Chapter 9
Price elasticity depends on the magnitude and direction of the price change. If may differ for a price
cut versus a price increase. When the price changes have little or no effect, there might exist a
________ for your product.
a.
b.
c.
d.
selective price
price indifference band
substitute product
promotional price
The first step in estimating demand is to understand what affects price sensitivity. Generally
speaking, customers are most price sensitive to products that cost a lot or are ________.
a.
b.
c.
d.
bought frequently
bought infrequently
priced low to begin with
low cost
Which of the following maximizes the product's availability in the market for the customers?
a.
b.
c.
d.
Distribution
Availability
Coverage
Control
________________ is a technique in which the existing customers are recommending therelatives,
friends or colleagues to purchase.
a.
b.
c.
d.
Cross-sell
Up-sell
Referral
Reactivation
This is the place the discernment with respect to a channel part is that its objective achievement is
being hindered by another, with stress or pressure the outcome:
a.
b.
c.
d.
Channel conflict.
Channel relationships.
Channel communication.
Customer conflict
Which unique characteristic of services means that consumers must be present during the
production?
a.
b.
c.
d.
Intangibility
Heterogeneity
Inseparability
Perishability
Dominos and Subway are better examples of:
a. Franchising
b. Distributor
c. Retailers
d. Merchant
Alec had his gall bladder removed, but he was unconscious during the operation. In fact, even
though he has an incision, he really has no way of knowing if the service was actually performed
even after it was allegedly performed. That is because medical services such as this exhibit _____
qualities.
a.
b.
c.
d.
Search
Perishable
Credence
Experience
Which one is the example of opt-out concept?
a.
b.
c.
d.
A customer agreeing to receive an e-mail newsletter
A customer unsubscribing to an e-mail newsletter
A customer choosing an e-mail newsletter
None of the above
The benefit of integrating customer databases with websites in electronic customer relationship
management (e-CRM) is:
a.
b.
c.
d.
Lower costs
Achieve mass customization
Targeting more cost-effectively
All the above are correct
In market-penetration pricing, the company’s objective is to ________, believing that higher sales
volume will lead to lower unit costs and higher long-run profits.
a.
b.
c.
d.
maximize volume
maximize their market share
minimize their market share
block competitive launches
Vestige, Modicare, and Tupperware use which type of channel?
a.
b.
c.
d.
Direct marketing channel
Forward channel
Indirect marketing channel
Fashion channel
Long term business development and sustainability with customers is the aim of:
a.
b.
c.
d.
Customer relationship management
Electronic customer relationship management
Customer management
Customer acquisition
These are chains of associations that are worried about the administration of the procedures and
exercises engaged with making and moving items from makers and producers to end-client clients.
The associations engaged with any one excursion, are all things considered named as a:
a.
b.
c.
d.
Selling
Communication
Vendor
Distribution
Traditionally, ________ has operated as the major determinant of buyer choice.
a.
b.
c.
d.
promotion
placement
price
distribution
There are four basic marketing activities in CRM are customer selection, acquisition, retention, and
_______________________.
a.
b.
c.
d.
Customer differentiation
Customer extension
None of the answers apply
Customer demographics
When market reach to its saturation, the producers begin to leave the market due to____________
a.
b.
c.
d.
Poor margins
Market penetration
Decline stage
Marketing strategy development
The minimum information required in an online CRM to engage the customer is:
a.
b.
c.
d.
Post code
Credit rating
E-mail address
Customer profile
________________ is a CRM technique in selling more expensive products to the customers against
the product demanded by customer.
a.
b.
c.
d.
Up-sell
Reactivation
Cross-sell
Referral
What is the objective of Reach in the concept of marketing value framework RACE (Reach, Act,
Convert, Engage)?
a. Achieve conversions to marketing goals such as fans, leads, or sales on web presences and
offline
b. Build awareness on other sites and in offline media and drive to web presences
c. Engage audience with brand on its website or other online presence
d. Build customer relationships over time to achieve retention rates
The definition of ________ prices is: In considering an observed price, consumers often compare it
to an internal memory reference price or an external frame of reference (such as a posted “regular
retail price”).
a.
b.
c.
d.
historical
everyday low price
promotional
reference
If demand hardly changes with a small change in price, we say that the demand is ________.
a.
b.
c.
d.
inelastic
elastic
equal
marginal
______ involves designing and producing the container or wrapper for a product
a.
b.
c.
d.
