1.

In personal selling process, step which consists of identifying potential customers is

classified as --------------------
A. presenting quota
B. demonstrating quota
C. prospecting
D. qualifying
ANS C.

2. According to promotional mix, method which focuses on building relationships with

individual customers to maintain lasting relationship is called
A. sales promotion
B. offline promotion
C. direct channelling
D. direct marketing
ANS D

3. A descriptive thought about something held by a person is classified as

A. learning
B. attitudes
C. beliefs
D. perception
ANS Cr

4. Products that are sold through wide spread distribution network are classified as
A. convenience products
B. shopping products
C. unsought products
D. sought consumer products
ANS A.

5. 'Banking services' and 'hotel services' are examples of

A. products
B. commodities
C. barter system
D. offered services
ANS D.

6. Product packaging is said to be part of

A. actual product
B. positioning strategy
C. competitive strategy
D. value proposition
ANS A.

7. Products that are bought to be used in conduct of business is called

A. consumer products
B. industrial products
C. augmented products
D. core customer value
ANS B.

8. If men and women responds differently to marketing efforts for fast food then the
segment should be considered as
A. differentiable segment
B. non-differentiable segments
C. intermarket segmentation
D. intramarket segmentation
ANS A

9. Procedure of displacement of long-established resellers by new intermediaries is

classified as
A. horizontal mediation
B. multiple mediation
C. disintermediation
D. vertical mediation
ANS C.

10. If fixed cost is N200000, unit sales are 30000 and variable cost is N8 then unit cost is
A. N14.67
B. N18.67
C. N20.67
D. N25.67
ANS A.

11. Fagbohun store and Noah Family store targets customers with middle and low income
groups is an example of
A. geographic segmentation
B. income segmentation
C. psychographic segmentation
D. behavioral segmentation
ANS B.

12. Way in which two or more transportation modes are used together is classified as
A. intra-model logistic network
B. intermodal logistic network
C. intermodal transportation
D. intra-model transportation
ANS C

13. When every party has something that might be of worth to other party, it results into
A. marketing activity
B. exchange process
C. market place
D. money exchange
ANS B.

14. Sales advertising targeted at retailers and wholesalers are known

A. trade sales promotions
B. consumer sales promotions
C. sales
D. marketing mix
ANS A
Answer
15. Short period incentive presented to persuade a retailer to stock up on manufactured
goods are
A. trade contest
B. dealer loader
C. trade allowances
D. push money
ANS C.

16. Raising consumer awareness of a commodities or product, produces sales, and makes
brand reliability is
A. promotion
B. location
C. product
D. decision
ANS A

17. Market offering that is essentially intangible is called

A. services
B. products
C. commodity
D. competitive edge
ANS A

18.Pricing strategy which starts with ideal price and targets cost which ensures that set
price will be met is classified as
A. target costing
B. marginal costing
C. learning curve costing
D. demand based costing
ANS B.

18. Situation in which company is making more sales with its existing product is
classified as
A. Market development
B. Market penetration
C. Product development
D. Diversification
ANS A.

19. Kind of channel arrangement in which retailers, wholesalers and producers act as a
single system is classified as
A. conventional distribution channel
B. horizontal marketing system
C. vertical marketing system
D. static distribution channel
ANS A.

20. Marketing system in which two or more companies join together at one level to seek
new marketing opportunity is classified as
A. horizontal marketing system
B. vertical marketing system
C. static marketing system
D. flexible marketing system
ANS A
Answer
21. New-product development process consists of detailed steps and number of steps are
A. Five steps
B. Six steps
C. Seven steps
D. Eight steps
ANS C.

22. Marketing channels are considered as part of

A. wholesaler-customer delivery network
B. customer-value delivery network
C. retailer-wholesaler delivery network
D. customer-retailer delivery network
ANS B.

23. Set of organizations interdependent on each other that help in making market
offerings available to customer are called
A. interactive channels
B. marketing channels
C. pricing channels
D. basing point channels
ANS B.

24. If product ideas source is company's own research and development department, it is
said to be
A. internal idea sources
 B. external idea sources
C. systematic idea sources
D. resourcing
ANS A.

25. Methods used to determine total budget for advertising its market offerings are
A. affordable method
B. competitive parity method
C. percentage of sales method
D. all of above
ANS D.

26. 'differentiated marketing' is also called

A. mass marketing
B. segmented marketing
C. concentrated marketing
D. micromarketing
ANS B.

27. Way of personal communication between friends, family, neighbors and target buyers
about particular market offering is called
A. print and broadcast media
B. word-of-mouth influence
C. buzz marketing
D. display and online media
ANS B

First step in process of developing new-product must be

A. idea generation
B. idea screening
C. concept development and testing
D. business analysis
ANS A

29. The decision making process by which formal organizations establish the need for
purchased products and services and identify, evaluate, and choose among
alternative brands and suppliers is termed____________
A. organizational buying
B. industrial buying
C. consumer buying
D. A and B
ANS: D

30. The company’s sales expressed as a percentage of total market sales is the:
A. market potential
 B. overall market share
C. demand
D. overall market demand
ANS B

31. Channels through which two or more people communicate directly with each other
including face to face, person to audience, over the telephone, or through the mail is
_________
A. non personal communication channels
B. personal communication channels
C. promotional methods
D. public relations
ANS B

32. Personal presentation by the firm’s sales force for the purpose of making sales and
building customer relationships is ___________
A. sales management
B. advertising
C. personal selling
D. sales promotion
ANS C

33. Laws, government agencies, and pressure groups that influence and limit various
organizations and individuals in a given society is the __________ environment.
A. cultural
B. Social
C. Political
D. demographic
ANS C

34. A statement that summarizes company or brand positioning.

A. targeting
B. positioning
C. market
D. demography
ANS B

35. The adage “what a man can be, he must be” express which of these needs?
A. esteem need
B. self-actualization
C. social need
D. safety need
ANS B

36. A descriptive thought that a person holds about a product is a __________

A. opinion
B. Belief
C. value
 D. attitude
ANS B

37. Changes in an individual’s behaviour arising from experiences is termed __________

A. knowledge
B. learning
C. perception
D. attitude
ANS B

38. __________ refers to a strong internal stimulus that impels action.

