1. What is the primary goal of customer relationship management (CRM)?
A. To maximize immediate sales revenue.
B. To create and maintain profitable customer relationships.
C. To minimize marketing expenses.
D. To standardize customer service processes.
2. A luxury hotel provides a dedicated concierge service to its VIP guests. This is an example of:
A. Mass customization.
B. Customer divestment.
C. Customer relationship management.
D. Supply chain management.
3. What is the main benefit of using data analytics in customer relationship management?
A. To reduce the cost of data storage.
B. To improve the speed of customer service interactions.
C. To gain insights into customer behavior and preferences.
D. To eliminate the need for human interaction with customers.
4. Which customer relationship group has the highest potential for generating customer equity?
A. Strangers
B. Barnacles
C. True Friends
D. Butterflies
5. Which of the following metrics is most closely associated with measuring customer loyalty?
A. Market share.
B. Customer retention rate.
C. Advertising reach.
D. Website traffic.
6. Which of the following customer relationship groups is characterized by high profitability and short-term loyalty?
A. True Friends
B. Strangers
C. Barnacles
D. Butterflies
7. How can social media be used to enhance customer relationship management?
A. By ignoring customer feedback posted on social media platforms.
B. By using social media to monitor customer sentiment and respond to inquiries.
C. By solely using social media for advertising and promotions.
D. By preventing customers from posting negative reviews.
8. What is the role of ‘customer touch points’ in CRM?
A. They are points of physical contact between employees and customers.
B. They are any occasion on which a customer encounters the brand and product.
C. They are the locations where customers can purchase products.
D. They are the departments responsible for customer service.
9. Which of the following is an example of a company practicing ‘selective relationship management’?
A. Treating all customers equally regardless of their profitability.
B. Investing heavily in building relationships with all customers.
C. Focusing on building profitable relationships with the right customers.
D. Avoiding customer interaction to minimize costs.
10. A company actively seeks feedback from its customers and uses it to improve its products and services. This demonstrates:
A. A product-centric approach.
B. A customer-centric approach.
C. A sales-oriented approach.
D. A production-oriented approach.
11. What is the potential impact of negative word-of-mouth on customer equity?
A. It can increase customer loyalty.
B. It can decrease customer acquisition costs.
C. It can damage brand reputation and reduce customer lifetime value.
D. It has no significant impact on customer equity.
12. Which of the following is NOT a core customer value consideration when devising marketing strategies?
A. Building customer equity.
B. Creating brand awareness.
C. Determining the lifetime value of profitable customers.
D. Carefully managing customer expectations.
13. What is ‘customer lifetime value’ (CLV)?
A. The total sales revenue a customer generates in a single transaction.
B. The discounted lifetime revenues from all of the company’s current and potential customers.
C. The total combined customer lifetime values of all of the company’s customers.
D. The value of the entire stream of purchases a customer makes over a lifetime of patronage.
14. A ‘Barnacle’ customer is characterized by:
A. High profitability and long-term loyalty.
B. Low profitability and short-term loyalty.
C. Low profitability and long-term loyalty.
D. High profitability and short-term loyalty.
15. Which of the following best describes ‘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 market offering relative to those of competing offers.
C. The price a company sets for its products.
D. The features included in a product or service.
16. A telecommunications company offers bundled services (internet, phone, TV) at a discounted price. This strategy aims to:
A. Decrease customer satisfaction.
B. Increase share of customer.
C. Reduce customer acquisition costs.
D. Limit product variety.
17. What is ‘customer equity’?
A. The total combined customer lifetime values of all of the company’s customers.
B. The financial investment a customer makes in a company’s stock.
C. The company’s investment in customer service and support.
D. The value of a company’s brand reputation.
18. Which of the following is a potential challenge in implementing a global CRM strategy?
A. Ensuring data privacy and compliance with local regulations.
B. Standardizing customer service processes across all regions.
C. Reducing the cost of customer acquisition.
D. Improving communication with suppliers.
19. A company offers personalized recommendations and exclusive benefits to its most loyal customers. This is an example of:
A. Mass marketing.
B. Customer divestment.
C. Customer relationship management.
D. Supply chain management.
20. What is ‘share of customer’?
A. The percentage of a company’s sales compared to the total market sales.
B. The portion of the customer’s purchasing that a company gets in its product categories.
C. The total number of customers a company has.
D. The geographic reach of a company’s customer base.
21. What is the primary focus of ‘customer-managed relationships’?
A. Allowing customers to shape their relationships with brands.
B. Centralizing all customer interactions through a single platform.
C. Automating customer service processes to reduce costs.
D. Limiting customer access to company information.
22. A company implementing a CRM system should prioritize:
A. Purchasing the most advanced software available.
B. Training employees on how to use the new software.
C. Defining its customer relationship goals and strategies.
D. Automating all customer interactions.
23. What is the potential risk of solely focusing on acquiring new customers?
A. Increased customer loyalty.
B. Higher marketing efficiency.
C. Neglecting existing customer relationships.
D. Reduced customer acquisition costs.
24. Which of the following is NOT a key element of a customer-centric organization?
A. Focusing on individual customer needs.
B. Empowering employees to make customer-focused decisions.
C. Prioritizing short-term profits over customer satisfaction.
D. Collecting and analyzing customer data to improve service.
25. How does ‘partner relationship management’ (PRM) support customer relationship management?
A. By directly managing relationships with end customers.
B. By building and maintaining relationships with suppliers.
C. By working closely with partners in other company departments to jointly bring value to customers.
D. By forging strong relationships with marketing partners, connecting them effectively with the company’s value chain.
26. Increasing ‘share of customer’ can be achieved by:
A. Decreasing advertising spending.
B. Limiting product variety.
C. Cross-selling and up-selling.
D. Focusing on new customer acquisition only.
27. A company decides to fire its ‘Barnacle’ customers. What is the likely rationale behind this decision?
A. These customers are highly profitable and loyal.
B. These customers are not profitable and require significant resources.
C. These customers are likely to switch to competitors.
D. These customers provide valuable feedback for product development.
28. A clothing retailer sends a personalized birthday discount to its rewards program members. This is an example of:
A. Product diversification.
B. Customer relationship management.
C. Supply chain optimization.
D. Competitive pricing strategy.
29. A company focusing on ‘customer delight’ aims to:
A. Meet customer expectations adequately.
B. Exceed customer expectations significantly.
C. Offer the lowest possible prices.
D. Provide basic customer service efficiently.
30. Which of the following is a potential downside of focusing too heavily on customer delight?
A. Decreased customer loyalty.
B. Increased marketing costs.
C. Lower customer expectations.
D. Reduced customer satisfaction.
31. Which of the following is the BEST example of a ‘pull’ promotional strategy?
A. Offering retailers discounts for stocking a new product
B. Running television advertisements targeting end consumers
C. Providing sales training to retail staff
D. Offering free samples to distributors
32. Which of the following pricing strategies considers the psychological impact of prices on consumers?
A. Cost-plus pricing
B. Value pricing
C. Psychological pricing
D. Competitive pricing
33. What does AIDA stand for in the context of marketing communications?
A. Awareness, Interest, Desire, Action
B. Attention, Information, Demand, Approval
C. Analysis, Implementation, Development, Assessment
D. Achievement, Innovation, Dedication, Application
34. Which of the following is NOT a type of sales promotion?
A. Coupons
B. Public service announcements
C. Contests
D. Rebates
35. Which promotional tool involves direct interaction with potential customers to make a sale?
A. Public relations
B. Advertising
C. Sales promotion
D. Personal selling
36. What is the role of intermediaries in a distribution channel?
A. To manufacture products
B. To transport goods from the manufacturer to the consumer
C. To provide financial services to the manufacturer
D. To develop new product ideas
37. What is the term for the activities involved in selling products directly to final consumers for their personal, non-business use?
A. Wholesaling
B. Retailing
C. Distribution
D. Supply chain management
38. A company uses social media influencers to promote its products. This is an example of which promotional strategy?
A. Direct marketing
B. Personal selling
C. Public relations
D. Advertising
39. What is the ‘break-even point’ in pricing?
A. The point at which a company starts making a profit
B. The point at which total revenue equals total costs
C. The point at which a company’s market share equals its competitor’s
D. The point at which a product reaches the end of its life cycle
40. Which of the following is an example of ‘value-based pricing’?
A. Setting prices based on production costs
B. Setting prices based on what customers are willing to pay
C. Setting prices based on competitor prices
D. Setting prices based on government regulations
41. Which promotional tool is most effective for building long-term relationships with customers?
A. Advertising
B. Sales promotion
C. Direct marketing
D. Public relations
42. A company decides to offer a higher price for a product that is perceived as having higher quality. Which pricing strategy is this?
