Marketing Quiz Trivia Questions!

2.

What is an external factor that affects the price that a busienss charges for its products?

Operating costs
Variable expenses
Economic conditions
Employee benefits

Correct Answer

A. Economic conditions

Explanation

Economic conditions refer to the state of the overall economy, including factors such as inflation, unemployment rates, and consumer spending habits. These conditions can directly impact a business's pricing strategy as they influence the demand and purchasing power of customers. During a recession or economic downturn, businesses may lower their prices to attract customers and stimulate sales. Conversely, during a period of economic growth, businesses may increase prices to maximize profits. Therefore, economic conditions are an external factor that affects the price a business charges for its products.

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3.

Companies A, B, and C sell similar products. Together, they recently decided to sell their products for the same price. In what unethical activity are the businesses engaging?

Bait-and-Switch
Price fixing
Lass-leader pricing
Gray markets

Correct Answer

A. Price fixing

Explanation

The correct answer is price fixing. Price fixing refers to an unethical activity where competing companies agree to set the same price for their products or services, eliminating competition and manipulating the market. In this scenario, Companies A, B, and C have decided to sell their products for the same price, indicating that they are engaging in price fixing. This activity is illegal in many countries as it restricts consumer choice and can lead to inflated prices.

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4.

A business charges a small company a higher price for a product than it charges a large company for the same product. What does this represent?

Price discrimination
Controlled pricing
Price competition
Regulated pricing

Correct Answer

A. Price discrimination

Explanation

Price discrimination refers to the practice of charging different prices to different customers for the same product or service. In this scenario, the business is charging a higher price to the small company and a lower price to the large company for the same product. This indicates that the business is engaging in price discrimination, as it is treating customers differently based on their size or market power. Price discrimination can be a strategy used to maximize profits by taking advantage of differences in customers' willingness to pay.

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5.

How does technology help businesses when it enables them to obtain and analyze vast amounts of information that impact the pricing function?

By generating profit-and-loss statements
By deciding how much to spend on advertising
By calculating the cost of hiring more employees
By determining the best time to adjust prices

Correct Answer

A. By determining the best time to adjust prices

Explanation

Technology helps businesses when it enables them to obtain and analyze vast amounts of information that impact the pricing function by determining the best time to adjust prices. With the help of technology, businesses can collect and analyze data on factors such as market demand, competitor pricing, and customer behavior. This allows them to identify patterns and trends that can help in making informed decisions about when to adjust prices. By timing price adjustments correctly, businesses can optimize their revenue and profitability.

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6.

What is the advantage to a business of using bar-code pricing?

Easier for customers to read
Reduces required business security
Easier to change prices
Reduces the number of employees needed for sales

Correct Answer

A. Easier to change prices

Explanation

Using bar-code pricing provides the advantage of easier price changes for a business. Barcodes can be easily updated and modified in the system, allowing businesses to adjust prices quickly and efficiently. This eliminates the need for manual price changes on individual products, saving time and effort. With bar-code pricing, businesses can respond promptly to market changes, sales promotions, or any other factors that may require price adjustments.

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7.

What is an example of an unethical pricing practice?

A company prices its products low in an attempt to drive its competitors out of business
A business increases its prices when the cost of the materials to make the products increases
A firm sets a business objective to increase its profit margins over the next five years
A business prices a new product line to reflect high quality and status.

Correct Answer

A. A company prices its products low in an attempt to drive its competitors out of business

Explanation

An example of an unethical pricing practice is when a company prices its products low in an attempt to drive its competitors out of business. This practice is considered unethical because it involves intentionally engaging in predatory pricing tactics to eliminate competition rather than competing fairly in the market. It can harm the overall market by reducing consumer choice and potentially leading to monopolistic practices.

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8.

What pricing tactic might be considered questionable by some businesses?

Matching the prices of a competitor
Developing a complex pricing structure
Marking up prices to earn a profit
Providing a reference price

Correct Answer

A. Developing a complex pricing structure

Explanation

Developing a complex pricing structure might be considered questionable by some businesses because it can confuse customers and make it difficult for them to understand the actual price they are paying. This tactic can also create a perception of unfairness or dishonesty, as customers may feel that the business is intentionally trying to hide or manipulate prices. Additionally, a complex pricing structure can increase administrative costs for the business and make it harder to track and analyze pricing strategies.

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9.

What would be the most appropriate pricing strategy for a business in a small town where unemployment has skyrocketed and the economy is in a downturn?

Below-cost pricing
High-level pricing
Odd-cents pricing
Flexible pricing

Correct Answer

A. Flexible pricing

Explanation

In a small town where unemployment has skyrocketed and the economy is in a downturn, a flexible pricing strategy would be the most appropriate. This is because flexible pricing allows the business to adjust their prices based on the current economic conditions and the financial situation of the local customers. By offering discounts, promotions, or flexible payment options, the business can attract customers who are facing financial difficulties and still make sales despite the challenging economic environment. This strategy helps the business to remain competitive and maintain customer loyalty during tough times.

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10.

What costs do businesses usually include in the price of their products?

Regulations
Inflation
Transportation
Orientations

Correct Answer

A. Transportation

Explanation

Businesses usually include transportation costs in the price of their products. This is because transportation is an essential aspect of getting the products from the manufacturer to the customer. Whether it is shipping goods internationally or delivering them locally, transportation costs are incurred by businesses and are factored into the pricing of their products.

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Marketing Quiz Trivia Questions!

Why do some new companies set their selling prices as low as they can?

Quiz Preview

What is an external factor that affects the price that a busienss charges for its products?

Companies A, B, and C sell similar products. Together, they recently decided to sell their products for the same price. In what unethical activity are the businesses engaging?

A business charges a small company a higher price for a product than it charges a large company for the same product. What does this represent?

How does technology help businesses when it enables them to obtain and analyze vast amounts of information that impact the pricing function?

What is the advantage to a business of using bar-code pricing?

What is an example of an unethical pricing practice?

What pricing tactic might be considered questionable by some businesses?

What would be the most appropriate pricing strategy for a business in a small town where unemployment has skyrocketed and the economy is in a downturn?

What costs do businesses usually include in the price of their products?