1

Match the Following

4)
Beer, toothpaste - tangibles-non durable goods
Electronic appliances, watches - tangible durable goods
Hotel, courier -
Medicines, beverages

Options:
- tangible services
- industrial goods
- intangible services
- consumer goods

(Page No. 277 – Unit 9)

28)
Shot gun approach - Undifferentiated marketing

Rifle approach -
Marketers - Identify segments

No. of segmentation bases - Nine

Options:
- Create segments
- Market segmentation
- Eight

Multiple Answer Questions

9) Who are agents
- take title to goods
- represent the company
- negotiate on behalf of the company
expand the reach of company’s channel

13) Major role of promotion is to

- Inform
- Remind
- Persuade
(Page No. 79 – Unit 3)

14) Key marketing objectives in Decline stage are:

- Reduce investment levels
- Improve short run profitability
- Exit strategies from the category
(Page No. 322 – Unit 10)

15) Differentiation can be created in following ways:

- Provide the same solution in better ways
- Provide the same solution in better ways and at better price
- Provide the unique solution that nobody else provides
(Page No. 264 – Unit 9)

19) Suppliers are powerful if:

- suppliers are concentrated
- switching costs are high
(Page No. 110 – Unit 4)

29) Parts of strategic analysis are:

- Internal
- External
(Page No. 61 – Unit 3)

30) Characteristics of Mass marketing are:

- Less costly
- One standard product
- One advertisement campaign
(Page No. 413 – Unit 14)

34) Following conveys the brand’s character:

- Retail ambience
- Strong visual presence
- Events
- Sponsorships

39) Objectives of market penetration are:

- Increase / maintain market share
- Restructuring mature market by driving out competitors.
- Increase usage by existing customers.
(Page No. 72 – Unit 3)

42) Following can be service differentiators:

- People
- Product offering
- Timeliness of response.
(Page No. 462 – Unit 15)

44) As per Parsuraman and Colby, adopter categories are:

- Explorers
- Paranoids
- Skeptics
(Page No. 310 – Unit 10)

48) Which of the following two buyers are the two ends of the price quality continuum.
- Price buyers
- Relationship buyers
(Page No. 369 – Unit 12)

Single Answer Questions

Q1) A person’s cultural and social setting and occupation determines
A) Lifestyle
(Page No. 181 – Unit 6)

3) Which of the following is an industry in which companies can face many

differentiation opportunities and each can have a very high pay off.
A) Specialized industry
(Page No. 265 – Unit 9)

5) ____________ have to draw a fine line between being too flexible or too rigid with
customers
Options: Organizations / Government / Employees / Management. P.449

6) Statistician sifts through the data through ____________ to identify purchasing

patterns and market segments.
Options : Data mining / Inventory / Warehouse / Storehouse

8) ______ resides in the minds of consumers.

A) Brand
(Page No. 288 – Unit 9)

10) Which of the following includes the purchase cost or price paid to acquire something
as well as the operating and maintenance costs of using the product of service.
Options: Time / Psychic costs / Monetary costs / Energy

11) ________ shape the future of the company.

Options: Competitor’s products / Old products / New products / Recycled products

12) Which of the following is an entry into product markets where there are synergies
with existing businesses.
A) Related diversification.
(Page 75 – Unit 3)

16) Which of the following is a strong favorable and unique brand association that sets
your brand apart from the competitors.
Options: Point of Differentiation / Unique Selling Proposition / Value proposition /
Perceptual mapping

20) _______ is a great storehouse of knowledge

Options: Library / Website / Internet / Email.

22) Providing value added services are an excellent opportunity for _________
Options: Targeting / Differentiation / Segmentation / Positioning

23) Which of the following desire the benefits of innovation but are more practical about
the difficulties.
A) Pioneers
(Page No. 310 – Unit 10)

24) Which of the following focuses on how individuals make decisions to spend available
resources on consumption related products and services?
A) Consumer behavior
(Page No. 170 – Unit 6)

25) Which of the following is a communication tool, media tool and an e commerce
medium.
A) Internet
Options: Web page / Intranet / Internet / Email

26) Henry Ford was a key proponent of this concept

A) Production concept
(Page No. 4 – Unit 1)

27) ______________ of workers means ensuring that they are following the procedures
and techniques in which they are trained.
Options: Quality control / Supervision / Cost control / Data control

35) Indian society scores very low on __________

Options: Time orientation / Job mobility / Power distance / Uncertainly avoidance.

