1. A company decides to offer a ‘stripped-down’ version of its product at a very low price. Which positioning strategy is this?
A. More for more
B. More for the same
C. The same for less
D. Less for much less
2. Which of the following is a key consideration when evaluating the attractiveness of a market segment?
A. The company’s current profitability
B. The segment’s size and growth potential
C. The company’s political affiliations
D. The company’s production capacity
3. Which of the following is an example of ‘behavioral segmentation’?
A. Targeting customers based on their age
B. Targeting customers based on their geographic location
C. Targeting customers based on their purchase history
D. Targeting customers based on their personality traits
4. A luxury brand uses exclusive advertising and high prices to create a perception of superior quality and status. Which positioning strategy is this?
A. More for more
B. More for the same
C. The same for less
D. Less for much less
5. Which of the following is a potential pitfall of ‘undifferentiated marketing’?
A. Ignoring the needs of specific customer segments
B. Increased marketing costs
C. Difficulty in reaching a large audience
D. Lack of brand awareness
6. What is ‘undifferentiated marketing’?
A. Targeting multiple market segments with different marketing mixes
B. Ignoring market segment differences and targeting the entire market with one offer
C. Focusing on a niche market segment
D. Customizing products for individual customers
7. What is the purpose of a ‘positioning statement’?
A. To summarize the company’s financial performance
B. To communicate the brand’s unique value proposition to the target market
C. To describe the company’s organizational structure
D. To outline the company’s production process
8. Which of the following is most closely associated with ‘local marketing’?
A. Developing a global brand
B. Tailoring brands and promotions to the needs of local customer groups
C. Using mass marketing techniques
D. Ignoring geographic differences
9. A clothing company positions itself as offering high-quality, fashionable clothing at affordable prices. This is an example of:
A. More for more
B. More for the same
C. The same for less
D. Less for much less
10. Which of the following is NOT a step in the target marketing process?
A. Market segmentation
B. Market targeting
C. Market positioning
D. Market saturation
11. What is the primary benefit of ‘market targeting’?
A. To appeal to the broadest possible audience
B. To efficiently allocate marketing resources
C. To reduce competition
D. To lower production costs
12. A company segments its market based on income, occupation, and education. Which type of segmentation is this?
A. Geographic segmentation
B. Demographic segmentation
C. Psychographic segmentation
D. Behavioral segmentation
13. Which of the following is NOT a requirement for effective segmentation?
A. Measurable
B. Accessible
C. Substantial
D. Homogeneous
14. A retailer groups its customers based on their lifestyle, values, and attitudes. This is an example of:
A. Geographic segmentation
B. Demographic segmentation
C. Psychographic segmentation
D. Behavioral segmentation
15. Which of the following is NOT a core element of a customer-driven marketing strategy?
A. Market segmentation
B. Differentiation
C. Marketing myopia
D. Targeting
16. What is the ultimate goal of positioning a brand?
A. To achieve the highest possible sales volume
B. To create a clear, distinctive, and desirable place in the target customer’s mind
C. To minimize marketing expenses
D. To imitate the competition
17. A local bakery targets its marketing efforts towards residents within a 5-mile radius. This is an example of:
A. Demographic segmentation
B. Geographic segmentation
C. Psychographic segmentation
D. Behavioral segmentation
18. What is the main advantage of ‘concentrated marketing’?
A. Higher potential market share
B. Stronger knowledge of customer needs
C. Lower risk of competition
D. Greater economies of scale
19. Which of the following is an example of ‘micromarketing’?
A. A national advertising campaign
B. Mass production of a standardized product
C. Customized products and services for individual customers
D. Marketing to a specific age group
20. What is a potential risk of ‘differentiated marketing’?
A. Cannibalization of sales from other products
B. Lower brand awareness
C. Increased production costs
D. Ignoring customer needs
21. Which type of marketing involves tailoring products and marketing programs to the needs and wants of specific individuals?
A. Mass marketing
B. Segment marketing
C. Micromarketing
D. Niche marketing
22. A car manufacturer positions its vehicles as ‘the safest on the road.’ Which type of differentiation is this?
A. Price differentiation
B. Service differentiation
C. Product differentiation
D. Image differentiation
23. A soft drink company decides to launch a sugar-free version of its popular beverage to cater to health-conscious consumers. Which segmentation approach is this?
