Chapter 9 MCQs

1. Which of the following is not a key stage in the marketing strategy formulation?
a) Developing the value proposition
b) Delivering the value proposition
c) Segmenting and targeting well-defined groups of potentially profitable customers
d) None of the above

2. Segments should compromise customers who:

a) Share similarities
b) Do not share similarities
c) Have bought the product or service previously
d) Have not bought the product or service previously

3. Which of the following variables are used to segment organisational markets?

a) Decision-making unit structure
b) Demographics
c) Psychographics
d) All of the above

4. segmentation involves segmenting the market based on knowledge levels,

attitudes, usage rates and benefits sought.
a) Demographic
b) Geodemographic
c) Behavioural
d) Psychographic

5. Geodemographic segmentation involves segmenting the market based on:

a) Lifestyles and interests
b) Demographic variables and geographic variables
c) Knowledge levels
d) Attitudes and usage rates

6. is based on customers’ perceptions.

a) Segmentation
b) Targeting
c) Positioning
d) The value proposition

7. Crawford and Matthews (2001) suggest that a company’s value proposition should be based
along a range of:
a) 3 key attributes
b) 5 key attributes
 c) 6 key attributes
d) 7 key attributes

8. An activity or benefit that one party can offer to another, which is intangible and does not
result in the ownership of anything, is known as:
a) A product
b) A value proposition
c) A service
d) A brand

9. Customers are not motivated to purchase tangible products as ends in themselves but rather
the value the ownership these products/services create. This is known as:
a) Service-dominant logic
b) Value proposition
c) Perceptual mapping
d) Segmentation

10. The legal term for brand is:

a) Patent
b) Licence
c) Trademark
d) None of the above

11. The marketing perspective of brand equity is based on:

a) The brand’s image
b) Values and customer attachment
c) Sustained loyalty to the brand
d) All of the above

12. b refers to the use of technology and its tools to spread the compelling
marketing offers which is voluntarily passed around by customers.

13. A company should deliver a clear, consistent message about the company itself, its brands
and its products and services. This refers to:
a) Marketing communications
b) Integrated marketing communications
c) Unintegrated marketing communications
d) None of the above

14. Within a channel the venture relies on intermediaries in order to transport the
goods from production facilities to the customers.
a) Direct
b) Hybrid
c) Indirect
d) None of the above
15. pricing consists of adding a standard mark-up cost of the product.
a) Competition-based pricing
b) Market-skimming pricing
c) Customer-value based pricing
d) None of the above