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Name :………………………………………………………………………… Total = ________

Matric No:…………………………………………. 20
AOL T1 = Q1 to Q8 = ______ , AOL T2 = Q9 to Q17 = ______, AOL T3 = Q18 to Q20 = ______
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1. ________ are consumer products and services with unique characteristics or brand identification
for which a significant group of buyers is willing to make a special purchase.
A) Shopping products
B) Unsought products
C) Specialty products
D) Capital items

2. The new product development process ends with ________.

A) test marketing
B) simulation
C) co-marketing
D) commercialization

3. _________ refers to a measure of the sensitivity of demand to changes in price.

A) Price elasticity
B) Product costs.
C) Demand curve
D) Elasticity of demand

4. When a company sets a high price for a new product with the intention of reducing the price in the
future, it is using the ___________ pricing strategy.
A) market-skimming
B) cost-plus
C) market-segmentation
D) market-penetration

5. _____ refers to the process of putting thought into symbolic form.

A) Encoding
B) Decoding
C) Transferring
D) Holding

6. Which of the following is NOT a tool for public relations?

A) Events
B) Sponsorship
C) Sales presentations
D) Press release

7. Which of the following is NOT one of the logictics functions?

A) Managing inventory
B) Transportation
C) Purchasing
D) Inventory repositioning


8. A small store that sells daily/routine goods at slightly higher price as compared to supermarket,
operated from convenient accessible location, and sometimes operated 24 hours a day is known
as _________.

A) specialty store
B) superstor
C) convenience store
D) department store

9. Which of the following is a potential drawback of multibranding?

A) Multibranding tends to decrease brand loyalty.
B) Company resources are likely to be concentrated on a single brand.
C) Multibranding curbs the growth opportunities of established brands.
D) Each brand might obtain only a small market share, and none may be very

10. Which stage of the product life cycle is characterized by low or negative profits and companies
may need to offer incentives to stores to get them to carry the product?
A) Maturity
B) Introduction
C) Growth
D) Decline

11. This step describes the target market, outlines the price, distribution, and promotion strategies,
and plans for the market shares as well as the profit goals. This step refers to ________ in the
new product development process
A) marketing strategy development
B) concept development and testing
C) product commercialization
D) business analysis

12. Most supermarket retailers charge a constant price everyday and during special occasions offer
price discounts to the customers.This is an example of __________ pricing.
A) cash retail
B) everyday low
C) break-even
D) high low

13. Why is markup pricing impractical?

A) Calculating costs is complicated due to fluctuations.
B) By tying the price to cost, sellers oversimplify pricing.
C) When all firms in the industry use this pricing method, prices tend to be similar.
D) The method ignores demand and competitor prices.

14. Firms typically determine their promotional budget using one of the four methods. Which of the
following is NOT one of them?

A) The affordable method

B) The percentage-of-sale method
C) The objective-and-task method
D) The accounting method


15. What two key words in the definition of advertising are crucial to understanding how advertising fits
into promotion mix?
A) Personal and communication
B) Paid and communication
C) Nonpaid and nonpersonal
D) Paid and nonpersonal

16. Which of the following statements is TRUE about personal communication channels?
A) A magazine advertisement exemplifies the use of a personal communication
B) All personal communication channels are directly controlled by a company.
C) Personal communication channels do not allow sending and receiving of feedback.
D) Word-of-mouth influence uses a personal communication channel.

17. Which of the following is TRUE of the intensive distribution strategy?

A) It makes products available to everybody, everywhere.
B) It is used primarily for unique products.
C) It helps promote a brand’s luxury image.
D) It gives producers control over their products.

18. Which of the following is NOT a type of wholesalers?

A) Mydin wholesale and retail
B) Land broker
C) Insurance agent
D) Maju Minimart

19. A theme park in Ipoh charges different ticket fare for children and adults. This is called __________

A) segmentation
B) skimming
C) penetration
D) bundling

20. Shoe Inc. only sells shoes and offering a narrow product line but a deep assortment
within that line. Shoe Inc. is a type of ___________.
A) specialty store
B) department store
C) convenience store
D) supermarket