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

Dynamic pricing uses algorithms to adjust prices in real time based on demand fluctuations, competitor pricing, and market conditions.

Question 2

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

Accepted Answer

Price discrimination

Answer

Price discrimination involves charging different customer segments different prices for the same product based on their willingness or ability to pay.

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

Product line pricing structures prices across a range to signal quality tiers and guide consumers toward higher-margin products.

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

Captive product pricing profits from accessories or consumables that customers must purchase to use the core product, such as razors and blades.

Question 5

A contribution margin is calculated as:

Accepted Answer

Selling price minus variable cost per unit

Answer

Contribution margin represents the amount each unit sold contributes toward covering fixed costs and generating profit after variable costs are deducted.

(AMA) American Marketing Association Certification Practice Test

(AMA) American Marketing Association Certification Practice Test

AMA AMA Pricing Strategy & Revenue Management 2