Republic of the Philippines

Department of Education
Region IV-A CALABARZON
Schools Division of Cavite Province
Tagaytay City National High School-Integrated Senior High School
Mayor’s Drive, Mendez Crossing East, Tagaytay City
SUMMATIVE TEST # 1 IN PRINCIPLES OF MARKETING C. Central Perk customers want to walk into the coffee
4th QUARTER shop and smell fresh coffee brewing.
D. Durables are products that are manufactured to last a long time
Name: ____________________Score: ________________________

Section: ______________Subject Teacher: ____________________ ____ 5. Price is the only element in the marketing mix that produces
revenue; all other elements represent costs. Price is also one of the
Multiple Choice - Write the correct letter in the blank before the most flexible elements of the marketing mix. Unlike product features
number that corresponds to the correct answer. (STRICTLY NO and channel commitments, price can be changed quickly. A
ERASURE) company’s pricing decisions are affected by internal company factors
which includes:
____ 1. A product is the item offered for sale. A product can be a A. Competition
service or an item. It can be physical or in virtual or cyber form. Every B. Cost
product is made at a cost and each is sold at a price. The price that C. Marketing-mix strategy
can be charged depends on the market, the quality, the D. Marketing Objectives
marketing and the segment that is targeted.
Directions: Identify what is asked in each item. Write the letter of the
A. A product needs to be relevant: the users must have correct answer in your paper.
an immediate use for it 1. Which pricing strategy is where you add a percentage onto what
B. A product needs a name: a name that people you originally pay for the product?
remember and relate to. A) Loss Leader Pricing C) Price Skimming
C. A product should be adaptable: with trends, time and B) Cost Plus Pricing D) Penetration
change in segments Pricing
D. A product doesn’t needs to be communicated 2. Which of the following is the new product pricing strategies?
A) Market Skimming Pricing C) Profit Pricing
_____2. Services are the non-physical, intangible parts of our
B) Market-selection pricing D) Sales Pricing
economy, as opposed to goods, which we can touch or handle. 3. What are the ways of working out cost-based pricing?
Service in business can be described as an activity or a task
A) Cost-plus pricing & Break-even analysis
performed to benefit customers (B2C) or other companies (B2B) B) Price Skimming & Penetration Pricing
without a physical product. Services are generally considered more
C) Penetration Pricing
difficult to market due to its four major attributes: D) Cost Plus Pricing
A. Perishability C. Separability 4. Which pricing strategies would be appropriate for an established
B. Intangibility D. Variability business trying to win customers from competitors?
A) Price Skimming C) Cost Plus Pricing
_____3. In marketing, a product is an object, or system, or service B) Loss Leader Pricing D) Market Penetration Pricing
made available for consumer use as of the consumer demand; it is 5. Which pricing method is used in the introduction stage of the
anything that can be offered to a market to satisfy the desire or need product life cycle
of a customer. There are four types of products and each is classified A) Market Penetration Pricing C) Cost Benefit Analysis
based on consumer habits, price, and B) Unit Pricing D) Cost Plus Pricing
product characteristics: 6. When demand for your product is high and supply is low, you can
A. specialty products C. convenience goods command a high price. Do you agree or not? Choose among the
B. sought goods D. shopping goods choices below:
A) No, I do not agree since this would result to a loss.
____ 4. Experience marketing, also referred to as “experiential B) No, since it does not give any advantage to the sellers.
marketing,” is a strategy that uses in-person events to promote C) Yes, I totally agree since this would create massive profits
products. The goal of experience marketing is to create a really good D) Yes, because since it is an advantage particularly to the buyers.
consumer experience, increasing your customer value optimization. 7. When setting the price for a good, a service, or an idea, which of
You want every attendee to want to show the event on their Instagram the following is not a factor to consider?
story and Facebook profile and to become raving fans of your brand. A) Costs C) Competition
A. Ikea’s customers want to see how a couch is going to B) Market Demand D) Location
look in a living room. 8. Involves charging a high price to recover costs and maximize profit
B. Apple’s customers don’t want to hear just anybody as quickly as possible.
talk, they want to hear from Tim Cook A) Penetration pricing C) Price skimming
B) Unit pricing D) Cost Plus Pricing

Mendez Crossing East, Tagaytay City, Cavite 4120

+639230876934

depedcavite.tagaytaycitynhs@gmail.com
9. Which cost changes depending on the number of units sold? 14. Places an emphasis on the finances of the product and business.
A) Variable Costs C) Unit Pricing A. Cost-based pricing C. Competition-oriented pricing
B) Fixed Costs D) ROI B. Demand/supply-based pricing D. Profit-based pricing
10. Calculate the return on investment (ROI) if you invest ₱100,000 in 15. The firm bases its price largely on competitors’ prices, with less
new productive equipment, and you want a 30 percent return. attention paid to its own costs or to demand.
A) ₱ 3,000 C) ₱ 20,000 A. Going-rate pricing C. Competition-based pricing
B) ₱ 10,000 D) ₱ 30,000 B. Sealed-bid pricing D. Value-based pricing

11. It sets a low initial price to penetrate the market quickly and deeply I. TRUE or FALSE: Write True if the statement is correct and write
to attract many buyers False if it is incorrect.
quickly and win a large market share. 1. Before setting price, the company must decide on its strategy for
A. Market and demand C. Market-skimming pricing the product.
B. Market-penetration pricing D. Competition-based pricing 2. Price is the only element in the marketing mix that produces
12. The _____________ strategy represents a way to attack the revenue; all other elements represent costs.
premium pricer. 3. Internal factors affecting pricing include the company’s marketing
A. Good-value strategy C. Overcharging strategy objectives, marketing-mix strategy, costs, and organization.
B. Premium pricing strategy D. Economy strategy 4. Price the only marketing-mix tools that a company uses to achieve
13. Has a strong impact on the firm’s pricing strategies. its marketing objectives.
A. Market and demand C. Economic conditions 5. Pricing decisions are affected by external factors such as the nature
B. Competition D. Costs of the organization and its costs

Mendez Crossing East, Tagaytay City, Cavite 4120

+639230876934

depedcavite.tagaytaycitynhs@gmail.com