A common technique used to determine market positioning is:

a. Marketing targeting
b. Marketing mix
c. Market promotion
d. Environmental analysis
e. Perceptual mapping

The number of possible segments grows by multiples when an additional segmentation

variable is added. For example, adding gender _____ the number of market segments
a. Expands
b. Doubles
c. Strengthen
d. Intensifies
e. Triples

Which of the following statements is correct?

a. An architect designing a couple's 'dream' home is an example of customised
marketing.
b. A customised market segment has between 49% to 66.6% of potential needs.
c. A market customised target segment has similar needs, but the members of the
segment have distinctive needs.
d. A market segment has distinctive needs, but more than 33.3% of the members of the
segment have similar needs.

Organisations that pursue a specialisation strategy seek to establish a dominant position

in their chosen ____ market
a. Producer
b. Product
c. Consume
d. Niche

Emma decides that after establishing a successful business using a mass marketing
approach, she wants to expand by differentiating her product range. Emma conducts
market research investigating the psychographic characteristics of her market. Emma
understands that:
a. psychographic segmentation variables include consumer lifestyles.
b. all of the options listed
c. psychographic segmentation variables include consumer motives.
d. psychographic segmentation variables include consumer personality attributes.

Which of the following is not a variable an organisation could use to segment business
markets?
a. Type of industry.
b. Product use.
c. All of the options listed are potential business market segmentation variables.
d. Organisational size.
e. Geographic.

You open a liquor store, selling only boutique wines (produced in smaller quantities and
as such not sold through major retailers) from the Hunter Valley in NSW. Your
specialised approach to the target market is:
a. differentiated target marketing.
b. product specialisation.
c. market specialisation.
d. product-market specialisation.

Emma decides that after establishing a successful business using a mass marketing
approach, she wants to expand by differentiating her product range. Emma decides she
will use a target marketing approach, which can best be described as:
a. developing a marketing mix for the market.
b. none of the options listed.
c. identifying business-to-business markets, then tailoring the marketing mix to best
appeal to those markets.
d. identifying business-to-consumer markets, then tailoring the marketing mix to best
appeal to those markets.
e. identifying smaller, more targetable market segments, then tailoring the
marketing mix to best appeal to those segments.

Which of the following best describes the broad concept of a market?

a. A group of customers with heterogeneous needs and wants.
b. A group of customers with homogenous needs and wants.
c. The business-to-business market.
d. The business-to-consumer market.
e. None of the options listed.

Elders provides a comprehensive range of goods and services to farmers. This

specialised approach to target marketing is an example of:
a. product-market specialisation.
b. mass marketing.
c. one-to-one marketing.
d. market specialisation.
e. product specialisation.

Which of the following statements is correct?

a. An organisation can implement sales promotion strategies to offer extra value to
retailers and salespeople in a bid to increase sales.
b. An organisation can implement sales promotion strategies to offer extra value to
consumers in a bid to increase sales.
c. An organisation can implement sales promotion strategies to smooth demand.
d. All of the options listed.

The marketing activities that make potential customers, partners and society aware of
and attracted to the business's offerings is
known as:
a. marketing.
b. campaigning.
c. promotion.
d. integrated marketing communication.

In the 7Ps framework, distribution is also known as:

a. product.
b. partners.
c. process.
d. people.
e. place.

Milk could best be described as a product that is _____ distributed.

a. directly
b. None of the options listed.
c. intensively
d. selectively
e. exclusively

David has decided to buy a new pair of work shoes, so he spends his afternoon shopping
for a new pair. When classifying products, the category of 'shopping products', which
includes shoes, also includes:
a. none of the options listed.
b. impulse products.
c. staple products.
d. emergency products.

A car salesperson shows buyers cars that are outside their price range before showing
them more suitable vehicles. This could best be described as an example of:
a. odd-even pricing.
b. cost-plus pricing.
c. bundle pricing.
d. multiple-unit pricing.
e. reference pricing.
The characteristics that formally distinguish services from goods are intangibility,
inseparability, ____ and perishability.
a. heterogeneity
b. benefits
c. homogeneity
d. tangibility

A haircut, travel advice and financial advice are all examples of:
a. benefits.
b. goods.
c. demands.
d. services.

Which of the following would be classed as physical evidence in terms of the tangible
cues that customers may use to evaluate a service?
a. All of the options listed.
b. Delivery vehicles.
c. Brochures.
d. Staff uniforms.
e. Shop fittings.

If a consumer is prepared to spend time comparing competing offerings before making a

purchase decision, the product is most likely to be a(n):
a. specialty product.
b. unsought product.
c. shopping product.
d. convenience product.
e. core product.