A. need
B. cue
C. drive
D. experience
ANS C

39. The way a consumer selects, organizes and interprets marketing information to create
a meaningful picture is called __________
A. perception
B. learning
C. value
D. knowledge
ANS A

40. __________refers to the set of all actual and potential buyers of a product.
A. consumer
B. market
C. potential market
D. business
ANS B

41. Which of the following concept holds that consumers will favour
products that offer the most quality, performance & features?
A. selling concept
B. Product concept
C. production concept
D. marketing
ANS B

42. The concept which holds that consumers will favour products that are
widely available and low in cost is called __________
A. marketing concept
B. selling concept
C. production concept
D. product concept
ANS C

43. The concept which holds that the organization must first determine the needs
 and wants of target markets before delivering the desire products more
effectively and efficiently than competitors is termed ___________
A. marketing concept
B. product concept

C. strategic marketing concept

D. selling concept.

ANS C

44. The process of trying to arrive at mutually agreeable terms in marketing is known
as ____________
A. counteroffer
B. negotiation
C. transaction
D. bargaining
ANS B

45. The adopter group which is cautious about new ideas and are more set in their
ways are the ______
A. innovator
B. early adopter
C. late majority
D. early majority
ANS C

46. The promises which a producer makes about his product refer to _____________
A. advert
B. Warranty
C. Promotion
D. none of the above o
ANS B

47. Setting a high price on a product to suggest high status by a firm defines _____________
A. price lining
B. prestige pricing
C. competitive pricing
D. price bidding
ANS B

48. _________ products are those potential customers don’t yet want or know they can
buy.
A. staple goods
B. unsought goods
 C. convenience
D. none of the above
ANS B

49. The basis of international trade is ___________

A. absolute advantage
B. comparative advantage
C. self sufficiency
D. excess product over consumption within the country
ANS B

50. One of the barriers to international marketing is __________

A. social and cultural factors
B. legal factor
C. all of the above
D. none of the above
ANS B

51. In communication, noise is defined as __________

A. the set of symbols that the sender transmits
B. the set of reaction that the receiver has after being exposed to a message
C. unintended distortions in the communication process
D. the part of the receiver’s response that the received communicates back to
- the sender
ANS C

52. Which of the following is not a factor affecting marketing distribution choice?
A. environment
B. products
C. manufacturer’s resources
D. none of the above
ANS D

53. Which of the following is not a major transportation mode?

A. air
B. land
C. pipeline
D. none of the above
ANS D

54. Which of the following is not a pricing method?

A. value based pricing
B. cost oriented pricing
C. competitive bidding
D. none of the above
ANS D

55. “Mark on” is:

A. the amount added to cost to determine the selling price
B. the number of times that the average stock is sold
C. the mark-up based on cost
 D. none of the above
ANS A

56. The combination of advertising, personal selling, sales promotion and public relation
is known as __________
A. marketing mix
B. promotion mix
C. market mix
D. none of the above
ANS B

57. What form of advertising should be adopted for a newly introduced product?
A. persuasive advertising
B. reminder advertising
C. informative advertising
D. none of the above
ANS C

58. The stages that a product undergoes from its introduction into the market to
- extinction is referred to as _____
A. product competition
B. product differentiation
C. product dynamism
D. product life-cycle
ANS D

59. In the product life-cycle _______ stages refer to growth in both sales and profit.
A. saturation
B. decline
C. maturity
D. growth
ANS D

60. Sources of idea generation in the new product development process are all except ----
A. consumers
B. government
C. competitors
D. none of the above
ANS D

61. In the adoption categories refers to low income group of the social system.
A. later majority
B. laggard
C. early adopter
D. none of the above
ANS B

62. All are major assumptions of the marketing concept except __________
A. consumer satisfaction in relation to production, engineering and finance
B. profitable sales volume
C. internal company orientation
 D. integrated and coordinated organizational activities
ANS C

63. All these are stages of marketing evolution except ___________

A. production era
B. consumerism and the social responsibility era
C. sales era
D. none of the above
ANS D

64. In _________ stage of marketing evolution, emphasis is on customer orientation and

profitable sales volume.
A. marketing
B. sales
C. production
D. consumption
ANS A

65. __________ is a set of related propositions that presents a systematic view of

phenomena by specifying relationships among concepts.
A. idea
B. theory
C. policies
D. programmes
ANS B

66. The first stage of the business buying process in which someone in the company
recognizes a problem or need that can be met by acquiring a good or a service is
_________
A. problem evaluation
B. order solicitation
C. problem recognition
D. marketing
ANS B

67. _______ is the course of a product’s sales and profits over its lifetime. It involves five
distinct stages: product development, introduction, growth, maturity and decline.
A. sales lifecycle
B. company lifecycle
C. product lifecycle
D. marketing
ANS C

68. A group of products that are closely related because they function in a similar
manner are sold to the same consumer groups are marketed through the same types
of outlets, or fall within given price ranges is called ____________
 A. product development
B. production line
C. product line
D. none of the above
ANS C

69. Which of the following information forms available to the marketing manager can
usually be accessed more quickly and cheaply than other information sources?
A. Marketing intelligence
B. Marketing research
C. Customer profiles
D. Internal databases
ANS D

70 . All of the following are considered to be drawbacks of local marketing EXCEPT:

A. it can drive up manufacturing and marketing costs by reducing economies of scale.
B. it can create logistical problems when the company tries to meet varied requirements.
C. it can attract unwanted
D. overall image.
ANS C

