing
When the price of a product decreases, what typically happens to the demand for that product?
Demand increases
Demand decreases
Demand remains the same
No impact on demand
What is the main factor that influences the price of a product when competitors start charging for a previously free service?
Cost of running the business
Demand for the product
Cost of making the product
Competitor's price