The three major markets of interest in economics are the:

a. product, capital, and capital goods markets.
b. labour, capital, and capital goods markets.
c. product, labour, and capital goods markets.
d. product, labour, and foreign exchange markets.
e. product, labour, and capital markets.

Along an individual firm's supply curve, a reduction in quantity supplied occurs when:
a technological advancement has occurred.
b. price has declined.
c. the firm is induced to offer more for sale at a lower price.
d. the firm's profit has risen.
e. price has increased.
The quantity demanded is influenced by both changes in the price and changes in
variables other than price. Changes in ___ result in____ the demand curve.
a. tastes; movement along
b. consumers income; movement along
c. price; shifts of
d. variables other than price; shifts in
e. variables other than price; movement along

A reduction in the price of a substitute product will normally cause:

a. the demand curve to shift to the left.
b. a movement along the demand curve such that quantity demanded increases.
c. an individual to increase the consumption of any goods she purchases.
d. the demand curve to shift to the right.
e. a movement along the demand curve such that quantity demanded declines.

If a firm raises the price of its product and finds that total revenue has fallen, this
indicates that:
a. demand for the product has unit price elasticity.
b. demand for the product is price elastic.
c. demand for the product is price inelastic.
d. the price elasticity is greater than one.
e. the demand curve for the product is downward sloping.

An individual is typically willing to purchase more of a good at lower prices, which

implies that the individual demand curve will be:
a. downward sloping.
b. of indeterminate shape.
c. horizontal.
d. vertical.
e. upward sloping.

The demand curve is downward sloping, which means that the quantity demanded for a
good ___ when its price ___
a. falls; rises
b. rises; rises
c. is unchanged; falls
d. falls; falls
e. is unchanged; rises

The market demand curve is:

a. derived by vertically summing the individual demand curves at each price.
b. independent of individual demand curves.
c. derived by vertically summing the individual demand curves at each quantity.
d. derived by horizontally summing the individual consumer's demand curves at each
quantity.
e. derived by horizontally summing the individual demand curves at each price.

Whenever two events occur simultaneously:

a. one event must have caused the other event.
b. there is both correlation and causation.
c. there is causation but not necessarily correlation.
d. the two events are independent.
e. there is correlation but not necessarily causation.

The market supply curve is:

a. derived by horizontally summing the individual firms' supply curves at each quantity.
b. derived by vertically summing the individual firms' supply curves at each quantity.
c. derived by vertically summing the individual firms' supply curves at each price.
d. derived by horizontally summing the individual firms supply curves at each
price.
e. independent of the individual firms' supply curves.

As a marketing manager, you undertake research to understand how potential buyers

see your brand. Your research is aiming to identify your brand's:
a. benefit.
b. position.
c. value.
d. potential

Emma has decided to switch from a mass marketing approach, to a target marketing
approach. She understands that target marketing is a process and ____________________
forms the basis of the process.
a. market research
b. market intelligence
c. the marketing mix
d. marketing strategy
e. market segmentation

As an importer of surfing accessories, your company focuses its marketing operations in

the warmer coastal regions of Australia. This action is an example of:
a. demographic segmentation.
b. geographic segmentation.
c. behavioural segmentation.
d. psychographic segmentation.
Organisations that pursue a specialisation strategy seek to establish a dominant position
in their chosen ___________ market
a. producer.
b. consume.
c. product.
d. niche.

The total volume of sales of a product category that all organisations in an industry are
expected to sell in a specified period of time, assuming a specific level of marketing
activity is known as:
a. market potential.
b. sales revenue.
c. return on investment.
d. market share

Which of the following would be a consideration for an organisation in evaluating

market segments and deciding which to target?
a. An understanding and/or analysis of competitors and how their offerings are seen by
potential target market segments.
b. The ability of the organisation to satisfy the needs and expectations of different
market segments.
c. The potential sales volume and revenues of different market segments.
d. The cost to the organisation of targeting that market segment.
e. All of the options listed would be considerations.

As a marketer for a major wine company, you implement a marketing program based on
occasion-based segmentation. You market some products as 'gifts', others as
'celebratory' and others for 'cellaring'. You action is an example of:
a. psychographic segmentation.
b. behavioural segmentation.
c. geographic segmentation.
d. demographic segmentation.

Which of these of these underlies the concept of target marketing?

a. Sellers understand the needs of buyers.
b. All of the options listed.
c. Individual buyers or groups of buyers can be identified.
d. Sellers will seek to shape their offer to meet the needs of target buyers

Which of the following statements is correct?

a. All of the options listed.
b. Psychographic segmentation variables include consumer motives.
c. Psychographic segmentation variables include consumer lifestyles.
d. Psychographic segmentation variables include consumer personality attributes.

