MARKETING

MANAGEMENT MCQs
Chapter 1: The Nature of Marketing

1) Production & Marketing are both fundamental economic activities.

a) economic activities
b) social activities
c) Marketing activities

2) Production involves Making Goods.

a) Manufacturing
b) production
c) marketing

3) Marketing is as necessary as production, because products do not

sell themselves!
a) Advertising
b) promotion
c) Marketing

4) Production & marketing work together to create Utility.

a) Needs
b) Utility
c) sales
5) Form Utility is provided when an organization or individual produces
something tangible.
a) Place utility
b) time utility
c) form utility

6) Task Utility is provided when an organization or individual performs

a task for someone else.
a) Time Utility
b) task Utility
c) form utility

7) Financial transactions are the example of Task Utility.

a) Task utility
b) place utility
c) form utility

8) Time Utility means having the product available when the consumer
wants it.
a) Time Utility
b) task Utility
c) form utility

9) Place Utility means having the product available where consumer

want it.
a) Time utility
b) place utility
c) task utility
10) Place Utility have become more important to consumers over
the past several years.
a) Task utility
b) time utility
c) place utility

11) Marketing is not the same as selling or advertising.

a) Promotion
b) selling or advertising
c) production & distribution

12) The aim of marketing is to make selling superfluous.

a) Earn profit
b) customer satisfaction
c) selling superfluous

13) The concept of exchange means that people give up

something in order to receive something.
a) Product concept
b) exchange concept
c) price concept

14) The usual medium of exchange is Money.

a) Money
b) product
c) both

15) In exchange concept there should be at least two parties.

a) Single party
 b) two parties
c) More parties

16) Marketing can occur even if exchange does not take place.
a) Sales
b) marketing
c) distribution of goods.

1.Marketing is the activity, set ofinstitutions and processes for creating

,communicating delivering and exchangingofferings that have value for
customers,clients ,parents and society.

a)institutions, satisfying

b)organization, exchanging

c)Institutions, exchanging

d)organizations, understanding.

2.This of the following is not a type of marketing concept The Supplier

Concept.

a)The production concept

b) The selling concept

c) The societal marketing concept

d) The Supplier Concept

3. Get out production,cut the price –Philosophy by Henry Ford is an

example of Production concept .
a)Marketing Concept

b)Selling Concept

c)Production Concept

d) Product Concept

4.PHILIP KOTLER is the Father of Modern Marketing.

a) Peter Drucker

b)Philip Kotler

c) Lester Wunderman

d) Abraham Maslow

5.Customers buy product and consumer use product.

a)Consumer and customers

b) customers and consumer

c) Buyers and Sellers

d) Buyers and Customers

6.Marketing is a process which aims at satisfaction of customer needs .

a) production

b) profit making

c) satisfaction of customer needs

d) Selling products

7.Marketing management is the art and science of choosing target markets

and getting,keeping ,and growing customers through creating
,delivering,and communicating superior customer value.

a) developing the marketing process

b) managing the marketing process

c)monitoring the profitability of the company’s product and sevices

d) the art and science of choosing target markets and getting,

keeping, and growing customers through creating, delivering ,and
communicating superior customer value.

8. Consumer Behaviour defined as all psychological ,social and physical

behaviour of potential customers as they become aware of
,evaluate,purchase,consume and tell others about the product and
services.

a) customer value

b) consumer behaviour

c) Holistic Marketing

d) societal Marketing

9.Social Needs are the form of human needs take as shaped by culture
and individual personality.

a) Wants

b) Demands

c) Needs

d) Social Needs

10. Assembling Involves purchase from various sources and assembled at

one place-involves creation and maintenance of the stock of goods
purchased and SellingInvolves transfer of ownership of the goods.

a) Selling and Buying

b)Assembling and Selling

c)Buying and Assembling

d) Assembling and Buying .

11.It’s combination of quality ,service and price customer value Triad.

a) Marketing Triad

b) customer value Triad

c)Customer satisfaction Triad

d) Service Quality Triad

12.The concept of marketing mix was developed by N.H.Borden

a) N.H.Borden

b) PHILIP KOTLER

c) Stanton

d) W.Anderson

13.Many people want BMW ,only few are able to buy this is an example of
Demand.

a) Need

b) Want

c) Demand

d) Status

14.Selling is the major objective of any marketing activity in the world

because marketing completes with the real sale of goods and services
bought or acquired by the seller or when intermediary has been affected.

a) Marketing

b) Selling

c) Assembling

d) Transportation
 1) A sales oriented organization targets its products at ‘everybody’
or the average customers.
a)market oriented
b)sales oriented
c) production oriented
2) Market oriented organizations is to make a profit from satisfying
customers.
a)market oriented
b)sales oriented
c) production oriented
3) Sales oriented organizations view promotion as the primary
means of achieving their goals.
a)market oriented
b)sales oriented
c)market oriented
4) Micro marketing is the performance of activities that seek to
accomplish an organization’s objectives.
a) macro marketing
b) micro marketing
c)social marketing

5) Micro marketing is a set of activities performed by organizations

a) macro marketing
b) micro marketing
c)social marketing
 6) Macro marketing refers to the social process.
a) macro marketing
b) micro marketing
c)social marketing

7) Four philosophies of marketing namely production orientation,

sales orientation , market orientation and social marketing
orientation.

Chapter 2: Marketing Planning

1) _______ is the process of putting marketing plans into actions

a) Planning
b)marketing
c)Control
d) Implementation

2)_______planning is the basis for all marketing strategies and decisions

a)Marketing
b)Strategic Marketing
c)Managerial
d)Control

3)Marketing Objective should be realistic, measurable and _________

a)accompliable
b)Time specific
c)Targetable
d)Achivable
4)__________helps identify market opportunities and threats and provides
guidelines for the design of marketing strategy

a)Environmental Scanning
b)Planning
c)Future goal
d)environmental study

5)_____marketing treats all customers as the same, offering a single

marketing mix combination to everyone

a)Target marketing
b)mass marketing
c)mix marketing
d)common

6)Strategies are woven around four Ps of the marketing mix known as

product, place, promotion and ______

a)price
b)people
c)parameter
d)production

Chapter 3: The Marketing

Environment and Marketing Ethics

1. The marketing mix influences purchases

___________________________and place.
a. Product
b. Price
c. Promotion
d. All of the above.
2. The basic area of marketing Environment
_________________________.
a. Technological Environment
b. Political and Legal Environment
c. Economic Environment
d. All of the Above

3. The _____________ basic area of the marketing environment.

a. Five
b. Two
c. One
d. ten

4. The ___________________ includes customers, the resources and

objectives of the company, and the firm’s competitors.
a. Direct Market Environment
b. External Market Environment
c. Internal Market Environment
d. Indirect Market Environment

5. The ________________ includes economic environment, the

technological Environment, Legal and political environment, cultural
and social environment.
a. Direct Market Environment
b. External Market Environment
c. Internal Market Environment
d. Indirect Market Environment

6. The Direct Market Environment includes

______________________________.
a. customer
b. company
c. competitors
 d. All of the above.

7. The External market Environment

includes____________________________.
a. Economic Environment
b. Technological Environment
c. Political and Legal Environment
d. All of the above
8. In ________________One company serves the entire customer
base.
a. Monopoly
b. oligopoly
c. Monopolistic Competition
d. None of the above.

9. In _____________________, a number of different firms offer

marketing mixes that at least some customer see as different.
a. Monopoly
b. Oligopoly
c. Monopolistic competition
d. All of the above

10. In ________________, a small number of firms control the

market. Their marketing mixes may overlap but demand is sufficient
to sustain them, barriers to competitors entry is very high.
a. Monopoly
b. oligopoly
c. Monopolistic competition
d. None of the above.