Packaging
Branding
Standardizing
Labelling
________ sets a ceiling on the price the company can charge for its products.
a.
b.
c.
d.
Market forces
Costs
Demand
Government regulations
A service cannot be touched, seen, tasted, heard, or felt in the same manner in which goods can be
sensed and, therefore, is referred to as being:
a.
b.
c.
d.
perishable
synergistic
impervious
intangible
Color and size of the product, brand and packaging are considered as
a.
b.
c.
d.
Chemical features of product
Product manufacture
Product designing
Physical features of product
Which of the following is not a characteristic of “Market Introduction Stage” in PLC?
a.
b.
c.
d.
Slow sales volume to start
Costs are low
Makes no money at this stage
Demand has to be created
In _________ all the augmentations and transformations of a product might undergo in the failure.
a.
b.
c.
d.
Generic product
Augmented product
Potential product
Expected product
Identify the products that the customer usually buys frequently and with a minimum of comparison
and buying effort.
a.
b.
c.
d.
Convenience
Shopping
Unsought
Specialty
Market-skimming prices make sense under the following conditions EXCEPT ________.
a.
b.
c.
d.
the product is a “me-too” and contains no new technology or points of difference
the high initial price blocks competition from entering the market
the unit costs of producing a small number of units are not too high
the high price communicates high value
The Customers who are never using online service even after signed up, are called:
a.
b.
c.
d.
Active
Dormant
Inactive
Potential
Janet will only purchase Crate and Barrel products for her home. The products are expensive, but
Janet feels they have the highest quality and will last a very long time. These products represent
_____ products
a.
b.
c.
d.
convenience
homogeneous shopping
heterogeneous shopping
specialty
A ______ is a set of all product lines and items that a particular seller o�ers for sale.
a.
b.
c.
d.
Product width
Product mix
Product depth
Product depth
Increased competition leads to price decrease, increasing public awareness, sales volume increase
significantly are the characteristics of _________ in PLC.
a.
b.
c.
d.
Market introduction stage
Growth stage
Decline stage
Maturity stage
_______ refers to the average number of items offered by the company in each product line.
a.
b.
c.
d.
Product length
Product width
Product mix
Product depth
A Boston diamond distributor has developed the first branded diamond called Hearts on Fire to help
smaller retailers counter the volume jewelers’ aggressive price discounting. This move is meant to:
a.
b.
c.
d.
create a catchy phrase to promote diamonds.
take away trademark rights
combat the quality appeal of generic products.
build product identity and customer loyalty.
This is the place mediators are given exclusive rights to market the products in assigned area:
a.
b.
c.
d.
Exclusive
Direct
Selective
Intensive
When the two or more channels are catering the same market, then_____________ occurs many
times.
a.
b.
c.
d.
Multi channel conflict
None of the above
Vertical channel conflict
Horizontal channel conflict
The key performance indicator for the Reach approach is:
a.
b.
c.
d.
Repeat conversion
Bounce rate
Revenue or goal value per visit
Conversion rates
The most elementary pricing method is to add a standard ________ to the product’s cost.
a.
b.
c.
d.
markup
margin
target margin
target price
A(n) _____ is the result of applying human or mechanical efforts to people or objects.
a.
b.
c.
d.
profit intermediary
tangible product
service
application processor
Electronic kiosk is a type of:
a.
b.
c.
d.
Supermarket
Discount retailers
Limited line retailers
Non-store retailing
When product goes from manufacturer to final customer directly, the channel structure is called:
a. Direct
b. Indirect.
c. Hybrid
d. None of the above
The point of view of a economic system defines the role of marketing channels 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
_____ products are products that are not known about or not actively searched for by consumers.
These products require aggressive personal selling and highly persuasive advertising.
a. Equity
b. Unsought
c. Specialty
d. Hidden
______ refers to the total number of items in its product mix.
a.
b.
c.
d.
Product length
Product depth
Product mix
Product line
This implies accomplishing the ideal dissemination costs without losing dynamic authority over the
contribution, how it is evaluated, advanced, and conveyed in the circulation channel:
a.
b.
c.
d.