The three main stages of the targeting process, in chronological order, are:
a. None of the options listed.
b. targeting, segmentation, positioning.
c. segmentation, positioning, targeting.
d. segmentation, targeting, positioning.
e. targeting, positioning, segmentation.

Milk could best be described as a product that is __________ distributed.

a. intensively
b. exclusively
c. selectively
d. directly
e. None of the options listed.

By definition, a product is:

a. A good, service, or idea
b. A good, service, idea, or person
c. Idea or person
d. Good or service

Which of the following statements is incorrect?

a. An organisation submitting a press release to the media is an example of a public
relations activity.
b. Public relations activities can be used as a tool to combat negative perceptions or
events.
c. All of the options listed.
d. Public relations campaigns are generally high cost.
e. Public relations activities include communications aimed at creating and maintaining
relationships between an organisation and its stakeholders.

In terms of the total product concept, product differentiation occurs mainly at the
__________level
a. growth
b. expected
c. augmented
d. life cycle
e. Core

The total product concept broadly describes a product as a bundle of attributes, creating
value for the customer. Specifically, a product can be defined as the core product,
expected product, ____________ product and ____________ product.
a. associated, finished
b. associated, final
c. augmented, serviced
d. augmented, potential

An approach in which a product is promoted to consumers to create demand upward

through the marketing distribution channel is known as a:
a. pull policy.
b. push policy.
c. promotional policy.
d. philanthropic policy

In the 7Ps framework, distribution is also known as:

a. product.
b. place.
c. process.
d. people.
e. partners.

The marketing activities that make potential customers, partners and society aware of
and attracted to the business's offerings is known as:
a. promotion.
b. integrated marketing communication.
c. marketing.
d. campaigning

Which of the following statements is incorrect?

a. None of the options listed.
b. A physical good is a product.
c. A service usually involves transfer of ownership.
d. A physical good is tangible; a service is intangible.
e. A service is a product.

Which of the following distribution channels is/are logical?

a. Producer, agent/broker, consumer.
b. Producer, wholesaler, retailer, consumer.
c. All of the options listed.
d. Producer, consumer.

Diamonds command a higher price than water because they have a:

a. higher marginal value.
b. lower value in use.
c. higher value in use.
d. lower value in exchange.
e. higher total value.

Total revenue will decline if the price ____ when the demand curve ____.
a. rises; has unit price elasticity.
b. rises; is price inelastic.
c. rises; is price elastic.
d. falls; is price elastic.
e. falls; has unit price elasticity

Microeconomics is that branch of economics that focuses primarily on:

a. the behaviour of individual units.
b. aggregate economic activity.
c. market economies.
d. centrally planned economies.
e. economic aggregates such as unemployment and inflation.

When a market is in equilibrium:

a. there is always excess demand.
b. there is neither excess supply nor excess demand.
c. there is both excess supply and excess demand.
d. there is either excess supply or excess demand, but not both.
e. there is always excess supply.

In the product market, firms:

a. are sometimes buyers, sometimes sellers, of goods.
b. are only buyers of goods.
c. are only sellers of goods.
d. have no control over which goods are produced.
e. determine for whom goods are produced.

The quantity demanded is influenced by both changes in the price and changes in
variables other than price. Changes in _____ result in _____ the demand curve.
a. tastes; movement along
b. consumers income; movement along
c. variables other than price; movement along
d. price; shifts of
e. variables other than price; shifts in

Which of the following factors are most likely to lead to a shift in the demand curve for
movie tickets?
a. A change in the price of attending a movie
b. A change in the size of movie theaters
c. A decline in the fees paid to movie stars
d. An increased supply of movies
e. A change in the price of video rentals

By the term 'demand curve', economists mean the curve describing the relationship
between price and quantity demanded. The focus on price means that:
a. price is the only factor that influences quantity demanded.
b. economists are assuming that other influences on quantity demanded are
constant so that the effect of price can be isolated.
c. the model's predictive power is of little value.
d. economists are inappropriately overlooking other influences on quantity demanded.
e. economists believe price is the only factor that influences quantity demanded.

Assume that the forces of supply and demand operate freely. All of the following
statements, except one, are true in this situation. Which is not?
a. Prices provide incentives to use scarce resources efficiently.
b. Prices measure relative scarcity.
c. When the price of a good rises, producers are encouraged to produce more of the good
and consumers are encouraged to purchase less of the good.
d. Prices convey critical economic information.
e. When the price of a good rises, producers are encouraged to produce less of the
good and consumers are encouraged to purchase more of the good.

