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Assignment 1: Knowledge test 1
Enterprise Innovation and markets (Western Sydney University)
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1.m
When buying your first car, you choose to buy a used Mazda 3 from a dealer rather than a
slightly cheaper Mazda 3 advertised privately. Your mum thinks you made a good choice, but
your dad thinks the privately advertised car would have been a better deal. Why is there a
difference in opinion?
Value means different things to different people
Value can be based on perception
Value can be a comparison of the benefits a customer receives from a product in
relation to its price
Value can include product quality and after sales service
All of the options listed
Successful businesses in the late 1900's were those that adopted a
pure competition strategy
diffrentiation strategy
market dominance strategy
market orientation startegy
market penetration strategy
Customers are a part of an organisation's _____________environment.
internal
micro
macro
internal and macro
customers are not part of the organisation's environment
Cultural factors influencing people's attitudes, beliefs, behaviours, preferences, customs and
lifestyles are known as
political forces
economic forces
sociocultural forces
technological forces
environmental forces
Marketing theories draw on many other disciplines including
all of listed options
management
economics
psychology
sociology
The marketing process cycle is
expensive to implement
an ongoing cycle
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based on competitors activities
determined by the SWOT model
all of the listed options
As part of your marketing PhD you decide to investigate factors affecting people's attitudes,
beliefs, behaviours, preferences, customs and lifestyles. These macro environmental forces
which you investigate are collectively known as
political forces
economic forces
sociocultural forces
technological forces
environmental forces
A devaluation of the Australian dollar makes exports cheaper and imports more expensive.
Within the macro-environment, this is known as a(n)
political force
economic force
sociocultural force
technological force
counter-trade force
At Coca Cola, the marketing department regularly conducts analysis that involves breaking the
marketing environment down into smaller parts in order to better understand it. This is an
example of
the PESTEL framework
environmental analysis
situational analysis
marketing planning
situational planning
Which of the following is not a part of an organisation's external environment?
Customers
Competitors
The micro-environment
Partners
None of the options listed
Marketing metrics are measures that are used to
assess the micro-environment
assess the macro-environment
assess marketing performance
assess marketing planning
all of the listed options
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Which of the following is part of an organisation's marketing environment?
The organisation's micro-environment
The organisation's macro-environment
Any internal or external force that affects the organisation's ability to create,
communicate, deliver and exchange offerings of value
All of the options listed
The organisation's internal environment
Your company has decided to investigate its likelihood of success if it expands its operations
from a national company to a multinational company. The key environmental factors that your
company must consider when analysing this extended marketing environment include political,
economic, _____________, technological, _____________ and legal forces.
sociocultural, environmental
cultural, environmental
global, sociocultural
global, environmental
social, cultural
Choose the best answer from the options below to complete the following sentence. An
organisation chart can be a useful tool to help analyse an organisation's
market perception
marketing mix
external environment
internal environment
sales force
_______________ is considered as the purpose for innovation, whether expressed in growth,
sustainability, improvement of social welfare or in financial terms.
Entrepreneurship
Corporate venture
Creating value
Unexpected occurrences
Nanotechnology
Turning niches into mass markets is an example of
Strategic selection
Dynamic capability
Cost innovation
Meeting social needs
All of the options listed
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Which of the following combinations best describes incremental innovation?
based on sustained technologies; needs to be nurtured for long periods; creates
new markets
immediate gains; based on disruptive technologies; develops customer loyalty
steady improvements; based on sustained technologies; needs to be nurtured for
long periods
can be rapidly implemented; based on sustained technologies; immediate gains
all the listed options
Creative replication of a concept, an existing service or a product are principles for the
Duplication type of
Incremental innovation
Cost innovation
Strategic advantage
Paradigm shift
Position dimension
Which of the following is not considered a type of incremental innovation?
extension
duplication
reduction
synthesis
all of the listed options
Public health care services, such as hospitals, have experienced major improvements in
efficiencies around key targets such as waiting times is a feature of
screening opportunities
cost innovation
innovation in meeting social needs
forced analogy
radical innovation
Providing customisation to value customers together with selling high-end products at
mass-market prices are examples of
Customer satisfaction
Cost innovation
Mass marketing
Technical innovation
Process needs
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Which of the following would not normally be considered a radical innovation?
The jet turbine engine
Integrated circuits
Increased colour choice on the Volkswagen 'Beetle' car
Antibiotic drugs
None of the listed options
Zara's (fashion store) how it has used innovation around design and "fast fashion" to create
new opportunities in a crowded and mature marketplace is an aspect of innovation known
as
improving operation
niche marketing
product differentiation
cost innovation
new ways of servicing existing markets
________________ is about making associations, often exploring round the edges of a
problem
Divergent thinking
Individual creativity
Marketing process
The context of success
Finding resources
Creativity is about
thinking skills
motivation
communication
none of the listed options
all of the listed options
When people are intrinsically motivated at their workplace they work towards achieving:
a promotion
personal challenge
higher pay
all of the options listed
none of the options listed
One of the challenges in creativity is that it sometimes involves
seeing things differently
changing perspectives
breaking the rules
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none of the listed options
all of the listed options
During the innovation stage knowledge is further refined through
mind maps
networking
feasibility test
research testing
social networks
Political behaviour and groupthink are social pressures that can
Damper an individual's creativity
Enhance group creativity
Improves innovation output
Reduces conflicts
Assist with strategic innovation
Our ability to think in metaphors and to visualise is strongly linked to
creative personality
innovative logic
pattern strategy
right side of brain
incremental behaviour
2.
Innovation managers and practising entrepreneurs in large businesses have learned from
the world of experience that successful innovators
build dynamic capability
manage innovation as a process
understand different dimensions of innovation
none of the options listed
all of the options listed
Examples of changes in mental models are
Shifts to low-cost airlines, online insurance.
Online insurance, new holiday package
New jet ferry, a revised university degree
All of the listed options
None of the listed options
…...begins with exploration of innovation space: where could we innovate and why would it
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be worth doing so?
Sources of innovation
Cost innovation
Entrepreneurialship
Strategic analysis
New product development
Knowledge-based innovations differ from all other innovations due to
The time they take
Their casualty rates
Their predictability
None of the options listed
All of the options listed
The multipurpose smartphone is an example for which type of innovation?
extension
duplication
synthesis
creative
Radical
Innovation can take many forms, all involving a change of some kind. Which of the following
is NOT a form of innovation?
Product (or service) innovation - changes in what is offered to the world
Price innovation - offering deals, price discounts and price competition
Process innovation - changes in the way offerings are created and delivered
Position innovation - changes in the context in which innovations are
launched
None of the listed options
Economists generally share an agreement that ______________ accounts for a sizeable
proportion of economic growth.
Marketing
Scientific research
Mining
Innovation
Entrepreneurship
The action of making an association between two unlike things in order to obtain new
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insights is called
forced analogy.
attribute listing.
scenario thinking.
problem reversal.
brainstorming.
The minimum viable product is an approach for
Implementing innovation
Designing dynamic capabilities
Situational analysis
All of the listed options
None of the listed options
Tidying up an idea and building on their initial insight is known as
Problem reversal
Mind mapping
Validation
Positioning
Emotional attachment
Turning defeat into victory and figuring out what everybody else is not doing stimulates our
mind mapping
personality
motivation
creativity
knowledge
Knowledge constitutes the essence of _________ and is intrinsically related to the
creativity-innovation-entrepreneurship process.
abilities
skills
capabilities
none of the listed options
all of the listed options
Which of the following is not considered a component of creativity?
Creative thinking skills
Imagination
Knowledge
Motivation
None of the listed options
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The right hemisphere of the brain deals with
recognising
rationality
association
facts
Dreams
In a SWOT analysis, an organisation's core competencies and competitive advantages
would be classified as
opportunities
strengths
weaknesses
threats
none of the options listed
The global financial crisis was an example of what type of macro-environmental force?
Political.
Sociocultural.
Competitive.
Economic.
Technological
Working for the Aldi supermarket chain, you are very aware of the activities of your
company's competitors - Coles and Woolworths - and find that you frequently make
changes to your business in response to actions they have taken. You also notice that they
react when you make changes to your business offering. This competition is occurring
within the
internal environment
micro-environment
the competitive-environment
the macro-environment
none of the listed options
As the recently appointed marketing manager for a growing fashion brand, you spend your
first few months in the job understanding the business, your competitors businesses and the
marketing environment. The comprehensive understanding you are engaged in is known as
marketing planning
situational analysis
the competitive analysis
company analysis
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market potential analysis
The marketing department of a large retail company assesses their current situation in order
to clearly state where the company is now. This is an example of the company
conducting a situational analysis
performing marketing planning
deciding organisational objectives
conducting an organisational analysis
assessing past strategies
The rising use of social networking sites could be attributed to
sociocultural forces
competitive forces
international forces
legal forces
economic forces
In an attempt to overcome legal regulations, an industry body may attempt to influence
which aspect of its marketing environment?
Sociocultural
Political
Competitive
Economic
all of the listed option
A degree in Marketing will qualify you for a job in which of the following organisations?
