Question 1: A
company that follows the marketing concept philosophy should:
serve all customer needs at all costs.
understand that the customer is always right.
understand that there is no such thing as a
bad customer.
serve only profitable customers.
Question 2. Which of
the following statements supports technology driven approach to the
marketplace?
Products should be tested and proven before
releasing them.
Providing technology to salespeople can help increase
volumes.
Quality improvement in products can result in
customer value.
Customer information systems can be used to
increase sales.
Question 3. Which of
the following is a disadvantage of an over-engineered product?
The quality of the product will be low.
It is less robust for its application.
It is associated with operational problems.
The product will have unwanted features.
Question 4. Which of
the following is the key difference between traditional value chain and the new
versions of the value chain?
The value chain starts with the customer in
the new perspective.
Customer needs are ignored in traditional
value chain.
Traditional versions are not focused on core
competencies and assets.
Outbound marketing chain is used in the new
perspective.
Question 5. A few
customers cost more to serve than the revenues they generate. Identify the most
appropriate way to handle these customers.
Attempt to turn away the unprofitable customers.
Provide services at a discounted rate to these
customers.
Avail preferential treatment to these
customers.
Design specific marketing messages for these
customers.
Question 6. Marketing
plans should be written because:
it provides a concrete history of the
product’s strategies.
it is mandatory for a registered firm to have
a written marketing plan.
it considers the external environment alone to
make decisions.
written marketing plans can be distributed to
all stakeholders.
Question 7. Which of
the following organizational structures will be suited for a company that sells
business to business products?
Market-based structure
Product-focused structure
Classic brand structure
Internationally focused structure
Question 8. A company
takes a product or service that is widely marketed and develops a system for
customizing it to each customer’s specifications. This is referred to as:
mass customization.
selective marketing.
user modeling.
behavioral targeting.
Question 9. Which of
the following refers to multi-channel distribution of products?
Clicks and mortar
Buzz marketing
Organized retailing
Viral distribution
Question 10.
Product-focused organizational structure is not suited for:
business-to-business products.
retail products.
consumer durables.
internationally focused products.
Question 11.
Marketing managers use a market penetration strategy to target:
individuals who have never used the product or
service.
offshore customers who have a need for the
product or service.
individuals who are buying your product or
service or a direct competitor’s.
individuals who buy closely-related products
or services.
Question 12. Which of
the following is a characteristic of a competitive advantage?
It makes the product more accessible for the
customers.
It generates customer value.
It makes the product more user-friendly.
It increases cost of the product.
Question 13.
Customers who have purchased your product or service are familiar with its
benefits. Assuming that your customers enjoyed the consumption experience,
there is often potential left in the market from the current customers who
could be persuaded to buy more. You, as a marketing manager, should therefore
prioritize:
market development strategy.
diversification strategy.
product development strategy.
market penetration strategy.
Question 14.
Firms can compete on price if they:
focus on market development strategy.
focus on global raw material sourcing.
focus on controlling costs.
focus on merging or acquiring a competitor.
Question 15.
Identify the correct statement about market development strategy.
It is less risky than market penetration
strategy.
It is usually implemented in markets where
growth rate is slowing.
It persuades current customers to buy more
products.
It is cheaper than implementation of market
penetration strategy.
Question 16. Most
likely, marketing managers would like to be first in the market because:
it keeps out competition.
the first mover establishes awareness of its
product as the prototype.
it leads to cost reduction over the product
life cycle.
it leads to quality improvements over the
product life cycle.
Question 17.
Which of the following statements is true regarding the maturity stage of the
product life cycle?
During this stage, the market grows rapidly.
Usually, competition is most intense in this
phase.
Many new competitors enter the market.
This stage comes after the introduction stage.
Question 18. In
the growth stage of the product life cycle, the riskiest move by a follower is
to:
imitate the leader by developing
“me-too” products.
leapfrog the competition.
exit quickly and invest in some other product
with long-term potential.
fortify its position as number two or three.
Question 19.
Which of the following statements is true about the decline stage of the
product life cycle?
During this stage, the market grows rapidly.
Many new competitors enter the market.
Usually, competition is most intense in this
phase.
