Tag: marketing mix - 4 p's

Quizzes (20) Questions (67)

Questions Related to marketing mix - 4 p's

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

The capitalization rate of a company whose market price per share is Rs.28, net income is Rs.20 lakhs and the number of outstanding shares is 5.6 lakh is _____________.

  1. 0.039

  2. 0.078

  3. 0.127

  4. 0.156

  5. 0.254
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Capitalization rate = earning per share / market price of the share
Earnings per share = 20 lakh / 5.6 lakh = Rs. 3.5714 per share.

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

When a firm charges different prices for different groups of customers, it may be accused of _________.

  1. cultural relativism

  2. money laundering

  3. facilitating payments

  4. price discrimination
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Price discrimination is a pricing strategy that charges customers different prices for the same product or service. In pure price discrimination, the seller charges each customer the maximum price he or she will pay. In more common forms of price discrimination, the seller places customers in groups based on certain attributes and charges each group a different price.
Price discrimination is most valuable when the profit from separating the markets is greater than the profit from keeping the markets combined. This depends on the relative elasticity of demand in the sub-markets. Consumers in the relatively inelastic sub-market pay a higher price, while those in the relatively elastic sub-market pay a lower price.

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

The _______ represents the sum of value exchange for the benefit of having or using the product.

  1. Price

  2. Product

  3. Cost

  4. Package
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Price is a value that will purchase a finite quantity, weight or other measure of a good or services. Price is a consideration given in exchange for transfer of ownership. Price forms the essential bases for commercial transactions. It may be fixed by a contract, left to be determined by an agreed upon formula at a future date, or discovered or negotiated during the course of dealings between the parties involved.  

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

Price of the product also depends upon the target customer.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Price is a value that will purchase a finite quantity, weight or other measure of a good or services. Price is a consideration given in exchange for transfer of ownership. The price of a product may increase when the demand increases or reduce when the demand decreases. When the marketer wants to target the niche market, offering a high end product, the price for that product would increase, Where as when the marketer wants to target the lower class or middle class consumers, the prices would be set low. 

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

Which of the following factors do not affect the fixation of the price of a product?

  1. The utility and demand

  2. Cost of the product

  3. Extent of competition in the market

  4. Social culture
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Price is a value that will purchase a finite quantity, weight or other measure of a good or services. Price is a consideration given in exchange for transfer of ownership. The price of a product may increase when the demand increases or reduce when the demand decreases. The cost of production plays the main role while fixing the price for a product as the price is almost always cost+ profit margin. To compete with the other companies in the market, price has to be around or lower than the price offered by the competitor. 

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

Government and legal regulations do not affect the price of a product.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Price is a value that will purchase a finite quantity, weight or other measure of a good or services. Price is a consideration given in exchange for transfer of ownership. The taxes and duties imposed on the goods and services by the government affects the final price of the goods that a consumer has to pay for the product.

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

Which of the following is not a pricing objective?

  1. Surviving in competitive market

  2. Attaining product quality

  3. Obtaining market share leadership

  4. Informing the masses about the product
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Pricing objectives usually include profit maximization, market share, or survival. Informing the masses is a promotional objective, not a pricing one.

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

Price discrimination is defined as ___________.

  1. The practice of charging different prices to different consumers for the goods or services by slightly altering the packaging or features for the different groups

  2. Disregarding the profit motive by favoring one group of buyers over another by charging that group a lower price

  3. The practice of charging different prices to different consumers for the same goods or services

  4. The practice of selling a goods or services for the same to different groups of consumers group but slightly altering, quantity or features of the goods or services for each group
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Price discrimination refers to the charging of different price by the monopolist for the same product.  The differences maybe on the basis of brand wrapper etc. This policy of the monopolist is called price discrimination.

"Price discrimination refers strictly to the practice by a seller of charging different prices from different buyers for the same good" -J.S. Bian

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

Defraction is a situation where:

  1. prices are falling

  2. value of money is rising

  3. output is falling

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Deflation is a general decline in prices for goods and services. It typically correlates with a rise in the purchasing power of money and often occurs during economic contractions where output falls.