36) Which of the following strategy focuses on producing low cost clones, low cost
clones, low cost manufacturing and operates in localized markets.
A) Imitative strategy.
(Page No. 314 – Unit 10)

38) Who among the following emulates the leader’s product and packaging with slight
variations?
A) Cloner
(Page No. 130 – Unit 4)

40) ________ permits testing the impact of alternative marketing plans.

A) Test marketing
(Page No. 305 – Unit 10)

41) An organization exists because __________ exist

A) Customers
(Page No. 2 – Unit 1)

43) _________ phase in new product development is characterized by rapid increase in

sales and profits.
A) Growth
(Page No. 317 – Unit 10)

45) Various emotional and social risk that customers perceive in making any decision are
referred to as:
Options: Monetary costs / Psychic costs / Time / Energy.

47) Which of the following represents how consumers feel about these product attributes
and their performance.
A) Brand
(Page No. 289 – Unit 9)

True/False
Q2) Advertising can create demand for or sell a poorly conceived product.
True/False

7) Stretching a brand into too many categories weakens the promise of the brand.
A) True
(Page No. 292 – Unit 9)

17) Sub cultures exert a very dominant influence on its people.

A) True
(Page No. 183 – Unit 6)

21) The executive summary is written before the rest of the report.
False

18) Educational levels of target markets directly determine their knowledge and product
awareness.
A) True
(Page No. 36 – Unit 2)

31) Classification of products also changes as the product moves through its life cycle.
True

32) Physical elements of the product have an infinite life.

False
33) Most companies choose both, direct and indirect channels.
True

37) Knowledge of a competitor’s present strategy indicates future growth directions.

A) True
(Page No. 115 – Unit 4)

46) Odd numbered pricing is used to denote quality.

A) False
(Even numbered pricing is used to denote quality)
(Page No. 397 – Unit 13)

2
Match the Following
Q32)
Physical evidence – External signage’s
Traditional ‘p’ – Promotion
Additional service ‘p’ – Processes
Temps – Part time employees
(Page No. 450 – Unit 15)

Q39)
Basis of segmentation for mutual funds – Investment goals
Basis of segmentation for the insurance – Life stage of buyers
Basis of segmentation for credit cards – Income levels
Basis of segmentation for clothes – Age

Options:
Income levels
Age
Population density
Investment goals
Marital status

(Page No. 209 – Unit 7)

True/False
Q1) A product’s life cycle curve is also called the sales curve of the product
True
(Page No : 311 Unit 10)

Q3) A Push strategy is a must for high involvement products

Q13) Segmentation stages are sequential in nature
False

Q14) Education and occupation determine the stability of present earnings as well as
future growth potential in earnings.
True

Q18) Sub cultures exert a very dominant influence on its people

True
Q30) Company sales forecast follows the marketing plan

Q36) The more the substitutes are there for a particular product class, the greater the
threat of substitutes.
True

Q38) Companies are tempted to repeatedly run sales promotions as they produce quick
and early results.
A) True
(Page No. 417 – Unit 14)

Q40) Services can’t be seen, touched or experienced before they are bought
True

Q41) Entry barriers have an indirect impact on the intensity of rivalry within the industry
True

Single Answer Questions

Q4) Service _____ is a comparison between expectations and performance
A) Quality
(Page No. )

Q5) It refers to the vital and measurable statistics of the population and helps to locate a
target market
A) Demographic
(Page No. 211 – Unit 7)

Q7) The value that the customer places on the product is largely the:
Options: Economic value / Percentage contribution margin / Perceived value /
Competitive value

Q8) Companies need to become strong competitors by building ______

Options: Competitive brands / Augmented brands / Sustainable competitive advantage /
Brand loyalty

Q10) Competitive structure of heterogeneous markets is usually _____ competition

Options: Pure monopoly / Monopolistic / Duopoly / Oligopolistic

Q11) Companies set up formal systems to gather intelligence on _______

Options: Consumers / Competitors / Suppliers / Buyers

Q12) These discounts are given to channel intermediaries in return for certain special
functions performed
A) Trade discounts
(Page No. 395 – Unit 13)