Product category sales decrease at this stage.
Question 20. When
marketing mangers see that the sales curve has flattened out and few new buyers
are in the market, they know that they are in this stage of the product life
cycle. Identify the stage.
Introduction stage
Growth stage
Maturity stage
Decline stage
Module 2 quiz
1. Which of
the following types of qualitative research explores the reasoning behind
customer purchase behavior?
Phenomenological research
Exploratory research
Clinical research
Behavioral research
Question 2. Which
of the following is an example of an internal source of secondary data?
A trade publication
A past marketing plan
A trade association
An academic publication
Question 3. Personal
interactions with survey respondents could lead to answers that would not be
given otherwise. This gives rise to the potential for:
Nonresponse bias
Tolerance bias
Focus bias
Interviewer bias
Question 4. Which
of the following is an external secondary data source?
Marketing plans used previously
Call reports submitted by salespeople
Past transaction information from the
accounting department
Trade publications
Question 5. The
most common misuse of focus groups is attempting to use them to:
generate research hypothesis for further
study.
brainstorm for new product ideas.
draw general conclusions.
carry out concept testing.
Question 6. The
estimate of market potential is best described as:
the number of current customers times the
awareness ratio.
the number of current customers times the
potential buying rate.
the number of potential customers times the
potential buying rate.
the number of potential customers multiplied
by the current buying rate.
Question 7. Panel
conditioning refers to a problem where:
panel members do not remain on the panel.
panel members do not represent the underlying
population.
being on a panel changes a member’s behavior.
attitudes and preferences of the panel members
change over the time.
Question 8. Which
of the following best describes the degree to which experimental results can be
generalized to the real world or, more generally, to the target population?
Internal validity
Interpolation
Flexibility
External validity
Question 9. Which
of the following forecasting methods uses certain macroeconomics variables to
forecast changes in the economy, based on the fact that changes in these
variables occur before changes in the economy?
Correlation analysis
Exponential smoothing
Leading indicators
Regression analysis
Question 10. Which
of the following methods of collecting data has the highest response rate?
Personal interviews
Telephone interviews
Internet
Question 11. ________
competition can destroy entire product categories when a major innovation
occurs, so it requires attention, especially for long-run planning.
Product form
Product category
Generic
Budget
Question 12. Which
of the following refers to a group of products that are functional substitutes
of each other?
An industry
A product variant
A product type
A product class
Question 13. Which
of the following best describes the type of information a marketing manager
would need to know when determining the competitor’s major objectives?
Whether they are pursuing growth or
profit-related objectives
The demographics of the competitors’ employees
The demographics of the competitor’s CEO
The contributions to nonprofit organizations
in the previous year
Question 14. A
__________ approach classifies competitors based on customer attitudes and
behaviors.
customer-based
supply-based
market-based
demand-based
Question 15. __________
is the percentage change in one product’s sales due to a percentage change in a
marketing variable (such as price. for another product.
Reverse-elasticity
Demand-elasticity
Cross-elasticity
Supply-elasticity
Question 16. Which
of the following statements is true regarding scenario planning?
This method involves extrapolating historical
sales data into the future.
It can be used only when a lot of data is
available for analysis.
This method involves creating alternative
scenarios of the future.
It is useful when many nonquantifiable factors
affect outcomes in the market.
Question 17. Which
of the following primary sources is excellent in determining competitor sales
pitches, pricing, and other aspects of their activity?
Employees
Sales force and customers
Suppliers
Internet newsgroup
Question 18. In game theory, __________ is a graphic
depiction of the rewards or costs to each player for each possible combination
of strategies.
communication matrix
responsibility matrix
payoff matrix
perceptual matrix
Question 19. Coke and bottled water brands continue to run
sales promotions and compete strongly on price. Clearly, the best solution
would be for neither to promote which would jointly maximize their profits.
However, both are worried that if they stop promoting while the other does not,
they will suffer. As a result, the equilibrium is heavy promotion by both and
lower total profits. With reference to the game theory, this is an example of:
generic equilibrium.
prisoner’s dilemma game.
leader—follower game.
best strategy game.
