Republic of the Philippines

Department of Education
MASBATE PROVINCE

NAME:___________________________ Score:____________
Second Summative Test in Principles in Marketing

Direction: Choose the letter of the correct answer. Write the letter that corresponds to your
answer on a separate sheet of paper.
1. It refers to pricing decisions related to products intended for customers in different locations.
a. Discriminatory Pricing
b. Geographical Pricing
c. Price discounts and Allowances
d. Promotional Pricing
2. They are reductions from the list price that are given by sellers to buyers who either give up
some marketing function or provide the function themselves.
a. Allowances
b. Cash rebates
c. Discounts
d. Sale
3. Are reductions in price given to final consumers, customers or channel members for doing
some tasks or accepting less service.
a. Allowances
b. Cash rebates
c. Discounts
d. Sale
4. These are reductions from the list price given by the manufacturer to reward wholesalers and
retailers from marketing functions they will perform like selling, storing, and record keeping.
a. Cash discounts
b. Functional or trade discounts
c. Quantity discounts
d. Seasonal discounts
5. These are reductions in unit costs for a larger order.
a. Allowances
b. Cash discounts
c. Quantity discounts
d. Trade discounts
6. It is a type of marketing channels that are used in the distribution of consumer goods.
a. Consumer channels
b. Industrial channels
c. Manufacturer
d. Producer
7. It is a type of distribution strategies that requires the firm to sell its products through every
available outlet in a market where a consumer might reasonably try to find them.
a. Exclusive distribution
b. Inclusive distribution
c. Intensive distribution
d. Selective distribution
8. It is a type of distribution strategies where it is applicable to specialty products or services like
automobiles and expensive watches.
a. Exclusive distribution
b. Inclusive distribution

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MASBATE PROVINCE

c. Intensive distribution
d. Selective distribution
9. It is the network of all the individuals, organizations, resources, activities, and technology
involved in the creation and sale of product.
a. Place
b. Retailing
c. Supply Chain
d. Wholesaling
10. It is defined as the sale of goods and services to the final customer for his personal
consumption.
a. Place
b. Retailing
c. Supply Chain
d. Wholesaling
11. It is the money, good or service exchanged for the ownership,
or use of a good or service.
a. Place
b. Price
c. Product
d. Promotion
12. It may be defined as those activities involved in the
determination of the price at which products that will be offered for
sale considering the various objectives of the firm.
a. Pricing
b. Pricing Approaches
c. Pricing Objectives
d. Pricing Procedure
13. It is a pricing strategy that allows the seller a fixed mark-up
every time the product is sold.
a. Marginal pricing
b. Mark-up pricing
c. Promotional pricing
d. Target return pricing
14. This pricing strategy involves reducing the number of price
points on merchandise to as little as possible, in extreme cases to
only one price point.
a. Going rate pricing
b. Loss leader pricing
c. Prestige lining
d. Price lining
15. A pricing strategy involving a temporary reduction in the selling
price of a product and service in order to induce trial or to
encourage repeat purchase.
a. Odd Pricing
b. Penetration Pricing
c. Predatory Pricing
d. Promotional Pricing
16. It is a pricing method premised to the theory that consumers
will perceive products with odd price endings as lower in price than
they actually are.
a. Marginal Pricing
b. Mark-up Pricing
c. Psychological Pricing
d. Target return Pricing

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17. It is a pricing method that allows as product manufacturer to

recover a certain portion of his/her investment every year.
a. Marginal Pricing
b. Predatory Pricing
c. Prestige Pricing
d. Target-return Pricing
18. A pricing strategy where the new product is priced only
marginally above its unit cost.
a. Loss leader
b. Penetration Pricing
c. Price Lining
d. Price skimming
19. This is the form where the prices of the products of the firm are
reduced for a limited time.
a. Cash rebates
b. Low-interest financing
c. Sale
d. Special event pricing
20. These are reductions from list prices to buyers for performing
some activity.
a. Allowances
b. Cash discounts
c. Quantity discounts
d. Seasonal discounts

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