71 . Cognitive dissonance occurs in which stage of the buyer decision process model?
A. Need recognition competition.
B. Information search
C. Evaluation of alternatives
D. Post purchase behaviour
ANS D

72 . That the company that overlooks new and better ways to do things will eventually lose
customers to another company that has found a better way of serving customer needs
is a major tenet of:
A. innovative marketing.
B. consumer-oriented marketing.
C. value marketing.
D. sense-of-mission marketing.
ANS A

73 . The biggest or greatest amount of involvement in a foreign market comes through

which of the following?
A. Exporting
B. Joint venturing
C. Licensing
D. Direct investment
ANS D

74 . A ______ is a good offered either free or at low cost as an incentive to buy a

product.
A. patronage reward
B. spiff
C. price pack
D. premium
ANS D

75. Setting call objectives is done during which of the following stages of the selling
process?
A. Prospecting
B. Pre approach
C. Approach
D. Handling objections
ANS B

76 . Pricing to cover variable costs and some fixed costs, as in the case of some automobile
distributorships that sell below total costs, is typical of which of the following pricing
objectives?
A. Current profit maximization
B. Product quality leadership
C. Market share leadership
D. Survival
ANS D

77. In determining sales force size, when a company groups accounts into different size
classes and then determines the number of salespeople needed to call on them the
desired number of times, it is called the:
A. key-size approach.
B. work-load approach.
C. product-need approach.
D. call-service approach.
ANS B

78. ________is products bought by individuals and organizations for further

processing or for use in conducting a business.
A. Consumer products
B. Services
C. Industrial products
D. Specialty products
ANS C

79. All of the following would be ways to segment within the category of psychographic
segmentation EXCEPT:
A. social class.
B. occupation.
C. lifestyle.
D. personality.
ANS B

80. The __________________ is a person within a reference group who, because of special
skills, knowledge, personality, or other characteristics, exerts influence on others.
A. facilitator
B. referent actor
C. opinion leader
D ANS C

81. _______________ describes changes in an individual's behaviour arising from experience.

A. Modelling
B. Motivation
C. Perception
D. Learning
ANS D
82 . Concerns that the manufacturers of harmful products such as tobacco have influence
on lawmakers to the detriment of the public interest is used as evidence of which
criticism of marketing?
A. Too much advertising.
B. Too few social goods.
C. Cultural pollution.
D. Too much political power.
ANS D

83. The Internet evolved from a network created by _________________ during the 1960s.
A. the Commerce Department
B. the Massachusetts Institute of Technology (MIT)
C. North-western University
D. the Defence Department
ANS D

84. In terms of execution styles, a family seated at the dinner table enjoying the advertised
product would be an example of which of the following types of advertising?
A. Slice of life
B. Lifestyle
C. Mood or imagery
D. Personality symbol
ANS A

85. A child in the United States is normally exposed to all of the following values EXCEPT:
A. achievement and success.
B. activity and involvement.
C. material comfort.
D. collectivism.
ANS D

86. ________________ has contractual authority to sell a manufacturer's entire output.

A. Selling agents
B. Rack jobbers
C. Manufacturer's agents
D. Purchasing agents
ANS A

87. Sellers that handle their own exports are engaged in:
A. direct exporting.
B. indirect exporting.
C. licensing.
D. contract manufacturing.
ANS A

88. More and more salespeople are being evaluated and compensated based on different
measures than in the past. All of the following are illustrations of those measures
EXCEPT:
A. long-term customer satisfaction.
B. competitive predatory pricing performance.
C. full customer service.
D. retention rates.
ANS B
89 . ________________ includes practices such as overstating the product's features or
performance, luring the customer to the store for a bargain that is out of stock, or
running rigged contests.
A. Deceptive promotion
B. Deceptive packaging
C. Deceptive pricing
D. Deceptive cost structure
ANS A

90. The orange juice manufacturers know that orange juice is most often consumed in the
mornings. However, they would like to change this and make the drink acceptable
during other time periods during the day. Which form of segmentation would they need
to work with and establish strategy reflective of their desires?
A. gender segmentation
B. benefit segmentation
C. occasion segmentation
D. age and life-cycle segmentation
ANS C

91. The typical method of retail operation used by supermarkets and catalogue showrooms is
called:
A. self-service retailing.
B. limited-service retailing.
C. full-service retailing.
D. service-merchandiser.
ANS A

92. A(n) _____________ are computerized collections of information obtained from data
sources within the company.
A. retrieval systems
B. marketing research reports
C. flow diagrams and PERT charts
D. internal databases
ANS D

93. The total number of items that the company carries within its product lines refers to
the ___________ of the product mix.
A. width
B. depth
C. length
D. consistency
ANS C

94. The use of price points for reference to different levels of quality for a company's
related products is typical of which product-mix pricing strategy?
A. Optional-product pricing
B. Captive-product pricing
C. By-product pricing
D. Product line pricing
ANS D

95. If a company's objective were to reach masses of buyers that were geographically
dispersed at a low cost per exposure, the company would likely choose which of the
following promotion forms?
A. Advertising
B. Personal selling
C. Public relations
D. Sales promotion
ANS A

96. Using a successful brand name to introduce additional items in a given product
category under the same brand name (such as new flavors, forms, colors, added
ingredients, or package sizes) is called a(n):
A. line extension.
B. brand extension.
C. multi branding.
D. new brands.
ANS A

97. Successful service companies focus their attention on both their customers and their
employees. They understand ___________________, which links service firm profits with
employee and customer satisfaction.
A. internal marketing
B. service-profit chains
C. interactive marketing
D. service differentiation
ANS B

98. __________________ is quoted as saying that "everyone lives by selling something."

