MULTIPLE CHOICE QUESTIONS OF MARKETING ANALYTICS (KMB MK05)
- Temporarily
reducing prices to increase short-run sales is an example of which of the
following?
a. Segmented
pricing
b. Promotional
pricing
c. Dynamic
pricing
d. Geographical
pricing
Ans:
Promotional Pricing
- Strategies
that are used for new product pricing are called which of the following?
a. Market-skimming pricing and
Market-penetration pricing
b. Market-skimming pricing and Market-product
pricing
c. Market-segmentation pricing and
Market-penetration pricing
d. None of the above
Ans
:Market-skimming pricing and Market product pricing
- What
is captive product pricing?
a. Setting
prices across an entire product line
b. Pricing
bundles of products sold together
c. Pricing
products that must be used with the main product
d. Pricing
low-value by-products, to get rid of them
Ans:
Pricing low-value by products to get rid of them
- Which
of the following statements is true?
a. Price
elasticity: a measure of the sensitivity of demand to changes in price
b. If
demand hardly changes with a small change in price, the demand is inelastic
c. If
demand changes greatly, the demand is elastic
d. All
of the above
Ans: All
of the above
- Under
oligopolistic competition the market consists of a few sellers who are
highly sensitive to each other's pricing and market strategies.
a. True
b. False
Ans: True
- Target
pricing is the same as finding out an ideal starting selling price.
a. True
b. False
Ans: True
- A
value-based pricing strategy involves which of the following?
a. The
pricing is product driven; the input comes from calculus and controlling
b. setting
price based on buyers' perceptions of value rather than on seller's cost
c. he
company adds up the costs of making the product and sets a price that covers
the cost plus target profit
d. None
of the above
Ans: Setting
price based on buyer’s perceptions of value rather than on seller’s cost
- The
"experience curve" refers to which of the following?
a. Cost
per unit as a function of accumulated production
b. Short-run
product cost
c.
Break-even cost per unit
d.
All of the above
Ans: Cost
per unit as a function of accumulated production
- When
initiating price changes the company must anticipate possible reactions
from both buyers and competitors.
a. True
b. False
Ans:
True
10. Dividing
markets into groups of customers with similar needs is called:
a. perceptual
mapping.
b. segmenting.
c. positioning.
d. targeting.
Ans: Segmenting
11. Positioning
is the process of:
a. putting
the product in the right shops.
b. creating
the right relationship with suppliers and retailers.
c. putting
the product in the right place within a retail store.
d. putting
the product in the right place in the customer's mind.
Ans:
Putting the product in the right place in the customer’s mind
12. The
purpose of segmentation is:
a. to
ensure that resources are used in the most effective way.
b. to
make it easier to find customers.
c. to
help customers understand what our products are.
d. to
simplify the marketing plan.
Ans: To
ensure that resources are used in the most effective way
13. Segmenting
a market according to where people shop is an example of:
a. geographic
segmentation.
b. sociological
segmentation.
c. behavioural
segmentation.
d. psychographic
segmentation.
Ans: Geographic
Segmentation
14. Which
of the following is inappropriate for segmenting industrial markets?
a. Psychographic
segmentation.
b. Geographical
segmentation.
c. Multivariable
segmentation.
d. Behavioural
segmentation.
Ans: Psychographic
segmentation
15. Niche
marketing is an example of:
a. concentrated marketing.
b. undifferentiated
marketing.
c. differentiated
marketing.
d. gap
marketing.
Ans:
Concentrated Marketing
16. Delphi
is used for
a. sales forecasting.
b. positioning.
c. targeting.
d. segmenting.
Ans:
Sales Forecasting
17. A
low-resource company in a mass market containing high-differentiation consumers
should:
a. follow
an undifferentiated strategy.
b. follow
a concentrated strategy.
c. follow
an aggressive strategy.
d. follow
a differentiated strategy.