A. Geographic segmentation
B. Demographic segmentation
C. Psychographic segmentation
D. Behavioral segmentation
24. A coffee shop offers a loyalty program where customers earn points for every purchase. This is an example of:
A. Geographic segmentation
B. Demographic segmentation
C. Psychographic segmentation
D. Behavioral segmentation
25. Which of the following best describes ‘market segmentation’?
A. Dividing a market into distinct groups of buyers with different needs
B. Selling the same product to everyone in the market
C. Creating a new market
D. Ignoring customer differences
26. A company offers a product with similar benefits to competitors but at a lower price. Which positioning strategy is this?
A. More for more
B. More for the same
C. The same for less
D. Less for much less
27. What is the primary goal of differentiation in marketing?
A. To offer the lowest prices in the market
B. To create superior customer value by offering something unique
C. To target all customers in the market
D. To simplify the marketing mix
28. A company decides to focus its marketing efforts on affluent customers in urban areas. Which targeting strategy is this?
A. Undifferentiated marketing
B. Differentiated marketing
C. Concentrated marketing
D. Micromarketing
29. Which of the following is NOT a typical variable used for segmenting consumer markets?
A. Geographic
B. Demographic
C. Psychographic
D. Technological
30. What is the potential danger of positioning a product as ‘the same for less’?
A. Difficulty in justifying the price
B. Unsustainable in the long run if competitors match the price
C. Limited market reach
D. Inability to attract new customers
31. A company uses direct mail to send personalized offers to customers based on their past purchases. This is an example of:
A. Mass marketing.
B. Guerilla marketing.
C. Direct marketing.
D. Product placement.
32. What is a potential ethical concern related to advertising to children?
A. Children are not influenced by advertising.
B. Children may not understand the persuasive intent of advertising.
C. Advertising to children is always beneficial.
D. Children have the same purchasing power as adults.
33. What is the role of a ‘media planner’?
A. To create the creative content of advertisements.
B. To choose the best media platforms for advertising.
C. To manage a company’s public relations.
D. To manage a company’s sales force.
34. A company launches a campaign that aims to create a positive image and handle unfavorable rumors. Which promotional tool is being used?
A. Sales promotion.
B. Advertising.
C. Public relations.
D. Direct marketing.
35. What is ‘noise’ in the context of the communication process?
A. The volume of the advertisement.
B. Interference that causes the message to be received differently than intended.
C. The creative aspects of the advertisement, such as music and visuals.
D. The number of times an advertisement is repeated.
36. Which promotional tool is most effective for creating immediate sales?
A. Public relations.
B. Advertising.
C. Sales promotion.
D. Direct marketing.
37. What is the primary goal of integrated marketing communications (IMC)?
A. To maximize the number of advertisements a customer sees.
B. To create a unified and seamless brand experience for consumers.
C. To use as many different communication channels as possible.
D. To reduce marketing costs by using fewer channels.
38. A company uses mobile marketing to send location-based promotions to customers’ smartphones. This is an example of:
A. Guerrilla marketing.
B. Product placement.
C. Direct marketing.
D. Mass marketing.
39. A company decides to use celebrity endorsements in their advertising campaign. Which element of the communication process is directly involved?
A. Receiver.
B. Message.
C. Encoder.
D. Source.
40. What is ‘product placement’?
A. Placing products in retail stores.
B. Paying to have a product appear in a movie or TV show.
C. Placing products in online advertisements.
D. Placing products in a company’s annual report.
41. What is the objective of ‘reminder advertising’?
A. To inform consumers about a new product.
B. To persuade consumers to purchase a product immediately.
C. To maintain brand awareness.
D. To compare a brand to its competitors.
42. A company uses a ‘percentage-of-sales’ method to determine their advertising budget. What is a major drawback of this method?
