1) You might have the perfect product, an excellent plan for distribution, and extraordinary promotion. However, if the pricing is wrong you are destined for failure. a) True b) False 2) One of the keys to effective pricing is determining what you want to accomplish through the process. a) True b) False 3) Short-term revenue maximization is a pricing objective often used by a bootstrapper. a) True b) False 4) If similar products or services are on the market, you’ll want to know how they’re priced.  a) True b) False 5) Which of the following is one of the more successful and popular ways to add value and charge higher prices?  a) Lower your costs b) Provide additional services c) Psychological pricing d) Bulk pricing 6) Which pricing does this describe/represent: a) Cost-plus b) Skimming c) Penetration d) eader e) Psychological  f) Dynamic 7) Which pricing does this describe/represent: a) Cost-plus b) Skimming c) Freemium d) Leader e) Psychological  f) Dynamic 8) Which pricing does this describe/represent: Often used by sports teams, airlines, and hotels. It takes advantage of technology that uses data to determine prices. a) Cost-plus b) Skimming c) Penetration d) Freemium e) Psychological  f) Dynamic 9) Which pricing does this describe/represent: Low/very low-priced products that are intended to draw people into the store? a) Cost-plus b) Skimming c) Penetration d) Leader e) Psychological  f) Dynamic 10) Which pricing does this describe/represent: offer a free basic or stripped-down version of a product and then charge for additional features or functionality? a) Cost-plus b) Freemium c) Penetration d) Leader e) Psychological  f) Skimming 11) Which of the following are considered “internal” factors that affect pricing:   a) Marketing objectives b) State of the economy c) Competitors prices d) Marketing mix e) b.  Government regulations f) c.  Employee wages 12) Which of the following are considered “external” factors that affect pricing:   a) Marketing mix b) Government regulations c) Employee wages 13) In which type of market do price increases raise the total revenue, but decreasing prices will lower total revenue: a) Inelastic market b) Elastic market  c) Unitary market 14) In which type of market do increasing prices lower the total revenue, and decreasing prices increase the total revenue:  a) Inelastic market b) Elastic market  c) Unitary market 15) In which type of market is there no change in revenue when prices are changed:  a) Inelastic market b) Elastic market  c) Unitary market 16) When you cut prices it is challenging to raise them later. a) True b) False 17) The advantages of a skimming pricing strategy include quickly grabbing market share and word of mouth from satisfied customers, and it may discourage competitors from entering the market since they would have to match the pricing. a) True b) False 18) If you want to use “pay what you want” pricing, you should have a product that can be sold credibly at a wide range of prices and a strong relationship between the buyers and seller. a) True b) False 19) Setting prices is the only “P” of the marketing mix that can be determined independently of the rest of the mix.   a) True b) False 20) Pricing objectives are set independently from the marketing objectives. a) Grue b) False

Review: Everything Has a Price

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