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web.groovymark@gmail.com
- November 29, 2024
Question 01
Which of the following is a technique where products are grouped together and sold as a single unit?
a) Price skimming
b) Penetration pricing
c) Bundling
d) Leader pricing
Answer: c) Bundling
Explanation:
Bundling involves offering related products together as a package deal at a single price, often encouraging customers to purchase more than one item at once.
Question 02
Which type of pricing strategy involves selling products below market price to draw customers to a store?
a) Leader pricing
b) Price gouging
c) Price skimming
d) Penetration pricing
Answer: a) Leader pricing
Explanation:
Leader pricing sets a product’s price lower than its market value to attract customers, encouraging them to make other purchases during their visit.
Question 03
What is the final step in the negotiation process, where an agreement is reached or the negotiation fails?
a) Bargaining
b) Presentation
c) Closure
d) Investigation
Answer: c) Closure
Explanation:
Closure is the final phase of negotiation where either an agreement is reached between the parties, or one party decides to walk away if the terms are unacceptable.
Question 04
Which type of market segmentation focuses on demographic data such as age, income, and gender?
a) Psychographic segmentation
b) Behavioral segmentation
c) Demographic segmentation
d) Geographic segmentation
Answer: c) Demographic segmentation
Explanation:
Demographic segmentation divides the market based on factors such as age, gender, income, and education to better target customers based on these attributes.
Question 05
Which of the following involves setting the price of a product relative to the price of competing products?
a) Price skimming
b) Penetration pricing
c) Competitive pricing
d) Prestige pricing
Answer: c) Competitive pricing
Explanation:
Competitive pricing sets a product’s price based on the prices of similar products in the market to attract price-sensitive customers or differentiate from competitors.
Question 06
What is the term for the level of consumer interest in a product, which affects how much effort they put into making a purchase decision?
a) Consumer engagement
b) Consumer loyalty
c) Consumer involvement
d) Consumer satisfaction
Answer: c) Consumer involvement
Explanation:
Consumer involvement refers to how much time and effort a consumer invests in making a purchase decision. High-involvement purchases often involve significant research and decision-making.
Question 07
What is the term used to describe a conflict management style that prioritizes maintaining relationships over personal interests?
a) Avoidance
b) Competition
c) Compromise
d) Accommodation
Answer: d) Accommodation
Explanation:
Accommodation focuses on maintaining relationships by sacrificing one's own needs or goals for the sake of the other party.
Question 08
What is a core benefit of solution selling?
a) It provides customers with only the cheapest option available
b) It focuses on the long-term customer relationship rather than immediate sales
c) It recommends a mix of products to solve customer problems
d) It minimizes customization to increase efficiency
Answer: c) It recommends a mix of products to solve customer problems
Explanation:
Solution selling diagnoses a customer's problem and recommends a combination of products and services to address that specific issue, tailoring the solution to their needs.
Question 09
Which of the following pricing tactics is illegal and unethical?
a) Price skimming
b) Price discrimination
c) Price gouging
d) Bait and switch
Answer: d) Bait and switch
Explanation:
Bait and switch is an unethical tactic where a company advertises a low-priced product but attempts to sell a more expensive product once the customer is in the store.
Question 10
What is the primary focus of integrated marketing communications (IMC)?
a) Improving customer service
b) Reducing marketing costs
c) Creating a seamless, consistent customer experience across channels
d) Increasing product offerings
Answer: c) Creating a seamless, consistent customer experience across channels
Explanation:
IMC ensures that customers receive consistent and unified communication across all channels, improving the overall customer experience and strengthening brand loyalty.
Question 11
What is the most appropriate action to take with a “cash cow” product in the BCG matrix?
a) Invest more resources to maximize growth
b) Divest the product to focus on other areas
c) Continue to “milk” the product with minimal investment
d) Shift the focus to other question marks
Answer: c) Continue to "milk" the product with minimal investment
Explanation:
A cash cow is a product with high market share in a slow-growing industry. The goal is to maximize cash flow with minimal additional investment.
Question 12
What kind of negotiation approach aims to create a win-win outcome by finding mutual gains for both parties?
a) Competitive negotiation
b) Distributive negotiation
c) Integrative negotiation
d) Avoidant negotiation
Answer: c) Integrative negotiation
Explanation:
Integrative negotiation seeks to create mutually beneficial agreements by collaborating to find solutions that satisfy both parties.
Question 13
What is the first step in the marketing planning process?
a) Strategy development
b) Situational analysis
c) Setting marketing objectives
d) Defining the mission statement
Answer: d) Defining the mission statement
Explanation:
The mission statement is the first step in the marketing planning process, outlining the purpose and guiding principles of the organization's marketing efforts.
Question 14
In Porter’s Five Forces model, what does the “threat of new entrants” refer to?
a) The potential of new competitors to enter the market
b) The risk of customers switching to a substitute product
c) The ability of suppliers to drive up prices
d) The strength of competitive rivalry within the industry
Answer: a) The potential of new competitors to enter the market
Explanation:
The threat of new entrants measures the likelihood of new companies entering the market, which can affect market competition and profitability.
Question 15
Which conflict management style involves both parties working together to find a mutually beneficial solution?
a) Competition
b) Compromise
c) Collaboration
d) Avoidance
Answer: c) Collaboration
Explanation:
Collaboration involves finding a win-win solution by working together to address the interests of both parties and achieve a mutually satisfactory outcome.
Question 16
What does the Dual Concern Model in conflict management focus on?
a) The degree of cooperation and assertiveness in conflict resolution
b) The potential financial outcomes of different negotiation tactics
c) The balance between emotional intelligence and logic
d) The level of control one party exerts over the other
Answer: a) The degree of cooperation and assertiveness in conflict resolution
Explanation:
The Dual Concern Model assesses conflict management styles based on two factors: concern for oneself (assertiveness) and concern for others (cooperation).
Question 17
What is the primary characteristic of a “star” product in the BCG matrix?
a) High market share and high market growth
b) Low market share and high market growth
c) High market share and low market growth
d) Low market share and low market growth
Answer: a) High market share and high market growth
Explanation:
A star is a product with a high market share in a fast-growing industry. These products require significant investment but have the potential for large returns.
Question 18
What is a defining characteristic of solution selling?
a) Providing discounts on bundled products
b) Presenting a single product to solve all customer issues
c) Recommending a mix of products to meet customer needs
d) Limiting the scope of services to lower costs
Answer: c) Recommending a mix of products to meet customer needs
Explanation:
Solution selling involves diagnosing a customer's problem and recommending a combination of products or services that will best solve it.
Question 19
Which of the following involves evaluating internal and external factors that impact a company’s strategy?
a) SWOT analysis
b) PEST analysis
c) Portfolio analysis
d) Marketing mix evaluation
Answer: a) SWOT analysis
Explanation:
SWOT analysis assesses a company’s internal strengths and weaknesses, as well as external opportunities and threats, to inform strategy development.
Question 20
What is the primary goal of market development as a growth strategy?
a) To introduce new products to existing markets
b) To expand into new markets with existing products
c) To maximize revenue from high-growth products
d) To acquire competitors and increase market share
Answer: b) To expand into new markets with existing products
Explanation:
Market development focuses on introducing existing products into new markets to grow the business by expanding its customer base.
