Csuf Mktg 351 – Principles Of Marketing | Exam 3 | Exam Questions And Correct Answers | Latest Version 2026/2027

CSUF Bus Mktg 351 Exam




CSUF MKTG 351 – PRINCIPLES OF MARKETING | EXAM 3 |
EXAM QUESTIONS AND CORRECT ANSWERS | LATEST
VERSION 2026/2027




CSUF Bus Mktg 351 Exam
Exam 3




1. A company sets the price of its new wireless earbuds by first
estimating how much value buyers perceive in the product and then
building the product and costs around that price. This approach is best
described as:
A. Customer value-based pricing
B. Break-even pricing
C. Competition-based pricing
D. Cost-plus pricing
CORRECT ANSWER : A. Customer value-based pricing
Value-based pricing starts with customer perceptions of value and works
backward to product design and cost, the reverse of cost-based
approaches.




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2. Which pricing strategy involves setting a low initial price to
penetrate the market quickly and win a large market share?
A. Optional-product pricing
B. Market-skimming pricing
C. Prestige pricing
D. Market-penetration pricing
CORRECT ANSWER : D. Market-penetration pricing
Penetration pricing uses a low entry price to attract many buyers fast,
often to gain scale economies and discourage competitors.
3. A firm launches a cutting-edge gaming console at a high price and
lowers it over time as each customer layer is satisfied. This is an
example of:
A. Market-skimming pricing
B. Market-penetration pricing
C. Everyday low pricing
D. Captive-product pricing
CORRECT ANSWER : A. Market-skimming pricing
Skimming sets a high initial price to capture revenue layer by layer from
segments willing to pay more, then reduces price over time.
4. Market-skimming pricing makes the most sense when:
A. The firm wants to discourage all future competition with low margins
B. The market is highly price sensitive
C. Production costs fall sharply as volume increases
D. The product's quality and image support its higher price and
competitors cannot easily enter the market
CORRECT ANSWER : D. The product's quality and image support its
higher price and competitors cannot easily enter the market
Skimming works when enough buyers value the product at a high price
and rivals cannot quickly undercut that price.




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5. Printer manufacturers often sell printers at low prices and make
their profit on ink cartridges. This is called:
A. Captive-product pricing
B. Product line pricing
C. By-product pricing
D. Optional-product pricing
CORRECT ANSWER : A. Captive-product pricing
Captive-product pricing prices the main product low and sets high
markups on supplies that must be used with it.
6. A theme park charges a daily admission fee plus additional fees for
food, parking, and select attractions. This is known as:
A. Product bundle pricing
B. Two-part pricing
C. Psychological pricing
D. Segmented pricing
CORRECT ANSWER : B. Two-part pricing
In services, captive pricing is called two-part pricing: a fixed fee plus a
variable usage fee.
7. A fast-food chain offers a burger, fries, and a drink together for less
than the total of the separate prices. This is:
A. Product bundle pricing
B. Product line pricing
C. Promotional pricing
D. Optional-product pricing
CORRECT ANSWER : A. Product bundle pricing
Bundle pricing combines several products and sells the package at a
reduced price to encourage purchase of items buyers might skip.




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, CSUF Bus Mktg 351 Exam


8. A car dealership sets separate prices for navigation systems,
upgraded wheels, and heated seats offered with a base vehicle. This is
an example of:
A. By-product pricing
B. Product bundle pricing
C. Optional-product pricing
D. Captive-product pricing
CORRECT ANSWER : C. Optional-product pricing
Optional-product pricing covers accessories or extras that buyers can
choose to add to the main product.
9. A lumber mill sells sawdust and bark to landscaping companies to
help cover disposal costs and make the main product more price
competitive. This is called:
A. By-product pricing
B. Geographical pricing
C. Captive-product pricing
D. Segmented pricing
CORRECT ANSWER : A. By-product pricing
By-product pricing finds a market for production leftovers, reducing costs
and helping keep the main product's price competitive.
10. A clothing retailer prices its shirts at $25, $40, and $70 to signal
three levels of quality. This is:
A. Dynamic pricing
B. Product bundle pricing
C. Value-added pricing
D. Product line pricing
CORRECT ANSWER : D. Product line pricing
Product line pricing sets price steps between items in a line based on
cost, customer evaluations, and competitor prices.




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