A. Penetration pricing
B. Economy pricing
C. Premium pricing
D. Competitive pricing
43. A company decides to match the prices of its competitors. Which pricing strategy is this?
A. Cost-plus pricing
B. Value pricing
C. Competitive pricing
D. Skimming pricing
44. Which of the following is NOT a core element of the marketing mix?
A. Place
B. Promotion
C. People
D. Price
45. A company offers a discount to customers who purchase a product in bulk. This is an example of?
A. Public relations
B. Advertising
C. Sales promotion
D. Personal selling
46. Which of the following is NOT a major decision involved in developing an advertising program?
A. Setting advertising objectives
B. Setting the product’s manufacturing cost
C. Choosing the advertising media
D. Evaluating advertising campaigns
47. Which of the following is a disadvantage of using a skimming pricing strategy?
A. It may attract competitors to enter the market
B. It may leave money on the table by pricing too low
C. It may not cover production costs
D. It may not be suitable for new products
48. What is the key difference between advertising and public relations?
A. Advertising is always free, while public relations is paid
B. Advertising is paid media, while public relations is earned media
C. Advertising is targeted at internal stakeholders, while public relations is for external audiences
D. There is no difference; the terms are interchangeable
49. A company launches a new product with a low price and heavy promotion. They are most likely pursuing what?
A. A market skimming strategy
B. A market penetration strategy
C. A cost-plus pricing strategy
D. A competitive parity strategy
50. What is ‘channel conflict’ in the context of distribution?
A. A disagreement between a manufacturer and its suppliers
B. A disagreement between different intermediaries in the same distribution channel
C. A disagreement between a company and its customers
D. A disagreement between different departments within a company
51. A retailer decides to offer a ‘buy one, get one free’ promotion. Which element of the marketing mix does this primarily affect?
A. Product
B. Price
C. Place
D. Promotion
52. What is the primary goal of integrated marketing communications (IMC)?
A. To maximize the number of promotional channels used
B. To ensure a consistent and unified message across all marketing channels
C. To reduce the overall marketing budget
D. To target only the most profitable customer segments
53. Which pricing strategy involves setting a low initial price to attract a large number of buyers and gain a large market share?
A. Premium pricing
B. Cost-plus pricing
C. Penetration pricing
D. Skimming pricing
54. A company creates a series of videos showcasing its commitment to sustainability. This is an example of?
A. Sales promotion
B. Advertising
C. Public relations
D. Direct marketing
55. A company decides to launch a new product line with a high price to capture early adopters who are willing to pay a premium. Which pricing strategy is this?
A. Penetration pricing
B. Economy pricing
C. Skimming pricing
D. Competitive pricing
56. What is ‘buzz marketing’ primarily focused on achieving?
A. Creating viral word-of-mouth about a product or service
B. Securing endorsements from celebrity figures
C. Running cost-effective advertising campaigns
D. Improving customer service satisfaction rates
57. Which of the following is an example of a ‘place’ decision in the marketing mix?
A. Designing a new product feature
B. Setting the retail price of a product
C. Choosing the distribution channels for a product
D. Creating a television advertisement
58. Which of the following is an example of a direct distribution channel?
A. Selling products through a retailer
B. Selling products through a wholesaler
C. Selling products directly to consumers online
D. Selling products through a distributor
59. What is the purpose of a ‘push’ promotional strategy?
A. To encourage consumers to demand the product from retailers
B. To encourage retailers to stock and promote the product
C. To create a viral marketing campaign
D. To build brand awareness through social media
60. Which of the following best describes ‘direct marketing’?
A. Marketing through intermediaries such as retailers
B. Marketing directly to consumers through personalized communication
C. Marketing using only online channels
D. Marketing that focuses solely on price promotions
61. Which of the following is an example of behavioral segmentation?
A. Grouping customers based on their social class.
B. Dividing the market based on knowledge, attitudes, uses, or responses to a product.
C. Segmenting the market based on geographical regions.
D. Grouping customers by their age and life-cycle stage.
62. A company discovers that a segment they are targeting is not accessible through existing distribution channels. Which requirement for effective segmentation is NOT being met?
A. Measurable.
B. Substantial.
C. Accessible.
D. Differentiable.
63. Which of the following is a requirement for effective segmentation?
A. The segment must be immeasurable.
B. The segment must be substantial.
C. The segment must be unreachable.
D. The segment must be heterogeneous within itself.
64. What is the main advantage of using micromarketing?
A. It allows companies to reach a mass audience with a single message.
B. It enables companies to tailor products and marketing programs to the needs and wants of specific individuals and local customer segments.
