Question 1

Price fixing is most likely to be found in industries where brand _______ is difficult, such as oil, paper, glass and chemicals.

Accepted Answer

A) protection 
B) standardization 
C) differentiation 
D) penetration 
A) protection 
B) standardization 
C) differentiation 
D) penetration

Question 2

Which of the following is the most common form of "competitive bidding"?

Accepted Answer

A) Auctions 
B) Sales 
C) Price bundling 
D) Putting out to tender 
A) Auctions 
B) Sales 
C) Price bundling 
D) Putting out to tender

Question 3

A combination of high price and high promotion expenditure is called a rapid penetration strategy.

Accepted Answer

A) True 
 B)False

Question 4

Penetration pricing strategies are more likely in which of the following situations:

Accepted Answer

A) Where the company is seeking to dominate the market 
B) Where they are comfortable to establish a position in the market initially and make money later 
C) Where they seek to create a barrier to entry by competitors 
D) All of the above situations are more likely 
A) Where the company is seeking to dominate the market 
B) Where they are comfortable to establish a position in the market initially and make money later 
C) Where they seek to create a barrier to entry by competitors 
D) All of the above situations are more likely

Question 5

Positioning refers to which of the following?

Accepted Answer

A) The choice of pricing and the quality associations that arise as a result 
B) The choice of target market and differential advantage 
C) The choice of pricing and how the company wishes to compete 
D) Where the company wishes to compete and pricing strategy 
A) The choice of pricing and the quality associations that arise as a result 
B) The choice of target market and differential advantage 
C) The choice of pricing and how the company wishes to compete 
D) Where the company wishes to compete and pricing strategy

Question 6

How competitors react to pricing changes depends on which of the following?

Accepted Answer

A) Their past reputation for price changes 
B) Depends on their competitive situation 
C) Their strategic objectives 
D) All of the above 
A) Their past reputation for price changes 
B) Depends on their competitive situation 
C) Their strategic objectives 
D) All of the above

Question 7

Which of the following influences price levels?

Accepted Answer

A) Competitive marketing strategies 
B) New product launch strategies 
C) Positioning strategies 
D) All of the above 
A) Competitive marketing strategies 
B) New product launch strategies 
C) Positioning strategies 
D) All of the above

Question 8

It may be necessary to ignore a competitor's price rise when there is(are) _______.

Accepted Answer

A) rising costs 
B) excess demand 
C) excess supply 
D) price sensitive customers 
A) rising costs 
B) excess demand 
C) excess supply 
D) price sensitive customers

Question 9

A "build objective" implies the maintenance or raising of profit margins even though sales and/or market share are falling.

Accepted Answer

A) True 
 B)False

Question 10

In which of the following circumstances would you initiate a price cut?

Accepted Answer

A) Rising costs 
B) Excess demand 
C) Mature market 
D) Price war unlikely 
A) Rising costs 
B) Excess demand 
C) Mature market 
D) Price war unlikely

Question 11

The "build objective" for price sensitive markets implies which of the following?

Accepted Answer

A) Implies price lower than competition 
B) Implies price higher than competition 
C) Implies prices following the market leader 
D) Implies prices set at market rates 
A) Implies price lower than competition 
B) Implies price higher than competition 
C) Implies prices following the market leader 
D) Implies prices set at market rates

Question 12

Trade-off analysis (otherwise known as conjoint analysis) measures the trade-off between price and other product features so that their effects on product preference can be established.

Accepted Answer

A) True 
 B)False

Question 13

Where product profiles consisting of product features and price are described to consumers and respondents are asked to name their preferred profile, this is called which of the following?

Accepted Answer

A) Product profiling 
B) Experimentation 
C) Trade off analysis 
D) Price profiling 
A) Product profiling 
B) Experimentation 
C) Trade off analysis 
D) Price profiling

Question 14

Price fixing is an ethical concern as companies _______ with each other to ensure that everyone charges the same or similar prices.

Accepted Answer

A) argue 
B) disagree 
C) compete 
D) collude 
A) argue 
B) disagree 
C) compete 
D) collude

Question 15

Low price operators tend to engage in aggressive cost management and also seek as much _______ as possible in order that fixed costs can be spread over a larger number of units and thus reduced.

Accepted Answer

A) scale 
B) scope 
C) rates 
D) appeal 
A) scale 
B) scope 
C) rates 
D) appeal

Question 16

Which of the following is not a problem associated with cost-based pricing?

Accepted Answer

A) The procedure is illogical because a sales estimate is made before a price is set 
B) It focuses on internal costs rather than customers' willingness to pay 
C) It leads to an increase in price as sales fall 
D) It attempts to undertake break even analysis 
A) The procedure is illogical because a sales estimate is made before a price is set 
B) It focuses on internal costs rather than customers' willingness to pay 
C) It leads to an increase in price as sales fall 
D) It attempts to undertake break even analysis

Question 17

Competitor-orientated pricing may take any of three forms. Which of the following is not one of these forms?

