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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