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MKTG2203 Quiz 3
30 Multiple Choice Questions circle the letter of your selected answer
1. Which of the following statements is incorrect?
a. An exchange of value always involves a monetary transaction.
b. Price is a measure of value for buyers.
c. Price is a measure of value for sellers.
d. Not-for-profit organisations may charge a price for their products.
e. All of the options listed.
2. An organisation sets a high price for its product with the aim of communicating a
high quality image. This could be described as an example of
a. a qualitative pricing objective.
b. a quantitative pricing objective.
c. positioning
d. both a and c.
e. both b and c.
3. Which of the following would not be a consideration of a pricing objective based on
profitability?
a. Sales volume
b. Production and distribution costs
c. Return on investment
d. Sales revenue
e. All of the options listed would be potential considerations.
4. Which of the following price situations is inherently illegal?
a. An organisation establishes an artificially low price for one item in a product line in order to
attract buyers into a store, but has sufficient stock of that item and is willing to sell it for that
price.
b. An organisation charges different prices to customers in different geographic regions due
to higher transportation costs.
c. An organisation offers a low entry price for a basic product, and then charges more for
desirable additional parts or functions.
d. An organisation offers volume purchase discounts.
e. None of the options listed.
5. When a $1.95 400gram bottle of tomato paste is also advertised at 49 cents per 100
grams this is an example of
a. bait pricing
b. bundle pricing
c. unit pricing
d. captive pricing
e. bait and switch pricing
6. Which of the following would not be a consideration for an organisation in setting
prices?
a. Demand
b. Cost
c. Competition
d. All of the options listed are pricing considerations
e. Both b and c
QUIZ 3
7. Hotel rooms are most expensive on weekends and during peak holiday times. This
pricing strategy is best described as
a. inelastic pricing
b. scheduled pricing
c. prestige pricing
d. demand-based pricing
e. cost-plus pricing
8. Pepsi cola soft drink 24 packs of cans selling at near cost price by Woolworths is
an example of a
a. price floor
b. price leader
c. loss leader
d. break-even analysis
e. competition based pricing
9. Calculate the break-even point for an organisation for which you have the following
information: Fixed costs 100 dollars, price per unit 10 dollars, variable cost per unit 5
dollars.
a. 10 units
b. 20 units
c. 30 units
d. 40 units
e. 50 units
10. Bunnings Hardware advertises that if a customer happens to find a cheaper price
on one of their stocked items at a competing store, they will beat that price by 10 per
cent. Which of the following factors is most likely to allow Bunnings to compete on
price in this way?
a. Low variable costs
b. Low fixed costs
c. Economies of scale in purchasing
d. A higher break even point
e. Its marginal cost on their products exceeds their average cost
11. Which of the following best describes the broad concept of a market?
a. A group of customers with heterogeneous needs and wants.
b. A group of customers with homogenous needs and wants.
c. The business-to-consumer market.
d. The business-to- business market.
e. None of the options listed.
12. Business markets can be broken down into
a. reseller markets.
b. producer markets.
c. government markets.
d. institutional markets.
e. All of the options listed.
QUIZ 3
13. Virgin Airways has identified two segments of the Australian market that it can
offer the most value; the business traveller and the leisure traveller. Having identified
and gained an understanding of those markets, Virgin Airways uses this knowledge to
develop a marketing approach for each segment. This approach is known as
a. the marketing mix
b. market research
c. the target marketing concept
d. tailored marketing
e. market segmentation
14. Which of the following options best describes the target marketing concept?
a. Identifying smaller, more targetable market segments, then tailoring the marketing mix to
best appeal to those segments.
b. Identifying business-to-consumer markets, then tailoring the marketing mix to best appeal
to those markets.
c. Identifying business-to-business markets, then tailoring the marketing mix to best appeal
to those markets.
d. Developing a marketing mix for market.
e. the None of the options listed.
15. Which of the following would be an advantage of a one-to-one marketing strategy?
a. Positive word-of-mouth customer referrals
b. Building close relationships with a customer
c. Customer loyalty
d. Potential repeat purchases from the customer
e. All of the options listed are potential advantages.
16. Markets made up of buyers with diverse needs are said to be
a. homogenous.
b. heterogeneous.
c. target markets.
d. mass markets.
e. niche markets.
17. Which of the following concepts forms the basis of target marketing?
a. Market segmentation
b. Market research
c. Market intelligence
d. Marketing strategy
e. The marketing mix
18. Elders provides a comprehensive range of goods and services to farmers. This
specialised approach to target marketing is an example of
a. one-to-one marketing
b. mass marketing
c. product specialisation
d. market specialisation
e. product-market specialisation
QUIZ 3
19. Product or market specialisation approaches will only be beneficial marketing
strategies for an organisation to pursue if
a. clear market segments or product categories exist or can potentially exist in the market.
b. the market is characterised by a wide range of needs and product preferences.
c. individual market segments or product categories are sufficiently large to represent an
opportunity for the organisation to achieve profitable sales volume.
d. All of the options listed.
e. Only a and b.
20. The three main stages of the targeting process, in chronological order, are:
a. targeting, positioning, segmentation.
b. segmentation, positioning, targeting.
c. segmentation, targeting, positioning.
d. targeting, segmentation, positioning.
e. None of the options listed.
21. Which of the following statements is incorrect?
a. A service is a product.
b. A physical good is a product.
c. A service usually involves transfer of ownership.
d. A physical good is tangible, a service is intangible.
e. None of the options listed.
22. The Australian government's Quit for Life campaign aims to encourage
Australians to quit smoking by providing support and education. This campaign is an
example of
a. a good
b. a service
c. a product
d. the total product concept
e. the core product
23. Capilano Honey differentiates its product from competing products using
packaging; a fundamental characteristic. This approach could be best described as
differentiating at which level of the total product concept?
a. core product
b. expected product
c. augmented product
d. potential product
e. actual product
24. At which product level is a marketer most likely to be able to differentiate a
product?
a. Core
b. Expected
c. Augmented
d. None of the options listed
e. Both a and b
QUIZ 3
25. In Australia, Toyota has begun offering fixed price servicing on new cars for the
first 3 years. This approach could be best described as differentiating at which level
of the total product concept?
a. core product
b. expected product
c. augmented product
d. potential product
e. actual product
26. Choose the best option. Consumer products include
a. shopping, convenience and specialty products.
b. shopping, convenience and unsought products.
c. shopping, convenience, specialty and unsought products.
d. shopping, convenience, core and augmented products.
e. shopping, convenience, specialty and core products.
27. Bonds manufactures underwear, singlets, shorts, track suits, hoodies, socks and
t-shirts for men, women and children. Bonds men's underwear is an example of a
a. product item
b. product line
c. product mix
d. specialty product
e. staple product
28. Business-to-business products include
a. parts and materials.
b. equipment.
c. services and supplies.
d. All of the options listed.
e. only a and b.
29. Which of the following depicts the stages of the product adoption process in the
correct sequence?
a. Awareness, interest, trial, evaluation, adoption
b. Awareness, evaluation, interest, trial, adoption
c. Awareness, interest, evaluation, trial, adoption
d. Awareness, interest, trial, adoption, evaluation
e. Awareness, trial, interest, adoption, evaluation
30. Which of the following could not potentially be an example of product
differentiation?
a. An organisation offering a product warranty
b. A car manufacturer offering a model with a built in global positioning system (GPS)
c. An organisation offering a 24 hour product help desk
d. A and c
e. All of the options listed are potentially product differentiators