Coverage
Control
Distribution
Availalability
Many consumers use price as an indicator of ________. Image pricing is especially effective with
ego-sensitive products such as perfumes and expensive cars.
a.
b.
c.
d.
capability
status
ability
quality
Unsought products typically are products that:
a.
b.
c.
d.
e.
require little or no decision making by the buyer
only require reminder advertising to be successful
consumers definitely don’t want
consumers purchase when they see them in a convenient location.
Consumer don’t know about it or don’t actively look for
________ communicates to the market the company’s intended value positioning of its product or
brand.
a. Price
b. Packaging
c. Promotion
d. Place
ASSIGNMENT 1
____________ is a strategic planning technique used to help a person or organization identify
strengths, weaknesses, opportunities, and threats related to business competition or project
planning
a.
b.
c.
d.
VRIO framework
SWOT analysis
TOWS analysis
PESTLE analysis
The research objectives in the second step of marketing research process should be defined into
particular:
a.
b.
c.
d.
Time allotments
Marketing goals
Information needs
Financial amounts
Each week, Jess comes to the supermarket with a list of essential items: milk, bread, peanut butter,
and chocolate. This is an example of:
a.
b.
c.
d.
e.
buyer’s harmony
routine response behavior
consistent decision making
limited decision making
situational convenience
In case of Industrial product marketing the customer satisfaction is achieved by factors like.
a. Product design, demand analysis, technical requirements, resource utilization, Service
b. Product design, demand analysis, technical requirements, resource utilization, long term
relationship with customers.
c. Product design, demand analysis, pricing, service, long term relationship with customers.
d. Product design, demand analysis, promotion, service
Which of the following are the sources of marketing intelligence in research?
a.
b.
c.
d.
All of the above
Newspaper articles
Competitor intelligence
Customer feedback
Goods and services purchased by the ultimate consumer for personal use are called
a.
b.
c.
d.
purchased products.
consumer products.
commercial products
personal products
The following are the characteristics of Industrial Products/Goods
a.
b.
c.
d.
Geographically Concentrated, Few Buyers, Customized, Direct Delivery
Geographically Concentrated, Generally Standardized, Complex Channel of distribution
Mass advertisements, Fewer middlemen, sometimes direct delivery, Maximum retail price
Geographically disbursed, Mass Customers , Timely delivery and after-sales are generally
important
An example of a segmented market would be
a. High-income and low-income consumers being treated the same at Burger King.
b. Maruti separating its potential customers into economy car buyers and luxury car buyers.
c. Bisleri marketing its product to all residents of the India with one marketing mix based on
the concept pure and safe drinking water
d. Sundar Nursery seeing residents of urban areas and rural areas as one market needing trees.
Select the type of research from following to identify the demographic groups who prefer diet soft
drinks and reasons of it.
a.
b.
c.
d.
Survey research
Descriptive research
Ethnographic research
Experimental research
Problems related to _________________ can be studied under marketing research.
a.
b.
c.
d.
Marketing Mix
Promotional Mix
All of the above
Product Mix
Law governing media in India are
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
A, C, D, E
Cable Television Network Rule, 1994
Code of conduct of the News Broadcasters Association
The press council Act, 1978
Electronic Media Monitoring Centre (EMMC)
Norms for Journalist Conduct issued by the Press Council of India
A, B, C, D, E, F
A, B, C
Code for Commercial Advertising on Doordarshan and All India Radio
B, F
Business products may be identified
a. products sold in a finished state for use in the home or the business office.
b. products, like legal services, that can be bought by businesses or individuals but do not enter
into the production of finished goods.
c. goods and services purchased for use either directly or indirectly in the production of
other goods and services for resale.
d. products of any kind bought for use in the home but sold later as used items.
PESTLE stands for _____________
a.
b.
c.
d.
The political, economic, social, treat, legal, and ecological environments.
The political, economics, substitute, technological, legal, and ecological environments.
The purchasing, economics, social, technological, legal, and ecological environments.
The political, economic, social, technological, legal, and ecological environments.
You need to buy tires for your school bus that you use for ferrying students to school. They are the
same type tires used on Tata Motors 4ton commercial trucks, and you buy them from Industrial Tire
Company. Your tires are classified as
a.
b.
c.
d.
consumer products.
business products.
service products.
commercial products.
Survey research is best suited for collecting____________________ data.
a.
b.
c.
d.
