Pricing Strategy
Chapter 11
Pricing Strategy
Multiple Choice Questions 1. _____ on pricing decisions concern primarily the nature of the target market and expected reactions of consumers to a given price or change in price.
a. Government influences
b. Environmental influences
c. Supply influences
d. Demand influences
Answer: d
Learning Objective: 11-1
Level of Difficulty: Easy
Bloom's: Knowledge
AACSB: Analytic
Topic: Demand Influences On Pricing Decisions
Page: 163
Explanation: Demand influences on pricing decisions concern primarily the nature of the target market and expected reactions of consumers to a given price or change in price.
2. Which of the following is a factor pertaining to the expected consumption rate of potential buyers, location of potential buyers, and position of potential buyers and is particularly important for pricing decisions?
a. Psychological
b. Political
c. Demographic
d. Price elasticity Answer: c
Learning Objective: 11-1
Level of Difficulty: Easy
Bloom's: Knowledge
AACSB: Analytic
Topic: Demographic Factors
Page: 163
Explanation: Demographic factors that are particularly important for pricing decisions include the following: number of potential buyers, location of potential buyers, position of potential buyers, etc.
3. Which of the following factors related to pricing is concerned primarily with how consumers perceive various prices or price changes?
a. Environmental
b. Psychological
c. Demographic
d. Sociological Answer: b
Learning Objective: 11-1
Level of Difficulty: Easy
Bloom's: Knowledge
AACSB: Analytic
Topic: Psychological Factors
Page: 163
Explanation: Psychological factors related to pricing concern primarily how consumers will perceive various prices or price changes.
4. The three primary considerations pertaining to demand influences for a product are:
a. segmentation variables used, breakeven point, and required discounts.
b. internal rate-of-return,
Pricing Strategy
Multiple Choice Questions 1. _____ on pricing decisions concern primarily the nature of the target market and expected reactions of consumers to a given price or change in price.
a. Government influences
b. Environmental influences
c. Supply influences
d. Demand influences
Answer: d
Learning Objective: 11-1
Level of Difficulty: Easy
Bloom's: Knowledge
AACSB: Analytic
Topic: Demand Influences On Pricing Decisions
Page: 163
Explanation: Demand influences on pricing decisions concern primarily the nature of the target market and expected reactions of consumers to a given price or change in price.
2. Which of the following is a factor pertaining to the expected consumption rate of potential buyers, location of potential buyers, and position of potential buyers and is particularly important for pricing decisions?
a. Psychological
b. Political
c. Demographic
d. Price elasticity Answer: c
Learning Objective: 11-1
Level of Difficulty: Easy
Bloom's: Knowledge
AACSB: Analytic
Topic: Demographic Factors
Page: 163
Explanation: Demographic factors that are particularly important for pricing decisions include the following: number of potential buyers, location of potential buyers, position of potential buyers, etc.
3. Which of the following factors related to pricing is concerned primarily with how consumers perceive various prices or price changes?
a. Environmental
b. Psychological
c. Demographic
d. Sociological Answer: b
Learning Objective: 11-1
Level of Difficulty: Easy
Bloom's: Knowledge
AACSB: Analytic
Topic: Psychological Factors
Page: 163
Explanation: Psychological factors related to pricing concern primarily how consumers will perceive various prices or price changes.
4. The three primary considerations pertaining to demand influences for a product are:
a. segmentation variables used, breakeven point, and required discounts.
b. internal rate-of-return,