CPP Pricing Models & Tools 2

Question 1

Which pricing model charges customers a recurring fee regardless of usage volume?

Accepted Answer

Flat-rate subscription pricing

Answer

Flat-rate subscription pricing charges a fixed recurring fee independent of how much the customer uses the product.

Question 2

In a Conjoint Analysis, what does 'part-worth utility' represent?

Accepted Answer

The marginal value assigned to each attribute level

Answer

Part-worth utilities quantify the relative value each attribute level contributes to overall customer preference.

Question 3

A company uses a 'price waterfall' analysis. What does it primarily reveal?

Accepted Answer

How list price erodes to realized price through discounts and allowances

Answer

A price waterfall maps every discount, rebate, and allowance that reduces list price down to the actual pocket price.

Question 4

Which tool is best suited for identifying the price at which revenue is maximized given a known demand curve?

Accepted Answer

Price optimization software with demand modeling

Answer

Price optimization software uses demand modeling to identify the revenue-maximizing price point on a demand curve.

Question 5

In a two-part tariff pricing model, revenue comes from:

Accepted Answer

A fixed access fee plus a variable usage charge

Answer

Two-part tariffs combine a fixed entry fee (e.g., membership) with a per-unit usage charge.

(CPP) Certified Pricing Professional Practice Test