Governments
Not-for-profit organisations
Multinational organisations
All of the options listed
Large organisations
Customers for not-for-profit organisations or social marketers are known as
consumers
targets
clients
agents
all of the listed options
Marketing is considered to be
a learning process
a science
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an art
none of the listed options
all of the listed options
Strengths are the attributes of an organisation that
are internal factors that are able to be controlled
are internal factors that are not able to be controlled
are external factors that are able to be controlled
are external factors that are not able to be controlled
None of the options listed
Cartwrights Law Firm spends time analysing the political, economic, sociocultural,
technological, environmental and legal factors which are affecting their organisation. These
factors form the _____________ environment?
macro
internal
micro
ethical
all of the options listed
A market can best be described as
a group of customers with similar needs and wants
a group of customers with different needs and wants
a group of customers living in the same geographic area
a group of potential customers within a similar age range
a group of potential first time customers
3.
The issues, problems and difficulties with innovation is
Very easy to implement
A risky business by its nature
There are already many ideas
Costs a lot of money
Difficult to come up with creativity
Doing what we do better and creating opportunities are considered to be
Aspects of innovations
Marketing responsibilites
Disruptive innovations
Incremental creativities
None of the options listed
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Innovation does not happen in a vacuum, the context of innovation is shaped by
a marketing plan
proactive links
influential shareholders
the size of the organisation
all of the options listed
Which of the following would you NOT class as a radical innovation?
The fibre tip pen
The electric light bulb
The laser
The photocopier
None of the listed options
According to Drucker, which of the following is not considered a source of innovation within
companies or industries?
industry and market changes
process needs
incongruities
perceptual change
unexpected occurrences
Situational analysis, together with the organisations objectives form the basis for developing
the marketing plan. Marketing plans are detailed documents; however, commonly, decision
makers only read which section?
The introduction
The marketing mix strategy
The executive summary
The conclusion and future recommendations
None of the options listed
When using the PESTEL framework, marketers are investigating
internal forces
macro-environmental forces
micro-environmental forces
competitive forces
total market
Marketing metrics' underlying principles are that metrics should be linked to
organisational objectives
situational analysis
strategy
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market position
investment analysis
Which of the following would not be a part of an organisation's micro-environment?
Competitors
Suppliers
Customers
The economy
Retailers
An organisation recognising the ageing population and offering a seniors' discount for older
customers is most likely to be responding to
technological forces
political forces
sociocultural forces
legal forces
environmental forces
Each year the Australian department store Myer holds a fashion parade as a public relations
event to launch the next season's fashion. Along with the media, they invite key
stakeholders such as their most valuable customers. These customers can best be
described as people who
purchase products for their own or someone else's use
actually use a purchased good or service
will potentially purchase a Myer product
have occasionally entered a Myer premises
none of the options listed
You purchase a can of drink for a friend. This makes you a
consumer
customer and consume
partner
customer
all of the listed options
Which of these is the aim of marketing?
To maximise profits for the business owners
To develop organisational goals
To develop mutually beneficial exchanges
To organise the various functions efficiently and effectively
all of the listed options
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SWOT is short for
situation, weakness, opportunities and threats
strengths, weaknesses, opportunities and threats
situation, weaknesses, opportunities and threats
strengths, weakness, opposition and threats
strengths, weakness, openess and threats
Quantity of ideas is an important rule to follow in
new product development
product feasibility
brainstorming
market feasibility
None of the listed options
Chinese thinker Lao Tzu philosophy maxims often expressed all behaviour consists of
greed
opposites
emotions
rewards
ideas
Which of the following is not considered a factor that influences creativity?
Encouragement of creativity
Autonomy
Resources
Pressures
None of the listed options
Ensuring all the possible elements of a problem are examined is
validation
cost innovation
strategic implementation
attribute listing
building dynamic capability
Which of the following combinations best describes disruptive innovation?
experimentation; needs to be nurtured for long periods; creates new markets
immediate gains; based on disruptive technologies; develops customer
loyalty
steady improvements; based on sustained technologies; needs to be nurtured
for long periods
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can be rapidly implemented; based on sustained technologies; immediate
gains
none of the listed options
The 'back-scratcher' approach works best in which of the following circumstances?
When target customers don't need and don't value all the performance that
can be packed into products, and when existing competitors don't focus on low-end
customs.
When customers are frustrated by their inability to get a job done, and
competitors are either fragmented or have a disability that prevents them from responding.
When customers are locked out of a market because they lack skills, access
or wealth. Competitors ignore initial developments because they take place in seemingly
unpromising markets.
None of the listed options.
All of the listed options.
Entrepreneurship can occur with little, if any,
Marketing
Innovation
Strategy
Resources
All of the options listed
Creating effective networks, outsourcing and coordination of a virtual organisation is an
example of
Creating dynamic capability
Strategic advantage
Meeting social needs
Creating social value
Perceptual changes
Rethinking of services and meeting social needs are aspects of
positioning
innovation
disruptive creativity
identifying opportunities
incongruities
If innovation is only seen as associated with key individuals, it will
fail to utilise the creativity of the remainder employees
create the "not invented here" effect
produce the products that the market does not want
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create unprofitable outcomes for the firm
all of the options listed
Which of the following is NOT an example of product innovation?
A new toothpaste
A new car design
A new version of the iPod
Computer-control of manufacturing operations
None of the listed options
An organisation that outsources functions that can be done more efficiently by specialist
external providers is shifting those functions from
its micro environment to its macro environment
its internal environment to its micro environment
its internal environment to its macro environment
its macro environment to its micro environment
none of the options listed.
Factors that are beyond the organisation's direct control, though the organisation may be
able to have some influence over them, are
threats and weaknesses
weaknesses and opportunities
opportunities and threats
opportunities and strengths
strengths and weaknesses
As the marketing manager of Cadbury Chocolate in Australia, you regularly receive reports
on your products' brand equity, customer satisfaction, and market share data. These figures
are all examples of
marketing metrics
a situational analysis
marketing planning
an environmental analysis
the marketing environment
Internal marketing is practised through internal
communications
market research
training
all the listed options
none of the listed options
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As part of their regular SWOT analysis, Dell computers reviews their strengths; the
attributes of Dell computers that
are internal factors that are able to be controlled
are internal factors that are not able to be controlled
are external factors that are able to be controlled
are external factors that are not able to be controlled
none of the options listed
Marketing is viewed by many organisations largely as
an investment rather than as a cost
a sales function rather than as an investment
a cost centre rather than as a sales
a cost rather than as an investment
all of the listed options
Which phase of the marketing process explains why car marketers, for example, would
access market insight reports from a market research company such as the Nielson
Company?
Understand
Create
Communicate
Deliver
Exchange
Value refers to
bargain pricing
economic benefit
total offering
all of the listed options
competitive advantage
The successive stages of ideas generation, ideas evaluation and ideas implantation
can overlap
can be non-linear
can be rearranged
all the listed options
none of the listed options
Diversity in network ties is essential for would-be entrepreneurs as it widens the scope of
information about
potential innovation
business locations
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assistance schemes
sources of capital
all of the options listed
How many opportunities do not pass the product feasibility test because the innovation is
not genuinely novel, it cannot be patented or the entrepreneur does own the technology or
somebody else, somewhere else has already disclosed and/or patented it?
less than 25%
about 50%
more than 75%
95%
10%
A rule of thumb is that new technology should have at least _________ feature/s that
promise/s to be ten times better that its rivals.
three
one
five
two
four
Multiple resources around the problem and volume of ideas can
reduce a group s innovation
enhance group creativity
assist in innovation output
reduce conflicts
assist with strategic incubation
5. Occasional flashes of insperation and long periods of incremental improvements are
patterns for
building capabilities
strategic analysis
new product development
innovation
all of the listed options
During the innovation stage knowledge is further refined through
mind maps
networking
feasibility test
research testing
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social networks
The term ______________ refers to somewhere between having too few and too many
constraints.
mental crisis
critical deviation
creative constraints
sweet spot
mental block
Creativity is the point of origination for innovation and entrepreneurship. It can produce of
new and ___________ works
useful
profitable
scalable
original
all of the listed options
The creative process of mind map starts with the basic problem as the centre and
generates ________ in order to arrive at a large number of different approaches.
action plans
strategies
decisions
associations
all of the listed options
With the development of infrastructure and technologies such as production lines,
businesses such as the Ford Motor Company focused on manufacturing large quantities of
goods, which they seemed to have no trouble selling. People were happy to buy what was
available. Which era of marketing does this description relate to?
Market
Production
Consumer
Sales
Socially responsible
Marketing is an approach to business that puts the __________ at the heart of business
decisions.
product
company
customer, client, partner and society
bottom line
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Employee
The level of consumer awareness of a company's product would be an example of which
marketing metric?
Brand equity
Return on investment
Customer satisfaction
Market share
All of the listed options
Which of the following statements is correct?
