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1.

Personal selling tries to achieve three general goals: finding prospects, convincing
prospects to buy, and ___________.

Monitoring new products being developed

Being aware of competitors' sales activities

Avoiding repeat sales.

Keeping customers satisfied (Answer)

2.

Mr. Kafeel, a sales person from Xerox, develops a list of potential customers and
evaluates

them on the basis of their ability, willingness, and authority to purchase copy
machines. This process is called __________.

Customer search

Sales preparation

Approaching the customer

Prospecting (Answer)

3.

Imran tells his wife, Saima, that his last sales call of the day at McDonald was a
disaster.

He explains that he never really figured out what the purchasing agent was looking
for. Saima, a sales trainer for another firm, hands Imran a book on

__________.

Improving listening skills

Overcoming objections

Product demonstrations

Closing the sales encounter (Answer)

4.

Musharaf, a trained engineer, is a salesperson for a chemical manufacturer. He


provides

current customers with advice about a product's characteristics and applications.


He is a

Missionary salesperson

Trade salesperson

Inside order taker


Technical salesperson (Answer)

5.

A sales representative for Coca-Cola travels to various shops and restaurants to


determine

how much bottles the customer needs for the coming period. The sales
representative would be classified as which one of the following types of sales

Order getter

Inside order taker

Field order taker (Answer)

Trade salesperson

6.

A ___________ audit is used to assess a company's image among the organizations


publics or to evaluate the effect of a specific program.

Communications

Social

Environmental

Public Relations (Answer)

Publicity

7.

In many instances the MOST appropriate way to cope with a negative event that may
lead to negative publicity is to __________.

Discourage news coverage of the event

Deny that the event occurred

Facilitate news coverage (Answer)

Hire a public relations firm

8 A marketer uses pioneer advertising to __________.

Promote established brands

Compare brand names

Promote a product in the introductory stage of the life cycle (Answer)

Introduce a competitive version of the product

9 Which of the following is the most important consideration when choosing an event
to sponsor?

Consistency in the association between the event and the company's product
(Answer)
The length of the event

When the event occurs

The specific name of the event

__________ is a broad set of communication activities used to create and maintain


favorable relations between the organization and its publics.

Advertising

A press strategy

Public relations

Publicity (Answer)

The basic role of promotion is _____.

Information

Manipulation

Communication (Answer)

Interpretation

2.

If the aim of the promotion to introduce a new consumer product is to achieve high
awareness levels, the firm will most likely make heavy use of _______ in the
promotional mix.

Advertising (Answer)

Sales promotion

Personal selling

Publicity

A consumer contest is an example of _____.

Personal selling

Sales promotion (Answer)

Advertising

Indirect selling

A television advertisement showing the safety features of the Volvo 240 DL

would be best classified as which of the following?

Product advertising (Answer)

Pioneer advertising

Defensive advertising

Societal marketing
5.

Brands that are promoted through comparative advertising are MOST likely to be

_____.

(A) Market leaders

(B) Brands that are attempting to compete with market leaders (Answer)

(C) Primarily services rather than tangible goods

(D) Attempting to compete on a non-price basis

Advertising appropriations are largest for which type of product?

Industrial products

Convenience goods (Answer)

High-priced products

Specialty goods

7.

If Wrigley sets its pricing objective as attaining 38 percent of the chewing


gum market, what else would be needed to make this a true pricing objective?

A statement of demand elasticity

An identification of cost structure

A breakeven analysis

Identification of a time period for accomplishment (Answer)

8 If a product has an inelastic demand and the manufacturer raises its price, _____

Total revenue will increase (Answer)

Quantity demanded will increase

The demand schedule will shift

The demand will become more inelastic

9.

When marginal cost is equal to marginal revenue, the firm should _____.

Produce more to increase profits

Produce less to decrease total costs

Stop producing additional units to maximize profits (Answer)

Provide discounts to encourage purchases

10

Which one of the following pricing policies may result in losing money on the
product?

Price leader (Answer)

Psychological discounting

Penetration pricing

Special-event pricing

In the ABSENCE of __________, pricing remains a flexible and convenient way

to adjust the marketing mix.

Experience-curve effects

Strong price competition

Weak price competition

Government price control (Answer)

2.

Which one of the following statements by a company chairman best reflects the
marketing concept?

We have organized our business to make certain that we satisfy customer needs.
(Answer)

We believe that the marketing department must organize to sell what we

produce.

We try to produce only high quality, technically efficient products.

We try to encourage company growth.

3.

The two components of a marketing strategy are _______.

Marketing objectives and promotion

Marketing mix and marketing objectives

Target market and marketing mix (Answer)

Target markets and promotions

The marketing concept is a philosophy that states that an organization should try

to satisfy customers' needs and at the same time ______.

Increase market share.

Increase sales.

Achieve the organizations goals. (Answer)

Always produce high

When a company adjusts price levels so that it can increase sales volume to
levels that match the organizations expenses, it is said to employ a _____pricing

objective.

A)

B)

Market share

Cash flow

Return on investment

Survival (Answer)

6.

If Planters is concerned that acquiring a taste for its new product, honey-roasted

macadamia nuts, takes time, it should use __________ packaging.

Family

Multiple (Answer)

Tamper-resistant

Unlabeled

A carton of orange juice has no brand name on the package, only the name of the

product 'orange juice'. This is an example of

A manufacturer's brand.

An own label brand

A no-frills brand

A generic brand. (Answer)

One distinguishing factor between a brand name and a brand mark is that a brand

name is _______

Creates customer loyalty.

Consists of words. (Answer)

Identifies only one item in the product mix.

Implies an organization's name.

A firm may decide that all packages are to be similar or include one major

element of the design. This approach to promote an overall company image is

called ______

Family extension.

Family packaging. (Answer)


Overall packaging.
Internet Marketing
Solved
Actual Product
Brand name dresses
Brand name shoes
Brand name sunglass
Breakeven
Business Market
Business Marketing
Chewing Gum
Internet Marketing
Solved
Package extension.

10.

The _____ stage of the product life cycle generates most sales revenue for the

firm.

Introduction

Growth

Maturity (Answer)

Decline

1.

The market consists of all the organization that acquire goods and services used in

the production of other products or services that are sold, rented, or supplied to

other is called _______.

Consumer market

Business market (Answer)

Niche market

Global market

2.

The relationship is built with a customer over a long period of time and for

a long time is called ____

Customer experience management

Consumer life time value

Customer life time value (Answer)

Consumer experience management


3.

The firm that allow the wants and needs of customers and potential customers to
drive all

the firms strategic decision is known as _________

Marketing oriented firm (Answer)

Customer oriented firm

Consumer oriented firm

All of above

4.

_______________a form of marketing that puts particular emphasis on building a longer-

term, more intimate bond between an organization and its individual customers.

Integrated marketing

Relationship marketing (Answer)

Global marketing

Consumer marketing

__________ is the part of the product in the form of additional consumer services and

benefits built around the core product and actual product

Consumer product or service

Tangible product or service

Augmented product or service (Answer)

All of above

6.

The ____________includes the immediate actors involved in producing, distributing, and

promoting the offering.

Task environment (Answer)

Broad environment

Marketing environment

Customer environment

7.

____________ is the set of marketing tools that the firm uses to pursue its

marketing objectives in the target market.

Consumer mix
Product mix

Customer mix

Marketing mix (Answer)

8.

The ___________ concept holds that the organizations task is to determine the

needs, wants, and interests of target markets and to deliver the desired

satisfactions more effectively and efficiently than competitors in a way that

preserves or enhances the consumers and the societys well-being.

Integrated marketing

Relationship marketing

Societal marketing (Answer)

Global marketing

9.

The production of different varieties of the same product, or different products at the

same level of processing, within a single firm. This may, but need not; take place in

subsidiaries in different countries is known as __________

Innovation Strategies

Horizontal integration (Answer)

Vertical integration

Market dominance strategies

10.

__________ is a strategic planning method that some organization uses to make


flexible

long-term plans.

a)

Scenario Planning (Answer)

Market planning

Customer planning

Consumer planning

8 Which of the following is a controllable factor for marketers? Select correct option:

Competition

Technology
Corporate culture (correct)

Economy

Relationship marketing is also known as: Select correct option:

Brand marketing

Value marketing

Loyalty marketing (Correct)

Experiential marketing

The loyalty marketing focuses on establishing long term relationship between: Select

correct option:

Company and retailer

Retailer and customer

Retailer and consumer

Company and customer

Which of the following is NOT an objective of discounts?

Reward valuable customers

Reward competitors

Move out-of-date stock

Increase short-term sales

Market price is also known as:

Effective price (Correct)

List price

Retail price

Wholesaler price

Which of the following best describes 3/10 net 40 ROG?

The buyer must pay within 10 days of receipt of goods but will receive 3% discount
if

paid in 10 days

The buyer must pay within 3 days of receipt of goods but will receive 10% discount
if

paid in 40 days

The buyer must pay within 10 days of receipt of goods but will receive 3% discount
if

paid in 40 days
The buyer must pay within 40 days of receipt of goods but will receive 3% discount
if

paid in 10 days (Correct)

Which of the following is also known as accumulation discounts?

Trade discount

Non-cumulative quantity discount

Cumulative quantity discount

Quantity discount (Correct)

A company is providing warehousing facility to its channel members. The company is

using which of the following?

Seasonal discount

Trade discount (Correct)

Quantity discount

Cash discount

Which of the following firms emphasizes on products benefits to the customers


rather

product attributes?

Product oriented

Market oriented (Correct)

Sales oriented

Production oriented.

Which of the following is NOT a technique of measuring customer satisfaction and

monitoring customers complaint?

Customer complaints database

Web and telephone information hotlines

Exit interviews

Business analysis (Correct)

The phenomenon, when a customer dislikes a product and talks against the product,
is

termed as:

Propaganda
Unfavorable environment

Bad mouth (Correct)

Bad impression

Products that are usually purchased due to adversity and high promotional back up

rather than desire are called:

Sought goods

Unique goods

Unsought goods (Correct)

Preferred goods

A customer requirement about any product in which he/ she needs to avail core
features

in that product, is called:

Real need

Stated need (Correct)

Unstated need

Delighted need

Which of the following is NOT an aggressiveness strategy?

Harvesting

Building

Intensification (Correct)

Holding

Which of the following is NOT a type of innovation strategy?

Pioneers

Challengers (Correct)

Close followers

Late followers

Customers viewpoint on a firms products and services can be improved through:

experiential world of customers

Experiential innovation (correct)

Customer interface

Building experiential platform

Which of the following is not a component of a marketing plan? Select correct option:
Marketing advantages (correct Answer)

Environmental analysis

Executive summary

Marketing implementation

The _____ is the central instrument for directing and coordinating the marketing
effort.

Select correct option:

Business plan

Production plan

Market plan (correct)

Selling plan

Which of the following is NOT an example of variable cost? Select correct option:

Rent of factory (correct)

Raw material

Power

Transport

Warehousing facility to channel members is an example of: Select correct option:

Seasonal discount

Trade discount (correct)

Quantity discount

Cash discount

Which of the following are the people who purchase new products almost as soon as
the

products reach the market?

Innovators (correct)

Late majority

Early majority

Late adopters

Which of the following is NOT one of the stages that customers go through in the

process of adopting a new product?

Desire (Correct)

Awareness

Evaluation
Interest

Which product is MOST likely to be purchased through routine decision making?

Television set

Soft drink (Correct)

Shirt

Car

Which of the following part of a marketing plan defines the plans financial and

marketing goals in terms of sales volume, market share and profit?

Marketing strategy (Correct)

Action programs

Issue analysis

Objectives

Which of the following has a quick response towards a new product?

Opinion leaders

Late majority

Early majority

Early adopters (Correct)

12

Which of the following is about managing strategically the customers entire


experience

with the product and company?

Customer experience management (Correct)

Customer retention management

Customer life-time value management

Customer relationship management

Identify the other name for global market.

Consumer market

Import market

Export market (correct)

Government market

A seller wants payment from buyer within 10 days of sales (whereas customer can
made

payment within 30 days) and offers 4% discount if payment is made within 10 days.
What type of cash discount will be suitable?

4/10 net 30 (correct)

10/4 net 30

10/30 net 4

4/30 net 10

Which of the following price is quoted to a potential buyer, usually in written form?

Wholesale price

Market price

List price (correct)

Retail price

Which of the following is the first step in writing a marketing plan?

Situation analysis

Opportunity and threat analysis

Executive summary (Correct)

Process engineering skills are required for the successful implementation of which
of

the following strategy?

Market segmentation strategy

Market dominance strategy

Differentiation strategy

Cost leadership strategy (Correct)

Any tangible thing that can be offered to a market for attention, acquisition, use, or

consumption that might satisfy a want or need is called:

Service

Product (Correct)

Demand

Idea

13

Luxury products, such as Rolex watches, are also known as:

Shopping product (Correct)

Convenience product

Emergency product
Specialty product

Which of the following is NOT a decision required in commercialization?

Why to launch the product? (correct)

How to launch the product?

Where to launch the product?

When to launch the product?

Which of the following is the spread of idea from the source of invention to the
ultimate

user or consumers?

Innovation adoption process

Innovation diffusion process (Correct)

Adoption process

New product recognition

02

1. companys or brands reliability, competitive prices, quality and

reliability, and an effective sales force are required to deal with

_______________market.

Consumer

Business (Answer)

Global

Governmental

2. A small retailer lies under the _______________ environment.

Task (Answer)

Broad

Weak

Competitive

3. Core Competency:

provides potential access to a wide variety of markets

increases perceived customer benefits

both of the given options (Answer)

none of the given options

4. The JEO Films investment in film Khuda Ke Liye is an example of:


Product concept

Production concept

14

Marketing concept (Answer)

All of the given options

5. The phrase marketing decisions must be carefully monitored as a

whole is concerned with _______________ part of the broad

environment.

Monitoring

Flexibility

Research & Development

None of the given options (Answer)

6. When the customer asks a specific product from the retailer, it can be

an impact of _______________.

Demand Pull Strategy (Answer)

Cost Pull Strategy

Demand Push Strategy

Product Line Strategy

7. Which one of the followings is not a part of the Marketing Plan?

Executive summary

Implementation

Salutation (Answer)

Appendix

8. A position, in which a company is in a strong but not foremost position,

that is satisfied to live at this level and enjoys its market shares, is

called _______________.