The three major markets of interest in economics are the:

a. product, labour, and foreign exchange markets.
b. product, labour, and capital goods markets.
c. product, labour, and capital markets.
d. labour, capital, and capital goods markets.
e. product, capital, and capital goods markets

Which of the following is not a behavioural segmentation variable?

a. All of the options listed are behavioural segmentation variables.
b. Consumer's benefit expectations of a product.
c. Brand loyal consumers.
d. Heavy, medium or light users of a product.
e. The occasion for which a product may be purchased by a consumer

Which of the following would be useful for an organisation in forecasting the sales
potential for a market segment?
a. All of the options listed.
b. A knowledge of the conditions in its marketing environment.
c. A knowledge of the activities of competitors.
d. A knowledge of its current market share in that segment.

A market segment profile describes:

a. none of the options listed.
b. common features shared by members of market segments and how they differ
from other market segments.
c. the marketing mix that will be targeted at a particular market segment.
d. quantitative characteristics of a particular market segment.
e. qualitative characteristics of a particular market segment.

Which of the following is not a variable an organisation could use to segment business
markets?
a. Organisational size.
b. Geographic.
c. Product use.
d. All of the options listed are potential business market segmentation variables.
e. Type of industry.

Which of the following can influence the market position of an organisation, its
products, or its brands in the minds of target consumers?
a. The price of the organisation's product.
b. The features of the organisation's product.
c. The customer's experience of the organisation, product, or brand.
d. Advertising and other promotional efforts.
e. All of the options listed.

Emma decides that after establishing a successful business using a mass marketing
approach, she wants to expand by differentiating her product range. Emma conducts
market research investigating the psychographic characteristics of her market. Emma
understands that:
a. psychographic segmentation variables include consumer lifestyles.
b. psychographic segmentation variables include consumer motives.
c. all of the options listed
d. psychographic segmentation variables include consumer personality attributes.

The first step in determining the current positioning of a brand is:

a. to develop a plan to move to the desired position.
b. to devise some concept of the ideal position of the organisation's product or brand.
c. to move towards a position related to peer status.
d. to identify product attributes that consumers use to distinguish between
competing products or brands.
As a marketer for a major wine company, you implement a marketing program based on
occasion-based segmentation. You market some products as 'gifts', others as
'celebratory' and others for 'cellaring'. You action is an example of:
a. psychographic segmentation.
b. demographic segmentation.
c. behavioural segmentation.
d. geographic segmentation.

The Australian car market can potentially be segmented in a number of different ways.
When segmenting any market, the market segmentation variables should always:
a. segment a market geographically.
b. be based on demographics.
c. require a lot of market research to obtain.
d. include a psychographic component.
e. be linked closely to the purchase of the product in question.

When the marketer seeks to _________and ___________those parts of the total market that it
can offer the most__________, the approach is known as the ___________ marketing concept.
a. identify, understand, value, target
b. grow, understand, benefit, total
c. identify, grow, value, total
d. identify, understand, value, total

Big Australian retail outlets such as Kmart, Big W and Target stock a wide range of
consumer products. The consumer products stocked by these retailers can be best
categorised as:
a. shopping, convenience, specialty and core products.
b. shopping, convenience, specialty and unsought products.
c. shopping, convenience and specialty products.
d. shopping, convenience, core and augmented products.
e. shopping, convenience and unsought products.

Apple and Virgin are two companies who frequently use public relations campaigns to
generate awareness of and interest in the products and services they offer to the market.
Public relations campaigns such as those run by Apple and Virgin have a number of
characteristics, but these characteristics do not include which of the following
statements?
a. All of the options listed.
b. Public relations activities can be used as a tool to combat negative perceptions or
events.
c. Public relations campaigns are generally high cost.
d. An organisation submitting a press release to the media is an example of a public
relations activity.
e. Public relations activities include communications aimed at creating and maintaining
relationships between an organisation and its stakeholders.

Milk could best be described as a product that is __________ distributed.

a. intensively
b. exclusively
c. directly
d. selectively
e. None of the options listed.

During a meeting to discuss improving the 'weakest' parts of your business, your boss
asks you to contact all the members of your supply chain; he has identified this as an
area where improvements need to be made. Subsequently you need to contact:
a. The consumers who buy your product.
b. The transporters and suppliers involved in getting your product to market.
c. Your retailers and distributors.
d. The producers who supply raw materials to your manufacturers.
e. All of the parties involved in providing the raw materials and services to get
your product to market.

An approach in which a product is promoted to consumers to create demand upward

through the marketing distribution channel is known as a:
a. pull policy.
b. promotional policy.
c. philanthropic policy.
d. push policy.

