Marketing
Marketing MCQs with Answers and Explanations
Marketing MCQs with answers and detailed explanations for MBA, BBA, NTS and job tests. Covers marketing mix, consumer behaviour, branding and strategy. Take a scored quiz instead →
A pricing tactic where a company sets a low initial price for a new product to quickly attract a large number of buyers and win market share is:
APrice Discrimination
BMarket-Penetration Pricing
CMarket-Skimming Pricing
DPrestige Pricing
Adding a standard markup to the total cost of a product to determine its selling price is termed:
ACost-Plus Pricing (Markup Pricing)
BDynamic Pricing
CPsychological Pricing
DValue-Based Pricing
A pricing strategy that charges different prices to different customer groups for the exact same product or service based on non-cost factors is:
ADiscriminatory Pricing (Segmented Pricing)
BCaptive-Product Pricing
CCost-Plus Pricing
DPenetration Pricing
Pricing products that must be used along with a main product, such as razor blades for a razor handle or ink cartridges for a printer, is known as:
ABy-Product Pricing
BOptional-Product Pricing
CProduct Bundle Pricing
DCaptive-Product Pricing
Adjusting prices continually to meet the characteristics and needs of individual customers and changing supply/demand situations (e.g., airline tickets) is called:
APsychological Pricing
BGeographic Pricing
CPromotional Pricing
DDynamic Pricing
Pricing that considers the psychology of prices and not simply the economics, such as pricing an item at $19.99 instead of $20.00, is called:
ACost-Plus Pricing
BValue-Based Pricing
CTarget Profit Pricing
DPsychological Pricing
When a firm combines several products and offers the entire package at a reduced overall price compared to buying each item separately, it uses:
ABy-Product Pricing
BTwo-Part Pricing
CCaptive Product Pricing
DProduct Bundle Pricing
The price elasticity of demand measures:
AHow responsive the production cost is to raw material price changes
BHow responsive the quantity demanded of a good is to a change in its price
CThe relationship between marketing expenditures and brand awareness
DHow competitors adjust prices when market leader acts
Which product level in Philip Kotler’s Five Product Levels model represents the fundamental service or benefit that the customer is actually buying?
AExpected Product
BAugmented Product
CBasic Product
DCore Benefit
A company sets prices to break even on the costs of making and marketing a product, or to make a target return on investment. This approach is called:
AValue-Based Pricing
BBreak-Even Pricing (Target Return Pricing)
CCompetitive Parity Pricing
DPenetration Pricing