Market leader

Market follower (Answer)

Market challenger

Market nicher

9. When a company upgrade its brand with more signs and appearance

under the same price for capturing more target costumers, is best
under the:

Cost leadership strategy

Differentiation strategy (Answer)

Promotional strategy

Scenario planning

15

10. Warranty and installations are the parts of:

Specialty Goods

Core product

Tangible Product

Augmented Product (Answer)

05

1. A fundamental part of the distribution function is to get the product:

a. To the right place at the right time (Answer)

b. Launched into new markets

c. To intermediaries

d. To market to avoid channel conflict

2. Which of the following is most likely to stimulate customer loyalty?

a. Coupons

b. Sweepstakes

c. Frequent-user incentives (Answer)

d. Samples

3. In many instances the most appropriate way to cope with a negative event

that may lead to negative public relations is to:

a. Discourage news coverage of the event

b. Deny that the event occurred

c. Facilitate news coverage (Answer)v

d. Hire a public relations firm

4. Relationships among channel members, i.e. producers, wholesalers and

retailers, are usually:

a. Short-term commitments

b. Long-term commitments (Answer)


c. Expensive resource commitments

d. Only minor commitments

5. Personal selling tries to achieve three general goals: finding prospects,

convincing prospects to buy and __________.

a. Being aware of competitors' sales activities

b. Depending on one-sale customers

c. Avoiding repeat sales

d. Keeping customers satisfied (Answer)

6. It is important to actively listen the other party to:

a. Select, refine and craft an agreement

b. Explore their underlying needs (Answer)

c. Set your tone

d. All of the given options

16

7. Slow feedback, high costs, and difficulty in measuring effects on sales are

disadvantages of which promotion mix ingredient?

a. Advertising (Answer)

b. Public relations

c. Sales management

d. Sales promotion

8. What source of information is usually effective for moving consumers to the

evaluation stage of the product adoption process?

a. Salespersons

b. Mass communication

c. Personal sources (Answer)

d. Consumer advocates

9. A person, group, or organization that has a meaning it intends and

attempts to share with a receiver or an audience is a:

a. Medium of transmission

b. Source (Answer)

c. Relay channel

d. Decoder
10. The limitations in using publicity-based public relations tools stem

primarily from the fact that:

a. Publicity is never properly managed by media personnel.

b. Media personnel consider only unfavorable messages as

newsworthy.

c. It is time-consuming and costly to convince media personnel that

the information is newsworthy.

d. Media personnel control the content and the timing of the

communication. (Answer)

01

1) The _________ is the central instrument for directing and coordinating the

marketing effort

a. Marketing plan (Answer)

b. Strategic marketing plan

c. Tactical marketing plan

d. Mission statement

2) _____ refers to how well the product or service is brought to the customer.

a. Service differentiation

b. Design

c. Delivery (Answer)

d. Performance quality

3) Some products that require the use of other products are called _____

products.

a. Coordinated

b. Complementary

c. Required

d. Captive (Answer)

17

4) An SBU refers to _________.

a. Strategic bidirectional unit

b. Strategic business unit (Answer)

c. Statistical business unit


d. Strategic bipartisan union

5) SWOT analysis refers to an analysis of a company's _________.

a. Strategic units; workers; opportunities; technology

b. Strengths; weaknesses; opportunities; threats (Answer)

c. Strengths; weaknesses; opportunities; technology

d. Systems; weaknesses; operations; threats

6) The holistic marketing framework is designed to address which three key

management questions?

a. Segmentation; targeting; positioning

b. Value exploration; value creation; value delivery (Answer)

c. Customer; cost; competition

d. Participation; stability; freedom

7) _____ refers to how well the product or service is brought to the customer.

a. Service differentiation

b. Design

c. Delivery (Answer)

d. Performance quality

8) Some products that require the use of other products are called _____

products.

a. Coordinated

b. Complementary

c. Required

d. Captive (Answer)

9) The _____ identifies the product or brand.

a. Container

b. Label (Answer)

c. Advertisement

d. Warranty

10) A(n) _____ product exceeds customer expectations.

a. Strategic

b. Superior

c. Augmented (Answer)
d. Anticipated

02

1. _________ comprises of the whole group of benefits the company promises to

deliver.

a. Marketing promise

b. Creative offering

c. Value proposition (Answer)

d. Competitive advantage

18

2. The 20-80 rule tells marketers about_______________.

a. The top 80 percent of customers generate 20 percent of the company's

profits

b. The top 20 percent of customers generate 80 percent of the company's (Answer)

profits

c.The bottom 20 percent of customers generate 80 percent of the company's profits

d. 20-80 percent of profits are generated by 20-80 percent of the customers

3. Process to carefully manage detailed information about individual customers and

all "touch points" to enhance customer loyalty is ___________.

a. Customer relationship management (Answer)

b. Data mining

c.Prospecting

d. Customer Information management

4. Customer churn is called __________.

Customer loyalty

Customer defection (Answer)

Customer relationship

Customer mix

5. An organized collection of comprehensive information about individual

customers or prospects is called ________________.

a. Customer database (Answer)

b. Marketing database

c. Business database
d. Data mine

6. One problem that can hinder a firm from using CRM effectively is _________.

a. The assumptions behind CRM may not always be true

b. Building customer databases can be expensive

c. Getting everyone in the company to be customer oriented

d. All of the above (Answer)

7. An organization that aims to highlight high quality will offer customers more than

__________ enforced by the courts.

a. Performance levels

b. Quality levels

c. Implied warranties (Answer)

d. Prices

8. The inability of the selling company to match up its offering to the needs of

customer causes the primary reason for new product _____________.

a. Diversification

b. Failure (Answer)

c. Success

d. Development

9. Products that are inventions are known as ______________.

a. New category entry

b. An addition to product line

c. New-to-the-world products (Answer)

d. A product improvement

10. A growth direction through the increase in market share for present product

markets denotes which of the following?

a. Market penetration (Answer)

b. Marketing mix

c. Market development

Product development

Which of the following is a controllable factor for marketers?


Select correct option:
Competition
Technology

Corporate culture (correct)

Economy

Reference: (Page # 12) CONTROLLABLE FACTORS

a) Line of business: This consists of goods and services category

b) Overall objectives: Numerical goals, etc

c) Role of Marketing: Importance and integration of services

d) Corporate culture: the conditions that exist inside the organization

Relationship marketing is also known as: Select correct option:

Brand marketing

Value marketing

Loyalty marketing (Correct)

Experiential marketing

Reference: (Page # 5) Relationship Marketing focuses on establish and building long


term relationship between the company and customer. We also call it loyalty
marketing.

The loyalty marketing focuses on establishing long term relationship between: Select
correct option:

Company and retailer

Retailer and customer

Retailer and consumer

Company and customer (Answer)

Reference: (page # 5) Relationship Marketing focuses on establish and building long


term relationship between the company and customer. We also call it loyalty
marketing.

Which of the following is NOT an objective of discounts?

Reward valuable customers

Reward competitors (Answer)

Move out-of-date stock

Increase short-term sales

Page # 44 and lesson # 21

The Purpose of Discounts is to


Increase short-term sales, Move out-of-date stock, Reward valuable customers,

Encourage distribution channel members to perform a function.

Market price is also known as:

Effective price (Correct)

List price

Retail price

Wholesaler price

Reference

Page # 44 and lesson # 21

The market price (also called effective price) is the amount actually paid.

Which of the following best describes 3/10 net 40 ROG?

The buyer must pay within 10 days of receipt of goods but will receive 3% discount
if paid in 10 days

The buyer must pay within 3 days of receipt of goods but will receive 10% discount
if paid in 40 days

The buyer must pay within 10 days of receipt of goods but will receive 3% discount
if paid in 40 days

The buyer must pay within 40 days of receipt of goods but will receive 3% discount
if paid in 10 days (Correct)

Page # 45 and lesson # 21

2/15 net 40 ROG - this means the buyer must pay within 40 days of receipt of goods,
but will receive a 2% discount if paid in 15 days.

Which of the following is also known as accumulation discounts?

Trade discount

Non-cumulative quantity discount

Cumulative quantity discount(Correct)

Quantity discount

Page # 45 and lesson # 21

Quantity discounts - These are price reductions given for large purchases. The
rationale behind them is to obtain economies of scale and pass some (or all) of these
savings on to the customer. In some industries, buyer groups and co-ops have formed
to take advantage of these discounts. Generally there are two types: Cumulative
quantity discounts (also called accumulation discounts). These are price reductions
based on the quantity purchased over a set period of time. The expectation is that
they will impose an implied switching cost and thereby bond the purchaser to the
seller.

A company is providing warehousing facility to its channel members. The company is


using which of the following?

Seasonal discount

Trade discount (Correct)

Quantity discount

Cash discount

Page # 45 and lesson # 21

Trade discounts (also called functional discounts) These are payments to distribution
channel members for performing some function. Examples of these functions are
warehousing and shelf stocking.

Which of the following firms emphasizes on products benefits to the customers


rather product attributes?

Product oriented

Market oriented (Correct)

Sales oriented

Production oriented

Market Orientation: Business approach or philosophy that focuses on identifying and


meeting the stated or hidden needs or wants of the customers, through its own or
acquired products.

Which of the following is NOT a technique of measuring customer satisfaction and


monitoring customers complaint?

Customer complaints database

Web and telephone information hotlines

Exit interviews

Business analysis (Correct)

Page # 7 and lesson # 3 Customer satisfactions and complaint monitoring


procedures, including; exit interviews, customer complaints database, and Web and
telephone information hotlines.

The phenomenon, when a customer dislikes a product and talks against the product,
is termed as:

Propaganda
Unfavorable environment

Bad mouth (Correct)

Bad impression

Page # 9 and lesson # 4 the customer still may not fully like the product and have
what we calls bad-mouth. Bad mouth is when a customer talks not in favors of the
product. Bad mouth travels fast.

Products that are usually purchased due to adversity and high promotional back up
rather than desire are called:

Sought goods

Unique goods

Unsought goods (Correct)

Preferred goods

Page # 9 and lesson # 4

THE SELLING CONCEPT This concept emphasizes on aggressive selling and high
promotional back up. Selling, concept is practical on what we call as unsought
goods such as insurance, encyclopedia etc
A customer requirement about any product in which he/ she needs to avail core
features in that product, is called:

Real need

Stated need (Correct)

Unstated need

Delighted need

Page # 10 and lesson # 4 CONSUMER NEED It is not always simple. It is difficult to


correctly ascertain. A customer says. I want an inexpensive car what is he saying?
He wants a car that is not expensive. So he needs a car but not expensive compared
to his income. Needs are .Stated need (an inexpensive Car) ,Real need (wants a car
which is lower in maintenance), Unstated need (he wants a strong car)

Which of the following is NOT an aggressiveness strategy?

Harvesting

Building

Intensification (Correct)

Holding

Page # 18 and lesson # 9 Aggressiveness Strategies - This asks whether a firm


should grow or not, and if so, how fast. One scheme divides strategies into:
building

holding

harvesting

Which of the following is NOT a type of innovation strategy?

Pioneers

Challengers (Correct)

Close followers

Late followers

Page # 18 and lesson # 9

Innovation Strategies- This deals with the firm rate of new product development and

business model innovation. It asks whether the company is on the cutting edge of
technology and business innovation. There are three types:

o pioneers

o close followers

o late followers

Customers viewpoint on a firms products and services can be improved through:

experiential world of customers

Experiential innovation (correct)

Customer interface

Building experiential platform

Experiential innovation: Anything that can improve customers own viewpoint on


your products and services. (page # 6)

Which of the following is not a component of a marketing plan? Select correct option:

Marketing advantages (correct Answer)

Environmental analysis

Executive summary
Marketing implementation

Reference & Explanation: (http://webcache.googleusercontent.com/s ... l=en&gl=p)

The _____ is the central instrument for directing and coordinating the marketing
effort. Select correct option:

Business plan

Production plan

Market plan (correct)

Selling plan

References: http://www.docstoc.com/docs/16477755/marketing-plan/
http://www.citeman.com/418-the-central- ... -planning/

Which of the following is NOT an example of variable cost? Select correct option:

Rent of factory (correct)

Raw material

Power

Transport

(Page # 48)

Any costs incurred by a firm may be classed into two groups:Fixed Cost and. Variable
Cost. Fixed costsare incurred by the business at any level of output. These may
include

Equipment maintenance Rent Wages General upkeep Variable costs change


with the level of output, increasing as more product is generated. Materials
consumed during production Power Transport

Warehousing facility to channel members is an example of: Select correct


option: Seasonal discount

Trade discount (correct)

Quantity discount

Cash discount

(Page # 45)

Trade discounts (also called functional discounts)


These are payments to distribution channel members for performing some function.
Examples of these functions are warehousing and shelf stocking.

Which of the following are the people who purchase new products almost as soon as
the products reach the market?

Innovators (correct)

Late majority

Early majority

Late adopters

Page no 33 of handouts

An innovation refers to anything perceived by some one as new. It may have a long
history of innovating product. But in true sense its an Innovation to the person, who
sees it and it is he who spreads it through a social system.

Which of the following is NOT one of the stages that customers go through in the
process of adopting a new product?

Desire (Correct)

Awareness

Evaluation

Interest

Which product is MOST likely to be purchased through routine decision making?

Television set

Soft drink (Correct)

Shirt

Car

Which of the following part of a marketing plan defines the plans financial and
marketing goals in terms of sales volume, market share and profit?

Marketing strategy (Correct)

Action programs

Issue analysis

Objectives

b) Marketing Strategy Pricing Pricing objectives, pricing method (eg.: cost plus,
demand based, or competitor indexing), pricing strategy (eg.: skimming, or
penetration), discounts and allowances, price elasticity and customer sensitivity,
price zoning, break even analysis at various prices.

Which of the following has a quick response towards a new product?


Opinion leaders

Late majority

Early majority

Early adopters (Correct)

Page # 34

One who are early adopters. They are very quick in their response. These people are
venture some and willing to try new ideas. In fact they are innovators in life and early
adopters.

Which of the following is about managing strategically the customers entire


experience with the product and company?

Customer experience management (Correct)

Customer retention management

Customer life-time value management

Customer relationship management

Reference & Explanation:

CUSTOMER EXPERIECENE MANAGEMENT (CEM)

This term is related to managing strategically customers entire experience with the
product and company.
Internet Marketing
Solved
Brand Market
Brand Marketing
Cash Discounts
Challengers
Corporate Culture
Economie
Encyclopedia
Executive Summaries
Internet Marketing
Solved
Brand Market

Identify the other name for global market.

Consumer market

Import market

Export market (correct)


Government market

A seller wants payment from buyer within 10 days of sales (whereas customer can
made payment within 30 days) and offers 4% discount if payment is made within 10
days. What type of cash discount will be suitable?

4/10 net 30 (correct)

10/4 net 30

10/30 net 4

4/30 net 10

Page # 44

Cash discounts for prompt payment - These are intended to speed payment and
thereby provide liquidity to the firm. They are sometimes used as a promotional
device.

2/10 net 30 this means the buyer must pay within 30 days, but will receive a 2%
discount if they pay within 10 days.

Which of the following price is quoted to a potential buyer, usually in written form?

Wholesale price

Market price

List price (correct)

Retail price

They could modify either the manufacturer's list price (determined by the
manufacturer and often printed
on the package), the retail price (set by the retailer and often attached to the
product with a sticker), or the
list price (which is quoted to a potential buyer, usually in written form). (handouts)

Which of the following is the first step in writing a marketing plan?

