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Factors Affecting Pricing Decisions Flashcards | StudBud
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Factors Affecting Pricing Decisions
Factors Affecting Pricing Decisions
15 terms
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StudBud Administration
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NC Mktg. Obj. 4.03
Flashcards
15 cards
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Practice quiz
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Questions
15
Answers
1
It costs a bakery $6 to make a pie. They sell each pie for $9.50. The $3.50 difference is known as
demand.
markup.
elasticity.
capital.
2
Which of the following is true of a business’s pricing objectives:
They must be adjusted from time to time.
They are not affected by changing circumstances.
They are chosen for the life of the business.
They must be changed each fiscal year.
3
Which strategy makes customers think they are buying a product cheaper than it actually is?
Promotional pricing
Psychological pricing
Premium pricing
Destroyer pricing
4
What are the 4 P's?
Price, Product, Place, Profit
Product, Price, Place, Production
Place, Product, Profit, Production
Price, Product, Place, Promotion
5
The national economy is always changing. These ups and downs in economic activity are known as
growth periods.
recessions.
profit cycles.
business cycles.
6
A business that sets its prices lower than those of competitors will not make a profit unless it also
reduces its inventory.
increases promotion.
controls its costs.
enlarges its staff.
7
Which of the following must a business accomplish through selling price:
Company valuation
Maintain market share
Pay all product costs
Acquire start-up capital
8
Which pricing strategy calculates the cost of making the product and adds on a % for profit?
Cost plus pricing
Market skimming
Premium pricing
Loss leaders
9
This type of strategy is used for products targeted at the 'luxury' market segment
Skimming pricing
Promotional pricing
Destroyer pricing
Premium pricing
10
A business that uses sales-oriented pricing objectives wants to increase the
inefficiency of its human resources.
total amount of its income from sales.
amount of promotion it uses.
cost of its marketing efforts.
11
Which strategy is being used when hotel prices are more expensive at Christmas time?
Discriminatory pricing
Promotional pricing
Premium pricing
Psychological pricing
12
The selling prices of products help customers to _____
spend freely.
determine the amount of markup.
find a company’s fixed costs.
make buying decisions.
13
When a price is lowered temporarily in order to boost sales in the short term
Loss leaders
Discrimination pricing
Market skimming
Promotional pricing
14
Which of these factors will NOT affect price?
The colour of the packaging
The target market segment
The product life cycle
The price charged by competitors
15
Which of these are NOT an example of promotional pricing?
Buy one get one free
Priced at 99p
Buy 1 get 1 half price
Buy 2 for the price of 1
