AMA AMA Pricing Strategy & Revenue Management 3

Question 1

A loss leader pricing strategy involves:

Accepted Answer

Pricing a product below cost to attract customers who will then purchase additional profitable items

Answer

Loss leader pricing sacrifices margin on a specific product to drive store traffic and increase overall basket size with higher-margin purchases.

Question 2

Geographic pricing accounts for differences in price based on:

Accepted Answer

Location-based costs such as shipping, tariffs, and local taxes

Answer

Geographic pricing adjusts product prices based on location-specific factors including transportation costs, import duties, and local market conditions.

Question 3

Which concept describes the reference price a consumer uses to evaluate whether a current price is fair?

Accepted Answer

Price anchor

Answer

A price anchor is a reference point (often the first price seen) that consumers use to judge whether subsequent prices represent good value.

Question 4

Revenue management (yield management) optimizes revenue by:

Accepted Answer

Selling the right product to the right customer at the right time for the right price

Answer

Revenue management uses data and analytics to maximize revenue by dynamically adjusting prices and availability based on demand patterns.

Question 5

A freemium pricing model provides:

Accepted Answer

A basic version for free with premium features available for a fee

Answer

Freemium pricing offers a no-cost basic tier to attract users while monetizing a subset who upgrade to premium paid features.

(AMA) American Marketing Association Certification Practice Test

(AMA) American Marketing Association Certification Practice Test

AMA AMA Pricing Strategy & Revenue Management 3