A. Bill Gates
B. Robert Louis Stevenson
C. Arthur Miller
D. Henry Ford
ANS B

99. Anything that can be offered to a market for attention, acquisition, use, or consumption
that might satisfy a want or need is called a(n):
A. idea.
B. demand.
C. product.
D. service.
ANS C

100. The type of sales presentation approach that requires good listening and problem solving
skills is the:
A. canned approach.
B. formula approach.
C. need-satisfaction approach.
D. critical-thinking approach.
ANS C

101. Yahoo, Info seek, and Excite are all called:

A. browsers.
B. Webcasters.
C. search engines.
D. software.
ANS C

102. Successful ________________ depends on how well a company blends its people,
organizational structure, decision and reward systems, and company culture into a
cohesive program that supports its strategies.
A. marketing strategy
B. marketing control
C. marketing analysis
D. marketing implementation
ANS D

103. Wal-Mart owned Sam's club is an example of a retail form called a(n):
A. factory outlet.
B. super specialty store.
C. seconds store.
D. warehouse club.
ANS D

104. ____________ is the general term for a buying and selling process that is supported by
electronic means.
A. Internet commerce
B. Web commerce
C. Computer commerce
D. Electronic commerce
ANS D
105. When a company enters a new product category for which its current brand names are
not appropriate, it will likely follow which of the following brand strategies?
A. Product extensions
B. Line extensions
C. Brand extensions
D. New brands
ANS D

106. _____________ consists of dividing a market into distinct groups of buyers on the basis
of needs, characteristics, or behaviour who might require separate products or
marketing mixes.
A. Product differentiation
B. Market segmentation
C. Market targeting
D. Market positioning
ANS B

107. _______________ are ads that appear while subscribers are surfing online services or
Web sites, including banners, pop-up windows, "tickers," and "roadblocks."
A. Online infomercials
B. Online ads
C. Online broadcasts
D. Online bullets
ANS B

108. In terms of special product life cycles, a ___________ is a basic and distinctive mode of
expression.
A. genre
B. style
C. fashion
D. fad
ANS B

109. ______________ is a principle of enlightened marketing that requires that a company

seek real product and marketing improvements.
A. Innovative marketing
B. Consumer-oriented marketing
C. Value marketing
D. Sense-of-mission marketing
ANS :A

110. Many U.S. firms have sought relief from foreign competition by demanding
protectionism policies by the U.S. government. A better way for companies to compete
is to expand into foreign markets and:
A. lower prices.
B. increase promotion both at home and abroad.
C. continuously improve their products at home.
D. join into cartels at home.
ANS C

111. __________________ is the process of evaluating each market segment's attractiveness

and selecting one or more segments to enter.
A. Mass marketing
B. Market segmentation
C. Market targeting
D. Market Positioning
ANS C

112 . It is a fact that there are 24 million left-handed people in the United States, however,
most marketers do not attempt to appeal to or design products for this group because
there is little in the way of census data about this group. Therefore, this group fails in
one of the requirements for effective segmentation. Which of the following is most
likely to apply in this case?
A. actionable
B. substantial
C. differentiable
D. measurable
ANS D

113. The fact that services are sold, produced, and consumed at the same time refers to
which of the following service characteristics?
A. Intangibility
B. Inseparability
C. Variability
D. Perishability
ANS B

114. _____________ factors are the most popular bases for segmenting customer groups.
A. Geographic
B. Demographic
C. Psychographic
D. Behavioural
ANS B

115. A manufacturer has four sponsorship options. A ____________ is a brand created

and owned by a reseller of a product or service.
A. licensed brand
B. manufacturer's brand
C. private brand
D. co-brand
ANS C

116. When Michael Jordan and Tiger Woods use marketing to promote their careers and
improve their impact and incomes, they are using:
A. cause-related marketing.
B. idea marketing.
C. non-profit marketing.
D. person marketing.
ANS D

117. 3M runs a Pollution Prevention Pays program that has led to a substantial reduction in
pollution and costs. This would be an example of responding to which of the following?
A. Nader's raiders.
B. The "green movement."
C. Governmental regulation.
D. International competition.
ANS B
118. When an international seller sells a plant, equipment, or technology to another country
and agrees to take payment in the resulting products, it is called:
A. barter.
B. buy-back.
C. counter purchase.
D. like-value exchange.
ANS B
119. The stage is the product life cycle that focuses on expanding market and creating
product awareness and trial is the:
A. decline stage.
B. introduction stage.
C. growth stage.
D. maturity stage.
ANS B
120. Which of the following promotional budget methods wrongly views sales as the cause
of promotion rather than as the result?
A. Affordable method
B. Percentage-of-Sales method
C. Competitive-parity method
D. Objective-and-task method
ANS B
121. If the field sales force has been supplied with new leads (via the telephone) that have
been qualified, they have probably been assisted by:
A. master salespersons.
B. sales assistants.
C. technical support persons.
D. telemarketers.
ANS D
122. _______________ is setting the price steps between various products in a product line
based on cost differences between the products, customer evaluations of different
features, and competitors' prices.
A. Optional-product pricing
B. Captive-product pricing
C. Product line pricing
D. By-product pricing
ANS C
123. Rolls Royce uses which of the following distribution formats?
A. Intensive distribution
B. Exclusive distribution
C. Selective distribution
D. Open distribution
ANS B
124. Drop shippers perform which of the following functions?
A. Assumes title and ships coal, lumber, or heavy equipment to a buyer.
B. Stocks the bread rack in a grocery store.
C. Maintains, owns, and stocks a CD display in a grocery store.
D. Sells jewellery out of a catalogue.
ANS A

125. A set of interdependent organizations involved in the process of making a product or

service available for use or consumption by the consumer or business user is called
a(n):
A. retailer.
B. wholesaler.
C. distribution channel.
D. logistics.
ANS C

126. ______________ beliefs and values are open to some degree of change.
A. Crucial
B. Core
C. Primary
D. Secondary
ANS D

127. According to Engel's law, as income rises:

A. the percentage spent on food rises.
B. the percentage spent on housing increases.
C. the percentage spent on other categories increases.
D. the percentage spent on savings remains constant.
ANS C

