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Price Selection: How Businesses Select the Correct Price for Products

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Why is a pricing strategy important?

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1. What strategy consists of charging a high introductory price in tandem with heavy promotion and later slowly dropping the price?

2. You and your sales associates are having a brainstorming session. One of the sales associates suggests that charging a low price for the company's product initially will help to capture the largest market share from your target market. How should you price your product?

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About This Quiz & Worksheet

This quiz and corresponding worksheet quickly gauge your understanding of the process behind pricing new products. You'll be quizzed on the definition of different strategies as well as why a pricing strategy is important.

Quiz & Worksheet Goals

This quiz and worksheet combo can help you review:

  • The strategy that involves charging a high introductory price with a promotion and then slowly dropping the price
  • What pricing strategy tries to reach the their target market by charging a low price
  • How unique products should be priced

Skills Practiced

This quiz and worksheet can help you practice the following skills:

  • Interpreting information - verify that you can read information regarding the pricing strategy that has researchers see what their competitors are charging for similar products and interpret it correctly
  • Knowledge application - use your knowledge to answer questions about why pricing strategies are important
  • Distinguishing differences - compare and contrast topics from the lesson, such as the differences between various pricing strategies

Additional Learning

To learn more about product price selection, review the accompanying lesson called Price Selection: How Businesses Select the Correct Price for Products. This lesson covers the following objectives:

  • Determine how new products are priced
  • Compare and contrast the three main pricing strategies
  • See examples on how each strategy works
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