Developing pricing strategies and programs - MCQs with answers - Part 3

Developing pricing strategies and programs - MCQs with answers - Part 3

Determining Demand

1. In the case of prestige goods like perfume, the demand curve sometimes slopes upward.

a) True
b) False

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2. Customers are _____price sensitive to items they buy infrequently.

a) Less
b) More
c) Not
d) None of the above

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3. The factor that can result in less price sensitivity is

a) The product is more distinctive
b) Less knowledge about substitutes
c) Both a and b
d) None of the above

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4. A seller can charge high price compared to peers when

a) Offers equivalent total cost of membership
b) Offers higher total cost of membership
c) It offers lowest total cost of membership
d) All of above are false

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5. The demand curves can be established by

a) Surveys
b) Price experiments
c) Statistical analysis
d) All of the above

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6. If prices of a product are increased from Rs 10 to Rs 15 which results in small decline of demand from 105 to 100, the demand is

a) Inelastic
b) Elastic
c) Unaffected
d) None of the above

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7. If with the change in prices, demand changes considerably, then the demand is

a) Inelastic
b) Elastic
c) Unaffected
d) None of the above

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8. Price elasticity depends upon

a) Magnitude of the contemplated price change
b) Direction of the contemplated price change
c) Both a and b
d) None of the above

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9. Price Elasticity is substantial with a large price change and negligible with a small price change.

a) True
b) False

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