The Price Strategy

10 Questions | By Patrickjenkins | Updated: Mar 22, 2022 | Attempts: 4258

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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.

Check all of the following that are the steps in determining the pricing strategy
- 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