Pricing Principles and Strategies Quiz

pricing quiz answers

Pricing Strategy Marketing Quiz:

Ques. Setting 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)

Ques. Setting higher prices of product during 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)

Ques. Setting 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)

Ques. In which pricing strategy producer set a high introductory price for their product?
(a) Penetration pricing
(b) Price skimming
(c) Single price policy
(d) None of these

Ans. (b)

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Ques. Setting 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)

Ques. Reserve price refers to the price
(a) at which sellers prefer to sell whole stock
(b) below which sellers refuse to sell the goods
(c) fixed by the manufacturer
(d) reserved for whole sellers

Ans. (b)

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

Ans. (a)

Ques. 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)

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Ques. 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)

Ques. 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)

Ques. 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)

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

Ans. (a)

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Ques. 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) Economy Pricing
(c) Psychological Pricing
(d) Penetration Pricing

Ans. (c)

Ques. The approach used when the marketer wants the consumer to respond on an emotional, rather than rational basis
(a) Predatory Pricing
(b) Economy Pricing
(c) Psychological Pricing
(d) Penetration Pricing

Ans. (d)

Ques. The pricing strategy in which prices are set lower to actual price to trigger short term sales is classified as
(a) promotional pricing
(b) short term pricing
(c) quick pricing
(d) cyclical pricing

Ans. (a)

Ques. 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) Economy Pricing
(c) Psychological Pricing
(d) Captive Product Pricing

Ans. (c)

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Ques. 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)

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

Ans. (d)

Ques. 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)

Ques. 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)

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Ques. 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)

Ques. A price reduction to buyers who pay their bills promptly is called
(a) Trade discount
(b) Cash discount
(c) Seasonal discount
(d) Quality discount

Ans. (b)

Ques. 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)

Ques. __ 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)

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Ques. __ 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)

Ques. Price points of $.99, $1.99, $2.99, $3.99 etc are used for FMCG brands is known as __ pricing
(a) Cost plus
(b) value
(c) power price points
(d) penetration

Ans. (c)

Ques. Introducing a product at 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)

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Ques. 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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