Situation analysis

Opportunity and threat analysis

Executive summary (Correct)


Market analysis

Executive Summary

The Plan should open with a brief summary of the plans most important Goals and
Recommendations. The summary can be expressed like in a brief
statement, increase sales by 10% this year or reduce expenses by 5 % or say will
enter UK market this year etc.

Process engineering skills are required for the successful implementation of which
of the following strategy?

Market segmentation strategy

Market dominance strategy

Differentiation strategy

Cost leadership strategy (Correct)

Page # 21

COST LEADERSHIP STRATEGY

This strategy emphasizes efficiency. By producing high volumes of standardized


products, the firm hopes to take advantage of economies of scale and experience
curve effects. The product is often a basic no-frills product that is produced at a
relatively low cost and made available to a very large customer base. Maintaining
this strategy requires a continuous search for cost reductions in all aspects of the
business.

Any tangible thing that can be offered to a market for attention, acquisition, use, or
consumption that might satisfy a want or need is called:

Service

Product (Correct)

Demand

Idea

(Page # 24)

In marketing, a product is anything that can be offered to a market that might


satisfy a want or need. However it is much more than just a physical object. It is the
complete bundle of benefits or satisfactions that buyers perceive they will obtain if
they purchase the product. It is the sum of all physical, psychological, symbolic, and
service attributes.

Luxury products, such as Rolex watches, are also known as:

Shopping product (Correct)

Convenience product

Emergency product

Specialty product
Reference & Explanation:

Shopping Goods: some comparison with other goods

Convenience Goods: purchased frequently and with minimal effort, often referred to
as FMCG(Fast Moving Consumer Goods)

Emergency Goods: goods required immediately Specialty Goods: extensive


comparisons with other goods and a lengthy information search

Which of the following is NOT a decision required in commercialization?

Why to launch the product? (correct)

How to launch the product?

Where to launch the product?

When to launch the product?

(Page # 31)

COMMERCIALIZATION

THIS IS THE MOST CRUCIAL DECISION BY MARKETING MANAGERS

It involves cost to the maximum

It is the beginning of a long journey of the product

No mistake of even a minor nature is acceptable or admissible.

The process of commercialization is defined as a series of steps to be taken by the


marketing management towards bringing this new product to the markets and to the
consumers Some of the major decisions have to be taken and strategies devised to
launch and make product successful

at the very outset. The decisions required are:

WHEN TO LAUNCH THE PRODUCT?

WHERE TO LANCH THE PRODUCT?

TO WHOM TO LAUNCH THE PRODUCT?

HOW TO LAUNCH THE PRODUCT?

Which of the following is the spread of idea from the source of invention to the
ultimate user or consumers?

Innovation adoption process

Innovation diffusion process (Correct)


Adoption process

New product recognition

Which of the following aggressive strategy is without direction?


Reactor (Answer)
Analyzer
Defender
Prospector

F&M Company is a manufacturer of bread. After analysis we concluded


that its business has low market share and low growth. Which of the
following option best reflects this condition?
Question marks
Cash cows
Dogs (Answer)
Stars

Which of the following is the task of selecting an overall company


strategy for long-run survival and growth?
Mid-term planning
Short-term planning
Annual market planning
Strategic market planning (Answer)

Philo Taylor Farnsworth debuts the first electronic television system


in:
1927 (Answer)
1900
1950
1850

Which of the following involves designing and manufacturing the


container or wrapper for a product?
Labeling
Packaging (Answer)
Branding
Product line

Cinematograph invented by Auguste and Louis Lumiere in


1890 (Answer)
1860
1895
1899

Cash cows are SBU's that typically generate:

Paper losses in the long run


Large awareness levels but few sales
A lot of competition
Large amounts of cash (Answer)

Identify the sales promotion technique in which price of a product is


temporally reduces to increase sales.
Contests
Coupons
Loss leader (Answer)
Free samples

Which of the following is a type of price discrimination in which price


varies according to quantity sold?
First degree discrimination
Second degree discrimination (Answer)
Third degree discrimination
Fourth degree discrimination
Which of the following represent the companies which prefer to follow rather than
challenge?

Market challenger
Market follower (Answer)
Market nicher
Market leader

In term of marketing mix, a television show like Tariq Aziz show is an example of:

Product (Answer)
Price
Place
Promotion

Which of the following includes displays, discounts, coupons, and demonstrations?

Public relations
Advertising
Direct marketing
Sales promotion (Answer)
www.vuzs.info
Identify which of the following is an aggressive strategy.

Intensification
Diversification
Harvesting (Answer)
Vertical integration
Aggressiveness Strategies - This asks whether a firm should grow or not, and if so, how
fast.
One scheme divides strategies into:
building
holding
harvesting

During which stage of new product development does the firm consider profitability?

Idea generation
Business analysis (Answer)
Market testing
Product development

www.vuzs.info
The growth stage of a product life cycle is associated with:

Rapidly rising sales (Answer)


Low sales
Declining sales
Low profit

Which of the following element of marketing mix customer analyzes at the last, taking a
decision of buying a particular product?

Promotion (Answer)
Place
Price
Product

Which of the following is the first step in the new product development process?

Idea generation (Answer)


Idea development
Idea screening
Idea testing
Identify the revenue which is added by the sales of an additional item.

Basic revenue
Marginal revenue (Answer)
Average revenue
Total revenue
51. With the ________ heuristic, the consumer sets a minimum acceptable cutoff level for each
attribute and chooses the first alternative that meets the minimum standard for all attributes.
a. conjunctive
b. lexicographic
c. elimination-by-aspects
d. primary
e. secondary
Answer: a
52. Even if consumers form brand evaluations, two general factors can intervene between the
purchase intention and the purchase decision. One of these is unanticipated situational factors.
What is the second factor?
a. Amount of purchasing power.
b. Attitudes of others.
c. Short-term memory capabilities.
d. Ability to return merchandise.
e. The self-concept.
Answer: b
53. ________ risk occurs if the product fails to perform up to expectations.
a. Physical
b. Financial
c. Social
d. Psychological
e. Functional
Answer: e
54. If performance meets consumer expectations, the consumer is ________.
a. delighted
b. satisfied
c. disappointed
d. surprised
e. overwhelmed
Answer: b
55. A key driver of sales frequency is the ________ rate.
a. product consumption
b. disposal
c. refusal
d. utility
e. option
Answer: a
56. The level of engagement and active processing undertaken by the consumer in responding to
a marketing stimulus is called ________.
a. elaboration likelihood
b. consumer disengagement
c. consumer involvement
d. variety-seeking
e. low-involvement
Answer: c
57. If a consumer is persuaded to buy a product by a message that requires little thought and is
based on an association with a brands positive consumption experiences from the past, the
consumer used a ________ to arrive at this purchase decision.
a. central route
b. peripheral route
c. behavioral route
d. subjective route
e. objective route
Answer: b
58. With the ________, predictions of usage are based on quickness and
ease of use.
a. availability heuristic
b. representative heuristic
c. anchoring heuristic
d. adjustment heuristic
e. semantic heuristic
Answer: a
59. Ben always reaches for the bright blue and yellow box of Ritz crackers when he visits the snack
food aisle in the grocery store. He rarely even reads the box or checks the price. Which of the
following heuristics is most likely being used by Ben?
a. Availability
b. Representative
c. Anchoring
d. Adjustment
e. Semantic
Answer: b
60. ________ refers to the manner by which consumers code, categorize, and evaluate financial
outcomes of choices.
a. Cost accounting
b. Financial accounting
c. Behavioral accounting
d. Mental accounting
e. Factual accounting
Answer: d

Chapter 8
New-Product Development and Product Life-Cycle Strategies

Multiple-Choice
1. _____ is the development of original products, product improvements,
product modifications, and new brands through the firms own R&D efforts .

a. Idea generation

b. Concept testing

c. Test marketing

d. New product development

Answer: (d)

2. All of the following are different ways a firm can obtain new
products, except which one?

a. By acquiring a whole new company

b. A firm can obtain a new product through patents

c. A firm can obtain a new product by licensing someone else's new product

d. A firm can obtain a new product by using the R&D department of other firms
in the same industry.

Answer: (d)

3. All of the following are accurate descriptions of reasons why new products
fail, except which o1ne?

a. Although the market size was correctly estimated, the product idea itself
was not good.

b. The actual product was not designed as well as it should have been.

c. The new product was priced too high.

d. The new product was advertised poorly.

Answer: (a)
4. All of the following are accurate descriptions of ways companies are anxious to
learn how to improve the odds of new-product success, except which one?

a. Find out what successful new products have in common.

b. To learn lessons from new product failures.

c. Companies have to learn to understand their own consumers.

d. Do not overly rely on product innovation when you can succeed by copying
others.

Answer: (d)

5. New-product development starts with _____.

a. idea screening

b. idea generation

c. concept development and testing

d. marketing strategy development

Answer: (b)

6. _____ is the systematic search for new-product ideas.

a. Idea generation

b. Idea screening

c. Concept development and testing

d. Marketing strategy development

Answer: (a)

7. All of the following are major internal sources of new-product ideas, except which
one?

a. Picking the brains of company executives, scientists, engineers and


salespeople is a good way to generate ideas.

b. Intrapreneurial programs that encourage employees to think and develop


new-product ideas is a good way to generate ideas.

c. Some companies employ creative approaches, including both "method and


madness" in helping them to generate new product ideas.

d. Good ideas come from watching and listening to customers.

Answer: (d)

8. Major sources of new product ideas include _____.


a. internal sources, using company R&D

b. creative approaches, using both "method and madness" approaches

c. watching and listening to customers

d. all of the above are sources of new product ideas

Answer: (d)

9. All of the following are major external sources of new-product ideas, except which
one?

a. Companies can conduct surveys or focus groups to learn about consumer


needs and wants.

b. Competitors are a good source of new-product ideas.

c. Some companies employ creative approaches, including both "method and


madness" in helping them to generate new product ideas.

d. Good ideas come from watching and listening to customers.

Answer: (d)

10. All of the following are accurate descriptions of new product ideas, except which
one?

a. New product development starts with idea generation.

b. Some companies use brainstorming exercises that expand people's minds


and generate new ideas around the client's problem.

c. At the beginning of the process, carefully scrutinize each idea and throw far-
fetched and impractical ones out the window.

d. Customers must be careful not to rely too heavily on customer input when
developing new products.

Answer: (c)

11. Some companies have installed a(n) _____ that directs the flow of new ideas to
a central point where they can be collected, reviewed, and evaluated.

a. new-product development team

b. idea management system

c. computer system

d. satellite system

Answer: (b)
12. In order to install an idea management system, whereby all ideas are directed to
a central point, a company can do any or all of the following:

a. Appoint a respected senior person to be the firm's idea manager.

b. Create a cross-functional idea management committee comprising of people


form R&D, finance, engineering and operations to meet and evaluate
new product ideas.

c. Reward employees through formal recognition programs.

d. All of the above are legitimate ways to systematically collect ideas.

Answer: (d)

13. The purpose of _____ is to generate a large number of ideas.

a. idea screening

b. idea generation

c. concept development and testing

d. marketing strategy development

Answer: (b)

14. The first idea reducing stage is _____ , which helps spot good ideas and drop poor
ones as soon as possible.

a. idea generation

b. idea screening

c. concept development and testing

d. marketing strategy development

Answer: (b)

15. A _____ is a detailed version of the idea stated in meaningful consumer terms.

a. product idea

b. product concept

c. product image

d. test market

Answer: (b)

16. A _____ is the way consumers perceive an actual or potential product.

a. product idea
b. product concept

c. product image

d. test market

Answer: (c)

17. An attractive idea must be developed into a _____.

a. product idea

b. product concept

c. product image

d. test market

Answer: (b)

18. All of the following are accurate descriptions of activities performed in the idea
screening stage of new product development, except which one?

a. Idea screening helps spot good ideas and drop poor ones as soon as
possible.

b. Companies want to go ahead only with the product ideas that will turn into
profitable products.

c. Many companies require their executives to write up new product ideas on a


standard form that can be reviewed by a new-product committee.

d. Setting up a toll-free number or Web site for anyone who wants to send
a new idea to the idea manager.

Answer: (d)

19. _____ calls for testing new-product concepts with groups of target consumers.

a. Concept development

b. Concept testing

c. Idea generation

d. Idea screening

Answer: (b)

20. _____ entails testing new-product concepts with a target group of consumers to
find out if the concepts have strong consumer appeal.

a. Concept development

b. Concept testing

c. Idea generation
d. Idea screening

Answer: (b)

21. Product concepts are presented to consumers during concept testing in any of
the following ways, except which one?

a. A word or picture description is presented to consumers.

b. A concrete and physical presentation of the concept will increase the


reliability of the concept test.

c. Some companies are using virtual reality to test product concepts.

d. Companies are reluctant to use the Web to test product concepts.

Answer: (d)

22. Designing an initial marketing strategy for a new product based on the _____ is
called marketing strategy development.

a. new product idea

b. product concept

c. test market results

d. product prototype

Answer: (b)

23. The marketing strategy statement in new product development consists of three
parts: _____, _____, and _____.

a. idea generation; idea screening; concept development

b. idea generation; concept development; concept testing

c. idea generation; idea screening; idea management

d. target market description; planned product positioning; sales, market share,


and profit goals for the first few years.

Answer: (d)

24. _____ involves a review of the sales, costs, and profit projections for a new product
to find out whether they satisfy the company's objectives.

a. Idea generation

b. Idea screening

c. Business analysis
d. Concept development and testing

Answer: (c)

25. If a product concept passes the _____, it moves into _____.

a. business analysis test; product development

b. concept development stage; product development

c. concept testing stage; product development

d. idea generation stage; product development

Answer: (a)

26. Once management has decided on a product concept and marketing strategy, it
can next evaluate the _____ of the proposal.

a. product idea portion

b. product development part

c. business attractiveness

d. commercial viability

Answer: (c)

27. In the product concept stage of new-product development, the product is merely a
_____.

a. word description

b. crude mock-up

c. drawing

d. all of the above

Answer: (d)

28. In the _____ of new-product development, often products undergo rigorous tests to
make sure that they perform safely and effectively or that consumers will find
value in them.

a. business analysis stage

b. idea generation

c. concept development and testing stage

d. product development phase

Answer: (d)
29. _____ is the stage of new-product development in which the product and marketing
program are tested in more realistic market settings.

a. Business analysis

b. Idea generation

c. Test marketing

d. Marketing strategy development

Answer: (c)

30. All of the following are accurate descriptions of test marketing, except which
one?

a. Test marketing is the stage at which the product and marketing program are
introduced into realistic market settings.

b. Test marketing by consumer-packaged goods firms has been increasing in


recent years.

c. Test marketing costs can be high, and it takes time that may allow
competitors to gain advantages.

d. Companies often do not test market simple line extensions.

