BUS 210 LATEST 2026 TEST PAPER QUESTIONS AND
ANSWERS GRADED A+
1
✔✔17) ________ is one of the most difficult decisions in the marketing mix, since it
directly influences customer perceptions of value.
A) Market characteristics B) Costs C) Pricing D) Strategy - ✔✔C
✔✔18) Price is a measure of the relative value of an item for both the customer and the
________.
A) market characteristics B) costs C) seller D) owner - ✔✔C
✔✔19) Marketers manage all elements of the marketing mix as customers will decide to
buy not just on the price tag but on the perceived value and
A) brand feature costs.C) information search costs.
B) competitive costs.D) associated perceived costs. - ✔✔D
✔✔20) Which of the following statements accurately describes the price-customer cost
relationship?
A) Price is related to cost for the seller, but not the buyer.
B) Price is a measure of the relative value of an item for both the customer and the
seller.
C) Marketers must consider costs from both sides to set an acceptable price.
D) Money is the only potential cost from the customer's view. - ✔✔B
✔✔21) An expectation about the price of a given product is known as A) quote. B)
market price.C) pricing strategy. D) reference price. - ✔✔D
✔✔22) What is the term for the costs of a product that change with each good sold? A)
Break-even margin B) Cost of goods soldC) Unit cost D) Variable costs - ✔✔D
✔✔23) Which of the following statements accurately describes internal costs and their
effect on price?
A) Variable costs include sales salaries, advertising, and sponsorships.
B) Variable costs do not change based on product sales.
C) Fixed costs must be allocated across the quantity of product the company intends
to sell.
D) Fixed costs include commissions, price discounts, and coupons. - ✔✔C
✔✔24) If you go to a fancy steak house and see a hamburger on the menu for $1.19 or
if you go to a fast food restaurant and see a hamburger on the menu for $24.00, you'd
think something was not right. Marketers understand you are comparing those posted
menuprices to your own
,A) perceived cost. B) expected value. C) learned dining costs. D) reference price. -
✔✔D
✔✔25) The product life cycle curve can help marketers determine pricing. In general, as
a product matures, the price will go down as
A) all profits have been realized in a product, and the firm is moving to harvest the
remaining value.
B) costs to make the product go down as it matures.
C) competitors exit the market.
D) inelastic prices are now becoming more elastic. - ✔✔B
✔✔26) Price wars are usually harmful to firms because non-loyal customers will switch
to whichever product has a lower price, and loyal customers
A) will stay out of the market until prices stabilize.B) will often pursue legal remedies.C)
will abandon the product as the image becomes cheapened. D) take advantage of lower
prices, which diminishes profit. - ✔✔D
✔✔27) A ________ strategy is defined as setting an initially high price and using
gradual, timed price drops to make as much profit as possible over time by maximizing
how much is made from each sale.
A) penetration. B) price. C) value-based. D) skimming. - ✔✔D
✔✔28) Which of the following is defined as introducing a new product at a relatively low
price with the intention of establishing a large market share before competitors can
establish themselves?
A) Cost-based pricing B) Skimming strategy C) Penetration pricing D) Value-based
pricing - ✔✔C
✔✔29) ________ prices provide consistency and decrease the price shopping of
customers. A) Cost-based B) Prestige C) Static D) Value-based - ✔✔C
✔✔30) When a new product is introduced to a market and is priced high with the
intention of eventually lowering the price as the market becomes more competitive,
marketers areusing a pricing strategy known as
A) value-adding prices. B) premium pricing. C) skimming. D) rapid recovery. - ✔✔C
✔✔31) Simon is the sales manager for a large resort. He had booked a block of rooms
for a destination wedding at a package rate, he was able to charge the full rate for most
customers, and he occasionally had to lower the price if he had unsold rooms as the
time guests would arrive gets closer. The pricing strategy used was
A) flexible pricing. B) dynamic pricing.C) discriminatory pricing. D) opportunistic pricing.
- ✔✔B
, ✔✔32) One of the fundamental "building blocks" of pricing is an estimate or
understanding of how many units can be sold in a given period-usually a year. This
estimate is known as expected unit sales or
A) demand forecast.C) annual product sales.