Question 20. Which of the following best describes a
sophisticated, long-term version of the simulation process?
Conjoint analysis
Scenario planning
Multidimensional scaling
Regression analysis
Module 3 quiz
Question 1. __________
is the concept that a customer will adopt an innovation only if he or she
considers it to be an improvement over the current product being used to
satisfy the same need.
Observability
Planned obsolescence
Relative advantage
Need recognition
Question 2. Which
of the following terms best describes the set of products that the customer has
no intention of buying?
Evoked set
Inert set
Purchase set
Latent set
Question 3. Economic
theory suggests that rational customers will collect information only to the
point at which:
the marginal benefit of obtaining the
information in terms of incremental value to making a choice equals the
marginal cost.
the total benefit of obtaining the information
equals the total cost after purchasing the product.
they can no longer pay for syndicated
information.
the marginal benefit of obtaining the
information in terms of incremental value to making a choice is less than the
marginal cost.
Question 4. Craig
is the CMO of Speedoconnect, an Internet Services Provider that has been
consistently losing market share for the past three quarters. Craig conducts a
customer analysis to understand the weaknesses in the company’s service
operations. Which of the following groups is most critical in this customer
analysis?
Competitors’ customers
Former customers
Potential customers
Current customers
Question 5. The
__________ model is any model in which a low score on one attribute can be
offset by a higher score on another.
cluster
segmentation
compensatory
attribution
Question 6. In
regard to the adoption of new technologies, the extent to which customers are
uncertain about the consequences of an action is termed as:
systemic risk.
pure risk.
perceived risk.
speculative risk.
Question 7. Which
external source of information provided by the marketing manager is considered
to be the most credible?
Sales presentations
Advertisements
Sales orientation
Word-of-mouth
Question 8. The
seller of industrial products is part of the buyer’s __________ and must
provide timely inventory replenishment, service and maintenance, spare parts,
and efficient order handling.
supply chain
communication channel
service chain
promotional program
Question 9. __________
are the set of descriptor variables based on the newness of the purchasing
situation.
Demographics
Operating variables
Situational factors
Buy classes
Question 10. When
a firm markets a product or service to another organization, it is called:
consumer marketing.
industrial marketing.
market segmentation.
consumer behavior.
Question 11. Usually in this stage of the buying process,
benefits rather than specific product or service characteristics are stated.
Determine the characteristics
Establish specifications
Search for and qualify potential suppliers
Request proposals
Question 12. Which
of the following stages in a buying sequence will result in a specific option
or set of options from which price, delivery, system compatibility, and other
characteristics can be determined?
Determine the characteristics
Establish specifications
Search for and qualify potential suppliers
Request proposals
Question 13. A company recognizes the need for a new system
to handle customer enquiries. During the buying process, who is most likely to
be concerned with the return on investment (ROI)?
The initiator
The user
The decider
The purchaser
Question 14. According to the classification system for
global organizational culture as developed by Hofstede, the degree to which
employees are threatened by ambiguity is known as:
power distance.
uncertainty avoidance.
ambiguity tolerance.
long-term orientation.
Question 15. Which of the following information is contained
in a customer information file (CIF)?
Description of competitors
Contact history of the customers
Rates charged by key suppliers
Rules and regulations affecting the business
of the organization
Question 16. A
large amount of evidence indicates that merely satisfying customers:
is not enough to keep them loyal to your
company or product.
leads to increased purchase by the customers
over time.
attracts more customers through word of mouth.
allows you to reduce advertising expenditure
over time.
Question 17. Which
of the following is a primary customer-based metric?
Market share
Sales volume
Return on investment
Lifetime duration
Question 18. Lands’
End offers tailored clothing on its Web site, allowing one to choose a collar,
sleeve style, pocket, etc. This is an example of:
mass customization.
niche marketing.
differential marketing.
demographic marketing.
Question 19. Retained
customers __________ than switchers.
are more expensive to serve
are more profitable
have lower lifetime customer value
are more price sensitive
Question 20.A back-of-the-envelope approach to calculating
lifetime customer value (LCV) is a margin “multiple,” which can be
used to multiply the current margin generated by each customer to estimate the
LCV. This multiple is shown by the formula: r/(1 + i + r) In this formula,
“r” stands for:
retention rate for the product.
failure rate for the firm’s products.
rate of return of the product by the
customers.
the reliability of the product.
