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Pricing Strategies in Marketing 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. A supply and demand chart or schedule is the _____

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. Consider the following information: Producing an additional unit of a smartphone will lead to a marginal cost of $1,000 and a marginal benefit of $1,500? What is the net benefit?

Question 4 4.

Considering the following information, what would be the best decision using marginal analysis?

Producing an additional unit of smartphones has a marginal cost of $1,000 and a marginal benefit of $1,500? The change in net benefits is $500.

Question 5 5. What type of pricing strategy offers one price and avoids constant sales discounts and price changes?

Page 2

Question 6 6. Which type of pricing strategy depends on promotions/sales to temporarily reduce prices?

Question 7 7. 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?

Question 8 8. What is sales-oriented pricing based on?

Question 9 9. The purpose of _____ is to communicate the customers that they are receiving a great value for their money.

Question 10 10. Offering a free movie ticket with the purchase of hotel room is an example of which type of pricing strategy?

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Question 11 11. When consumers change their personal income, populations change, or the price of a substitute good changes, what happens to the demand curve?

Question 12 12. On a normal demand curve, if we know an individual will demand five units of a good when the good is priced at $5, what statement is MOST LIKELY true if the price of the good changes to $4?

Question 13 13. Your company is the only one on the market that has a product which is in high demand. If you want to earn as much as possible, while minimizing your cost, which strategy should you use?

Question 14 14. 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 15 15. Which of the following is an example of someone calculating a total cost?

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Question 16 16. An example of a fixed cost is:

Question 17 17. Which of the following is an example of value-based pricing?

Question 18 18. What is beta testing?

Question 19 19. Which type of discount helps to create a steady demand stream of product for the manufacturer?

Question 20 20. When products are stocked on a special display at the end of an aisle, the manufacturer is probably offering a _____ discount to the retailer.

Page 5

Question 21 21. Which type of pricing method determines the sales volume that must be reached before total revenue equals total costs?

Question 22 22. What is the result when the marginal cost (MC) is less than the average variable cost (AVC)?

Question 23 23. Which of the following is a TRUE statement about price discrimination?

Question 24 24. What are some of the groups that qualify for a third degree price discrimination?

Question 25 25. Calculate the BEQ when you have a fixed monthly cost of $2000, an average cost per product of $20 and an average sales price per product of $50.

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Question 26 26. Calculate the BEQ when you have a fixed monthly cost of $1500, an average cost per product of $4, and an average price per product of $7.

Question 27 27. Which of the following is true if competitors in an oligopoly try to beat each other with lower prices?

Question 28 28. _____ describes the economic concept of making strategic plans based on anticipations of competitors' actions.

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

Question 30 30. Using the concepts of marginal analysis, what decision would you make when marginal benefit is less than the marginal cost?

Pricing Strategies in Marketing 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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