Answer: (b)

31. Introducing a new product into the market is called _____.

a. test marketing

b. new product development

c. experimenting

d. commercialization

Answer: (d)

32. A company getting ready to launch a new product must make several decisions.
However, the company must first decide on _____.

a. whether to launch the product in a single location

b. whether to launch the product in a region

c. whether to launch the product into full national or international distribution

d. timing of the new product introduction

Answer: (d)
33. _____ is a new-product development approach in which one company department
works to complete its stage of the process before passing the new product
along to the next department and stage.

a. Team-based product development

b. Simultaneous product development

c. Sequential product development

d. Product life-cycle analysis

Answer: (c)

34. In order to get their new products to market more quickly, many companies are
adopting a faster, team-oriented approach called _____.

a. sequential product development

b. simultaneous product development

c. commercialization

d. introduction timing

Answer: (b)

35. All of the following statements are accurate descriptions of the simultaneous
product development approach to new product development, exceptwhich one?

a. The simultaneous product development approach is also known as


collaborative product development.

b. Company departments work closely together through cross-functional


teams.

c. Companies assemble a team of people from various departments that stay


with the new product from start to finish.

d. Companies often pass the new product from department to department in


each stage of the process.

Answer: (d)

36. All of the following are accurate descriptions of new-product development


approaches used by companies in the commercialization phase of the
process, except which one?

a. New-product development teams in the simultaneous approach tend to stay


with the new product from start to finish.

b. In the simultaneous approach, top management gives the product


development team general strategic direction but no clear-cut product
idea or work plan.
c. In order to get their new products to market more quickly, many companies
are adopting a faster approach called sequential product development.

d. The simultaneous team-based approach can be riskier and more costly than
the slower, more orderly sequential approach.

Answer: (c)

37. All of the following are limitations of the simultaneous team-based approach to
new-product development, except which one?

a. Superfast product development can be riskier and more costly than the
slower, more orderly sequential approach.

b. This approach often creates increased organizational tension and confusion.

c. The objective of this approach is to ensure that rushing a product to market


doesn't adversely affect its quality.

d. Top management gives the product development team a clear-cut product


idea or work plan.

Answer: (d)

38. All of the following statements accurately reflect the requisites of new-product
success, except which one?

a. Thinking of a few good ideas, turning them into products, and finding
customers for them.

b. A systematic approach for finding new ways to create value for target
consumers, from generating and screening new-product ideas to
creating and rolling out want-satisfying products to customers.

c. New-product success requires a total-company commitment.

d. At firms known for their new-product success, their culture does not
encourage, support, and reward innovation.

Answer: (d)

39. _____ begins when the company finds and develops a new-product idea. During
product development, sales are zero and the company's investment costs
mount.

a. Introduction

b. Growth

c. Maturity

d. Product development

Answer: (d)
40. _____ is a period of slow sales growth as the product is introduced into the market.
Profits are non-existent in this stage because of the heavy expenses of
product introduction.

a. Growth

b. Product development

c. Maturity

d. Introduction

Answer: (d)

41. _____ is a period of market acceptance and increasing profits.

a. Product development

b. Maturity

c. Growth

d. Introduction

Answer: (c)

42. _____ is the course of a product's sales and profits over its lifetime, involving five
distinct stages: product development, introduction, growth, maturity, and
decline.

a. Product life cycle

b. Maturity

c. Growth

d. Decline

Answer: (a)

43. _____ is the period when sales fall off and profits drop.

a. Introduction

b. Growth

c. Maturity

d. Decline

Answer: (d)

44. All of the following are accurate descriptions of the product life cycle
concept, except which one?
a. The PLC concept can describe a product class.

b. The PLC concept can describe a product form.

c. The PLC concept can describe a brand.

d. Product forms tend to have the longest life cycles.

Answer: (d)

45. All of the following are accurate descriptions of the application of the product life
cycle concept, except which one?

a. The PLC concept can be applied to styles.

b. The PLC concept can be applied to fashions.

c. The PLC concept can be applied to fads.

d. The PLC concept can be applied to all of the above.

Answer: (d)

46. All of the following are accurate descriptions of the life cycle of a style
product, except which one?

a. Style products appear in homes, clothing, and art.

b. Once a style is invented, it may last for generations.

c. A style has a cycle showing several periods of renewed interest.

d. Styles last only a short time and tend to attract only a limited following.

Answer: (d)

47. _____ are fashions that enter quickly, are adopted with great zeal, peak early, and
decline very quickly.

a. Fashion

b. Fads

c. Styles

d. Mature products

Answer: (b)

48. The product life-cycle stage in which the new product is first distributed and
made available for purchase is called the _____.

a. maturity stage
b. growth stage

c. introduction stage

d. decline stage

Answer: (c)

49. All of the following are characteristics of the introduction stage of the
PLC, except which one?

a. Profits are usually negative or low because of low sales.

b. Profits are usually negative or low because of high distribution and


promotion expenses.

c. Lots of money is needed to attract distributors and build inventories.

d. Educating the market remains a goal, but now the company must also meet
the competition.

Answer: (d)

50. All of the following are accurate descriptions of product launch strategies that
are recommended of market pioneers, except which one?

a. The product launch strategy must be consistent with the intended product
positioning.

b. The initial strategy is just the first step in a grander marketing plan for the
product's entire life cycle.

c. Pioneers must avoid sacrificing long-run revenue for the sake of short-run
gain.

d. Pioneers have the best chance of building and retaining market share if they
decide to take risks from the start.

Answer: (d)

1. If the new product satisfies the market, it will enter a(an) _____, in which sales will
start climbing quickly.

a. introduction stage

b. growth stage

c. maturity stage

d. decline stage

Answer: (b)

2. At some point, a product's sales growth will slow down, and the product will enter
the _____.

a. introduction stage
b. growth stage

c. maturity stage

d. decline stage

Answer: (c)

4. All of the following are characteristics of the growth stage of the product
life cycle, except which one?

a. The slowdown in sales growth results in many producers with many


products to sell.

b. The early adopters will continue to buy, and later buyers will start following
their lead, especially with favorable word of mouth.

c. Attracted by opportunities for profit, new competitors will enter the market.

d. Prices remain where they are or fall only slightly.

Answer: (a)

5. Profits increase during the _____ as promotion costs are spread over a large volume
and as unit manufacturing costs fall.

a. introduction stage

b. decline stage

c. maturity stage

d. growth stage

Answer: (d)

6. In the ____, the firm faces a trade-off between high market share and high current
profit.

a. growth stage

b. decline stage

c. maturity stage

d. introduction stage

Answer: (a) Difficulty: (2) Page: 281

7. Mattel's Barbie is an example of age-defying products. Barbie, both timeless and


trendy, is in the _____ of the PLC.

a. introduction stage

b. growth stage

c. maturity stage
d. decline stage

Answer: (c) Difficulty: (2) Page: 283

8. Over the past 100 years or so, Binney and Smith's Crayola crayons have become
a household staple in more than 80 countries around the
world.Crayola crayons is in the _____ of the PLC.

a. introduction stage

b. maturity stage

c. growth stage

d. decline stage

Answer: (b) Difficulty: (2) Page: 283

9. Johnson and Johnson targeted the adult market with its baby powder and
shampoo. In _____, Johnson and Johnson increased the consumption of the
current product.

a. modifying the product

b. modifying the market

c. modifying the pricing strategy

d. modifying the distribution

Answer: (b) Difficulty: (2) Page: 281

10. Mattel's Barbie and Binney and Smith's Crayola crayons are two examples of
products that might have been only _____, but instead were turned into long-
term market winners with plenty of staying power.

a. fashion products

b. fads

c. style products

d. all of the above

Answer: (b) Difficulty: (3) Pages: 283-284

11. "Pet rocks" are a classic example of a _____.

a. fashion product

b. style product

c. fad
d. none of the above

Answer: (c) Difficulty: (3) Page: 279

12. When Heinz introduced EZ Squirt packaging and new colors such as Blastin'
Green and Awesome Orange to revitalize consumer buying, the company was
_____.

a. modifying the market

b. modifying the pricing strategy

c. modifying the distribution

d. modifying the product

Answer: (d) Difficulty: (3) Page: 282

13. The WD-40 Company's knack for finding new uses has made this popular
substance one of the truly essential survival items in most homes. WD-40 is in
the _____ of the PLC.

a. introduction stage

b. growth stage

c. maturity stage

d. decline stage

Answer: (c) Difficulty: (2) Page: 282

14. All of the following are accurate descriptions of different ways companies extend
the maturity stage of the PLC, except which one?

a. modifying the market

b. modifying the product

c. modifying the marketing mix

d. pruning the product offerings

Answer: (d) Difficulty: (2) Pages: 281-282

15. The product life-cycle stage, in which sales plunge to zero or drop to a low level
at which they continue for many years, is the _____.

a. introduction stage

b. growth stage

c. maturity stage

d. decline stage
Answer: (d) Difficulty: (2) Page: 285

16. Product sales decline for many reasons, including which of the following?

a. recent technological advances

b. shifts in consumer tastes

c. increased competition

d. all of the above

Answer: (d) Difficulty: (1) Page: 285

17. Management must decide whether to maintain, harvest, or drop aging products in
the _____ of the PLC.

a. introduction stage

b. growth stage

c. maturity stage

d. decline stage

Answer: (d) Difficulty: (2) Page: 285

18. All of the following are characteristics of the decline stage of the
PLC, except which one?

a. As sales and profits decline, some firms withdraw from the market.

b. Some firms prune their product offerings.

c. Some firms drop smaller market segments and marginal trade channels.

d. Some firms modify the market.

Answer: (d) Difficulty: (3) Page: 285

19. All of the following are stages in the PLC, except which one?

a. introduction

b. adoption

c. growth

d. decline

Answer: (b) Difficulty: (2) Page: 277


20. Soft drink makers, such as Coca-Cola and Pepsi Cola, know very well that their
flagship brands are in the _____ of the PLC. Greater competition, price
markdowns, increase in advertising and sales promotion and, higher R&D
budgets, are characteristics of this stage.

a. product development

b. introduction

c. growth

d. maturity

Answer: (d) Difficulty: (2) Page: 281

21. Profits begin to slowly decline even before sales begin to drop significantly. This
indicates a product is in the _____ of the PLC.

a. introduction stage

b. growth stage

c. maturity stage

d. decline stage

Answer: (c) Difficulty: (2) Page: 280

22. All of the following are accurate descriptions of practical problems faced by
marketers using the PLC concept, except which one?

a. The PLC concept can be used as framework to describe how products and
markets work.

b. The PLC concept can be used to forecast product performance.

c. The PLC concept can be used to develop marketing strategies.

d. The PLC concept can be used to determine the factors that affect the
product's movement through the stages.

Answer: (a) Difficulty: (3) Page: 280

23. In the _____ of the PLC, marketers use increased sales promotion to encourage
brand switching.

a. introduction stage

b. product development stage

c. growth stage

d. maturity stage

Answer: (d) Difficulty: (3) Page: 286


24. In the _____ of the PLC, marketers price to penetrate the market.

a. introduction stage

b. growth stage

c. maturity stage

d. product development stage

Answer: (b) Difficulty: (3) Page: 286

25. In the _____ of the PLC, marketers build product awareness among early adopters
and dealers.

a. growth stage

b. introduction

c. maturity stage

d. decline

Answer: (b) Difficulty: (2) Page: 286

26. The best example of a product(s) towards the end of the maturity stage
and/or early decline stages of the product life cycle is _____.

a. cellular telephones
b. high definition television (HDTV)
c. 3.5 inch floppy disks
d. electric cars
Answer: (c) Difficulty: (3) Page: 281

76. According to the text, all of the following are accurate descriptions of Microsoft,

except which one?

a. Microsoft has long been regarded as a product innovator.

b. Microsoft has long been regarded as "a big fat copycat."

c. Microsoft used its brute force to muscle into dominance of the operating
system world.

d. Microsoft is now innovating at a breakneck pace.

Answer: (a) Difficulty: (3) Page: 262


77. After idea generation and screening, consumers may then be asked to react to
the _____ by answering a few questions.

a. marketing strategy

b. product concept

c. business analysis

d. product development

Answer: (b) Difficulty: (2) Page: 273

78. Some marketers are finding innovative ways to make _____ more real to consumer
subjects. For example, some are using virtual-reality programs to simulate
reality.

a. ideas

b. product concepts

c. business analysis

d. marketing strategy

Answer: (b) Difficulty: (3) Page: 271

79. Test marketing is not needed normally under the following


conditions, except which one?

a. When simple line extensions are introduced.

b. When copies of successful competitor products are marketed.

c. When management is already confident about the new product.

d. When introducing a new product requires a big investment.

Answer: (d) Difficulty: (3) Page: 274

80. Introducing a new product into the market requires a lot of investment in time
and

money. The company may have to build or rent a manufacturing facility. And it
may have to spend, in the case of consumer packaged goods, between $10
million and $200 million for advertising, sales promotion and other marketing
efforts. The company is getting ready to go ahead with _____.

a. idea screening

b. product development

c. concept development and testing


d. commercialization

Answer: (d) Difficulty: (3) Page: 265

81. According to the text, in the _____ of the PLC, there are many _____. A weak
product may take up too much of management's time. It often requires
frequent price and inventory adjustments.

a. introduction stage; costs

b. growth stage; hidden costs

c. maturity stage; hidden costs

d. decline stage; hidden costs

Answer: (d) Difficulty: (3) Page: 285

82. All of the following are examples of hidden costs in the decline stage of the
PLC, except which one?

a. A weak product may take up too much of management's time.

b. Carrying a weak product requires frequent price and inventory adjustments.

c. Carrying a weak product requires advertising and sales force attention that
might be better used to make "healthy" products more profitable.

d. Carrying a weak product is not necessarily bad for a firm's future.

Answer: (d) Difficulty: (2) Page: 285

83. Procter and Gamble has sold off a number of lesser or declining brands such as
Oxydol detergent and Jif peanut butter. In these examples, management
decided to _____ the products.

a. maintain

b. harvest

c. drop

d. none of the above

Answer: (c) Difficulty: (3) Page: 286

84. Often in the decline stage of the PLC, management decides to reduce costs
(plant and equipment, R&D, advertising) and hopes sales hold up. This is an
example of _____ the product.

a. harvesting

b. maintaining

c. dropping
d. ignoring

Answer: (a) Difficulty: (2) Page: 286

85. Often management may decide to sell a product to another firm or simply
liquidate it at salvage value in the _____ of the PLC.

a. growth stage

b. maturity stage

c. product development stage

d. decline stage

Answer: (d) Difficulty: (2) Page: 287

1. ___________is a buying situation in which the purchasing department reorders on


a routine situation?

a) Modified Rebuy

b) Straight Rebuy (Answer)

c) Direct Purchasing

d) New Task

2. HSBC bank adopts marketing concept, which of the philosophies is


appropriate from the following

a) Customer is always right (Answer)

b) Profit is our sole motto

c) Selling goods at any cost

d) All the above

3. _______are people who decide on product requirement or on suppliers in the


business buying process?

a) Initiators

b) Deciders (Answer)

c) Approvers
d) Gatekeepers

4. ____________is the management process responsible for identifying,


anticipating and satisfying customers requirements profitably?

a) Marketing Strategy

b) Marketing Information

c) Marketing (Answer)

d) Marketing Research

5. __________ decides the various goals and plans that the organization will
follow?

a) International Marketing

b) Marketing Strategy (Answer)

c) Marketing Communication

d) Marketing Research

6. Five Ms of advertising are mission, money, media, measurement, and?

a) Message (Answer)

b) Market Testing

c) Material

d) Manage

7. Physical concrete product that you can touch is called as

a) Core Product

b) Augmented Product

c) Tangible Product (Answer)

d) Potential Product

8. Programs aimed at promoting or protecting a companys image in the minds


of its publics are collectively called _________

a) Trade Promotion
b) Public Advertising

c) Sales Promotion

d) Public Relations (Answer)

9. Tools Inc. buys hammers, bolts and other hardware items and sells them to
hardware shops at a price that includes a profit. Tools Inc. would be part of what kind
of market?

a) Reseller (Answer)

b) Producer

c) Institutional

d) Government

10. The marketing environment is best described as

a) Dynamic and changing (Answer)

b) Composed of controlled variables

c) Composed of dependent variables

d) None of the above

11. Inelastic demand in industrial markets refers to a situation where

a) Demand for a given product fluctuates very little over time.

b) Price increase or decrease will not significantly alter demand for a given
product. (Answer)

c) Demand for a given product fluctuates wildly over time.

d) The demand for one product depends heavily on the demand for another
product.

e) Supply for a given product cannot keep up with the demand for it.

