Developing pricing strategies and programs - MCQs with answers - Part 7

Developing pricing strategies and programs - MCQs with answers - Part 7

Promotional pricing and Differentiating pricing
1. The several pricing techniques to stimulate early purchase are

a) Special event pricing, cash rebates, low-interest financing

b) Loss-leader pricing, longer payment terms, Warranties and
service contracts

c) Both a & b

d) None of the above

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2. When department stores and supermarkets drop the price on well-known bands to encourage additional store traffic is also known as

a) Special event pricing
b) Psychological discounting
c) Loss-leader pricing
d) None of the above

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3. When organizations fuel sales by setting an artificial high pricing and then offering the item at substantial savings is termed as

a) Special event pricing
b) Psychological discounting
c) Loss-leader pricing
d) None of the above

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4. Promotional pricing plans are often a zero-sum game.

a) True
b) False

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5. When an organization sells a service or product at two or more prices that do not show a proportional difference in costs is known as
a) Customer segment pricing
b) Price discrimination
c) Product form pricing
d) Image pricing

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6. When museums charges a lower admission fee ti senior citizens and students, it is known as

a) Customer segment pricing
b) Price discrimination
c) Product form pricing
d) Image pricing

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7. Big Bazaar sells men's t-shirts in many fabrics, levels of quality and styles. It is a form of

a) Customer segment pricing
b) Price discrimination
c) Product form pricing
d) Image pricing

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8. Some firms price the same products at two different levels most commonly seen in cosmetics. It is a type of

a) Customer segment pricing
b) Price discrimination
c) Product form pricing
d) Image pricing

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9. Coca-cola charges different prices depending on from where the consumers purchases it. It is known as

a) Customer segment pricing
b) Price discrimination
c) Product form pricing
d) Channel pricing

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10. A theatre charges different prices as per audience preferences. It is known as

a) Customer segment pricing
b) Location pricing
c) Product form pricing
d) Channel pricing

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