1. A company that uses telemarketing to sell insurance directly to consumers is using which marketing orientation?
A. Production concept
B. Selling concept
C. Marketing concept
D. Societal marketing concept
2. Which of the following is NOT a core concept of marketing according to Chapter 2?
A. Needs, wants, and demands
B. Product, price, place, and promotion
C. Value and satisfaction
D. Exchange, transactions, and relationships
3. Which of the following best describes a ‘want’ in marketing terms?
A. A basic human need for food or shelter.
B. A specific desire for a product or service that satisfies a need.
C. The purchasing power to acquire a product or service.
D. A social responsibility to consume ethically.
4. What is ‘share of customer’?
A. The percentage of customers who are satisfied with a company’s products.
B. The portion of the customer’s purchasing that a company gets in its product categories.
C. The number of customers a company has compared to its competitors.
D. The total revenue a company generates from its customers.
5. What is the primary focus of ‘partner relationship management’?
A. Building relationships with customers.
B. Building relationships with other companies in the marketing network.
C. Managing the supply chain.
D. Managing internal relationships within the company.
6. A company that adopts the ‘selling concept’ is most likely to:
A. Focus on understanding customer needs and wants.
B. Invest heavily in advertising and personal selling.
C. Prioritize product innovation and quality.
D. Emphasize building long-term customer relationships.
7. What is ‘customer delight’?
A. Meeting customer expectations.
B. Exceeding customer expectations.
C. Minimizing customer complaints.
D. Providing basic customer service.
8. What is ‘customer-perceived value’?
A. The actual cost of a product or service.
B. The customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.
C. The total number of customers a company has.
D. The average revenue generated per customer.
9. A ‘transaction’ in marketing involves:
A. A basic human need.
B. A specific desire for a product.
C. A trade of values between two parties.
D. The overall marketing strategy.
10. Which of the following is NOT a typical element of a modern marketing system?
A. Suppliers
B. The company (marketer)
C. Competitors
D. Government regulations
11. Which of the following is an example of a company practicing the societal marketing concept?
A. A company that produces inexpensive, low-quality goods.
B. A company that focuses solely on maximizing profits.
C. A company that donates a portion of its profits to environmental conservation.
D. A company that uses aggressive sales tactics to persuade customers.
12. The ‘marketing myopia’ concept refers to:
A. Focusing on the customer’s needs and wants.
B. Focusing only on the existing product rather than the benefits and experiences produced.
C. Focusing on short-term sales rather than long-term customer relationships.
D. Focusing on societal well-being over company profits.
13. Building, keeping, and growing profitable customer relationships by delivering superior customer value and satisfaction is called:
A. Customer equity
B. Customer relationship management
C. Partner relationship management
D. Supply chain management
14. A firm that aims to create economic value in a way that also creates value for the surrounding community is practicing:
A. Sustainable marketing
B. Societal marketing
C. Customer-driven marketing
D. Production-oriented marketing
15. Which of the following is an example of a ‘need’ in the context of marketing?
A. A desire for a specific brand of smartphone.
B. A craving for a particular type of fast food.
C. The requirement for food, clothing, and shelter.
D. The preference for a luxury car over a basic model.
16. Which concept is associated with the idea that consumers will favor products that offer the most quality, performance, and features?
A. Production concept
B. Selling concept
C. Marketing concept
D. Product concept
17. Which of the following is the most likely result of consistently exceeding customer expectations?
A. Decreased profitability due to high costs.
B. Increased customer loyalty and advocacy.
C. Reduced marketing effectiveness.
D. A shift towards a production-oriented approach.
18. What is the ultimate goal of customer relationship management?
A. To maximize short-term sales revenue.
B. To create superior customer value and build profitable relationships.
C. To minimize marketing expenses.
D. To achieve the highest possible market share.
19. Which of the following is the first step in the marketing process?
A. Designing a customer-driven marketing strategy
B. Constructing an integrated marketing program that delivers superior value
C. Understanding the marketplace and customer needs and wants
D. Building profitable relationships and creating customer delight
20. What is ‘customer equity’?
A. The total combined customer lifetime values of all of the company’s customers.
B. The percentage of customers who are loyal to a particular brand.
C. The amount of money a customer spends on a company’s products in a year.
D. The value of a company’s brand name.
21. Which of the following marketing management orientations focuses primarily on making continuous product improvements?