The internal environment includes those factors that are not controllable by
the organisation
Weaknesses are internal factors that marketers cannot control in the medium
term
The internal environment includes factors that are controllable by the
organisation
The internal environment is always difficult to understand within large
organisations
none of the listed options
An organisation or individuals involved in activities for creating, communicating and
delivering offerings for exchange are known as
intermediaries
agents
networks
partners
all of the options listed
Marketing inherited the concept of exchange from
psychology
trade
science
ancient greece
Economics
Marketers use market research to understand consumer
motivation
abilities
opportunities to act
none of the listed options
all of the listed options
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Enterprises which survive do so because they are capable of
global innovation
cost innovation
strategic evaluation
focused change
perceptual changes
Plenty of evidence suggests that firms can and do learn to manage the process for success,
by building and developing their
Innovation capability
New product and service strategies
Technological innovation
Research creativity
Radical innovation
The 'bottleneck buster' approach works best in which of the following circumstances?
When target customers don't need and don't value all the performance that
can be packed into products, and when existing competitors don't focus on low-end
customs.
When customers are frustrated by their inability to get a job done, and
competitors are either fragmented or have a disability that prevents them from responding.
When customers are locked out of a market because they lack skills, access
or wealth. Competitors ignore initial developments because they take place in seemingly
unpromising markets.
All of the listed options.
None of the listed options.
Innovation can take many forms. Running a hospital booking system which reduces patient
waiting time is an example of which kind of innovation?
Process
Product
Position
Paradigm
None of the listed options
Questions such as - what are we going to need? How will we get resources? are dealt with
in
strategic implementation
recognising opportunities
research dynamics
creating ongoing value
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social and intellectual occurrences
Which of these would NOT normally be considered an incremental innovation?
An electric car
A low fat hamburger
Faster train journeys through better signalling
Chicken and onion flavoured potato snacks
A 65 inch plasma television
Internal entrepreneurs are often called
Antrapreneurs
Intrapreneurs
Social leaders
Organisational mavericks
Risk takers
If innovation is only seen as a strong R&D capability, it will result in
lack the involvement of others
technology which fails to meet user needs and may not be accepted
becoming simply a matter of filling in shopping lists of needs
all of the options listed
None of the listed options
The action of viewing a problem from an opposite angle is called
forced analogy
attribute listing
scenario thinking
problem reversal
all the listed options
A good idea is ______ to start-up a business venture.
not enough
sufficient
essential
important
necessary
A business plan involves planning resources and developing a budget which is then
compared with sales projections to ascertain the true
competitive situation in the market place
market size that can be captured
level of positioning
number of product attributes
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all of the options listed
If in doing a SWOT analysis an organisation identified that its retail store site was poorly
located, this would be an example of
a threat
an external factor that cannot be controlled by the organisation
a strength
a weakness
None of the options listed
You decide to do a situational analysis, investigating all the internal and external forces that
affect your ability as a marketer to create, communicate, deliver and exchange offerings of
value. Which environment are you analysing?
The marketing environment
The macro environment
The legal environment
The sociocultural environment
None of the options listed
Qantas understands that while creating, communicating, delivering and exchanging
offerings of value, as an organisation they can only control their
external environment
internal environment
political environment
macro environment
none of the options listed
Factors that are beyond the organisation's direct control, but require an effective response
by an organisation are
weaknesses
strengths and weaknesses
strengths
opportunities and strengths
threats
Creating an innovation strategy involves three key steps
process, position and ideas
creativity, innovation and entrepreneurship
analysis, selection and implementation
resources, venture and value
product, process and innovation
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Organisational overall objectives together with marketing objectives should be
Actionable
Reasonable
Timetabled
Specific
all of the listed options
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Assignment 1: Knowledge test 2
Enterprise Innovation and markets (Western Sydney University)
StuDocu is not sponsored or endorsed by any college or university
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Which of the following statements is incorrect?
Advertising is the transmission of paid messages about an organisation, brand or product to a
mass audience.
Advertising is generally expensive, but offers the potential advantage that it is possible to reach
a large number of people at a relatively low cost per person.
Choosing appropriate media makes it possible to aim advertising at potential target markets
The choice of media in which to advertise can positively or negatively impact on a brand's
image.
Advertising enables personalisation of the marketing message.
Which of the following would be classed as a product differentiator?
Features.
Quality.
Design.
Brand.
All of the options listed.
Coca Cola is available in vending machines, bars and clubs, supermarkets, petrol
stations, corner stores and at sporting events. This approach to market coverage is
known as:
intensive distribution.
direct distribution.
indirect distribution
exclusive distribution.
selective distribution.
'Upsize' deals at fast food restaurants are examples of pricing a product at a moderate
level and then positioning it next to a more expensive model. This is known as:
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cost-based priding.
price skimming.
penetration pricing.
reference pricing.
David has decided to buy a new pair of work shoes, so he spends his afternoon
shopping for a new pair. When classifying products, the category of 'shopping products',
which includes shoes, also includes:
impulse products.
staple products.
emergency products.
none of the options listed.
If a consumer is prepared to spend time comparing competing offerings before making a
purchase decision, the product is most likely to be a(n):
unsought product.
specialty product.
convenience product.
shopping product.
core product.
Intermediaries in a distribution channel can include:
wholesalers.
retailers.
industrial buyers.
All of the options listed.
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Which of the following statements is incorrect?
Public relations campaigns are generally high cost.
Public relations activities include communications aimed at creating and maintaining
relationships between an organisation and its stakeholders.
Public relations activities can be used as a tool to combat negative perceptions or events.
An organisation submitting a press release to the media is an example of a public relations
activity.
All of the options listed.
Capilano Honey differentiates its product from competing products using packaging; a
fundamental characteristic. This approach could be best described as differentiating at
which level of the total product concept?
Core product.
Expected product.
Augmented product.
Potential product.
Actual product.
While on an overseas holiday, John and Elizabeth decide to hire a car. During their
travels, the car breaks down and they decide that they have to take it to a mechanic.
There are several mechanics in the town that they are in. Which of the following forms of
physical evidence could they use to evaluate each of the mechanics before deciding
which one to choose?
Staff uniforms.
Shop fittings.
Delivery vehicles.
Brochures.
All of the options listed.
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Macroeconomics is the branch of economics that focuses primarily on:
the behaviour of the individual units that make up the total economy.
the interactions between buyers and sellers in individual markets.
the behaviour of buyers and sellers in individual markets.
how individual firms make their production decisions.
aggregated economic activities.
Markets in which firms sell their output are called:
capital markets.
stock markets.
labour markets.
farmers' markets.
product markets.
An increase in the price of a substitute product will normally cause:
a movement along the demand curve such that quantity demanded declines.
the demand curve to shift to the right.
an individual to decrease consumption of any goods she purchases.
the demand curve to shift to the left.
a movement along the demand curve such that quantity demanded increases.
The curve that describes the quantities of a product that a firm would like to sell at
different prices is called the:
demand curve.
supply curve.
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production possibilities curve.
budget constraint.
opportunity set.
An increase in the price of coffee is likely to result in:
a rightward shift in the demand curve for coffee.
an increase in the demand for products that are complements to coffee, such as cream.
a decline in the demand for products that are substitutes for coffee, such as tea.
an increase in the demand for products that are substitutes for coffee, such as tea.
a leftward shift in the demand curve for coffee.
A reduction in the price of an input will normally cause:
a movement along the supply curve such that quantity supplied declines.
the supply curve to shift to the left.
the supply curve to shift to the right.
a firm to decrease the amount it offers for sale.
a movement along the supply curve such that quantity supplied increases.
Along an individual demand curve, a reduction in quantity demanded occurs when:
price has increased
price has decreased.
the consumer's income has fallen.
the consumer's income has increased.
a reduction in price induces the individual to increase consumption.
If the price of a product increases, but the quantity demanded does not decline at all, the
demand for this product in this price range:
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is perfectly price elastic.
is price elastic.
has a price elasticity of unity.
is price inelastic.
is perfectly price inelastic.
Total revenue will decline if the price __ when the demand curve __.
rises; has unit price elasticity.
falls; has unit price elasticity.
rises; is price elastic.
rises; is price inelastic.
falls; is price elastic.
The macroeconomic perspective:
involves analysis of the behaviour of individual units in the economy.
studies how consumers and firms make decisions.
involves a detailed study of the product, labour, and capital markets.
is a top-down view of the economy.
is a bottom-up view of the economy.
The market demand curve is:
derived by vertically summing the individual demand curves at each quantity.
derived by horizontally summing the individual demand curves at each price.
derived by vertically summing the individual demand curves at each price.
derived by horizontally summing the individual consumer's demand curves at each quantity.
independent of individual demand curves.
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Market _________ involves a systematic examination of the range of possible market
segments, their potential _________ and revenues, and the relative ability of the
organisation to satisfy the expectations of members of these market segments.
segmentation, profits
targeting, sales volume
segmentation, sales volume
targeting, profits
A credit union that provides a wide range of financial services to members who are
employed in particular industries would be best described as having:
a market specialisation.
a product specialisation.
a service specialisation.
a product-market specialisation.
None of the options listed.
