Managing Pricing and Sales Promotions : Marketing Management - Quiz

1. A temporary price reduction used to stimulate short-term sales is known as:

Value discount

Price pack

Trade-in allowance

Promotional discount

2. Price elasticity of demand measures:

The distribution channel efficiency

The sensitivity of demand to price changes

How cost changes with production volume

The rate of market growth

3. The concept of “value-based pricing” means pricing is based on:

Competitor’s costs

Manufacturing efficiency

Company’s profit targets

Customer’s perceived value

4. What is the main purpose of sales promotion?

To reduce distribution costs

To increase long-term loyalty

To provide immediate incentive to buy

To improve production efficiency

5. The term “price discrimination” refers to:

Offering seasonal discounts

Charging all customers the same price

Setting prices based on competitor cost

Charging different prices to different buyers for the same product

6. Which is not a factor affecting pricing decisions?

Brand positioning

Employee satisfaction

Costs

Competitors’ prices

7. Which sales promotion tool offers customers the chance to win prizes?

Rebates

Premiums

Coupons

Contests

8. “Trade promotions” are primarily targeted at:

Retailers and wholesalers

Competitors

Consumers

Media agencies

9. Which of the following is an example of promotional pricing?

Temporarily reducing price to boost sales

Setting prices based on customer lifetime value

Using dynamic pricing software

Charging the same price in all markets

10. Which of the following is a type of business promotion?

Rebates

Coupons

Sweepstakes

Trade shows

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