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3.03 Pricing Strategies Part 1
Test Description: 3.03 Pricing Strategies Part 1
Instructions: Answer all questions to get your test result.
1) Which of the following is the least important factor when selecting a pricing strategy
A
Location of store
B
Competitor prices
C
Cost of merchandise
D
Promotional strategy
2) A professional football team that increases ticket prices for next season because the team is on a winning streak is selecting a pricing strategy based on
A
what the market will bear.
B
the location of the target market.
C
previous winning potential.
D
the number of games played.
3) . If your goal is to avoid storing or discarding merchandise, what pricing strategy should you select?
A
Close out
B
Cost plus markup
C
Competitive
D
Versioning
4) When a hockey team sets its ticket prices so it can achieve its goal of increasing its fan base by five percent,the hockey team is establishing a price objective in conjunction with a __________ goal.
A
licensing
B
cost
C
contingency
D
sales
5) A sporting event setting ticket prices based on potential customers' ability to pay is an example of a price
A
restriction.
B
motive.
C
promotion
D
objective.
6) A college athletic department sets the football ticket prices so that the organization earns income of $12 per ticket after covering expenses. This is an example of a price objective based on
A
competition.
B
profitability.
C
demand.
D
volume.
7) Why do sportswear stores calculate break-even in units?
A
To identify which costs are variable and which are fixed
B
To identify which products they should purchase for resale.
C
To find out how much profit they will earn after they break even
D
To determine how many products they must sell to break even
8) .Why would an event marketer promote an upcoming celebrity golf tournament at an exclusive course as a once-in-a-lifetime event?
A
To have expensive media coverage
B
To obtain more industry support
C
To increase advertising costs
D
To generate higher ticket prices
9) An increase in ticket prices is most accepted by fans if a sport has a(n) __________ demand for tickets.
A
elastic
B
unitary
C
inelastic
D
low
10) Penetration pricing is usually in the introductory stage of the life cycle and it usually involves______
A
pricing at a discount
B
using odd-even pricing strategies
C
pricing relatively low
D
pricing relatively high
11) When setting ticket prices for professional baseball games, the organization considers the team's performance, which is a(n) __________ factor.
A
ethical
B
developmental
C
operational
D
situational
12) Psychological pricing is a strategy in which prices are set in odd number right below an even price. Which is a strategy of odd-even -pricing
A
1.00
B
.05
C
29.95
D
25.00
13) Which is the correct definition of price ceiling
A
the price below the highest price
B
the only price allowed by the company
C
the price above the highest price
D
the highest price allowed to be charged for an item.
14) __________ is the activity of estimating the quantity of a product or service that consumers will purchase
A
Generalizing
B
Assumption
C
Forecasting
D
Setting a price floor
15) Fixed cost tends to __________
A
stay the same
B
change with demand
C
vary to some extent
D
change with changes in volume
16) Variable Cost
A
never changes
B
changes when sales volume goes up or down
C
stay the same constantly
D
changes when sales go up only
17) A business does not make a _______ until it passes the break even point
A
revenue decrease
B
revenue increase
C
profit
D
loss
18) Why do businesses calculate the break-Even point?
A
Determining capital needs
B
all of the above
C
Relocating the business
D
For Setting prices
19) The product mix strategies is the collection of products and services that a company chooses to offer its _______
A
competitors
B
Like businesses
C
employees
D
market
20) Product skimming involves setting the prices relatively _______
A
low
B
less than the competition
C
high
D
equal to the competition
*select an answer for all questions
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