Organisations that pursue a specialisation strategy seek to establish a dominant position
in their chosen _________ market.
product.
consume.
producer.
niche.
Subaru built its early reputation in Australia by targeting visitors to, and residents of the
snow country. This method of market segmentation could best be described as:
geographic.
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demographic.
psychographic.
behavioural.
geo-psychographic.
Which of the following is not a behavioural segmentation variable?
Consumer's benefit expectations of a product.
The occasion for which a product may be purchased by a consumer.
Heavy, medium or light users of a product.
Brand loyal consumers.
All of the options listed are behavioural segmentation variables.
The three main stages of the targeting process, in chronological order, are:
targeting, positioning, segmentation.
segmentation, positioning, targeting.
segmentation, targeting, positioning.
targeting, segmentation, positioning.
None of the options listed.
Which of the following best describes the broad concept of a market?
A group of customers with heterogeneous needs and wants.
A group of customers with homogenous needs and wants.
The business-to-consumer market.
The business-to- business market.
None of the options listed.
A target marketing strategy in which all marketing efforts are focused on meeting a wide
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range of needs within a particular market segment is called:
product specialisation.
product-market specialisation.
market specialisation.
market-product specialisation.
There are two steps in the market segmentation phase: ___________ that can be used to
define meaningful market segments; and _____________the market segments so they
can be assessed in the second stage of the target marketing process.
market research, surveying
market research, profiling
identifying variables, profiling
identifying variables, surveying
In terms of the total product concept, product differentiation occurs mainly at the
__________level.
augmented
core
expected
life cycle
growth
Shopping products include:
impulse products.
staple products.
emergency products.
none of the options listed
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Milk could best be described as a product that is ________ distributed.
intensively
selectively
exclusively
directly
None of the options listed.
Boarding your Emirates flight to London, you notice the pilot in his smart uniform and
the flight attendants looking very well dressed. The cabin is quite spacious and there is
plenty of room for your carry-on luggage. From these visual cues you feel reassured and
confident that the flight will be enjoyable. Visual cues are a characteristic of services
known as:
intangibility.
inseparability.
heterogeneity.
perishability.
physical evidence.
Integrated marketing communications (IMC) is the term given to the coordination of
promotional efforts to maximise the communication effect. Its primary goal is:
creating and maintaining relationships between the marketing organisation and its stakeholders.
to reach a lot of people at a relatively low cost per person.
to consistently send the most effective possible message to the target market.
offer extra value to resellers, salespeople and consumers in a bid to increase sales.
Apple MacBooks are available from licensed retailers and distributors in Australia.
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Retailers are licensed based on reputation and service, adding value to the strong Apple
brand. This approach to market coverage is known as:
intensive distribution.
direct distribution.
indirect distribution.
exclusive distribution.
selective distribution.
Stable products, impulse products and emergency products are all examples of:
convenience products.
specialty products.
unsought products.
shopping products.
A clothing company manufactures a range of underwear, singlets, socks and t-shirts for
both men and women. This range is known as the company's:
product capacity.
product item.
product line.
product mix.
For which of the following segmentation variables is it more likely to be difficult to
measure and obtain accurate data?
Demographic variables.
Organisational size.
Psychographic variables.
Geographic variables.
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All of the options listed are difficult to measure.
When the marketer seeks to ________and ___________those parts of the total market
that it can offer the most_________, the approach is known as the _________ marketing
concept.
grow, understand, benefit, total
identify, understand, value, target
identify, grow, value, total
identify, understand, value, total
The broad market segments of 'Baby Boomers', 'Generation X', 'Generation Y' and
Generation Z' have been created primarily based upon:
psychographic variables.
behavioural variables.
demographic variables.
geo-demographic variables.
None of the options listed.
Which of the following statements is false?
A product, organisation or brand may be able to be repositioned.
The positioning of an organisation, its product/s and brand/s should be consistently reinforced.
The positioning of an organisation, its product/s and brand/s should be changed regularly.
Positioning is based on customer perceptions as well as reality.
How an organisation wishes to position its product offering to a target market should influence
the development of its marketing mix for that target market.
An organisation that segments its market by offering rewards based on the amount of
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points accumulated on its loyalty card would be best described as utilising:
demographic segmentation.
psychographic segmentation.
behavioural segmentation.
geo-demographic segmentation.
none of the options listed.
Which of the following statements is correct?
A market segment has distinctive needs, but more than 33.3% of the members of the segment
have similar needs.
A market customised target segment has similar needs, but the members of the segment have
distinctive needs.
An architect designing a couple's 'dream' home is an example of customised marketing.
A customised market segment has between 49% to 66.6% of potential needs
As an importer of surfing accessories, your company focuses its marketing operations in
the warmer coastal regions of Australia. This action is an example of:
geographic segmentation.
psychographic segmentation.
behavioural segmentation.
demographic segmentation.
You open a liquor store, selling only boutique wines (produced in smaller quantities and
as such not sold through major retailers) from the Hunter Valley in NSW. Your specialised
approach to the target market is:
product specialisation.
market specialisation.
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product-market specialisation.
differentiated target marketing
The demand curve is downward sloping, which means that the quantity demanded for a
good ___ when its price ______.
rises; rises
falls; falls
is unchanged; falls
is unchanged; rises
falls; rises
Along an individual firm's supply curve, an increase in a quantity supplied occurs when:
price has increased.
price has declined.
the firm's profit has fallen.
the wage rate paid to the firm's workers increases.
the firm is induced to offer more for sale at a lower price
If the demand for a product is price elastic, total revenue will:
be unchanged regardless of the direction of the price change.
fall if price is reduced.
increase if price is increased.
increase if price is reduced.
increase regardless of the direction of the price change.
All of the following, except one, will increase the quantity of butter supplied at each
price. Which will not?
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A climate change that improves cows' milk yield
Increased concern about the health risks associated with eating butter
A fall in the price of milk
A new discovery that makes it cheaper to make butter from milk
A reduction in the price of milking machines
If a firm raises the price of its product and finds that total revenue has fallen, this
indicates that:
demand for the product is price inelastic.
demand for the product has unit price elasticity.
the demand curve for the product is downward sloping.
the price elasticity is greater than one.
demand for the product is price elastic
An increase in the price of butter is likely to result in:
a movement along the demand curve for butter such that quantity demanded increases.
a rightward shift in the demand curve for margarine.
an increase in the quantity of butter demanded.
a leftward shift in the demand curve for margarine.
a movement along the demand curve for margarine such that quantity demanded increases.
At the equilibrium price:
price will tend to fall.
the quantity supplied exceeds the quantity demanded.
price will tend to increase.
the quantity supplied is less than the quantity demanded.
there is no reason for the price to change
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An individual is typically willing to purchase more of a good at lower prices, which
implies that the individual demand curve will be:
horizontal.
vertical.
upward sloping.
downward sloping.
of indeterminate shape.
If a firm lowers the price of its product and finds that total revenue has fallen, this
indicates that:
demand for the product is price inelastic.
demand for the product is price elastic.
demand for the product has unit price elasticity.
the demand curve for the product is downward sloping.
the price elasticity is greater than 1.
If a firm raises the price of its product and finds that total revenue has increased, this
indicates that:
demand for its product is price elastic.
demand for the product has unit price elasticity.
demand for the product is price inelastic.
the demand curve for the product is downward sloping.
the price elasticity is less than 1.
In the labour market, households:
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lend labour services.
sell labour services.
buy firms' output.
buy and sell labour services.
lend money to firms.
Diamonds command a higher price than water because they have a:
higher value in use.
lower value in exchange.
higher marginal value.
lower value in use.
higher total value.
A technological improvement will normally cause:
the supply curve to shift to the right.
a movement along the supply curve such that quantity supplied declines.
an individual to increase consumption of any goods she purchases.
a movement along the supply curve such that quantity supplied increases.
the supply curve to shift to the left.
Households are ____ in the product market, ____ in the labour market, and ____ in the
capital market.
lenders; consumers; sellers
consumers; lenders; sellers
consumers; sellers; lenders
consumers; sellers; consumers
consumers; buyers; borrowers
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At any price above the equilibrium price:
the sellers can sell all they offer for sale.
the quantity supplied is greater than the quantity demanded.
the price will rise.
the quantity supplied is less than the quantity demanded.
consumers cannot buy all that they wish to.
If the market price of a good is such that consumers wish to buy less of the good than
firms are offering for sale, the excess ___ will cause price to ___.
demand; fall
supply; rise
price; fall
supply; fall
demand; rise
The primary focus of economics is on:
government decisions about which wants have to go unsatisfied.
implementing a market system.
choices that must be made.
rising prices.
providing consumers with perfect information.
The total product concept broadly describes a product as a bundle of attributes, creating
value for the customer. Specifically, a product can be defined as the core product,
expected product, __________ product and __________ product.
associated, final
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augmented, potential
augmented, serviced
associated, finished
Apple and Virgin are two companies who frequently use public relations campaigns to
generate awareness of and interest in the products and services they offer to the market.
Public relations campaigns such as those run by Apple and Virgin have a number of
characteristics, but these characteristics do not include which of the following
statements?
