Managing Pricing and Sales Promotions : Marketing Management - Quiz

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

Manufacturing efficiency

Competitor’s costs

Customer’s perceived value

Company’s profit targets

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

Temporarily reducing price to boost sales

Using dynamic pricing software

Setting prices based on customer lifetime value

Charging the same price in all markets

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

Dynamic pricing

Bundle pricing

Skimming pricing

Psychological pricing

4. The “reference price” concept refers to:

Government-mandated prices

Prices quoted by competitors

Prices derived from cost analysis

Prices customers expect to pay

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

Differential pricing

Value pricing

Prestige pricing

Loss leader pricing

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

Contests

Coupons

Premiums

Rebates

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

Break-even pricing

Value-based pricing

Cost-plus pricing

Target-return pricing

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

Market skimming pricing

Market penetration pricing

Loss leader pricing

Premium pricing

9. “Trade promotions” are primarily targeted at:

Consumers

Competitors

Retailers and wholesalers

Media agencies

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

The total of production and distribution costs

The value sellers receive from suppliers

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

The cost of manufacturing the product

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