A. It is too complex to implement.
B. It views sales as the cause of promotion rather than the result.
C. It always leads to overspending.
D. It ignores the role of advertising.
43. What is the ‘objective-and-task method’ of setting the promotion budget?
A. Setting the budget based on what the company thinks it can afford.
B. Setting the budget to match competitors’ spending.
C. Setting the budget based on objectives and tasks.
D. Setting the budget as a percentage of sales.
44. What is ‘buzz marketing’?
A. A type of advertising that uses loud noises.
B. Cultivating opinion leaders to spread information about a product.
C. Marketing products specifically to bees.
D. Using only social media platforms for marketing.
45. Which media type is best suited for demonstrating a product’s use?
A. Radio.
B. Newspapers.
C. Television.
D. Magazines.
46. Which of the following is a disadvantage of using social media for marketing?
A. High cost per impression.
B. Difficulty in measuring results.
C. Lack of audience reach.
D. Limited control over the brand message.
47. Which of the following is a benefit of using direct marketing?
A. It is always cheaper than advertising.
B. It allows for highly personalized and targeted messages.
C. It reaches a mass audience very quickly.
D. It is easier to measure results than advertising.
48. How does integrated marketing communication relate to customer relationship management (CRM)?
A. IMC replaces the need for CRM.
B. CRM provides data that helps IMC deliver more personalized messages.
C. IMC is solely focused on acquiring new customers, while CRM is focused on retaining existing ones.
D. CRM and IMC are completely unrelated functions.
49. What is the key difference between advertising and public relations?
A. Advertising is always free, while public relations is paid for.
B. Advertising is paid media space, while public relations seeks unpaid media coverage.
C. Advertising is more credible than public relations.
D. Public relations is used for immediate sales, while advertising is for long-term branding.
50. A company decides to use a humorous advertisement to attract attention. Which execution style is being used?
A. Slice of life.
B. Lifestyle.
C. Fantasy.
D. Humor.
51. Which of the following is an example of ‘pull’ promotion strategy?
A. Offering retailers discounts to stock up on a product.
B. Advertising directly to consumers to create demand.
C. Providing sales training to distributors.
D. Giving incentives to sales staff to push a product.
52. Which of the following is NOT a core aspect of integrated marketing communications (IMC)?
A. Ensuring consistent messaging across all touchpoints.
B. Focusing solely on mass advertising campaigns.
C. Coordinating various promotional elements.
D. Delivering a clear, consistent, and compelling message.
53. Which of the following is an example of a ‘push’ promotion strategy?
A. A manufacturer advertising directly to consumers.
B. A retailer offering discounts on a product to its sales staff.
C. A company creating a viral marketing campaign.
D. A brand sponsoring a major sporting event.
54. Which of the following is NOT a role of integrated marketing communications?
A. Building brand awareness.
B. Driving short-term sales.
C. Creating a consistent brand message.
D. Completely eliminating all negative feedback.
55. Which of the following is an example of ‘informative advertising’?
A. An ad that creates a feeling of luxury and aspiration.
B. An ad that highlights a product’s features and benefits.
C. An ad that uses humor to entertain viewers.
D. An ad that compares a product to its competitors.
56. Which of the following is a key advantage of using digital marketing?
A. Lower costs than traditional advertising.
B. Ability to reach a global audience.
C. Precise targeting and measurement.
D. Higher credibility than traditional advertising.
57. A company is deciding whether to use television or social media advertising. What is a key factor they should consider when comparing these media?
