Marketing Management | Chapter 2 | Part 1 | MBA MCQs | MM

Marketing Management MCQs

  

 

1. ____________ is the amount of money charged for a product or service
   1.   Price
   2.   Accountancy
   3.   Demand
   4.   Value
2. _____________ is the sum of the values that consumers exchange for the benefits of
   having or using the product or service.
   1.   Price
   2.   Elasticity
   3.   Demand
   4.   Value estimate
3. A ____________ policy means that a firm sets one price for all buyers in a given product
   or service line
   1.   fixed-price
   2.   dynamic-price
   3.   variable-price
   4.   standard-price
4. Which of the following factors is spurring a new movement in pricing toward dynamic pricing?
   1.   the federal government
   2.   strong wholesalers
   3.   strong retailers
   4.   the Internet
5. ____________ is the practice of charging different prices depending on individual customers and situations
   1.   Fixed-pricing
   2.   Standard-pricing
   3.   Barter-pricing
   4.   Dynamic pricing
6. All of the following are among the internal factors that affect pricing EXCEPT:
   (Pick the LEAST LIKELY.)
   1.   globalization
   2.   the company’s marketing objectives.
   3.   marketing mix strategy.
   4.   the organization
7. Before setting price, the company must decide on its strategy for
   1.   distribution
   2.   promotion.
   3.   the environment.
   4.   the product.
8. Companies set ______________ as their major objective if they are troubled by too much capacity, heavy competition, or changing consumer wants.
   1.   current profit maximization
   2.   survival
   3.   market share leadership
   4.   product quality leadership
9. Choosing a price based upon its short-term effect on current profit, cash flow, or return
   on investment reflects which of the following pricing objectives?
   1.   current profit maximization
   2.   product quality leadership
   3.   market share leadership
   4.   survival
10. If a company believes that the company with the largest market share will enjoy
    the lowest costs and highest long-run profits, that company will probably choose which of
    the following pricing objectives as their primary course of action?
    1.   current profit maximization
    2.   product quality leadership
    3.   market share leadership
    4.   survival
11. When a company sets a price for a new product on the basis of what it thinks
    then product should cost, then develops estimates on what each component should cost
    to meet the proposed price with an acceptable profit margin, the company is practicing:
    
    1.   predatory pricing.
    2.   target costing.
    3.   strategic pricing.
    4.   low cost leadership
12. ______________ set(s) the floor for the price that the company can charge for its product.
    1.   Supply
    2.   Demand
    3.   Costs
13. All of the following are considered to be forms of a cost-based approach to pricing
    EXCEPT
    1.   cost-plus pricing
    2.   break-even analysis.
    3.   target profit pricing.
    4.   going-rate pricing.
14. Adding a standard markup to the cost of the product refers to:
    1.   cost-plus pricing
    2.   break-even analysis.
    3.   target profit pricing.
    4.   perceived-value pricing.
15. Markup pricing remains popular in the marketplace. Which of the following is a reason
    for this popularity?
    1.   Cost-plus pricing favors the best price.
    2.   Cost-plus pricing is fairer to both buyers and sellers.
    3.   The method focuses on demand as its base.
    4.   Standard markups make the most sense
16. Setting prices to break even on the costs of making and marketing a product or
    make the target profit it is seeking is called:
    1.   cost-plus pricing
    2.   perceived-value pricing.
    3.   break-even pricing.
    4.   Going-rate pricing
17. When a coffee shop in an airport and a fine restaurant in a luxury hotel
    charge different prices for the same meal to customers who find the atmosphere in the
    hotel worth the difference in price, we can say that ____________ was being used.
    1.   value-based pricing
    2.   cost-plus pricing
    3.   break-even pricing
    4.   going-rate pricing
18. Which of the following pricing methods uses the idea that pricing begins with analyzing
    consumer needs and value perceptions, and price is set to match consumer’s perceived
    value?
    1.   cost-based pricing
    2.   service-based pricing
    3.   psychology-based pricing
    4.   value-based pricing