AMA AMA Pricing Strategy & Revenue Management 2

Question 1

Dynamic pricing adjusts prices based on:

Accepted Answer

Real-time market demand, competition, and other external factors

Answer

Long-term contractual agreements with buyers

Answer

Fixed cost recovery schedules

Answer

Annual inflation adjustments

Question 2

Which pricing strategy charges different prices to different customer segments for the same product or service?

Accepted Answer

Price discrimination

Answer

Captive pricing

Answer

Going-rate pricing

Answer

Target return pricing

Question 3

In a product line pricing strategy, a company sets prices across its product range to:

Accepted Answer

Create perceived value tiers and encourage upselling within the line

Answer

Maximize the price of every individual item

Answer

Match the lowest competitor price for all products

Answer

Eliminate lower-margin products from the portfolio

Question 4

Captive product pricing involves setting a low price for the core product and charging higher prices for:

Accepted Answer

Complementary products required to use the core product

Answer

Delivery and installation services only

Answer

Premium versions of the same product

Answer

Products sold to corporate buyers versus individual consumers

Question 5

A contribution margin is calculated as:

Accepted Answer

Selling price minus variable cost per unit

Answer

Net profit divided by total revenue

Answer

Gross revenue minus total fixed costs

Answer

Operating income divided by units sold

Question 6

Which pricing tactic bundles multiple products together and offers them at a lower combined price than if purchased separately?

Accepted Answer

Bundle pricing

Answer

Price anchoring

Answer

Freemium pricing

Answer

Loss leader pricing