A. Television advertising is always cheaper.
B. Social media offers better targeting capabilities.
C. Television advertising is more easily measurable.
D. Social media is always more credible.
58. Which of the following is NOT a major decision when developing an advertising program?
A. Setting advertising objectives.
B. Determining the advertising budget.
C. Evaluating the company’s stock price.
D. Evaluating advertising campaigns.
59. What is the ‘affordable method’ of setting the promotion budget?
A. Setting the budget based on what the company thinks it can afford.
B. Setting the budget to match competitors’ spending.
C. Setting the budget based on objectives and tasks.
D. Setting the budget as a percentage of sales.
60. What is ‘integrated social commerce’?
A. Using social media to drive traffic to e-commerce sites.
B. Selling products directly through social media platforms.
C. Integrating social media with traditional advertising campaigns.
D. Using social media for customer service.
61. What is the primary goal of packaging?
A. To reduce shipping costs.
B. To contain and protect the product.
C. To increase production speed.
D. To simplify the manufacturing process.
62. A company decides to rebrand to appeal to a younger demographic. This is an example of:
A. Co-branding.
B. Brand extension.
C. Brand repositioning.
D. Line extension.
63. What does ‘inseparability’ mean in the context of services?
A. Services cannot be inventoried.
B. Services cannot be distinguished from goods.
C. Services are produced and consumed simultaneously.
D. Services are always of inconsistent quality.
64. What is ‘interactive marketing’?
A. Marketing done by competitors.
B. Marketing that relies on internet advertising.
C. Marketing that emphasizes the interaction between employees and customers.
D. Marketing that is only done in person.
65. Which of the following is an example of a ‘unsought product’?
A. A new smartphone.
B. Life insurance.
C. A cup of coffee.
D. A pair of jeans.
66. A company uses celebrity endorsements to promote its brand. This strategy primarily aims to:
A. Reduce production costs.
B. Increase brand awareness and credibility.
C. Simplify the distribution process.
D. Lower prices for consumers.
67. A company adding new features or services to broaden its offering is an example of:
A. Price skimming.
B. Product line filling.
C. Brand dilution.
D. Downsizing.
68. During which stage of the product life cycle are profits typically highest?
A. Introduction.
B. Growth.
C. Maturity.
D. Decline.
69. A hotel chain implements a rigorous training program for its staff to ensure consistent service quality. This is an attempt to manage:
A. Intangibility.
B. Inseparability.
C. Variability.
D. Perishability.
70. A company offers a longer warranty than its competitors. This is an example of focusing on the:
A. Core product.
B. Actual product.
C. Augmented product.
D. Potential product.
71. What is the purpose of a ‘private brand’ (also known as a store brand)?
A. To compete directly with national brands at a lower price.
B. To exclusively sell products online.
C. To promote luxury goods.
D. To export products to foreign markets.
72. Which of the following is a way to manage service ‘variability’?
A. Standardizing the service-delivery process.
B. Increasing prices during peak demand.
C. Reducing customer contact.
D. Limiting service offerings.
73. Which of the following is NOT a core customer value consideration when developing a product?
A. The actual product features and design.
B. The augmented product aspects like warranty and support.
C. The core benefit the customer truly seeks.
D. The competitor’s pricing strategy.
74. What typically happens to sales during the ‘decline’ stage of the product life cycle?
A. Sales increase rapidly.
B. Sales remain stable.
C. Sales fall off sharply.
D. Sales fluctuate unpredictably.
75. What is ‘brand equity’?
A. The total sales revenue of a brand.
B. The financial value of a company’s assets.
C. The differential effect that knowing the brand name has on customer response.
D. The market share a brand controls.
76. What is the purpose of ‘concept testing’ in new product development?
A. To determine the cost of manufacturing.
B. To test the actual product’s performance.
C. To evaluate consumer reactions to a product idea before investing heavily.
D. To select the best distribution channel.
77. Which of the following is an example of internal marketing?
A. Advertising to consumers.
B. Training and motivating customer-contact employees.
C. Conducting market research.
D. Developing a new product.
78. A restaurant offers a discount during off-peak hours. This is an attempt to address which service characteristic?
A. Intangibility.
B. Inseparability.
C. Variability.
D. Perishability.
79. Which of the following is a potential risk of brand extension?
A. Decreased production costs.
B. Enhanced brand image.
C. Brand dilution.
D. Increased customer loyalty.
80. Which of the following is an example of ‘style obsolescence’?
A. A computer that breaks down due to a hardware failure.
B. A car that is no longer fuel-efficient.
C. Clothing that is no longer fashionable.
D. A building that is structurally unsound.
81. What is ‘perishability’ in the context of services?
A. Services cannot be stored for later use.
B. Services are always of low quality.
C. Services are difficult to price.
D. Services are easily copied by competitors.
82. What is the primary difference between a product and a service?
A. Services are tangible, while products are intangible.
B. Products are tangible, while services are intangible.
C. Products are consumed immediately, while services are not.
D. Services are always more expensive than products.
83. What is the key advantage of co-branding?
A. Reduced marketing costs.
B. Increased production efficiency.
C. Combined brand equity and broader appeal.
D. Simplified distribution channels.
84. A company decides to ‘harvest’ a product. What does this mean?
A. To increase advertising spending.
B. To reduce costs and extract maximum profit before exiting the market.
C. To launch a new version of the product.
D. To expand into new geographic markets.
85. A company launches a new product in a limited geographic area to test its marketing mix. This is called:
A. Test marketing.
B. Commercialization.
C. Idea screening.
D. Business analysis.
86. Which of the following is NOT a characteristic of a service?
A. Intangibility.
B. Perishability.
C. Variability.
D. Tangibility.
87. What is a typical marketing objective during the ‘maturity’ stage of the product life cycle?
A. To create product awareness.
B. To maximize market share.
C. To harvest profits.
D. To build selective demand.
88. Which of the following is NOT a stage in the new product development process?
A. Idea generation.
B. Market penetration.
C. Concept testing.
D. Business analysis.
89. A ‘shopping product’ is defined by which characteristic?
A. Frequent purchase with little planning.
B. High price and exclusive distribution.
C. Customer comparison of attributes like price and quality.
D. Strong brand loyalty and high involvement.
90. Which of the following is the best example of a convenience product?
A. A luxury car.
B. A custom-made suit.
C. A candy bar.
D. A major appliance.
91. A company is launching a new line of organic baby food. Which stage of the product life cycle should they focus on educating consumers about the benefits of organic food?
A. Decline
B. Maturity
C. Growth
D. Introduction
92. What happens during ‘concept development and testing’?
A. The company evaluates the business attractiveness of the product idea.
B. New product ideas are screened to spot good ideas and drop poor ones as soon as possible.
C. A detailed version of the new product idea is stated in meaningful consumer terms, and then tested with a group of target consumers.
D. The company introduces the product into realistic market settings.
93. What is ‘brand equity’?
A. The total assets of a company.
B. The financial value of a brand’s stock.
C. The differential effect that knowing the brand name has on customer response to the product or its marketing.
D. The number of employees working for a brand.
94. What is a characteristic of the ‘maturity’ stage of the product life cycle?
A. Rapidly increasing sales and profits.
B. Intense competition and price wars.
C. Minimal competition and high profit margins.
D. Declining sales and profits.
95. What does ‘inseparability’ mean in the context of services?
A. Services can be easily separated from the provider.
B. Services are produced and consumed at the same time and cannot be separated from their providers.
C. Services are always identical in quality.
D. Services can be easily standardized.
96. When a company offers a basic product model with additional features available at an extra cost, this is an example of:
A. Bundling
B. Versioning
C. Captive product pricing
D. Optional product pricing
97. A company decides to use a ‘private brand’. What does this mean?
A. The brand is exclusive and not available to the general public.
B. The brand is owned by a reseller.
C. The brand is a non-profit organization.
D. The brand is owned and marketed by the manufacturer.
98. A smartphone company is facing intense competition and declining profit margins. Which stage of the product life cycle is the smartphone market likely in?
A. Introduction
B. Growth
C. Maturity
D. Decline
99. What is the main goal of the ‘introduction’ stage of the product life cycle?
A. Maximize profit and maintain market share.
B. Establish a new market and gain initial acceptance.
C. Reduce costs and streamline production.
D. Compete aggressively to eliminate competitors.
100. What is ‘product mix width’?
A. The average price of all products sold by a company.
B. The total number of items a company sells.
C. The number of product lines a company offers.
D. The depth of a particular product line.
101. What is the primary focus of Chapter 7 in a marketing textbook likely to be?
A. Developing pricing strategies for new products.
B. Analyzing the competitive landscape and market share.
C. Understanding the product life cycle and new product development.
D. Creating effective advertising campaigns.
102. What is ‘new product development’?
A. Modifying an existing product.
B. The development of original products, product improvements, product modifications, and new brands through the firm’s own product development efforts.
C. Copying a competitor’s product.
D. Selling existing products in new markets.
103. A restaurant offers a ‘loyalty program’ to increase customer retention. This strategy primarily addresses which service characteristic?
A. Intangibility
B. Perishability
C. Inseparability
D. Variability
104. What is ‘test marketing’?
A. Introducing the product into realistic market settings.
B. Screening new product ideas.
C. Evaluating the business attractiveness of the product idea.
D. Developing a detailed version of the new product idea.
105. A local bakery is considering adding a new type of gluten-free bread to its product line. What should be their first step in the new product development process?
