MGT301 Quiz 4 Set 2

MGT301 - Quiz No.4

Date: 26 June 2025

Q1. The demand curve shows the number of units the market will buy in a given time period at different prices that might be charged. In normal cases, the higher the price, the higher the demand.

1. False
2. True

Correct answer: False

Q2. Environmental elements are categorized as external factors that affect pricing decisions.

1. True
2. False

Correct answer: True

Q3. Pricing often plays an important role in helping to accomplish a company’s multi-level objectives.

1. False
2. True

Correct answer: True

Q4. Product costs set a floor to the price; consumer perceptions of the product’s value set the ceiling.

1. False
2. True

Correct answer: True

Q5. The service-profit chain means the set of all product lines and items that a particular seller offers for sale.

1. False
2. True

Correct answer: False

Q6. Unsought products are products and services that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort.

1. False
2. True

Correct answer: False

Q7. Style is a larger concept than design. Design describes the appearance of a product.

1. True
2. False

Correct answer: True

Q8. The simplest pricing method is break-even pricing—adding a standard markup to the cost of the product.

1. True
2. False

Correct answer: False

Q9. Customer retention is perhaps the best measure of quality—a service firm’s ability to hang on to its customers depends on how consistently it delivers value to them.

1. True
2. False

Correct answer: True

Q10. Product support services identify the product or brand, describe several things about the product, and promote the product through attractive graphics.

1. False
2. True

Correct answer: False

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