1. What is the purpose of coding data in qualitative research?
A. To convert qualitative data into numerical data
B. To identify themes and patterns in the data
C. To ensure anonymity of participants
D. To reduce the sample size
2. What is a potential ethical concern when conducting marketing research?
A. Using statistical software
B. Obtaining informed consent from participants
C. Intruding on consumer privacy without their knowledge or consent
D. Analyzing data using appropriate methods
3. A marketing manager wants to know if a new packaging design will lead to increased sales. Which research approach is best?
A. Observational research
B. Experimental research
C. Survey research
D. Focus group research
4. Which of the following is an example of ethnographic research?
A. Conducting a telephone survey
B. Observing consumers using a product in their own homes
C. Running a controlled experiment in a lab
D. Analyzing sales data
5. A restaurant owner wants to know if a new advertising campaign is bringing in more customers. They track the number of customers before and after the campaign. What type of research is this?
A. Exploratory
B. Descriptive
C. Causal
D. Qualitative
6. What is the primary goal of marketing intelligence?
A. To conduct primary research
B. To track and analyze publicly available information about competitors and the market environment
C. To manage internal company data
D. To develop new product ideas
7. A company uses social media to monitor conversations about its brand and products. This is an example of:
A. Marketing research
B. Marketing intelligence
C. Internal company records
D. Experimental research
8. Which of the following is an example of a secondary data source?
A. A focus group
B. A customer survey
C. A government report
D. An experiment
9. What is the purpose of experimental research?
A. To observe consumers in their natural habitat
B. To gather preliminary information
C. To determine cause-and-effect relationships
D. To describe market characteristics
10. What is the role of customer relationship management (CRM) in gathering marketing information?
A. To conduct market research studies
B. To manage detailed information about individual customers
C. To analyze competitor strategies
D. To develop new product concepts
11. A small business owner is trying to understand why sales have declined. They start by talking to a few long-time customers. What type of research are they initially conducting?
A. Descriptive
B. Causal
C. Exploratory
D. Experimental
12. A company wants to understand the needs and motivations of its customers. Which research method would be MOST appropriate?
A. A large-scale quantitative survey
B. Focus groups and in-depth interviews
C. Analyzing sales data
D. Conducting an experiment
13. What is neuromarketing?
A. Marketing to specific demographic groups
B. Using brain scanning to understand consumer responses to marketing stimuli
C. Marketing that relies on viral content
D. Marketing that focuses on environmental sustainability
14. What is the main purpose of data mining?
A. To collect primary data
B. To analyze competitor strategies
C. To discover patterns and insights in large datasets
D. To conduct surveys
15. A company wants to understand how a price increase will affect sales. Which type of research would be most appropriate?
A. Exploratory research
B. Descriptive research
C. Causal research
D. Qualitative research
16. A marketing manager is reviewing sales reports from the past year to identify trends. What component of the MIS is being utilized?