A. Production concept
B. Product concept
C. Selling concept
D. Marketing concept
22. Which of the following is the most accurate definition of ‘customer lifetime value’?
A. The total revenue a customer brings to the company in a single transaction.
B. The discounted stream of future profits a customer is expected to generate over their relationship with the firm.
C. The total number of products a customer purchases from the company.
D. The average satisfaction rating a customer gives to the company’s products.
23. Which marketing philosophy emphasizes that a company should make marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests?
A. Production concept
B. Selling concept
C. Marketing concept
D. Societal marketing concept
24. What is the act of obtaining a desired object from someone by offering something in return called?
A. Production
B. Selling
C. Transaction
D. Exchange
25. A market is:
A. A physical place where buyers and sellers meet.
B. The set of actual and potential buyers of a product or service.
C. The process of selling products or services.
D. The advertising campaign used to promote a product.
26. Which concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do?
A. Production concept
B. Selling concept
C. Marketing concept
D. Product concept
27. A company that focuses primarily on improving production and distribution efficiency is adhering to which marketing management orientation?
A. The marketing concept
B. The selling concept
C. The production concept
D. The societal marketing concept
28. Which of the following is the final step in the marketing process?
A. Designing a customer-driven marketing strategy.
B. Constructing an integrated marketing program that delivers superior value.
C. Understanding the marketplace and customer needs and wants.
D. Capture value from customers to create profits and customer equity.
29. Which of the following describes ‘demands’ in the context of marketing?
A. Basic human needs.
B. Wants backed by buying power.
C. The process of exchanging goods or services.
D. The perceived value of a product or service.
30. If a company’s objective is to ‘build profitable relationships’ with customers, which of the following strategies would be MOST effective?
A. Focusing on high-pressure sales tactics to maximize short-term revenue.
B. Investing in customer service and personalized marketing experiences.
C. Minimizing marketing expenses to increase profitability.
D. Ignoring customer feedback and focusing on product innovation.
31. Which of the following is the BEST example of using observational research?
A. Conducting a survey to measure customer satisfaction
B. Analyzing sales data to identify trends
C. Watching how customers interact with a product display in a store
D. Holding a focus group to discuss a new product idea
32. What is a focus group?
A. A type of experimental research design
B. A small group of people who meet with a trained moderator to discuss a product, service, or organization
C. A statistical technique for analyzing survey data
D. A method for observing consumer behavior in stores
33. A marketing manager suspects that a drop in sales is due to a competitor’s new advertising campaign. Which type of research would be most appropriate to test this hypothesis?
A. Exploratory research
B. Descriptive research
C. Causal research
D. Observational research
34. Which type of data consists of information that already exists somewhere, having been collected for another purpose?
A. Primary data
B. Secondary data
C. Experimental data
D. Observational data
35. What is a marketing information system (MIS)?
A. A system to manage customer relationships
B. People and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers use the information to generate and validate actionable customer and market insights
