Institute of Research and Advance studies (IRAS) Multan

Mock Exam BBA: 3rd Semester Course: Principles of Marketing

Section (A): Multiples choice question (18 Marks)

Section (B): Shorts questions (10 Marks)

Section (C): Discussion questions (20 Marks)

Note: All question including Sec (A), Sec (B) and Sec(C) are compulsory.

Section (A): Multiple Choice Questions

Total Marks section (A): 18 Each Mcq contains: 0.5 Mark

Time allowed: 30 minutes

1: Setting a low price for a new product in order to attract a larger number of customers is known as :

A. Price skimming
B. Market penetration pricing
C. Product line pricing
D. Captive product pricing

2: Apple Inc. frequently use___________ strategy to get high initial profit for a new product.

A. Discount pricing
B. Segment pricing
C. Market skimming pricing
D. Optional product pricing

3. Combining several products and offering the bundle at a ____ is called product bundle pricing.

A. High price
B. Low price
C. Segmented price
D. Psychological price

4. When a firm considers initiating a price change, it must consider customers and ___ reactions.

A. Suppliers
B. Government
C. Competitors
D. Sales force
5. Setting price based on buyer’s perception of value is called.

A. Customer value based pricing

B. Cost based pricing
C. Value added pricing
D. Break even pricing

6. Break even pricing a type of.

A. Value based pricing

B. Cost based pricing
C. Competition based pricing
D. Demand based pricing

7. Adding a standard _____ to the cost of product is known as cost plus pricing

A. Loss
B. Markup
C. Variable cost
D. Fixed cost

8. Inviting broad communities of people and researchers into new product innovation process is.

A. Research and development

B. Crowdsourcing
C. Internal data sourcing
D. The innovation pipeline

9. 60 percent of all new consumer packaged products introduced by established companies ___

A. Succeed
B. Fail
C. Retain
D. Grow

10. ______ is a detailed version of the idea stated in meaningful consumer terms.

A. Product image
B. Product concept
C. Product idea
D. Product testing

11. In a PLC ______ is a period of slowdown in sales growth because product has achieved acceptance
by potential customers.

A. Introduction stage
 B. Growth stage
C. Maturity stage
D. Decline stage

12. An activity benefit or satisfaction offered for sale that is essentially ____ and does not result in
ownership of anything is called service.

A. tangible
B. Intangible
C. Physical
D. Augmented

13. Product planner must build an _____ around the core benefit and actual product by offering
additional services and benefits

A. Core customer values

B. Brand name
C. Augmented product
D. Design

14. Candy, detergents and soaps are examples of.

A. Shopping product
B. Convenience product
C. Specialty product
D. Unsought product

15. Services cannot be stored for later sale or use this characteristic is called.

A. Inseparability
B. Perishability
C. Variability
D. Intangibility

16. The differential effect that knowing brand name has on consumer on customer response to the
product or its marketing is.

A. Brand value
B. Brand building
C. Brand equity
D. Brand symbol

17. Nike and Apple Inc. combined Nike+ iPod sport kit which allows runners to link their Nike shoes
with their iPod to track and enhance running performance. This is an example of.

A. Brand sponsorship
 B. Co-Branding
C. Brand extension
D. Multi branding

18. An advantage over competitor gained by offering ______ either by having lower prices or
providing more benefits that justify higher prices is called competitive advantage.

A. Greater customer value

B. Greater advertising
C. Sale promotions
D. Discounts

19 Creating __________________ is at the very heart of modern marketing thinking and practice.

A. Profit maximization
B. Increased stock value
C. Award winning product
D. Customer value and satisfaction

20. _________________ is a social and managerial process by which individuals and groups obtain
what they need and want through creating and exchanging products and value with others.

A. Management

B. Marketing
C. Econometric
D. Demand.

21. __________ are shaped by one’s society and are described in terms of objects.

A. Needs
B. Wants
C. Demands
D. Transactions

22. If a company is guilty of “marketing myopia,” then it is:

A. In danger of having dangerous cost overruns because it is trying to please too many
diverse customer groups.
B. So taken with its products that it focuses only on existing wants and loses sight of
underlying consumer needs.
C. Guilty of prejudice toward certain customer groups.
 D. Falling into the trap of “copying” rather than “inventing” products

23. What do we call the collection of businesses and products that make up the company?

A. Investment diversity
B. Needs inventory
C. Business portfolio
D. None of the above

24. The firm you work for has decided to use the Boston Consulting Group’s approach to classify its
business units. Upon what is the approach based?

