Pricing

Question 1

Price reflects money, time and effort

Answer 1

True

Question 2

Revenue is the result of

Answer 2

Quantity x Price

Question 3

Profit is bottom line as

Answer 3

Revenue - Cost

Question 4

Price Setting Process

Answer 4

1- Define Pricing Objectives
2- Evaluate Demand
3- Determine the Costs
4- Analyze the competitive price environment
5- Choose a price
6- Monitor and evaluate the effectiveness of the price

Question 5

Pricing Objectives

Answer 5

• Profit Maximization
• Volume Maximization
• Survival Pricing

Question 6

Break Even Analysis

Answer 6

Determines how much is needed to sell and earn profit

Question 7

Pricing strategies

Answer 7

-Match the competitor’s price
-Price lower than the competitor
-Price higher than the competitor with a superior product

Question 8

Choosing a price

Answer 8

-References price
-Underpricing

Question 9

Price increase strategies

Answer 9

-Unbundling
-Escalator clause
-Shrinkflation
-Markup pricing
-Odd/even pricing
-Prestige pricing
-Loss leader pricing
-Seasonal Discount
-Price Bundling

Question 10

Dynamic Pricing

Answer 10

Grow explosively

Question 11

Global Pricing

Answer 11

-Gray Market
-Tariffs
-Dumping

Question 12

Issues in pricing

Answer 12

-Price discrimination
-Price fixing
-Predatory pricing
-Deceptive pricing