A. Marketing intelligence
B. Marketing research
C. Internal company records
D. Marketing analytics
17. Which type of research aims to describe things such as market potential, demographics, or consumer attitudes?
A. Exploratory research
B. Descriptive research
C. Causal research
D. Experimental research
18. Which type of research is best suited for exploring vague problem definitions and generating hypotheses?
A. Descriptive research
B. Causal research
C. Exploratory research
D. Experimental research
19. A company decides to conduct a survey but only asks people who are already customers. What type of bias is this?
A. Random sampling bias
B. Non-response bias
C. Selection bias
D. Confirmation bias
20. What is the biggest disadvantage of using mail questionnaires for data collection?
A. High cost
B. Low response rate
C. Lack of flexibility
D. Difficulty in reaching a wide audience
21. Which of the following is NOT a characteristic of good marketing research?
A. Scientific rigor
B. Objectivity
C. Relevance
D. Bias confirmation
22. Which of the following is NOT a key component of a marketing information system (MIS)?
A. Internal company records
B. Marketing intelligence
C. Marketing research
D. Personal opinions of the CEO
23. When is it most appropriate to use observational research?
A. When you need to understand the ‘why’ behind consumer behavior
B. When you want to test a specific hypothesis
C. When you want to gather data without directly interacting with consumers
D. When you need to collect large amounts of quantitative data
24. What is a major advantage of using online surveys for data collection?
A. High cost per respondent
B. Slow data collection
C. Ability to reach a geographically dispersed sample quickly and efficiently
D. Limited sample size
25. What is ‘Big Data’ in the context of marketing information?
A. A small, focused dataset
B. Extremely large and complex datasets that are difficult to analyze with traditional methods
C. Data collected only from internal company records
D. Data that is only used for academic research
26. A company is trying to decide whether to launch a new product. They conduct a survey to gauge consumer interest. What type of research is this?
A. Exploratory
B. Descriptive
C. Causal
D. Experimental
27. What is the purpose of a ‘sample’ in marketing research?
A. To analyze all members of the population
B. To select a representative subset of the population to study
C. To conduct exploratory research
D. To conduct causal research
28. Which type of research is used to test hypotheses about cause-and-effect relationships?
A. Exploratory research
B. Descriptive research
C. Causal research
D. Qualitative research
29. What is the first step in the marketing research process?
A. Developing the research plan
B. Defining the problem and research objectives
C. Implementing the research plan
D. Analyzing the data
30. What is a focus group?
A. A type of experiment
B. A data analysis technique
C. A small group of people brought together for an in-depth discussion on a topic
D. A statistical method
31. Which of the following is an example of ‘channel differentiation’?
A. Providing exceptional customer service.
B. Having a wider distribution network than competitors.
C. Creating a memorable brand logo.
D. Offering a product with unique features.
32. A business using concentrated marketing is MOST likely to:
A. Try to be all things to all people.
B. Focus on capturing a large share of a small market.
C. Ignore competitive pressures.
D. Offer a wide variety of products.
33. What is the primary goal of ‘competitive advantage’ in positioning?
A. To offer the lowest prices in the market.
B. To create a product that is identical to competitors’ offerings.
C. To differentiate the brand by providing superior value relative to competitors.
D. To avoid marketing to specific target markets.
34. A brand’s ‘value proposition’ is:
A. The set of benefits or values it promises to deliver to consumers to satisfy their needs.
B. The price point at which a product is sold.
C. The physical characteristics of a product.
D. The distribution channels used to sell a product.
35. Segmenting the market based on ‘occasions, benefits, user status, usage rate, and loyalty status’ is an example of:
A. Geographic segmentation
B. Demographic segmentation
C. Psychographic segmentation
D. Behavioral segmentation
36. Which of the following is a requirement for effective segmentation?
A. Segment must be immeasurable.
B. Segment must be inaccessible.
C. Segment must be substantial.
D. Segment must be unstable.
37. When evaluating different market segments, a firm must look at which three factors?
A. Segment size and growth, segment structural attractiveness, and company objectives and resources.
B. Product, price and promotion
C. Customers, competitors and company
D. Political, economic and social
38. Which of the following is the first step in the target marketing process?
A. Differentiation
B. Positioning
C. Segmentation
D. Targeting
39. A firm is assessing the ‘structural attractiveness’ of a market segment. Which of the following is LEAST relevant to this analysis?
A. The presence of many strong and aggressive competitors.
B. The existence of substitute products.
C. The power of buyers in the segment.
D. The company’s mission statement.
40. What is ‘micromarketing’?
A. Targeting a broad market with a generic product.
B. Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments.
