Lesson 2.2.2b
2.2.2b Influences on pricing strategies Quiz: Pearson Edexcel Business, Unit 7
20 questions
In partnership with Revision Ninja
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.
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 external factor directly influences a business pricing strategy?
- Staff uniforms
- Office layout
- Rival prices
- Brand logo
-
How can new technology influence a firm pricing strategy?
- Increased wage bills
- Higher tax rates
- Lower production costs
- Slower output speeds
-
What defines a market segment in business?
- Business debt levels
- Total industry output
- Factory locations
- Shared customer needs
-
What typically happens to prices as a product matures in its life cycle?
- Prices double
- Prices fall
- Prices disappear
- Prices become fixed
-
Which type of consumer is most likely to pay a premium price?
- Wholesale buyers
- Affluent buyers
- Bargain hunters
- Budget shoppers
-
Which external influence most directly forces a firm to cut its prices?
- Increased wages
- Higher taxes
- Cheaper rival
- Rising inflation
-
Why might a business charge different prices to various market segments?
- Identical consumer incomes
- Uniform production costs
- Varying willingness to pay
- Fixed market demand
-
Which influence on pricing is about the stage of a product's sales?
- Mergers
- Trade bloc membership
- Product life cycle
- Tariffs
-
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
-
A rival cuts its price from £12 to £9. What is the percentage cut?
- 25%
- 9%
- 33%
- 12%
-
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
-
Which pricing response is most suitable when selling to students with low incomes?
- Skimming price
- Student discount
- Price increase
- Premium pricing
-
A product enters maturity where many rivals sell similar goods. Which influence most affects pricing?
- Competition
- Exporting
- A trade bloc
- Tariffs only
-
How should a firm price a product for older customers who value reliability?
- Stop selling
- Price lower
- Price higher
- Remove features
-
Selling across countries with very different average customer earnings is influenced by what?
- Production capacity
- Fixed overheads
- Factory location
- Income differences
-
What is a firm's best short-term pricing response if a rival adds a free feature?
- Ignore rival
- Adjust price
- Cut output
- Close business
-
Which two business factors most influence pricing decisions for a product in decline?
- Life cycle and costs
- Brand image and scale
- Competitors and design
- Promotion and placement
-
How should a firm set prices if demand responsiveness differs between two customer segments?
- Charge less where responsive
- Charge the same everywhere
- Charge more where responsive
- Set prices randomly
-
What happens to total profit if a firm uses one single price across segments with different budgets?
- Profit is lost
- Costs disappear completely
- Profit doubles instantly
- Revenue becomes zero
-
Which market factor most likely forces a business to reduce its price?
- Higher brand loyalty
- Competitor price cut
- Falling market demand
- Rising raw materials
Related quizzes
- Design mix: function, aesthetics and cost Quiz · 2.2.1a · 20 questions
- Product life cycle and extension strategies Quiz · 2.2.1b · 20 questions
- Importance of differentiating a product or service Quiz · 2.2.1c · 20 questions
- Pricing strategies Quiz · 2.2.2a · 20 questions
- Promotion strategies for different market segments Quiz · 2.2.3a · 20 questions
- Use of technology in promotion Quiz · 2.2.3b · 20 questions
- Methods of distribution: retailers and e-tailers Quiz · 2.2.4a · 20 questions
- How each element of the marketing mix influences the others Quiz · 2.2.5a · 20 questions
- Integrated marketing mix and competitive advantage Quiz · 2.2.5b · 20 questions
- Changing technology, changing consumer wants and obsolescence Quiz · 1.1.1a · 20 questions