Tag: pricing strategies

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

Penetration pricing is opposite to the.

  1. Dual pricing method

  2. Administrated pricing method

  3. Expected pricing method

  4. Skimming pricing method
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Penetration pricing involves setting a low initial price to capture market share, which is the opposite of skimming pricing, where a high initial price is set to maximize revenue from early adopters.

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

In which method of pricing does a manufacturer sell the same product at two or more different prices?

  1. Administered pricing

  2. Dual pricing

  3. Monopoly pricing

  4. Skimming pricing
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Dual pricing involves selling the same product at different prices to different customers or in different markets. This is a form of price discrimination.

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

Example of skimming pricing.

  1. First edition of text-books

  2. Railway freight rates

  3. Bus fares

  4. All the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Skimming pricing involves setting a high initial price for a new product to capture consumer surplus. Textbooks, especially first editions, are often priced high to recover development costs before cheaper versions or used copies become available.

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

A very high price for a new product initially and to reduce the price gradually as competitors enter the market, is known as.

  1. Dual pricing

  2. Skimming pricing

  3. Monopoly pricing

  4. Administered pricing
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Skimming pricing is defined by launching a product at a high price to target early adopters and then gradually lowering the price to attract more price-sensitive customers as competition increases.

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

Match the following.

$1$. Spatial gap a) Customers make their purchase at regular intervals, whereas production has to be organised on a continuous process
$2$. Temporal gap b) Consumers are usually scattered, whereas production is concentrated in a few centres
$3$. Perceptional gap c) Customers cannot have full information of producers and products available, this prevents free exchanges
$4$. transactional gap d) Manufactureres organise large-scale production, whereas customers prefer to buy only in small quantities

  1. $1$-a, $2$-c, $3$-d, $4$-b

  2. $1$-b, $2$-a, $3$-d, $4$-c

  3. $1$-a, $2$-b, $3$-d, $4$-c

  4. $1$-b, $2$-a, $3$-c, $4$-d
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Spatial gap relates to the distance between producers and consumers (b). Temporal gap relates to the difference in timing between production and consumption (a). Perceptional gap relates to information asymmetry (c). Transactional gap relates to the difference in quantities (d).