C. Focusing on a limited number of large accounts.
D. Ignoring individual customer preferences.
41. A company uses a ‘more for more’ positioning strategy. What does this typically imply?
A. Offering the lowest prices in the market.
B. Providing the most upscale product or service and charging a higher price to cover the higher costs.
C. Offering a good product at a low price.
D. Providing the same benefits as competitors but at a lower price.
42. What is a ‘unique selling proposition’ (USP)?
A. A pricing strategy that focuses on offering the lowest prices.
B. A product feature that is common among all competitors.
C. A distinct benefit that differentiates a product from its competitors.
D. A marketing campaign that targets all possible customers.
43. Using ‘age and life-cycle stage’ as a segmentation variable is an example of:
A. Geographic segmentation
B. Demographic segmentation
C. Psychographic segmentation
D. Behavioral segmentation
44. Which of the following is NOT a major segmentation variable for consumer markets?
A. Geographic
B. Demographic
C. Psychographic
D. Technographic
45. Which of the following is a disadvantage of using an undifferentiated marketing strategy?
A. It is very expensive to implement.
B. It ignores the diverse needs of customers.
C. It requires extensive market research.
D. It is difficult to reach a large audience.
46. What does ‘overpositioning’ refer to?
A. Failing to position the company at all.
B. Giving buyers too narrow a picture of the company.
C. Creating a product with too many features.
D. Positioning the product too high in the market.
47. What is the risk of positioning a product based solely on ‘more for the same’?
A. It is always a sustainable competitive advantage.
B. Competitors can easily copy the strategy.
C. Customers are always willing to pay more for added benefits.
D. It guarantees high profit margins.
48. What is a ‘perceptual map’ used for in marketing?
A. To visually represent consumer perceptions of different brands or products on key attributes.
B. To track the physical movement of products through the supply chain.
C. To analyze demographic trends in a specific geographic area.
D. To measure the effectiveness of advertising campaigns.
49. What is ‘VALS’ framework primarily used for?
A. Geographic segmentation
B. Demographic segmentation
C. Psychographic segmentation
D. Behavioral segmentation
50. Which of the following is the MOST accurate definition of ‘market segmentation’?
A. Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes.
B. Creating different brand images to appeal to a wide range of customers.
C. Aggregating all potential customers into a single, undifferentiated group.
D. Focusing marketing efforts on the largest possible segment of the market.
51. What does ‘differentiated marketing’ involve?
A. Targeting only one segment of the market.
B. Targeting several market segments and designing separate offers for each.
C. Ignoring segment differences and targeting the whole market with one offer.
D. Focusing on a very small niche market.
52. Which of the following is an example of ‘local marketing’?
A. A national television advertising campaign.
B. A global social media strategy.
C. A customized email campaign targeting residents within a 5-mile radius of a store.
D. Selling products exclusively online.
53. A company claims its product offers ‘the best quality’ in the market. What type of differentiation is it pursuing?
A. Service differentiation.
B. Channel differentiation.
C. Image differentiation.
D. Product differentiation.
54. What is ‘concentrated marketing’?
A. Targeting only one segment of the market.
B. Targeting several market segments and designing separate offers for each.
C. Ignoring segment differences and targeting the whole market with one offer.
D. Attempting to appeal to all customers with a wide range of products.
55. A company that decides to serve several market segments and designs separate offers for each is practicing:
A. Mass marketing.
B. Niche marketing.
C. Differentiated marketing.
D. Micromarketing.
56. Which of the following is an example of ‘image differentiation’?
A. Offering faster delivery times than competitors.
B. Having a well-known and respected brand name.
C. Providing customized products to individual customers.
D. Using higher quality materials in production.
57. What does ‘underpositioning’ refer to?
A. Failing to position the company at all.
B. Giving buyers too narrow a picture of the company.
C. Creating a product with too many features.
D. Failing to actually position the brand in the customer’s minds.
58. When positioning a product, what should a company avoid?
A. Underpositioning
B. Overpositioning
C. Confused positioning
D. All of the above
59. What does ‘confused positioning’ refer to?
A. Failing to position the company at all.
B. Giving buyers too narrow a picture of the company.
C. Leaving buyers with a confused image of a company.
D. Positioning the product too high in the market.
60. What is ‘product positioning’?
A. The way a product is defined by consumers on important attributes—the place the product occupies in consumers’ minds relative to competing products.
