Baines, Fill, & Rosengren: Marketing 4e Chapter 9: Multiple choice questions Instructions Answer the following questions and then press 'Submit' to get your score. Question 1 In marketing terms, ___________ refers to what we get for what we pay: a) Revenue. b) Cost. c) Value. d) Product. Question 2 ___________ act as cues by indicating to a potential customer that there is a bargain to be had. a) Odd-number pricing. b) Sale signs. c) Relative price. d) Price surplus. Question 3 This is the cost of plant, equipment and machinery owned by a business: a) Product assets. b) Moving assets. c) Working capital. d) Fixed capital. Question 4 These are costs which do not vary according to the number of units of product made or service sold: a) Fixed costs. b) Moving assets. c) Working capital. d) Fixed capital. Question 5 This is when a product or service is offered together with an offering to make the price look more reasonable: a) Product pricing. b) Price differentiation. c) Pure price bundling. d) Odd-Number pricing. Question 6 This business-to-business pricing approach seeks to understand customers' needs before pricing the offering according to those needs in order to generate a long-term relationship. This is referred to as:: a) Geographical pricing. b) Discount pricing. c) Relationship pricing. d) Value-in-use pricing. Question 7 ____________ occurs when companies temporarily reduce their prices below the standard price for a period of time to raise awareness of the offering to encourage trial, and raise short-term brand awareness. a) Promotional pricing b) Relative price. c) List pricing d) Loss-leader pricing Question 8 This allows us to determine how the quantity of an offering relates to the price at which it is offered: a) Price bundling. b) Price elasticity. c) Price inelasticity. d) Price inflation. Question 9 This occurs when a company charges more than governments perceive is fair for products and/or services; typically by taking advantage of demand where customers/consumers are reliant on a particular product/service: a) Product gouging. b) Price gouging. c) Brand gouging. d) Demand pricing. Question 10 This pricing approach is used when the firm sets prices according to how much customers are prepared to pay: a) Cost-oriented approach. b) Value-oriented approach. c) Competitor-oriented approach. d) Demand-oriented approach. Question 11 _____________ is influenced by perceptions of the fairness of prices set, latitude of price acceptance (customers appear willing to accept a price within a range of prices suggesting a 'price zone of tolerance'), magnitude (absolute price) and frequency of purchase, price presentation (how prices are presented might produce different levels of willingness to pay) and advertising. a) Brand awareness. b) Price perception. c) Willingness to pay. d) Price consciousness. Question 12 Our perception of risk is greater if we are continually reminded of it than if we consider it only at the point of purchase. This is referred to as:: a) purchase context. b) price bonding. c) odd number pricing. d) mark-up price. Question 13 When customers assess prices, they estimate value using __________, because they do not always know the true cost and price of the item that they are purchasing. These pricing cues include: sale signs; odd-number pricing; the purchase context; and price bundling and rebates. a) Pricing strategies. b) Sale price. c) Pricing cues. d) Pricing bundles. Question 14 A 10% increase (decrease) in price produces a 10% decrease (increase) in quantity demanded. This is referred to as: a) zero price elasticity of demand. b) infinite price elasticity of demand. c) unit price elasticity of demand. d) indefinite price elasticity of demand. Question 15 Segmentation pricing is where varying prices are set for different groups of customers. Economists call this approach: a) Price discrimination. b) Internal pricing. c) Listed pricing. d) Cost pricing. Question 16 The pricing approach where prices are set based on what competitors are charging is called the: a) cost-oriented approach. b) demand-oriented approach. c) competitor-oriented approach. d) value-oriented approach. Question 17 The pricing approach where prices are set based on what customers believe to offer value is called the: a) cost-oriented approach. b) demand-oriented approach. c) competitor-oriented approach. d) value-oriented approach. Question 18 Which of the following are aimed at providing customers with the peace of mind of knowing that the company they are purchasing from is competitive in price? a) Price competitiveness. b) Price assurance. c) Reference prices. d) Price guarantee schemes. Question 19 Which of the following occurs when competitors' pricing policies are almost exclusively focused on competitors rather than customers? a) Price differentiation. b) Price fixing. c) Price wars. d) Price guarantees. Question 20 With this pricing approach, the pricing process begins with the customer; not the cost of the product offering: a) Value-based pricing. b) Cost-based pricing. c) Customer-led pricing. d) Sales pricing.