C. It reduces marketing costs by standardizing the marketing mix.
D. It simplifies the marketing process by focusing on broad market segments.
65. What is the potential benefit of using multiple segmentation bases?
A. It simplifies the marketing process.
B. It allows for more precise identification of target groups.
C. It reduces marketing costs.
D. It guarantees higher sales volume.
66. A luxury hotel chain positions itself as offering ‘unparalleled personalized service’. What type of differentiation is this?
A. Price differentiation.
B. Service differentiation.
C. Channel differentiation.
D. Product differentiation.
67. A company targets customers who are environmentally conscious and willing to pay a premium for sustainable products. This is an example of:
A. Undifferentiated marketing
B. Differentiated marketing
C. Concentrated marketing
D. Micromarketing
68. A company segments its market based on users who are ‘early adopters’ of new technology. Which type of segmentation is this?
A. Demographic segmentation.
B. Geographic segmentation.
C. Psychographic segmentation.
D. Behavioral segmentation.
69. What does ‘differentiation’ refer to in the context of marketing strategy?
A. Creating a product that is identical to competitors’.
B. Creating superior customer value by actually differentiating the company’s offering.
C. Offering the product at the lowest possible price.
D. Ignoring the needs and wants of specific customer segments.
70. What is the purpose of perceptual positioning maps?
A. To show the geographical distribution of customers.
B. To illustrate consumer perceptions of their brands versus those of competing products on important buying dimensions.
C. To track the sales performance of different products.
D. To analyze the cost structure of different marketing campaigns.
71. A company positions its product as the ‘lowest-priced option’ in the market. What potential risk does this positioning strategy carry?
A. Customers may perceive the product as low quality.
B. Competitors may easily undercut the price.
C. The company may struggle to cover its costs.
D. All of the above.
72. Which of the following best describes a ‘value proposition’?
A. A statement of the company’s mission.
B. How a company will create differentiated values for its target customers.
C. The price point at which a product is sold.
D. The advertising slogan of a company.
73. Which of the following is a potential drawback of using a differentiated marketing strategy?
A. Higher marketing costs due to creating separate offers for each segment.
B. Missing out on potential economies of scale.
C. Increased risk of cannibalization of existing products.
D. All of the above.
74. What is ‘positioning’ in marketing?
A. The physical location where a product is sold.
B. Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
C. The process of setting the price of a product.
D. The distribution channels used to make a product available.
75. What is the key difference between concentrated marketing and micromarketing?
A. Concentrated marketing targets a smaller segment than micromarketing.
B. Micromarketing tailors to individual customers or very small local segments, while concentrated marketing focuses on a larger, but still specific, segment.
C. Concentrated marketing is more expensive than micromarketing.
D. Micromarketing is only used for online businesses.
76. A company decides to target affluent professionals in urban areas with its new line of luxury watches. Which targeting strategy is this?
A. Undifferentiated marketing.
B. Differentiated marketing.
C. Concentrated marketing.
D. Micromarketing.
77. Which of the following is NOT a core aspect of customer value-driven marketing strategy?
A. Selecting customers to serve.
B. Choosing a value proposition.
C. Implementing a complex pricing strategy.
D. Positioning the offering in the minds of consumers.
78. A small bakery decides to focus solely on gluten-free products for customers with celiac disease. Which targeting strategy are they using?
A. Undifferentiated marketing.
B. Differentiated marketing.
C. Concentrated marketing.
D. Micromarketing.
79. When choosing a differentiation and positioning strategy, what is the most important factor to consider?
A. What is important to the company’s management.
B. What is profitable for the company.
C. What is important and valuable to the target customers.
D. What is easy for the company to implement.
80. Which of the following is NOT a typical base for segmenting business markets?
A. Demographics (industry, company size).
B. Operating characteristics.
C. Purchasing approaches.
D. Lifestyles and personality.
81. Which of the following is an example of demographic segmentation?
A. Grouping customers based on their lifestyles and values.
B. Dividing the market based on usage rate of a product.
C. Segmenting the market based on age, gender, income, and education.
D. Grouping customers by their personality characteristics.
82. What is psychographic segmentation primarily based on?
A. Geographical location.
B. Consumer lifestyles, social class, and personality characteristics.
C. Product usage rate.
D. Age and gender.
83. A local grocery store sends out weekly coupons based on customers’ past purchase history. This is an example of:
A. Mass marketing
B. Micromarketing
C. Differentiated marketing
D. Niche Marketing
84. What is the risk of not differentiating your product or service from competitors?
A. Customers will be more loyal to your brand.
B. Your product will stand out in the market.
C. Customers will see your product as a commodity and choose based on price alone.
D. You will attract a wider range of customers.
85. What is the primary goal of market segmentation?
A. To increase the overall market size.
B. To identify and profile distinct groups of buyers who might require separate products or marketing mixes.
C. To reduce the cost of marketing campaigns.
D. To appeal to all customers in the same way.
86. A company is deciding whether to use undifferentiated marketing or differentiated marketing. What is one factor they should consider?
