Pricing in pharmaceutical marketing MCQs With Answer

Pricing in pharmaceutical marketing is a core subject for B.Pharm students, focusing on how drug prices are set, regulated, and adjusted to balance patient access and commercial sustainability. This introduction covers pricing strategies (cost-plus, value-based, skimming, penetration), price regulation and controls, reference pricing, reimbursement systems, markups, and pharmacoeconomics concepts like cost-effectiveness and price elasticity. It also addresses tendering, differential pricing, patent-related pricing dynamics, and ethical considerations in pricing decisions. A solid grasp of these topics helps future pharmacists participate in policy, market access, and rational medicine distribution. Now let’s test your knowledge with 30 MCQs on this topic.

Q1. Which pricing method sets the product price by adding a fixed percentage to the production cost?

• Value-based pricing
• Cost-plus pricing
• Penetration pricing
• Reference pricing

Correct Answer: Cost-plus pricing

Q2. Price elasticity of demand in pharmaceuticals measures:

• Change in production cost per unit
• Change in demand relative to change in price
• Difference between wholesale and retail margins
• Variation in patent life across countries

Correct Answer: Change in demand relative to change in price

Q3. Which strategy involves initially setting a high price and lowering it over time?

• Penetration pricing
• Price skimming
• Differential pricing
• Marginal pricing

Correct Answer: Price skimming

Q4. International reference pricing (IRP) primarily uses:

• Local manufacturing costs only
• Prices of the same drug in other countries
• Historical domestic wholesale prices
• Patient willingness to pay surveys

Correct Answer: Prices of the same drug in other countries

Q5. Which body typically sets maximum retail prices and regulates medicine prices in many countries?

• Health Technology Assessment agencies
• Pharmaceutical companies
• Government price control authority
• Retail pharmacist associations

Correct Answer: Government price control authority

Q6. Value-based pricing determines price mainly by:

• Production input costs
• Perceived therapeutic benefit and health outcomes
• Distributor markups
• Patent expiration date

Correct Answer: Perceived therapeutic benefit and health outcomes

Q7. Differential pricing in pharmaceuticals means:

• Same price for all markets
• Different prices across markets based on willingness to pay
• Prices set solely by manufacturing cost
• Only discounts to wholesalers

Correct Answer: Different prices across markets based on willingness to pay

Q8. A formulary in a health system is most closely related to which pricing concept?

• Market penetration
• Reimbursement and negotiated pricing
• Cost-plus calculation
• Parallel import rules

Correct Answer: Reimbursement and negotiated pricing

Q9. Which pricing practice may raise ethical concerns when it restricts patient access due to high costs?

• Discounting to hospitals
• Excessive price gouging
• Cost-plus transparency
• Generic substitution

Correct Answer: Excessive price gouging

Q10. Pharmacoeconomics contributes to pricing by assessing:

• Only manufacturing lead times
• Cost-effectiveness and QALYs
• Drug stability data
• Marketing budget allocation

Correct Answer: Cost-effectiveness and QALYs

Q11. Tendering for public procurement usually results in which pricing outcome?

• Higher retail prices
• Lower supplier prices due to competition
• No change in price
• Fixed globally referenced prices

Correct Answer: Lower supplier prices due to competition

Q12. Reference pricing sets reimbursement based on:

• The highest priced product only
• A benchmark price for therapeutically equivalent products
• Individual physician recommendations
• Manufacturer suggested retail price without adjustment

Correct Answer: A benchmark price for therapeutically equivalent products

Q13. Which is a common effect after generic entry on drug pricing?

• Price erosion of the originator and generics
• Immediate increase in brand price
• Elimination of wholesale margins
• Global price harmonization

Correct Answer: Price erosion of the originator and generics

Q14. A rebate to a payer that is paid after purchase is best described as:

• Point-of-sale discount
• Post-sale financial adjustment
• Mandatory tax
• Wholesale markup

Correct Answer: Post-sale financial adjustment

Q15. Clawback mechanisms in pharmaceutical pricing are intended to:

• Increase manufacturer margins
• Recover excess public spending from manufacturers
• Reduce pharmacy dispensing fees
• Guarantee a minimum price to retailers

Correct Answer: Recover excess public spending from manufacturers

Q16. Which pricing approach often applies to vaccines or essential medicines in low-income countries?