C. A method for conducting experimental research
D. A statistical technique for analyzing survey data
36. How does marketing research help companies improve customer relationships?
A. By reducing the cost of advertising
B. By providing insights into customer needs and preferences
C. By simplifying the product development process
D. By eliminating the need for customer service
37. What is the role of internal databases in a marketing information system?
A. To provide information about competitors
B. To gather real-time data from social media
C. To collect consumer feedback on products
D. To provide information about customer transactions, demographics, and other relevant data
38. What is experimental research primarily used for?
A. Describing the characteristics of a population
B. Exploring consumer opinions and beliefs
C. Testing cause-and-effect relationships
D. Gathering preliminary data for problem definition
39. What is competitive marketing intelligence?
A. The systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment
B. A method for conducting experimental research
C. A statistical technique for analyzing survey data
D. A system for managing customer relationships
40. What is survey research best suited for?
A. Observing consumer behavior in a natural setting
B. Gathering descriptive information about people’s knowledge, attitudes, preferences, or buying behavior
C. Testing cause-and-effect relationships
D. Exploring complex social phenomena
41. Which of the following is a disadvantage of using secondary data?
A. It is always expensive to obtain
B. It may not be relevant or accurate for the current research
C. It is always time-consuming to collect
D. It is always difficult to analyze
42. What is the purpose of implementing a Customer Relationship Management (CRM) system?
A. To reduce advertising costs
B. To manage detailed information about individual customers and carefully manage customer touch points to maximize customer loyalty
C. To simplify the product development process
D. To eliminate the need for customer service
43. What is the final step in the marketing research process?
A. Developing the research plan
B. Collecting the data
C. Analyzing and interpreting the data, and reporting the findings
D. Defining the problem and research objectives
44. What is exploratory research primarily used for?
A. To gather preliminary information that will help define the problem and suggest hypotheses
B. To test hypotheses about cause-and-effect relationships
C. To describe things, such as the market potential for a product or the demographics of consumers who buy the product
D. To quantify the relationship between marketing variables
45. What is the potential downside of using social media for marketing research?
A. It is too expensive
B. The data may not be representative of the entire population
C. It is too time-consuming
D. It is difficult to analyze
46. Which of the following is an example of using marketing research to monitor the marketing environment?
A. Conducting a focus group to test a new product concept
B. Tracking social media conversations about a brand
C. Running an experiment to test the effectiveness of a pricing strategy
D. Distributing surveys to measure customer satisfaction
47. What is the primary goal of causal research?
A. To explore new market segments
B. To test hypotheses about cause-and-effect relationships
C. To describe the characteristics of a population
D. To gather preliminary information for problem definition
48. Which of the following is an ethical consideration in marketing research?
A. Using complex statistical techniques
B. Protecting the privacy of research participants
C. Collecting data anonymously
D. Conducting research online
49. What is the purpose of a questionnaire in marketing research?
A. To observe consumer behavior directly
B. To gather data through a set of questions
C. To conduct experimental research
D. To facilitate focus group discussions
50. What is primary data?
A. Data collected for a different purpose
B. Data collected specifically for the current research question
C. Data that is always more accurate than secondary data
D. Data that is free to access
51. Which research approach involves gathering primary data by observing relevant people, actions, and situations?
A. Survey research
B. Experimental research
C. Focus group research
D. Observational research
52. What is a sample in 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 type of experimental research design
D. A focus group discussion
53. A small business owner wants to understand how customers perceive their brand compared to competitors. What type of research would be most suitable?
A. Exploratory research
B. Descriptive research
C. Causal research
D. Experimental research
54. What does CRM stand for in the context of marketing?
A. Customer Relationship Management
B. Consumer Research Methods
C. Competitive Resource Management
D. Corporate Responsibility Measures
55. Descriptive research is best suited for which of the following?
A. Identifying causal relationships between variables
B. Gathering preliminary data for problem definition
C. Describing market potential or demographics
D. Testing hypotheses about cause-and-effect relationships
56. A company wants to gather in-depth insights into customer motivations and feelings about a product. Which method is most appropriate?
A. A large-scale survey
B. A series of experiments
C. A focus group discussion
D. Analyzing sales data
57. A company is testing two different versions of an advertisement to see which one generates more sales. What type of research is this?
A. Descriptive research
B. Exploratory research
C. Causal research
D. Observational research
58. What is the key benefit of using online marketing research?
A. Higher cost per respondent
B. Slower data collection
C. Faster data collection and lower costs
D. Less accurate data
59. Which of the following is the first step in the marketing research process?
A. Develop the research plan
B. Define the problem and research objectives
C. Implement the research plan
D. Interpret and report the findings
60. A company is deciding whether to launch a new product. Which type of research would be most helpful in determining the potential market size?