11. In ___________________ a large number of firms compete

with essentially Similar (commodity) product, price is typically the key
factor in the making a purchase.
a. Monopoly
b. oligopoly
 c. Pure competition
d. Perfect Competition

12. ____________________ is an organized approach for

evaluating the strengths and weaknesses of current or potential
competitors.
a. Competitor analysis
b. Price analysis
c. Cost analysis
d. None of the above

13. Economics factor includes______________.

a. Rising Income
b. Inflation
c. Recession
d. all of the above

14. ______________ is general rise in price resulting Decreased

purchasing power.
a. Inflation
b. Recession
c. Rising income
d. Rapid Change

15. ______________ is a period of economic activity when income,

production and employment tend to fall – all of which reduce demand.
a. Inflation
b. Recession
c. Rapid change
d. Rising price
16. Technology has also Raised________________________.
a. Social Issue
b. Political issue
c. Ethical issue
d. None of the above

17. _________________ is a Social movement that seek to

increase the rights and power of consumers.
a. Monopoly
b. oligopoly
c. Consumerism
d. Pure Competition

18. ___________________ refers to the rules and laws that set

slandered for conduct that are enforced by legal power.
a. Legal Environment
b. political environment
c. Social Environment
d. Business Environment

19. Interest Rate and inflation affect ______________________.

a) Retailer buying process
b) Consumer buying process
c) Whole seller buying process
d) None of the above

20. In order to determine how to price of the product, marketer

must have an understanding of a how a variety of
_________________ can influence target market.
a) Economic Factor
b) Legal Factor
c) Political Factor
 d) Social Factor

21. Technology affects market in two basic

ways__________________.
a) New product & New process
b) Old product & Old process
c) both a & b
d) None of the above

22. Technology also raised _____________.

a) Personal issue
b) Social issue
c) Ethical issue
d) business issue

23. Natural Environment includes__________________.

a) Shortage of Raw Material
b) Increase cost of energy
c) Increase level of pollution
d) all of the above

1. The changes of the types of product to convenient product is

triggered by :-
i) development of cities
ii) development of villages
iii) changing role of families and working women
iv) all of the above

2. The age group in women, that are increasingly joining workforce is

i) 15 – 55
ii) 22 – 60
iii) 20 – 58
 iv) 16 – 65

3. The overall female, that belongs to working class is

i) 55%
ii) 49%
iii) 58%
iv) 61%

4. Women are the principle buyers for % of all household

products in metro cities.
i) 50%
ii) 80%
iii) 70%
iv) 65%

5. Business ethics ideally refers to

i) The ethics used while doing business
ii) The subset of values held by society as a whole
iii) Both of the above
iv) None of the above

6. Ethics can be very

i) situation –specific
ii) time – oriented
iii) both of the above
iv) none of the above

7. Conventional morality is all about

i) Expectation of family
ii) Expectation of society
 iii) Sensibility
iv) Social responsibility

8. Post-conventional morality represents the morality of

i) Mature adult
ii) Young children
iii) Elderly person
iv) Middle-aged man
9. Factor(s) which influence(s) ethical decision making and judgment :

i) the extent of ethical problems within the organization

ii) top management actions on ethics
iii) potential magnitude of the consequence
iv) all of the above

10. A specific Code of Ethics is developed to

i) help employee take better decisions

ii) work in a peaceful manner
iii) create healthy work atmosphere
iv) all of the above

11. An explicit code helps to

i) identify acceptable business practices

ii) internally control behavior
iii) reduce employee confusion in decision making
iv) all of the above
12. Mission statement sets out
i) Main objective of the organization
ii) Organization’s basic purpose for being
iii) Both of the above
iv) none of the above

13. An organized approach for evaluating the strengths and

weaknesses of current or potential competitors’ marketing strategies
is called:-
i) Competitive evaluation
ii) Competitive analysis
iii) Comparative analysis
iv) Strategy evaluation

14. Competitive rivals

i) A group of rivals
ii) Enemies of the firm
iii) closest competitors of the firm
iv) Firms those maintain enmity amongst themselves

15. A social movement that seeks to increase the rights and

powers of Consumers is called
i) Consumerism
ii) Consumer empowerment
iii) Consumer forum
iv) None of the above

16. SBU stands for

i) Social Bureau Unit
ii) Suburban Business Unit
iii) Social Bonding Unit
iv) Strategic Business Unit
 17. What is Portfolio Management all about?
i) The art of selecting the right investment policy for the
individuals in terms of minimum risk and maximum return
is called as portfolio management.
ii) Specially equipped photo-shoot session as marketing needs of
the business

iii) Selective analytical way of comprehensive description of the

Business strategy

iv) None of the above

Chapter 4: Consumer Decision

Making

Q1: What is safety need?

1. Biological needs such as the need for food, drink, rest and sex,
2. Needs that are learned during a person’s life,
3. Needs concerned with protection and physical well-being.

Q2: What is Selective perception?

1. Our eyes and minds seeks out and notice only information that
interests us,
2. People screen out or modify ideas, messages, and information
that conflict with previously learned attitudes and beliefs,
3. People remember only what they want to remember.
Q3: Which of the below mentioned statement is correct?

1. Personality and self-concept are reflected in lifestyle,

2. Perception and Personality are reflected in lifestyle,
3. Self-concept and beliefs are reflected in lifestyle.

Q4: What is Dissonance?

1. Tension caused by uncertainty about the rightness of decision,

2. Tension caused by uncertainty about the rightness of market,
3. Tension caused by uncertainty about the rightness of situation.

Q 1.With reference to human perception, marketing communications stimuli

are:

a) Selected, organised and interpreted

b) Selected, decoded and memorised
c) Observed, encoded and responded
d) Noticed, interpreted and classified

Q 2.In consumer decision making, EPS stands for:

a) extended purchase solutions

b) extenuating purchase solutions
c) extensive problem solving
d) extended problem solving

Q 3.Which of the following is not an attitude component?

a) Cognitive
b) Effective
c) Affective
 d) Conative

Q4.The original sequence of attitude formation is:

a) learn / feel / do
b) do / feel / learn
c) do / learn / feel
d) feel / do / learn

Q5.Which of these is not a method of changing attitudes?

a) Change brand associations

b) Change the priority of attributes
c) Change the media
d) Introduce a new attribute

Q6.How many stages are there in the general purchase decision process?

a) 3
b) 9
c) 5
d) 7

Q7Appropriate marketing communications can reduce consumers'

perception of risk.

a) True
b) False

Q8.How many stages are there in the general purchase decision process?

a) Zero
b) Low
 c) Medium
d) High

Q9.With low involvement purchases, it is thought that:

a) behaviour precedes attitude

b) attitude precedes behaviour

Q10.Which of the following is not an element of perceived risk?

a) Physical risk
b) Time risk
c) Trait risk
d) Social risk

Q11.Emotional messages are more effective in:

a) low involvement purchases

b) high involvement purchases

Q12.In the context of purchase decisions, involvement does NOT vary over
time.

a) True
b) False

Q 13.Print media are more effective for marketing communications

concerning:

a) high involvement purchase decisions

b) low involvement purchase decisions

Q 14.Broadcast media are more effective for marketing communications

concerning:
 a) low involvement purchase decisions
b) high involvement purchase decisions

Q15.The ultimate goal of marketing is:

a) to facilitate consumer experimentation

b) to raise consumer awareness
c) to manage effectively, long run customer behaviour
d) to satisfy consumer needs for information

Q16.Price is generally more important in:

a) high involvement purchase decisions

b) low involvement purchase decisions

Q17.'New buy' and 'rebuy' are types of:

a) organisational buy classes

b) consumer classification
c) marketing media
d) product classification

Q 18.'Users, influencers & deciders' are roles taken by people in

organisational:

a) buy phases
b) buying centres
c) buy classes

Q.19. Which of the following would be the best illustration of a subculture?

a) a religion
b) a group of close friends
 c) your university
d) a fraternity or sorority

Q.20. The relatively homogeneous and enduring divisions in a society,

which are hierarchically

ordered and whose members share similar values, interests, and behaviour
constitute

________.

a) a culture
b) a subculture
c) a social class
d) a family

Q.21. ________ refers to a set of distinguishing human psychological traits

that lead to

relatively consistent and enduring responses to environmental stimuli.

a) Image
b) Personality
c) Psychological transformation
d) Lifestyle

Q.22. Which of the following is asituation in which consumer behaviour

occurs?

a) communications situation
b) purchase situation
c) usage situation
d) All of the above
Q.23. Which of the following also includes a situation-specific component?

a) personality
b) self-concept
c) involvement
d) demographics

Q.24. ________ portrays the "whole person" interacting with his or her
environment.

a) Attitude
b) Personality
c) Lifestyle
d) Self-concept

Q.25.Understanding of consumer needs and then develops a marketing

mix to satisfy these

needs.

a) The marketing concept

b) The strategic plan
c) The product influences
d) The price influences

Q.26.________________ is one of the most basic influences on an

individual’s needs, wants,

andbehaviour.

a) Brand
b) Culture
c) Product
d) Price
Q.27.In terms of consumer behaviour; culture, social class, and reference
group influences

have been related to purchase and _______________.

a) Economic situations
b) Situational influences
c) Consumption decisions
d) Physiological influences

Q28.___________ develop on the basis of wealth, skills and power.

a) Economical classes
b) Purchasing communities
c) Competitors
d) Social classes

Q.29.In large nations, the population is bound to lose a lot of its

homogeneity, and thus

_________________ arise.

a) Multilingual needs
b) Cultures
c) Subcultures
d) Product adaptation requirements

Q.30._______________ are based on such things as geographic areas,

religions,

nationalities, ethnic groups, and age.

a) Multilingual needs
 b) Cultures
c) Subcultures
d) Product adaptation requirements

Q31.Marketing managers should adapt the marketing mix to

___________________ and

constantly monitor value changes and differences in both domestic and

global

markets.

