Marketing Question Bank

Chapter 1:

1. It is more expensive to attract new customers than to retain existing ones
2. Customer Value= Perceived benefits minus perceived sacrifice
3. How do customers form expectations?
1. Customer expectations are formed through pre-buying experiences, discussions with other people, and suppliers’ marketing activities
4. When does customer satisfaction occur?
1. Customer satisfaction occurs when perceived performance matches or exceeds expectations
5. What makes up the Marketing Mix?
1. Product Price Place and Promotion
6. Which of the following combination of conditions apply to a company which is likely to survive but no necessarily thrive?
1. effective and inefficient
7. Service Marketers have advocated the 7-P's.  What are they?
1. Product, Price, Place, Promotion, People, Process, Physical Evidence
8. What are distribution channels?
1. Retailers or wholesalers through which goods pass on their way to customers
9. Which of the following is required for successful marketing implementation?
1. Proximity to the customer
10. What are the four features of marketing mix?
1. match company resources
2. match customer needs
3. consistent, well blended theme
4. mix creates competitive advantage
11. There is a positive relationship between marketing and performance.
12. Marketing should be viewed not as a departmental function but as a guiding philosophy for the whole organisation.

Chapter 2:

1. What makes up the marketing environment?
1. Macro and Micro environments
2. Microenvironment consists of:
1. Suppliers, competitors, customers and distributors
3. Recyclable and non-wasteful packaging is a
1. physical force
4. Which of the environmental forces is most likely to impact on how well-off consumers feel?
1. economic force
5. Demographic forces affect which of the following?
1. population changes
6. What does NAFTA stand for?
1. North American Free Trade Agreement
7. Values, beliefs and attitudes that is possessed by a national group or sub-group is called:
1. culture
8. What is CSR?
1. Ethical principle that a person or an organisation should be accountable for how its acts might affect the physical environment and the general public.
9. Which brand is perceived as the most ethical in the UK?
1. Co-op
10. The process of monitoring and analysing the marketing environment of a company is called:
1. Environmental Scanning
11. If environmental scanning is poor and a company responds by continuing to do business as usual in spite of environmental forces which might affect future performance; the company would be said to be responding through:
1. Ignorance
12. What is marketing myopia?
1. Marketing myopia is where management is product focused rather than customer focused.

Chapter 3:

1. Five generic questions which can help a marketer to understand consumer behaviour:
1. who is important (in the buying decision)?
2. what are the choice criteria?
3. where do they buy?
4. how do they buy?
5. when do they buy?
2. Blackwell, Miniard and Engel described five roles in the buying decision-making process, which of the following role do they describe as ‘the individual with the power and or authority to make the ultimate choice regarding which product to buy’?
1. decided
3. The organisational buying process has two more steps than the consumer buying process. Which of the following steps are not considered as part of consumer buying process?
1. Selection or order routine
2. performance feedback and evaluation
4. In a consumer buying situation, when a purchase is capable of providing a high degree of pleasure, the factor most likely to be affecting levels of involvement is referred to as:
1. hedonistic influence
5. Status is an example of:
1. social choice criteria
6. What name is given to the type of purchase which involves little or no evaluation of alternatives?
1. habitual problem solving
7. According to Maslow motivation can be grouped into 5 categories. Which category is described as “the fundamentals of survival” ?
1. physiological 
8. In organisational buying MRO stands for
1. maintenance, repair and operation
9. If an organisation aims to minimise stocks by organising a supply system that provides materials and components as they are required they will be engaging in which of the following purchasing practices? 
1. Just In Time
10. In a straight re-buy situation, which of the following best describes the members of the decision making unit?
1. purchasing officer
11. Mainstreamers, reformers and transitionals are examples of:
1. lifestyle patterns
12. ______________ is the complicated means by which we select, organise and interpret sensory stimulation into a meaningful picture of the world. Which of the following is the missing word?
1. Perception
13. If a consumer has concerns about whether they have just made the right purchase decision they could be suffering from:
1. Cognitive dissonance

Chapter 4: (not tested)

Chapter 5:

1. Which of the following are the three broad groups of consumer segmentation criteria?
1.  Psychographic, demographic and behavioural variables
2. What is the purpose of segmentation?
1. To identify differences in consumer or organisational behaviour that has implications for marketing decisions
3. In the UK, social class is usually measured according to which of the following?
1. Occupation
4. Which of the following is not a useful base for segmenting organisational markets?
1. perceptions, beliefs
5. A company who develops a single marketing mix for the whole market and doesn’t segment the market uses which of the following marketing strategies?
1. Undifferentiated Marketing
6. A differentiated target marketing strategy exploits which of the following?
1. Exploits the differences between marketing segments
7. Convenience, performance and status are examples of ______________ variables?
1. Benefits sought
8. Positioning is a choice of which of the following?
1. The target market & differential advantage
9. If a company is planning a segmentation strategy, and in doing so is considering using variables like age and occupation, which of the segmentation success criteria is the company considering?
1. Measurability
10. If a company is aiming to reposition its market offer by taking the same product into a different market the strategy would be called:
1. Intangible repositioning
11. Which of the following are all Profile segmentation variables?
1. Age, Gender and income
12.  The technique used by marketers to get to grips with the diverse nature of markets is called market __________________?
1.  Segmentation

Chapter 6:

1. Branding is the process by which companies:
1. satisfy the customer through product offerings.
2. distinguish their product offerings from competitors
3. select product ranges.
4. plan marketing communication strategies
2.  Which of the following is not a benefit of branding?
1. Sustaining high and stable sales and profits through brand loyalty
3. The strength of a brand’s position in the marketplace is built upon six elements. Which of the following is not one of these elements?
1. Brand domain
4. The element that makes the brand distinctive from other competing brands such as symbols, features, images and relationships is referred to as which of the following?
1. Brand assets
5. Family brand names are sometimes referred to as which of the following?
1. Umbrella brands
6. Brand stretching is which of the following?
1. established brand name is used for brands in unrelated markets
7.  Pan-European or global brands have which of the following advantages?
1. Match various cultures
8.  According to the BCG matrix, “Cash Cows” are described as which of the following?
1.  High market share in low growth markets
9.  Which of the following is the correct order of a product life cycle?
1. Introduction, Growth, Maturity, Decline
10. Which of the following is the correct order for the seven-step new product development process?
1. Idea generation, screening, concept testing, business analysis, product development, market testing, and commercialisation.
11. If a new product is sold in a limited but representative geographical area which part of the new product development process is the company engaged in?
1. Test marketing
12. Which of the following best describes the U2 and Apple iPod co-branding strategy?
1. ingredient

Chapter 7:

1. Which of the following type of company does not mainly offer services?
1. toy retailer
2. If two Café Nero restaurants provide different levels of service encounters due to one establishment having a very good local management team and the other having a bad local management team, which of the characteristics of services marketing best helps define what is happening?
1. Variability
3. Which of the following is not a unique characteristic of services?
1. acceptability
4. Which of the following methods helps tackle the problem of service variability?
1. service standardization
5. Which of the following are key characteristics of the extended service marketing mix?
1. Physical evidence, process and people
6. Research on service organisations has identified four characteristics of successful brand names, which of the following is not one of the characteristics of a successful brand name? (distinctiveness, relevance, flexibility, memorability)
1. Variability
7. Which of the following statement about the use of the marketing mix in relation to services is not true?
1. Word of mouth is irrelevant
8. Failure to select, train and motivate employees contributes to which of the following barriers to service quality:
1. inadequate delivery
9. Which of the following are key dimensions of service quality?
1. Reliability, responsiveness, assurance, empathy and tangibles
10.  Staff appearance, décor and layout refer to which of the following dimensions of service quality?
1. tangibles
11. Which element of the marketing mix is the Petshotel chain in the USA using when they provide floral soft furnishing, comfortable armchairs and doggie biscuits in the reception of their hotels?
1. process
12. Service quality is about understanding and meeting customer expectations. If a hotel has a notice in the reception which states that lunch times are “middayish” which of the following evaluation criteria is the hotel failing to meet?
1. communication

Chapter 8: 

1. Which of the following is not a method of setting prices? (Competitor-oriented pricing,

   Market-led pricing, Cost-based pricing, full cost pricing)

1. Sales-focused pricing
2.  Where companies set their prices at levels either above, the same as or below their competitors, this is called?
1. Benchmarking
3. Which of the following is a weakness associated with competitor-oriented pricing?
1. Competitor-oriented pricing is risky where a firm’s cost position is weaker than its competitors
4. Trade-off analysis is also known as which of the following?
1. conjoint analysis
5. Experimental pricing research uses which of the following?
1. Test marketing to determine prices
6. A combination of high price and high promotion expenditure is called which of the following?
1. Rapid skimming strategy
7. A skimming strategy is most suitable where:
1. Consumers are less price sensitive
8. Price can be used to convey differential advantage and to appeal to certain market segments. When launching new products, price should be carefully aligned with promotional strategy. If a company was using a low price and a low promotional spend the launch strategy would be called:
1. slow penetration
9. Which of the following circumstances may indicate a price increase?
1. harvest objective
10. When products destined to be sold in an international market are re-imported back into the home market and sold through unauthorised channels at lower levels than recommended by the producer, this practice is know as:
1. parallel importing
11. The amount a customer would have to pay to make the total life cycle costs of a new and a reference product the same, is referred to as which of the following?
1. Economic value to customer
12. “Break even analysis” is used to estimate which of the following?
1. Sales volume