A. Exploratory research
B. Causal research
C. Descriptive research
D. Experimental research
61. Which of the following describes ‘customer equity’?
A. The total combined customer lifetime values of all of the company’s customers.
B. The value of the company’s brand name and reputation.
C. The financial investment the company has made in customer service.
D. The number of new customers acquired in a specific period.
62. Which of the following is the most accurate description of a ‘market’?
A. A physical place where buyers and sellers meet.
B. A group of people with similar needs and wants.
C. The set of all actual and potential buyers of a product or service.
D. The process of selling products to consumers.
63. Which is a potential drawback of the ‘selling concept’?
A. It may overlook the importance of societal well-being.
B. It may lead to a focus on short-term sales rather than building long-term customer relationships.
C. It may result in neglecting product innovation and quality.
D. It may cause a company to produce products that are too expensive for the average consumer.
64. How does ‘customer equity’ contribute to the long-term success of a business?
A. By increasing the company’s current sales revenue.
B. By reducing the company’s marketing expenses.
C. By building a loyal customer base that generates future profits.
D. By improving the company’s brand image.
65. Customer-perceived value is defined as:
A. The customer’s evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers.
B. The actual cost of producing a product or service.
C. The price at which a product or service is sold.
D. The amount of money a customer is willing to pay for a product or service.
66. Which of the following is NOT one of the four Ps of the marketing mix?
A. Product
B. Price
C. Promotion
D. Process
67. How has the digital age affected marketing?
A. It has decreased the ability of marketers to track consumer behavior.
B. It has limited the ability of consumers to engage with brands.
C. It has provided marketers with new tools to communicate with customers and gather data.
D. It has made it more difficult for companies to personalize their marketing efforts.
68. A ‘need’ in the context of marketing can best be described as:
A. A strong desire for a specific product or service.
B. A state of felt deprivation.
C. Something that is optional but nice to have.
D. A want that is backed by buying power.
69. Which concept suggests that marketers should design products that are easy to use, beneficial, and sustainable?
A. Marketing concept
B. Selling concept
C. Societal marketing concept
D. Production concept
70. What is the definition of ‘market offering’?
A. The set of actual and potential buyers of a product or service.
B. Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.
C. The act of obtaining a desired object from someone by offering something in return.
D. The process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
71. What is the potential downside of focusing solely on customer lifetime value?
A. It can lead to neglecting the needs of individual customers.
B. It can lead to neglecting the importance of customer equity.
C. It can lead to neglecting short-term sales and profits.
D. It can lead to neglecting the importance of product quality.
72. Share of customer refers to:
A. The portion of the customer’s purchasing that a company gets in its product categories.
B. The percentage of the market controlled by a specific company.
C. The profit margin on a specific product.
D. The number of customers who switch to a competitor’s product.
73. What is ‘customer satisfaction’?
A. The extent to which a product’s perceived performance matches a buyer’s expectations.
B. The number of customers who purchase a product.
C. The profit margin earned on a product.
D. The company’s market share.
74. What is the main difference between ‘wants’ and ‘needs’ in marketing?
A. ‘Wants’ are basic requirements, while ‘needs’ are how people choose to fulfill those requirements.
B. ‘Needs’ are basic requirements, while ‘wants’ are how people choose to fulfill those requirements.
C. ‘Needs’ are unlimited, while ‘wants’ are limited.
D. ‘Wants’ are essential for survival, while ‘needs’ are not.
75. What is ‘customer relationship management’ (CRM)?
A. The process of managing detailed information about individual customers and carefully managing customer ‘touch points’ to maximize customer loyalty.
