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Marketing Awareness Quiz – Set 16

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Hello Aspirants.

Welcome to Marketing Awareness Quiz in AffairsCloud.com. Here we are creating quiz covering important events in Marketing Awareness , which are common for all the bank exams like IBPS, LIC, SBI, and other competitive exams. We have included Some Marketing Awareness questions that are repeatedly asked in many bank exams.

  1. ________________________ is as a collection of buyers and sellers who transact over a particular product or service.
    1.Shopping
    2.Trade
    3.Business
    4.Market
    5.None of these
    Answer – 4.Market
    Explanation :
    Economists describe a market as a collection of buyers and sellers who transact over a particular product or service.

  2. Which of the following is not a feature of Marketing ?
    1.Marketing is a connecting link between the consumer and the producer
    2.Marketing helps to increase National Income
    3.Marketing increases Employment Opportunities
    4.Marketing is recognized as the most important or significant activity in our society.
    5.All of these
    Answer – 5.All of these
    Explanation :
    All the statements are importance of Marketing given by economist

  3. In which pricing method, some percentage of profit is added to the cost price of the product?
    1.Value-based Pricing
    2.Competition-based Pricing
    3.Demand Based Pricing
    4.Cost-Based pricing
    5.None of these
    Answer – 4.Cost-Based pricing
    Explanation :
    Cost-based pricing refers to a pricing method in which some percentage of desired profit margins is added to the cost of the product to obtain the final price.

  4. The price of a product is fixed according to the prevailing price trends in the market is known as
    1.Going Rate Pricing
    2.Target Return Pricing
    3.Transfer Pricing
    4.Value Pricing
    5.None of these
    Answer – 1.Going Rate Pricing
    Explanation :
    Implies a method in which an organization sets the price of a product according to the prevailing price trends in the market. Thus, the pricing strategy adopted by the organization can be same or similar to other organizations.

  5. ____________ is a pricing method in to win loyal customers by charging low prices for their high- quality products
    1.Transfer Prising
    2.Value Pricing
    3.Return Pricing
    4.Product Prcing
    5.Index Pricing
    Answer – 2.Value Pricing
    Explanation :
    Value pricing is a method in which an organization tries to win loyal customers by charging low prices for their high- quality products. The organization aims to become a low cost producer without sacrificing the quality.

  6. Which pricing is also known as average cost pricing ?
    1.Cost-plus pricing
    2.Mark-up pricing
    3.Cost based pricing
    4.Demand based pricing
    5.All of these
    Answer – 1.Cost-plus pricing
    Explanation :
    Cost-plus pricing is also known as average cost pricing. This is the most commonly used method in manufacturing organizations.

  7. Which model establishes a relationship between risk and expected returns of a security ?
    1.Double Win Strategy
    2.Balancing Asset Pricing Model
    3.Cost Pricing Model
    4.Capital Pricing Model
    5.Capital Asset Pricing Model
    Answer – 5.Capital Asset Pricing Model
    Explanation :
    Capital Asset Pricing Model(CAPM) developed by William Sharpe (1964) and John Lintner(1965), the theory establishes a relationship between risk and expected returns of a security and is  used to price risky securities.

  8. The markup per unit is expressed by
    1.Q/X
    2.X/P
    3.P/Q
    4.X/Q
    5.None of these
    Answer – 4.X/Q
    Explanation :
    P = AVC + AFC + X/Q
    AVC is the average variable cost
    AFC is the average fixed cost
    X/Q is the markup per unit

  9. What is Markup ?
    1.The difference between the cost  price and selling price
    2.The ratio between the cost  price and selling price
    3.The ratio between  the selling  price and cost price
    4.The difference between the selling  price and cost price
    5.None of these
    Answer – 1.The difference between the cost  price and selling price
    Explanation :
    Markup pricing or cost-plus pricing is a pricing strategy where the price of a product or service is calculated by adding together the cost of the products and a percentage of it as a markup

  10. The process of selling of goods and services within the departments of the organization is related with which pricing method ?
    1.Initial Pricing
    2.Consumer Pricing
    3.Transfer Pricing
    4.Product Pricing
    5.None of these
    Answer – 3.Transfer Pricing
    Explanation :
    Transfer pricing is the setting of the price for goods and services sold between controlled (or related) legal entities within an enterprise. For example, if a subsidiary company sells goods to a parent company, the cost of those goods paid by the parent to the subsidiary is the transfer price.