Public relations campaigns are generally high cost.
Public relations activities include communications aimed at creating and maintaining
relationships between an organisation and its stakeholders.
Public relations activities can be used as a tool to combat negative perceptions or events.
An organisation submitting a press release to the media is an example of a public relations
activity.
All of the options listed.
Which of the following best describes the concept of product differentiation?
How a product evolves as it moves from one phase of the product life cycle to the next.
The creation of products and product attributes that distinguish one product from another.
The creation of physical goods that are distinguished from competitor's physical goods.
The creation of services that are distinguished from competitor's services.
None of the options listed.
A target market can best be described as:
the total market for a product.
a group of customers with different needs and wants.
a group of customers with similar needs and wants.
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customers who currently purchase an organisation's products.
customers who don't currently purchase an organisation's products.
A dairy company manufactures a range of flavoured skim milks. This range is known as
the company's:
product capacity.
product item.
product line.
product mix.
Big Australian retail outlets such as Kmart, Big W and Target stock a wide range of
consumer products. The consumer products stocked by these retailers can be best
categorised as:
shopping, convenience and specialty products.
shopping, convenience and unsought products.
shopping, convenience, specialty and unsought products.
shopping, convenience, core and augmented products.
shopping, convenience, specialty and core products.
Which of the following statements is incorrect?
A service is a product.
A physical good is a product.
A service usually involves transfer of ownership.
A physical good is tangible; a service is intangible.
None of the options listed.
Which of these is the definition of 'product'?
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A physical, tangible offering, capable of being delivered to a customer.
A good offered to the market for exchange.
A good, service or idea offered to the market for exchange.
An intangible offering to the market.
As the marketing manager for Samsung, you realise the need to differentiate your range
of smart phones in the minds of your consumers. All mobile phones these days make
phone calls and connect to the internet; so at which product level are you most likely to
be able to differentiate your phones from your competitors' offerings?
Core.
Expected.
Augmented.
None of the options listed.
Which strategy would most accurately describe the marketing efforts of a major car
manufacturer such as Toyota?
Mass marketing.
Customised.
Differentiated targeting.
Production-oriented.
Undifferentiated targeting.
As a marketing manager, you undertake research to understand how potential buyers
see your brand. Your research is aiming to identify your brand's:
position.
value.
benefit.
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potential.
Evaluating and selecting market segments is part of the ____________ stage of the target
marketing process.
segmentation
positioning
targeting
final
first
Which of the following statements is correct?
Mass marketing is best suited to situations where buyers have common wants, needs and
demands.
Target marketing is best suited to situations where subgroups in the market can be identified
that have similar characteristics.
One-to-one marketing is best suited to situations where buyers have unique wants, needs and
demands.
All of the options listed.
The market supply curve is:
derived by vertically summing the individual firms' supply curves at each quantity.
derived by horizontally summing the individual firms' supply curves at each quantity.
derived by vertically summing the individual firms' supply curves at each price.
derived by horizontally summing the individual firms supply curves at each price.
independent of the individual firms' supply curves.
The plans of buyers and sellers are mutually compatible when:
the equilibrium price is established.
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consumers are able to purchase the quantity of the good that they want to purchase, but firms
cannot sell all they offer for sale.
there is excess supply.
sellers are able to sell the quantity of the good that they offer for sale, but consumers cannot
purchase all they want to.
consumers and sellers agree that the price is fair.
If there is excess supply at the existing price:
the quantity supplied rises, but there is no change in the quantity demanded.
the price of the good tends to decline.
sellers enter the market.
the price of the good tends to increase.
the quantity demanded rises, but there is no change.
We observe causation, and not just correlation, if:
two variables move in the same direction.
a change in one variable is responsible for change in some other variable.
two variables move in opposite directions.
a change in one variable is later followed by a change in some other variable.
two variables change at the same time.
The concept of demand refers to the quantity of a good that buyers:
would like to buy at a given price.
need to maximise satisfaction.
are able to purchase in the marketplace.
would purchase if they had unlimited income.
would be willing to sell at a given price.
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Assume that the forces of supply and demand operate freely. All of the following
statements, except one, are true in this situation. Which is not?
When the price of a good rises, producers are encouraged to produce more of the good and
consumers are encouraged to purchase less of the good.
Prices measure relative scarcity.
Prices provide incentives to use scarce resources efficiently.
Prices convey critical economic information.
When the price of a good rises, producers are encouraged to produce less of the good and
consumers are encouraged to purchase more of the good.
Which of the following statements is correct?
Psychographic segmentation variables include consumer personality attributes.
Psychographic segmentation variables include consumer lifestyles.
Psychographic segmentation variables include consumer motives.
All of the options listed.
The three main stages of the targeting process, in chronological order, are:
targeting, positioning, segmentation.
segmentation, positioning, targeting.
segmentation, targeting, positioning.
targeting, segmentation, positioning.
None of the options listed.
Which of the following statements is/are correct?
Market potential refers to the minimum possible sales in the total market for a product category,
by all organisations.
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Market share refers to at least 33.3% of the total segmented market held by an organisation
when compared with last year marketing plans.
The level of industry marketing activity will generally influence the market potential of a product
category.
All of the options listed.
A group of customers with heterogeneous needs and wants is known as a:
network.
consumer market.
producer market.
market.
An overall market may be able to be broadly broken down into:
a micro-environment.
consumer and business markets.
a marketing mix.
a market position.
None of the options listed.
Woolworths understands that their market is made up of buyers with diverse needs; their
customers have unique wants, needs and demands. The market that Woolworths sells to
is said to be:
homogenous.
heterogeneous.
target markets.
mass markets.
niche markets.
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Which of the following statements provides the best description of the marketing
concept of positioning?
The methods followed by an organisation when promoting its products in the market.
How target markets perceive an organisation, its products and brands in relation to competitors.
An organisation's market share in relation to competitors.
An organisation developing an appropriate marketing mix for a target market segment.
An organisation identifying target markets for its products.
Which of the following statements is correct?
An organisation can implement sales promotion strategies to offer extra value to consumers in a
bid to increase sales.
An organisation can implement sales promotion strategies to offer extra value to retailers and
salespeople in a bid to increase sales.
An organisation can implement sales promotion strategies to smooth demand.
All of the options listed.
An approach in which a product is promoted to consumers to create demand upward
through the marketing distribution channel is known as a:
promotional policy.
pull policy.
push policy.
philanthropic policy.
A product can be:
an idea.
a good.
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a service.
a person.
all of the options listed.
In Australia, Toyota has begun offering fixed price servicing on new cars for the first 3
years. This approach could be best described as differentiating at which level of the total
product concept?
Core product.
Expected product.
Augmented product.
Potential product.
Actual product.
A brand is a collection of ______, such as a name, logo, slogan and design, intended to
create an image in the customer's mind that ________ a product ______ competitors'
products.
signs, associates, from
symbols, associates, with
symbols, differentiates, from
signs, differentiates, with
The characteristics that formally distinguish services from goods are intangibility,
inseparability, __________ and perishability.
benefits
heterogeneity
homogeneity
tangibility
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At which product level is a marketer most likely to be able to differentiate a product?
Core.
Expected.
Augmented.
None of the options listed.
Choose the best answer to complete the following sentence. Product differentiation
should:
make a product more affordable.
make a product more exclusive.
aim to create a competitive advantage for the organisation.
provide ideas for future products.
correlate with the organisation's promotional campaign.
Which of the following statements is incorrect?
A service is a product.
A physical good is a product.
A service usually involves transfer of ownership.
A physical good is tangible; a service is intangible.
None of the options listed.
Which of the following statements is incorrect?
An exchange of value always involves a monetary transaction.
Price is a measure of value for buyers.
Price is a measure of value for sellers.
Not-for-profit organisations may charge a price for their products.
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All of the options listed.
A brand can be:
a collection of symbols intended to create an image in a customer's mind.
a name that differentiates a product.
the bundle of attributes of a product.
anything offered to a market.
In the 7Ps framework, distribution is also known as:
people.
place.
partners.
product.
process.
As an agent for Massey Ferguson tractors, you are classed as an intermediary. Other
intermediaries in the distribution channel for tractors and farm equipment include:
wholesalers.
retailers.
industrial buyers.
all of the options listed.
A group of customers with similar needs and wants is known as:
a population.
people.
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a demographic.
a target market.
The number of possible segments grows by multiples when an additional
segmentation variable is added. For example, adding gender ________ the number of
market segments.
doubles
intensifies
expands
triples
strengthen
Market segmentation variables should always:
require a lot of market research to obtain.
be linked closely to the purchase of the product in question.
segment a market geographically.
be based on demographics.
include a psychographic component.
Market segmentation based on variables, which are the vital and social
characteristics of populations, such as age, education and income, is known as:
demographic segmentation.
geographic segmentation.
psychographic segmentation.
behavioural segmentation.
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Toyota uses a target marketing approach to selling cars. Toyota offers a range of cars
to the market. Considering this, which of the following statements is incorrect?
An organisation following the target marketing concept should target all market segments.
Different target markets may require a different positioning strategy.
