The Price Strategy

10 Questions | Total Attempts: 711

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Strategy Quizzes & Trivia

This quiz is will assess whether or not you understand the fundamentals for price strategy considerations.


Questions and Answers
  • 1. 
    When setting the price for a good, a service, or and idea, which of the following is not a factor to consider?
    • A. 

      Costs

    • B. 

      Supply and Demand

    • C. 

      Competition

    • D. 

      Location

  • 2. 
    When demand for your product is high and supply is low, you can command a high price
    • A. 

      True

    • B. 

      False

  • 3. 
    Which cost changes depending on the number of units sold
    • A. 

      Variable Costs

    • B. 

      Fixed Costs

    • C. 

      Unit Pricing

    • D. 

      ROI

  • 4. 
    Price gouging is the practice of letting supply and demand determine the price of a good or service
    • A. 

      True

    • B. 

      False

  • 5. 
    Calculate the return on investment (ROI) if you invest $100,000 in new productive equipment, and you want a 30 percent return
    • A. 

      $3,000

    • B. 

      $30,000

    • C. 

      $10,000

  • 6. 
    Market share is a business's portion of the total sales generated by all competing companies in a given market
    • A. 

      True

    • B. 

      False

  • 7. 
    • A. 

      Select a basic approach to pricing

    • B. 

      Determine your pricing policy

    • C. 

      Use a random approach

    • D. 

      Set a price based on the stage of the product life cycle

  • 8. 
    Which pricing method is used in the introduction stage of the product life cycle
    • A. 

      Penetration Pricing

    • B. 

      Unit Pricing

    • C. 

      Cost Benefit Analysis

  • 9. 
    Involves charging a high price to recover costs and maximize profit as quickly as possible
    • A. 

      Penetration pricing

    • B. 

      Unit pricing

    • C. 

      Price skimming

  • 10. 
    This is a pricing technique in which higher-that-average prices are used to suggest status and prestige to the customer
    • A. 

      Discount pricing

    • B. 

      Prestige pricing

    • C. 

      Promotional pricing