Lesson 1.3.3
1.3.3 Pricing strategies Quiz: Pearson Edexcel Business, Unit 1
20 questions
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Lesson 1.3.3, Pricing strategies: 20 multiple choice questions for the Pearson Edexcel Business (9BS0), Unit 1: Marketing and people, written with Revision Ninja.
Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.
The 20 questions
-
Which pricing strategy involves adding a fixed percentage to the unit cost of a product?
- Penetration pricing
- Cost-plus pricing
- Predatory pricing
- Price skimming
-
A product costs £12 per unit to make. The firm uses a 50% mark-up. What is the price?
- £18
- £6
- £24
- £15
-
A product costs £20 per unit. A 25% mark-up is applied. What is the selling price?
- £45
- £5
- £22
- £25
-
Which pricing strategy sets a high initial price before lowering it over time?
- Price skimming
- Psychological pricing
- Predatory pricing
- Penetration pricing
-
Which pricing strategy sets a low initial price to rapidly gain market share?
- Cost-plus pricing
- Price skimming
- Penetration pricing
- Predatory pricing
-
Which pricing strategy deliberately sets prices below cost to force competitors out of business?
- Psychological pricing
- Cost-plus pricing
- Competitive pricing
- Predatory pricing
-
What pricing strategy sets prices like £9.99 to make products seem cheaper?
- Psychological pricing
- Price skimming
- Cost-plus pricing
- Penetration pricing
-
Which pricing strategy suits a unique product with few close substitutes?
- Cost-plus pricing
- Price skimming
- Predatory pricing
- Penetration pricing
-
Which pricing strategy is most suitable when entering a market with many substitutes?
- Psychological pricing
- Price skimming
- Predatory pricing
- Penetration pricing
-
Which market factor allows a business to use price skimming rather than penetration pricing?
- Low brand loyalty
- Price inelastic demand
- High market competition
- Price elastic demand
-
Which pricing strategy is most appropriate for a product in its maturity stage?
- Penetration pricing
- Competitive pricing
- Predatory pricing
- Price skimming
-
What impact do online price comparison sites have on retail markets?
- Lower consumer choice
- Higher profit margins
- Increased price transparency
- Reduced price competition
-
Which pricing practice rapidly adjusts online prices based on changing market demand?
- Psychological pricing
- Predatory pricing
- Dynamic pricing
- Cost-plus pricing
-
A business sells a product at £40 with a unit cost of £25. What is the mark-up as a percentage of cost?
- 37.5%
- 60%
- 15%
- 25%
-
A business sets a price of £30 using cost-plus pricing with a 20% mark-up on cost. What is the unit cost?
- £20
- £24
- £25
- £36
-
What is a major disadvantage of using cost-plus pricing?
- Guarantees high profit
- Increases promotional costs
- Lowers production output
- Ignores market demand
-
What is the main objective of predatory pricing?
- Eliminating competitors
- Maximising profit margins
- Building brand loyalty
- Covering unit costs
-
Having many unique selling points allows a business to use which pricing strategy?
- Penetration pricing
- Premium pricing
- Cost-plus pricing
- Predatory pricing
-
Which market condition encourages a business to use penetration pricing for a launch?
- High product differentiation
- Price inelastic demand
- Strong brand loyalty
- Price elastic demand
-
At which stage of the product life cycle is price skimming typically used?
- Saturation
- Introduction
- Maturity
- Decline
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