Market segments should be selected for targeting after an evaluation process.
Markets can be segmented many different ways using different segmentation variables.
Different market segments may require different marketing mixes.
A common technique used to determine market positioning is:
perceptual mapping.
the marketing mix.
market targeting.
market promotion.
environmental analysis.
Microeconomics is that branch of economics that focuses primarily on:
market economies.
the behaviour of individual units.
centrally planned economies.
economic aggregates such as unemployment and inflation.
aggregate economic activity.
All of the following, except one, are sources of a shift in a market demand curve for a
good. Which is not?
A change in the price of a substitute for that good
A change in the price of that good
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A change in tastes
A change in consumers' incomes
A change in the price of a complement for that good
A variable is:
something that can be expressed mathematically.
something that is correlated with something else.
anything that can be measured and that changes.
something that is not correlated with something else.
anything that cannot be measured.
When a market is in equilibrium:
there is always excess demand.
there is neither excess supply nor excess demand.
there is always excess supply.
there is both excess supply and excess demand.
there is either excess supply or excess demand, but not both.
The individual consumer's demand curve for a good describes the:
quantity of the good demanded by the consumer at each level of the consumer's income.
quantity of the good demanded by the consumer at each price.
average quantity of the good demanded by all consumers.
amount of income needed by the consumer to buy different quantities of the good.
quantity of the good demanded by all consumers at each price.
Which of these is the definition of 'product'?
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A physical, tangible offering, capable of being delivered to a customer.
A good offered to the market for exchange.
A good, service or idea offered to the market for exchange.
An intangible offering to the market.
As the marketing manager for Samsung, you realise the need to differentiate your
range of smart phones in the minds of your consumers. All mobile phones these
days make phone calls and connect to the internet; so at which product level are you
most likely to be able to differentiate your phones from your competitors' offerings?
Core.
Expected.
Augmented
None of the options listed.
If even the smallest increase in the price of a product results in the quantity demand
to fall to zero, the demand for this product:
is perfectly price elastic.
is price elastic.
has a price elasticity of unity.
is price inelastic.
is perfectly price inelastic.
All of the following, except one, will cause a shift in the demand curve for butter.
Which will not?
a change in the price of margarine
a change in the price of bread
increased concern about the health risks associated with eating butter
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a change in the price of butter
a change in consumers' incomes
An increase in the price of an input will normally cause:
a movement along the supply curve such that quantity supplied declines.
the supply curve to shift to the right.
a firm to increase the amount it offers for sale.
the supply curve to shift to the left.
a movement along the supply curve such that quantity supplied increases.
When referring to the market for capital, which of the following terms is out of place?
Supply and demand
Banks and insurance companies
Money
Interest
Machines and buildings
A successful advertising program for a product will:
shift the demand curve for that product leftward.
cause a movement down the demand curve for the product.
shift the demand curve for that product rightward.
cause a movement up the demand curve for the product.
have no effect on demand for the product.
The sensitivity of the quantity demanded of product A to changes in its price is likely
to be __ than the sensitivity of the quantity demanded of product B to changes in its
price when there are __ close substitutes for product A than there are for product B.
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lower; more
greater; fewer
greater; more
greater; far fewer
lower; many more
A reduction in the price of a complement will normally cause:
a movement along the demand curve such that quantity demanded declines.
the demand curve to shift to the left.
an individual to decrease consumption of any goods she purchases.
the demand curve to shift to the right.
a movement along the demand curve such that quantity demanded increases.
Elders provides a comprehensive range of goods and services to farmers. This
specialised approach to target marketing is an example of:
one-to-one marketing.
mass marketing.
product specialisation.
market specialisation.
As a marketer for a major wine company, you implement a marketing program based
on occasion-based segmentation. You market some products as 'gifts', others as
'celebratory' and others for 'cellaring'. You action is an example of:
geographic segmentation.
psychographic segmentation.
behavioural segmentation.
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demographic segmentation.
Familiar brands such as Arnott's Biscuits generally occupy clear and strong
positions (as perceived by the market). This leads to:
a strength because consumers know the product benefits and features.
a weakness because this position is difficult to change short term.
a limitation because new brands in the market can establish positions based on new
benefits.
all of the options listed.
Which of the following statements is incorrect?
Advertising is the transmission of paid messages about an organisation, brand or product to
a mass audience.
Advertising is generally expensive, but offers the potential advantage that it is possible to
reach a large number of people at a relatively low cost per person.
Choosing appropriate media makes it possible to aim advertising at potential target market
The choice of media in which to advertise can positively or negatively impact on a brand's
image.
Advertising enables personalisation of the marketing message.
In marketing, 'process' refers to the systems used:
to create a product offering.
to communicate a product offering.
to deliver a product offering.
to exchange a product offering.
all of the options listed.
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The path from the ________ or service provider to the end user is known as the
________ channel or marketing channel.
distributor, wholesale
distributor, distribution
manufacturer, distribution
manufacturer, production
Which of the following distribution channels is/are logical?
Producer, wholesaler, retailer, consumer.
Producer, agent/broker, consumer.
Producer, consumer.
All of the options listed.
The characteristic of services which most fundamentally distinguishes them from
goods is their:
benefits.
heterogeneity.
homogeneity.
intangibility.
Promotion includes:
advertising.
advertising and personal selling.
advertising, personal selling and public relations.
advertising, personal selling, public relations and sales promotion.
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None of the options listed.
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Knowledge Test 1 and 2
Enterprise Innovation and markets (Western Sydney University)
StuDocu is not sponsored or endorsed by any college or university
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Essay question: chap: 1, 3, 6, 7, 11, 8
KNOWLEDGE TEST 1
1/ Creating value is considered as the purpose for innovation, whether expressed in growth,
sustainability, improvement of social welfare or in financial terms.
2/ Turning niches into mass markets is an example of cost innovation
Cost innovation can be delivered in three ways
1. selling high end products at mass - market price
2. offering choice or customisation to value customers
3. turning niches into mass markets
3/ Zara's (fashion store) how it has used innovation around design and "fast fashion" to create
new opportunities in a crowded and mature marketplace is an aspect of innovation known as
new ways of servicing existing markets
4/ Which of the following combinations best describes disruptive innovation?
Lower gross margin and less sophisticated
5/ Entrepreneurs who have learnt and built long-term capability into a robust set of skills are
known as serial entrepreneurs.
6/ Strategic analysis begins with exploration of innovation space: where could we innovate and
why would it be worth doing so?
7/ Examples of changes in mental models are shifts to low-cost airlines, online insurance.
8/ Bottleneck buster is an entrepreneur's approach for creating value used in disruptive
innovation.
9/ Innovation managers and practising entrepreneurs in large businesses have learned from the
world of experience that successful innovators
A. build dynamic capability
B. manage innovation as a process
C. understand different dimensions of innovation
D. none of the options listed
E. all of the options listed
10/ Marketing inherited the concept of exchange from economics
11/ SWOT is short for strengths, weaknesses, opportunities, and threats.
12/ A devaluation of the Australian dollar makes exports cheaper and imports more expensive.
Within the macro-environment, this is known as a(n) economic force.
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13/ Marketing metrics are measures that are used to assess marketing performance.
14/ Which of the following is part of an organisation's marketing environment?
A. The organisation’s microenvironment
B. The organisation’s macroenvironment
C. Any internal or external force that affects the organisation’s ability to create, communicate,
deliver and exchange offerings of value.
D. All of the above.
15/ Marketers use market research to understand consumer current and future needs and
wants (values, change in preferences, wants, needs, attitudes, motivations, and behavior
as they relate to a product or service).
16/ As part of their regular SWOT analysis, Dell computers reviews their strengths; the attributes
of Dell computers that are internal factors that are able to be controlled.
17/ Choose the best answer from the options below to complete the following sentence. An
organisation chart can be a useful tool to help analyse an organisation's internal environment.
18/ In a SWOT analysis, an organisation's core competencies and competitive advantages would
be classified as strengths.
19/ Which of the following would not be considered a partner in the formal definition of marketing?
20/ Key environmental factors that marketers need to consider when analysing the marketing
environment include political, economic, sociocultural, technological, environmental and
legal forces.
21/ As the marketing manager of Cadbury Chocolate in Australia, you regularly receive reports on
your products' brand equity, customer satisfaction, and market share data. These figures are all
examples of marketing metrics.
22/ When buying your first car, you choose to buy a used Mazda 3 from a dealer rather than a
slightly cheaper Mazda 3 advertised privately. Your mum thinks you made a good choice, but your
dad thinks the privately advertised car would have been a better deal. Why is there a difference in
opinion?
A. Value means different things to different people
B. Value can be based on perception
C. Value can be a comparison of the benefits a customer receives from a product in relation
to its price
D. Value can include product quality and after sales service
E. All of the above
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23/ As part of your marketing PhD you decide to investigate factors affecting people's attitudes,
beliefs, behaviours, preferences, customs and lifestyles. These macro environmental forces which
you investigate are collectively known as sociocultural forces.
24/ The action of making an association between two unlike things in order to obtain new insights
is called forced analogy.