B. A focus on short-term sales rather than long-term relationships.
C. A strategy to minimize customer interaction to reduce costs.
D. A method of mass marketing to reach the largest possible audience.
76. A company that adopts the ‘selling concept’ is most likely to:
A. Focus on understanding customer needs and wants before producing a product.
B. Invest heavily in advertising and personal selling to persuade customers to buy.
C. Prioritize product quality and innovation above all else.
D. Seek to create long-term, mutually beneficial relationships with customers.
77. Which of the following is an example of ‘customer-generated marketing’?
A. A company developing a new product based on market research.
B. Customers creating their own ads for a brand and posting them online.
C. A company sending out promotional emails to potential customers.
D. A company conducting a customer satisfaction survey.
78. Which of the following statements best reflects the ‘production concept’?
A. Consumers will favor products that offer the most quality, performance, and innovative features.
B. Consumers will favor products that are available and highly affordable.
C. Marketing should focus on creating shared value, considering not only immediate economic needs, but also that of the community and the environment.
D. A company should undertake aggressive selling and promotion efforts.
79. A company offers discounts to customers who refer new clients. This is an example of:
A. Customer-driven marketing strategy
B. Customer-generated marketing
C. Partner relationship management
D. Customer relationship management
80. What does ‘customer lifetime value’ (CLV) refer to?
A. The total combined customer lifetime values of all of the company’s current and potential customers.
B. The discount rate used to calculate the present value of future profits.
C. The value of the customer equity in a particular geographic region.
D. The stream of revenue generated from a single transaction.
81. Why is it important for companies to understand customer needs and wants?
A. To develop effective marketing strategies.
B. To maximize production efficiency.
C. To minimize advertising expenses.
D. To create a strong sales force.
82. Which of the following is the first step in the marketing process?
A. Building profitable relationships.
B. Understanding the marketplace and customer needs and wants.
C. Designing a customer-driven marketing strategy.
D. Constructing an integrated marketing program that delivers superior value.
83. A company focusing on improving its production efficiency and lowering costs is likely following which orientation?
A. Marketing concept
B. Selling concept
C. Production concept
D. Societal marketing concept
84. Which marketing management orientation holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do?
A. The production concept
B. The selling concept
C. The marketing concept
D. The societal marketing concept
85. The societal marketing concept considers which of the following three aspects when making marketing decisions?
A. Profit, customer satisfaction, and brand image.
B. Society (human welfare), consumers (want satisfaction), and company (profits).
C. Product quality, product availability, and product affordability.
D. Innovation, efficiency, and competition.
86. Which of the following is NOT a core concept of marketing according to Chapter 2?
A. Needs, wants, and demands
B. Production process
C. Value and satisfaction
D. Exchange, transactions, and relationships
87. 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 company’s mission statement.
