Entrepreneurship and Small Business Management

Chapter 11: The Price Strategy

Practice Test

1
One factor that affects price is_________.
A)competition
B)price skimming
C)product positioning
D)location
2
____________costs and expenses are subject to change depending on the number of units sold.
A)Sensitive
B)Fixed
C)Elastic
D)Variable
3
___________is the pricing of goods on the basis of cost per unit of measure.
A)Price fixing
B)Unit pricing
C)Price strategy
D)Resale price maintenance
4
One deceptive and illegal method of selling is called_____________.
A)product positioning
B)discount pricing
C)bait-and-switch
D)supply and demand
5
_____________is a business's portion of the total sales generated by all competing businesses in a given market.
A)Market share
B)Value chain
C)Target market
D)Market segment
6
A____________strategy involves finding out what your customers are willing to pay for your product.
A)cost-based pricing
B)demand-based pricing
C)competition-based pricing
D)marketing-mix
7
The amount added to the cost of your product or service to cover expenses is called your__________.
A)markdown
B)pricing stragegy
C)markup
D)return on investment
8
There are two types of pricing policies: _________________policy and one-price policy.
A)introductory-price
B)cost -based
C)basic-price
D)flexible-price
9
All products move through a four-stage__________.
A)life cycle
B)marketing mix
C)market share
D)introduction
10
____________are given to distribution-channel members who provide marketing functions for the manufacturer.
A)Trade discounts
B)Seasonal discounts
C)Quantity discounts
D)Cash discounts
11
The__________point is the point at which the gain from an economic activity equals the costs and expenses of making or distributing the product.
A)variable-cost
B)selling-price
C)fixed-cost
D)break-even
12
As a rule, businesses decide on a _______markup or percentage of markup when determining a price for a product or service.
A)flexible
B)cash
C)standard
D)variable
13
To reduce inventory, businesses sometimes need to calulate the________to arrive at a sale price.
A)markdown
B)discount
C)markup
D)percentage
14
A/An________is a reduction in price to the customer.
A)introductory price
B)price strategy
C)discount
D)variable
15
One change a business can make to its pricing strategy is revising its_______________.
A)marketing mix
B)terms of sale
C)product positioning
D)markups
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