25/ Bright ideas are the fuel for innovation so understanding how we come up with them is worth
exploring.
26/ One of the challenges in creativity is that it sometimes involves generating something from
nothing
27/ Encouraging people to build on the ideas of others is an element of
28/ How many opportunities do not pass the product feasibility test because the innovation is not
genuinely novel, it cannot be patented or the entrepreneur does own the technology or somebody
else, somewhere else has already disclosed and/or patented it? about 50%
29/ Constructing a sense of crisis is a lesson learnt from
30/ Knowledge constitutes the essence of ___________ and is intrinsically related to the
creativity-innovation-entrepreneurship process.
A. abilities
B. skills
C. capabilities
D. none of the listed options
E. all of the listed options
31/ Factors that are beyond the organization’s direct control, though the organization may be able
to have some influence over them, are opportunities and threats.
32/ Factors that are beyond the organization’s direct control, but require an effective response by
an organization are threats.
33/ A customer’s overall assessment of the utility of an offering based on perceptions of what is
received and what is given is known as value.
34/ At Coca Cola, the marketing department regularly conducts analysis that involves breaking
the marketing environment down into smaller parts in order to better understand it. This is an
example of environmental analysis.
35/ Organizational overall objectives together with marketing objectives should be: (S.M.A.R.T
approach)
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A.
B.
C.
D.
E.
F.
Specific (simple, sensible, significant)
Measurable (meaningful, motivating)
Actionable/Achievable
Realistic (reasonable, realistic and resourced, results-based)
Time bound (time-based, time limited, time/cost limited, timely, time-sensitive)
All of the above
36/ The rising use of social networking sites could be attributed to sociocultural and
technological forces
37/ A group of university students decide to quit smoking together after seeing numerous
government advertisements talking about the damage that smoking will do to your lungs. Which
part of the definition of marketing is reflected by this change of behavior in response to the
governments’ education campaign?
A. A mutual exchange for value between a customer and an organization
B. Creating, communicating and delivering a good, service or idea
C. Individuals and organizations that are part of a product's supply chain
D. All of the above
38/ What do marketers seek to do in their environment?
Monitor, understand, respond to and influence
39/ A market can best be described as a group of customers with different needs and wants.
40/ The Council of Australian Governments (COAG) Healthy Communities Initiative is an
Australian government initiative that aims to reduce the prevalence of obesity within target
populations. This initiative is best described as an example of a not-for-profit organization
using marketing practices.
41/ Successful businesses in the late 1900’s were those that adopted a market orientation
throughout their operations and responded to the market’s needs and wants.
42/ Value refers to the ‘total offering’.
43/ Marketing theories draw on many other disciplines including psychology, sociology,
economics and management.
44/ Customers for not-for-profit organizations or social marketers are known as clients.
45/ Divergent thinking is about making associations, often exploring round the edges of a
problem.
46/ Which of the following is NOT considered a component of creativity?
3 components of creativity: (1) creative thinking skills, (2) knowledge, and (3) motivation.
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47/ The action of viewing a problem from an opposite angle is called problem reversal.
48/ The minimum viable product is an approach for validation.
49/ The successive stages of ideas generation, ideas evaluation and ideas implantation can
overlap.
50/ During the innovation stage knowledge is further refined through the ‘feasibility test’.
51/ The creative process of mind map starts with the basic problem as the centre and generates
associations in order to arrive at a large number of different approaches.
52/ Innovation can take many forms. Running a hospital booking system which reduces patient
waiting time is an example of which kind of innovation?
Process innovation - changes in the way offerings are created and delivered
54/ Knowledge-based innovations differ from all other innovations due to the time they take,
their casualty rates, their predictability, as well as the challenges they pose to
entrepreneurs.
55/ Innovation does not happen in a vacuum, the context of innovation is shaped by a range of
internal and external influences.
56/ Entrepreneurs wanting to create value through radical innovations can take the disruptive
approach.
57/ Which of the following combinations best describes incremental innovation?
A. based on sustained technologies; needs to be nurtured for long periods; creates new
markets
B. immediate gains; based on disruptive technologies; develops customer loyalty
C. steady improvements; based on sustained technologies; needs to be nurtured for long
periods
D. can be rapidly implemented; based on sustained technologies; immediate gains
E. all the listed options
58/ Economists generally share an agreement that innovation accounts for a sizeable proportion
of economic growth.
59/ Public health care services, such as hospitals, have experienced major improvements in
efficiencies around key targets such as waiting times is a feature of innovation in meeting
social needs.
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60/ If innovation is only seen as a strong R&D capability, it will result in technology which fails
to meet user needs and may not be accepted.
61/ Creating commercial value and social value are shared value__________
62/ Knowledge-based innovations differ from all other innovations due to the time they take, in
their casualty rates, and in their predictability, as well as in the challenges they pose to
entrepreneurs
63/ Which of the following is not considered a type of incremental innovation?
64/ The issues, problems and difficulties with innovation is __________
65/ The multipurpose smartphone is an example for which type of innovation?
66/ Reviewing and resetting innovation management approaches is termed _______
67/ Regardless of the type of innovation be it disruptive or incremental, it remains fundamentally
an application of ________
68/ Marketers use market research to understand consumer ______
69/ Marketing metrics' underlying principles are that metrics should be linked to ______
70/ The global financial crisis was an example of what type of macro-environmental force?
A. Political
B. Sociocultural
C. Competitive
D. Economic
E. Technological
71/ Which of these is the aim of marketing?
A. To maximise profits for the business owners
B. To develop organisational goals
C. To develop mutually beneficial exchanges
D. To organise the various functions efficiently and effectively
E. all of the listed options
72/ A degree in Marketing will qualify you for a job in which of the following organisations?
A. Governments
B. Not-for-profit organisations
C. Multinational organisations
D. All of the options listed
E. Large organisations
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73/ With the development of infrastructure and technologies such as production lines, businesses
such as the Ford Motor Company focused on manufacturing large quantities of goods, which they
seemed to have no trouble selling. People were happy to buy what was available. Which era of
marketing does this description relate to? Production
74/ You decide to do a situational analysis, investigating all the internal and external forces that
affect your ability as a marketer to create, communicate, deliver and exchange offerings of value.
Which environment are you analysing? The marketing environment
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75/ Customers are a part of an organisation's micro environment.
76/ Which of the following is not considered a factor that influences creativity?
A. Encouragement of creativity
B. Autonomy
C. Resources
D. Pressures
E. None of the listed options
77/ Diversity in network ties is essential for would-be entrepreneurs as it widens the scope of
information about
A. potential innovation
B. business locations
C. assistance schemes
D. sources of capital
E. all of the options listed
78/ Turning defeat into victory and figuring out what everybody else is not doing stimulates our
creativity.
79/ Divergent thinking is very much about finding new _________
KNOWLEDGE TEST 2
1/ Households are consumers in the product market, sellers in the labour market, and
lenders and borrowers in the capital market.
2/ The market supply curve is derived by summing the quantity suppliers are willing to
produce when the product can be sold for a given price.
an upward sloping curve depicting the positive relationship between price and quantity
supplied.
3/ Whenever two events occur simultaneously:
A. one event must have caused the other event.
B. there is both correlation and causation.
C. there is causation but not necessarily correlation.
D. there is correlation but not necessarily causation.
E. the two events are independent.
4/ The microeconomic perspective focuses on parts of the economy: individuals, firms, and
industries.
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The macroeconomic perspective looks at the economy as a whole, focusing on goals like
growth in the standard of living, unemployment, and inflation.
5/ The quantity demanded is influenced by both changes in the price and changes in variables
other than price. Changes in the price of other goods, particularly closely related goods
result in shifts of the demand curve.
The quantity supplied is influenced by both changes in price and changes in determinants of
supply. Changes in determinants of supply result in shifts of the supply curve.
6/ In the labour market, households lend labour services
sell their labour as workers to firms in return for wages, salaries and benefits
7/ The individual consumer's demand curve for a good describes the quantity of the good
demanded by the consumer at each price
8/ Diamonds command a higher price than water because diamonds have a high price and a
high marginal utility, while water has a low price and a low marginal utility/because they
have a higher marginal value.
9/ At the equilibrium price there is no reason for the price to change.
10/ All of the following, except one, will increase the quantity of butter supplied at each price.
Which will not?
A. A climate change that improves cows’ milk yield.
B. Increased concern about the health risks associated with eating butter.
C. A fall in the price of milk
D. A new discovery that makes it cheaper to make butter from milk.
E. A reduction in the price of milking machine,
11/ Markets in which firms sell their output of goods and services are called product markets.
12/ When Hass avocados are delivered to Woolworths warehouse facilities by Linfox transport,
this approach to marketing is known as indirect distribution.
13/ Which of the following would be classed as a product differentiator?
Features, Quality, Brand
14/ By definition, a product is the item offered for sale.
A product can be a good, service, idea or person.
It can be physical or in virtual or cyber form.
Every product is made at a cost and each is sold at a price.