a. Sales strategies
b. Marketing concepts
c. Cultural values
d. Brand images

Q.32._____________ has become increasingly important for developing a

marketing

strategy in recent years.

a. Change in consumers’ attitudes

b. Inflation of the dollar
c. The concept and the brand
d. Age groups, such as the teen market, baby boomers, and
the mature market

Q.33.Many sub cultural barriers are decreasing because of mass

communication, mass transit,

and ________________
 a. The rising unemployment situation
b. An influence of political power
c. The use of new technology
d. A decline in the influence of religious values

Q.34.In terms of consumption decisions, middle class consumers prefer to

_________

a. Buy at a market that sells at a whole sale rates

b. Buy what is popular
c. Buy only the brands which sell at affordable prices
d. Analyse the market and select the best at the lowest prices

Q.35. _______ are factors that have been shown to affect consumer
behaviour.

a. Brand name, quality, newness, and complexity

b. Advertising, marketing, product, and price
c. Outlets, strategies, concept, and brand name
d. Quality, advertising, product positioning, and strategy

Q.36.The reason that higher prices may not affect consumer buying is
_______________.

a. Most consumers prefer brand names which have higher prices

b. 70% of the total population looks for quality services and is
willing to pay higher prices
c. Consumers believe that higher prices indicate higher
quality or prestige
d. Most consumers feel that the price is actually affordable

Q.37.Marketing strategies are often designed to influence

_______________ and lead to

profitable exchanges.
 a. Consumer decision making
b. Sales strategies
c. Advertising strategies
d. Export strategies

Q.38.__________ refers to the information a consumer has stored in their

memory about

a product or service.

a. Cognitive dissonance
b. Product knowledge
c. Product research
d. Marketing research

Q.39.Which construct represents an unobservable inner force that

stimulates and

compels a behavioural response and provides specific direction to that

response?

a. motive
b. personality
c. emotion
d. perception

Q.40. The energizing force that activates behaviour and provides purpose
and direction to that

behaviour is known as _____.

a. motivation
b. personality
c. emotion
d. perception
Q.41.Consumer purchases are influenced strongly by cultural, social,
personal, and:

a. psychographic characteristics.
b. psychological characteristics.
c. cpsychometric characteristics.
d. supply and demand characteristics.

Q.42.If the purchase is for a high-involvement product, consumers are

likely to develop a high

degree of ________________ so that they can be confident that the item

they purchase

is just right for them.

a. Brand loyalty
b. Society
c. Product knowledge
d. References

Q.43.________ can influence the consumers’ thoughts about products.

a. Marketing and popularity

b. Advertising, sales promotions, salespeople, and publicity
c. Sales promotion, popularity, and marketing
d. Billboards

Q1) _________ is the essential character of the society that distinguishes it

from other cultural groups
 A. Values
B. Culture
C. Product
D. Subculture

Q2)________ are the enduring beliefs that a specific model of conduct is

personally or socially preferable to another mode of contact.

A. Marketers
B. Product
C. Culture
D. Values

Q3)________ is a homogeneous group of people who share elements of

the overall culture as well as unique elements of their own group.

A. Culture
B. Reference Groups
C. Subculture
D. Social Class

Q4)________ are all of the formal and informal groups in society that
influence an individual’s purchasing behavior.

A. Subculture
B. Reference Groups
C. Social Factors
D. Product

Q5) _______ are reference groups with which people interact regularly in
an informal manner.

A. Primary membership groups

B. Secondary membership groups
C. Aspirational groups
D. Non aspirational groups

Q6) _________ are reference groups with which people associate less
consistently and more formally.
 A. Primary membership groups
B. Secondary membership groups
C. Aspirational groups
D. Non aspirational groups

Q7)_____ are groups that one would like to join.

A. Primary membership groups

B. Secondary membership groups
C. Aspirational groups
D. Non aspirational groups

Q8)________ are groups the individual does not want to associate or be

identified with.

A. Primary membership groups

B. Secondary membership groups
C. Aspirational groups
D. Non aspirational groups

Q9)_______ is the individual who influences the opinion of others.

A. Buyer
B. Seller
C. Opinion leader
D. Category head

Q10) _______ is the most important social institution for many consumers.

A. Friends
B. Family
C. Parents
D. Reference groups

Q11)________ is a way of organizing and grouping the consistencies of an

individual’s reactions to situations.

A. Self concept
B. Lifestyle
 C. Personality

Q12)________ is a person’s mode of living as identified by activities,

interests and opinions.

A. Self concept
B. Lifestyle
C. Personality

Q13)______ is the process that creates changes in behavior, immediate or

expected, through experience and practice.

A. Motivation
B. Learning
C. Beliefs
D. Attitudes

Q14)_______ are organized patterns of knowledge that an individual holds

as true about his or her world.

A. Learning
B. Attitudes
C. Beliefs

Chapter 5: Business Marketing

1. Which of the following describes e‐commerce?
A.Doing business electronically
B.Doing business
C.Sale of goods
D.All of the above

2. Which one of the following is not one of the major types of e-commerce?
A.C2B
B.B2C
C.B2B
D.C2C

3. Which segment do eBay, Amazon.com belong?

A.B2Bs
B.B2Cs
C.C2Bs
D.C2Cs

4. Which is not includes in categories of customers

A. Producers
B. Resellers
C. Private companies
D. Institutions
5. Which of the following is an example of a portal?
A.Amazon
B.eBay
C.Yahoo
D.Flipkart

1. Major equipment always ________________over time.

a) Raised
b) No change
c) Depreciates
d) Depends on market.
2. Accessary equipment is generally_______________ and shorter-
lived than major equipment.
a) Expensive
b) Do not change
c) Less expensive
d) Depends on market.

3. Raw materials are________________ extractive or agricultural

products, such as minerals are lumber, wheat, vegetables and fish,
which become part of the final market.
a) Unprocessed
b) Finished
c) Semi finished
d) Unused.

4. Components part______________ during the life of a product.

a) Does not change
b) Become stronger
c) May wear out and need to be replaced
d) Wear out but no replacement required.

5. Processed material_______________ their original identity in the

final market.
a) Retain
b) Do not retain
c) Keep
d) None of this.
6. ____________buyers often concentrate on quality certification in
marketing purchases.
a) Unorganized
b) Organizational
c) Industrial
d) Consumer.

7. _____________ arespecialists in buying activities for their employers.

a) User
b) Purchasing Manager
c)Deciders
d) Sellers.

Q.8) Business purchases often choose to buy from their own customers, a
practice known as _______________.
a) Reciprocity
b) Purchasing
c)Buyer
d) Seller

Q.9 Consumer normally buy product rather than ________________

them.
a) Borrow
b) Sell
c) Lease
d) Trade

1) Vendor Analysis is a formal rating of suppliers.

i) Vendor Analysis
ii) Behavioural needs
iii) Ethical conflicts
2) The goal of a Vendor Analysis is not necessary to get the lowest
possible price for a product.
a) Vendor Analysis
b) Behavioural needs
c) Ethical conflicts)
3) Ethical Conflicts may arise in relationships between buyers and
potential suppliers.
a) Vendor Analysis
b) Behavioural needs
c) Ethical conflicts
4) Quality refers to technical suitability, the salesperson, and the
salesperson’s firm.
a) Quality
b) Service
c) price
5) Service may range from pre-purchase needs surveys to installation.
a) Quality
b) Service
c) price
6) Price is extremely important in most business purchases.
a) Quality
b) Service
c) price
7) Organizational buyers are problem solvers.
a) Problem Solvers
b) outsider supplier
8) A new buy situation requires the purchase of a product for the first time.
a) new buy
b) modified rebuy
c) straight rebuy
9) Technical information is very important in a new buy situation.
a) Technical information
b) value engineering
c) Strong relationship
10) In a modified rebuy situation, the purchaser wants some
change in the original good or service.
a) New buy
 b) modified rebuy
c) straight rebuy
11) In a straight rebuy the purchaser reorders the same
goods or services without looking for new information or investigating
other suppliers.
a) new buy
b) modified rebuy
c) straight rebuy

Chapter 6: Marketing Information

Systems and Marketing Research
A) Which of the following statements is true?
i. Primary data can usually be obtained more quickly and at a lower
cost than secondary data
ii. Marketing intelligence is the systematic collection and analysis of
non-public information about consumers, competitors and
developments in the marketplace
iii. Marketing intelligence is the systematic collection and
analysis of public available information about consumers,
competitors and developments in the marketplace
iv. None of the above

B) According to the Marketing information system, the marketing

environment are described as which of the following?
I. Analysis, planning, implementation, control
II. Internal databases, information analysis, marketing intelligence
III. Target markets, marketing channels, competitors, publics,
macroenvironment forces
IV. None of the above

C) The exploratory research refers to which of the following?