B. The physical location of a product in a retail store.
C. The price point of a product.
D. The distribution channels used to sell a product.
61. A small business owner is on a tight budget but needs to gather information about local competitors. What is the most cost-effective way to gather marketing intelligence?
A. Hire a marketing research firm.
B. Purchase expensive syndicated data reports.
C. Monitor online reviews, social media, and competitors’ websites.
D. Conduct a large-scale survey.
62. A company uses its sales data to identify its most profitable customers. This is an example of using:
A. Marketing intelligence
B. Marketing research
C. Internal company records
D. Experimental research
63. What does ‘sample’ refer to in the context of marketing research?
A. The entire population of interest
B. A segment of the population selected for marketing research to represent the population as a whole
C. A statistical technique used to analyze data
D. A type of research instrument
64. How can companies use social media to gather marketing intelligence?
A. By ignoring customer feedback on social media.
B. By monitoring brand mentions, analyzing sentiment, and identifying trends.
C. By only posting promotional content.
D. By shutting down negative comments.
65. What is the main advantage of using online surveys for marketing research?
A. Higher response rates compared to traditional surveys
B. Lower cost and faster turnaround compared to traditional surveys
C. Ability to observe respondents’ body language
D. Greater control over the sample
66. Which of the following sampling methods involves giving each member of the population an equal chance of being selected?
A. Convenience sampling
B. Judgment sampling
C. Quota sampling
D. Random sampling
67. How does ‘big data’ impact marketing decision-making?
A. It makes marketing decisions simpler and faster
B. It provides a smaller, more manageable amount of data for analysis
C. It offers a large volume of complex data that can provide deeper customer insights but requires advanced analytical techniques
D. It eliminates the need for marketing research
68. Which research method involves gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior?
A. Observation
B. Experiment
C. Survey
D. Ethnographic research
69. What is a potential ethical concern in marketing research?
A. Using statistical analysis to interpret data.
B. Protecting respondents’ privacy and confidentiality.
C. Obtaining informed consent from participants.
D. Using research findings to improve marketing strategies.
70. Which of the following is an example of ‘marketing analytics’?
A. Creating a new product
B. Analyzing website traffic to understand customer behavior
C. Hiring a new marketing manager
D. Writing a press release
71. Which of the following is NOT a benefit of having a well-defined marketing information system (MIS)?
A. Improved decision-making
B. Better understanding of customer needs
C. Increased marketing costs
D. More effective marketing strategies
72. Which of the following is a limitation of secondary data?
A. It is always expensive to obtain.
B. It is always perfectly suited to the research question.
C. It may not be relevant or accurate for the current research needs.
D. It is always up-to-date.
73. A marketing manager wants to test the effectiveness of two different advertising campaigns. Which research method would be most suitable?
A. Survey research
B. Experimental research
C. Observational research
D. Focus group research
74. A company is launching a new line of organic snacks. They want to understand the perceptions and preferences of health-conscious consumers. Which research method would provide the richest qualitative data?
A. Online survey with multiple-choice questions
B. Large-scale quantitative survey
C. Focus groups with health-conscious consumers
D. Analysis of sales data
75. A company is expanding into a new international market. What type of research is crucial to understand the cultural nuances and consumer behavior in that market?
A. Secondary data analysis
B. Large-scale quantitative survey
C. Ethnographic research and in-depth interviews with local consumers
D. Experimental research
76. What is the role of a ‘customer insights team’ in a company?
A. To develop advertising campaigns
B. To manage the company’s social media presence
C. To collect and analyze customer data to gain insights into customer behavior and preferences
D. To handle customer service inquiries
77. What is the purpose of exploratory research?
A. To test hypotheses about cause-and-effect relationships
B. To gather preliminary information that will help define problems and suggest hypotheses
C. To describe the size and composition of the market
D. To measure customer satisfaction
78. Which research method involves observing customers in their natural environment?
A. Survey research
B. Experimental research
C. Online marketing research
D. Ethnographic research
79. A restaurant owner notices that customer satisfaction scores have dropped significantly in the last month. What is the first step they should take to address this issue using marketing research?