128. The Wheeler-Lea Act gives the Federal Trade Commission the power to regulate:
A. interstate commerce.
B. marketing ethics.
C. unfair and deceptive acts or practices.
D. competitive advertising of objective product benefits.
ANS C

129. In evaluating messages for advertising, telling how the product is better than the
competing brands aims at making the ad:
A. meaningful.
B. distinctive.
C. believable.
D. remembered.
ANS B

130. When an importing country sets limits on the amount of goods it will accept in certain
product categories it is called a(n):
A. quota.
B. barrier.
C. tariff.
D. embargo.
ANS A

131. According to the price/quality strategy matrix, when a company overprices its product
in relation to its quality it is considered to be using which type of strategy?
A Good-value strategy.
B Premium strategy.
C. Overcharging strategy.
D. Snob strategy.
ANS C

132. ________________ is the practice of adopting policies and developing strategies that
both sustain the environment and produce profits for the company.
A. Environmentalism
B. Environmental sustainability
C. Consumerism
D. Consumer accountability
ANS B

133 . A ________________ is a promotion strategy that calls for using the sales force and trade
promotion to move the product through channels.
A. push strategy
B. pull strategy
C. blocking strategy
D. integrated strategy
ANS A

134. Consumer goods with unique characteristics or brand identification often requiring a
special purchase effort are called:
A. custom products.
B. specialty products.
C. convenience products.
D. shopping products.
ANS B

135. Even though buying roles in the family change constantly, the ___________ has
traditionally been the main purchasing agent for the family.
A. wife
B. husband
C teenage children
D. grandparent
ANS A
136 . A(n) ______________ is a retail store that carries a narrow product line with a
deep assortment within that line.
A. shopping goods store
B. convenience store
C. specialty store
D. department store
ANS C

137. The purpose of strategic planning is to find ways in which the company can best:
A. overcome losses.
B. use its strengths to take advantage of attractive opportunities in the environment.
C. avoid paying taxes.
D. avoid the expense of costly research and development while still getting the
benefits.
ANS B

138. Which of the following is NOT one of the five stages of the buyer decision process?
A. need recognition
B. brand identification
C. information search
D. purchase decision

ANS B

139.The process of locating and classifying potential buyers of a product is …………........

A. Business to Business
B. Prospecting
C. Rollout
D. Micro marketing
ANS: B
140.A promotional strategy in which the producer uses mass promotion to stimulate demand in the
consumer market, thereby causing intermediaries to want to carry the product…………………

A. Reinforcement
B. Push strategy
C. Product re launch
D. Pull strategy
ANS: B

141.A lead that benefit from the use of the product, can afford buy it, and has the authority to do
so…

A. Rack Jabber
B Managing Director
C True Prospect
D Marketing Manager
ANS: C
142. A sales promotion techniques in which prizes are tried to chance and consumers are
encourage to buy a product as part of the entry procedure………………………….
A. Loss leader
B. Coupon
C. Sweepstakes
D. Tactical sales
ANS: B

143.An agent that handles the entire marketing function for a manufacturer………………….

A. Selling Agent
B. Intermediary
C. Sales Manager
D. Prospecting Manager
ANS: A

144.The process of assisting and/ or persuading a prospective customer to buy a good or service or
act favorably on an idea………………………….

A. Transaction
B. Selling
C. Exchange
D. Marketing
ANS: B
145.……………….is whatever occur as a reaction to an arouse need

A. Retention
B. Scenario analysis
C. Response
D. Attention
ANS: D

146.The person who designs and manages the activities of an organization’s sales force…………….

A. Innovator

B. Sales manager

C. Order taker

D. Director

ANS: B
147.A group of respondents who are representative of the population being surveyed……………..

A. Target market
(b) Role theory
(c) Producer market
(d) Sample
ANS: D
148.A tag or a package that supplies information about a product or its seller………………….
 A. Adverts

B. Label

C. Promotion

D Direct Marketing

ANS: B
149.All activities that are related to designing and producing the container or wrapper for a
product…………….

A. Packaging
B. Labeling
C. Branding
D. Marketing mix
ANS: A

150.…………….is any technique that persuasively communicates favorably information about

a seller’s product to potential buyers.
A. Communication
B. Promotion
C. Message
D. Advertising
ANS: D

151. Which of the following is not a type of channel of distribution?

a) Direct
b) Indirect
c) Virtual
d) None of the above
ANS: D

152. Which channel of distribution is most suitable for a company that has a large sales
force?
a) Direct
b) Indirect
c) Virtual
d) None of the above
ANS: A

153. Which channel of distribution is most suitable for a company that is introducing a new
product to the market?
a) Direct
b) Indirect
c) Virtual
d) None of the above
ANS: B

154. Which channel of distribution is most suitable for a company that has a small sales
force?
a) Direct
b) Indirect
c) Virtual
d) None of the above
ANS: B

155. Which channel of distribution is most suitable for a company that has a limited budget
for marketing and promotion?
a) Direct
b) Indirect
c) Virtual
d) None of the above
ANS: B

156. Which channel of distribution is most suitable for a company that wants to reach a
wide range of customers?
a) Direct
b) Indirect
c) Virtual
d) None of the above
ANS: B

157. Which channel of distribution is most suitable for a company that wants to provide a
high level of customer service?
a) Direct
b) Indirect
c) Virtual
d) None of the above
ANS: A

158. Which channel of distribution is most suitable for a company that wants to offer a
wide range of products or services?
a) Direct
b) Indirect
c) Virtual
d) None of the above
ANS: A

159. Which channel of distribution is most suitable for a company that wants to control the
distribution of its products or services?
a) Direct
b) Indirect
c) Virtual
d) None of the above
ANS: A

160. Which channel of distribution is most suitable for a company that wants to reach a
specific target market?
a) Direct
b) Indirect
c) Virtual
d) None of the above
ANS: B