I. To gather preliminary information that will help define the
problem and suggest hypotheses
II. To gather 100 % correct information that will help to define the
problem and lead to a definitive decision
 III. Aims to describe who buy the product
IV. All of the above
D) What does the term CRM stand for?
I. Customer Relationship Management
II. Customer Relationship Marketing
III. Consumer Relationship Management
IV. None of the above
E) Primary data consists of information that already exists somewhere,
having been collected for another purpose.
I. True
II. False
F) Survey research is the most widely used method for primary data
collection.
I. True
II. False
G) What is the difference between the terms market research and
marketing research?
I. Market research concerns strategic decisions; marketing
research does not.

II. Market research concerns operational decisions, marketing

research does not

III. Marketing research looks at academic matters, market research

does not

IV. None of the options given are correct.

H) Which ONE of these is NOT an element of the marketing information

system (MKIS)?
I) Internal records.

ii) Marketing insight system.

iii) Marketing research system.

iv) Analysis system.

I) Which ONE of these has less to do with marketing research than the
others?

a) FIS.

b) CAPI.

c) MKIS.

d) MDSS.

K) Most qualitative research money goes into:

a) depths.

b) focus groups.

c) Delphi.

d) ethnography.

L) Which ONE of these quantitative methods is being used more

nowadays?

a) Telephone interviewing.

b) Postal interviewing.

c) Face-to-face interviewing.

d) Online research.

M) Which ONE of the options is the odd one out?

a) Ipsos.

b) MRS.

c) GFK.

d) KANTAR (TNS)

N) Which ONE of the options is the odd one out?

 a) CIM.

b) ESOMAR.

c) MRS.

d) NRS.

O) What is data that 'relates to a living individual who can be identified from
the data, or from the data and other information in the possession of, or
likely to come into the possession of, the data controller'?

a) Impersonal data.

b) Personal data.

c) Behavioural data.

d) Something other than the options offered.

P) How many principles are contained in the UK Data Protection Act 1998?

a) 8.

b) 10.

c) 12.

d) 14.

Q) 'Responsible for specific parts of projects and may be part of a team.

Will write questionnaires and analyse results. May prepare reports and
presentations.' This might appear in the job description for which ONE of
the following?

a) Spec writer.

b) Research executive.

c) Personal interviewer.
 d) Moderator.

1
Quantitative survey research methods:
A) are used to make accurate predictions about relationships
between market factors and consumer behaviors.
B) aid in understanding those relationships and differences.
C) assist in verifying and validating existing relationships.
D) focus on standardized raw data useful in researching the how,
what, where, who, and when aspects of market factors and conditions.
E) all of the above

2
All of the following are advantages of survey methods except:
A) large sample sizes increase generalizability of results.
B) ability to easily crate detailed, in-depth data structures.
C) ability to distinguish small differences.
D) ease of administering and recording questions and answers.
E) ability of using advanced statistical analysis:

3
All of the following are disadvantages of survey methods except:
A) difficulty of developing accurate survey instruments.
B) limits to the in-depth detail of data structures.
C) inability to apply advanced statistical analysis.
D) difficulty in assessing respondent truthfulness.
E) problems of timeliness and potentially low response rates.

4
The X-Cel Corporation often conducts personal interviews at various mall
locations in its major target markets. The firm's efforts would be best
described as a(n):
A) mall-intercept interview.
B) purchase-intercept interview.
C) drop-off survey.
D) self-administered survey.
E) person-administered interview.
5
The X-Cel Corporation desires to investigate the motivations of shoppers
who purchase their products. Which of the following approaches allow the
firm to focus most specifically upon current buyers?
A) mall intercept interviews
B) drop-off surveys
C) self-administered surveys
D) purchase-intercept interviews
E) telephone interviews
6
All of the following are advantages of telephone interviews except:
A) fast data collection
B) ease of supervision
C) low cost
D) ease of generating large volumes of data
E) ability to collect in-depth information relevant to all types
of research concerns.
7
The practice of “sugging” is best described as a technique uses in:
A) telephone research.
B) mall intercepts.
C) purchase intercepts.
D) telemarketing.
E) executive interviews.

8
Which of the following telephone interview techniques best assures that all
telephones in a specified target area have an equal chance of being
selected?
A) plus-one dialing
B) random digit dialing
C) full-coverage dialing
D) automated dialing
E) systematic random digit dialing

9
The X-Cel Corporation has announced that it will implement the very latest
in computerized research systems. The firm is planning to implement a
______________ system
 A) CATS
B) random-digit dialing
C) CATI
D) CARP
E) systematic random-digit dialing
10
The most common type of self-administered survey is the:
A) direct mail survey.
B) mail panel survey.
C) telephone interview.
D) drop-off surveys.
E) online survey methods.
11
The X-Cel Corporation feels that simulation offers the best way to assess
potential store layouts, packaging, and pricing. Which of the following
techniques may best allow the firm to accomplish these goals while
avoiding the problems of small samples and the costs of constructing
physical props?
A) telephone interviews
B) self-administered surveys
C) virtual reality research
D) mail-intercepts
E) purchase intercepts
12
Situational factors of importance in the selection of a survey method
include:
A) available financial and personnel resources.
B) the required completion date.
C) the depth and breadth of data required.
D) the level of generalizability required.
E) all of the above.

13
The choice of the survey method used to collect raw data will be influenced
by such task characteristics as:
A) task difficulty.
B) stimuli needed to elicit responses.
C) the amount of information needed/respondent.
D) the sensitivity of the research topic.
E) all of the above.
14
Ideally, survey respondents would rank “high” on all of the following
characteristics except:
A) incident rate.
B) diversity rate.
C) ability to participate.
D) willingness to participate.
E) knowledge to participate.
15
Increasing the size of the sample will impact most favorably upon:
A) construct development error.
B) non-response error.
C) random sampling error.
D) data analysis error.
E) survey instrument design error.

Chapter 7: Marketing Pillars

1. Marketing Managers can use high prices to enhance the image of
their product in some cases. This is ___________ pricing strategy
Ans- Prestige

2. ________ means setting prices as so total revenue is as large as

possible relative to total cost for given item.
Ans Profit Maximization

3. ____________________ refers to company’s sales as percentage

of total sales for that industry. Ans- Market Share.

4. _______________ seeks to maintain existing prices or simply to

meet the competition . Ans- Status Quo Pricing

5. _____________ can evaluate possible of selling price that is le

prices. Ans Break Even Pricing
 6. ____________________focuses on pricing to cover all cost &
achieve a target return. Ans- Target Pricing

7. __________ focuses on how much will customer save.

Ans Value in Pricing

8. _______________ the percentage of selling price that is added to the

cost to get the selling price. Ans Market Pricing

9. ____________- are the prices that consumer expect to pay &

consumer may have reference prices.

10. ___________________ adeceiptive& illegal practice, tries to

get customers into a store through false or misleading price
advertising & then use high pressure sales tactics t0 persuade
customers to buy more expensive merchandise. Ans – Bait Pricing

11. Leader Pricing or loss leader pricing is an attempt to attract

customers by selling a product near cost or even below cost Ans-
Leader Pricing

12. _______ is practice of offering a product line with several items

placed in the line any specific price points. Ans Price Lining

13. ___________ means using odd-numbered prices to denote

bargains & even numbered prices to imply quality. Ans- odd even
pricing

14. ______________ is a pricing policy where a firm charges a

high introductory price. Ans- price Skimming

15. ______________sets a low price for a product as a way to

reach the mass market I the early stages of product life cycle. Ans-
Penetration Pricing
 16. A ____________ or trade discount is a discount to a wholesaler
or retailer peforming channel functions. Ans Functional Discount
---------------------------------------------------------------------------------------------------

1. It is a segment large enough to justify the development and

maintenance of a special marketing mix.

