Marketing Officer - Pricing

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Question - 1

A firm that practices price competition engages in which one of the following strategies?

  • A Beating or matching the prices of competitions
  • B Setting prices only as the second lowest competitor
  • C Competing in both price and  product differentiation
  • D Letting other firms cut price while it retains profitability
  • E None of the above

Question - 2

Regulations of prices deemed particularly necessary for industries where

  • A supply is excessively relative to demand
  • B demand equals supply
  • C technology provides market entry barriers
  • D competition results in all service providers incurring losses
  • E None of the above

Question - 3

The perception of price depends on

  • A a product's actual price and consumer's expectations regarding price
  • B a consumer's expectation of price
  • C a consumer's analysis of competitive prices
  • D a product's actual price compared with the manufacturer's suggested price

Question - 4

What type of discount is given to a purchaser for performing activities such as transporting, atoring and selling?

  • A Quantity discount
  • B Trade discount
  • C Cash discount
  • D Geographic discount
  • E Service discount

Question - 5

When a company adjusts levels, so that it can increase sales volume to levels that match the organization's expenses, it is said to employ a  ............. pricing objective.

  • A survival
  • B cash flow
  • C market share
  • D return on investment
  • E None of the above

Question - 6

The maximum selling price that a firm can sustain for a product is determined by 

  • A competitor's prices
  • B what it costs to produce competitor's prices
  • C competitive parity
  • D what customers are prepared to pay for it 
  • E Both '1' and '2'

Question - 7

In case of prestige goods, the demand is

  • A not price sensitive till a level
  • B price sensitive
  • C not price sensitive
  • D less price sensitive
  • E None of the above

Question - 8

All of the following would be considered to be among the internal factors that affect price decisions, except

  • A nature of the market and demand
  • B competition
  • C costs
  • D environmental factors such as the economy and social concerns
  • E None of the above

Question - 9

Which of the following factor(s) leads to less price sensitivity?

  • A The product is more distinctive
  • B Buyers are less aware of substitutes
  • C Buyer cannot easily compare the quality of substitutes
  • D The expenditure is a smaller part of the buyer's total income
  • E All of the above

Question - 10

A company's costs two forms-fixed and

  • A variable
  • B total
  • C average
  • D accumulated
  • E None of these