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Baines, Fill & Page: Marketing

Chapter 10

Instructions

Choose your answers from a-d by clicking the radio button next to each choice and then press 'Submit' to get your score.

Question 1

This is when a union of manufacturers is developed to control prices:

Question 2

This is the difference between the price that the consumer is willing to pay for a product or service and the price that they actually end up paying, when the latter is lower than the actual price charged:

Question 3

This is the cost of plant, equipment and machinery owned by a business:

Question 4

These are costs which do not vary according to the number of units of product made or service sold:

Question 5

This is when a product or service is offered together with another typically complementary product or service which is also available separately in order to make the original product or service seem more attractive:

Question 6

This is the difference between the revenues generated from undertaking one particular activity compared with another feasible revenue-generating activity:

Question 7

This is the amount the customer has to pay to receive a good or service:

Question 8

This is the percentage change in volume demanded as a proportion of the percentage change in price, usually expressed as a negative number:

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 pricing formula where customers/consumers are reliant on a particular product/service and are therefore price insensitive:

Question 10

This is involves the setting of different prices for different groups of people:

Question 11

This occurs when companies conspire to fix, raise, and maintain prices, and allocate sales volumes in their industries:

Question 12

This is the price band customers judge the purchase price of goods and services against in their own minds:

Question 13

These are proxy measures used by customers to estimate a product or service's reference price. Examples include quality, styling, packaging, sale signs, and odd number endings:

Question 14

This is when a product or service is offered together with another typically complementary product or service which is not available separately in order to make the original product or service seem more attractive (e.g. a CD with a music magazine):

Question 15

This typically occurs in large organisations and represents the pricing approach used when one unit of a company sells to another unit within the same company:

Question 16

The pricing approach where prices are set based on what competitors are charging is called:

Question 17

The pricing approach where prices are set based on what customers believe to offer value is called:

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?

Question 19

Which of the following occurs when competitors’ pricing policies are almost exclusively focused on competitors rather than customers?

Question 20

With this pricing approach, the pricing process begins with the customer, not the cost of the product offering: