Copyright

ILTS Business: Product Pricing & Selling Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. What is the price against which buyers compare the sales price of the product to the actual price?

Question 2 2. If a butter manufacturer raises prices by 10% and the quantity of butter demanded by consumers falls 20%, this would be an example of _____.

Question 3 3. What is used to reward customer loyalty and encourage large purchase amounts?

Question 4 4. A period of reduced economic activity is called a(n) _____.

Question 5 5. Which pricing type's ultimate goal is to reach a particular level of profit by using price to get sales that produce a certain profit per unit?

Page 2

Question 6 6. Offering a free movie ticket with the purchase of hotel room is an example of which type of pricing strategy?

Question 7 7. A supply and demand chart or schedule is the _____

Question 8 8. Your company is experiencing some financial difficulties and needs to increase its profits soon. Which of the following should it NOT do in order to increase profits?

Question 9 9. A demand chart or schedule is the _____

Question 10 10. What type of pricing strategy is Speedy Cellular using when it introduces a new smartphone at a price below all of its competitors ?

Page 3

Question 11 11. 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?

Question 12 12. Why is a pricing strategy important?

Question 13 13. Carlos bought a new laptop using a store's credit card, and the store offered to reduce the laptop's price by $50 if he paid the entire bill within 6 months. This is an example of a _____ discount.

Question 14 14. Airline companies tend to utilize what type of pricing decision?

Question 15 15. What is the price at which demand and supply are equal?

Page 4

Question 16 16. If a product has a strong unique advantage that is not easily copied, how should it be priced?

Question 17 17. Which type of pricing strategy depends on promotions/sales to temporarily reduce prices?

Question 18 18. How will Advance Electronics implement a price skimming strategy when it introduces its' new game box?

Question 19 19. What type of pricing strategy offers one price and avoids constant sales discounts and price changes?

Question 20 20. Inflation is defined as _____.

Page 5

Question 21 21. What pricing objective entails focusing on value and the customer's expectations?

Question 22 22. Which type of discount helps to create a steady demand stream of product for the manufacturer?

Question 23 23. Which of the following is NOT one of the 4 P's of the marketing mix?

Question 24 24. What is the difference between 'average total cost' (ATC) and 'average variable cost' (AVC)?

Question 25 25. What strategy consists of charging a high introductory price in tandem with heavy promotion and later slowly dropping the price?

Page 6

Question 26 26. Why would an airline company utilize a status quo pricing strategy?

Question 27 27. Which objective concerns specific rates of profit and using pricing strategies to get to a measurable return on investment to placate stockholders?

Question 28 28. When the final selling price reflects cost increases occurred between the time the order is placed and the time it is delivered, _____ has occurred.

Question 29 29. What is the result when the marginal cost (MC) is less than the average variable cost (AVC)?

Question 30 30. Katerine works at a large catering company. When Katerine gave her boss, Joe, a report on what the competition was doing he said he wasn't interested in that or even the profit, that his only goal was to increase how many products people purchase. What is this strategy called?

ILTS Business: Product Pricing & Selling Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

ILTS Business, Marketing, and Computer Education (171): Test Practice and Study Guide  /  Business Courses
Support