Pricing Principles and Strategies Quiz

pricing quiz answers

Pricing Strategy Marketing Quiz:

Question: 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

Ans. (a)

Question: 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

Ans. (a)

Question: __ 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

Answer. (d)

Question: 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

Ans. (b)

Question: 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

Ans. (b)

Related: mcqs on Banking

Question: 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

Ans. (c)

Question: 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

Ans. (b)

Question: 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

Answer. (a)

Question: For rural marketing __ pricing is more suitable.
(a) Penetration
(b) skimming
(c) going rate
(d) none of these

Ans. (a)

Question: 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

Ans. (d)

Question: 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

Ans. (c)

Question: 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?

Ans. (a)

Question: __ 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

Answer. (a)

Question: 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

Ans. (d)

Question: Premium Pricing is a method of __
(a) Cost Based Pricing
(b) Demand Based Pricing
(c) Competition Based Pricing
(d) Value Based Pricing

Ans. (a)

Related: Micro Economics questions / answers

Question: 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

Ans. (c)

Question: 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

Ans. (d)

Question: Which one of the following is not an ethical pricing issue?
(a) Product dumping
(b) Predatory pricing
(c) Price fixing
(d) Slow skimming

Answer. (a)

Question: 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

Ans. (a)

Question: 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

Ans. (c)

Related: Biggest exporters in the world

Question: 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

Ans. (d)

Question: Which of the following is not a factor influencing pricing policy?
(a) Cost
(b) Competitors
(c) Business objectives
(d) None of these

Ans. (d)

Question: Pricing as an active instrument considers-
(a) Targeted return on profit
(b) Targeted market share
(c) Both of the above

Answer. (c)

Question: 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

Ans. (d)

Question: 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

Ans. (d)

Related: Decision Making questions and answers

Question: 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

Ans. (c)

Question: A price reduction for buyers who pay their bills promptly is called
(a) Trade discount
(b) Cash discount
(c) Seasonal discount
(d) Quality discount

Ans. (b)

Question: 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

Ans. (d)

Question: __ 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

Ans. (b)

Related: Stock Analysis questions

Question: __ 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

Ans. (b)

Question: 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

Ans. (c)

Question: 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

Ans. (a)

Question: 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

Ans. (c)

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