C. The financial value of the brand in terms of assets.
D. The company’s pricing strategy.
88. If a customer’s perceived performance of a product falls below their expectations, what is the likely outcome?
A. Increased customer loyalty.
B. Customer satisfaction.
C. Customer dissatisfaction.
D. Increased sales for the company.
89. What is ‘partner relationship management’?
A. Working closely with partners in other company departments to form an effective value chain.
B. Working closely with partners in other companies to jointly bring more value to customers.
C. Managing relationships with competitors to avoid price wars.
D. Outsourcing all marketing activities to external agencies.
90. A local bakery decides to donate a percentage of its profits to a homeless shelter. This is an example of:
A. The production concept in action.
B. The societal marketing concept in action.
C. The selling concept in action.
D. The marketing concept in action.
91. What is ‘marketing myopia’?
A. Focusing only on the existing wants and losing sight of underlying consumer needs.
B. Focusing too much on the production process.
C. Ignoring the competition in the marketplace.
D. Neglecting the importance of customer service.
92. Which of the following is the most accurate definition of a ‘market’?
A. A physical place where buyers and sellers meet.
B. A set of actual and potential buyers of a product or service.
C. The process of selling goods and services.
D. The advertising and promotion of a product.
93. A company segments its market based on lifestyle and personality characteristics. This is an example of:
A. Geographic segmentation.
B. Demographic segmentation.
C. Psychographic segmentation.
D. Behavioral segmentation.
94. What is the ‘butterflies’ customer group characterized by in customer relationship management?
A. High potential profitability and low loyalty.
B. Low potential profitability and high loyalty.
C. High potential profitability and high loyalty.
D. Low potential profitability and low loyalty.
95. Which of the following is NOT a core concept of marketing?
A. Needs, wants, and demands.
B. Product, price, place, and promotion.
C. Exchange, transactions, and relationships.
D. Production, distribution, and sales.
96. Which of the following is an example of ‘customer-perceived value’?
A. The cost of producing a product.
B. The customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.
C. The total number of customers a company has.
D. The profit margin a company makes on a product.
97. Which of the following is an example of a ‘stranger’ customer in the context of customer relationship groups?
A. A customer with high potential profitability and high loyalty.
B. A customer with low potential profitability and low loyalty.
C. A customer with high potential profitability and low loyalty.
D. A customer with low potential profitability and high loyalty.
98. What is the potential downside of focusing too heavily on the ‘selling concept’?
A. Ignoring customer needs and building poor customer relationships.
B. Producing low-quality products.
C. Failing to innovate.
D. Missing opportunities for market growth.
99. Which of the following is NOT a component of the ‘marketing mix’ (4Ps)?
A. Product.
B. Price.
C. Promotion.
D. People.
100. A company focusing on ‘share of customer’ aims to:
A. Increase its overall market share.
B. Increase the portion of the customer’s purchasing that a company gets in its product categories.
C. Reduce its production costs.
D. Expand into new markets.
101. A car manufacturer offers a loyalty program with exclusive benefits for repeat customers. This is an example of:
A. Marketing myopia.
B. Customer relationship management.
C. Production concept.
D. Selling concept.
102. Which of the following best describes the ‘marketing mix’?
A. The set of tools (4Ps) the firm uses to implement its marketing strategy.
B. The process of building and maintaining profitable customer relationships.
C. The analysis of the company’s strengths, weaknesses, opportunities, and threats.
D. The segmentation, targeting, and positioning of a product.
103. What is ‘partner relationship management’?
A. Working closely with partners in other company departments to form an effective value chain.
B. Working closely with partners inside and outside the company to jointly bring more value to customers.
C. Managing relationships with competitors to avoid price wars.
D. Outsourcing marketing activities to external agencies.
104. What is ‘customer equity’?
A. The combined customer lifetime values of all of the company’s customers.
B. The total assets of the company.
C. The number of customers a company has.
D. The company’s brand reputation.
105. A ‘true friend’ customer is characterized by:
A. High profitability and short-term loyalty.
B. Low profitability and long-term loyalty.
C. High profitability and long-term loyalty.
D. Low profitability and short-term loyalty.
106. A company decides to lower its prices to attract more customers, even if it means lower profit margins. This reflects a focus on:
A. Customer equity.
B. Share of customer.
C. Customer-perceived value.
D. Production efficiency.
107. A ‘need’ in the context of marketing refers to:
A. A want backed by buying power.
B. A state of felt deprivation.
C. A specific object that might satisfy a want.
D. The process of exchanging value.
108. If a company’s objective is immediate sales, which marketing orientation is it most likely to adopt?
A. Marketing concept.
B. Selling concept.
C. Societal marketing concept.
D. Production concept.
109. A company decides to focus on creating environmentally friendly products and reducing its carbon footprint. This aligns with the:
A. Production concept.
B. Selling concept.
C. Marketing concept.
D. Societal marketing concept.
110. Which marketing orientation holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do?
A. The selling concept.
B. The product concept.
C. The marketing concept.
D. The societal marketing concept.
111. A company that focuses solely on making continuous product improvements and believes that customers will favor products that offer the most quality, performance, and innovative features is practicing the:
