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- 1. Multiple Choice
Which statement best describes "Price"?
The cost of producing items
The amount customers are charged for items
The profit earned from selling items
- 2. Multiple Choice
What is price skimming?
An initially high price charged to customer which will reduce over time
An initially low price charged to customer which will increase over time
A steady price charged to customer regardless of product age
- 3. Multiple Choice
What is Loss Leader pricing?
A product is sold at production cost price
A product is sold at less than cost price
A product is sold to make a small profit
- 4. Multiple Choice
What is an advantage of price skimming?
Gains market share
Covers costs and breaks even
Allows an organisation to make the largest profit possible
- 5. Multiple Choice
What is Promotional pricing?
When a business offers different prices to different customers
When a business reduces price to below production cost to clear stock
When a business offers a short term special offer such as buy one get one free to gain interest and increase sales
- 6. Multiple Choice
What is the selling price of an item which costs £5 to make and has a 50% mark up (profit added)?
£7.50
£5.00
£10.00
- 7. Multiple Choice
What is the best pricing strategy for a well known firm selling a new hi-tech, high quality mobile phone?
Loss Leader
Price Skimming
Market Leader
- 8. Multiple Choice
What is meant by Psychological pricing strategy?
Items are offered at an uneven number to appear cheaper encouraging sales (eg £9.99)
Items are sold using a special promotional offer which is brightly coloured and attracts attention
Items are sold at production cost price to attract customers into the store and increase purchases
- 9. Multiple Choice
What is the aim of Loss Leader pricing strategy?
To increase profit
To make customers aware of entire product range
To attract new and existing customers and increase sales of other items
- 10. Open Ended
What is one question you still have about pricing strategies?
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