A. Test marketing the bread in a local store.
B. Generating ideas for different types of gluten-free bread.
C. Conducting a business analysis to estimate potential profits.
D. Developing a prototype of the bread.
106. Which of the following best illustrates ‘brand extension’?
A. Introducing a new product in a category the brand already serves.
B. Using an existing brand name for a new product category.
C. Creating a new brand name for an existing product.
D. Discontinuing a product line.
107. What is ‘brand positioning’?
A. The physical location of a brand’s headquarters.
B. Creating a clear, distinctive, and desirable place in the target consumer’s mind relative to competing products.
C. The process of naming a new brand.
D. The legal protection of a brand name.
108. What is ‘product mix depth’?
A. The number of versions offered of each product in the line.
B. The number of product lines a company offers.
C. The average price of products in a product line.
D. The total sales revenue generated by a product line.
109. In the ‘growth’ stage of the product life cycle, what is a key marketing objective?
A. Focusing on niche markets.
B. Building brand preference and increasing market share.
C. Cutting prices to attract price-sensitive customers.
D. Reducing advertising spending.
110. What is a ‘service’ in marketing terms?
A. Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.
B. A tangible product that provides a benefit to consumers.
C. The physical infrastructure that supports a business.
D. The warranty offered on a product.
111. What is the first step in the new product development process?
A. Market testing.
B. Idea generation.
C. Concept development and testing.
D. Business analysis.
112. A software company releases a new version of its flagship product with minor improvements. This is an example of:
A. Radical innovation
B. Incremental innovation
C. Disruptive innovation
D. Imitation
113. What is ‘variability’ in the context of services?
A. Services are always the same in quality.
B. Service quality depends on who provides them and when, where, and how they are provided.
C. Services are intangible.
D. Services are easily standardized.
114. What is ‘commercialization’ in the new product development process?
A. Evaluating the business attractiveness of the product idea.
B. Screening new product ideas.
C. Introducing a new product into the market.
D. Generating new product ideas.
115. What is a common strategy for a product in the ‘decline’ stage?
A. Aggressively expand into new markets.
B. Maintain the product with minimal marketing effort.
C. Invest heavily in product innovation.
D. Increase prices to maximize short-term profits.
116. Which of the following is NOT typically considered a stage in the product life cycle?
A. Introduction
B. Growth
C. Maturity
D. Rejection
117. What is a ‘product line’?
A. A group of closely related products that are sold to different customer groups.
B. A group of closely related products that have similar functions, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.
C. All the products a company sells.
D. A single product sold by a company.
118. A company decides to discontinue a product line that is consistently losing money. This is an example of:
A. Harvesting
B. Product diversification
C. Product line contraction
D. Market penetration
119. Which of the following is a characteristic of services?
A. Tangibility
B. Perishability
C. Homogeneity
D. Standardization
120. Which of the following is the MOST important factor when considering a new product launch?
A. The number of features the product has.
B. The product’s alignment with the company’s mission and resources and a clear understanding of customer needs.
C. The product’s price point.
D. The amount of advertising budget available.
121. What is a ‘private brand’?
A. A brand that is owned by a manufacturer.
B. A brand that is created and owned by a reseller of a product or service.
C. A brand that is only sold online.
D. A brand that is exclusive to a certain region.
122. A company decides to offer its existing product under a new brand name. What branding strategy are they using?
A. Line extension.
B. Brand extension.
C. Multibrands.
D. New brands.
123. How does a ‘fad’ differ from a ‘fashion’ in the product life cycle?
A. A fad has a longer life cycle than a fashion.
B. A fad experiences a temporary period of unusually high sales and then declines quickly, while a fashion is a currently accepted or popular style in a given field.
C. A fad is a basic and distinctive mode of expression, while a fashion is a style that is always popular.
D. There is no difference between a fad and a fashion.
124. What is ‘style’ in the context of product life cycles?
A. A basic and distinctive mode of expression.
B. A currently accepted or popular style.
C. A temporary period of unusually high sales driven by immediate popularity.
D. A product with a very short life cycle.
125. During which stage of the product life cycle do sales typically peak?
A. Introduction.
B. Growth.
C. Maturity.
D. Decline.
126. What is the potential risk associated with ‘product line stretching’?
A. Cannibalization of existing products.
B. Reduced brand awareness.
C. Increased production costs.
D. Simplified supply chain management.
127. Which of the following is NOT a core customer value consideration when developing a product?
A. Determining the product’s features.
B. Understanding the customer’s needs.
C. Figuring out the production costs.
D. Identifying the benefits customers seek.
128. What is the primary difference between a product line and a product mix?
A. A product line is a group of closely related products, while a product mix is the set of all product lines and items that a particular seller offers for sale.