B) product forecast. D) sales forecast - ✔✔A
✔✔33) Ming-tao was trying to figure out how much revenue he would have to bring in
on a specific product to start earning a profit. He wanted to know the point at which the
totalsales at a given price level needed to produce zero profits, but cover costs. To
determinethe this, he needs to know the fixed costs and
A) unit variable cost. B) markup.C) contribution margin. D) expected unit sales. - ✔✔C
✔✔34) Sharie camped out all night outside a retailer to get an unbelievably low,
advertised price on a hot-selling toy for her children. She was the first in line, but when
the storeopened, she was told there were no more available at that price, but there were
some higher-priced toys. Since no one had gotten there before her, she couldn't believe
it.
This is an example of an illegal practice known asA) bait-and-switch pricing. B)
deceptive pricing. C) fraudulent pricing. D) false pricing. - ✔✔A
✔✔35) Maya is setting prices for her home remodeling business. Over the course of the
year, there are times of peak activities-such as pre-holidays-and times when consumers
werenot as interested in home remodeling. This is an issue throughout the industry, so
sheknows it isn't just her business. After she determines a base price for the service,
she
could stimulate demand during the slow periods by usingA) discounts. B) no-cost
consultations. C) premium pricing. D) bundling. - ✔✔A
✔✔36) Angie needed a new refrigerator after her old one stopped working and couldn't
be repaired. At the appliance store, she ended getting a new refrigerator plus a new
stoveand dishwasher because the sales associate showed her that by buying all three,
shouldcould save money that she could save not buying any of the items separately.
The store
used what kind of adjustment to the base price?A) Rebates B) BundlingC) Financing D)
Quantity discounting - ✔✔B
✔✔37) Businesses in the U.S. often compete on price, and competition can be very
tough beyond pricing. Competing on price is an accepted practice in the marketplace
andunder the law. What is the name of the practice that goes beyond fair competition
todrive another business out of the market by dropping prices to an extremely low level
with the intention of destroying another business?A) Predatory pricing B) Domestic
dumping C) Loss-leader pricing D) Monopolistic pricing - ✔✔A
ANSWERS GRADED A+
1
✔✔17) ________ is one of the most difficult decisions in the marketing mix, since it
directly influences customer perceptions of value.
A) Market characteristics B) Costs C) Pricing D) Strategy - ✔✔C
✔✔18) Price is a measure of the relative value of an item for both the customer and the
________.
A) market characteristics B) costs C) seller D) owner - ✔✔C
✔✔19) Marketers manage all elements of the marketing mix as customers will decide to
buy not just on the price tag but on the perceived value and
A) brand feature costs.C) information search costs.
B) competitive costs.D) associated perceived costs. - ✔✔D
✔✔20) Which of the following statements accurately describes the price-customer cost
relationship?
A) Price is related to cost for the seller, but not the buyer.
B) Price is a measure of the relative value of an item for both the customer and the
seller.
C) Marketers must consider costs from both sides to set an acceptable price.
D) Money is the only potential cost from the customer's view. - ✔✔B
✔✔21) An expectation about the price of a given product is known as A) quote. B)
market price.C) pricing strategy. D) reference price. - ✔✔D
✔✔22) What is the term for the costs of a product that change with each good sold? A)
Break-even margin B) Cost of goods soldC) Unit cost D) Variable costs - ✔✔D
✔✔23) Which of the following statements accurately describes internal costs and their
effect on price?
A) Variable costs include sales salaries, advertising, and sponsorships.
B) Variable costs do not change based on product sales.
C) Fixed costs must be allocated across the quantity of product the company intends
to sell.
D) Fixed costs include commissions, price discounts, and coupons. - ✔✔C
✔✔24) If you go to a fancy steak house and see a hamburger on the menu for $1.19 or
if you go to a fast food restaurant and see a hamburger on the menu for $24.00, you'd
think something was not right. Marketers understand you are comparing those posted
menuprices to your own
,A) perceived cost. B) expected value. C) learned dining costs. D) reference price. -
✔✔D
✔✔25) The product life cycle curve can help marketers determine pricing. In general, as
a product matures, the price will go down as
A) all profits have been realized in a product, and the firm is moving to harvest the
remaining value.