161. The use of intermediaries in the distribution process is known as:

a) Direct distribution
b) Indirect distribution
c) Virtual distribution
d) None of the above
ANS: B

162. The distribution of goods or services directly to the end user is known as:
a) Direct distribution
b) Indirect distribution
c) Virtual distribution
d) None of the above
ANS: A

163. A company that uses a combination of direct and indirect channels is using:
a) Single channel distribution
b) Dual channel distribution
c) Multi-channel distribution
d) None of the above
ANS: C

164. A company that uses e-commerce platforms to sell its products or services is using:
a) Direct distribution
b) Indirect distribution
c) Virtual distribution
d) None of the above
ANS: C
165. Which type of channel of distribution is most suitable for a company that wants to
reduce its costs of distribution?
a) Direct
b) Indirect
c) Virtual
d) None of the above
ANS: B

166. Which type of channel of distribution is common in marketing of medical services?

a) Direct
b) Indirect
c) Virtual
d) None of the above
ANS: A

177. Which type of channel of distribution is most suitable perishable items like vegetables
and tomato?
a) Direct
b) Indirect
c) Virtual
d) None of the above
ANS: A

178. Which of the following is NOT a common channel of distribution for a product?
a) Wholesaler
b) Retailer
c) Social media influencer
d) Manufacturer
ANS: C

179. Which of the following is an example of an indirect distribution channel?

a) A consumer purchasing a product directly from the manufacturer's website
b) A consumer purchasing a product from a retail store that sourced the product from a
wholesaler
c) A consumer purchasing a product from a television home shopping network
d) A consumer purchasing a product from a vending machine
ANS: B

180. Which of the following is not a function of marketing channels?

a) Facilitating transactions
b) Providing a platform for customer engagement
c) Creating product designs
d) None of the above
ANS: C

181. What is the main cause of conflicts within distribution channels?

a) Lack of communication
b) Misaligned incentives
c) Lack of trust
d) All of the above
ANS: D

182. How can conflicts within distribution channels be resolved?

a) Ignoring the problem
b) Through negotiation and compromise
c) Using aggressive or confrontational tactics
d) None of the above
ANS: B

183. Which type of distribution channel is most prone to conflicts?

a) Direct distribution
b) Indirect distribution
c) Both A and B
d) None of the above
ANS: C

184. Which of the following can contribute to conflicts within a distribution channel?
a) Misunderstandings in pricing and margin agreements
b) Misaligned sales and marketing strategies
c) Inadequate communication between partners
d) All of the above
ANS: D

185. What is the impact of technology on distribution channel conflicts?

a) It has no impact
b) It can increase the speed and accessibility of communication, but can also lead to
confusion or misunderstandings
c) It can only be used to avoid conflicts
d) None of the above
ANS: B

186. How can conflicts within distribution channels be prevented?

a) By avoiding regular communication
b) By establishing clear agreements, promoting open and honest communication, and
regularly reviewing and updating agreements
c) By allowing only one party to control the distribution
d) None of the above
ANS: B

187. How does cultural diversity impact distribution channel conflicts?

a) It has no impact
b) By influencing communication styles and expectations for negotiation and compromise
c) By creating more conflicts
d) None of the above
ANS: A
188. How can conflicts between manufacturers and retailers be resolved?
a) By forcing one party to accept the other's point of view
b) Through negotiation and compromise
c) By taking a confrontational approach
d) None of the above
ANS: B

189. Why is it important to monitor and evaluate distribution channels?

a) To identify and address any issues or problems that may arise
b) To ensure that the channels are meeting the needs of the manufacturer and retailer
c) To make any necessary adjustments or improvements
d) All of the above
ANS: D

190. Which of the following is not a common solution for distribution channel conflicts?
a) Active listening
b) Ignoring the problem
c) Clear and open communication
d) None of the above
ANS: B

191. What is the most important factor affecting the choice of marketing channels?
a) Product features
b) Target market
c) Company resources
d) None of the above
ANS: B
192. Which of the following is not a factor affecting the choice of marketing channels?
a) Product characteristics
b) Distribution costs
c) Weather conditions
d) None of the above
ANS: C

193. How does the target market affect the choice of marketing channels?
a) It has no effect
b) It helps to determine the most appropriate channels to reach and appeal to the target market
c) It makes no difference in the selection of marketing channels
d) None of the above
ANS: B

194. How do company resources affect the choice of marketing channels?

a) They have no effect
b) They determine the budget and capabilities available for marketing and promotion
c) They make no difference in the selection of marketing channels
d) None of the above
ANS: B

195. What is the role of product characteristics in the choice of marketing channels?
a) It has no role
b) It helps to determine the most appropriate channels for the product
c) It makes no difference in the selection of marketing channels
d) None of the above
ANS: B

196. How do distribution costs affect the choice of marketing channels?

a) They have no effect
b) They determine the most cost-effective way to reach the target market and distribute the
product c) They make no difference in the selection of marketing channels
d) None of the above
ANS: B

197. How do legal and regulatory factors affect the choice of marketing channels?
a) They have no effect
b) They determine the compliance requirements and restrictions for marketing and promotion
c) They make no difference in the selection of marketing channels
d) None of the above
ANS: B

198. How does the level of competition affect the choice of marketing channels?
a) It has no effect
b) It determines the need to differentiate the product and stand out in the market
c) It makes no difference in the selection of marketing channels
d) None of the above
ANS: B

199. How do technology and digital channels affect the choice of marketing channels?
a) They have no effect
b) They provide new opportunities for reaching and engaging with the target market
c) They make no difference in the selection of marketing channels
d) None of the above
ANS: B

200. How do cultural and societal factors affect the choice of marketing channels?
a) They have no effect
b) They determine the cultural and societal norms and values that may influence the
acceptability and effectiveness of different marketing channels
c) They make no difference in the selection of marketing channels
d) None of the above
ANS: B

