Lecture wise MCQs

Set -3

9198871555
99. A common mistake in pricing
is:

A. Setting prices according to

demand
B. Revising prices too often
C. Considering price and price
competition as a key problem in
marketing
D. Ignoring costs when setting
prices
E. Setting prices independently
of the rest of the marketing mix
100. The first thing any business
should do when setting pricing
policy is to:

A. Determine demand
B. Estimate costs
C. Determine their target market
D. Select a pricing method
E. Select a pricing objective
101. A _____ pricing objective is
suitable for a company that has
overcapacity, intense
competition, and changing
customer needs.

A. Maximum current profit

B. Survival
C. Maximum current revenue
D. Maximum sales growth
E. Partial cost recovery
102. The introduction of a new product
to the market using market-penetration
pricing is most likely to be successful
when:

A. The unit costs of producing a small

volume of the product are high
B. There is be no existing demand for
the product
C. The market is highly price sensitive
D. The high price communicates nothing
to the potential buyers
E. Competitors are not attracted to the
market because there is no profit
motivation
103. A market segment has a
large number of buyers. High
initial price does not attract
competitors to the market, but it
communicates superior product
image. In this segment a _____ is
the best strategy.

A. Market-skimming pricing
B. Product quality leadership
C. Maximum current revenue
D. Market-penetration pricing
E. Maximum sales growth
104. Buyers are more price sensitive
when:

A. The product is significantly more

distinctive than others on the market
B. The expenditure is a small part of
the total cost of the end product
C. They are aware of substitutes for
the product
D. They cannot easily compare the
quality of substitutes for the product
E. The product is perceived to have
more quality than others on the
market
105. Demand is likely to be price
elastic if:

A. There are many alternatives and

direct substitutes for the product
B. Buyers do not readily notice price
changes
C. Buyers are slow to change their
purchasing habits
D. Buyers think a higher price is
justified by quality differences
E. The buyers can use normal
inflation to explain the price
increase
106. Which of the following is an
example of a variable cost?

A. The CEO's salary

B. The annual business licensing
fee paid to the concerned
authority
C. The rent on warehouse
buildings
D. The Rs.20,00,000 monthly
payment to buy a generator set
E. The employees' overtime pay
107. With ___, the price of a new
product is determined early in
the development process.

A. Market-share pricing
B. Learning-curve pricing
C. Benchmarking
D. Target costing
E. Going-rate pricing
108. Markup pricing is popular
because:

A. Sellers can determine demand

more easily than they can determine
costs
B. It motivates manufacturing to find
ways to cut costs
C. It works especially well with
product positioning strategies
D. It considers the effects of current
demand, perceived value, and
competition on price
E. Many people feel cost-plus pricing
is fairer to both buyers and sellers
109. The price setting method
most closely corresponding to
the concept of product
positioning is ___ pricing.

A. Markup
B. Psychological
C. Going-rate
D. Target-return
E. Perceived-value
110. Everyday low pricing used
by some retailers is an example
of a ___ pricing strategy.

A. Value
B. Target-return
C. Going-rate
D. Perceived-value
E. Markup
111. When customers buy on the
basis of a reference price or
because the price conveys a
particular quality image to them,
they are being influenced by:

A. Value pricing
B. The psychology of pricing
C. The going-rates of competitors
D. Value augmented by
perception
E. An aggregated marketing plan
for pricing
112. If a hardware store gives
professional contractors a 3
percent discount if they pay their
bills within one week instead of
the standard 30 days, the
hardware store is providing them
with a:

A. Functional discount
B. Quantity discount
C. Promotional price
D. Cash discount
E. Trade allowance
113. Which of the following is
the BEST example of an agent?

A. a manufacturer's
representative
B. a university bookstore
C. a management consultant
D. a veterinarian
E. a communications company
114. Which of the following statements
about marketing channels is true?

A. Marketing-channel decisions are

among the most critical decisions facing
management.
B. Market channels are sets of
interdependent organizations.
C. The marketing channels selected by a
manager intimately affect all the other
marketing decisions.
D. A marketing channel is also called a
trade channel or a distribution channel.
E. All of the above statements about
marketing channels are true.
115. Which of the following
functions do members of the
marketing channel typically perform
as they move merchandise from one
level to the next?