Accepted Answer

A) Where companies set prices to average industry costs 
B) Where firms follow the prices charged by leading competitors 
C) Where contracts are awarded through a competitive bidding process 
D) Where producers take the going rate price 
A) Where companies set prices to average industry costs 
B) Where firms follow the prices charged by leading competitors 
C) Where contracts are awarded through a competitive bidding process 
D) Where producers take the going rate price

Question 18

A skimming strategy is most suitable where _______.

Accepted Answer

A) consumers are less price sensitive 
B) consumers are more price sensitive 
C) there are few competitors present in the segment 
D) there are many competitors present in the segment 
A) consumers are less price sensitive 
B) consumers are more price sensitive 
C) there are few competitors present in the segment 
D) there are many competitors present in the segment

Question 19

Price cuts are likely to be pursued when the company has a build or hold strategic objective.

Accepted Answer

A) True 
 B)False

Question 20

Price setting can be based on which of the following?

Accepted Answer

A) Market-orientated 
B) Cost-orientated 
C) Competitor-orientated 
D) All of the above 
A) Market-orientated 
B) Cost-orientated 
C) Competitor-orientated 
D) All of the above

Price fixing is most likely to be found in industries where brand _______ is difficult, such as oil, paper, glass and chemicals.

Which of the following is the most common form of "competitive bidding"?

A combination of high price and high promotion expenditure is called a rapid penetration strategy.

Penetration pricing strategies are more likely in which of the following situations:

Positioning refers to which of the following?

How competitors react to pricing changes depends on which of the following?

Which of the following influences price levels?

It may be necessary to ignore a competitor's price rise when there is(are) _______.

A "build objective" implies the maintenance or raising of profit margins even though sales and/or market share are falling.

In which of the following circumstances would you initiate a price cut?

The "build objective" for price sensitive markets implies which of the following?

Trade-off analysis (otherwise known as conjoint analysis) measures the trade-off between price and other product features so that their effects on product preference can be established.

Where product profiles consisting of product features and price are described to consumers and respondents are asked to name their preferred profile, this is called which of the following?

Price fixing is an ethical concern as companies _______ with each other to ensure that everyone charges the same or similar prices.

Low price operators tend to engage in aggressive cost management and also seek as much _______ as possible in order that fixed costs can be spread over a larger number of units and thus reduced.

Which of the following is not a problem associated with cost-based pricing?

Competitor-orientated pricing may take any of three forms. Which of the following is not one of these forms?

A skimming strategy is most suitable where _______.

Price cuts are likely to be pursued when the company has a build or hold strategic objective.

Price setting can be based on which of the following?

The Nature of Marketing

The Global Marketing Environment

Understanding Customer Behaviour

Marketing Research and Customer Insights

Market Segmentation, Targeting and Positioning

Value Through Products and Brands

Value Through Services, Relationships and Experiences

Distribution: Delivering Customer Value

Integrated Marketing Communications 1: Mass Communications Techniques

Integrated Marketing Communications 2: Direct Communications Techniques

Digital Marketing

Filters

Exam 8: Value Through Pricing

Price fixing is most likely to be found in industries where brand _______ is difficult, such as oil, paper, glass and chemicals.

Which of the following is the most common form of "competitive bidding"?

A combination of high price and high promotion expenditure is called a rapid penetration strategy.

Penetration pricing strategies are more likely in which of the following situations:

Positioning refers to which of the following?

How competitors react to pricing changes depends on which of the following?

Which of the following influences price levels?

It may be necessary to ignore a competitor's price rise when there is(are) _______.

A "build objective" implies the maintenance or raising of profit margins even though sales and/or market share are falling.

In which of the following circumstances would you initiate a price cut?

The "build objective" for price sensitive markets implies which of the following?

Trade-off analysis (otherwise known as conjoint analysis) measures the trade-off between price and other product features so that their effects on product preference can be established.

Where product profiles consisting of product features and price are described to consumers and respondents are asked to name their preferred profile, this is called which of the following?

Price fixing is an ethical concern as companies _______ with each other to ensure that everyone charges the same or similar prices.

Low price operators tend to engage in aggressive cost management and also seek as much _______ as possible in order that fixed costs can be spread over a larger number of units and thus reduced.

Which of the following is not a problem associated with cost-based pricing?

Competitor-orientated pricing may take any of three forms. Which of the following is not one of these forms?

A skimming strategy is most suitable where _______.

Price cuts are likely to be pursued when the company has a build or hold strategic objective.

Price setting can be based on which of the following?

The Nature of Marketing

The Global Marketing Environment

Understanding Customer Behaviour

Marketing Research and Customer Insights

Market Segmentation, Targeting and Positioning

Value Through Products and Brands

Value Through Services, Relationships and Experiences

Distribution: Delivering Customer Value

Integrated Marketing Communications 1: Mass Communications Techniques

Integrated Marketing Communications 2: Direct Communications Techniques

Digital Marketing

Filters