201. What is the primary function of distribution channels in the marketing process?
a) To increase product visibility
b) To increase brand awareness
c) To facilitate the movement of goods from producer to consumer
d) To gather market research
ANS: C

202. How do marketing channels help to increase the efficiency of the supply chain?
a) By reducing the number of intermediaries involved
b) By increasing the number of intermediaries involved
c) By decreasing the number of intermediaries involved
d) By simplifying the supply chain process
ANS: A

203. What role do intermediaries play in the marketing channels process?

a) They act as the link between manufacturers and consumers
b) They act as the link between suppliers and retailers
c) They act as the link between producers and distributors
d) They act as the link between wholesalers and retailers
ANS: A

204. How do marketing channels affect the pricing of products and services?
a) They increase the price of products and services
b) They decrease the price of products and services
c) They have no effect on pricing
d) They depend on the intermediaries involved
ANS: C
205. What are the benefits of using multiple marketing channels for a business?
a) It allows businesses to reach a wider audience b) It allows businesses to increase their
profits
c) It allows businesses to reduce their costs
d) All of the above
ANS: D

206. How do marketing channels impact the promotion and advertising of products and
services?
a) They make it easier for businesses to reach their target audience
b) They make it harder for businesses to reach their target audience
c) They have no impact on promotion and advertising
d) They depend on the intermediaries involved
ANS: A

207. What are the key factors to consider when choosing the appropriate marketing
channels for a business?
a) Target audience
b) Product or service offered
c) Budget
d) All of the above
ANS: D

208. How do marketing channels enable businesses to reach their target audience?
a) By providing a direct link to the consumer
b) By providing a link to intermediaries
c) By providing a link to suppliers
d) None of the above
ANS: B
209. How do marketing channels enable businesses to respond to changes in consumer
demand?
a) By providing a direct link to the consumer
b) By providing a link to intermediaries
c) By providing a link to suppliers
d) None of the above
ANS: B

210. What are the potential challenges and risks associated with using marketing channels?
a) Increased costs
b) Reduced control over distribution
c) Dependence on intermediaries
d) All of the above.
ANS: D

211. What type of channels conflict occur when consumer prefers a particular shop to other
outlets?
a) Horizontal conflicts
b) Vertical conflicts
c) Channel conflict
d) Consumer conflict
ANS: A

212. What type of channel conflict occur when channel member bypasses another and sells
directly?
a) Horizontal conflicts
b) Vertical conflicts
c) Channel conflict
d) Consumer conflict
ANS: B
213. Adopting a price strategy that reduces the profit margin of other channel members is
regarded as-----
a) Disintermediation
b) Vertical conflict
c) Horizontal conflict
d) Cannel power
ANS: B

214. How do marketing channels help to create demand for a product or service?
a) By connecting manufacturers or service providers with customers
b) By providing information about the product or service
c) By promoting the product or service through various forms of communication and
advertising
d) None of the above
ANS: C
215. Which one is the function of intermediaries in marketing channels?
a) To create demand for a product or service
b) To connect manufacturers or service providers with customers
c) To provide logistics, financial, and other support services
d) None of the above
ANS: C
216. A company sets not a single price, but rather a ________ that covers different items in
its line that change over time as products move through their life cycles.
A) pricing by-product
B) pricing structure
C) pricing loop
D) pricing cycle
E) pricing bundle
ANS: B
2) Companies facing the challenge of setting prices for the first time can choose between two
broad strategies: market-penetration pricing and ________.
A) market-level pricing
B) market-competitive pricing
C) market-skimming pricing
D) market-price lining
E) market-price filling
Answer: C
217. Companies facing the challenge of setting prices for the first time can choose between
two broad strategies: market-penetration pricing and ________.
A) market-level pricing
B) market-competitive pricing
C) market-skimming pricing
D) market-price lining
E) market-price filling
ANS: C
218. Of the following, which statement would NOT support a market-skimming policy for a
new product?
A) The product's quality and image support its higher price.
B) Enough buyers want the products at that price.
C) Competitors are not able to undercut the high price.
D) Competitors can enter the market easily.
E) C and D
ANS: D
219. A firm is using ________ when it charges a high, premium price for a new product with
the intention of reducing the price in the future
.A) price skimming
B) trial pricing
C) value pricing
D) market-penetration pricing
E) prestige pricing
ANS: A
220. A firm is using ________ when it charges a high, premium price for a new product with
the intention of reducing the price in the future.
A) price skimming
B) trial pricing
C) value pricing
D) market-penetration pricing
E) prestige pricing
ANS: A
221. ________ pricing is the approach of setting a low initial price in order to attract a large
number of buyers quickly and win a large market share.
A) Market-skimming
B) Market-penetration
C) Below-market
D) Value-based
E) Leader
ANS: B
222. Which of the following is a reason that a marketer would choose a penetration pricing
strategy?
A) to ensure the company has the ability to increase prices once demand decreases
B) to focus on the rapid achievement of profit objectives
C) to appeal to different consumer segments with different levels of price sensitivity
D) to create markets for highly technical products
E) to discourage competition from entering the market
ANS: E
223. Companies usually develop ________ rather than single products.
A) product families
B) product lines
C) product groupings
D) product brands
E) product images
ANS: B
224. A marketer must be familiar with the five major product mix pricing situations. Which
of the following is NOT one of them?
A) product line pricing
B) optional-product pricing
C) captive-product pricing
D) unbundled product pricing
E) by-product pricing
ANS: D
225. A challenge for management in product line pricing is to decide on the price steps
between the ________.
A) various products in a line
B) product mixes
C) product groupings
D) product lines
E) various target markets
ANS: A
226. When using price steps, the seller must establish perceived ________ that support the
price differences.
A) nonprice competitions
B) quality differences
C) quantity levels
D) images
E) strategies
ANS: B
227. Many producers who use captive-product pricing set the price of the main product
________ and set ________ on the supplies necessary to use the product.
A) low; low markups
B) high; low markups
C) low; high markups
D) high; high markups
E) moderately; moderate markups
ANS: C
228. When amusement parks and movie theaters charge admission plus fees for food and
other attractions, they are following a(n) ________ pricing strategy.
A) by-product
B) optional-product
C) captive-product
D) skimming
E) penetration
ANS: C
229. HiPoint Telephone Company uses two-part pricing for its long-distance call charges.
Becausethis is a service, the price is broken into a fixed rate plus a ________.
A) fixed rate usage
B) variable usage rate
C) standard usage rate
D) market usage rate
E) none of the above
ANS: B
230. Companies involved in deciding which items to include in the base price and which to
offer as options are engaged in ________ pricing.
A) product bundle
B) optional-product
C) captive-product
D) by-product
E) skimming
ANS: B
231. Keeping in mind that a seller must sell by-products at a price that covers more than the
cost of storing and delivering them, which of the following will by-product pricing permit a
seller to do?
A) increase the main product's price
B) make extra profit
C) reduce the main product's price
D) none of the above
E) B and C
ANS: E
232. With product bundle pricing, sellers can combine several products and offer the bundle
________.
A) as a working unit
B) at a reduced price
C) as a complete self-service package
D) as a reward to loyal customers
E) as segmented pricing
ANS: B
233. What is a major advantage of product bundle pricing?
A) It can promote the sales of products consumers might not otherwise buy.
B) It offers consumers more value for the money.
C) It combines the benefits of the other pricing strategies.
D) It provides a more complete product experience for consumers.
E) All of the above.
ANS: A
234. Which of the following is NOT a price adjustment strategy?
A) segmented pricing
B) promotional pricing
C) free samples
D) geographical pricing
E) seasonal pricing
ANS: C
235. Service Industries, Inc., plans to offer a price-adjustment strategy in the near future.
They could consider each of the following EXCEPT ________.
A) discount and allowance pricing
B) segmented pricing
C) physiological pricing
D) promotional pricing
E) location pricing
ANS: C