Chapter 9:  

1. The distribution of products, information and promotional benefits to target consumers through interactive communication in a way, which allows response to be measured, is called which of the following?
1. Direct Marketing
2. A pull strategy involves which of the following?
1. Bypassing intermediaries to communicate to consumers directly
3. If a complex technical argument were required, which of the following promotional methods would be the most suitable?
1. personal selling
4. Which of the following is not a part of the communication process model? (source, receiver, feedback, noise)
1. Clutter
5. The acronym “AIDA” stands for which of the following?
1. Awareness, Interest, Desire, Action
6. Which of the following is an example of a media vehicle?
1. The Daily Telegraph
7. Which class of media is most suited to providing detailed factual information?
1. Print
8. If the effectiveness of an advertising campaign is measured using marketing research and subsequent payment to the advertising agency is based on how well communications objectives have been met, the method of payment is called:
1. Payment by results
9. Which of the following is a type of trade promotion?
1. Allowances
10. “Publicity” is seen to be:
1. more credible than advertising
11. Which of the following describes a company engaging in a number of activities in order to try and associate itself with an event without paying any fee to the event owner?
1. Ambush marketing
12. Which of the following are possible objectives of exhibitions?
1. Gathering competitive intelligence

Chapter 10:  

1. A marketing data base consists of many different types of information. Which of the following is not a valid source of information: (Product, Transaction, Promotion, Geodemographic)
1.  company employee information
2. Customer Relationship Management is becoming increasingly important, which of the following is an example of a success factor for a CRM system?
1. adopting customer orientation
3. Catalogue marketing, door-to-door leafleting and in-bound telemarketing are all examples of:
1. Direct marketing
4. If an advertising campaign is designed to trigger a potential customer to place an order, the technique is called:
1. Direct response advertising
5. Which of the following is an advantage associated with catalogue marketing?
1. Opportunity to display a wider range of products than could feasibly be achieved in a shop
6. Which element of the marketing mix is considered to be more transparent as a result of using the Internet?
1. Price
7. Which of the following is not necessarily a customer benefit of Internet technologies?
1. Security
8. Asking for an order, summarising the key points for the order, or offering a special deal for placing an order are all examples of techniques which might be used at the _________ stage of the selling process.
1. closing
9. The process of bypassing traditional intermediaries such as travel agents is known as which of the following?
1. disintermediation
10. _______ marketing can be described as: the passing of information about products and services by verbal or electronic means in an informal person-to person manner.
1. Buzz
11. Where publicity is generated from word of mouth recommendations on the Internet or email, this is referred to as which of the following?
1. viral marketing
12.  Key Account Management is likely to be used when a company has:
1. small number of large volume buyers

Chapter 11:  

1. Avon Cosmetics and Tupperware are examples of companies which have only two types of organisations in the distribution channel. These organisations are:
1. producer and consumer
2. Intensive distribution is a practice which involves:
1. Using all available outlets to provide saturation of the marketplace
3. A legal contract in which a producer and a channel member agree each member’s rights and obligations is called a:
1. Franchise agreement
4. Own-label brands are used by retailers to:
1. Extract more profit
5. Which type of retail operation has a narrow product focus but an unusually large width and depth to the product range?
1. Category killers
6. RFID stands for:
1. Radio Frequency Identification
7. JIT inventory control ensures:
1. Low inventory levels are maintained
8.  There are fewer limitations on the size of online retailers inventory because:
1. There are no physical space restrictions
9. A key success factor for Müller yoghurt was that they convinced Tesco to stock the brand. In this case what role in distribution management was Tesco playing?
1. channel intermediaries 
10. A manufacturer, through its size and strong brands, dominates a market and may exercise considerable power over intermediaries even through they are independent. This power may result in:
1. An administered vertical marketing system
11. Store location is critically important to retailer success. When Starbucks considered where to locate its coffee shops they looked carefully at behaviour patterns of the commuters who were the key target market and decided to locate the stores:
1. on the side of the street most favoured by the commuters
12. An example of scrambled merchandising is:
1. Sauces, Fruit juice, Meat, Jumpers, Toys