Ans:
follow a concentrated strategy
18. Psychographic
segmentation classifies consumers according to their personalities.
a. True
b. False
Ans: True
19. Age,
income and marital status are all elements of behavioural segmentation.
a. True
b. False
Ans:
False
20. Geographic
segmentation is unsuitable for industrial markets.
a. True
b. False
Ans:
False
21. Multivariable
segmentation takes account of only one characteristic.
a. True
b. False
Ans: False
22. Industrial
markets can be segmented according to the quantities of product bought.
a. True
b. False
Ans: True
23. Segments
are profitable provided the consumers are prepared to pay a premium that is
less than the cost of adapting the product.
a. True
b. False
Ans:
False
24. Segmenting
by country is realistic in global markets.
a. True
b. False
Ans: True
25. Differentiated
marketing means concentrating on two or more segments.
a. True
b. False
Ans: True
26. A
high resource company in a mass market should use a differentiated approach,
provided the customers are also differentiated.
a. True
b. False
Ans: True
27. A
firm entering every possible segment of the market is a market specialist.
a. True
b. False
Ans: False
28. Positioning
is about placing the product correctly in the consumers' perceptual map.
a. True
b. False
Ans: True
29. Retail
advertising incorporates:
a. payment
for media
b. a
personal presentation
c. a
format that can be adapted to individual consumers
d. an
unidentified sponsor
Ans:
Payment for Media
30. Which
type of retailer has the highest advertising-to-sales ratio?
a. convenience
stores
b. furniture
stores
c. grocery
stores
d. jewellery
stores
Ans: Furniture stores
31. Advertising
costs are shared between two or more retailers or a manufacturer, a wholesaler,
and a retailer through:
a. promotional
monies (PMs)
b. promotional
allowances
c. cooperative
advertising
d. slotting
fees
Ans:
Cooperative advertising
32. Which
of the following is not an advantage of advertising?
a. A
large audience is attracted.
b. Messages
can be lengthy and contain a lot of detail.
c. A
large number of alternative media are available.
d. The
retailer has control over message content, graphics, timing, and size.
Ans:
Messages can be lengthy and contain a lot of detail
33. Which
advertising medium enables the retail advertiser to control its market
coverage?
a. direct
mail
b. telephone
directories
c. radio
d. daily
newspapers
Ans:
Direct Mail
34. A
message that has persuasion as its goal is a(n):
a. institutional
ad
b. competitive
ad
c. reminder
ad
d. pioneer
ad
Ans:
Competitive Ad
35. Which
type of advertisement seeks to keep the retailer's name before the public
without emphasizing the sale of goods or services?
a. institutional
advertisement
b. competitive
advertisement
c. reminder
advertisement
d. pioneer
advertisement
Ans:
Institutional advertisement
36. Which
type of advertising is subject to the rules of the Competition Act?
a. horizontal
cooperative advertising
b. vertical
cooperative advertising
c. institutional
advertising
d. competitive
advertising
Ans:
Vertical cooperative advertising
37. A
distinction between publicity and advertising is that advertising:
a. uses
agencies to place messages
b. utilizes
media, while publicity relies on word-of-mouth
c. is
more controllable
d. is
more credible
Ans: is
more controllable
38. Which
of the following is not an advantage of publicity?
a. A
retail image can be presented or enhanced.
b. An
objective source presents the message.
c. A
mass audience is addressed.
d. There
is control over the timing of the message.
Ans:
there is control over the timing of the message
39. A
major advantage of personal selling in comparison to other forms of promotion
is that:
a. several
product attributes can be discussed at the same time
b. a
mass audience is addressed
c. per-customer
costs are low
d. the
message can be adapted to the needs of each customer
Ans: The
message can be adapted to the needs of each customer
40. A
salesperson that can be described as the true "sales" employee is
a(n):
a. order-getting
salesperson
b. order-taking
salesperson
c. order-filling
salesperson
d. missionary
salesperson
Ans:
Order getting salesperson
41. In
personal selling, which of the following is based on the assumption that each
customer has a different set of wants?
a. a
trial close approach
b. a
repetitive sales presentation
c. the
need-satisfaction approach
d. the
canned sales presentation
Ans: The
need satisfaction approach
42. Which
form of retail promotion is often criticized based on its use of frivolous
selling points and a short-term orientation?
