Lesson 2.2.2b

2.2.2b Influences on pricing strategies Quiz: Pearson Edexcel Business, Unit 7

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 2.2.2b, Influences on pricing strategies: 20 multiple choice questions for the Pearson Edexcel GCSE Business (1BS0), Unit 7: Making marketing decisions, written with Revision Ninja.

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The 20 questions

  1. Which is an influence on pricing strategy?

    • The day of the week the product is sold
    • Competition from rivals
    • The colour of the company logo
    • The number of car parking spaces

  2. How might new technology influence price?

    • It only affects the promotion decisions a firm takes
    • It always pushes prices up because new kit is expensive
    • It has no effect on any of the costs a firm carries
    • It can lower production costs, allowing lower prices

  3. A market segment is:

    • a type of tariff applied to imports from one trade bloc
    • a single customer who buys from the same shop every week
    • a group of customers with shared characteristics or needs
    • a section of a shop floor set aside for special offers

  4. How might the product life cycle influence pricing?

    • Prices may fall as a product matures and faces rivals
    • Prices have no link at all to the product life cycle stage
    • Prices are fixed for the whole life of the product on sale
    • Prices must always rise in the decline phase of the product

  5. Which market segment is most likely to pay a premium price?

    • Customers who buy only when goods are on sale
    • Students with little spare income
    • Buyers of bulk low-value goods
    • Affluent buyers seeking exclusive products

  6. Which influence most directly pushes a firm to cut its prices?

    • A fall in the firm's overheads across its sites this year
    • A loyal new group of customers who buy in bulk each month
    • A rise in the firm's reputation among its existing buyers
    • A new rival offering a similar product more cheaply

  7. Why might a firm price differently for different market segments?

    • It avoids all competition in the market
    • The law requires every segment to pay the same price
    • It removes the need for market research
    • Different groups have different willingness to pay

  8. Which influence on pricing is about the stage of a product's sales?

    • Mergers
    • Trade bloc membership
    • Product life cycle
    • Tariffs

  9. A business cuts its unit cost from £10 to £8 with new technology and keeps its price at £14. How much extra profit does it make per unit?

    • £2
    • £4
    • £6
    • £0

  10. A rival cuts its price from £12 to £9. What is the percentage cut?

    • 25%
    • 9%
    • 33%
    • 12%

  11. A market segment of 40,000 customers each buys 2 products a year at £15 each. What is the annual revenue from this segment?

    • £80,000
    • £600,000
    • £120,000
    • £1,200,000

  12. A business is selling to students. Which pricing response is most likely?

    • Premium prices with no discount
    • Prestige pricing
    • Price skimming only
    • Lower prices or a student discount

  13. A product enters maturity where many rivals sell similar goods. Which influence most affects pricing?

    • Competition
    • Exporting
    • A trade bloc
    • Tariffs only

  14. A firm finds that one segment of older customers values reliability over features. What pricing approach best fits?

    • Price a reliable version higher for this segment
    • Cut prices to the lowest level in all segments
    • Remove the reliable version entirely
    • Use skimming with no segment focus at all

  15. A firm sells in two countries. In one, buyers earn much less. Which pricing influence applies?

    • The trade bloc only
    • The product's packaging
    • Market segment and income differences
    • The firm's head office location

  16. A rival adds a free extra feature. What is the firm's best short-term response relating to price?

    • Consider adjusting its price or differentiating itself
    • Stop selling the product altogether and close the line
    • Raise its price by 50% immediately across the whole range
    • Ignore the rival completely and carry on as before the change

  17. A product in decline has rising unit costs. Which influence on price is most important?

    • Technology breakthroughs that lower costs for all rivals
    • The product life cycle and costs
    • A stock market float that raises new capital for the firm
    • The EU tariff on imports of the firm's raw materials

  18. A firm's demand is very responsive to price in one segment and not responsive in another. Which pricing choice is best?

    • Raise prices only for the segment whose demand is responsive
    • Charge the same price to both segments with no adjustment at all
    • Charge less where demand responds to price, more elsewhere
    • Stop serving the segment in which demand is less responsive to price

  19. A firm sells at £40 in one segment and £60 in another. Which claim is best supported?

    • Prices are completely unrelated to the demand customers show
    • A single price would likely lose profit overall
    • A single price always maximises the profit a firm can earn
    • Segment prices must be identical in every market by law

  20. Which combination of influences would most likely cause a firm to cut its price?

    • A loyal segment that stays put and a rising brand value
    • A strong brand facing no competition at all in its market
    • A rival leaving the market and costs rising steeply each year
    • Lower costs from new technology and a cheaper rival

All Pearson Edexcel Business quizzes