A. Production concept.
B. Selling concept.
C. Product concept.
D. Marketing concept.
112. A company that adopts a ‘production concept’ is most likely to:
A. Focus on continuous product improvements.
B. Focus on making products affordable and widely available.
C. Focus on aggressive selling and promotion efforts.
D. Focus on understanding customer needs and wants.
113. Which of the following is NOT a potential marketing trend?
A. Sustainable marketing practices.
B. Increased focus on mass marketing.
C. Growing use of artificial intelligence in marketing.
D. Emphasis on customer privacy and data security.
114. How does the rise of digital and social media impact marketing practices?
A. It makes marketing more impersonal.
B. It provides opportunities for more targeted, personalized, and interactive marketing.
C. It reduces the importance of traditional marketing channels.
D. It eliminates the need for customer service.
115. The societal marketing concept considers which additional factor(s) compared to the marketing concept?
A. Company profits.
B. Consumer wants.
C. Society’s long-run interests.
D. Immediate customer satisfaction.
116. What is ‘customer lifetime value’ (CLV)?
A. The total sales revenue a customer generates in a single transaction.
B. The value of the entire stream of purchases a customer makes over a lifetime of patronage.
C. The average profit margin on each product sold.
D. The cost of acquiring a new customer.
117. A local bakery decides to donate a portion of its profits to a local charity. This is an example of:
A. Product concept.
B. Selling concept.
C. Marketing concept.
D. Societal marketing concept.
118. A company analyzes its customer database to identify high-value customers and tailor marketing efforts to their specific needs. This is an example of:
A. Mass marketing.
B. Customer relationship management.
C. Product differentiation.
D. Supply chain management.
119. What is the primary goal of customer relationship management (CRM)?
A. To maximize short-term sales revenue.
B. To build and maintain profitable customer relationships by delivering superior customer value and satisfaction.
C. To minimize marketing expenses.
D. To increase brand awareness through advertising.
120. Which of the following is a potential outcome of creating customer delight?
A. Increased customer loyalty and advocacy.
B. Decreased marketing expenses.
C. Higher product prices.
D. Reduced competition.
121. Which of the following is NOT a characteristic of a well-defined target market?
A. The target market should be measurable in terms of size and purchasing power.
B. The target market should be accessible through the company’s marketing channels.
C. The target market should be homogenous and consist of individuals with identical needs and wants.
D. The target market should be substantial enough to be profitable.
122. Which of the following best describes ‘micromarketing’?
A. Targeting a very large segment of the market.
B. Targeting a small number of high-value customers.
C. Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments.
D. Using social media to reach a broad audience.
123. What is the main advantage of using a concentrated marketing strategy?
A. Higher potential market share
B. Greater diversification of risk
C. Stronger knowledge of customer needs
D. Lower production costs per unit
124. Which of the following is NOT a requirement for effective segmentation?
A. Measurable
B. Accessible
C. Substantial
D. Complex
125. A company that decides to ignore market segment differences and target the entire market with one offer is using which targeting strategy?
A. Differentiated marketing
B. Concentrated marketing
C. Micromarketing
D. Undifferentiated marketing
126. Which of the following is the first step in the target marketing process?
A. Positioning the product
B. Identifying market segments
C. Selecting the target market
D. Developing a marketing mix
127. Which of the following is an example of demographic segmentation?
A. Grouping customers based on their lifestyles and values.
B. Grouping customers based on their geographic location.
C. Grouping customers based on their usage rate of a product.
D. Grouping customers based on their age, gender, income, and occupation.
128. Which of the following is the most accurate definition of ‘positioning’ in marketing?
A. Creating a product with features and benefits that appeal to a specific target market.
B. Communicating the company’s values and mission to its stakeholders.
C. Creating a clear, distinctive, and desirable place for the product relative to competing products in the minds of target consumers.
