All Free Management Sciences MCQs with Answers

• A. presenting quota
• B. demonstrating quota
• C. prospecting
• D. qualifying

Explanation: Prospecting is the search for and identification of potential customers.

• A. target market
• B. planned value proposition
• C. sales, profit goals, market share
• D. developing mission statement

Explanation: The second part of a marketing strategy statement describes the planned value proposition, explaining how the firm intends to create value…

• A. discount and allowances
• B. zone price adjustment
• C. basing point adjustment
• D. geographic adjustment

Explanation: Discounts and allowances adjust prices for conditions such as buying in large volume, paying promptly or purchasing during an off-season.

• A. value based pricing
• B. cost based pricing
• C. discount based pricing
• D. ceiling based pricing

Explanation: Value-based pricing begins with the customer's perceived value and uses that value to set the price before finalizing the rest of the…

• A. cost ceiling
• B. cost floor
• C. price ceiling
• D. price floor

Explanation: A price ceiling is the highest price a seller is prepared or permitted to charge, beyond which demand or transactions are not accepted.

• A. determine incurred costs
• B. design product
• C. assess needs of customer
• D. set target price

Explanation: The value-based pricing sequence assesses customer value, sets a target price, determines allowable costs and then designs the product to…

• A. segmented pricing
• B. psychological pricing
• C. promotional pricing
• D. geographical pricing

Explanation: Psychological pricing sets prices with the buyer's mental response in mind, such as using 999 instead of 1,000 or signalling prestige…

• A. growth stage
• B. lately buying stage
• C. segmenting stage
• D. targeting stage

Explanation: Once a newly developed product proves that customers accept it, sales and market acceptance begin to rise, indicating the growth stage.

• A. set price based on cost
• B. convince buyer about products value
• C. design a product
• D. determine cost of product

Explanation: In cost-based pricing, the firm first designs the product, determines its cost and sets a price from that cost, then communicates the…

• A. markets
• B. consumers
• C. competitors
• D. all of above

Explanation: Successful new-product development requires knowledge of the target markets, consumer needs and competing offerings.

• A. discount
• B. value added tax
• C. price
• D. tax

Explanation: Price is the amount of money, or equivalent value, that customers give up to obtain the benefits of a product or service.

• A. market skimming pricing
• B. market penetration strategy
• C. business line pricing
• D. product line pricing

Explanation: Market-skimming pricing starts a new product at a high price to capture revenue from customers willing to pay more, then may lower the…

• A. segmented pricing
• B. psychological pricing
• C. promotional pricing
• D. geographical pricing

Explanation: Segmented pricing charges different prices for the same product or service according to customer, location, timing or other segment…

• A. product development
• B. growth
• C. maturity and decline
• D. all of above

Explanation: The product life cycle normally includes product development, introduction, growth, maturity and decline.

• A. high
• B. low
• C. average
• D. moderate

Explanation: During the growth stage, sales expand and promotional and distribution costs are spread over more customers, so cost per customer is…

• A. crowdsourcing
• B. internal sourcing
• C. off sourcing
• D. off shoring

Explanation: Crowdsourcing obtains ideas or solutions from a broad community, including customers, employees and the public.

• A. price fixing
• B. predatory pricing
• C. price maintenance
• D. discriminatory pricing

Explanation: Price fixing occurs when competing sellers coordinate or agree on prices instead of allowing competition to determine them.

• A. set price based on cost
• B. convince buyer about products value
• C. design a product
• D. determine cost of product

Explanation: Cost-based pricing begins by designing the product, then determining its cost before setting a price and communicating the product’s…

• A. design a product
• B. determine cost of product
• C. set price based on cost
• D. convince buyer about products value

Explanation: The process starts with designing the product, after which the firm calculates its cost and sets a price based on that cost.

• A. assess needs of customer
• B. set target price
• C. determine incurred costs
• D. design product

Explanation: Value-based pricing starts with understanding customer needs and how customers perceive the product’s value.