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15/ Which of these is the definition of 'product'? A product is anything that can be offered to a
market for attention, acquisition, use, or consumption that might satisfy a want or need.
16/ A haircut, travel advice and financial advice are all examples of services.
17/ Integrated marketing communications (IMC) is the term given to the coordination of
promotional efforts to maximise the communication effect. Its primary goal is to consistently
send the most effective possible message to the target market.
18/ A clothing company manufactures a range of underwear, singlets, socks and t-shirts for both
men and women. This range is known as the company's product mix.
19/ If a consumer is prepared to spend time comparing competing offerings before making a
purchase decision, the product is most likely to be a(n) shopping product.
20/ In the 7Ps framework, distribution is also known as place.
21/ Coca Cola is available in vending machines, bars and clubs, supermarkets, petrol stations,
corner stores and at sporting events. This approach to market coverage is known as intensive
distribution.
22/ Organisations that pursue a specialisation strategy seek to establish a dominant position in
their chosen niche market.
23/ As an importer of surfing accessories, your company focuses its marketing operations in the
warmer coastal regions of Australia. This action is an example of geographic segmentation
24/ Which of the following best describes the broad concept of a market?
A. A group of customers with heterogeneous needs and wants.
B. A group of customers with homogenous needs and wants.
C. The business-to-consumer market.
D. The business-to-business market.
E. None of the options listed.
25/ Emma decides that after establishing a successful business using a mass marketing
approach, she wants to expand by differentiating her product range. Emma conducts market
research investigating the psychographic characteristics of her market. Emma understands that:
A. Psychographic segmentation variables include consumer personality attributes.
B. Psychographic segmentation variables include consumer lifestyles.
C. Psychographic segmentation variables include consumer motives.
D. Both a and b are correct
E. Options a, b, and c are correct
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26/ An organisation that segments its market by offering rewards based on the amount of points
accumulated on its loyalty card would be best described as utilising behavioural segmentation
27/ When a marketer makes one product and offers it to the market as a whole, this form of
marketing is known as an undifferentiated offer.
28/ An overall market may be able to be broadly broken down into
A. a microenvironment
B. consumer and business markets
C. a marketing mix
D. a market position
E. none of the options listed
29/ Which of these underlies the concept of target marketing?
A. Individual buyers or groups of buyers can be identified
B. Sellers understand the needs of buyers
C. Sellers will seek to shape their offer to meet the needs of target buyers
D. All of the options listed
30/ A group of customers with heterogeneous needs and wants is known as a
A. network
B. consumer market
C. producer market
D. market
31/ Elders provides a comprehensive range of goods and services to farmers. This specialised
approach to target marketing is an example of market specialisation.
32/ Which of the following statements is correct?
A. Marketing is viewed negatively by some people.
B. Marketing helps to drive economic growth.
C. Marketing can benefit society and improve people's quality of life.
D. All of the options listed are correct.
E. Both a and b.
33/ The total volume of sales of a product category that all organizations in an industry are
expected to sell in a specified period of time, assuming a specific level of marketing activity is
known as market potential.
34/ The number of possible segments grows by multiples when an additional segmentation
variable is added. For example, adding gender doubles the number of market segments.
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35/ Understanding the (benefit) market is a fundamental prerequisite for effective marketing.
Understanding target market segments is crucial to creating, communicating and delivering
product offerings of value.
36/ The broad market segments of ‘Baby Boomers’, ‘Generation X’, ‘Generation Y’ and
‘Generation Z’ have been created primarily based upon demographic variables.
37/ Which of the following would be an advantage of a one-to-one marketing strategy?
A. Positive word-of-mouth customer referrals
B. Building close relationships with a customer
C. Customer loyalty
D. Potential repeat purchases from the customer
E. All of the options listed are potential advantages
38/ The first step in determining the current positioning of a brand is to identify those product
attributes that consumers use to distinguish between competing products or brands
(‘salient’ product attributes)
39/ A credit union that provides a wide range of financial services to members who are
employed in particular industries would be best described as having a market specialisation.
40/ The demand curve is downward sloping, which means that the quantity demanded for a
good falls when its price rises.
41/ In the product market, firms are sometimes buyers, sometimes sellers, of goods.
42/ If the price elasticity of demand for a product is 2, a price increase from $1.00 to $1.02 will
cause quantity demanded to fall by 4%
Price elasticity of demand = % change in quantity demanded / % change in price
43/ Microeconomics is that branch of economics that focuses primarily on the individual units
that make up the whole of the economy.
Macroeconomics is that branch of economics that focuses primarily on aggregates (total
output and the general level of prices in the economy)
44/ The three major markets of interest in economics are the product market, labour market,
and capital market.
45/ Markets in which firms sell their output are called product markets.
46/ The theories that are developed in economics are microeconomics and
macroeconomics.
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47/ The curve that describes the quantities of a product that a firm would like to sell at different
prices is called the supply curve.
48/ The concept of supply refers to the quantity of a good that firms would like to sell at a
particular price.
49/ Individuals or organizations that act in the distribution chain between the producer and end
user are known as marketing intermediaries.
50/ Qantas is a service provider, transporting customers from one destination point to another.
During their flights they also sell Qantas merchandise such as miniature aeroplanes. Thinking
about goods and services, which of the following statements is incorrect?
A. A service is a product
B. A physical good is a product
C. A service usually involves transfer of ownership
D. A physical good is tangible, a service is intangible
E. None of the options listed
51/ The characteristics that formally distinguish services from goods are intangibility,
inseparability, heterogeneity and perishability.
52/ Bonds manufactures underwear, singlets, shorts, track suits, hoodies, socks, and t-shirts for
men, women and children. Bonds men’s underwear is an example of a product mix.
53/ In marketing, ‘process’ refers to the systems used to create, communicate and deliver an
offering for exchange.
54/ Staple products, impulse products and emergency products are all examples of
convenience products (or fast-moving consumer goods).
55/ The characteristic of being produced and consumed simultaneously is known as
inseparability.
56/ Choose the best answer to complete the following sentence. Product differentiation should
A. make a product more affordable
B. make a product more exclusive
C. aim to create a competitive advantage for the organization
D. provide ideas for future products
57/ Which of the following statements are correct?
A. A market segment has distinctive needs, but the members of the segment have similar
needs.
B. A market segment has similar needs, but the members of the segment have distinctive
needs.
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C. An architect designing a couple’s ‘dream’ home is an example of customised marketing.
D. Both a and c
E. Both b and c
58/ Which of the following statements are correct?
A. Mass marketing is best suited to situations where buyers have common wants, needs and
demands,
B. Target marketing is best suited to situations where subgroups in the market can be
identified that have similar characteristics.
C. One-to-one marketing is best suited to situations where buyers have unique wants, needs
and demands.
D. All of the options listed.
E. Only b and c are correct.
59/ The sensitivity of the quantity demanded of product A to changes in its price is likely to be
____ than the sensitivity of the quantity demanded of product B to changes in its price when there
are ____ close substitutes for product A than there are for product B.
60/ All of the following, except one, are sources of a rightward shift in the market demand curve
for butter. Which is not?
61/ If even the smallest increase in the price of a product results in the quantity demand to fall to
zero, the demand for this product:
62/ Along an individual firm's supply curve, an increase in a quantity supplied occurs when:
63/ All of the following, except one, will cause a shift in the demand curve for butter. Which will
not?
64/ If a firm raises the price of its product and finds that total revenue has increased, this indicates
that:
65/ In informal terms, an economic model is a statement about:
66/ We observe causation, and not just correlation, if:
67/ The quantity supplied in the market can increase:
68/ Promotion includes: advertising, personal selling, public relations and sales promotion
69/ Which of the following distribution channels is/are logical?
70/ The association between Qantas and the Australian Rugby Union's Wallabies team is an
example of:
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71/ A dairy company manufactures a range of flavoured skim milks. This range is known as the
company's:
72/ A product can be:
73/ The creation of products and product attributes that distinguish one product from another is
known as:
74/ While on an overseas holiday, John and Elizabeth decide to hire a car. During their travels,
the car breaks down and they decide that they have to take it to a mechanic. There are several
mechanics in the town that they are in. Which of the following forms of physical evidence could
they use to evaluate each of the mechanics before deciding which one to choose?
75/ 'Camera House' takes a product specialisation approach, specialising in the sale of cameras.
The product specialisation approach (or alternatively a market specialisation approach) will only
be a beneficial marketing strategy for Camera House while:
76/ Emma decides that after establishing a successful business using a mass marketing
approach, she wants to expand by differentiating her product range. Emma decides she will use a
target marketing approach, which can best be described as:
77/ Evaluating and selecting market segments is part of the ______________ stage of the target
marketing process.
78/ When the marketer seeks to _________and ___________those parts of the total market that
it can offer the most__________, the approach is known as the ___________ marketing concept.
79/ Toyota uses a target marketing approach to selling cars. Toyota offers a range of cars to the
market. Considering this, which of the following statements is incorrect?
80/ Emma has decided to switch from a mass marketing approach, to a target marketing
approach. She understands that target marketing is a process and ____________________
forms the basis of the process.
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