B. A product line includes only tangible goods, while a product mix includes both tangible goods and services.
C. A product line is targeted at a specific market segment, while a product mix targets multiple segments.
D. There is no difference; the terms are interchangeable.
129. Which stage of the product life cycle is characterized by declining sales and profits?
A. Introduction.
B. Growth.
C. Maturity.
D. Decline.
130. A company decides to discontinue a product that is in the decline stage. What is this strategy called?
A. Harvesting.
B. Divesting.
C. Maintaining.
D. Boosting.
131. Which of the following best describes ‘product line filling’?
A. Adding more items within the present range of the product line.
B. Lengthening a product line beyond its current range.
C. Reducing the number of items in a product line.
D. Introducing a completely new product line.
132. What is the key challenge in marketing new products?
A. Generating new product ideas.
B. Reducing production costs.
C. Overcoming consumer inertia and adoption barriers.
D. Securing funding for development.
133. What is ‘brand positioning’?
A. The location of a product in a store.
B. The process of creating a unique and valued place in the target customer’s mind relative to competitors.
C. The price range of a product.
D. The distribution channels used to sell a product.
134. Which of the following is NOT a stage in the new product development process?
A. Idea generation.
B. Market analysis.
C. Concept testing.
D. Commercialization.
135. Which adopter group is the first to adopt a new product?
A. Innovators.
B. Early adopters.
C. Early majority.
D. Late majority.
136. Which of the following is NOT a factor that influences the rate of adoption of a new product?
A. Relative advantage.
B. Compatibility.
C. Complexity.
D. Production cost.
137. Which of the following is the purpose of ‘test marketing’?
A. To generate ideas for new products.
B. To test the product concept with consumers.
C. To test the product and marketing program in a realistic market setting.
D. To analyze the financial viability of the product.
138. A hotel is offering discounted rates on rooms during off-peak seasons. Which service characteristic are they trying to manage?
A. Intangibility.
B. Inseparability.
C. Variability.
D. Perishability.
139. What is ‘inseparability’ in the context of service characteristics?
A. Services cannot be seen, tasted, felt, heard, or smelled before purchase.
B. Services cannot be separated from their providers.
C. The quality of services may greatly vary depending on who provides them and when, where, and how.
D. Services cannot be stored for later sale or use.
140. Which service characteristic refers to the variability in quality of services?
A. Intangibility.
B. Inseparability.
C. Variability.
D. Perishability.
141. What is a key characteristic of ‘early adopters’?
A. They are risk-averse.
B. They are opinion leaders.
C. They wait for widespread adoption before trying a product.
D. They are skeptical of new technologies.
142. What happens during the ‘concept testing’ stage of new product development?
A. The company generates a large number of new product ideas.
B. The company tests the new product concept with a group of target consumers.
C. The company analyzes the financial viability of the new product.
D. The company launches the new product to the market.
143. What is the primary marketing objective during the ‘growth’ stage of the product life cycle?
A. To create product awareness and trial.
B. To maximize market share.
C. To maximize profit while defending market share.
D. To reduce expenditure and milk the brand.
144. What does ‘perishability’ mean in the context of services marketing?
A. Services are easily damaged.
B. Services cannot be stored for later use.
C. Services are always expensive.
D. Services are not customizable.
145. Which of the following is NOT a level of brand equity?
A. Brand awareness.
B. Brand loyalty.
C. Brand image.
D. Brand licensing.
146. A company decides to add a new product line to its existing offerings. What dimension of the product mix is it changing?
A. Depth.
B. Length.
C. Width.
D. Consistency.
147. A company introduces a new feature to its existing software product. This is an example of:
A. A disruptive innovation.
B. Continuous innovation.
C. Dynamically continuous innovation.
D. A fad.
148. What does ‘relative advantage’ refer to in the context of product adoption?
A. The cost of the product compared to competitors.
B. The degree to which the innovation appears superior to existing products.
C. The complexity of using the product.
D. The compatibility of the product with existing values and experiences.
149. Which of the following is an example of a service that is considered ‘pure’?
A. A restaurant meal.
B. Financial consulting.
C. A tailored suit.
D. Air travel.
150. What is a ‘brand’ in marketing terms?
A. A logo or symbol.
B. A name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors.
C. The legal protection of a product’s name.
D. A short slogan used in advertising.
