PCM PCM Pricing Strategy & Management 2

Question 1

Pricing a product at $9.99 instead of $10.00 is an example of:

Accepted Answer

Psychological pricing

Answer

Psychological pricing exploits cognitive biases—customers perceive $9.99 as significantly cheaper than $10 even though the difference is one cent.

Question 2

Cost-plus pricing is calculated by:

Accepted Answer

Adding a standard markup percentage to the unit cost of production

Answer

Cost-plus pricing ensures every unit sold covers its production cost plus a predetermined profit margin.

Question 3

Which pricing tactic bundles multiple products together at a combined price lower than buying each separately?

Accepted Answer

Price bundling

Answer

Price bundling increases perceived value and encourages customers to buy more items than they might have purchased individually.

Question 4

Ride-sharing apps that raise fares automatically during peak demand periods use:

Accepted Answer

Dynamic pricing

Answer

Dynamic pricing adjusts prices in real time based on supply, demand, time, or other market signals to maximize revenue.

Question 5

A 'price ceiling' in marketing refers to:

Accepted Answer

The maximum price customers are willing to pay before switching to alternatives

Answer

In a marketing context, the price ceiling is determined by customer value perception—exceeding it causes demand to collapse.

(PCM) Professional Certified Marketer Practice Test