12. The fact that organisational customers purchase raw materials or intermediate
products to be used directly or indirectly in the production of goods and services to
satisfy customers' needs means that it is a _______________demand

a) Joint
b) Economically stable

c) Derived (Answer)

d) Inelastic

13. Which is not one of the '4Ps' in the marketing mix?

a) Product.

b) Price.

c) Place.

d) Promotion.

e) Placement. (Answer)

14. Levis manufactures jeans for women, men and children. They are adopting which
method of segmenting

a) psychographic

b) geographic

c) use based

d) demographic (Answer)

15. Marketing is practiced by:

a) Only sales firms.

b) All organizations to some degree. (Answer)

c) Only public firms.

d) Only profit-oriented firms.

16. Parents Against Drunk Drivers is a group that organizes meetings and discussions
to change attitudes and laws about driving under the influence of alcohol. This group
primarily markets

a) goods

b) ideas (Answer)

c) services
d) political messages

17. When Campbell's introduced its line of low-sodium soups in response to consumer
demand, it was following which one of the following philosophies?

a) Selling concept

a. Production concept

b) Customer concept

c) Marketing concept (Answer)

18. If Nissan finds that it can engineer its Micra to go faster, regardless of whether or
not customers are interested in more speed, decides to make this faster model,
Nissan has characteristics associated with the ___________ concept.

a) production (Answer)

b) sales

c) marketing

d) social

19 Which action best illustrates a firms commitment to the marketing concept?

a) The monitoring of consumer satisfaction levels (Answer)

b) The firm is having a large advertising budget

c) The existence of a large sales force

d) The firm is having a high market share in a niche market

20 Evaluating marketing performance by comparing it to established standards


is part of:

a) marketing planning

b) organising marketing activities

c) coordinating marketing activities

d) marketing control (Answer)

21. A marketing manager for a small computer manufacturer is analysing the


potential effects of political, legal, social, and economic forces on the firm's
operations. The marketing manager is examining the __________that influence(s) the
firm's strategy.

a) operating situation

b) marketing environment (Answer)

c) trends

d) economic conditions

22 Emirates charges different prices for Business Class, First Class and
Economy class. This type of pricing is called

a) Discriminatory pricing

b) Perceived value pricing

c) Place pricing (Answer)

d) None of the above

23 In what stage of the consumers decision process does a consumer compares


with the competitors product.

a) Information search

b) Problem awareness

c) Evaluation of alternatives (Answer)

d) Decision making

24. In a specific strategic market plan, a profit centre that is self-supporting in


terms of sales, markets, production, and other resources is known as:

a) profit unit.

b) strategic business unit. (Answer)

c) marketing unit.

d) small business unit.

25. Eppco. is preparing a written document specifying the framework and actions for
implementing and controlling marketing activities. This document is called the

a) profit centre.
b) marketing programme.

c) strategic business plan.

d) marketing plan. (Answer)

26. Corporate strategy planners are concerned with many different issues as they
attempt to match the organisation's __________ with the opportunities and risks in the
environment.

a) strengths (Answer)

b) mission statement

c) strategic business units

d) resources

27. in seeking to identify new demographic groups who can be encouraged to buy
Levi Strauss products for the first time, the company is pursuing which growth
strategy?

a) Market penetration

b) Market development (Answer)

c) Product development

d) Diversification

28 A _______________ consists of consumers who respond in a similar way to a given


set of marketing stimuli.

a) market segment (Answer)

b) market niche

c) market target

d) market positioning

29. The arranging for a product to occupy a clear, distinctive, and desirable place
relative to competing products in the minds of target consumers is called:

a) market segmentation

b) market targeting
c) market positioning (Answer)

d) market positioning

30 Selecting a pricing method depends on which considerations

a) Costs

b) Competitors

c) Price of substitutes

d) All the above (Answer)

31. ______________ are runner-up companies that aggressively attack competitors to


get more market share.

a) Market leaders

b) Market challengers (Answer)

c) Market followers

d) Market nichers

32. A major tool of marketing controls is a comprehensive, systematic, independent,


and periodic review of the company's environment, objectives, strategies, and
activities to determine problem areas and opportunities called the:

a) marketing plan

b) strategic plan

c) marketing audit (Answer)

d) profitability plan

33. Costs that vary directly with level of production ________________ are called

a) Product costs

b) Total costs

c) Variable Costs (Answer)

d) Fixed costs

34 Adding a standard markup to the cost of the product is _________________


a) Value pricing

b) Value-based pricing

c) Cost-plus pricing (Answer)

d) Breakeven pricing

35 High product quality & Low price means_________________

a) Premium strategy

b) Rip off strategy

c) Super value strategy (Answer)

d) Economy strategy

36. Low product quality & Low price means_________________

a) False economy strategy

b) Rip off strategy

c) Super value strategy

d) Economy strategy (Answer)

37. Which of the following is NOT a type of discount on price?

a) Seasonal

b) Quantity

c) Trade

d) Quality (Answer)

38 A ________ pricing objective results in prices being set to recover cash as quickly
as possible.

a. market share

b. product quality

c. return on investment

d. cash flow (Answer)


39. For what type of product would you expect demand to increase in greater
proportion than the price fall?

a) Products with inelastic demand

b) Products with elastic demand (Answer)

c) Products with perfectly elastic demand

d) Products with unitary demand

40. _____________ consumers are concerned about brand image of the product

a) Price-conscious.

b) Value-conscious.

c) Prestige-sensitive. (Answer)

d) Cost-sensitive.

41. The steps involved in the process of establishing a price include all of the
following EXCEPT

a. selecting a pricing strategy.

b. setting the demand. (Answer)

c. developing pricing objectives.

d. determining competitors' prices.

42 Charging more for Snickers chocolate bar in a vending machine than in a


supermarket is an example of

a. value based pricing

b. differential pricing. (Answer)

c. cost-based pricing.

d. competition-based pricing.

43. Hertz prices its rental cars to match precisely the prices set by Avis. Hertz is
using

a. competition-based pricing. (Answer)


b. cost-based pricing.

c. demand-based pricing.

d. reference pricing.

44. ____________is defined as all activities of designing and producing the container
for a product

a) branding

b) packaging (Answer)

c) labeling

d) advertising

45. ________________helps in Informing and persuading customers to purchase products


through an interactive relationship in an exchange situation

a) Personal selling (Answer)

b) direct marketing

c) targeting

d) segmenting

46 ____________ is a paid form of non-personal representation of


goods, ideas or services

a) sales promotion

b) direct marketing

c) advertising (Answer)

d) exhibitions

47 Which of the following is not an objective of advertising

a. inform

b. remind

c. reinforce
d. none of the above (Answer)

48 The purpose of sales promotion

a. varies in their specific objectives (Answer)

b. it is the same for all type of products

c. is to reduce manufacturing coast

d. is to raise the price

49 an example of psychological pricing would be

a. 20%

b. 300.00

c. 225

d. 299 (Answer)

50 Channels of Direct Marketing are :

a. Face to Face Selling.

b. Direct Mail.

c. Telemarketing.

d. All of the above. (Answer)

51. Market__________focus on narrow segment.

a. Leader

b. Challenger

c. Nichers (Answer)

d. None of above

52 giving away Nokia phone with a Mercedes car is

a) Premiums

b) cross promotion (Answer)


c) patronage award

d) all the above

53 charging different prices for different customers at different markets and at


different times is called

a) promotional pricing

b) discriminatory pricing (Answer)

c) product mix pricing

d) geographical pricing

54 tooth paste tube is an example of

a) secondary package

b) primary package (Answer)

c) line extension

d) brand building tool

55 Mercedes is an expensive, well-built and prestigious car, which also offers the
driver High performance, and safety. From this sentence identify the different levels
of meaning:

a) Attributes & Benefits

b) Attributes & Values (Answer)

c) Benefits & Values

d) Culture & Benefits

56 Al Massa Cinemas price for a movie ticket is Dhs 25/- but if a student
produces his/her Identity Card they are given a discount. What type of Pricing Method
has Al Massa Cinema adopted here:

a) Perceived Value pricing

b) Psychological Pricing

c) Promotional Pricing

d) Discriminatory Pricing (Answer)


57 A period of slowdown in sales growth because the product has achieved
acceptance is known as __________

a) -decline

b) maturity (Answer)

c) -introduction

d) -growth

58 _______________ virtually depicts the consumers perception about different brands


& their perceived attributes.

a) -direct marketing

b) -branding

c) -perceptual mapping (Answer)

d) none of the above

59___________ price is based on competitors price

a) -Percieved value pricing

b) -value pricing

c) -going rate pricing (Answer)

d) all the above

60___________ includes all the activities that help increasing the awareness of the
product in the minds of consumers

a) -place

b) -price

c) promotion (Answer)

d) product

61____________ estimates initial sales ,replacement sales ,repeat sales ,calculates


various costs ,overheads etc & profits.

a) -market testing
b) -product development

c) -business analysis (Answer)

d) -all of the above

62 A persons __________ consists of all the groups that have a direct (face-to-face) or
indirect influence on the persons attitudes or behaviour.

a) -focus group

b) -reference group (Answer)

c) -memebership group

d) -business group

e) -consumer group

63) Mixing several tools to deliver a consistent brand image to customers at every
brand contact is known as __________.

a) -customization

b) -customer relationships marketing

c) -customer database

d) -integrated marketing communications (Answer)

64)_______ has the aim of building mutually satisfying long term relationships with
key parties customers, suppliers , distributors in order to earn and retain their
business.

a) -marketing network

b) -business information system

c) -relationship marketing (Answer)

d) -direct marketing

65 The collection of information about external environment

a) Environmental scanning (Answer)

b) sampling
c) research

d) All of the above

66 _____ deals with implementing the marketing strategy for target markets and
marketing mix

a) Marketing plan (Answer)

b) communications

c) sampling

d) none of the above

67 Raw materials, major equipment, component parts and process materials are
example of-

a. Consumer goods

b. Industrial goods (Answer)

c. Process goods

d. None of the above

68 Launching a new product at low price and low level of promotion is

a) Slow penetration

b) Slow skimming (Answer)

c) Rapid penetration

d) Rapid skimming

e) None of the above

69 An advertising strategy that a company would use for a product in its


maturity stage

a) Reduce in level needed to retain hardcore loyals

b) Build product awareness among early adopters

c) Build product awareness and interest in mass market

d) Stress on brand differences and benefits (Answer)


e) None of the above

70 At Boeing, the all digital development of the 777 aircraft made use of a
computer-generated human who would climb inside the 3 dimensional design on-
screen to show how difficult maintenance access would be for a live mechanic. This
allowed the engineers to spot errors that would have remained undiscovered. What
stage of the new product development is Boeing in

a) Concept development

b) Concept screening

c) Concept testing

d) Product development (Answer)

e) None of the above

71 Nabisco Foods Company introduced chocolate, cinnamon, and honey versions


of breakfast cereal. However, the consumers didnt like the taste so the modified it
again and produced it on a mass scale with the result being worse than before.
Where did this food company go wrong

a) Their product is in the decline stage

b) They didnt advertise properly

c) They didnt promote the product

d) They skipped the testing phase of the product (Answer)

e) None of the above

72 Many consumer packaged-goods companies blame _____ for decreasing


product loyalty,

increasing consumer price-sensitivity, brand-quality-image dilution, and


a focus on short-run marketing planning.

A. reminder advertising

B. infomercials

C. persuasive advertising

D. public relations
E. sales promotions (Answer)

73 Maytag has long built high-quality washing machines and priced them higher
than competitors. It now tries to emphasize on innovative features. It new ads points
that the washers are custodians of high priced garments. Which type of pricing is
Maytag using

a) Market skimming pricing (Answer)

b) Market penetration pricing

c) Social pricing

d) Cost recovery pricing

e) None of the above

74 In order to select a pricing for a product, after estimating all your costs what
would be the next logical step to take

a) Selecting a pricing objective (Answer)

b) Analysis of competitors price, costs and offers

c) Selecting a pricing method

d) Estimate indirect cost

e) None of the above

75 Which one of the below doesnt refer to a pricing method

a) Geographical pricing

b) Promotional pricing

c) Price discounts and allowances

d) Discriminatory pricing

e) None of the above (Answer)

76 The part of a brand that is pronounceable is called the:

a) Brand

b) Brand name (Answer)


c) Brand mark

d) Trademark

77 The golden arch of McDonalds is an example of:

a) Brand marks (Answer)

b) Trade promotions

c) Brand names

d) Products

78 The introduction of diet coke is an example of a:

a) Brand extension strategy (Answer)

b) Repositioning strategy

c) Product deletion decision

d) Product distribution strategy

79 When Disney uses toys in McDonalds kids meals to advertise its


latest movie, Disney is

using:

A. tie-in promotions (Answer)

B. prize promotions

C. point-of-purchase promotions

D. cross-promotions

80 When compared to the consumer market, the demand for goods and
services in the business market is:

A. far more elastic

B. significantly more constant

C. derived (Answer)
D. more likely to be affected by changes in price

E. all of the above

81 Interest rates, demand for products, technological change, social


responsibility concerns,

and consumer buying patterns are all examples of _____ influences on


business buyers.

A. environmental (Answer)

B. interpersonal

C. organizational

D. entrepreneurial

E. individual

82. Forecasting is done always on a continuous basis

a) true (Answer)

b) false

83 A finance company that offers prospects a toll-free number to call


and promises it can tell them within fifteen minutes if they are eligible
for a loan is using ____ as its services differentiation strategy

A. customer training

B. ordering ease (Answer)

C. installation

D. delivery

E. distribution

84 Profits improve substantially during the _____ stage of the product


life.

