unit 5b: Pricing Quiz

What is the formula for calculating Return on Investment (ROI)?

• Profit / Investment

• Investment - Profit

• Investment / Profit

• Profit x Investment

What is the point at which sales revenue equals the costs and expenses of making and distributing a product?

• Revenue Balance

• Break Even Point

• Profit Point

• Cost Equilibrium

What is the practice whereby a manufacturer and its distributors agree that the distributors will sell the manufacturer's product at certain prices?

• Price Fixing

• Price Discrimination

• Resale Price Maintenance

• Minimum Price Law

Which factor determines whether demand is elastic or inelastic based on the availability of substitute products?

• Price relative to income

• Availability of substitutes

• Brand loyalty

• Urgency of purchase

What is the primary goal of pricing for marketers?

• Increasing advertising expenditures

• Meeting the competition

• Gaining market share

• Earning a profit

What is the degree to which demand for a product is affected by its price called?

• Market Responsiveness

• Price Sensitivity

• Consumer Affordability

• Demand Elasticity

Which law prohibits large companies from selling products at very low prices to drive out their competition?

• Resale Price Maintenance Law

• Minimum Pricing Law

• Unfair Trade Practices Law

• Price Fixing Law

What is the act or practice of trading goods or services for other goods or services called?

• Unit Pricing

• Price Gouging

• Price Discrimination

• Bartering

What is the value in money (or its equivalent) placed on a good or service?

• Price

• Cost

• Value

• Expense

Which factor determines whether demand is elastic or inelastic based on luxury versus necessity?

• Urgency of purchase

• Luxury versus necessity

• Brand loyalty

• Price relative to income