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Questions and Answers
Which pricing method involves setting the price by adding a fixed amount to the cost of making the product?
Which pricing method involves setting the price by adding a fixed amount to the cost of making the product?
- Price skimming
- Cost plus pricing (correct)
- Penetration pricing
- Loss leader pricing
What is a disadvantage of cost plus pricing?
What is a disadvantage of cost plus pricing?
- Quick and easy calculation
- Ensures covering all costs
- Price might be set higher than competitors or customer willingness (correct)
- Price is set lower than competitors
What is the primary aim of loss leader pricing?
What is the primary aim of loss leader pricing?
- Attract customers into the shop (correct)
- Sell off unwanted stock quickly
- Increase long-term market share
- Maximize profits on each item sold
When is price skimming most suitable according to the text?
When is price skimming most suitable according to the text?
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What pricing method should be used for new products according to the text?
What pricing method should be used for new products according to the text?
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How is Price Elasticity defined in the text?
How is Price Elasticity defined in the text?
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What is the main purpose of price skimming?
What is the main purpose of price skimming?
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Which pricing method focuses on setting a very low price to attract customers quickly?
Which pricing method focuses on setting a very low price to attract customers quickly?
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What is a disadvantage of implementing price skimming?
What is a disadvantage of implementing price skimming?
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In competitive pricing, what can businesses compete on besides the price?
In competitive pricing, what can businesses compete on besides the price?
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What is a key advantage of penetration pricing?
What is a key advantage of penetration pricing?
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