MCQ Bank
Which of the following is NOT an example of fix cost?
- A) Maintenance of equipment
- B) Rent of factory
- C) Power
- D) Depreciation of building
Which of the following pricing theory assumes that Consumers ignore the least significant digits rather than do the proper rounding?
- A) Competitive pricing
- B) Psychological pricing
- C) Cost-plus pricing
- D) Skimming pricing
Which of the following occurs when a company sells a product or service at two or more prices that do not reflect the promotional difference in cost?
- A) Differentiation price
- B) Variation pricing
- C) Price discrimination
- D) Promotional pricing
Which of the following is NOT the advantage of penetration pricing?
- A) Encourage entry of competitors
- B) Create high stock turn over
- C) Create good will
- D) Cost control
In which of the following situations penetration pricing is not suitable?
- A) Demand is highly price elastic
- B) When no competition is available
- C) Substantial economies of scale available
- D) Product is suitable for mass marketing
Warehousing facility to channel members is an example of:
- A) Trade discount
- B) Quantity discount
- C) Cash discount
- D) Seasonal discount
Which of the following parties gets the most benefit from price wars in the long run?
- A) All Companies involved
- B) Government
- C) Consumers
- D) Dominant companies
Identify the revenue which is added by the sales of an additional item.
- A) Marginal revenue
- B) Basic revenue
- C) Average revenue
- D) Total revenue
BATA shoes sets the price as 1049, 4599 etc. It is an example of:
- A) Physiological pricing
- B) Psychological pricing
- C) Individual pricing
- D) Retail pricing
In BCG matrix, products with low market share and low market growth are referred to as:
- A) Dogs
- B) Cash cows
- C) Question marks
- D) Stars
Which of the following type of price discrimination can be seen in any market where excess capacity needs to be eliminated?
- A) First degree discrimination
- B) Third degree discrimination
- C) Second degree discrimination
- D) Forth degree discrimination
Which of the following is NOT a purpose of discounts?
- A) Increase long term sales
- B) Move out-of-date stock
- C) Reward valuable customers
- D) Increase short-term sales
Which of the following can be used to build up long-term image for a product?
- A) Advertising
- B) Free samples
- C) Price packs
- D) Coupons
Charging more for a soft drink in a vending machine than in a supermarket is known as:
- A) Cost-oriented pricing
- B) Penetration pricing
- C) Price discrimination
- D) Price differentiation
Which of the following is NOT a media of advertising?
- A) Direct selling
- B) Television
- C) Radio
- D) Newspaper
Which of the following is also called as prestige price?
- A) Penetration price
- B) Skimming price
- C) Premium price
- D) Psychological price
Which of the following pricing strategies is used for Luxury goods?
- A) Penetration pricing
- B) Competitive pricing
- C) Premium pricing
- D) Skimming pricing
Cash cows are SBU's that typically generate:
- A) A lot of competition
- B) Problems for product managers
- C) Large awareness levels but few sales
- D) Large amounts of cash
Which pricing strategy involves a company fixing a low price that high-cost competitors cannot match?
- A) Psychological
- B) Penetration
- C) Skimming
- D) Cost-orientated
Which of the following is NOT an advantage of penetration pricing?
- A) It creates valuable word of mouth
- B) It creates goodwill
- C) It encourages the entry of competitors
- D) It creates high stock turnover