Marketing Management Questions and Answers Part-4

1. Which of the following is NOT a marketing objective?
a) Positioning
b) Volume sales
c) Cash flow
d) all of the above

Answer: c

2. What is price skimming?
a) Setting an initially-high price which falls as competitors enter the market
b) Setting a high price which consumers perceive as indicating high quality
c) Setting a low price to "skim off" a large number of consumers
d) none of the above

Answer: a

3. Setting a price below that of the competition is called:
a) Penetration pricing
b) Skimming
c) Competitive pricing
d) none of the above

Answer: a

4. A profit calculated by adding a percentage to the costs of production is called:
a) Mark-up
b) Breakeven
c) Margin
d) none of the above

Answer: a

5. A profit calculated on the basis of a percentage of the selling price is called:
a) Mark-up
b) Breakeven
c) Margin
d) none of the above

Answer: c

6. Calculating prices on the basis of what the market will pay is called:
a) Competitive pricing
b) Demand pricing
c) Prestige pricing
d) none of the above

Answer: b

7. Ending prices with 99p is called:
a) Price lining
b) Prestige pricing
c) Odd-even pricing
d) none of the above

Answer: c

8. Bundle pricing is:
a) Providing a bundle of benefits for one price
b) Packaging a group of products together
c) Providing a group of prices for one product category
d) none of the above

Answer: b

9. Advertising used in the early stages of the PLC is called:
a) Pioneering advertising
b) First-sage advertising
c) Launch advertising
d) none of the above

Answer: a

10. What is institutional advertising?
a) Advertising on behalf of charities
b) Advertising conducted by the Government
c) Advertising aimed at building the corporate reputation
d) none of the above

Answer: c