A. introduction

B. repositioning
C. growth (Answer)

D. maturity

E. decline

85 The stage of the life cycle characterized by low sales, heavy


promotion, low profit,

and minimal competition is the _____ stage.

A. introduction (Answer)

B. growth

C. repositioning

D. maturity

E. decline

86 A firm that wants to attract new triers, reward loyal customers, or


increase the repurchase rate of occasional users would be best
served by:

A. personal selling

B. direct marketing

C. advertising

D. sales promotion (Answer)

87 The necessary interaction between service provider and customer that allows a
service to be delivered is called

a. service exchange

b. customer contact (Answer)

c. Degree of labor intensiveness.

d. Customer interactivity.

88 a separate product line or profit center competing with defined sets of


competition is called a strategic business unit
A. true (Answer)

B. false

89. It took three and a half years of research, and 500 formulas, to
develop individually wrapped peanut butter slices. The difficulty was in
finding a formula that preserved the flavor and texture of peanut butter, but
had the "releasability" required for easy separation from a plastic wrapper.
This describes the _____ stage of new-product development.

A. idea screening

B. product development (Answer)

C. concept testing

D. market testing

90 When Procter & Gamble developed Crest Whitestrips (a teeth


whitening system), it was

not sure that consumers would be willing to pay $44 for the system. So its
product manager offered the strips exclusively online. In eight
months, it sold 144,000 whitening kits to a heterogeneous
market. P&G used _____ testing to determine if the teeth
whitening system would sell.

A. market (Answer)

B. functional

C. alpha

D. rank-order

E. concept

91. Which of the following is the BEST example of durable goods?

a) living room furniture

b) aluminum cookware

c) breakfast cereals
d) computer monitors

e) all except (c) (Answer)

92. Brand equity:

A. is tied closely to specific product lines

B. is closely related to the number of customers who are devoted to the


brand (Answer)

C. reduces the amount of product management effort a company needs


to expend

D. may actually hinder the launching of brand extensions

E. will be destroyed when the products manufacturer launches a


premium pricing strategy

93 Thuraya services of Etisalat shows business communications for every


corner of the earth . This advertisement is based on which appeal

A. rational (Answer)

B. practical

C. reciprocal

D. emotional

E. provocative

94 The business market differs from the consumer market in that:

A. businesses acquire goods or services in order to use them for


another purpose, while consumers acquire goods or services for
personal consumption (Answer)

B. businesses acquire all the goods or services for personal


consumption, while the consumer market acquires goods and
services solely for other purposes

C. it is a much smaller market in dollar volume than the consumer


market
D. more product customization takes place in the consumer market

95 The zoo buys much of the fresh food it needs to feed its animals from a
local farm. As a part of the contract between the two parties, the farm buys all the
manure the zoo can produce for its organic vegetables. This is an example
of:indirect purchasing relationship marketing

A. leasing

B. systems selling

C. reciprocity (Answer)

D. none of the above

96 The most routine purchase decision process undertaken by


business buyers is called a:

A. straight rebuy (Answer)

B. modified rebuy

C. new task buy

D. routine rebuy

E. direct purchase

97 The Knoll Textile Manufacturing Company is evaluating potential


suppliers of zippers to be used in a line of childrens outerwear. The company
is concerned about the delivery reliability, price, and supplier reputation.
Knoll is in the _____ phase of the business buying process.

A. supplier selection (Answer)

B. proposal solicitation

C. product specification

D. performance review

E. order-routine specification

98. which is not a basis of market forecasting

a) product scale
b) time scale

c) space scale

d) pricing scale (Answer)

99 According to the concept of the product life cycle:

A. products have a limited life (Answer)

B. products spend a predetermined amount of time in each stage of the


life cycle; this time span is determined by the product category

C. most products require the same level of marketing throughout their


life cycle

D. a products profits are fixed throughout its life cycle

100 Several existing products on the market tend to hinder new-


product development. These hindrances include:

A. fragmented markets

B. shorter product life cycles

C. shortage of ways to improve or modify certain products

D. faster required developmental time

E. all of the above (Answer)

1. The process of selecting the segments to serve by offering product


is referred as

Market segmentation

Targeting (Answer)

Marketing

Both a and b

2. Firm's performance can be better measured by


Current sales

Customer equity (Answer)

Market share

Both a and b

3. The suitable example of 'The Selling Concept' is

Insurance or blood donations (Answer)

Lenovo

Southwest Airlines

Bottled water industry

4. The 'outside in' perspective is another name of

The selling concept

The product concept

The marketing concept (Answer)

The production concept

5. Considering individual customers, the purchasing portion of each


buyer is called

Share of customer (Answer)

Customer equity

Customer lifetime value

None of above
6. Value proposition consists of

Differentiation

Segmentation & targeting

Positioning

Both a and c (Answer)

7. The possible objectives of advertising includes

persuasive advertising

reminder advertising

reminder advertising

all of above (Answer)

8. To create profits, the company must

Create loyal customers

Increase market share of market

capture lifetime vale of customer

All of above (Answer)

9. The most crucial and first step in marketing process is

Designing a marketing strategy

Create customer delight

Understanding customer needs and wants (Answer)


Capturing value from customers

10. Major environmental forces are

Suppliers & consumers (Answer)

Company & competitors

Marketing intermediaries

None of the above

11. Marketing myopia is to pay attention to

Product offered by company (Answer)

Benefits produced by products

Experiences associated with products

None of above

12. Classification of customers is of

2 types

3 types

4 types (Answer)

5 types

13. Market offering can be combination of

product & services

Information
Places

All of above

14. The customer driven marketing strategy is another name of

The selling concept

The marketing concept (Answer)

The product concept

The societal marketing concept

15. Market consists of

Potential buyers

Actual buyers

Both a and b(Answer)

None of the above

16. The kind of strategy which is used by the company to achieve


advertising objectives is classified as

advertising strategy (Answer)

advertising objective

advertising messages

advertising budget
17. According to management guru Peter Drucker, marketing aims to
sell

Necessary

Unnecessary

Not already available (Answer)

None of above

18. Market offerings are offered to

Create a need or want

Satisfy a need or want (Answer)

Both a and b

None of above

19. Marketing can be defined as

Creating value for customers

Building strong relationships

Capturing value from customers

All of above (Answer)

20. Promotion aims are

to present information to consumers as well as others

to increase demand

to differentiate a product
all of the options (Answer)

21. A good can be categorized as tangible or

raw materials

commodities

intangible (Answer)

services

22. The step which is not related to product life cycle is

growth stage

cash cow stage (Answer)

maturity stage

introduction stage

23. Good at a place which is easy for customers to access is

product

price

promotion

distribution (Answer)

24. Intermediaries that buy and resell goods are

merchants (Answer)

sellers
a&b

none of these

25. Putting the right good in the right place, at the accurate price, at
the right

market

customer

price

time (Answer)

26. Allocation of goods takes place by ways of

place

promotion

channels (Answer)

All of the options

27. The short run or long run method by which a company settle on the
price and output rank that returns the maximum profit is

product enhancement

short run pricing

profit

profit maximization (Answer)


28. Four P's was initially expressed by

E J McCarthy (Answer)

Kotler

Rob Gray

Mishkin

29. Something widely offered in the open market is

Commodity (Answer)

product

raw materials

a&b

30. In retailing, goods known as

merchandise (Answer)

manufacturing

a&b

raw materials

31. 4 P's are sometime called as the

product life cycle

parallel pricing

price discrimination
marketing mix (Answer)

32. Informal statement about the good by average individuals,


contented consumers or people particularly engaged to build word of
mouth force is

product

advertising

word-of-mouth promotion (Answer)

all of the options

33. The quantity of money that a firm receives from its usual buy and
sell activities is

revenue (Answer)

cost

price

a&b

34. one of the five features of the promotional mix is

promotion

sales promotion (Answer)

place

product

35. A thing that persuade what a customer demands is


product (Answer)

price

place

promotion

36. _____ is the development of original products, product


improvements, product modifications, and new brands through the
firms own R&D efforts.

Idea generation

Concept testing

Test marketing

New product development (Answer)

37. What is the first stage of the consumer decision process?

Information search

Problem recognition (Answer)

Alternative evaluation

Purchase

Post purchase behaviour

38. Blake doesn't much care about cars but is engaging in a


substantial amount of information search about cars since he is about
to buy a new car. In terms of involvement, Blake is _____.

High in product involvement; low in purchase involvement


High in value-expressive involvement; low in product involvement

High in product involvement; high in purchase involvement

Low in product involvement; low in purchase involvement

Low in product involvement; high in purchase involvement


(Answer)

40. Very high levels of purchase involvement tend to produce _____.

Extended decision making (Answer)

Nominal decision making

Affective decision making

Limited decision making

None of the above

41. Emma noticed that she was almost out of gas, so she pulled into
the nearest gas station and filled up her tank. Emma's decision on
which gas to purchase is characterized by _____.

A high level of cognitive processing

A low level of purchase involvement (Answer)

Limited decision making

Extended decision making

A high level of affective processing

42. Which type of consumer decision making only includes the stages
of problem recognition, limited internal information search, purchase,
and limited post purchase behaviour?
Nominal decision making (Answer)

Normal decision making

Limited decision making

Extended decision making

Simple decision making

43. Which type of consumer decision making does NOT include


alternative evaluation?

Routine decision making

Nominal decision making (Answer)

Extended decision making

Simple decision making

Limited decision making

44. Which type of consumer decision making includes only a limited


internal information search and no external search for information?

Routine decision making

Nominal decision making (Answer)

Extended decision making

Simple decision making

Limited decision making

45. Which type of consumer decision making includes the evaluation of


only a few attributes, simple decision rules, and few alternatives?
Routine decision making

Nominal decision making

Extended decision making

Simple decision making

Limited decision making (Answer)

46. Which type of consumer decision making involves the evaluation of


many attributes and alternatives and employs complex decision rules?

Routine decision making

Nominal decision making

Extended decision making (Answer)

Simple decision making

Limited decision making

47. Which type of decision making process in effect involves no


decision per se?

Simple decision making

Nominal decision making (Answer)

Extended decision making

Automatic decision making

Default decision making

48. Nominal decision making is sometimes referred to as _____.


Habitual decision making (Answer)

Routine decision making

Simple decision making

Automatic decision making

Default decision making

49. A completely nominal decision does not even include consideration


of _____.

Information

Problem recognition

The do not purchase alternative (Answer)

Purchase evaluation

All of the above

50. Nominal decisions can be broken into which two distinct


categories?

Brand loyal decisions and repeat purchase decisions (Answer)

Primary decisions and secondary decisions

High involvement decisions and low involvement decisions

Expensive decisions and inexpensive decisions

First purchase decisions and repeat purchase decisions


51. Which type of nominal decision is characterized by a fairly high
degree of product involvement but a low degree of purchase
involvement?

Routine decision

Inexpensive decision

Primary decision

Brand loyal decision (Answer)

Low visibility decision

52. Brad was out of soft drinks in his dorm room, so he went to the
store and purchased Coke. This is the brand he always buys, and he
would not even consider purchasing another brand. Which type of
nominal decision does this illustrate?

Routine decision

Repeat purchase decision

Primary decision

Brand loyal decision (Answer)

Low visibility decision

53. Which type of nominal decision is characterized by a consumer


believing that all brands within a given product category are about the
same and not attaching much importance to the product category or
purchase?

Routine decision

Repeat purchase decision (Answer)

Secondary decision
Inconsequential decision

Indifferent decision

54. Rita is doing her family's grocery shopping and purchases ice
cream. She's purchased Blue Bell ice cream before and purchases it
again. She's not committed to this brand; it's just that she and her
family like it. Which type of nominal decision is this?

Inconsequential decision

Indifferent decision

Automatic decision

Repeat purchase decision (Answer)

Secondary decision

55. Which type of decision making involves internal and external


search, few alternatives, simple decision rules on a few attributes, and
little post purchase evaluation?

Nominal decision making

Routine decision making

Limited decision making (Answer)

Partial decision making

Extended decision making

56. Which type of decision making covers the middle ground between
nominal and extended decision making?

Limited decision making (Answer)


Partial decision making

Mid-range decision making

Modified decision making

Internal decision making

MCQs Part 2

1. Good marketing is no accident, but a result of careful planning and


________.

Execution (Answer)

Selling

Strategies

Research

2. Marketing management is ________.

Managing the marketing process

Monitoring the profitability of the companys products and


services

The art and science of choosing target markets and getting,


keeping, and growing customers (Answer)

Through creating, delivering, and communicating superior


customer value

Developing marketing strategies to move the company forward


3. Chimney Sweeps employs people to clean fireplaces and chimneys
in homes and apartments. The firm is primarily the marketer of which
one of the following?

An image

A service (Answer)

A good

An idea

4. Marketers often use the term ________ to cover various groupings of


customers.

People

Buying power

Demographic segment

Market (Answer)

5. The ________ concept holds that consumers and businesses, if left


alone, will ordinarily not Buy enough of the organizations products.

Production

Selling (Answer)

Marketing

Holistic marketing

6. Which of the following would be the best illustration of a subculture?

A religion. (Answer)
A group of close friends.

Your university.

Your occupation.

7. The buying process starts when the buyer recognizes a _________.

Product

An advertisement for the product

A salesperson from a previous visit

Problem or need (Answer)

8. If actual performance exceeds the expected performance of the


product, Then customer is
___________________

Satisfied

Dissatisfied

Delighted (Answer)

Neutral

9. Bread and milk are which kind of products?

Specialty Products

Convenience products (Answer)

Shopping products

Unsought products
10. Parents buy toys for their children act as _______________ in the
buying process.

Decider

Buyer

Maintainer

All of the above (Answer)

11. If a firm is practicing ____________________, the firm is training and


effectively motivating its customer-contact employees and all of the
supporting service people to work as a team to provide customer
satisfaction.

Double-up marketing

Interactive marketing

Service marketing

Internal marketing (Answer)

12. A cluster of complementary goods and services across diverse set


of industries is called as
_____________

Market place

Meta market (Answer)

Market space

Resource Market
13. Adding new features to a product is advocated by which of the
approaches?

Product Approach (Answer)

Production Approach

Marketing Approach

Selling Approach

14. One of the key tasks of marketers is ____________ and to create


consumer perceptions that the product is worth purchasing.

To make products easily visible and available

To promote sales of products

To differentiate their products from those of competitors (Answer)

To do marketing surveys

15. What is the last stage of the consumer decision process?

Problem recognition

Post purchase behavior (Answer)

Alternative evaluation

Purchase

16. ________ markets are made up of members of the distribution chain.

Consumer

Business-to-business (industrial)
Channel (Answer)

Institutional

17. Which of the following is considered a key player in the marketing


industry?

Marketer

Suppliers or vendors

Distributors or retailers

All of the above (Answer)

18. Marketing Mix is the most visible part of the marketing strategy of
an organization.

True (Answer)

False

19. Businesses spend most of their advertising rupees on business-to-


business markets.

True

False (Answer)

20. A transaction in which the organization is making an initial


purchase of an item to be used to perform a new job refers to which of
the following purchases?