Q15) Commodities markets are examples of _____

A) Pure Competition
(Page No. 101 – Unit 4)

Q16) _____ products offer their target markets an ego gratification

Options: Prestige / Exclusive / Inclusive / Ordinary

Q17) This stage consists of extensive consumer research as marketers try to gather
extensive quantitative and qualitative information about consumer buying motivators,
consumption goals and buying patterns
A) Survey
(Page No. 226 – Unit 7)

Q19) ______ in BCG Matrix yield profits and positive cash flows
A) Cash cows
(Page No. 84 – Unit 3)

Q20) It includes all the actual and potential rival offerings and substitutes that a buyer
might consider.
Options: Sustainability / Substitution / Competition / Profitability

Q21) The prevailing way of doing business with consumers before market segmentation
was _____
A) Mass marketing
(Page No. 206 – Unit 7)

Q23) In this stage the consumer is stimulated to seek information about the innovation
A) Interest
(Page No. 309 – Unit 10)

Q26) Innate needs are also called

A) Biogenic
(Page No. 172 – Unit 6)

Q27) _______ of each individual is unique to him or her.

Options: Personality / Attitude / Intelligence / Action
Q29) ______ is a way of educating buyers about the utility and worth of the product
Options: Economic value / Price induced sampling / Price sensitivity / Skimming

Q31) This research is undertaken to arrive at a solution and is used in decision making to
solve marketing problems
Options:
Market potential research / Problem solving research / Problem identification research /
Forecasting research

Q33) _____ purchases are exploratory purchases as consumers attempt to evaluate a

product through direct use
Options: New / Trial / Competitive / Repetitive

Q34) These costs can be both monetary and non monetary

Options: Variable cost / Fixed cost / Total cost / Switching costs

Q37) It is the actual encounter between the service employee and the customer
Options:
Service blueprint / Face to face services / Moments of truth / Internal marketing
0
Q45) This form of segmentation is commonly referred to as “lifestyle” segmentation
A) Psychographic
(Page No. 215 – Unit 7)

Q47) Multiple factor index method to assess market potential of different territories is
used primarily by ________
Options: Supplier marketers / Industrial marketers / Consumer marketers / Competitors

Q48) It is the primary task of the market leader and it gains the most when the total
market expands.
Options: Profitability / Market expansion / Sustainability / Market focus

Multiple Answer Questions

Q2) Major Exit barriers are:
Options:
- Government regulations
- Obligations to customers
- Low asset salvage value
- Distribution networks

Q6) What are the different types of vertical marketing systems?

Options:
- Corporate
- Administered
- Contractual
(Page No. 337 – Unit 11)

Q9) In interpersonal communication

Options:
- There is one source and one receiver
- Communication is two dimensional
- There is direct feedback
- Messages can’t be tailored to individual needs

Q22) Types of industries based on the number of available competitive advantages and
their size are:
Options:
- Volume industry
- Specialized industry
- Stalemated industry
(Page No: 265)

Q24) Key marketing objectives in Maturity stages are:

Options:
- Rationalization of product lines to maintain profitability
- Finding new growth avenues
- Improved efficiency of marketing operations
(Page No. 320 – Unit 10)

Q25) Negative drives are:

Options:
- Fear
- Aversion
- Erosion
- Demands

Q28) Elements of the marketing plan are:

Options:
- Marketing objectives
- Market segmentation and targeting
- Marketing mix
- Distribution mix

Q35) Some of the examples of direct channels are:

Options:
- Tupperware
- Oriflame
- Avon
(Page No. 336 – Unit 7)
Q42) Factors to consider while analyzing strengths and weaknesses from the “Customer
base” point of view are:
Options:
- Similar assets
- Size, loyalty
- Market share
- Growth of target markets served

Q43) Marketing people market following entities:

Options:
- Events
- Places
- Persons
- Needs

Q44) Various levels of a product are:

Options:
- Basic
- Core
- Expected
- Active

Q46) These two buyers are the two ends of the price quality continuum.
Options:
- Price buyers
- Relationship buyers
(Page No. 369 – Unit 12)

3
Match the Following
Q8)
Interactivity, flexibility, discovery oriented, accessibility – Characteristics of DSS

Research design – Exploratory or conclusive research

Probability sample – Stratified random sample, cluster sample

Non probability sample – Convenience sample, judgment sample

(Page No. 146, 151, 158 – Unit 5)

Q43)
Economic factors – Credit availability, income growth
Demographic factors – Educational levels, ethnic markets
Socio-cultural factors – Customs, lifestyles
New global economy – De-regulation, globalization
(Unit 2 – Sections 2.3, 2.4)

True/False
Q1) Services can’t be displayed or sampled
A) True

Q3) In high involvement categories, customer’s price sensitivity is seen to be lower.