* Sustaintiablity

*Productivity

*Paradigm Shift,

* all of the above

2. The number of segmentation bases is limited only by

________imagination and creativity
● Decision maker stratergy
● Perception
● success factor
● all of the above

3. What are the steps in segmenting market?

● managerial insight , creativity and market knowledge
● number of segemnetation bases is limited

4. A target market is a group / organization for which an organization

designs , implements and maintains a
● mass marketing
● mixed markeing
● marketing mix
● all of the above
5. It assumes that individual customer have similar needs
● Undifferentiated targeting
● Behavioral segmentation
 ● Geographic Target
● None of the above

6. _______ is a strategy , production and marketing cost are often at

their lowest.
● Undifferentiated targeting

● Gender-Specific Marketing
● Age Target Marketing
● All the above
7. Undifferentitated targeting is also called .
● shotgun strategy
● undifferentiated schizophrenia
● undifferentiated carcinoma
● undifferentiated sarcoma
8. It is a marketing approach based on appealing to a single segment of
a market
● Concentrated Targeting

● Product or Commodity Approach

● institutional approach
● system approach
9. A firm concentrates on understanding ________________ of the
members of one segment and on developing and maintaining highly
specialized marketing mix.
● needs, motives and satisfaction ,
● demand , supply, motive
● pricing , leadership, focus
● flashcard , games , terms

10. Concentrated targeting is called a

● rifle strategy
● shotgun strategy
● roughpath strategy
● stock strategy
 11. It is a market approach based on serving two or more well –
defined market segment.
● Multisegment targeting strategy
● Undifferentiated targeting
● Differentiated targeting
● Concentrated trageting
12. Companies may only customize the ___________for each
target market
● promotional message
● place message
● price message
● product message
13. It occurs when sales of a new product cuts into sales of a firms
existing product.
● depletions
● Cannibalization

● detach
● merger
14. Differentiated marketing means concentrating on two or more
segments : true/ false
True

15. _____________________________ is the principal benefit of

sensory segment

● Flavour, product and appearance

● demand , supply, motive
● pricing , leadership, focus
● Price, Product, Promotion

16. __________is the sociables segment

 ● Smokers
● Rifles
● Cannabilization
● rooftops
17. Possible bases in the snack chip market could be usuage rate
or __________
● benefit sought
● product sough
● price sought
● place sought
18. Who has said “positioning is not what you do to the product , it
iswhat you do to the customers mind : AL RIES AND JACK TROUT

19. Positioning is arranging for a product concept to occupy a clear

,distinctive and desirable place.
● Positioning
● Place
● Price
● productivity
20. Specific differentiation strategies can be based on brand names
: true/false: TRUE

21. Changing distribution channel can be based on

● differentiation strategies
● undifferentiated strategy
● positioning strategy
● concentrated strategy
22. A positioning statement of a product service or a brand should
specify the position we want to occupy in the market : true/false :
TRUE
 Chapter 8: Product Concepts
1) Consumers do not just the physical product. They buy the benefits the
product offers and its packaging, quality, brand name, styling, _______
after-sales service and more

a) Guaranty
b) Warranty
c)Authority

d)Assurance

2) Products is the first and most important element of the marketing mix.
Product strategy calls or marking coordinated decision on products mixes,
products lines, brands, _________ and labeling

a) Case
b) Wrap
c) Packaging
d) Encase
3) The product idea encompasses many attributes of a physical good or
service: its features benefits, and quality level, as well as its _________ ,
installation requirements and instructions.

a) Additions
b) Trimmings
c) Decorations
d) Accessories

4) A Product is anything that can be offered to a market for ________,

acquisition, use or consumption and that satisfy a want or need.

a) Focus
b) Listen
c)Attention

d) Concentrate
5) Product means the need ___________ offering of firm.

a) Satisfying
b) Comfort
c)Humour

d) Happiness

6) The ___________ is the essential use-benefit, problem-solving service

that the buyer primarily buys when purchasing a product.

a) Augmented product
b) Expected product
c) Core benefit
d) Potential product

7) All products can be classified according to their durability, ________

goods, durable goods, and services.

a) Consumables
b) Soft Goods
c) Nondurable Goods
d) Less Lifespan

8) The _________ product is the basic version of the product.

a) Expected
b) Augmented
c) Potential
d) Generic
9) Classifying a firm’s products helps to guide the marketing mix strategy.
Developing product strategies is _________ somewhat because some
products classes require similar marketing mixes.

a) Simple
b) Easy
 c) Simplified
d) Made easy
10) The _______ product is the set of attributes and conditions that the
buyer normally expects in buying the product.

a) Expected
b) Augmented
c) Potential
d) Generic
11) A consumer product is purchased to satisfy an __________ wants. It
can be classified on the basis of the amount of effort that is normally
expended in shopping process.

a) Single
b) Individually
c) Individual
d) in dividable
12) The ________ product is additional services and benefits that the
sellers add to distinguish the offer from competitors.

a) Expected
b) Augmented
c) Potential
d) Generic
13) A _________ is an item that requires little shopping effort convenience
products are purchased quickly with little effort.

a) Availability
b) Usefulness
c) Convenience
d) Useful thing
14) The ________ product is the set of possible new features and services
that might eventually be added to the offer.

a) Expected
b) Augmented
 c) Potential
d) Generic

15) _______ are bought often, routinely, and without much thought.
Branding is used for many staples to make easier to remember and find.

a) Staples
b) Necessary
c) Basic
d) Branding
16) ________ Products are bought quickly, as unplanned purchase,
because of strongly felt need. They may be strongly affected by the
immediate situation.

a) Drive
b) Impulsion
c) Impulse
d) Resolve
17) __________ Products are purchased immediately when the need is
great.

a) Urgency
b) Emergency
c) Necessity
d) Extremity
18) ___________ Shopping products are products that consumers see as
being basically the same, and consumers shop for the lowest price

a) Equal
b) Consistent
c) Homogeneous
d) Comparable
19) ___________ products need promotion they are those that customers
don’t want yet or know that they can buy.
 a) unwanted
b) Undesirable
c) Unsought
d) Unrequested
20) The treatments affect buying, too. An _________ item is deducted as a
business expenses in the it is bought.

a) Cost
b) Amount
c) Payment
d) Expense
21) _________ are important but short-lived capital items, such as tools
and production equipment’s

a) Accessories
b) Decorations
c) Adornments
d) Attachments
22) _____ materials are unprocessed expense items that become physical
part of a physical good the firm makes.

a) not cooked
b) prepared
c) Unsorted
d) Raw

23) ____________ services are specialized services that support a firm’s

operations, like consoling services. Outsiders instead of employees provide
them

a) Professional
b) Sharp
c) Skilled
d) Trained
24) Service cannot be stored or transported to another location for sale.
The service not performed is gone forever is it _____________

a) Decaying
b) unstable
c) Perishable
d) Destructible

25) Time Factor is more important _________ may be key

a) Hurry
b) Rush
c) Headways
d) Speed
26) Full form of UPC

a) Universal Product Codes

b) Union Product Codes
c) Universal Price Codes
d) None of the above

27) Informational labeling is designed to help consumers in making ______

a) Proper product selection

b) Lower cognitive dissonance after the purchase
c) Both of the above
d) None of the above

28) Choose one which is not correct

Packaging functions are :

a) Containing and protecting product

b) Promoting products
c) Facilitating storage, use and convenience
d) Informational labeling
29) A _________ is the set of all product lines and individual products
that a sells.

a) product mix

b) product line

c) product item

d) product mix width

30) _____________ is an aesthetic product change rather than a quality

or functional modification.

a) product line extension

b) style modification

c) repositioning

d) product line contraction

31) ____________ is the practice of causing products to become obsolete

before they actually need replacement . it is often implemented through
style modifications.

a) style modification

b) Planned obsolescence

c) repositioning

d) quality modification

32) ____________ involves changing customer's perceptions of product.

a) Product line depth

b) repositioning

c) Modifying existing products

d) quality modification
33) _____________ is the practice of adding products to an existing
product line in order to complete more broadly in the industry

a) Product line extension

b) product line contraction

c) product modification

d) product line extension

34) ___________ is a name, term, symbol, design, or combination

thereof that identifies a seller's products and differentiates them from
competitor's products.

a) trademark

b) service mark

c) brand mark

d) brand

35) A __________ is that part of the brand that can be spoken, including
letters, words, and number. ujala, dettol, ayush, zen are brand names.

a) brand name

b) service mark

c) trade mark

d) branding

36) ___________is the trademark that refers to a service offering.

a) master brand

b) service mark

c ) branding

d) trade mark
37) ________ means that potential customers won't buy a brand unless its
image.

a) brand insistence

b) brand recognition

c) brand rejection

d) brand preference

38) _______________ means final consumers don't recognize a brand at

all, even though middlemen may use it for identification and control

a) brand familiarity

b) brand non recognition

c) brand rejection

d) brand insistence

Chapter 9: Developing and Managing

Products

1. Improvements or revisions of _____________ products result in new

products.
a. New
b. Existing
c. specialty
d. shopping
2. A ______ product can be new-to-the-world, to the market, to the
producer or seller, or to some combination of these.
a. Specialty
 b. convenience
c. existing
d. new
3. Lower-priced products are products that provide similar performance
to competing brands at a _________ cost.
a. Higher
b. moderate
c. lower
d. luxury
4. New product development is __________.
a. Expensive
b. cheap
c. economical
d. moderate
5. New product strategy is a subset of the organization’s ________
marketing strategy.
a. Incomplete
b. narrow
c. specific
d. overall
6. Customers are a tremendous source of ___________ ideas.
a. Old
b. new
c. worn
d. outdated
7. A ____________ is often more aware of customers needs than the
manufacturer because the distributor or dealer is closer to end users.
a. Competitor
b. customer
c. distributor
d. wholesaler
8. ___________ may have new products that can or should be a source
of new product ideas.
a. Wholesalers
b. customers
c. distributor
d. competitors
9. Applied research attempts to find ___________ applications for new
technologies.
a. Useful
b. incompetent
c. useless
d. disadvantages
10. ___________ are available to examine a business and
recommend product ideas.
a. Ignoring
b. answering
c. consultant
d. replying
11. __________ products offer both long-run consumer welfare
benefits and immediate customer satisfaction.
a. Desirable
b. disgusting
c. undesirable
d. unattractive
12. ________ products can turn into liabilities.
a. Harmless
b. safe
c. unsafe
d. secure
13. Attractive ideas must be refined into _________ product
concepts.
a. Untestable
b. moot
c. unprovable
d. testable
14. The business analysis is the _________ stage of the screening
process.
a. Second
b. third
c. first
d. fourth
15. A product concept is an elaborate version of the idea
__________ in meaningful consumer terms.
 a. Imprecise
b. expressed
c. uncertain
d. vague
1. What is one of the most important activities for any firm in the
contemporary marketplace?
a) Product Life Cycle
b) Product Lines
c) Product Process
d) New Product Development