Module 5 quiz
Question 1:Development
costs are best described as:
costs that are associated with individual
products that do not vary with sales volume.
expenses involved in bringing new products to
the market.
costs that must ultimately be covered by
revenues from individual products, but are not associated with any one product.
the per-unit costs of making the product or
delivering the service.
Question 2. Which
of the following best describes the pricing objective typically used by
regulated utilities such as gas and electricity?
Penetration pricing
Skimming
Investment pricing
Competitive pricing
Question 3. High buyer power tends to __________ prices, and
high supplier power __________ the floor beneath which prices cannot be set.
inflate; raises
inflate; lowers
depress; raises
depress; lowers
Question 4. Which
of the following statements is true about value pricing?
It is also known as penetration pricing.
It gives customers more value than they expect
for the price paid.
It gives the seller most of the value—cost
difference.
It implies low price alone.
Question 5. Which
of the following pricing strategies is the most appropriate when costs are not
related to volume and managers are less concerned about building significant
market share?
Penetration pricing
Skimming
Market share pricing
Competitive pricing
Question 6. As
the price of a product gets closer to customer value,:
price elasticity will decrease.
price elasticity will be unaffected.
price elasticity will increase.
product will become perfectly inelastic.
Question 7. Strategically
pricing below customer value is called:
price skimming.
value pricing.
pricing to value.
price discrimination.
Question 8. Which
of the following best describes a trend in business to purchase a service from
an outside vendor to replace the company’s operation?
Insourcing
Outsourcing
Joint venture
Horizontal integration
Question 9. Which
of the following pricing strategies is used to gain as much market share as
possible?
Penetration pricing
Skimming
Prestige pricing
Competitive pricing
Question 10. Identify
the concept related to the psychological aspects of price.
Skimming price
Reference price
Prestige price
Penetration price
Question 11. If
there is no legal way to keep competitors out of the market, these costs must
be viewed as sunk costs that do not affect decision making after the product is
introduced into the market. Identify the type of cost being discussed.
Development cost
Variable cost
Direct fixed cost
Overhead cost
Question 12. Which
of the following best describes the costs that must ultimately be covered by
revenues from individual products, but are not associated with any one product?
Development costs
Variable costs
Direct fixed costs
Overhead costs
Question 13. What
a product or service is worth to a customer is the:
brand value.
customer value.
profit potential.
market potential.
Question 14. Which
of the following statements is true about variable costs?
The corporate jet expenditure is an example of
a variable cost.
These costs must be recovered by the price.
The marketing manager’s salary is an example
of a variable cost.
These costs are independent of sales volume.
Question 15. An
understanding of the cost structure of the market provides marketing managers
with:
an idea of how low some competitors can price.
the demographics of target markets.
the behavioral segmentation of target markets.
an accurate idea of customers’ willingness to
pay.
Question 16. Price
variations within a product category are called:
price slots.
price ranges.
price groups.
price bands.
Question 17. Which
of the following describes the per-unit cost of making the product or
delivering the service?
Development costs
Variable costs
Direct fixed costs
Fixed costs
Question 18. When
marketing mangers see that the sales curve has flattened out and few new buyers
are in the market, they know that they are in this stage of the product life
cycle. Identify the stage.
Introduction stage
Growth stage
Maturity stage
Decline stage
Question 19. Identify
the stage in the product life cycle at which fierce battles for market share
take place.
Introduction stage
Growth stage
Maturity stage
Decline stage
Question 20. Which
of the following statements is true regarding the growth stage of the product
life cycle?
The growth rate and the size of the market are
low.
The market growth becomes flat.
Usually, competition is most intense in this
phase.
The rate of growth begins to decrease in this
stage.
Module 6 quiz
Question 1 : __________ appeals make either a direct or
indirect claim of superiority against a targeted or general class of
competitors.
Feature/benefit
Competitive advantage
News
Product or service popularity
Question 2. Which
of the following statements is true about advertisements that are created using
emotional appeals?
Emotional appeals are rarely used for
television advertisements.
It is difficult to use emotional appeals for
those products which do not have any tangible differential advantage.
Advertisements created using emotional appeals
focus on imagery and symbols.
Advertisements created using emotional appeals
have poor recall.
Question 3. Which
of the following types of informational appeals focuses on the dominant
attributes or characteristics of the product or service, or the benefits
provided?
Feature/benefit appeals
Competitive advantage appeals
Favorable price appeals
News appeals
Question 4. Which
of the following types of appeals focuses on the functional or practical
aspects of the product and emphasize facts, learning, and persuasion?
Social appeals
Behavioral appeals
Informational appeals
Emotional appeals
Question 5. Which
of the following is used to develop an image-oriented advertisement which is
used for product categories where it is difficult to establish tangible
differential advantages?
Feature/benefit appeals
Competitive advantage appeals
News appeals
Emotional appeals
Question 6. Identify
the approach that uses friends and neighbors as the sales force.
Direct sales
Telemarketing
Direct-mail marketing
Sales promotion
Question 7. In
these ads, the copy touts how popular the product is among the target audience.
Identify the informational appeal being used.
Feature/benefit popularity appeal
Competitive advantage appeal
News appeal
Product or service popularity appeal
Question 8. The
stage where customers are becoming aware of the product and developing
knowledge of the product’s attributes and benefits is known as:
cognitive stage.
affective stage.
behavioral stage.
evaluation stage.
Question 9. With
reference to the three basic stages of the advertising response process,
inducing trial for a product is an example of which of the following?
Cognitive objectives
Affective objectives
Behavioral objectives
Post-purchase objectives
Question 10. Communication
activities that provide extra incentives to customers or the sales force to
achieve a short-term objective are called:
sales promotion.
advertising.
integrated marketing communication.
public relations.
Question 11. Consumer-oriented
promotion gives customers a reason to purchase the product. This process
represents:
push promotion.
pull promotion.
horizontal promotion.
vertical promotion.
Question 12. Sampling
is most likely to be used:
in the maturity stage of the product life
cycle.
in the decline stage of the product life
cycle.
when a new product or brand is being
introduced.
to create interest among laggards and to
generate sales in the decline stage.
Question 13. Identify
the objective of trade promotions.
Creating awareness about the product among the
end consumers
Identify the needs of final consumers
Giving the intermediaries incentives to carry
and sell the product
Giving customers a reason to purchase the
product
Question 14. __________
compensate retailers for prominently displaying and promoting goods.
Display allowances
Off-invoice allowances
Stocking allowances
Rebates
Question 15. In
order to maintain the profit level of the product to the channel member and
keep the product on the shelves, the marketing manager uses __________ to
compensate for the decline in sales.
price-oriented promotions
product-oriented promotions
special events
horizontal promotions
Question 16. Which
of the following is an example of a consumer price-oriented promotion?
Off-invoice allowance
Money-back offer
Market development funding
Sampling
Question 17. A
shelf talker is:
a sales representative in a retail outlet who
provides customers with information on different products in various shelfs.
a sign hanging on the shelf with information,
usually about a special price.
a representative from a manufacturing firm who
negotiates shelf space with the retailers.
a representative from a retail outlet who
negotiates shelf space with the manufacturer.
Question 18. Identify
the trade promotion that is the most risky for a company.
Place-based promotions
Sales-based incentives
Product-based allowances
Price-based promotions
Question 19. Special
displays and other company-paid advertisements inside the store (e.g.
announcements for contests and sweepstakes, information about recipes, etc.)
are examples of:
point-of-purchase advertising.
off-invoice allowances.
premiums.
missionary marketing.
Question 20. A
particularly important purpose of retail-oriented promotions is:
to create awareness about the product.
to obtain feedback about the product from the
customers.
to gain or maintain distribution.
to identify additional features required to
improve the product.
Module 7 quiz
Question 1.According to the text, channels of distribution
must be treated like:
partners of the organization.
customers.
competitors of the firm.
marketers of the firms products.
Question 2. An organization focusing on the law firm segment
purchases