a. publicity
b. personal
selling
c. advertising
d. sales
promotion
Ans:
Sales promotion
43. The
major difference between a contest and a sweepstakes is that the:
a. sweepstakes
is based upon a mail entry
b. odds
of winning are higher in a contest
c. sweepstakes
requires skill, whereas the contest is based purely on luck
d. contest
requires skill, whereas the sweepstakes is based purely on luck
Ans:
contest requires skill, whereas the sweepstakes is based purely on luck
44. Which
of the following is not an advantage of coupons?
a. In
many cases, manufacturers pay for the advertising and redemption of coupons.
b. A
large percentage of coupons are redeemed by consumers.
c. Coupons
are very helpful to an ongoing advertising campaign and increase store traffic.
d. The
use of coupons increases the consumer's perception that a retailer offers good
value.
Ans: A
large percentage of coupons are redeemed by consumers
45. Which
method of establishing an overall promotional budget relies on previous budgets
in the allocation of funds?
a. all-you-can-afford
b. competitive
parity
c. incremental
d. percentage-of-sales
Ans:
Incremental
46. The
sequence of steps that lead a consumer from awareness to purchase is referred
to as the:
a. vertical
trend theory
b. two-step
model of communication
c. hierarchy-of-effects
model
d. communication
model
Ans:
Hierarchy-of-effects model
47. Reach
refers to:
a. the
number of distinct people exposed to a retailer's promotion efforts in a
specific period
b. total
circulation in all geographic areas
c. total
circulation less waste coverage
d. the
average number of times each person is exposed to a retailer's ads in a
specific period
Ans: The
number of distinct people exposed to a retailer’s promotion efforts in a
specific period
48. A
distributed promotion effort is used by retailers who:
a. have
seasonal sales
b. promote
constantly throughout the year
c. use
cooperative advertising
d. advertise
very little around holidays and store openings
Ans: Promote
constantly throughout the year
- A(n)
_____ is a cross-functional group charged with developing a specific
product or business.
- customer-driven
team
- new-product
department
- venture
team
- stage-gate
system
- engineering
team
Ans:
Venture team
- __
are informal workplaces where intrapreneurial teams attempt to develop new
products.
a. Stockrooms
b. Gopher
holes
c. Penthouses
d. Skunkworks
e. Rats
nests
Ans:
Skunk works
- The
first step in the new-product development decision process is _____.
a. idea screening
b.
concept development
c. idea
generation
d. business analysis
e.
product development
Ans: Idea
screening
- A
_____ is when the company dismisses an otherwise good idea.
a. dismiss-idea
b. dismissal
error
c. DROP-error
d. DROP-idea
e. screened
idea
Ans:
DROP-error
- _____
is a method for deriving the utility values that consumers attach to
varying levels of a product's attributes.
a. Conjoint
analysis
b. Regression
analysis
c. Attribute
mapping
d. Utility
analysis
e. Product
positioning map
Ans:
Conjoint Analysis
- A
powdered instant breakfast drink is at the concept testing stage. Which
product dimension is being measured when researchers ask target consumers
whether or not they see the product solving a problem?
a. communicability
b. need
level
c. gap
level
d. perceived
value
e. purchase
intentions
Ans: Need
level
- _____
is when the company tests its product with customers.
- Alpha
testing
- Beta
testing
- Product testing
- Reality
check
- Concept
testing
Ans: Beta
testing
- A(n)
_____ is any good, service, or idea that is perceived by someone as new.
a. diffusion
b. product
c. invention
d. innovation
e. concept
Ans:
Innovation
- _____
are technology enthusiasts; they are venturesome and enjoy tinkering with
new products and mastering their intricacies.
a. Late
majority
b. Early majority
c. Early adopters
d. Laggards
e. Innovators
Ans:
Innovators
- _____
are skeptical conservatives who are risk averse, technology shy, and price
sensitive.
a. Late majority
b. Early
majority
c. Laggards
d. Early
adopters
e. Innovators
Ans: Late
majority
- A
company treats trade shows as intelligence missions. This would be the
______ stage of the development process.
a. development
b. business analysis
c. idea
generation
d. screening and evaluation
e. idea screening
60. A(n) _____ product exceeds customer expectations.
a.