B) costs to make the product go down as it matures.
C) competitors exit the market.
D) inelastic prices are now becoming more elastic. - ✔✔B
✔✔26) Price wars are usually harmful to firms because non-loyal customers will switch
to whichever product has a lower price, and loyal customers
A) will stay out of the market until prices stabilize.B) will often pursue legal remedies.C)
will abandon the product as the image becomes cheapened. D) take advantage of lower
prices, which diminishes profit. - ✔✔D
✔✔27) A ________ strategy is defined as setting an initially high price and using
gradual, timed price drops to make as much profit as possible over time by maximizing
how much is made from each sale.
A) penetration. B) price. C) value-based. D) skimming. - ✔✔D
✔✔28) Which of the following is defined as introducing a new product at a relatively low
price with the intention of establishing a large market share before competitors can
establish themselves?
A) Cost-based pricing B) Skimming strategy C) Penetration pricing D) Value-based
pricing - ✔✔C
✔✔29) ________ prices provide consistency and decrease the price shopping of
customers. A) Cost-based B) Prestige C) Static D) Value-based - ✔✔C
✔✔30) When a new product is introduced to a market and is priced high with the
intention of eventually lowering the price as the market becomes more competitive,
marketers areusing a pricing strategy known as
A) value-adding prices. B) premium pricing. C) skimming. D) rapid recovery. - ✔✔C
✔✔31) Simon is the sales manager for a large resort. He had booked a block of rooms
for a destination wedding at a package rate, he was able to charge the full rate for most
customers, and he occasionally had to lower the price if he had unsold rooms as the
time guests would arrive gets closer. The pricing strategy used was
A) flexible pricing. B) dynamic pricing.C) discriminatory pricing. D) opportunistic pricing.
- ✔✔B
, ✔✔32) One of the fundamental "building blocks" of pricing is an estimate or
understanding of how many units can be sold in a given period-usually a year. This
estimate is known as expected unit sales or
A) demand forecast.C) annual product sales.
B) product forecast. D) sales forecast - ✔✔A
✔✔33) Ming-tao was trying to figure out how much revenue he would have to bring in
on a specific product to start earning a profit. He wanted to know the point at which the
totalsales at a given price level needed to produce zero profits, but cover costs. To
determinethe this, he needs to know the fixed costs and
A) unit variable cost. B) markup.C) contribution margin. D) expected unit sales. - ✔✔C
✔✔34) Sharie camped out all night outside a retailer to get an unbelievably low,
advertised price on a hot-selling toy for her children. She was the first in line, but when
the storeopened, she was told there were no more available at that price, but there were
some higher-priced toys. Since no one had gotten there before her, she couldn't believe
it.
This is an example of an illegal practice known asA) bait-and-switch pricing. B)
deceptive pricing. C) fraudulent pricing. D) false pricing. - ✔✔A
✔✔35) Maya is setting prices for her home remodeling business. Over the course of the
year, there are times of peak activities-such as pre-holidays-and times when consumers
werenot as interested in home remodeling. This is an issue throughout the industry, so
sheknows it isn't just her business. After she determines a base price for the service,
she
could stimulate demand during the slow periods by usingA) discounts. B) no-cost
consultations. C) premium pricing. D) bundling. - ✔✔A
✔✔36) Angie needed a new refrigerator after her old one stopped working and couldn't
be repaired. At the appliance store, she ended getting a new refrigerator plus a new
stoveand dishwasher because the sales associate showed her that by buying all three,
shouldcould save money that she could save not buying any of the items separately.
The store
used what kind of adjustment to the base price?A) Rebates B) BundlingC) Financing D)
Quantity discounting - ✔✔B
✔✔37) Businesses in the U.S. often compete on price, and competition can be very
tough beyond pricing. Competing on price is an accepted practice in the marketplace
andunder the law. What is the name of the practice that goes beyond fair competition
todrive another business out of the market by dropping prices to an extremely low level
with the intention of destroying another business?A) Predatory pricing B) Domestic
dumping C) Loss-leader pricing D) Monopolistic pricing - ✔✔A
