Question-1
Cocktail lounges in restaurants are examples of:
A. differential pricing.
B. cultivating nonpeak demand.
C. complementary services.
D. reservation systems.
Question-2
A consumer products firm manufactures and sells over 200 different sizes and varieties of jams and jellies. We can say that this manufacturer's product mix has high:
A. consistency.
B. depth.
C. intensity.
D. range.
Question-3
Services high in __________ are those services that have characteristics the buyer normally finds hard to evaluate even after consumption.
A. trial qualities
B. search qualities
C. experience qualities
D. credence qualities
Question-4
__________ is a measure of the probability that a product will not malfunction or fail within a specified time period.
A. Reparability
B. Durability
C. Reliability
D. Specialty
Question-5
Customers today want separate prices for each service element and they also want the right to select the elements they want. The customers are said to be pressing for:
A. complementary services.
B. perishable services.
C. variable services.
D. unbundled services.
Question-6
A(n. __________ is defined as a distinct unit within a brand or product line distinguishable by size, price, appearance, or some other attribute.
A. stockkeeping unit
B. inventory turn
C. individual brand
D. product type
Question-7
Unlike physical products, services cannot be seen, tasted, felt, heard, or smelled before they are bought. This is known as the __________ aspect of services.
A. inseparability
B. intangibility
C. variability
D. perishability
Question-8
Which of the following is an example of a hybrid service?
A. Teaching
B. Car
C. Restaurant meal
D. Soap
Question-9
A computer falls into the __________ category of service mix.
A. pure tangible good
B. tangible good with accompanying services
C. hybrid
D. major service with accompanying minor goods
Question-10
__________ refer(s. to logos, symbols, characters, and slogans that service providers use in order
to make the service and its key benefits more tangible.
A. Brand engagement
B. Brand orientation
C. Brand elements
D. Brand loyalty
Question-11
Expensive equipment manufacturers not only install the equipment but also train the staff and undertake the maintenance and repair activities of the equipment. By doing so, they are providing:
A. payment equity.
B. value-augmenting services.
C. differential pricing.
D. facilitating services.
Question-12
Josh gets his bike serviced at Dean's Garage even though there's another garage much closer to home. He prefers Dean's because the work is usually done quickly and the staff tries to solve the issues with the bike as soon as possible. Dean's Garage excels at which of the following five determinants of service quality?
A. Reliability
B. Responsiveness
C. Assurance
D. Empathy
Question-13
When customers calculate the perceived economic benefits of a continuously provided service in relationship to the economic costs, they are gauging the:
A. private equity.
B. brand equity.
C. payment equity.
D. customer-service equity.
Question-14
The __________ rates the various elements of the service bundle and identifies required actions.
A. company performance analysis
B. voice of customer measurement
C. customer factor measurement
D. importance-performance analysis
Question-15
A group of products within a product class that are closely related because they perform a similar function, are sold to the same customer groups, are marketed through the same outlets or channels, or fall within given price ranges is known as a:
A. product type.
B. product class.
C. need family.
D. product line.
Question-16
Industrial goods can be classified as __________, capital items, or suppliers and business services based on their relative cost and how they enter the production process.
A. service components
B. sub-assemblies
C. accessories
D. materials and parts
Question-17
What types of goods are purchased frequently, immediately, and with minimum effort by the consumers?
A. Specialty goods
B. Shopping goods
C. Convenience goods
D. Durable goods
Question-18
Marketers have traditionally classified products on the basis of three characteristics: __________, tangibility, and use.
A. availability
B. affordability
C. aesthetics
D. durability
Question-19
Which of the following is a benefit of product mapping?