Strategic
b.
Superior
c.
Augmented
d. Anticipated
Ans: Augmented
61. Which of the following is NOT a part of marketing communication mix?
a.
Telemarketing
b.
Public relations
c.
Sales promotion
d.
Advertising
Ans: Tele Marketing
62. A company designs the product with little or no input from
customers, the company is practicing which of the following concept?
a.
Product concept
b.
Marketing concept
c.
Selling concept
d.
Production concept
Ans: Product concept
63. Products that are relatively inexpensive and are purchased
frequently with minimal effort can be classified as ___________ products.
a.
shopping
b.
convenience
c.
industrial
d.
specialty
e. unsought
Ans: Convenience
64. An example of a convenience consumer product is
a.
stereo equipment.
b.
petrol.
c.
a motorcycle.
d.
a bicycle.
e. athletic
shoes.
Ans: Petrol
65. The consumer’s estimate of the product’s overall capacity to satisfy
his or her needs is called:
a.
Product Cost
b.
Product Value
c.
Product need
- Product
Satisfaction
Ans:
Product Value
66. Aggressive selling is a characteristic of which of the following
concept of marketing?
a.
Production concept
b.
Marketing concept
c.
Selling concept
- Product
concept
Ans:
Selling concept
67. Which of the following is NOT included in product decisions?
a.
Styling
b.
Brand name
c.
Warehousing
- Packaging
Ans:
Warehousing
68. Market –oriented firms focus on:
a.
Retailers
b.
Distributors
c.
Customers
d. Wholesalers
Ans:
Customers
69. A critical marketing perspective is the process of determining:
a.
the value of a product, person,
or idea.
b.
how places compete with each
other.
c.
the worth and impact of marketing activities.
- which
type of promotional strategy works best.
Ans: The worth and impact of marketing activities
70. Four competing philosophies strongly influence the role of marketing
and marketing activities within an organization. Which if the following is not
a component of market orientation?
a.
Customer orientation.
b.
Profitability orientation.
c.
Marketing orientation.
- Competitor
orientation.
Ans:
Profitability orientation
71. Often, the best way to improve customer value, and beat the
competition, is to be first to satisfy a need that others have not even
considered.
a.
True
- False
Ans: True
72. It is more costly to retain current customers by satisfying their
needs, than to get new customers by taking them away from a competitor.
a.
True
- False
Ans: True
73. The marketing concept means that an organization aims the majority
of its efforts at satisfying customers, at a profit.
a.
True
- False
Ans: True
74. The marketing concept applies to production firms, but not to
service industries.
a.
True
- False
Ans: True
75. _______________________ is defined as the difference between the
benefits a customer sees from a market offering and the costs of obtaining
those benefits.
a.
Customer value
b.
Satisfaction scale
c.
Profit margin
- Competitive
benefit
Ans:
Customer Value
76. Marketing strategies are often designed to influence _______________
and lead to profitable exchanges.
a.
Consumer decision making
b.
Sales strategies
c.
Advertising strategies
- Export
strategies
Ans:
Consumer decision making
77. __________ 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
- Marketing
research
Ans:
Product knowledge
78. When consumers are seeking low-involvement products, they are
unlikely to engage in extensive search, so _________________ is important.
a.
Order processing
b.
Order booking
c.
Ready availability
- Information
about warranty
Ans:
Ready Availability
79. ___________________ constitutes moderate consumer behavior, but
still involves time and effort searching for and comparing alternatives.
a.
Limited decision making
b.
Need recognition
c.
Routine decision making
- Post
purchase evaluation
Ans:
Limited decision making
80. The ________ is practiced most aggressively with unsought goods,
goods that buyers normally do not think of buying, such as insurance,
encyclopedias, and funeral plots.
a.
marketing concept
b.
selling concept
c.
production concept
d.
product concept
- holistic
marketing concept
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