Q7) In industries where switching costs are low, customers can switch brands relatively
easily.
A) True
(Page No. 107 – Unit 4)

Q11) Most products can be differentiated with features that enhance the product
performance

Q13) Intranets are critical for communications within organizations

A) True
(Page No, 424 – Unit 14)

Q14) To make strengths-weakness analysis more manageable, companies usually group

competitors into strategic groups
A) True

Q19) New product ideas generally come from external sources like customer, competitor
A) False

Q27) Core competence should not be difficult to imitate

A) False
(Page No. 70 – Unit 3)

Q28) Risk and uncertainty for the buyer is higher for physical product than for services
A) False
(Page No. 446 – Unit 15)

Q47) All value additions add some cost to the product

Single Answer Questions

Q2) Which of the following are the discounts that apply to single orders or purchases
rather than to the total volume and are intended to encourage purchases in larger
quantities
A) Non cumulative discounts

Q4) When the cost of responding is too high, it is advisable to ______ the price out.
A) Ignore
(Page No. 388 – Unit 13)

Q5) Companies lack knowledge about customer’s expectations because of inadequate __

Options: Market research / Customer service / Management / Consumer behavior

Q6) Which of the following is a scale that rates the importance of some attribute?
Options: Rating scale / Semantic differential / Likert scale / Importance scale

Q12) Which of the following is the actual encounter between the service employee and
the customer
A) Face to face services
Options: Service blueprint / Face to face services / Moments of truth / Internal marketing

Q15) The purpose of ______ strategy is not merely to react with price but to convince the
competitor to back off
A) Defend
(Page No. 389 – Unit 13)

Q17) Who among the following are the first wave of customer adopters on innovations.
A) Explorers
(Page No. 310 – Unit 10)

Q20) _____ is seen in FMCG industries

A) Monopolistic competition
(Page No. 101 – Unit 4)

Q22) Which of the following departments converts the conceptual product into a physical
product:
Options: Marketing / Engineering / Personnel / Advertising

Q25) Which of the following is a name, term, sign, symbol that is intended to identify the
goods and services of one seller(s) and to differentiate them from competition
A) Brand
(Page No. 288 – Unit 9)

Q29) Which of the following is the degree to which all the units of a particular product
are identical and have a consistent quality and meet the promised specifications
Options:
Operational effectiveness / Strategic positioning / Conformance quality / Performance
quality

Q30) ______ are powerful way of differentiating the brand as they clearly communicate
the brand’s value proposition
Options: Public relations / Speeches / Slogans / Personal selling
Q31) Positioning is the art of placing the entire _____ - in the customer’s mind
A) Marketing mix
(Page No. 236 – Unit 8)

Q32) Strategic _______ is the coordination of inter related marketing, competitive and
financial decisions to set prices profitably.
A) Pricing
(Page No. 354 – Unit 12)

Q33) Which of the following are wants backed by an ability to pay:

A) Demands
(Page No. 11 – Unit 1)

Q34) ______ shape the future of the company

Options: Competitor’s products / Old products / New products / Recycled products

Q35) When the company wants to equalize the costs for all customers, it adopts
A) Uniform delivered pricing
(Page No. 395 – Unit 13)

Q37) Which of the following consists of competition among all product offerings that
compete for the customer’s “money”?
A) Share of wallet
(Page No. 99 – Unit 4)

Q38) ______ resides in the minds of consumers

Options: Product width / Product / Brand / Product line

Q41) In BCG growth rate matrix, horizontal axis represents:

Options: Marketing growth rate / Competitive advantage / Core competency / Market
share relative to competitors

Q42) Switching costs can be _____ as customers are locked into the asset bought until
they decide to upgrade or replace it.
A) Psychological
(Page No. 107 – Unit 4)

Q44) _______ product is the level of experience and sophistication of the customer
Options: Expected / Potential / Augmented / Core

