Free Marketing MCQs with Answers

• A. season pricing
• B. emergency pricing
• C. channel pricing
• D. time pricing

Explanation: Time pricing varies the price or buying opportunity according to a time limit, such as ordering within 20 minutes of a television…

• A. escalator clauses
• B. reduction of discounts
• C. unbundling
• D. delayed quotation pricing

Explanation: An escalator clause allows the seller to increase the contract price for stated inflation or cost increases before delivery.

• A. price-war traps
• B. shallow-pockets traps
• C. low-quality traps
• D. all of above

Explanation: Price cutting can trigger a price war, expose a firm with shallow pockets to cash-flow pressure, and make customers suspect low quality.

• A. analyzing prices of competitor's
• B. estimating costs
• C. determining demand
• D. select pricing objective

Explanation: Pricing begins by selecting the pricing objective, such as profit maximisation, market share growth, or survival.

• A. markup pricing
• B. target return pricing
• C. target return costing
• D. markup costing

Explanation: Target-return pricing sets a price by adding the return desired on the investment to the cost and expected sales volume.

• A. reduction of discounts
• B. unbundling
• C. delayed quotation pricing
• D. escalator clauses

Explanation: Unbundling means separating a previously combined package and charging for its components individually.

• A. fourth-degree discrimination
• B. second-degree price discrimination
• C. first-degree price discrimination
• D. third-degree discrimination

Explanation: Third-degree price discrimination charges different prices to identifiable customer groups, such as students, seniors, or business and…

• A. One seller, many buyers
• B. One buyer, many sellers
• C. many sellers, many buyers
• D. None of above

Explanation: In a Dutch auction, the auctioneer starts with a high price and lowers it until a buyer accepts, so the usual structure is one seller and…

• A. Australian auctions
• B. English auctions
• C. Dutch auctions
• D. Sealed-bid auctions

Explanation: Dutch auctions can operate in either direction: a seller lowers the price for many buyers, or a buyer lowers the acceptable price among…

• A. image pricing
• B. channel pricing
• C. customer segment pricing
• D. product-form pricing

Explanation: Image pricing charges different prices for essentially the same offering because consumers perceive different images or prestige levels.

• A. unit cost
• B. break-even volume
• C. target return price
• D. target return cost

Explanation: Break-even volume is calculated as fixed cost divided by the contribution per unit, where contribution equals selling price minus variable…

• A. non-functional discount
• B. functional discount
• C. quantity discount
• D. descriptive discount

Explanation: A functional discount is granted to channel members for performing distribution functions such as storage, selling, or delivery.

• A. current product in current market
• B. current products in new market
• C. new products for new markets
• D. new products in new market

Explanation: Market penetration seeks greater sales of an existing product in an existing market, often through promotion, wider distribution, or…

• A. Three phases
• B. Four phases
• C. Five phases
• D. Six phases

Explanation: The value creation and delivery sequence has three phases: choosing the value, providing the value, and communicating the value.

• A. pricing collaborations
• B. transport alliances
• C. room service alliances
• D. special discounts

Explanation: When related businesses such as hotels and rental-car companies coordinate offers or discounts, they are collaborating in pricing to…

• A. providing the value
• B. choosing the value
• C. making the value
• D. communicating the value

Explanation: The sequence begins by choosing the value, followed by providing it and then communicating it.

• A. new products in new market
• B. current product in current market
• C. new products in current markets
• D. new products for new markets

Explanation: Product development means introducing new or improved products to a company’s existing markets.

• A. procurement
• B. technology development
• C. infrastructure of firm
• D. all of the above

Explanation: Support activities in Porter’s value chain include procurement, technology development, and firm infrastructure, along with human-resource…

• A. determining specific features
• B. determining product price
• C. determining product inventory
• D. both A and B

Explanation: Providing value covers decisions that turn the chosen value into a market offering, including product features and pricing.

• A. customer acquisition process
• B. the new-offering process
• C. customer relationship management
• D. the strategic management process

Explanation: Customer relationship management builds customer understanding, develops individualised offerings and strengthens long-term relationships.