Price and Promotions in Business Marketing MCQs
Price and Promotions in Business Marketing MCQs
Try to answer these 40+ Price and Promotions in Business Marketing MCQs and check your understanding of the Price and Promotions in Business Marketing subject. Scroll down and let's begin!
1: The point at which total costs equal total revenue and the business _____ money.
A. Makes
B. Loses
C. Neither makes nor loses
D. None of these
2: Credit extended by retailers to the ultimate customers for the purchase of _____ is known as Consumer Credit.
A. Products
B. Services
C. Goods
D. All of these
3: Decoy effect is a pricing technique that makes a specific product appear more desirable by adding a _____ that is slightly less attractive.
A. Product
B. Price
C. Designs
D. Both a and b
4: The number of units of a product that people would be willing to purchase at same price levels. Is known as Demand Curve.
A. True
B. False
5: Costs that do not change with the number of sales made is known as?
A. Variables costs
B. Fixed Costs
C. Changeable costs
D. None of these
6: The amount added to the cost of a product in setting the final price. It can be based on _____.
A. Selling price
B. Cost price
C. Buying Price
D. Both a and b
7: Psychological pricing strategy in which goods are priced at, say, $9.99 rather than $10.00 in the belief that the price will seem lower than it really is called?
A. Odd Pricing
B. Penetration Pricing
C. Prestige Pricing
D. None of these
8: Odd Pricing is a psychological pricing strategy in which goods are priced at, say, _____ in the belief that the price will seem lower than it really is.
A. $9.0 rather than $10.00
B. $9.5 rather than $10.00
C. $9.99 rather than $10.00
D. None of these
9: Setting the price of a new product lower than expected to gain fast market share is called?
A. Odd Pricing
B. Penetration Pricing
C. Prestige Pricing
D. None of these
10: Penetration pricing is setting the price of a new product _____ than expected to gain fast market share.
A. Lower
B. Higher
C. Both a and b
D. None of these
11: _____ is a psychological pricing strategy used with goods whose quality is difficult to determine by inspection or for products about which consumers have little solid information.
A. Odd Pricing
B. Penetration Pricing
C. Prestige Pricing
D. None of these
12: The percentage change in quantity demanded for a product in response to a 1 percent change in price is called?
A. Price Lining
B. Price skimming
C. Price Elasticity of Demand
D. All of the above
13: Grouping product prices into ranges, such as low-, medium-, and high-priced items is called?
A. Price Lining
B. Price skimming
C. Price Elasticity of Demand
D. All of the above
14: Price lining is a grouping of product prices into ranges, such as _____ items.
A. Low priced
B. Medium priced
C. High priced
D. All of the above
15: Setting the price of a new product higher than expected to recover development costs is called?
A. Price Lining
B. Price skimming
C. Price Elasticity of Demand
D. All of the above
16: _____ is setting the price of a product in a way that will alter its perception by customers.
A. Psychological Pricing
B. Reference Pricing
C. Elasticity pricing
D. None of the above
17: Publicity is an aspect of public relations consisting of any message about your company communicated through the mass media that you pay for.
A. True
B. False
18: Psychological pricing strategy common in retailing goods for which consumers do not have any idea of what the price “should be” is known as Reference Price.
A. True
B. False
19: Costs that change in direct proportion to sales are called Variable costs.
A. True
B. False
20: The number of competitors and their proximity influences what a small business owner can charge because the competition represents ______.
A. Substitute choices to the customer
B. A better product for the consumer
C. Better quality as perceived by the consumer
D. Less expensive products
21: Setting the price of a product in a way that will alter its perception to customers is known as ______.
A. Penetration pricing
B. Price skimming
C. Psychological pricing
D. Price lining
22: If a business knows how many units will be sold and what the fixed costs and the variable costs will be, ______ allows the selling price to be set to produce a given rate of return.
A. Cost-plus pricing
B. Target-return pricing
C. Penetration pricing
D. Reference pricing
23: Advantages of ______ advertising are that it results in high, repeated exposure at low cost and with limited competition.
A. Internet
B. Magazine
C. Outdoor
D. Direct mail
24: The amount that is added to the overall cost of a product when setting the final selling price to ensure a profit is known as which of the following?
A. Markup
B. The specified percentage
C. Net income
D. Gross margin
25: The success of Walmart is directly related to its ______.
A. Prices
B. Advertising
C. High shrinkage
D. Economy of scale advantages
26: Grouping product prices into ranges such as low-, medium-, and high-priced items is known as which of the following?
A. Prestige pricing
B. Odd pricing
C. Reference pricing
D. Price lining
27: Small businesses can easily fall into the mindset of being concerned about ______ now, and working on improving ______ later.
A. Expenses; income
B. Sales; profit margins
C. Sales; expenses
D. Profit margins; sales
28: Abe’s advertising company is currently working on a TV ad campaign which includes a classic song to position the product. Advertisers hope that the music will bring about a sense of nostalgia among potential customers. Which advertising strategy is Abe’s using?
A. Testimonial
B. Humor
C. Comparative message
D. Slice-of-life message
29: ______ are a common advertising strategy that uses an authority to present the message.
A. Slice-of-life messages
B. Fantasy messages
C. Comparative messages
D. Testimonial messages
30: People often equate quality with price. This belief has led to which of the following pricing strategies?
A. Prestige pricing
B. Odd pricing
C. Reference pricing
D. Price lining
31: What would be the breakeven point in dollars if total fixed costs were $300, the average variable costs were $9, and the price per unit was $18?
A. $16
B. $33
C. $400
D. $600
32: Small business owners can compete with large chains like Walmart and Amazon by focusing on ______.
A. Lower prices
B. Wider selection
C. Flexibility
D. Convenience
33: Creating goodwill rather than making immediate sales is known as ______.
A. Foolish advertising
B. Goodwill advertising
C. Institutional advertising
D. Reverse psychology advertising
34: Using coded or dated coupons can let the researcher compare different media. This is known as ______.
A. Split ads
B. In-store opinions
C. Telephone surveys
D. Response
35: Shoplifting, sweethearting, and retail borrowing are all problems that contribute to ________.
A. Off-price retailing
B. Shrinkage
C. Pyramid schemes
D. Understored trade areas
E. Pop-up retailing
36: _____ are websites where users can add to or edit the content of posted articles.
A. Online newspapers
B. Blogs
C. Wikis
D. Social networking sites
E. Virtual realities
37: ________ marketing is the marketing of goods and services from one organization to another.
A. Distributive
B. Consumer
C. E-commerce
D. Business-to-business
38: Firms offering more technical or expensive products often utilize _____.
A. Billboard campaigns
B. Mass marketing
C. Coupons
D. Personal selling
E. Sampling
39: With a modular structure, a firm _____.
A. Is a company outside a company that is created specifically to respond to an exceptional market opportunity
B. Assembles portions of product provided by outside contractors
C. Is an organization whose members are geographically apart, usually working via e-mail
D. Has a central core of key functions and outsources production
40: Direct selling is characterized by all of these except that it is not _____.
A. A highly interactive form of retailing
B. Taking place in the home
C. Mainly performed by independent agents
D. A low cost method of retailing
41: The idea that a good product will sell itself is associated with the __________ era of marketing.
A. Sales-oriented
B. Market-oriented
C. Production-oriented
D. Value-based marketing
E. Retailing-oriented
42: A noticeable difference between the traditional structures and the team structure is ___________.
A. The absence of a clear chain of command in a team structure
B. Have rules, regulations, and formal standards in place
C. Pay can be based on the skills actually used on the tasks performed
D. Creating the organization's structure
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Price and Promotions in Business Marketing MCQs
