Managing Pricing and Sales Promotions : Marketing Management - Quiz

1. The “psychological pricing” approach mainly focuses on:

Production costs

Customer perception of price

Competitor’s reactions

Market share goals

2. Price elasticity of demand measures:

How cost changes with production volume

The distribution channel efficiency

The rate of market growth

The sensitivity of demand to price changes

3. Which pricing objective focuses on capturing market share quickly?

Loss leader pricing

Premium pricing

Market penetration pricing

Market skimming pricing

4. What is the main purpose of sales promotion?

To reduce distribution costs

To increase long-term loyalty

To improve production efficiency

To provide immediate incentive to buy

5. Which of the following best defines price in marketing?

The cost of manufacturing the product

The sum of all values that buyers exchange for the benefits of having or using a product or service

The value sellers receive from suppliers

The total of production and distribution costs

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

Setting prices based on customer lifetime value

Charging the same price in all markets

Temporarily reducing price to boost sales

Using dynamic pricing software

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

Sweepstakes

Rebates

Coupons

Trade shows

8. Which term refers to selling products below cost to attract customers?

Differential pricing

Prestige pricing

Loss leader pricing

Value pricing

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

Break-even pricing

Target-return pricing

Cost-plus pricing

Value-based pricing

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

Customer’s perceived value

Manufacturing efficiency

Competitor’s costs

Company’s profit targets

Question 1 of 10