A. Studying market matrices
B. Integrating target markets
C. Identifying market segments
D. Educating consumers
Question-20
Capital items are long-lasting goods that facilitate developing or managing the finished product. They include two groups: installations and:
A. natural products.
B. component materials.
C. operating supplies.
D. equipment.
Question-21
Deducting the desired profit margin from the price at which a product will sell, given its appeal and competitors' prices, is known as:
A. overhead costing.
B. target costing.
C. activity based costing.
D. benefit analysis.
Question-22
Which of the following is the first step in setting a pricing policy?
A. Selecting a pricing method
B. Selecting the pricing objective
C. Determining demand
D. Estimating cost
Question-23
In a(n. __________, the buyer announces something he or she wants to buy, and potential sellers compete to offer the lowest price.
A. Dutch auction with one buyer and many sellers
B. English auction with one buyer and many sellers
C. English auction with one seller and many buyers
D. sealed-bid auction
Question-24
A market-penetration pricing strategy is most suitable when:
A. a low price slows down market growth.
B. production and distribution costs fall with accumulated production experience.
C. a high price dissuades potential competitors from entering the market.
D. the market is characterized by inelastic demand.
Question-25
A retailer who holds on to a(n. __________ policy charges a constant low price with little or no price promotions and special sales.
A. everyday low pricing
B. high-low pricing
C. low cost
D. going-rate pricing
Question-26
While shopping at the mall, Jane is asked by one of the sales representatives at the cosmetics counter to try out a new lipstick that her company is test marketing. The company representative asks her how much she would be willing to pay for the lipstick. After trying it out, Jane is of the opinion that $5 is just the right price for it. What type of a reference price is Jane using?
A. Usual discounted price
B. Fair price
C. Maximum retail price
D. Last price paid
Question-27
The first step in estimating demand is to:
A. analyze competitors' cost.
B. select a pricing method.
C. understand what affects price sensitivity.
D. calculate fixed costs.
Question-28
Which of the following is the most elementary pricing method?
A. Value pricing
B. Going-rate pricing
C. Markup pricing
D. Target-return pricing
Question-29
In __________, the firm bases its price largely on competitors' prices.
A. going-rate pricing
B. auction-type pricing
C. markup pricing
D. target-return pricing
Question-30
A firm that is plagued with overcapacity, intense competition, or changing wants would do better if it pursues __________ as its major objective.
A. market skimming
B. product-quality leadership
C. survival
D. profit maximization
Question-31
Companies that aim to __________ strive to be affordable luxuries.
A. survive in the market
B. partially recover their costs
C. maximize their market share
D. be product-quality leaders
Question-32
__________ price refers to what the consumers feel the product should cost.
A. Fair
B. Typical
C. Usual discounted
D. List
Question-33
The reservation price or the maximum that most consumers would pay for a given product is known as the __________ price.
A. expected future
B. usual discounted
C. upper-bound
D. typical
Question-34
__________ is the cost per unit at that level of production.
A. Target cost
B. Average cost
C. Marginal cost
D. Opportunity cost
Question-35
Which of the following is true regarding price elasticity?
A. The higher the elasticity, the lesser is the volume growth resulting from a 1 percent price reduction.
B. Within the price indifference band, price changes have little or no effect on demand.
C. If demand is elastic, sellers will consider increasing the price.
D. Price elasticity does not depend on magnitude and direction of the contemplated price change.
Question-36
The decline in the average cost of production with accumulated production experience is called the:
A. demand curve.
B. supply chain.
C. learning curve.
D. value chain.
Question-37
__________ consist of the sum of the fixed and variable costs for any given level of production.
A. Total costs
B. Average costs
C. Opportunity costs
D. Learning costs
Question-38
Companies that believe that a higher sales volume leads to lower unit costs and higher long-run profits are attempting to:
A. maximize their market share.
B. skim the market.
C. become a product-quality leader.
D. merely survive in the market.
Question-39
When a company introduces a product at a very high price and then gradually drops the price over time, it is pursuing a __________ strategy.
A. market-penetration pricing
B. market-skimming pricing
C. value-pricing
D. switching cost
Question-40
When consumers examine products, they often compare an observed price to an internal price they remember. This is known as a(n. __________ price.
