Tag: meaning and objectives of pricing

Questions Related to meaning and objectives of pricing

A pricing policy designed to have the same price to customer in a specific area is?

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

  1. Zone pricing(Geographical pricing)

  2. Competitive pricing

  3. Customary pricing

  4. Monopoly pricing

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Correct Option: A

Under skimming pricing, the fixation of price is?

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

  1. Low

  2. High

  3. Medium

  4. Minimum

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Correct Option: B

Cash discounts to customers.

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

  1. Increase output

  2. Reduce prices

  3. Increase prices

  4. Encourage immediate payment

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Correct Option: B

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.