Marketing mix test 01

What are the 4Ps in marketing mix

• Place, People, Product, Psychology

• Promotion, Place, People, Product

• Promotion, Place, Price, Product

• Product, Positioning, Place, Promotion

One example of a tangible attribute of a product is ...

• customer opinion

• product that cannot be measured

• open-ended survey

• color of a car

the subjective opinions of customers about a product, which cannot be measured or compared easily are called ..... attributes.

• intangible

• tangible

• tangerine

• informative

Pricing is important because of these, except ...

• it impacts on the level of value added by the business to bought-in components

• it affects the revenue and profit made by a business due to its impact on demand

• it helps establish the psychological brand image of a product

• it identifies the need for a balanced product portfolio

Setting a price by calculating a total unit cost for the product and then adding a fixed profit mark-up is called ...

• mark-up pricing

• cost-plus pricing

• marginal-cost pricing

• loss leaders

Psychological pricing is ...

• charging different groups of consumers different prices for the same good or service.

• setting a price at a level which matches consumers' views about a product's perceived value.

• setting prices based on the variable costs of making a product, in order to make a contribution towards fixed costs and profit.

• setting a relatively low price to achieve a high volume of sales.

Pricing decision is an important one because ...

• it has a major impact on the quantity sold and therefore market share.

• it determines whether the costs of production are covered and therefore whether a profit is made.

• both two answers are wrong.

• both two answers are right.

One reason why a business might use competitive pricing and not a cost-based pricing method for an existing product.

• To meet a business objective of gaining market share by pricing at a level no greater than that of competitors.

• To focus on profit per unit.

• To gain market share by pricing at a level much greater than that of competitors.

• To position the product in a higher-class segment.

The reason(s) why new product development is important to a consumer products manufacturers.

• New products are not needed to differentiate from competitors.

• New product development will add innovative features to consumer products.

• Older products will not appear dated.

• All of the answers are correct.

Skimming pricing strategy is ...

• supply and prices change to reflect availability

• setting a price low to enter a mass market

• setting a price high to attract early adopters of a new product

• discount supermarkets charge low prices