Straight re buy purchase

Delayed purchase
New-task purchase (Answer)

Modified re buy purchase

21.________ markets include a wide variety of profit and nonprofit


organizations, such as hospitals, government agencies, and schools,
which provide goods and services for the benefit of society.

Consumer

Business-to-business (Industrial)

Reseller

Institutional (Answer)

22. Which of the following is NOT considered a type of reseller?

Wholesaler

Retailer

Manufacturer (Answer)

Distributor

23. The promotion P of marketing is also known as ________.

Product Differentiation

Distribution

Cost

Marketing Communication (Answer)


24. When a company distributes its products through a channel
structure that includes one or more resellers, this is known as ________.

Indirect marketing (Answer)

Direct marketing

Multi-level marketing

Integrated marketing

25. In marketing theory, every contribution from the supply chain adds
________ to the product.

Value (Answer)

Costs

Convenience

Ingredients

26. Institutional markets consist of people who buy products and


services for personal use.

True

False (Answer)

27. Listing alternatives that will solve the problem at hand and
determining the characteristics of each occurs during which stage of
the final consumers decision process?

Information search

Purchase

Evaluation of alternatives (Answer)


Post purchase

28. The act of trading a desired product or service to receive


something of value in return is known as which key concept in
marketing?

Product

Exchange (Answer)

Production

Customer

29. The most basic level of a product is called the:

Core product. (Answer)

Central product.

Fundamental product.

Augmented product.

30. Anything that can be offered to a market for attention, acquisition,


use, or consumption that might satisfy a want or need is called a(n):

Idea.

Demand.

Product. (Answer)

Service.
31. In ________ consumers may share a strong need that cannot be
satisfied by an existing product.

Negative demand

Latent demand (Answer)

Declining demand

Irregular demand

32. Marketing is both an art and a science there is constant tension


between the formulated side of marketing and the ________ side.

Creative (Answer)

Selling

Management

behaviour

33. Mr. Lopez buys goods and services for use in the production of
products that are sold and supplied to others. Mr. Lopez is involved in
________.

Consumer buying behaviour

Post-purchase dissonance

Retail buyer behaviour

Business buyer behavior (Answer)

34. The four unique elements to services include:

Independence, intangibility, inventory, and inception


Independence, increase, inventory, and intangibility

Intangibility, inconsistency, inseparability, and inventory (Answer)

Intangibility, independence, inseparability, and inventory

35. Convenience products usually have intensive distribution because


sales of these products tend to have a direct relationship to
availability.

True (Answer)

False

36. The ________ holds that the organizations task is to determine the
needs, wants, and interests of target markets and to deliver the
desired satisfactions more effectively and efficiently than competitors
in a way that preserves or enhances the consumers and the societys
wellbeing.

Customer-centered business

Focused business model

Societal marketing concept (Answer)

Ethically responsible marketing

37. A change in an individual's behaviour prompted by information and


experience refers to which one of the following concept?

Learning (Answer)

Role selection

Perception

Motivation
38. Holistic marketers achieve profitable growth by expanding
customer share, ________, and capturing customer lifetime value.

Undermining competitive competencies

Building customer loyalty (Answer)

Milking the market for product desires

Renewing a customer base

39. ________ pricing is the approach of setting a low initial price in order
to attract a large number of buyers quickly and win a large market
share.

Market-skimming

Value-based

Market-penetration (Answer)

Leader

40. While buying milk which kind of behaviour is displayed by a person?

Extensive problem solving behaviour

Reutilized buying behavior (Answer)

Variety seeking behaviour

None of the above

41.________ markets include a wide variety of profit and nonprofit


organizations, such as hospitals, government agencies, and schools,
which provide goods and services for the benefit of
Society.

Consumer

Business-to-business (Industrial)

Reseller

Institutional (Answer)

42. Which of the following is NOT considered a type of reseller?

Wholesaler

Retailer

Manufacturer (Answer)

Distributor

43. The promotion P of marketing is also known as ________.

Product Differentiation

Distribution

Cost

Marketing Communication(Answer)

44. When a company distributes its products through a channel


structure that includes one or More resellers, this is known as ________.

Indirect marketing (Answer)

Direct marketing

Multi-level marketing

Integrated marketing
45. In marketing theory, every contribution from the supply chain adds
________ to the product.

Value (Answer)

Costs

Convenience

Ingredients

46. Institutional markets consist of people who buy products and


services for personal use.

True

False (Answer)

47. Listing alternatives that will solve the problem at hand and
determining the characteristics of each occurs during which stage of
the final consumers decision process?

Information search

Purchase

Evaluation of alternatives (Answer)

Post purchase

48. The act of trading a desired product or service to receive


something of value in return is known as which key concept in
marketing?

Product
Exchange (Answer)

Production

Customer

49. The most basic level of a product is called the:

Core product. (Answer)

Central product.

Fundamental product.

Augmented product.

50. Anything that can be offered to a market for attention, acquisition,


use, or consumption that might satisfy a want or need is called a(n):

Idea.

Demand.

Product. (Answer)

Service.

51. In ________ consumers may share a strong need that cannot be


satisfied by an existing product.

Negative demand

Latent demand (Answer)

Declining demand

Irregular demand
52. Marketing is both an art and a science there is constant tension
between the formulated side of marketing and the ________ side.

Creative (Answer)

Selling

Management

behaviour

53. Mr. Lopez buys goods and services for use in the production of
products that are sold and supplied to others. Mr. Lopez is involved in
________.

Consumer buying behaviour

Post-purchase dissonance

Retail buyer behaviour

Business buyer behavior (Answer)

54. The four unique elements to services include:

Independence, intangibility, inventory, and inception

Independence, increase, inventory, and intangibility

Intangibility, inconsistency, inseparability, and inventory (Answer)

Intangibility, independence, inseparability, and inventory

55. Convenience products usually have intensive distribution because


sales of these products tend to have a direct relationship to
availability.

True (Answer)
False

56. The ________ holds that the organizations task is to determine the
needs, wants, and interests of target markets and to deliver the
desired satisfactions more effectively and efficiently than competitors
in a way that preserves or enhances the consumers and the societys
wellbeing.

Customer-centered business

Focused business model

Societal marketing concept (Answer)

Ethically responsible marketing

57. A change in an individual's behaviour prompted by information and


experience refers to which one of the following concept?

Learning (Answer)

Role selection

Perception

Motivation

58. Holistic marketers achieve profitable growth by expanding


customer share, ________, and capturing customer lifetime value.

Undermining competitive competencies

Building customer loyalty (Answer)

Milking the market for product desires

Renewing a customer base


59. ________ pricing is the approach of setting a low initial price in order
to attract a large number of buyers quickly and win a large market
share.

Market-skimming

Value-based

Market-penetration (Answer)

Leader

60. While buying milk which kind of behaviour is displayed by a person?

Extensive problem solving behaviour

Reutilized buying behavior (Answer)

Variety seeking behaviour

None of the above

61. Whether to sell via intermediaries or directly to consumers, how


many outlets to sell through, and whether to control or cooperate with
other channel members are examples of decisions marketers must
make about

Promotion

Price

Distribution (Answer)

Product

62. The extended Ps of service marketing mix is:


People, Product, Place

Price Physical Evidence, Promotion

Physical Environment, Process, People (Answer)

Product, Process, Physical Environment

63. A social and managerial process by which individuals and


organizations obtain what they need and want through value creation
refers to which one of the following concepts?

Selling

Advertising

Barter

Marketing (Answer)

64. What is the basic property of a service which makes it different


from a product?

Shape

Size

Very expensive

Intangibility (Answer)

65. Which one of the following phrases reflects the marketing concept?

The supplier is a king in the market

Marketing should be viewed as hunting not gardening

This is what I make, wont you please buy it?


This is what I want, wont you please make it? (Answer)

66. The task of any business is to deliver ________ at a profit.

Customer needs

Customer value (Answer)

Products and services

Improved quality

67. The solution to price competition is to develop a differentiated:

Product, price, and promotion.

Offer, delivery, and image. (Answer)

Package and label.

International Web site.

68.Red Cross blood donations are considered to be specialty products


and, therefore, have a specialty offer to the consumer.

True

False (Answer)

69. You purchase cleaning supplies for your custodial help regularly. It
is showing which Buying situation?

Modified re buy

Straight re buy (Answer)


Modified straight re buy

Consumer buy

70. Internal marketing is marketing by a service firm to train and


effectively motivate its customer-contact employees and all the
supporting service people to work as a team to provide customer
satisfaction.

True (Answer)

False

71. Customers evaluation of the difference between all the benefits


and all the costs of a marketing offer relative to those of competing
offers refers to which of the following options?

Customer perceived value

Marketing myopia

Customer relationship management

Customer satisfaction (Answer)

72. Buying goods and services for further processing or for use in the
production process refers to which of the following markets?

Consumer markets

Government markets

Business markets (Answer)

International markets
73. The packaging concept states what the package should be or do
for the product.

True (Answer)

False

74. Marketing managers should adapt the marketing mix to


___________________ and constantly monitor value changes and
differences in both domestic and global markets.

Sales strategies

Marketing concepts

Cultural values (Answer)

Brand images

75. Resellers may actually take ownership of the product and


participate in the marketing, including the advertising.

True (Answer)

False

76. The materials and ingredients used in producing the product are
obtained from other companies who are referred to as distributors.

True

False (Answer)

77. The ________ refers to the various companies that are involved in
moving a product from its manufacturer into the hands of its buyer.

Distribution chain (Answer)


Network chain

Supply chain

Promotion network

78. ________ is the study of how individuals, groups, and organizations


select, buy, use, and dispose of goods, services, ideas, or experiences
to satisfy their needs and wants.

Target marketing

Psychographic segmentation

Product Differentiation

Consumer behavior (Answer)

79. A persons ________ consist(s) of all the groups that have a direct
(face-to-face) or indirect influence on his/her attitudes or behaviour.

Culture

Subculture

Psychographics

Reference groups (Answer)

Demographics

80. Product choice is greatly affected by economic circumstances. All


of the following would be among those circumstances EXCEPT ________.

Spendable income

Savings and assets


Debts

Occupation (Answer)

Borrowing power

81. ________ is a set of distinguishing human psychological traits that


lead to relatively consistent and enduring responses to environmental
stimuli.

Image

Personality (Answer)

Beliefs

Heredity

Culture

82. ________ portrays the whole person interacting with his or her
environment.

Attitude

Reference group

Lifestyle (Answer)

Culture

Subculture

83. A ________ when it is aroused to a sufficient level of intensity.

Need becomes a motive (Answer)

Motive becomes a need


Desire becomes a reality

Unfulfilled demand becomes a crisis

Personal demand exceeds the ability to rationally reject

84. The five-stage model of the consumer buying process includes all
of the following stages EXCEPT ________.

Problem recognition

Information search

Social interaction (Answer)

Purchase decision

85. If performance meets consumer expectations, the consumer is


________.

Delighted

Satisfied (Answer)

Disappointed

Surprised.

86. The primary purpose of marketing activities is to facilitate and


encourage exchange transactions with potential customers.

True (Answer)

False
87. Merchant wholesalers sell goods and services directly to final
consumers for their personal, no business use.

True

False (Answer)

88. A service can be defined as any activity or benefit that one party
can offer another that is essentially intangible and that does not result
in the ownership of anything.

True (Answer)

False

89. The intangible nature of many services can create unique


challenges for marketers.

True (Answer)

False

90. Auction sites, such as eBay, QXL are examples of Consumer-to-


Consumer (C2C) channels.

True (Answer)

False

91. Product planners need to think about products and services on


three levels. Each level adds more customer value. Which one of the
following is the most basic level that addresses the question, What is
the buyer really buying?

Actual product
Augmented product

Core benefit (Answer)

Co-branding

92. The mental act, condition or habit of placing trust or confidence in


another shows which of the following options?

Motive

Belief

Behaviour

Attitude (Answer)

93. How do consumers respond to various marketing efforts the


company might use? What is a starting point of a buyers behaviour?

Belief

Subculture

Post purchase feeling

Stimulus-response Model (Answer)

94. Which one of the following factor relates to family that influences
consumer behaviour?

Cultural

Social (Answer)

Personal

Business
95. Unique psychological characteristics that lead to relatively
consistent and lasting responses to ones own environment refers to
which one of the following?

Belief (Answer)

Culture

Personality

Self-awareness

96. Which one of the following statements by a company chairman


BEST reflects the marketing concept?

We have organized our business to satisfy the customer needs


(Answer)

We believe that marketing department must organize to sell what


we produce

We try to produce only high quality, technically efficient products

We try to encourage company growth in the market

97. Which one of the following is a key to build lasting relationships


with consumers?

Price of the product

Need recognition

Customer satisfaction (Answer)

Quality of product
98. The factors such as the buyers age, life-cycle stage, occupation,
economic situation, lifestyle, personality and self-concept that
influences buyers decisions refers to which one of the following
characteristic?

Personal characteristics

Psychological characteristics

Behavioural characteristics

Demographical characteristics (Answer)

99. Companies selling mass consumer goods and services such as soft
drinks, cosmetics, air travel, and athletic shoes and equipment spend
a great deal of time trying to establish a superior brand image in
markets called ________.

Business markets

Global markets

Consumer markets (Answer)

Non-profit and governmental markets

Service markets

100. Four competing philosophies strongly influence the role of


marketing and marketing activities within an organization. Which if the
following is not a component of market orientation?

Customer orientation.

Profitability orientation. (Answer)

Marketing orientation.

Competitor orientation.
101. The ________ is practiced most aggressively with unsought goods,
goods that buyers normally do not think of buying, such as insurance,
encyclopaedias, and funeral plots.

Marketing concept

Selling concept (Answer)

Production concept

Product concept

Holistic marketing concept

102. The ________ concept holds that consumers will favor those
products that offer the most quality, performance, or innovative
features.

Product (Answer)

Marketing

Production

Selling

Holistic marketing

103. ________ marketing has the aim of building mutually satisfying long-
term relations with key parties such as customers, suppliers,
distributors, and other marketing partners in order to earn and retain
their business.

Holistic

Demand-based

Direct
Relationship (Answer)

Synthetic

104. One traditional depiction of marketing activities is in terms of the


marketing mix or four Ps. The four Ps are characterized as being
________.

Product, positioning, place, and price

Product, production, price, and place

Promotion, place, positioning, and price

Place, promotion, production, and positioning

Product, price, promotion, and place (Answer)

105. David Packard of Hewlett-Packard once said, Marketing is far too


important to leave to ________.

The advertising boys

Uninformed managers

Novices

The CEO

The marketing department (Answer)

106. The traditional view of marketing is that the firm makes


something and then ________ it.

Markets

Sells (Answer)
Distributes

Prices

Services

107. __________ is the single factor that best indicates social class.

Time

Money

Occupation (Answer)

Fashion

108. Marketing strategies are often designed to influence


_______________ and lead to profitable exchanges.

Consumer decision making (Answer)

Sales strategies

Advertising strategies

Export strategies

109. __________ refers to the information a consumer has stored in their


memory about a

Product or service.

