Managing Pricing and Sales Promotions : Marketing Management - Quiz

1. 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

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

Target-return pricing

Value-based pricing

Cost-plus pricing

Break-even pricing

3. Which of the following is a consumer promotion tool?

Advertising

Coupons

Trade allowance

Personal selling

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

Price pack

Value discount

Promotional discount

Trade-in allowance

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

Competitor’s costs

Company’s profit targets

Customer’s perceived value

Manufacturing efficiency

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

Contests

Premiums

Rebates

Coupons

8. “Trade promotions” are primarily targeted at:

Media agencies

Consumers

Competitors

Retailers and wholesalers

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

Value pricing

Differential pricing

Prestige pricing

Loss leader pricing

10. A rebate is best defined as:

A long-term price reduction

A free sample with purchase

A discount before purchase

A cash refund after purchase

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