D. Setting the price of a product to be competitive in the market.
129. A car manufacturer designs different models targeting different income levels and lifestyles. This is an example of:
A. Mass marketing
B. Concentrated marketing
C. Differentiated marketing
D. Micromarketing
130. A beverage company promotes its energy drink to athletes. This is an example of segmentation based on:
A. Demographics
B. Psychographics
C. Geography
D. Behavior
131. What is the primary benefit of market segmentation?
A. Reducing the overall marketing budget.
B. Increasing the size of the potential customer base.
C. Allowing companies to more effectively and efficiently reach customers with specific needs.
D. Simplifying the product development process.
132. A small business decides to focus its marketing efforts on a specific local community. This is an example of:
A. Mass marketing
B. Segment marketing
C. Micromarketing
D. Niche marketing
133. What is ‘perceptual mapping’ used for in marketing?
A. To track the effectiveness of advertising campaigns.
B. To visualize how consumers perceive different brands or products on key attributes.
C. To analyze the distribution channels used by competitors.
D. To forecast future sales trends.
134. What is the meaning of ‘USP’ in marketing?
A. Unique Sales Process
B. Universal Service Provider
C. Unique Selling Proposition
D. Unified Strategic Plan
135. Instead of trying to capture a small share of a large market, a firm decided to go after a large share of a small market. Which strategy is this?
A. Mass marketing
B. Niche marketing
C. Differentiated marketing
D. Micromarketing
136. A luxury brand positions itself as ‘exclusive’ and ‘prestigious’. This is positioning based on:
A. Price
B. Product attributes
C. Brand personality
D. User class
137. A company positions its product as the ‘most reliable’ in the market. This is an example of positioning based on:
A. Price
B. Attributes
C. Benefits
D. Competitors
138. Which of the following is a potential drawback of differentiated marketing?
A. Lower customer satisfaction.
B. Higher marketing and production costs.
C. Reduced brand awareness.
D. Inability to reach niche markets.
139. What is a potential disadvantage of using behavioral segmentation?
A. It is difficult to measure.
B. It may lead to overlooking potentially valuable customer segments.
C. It is not useful for online marketing.
D. It is too expensive to implement.
140. Which segmentation variable is most closely related to lifestyle?
A. Demographic
B. Geographic
C. Psychographic
D. Behavioral
141. A company that uses PRIZM to segment its markets is using ________ segmentation.
A. Geographic
B. Demographic
C. Psychographic
D. Behavioral
142. What is the potential danger of using a ‘me-too’ positioning strategy?
A. It can lead to higher production costs.
B. It can confuse customers about the brand’s unique value proposition.
C. It can limit the company’s ability to expand into new markets.
D. It can attract unwanted attention from competitors.
143. A company that segments its market based on income, occupation, and education is using ________ segmentation.
A. Psychographic
B. Behavioral
C. Demographic
D. Geographic
144. A local bakery decides to focus solely on selling gluten-free products to customers with celiac disease. Which targeting strategy are they using?
A. Mass marketing
B. Differentiated marketing
C. Concentrated marketing
D. Micromarketing
145. A company decides to offer a ‘basic’ version and a ‘premium’ version of its software. This is an example of:
A. Undifferentiated marketing
B. Differentiated marketing
C. Concentrated marketing
D. Micromarketing
146. When evaluating different market segments, a firm must look at segment size and growth, segment structural attractiveness, and ________.
A. Company objectives and resources
B. Competitive advantages
C. Ethical considerations
D. Technological feasibility
147. Which of the following is NOT a common base for segmenting consumer markets?
A. Geographic
B. Demographic
C. Psychographic
D. Technological
148. What is the purpose of a ‘value proposition’?
A. To define the company’s mission and vision.
B. To summarize why a customer should buy a product or service.
C. To outline the company’s marketing strategy.
D. To describe the product’s features and benefits in detail.
149. Which of the following is a key factor in determining the structural attractiveness of a market segment?
A. The company’s financial resources.
B. The intensity of competitive rivalry.
C. The current economic climate.
D. The company’s brand reputation.
150. A marketing firm uses social media analytics to understand customer interests and preferences. This is an example of:
A. Geographic segmentation
B. Demographic segmentation
C. Psychographic segmentation
D. Behavioral segmentation
