Managing Pricing and Sales Promotions : Marketing Management - Quiz

1. Price elasticity of demand measures:

How cost changes with production volume

The distribution channel efficiency

The sensitivity of demand to price changes

The rate of market growth

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

Production costs

Competitor’s reactions

Customer perception of price

Market share goals

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

The cost of manufacturing the product

The total of production and distribution costs

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

4. The “reference price” concept refers to:

Prices derived from cost analysis

Prices customers expect to pay

Government-mandated prices

Prices quoted by competitors

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

Advertising

Coupons

Personal selling

Trade allowance

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

Trade shows

Rebates

Sweepstakes

Coupons

7. “Trade promotions” are primarily targeted at:

Retailers and wholesalers

Consumers

Media agencies

Competitors

8. A company that sets high initial prices to skim maximum revenue layer by layer is using:

Penetration pricing

Parity pricing

Skimming pricing

Competitive pricing

9. Which is not a factor affecting pricing decisions?

Costs

Brand positioning

Competitors’ prices

Employee satisfaction

10. 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

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