Price (HSC SSCE Business Studies): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What happens if a business sets its price too low?
What happens if a business sets its price too low?
Customers perceive inferior quality
Why does product differentiation give businesses greater control over pricing?
Why does product differentiation give businesses greater control over pricing?
Reduces direct price comparisons
A retailer buys items at £40 and applies a 75% mark-up. What is the selling price?
A retailer buys items at £40 and applies a 75% mark-up. What is the selling price?
£70
In market-based pricing, what happens when demand exceeds supply?
In market-based pricing, what happens when demand exceeds supply?
Prices rise due to shortage
What is the strategy called when a business prices below competitors to enter a market?
What is the strategy called when a business prices below competitors to enter a market?
Undercutting strategy
Price skimming targets which customer group during product introduction?
Price skimming targets which customer group during product introduction?
Early adopters willing to pay premium
What is the main objective of price penetration strategy?
What is the main objective of price penetration strategy?
Rapidly achieve large market share
Why do businesses use loss leaders?
Why do businesses use loss leaders?
Increase store traffic
What advantage do price points offer customers?
What advantage do price points offer customers?
Simplifies decision-making
Louis Vuitton never conducts sales or operates outlets. What strategy is this?
Louis Vuitton never conducts sales or operates outlets. What strategy is this?
Prestige pricing