A target market can best be described as:

a. a group of customers with similar needs and wants.
b. the total market for a product.
c. a group of customers with different needs and wants.
d. customers who don't currently purchase an organisation's products.
e. customers who currently purchase an organisation's products

Which of the following would be classed as physical evidence in terms of the tangible
cues that customers may use to evaluate a service?
a. All of the options listed.
b. Shop fittings.
c. Staff uniforms.
d. Brochures.
e. Delivery vehicles.
A brand is a collection of ________, such as a name, logo, slogan and design, intended to
create an image in the customer's mind that __________ a product ________ competitors'
products.
a. signs, associates, from
b. symbols, associates, with
c. signs, differentiates, with
d. symbols, differentiates, from

Tickets to a concert that never get sold are an example of a service's:

a. heterogeneity.
b. homogeneity.
c. perishability.
d. intangibility.

In terms of the total product concept, product differentiation occurs mainly at the
__________level.
a. growth
b. expected
c. augmented
d. life cycle
e. core

The demand curve is downward sloping, which means that the quantity demanded for a
good _____ when its price ________.
a. falls; rises
b. is unchanged; falls
c. falls; falls
d. rises; rises
e. is unchanged; rises

A technological improvement will normally cause:

a. the supply curve to shift to the right.
b. a movement along the supply curve such that quantity supplied declines.
c. the supply curve to shift to the left.
d. an individual to increase consumption of any goods she purchases.
e. a movement along the supply curve such that quantity supplied increases.

The individual consumer's demand curve for a good describes the:

a. quantity of the good demanded by all consumers at each price.
b. quantity of the good demanded by the consumer at each price.
c. amount of income needed by the consumer to buy different quantities of the good.
d. average quantity of the good demanded by all consumers.
e. quantity of the good demanded by the consumer at each level of the consumer's
income

All of the following, except one, are sources of a shift in a market demand curve for a
good. Which is not?
a. A change in the price of a complement for that good
b. A change in the price of a substitute for that good
c. A change in consumers' incomes
d. A change in the price of that good
e. A change in tastes

An increase in consumers' income will normally cause:

a. the demand curve to shift to the right.
b. a movement along the demand curve such that quantity demanded increases.
c. the demand curve to shift to the left.
d. an individual to decrease consumption of any goods she purchases.
e. a movement along the demand curve such that quantity demanded declines

A reduction in the price of a complement will normally cause:

a. the demand curve to shift to the right.
b. a movement along the demand curve such that quantity demanded declines.
c. a movement along the demand curve such that quantity demanded increases.
d. the demand curve to shift to the left.
e. an individual to decrease consumption of any goods she purchases.

An increase in the price of an input will normally cause:

a. the supply curve to shift to the left.
b. a movement along the supply curve such that quantity supplied declines.
c. a firm to increase the amount it offers for sale.
d. a movement along the supply curve such that quantity supplied increases.
e. the supply curve to shift to the right

The theories that are developed in economics:

a. are valid for individuals but not for groups.
b. are of little value since they cannot actually be tested in laboratories.
c. are conclusions derived from sets of assumptions.
d. are based upon unrealistic assumptions and therefore are of little value in explaining
real-world behaviour.
e. require that individuals know and understand them before they can be applied.

All of the following, except one, are sources of a rightward shift in the market demand
curve for butter.
Which is not?
a. Reduced concern about the health risks associated with eating butter
b. An increase in the price of margarine
c. An increase in consumers' incomes
d. An increase in the price of bread
e. A large increase in the size of the population

If the market price of a good is such that consumers wish to buy less of the good than
firms are offering for sale, the excess _____ will cause price to _____.
a. demand; fall
b. supply; fall
c. demand; rise
d. price; fall
e. supply; rise

1. Which of the following is not a behavioural segmentation variable?

a. Brand loyal consumers.
b. Consumer's benefit expectations of a product.
c. All of the options listed are behavioural segmentation variables.
d. The occasion for which a product may be purchased by a consumer.
e. Heavy, medium or light users of a product

2. The three main stages of the targeting process, in chronological order, are:
a. segmentation, targeting, positioning.
b. segmentation, positioning, targeting.
c. targeting, positioning, segmentation.
d. None of the options listed.
e. targeting, segmentation, positioning

3. Understanding the ______________ is a fundamental prerequisite for effective marketing.

Understanding target market segments is crucial to ___________, communicating and
delivering product offerings of ____________.
a. customer, creating, benefit
b. market, advertising, benefit
c. client, creating, value
d. market, creating, value

4. The total volume of sales of a product category that all organisations in an industry
are expected to sell in a specified period of time, assuming a specific level of marketing
activity is known as:
a. return on investment.
b. sales revenue.
c. market potential.
d. market share.

5. Which of the following statements is/are correct?

a. Market share refers to at least 33.3% of the total segmented market held by an
organisation when compared with last year marketing plans.
b. The level of industry marketing activity will generally influence the market
potential of a product category.
c. All of the options listed.
d. Market potential refers to the minimum possible sales in the total market for a
product category, by all organisations.