• High global uniform pricing
• Differential or tiered pricing
• Price skimming only
• Internal reference pricing exclusively

Correct Answer: Differential or tiered pricing

Q17. Parallel importation affects pricing by:

• Preventing any price differences between countries
• Allowing lower-priced parallel products to enter higher-price markets
• Merging patents across borders
• Setting manufacturer recommended prices

Correct Answer: Allowing lower-priced parallel products to enter higher-price markets

Q18. Which concept describes charging different prices to different groups for the same medicine?

• Price transparency
• Price discrimination
• Cost-based reimbursement
• Regulatory harmonization

Correct Answer: Price discrimination

Q19. Health Technology Assessment (HTA) commonly influences pricing by:

• Determining manufacturing methods
• Evaluating value to inform reimbursement and price negotiations
• Setting pharmacy retail hours
• Defining chemical stability criteria

Correct Answer: Evaluating value to inform reimbursement and price negotiations

Q20. Markup in the pharmaceutical supply chain refers to:

• Increase in therapeutic efficacy
• Percentage added by wholesaler or retailer over purchase price
• Amount of active ingredient per tablet
• Regulatory fee per batch

Correct Answer: Percentage added by wholesaler or retailer over purchase price

Q21. Price transparency in pharmaceuticals can lead to:

• Worse market competition
• Better-informed purchasers and potential price reductions
• Increased patent durations
• Elimination of tendering processes

Correct Answer: Better-informed purchasers and potential price reductions

Q22. A managed entry agreement (risk-sharing) aims to:

• Avoid any outcome measurement after launch
• Share financial or clinical risk between payer and manufacturer
• Guarantee unlimited reimbursement
• Replace all clinical trials

Correct Answer: Share financial or clinical risk between payer and manufacturer

Q23. In cost-plus pricing, a limitation is that it:

• Always reflects patient willingness to pay
• Ignores market demand and perceived value
• Requires global price equivalence
• Is mandated by all regulators

Correct Answer: Ignores market demand and perceived value

Q24. Which factor commonly influences manufacturer list price setting?

• Local pharmacy opening hours
• R&D costs, market exclusivity, competition, and reimbursement environment
• Number of pills per blister only
• Color of packaging

Correct Answer: R&D costs, market exclusivity, competition, and reimbursement environment

Q25. Tender-based procurement is especially effective for:

• Single-source patented specialty drugs
• High-volume generics and off-patent medicines
• Drugs with variable daily dosing
• Over-the-counter promotional items

Correct Answer: High-volume generics and off-patent medicines

Q26. Which is TRUE about external reference pricing (ERP)?

• ERP uses internal historical prices only
• ERP compares a medicine’s price with prices in other countries
• ERP sets prices based on manufacturing yield
• ERP is identical to value-based pricing

Correct Answer: ERP compares a medicine’s price with prices in other countries

Q27. Pay-for-performance pricing links payment to:

• Manufacturer marketing spend
• Clinical outcomes achieved in the treated population
• Wholesale inventory levels
• Pharmacy location density

Correct Answer: Clinical outcomes achieved in the treated population

Q28. Which pricing mechanism can help improve access for uninsured patients?

• Patient assistance programs and targeted discounts
• Strict list-price policies without discounts
• Exclusive supply to private hospitals only
• Higher markups to retailers

Correct Answer: Patient assistance programs and targeted discounts

Q29. Which is a consequence of aggressive price competition among generics?

• Increased R&D investment by originators
• Significant reduction in medicine prices and margins
• Higher list prices across all brands
• Extended patent protection automatically

Correct Answer: Significant reduction in medicine prices and margins

Q30. Ethical pharmaceutical pricing should balance:

• Company profit only
• Patient access, affordability, and sustainable innovation
• Only short-term market share
• Regulatory avoidance tactics

Correct Answer: Patient access, affordability, and sustainable innovation

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