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Praxis Marketing: Pricing 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. Which of the following is NOT one of the 4 P's of the marketing mix?

Question 2 2. What is the price at which demand and supply are equal?

Question 3 3. A supply and demand chart or schedule is the _____

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

Question 5 5. Which of the following describes profit maximization pricing?

Page 2

Question 6 6. Why is a pricing strategy important?

Question 7 7. 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 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. What pricing objective entails focusing on value and the customer's expectations?

Question 10 10. How could Advance Electronics implement a price skimming strategy when it introduces its new game box?

Page 3

Question 11 11. One of the toy company's products is a baby item that simulates a car driving. It can be attached to a crib to help soothe babies to sleep. No other product like this is available. What type of demand would this product likely have?

Question 12 12. Which type of pricing method determines the sales volume that must be reached before total revenue equals total costs?

Question 13 13. What is used to reward customer loyalty and encourage large purchase amounts?

Question 14 14. Which type of pricing strategy depends on promotions/sales to temporarily reduce prices?

Question 15 15. What type of pricing strategy offers one price and avoids constant sales discounts and price changes?

Page 4

Question 16 16. Inflation is defined as _____.

Question 17 17. 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 18 18. If a product has a strong unique advantage that is not easily copied, how should it be priced?

Question 19 19. 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?

Question 20 20. What is the difference between 'average total cost' (ATC) and 'average variable cost' (AVC)?

Page 5

Question 21 21. What is sales-oriented pricing based on?

Question 22 22. Airline companies tend to utilize what type of pricing decision?

Question 23 23. What strategy consists of charging a high introductory price in tandem with heavy promotion and later slowly dropping the price?

Question 24 24. 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 25 25. Which 'P' of the marketing mix has the most flexibility to change?

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Question 26 26. What is the result when the marginal cost (MC) is less than the average variable cost (AVC)?

Question 27 27. What type of pricing strategy is Speedy Cellular using when it introduces a new smartphone at a price below all of its competitors ?

Question 28 28. If there is another leader in the industry, a company might decide to match the leader's pricing. Otherwise, it will maintain current prices. What is this strategy called?

Question 29 29. A demand chart or schedule is the _____

Question 30 30. The purpose of _____ is to communicate the customers that they are receiving a great value for their money.

Praxis Marketing: Pricing 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!

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