6. As an importer of surfing accessories, your company focuses its marketing operations

in the warmer coastal regions of Australia. This action is an example of:
a. behavioural segmentation.
b. demographic segmentation.
c. psychographic segmentation.
d. geographic segmentation.

7. Subaru built its early reputation in Australia by targeting visitors to, and residents of
the snow country. This method of market segmentation could best be described as:
a. demographic.
b. geographic.
c. psychographic.
d. behavioural
e. Geo-psychographic.

8/ A credit union that provides a wide range of financial services to members who are
employed in particular industries would be best described as having:
a. a market specialisation.
b. a product-market specialisation.
c. a service specialisation.
d. a product specialisation.
e. None of the options listed

9. When the marketer seeks to _________and ___________those parts of the total market
that it can offer the most__________, the approach is known as the ___________ marketing
concept.
a. identify, understand, value, total
b. identify, understand, value, target
c. identify, grow, value, total
d. grow, understand, benefit, total
10. Toyota uses a target marketing approach to selling cars. Toyota offers a range of cars
to the market. Considering this, which of the following statements is incorrect?
a. Different market segments may require different marketing mixes.
b. Market segments should be selected for targeting after an evaluation process.
c. Different target markets may require a different positioning strategy.
d. An organisation following the target marketing concept should target all
market segments.
e. Markets can be segmented many different ways using different segmentation
variables.

11. David has decided to buy a new pair of work shoes, so he spends his afternoon
shopping for a new pair. When classifying products, the category of 'shopping products',
which includes shoes, also includes:
a. staple products.
b. impulse products.
c. none of the options listed.
d. emergency products.

12. Qantas is a service provider, transporting customers from one destination point to
another. During their flights they also sell Qantas merchandise such as miniature
aeroplanes. Thinking about goods and services, which of the following statements is
incorrect?
a. A service is a product.
b. None of the options listed.
c. A physical good is tangible, a service is intangible.
d. A physical good is a product.
e. A service usually involves transfer of ownership

13. A dairy company manufactures a range of flavoured skim milks. This range is known
as the company's:
a. product item.
b. product capacity.
c. product line.
d. product mix.

14. Coca Cola rarely uses personal selling as one of its promotional strategies, instead
opting for various mass-marketing approaches. Coca Cola understands that a
disadvantage of personal selling is that:
a. personal selling is time-consuming.
b. personal selling is expensive
c. all of the options listed are disadvantages.
d. personal selling has a more limited reach.

15. A target market can best be described as:

a. a group of customers with different needs and wants.
b. customers who currently purchase an organisation's products.
c. customers who don't currently purchase an organisation's products.
d. the total market for a product.
e. a group of customers with similar needs and wants.

16. Apple MacBooks are available from licensed retailers and distributors in Australia.
Retailers are licensed based on reputation and service, adding value to the strong Apple
brand. This approach to market coverage is known as:
a. indirect distribution.
b. selective distribution.
c. direct distribution.
d. exclusive distribution.
e. intensive distribution.

17. Coca Cola is available in vending machines, bars and clubs, supermarkets, petrol
stations, corner stores and at sporting events. This approach to market coverage is
known as:
a. direct distribution.
b. exclusive distribution.
c. intensive distribution.
d. selective distribution.
e. indirect distribution.

18. In the 7Ps framework, distribution is also known as:

a. partners.
b. process.
c. place.
d. people.
e. Product.

19. The association between Qantas and the Australian Rugby Union's Wallabies team is
an example of:
a. cause-related marketing
b. product placement
c. sponsorship
d. ambush marketing

20. The total product concept broadly describes a product as a bundle of attributes,
creating value for the customer. Specifically, a product can be defined as the core
product, expected product, ____________ product and ____________ product.
a. associated, finished
b. augmented, serviced
c. augmented, potential
d. associated, final

21. At the equilibrium price:

a. the quantity supplied is less than the quantity demanded.
b. price will tend to fall.
c. there is no reason for the price to change.
d. the quantity supplied exceeds the quantity demanded.
e. price will tend to increase.

22. Total revenue will decline if the price ____ when the demand curve ____.
a. rises; is price elastic.
b. falls; is price elastic.
c. rises; has unit price elasticity.
d. rises; is price inelastic.
e. falls; has unit price elasticity.

23. If even the smallest increase in the price of a product results in the quantity demand
to fall to zero, the demand for this product:
a. has a price elasticity of unity.
b. is price elastic.
c. is perfectly price elastic.
d. is price inelastic.
e. is perfectly price inelastic.

24. Unemployment and inflation are topics within:

a. the labour market.
b. macroeconomics.
c. microeconomics.
d. the product market.
e. the capital market.

25. An increase in the price of an input will normally cause:

a. a movement along the supply curve such that quantity supplied increases.
b. a movement along the supply curve such that quantity supplied declines.
c. the supply curve to shift to the right.
d. the supply curve to shift to the left.
e. a firm to increase the amount it offers for sale.

