Which of the following best describes the outlets/stores which sell the goods directly to the consumers for end use?

• A) Wholesaler
• B) None of the given options
• C) Producer
• D) Retailer

Which of the following is an advantage of sales promotion?

• A) Increase sales in short term
• B) Create awareness about product
• C) Decreases consumer traffic
• D) Increase sales in long run

_______ is a term used in business to indicate a state of intense competitive rivalry accompanied by a multi-lateral series of price reductions.

• A) Loss leader
• B) Penetration pricing
• C) Competition
• D) Price war

Which of the following is a reduced price marked on the label or package by producer?

• A) Coupon
• B) Cents-off deal
• C) Price-pack deal
• D) Sample

Which of the following offers an incentive to buy a product?

• A) Direct mail
• B) Advertising
• C) Sales promotion
• D) Public relations

The price of which of the following is lower than the cost and is used to drag customers into a store.

• A) Premium product
• B) Discounted product
• C) Loss leader
• D) On-sale item

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