Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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1.
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Which of the following is not a general alternative pricing mechanism?
a. | Posting. | b. | Skimming. | c. | Market
Pricing. | d. | Penetration. |
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2.
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Which of the following is not a general price-setting strategy international
marketing?
a. | Base plus cost margin. | b. | Standard worldwide price. | c. | Dual
pricing. | d. | Market-differentiated pricing. |
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3.
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What is a Letter of Credit?
a. | An instrument issued by a bank at the request of a buyer in which the bank promises
to pay a specified amount of money on presentation of documents stipulated in the
letter. | b. | A way to establish and maintain a credit card purchase. | c. | Given to shipping
companies who have a line of vessels. | d. | An instrument of currency issued by a foreign
government to the exporter. |
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4.
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On what can transfer prices be based?
a. | Costs and market prices | b. | Internet inquiries | c. | Predisposed
calculations | d. | Predicable trends |
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5.
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Although it is used less often today, this form of countertrade is an
arrangement whereby goods are exchanged directly for other goods of approximate equal value.
a. | Factoring | b. | Price sensitivity | c. | Stratification | d. | Barter |
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6.
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At what level are the majority of pricing decisions made?
a. | The strategic level | b. | The corporate headquarter
level | c. | The local level | d. | In the task orientation
phase |
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7.
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When demand cannot be stimulated by price reduction this is called:
a. | Elastic pricing | b. | Elastic demand | c. | Inelastic
pricing | d. | Inelastic demand | e. | Rubber demand |
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8.
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Which costs of a product include the depreciation of equipment, building rental
and business rates?
a. | fixed operational costs | b. | variable operational costs | c. | fixed sales
costs | d. | variable production costs | e. | fixed production
costs |
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9.
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What is the other term for ethnocentric pricing?
a. | Invention | b. | Standardisation | c. | Evaluation | d. | Adaptation | e. | Cost
based |
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10.
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What approach to pricing based objectives is being followed when companies set
prices to achieve a specific level of return on investment, and may quote the same ex-works price for
both domestic and international markets?
a. | Demand led pricing | b. | Competition led pricing | c. | Rate of
return | d. | Market skimming | e. | Early cash
recovery |
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