26. By the term 'demand curve', economists mean the curve describing the relationship
between price and quantity demanded. The focus on price means that:
a. economists are inappropriately overlooking other influences on quantity demanded.
b. economists are assuming that other influences on quantity demanded are
constant so that the effect of price can be isolated.
c. economists believe price is the only factor that influences quantity demanded.
d. the model's predictive power is of little value.
e. price is the only factor that influences quantity demanded.

27. A reduction in the price of a substitute product will normally cause:

a. an individual to increase the consumption of any goods she purchases.
b. the demand curve to shift to the right.
c. the demand curve to shift to the left.
d. a movement along the demand curve such that quantity demanded declines.
e. a movement along the demand curve such that quantity demanded increases.

28. Along an individual firm's supply curve, a reduction in quantity supplied occurs
when:
a. a technological advancement has occurred.
b. price has declined.
c. price has increased.
d. the firm's profit has risen.
e. the firm is induced to offer more for sale at a lower price.

29. Economic theory would not be useful in studying:

a. why some people find it easier to give up smoking than others.
b. the effects on one's job prospects of returning to school to study for a degree.
c. the effect of increased cigarette taxes on cigarette consumption.
d. the impact on the domestic economy of reducing income taxes.
e. the impact on the domestic car industry of a quota on imported cars.

30. A reduction in the price of an input will normally cause:

a. a movement along the supply curve such that quantity supplied increases.
b. the supply curve to shift to the left.
c. a firm to decrease the amount it offers for sale.
d. a movement along the supply curve such that quantity supplied declines.
e. the supply curve to shift to the right

A target marketing strategy in which all marketing efforts are focused on meeting a wide
range of needs within a particular market segment is called:
a. product-market specialisation.
b. product specialisation.
c. market-product specialisation.
d. market specialisation.

_____ produces two-dimensional maps showing how competing brands relate to each
other in terms of a range of product attributes. This, of course, assumes that consumers
in the target segment are_____ with the brand and its competitors and are able to
subjectively or objectively compare them on attributes that they believe to be important.
a. Perceptual mapping, unfamiliar
b. Perceptual mapping, already familiar
c. Behavioural mapping, already familiar
d. Behavioural mapping, unfamiliar

Behavioural segmentation differs from geographic, demographic and psychographic

segmentation because it:
a. is relatively unchanging over time.
b. cannot provide evidence of emerging trends.
c. is based on 'consumer characteristics'.
d. is based on actual purchase and/or consumption behaviours.

Woolworths understands that their market is made up of buyers with diverse needs;
their customers have unique wants, needs and demands. The market that Woolworths
sells to is said to be:
a. target markets.
b. mass markets.
c. homogenous.
d. heterogeneous.
e. niche markets.

Market segmentation variables should always:

a. be linked closely to the purchase of the product in question.
b. segment a market geographically.
c. be based on demographics.
d. include a psychographic component.
e. require a lot of market research to obtain.

Which of the following processes is most likely to assist with identifying target markets?
a. Situational analysis
b. Creating, communicating and delivering an offering of value.
c. SWOT analysis
d. The marketing mix.
e. Market research.

An organisation that segments its market by offering rewards based on the amount of
points accumulated on its loyalty card would be best described as utilising:
a. demographic segmentation.
b. geo-demographic segmentation.
c. psychographic segmentation.
d. behavioural segmentation.
e. none of the options listed.

Which of the following would be an advantage of a one-to-one marketing strategy?

a. Positive word-of-mouth customer referrals.
b. Potential repeat purchases from the customer.
c. Building close relationships with a customer.
d. Customer loyalty.
e. All of the options listed are potential advantages.

As a marketer for a major wine company, you implement a marketing program based on
occasion-based segmentation. You market some products as 'gifts', others as
'celebratory' and others for 'cellaring'. You action is an example of:
a. geographic segmentation.
b. psychographic segmentation.
c. demographic segmentation.
d. behavioural segmentation.

Which of the following would be a consideration for an organisation in evaluating

market segments and deciding which to target?
a. All of the options listed would be considerations.
b. The potential sales volume and revenues of different market segments.
c. An understanding and/or analysis of competitors and how their offerings are seen by
potential target market segments.
d. The ability of the organisation to satisfy the needs and expectations of different
market segments.
e. The cost to the organisation of targeting that market segment.

Coca Cola is available in vending machines, bars and clubs, supermarkets, petrol
stations, corner stores and at sporting events. This approach to market coverage is
known as:
a. exclusive distribution.
b. intensive distribution.
c. selective distribution.
d. direct distribution.
e. indirect distribution.