236. Oyeniyi says a product marked with and affordable price and made available to all
distributors in the target market but his sales are very low. The major reasons could be?
A. He has not packaged the product well
B. He has not promoted the product
C. He has not given discounts on the products
D. He has not test market the product
ANS: B

237. A more comprehensive statement as to promotion is

A. Understanding the market and advertise the product
B. Coordinating all promotional activities
C. Informing, Persuading and influencing the consumers purchase decisions
D. Conducting various promotional events
ANS: C

238. Promotional mix could be identified as

A. Market research, advertising, Sales promotion and direct marketing
B. Advertising, Sales Promotion, publicity, Personal selling and direct marketing
C. Radio, Newspaper, television, Internet, Poster and Banner
D. Events, Publicity program, exhibitions and sponsorship
ANS: B

239. When a new product is introduced to the market, the advertising is commonly used to
A. Remind the consumers
B. Persuade the consumers
C. Motivate the consumers
D. Inform the consumers
ANS: D

240. Mature products in the market such as CocaCola uses advertising to

A. Remind the consumers
B. Persuade the consumers
C. Motivate the consumers
D. Block new users
ANS: A

241. Public relations or publicity has distinctive advantage over other promotional tools
A. High credibility, off guard and involves no media cost
B. It could be used to relate important aspects outside the marketing realm
C. Marketer has control of publication of PR materials
D. A&B are correct
ANS: D

242. Personal Selling is

A. Selling products for personal use
B. Selling products to persons known to the seller
C. Face to face interaction with customers for purpose of making sales
D. Helping customers to select products
ANS: C

243. One of the following does not belong to direct marketing

A. Mail by post and email
B. SMS and MMS
C. WhatsApp, Twitter or Instagram message
D. Door to door sales
ANS: D

244. Buzz Marketing or word of mouth marketing is mainly used by

A. Multinationals
B. Marketers who do not have budget for mainstream advertising budget
C. Marketers who sell FAD products
D. Marketers who like people to have an informal discussion about their products
ANS: B

246. One of the following should not be conducted always as the effect of it will be lost
A. Advertising
B. Sales Promotion
C. Public relations
D. Personal selling
ANS: B

247. A product could be defined as

A. Anything that can be offered to a market to satisfy a need or want
B. Product or services that are offered to consumers
C. Various types of goods and services available in the market
D. Items that can be seen and touched
ANS: A

248. A product could be physical product, place, organization, idea, person or a service. If a
famous player like Cristiano Ronaldo is marketed by his manager to appear in advertisement,
it is called
A. Service
B. Physical product
C. Idea
D. Person
ANS: D

249. According to Philip Kotler, Product has five levels

A. Outer package, Inner package, contents, taste and nutrition
B. Core, generic, expected, augmented and potential
C. Development, introductory, growth, maturity and decline
D. Durability, perishability, inseparability, intangibility and variability
ANS: B

250. One of the statements is wrong as to the importance of branding to consumers

A. Makes easy to identify
B. Reduce risk of purchasing
C. Helps in buying nutritious products
D. Helps product evaluation
ANS: C

251. Although packaging is fundamentally used for protecting the product, now it is also
seen as
A. Fashion
B. Silent salesman
C. Environment friendly element
D. Innovation to make user friendly products
ANS: B

252. Product lifecycle theory generally assumes that a product

A. has three stages of life
B. has a very short life in the market
C. has lifecycle from conception to decline
D. has a lifecycle that cannot be predicted
ANS: C

253. Ability to convince someone to buy a product in exchange for value is called
A. Sales Promotion
B. Direct Marketing
C. Selling
D. Value exchange
ANS: C

254. The most appropriate selling method when a large buyer or buying company has a
complex need that cannot be satisfied by on individual salesperson is
A. Team selling
B. Partnership
C. Buying formula
C. Right set of circumstances
ANS: A

255. Which of these is not a primary communication function

A. Encoding
B. Decoding
C. Feedback
D. Receiver
ANS:D