A. Implement a new advertising campaign.
B. Define the problem and research objectives to understand the reasons for the decline.
C. Offer discounts and promotions to attract more customers.
D. Fire the staff.
80. Which research approach is best suited for gathering descriptive information?
A. Exploratory research
B. Descriptive research
C. Causal research
D. Qualitative research
81. A marketing manager wants to understand the cause-and-effect relationship between price changes and sales volume. Which type of research is most appropriate?
A. Exploratory research
B. Descriptive research
C. Causal research
D. Qualitative research
82. What is the primary goal of marketing intelligence?
A. To conduct surveys and focus groups
B. To track competitors’ activities and gather external information
C. To analyze internal sales data
D. To create advertising campaigns
83. A company wants to understand how customers use their product in their daily lives. Which research method would be most appropriate?
A. Survey research
B. Experimental research
C. Ethnographic research
D. Focus group research
84. What is a ‘focus group’ in marketing research?
A. A statistical analysis technique
B. A group of people who are experts in a particular industry
C. A small group of people brought together for an in-depth discussion on a topic
D. A type of online survey
85. A company wants to predict future sales based on historical data. Which analytical technique would be most helpful?
A. Focus group research
B. Regression analysis
C. Ethnographic research
D. Observational research
86. What is the first step in the marketing research process?
A. Developing the research plan
B. Defining the problem and research objectives
C. Implementing the research plan
D. Interpreting and reporting the findings
87. A company is deciding whether to launch a new product. They conduct marketing research and discover that 70% of potential customers are interested in the product. What should they do?
A. Immediately launch the product nationwide.
B. Conduct further research to understand customer needs and competitive landscape before launching.
C. Abandon the product idea because 70% is not a high enough percentage.
D. Launch the product in a small test market first.
88. A non-profit organization wants to understand the impact of its recent fundraising campaign. What metrics should they track to evaluate its effectiveness?
A. Number of employees
B. Website design
C. Donation amount, donor acquisition cost, and donor retention rate
D. Competitor’s marketing budget
89. Which type of data is collected through surveys, experiments, and observations?
A. Secondary data
B. Primary data
C. Internal data
D. Syndicated data
90. Which of the following is NOT a key component of a marketing information system (MIS)?
A. Internal company records
B. Marketing intelligence
C. Marketing research
D. Public relations campaigns
91. A company exaggerates the performance of its product in its advertising. This is an example of:
A. Informative advertising.
B. Puffery.
C. Deceptive advertising.
D. Comparative advertising.
92. Which ethical framework focuses on the greatest good for the greatest number?
A. Deontology.
B. Utilitarianism.
C. Egoism.
D. Virtue ethics.
93. What is the role of the Federal Trade Commission (FTC) in regulating marketing practices?
A. To promote unethical marketing practices.
B. To protect consumers from deceptive and unfair marketing practices.
C. To help companies maximize their profits.
D. To regulate international trade.
94. A company advertises its product as ‘organic’ but uses synthetic pesticides in its production. This is an example of:
A. Sustainable marketing.
B. Greenwashing.
C. Socially responsible marketing.
D. Cause-related marketing.
95. Which of the following is a potential consequence of unethical marketing practices?
A. Increased brand loyalty.
B. Enhanced company reputation.
C. Loss of customer trust and negative publicity.
D. Improved employee morale.
96. What is the primary focus of marketing ethics?
A. Maximizing profits at all costs.
B. Balancing organizational goals with societal well-being.
C. Complying with all legal regulations.
D. Creating the most persuasive advertising campaigns.
97. What is the ethical concern surrounding ‘stealth marketing’?
A. It is too expensive to implement effectively.
B. It deceives consumers by not revealing the marketing intent.
C. It is only effective for luxury brands.
D. It is too difficult to measure the results.
98. A company uses emotional appeals in its advertising to manipulate consumers into buying its product. This is an example of:
A. Persuasive marketing.
B. Ethical marketing.
C. Manipulative marketing.
D. Informative marketing.
99. What does ‘caveat emptor’ mean in the context of marketing?
A. Let the seller beware.
B. Let the buyer beware.
C. The customer is always right.
D. Quality is remembered long after the price is forgotten.
100. A clothing company uses sweatshop labor to produce its goods but donates a small percentage of its profits to charity. This is an example of:
A. Ethical marketing.
B. Socially responsible marketing.
C. Moral licensing.
D. Cause-related marketing.
101. A company targets children with advertisements for unhealthy snacks. This raises ethical concerns about:
A. Product placement.
B. Consumer sovereignty.
C. Vulnerable populations.
D. Market segmentation.
102. A company creates a fake online review to boost its product’s ratings. This is an example of:
A. Ethical marketing.
B. Deceptive marketing.
C. Guerrilla marketing.
D. Relationship marketing.
103. What is ‘greenwashing’ in marketing?
A. Promoting environmentally friendly products.
B. Exaggerating or falsely claiming a product’s environmental benefits.
C. Implementing sustainable business practices.
D. Partnering with environmental organizations.
104. Which ethical principle emphasizes treating all customers fairly and equally?
A. Justice.
B. Beneficence.
C. Autonomy.
D. Non-maleficence.
105. What is the ethical responsibility of marketers regarding product safety?
A. To prioritize profits over safety concerns.
B. To ensure products are safe for their intended use and to warn consumers of potential risks.
C. To only comply with minimum safety standards.
D. To shift the responsibility for safety to the consumer.
106. What is ‘bait-and-switch’ advertising?
A. Offering a discount on a product for a limited time.
B. Advertising a product at a low price, then claiming it’s out of stock and offering a more expensive alternative.
C. Bundling products together at a reduced price.
D. Using celebrity endorsements to promote a product.
107. What is the role of a code of ethics in a marketing organization?
A. To maximize profits regardless of ethical implications.
B. To provide guidelines for ethical behavior and decision-making.
C. To solely comply with legal requirements.
D. To promote aggressive sales tactics.
108. A company discovers its product has a safety flaw but continues to sell it without informing customers. This is a violation of:
A. Consumer rights.
B. Product liability.
C. Ethical marketing principles.
D. All of the above.
109. What is the primary goal of sustainable marketing?
A. To maximize short-term profits.
B. To meet the needs of current consumers without compromising the ability of future generations to meet their own needs.
C. To use up resources as quickly as possible.
D. To ignore environmental concerns.
110. What is the main difference between ethics and laws in marketing?
A. Ethics are legally enforceable, while laws are not.
B. Ethics are moral principles, while laws are rules enforced by a governing body.
C. Ethics are only relevant to non-profit organizations.
D. Laws are based on personal opinions, while ethics are based on facts.
111. Which of the following is an example of ethical marketing communication?
A. Using vague and misleading language to attract customers.
B. Clearly stating the product’s benefits and limitations.
C. Creating a false sense of urgency to pressure customers into buying.
D. Withholding important information about the product.
112. Which of the following is an example of deceptive advertising?
A. A car company claiming ‘best in class’ based on independent reviews.
B. A weight loss product advertising ‘lose 10 pounds in a week’ without scientific evidence.
C. A clothing store advertising a ‘50% off’ sale for a limited time.
D. A software company offering a free trial of its product.
113. Which of the following is considered an ethical concern regarding data privacy?
A. Collecting customer data to personalize marketing messages.
B. Selling customer data to third parties without consent.
C. Using cookies to track website traffic.
D. Offering discounts to customers who provide their email addresses.
114. A pharmaceutical company runs ads promoting a new drug without fully disclosing potential side effects. This is an example of:
A. Transparent marketing.
B. Deceptive advertising.
C. Informative advertising.
D. Comparative advertising.
115. What is the meaning of ‘puffery’ in advertising?
A. Factual claims about a product’s performance.
B. Exaggerated or subjective claims that are not meant to be taken literally.
C. Scientific evidence supporting a product’s benefits.
D. Detailed product specifications.
116. A company collects extensive data on its customers’ online behavior without their explicit consent. This is a violation of:
A. Data mining.
B. Data privacy.
C. Market research.
D. Behavioral targeting.
117. A company sponsors a local charity event to improve its public image. This is an example of:
A. Product marketing.
B. Cause-related marketing.
C. Direct marketing.
D. Guerrilla marketing.
118. What is the role of transparency in ethical marketing?
A. To hide information from competitors.
B. To build trust with customers by being open and honest.
C. To use complex language to confuse customers.
D. To avoid disclosing negative information.
119. What is ‘planned obsolescence’ and why is it considered unethical?
A. Designing products to last as long as possible.
B. Designing products to become outdated or non-functional after a certain period, encouraging consumers to buy replacements.
C. Recycling old products to create new ones.
D. Offering extended warranties on products.
120. Which of the following is an example of discriminatory pricing?
A. Offering discounts to senior citizens.
B. Charging different prices based on a customer’s ethnicity or gender.
C. Providing volume discounts to large customers.
D. Adjusting prices based on supply and demand.
121. A clothing retailer using ‘occasion segmentation’ might target customers…
A. Based on their income.
B. Based on their age.
C. Who are shopping for specific events like weddings or graduations.
D. Who live in specific geographic areas.
122. What is ‘undifferentiated marketing’?
A. Targeting multiple market segments with different marketing strategies.
B. Ignoring market segments and targeting the entire market with a single marketing strategy.
C. Creating highly customized products for individual customers.
D. Focusing on a small, niche market.
123. What is the role of ‘market positioning’ in relation to market segmentation?
A. It comes before segmentation.
B. It is unrelated to segmentation.
C. It defines how a company’s product is perceived within a chosen segment.
D. It eliminates the need for segmentation.
124. How does market segmentation help in new product development?
A. It reduces the need for market research.
B. It helps identify unmet needs and opportunities within specific segments.
C. It guarantees the success of new products.
D. It simplifies the production process.
125. A company launching a new line of organic baby food would likely use which segmentation variable most heavily?
A. Geographic location.
B. Income level.
C. Lifestyle and values (e.g., health-conscious parents).
D. Age of the parents.
126. What is the meaning of ‘differentiated marketing’ strategy?
A. Ignoring market segment differences.
B. Targeting only one market segment.
C. Targeting several market segments and designing separate offers for each.
D. Offering a single product to the entire market.
127. How does market segmentation contribute to improved customer relationship management (CRM)?
A. By reducing the cost of acquiring new customers.
B. By enabling more personalized and relevant interactions with customers.
C. By eliminating the need for customer service.
D. By automating all customer interactions.
128. Which of the following is a characteristic of an ‘effective’ market segment?
A. It is heterogeneous.
B. It is inaccessible.
C. It is substantial.
D. It is unstable.
129. Which step typically follows market segmentation in the marketing process?
A. Product development.
B. Targeting.
C. Advertising.
D. Market research.
130. Why is it important for market segments to be ‘measurable’?
A. To ensure the segments are geographically concentrated.
B. To determine the size and purchasing power of the segments.
C. To make sure the segments are easy to reach with marketing messages.
D. To guarantee the segments are profitable.
131. A company that sells luxury cars would most likely target which market segment?
A. Low-income earners.
B. High-income earners.
C. Students.
D. Retired individuals.
132. How can ‘behavioral segmentation’ be used in marketing?
A. By targeting customers based on their income level.
B. By targeting customers based on their geographic location.
C. By targeting customers based on their purchase history or product usage.
D. By targeting customers based on their personality traits.
133. Which of the following is an example of ‘geographic segmentation’?