The association between Qantas and the Australian Rugby Union's Wallabies team is an
example of:
a. sponsorship
b. product placement
c. cause-related marketing
d. ambush marketing
In terms of the product, most of the differentiating features are part of the _____
total product concept.
a. core
b. potential
c. expected
d. augmented
product layer of the

Tickets to a concert that never get sold are an example of a service's:

a. perishability.
b. homogeneity.
c. intangibility.
d. heterogeneity.

A brand is a collection of____ such as a name, logo, slogan and design, intended to create
an image in the customer's mind_____that ____ a product ____competitors' products.
a. signs, differentiates, with
b. signs, associates, from
c. symbols, differentiates, from
d. symbols, associates, with

Big Australian retail outlets such as Kmart, Big W and Target stock a wide range of
consumer products. The consumer products stocked by these retailers can be best
categorised as:
a. shopping, convenience, specialty and unsought products.
b. shopping, convenience and specialty products.
c. shopping, convenience and unsought products.
d. shopping, convenience, core and augmented products.
e. shopping, convenience, specialty and core products.

A group of customers with similar needs and wants is known as:

a. a demographic.
b. people.
c. a population.
d. a target market.

Which of the following best describes the concept of product differentiation?

a. None of the options listed.
b. How a product evolves as it moves from one phase of the product life cycle to the next.
c. The creation of services that are distinguished from competitor's services.
d. The creation of products and product attributes that distinguish one product
from another.
e. The creation of physical goods that are distinguished from competitor's physical
goods.

David has decided to buy a new pair of work shoes, so he spends his afternoon shopping
for a new pair. When classifying products, the category of 'shopping products', which
includes shoes, also includes:
a. impulse products.
b. none of the options listed.
c. emergency products.
d. staple products.

Marketers exercise control over a set of variables which includes price, promotion, and
the product. Together, these controllable variables are known as:
a. physical evidence
b. the marketing mix
c. the target market
d. a bundle of attributes

Excess demand will exist whenever:

a. the actual price is below the equilibrium price.
b. the price is such that the quantity demanded equals the quantity supplied.
c. the price is such that the quantity supplied exceeds the quantity demanded.
d. the actual price is above the equilibrium price.
e. scarcity has been eliminated.

Along an individual firm's supply curve, a reduction in quantity supplied occurs when:
a. a technological advancement has occurred.
b. the firm is induced to offer more for sale at a lower price.
c. price has declined.
d. the firm's profit has risen.
e. price has increased.

All of the following, except one, would be an appropriate focus of study for
microeconomics. Which is not?
a. the interaction of supply and demand in the corn market.
b. the number of people employed in the advertising business.
c. the level of production by a firm in the compact disc industry.
d. the determination of the rate of inflation.
e. the determination of prices in the computer industry.

A technological improvement will normally cause:

a. the supply curve to shift to the left.
b. a movement along the supply curve such that quantity supplied increases.
c. the supply curve to shift to the right.
d. an individual to increase consumption of any goods she purchases.
e. a movement along the supply curve such that quantity supplied declines.

The plans of buyers and sellers are mutually compatible when:

a. consumers and sellers agree that the price is fair.
b. sellers are able to sell the quantity of the good that they offer for sale, but consumers
cannot purchase all they want to.
c. consumers are able to purchase the quantity of the good that they want to purchase,
but firms cannot sell all they offer for sale.
d. the equilibrium price is established.
e. there is excess supply.

Microeconomics is that branch of economics that focuses primarily on:

a. economic aggregates such as unemployment and inflation.
b. the behaviour of individual units.
c. centrally planned economies.
d. aggregate economic activity.
e. market economies.

Economic theory would not be useful in studying:

a. the impact on the domestic car industry of a quota on imported cars.
b. the effect of increased cigarette taxes on cigarette consumption.
c. why some people find it easier to give up smoking than others.
d. the effects on one's job prospects of returning to school to study for a degree.
e. the impact on the domestic economy of reducing income taxes.

If the price of a product increases, but the quantity demanded does not decline at all, the
demand for this product in this price range:
a. is perfectly price elastic.
b. has a price elasticity of unity.
c. is price elastic.
d. is perfectly price inelastic.
e. is price inelastic.

The market supply curve is:

a. derived by vertically summing the individual firms' supply curves at each quantity.
b. derived by horizontally summing the individual firms supply curves at each
price.
c. derived by vertically summing the individual firms' supply curves at each price.
d. independent of the individual firms' supply curves.
e. derived by horizontally summing the individual firms' supply curves at each quantity.
Total revenue will decline if the price _______ when the demand curve ___
a. falls; is price elastic.
b. falls; has unit price elasticity.
c. rises; has unit price elasticity.
d. rises; is price inelastic.
e. rises; is price elastic.