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web.groovymark@gmail.com
- November 29, 2024
Question 21
Which type of conflict style involves compromising where both parties give up something to reach a resolution?
a) Competition
b) Compromise
c) Avoidance
d) Collaboration
Answer: b) Compromise
Explanation:
In a compromise, both parties agree to make concessions, allowing them to reach a middle-ground solution where neither fully wins or loses.
Question 22
Which negotiation style is characterized by a focus on asserting one’s own needs over the needs of others?
a) Collaboration
b) Competition
c) Accommodation
d) Avoidance
Answer: b) Competition
Explanation:
In a competitive negotiation style, the focus is on winning and asserting one’s own interests, often at the expense of the other party's needs.
Question 23
Which BCG matrix quadrant describes a product with low market share in a slow-growing industry?
a) Star
b) Cash cow
c) Question mark
d) Dog
Answer: d) Dog
Explanation:
A dog is a product with low market share in a mature industry, indicating little growth potential. These products typically require divestment or minimal attention.
Question 24
Which growth strategy focuses on introducing new products into existing markets?
a) Diversification
b) Market penetration
c) Market development
d) Product development
Answer: d) Product development
Explanation:
Product development focuses on creating new products to introduce into existing markets, aiming to cater to current customers' evolving needs and preferences.
Question 25
What is the primary function of Porter’s Five Forces model?
a) To analyze the competitive forces that shape an industry
b) To develop a marketing plan for a company
c) To identify gaps in a company’s product line
d) To determine customer satisfaction levels
Answer: a) To analyze the competitive forces that shape an industry
Explanation:
Porter's Five Forces model is a strategic tool used to evaluate the forces that impact an industry's profitability and competition, such as supplier power and threat of new entrants.
Question 26
Which term refers to a business model where fraudulent practices profit from recruitment fees of those lower in the hierarchy?
a) Price fixing
b) Predatory pricing
c) Pyramid scheme
d) Competitive pricing
Answer: c) Pyramid scheme
Explanation:
A pyramid scheme is an illegal business model where individuals make money primarily by recruiting others into the scheme, with earnings coming from recruitment fees rather than actual product sales.
Question 27
What is the primary focus of guerrilla marketing?
a) Traditional advertising in mainstream media
b) Engaging customers through conventional methods
c) Using innovative, unconventional promotional tactics
d) Providing steep discounts to attract customers
Answer: c) Using innovative, unconventional promotional tactics
Explanation:
Guerrilla marketing relies on creative, often low-cost methods to engage customers in memorable a
Answer: c) Using innovative, unconventional promotional tactics
Explanation:
Guerrilla marketing relies on creative, often low-cost methods to engage customers in memorable and unique ways, typically outside of traditional advertising channels.
nd unique ways, typically outside of traditional advertising channels.
Question 28
Which type of market segmentation is based on the benefits a customer seeks from a product?
a) Demographic segmentation
b) Behavioral segmentation
c) Product-related segmentation
d) Geographic segmentation
Answer: c) Product-related segmentation
Explanation:
Product-related segmentation focuses on the specific benefits that consumers seek from a product, grouping customers based on their desired product features or solutions.
Question 29
What is the main goal of the promotional element in the marketing mix?
a) To distribute products to new regions
b) To determine the pricing strategy
c) To influence and inform customers about the product
d) To improve customer satisfaction
Answer: c) To influence and inform customers about the product
Explanation:
Promotion is one of the four Ps of the marketing mix, and its primary goal is to communicate with customers, influence their buying decisions, and inform them about product features.
Question 30
Which term refers to a product that is intentionally designed to be replaced frequently by the consumer?
a) Planned obsolescence
b) Penetration pricing
c) Product bundling
d) Price gouging
Answer: a) Planned obsolescence
Explanation:
Planned obsolescence is when a product is designed with a limited useful life, prompting consumers to replace it more frequently, which drives repeat sales.
Question 31
What is the main purpose of secondary marketing research?
a) To collect real-time data through surveys and experiments
b) To validate primary research data
c) To gather pre-existing data for marketing decisions
d) To develop customized products for niche markets
Answer: c) To gather pre-existing data for marketing decisions
Explanation:
Secondary marketing research involves gathering data that has already been collected for other purposes, such as industry reports, and using it to inform marketing strategies.
Question 32
Which pricing strategy is designed to attract customers to the store by offering items at below-market prices?
a) Leader pricing
b) Price skimming
c) Penetration pricing
d) Bundling
Answer: a) Leader pricing
Explanation:
Leader pricing involves offering certain products at below-market prices to draw customers into the store, with the expectation that they will purchase other items.
Question 33
In which stage of the product life cycle is profit high but begins to decline due to increasing competition?
a) Introduction
b) Growth
c) Maturity
d) Decline
Answer: c) Maturity
Explanation:
In the maturity stage, sales are high but profits may start to decline due to competition and market saturation, leading to price pressure and reduced margins.
Question 34
What is a characteristic of a “star” product in the BCG matrix?
a) High market share in a slow-growing industry
b) Low market share in a slow-growing industry
c) High market share in a fast-growing industry
d) Low market share in a fast-growing industry
Answer: c) High market share in a fast-growing industry
Explanation:
A "star" product in the BCG matrix is one with high market share in a rapidly growing industry, requiring investment to maintain its position but offering high potential returns.
Question 35
What does the marketing mix, often referred to as the 4 Ps, consist of?
a) Price, place, promotion, product
b) Price, people, processes, performance
c) Price, profit, positioning, product
d) Price, place, people, performance
Correct Answer: b) **
Explanatio
Answer: a) Price, place, promotion, product
Explanation:
The marketing mix includes the four key elements: price, place, promotion, and product, which together form the strategy for marketing a product or service to consumers.
n: The ** operator is used for exponentiation, raising a number to the power of another.
Question 36
Which segmentation strategy divides customers based on their lifestyles, activities, and opinions?
a) Demographic segmentation
b) Behavioral segmentation
c) Psychographic segmentation
d) Geographic segmentation
Answer: c) Psychographic segmentation
Explanation:
Psychographic segmentation divides customers based on lifestyle factors, attitudes, values, and opinions, helping marketers better understand their motivations and preferences.
Question 37
What is the term used to describe straightforward, low-involvement purchase decisions?
a) Routine problem-solving
b) Limited problem-solving
c) Extended problem-solving
d) Evaluative decision-making
Answer: a) Routine problem-solving
Explanation:
Routine problem-solving refers to habitual, low-involvement purchases that require little thought or effort, such as buying everyday items like toothpaste or milk.
Question 38
What is the main purpose of competitive pricing?
a) To undercut competitors by pricing lower than the market average
b) To establish a high price to create prestige
c) To set prices based on production costs
d) To price products relative to competitors’ offerings
Answer: d) To price products relative to competitors’ offerings
Explanation:
Competitive pricing sets the price of a product based on the prices of similar products offered by competitors, ensuring it remains attractive to price-sensitive customers.
Question 39
Which market segmentation approach is based on dividing the market by age, income, and education level?
a) Behavioral segmentation
b) Psychographic segmentation
c) Geographic segmentation
d) Demographic segmentation
Answer: d) Demographic segmentation
Explanation:
Demographic segmentation divides the market based on measurable characteristics like age, income, and education level, allowing marketers to target specific customer groups.
Question 40
Which type of marketing research involves observing customers in their natural environment to gather insights?
a) Survey research
b) Focus groups
c) Behavioral observation
d) Social listening
Answer: c) Behavioral observation
Explanation:
Behavioral observation research involves watching customers interact with products or services in their natural settings, providing insights into their behaviors and preferences.