A. markup
B. reference
C. market-skimming
D. accumulated
Question-41
The number of different persons or households exposed to a particular media schedule at least once during a specified time period is known as:
A. range.
B. impact.
C. intensity.
D. reach.
Question-42
Which of the following is an element of an offer strategy?
A. The medium used for delivery
B. The number of customers in the locality
C. The vision of the company
D. The skills required for production
Question-43
Which of the following steps in the innovation-adoption model of marketing communications corresponds to the cognitive stage that a buyer passes through?
A. Interest
B. Evaluation
C. Trial
D. Awareness
Question-44
__________ refers to simple exaggerations in advertisements that are not meant to be believed and that are permitted by law.
A. Puffery
B. Boasting
C. Pseudo promotion
D. Doublethink
Question-45
Which of the following is an example of an advertising platform?
A. Posters and leaflets
B. Company magazines
C. Fairs and trade shows
D. Sales presentations
Question-46
The Internet provides marketers and consumers with opportunities for much greater interaction and __________ than other marketing channels.
A. control
B. data security
C. high involvement selling
D. individualization
Question-47
Which of the following sequences accurately represents the hierarchy-of-effects model of marketing communications?
A. Attention-interest-desire-action
B. Awareness-interest-evaluation-trial-adoption
C. Awareness-knowledge-liking-preference-conviction-purchase
D. Exposure-reception-cognitive response-attitude-intention-behavior
Question-48
Buzz and viral marketing both try to:
A. use unethical methods to popularize a brand.
B. market products by providing free samples to customers.
C. create a splash in the marketplace to showcase a brand.
D. induce impulse sales by displaying products close to the pay counters.
Question-49
According to researchers, which of the following is the correct order in which content of print advertisements matter?
A. Picture-headline-copy
B. Copy-picture-headline
C. Headline-copy-picture
D. Picture-copy-headline
Question-50
__________ is the number of times the average buyer buys a product during the period.
A. Buyer turnover
B. Purchase frequency
C. Customer retention rate
D. Advertising impressions
Question-51
Which of the following is an example of a trade promotion?
A. Free samples
B. Discount coupons
C. Display allowances
D. Contests for sales reps
Question-52
Which of the following media timing factors expresses the rate at which new customers enter the market?
A. Buyer turnover
B. Purchase frequency
C. Media reach
D. Weighted number of exposures
Question-53
The weighted number of exposures (WE. of an advertising message over a given medium is given by:
A. WE = reach * frequency.
B. WE = (reach * frequency. / impact.
C. WE = reach * frequency * impact.
D. WE = (reach + frequency. / impact.
Question-54
The original and oldest form of direct marketing is:
A. billboards.
B. banner advertising.
C. mail campaigns.
D. field sales calls.
Question-55
The qualitative value of an exposure through a given medium is known as:
A. frequency.
B. reach.
C. amplitude.
D. impact.
Question-56
Which of the following marketing communications tools is most influential at the maturity stage of a product's life cycle?
A. Sales promotions
B. Direct marketing
C. Advertising
D. Publicity
Question-57
Marketing communication strategy can be decided by conducting an image analysis by profiling the target audience in terms of:
A. brand knowledge.
B. purchase patterns.
C. demographic characteristics.
D. income levels.
Question-58
Which of the following is generally acknowledged as the most powerful advertising medium and reaches a broad spectrum of consumers at low cost per exposure?
A. Television
B. Radio
C. Newspapers
D. Magazines
Question-59
Which of the following elements of the marketing communications mix involves a variety of short-term incentives to encourage trial or purchase of a product or service?
A. Advertising
B. Direct marketing
C. Public relations
D. Sales promotion
Question-60
People who know and communicate with a great number of other people are called:
A. buzzers.
B. connectors.
C. informants.
D. stickers.