A. Targeting customers based on their favorite color.
B. Targeting customers based on their age.
C. Targeting customers in specific countries or regions.
D. Targeting customers based on their profession.
134. What is a ‘niche market’?
A. A large, undifferentiated market.
B. A narrowly defined group of customers with specific needs.
C. A market that is declining in size.
D. A market with many competitors.
135. Which of the following is a potential disadvantage of market segmentation?
A. Increased marketing effectiveness.
B. Higher customer satisfaction.
C. Increased production and marketing costs.
D. Improved brand loyalty.
136. A company selling winter clothing would likely use which type of segmentation?
A. Demographic
B. Psychographic
C. Geographic and Occasion
D. Behavioral
137. A small business with limited resources would most likely benefit from which targeting strategy?
A. Undifferentiated marketing.
B. Differentiated marketing.
C. Concentrated (niche) marketing.
D. Micromarketing.
138. What is ‘micromarketing’?
A. Marketing on a very small budget.
B. Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments.
C. Marketing to very large and diverse groups.
D. Marketing using only online channels.
139. How can a company use ‘customer lifetime value’ (CLV) in market segmentation?
A. To ignore less profitable customer segments.
B. To identify and prioritize high-value customer segments.
C. To reduce marketing spending across all segments.
D. To offer the same products to all customers.
140. Which of the following is an example of using ‘benefit segmentation’?
A. Targeting customers based on their age.
B. Targeting customers based on their location.
C. Targeting customers seeking specific benefits like ‘convenience’ or ‘status’.
D. Targeting customers based on their income.
141. What is the potential ethical concern associated with market segmentation?
A. It can lead to lower prices for consumers.
B. It can be used to target vulnerable groups with harmful products or services.
C. It can make marketing more efficient.
D. It can increase competition in the marketplace.
142. How can companies ensure their market segmentation strategy is ‘accessible’?
A. By making their products available at the lowest possible price.
B. By ensuring they can reach and serve the segments through appropriate channels.
C. By targeting only the largest market segments.
D. By ignoring the needs of smaller segments.
143. Which of the following is NOT a common basis for segmenting consumer markets?
A. Geographic
B. Demographic
C. Psychographic
D. Technological infrastructure
144. What is the purpose of creating ‘buyer personas’ in market segmentation?
A. To create fictional characters that represent different market segments.
B. To analyze the financial performance of different customer groups.
C. To identify the most profitable customers.
D. To track customer satisfaction levels.
145. Which is a limitation of using demographic segmentation alone?
A. Demographic data is difficult to obtain.
B. Demographics provide insights into *why* people buy.
C. Demographics don’t fully explain consumer behavior.
D. Demographic segmentation is too expensive.
146. Which of the following best describes ‘psychographic segmentation’?
A. Dividing the market based on location.
B. Dividing the market based on age, income, and education.
C. Dividing the market based on lifestyle, values, and personality.
D. Dividing the market based on product usage rates.
147. Which of the following is NOT a factor to consider when evaluating market segments?
A. Segment size and growth.
B. Segment structural attractiveness.
C. Company objectives and resources.
D. Competitor’s advertising budget.
148. Which of the following is the most accurate definition of ‘market segmentation’?
A. Dividing a broad consumer or business market into sub-groups of consumers based on shared characteristics.
B. Creating different products for different consumer groups.
C. Promoting the same product to different consumer groups using different advertising campaigns.
D. Analyzing the overall market size and growth potential.
149. What is the primary benefit of using market segmentation?
A. Reducing overall marketing costs.
B. Increasing the total number of customers.
C. Developing more effective marketing strategies by understanding customer needs better.
D. Simplifying product development.
150. What does ‘mass customization’ entail in market segmentation?
A. Offering the same product to the entire market.
B. Creating products and marketing messages tailored to individual customers on a large scale.
C. Producing large quantities of standardized products.
D. Targeting a small, niche market with a specialized product.
