Managing Pricing and Sales Promotions : Marketing Management - Quiz

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

Setting prices based on customer lifetime value

Temporarily reducing price to boost sales

Using dynamic pricing software

Charging the same price in all markets

2. Price elasticity of demand measures:

The sensitivity of demand to price changes

The rate of market growth

The distribution channel efficiency

How cost changes with production volume

3. The “reference price” concept refers to:

Prices derived from cost analysis

Prices customers expect to pay

Government-mandated prices

Prices quoted by competitors

4. “Trade promotions” are primarily targeted at:

Consumers

Media agencies

Retailers and wholesalers

Competitors

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

Contests

Premiums

Rebates

Coupons

6. Which pricing strategy adjusts prices continually to meet market conditions?

Dynamic pricing

Bundle pricing

Skimming pricing

Psychological pricing

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

Trade shows

Rebates

Sweepstakes

Coupons

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

Trade-in allowance

Promotional discount

Price pack

Value discount

9. The term “price discrimination” refers to:

Setting prices based on competitor cost

Offering seasonal discounts

Charging different prices to different buyers for the same product

Charging all customers the same price

10. Which pricing method begins with determining the desired profit margin?

Value-based pricing

Break-even pricing

Target-return pricing

Cost-plus pricing

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