Mid - Term AM

What are the ethical considerations of psychological pricing?

• It manipulates consumer perception and can lead to impulsive buying.

• It ensures fair pricing and transparency.

• It has no impact on consumer behavior.

• It is a legal requirement for all businesses.

What psychological effect does charm pricing create?

• It creates a perception of higher value.

• It makes prices appear lower than they are.

• It encourages impulse buying.

• It leads to better customer satisfaction.

What is the strategy of bundle pricing?

• Offering multiple products for a single price

• Selling products individually at a discount

• Providing a subscription service

• Offering a free product with a purchase

How can price affect consumers' perception of product quality and brand prestige?

• Price has no effect on consumers' perception.

• Higher prices can lead to perceptions of higher quality and prestige.

• Lower prices always indicate better quality.

• Price only affects the perception of brand prestige, not quality.

Price anchoring is a cognitive bias where individuals rely heavily on the first piece of information they receive when making decisions. What is this first piece of information called?

• Anchor

• Benchmark

• Reference point

• Starting point

Why is transparency important in pricing, and what obligations do businesses have?

• Transparency builds trust and ensures fair competition; businesses must disclose pricing details.

• Transparency is not important; businesses have no obligations.

• Transparency only benefits consumers; businesses should keep pricing secret.

• Transparency is important for marketing; businesses must advertise their prices.

What is Digital Marketing in the context of the promotional mix?

• A method of direct selling

• A form of online advertising

• A strategy for public relations

• A type of personal selling

Which platform is commonly used for social media marketing in B2C campaigns?

• Linkedln

• MySpace

• Tumblr

• Instagram

What is the first step in creating a marketing budget?

• 
  Identify your marketing goals

• 
  Allocate funds to different channels

• Analyze past marketing performance

• 
  Set a timeline for the budget

Which of the following is an example of sales promotion?

• A television commercial

• A press release

• 
  A discount coupon

• 
  A cold call from a salesperson