Tag: marketing mix - 4 p's

Questions Related to marketing mix - 4 p's

Under penetration pricing method, the sellers setting a.

commercial applications marketing mix - 4 p's meaning and objectives of pricing pricing strategies pricing

  1. A low price

  2. Higher price

  3. Minimum price

  4. Normal price

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Correct Option: A

Sealed bid pricing is followed in the case of.

commercial applications marketing mix - 4 p's meaning and objectives of pricing pricing strategies pricing

  1. Specific job works

  2. Industrial suppliers

  3. Both (A) and (B)

  4. None of these

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Correct Option: A

Negotiated pricing is adopted by.

commercial applications marketing mix - 4 p's meaning and objectives of pricing pricing strategies pricing

  1. Wholesalers

  2. Retailers

  3. Industrial suppliers

  4. All the above

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Correct Option: C

Which method is suitable when the producer is not sure of market reactive for a price?

commercial applications marketing mix - 4 p's meaning and objectives of pricing pricing strategies pricing

  1. Skimming pricing

  2. Administered pricing

  3. Accepted pricing

  4. Sealed bid pricing

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Correct Option: C

The total cost consists of the cost of materials and one or more of the following:-

commercial applications marketing mix - 4 p's meaning and objectives of pricing pricing strategies pricing

  1. Order cost

  2. Carrying cost

  3. Shortage cost

  4. All the above

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Correct Option: D

A firm producing a large number of products will follow the pricing strategy known as _______.

commercial applications marketing mix - 4 p's meaning and objectives of pricing pricing strategies pricing

  1. cost plus pricing

  2. differential pricing

  3. product line pricing

  4. price leadership

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Correct Option: C
Explanation:

A product line is a group of related products under the single brand sold by the same company. Product line pricing refers to the process of setting prices for multiple products that a company offers in coordination to one another. Product line pricing aims to maximize the sales of different products by creating more complementary rather than competitive products. 

Which cost is taken into consideration for 'make or buy' decisions?

commercial applications marketing mix - 4 p's meaning and objectives of pricing pricing strategies pricing

  1. Prime cost

  2. Total cost

  3. Cost of Production

  4. Relevant cost

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Correct Option: C
Explanation:

Make or buy decision is the production decision made by the company i.e whether to buy the product or to manufacture the product. The cost of buying and manufacturing are both taking into consideration while making the decision. Hence, the cost of production is considered for 'make or buy' decision.

Which of the following pricing strategies are used when adopting a penetration pricing strategy?

commercial applications marketing mix - 4 p's meaning and objectives of pricing pricing strategies pricing

  1. Charging high price

  2. Charging low price

  3. Charging competitive price

  4. None of the above

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Correct Option: B
Explanation:

Penetration pricing strategy is a strategy where initially the prices are set low to rapidly reach a vast section of the market. This strategy initiates word of mouth and also attracts target consumers with the help of the low price set by the company. It gives the marketer a competitive advantage and also inceases the customer base of the company.

Which of the following is not concerned with the Price?

commercial applications marketing mix - 4 p's meaning and objectives of pricing pricing strategies pricing

  1. Advertising

  2. List price

  3. Margins

  4. Discounts

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Correct Option: A
Explanation:

Advertising is the part of promotion mix not a price mix in marketing mix.

If the material is priced at the value that is realizable at the time of issue such a pricing method is referred to as   _________________.

commercial applications marketing mix - 4 p's meaning and objectives of pricing pricing strategies pricing

  1. Standard price method

  2. Replacement method

  3. LIFO method

  4. Weighted average cost method

  5. FIFO method

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Correct Option: B
Explanation:

If the material is priced at the value that is realizable at the time of issue, such pricing method is called replacement method. This method is also called constant market price method.