Lesson 7.7.1

7.7.1 The marketing mix: price Quiz: OCR Business, Unit 7

20 questions

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Lesson 7.7.1, The marketing mix: price: 20 multiple choice questions for the OCR Business (H431), Unit 7: Marketing, written with Revision Ninja.

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The 20 questions

  1. Which pricing strategy adds a set percentage margin onto the unit cost of production?

    • Predatory pricing
    • Price skimming
    • Cost-plus pricing
    • Penetration pricing
  2. What pricing strategy involves setting a high initial price for an innovative new product?

    • Penetration pricing
    • Psychological pricing
    • Price skimming
    • Cost-plus pricing
  3. Which strategy sets a low initial price to rapidly gain market share in a competitive market?

    • Dynamic pricing
    • Price discrimination
    • Penetration pricing
    • Price skimming
  4. What name is given to setting prices below cost to force rivals out of the market?

    • Psychological pricing
    • Competitive pricing
    • Predatory pricing
    • Loss leader pricing
  5. Which pricing tactic sells a product at a loss to encourage customers into a retail store?

    • Loss leader pricing
    • Penetration pricing
    • Cost-plus pricing
    • Predatory pricing
  6. What pricing method adjusts prices in real time according to changes in market demand?

    • Cost-plus pricing
    • Competitive pricing
    • Psychological pricing
    • Dynamic pricing
  7. Setting a price at £4.99 instead of £5.00 is an example of which pricing strategy?

    • Price skimming
    • Psychological pricing
    • Cost-plus pricing
    • Penetration pricing
  8. Which pricing approach involves setting prices in line with or slightly below main rivals?

    • Price skimming
    • Loss leader pricing
    • Competitive pricing
    • Cost-plus pricing
  9. If a product has price elastic demand, what happens to total revenue when price increases?

    • It increases
    • It remains constant
    • It doubles
    • It decreases
  10. If a product has price inelastic demand, how should a firm adjust price to increase revenue?

    • Offer half price
    • Raise the price
    • Lower the price
    • Keep price equal
  11. What pricing strategy charges different customer groups different prices for the exact same service?

    • Price discrimination
    • Dynamic pricing
    • Cost-plus pricing
    • Penetration pricing
  12. A product costs £40 to produce. With a 25% cost-plus markup, what is the selling price?

    • £60
    • £45
    • £55
    • £50
  13. A business cuts price from £10 to £8 and total revenue rises. What is the price elasticity?

    • Perfectly inelastic
    • Price elastic
    • Price inelastic
    • Unitary elastic
  14. A tech manufacturer releases a revolutionary smartphone at £1,200 before gradually lowering the price. Which strategy is this?

    • Price skimming
    • Penetration pricing
    • Loss leader pricing
    • Predatory pricing
  15. A supermarket sells £1 loaves of bread for 20p to increase store footfall. Which pricing strategy is used?

    • Loss leader pricing
    • Price skimming
    • Predatory pricing
    • Cost-plus pricing
  16. An airline increases flight prices automatically as available seats decrease. Which pricing method is being applied?

    • Dynamic pricing
    • Psychological pricing
    • Price discrimination
    • Cost-plus pricing
  17. A new snack brand enters a crowded market with a very low introductory price. What is this strategy?

    • Predatory pricing
    • Penetration pricing
    • Price discrimination
    • Price skimming
  18. What primary factor establishes the theoretical price ceiling for a product in a market?

    • Customer value perception
    • Fixed overhead costs
    • Break-even quantity
    • Unit production cost
  19. Why is predatory pricing regulated or declared illegal by competition authorities?

    • It reduces competition
    • It lowers quality
    • It causes inflation
    • It reduces demand
  20. A firm produces a shirt for £20 and sells it for £30. What is the percentage mark-up?

    • 10%
    • 25%
    • 50%
    • 33%

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