Q45) Under which of the following pricing approach, the mark up is added in various
costs incurred to determine the target price.
Options: Value based pricing / Cost based pricing / Competitive pricing / Quality based

Q48) ______ rarely appear in the introduction phase of profit curve

Options: Growth / Competition / Profits / Sales
Multiple Answer Questions
Q9) Levels of consumer decision making are:
Options:
- Extensive problem solving
- Limited problem solving
- Routinised problem solving
(Page No. 187 – Unit 6)

Q10) Sources of secondary data are:

A)
- Government sources
- Commercial database
(Page No. 144 – Unit 5)

Q16) Exit barriers include:

A)
- Plant, equipments etc.
- Long term contracts to customers for parts
- Shared facilities
(Page No. 115 – Unit 4)

Q18) Types of technological fears that act as barriers to product acceptance:

Options:
- Fear of technical complexity
- Fear of rapid obsolescence
- Fear of physical harm
- Fear of psychological harm

Q21) Following are the types of exploratory research

Options:
- Observational
- Focus group
- Experimental
- Survey
(Page No. 147 – Unit 5)

Q23) The “input” stage of consumer decision making consists of the following major
sources of information
Options:
- Firm’s marketing efforts
- Socio cultural environment
(Page No. 171 – Unit 6)

Q24) Meaningful differentiation should satisfy the following criteria:

Options:
 - Valued
- Profitable
- Sustainable
(Page No. 264 – Unit 9)

Q26) Give a few examples of facilitators

Options:
- Transportation companies
- After sales service
- Insurance companies
- Co-operative banks

Q36) Following are the philosophies which guide the companies marketing activities:
A)
- Production concept
- Selling concept
- Customer concept
(Page No. 3 – Unit 1)

Q39) Special pricing tactics are

Options:
- Price lining
- Odd even
- Price bundling
(Page No. 396 – Unit 13)

Q40) Industrial goods are classified as:

Options:
- Raw materials and parts
- Capital items and supplies
- Supplies, consumables and services
(Page No. 282 – Unit 9)

Q46) Factors that affect the perceived ‘value’ of a product’s differences are:
Options:
- Reference price
- Difficult comparison
- Switching cost
- Fairness

4
Match the Following
Q24)
Poke mon, Bey blade – Fads
Art of living, Yoga – Trends
Globalization – Mega trend
Renewable resources – Timber, food

Q38)
Physical evidence – External signage’s
Traditional ‘p’ – Promotion
Additional service ‘p’ – Processes
Temps – Part time employees
(Page No. 450 – Unit 15)

True / False
Q9) Marketers must take a customer centric view of product categories and competition

Q10) In industries where switching costs are low, customers can switch brands relatively
easily
A) True
(Page No. 107 – Unit 4)

Q12) The pricing strategy that a company adopts in the growth stage must be in line with
the competitive position or company’s strategy that it has decided to adopt.
A) True
(Page 374)

Q18) Inaccurate sales forecast can lead to either excess inventory or inventory shortfall.
A) True

Q19) Cohort effect is seen in categories like music, movies and clothes.

Q26) Classification of products also changes as the product moves through its life cycle
A) True

Q30) The larger the expenditure, the more the buyer gains by spending greater time in
carefully evaluating the alternatives and attempting to find a better deal.
A) True
(Page No. 363 – Unit 12)

Q41) Letter of transmittal is written by the client to the researcher before the project
begins
False

Q43) Expenditure effect can’t be looked at in isolation

A) True
(Page No. 364)
Q47) Transferring of title or ownership is one of the activity undertaken by the channel
member
True

Single Answer Questions

Q1) The channel for services distribution is
Options: is indirect / needs intermediaries / is horizontal / simultaneous, production &
distribution is simultaneous

Q3) The concept of market segmentation was born after ______ -- gained acceptance
A) Marketing concept
(Page No. 206)

Q4) _________ exist only in regulated or protected industries

A) Monopolies
(Page No. 100)

Q5) These are the discounts that apply to single orders or purchases rather than to the
total volume and are intended to encourage purchases in larger quantities
A) Non cumulative discounts

Q7) A _____ innovation is of greater magnitude and occurs rarely.