A. The creation of form utility

B. Activities-based cost accounting
C. Risk taking
D. Lengthening the channel so as to
provide more specialized service
E. Eliminating unnecessary channel
functions
116. Once channel objectives have
been established, the next step in
channel design is to:

A. Determine service output levels

B. Select the channel members
C. Set up contingency plans in the
event of environmental changes
D. Identify the major channel
alternatives
E. Evaluate the major channel
alternatives
117. By granting ___ distribution,
the producer hopes to obtain
more dedicated and
knowledgeable selling for its
products by creating a
partnership between seller and
reseller.

A. Selective
B. Intensive
C. Inclusive
D. Exclusive
E. Restrictive
Channel power is the ability to alter channel members’ behaviour so they take actions they would
not have taken otherwise.
Manufacturers can draw on the following types of power to elicit cooperation:
• Coercive power. A manufacturer threatens to withdraw a resource or terminate a relationship if
intermediaries fail to cooperate. This power can be effective, but its exercise can lead the intermediaries to
organize countervailing power.
• Reward power. The manufacturer offers intermediaries an extra benefit for performing specific acts or
functions. Reward power typically produces better results than coercive power, but intermediaries may
come to expect a reward every time the manufacturer wants a certain behaviour to occur.
• Legitimate power. The manufacturer requests a behaviour that is
warranted under the contract. As long as the intermediaries view the
manufacturer as a legitimate leader, legitimate power works.
• Expert power. The manufacturer has special knowledge the
intermediaries value. Once the intermediaries acquire this expertise,
however, expert power weakens. The manufacturer must continue
to develop new expertise so intermediaries will want to continue
cooperating.
• Referent power. The manufacturer is so highly respected that
intermediaries are proud to be associated with it.
118. Which type of channel
power would be most effective in
the long run?

A. Coercive
B. Reward
C. Referent
D. Expert
E. Legitimate
119. A vertical marketing system is
comprised of:

A. An independent producer,
independent wholesaler(s), and
independent retailer(s)
B. Two or more producers joining
resources or programs to exploit
opportunities
C. Channel members all acting as equal
members of a unit
D. The producer, wholesaler(s), and
retailer(s) acting as a unit
E. A single producer using two or more
marketing channels to reach different
market segments
120. In a(n) ____, two or more
unrelated companies put
together resources or programs
to exploit an emerging marketing
opportunity.

A. Administered VMS
B. Horizontal marketing system
C. Contractual VMS
D. Multichannel marketing
system
E. Corporate VMS
121. When a producer has a
conflict with its wholesalers, the
producer is experiencing ___
conflict.

A. Horizontal channel
B. Multi-channel
C. Direct channel
D. Vertical channel
E. Zero-level channel
122. In managing channel
conflict, ___ occurs when the
parties agree to present their
conflict to a third party whose
decision is binding.

A. Diplomacy
B. Co-optation
C. Goal subordination
D. Arbitration
E. Mediation
123. Wholesalers:

A. do not use selling and promoting

activities
B. do not assume any risks for other
members of the channel
C. cannot provide market
information to other members of the
channel
D. often provide quicker delivery
service than other members of the
channel
E. are not capable of providing any
management counselling or training
services to members of its channel
124. Which of the following
statements about manufacturers'
branches and offices is true?

A. Sales branches do not carry

inventory.
B. Sales offices carry inventory.
C. Sales branches perform a role
similar to one performed by agents
and brokers.
D. Sales offices are prominent in the
dry-goods and notions industries.
E. Sales offices are not part of the
manufacturer's organisation, while
sales branches are.
125. Supply chain management
(SCM):

A. Cannot be used in vendor analyses

B. Takes a very narrow perspective of
getting products from suppliers to
customers
C. Begins before any physical
distribution activities
D. can be graphically described as a
wavelike response to customers'
demands
E. involves procuring raw material and
component parts, but not capital
items
126. Marketing logistics:

A. Is the process of getting goods to

customers
B. Includes all the activities involved in
the selling of goods and services
directly to final customers
C. Is also called materials management
D. Involves planning, implementing,
and controlling the physical flows of
materials and final goods from points of
origin to points of use
E. Is getting the right goods to the right
people, at the right place and at the
right time
127. Marketing logistics planning
begins with:

A. The company's value

proposition to customers
B. Sales forecasting
C. Inventory management
D. Market segmentation
E. Customer orders
128. Four major decisions must be
made with regard to market logistics.
They deal with:

A. Product, promoting, pricing, and

distribution
B. Production, storage, pricing, and
supply/demand
C. Materials handling, transportation
decisions, sales forecasting, and
customers' perceptions of value
D. Warehousing, inventory,
transportation, and order processing
E. Production, assembly, storage, and
transportation
129. Any paid form of non-
personal promotion of ideas,
goods, or services where the
originator of the promotion is
known is called:

A. Advertising
B. Direct and interactive
marketing
C. Sales promotion
D. Personal selling
E. Public relations and publicity
130. Use of mail, telephone, and
other non-personal contact tools
used to communicate with or
solicit a response from specific
customers and prospects is
called:

A. Advertising
B. Direct and interactive
marketing
C. Sales promotion
D. Public relations
E. Personal selling
131. Press kits, sponsorships,
annual reports, seminars, and
lobbying are all common ___ for
public relations.

A. Communication platforms
B. Media vehicles
C. Media categories
D. Feedback decoders
E. Communication mix elements
132. The starting point for the
communications process is:

A. The selection of the

communication objectives to be
pursued
B. The preparation of the budget for
the communications effort
C. An audit of all potential
interactions target customers may
have with the product and company
D. A selection of the communication
channels to be used
E. An internal environmental audit of
communication plans
133. Which of the following statements
about the communication process is
true?

A. Message, media, and feedback are

the major communication functions.
B. Encoding, decoding, response, and
feedback are the major communication
functions.
C. Noise, message, and media are the
major parties in the communication
process.
D. Message, media, and noise are the
major communication functions.
E. Encoding and decoding are the major
communication tools.
134. The first step in the
development of effective
communication is:

A. Identifying the target

audience
B. Determining the
communication objectives
C. Designing the message
D. Setting the budget
E. Selecting the communication
channels
135. If a company's communication
objective were to improve how
consumers felt about the company and its
products, it might:

A. Run numerous commercials stressing

its name and logo
B. Run print ads that gave little vignettes
explaining the history of the company
C. Emphasize its community service and
worker friendly environment in its public
relations and advertising efforts
D. Promote its product's quality, value,
and performance in its advertisements
E. Mail out product catalogs to all of its
current and former customers
136. If a company's communication
objective were to increase consumer
preference for its products, it might:

A. Run numerous commercials stressing

its name and logo
B. Run print ads that gave little
vignettes explaining the history of the
company
C. Create point-of-purchase displays for
its retailers
D. Emphasize its community service and
worker friendly environment in its
public relations and advertising efforts
E. Promote its product's quality, value,
and performance in its advertisements
137. The three types of personal
communications channels are:

A. Legitimate, referent, and

expert channels
B. Social, legitimate, and
reinforcing channels
C. Advocate, expert, and social
channels
D. Referential, public, and private
channels
E. Electronic, private, and social
channels
138. The three distinct benefits
of _____ are its ability to
communicate, its ability to act as
an incentive, and its invitation to
consumers to buy now.

A. Direct mail
B. Sales promotion
C. Advertising
D. Public relations
E. Personal selling
139. Promotional tools vary in cost
effectiveness at different stages of
buyer readiness. What
promotional tools are most
important when the buyer is in the
awareness stage?

A. Advertising and personal selling

B. Personal selling and sales
promotion
C. Publicity and personal selling
D. Advertising and publicity
E. Sales promotion and advertising
140. Which promotional tool is
most cost effective when a
product is in the decline stage of
its product life cycle?

A. Direct mail
B. Sales promotion
C. Advertising
D. Public relations
E. Personal selling
141. Integrated marketing
communications (IMC):

A. Produces stronger message

consistency than traditional marketing
communications
B. Forces management to think about
the various ways which the customer
comes in contact with the company
C. Requires management to consider
how a company communicates its
positioning strategy
D. Can be used to unify a brand's image
and message
E. Is accurately described by all of the
above
142. ____ is used when funding
is limited, the purchase cycle is
relatively infrequent, and with
seasonal items.

A. Flighting
B. Continuity
C. Pulsing
D. Concentration
E. Bursting
143. A firm that wants to attract
new triers, reward loyal
customers, or increase the
repurchase rate of occasional
users would be best served by:

A. Personal selling
B. Direct marketing
C. Advertising
D. Sales promotion
E. An unbiased public relations
article