Multiple Choice Quiz
1
Which of the following is not a method of setting prices?
A) Competitor-oriented pricing
B) Market-led pricing
C) Sales-focused pricing
D) Cost-based pricing
E) All of the above are methods used for setting prices
2
Where companies set their prices at levels either above, the same as or below their competitors, this is called?
A) A cooperative
B) A cartel
C) Price fixing
D) Benchmarking
E) None of the above
3
Which of the following is a weakness associated with competitor-oriented pricing?
A) Competitor-oriented pricing is risky where a firm's cost position is weaker than its competitors
B) Competitor-oriented pricing lets competitors dictate prices, therefore a loss of reputation as a market leader may emerge
C) Competitor-oriented pricing doesn't take into account economic conditions that may affect pricing decisions
D) Competitor-oriented pricing is too simplistic and easy to use
E) Competitor-oriented pricing is banned under European price fixing legislation
4
Trade-off analysis is also known as which of the following?
A) Balanced analysis
B) Traffic analysis
C) Value analysis
D) Customer analysis
E) Conjoint analysis
5
Experimental pricing research uses which of the following?
A) Trial and error to determine prices
B) Test marketing to determine prices
C) Market segmentation to determine prices
D) Positioning to determine prices
E) Laboratory setting to determine prices
6
A combination of high price and high promotion expenditure is called which of the following?
A) Rapid penetration strategy
B) Slow skimming strategy
C) Rapid skimming strategy
D) Slow penetration strategy
E) None of the above
7
A skimming strategy is most suitable where:
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
E) The products are in their decline stage
8
Four strategic objectives are relevant to pricing these are:
A) To build, to harvest, to skim and to maximise
B) To harvest, to reposition, to maximise, to skim
C) To build, to hold, to harvest and to reposition
D) To harvest, to skim, to hold and to maximise
E) None of the above
9
Which of the following circumstances may indicate a price increase?
A) Harvest objective
B) Excess supply
C) Build objective
D) Pre-empt competitive entry
E) None of the above circumstances
10
When importers buy products from distributors in one country and sell them in another to distributors who are not part of the manufacturer's normal distribution; caused by big price differences for the same product between different countriesis, this is referred to as which of the following?
A) Exporting
B) Product dumping
C) Parallel importing
D) Price differential processing
e) Predatory pricing
11
The amount a customer would have to pay to make the total life cycle costs of a new and a reference product the same, is referred to as which of the following?
A) Referral pricing
B) Lifecycle costs
C) Economic value to customer
D) Trade off analysis
E) Value analysis
12
"Break even analysis" is used to estimate which of the following?
A) Marginal costs
B) Sales volume
C) Profits
D) Fixed & variable costs
E) Different price levels