A) Discontinuous
(Page No. 300 – Unit 10)

Q8 ) Companies forming strategic channel alliances also known as ________

A) Horizontal marketing system
(Page No. 339 – Unit 11)

Q11) Service _____ is a comparison between expectations and performance

A) Quality
(Page No. 453 – Unit 15)

Q13) He learns from the market leader and adapts and improves leader’s products.
A) Adapter
(Page No. 131 – Unit 4)

Q15) Market segmentation and _____ are complementary concepts

A) Diversity
(Page No. 206 – Unit 7)

Q17) Marketers must be able to reach the market segments they want to target through
media and distribution channels in an economical way.
A) Accessible
(Page No. 225)
Q21) Which type of goods use indirect channels of distribution
A) Convenience goods
(Page No. 336 – Unit 11)

Q22) ______ uses scientific methods for data collection and analysis to test prior notions.
A) Market research
(Page No. 140)

Q23) It is defined as any short duration communication activity, which provides an

incentive to the target market to purchase a product / service immediately
A) Sales promotion
(Page No. 416 – Unit 14)

Q27) It is the holistic way in which the customers perceive the company and its products.
A) Brand image
(Page No. 274 – Unit 9)

Q28) It relates to any non personal communication through the media, such as press
releases, press conference etc.
A) – Publicity
(Page No. 418 – Unit 14)

Q29) In this stage, a detailed feasibility study of different market segments is done before
the marketers decide on the segments to target.
A) Evaluating segment attractiveness
(Page No. 226)

Q33) ______ is a service firm sponsored retailer franchise.

Options: Hyundal /Maruti / Hertz / Ford

Q34) Producers of business goods rely heavily on which communication media

Options: Personal selling / Sales promotion / Public relations / Advertising

Q35) Consolidation is brought about by ________

Options: Competition / Imitation / Innovation / Invention

Q36) It is an annual study conducted in the U.S and reveals a co-relation between market
share and profitability
A) PIMS study
(Page No. 125 – Unit 4)

Q37) Full market coverage with _____ -marketing is highly appropriate with a strong
competitive advantage and the financial resources
A) Differentiated
(Page No. 229)
Q39) Product ______ is seen to increase rivalry between firms
A) Perish ability
Options: Perish ability / Fragmentation / Concentration / Sustenance
(Page No. 384 – Unit 13)

Q40) Several ______ big and small, have vastly changed the product form, functionality
and value of these products.
Options: Innovations / Inventions / Improvements / Imitations

Q46) It is a blueprint for conducting the market research project

A) Research design
(Page No. 146 – Unit 5)

Multiple Answer Questions

Q2) Consumers in India are on top three priority spending on:
Options:
- Transportation
- Education
- Housing
- Healthcare

Q6) Consumer goods can be further classified as per shopping habits of customers into:
Options:
- Convenience goods
- Specialty goods
- Unsought goods
(Page No. 278 – Unit 9)

Q14) Worldwide differences in culture are categorized according to following

dimensions:
A)
- Power distance
- Uncertainty avoidance
- Time orientation
(Page No. 34-35 – Unit 2)

Q16) Differentiation can be created in following ways:

A)
- Provide the same solution in better ways
- Provide the same solution in better ways and at better price
- Provide a unique solution that nobody else provides
(Page No. 264 – Unit 9)

Q20) Following are the service differentiators:

Options:
 - Delivery
- Customer training
- Maintenance and repair
- Ordering form

Q25) These are related growth strategies:

Options:
- Market penetration
- Market development
- New product development
- Diversification
(Page No. 72)

Q31) Characteristics of convenience goods are:

A)
- Low involvement products
- Heterogeneous market
(Page No. 278)

Q32) Type of changes in the macro environment are:

A)
- Fads
- Trends
- Mega trends
(Page No. 31 – Unit 2)

Q42) Addition of products to the existing product lines can be in the form of:
Options:
- Variants
- Pack sizes
- Flavors
(Page No. 298 – Unit 10)

Q44) After the new product has passed the conceptual stages it becomes more concrete in
which stages?
Options:
- Test marketing
- Commercialization
(Page No. 305-306 – Unit 10)

Q45) Characteristics of Conclusive research are:

Options:
- Formal
- Structured
- Sample size large
- Sample size small
Q48) Limitations of all Market research projects are caused by:
A)
- Time
- Budget
- Organizational constraints
(Page No. 157 – Unit 5)