Managing Pricing and Sales Promotions : Marketing Management - Quiz

1. What is the main purpose of sales promotion?

To provide immediate incentive to buy

To increase long-term loyalty

To reduce distribution costs

To improve production efficiency

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

Value-based pricing

Cost-plus pricing

Break-even pricing

Target-return pricing

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

Rebates

Trade shows

Sweepstakes

Coupons

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

Promotional discount

Price pack

Trade-in allowance

Value discount

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

Setting prices based on customer lifetime value

Temporarily reducing price to boost sales

Charging the same price in all markets

Using dynamic pricing software

6. Price elasticity of demand measures:

The distribution channel efficiency

The sensitivity of demand to price changes

The rate of market growth

How cost changes with production volume

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

Market share goals

Production costs

Customer perception of price

Competitor’s reactions

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

Loss leader pricing

Market skimming pricing

Premium pricing

Market penetration pricing

9. Which is not a factor affecting pricing decisions?

Costs

Competitors’ prices

Brand positioning

Employee satisfaction

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

Bundle pricing

Dynamic pricing

Skimming pricing

Psychological pricing

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