Question detail
RiverRun Catering serves tourists while improving quality control; the case evidence includes average order value of ?9,525, sales of 760 units, and a 12% change in costs or demand. Which option best applies Explain features and impacts of price skimming, price penetration, competitive pricing, loss leader and cost-plus pricing?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
The elements of the marketing mix: price, product, promotion and place
Question
- A. Use cost-plus, competitive pricing, loss leader, price skimming to judge gross profit margin, suppliers impact, and the business objective in Price.
- B. Give only a definition of The elements of the marketing mix: price, product, promotion and place without using the case evidence.
- C. Treat revenue and profit as identical and ignore the effect on suppliers.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use cost-plus, competitive pricing, loss leader, price skimming to judge gross profit margin, suppliers impact, and the business objective in Price.
Explanation
The answer is commercially strongest because Use cost-plus, competitive pricing, loss leader, price skimming to judge gross profit margin, suppliers impact, and the business objective in Price. The case evidence gives ?11,025, 760 units, and 12%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse revenue and profit, miss the suppliers, or ignore the business objective.
Common mistake
Price common mistake 1
Giving a vague answer instead of directly addressing: Explain features and impacts of price skimming, price penetration, competitive pricing, loss leader and cost-plus pricing..
Answer by clearly explaining how to explain features and impacts of price skimming, price penetration, competitive pricing, loss leader and cost-plus pricing..
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