Developing pricing strategies and programs - MCQs with answers - Part 2

Developing pricing strategies and programs - MCQs with answers - Part 2

Setting the Price

1. Marketers set the price of a product or service in a ______ step procedure.

a) Four
b) Five
c) Six
d) None of the above

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2. While setting the price, marketers

a) Select the pricing objective
b) Estimate demand
c) Analysis competitors cost, offers and prices
d) All of the above

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3. The pricing objectives are

a) Maximum current profit, market share and market skimming
b) Survival
c) Product quality leadership
d) All of the above

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4. If companies face intense competition and plagued with over-capacity, the pricing objective is

a) Survival
b) Maximum current profit
c) Maximum market share
d) None of the above

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5. In ___________ company may not focus on long-run performance by ignoring the impact of other marketing mix variables.

a) Survival
b) Maximum current profit
c) Maximum market share
d) None of the above

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6. Marketers focus on ___________ while maximizing market share.

a) Higher sales volume
b) Lower unit costs
c) Both a and b
d) None of the above

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7. Market-penetration pricing strategy can be adopted when

a) Market is highly price sensitive
b) Low price stimulates market growth
c) Both a & b
d) None of the above

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8. In the process of maximum market skimming,

a) Prices start high and slowly decline over time
b) Prices start low and gradually increase over time
c) Prices remain constant
d) All of the above

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9. Market skimming works when

a) More number of buyers has a high current demand
b) High price reflects the image of a superior product
c) Both a & b
d) None of the above

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10. In market skimming, high initial prices do not fetch more competitors to the market.

a) True
b) False

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11. Product quality leadership is based on

a) High quality and low pricing
b) High quality and premium pricing
c) Low quality and premium pricing
d) None of the above

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12. The pricing objective of a university is

a) Partial cost recovery
b) Full cost recovery
c) Maximum market share
d) None of the above

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13. The pricing objective of a nonprofit hospital is

a) Partial cost recovery
b) Full cost recovery
c) Maximum market share
d) None of the above

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