Marketing Management | Chapter 2 | Part 3 | MBA MCQs | MM

Marketing Management MCQs

  

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1. When Dell Computer runs an advertisement that boosts “Superior Quality,
   Superior Service, and Unbelievable Price,” they are most likely using which of the
   following new product pricing strategies?
   1.   market-competitive pricing
   2.   market-loss pricing
   3.   market-penetration pricing
   4.   market-skimming pricing
2. The process of setting a high price for a new product to gain maximum revenues layer
   by layer from the segments willing to pay the high price is called:
   1.   market-skimming pricing.
   2.   market-saturation pricing.
   3.   market-layer pricing.
   4.   market-penetration pricing.
3. Companies bringing out a new product face the challenge of setting prices for the first time. They can choose between two broad strategies. What are these two broad strategies?
   1.   market-expansion pricing and market-harvesting pricing
   2.   product mix strategies and pricing mix strategies
   3.   market-skimming pricing and market-penetration pricing
   4.   product line pricing and captive-product pricing
4. When Intel develops a strategy whereby they develop and introduce a newer, higher margin microprocessor chip every 12 months and send the older models down the industry food chain to feed demand at lower price points (their new chips can sell for as much as a $1,000 apiece), they are using which of the following pricing strategies?
   1.   market-layer pricing
   2.   market-segmentation pricing.
   3.   market-skimming pricing.
   4.   market-saturation pricing.
5. ______________ is setting a price for products that must be used along with a main product, such as blades for a razor
   1.   Optional-product pricing
   2.   Product line pricing
   3.   Captive-product pricing
   4.   By-product pricing
6. If a zoo sells ZOO-DOO to customers as a great natural fertilizer, it is practicing a form
   of:
   1.   product-bundle pricing
   2.   by-product pricing.
   3.   optional-product pricing.
   4.   captive-product pricing.
7. ________________ is setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors’ prices
   1.   product line pricing
   2.   optional-product pricing
   3.   by-product pricing
   4.   captive-product pricing
8. Using a low sticker price on automobiles to attract customers and then selling models
   with additional accessory features to meet customer needs is a form of which of the
   following pricing strategies?
   1.   optional-product pricing
   2.   captive-product pricing
   3.   by-product pricing
   4.   product line pricing
9. A price reduction to buyers who buy in large volumes is called a:
   
   1.   cash discount.
   2.   trade discount.
   3.   quantity discount.
   4.   seasonal discount.
10. Combining several products and offering them together at a reduced price is called:
    1.   product-bundle pricing.
    2.   captive-product pricing.
    3.   by-product pricing
    4.   optional-product pricing
11. ________________ is setting a price for by-products in order to make the
    main product’s price more competitive.
    1.   Captive-product pricing
    2.   Product line pricing
    3.   By-product pricing
    4.   Optional-product pricing
12. If the customers base their judgments of a product’s value on the prices
    that competitors charge for similar products, then ___________________ is in place
    1.   competition-based pricing
    2.   target profit pricing
    3.   value-based pricing
    4.   cost-plus pricing
13. Setting a low initial price to attract a large number of buyers quickly and win a large
    market share is called:
    1.   market-skimming pricing.
    2.   market-loss pricing.
    3.   market-penetration pricing
    4.   market-competitive pricing.
14. Captive-product pricing applies to services pricing. With respect to services, the
    captive-product strategy is called:
    1.   slack pricing.
    2.   referral pricing
    3.   demand pricing.
    4.   two-part pricing.
15. A(n) _________ is a straight reduction in price on purchases during a stated period of time.
    1.   allowance
    2.   reference price
    3.   pricing segment
    4.   discount
16. The use of price points for reference to different levels of quality for a
    company’s related products is typical of which product-mix pricing strategy?
    1.   by-product pricing
    2.   product line pricing
    3.   optional-product pricing
    4.   captive-product pricing
17. Market skimming makes sense only under certain conditions. Which of the following WOULD NOT be a reason for using market skimming pricing?
    1.   The costs of producing a smaller volume cannot be so high that they cancel the advantage of
       charging more.
    2.   Competitors should not be able to enter the market easily and undercut the high price.
    3.   The product’s quality and image must support its higher price, and enough buyers must want
       the product at that price.
    4.   The market must be highly price sensitive.
18. All of the following are price-adjustment strategies EXCEPT:
    1.   psychological pricing.
    2.   segmented pricing
    3.   promotional pricing.
    4.   market-penetration pricing.
19. Market-penetration pricing refers to the practice of:
    1.   pricing to attract low volume in many segments so as to gradually penetrate the market as a
       whole.
    2.   setting a high initial price and then penetrating the market with successive prices for each price
       sensitive layer
    3.   setting a low initial price to penetrate the market quickly and attract a large number of
       buyers to win a large market share
    4.   pricing products very high to penetrate deeply and quickly into large profits for the company.
20. _____________ is offering just the right combination of quality and good service at a fair price.
    1.   Demand pricing
    2.   Cost pricing
    3.   Value pricing
    4.   Service pricing