Pricing Strategy Marketing Quiz:
Setting the price on the basis of the total cost per unit is known as __
(a) Cost Based Pricing
(b) Demand Based Pricing
(c) Competition Based Pricing
(d) Value Based Pricing
Setting higher prices for a product during the initial stages of its introduction is known as
(a) Price Skimming Policy
(b) Price Penetration Policy
(c) Price Discrimination Policy
(d) Price Maintenance Policy
__ Pricing objectives include all of the following except
(a) profit maximization objectives
(b) meeting competitors’ prices
(c) market-share objectives
(d) quality performance objectives
e. prestige objectives
Setting a price on the basis of the demand for the product is known as __
(a) Cost Based Pricing
(b) Demand Based Pricing
(c) Competition Based Pricing
(d) Value Based Pricing
In which pricing strategy do producers set a high introductory price for their product?
(a) Penetration pricing
(b) Price skimming
(c) Single price policy
(d) None of these
Related: mcqs on Banking
Setting a price on the basis of the competition for the product is known as __
(a) Cost Based Pricing
(b) Demand Based Pricing
(c) Competition Based Pricing
(d) Value Based Pricing
Reserve price refers to the price
(a) in which sellers prefer to sell the whole stock
(b) below where sellers refuse to sell the goods
(c) fixed by the manufacturer
(d) reserved for whole sellers
Setting low prices to encourage initial product trial & to generate sales growth reflects one of the following pricing methods-
(a) Penetration pricing
(b) Skimming pricing
(c) Competition based pricing
(d) Cost-based pricing
For rural marketing __ pricing is more suitable.
(a) Penetration
(b) skimming
(c) going rate
(d) none of these
The pricing method based on customer value is known as __
(a) Cost Based Pricing
(b) Demand Based Pricing
(c) Competition Based Pricing
(d) Value Based Pricing
Which of the following is not a method of cost-based pricing?
(a) Cost Plus Pricing
(b) Marginal Cost Pricing
(c) Differential Pricing
(d) Target Pricing
Identify the factor that does not play a major role in setting the pricing objectives of a service organization.
(a) How would a company like to position its services?
(b) Are the prices chosen compatible with the corporate objectives?
(c) How do the shareholders react to the price changes made by the company?
(d) What is the duration of the life cycle of the services?
__ Buyers and sellers negotiate prices most often when
(a) Multiple suppliers compete for an order
(b) Only one available supplier can fill an order
(c) Contracts over unchanging and routine purchases
(d) Prices are set once and remain unchanged
Which of the following is a method of competition-based pricing?
(a) Going Rate Pricing
(b) Sealed Bid Pricing
(c) Customary Pricing
(d) All of these
Premium Pricing is a method of __
(a) Cost Based Pricing
(b) Demand Based Pricing
(c) Competition Based Pricing
(d) Value Based Pricing
Related: Micro Economics questions / answers
When a firm sets a very low price for one or more of its products with the intention of driving its competitors out of business.
(a) Predatory Pricing
(b) Economic Pricing
(c) Psychological Pricing
(d) Penetration Pricing
The approach used when the marketer wants the consumer to respond on an emotional, rather than rational basis
(a) Predatory Pricing
(b) Economic Pricing
(c) Psychological Pricing
(d) Penetration Pricing
Which one of the following is not an ethical pricing issue?
(a) Product dumping
(b) Predatory pricing
(c) Price fixing
(d) Slow skimming
The pricing strategy in which prices are set lower than current prices to trigger short-term sales is classified as
(a) promotional pricing
(b) short term pricing
(c) quick pricing
(d) cyclical pricing
Razor manufacturer will charge a low price and recoup its margin (and more) from the sale of the only design of blades which fit the razor. This is an example of __
(a) Predatory Pricing
(b) Economic Pricing
(c) Psychological Pricing
(d) Captive Product Pricing
Related: Biggest exporters in the world
Where sellers combine several products in the same package is known as __
(a) Psychological Pricing
(b) Captive Product Pricing
(c) Product Bundle Pricing
(d) Promotional Pricing
Which of the following is not a factor influencing pricing policy?
(a) Cost
(b) Competitors
(c) Business objectives
(d) None of these
Pricing as an active instrument considers-
(a) Targeted return on profit
(b) Targeted market share
(c) Both of the above
Which of the following is not an approach to pricing in services?
(a) Risk-based approach
(b) Cost-based approach
(c) Competition-based approach
(d) Demand-based approach
Which of the following are possible pricing objectives?
(a) To maximize profits
(b) To achieve a target market share
(c) To match the competition, rather than lead the market
(d) All of these
Related: Decision Making questions and answers
When there is a large potential market for a product, the firm will adopt:
(a) Skimming price policy
(b) Penetration price policy
(c) Premium price policy
(d) None of these
A price reduction for buyers who pay their bills promptly is called
(a) Trade discount
(b) Cash discount
(c) Seasonal discount
(d) Quality discount
Which of the following is not an issue in the pricing of services?
(a) Availability of raw materials
(b) Competitor pricing
(c) Positioning
(d) Demand levels
__ are the retailers who have no fixed place of business.
(a) Large scale retailers
(b) Itinerant retailers
(c) Small scale retailers
(d) None of these
Related: Stock Analysis questions
__ pricing means assigning a low price tag for a product and providing the benefits of low-cost mass production to the customers.
(a) Cost plus
(b) value
(c) power price points
(d) penetration
Price points of $.99, $1.99, $2.99, $3.99 etc are used for FMCG brands known as __ pricing
(a) Cost plus
(b) value
(c) power price points
(d) penetration
Introducing a product at a low price and increasing the price once the brand succeeds is known as __ Pricing.
(a) Penetration
(b) skimming
(c) going rate
(d) none of these
Which of the following is not a type of demand-based pricing strategy?
(a) Market skimming
(b) Penetration pricing
(c) Destroyer pricing
(d) Discounts and sales