2. New-to-the-world products are also called as?

a) Discontinuous innovations
b) Improvements
c) Revisions
d) Additions

3.Which is the process of converting applications for new technologies into

marketable products?

a) Research and Development (R&D)

b) Product Development
c) Product Strategy
d) Product Concept

4.When a group thinks of unlimited ways to vary a product or solve a

problem. What is this approach known as?

a) Group Discussion
b) Debate
c) Brainstorming
d) Creative Thinking
5. Which products offer Long-run Consumer Welfare?

a) Desirable Products
b) Salutary Products
c) Pleasing Products
d) Deficient Products

6.What increases dramatically as the new product idea moves into the
development stage?

a) Profits
b) Losses
c) Taxes
d) Costs

7.What is the final stage in the new product development process?

a) Commercialization
b) Development
c) Idea Generation
d) Screening

8.The process by which the adoption of an innovation spreads.

a) Adopter
b) Innovation
c) Diffusion
d) Observation

9.It is the degree to which a product can be tried on a limited basis.

a) Trialability
b) Observability
c) Compatibility
d) Complexity
10. During this stage the product is offered in more sizes, flavors, and
models.

a) Maturity Stage
b) Decline Stage
c) Introductory Stage
d) Growth Stage

11. A stage of the product life cycle when new products replaces the old.

a) Sales Decline
b) Profit Decline
c) Market Growth
d) Market Maturity

12.Currently accepted or popular style.

a) Fad
b) Fashion
c) Concept Testing
d) Market Introduction

13. Which is the degree of failure for a product?

a) Poor match between product features and customer desire

b) They do not offer any discernible benefit
c) Overestimation of Market Size
d) Absolute failure when a company actually loses money

14. This is signalled by a long-run drop in sales.

a) Maturity Stage
b) Growth Stage
c) Decline Stage
d) Introductory Stage

15. Which brand had moved rapidly from introduction to growth?

a) Close Up
b) Nescafe
c) L’Oréal
d) Pepsodent

Question 1. Product life cycle is ………………………………………

a) The stages of established product idea goes through from beginning

to end
b) The stages of new product idea goes through from beginning to
end
c) The stages of branded product idea goes through from beginning to
end

Question 2. The market introduction of the product line is a stage

…………………………..

a) When sales are average

b) When sales are low
c) When sales are high

Question 3. Market growth is a stage of product life

cycle………………………….

a) Industry sales grow slow but profit rise

b) Industry sales grow fast and profit start falling in the beginning
c) Industry sales grow fast but profit rise and then start falling

Question 4. Market maturity is a stage of a product life cycle when

……………..

a) Industry sales level start and no competition

b) Industry sales level at peak and high competition
c) Industry sales level off and tough competitions

Question 5. Sales declined is a stage of the product life cycle when

………………………
 a) New product replace the old
b) New product is launched
c) Old products making profits

Question 6. The rate of declined stage is governed

by…………………………

a) How consumer frequently uses the product

b) How rapidly consumer tests changes
c) How fast the product is out of the market

Question 7. Brand manager handles …………….

a) A specific product
b) Production
c) Both

Question 8. Being early bird in market is

a) Risky
b) Profitable
c) None of these

Question 9. How to protect innovation ………………….

a) By patent
b) Trade mark
c) Litigation

Question 10. Fashion defines as …………………….

a) Trend setter
b) Popular style
c) Consumer choice

Question 11. Concept testing is ……………………….

a) Reaction from customer

b) Reaction from retailer
c) Both
Question 12. Product development is ………………………….

a) An essential activity to stay alive in business

b) To fulfil customer’s need
c) To satisfy dealer and retailer

Question 13. Arrange the life cycle of product according to stages

a) Maturity
b) Growth
c) Decline
d) Introduction

Ans: d, b, a, c

Question 14. Common mistake in growth stage

a) Focus on current profits

b) Ignoring long terms competitive trends
c) Customer satisfaction

Question 15. The declined stage is…………………..

a) High profit is business

b) Long run drop in sales
c) Loss in profits

Chapter 10: Integrated Marketing

Communications

1. The Promotional Mix includes.

A. Public relations
B. Personal selling
C. Sales promotions
D. All of these
2. Which is the main route to building a quality, differentiated image for a
product.
A. Public relation
B. Advertising
C. Sales promotions
D. Personal selling

3. Which promotional mix is often used during both the introduction and
maturity stage of the product life cycle.
A. Sales promotions
B. Advertising
C. None of these
D. Public relations

4. Which is the process by which we exchange or share meaning

through a common set of symbols
A. Advertising
B. Personal selling
C. Communication
D. All of these

5. Telivision or newspaper are examples of

A. Mass communication
B. Interpersonal communication
C. Decoding
D. Sales promotion

6. The conversion of the sender’s ideas and thoughts into a message is

the process of
A. Decoding
B. Encoding
C. Sender
D. All of these
7. The process of the interpretation of the languages and symbols sent
by the languages and
Symbols sent by the source through a channel
A. Decoding
B. Encoding
C. None of these
D. Sender

8. Goal of promotion is to
A. Encoding, decoding & feedback
B. Inform, persuade &remind
C. All of these
D. None of these

9. Which promotions has the aim of to convince the customers to buy the
company's brand rather thancompetitors brand
A. Persuasive promotions
B. Reminder promotions
C. Informative promotions
D. All of these

10. Maturity stage of product life cycle includes

A. Informative promotions
B. Reminder promotions
C. Informative promotions
D. None of these

11. A classic model for reaching promotional goal is called

A. Desire concept
B. Aida concept
C. Aiad concept
D. Action concept

12. AIDA involves

A. Action
B. Interest
 C. Both a & b
D. None of these

13. The stage in which promotional strategy is designed to build brand

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

14. Most effective routine decisions are

A. Personal selling & advertising
B. Advertising & sales promotion
C. Advertising & public relation
D. None of these

15. The strategy which uses aggressive personal selling is

A. Push strategy
B. Pull strategy
C. Both a & b
D. None of these

16. The strategy which uses aggressive personal selling is

A. Push stretegy
B. Pull strategy
C. Both a & b
D. None of these

17. Early adopters are often.

A. Innovation
B. Opinion leaders
C. Laggards
D. Early majority

18. A group of adopters who are cautious about new ideas

A. Early majority
 B. Early adopters
C. Innovators
D. Late majority

19. Which demand is used for companies own brand rather than a
product category
A. Primary demand
B. Selective demand
C. Task method
D. All of these

20. Which method is used to developing a budget basing the budget on

the job to be done
A. Task method
B. Selective method
C. All of these
D. Primary method

1. ……………… is communication by marketers that informs,

persuades, and reminds potential buyers of a product in order to
influence an opinion or elicit a response.

a.)Advertising
b.)Promotion
c.)Promotional strategy
d.)Sales Promotion

2. There are …………………. elements of promotional mix interact in a

different manner with the communication process.

a.)One
b.)Two
c.)Three
d.)Four
 3. .....................is an impersonal one-way mass communication about a
product or organization that is paid for by the person.

a.)Advertising
b.)Promotion
c.)Promotional strategy
d.)Sales Promotion

4. ………………… is the process by which we exchange or share

meanings through a common set of symbols.

a.) Communication
b.) Transmission
c.) Speaking
d.) None of above

5. Interpersonal communication is extremely effective because it is

immediate and allows ………………….. feedback.
a) One-way
b) Two-way
c) Three-way
d) four-way

6. The ……………… is the originator, or source, of the message in the

communication process.

a.) Receiver
b.) Sender
c.) Encoder
d.) Decoder

7. …………………. Is anything that interferes with, distorts, or slows the

transmission of information.
a.) Media communication
b.)Noise
c.) Feedback
d.) Nonpaid communication

8. ………………………is the conversion of the sender’s ideas and

thoughts into a message, usually in the form of words or signs.

a.) Decoding
b.) Encoding
c.) Message channel
d.) All the above

9. …………………… could be the target audience and is the person

who decodes the message.

a.) Sender
b.) Receiver
c.) Encoder
d.) Decoder

10. AIDA stands for

a.)Attention-Interest-Desire-Action
b.) Agricultural-Income-Disaster-Assistance
c.) Advanced-Interface-Database-Application
d.) Appreciative-Inquiry-Development-Activities

11. ………………. the message: how the target audience interprets

the message.
a.)Decoding
b.)Encoding
c.)Message Channel
d.) All the above

12. ……………………….. the first group to adopt new products.

a.)Innovators
b.)Early adopters
c.)Early majority
d.)All the above.

