Price And Promotions Quiz

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| By Patrickjenkins
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Patrickjenkins
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Quizzes Created: 6 | Total Attempts: 6,574
| Attempts: 264
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  • 1/10 Questions

    Which of the following is a factor the affects prices

    • Type of product you carry
    • Supply and demand
    • How many family members
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This quiz will give me an indication of how well your teams did in teaching each other, and if I need to revisit or reteach concept.

Price And Promotions Quiz - Quiz

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  • 2. 

    Elastic demand refers to situations in which a change in price creates a change in demand

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Elastic demand refers to situations where a change in price leads to a significant change in demand. This means that consumers are highly responsive to price changes, and a small increase or decrease in price can result in a large increase or decrease in the quantity demanded. In other words, when demand is elastic, consumers are more likely to adjust their purchasing decisions based on price fluctuations. Therefore, the statement "Elastic demand refers to situations in which a change in price creates a change in demand" is true.

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  • 3. 

    Promotion is persuasive communication

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Promotion is a form of communication that aims to persuade or influence individuals to take a desired action, such as purchasing a product or service. Through various promotional tools and techniques, companies use persuasive messages to create awareness, generate interest, and ultimately convince consumers to make a purchase. Therefore, it can be concluded that promotion is indeed a form of persuasive communication.

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  • 4. 

    A technique that involves setting prices that all end in either odd or even numbers is known as:

    • Prestige Pricing

    • Odd-Even Pricing

    • Multiple-Unit Pricing

    Correct Answer
    A. Odd-Even Pricing
    Explanation
    Odd-Even Pricing is a technique that involves setting prices that all end in either odd or even numbers. This strategy is used to create a perception of lower prices by avoiding round numbers. It is believed that odd prices, such as $9.99, appear smaller and more affordable to consumers compared to round prices. On the other hand, even prices, like $10.00, are often associated with quality and prestige. This pricing technique aims to influence consumer behavior and increase sales by manipulating their perception of price.

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  • 5. 

    Which of the following is not part of the promotional mix

    • Personal Selling

    • Advertising

    • Sales Promotion

    • Location based customer tracking

    Correct Answer
    A. Location based customer tracking
    Explanation
    Location based customer tracking is not part of the promotional mix because it is not a direct promotional tool used to communicate with customers or persuade them to make a purchase. The promotional mix typically includes personal selling, advertising, and sales promotion, which are all active methods of promotion that involve direct communication and persuasion. Location based customer tracking, on the other hand, is a passive method that involves tracking and analyzing customer behavior and data for marketing purposes, but it does not directly communicate with or persuade customers.

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  • 6. 

    Calculate the break-even point for a music CD that costs $12 to make and market and that will be sold for $15.  The total quantity that will be sold at that price is 200,000

    • 160,000

    • 2,400,000

    • 500

    Correct Answer
    A. 160,000
    Explanation
    The break-even point is the point at which total revenue equals total costs, resulting in neither profit nor loss. In this case, the cost to make and market the music CD is $12, and it will be sold for $15. The break-even point can be calculated by dividing the total costs by the selling price per unit. Therefore, the break-even point is $12 divided by $15, which equals 0.8. To find the quantity at the break-even point, we divide the total quantity sold at that price (200,000) by 0.8, which equals 160,000 units.

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  • 7. 

    Consumers will buy only so much of a given product, even though the price is low, represent what

    • Law of diminishing marginal utility

    • Break-even point

    • Demand elasticity

    Correct Answer
    A. Law of diminishing marginal utility
    Explanation
    The correct answer is law of diminishing marginal utility. This concept states that as a consumer consumes more units of a product, the satisfaction or utility derived from each additional unit decreases. Therefore, even if the price of the product is low, consumers will eventually reach a point where they have obtained enough utility and will not buy any more of the product.

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  • 8. 

    Bundle pricing refers to price adjustments required because of the location of the customer

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Bundle pricing refers to offering a group of products or services together at a discounted price. It is not related to price adjustments based on the location of the customer. Therefore, the given statement is false.

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  • 9. 

    This type of advertising is directed to a targeted group of prospects and customers rather than a mass audience

    • Institutional promotion

    • Product promotion

    • Direct marketing

    Correct Answer
    A. Direct marketing
    Explanation
    Direct marketing is the correct answer because it refers to a form of advertising that is specifically aimed at a targeted group of prospects and customers, rather than a mass audience. Unlike institutional promotion, which focuses on promoting the overall image and reputation of a company, or product promotion, which highlights the features and benefits of a specific product, direct marketing aims to directly reach and engage with potential customers on an individual level. This can be done through various channels such as direct mail, email marketing, telemarketing, or targeted online advertising.

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  • 10. 

    There are 7 steps in determining prices

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement that there are 7 steps in determining prices is false. The question is asking whether the statement is true or false, and the correct answer is false. This means that there are not 7 steps in determining prices.

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  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Mar 01, 2011
    Quiz Created by
    Patrickjenkins
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