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web.groovymark@gmail.com
- November 29, 2024
Question 01
Which pricing strategy involves lowering prices for a limited time to increase sales volume?
a) Penetration pricing
b) Promotional pricing
c) Price skimming
d) Prestige pricing
Answer: b) Promotional pricing
Explanation:
Promotional pricing is used to boost short-term sales by offering temporary discounts. This strategy creates a sense of urgency for consumers to make purchases during the promotional period.
Question 02
Which growth strategy is focused on expanding into new markets with existing products?
a) Market development
b) Market penetration
c) Product development
d) Diversification
Answer: a) Market development
Explanation:
Market development involves expanding the customer base by introducing existing products into new markets, targeting new geographic regions or demographic groups.
Question 03
Which stage of the product life cycle is characterized by rapidly increasing sales and the entry of competitors?
a) Introduction
b) Growth
c) Maturity
d) Decline
Answer: b) Growth
Explanation:
In the growth stage, product sales rise quickly, competitors enter the market, and profits increase as more consumers adopt the product. Companies often invest in marketing during this phase.
Question 04
Which type of segmentation divides the market based on a customer’s lifestyle and personality traits?
a) Demographic segmentation
b) Behavioral segmentation
c) Geographic segmentation
d) Psychographic segmentation
Answer: d) Psychographic segmentation
Explanation:
Psychographic segmentation categorizes customers by their interests, values, and lifestyle, helping companies tailor their messaging to appeal to individuals with specific attitudes or behaviors.
Question 05
In the BCG matrix, which product is identified as having low market share but being in a fast-growing industry?
a) Star
b) Cash cow
c) Dog
d) Question mark
Answer: d) Question mark
Explanation:
A question mark product has low market share in a high-growth market. These products require significant investment to grow market share and become stars.
Question 06
Which of the following is a characteristic of market penetration strategy?
a) Entering new markets with new products
b) Offering new products in existing markets
c) Selling more of the existing product to current customers
d) Targeting new customer segments with existing products
Answer: c) Selling more of the existing product to current customers
Explanation:
Market penetration focuses on increasing sales of existing products to current customers, often through promotional efforts or price reductions to gain a larger share of the market.
Question 07
What is a key purpose of integrated marketing communications (IMC)?
a) To lower advertising costs
b) To ensure a consistent message across all channels
c) To increase the product’s price
d) To target niche markets
Answer: b) To ensure a consistent message across all channels
Explanation:
IMC ensures that a brand’s message is consistent and coherent across all marketing channels, which helps build customer trust and reinforces brand identity.
Question 08
Which pricing strategy sets a high initial price for a product, gradually lowering it over time?
a) Penetration pricing
b) Promotional pricing
c) Price skimming
d) Leader pricing
Answer: c) Price skimming
Explanation:
Price skimming involves setting a high price initially to maximize profits from early adopters and gradually lowering the price to attract price-sensitive customers as the product matures.
Question 09
Which social style, according to the social styles matrix, is defined by high responsiveness and high assertiveness?
a) Analytical
b) Amiable
c) Driver
d) Expressive
Answer: d) Expressive
Explanation:
Expressive individuals are highly assertive and responsive, often characterized by their enthusiasm and focus on relationships and persuasion in social interactions.
Question 10
Which stage of the consumer decision-making process involves the consumer considering whether to purchase a product?
a) Search
b) Post-purchase evaluation
c) Decision
d) Problem recognition
Answer: c) Decision
Explanation:
In the decision stage, the consumer evaluates the available options and determines whether to purchase the product or service based on their research and preferences.
Question 11
Which type of marketing research involves conducting one-on-one conversations with customers to gather insights?
a) Survey research
b) Behavioral observation
c) In-depth interviews
d) Focus groups
Answer: c) In-depth interviews
Explanation:
In-depth interviews are structured conversations between a researcher and a respondent to gather detailed insights, often used to explore consumer opinions, preferences, and behaviors.
Question 12
What is the main focus of qualitative research in marketing?
a) To count and analyze numerical data
b) To understand customer perceptions and behaviors
c) To measure sales performance
d) To assess financial viability
Answer: b) To understand customer perceptions and behaviors
Explanation:
Qualitative research explores customer attitudes, perceptions, and motivations, helping marketers gain deeper insights into what drives consumer behavior.
Question 13
Which market segmentation strategy divides customers by geographic regions?
a) Demographic segmentation
b) Geographic segmentation
c) Psychographic segmentation
d) Behavioral segmentation
Answer: b) Geographic segmentation
Explanation:
Geographic segmentation divides the market based on location, allowing marketers to target consumers in specific regions, cities, or climates with tailored products or marketing efforts.
Question 14
Which step in the marketing planning process involves analyzing the internal and external factors affecting the organization?
a) Strategy development
b) Situational analysis
c) Monitoring and control
d) Setting objectives
Answer: b) Situational analysis
Explanation:
Situational analysis assesses the internal and external environment, including strengths, weaknesses, opportunities, and threats, to inform the marketing strategy.
Question 15
Which conflict management style focuses on compromising between parties to find a middle ground?
a) Competition
b) Avoidance
c) Collaboration
d) Compromise
Answer: d) Compromise
Explanation:
The compromise style involves both parties making concessions to reach an agreement, often resulting in a solution that partially satisfies both sides.
Question 16
In the customer life cycle, which phase involves acquiring a new customer into the company’s sphere of influence?
a) Retention
b) Conversion
c) Acquisition
d) Advocacy
Answer: c) Acquisition
Explanation:
Acquisition refers to attracting and engaging new customers, bringing them into the company’s influence, with the goal of converting them into paying customers.
Question 17
Which type of pricing strategy focuses on pricing a product lower than competitors to attract market share?
a) Penetration pricing
b) Prestige pricing
c) Price skimming
d) Competitive pricing
Answer: a) Penetration pricing
Explanation:
Penetration pricing sets a low price to quickly gain market share, often at the expense of short-term profitability, with the goal of establishing a strong customer base.
Question 18
Which type of segmentation divides customers by how they behave towards a product, such as usage frequency or brand loyalty?
a) Demographic segmentation
b) Behavioral segmentation
c) Psychographic segmentation
d) Geographic segmentation
Answer: b) Behavioral segmentation
Explanation:
Behavioral segmentation focuses on how consumers interact with a product, such as their purchasing habits, product usage, or loyalty, helping companies target specific behavior patterns.
Question 19
Which growth strategy focuses on creating new products for expansion into new markets?
a) Product development
b) Diversification
c) Market development
d) Market penetration
Answer: b) Diversification
Explanation:
Diversification is a high-risk growth strategy that involves introducing new products into new markets, allowing companies to expand their reach and explore new opportunities.
Question 20
Which research method involves observing consumer behavior in a natural setting?
a) Focus groups
b) Behavioral observation
c) In-depth interviews
d) Survey research
Answer: b) Behavioral observation
Explanation:
Behavioral observation involves watching consumers in real-world settings, allowing marketers to gather insights on how customers interact with products without influencing their behavior.