13.………………. prefer to do things the way they’ve been done in the past
and are very suspicious of new ideas

a.) Early adopters

b.) Early majority
c.) Laggards
d.) None of the above

14.IMC stands for

a.)Indian Medical Council

b.)Incident Management Centre
c.) Integrated Marketing Communication
d.) Instrument Meteorological Conditions

15.Product lifecycle consists of how many phases:

a.)two
b.)three
c.)four
d.)All of the above

Chapter 11: Advertising and Sales

Promotion Decisions
1] Advertising is a form of
a) impersonal, paid communication
b) personal and unpaid communication
c) personal and paid communication
d) fully paid communication

2] New brands with a small market share tend to spend proportionately

more for advertising and sales promotion than those with a large
market share.
a) True
b) False

3) The two major types of advertising are :

a) industrial and product
b) consumer and product
c) corporate and consumer
d) institutional and product

4) Institutional advertising is used

a) to advertise about a company
b) to build the image of a company
c) to promote a product of a company
d) to build an image of an industrial product

5] Advocacy Advertising is a way for corporations to

a) advertise their products
b) express their views on controversial issues
c) promote new products
d) Use various channels to advertise their products

6] The DAGMAR Approach is

a) Defining Advertising Goals for Measured Advertising Results
b) Definite Advertising Goals and Measures for Advertising Records
c) Define Achievable Goals and Measures in Adverting and Research

7] Newspaper Advertising has the advantage of

 a) all the options
b) being cost effective
c) larger coverage
d) geographic flexibility and timeliness

8] An arrangement in which the manufacturer and retailer split the

costs of advertising the manufacturer’s brand is called.

a) Deal advertising

b) Cooperative advertising

c) Brand Advertising

d) None of the above

9] Magazines are often targeted to

a) large markets

b) urban area

c) narrow markets

d) small market

10] Television advertising cost is

a) Very expensive

b) Very minimal

c) cost effective

d) moderate

11] Popular internet sites and search engines generally sell advertising
space called

a) logos

b) banners
 c) flags

d) none of the above

12] The Media Mix is the combination of media to be used for

a) promotional campaign

b) product launch

c) research

d) sales

13] With a continuous media schedule, advertising runs steadily

throughout the advertising period.

a) True

b) False

14] In a flighted media schedule the advertiser schedules ads

a) occasionally

b) heavily every two weeks

c) daily

d) once

15] Sales promotion is an activity in which a short term incentive is

offered to

a) manufacturers

b) agents

c) traders

d) consumers

16] The primary objectives of sales promotion is to

a) increase trial purchasing

b) consumer inventories

c) repurchasing

d) all of the above

17] Consumer forms of sales promotion includes

a) coupons & rebates

b) contest and sweepstakes

c) sampling

d) all the above

18] Trade Sales promotion is directed to members of the marketing

channel such as

a) wholesalers

b) retailers

c) distributors

d) all of the above

19] Advertising provides the customer with a reason to buy; sales

promotion provides an incentive to buy.

a) true

b) false

20] How much %age Consumer product manufacturers spend on

advertising budget

a) 50%

b) 25%

c) 10%
d)75%

21] A certificate that entitles consumers to an immediate price

reduction when they purchase an item is

a) cashback offer

b) discount card

c) coupon

d) none of the above

22] _______ is popular for some food and household products but very
expensive for the marketer

a) Sampling

b) discounts

c) freebies

d) promotion

23] A price reduction offered by manufacturers to intermediaries

a) discount

b) trade allowance

c) loading

d) rebate

24] Intermediaries receive _______ as a bonus for pushing the

manufacturer’s brand

a) gifts

b) bonus

c) push money
 d) incentives

25] The objective of sales promotion centre around

a) Immediate purchase

b) visual display

c) fast sales

d) none of the above

Chapter 12: Distribution Decisions

The set of interdependent organizations that facilitate the transfer of
ownership as products move for producer to business user or consumer
is called

a. Channel of distribution
b. Channel of function
c. Channel of transfer
d. Channel of business

1. Place is the part of marketing mix that deals with making goods and
services available in the right location at the right time.

2. When a product is produced and the consumer is not ready to purchase

it is called

a. Spatial discrepancy
b. Temporal discrepancy
c. Quality discrepancy
d. None of the above
3. Channel members are needed to provide utilities such as ___

a. Time, Place and Possession utility

b. Form utility
c. Time, Place, Form and Possession utility
d. None of the above

4. _______ is the set of interdependent organizations that facilitate the

transfer of ownership as products move from producer to business user
or consumer.
a. Marketing channel
b. Channel of distribution
c. Both A and B
d. None of the above

5. ________is often used when the retailer is large and can buy in large
quantities direct from the manufacturer.
a. A Retailer channel
b. Wholesaler channel
c. Both A and B

6. Wholesalers purchase large quantities which are sold to retailers.

a. True
b. False

7. Clearing and Forwarding agents/ Brokers take title to goods.

a. True
b. False

8. ____ is distribution aimed at having a product available in every outlet

where target consumers might want to purchase it.
a. Selective distribution
b. Intensive distribution
 c. None of the above

9. What are the social dimensions of channels

a. Channel Power, Partnering
b. Channel control
c. Channel Power, Control, Leadership
d. Channel Power, Control, Leadership,Conflict, Partnering

10. ____is the transporting, storing and handling of goods to match target
customer needs with a firms marketing mix.
a. Physical distribution
b. Logistics
c. Both A and B

11. What are the factors affecting distribution service levels?

a. Back order procedures
b. Accuracy in filling orders
c. Defect free deliveries
d. All of the above

12. An inventory control system that manages inventory from the supplier
to the manufacturer is called___
a. Materials requirement planning – MRP
b. Materials Management
c. Distribution resource planning
d. Both A and B

14 . Avon, Amway, and Tupperware use which of the following forms of

channel
distribution?

a. direct marketing channel

b. indirect marketing channel
c. forward channel
d. fashion channel

15. From the economic system’s point of view, the role of marketing
intermediaries is to transform:

a. raw products into finished products.

b. consumer needs into producer needs.
c. consumer needs and wants into product desires.
d. assortments of products made by producers into the assortments
wanted by
consumers.

16. _____ occurs among channel members on the same level.

(a) Vertical channel conflict

(b) Horizontal channel conflict
(c) Multi channel conflict
(d) None of the above

17. A distribution channel moves goods and services from producers to

consumers. It
overcomes the major time, place, and ______________ gaps that separate
goods and
services from those who would use them.

a. possession
b. profit
c. image
d. psychological

18. Through their contacts, experience, specialization, and scale of

operation,
______________ usually offer the firm more than it can achieve on its own.

a. manufacturers
b. producers
c. direct marketers
d. intermediaries
19. Transporting and storing goods is part of which of the following
marketing channel
functions?

a. negotiation
b. physical distribution
c. contact
d. matching

20. Who sells to the customers?

(a) Semi wholesalers

(b) Wholesalers
(c) Retailer
(d) Distributor

21. The benefits of marketing channels are ____

(a) Cost saving

(b) Time saving
(c) Financial support given
(d) All of above

22. _______________ is a layer of intermediaries that performs some work

in bringing
the product and its ownership closer to the buyer.

a. A direct marketing channel

b. An indirect marketing channel
c. A channel level
d. A channel switching system

23. The _____ integrates and links all of the components of the supply
chain.
a. order processing system
b. inventory control system
c. logistics information system
d. materials handling system

24. A ______________ is a set of interdependent organizations involved in

the process of
making a product or service available for use of consumption by the
consumer or
business user.
a. retailer
b. wholesaler
c. distribution channel
d. middleman

25. A large marketing intermediary, but not as large as a sole selling agent
in terms of size, resources and territory of operation is known as ______
a. Wholesaler
b. Sole selling agent
c. Direct marketing channel
d. Semi-wholesalers
CHAPTER 13

1.Supporting sales people who provide technical assistance to order

oriented salesperson.

A.technical

b.team selling

c.missionary sales people

d.none of the above.

2) Seeking possible buyers with a well-organized sales presentations
designed to sell a good, service,or idea.

A. Order-getting.

b.order takers.

c.order getters

d.order taking.

3) the importance and role of personal selling.

a.personal selling requires strategy decisions.

b. Personal selling is important.

c. Helping to buy is good selling.

