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

Marketing Management MCQs

  

 

1. _____________ is offering just the right combination of quality and good service at a fair price.
   1.   Value pricing
   2.   Service pricing
   3.   Demand pricing
   4.   Cost pricing
2. 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.   cost-plus pricing
   2.   value-based pricing
   3.   competition-based pricing
   4.   target profit 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.   product mix strategies and pricing mix strategies
   2.   market-skimming pricing and market-penetration pricing
   3.   market-expansion pricing and market-harvesting pricing
   4.   product line pricing and captive-product pricing
4. 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-penetration pricing.
   2.   market-layer pricing.
   3.   market-skimming pricing.
   4.   market-saturation pricing.
5. 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-skimming pricing.
   3.   market-saturation pricing.
   4.   market-segmentation pricing.
6. Market skimming makes sense only under certain conditions. Which of the following WOULD NOT be a reason for using market skimming pricing?
   1.   The market must be highly price sensitive.
   2.   Competitors should not be able to enter the market easily and undercut the high price.
   3.   The costs of producing a smaller volume cannot be so high that they cancel the advantage of
      charging more.
   4.   The product’s quality and image must support its higher price, and enough buyers must want
      the product at that price.
7. Setting a low initial price to attract a large number of buyers quickly and win a large
   market share is called:
   1.   market-penetration pricing
   2.   market-competitive pricing.
   3.   market-skimming pricing.
   4.   market-loss pricing.
8. Market-penetration pricing refers to the practice of:
   1.   setting a high initial price and then penetrating the market with successive prices for each price
      sensitive layer
   2.   pricing products very high to penetrate deeply and quickly into large profits for the company.
   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 to attract low volume in many segments so as to gradually penetrate the market as a
      whole.
9. 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-penetration pricing
   2.   market-skimming pricing
   3.   market-loss pricing
   4.   market-competitive pricing
10. ________________ 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.   optional-product pricing
    2.   product line pricing
    3.   captive-product pricing
    4.   by-product pricing
11. 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.   optional-product pricing
    2.   by-product pricing
    3.   product line pricing
    4.   captive-product pricing
12. 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
13. ______________ 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.   By-product pricing
    3.   Product line pricing
    4.   Captive-product pricing
14. Captive-product pricing applies to services pricing. With respect to services, the
    captive-product strategy is called:
    1.   demand pricing.
    2.   slack pricing.
    3.   two-part pricing.
    4.   referral pricing
15. ________________ is setting a price for by-products in order to make the
    main product’s price more competitive.
    1.   Optional-product pricing
    2.   Captive-product pricing
    3.   By-product pricing
    4.   Product line pricing
16. 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.   captive-product pricing.
    4.   optional-product pricing.
17. Combining several products and offering them together at a reduced price is called:
    1.   product-bundle pricing.
    2.   optional-product pricing
    3.   captive-product pricing.
    4.   by-product pricing
18. All of the following are price-adjustment strategies EXCEPT:
    1.   segmented pricing
    2.   market-penetration pricing.
    3.   psychological pricing.
    4.   promotional pricing.
19. A price reduction to buyers who buy in large volumes is called a:
    
    1.   quantity discount.
    2.   cash discount.
    3.   seasonal discount.
    4.   trade discount.
20. A(n) _________ is a straight reduction in price on purchases during a stated period of time.
    1.   allowance
    2.   pricing segment
    3.   reference price
    4.   discount