A. Most profitable units

B. Growth-share matrix
C. Customer retention
D. Cost-benefit

25. A common practice among marketers is to increase sales to current customers without changing
their products. What is this practice called?

A. Market skimming
B. Market penetration
C. Market development
D. Product extension

26. You are directed to study the factors that are close to the company that affect its ability to Serve
its customers – the company, suppliers, marketing intermediaries, customer markets, Competitors
and publics. What are you studying?

A. The macro environment

B. The microenvironment
C. The global environment
D. The Macroeconomics

27. When a company identifies the parts of the market it can serve best and most profitably, it is
practicing _____.

A. Concentrated marketing
B. Mass marketing
C. Targeted marketing
D. Segmentation.

28. Your firm has decided to localize its products and services to meet local market demands. A good
approach to use would be _____ segmentation.
 A. Geographic
B. Benefit
C. End use
D. Custom

29. When Burger King targets different groups—from children and teens to adults andSeniors —with
different ads and media, it is practicing _____ segmentation.

A. Demographic
B. Age and life-cycle
C. Psychographic
D. Behavioral

30. A marketing information system (MIS) consists of people and procedures to assess
information needs, ________, and help decision makers analyze and use the information.

A. Experiment to develop information

B. Test market the information
C. Develop the needed information
A. D Critique the needed information
D. Question the needed information

31. ________ is the systematic collection and analysis of publicly available information about
consumers, competitors, and developments in the marketing environment.

A. Marketing data
B. Marketing intelligence
C. Sales management
D. Customer intelligence
E. Competitive intelligence

32. What is the first step in the marketing research process?

A. Developing a marketing information system

B. Defining the problem and research objectives
C. Developing the research plan for collecting information
D. Implementing the research plan
E. Hiring an outside research specialist

33. Causal research is used to ________.

A. Test hypotheses about cause-and-effect relationships

 B. Gather preliminary information that will help define problems
C. Uncover information at the outset in an unstructured way
D. Describe marketing problems or situations
E. Quantify observations that produce insights unobtainable through other forms of research

34. The objective of ________ research is to gather preliminary information that will help define the
problem and suggest hypotheses.

A. Exploratory
B. Descriptive
C. Causal
D. Primary
E. Secondary

35. To address concerns about the misuse of research study findings, several highly regarded
marketing associations have developed ________.

A. Customer relationship management guidelines

B. Behavioral targeting "Do Not Track" lists
C. Chief privacy officer job descriptions
D. Codes of research ethics
E. Bans against using "cookies"

36. ________ are people within a reference group who, because of special skills, knowledge,
personality, or other characteristics, exerts influence on others.

A. Opinion leaders
B. Habitual buyers
C. Social networkers
D. Stealth marketers
E. Buzz marketers

37. According to Freud's theories, people are ________ many of the psychological forces shaping their
behavior.

A. Unaware of
B. Unsure of
C. Aware of
D. Status-driven about
E. Socially conscious of

38. Maslow's theory is that ________ can be arranged in a hierarchy.

A. Stimuli
B. Beliefs and attitudes
 C. Perceptions
D. Human needs
E. Decisions

Section (B): Short question and answers.

Total questions: 5 Each contains: 2 Marks

Total: (10 Marks) Note: Attempt all question

Time allowed Sec (B) and Sec(C): 2 hours

1. Define Marketing with an example and draw Marketing process?

2. How do you define Marketing research? Draw marketing research process?

3. Differentiate between brand equity and brand value?

4. What is price? Define value- based pricing and cost based pricing?

5. Define market skimming pricing and market penetration pricing strategies?

Section(C): Discussion question

Total question: 4 Each contains: 5 Marks

Total: (20Marks) Note: attempt all question

Discussion Q1. Name and describe four product mix pricing strategies. When would each be
appropriate?

Discussion Q2. Discuss the stages of product life cycle and how marketing strategies change
during a product’s life cycle ?

Discussion Q3. Identify the four characteristics that affect the marketing of services and
explain five links of services profit chain?

Discussion Q4. Define the major steps in designing a customer value driven marketing
strategy: Market segmentation, targeting, differentiation, and positioning?

Good luck …..