D. All of the above.

4) ________ is the effort to capture media attention.

A. Publicity.

b. New product publicity

c. Product placement

d. None of the above.

5) ______offer above salary plus an incentive, usually a bonus based on

sales.

A. Combination system

b.straight salary
c. Straight commission

d. None of the above.

6) each phase of the AIDA model can also be correlated to stages found in
how advertising works.

* attention matches well with the awareness stage.

* interest correlates with knowledge and liking.

* desire matches best with prefernc and conviction.

* action stage equates bestto the purchase portion.

A. Yes

b. No

7) _____ or______is the identification of those firms and people most likely
to buy the seller's offerings.

a. Sales process or sales cycle

b. Referral or networking

c. Cold calling

D. Lead generation or prospecting.

8) salesperson concerned with establishing relationships with new

customers and developing new business.

A. Order getters

b.order getting

c. Order taking
d. Supporting.

9) advantage of personal selling.

a. Salesperson represent the whole company and customers too.

B. Personal selling can be directed to specific qualified prospects.

c. Helping to buy is good selling.

d. None of the above.

10) prior to approaching the customers, the salesperson should learn as

much as possible about the prospect organizations and it's buyers this
process is called.

a. Proposing solutions.

b. Approaching

C. Preapproach

d. None of the above.

Chapter 13: Personal Selling

and Sales Management
1) Which is thedirect communication between a sales
representative and one or more prospective purchasers
a) Personal Selling
b) Sales Promotion
c) Relationship selling
d) None of the above

2) Personal selling requires

a) Strategy Decision
b) Strategy Planning
c) Strategy Information
d) All of the above

3) People who represent the whole company-and customers too

are
a) Sales people
b) Relationship Selling
c) Traditional Selling
d) Leader generator

4) __________________ aids in market information function as

well Sales force
a) Sales people
b) Direct marketing
c) Indirect Marketing
d) Sales Force

5) Personal selling is most effective in obtaining a

___________________ and ______________a satisfied
customer.
a) Profit & Income
b) Revenue & expenditure
c) Sales & gaining
d) Profit & loss

6) Which type of selling is transactional focused

a) Modern Selling
b) Tradition Selling
c) Moderate Selling
d) None of the above

7) Salespeople practicing _______________spend more time

understanding prospect needs and developing solutions to
meet those needs.
a) Modern Selling
b) Relationship Selling
c) Traditional Selling
d) Personal Selling

8) _______________is the set of steps a salesperson goes

through to sell a product or service.
a) Introduction Process
b) Maturity Process
c) Sales Process or Sales cycle
d) Technical Process

9) Steps of selling follow the Concept

a) AIBA
b) AIDA
c) ABC
d) Lead Generation

10) A____________________is a recommendation from a

customer or business associate
a) Referral
b) Suggestion
c) Information
d) Networking

11) ______________ is finding out about potential clientsfrom

friends, business contacts, coworkers, acquaintances, and
fellow members
a) Order Getters
b) Networking
c) Cold calling
d) Order taking
12) _______________________Occurs when the
salesperson approaches potential buyers without any prior
knowledge of the prospects needs or financial status.
a) Networking
b) Prospecting
c) Cold Calling
d) Consultive selling

13) ___________________ is a written document or

professional presentation that outlines how the company’s
product or service will meet or exceed the client’s needs.
a) Quotation
b) Sales format
c) Sales proposal
d) All of the above

14) The ________________is the face to face explanation of

a product’s benefits to a prospective buyer
a) Sales Promotion
b) Sales Proposal
c) Induction
d) None of the above

15) ______________ is the heart of the selling process

a) Sales Presentation
b) Networking
c) Direct Selling
d) Cold Calling

16) _________ can betermed psychological or logical

a) Objections
b) Motivation
c) Following Up
d) Buying power
17) ______________often plays a key role in the closing of
the sale
a) Negotiation
b) Concession
c) Pricing
d) All of the above

18) The Secret to closing is to recognize what fits this

customer and __________
a) Situation
b) Status
c) Technical Specialist
d) Sales management

19) Many sales people use ___________________ technique

which emphasizes is on developing and maintaining close ties
and communication between companies.
a) Traditional Management
b) Consultive Management
c) Personal Selling
d) Indirect Selling

20) ____________ should be clear, Precise, Measurable and

time specific.
a) Marketing Goals
b) Pricing Goals
c) Product Goals
d) Sales Goals

21) _____________________are most commonly organized

by geographic regions, product lines, marketing function
performed, market industry individual client or account.
a) Sales Department
b) Accounts Department
c) Purchase Department
d) Marketing Department
22) Sales force __________________ should be based on an
accurate, detailed description of the sales task as defined by
the sales manager.
a) Recruitment
b) Selection
c) Interview
d) None of the above

23) The ________________ system provides salespeople

with a specified percentage of their sales revenues income.
a) Straight Commission
b) Straight Salary
c) Bonus
d) All of the above

24) The __________________ system compensates

salespeople with a stated salary regardless of sales
productivity.
a) Incentives
b) Bonus
c) Combination Strategy
d) Straight Salary

25) __________________offera base salary plus an

incentive, usually a bonus based on sales.
a) Combination System
b) Straight Salary
c) Straight Commission
d) Incentives

26) _____________________ emphasizes speed and

accessibility
a) Automation
b) Modernization
c) Utilization
d) Globalization

27) ______________________ evaluate public attitudes and

identifies issues that may elicit public concern and executes
programs to gain understanding and acceptance
a) Public Relations
b) Sales Promotion
c) Advertising
d) Prospecting

28) __________________ is the effort to capture media

attention.
a) Publicity
b) Public Relation
c) Networking
d) All of the above

29) _______________________is a component of the

marketing mix.
a) Public Relation
b) Prospecting
c) Leader generation
d) Selection

30) Major public relations tools are new product publicity and
_______________________
a) Product Introduction
b) Product Placement
c) Product Pricing
d) Product Promotion

Chapter 14: Pricing Decisions

1. Pricing can be a tool for trade promotions

 a. Pricing Policy
b. Sales-oriented pricing objectives
c. Distribution strategy
d. Promotion strategy

2. Large customers of manufacturers often make specific pricing

demands on
a. Ticketing, packing, and shipping requirements
b. Guaranteed profit margins
c. Exclusive channels
d. Both A and B
e. All A, B and C

3. When marketing manager use high prices to enhance the image of

their product in some cases is known as________
a. Prestige pricing strategy
b. Pricing limits
c. Promotion strategy
d. Distribution strategy

4. The target return on investment (ROI) sometime called the firms’

return on total assets is the objective of
a. Sales-oriented pricing objectives
b. Profit-oriented pricing objectives
c. Pricing objectives
d. Status quo pricing objectives

5. The method used for setting prices is___________

a. Keystoning
b. Maintenance costs
c. Psychological pricing
d. Choose a price strategy
6. The attempt to attract customers by selling a profit near cost or even
below cost while they are at the store is refer__________
a. Price lining
b. Leader pricing
c. Odd-Even pricing
 d. Bait pricing

7. The strategy that seeks to maintain existing prices or simply to meet

the competition by planning rather than monitoring competitors prices
is called________
a. Status quo pricing
b. Pricing policy
c. Pricing objectives
d. Profit maximization

8. Estimate demand, costs and profits are the main steps of

a. Demand oriented pricing approaches
b. Pricing limits
c. Demand of large customers
d. Price setting

9. When supply and demand are equal, a state called Equilibrium is

achieved.
a. True
b. False

10. Price generally being lower and stabilize as the product enters
the _________and competitor enter the market
a. Introductory Stage
b. Maturity Stage
c. Growth stage
d. Decline Stage

11. ______________is the change in total costs associated with a

one unit change in output.
a. Marginal Cost
b. Fixed Cost
c. Variable Cost
d. Both B and C
.
12. Supply is the quantity of a product that will be sold in the market
at various process for a specific period.
a. True
b. False

13. If the price goes

down and revenue goes up, demand is _________
a. Elastic
b. Inelastic
c. Unitary Elasticity.
d. Unitary Inelastic

14. AVC Stand for

________
a. Additional Voluntary Contribution
b. Average Variable Courseweb
c. Average Variable Cost
d. Automatic Volume Control

15. ________ is the most

visible variable to the customer and is often considered by them as
the most flexible variable for the marketers.
a. Product
b. Place
c. Price
d. Promotion

16. While product, price,

personal selling, promotion and distribution all contribute towards
sales volume, it is only price which determine profit for the products.
a. True
b. False

17. Pricing enables the

marketer to segment markets, definite products, create customer
incentives, and even send signals to competitors.
 a. Pricing strategy
b. Promotional strategy
c. Distribution strategy
d. Prestige pricing strategy

18. ____________is a
critical marketing element, especially in markets characterized by
monopolistic competition or oligopoly.
a. Price
b. Product
c. Place
d. Both A and C