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Supply and Demand Based Pricing Flashcards | StudBud
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Supply and Demand Based Pricing
Supply and Demand Based Pricing
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Questions
10
Answers
1
You cannot encourage customer loyalty with supply and demand based pricing.
False
True
2
What is an example of supply and demand?
Starbucks gaining customers through social media
Pizza Hut Releasing new pizza
Delta Airlines changing prices with the season
Apple coming up with new features
3
What do you need to understand in order to be successful with this pricing strategy.
All options
Your target market
Your competition
The economy
4
In supply and demand based pricing, how do consumers affect it?
All the above
Consumers' willingness to pay for a product
Consumers' willingness to sell a product
Consumers' willingness to review a product
5
How can supply and demand pricing be good for a business?
If supply is low and demand is high, prices can be marked up
Customers will buy more products
If supply is high and demand is low, prices must be marked down
Supply and demand will bring in new customers
6
Supply and Demand is good for businesses with fixed cost.
False
True
7
What is an advantage of supply and demand?
Competitors may have the same products, with lower prices
supply and demand increases profit
Most companies use this strategy
Allow businesses to maximize revenue
8
More is demanded at a lower price than at a higher price.
False
True
9
A disadvantage is that if your company has high fixed costs, lowering prices during a low season can lead to loss.
False
True
10
If the demand for a product or service is low, the price will be ___.
Non existent
Mid
High
Low