Cognitive dissonance

Product knowledge (Answer)

Product research
Marketing research

110. When consumers are seeking low-involvement products, they are


unlikely to engage in extensive search, so _________________ is
important.

Order processing

Order booking

Ready availability (Answer)

Information about warranty

111. ___________________ constitutes moderate consumer behavior, but


still involves time and effort searching for and comparing alternatives.

Limited decision making (Answer)

Need recognition

Routine decision making

Post purchase evaluation

112. Experimental sources of information for consumers refer to


____________.

Advertising, marketing, selling, and profit making

Handling, examining, and trying the product while shopping


(Answer)

Buying after a demonstration

Buying the product directly from a manufacturer


113. Which of the following is NOT one of the four philosophies of
marketing?

Production orientation

Societal marketing orientation

Sales orientation

Promotion orientation (Answer)

114. Of the four competing philosophies, the Furniture Industry is an


example of what kind of orientation:

Sales Orientation

Societal Marketing Orientation

Marketing Orientation

Production Orientation (Answer)

115. Marketing is defined by the American Marketing Association as


the activity, set of institutions, and processes for ______, ________,
________, and __________ offerings that have value for customers, clients,
partners, and society at large.

Making, Arranging, Maintaining and Selling

Creating, Communicating, Delivering, and Exchanging (Answer)

Creating, Advertising, Selling, and Transferring

Performing, Displaying, Offering, and Exchanging

116. The focus of marketing today is _______.

Value and Satisfaction


Quality and Long Term Relationships

All of the Above

None of the Above

117. Which of the following firms emphasizes on products benefits to


the customers rather product attributes?

Product oriented

Market oriented (Answer)

Sales oriented

Production oriented

118. Products that are usually purchased due to adversity and high
promotional back up rather than desire are called:

Sought goods

Unique goods

Unsought goods (Answer)

Preferred goods

119. Which product is MOST likely to be purchased through routine


decision making?

Television set

Soft drink (Answer)

Shirt

Car
120. Luxury products, such as Rolex watches, are also known as:

Shopping product (Answer)

Convenience product

Emergency product

Specialty product

121. Which of the following is NOT included as a basic idea in the


definition of marketing concepts?

Total company effort (Answer)

Profit

Productivity

Customer satisfaction

122. Which of the following is the most recent stage of marketing


evolution?

Marketing department era

Production era

Sales era

Marketing company era (Answer)

123. Which of the following is NOT included as a basic idea in the


definition of marketing concepts?

Total company effort


Profit

Productivity (Answer)

Customer satisfaction

124._______________________ is defined as the difference between the


benefits a customer sees from a market offering and the costs of
obtaining those benefits.

Customer value (Answer)

Satisfaction scale

Profit margin

Competitive benefit

125. Which of the following is NOT included in the marketing


management process used by the marketing manager to achieve its
objectives?

Planning marketing activities

Raising funds to finance the marketing projects (Answer)

Controlling marketing plans

Directing implementation of the marketing plans

126. A channel of distribution is any series of firms (or individuals) who


participate in the flow of products to final user or customer.

True (Answer)

False.
127. ____________ is defined as communication with large numbers of
customers at the same time.

Personal selling

Sales promotion

Mass selling (Answer)

All of the above

128. The marketing concept applies to production firms, but not to


service industries.

True

False (Answer)

129. In a ___________________orientation, the role of marketing research is


to determine customer needs and how well the company is satisfying
them.

Marketing (Answer)

Production

Both of the above

None of the above

130. The marketing concept means that an organization aims the


majority of its efforts at Satisfying customers, at a profit.

True

False (Answer)
131. When a manager focuses on making whatever products are easy
to produce, and then trying to sell them, that manager has a
___________________ orientation.

Marketing

Production (Answer)

Sales

Profit

132. Which of the following is NOT consistent with a manager having a


marketing orientation?

Inventory levels are set with customer requirements and costs in


mind

Customer relationship focuses on customer satisfaction before


and after sale, leading to a

Profitable long-run relationship

Focus of advertising is on product features and how products are


made (Answer)

Packaging is designed for customer convenience and as a selling


tool

133. Often, the best way to improve customer value, and beat the
competition, is to be first to satisfy a need that others have not even
considered.

True

False (Answer)
134. It is more costly to retain current customers by satisfying their
needs, than to get new customers by taking them away from a
competitor.

True

False (Answer)

135. In addition to businesses, the marketing concept is also


applicable to _____________.

Government agencies

Religious groups

Fine arts organizations

All of the above (Answer)

136. The controllable variables a company puts together to satisfy a


target group is called the ____________________.

Marketing strategy

Marketing mix (Answer)

Strategic planning

Marketing concept

137. In order for exchange to occur:

A complex societal system must be involved.

Organized marketing activities must also occur.

A profit-oriented organization must be involved.


Each party must have something of value to the other party.
(Answer)

138. Four competing philosophies strongly influence the role of


marketing and marketing activities within an organization. Which if the
following is not a component of market orientation?

Customer orientation.

Profitability orientation. (Answer)

Marketing orientation.

Competitor orientation.

139. A market orientation recognizes that:

Price is the most important variable for customers.

Market intelligence relating to current and future customer needs


is important. (Answer)

Selling and marketing are essentially the same thing.

Sales depend predominantly on an aggressive sales force.

140. When customer expectations regarding product quality, service


quality, and value-based price are met or exceeded, _____ is created.

Customer satisfaction (Answer)

Planning excellence

A quality rift

A value line
141. A critical marketing perspective is the process of determining:

The value of a product, person, or idea.

How places compete with each other.

The worth and impact of marketing activities. (Answer)

Which type of promotional strategy works best.

142. The way in which the product is delivered to meet the customers'
needs refers to:

New product concepts and improvements.

Selling.

Advertising and promotion activities.

Place or distribution activities. (Answer)

143. The term 'marketing mix' describes:

A composite analysis of all environmental factors inside and


outside the firm.

A series of business decisions that aid in selling a product.

The relationship between a firm's marketing strengths and its


business weaknesses.

A blending of strategic elements to satisfy specific target


markets. (Answer)

144. Newsletters, catalogues, and invitations to organisation-


sponsored events are most closely

Associated with the marketing mix activity of:


Pricing

Distribution

Product development

Promotion (Answer)

145. Which of the following is not an element of the marketing mix?

Distribution.

Product.

Target market. (Answer)

Pricing.

146. In relationship marketing firms focus on __________ relationships


with __________.

Short-term; customers and suppliers

Long-term; customers and suppliers (Answer)

Short-term; customers

Long-term; customers

147. A further 3Ps are incorporated into the marketing mix:

Physical evidence, process and price.

Process people and promotion.

Physical evidence, people and production.

Physical evidence, process and people. (Answer)


148. A marketing philosophy summarized by the phrase 'a stronger
focus on social and ethical concerns in marketing' is characteristic of
the _________ period.

Production

Sales

Marketing

Societal marketing (Answer)

149. Which of the following statements is correct?

Marketing is the term used to refer only to the sales function


within a firm.

Marketing managers don't usually get involved in production or


distribution decisions.

Marketing is an activity that considers only the needs of the


organization; not the needs of society as a whole.

Marketing is the activity, set of institutions, and processes for


creating, communicating delivering, and exchanging offerings
that have value for customers, clients, partners, and society at
large. (Answer)

150. The term marketing refers to:

New product concepts and improvements.

Advertising and promotion activities.

A philosophy that stresses customer value and satisfaction.


(Answer)

Planning sales campaigns.


151. Which of the following involves designing and manufacturing the
container or wrapper for a product?

Labelling

Packaging (Answer)

Branding

Product line

152. The basic role of promotion is _____.

Information

Manipulation

Communication (Answer)

Interpretation

153. If the aim of the promotion to introduce a new consumer product


is to achieve high awareness levels, the firm will most likely make
heavy use of _______ in the promotional mix.

Advertising (Answer)

Sales promotion

Personal selling

Publicity

154. A consumer contest is an example of _____.

Personal selling
Sales promotion (Answer)

Advertising

Indirect selling

155. Advertising appropriations are largest for which type of product?

Industrial products

Convenience goods (Answer)

High-priced products

Specialty goods

156. A television advertisement showing the safety features of the


Volvo 240 DL would be best classified as which of the following?

Product advertising (Answer)

Pioneer advertising

Defensive advertising

Societal marketing

157. Need becomes ________ when they are directed towards a specific
object.

Actual need

Want (Answer)

Satisfaction

Demand
158. Which of the following BEST describes the consumers preference
for products that are widely available to them?

Production concept (Answer)

Marketing concept

Selling concept

Product concept

159. Buying and selling of mass consumer goods and services comes
under which of the following markets?

Business markets

Global markets

Consumer markets (Answer)

Government markets

160. Which one of the following BEST describes the human need?

Food (Answer)

French-fries

Burger

Pizza

161. Which of the following firms emphasis on products benefits to the


customers rather than on

Product attributes.
Product oriented

Market oriented (Answer)

Sales oriented

Production oriented

162. All of the following are the examples of unsought goods EXCEPT:

Course books (Answer)

Encyclopaedia

Funeral plots

Insurance policy

Unsought Goods

163. While considering the place for a product which of the following is
important for customer.

Communication

Convenience (Answer)

Cost

Solution

164. Market oriented firms focus on:

Retailers

Distributors

Customers (Answer)
Wholesalers

165. Price is the only element in the marketing mix that produces:

Fixed cost

Expense

Variable cost

Revenue (Answer)

166. Identify the products that the customer usually buys frequently
and with a minimum of comparison and buying effort.

Specialty

Convenience (Answer)

Unsought

Augmented

167. Which of the following is NOT included in product decisions?

Styling

Brand name

Warehousing (Answer)

Packaging

168. Which of the following takes place at retailers end?

Promotion
Placing

Pricing

Exchange (Answer)

169. Aggressive selling is a characteristic of which of the following


concept of marketing?

Select correct option:

Production concept

Marketing concept

Selling concept (Answer)

Product concept

170. Which of the following is a name, term, sign, symbol, design, or a


combination of these, that identifies that maker or seller of a product
or service?

Label

Co-brand

Brand (Answer)

Product

171. The consumers estimate of the products overall capacity to


satisfy his or her needs is called:

Product Cost

Product Value (Answer)


Product need

Product Satisfaction

172. According to the text, a product is

Everything the customer receives in an exchange. (Answer)

The physical object the customer receives in an exchange.

The service that is rendered to a customer.

The idea that the customer receives in an exchange.

173. An example of a convenience consumer product is stereo


equipment.

Petrol. (Answer)

A motorcycle.

A bicycle.

Athletic shoes.

174. Which one of the following is NOT an industrial product?

Oil to be refined into fuel for homes

Transistors used as components for portable radios

Paper, pens, and glue used in bank branch offices

Computer software to help people complete personal tax forms


(Answer)
175. Sai Nath called several airlines to compare rates and chose a
flight on British Midland as it had a better reputation for service and
competitive prices. The airline ticket is an example of which type of
product?

Convenience

Shopping (Answer)

Specialty

Unsought

176. Products that are relatively inexpensive and are purchased


frequently with minimal effort can be classified as ___________ products.

Shopping

Convenience (Answer)

Industrial

Specialty

Unsought

177. Large tools and machines used in a production process for a


considerable length of time are classified as

Major equipment. (Answer)

Accessory equipment.

Component parts.

Raw materials.

Consumable supplies.
178. Items that are purchased routinely, do not become part of the
final physical product, and are treated like expense items rather than
capital goods are called

Raw materials.

Major equipment.

Accessory equipment. (Answer)

Component parts.

Process materials.

179. Products that are used directly in the production of a final product
but are not easily identifiable are categorised as

Accessory products.

Component parts.

Consumable supplies.

Assembly components.

Process materials. (Answer)

180. Industrial products are

Purchased for personal consumption.

Frequently purchased for both their functional aspects and their


psychological rewards.

Traditionally classified according to their characteristics and


intended uses. (Answer)
Not purchased by non-business organisations.

181. A company designs the product with little or no input from


customers, the company is practicing which of the following concept?

Product concept (Answer)

Marketing concept

Selling concept

Production concept

182. Which of the following 4Ps of marketing mix involves decisions


regarding channels coverage, assortments, locations, inventories or
transports?

Product

Price

Place (Answer)

Promotion

183. Which of the following is NOT a part of marketing communication


mix?

Telemarketing (Answer)

Public relations

Sales promotion

Advertising
184. A dissonance-reducing buying behaviour is designed to probe
consumers hidden, subconscious motivations.

True

False (Answer)

185. Consumer buying behaviour refers to the buying behaviour of


businesses.

True

False (Answer)

186. A fundamental part of the distribution function is to get the


product:

To the right place at the right time (Answer)

Launched into new markets

To intermediaries

To market to avoid channel conflict

187. The _____ identifies the product or brand.

Container

Label (Answer)

Advertisement

Warranty

188. A(n) _____ product exceeds customer expectations.


Strategic

Superior

Augmented (Answer)

Anticipated

189. Which of the following are products and services bought by final
consumers for personal consumption? These include convenience
products, shopping products, specialty products, and unsought
products.

Material and parts

Consumer products

Industrial products

Capital items

190. The skimming, penetration, bargaining and bundling are decided


in the ______________ of the Marketing Mix strategy.

Price Decisions (Answer)

Place Decisions

Product Decisions

Promotion Decisions

191. Low Consumer involvement in purchase and little significant


brand difference comes in which types of buying behaviours.

Complex buying behaviour

Dissonance-reducing buying behaviour


Habitual buying behaviours

Variety-seeking buying behaviours (Answer)

192. Distribution of product to get it in the marks refers to which of the


following activities?

Selling Activities

Advertising activities

Promotion Activities

Place or distribution activities (Answer)

193. How many stages are involved in the consumer buying / adoption
process?

Six

Seven

Three

Five (Answer)

194. Which one of the following factor relates to family that influences
consumer behavior?

Cultural

Social

Personal (Answer)

Business
195. Buy it now refers to which one of the following options?

Personal selling (Answer)

Advertising

Sales promotion

Publicity

196. At least how many parties should be included in Exchange?

Two (Answer)

Three

Four

Five

197. The buyer decision process consists of five stages. Which of the
following is NOT one of these stages?

Evaluation of Alternatives

Information search

Variety-seeking buying behavior (Answer)

Post purchase behaviour

198. You are planning to install a steel manufacturing plant in your city.
For that purpose you want to have a supplier who supplies you the
steel in raw form for manufacturing. Here supplier supplies you which
of the following form of industrial product?

Material and parts (Answer)


Capital items

Supplies and services

None of the given options

199. How are you telling consumers in your target group about your
product This question belongs to which marketing concept?

Product

Price

Place

Promotion (Answer)

200. A transaction in which the organization is making an initial


purchase of an item to be used to perform a new job refers to which of
the following purchases?

Straight re buy purchase

Delayed purchase

New-task purchase (Answer)

Modified re buy purchase