Descriptive
Preference
Exploratory
Attitudinal
Business products that are not directly used in producing other goods are also referred to as
a.
b.
c.
d.
non-personal goods.
commercial products.
consumer products.
raw materials.
Which of the following products would most likely be classified as a business product?
a.
b.
c.
d.
Accounting services
An automobile
A computer
Lycra (spandex)
In order to expand its sales into the U.S. market, BRL, an Australia-based winemaker, agreed to a
merger with a U.S.-based wine distribution company. According to Ansoff’s strategic opportunity
matrix, BRL would be implementing a _____ strategy.
a.
b.
c.
d.
e.
market development
product penetration
Divestment
Diversification
product development
The process of collecting information about the external marketing environment is
a.
b.
c.
d.
marketing research.
marketing management.
environmental management.
environmental scanning.
All of the following are examples of individual factors that affect the decision-making process for
consumers EXCEPT:
a.
b.
c.
d.
e.
age
reference groups
gender
Personality
Lifestyles
When a company strives to appeal to multiple well defined market segments with a strategy tailored
to each segment, it is applying
a.
b.
c.
d.
concentrated marketing
differentiated marketing
the majority fallacy
undifferentiated marketing
Concerning market segmentation, all of the following statements are correct except
a. firms that practice market segmentation don’t necessarily change their products to meet the
needs of different market segments.
b. only for-profit organizations practice market segmentation.
c. market segmentation attempts to divide the total market into smaller groups.
d. there are too many variables to attract all customers using the same marketing mix.
Which method should be used by the researcher for data collection when respondents are not
willing to provide information?
a.
b.
c.
d.
Focus groups
Internet surveys
Personal interviews
Observational research
Which of the following isn’t part of company’s microenvironment?
a.
b.
c.
d.
Public
Economic environment
Industry Competitors
Government Policies
All of the following are characteristics of culture EXCEPT:
a.
b.
c.
d.
e.
culture is functional
culture is pervasive
culture is learned
culture is an inherent trait
culture is dynamic
When one product becomes part of another product that is destined for resale, the first product is
considered
a. a business product.
b. to be destined for the industrial market.
c. to be destined for the commercial market.
d. a consumer product.
The purchase decision for industrial products are taken by the following
a.
b.
c.
d.
Accounts & Admin
research, finance, accounts, and purchase department influences the purchase decision
Supply chain Alone
HR, Admin, Housekeeping
Marketing segmentation is
a. an attempt to reach all consumers with a single marketing mix.
b. the process of bringing several small, unreachable segments into a definable market
segment.
c. practiced by both profit-oriented and not-for-profit organizations.
d. the process of dividing the total market into several heterogeneous groups.
Cigarettes and liquor advertising is banned in virtually all marketing communication forms in many
countries around the world. This can be explained as an influence of
a.
b.
c.
d.
Ecological environment
Legal environment.
Technological environment.
Economic environment.
Differentiated (multi-segment) approach means
a. Marketer target business buyers as per their similar needs with a single marketing mix. Here
the demand is so diffused that it is not worth to differentiate, and all customers are offered
a single product
b. The marketer does not use any Marketing Mix
c. Marketer starts targeting single buyers and tries to fill buyers' needs and moves further
targeting two or more customer segments with a separate marketing mix.
d. The marketer uses different marketing mechanism for different customers
The most defining element of a culture is its:
a.
b.
c.
d.
e.
Laws
Values
Language
Customs
Myths
Mr Vaibhav is confused about using the marketing research process, as he knows that there is some
problem in business but not knowing the specific reasons to investigate. He is supposed to have
problems with:
a.
b.
c.
d.
Developing a research approach
Data Collection
Identifying Problem and research objectives
Developing the research plan
Alanna is looking into purchasing a scooter as gas prices continue to rise. She needs a reasonably
priced, comfortable, and safe scooter with room to store her books. She is not familiar with scooters,
and this is a major purchase for her. The purchase will probably involve:
a.
b.
c.
d.
e.
dedicated cognitive behavior
extensive decision making
limited decision making
low-involvement decision making
low-involvement problem solving
Mario usually purchases Old Spice deodorant. Unfortunately, the drug store is sold out of Old Spice
today, so Mario will have to choose a brand that’s in stock. In making his decision, Mario will engage
in _____ consumer decision making.
a.
b.
c.
d.
e.
Habitual
Classical
Limited
Extended
Routine