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Home
—›
Pricing
Pricing MCQs
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The money or other considerations exchanged for the ownership or use of a good or service is known as:
cost
price
exchange
value orientation
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The practice of exchanging goods and services for other goods and services rather than money is called:
lend lease
border exchanges
theft
barter
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The ratio of perceived benefits to price is equal to:
ROI
profits earned
cost less price
value
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Price is a critical decision made by a marketing execution because price has a direct Impact on:
the cost of the marketing process
competition
profit
demand
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Factors that limit the latitude of prices that can be set are:
pricing constraints
product features
calendar constraints
personnel constraints
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A higher price can usually be charged at what stage of the PLC?
introduction
growth
maturity
decline
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In actual practice, research indicated that most firms change the price of their major products about:
monthly
semi-annually
quarterly
once a year
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The type of competitive market where the market sets the price:
monopoly
oligopoly
price competition
pure competition
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The type of competition market where there is very little advertising:
pure monopoly
oligopoly
monopolistic competition
pure competition
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Expectations that specify the role of price in a firm’s marketing and strategic plans are:
pricing considerations
pricing guidelines
pricing objectives
pricing policies
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A price objective aimed at allowing a firm to get through struggles to attract customers with lower prices (even allowing some losses) to earn market ...
profit objective
sales objective
social responsibility objective
survival objective
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Newsweek conducted a pricing experiment in 11 cities with different priced to find out:
if sales would go up
their demand curve
what city would pay the most
what would competition do
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Up to date marketing research is essential because of how quickly consumers:
tastes can change
competitors allow strategies
move
grow
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Newsweek found that if the price was lowered from $2.00 to $1.58 quantity demanded increased to 4.5 million from 3 million resulting in sales of:
6.75 million a net increase
10 million a net loss
4.5 million a net loss
7.5 million a net increase
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Total revenue is defined as:
TR=MR
TR=AR
TR=PxQ
TR=chg in P + chg in Q
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When quantity demanded decreases as price increase this is elastic demand and is expressed as:
less than 1
less than or equal to 1
greater than or equal to 1
greater than 1
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Price elasticity is important to marketing managers because of its relationships to:
net profit
net sales
total revenue
total sales
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Research generally shows that cigarettes are price ______?
elastic
inelastic
unitary
underdetermined
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Four cost concepts are important in pricing decisions: total cost, fixed cost, variable cost, and:
spending cost
promotion cost
product cost
marginal cost
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A techniques that analyzes the relationship between total revenue and total cost to determine profitability is called:
marginal analysis
cost analysis
break-even analysis
profit analysis
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A key to setting a final price for a product is to find a(n):
best guess price
approximates price level
gut-level price
competition price level
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Setting the highest initial price is called price:
penetration
gouging
parity
skimming
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Setting a low initial price on a new product to appeal to a mass market is price:
gouging
skimming
penetration
parity
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Using price as a measure of the quality of a product and setting price high is:
prestige pricing
price lining
parity pricing
odd-even pricing
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The marketing of two or more products in a single "package" price is called:
target pricing
bundle pricing
odd-even pricing
price lining
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When seats on an airline flight are priced differently then what kind of pricing is being used?
skimming pricing
penetration pricing
prestige pricing
yield management pricing
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When the price setter stresses the supply or cost side of the pricing problem they are using what approach?
standard-orientation
cost-oriented
demand-oriented
target-oriented
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Summing the total unit cost of providing a product and adding a specific amount to the cost to arrive at a price is called:
demand-plus pricing
standard-plus pricing
target-plus pricing
cost-plus pricing
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A price setter may chose to balance both revenue and costs to set price using:
cost-oriented approach
standard-oriented approach
profit-oriented approach
target-approach
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Some products are priced based on what tradition or other competition factor dictate. This is called:
ROI pricing
target profit pricing
cost-oriented pricing
customary pricing
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When a company sets the same price for all customers then they use a:
simple-price policy
one-price policy
unit-price policy
equality-price policy
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A manager’s pricing decision is immediately apparent to most competitors through what is called the:
market effects
challenge effects
competitive effects
customer effects
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Reductions from list price given by the seller are called:
reductions
lower price
coupon pricing
discounts
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To encourage customers to buy larger quantities of a product firms offer a special discount commonly known as a:
seasonal discount
quantity discount
functional discount
trade discount
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Quantity discounts are of two general kinds:
noncumulative and cumulative
total and sub-total
once and tracked total
quarterly and daily
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To encourage retailers to pay their bills quickly, manufacturers offer a special discount:
seasonal discounts
functional discounts
trade discounts
cash discount
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When sellers in the channel undertake certain advertising or selling activities to promote a product they can qualify for:
geographical adjustments
trade-in allowances
promotional allowances
special allowances
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FOB origin pricing means:
fright on board
flight on board
fluid on box
free on board
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A conspiracy among firms to set prices is termed:
price discrimination
price fixing
unreasonable pricing
anti competitive pricing
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The practice of charging a very low price with the intent of driving competitors out of business is:
dumping
price discrimination
price fixing
predatory pricing