A. The level of product standardization.
B. The number of competitors in the market.
C. The preferences of the company’s CEO.
D. The political climate.
87. A car manufacturer positions its vehicles as ‘the safest cars on the road’. What type of differentiation is this?
A. Price differentiation.
B. Service differentiation.
C. Image differentiation.
D. Product differentiation.
88. A company claims its product is ‘the most innovative’ in the market. What should they do to effectively communicate this positioning?
A. Simply state the claim in their advertising.
B. Substantiate the claim with evidence and communicate it clearly and consistently.
C. Lower the price of the product.
D. Ignore competitors’ claims.
89. What is the potential ethical concern associated with targeting vulnerable populations, such as children, with marketing messages?
A. It may lead to increased competition among businesses.
B. It may exploit their naiveté and lead to negative consequences.
C. It may result in lower profits for companies.
D. It may create unrealistic expectations among consumers.
90. What is the most important factor when choosing which segments to target?
A. The size of the segment
B. The profitability of the segment
C. The company’s ability to serve the segment effectively
D. All of the above
91. What is the first step in marketing channel design?
A. Identifying major channel alternatives
B. Setting channel objectives
C. Evaluating the major alternatives
D. Selecting channel members
92. What is the goal of integrated logistics management?
A. To maximize the cost of logistics operations.
B. To emphasize individual logistics functions over the overall system.
C. To recognize that providing better customer service while trimming distribution costs requires teamwork, both inside the company and among all the marketing channel organizations.
D. To minimize communication between channel partners.
93. What is the role of intermediaries in a marketing channel?
A. To increase the cost of products for consumers.
B. To reduce the efficiency of the distribution process.
C. To create greater efficiency in making goods available to target markets.
D. To complicate the flow of goods from manufacturers to consumers.
94. Which of the following best describes the term ‘supply chain’?
A. A system that only involves the manufacturing process.
B. A network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product.
C. A limited group of suppliers and distributors.
D. The process of transporting finished goods to retailers.
95. A small business wants to expand its market reach but has limited resources. Which distribution strategy would be the MOST suitable?
A. Exclusive distribution
B. Intensive distribution
C. Selective distribution
D. Direct distribution
96. What is reverse logistics?
A. The process of moving goods from the supplier to the manufacturer.
B. The process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods, and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.
C. The process of distributing goods through indirect channels.
D. The process of reducing the number of channel levels.
97. Which of the following is NOT a factor to consider when choosing transportation modes?
A. Cost
B. Speed
C. Reliability
D. Product color
98. Which of the following is NOT a core function of marketing channels?
A. Information
B. Promotion
C. Negotiation
D. Product design
99. What is the primary goal of supply chain management?
A. To maximize production output at any cost.
B. To create a seamless value chain from suppliers to end users.
C. To minimize the number of suppliers.
D. To focus solely on internal operations and ignore external partners.
100. A company wants to improve its order processing and delivery speed. Which logistics function should it focus on?
A. Warehousing
B. Inventory management
C. Transportation
D. Materials handling
101. What is the key benefit of using a vendor-managed inventory (VMI) system?
A. Reduced transportation costs for the vendor.
B. Increased inventory holding costs for the retailer.
C. Improved inventory efficiency and reduced stockouts for the retailer.
D. Reduced communication between the vendor and retailer.
102. Which of the following is an example of a contractual vertical marketing system (VMS)?
A. Corporate ownership of all levels of the distribution channel.
B. Independent firms at different levels of production and distribution joining together through contracts.
C. A distribution channel where one member owns all other members.
D. A channel where leadership is assumed through the size and power of one or a few dominant channel members.
103. How does a just-in-time (JIT) inventory system primarily benefit a company?
A. By increasing warehousing costs.
B. By minimizing inventory holding costs.
C. By increasing transportation costs.
D. By reducing the variety of products offered.
104. What is the primary difference between intensive distribution and exclusive distribution?
A. Intensive distribution aims for wide availability, while exclusive distribution limits the number of intermediaries.
B. Intensive distribution focuses on high-end products, while exclusive distribution focuses on commodity products.
C. Intensive distribution involves more advertising, while exclusive distribution involves less advertising.
D. Intensive distribution is used for services, while exclusive distribution is used for physical goods.
105. A company uses both online and brick-and-mortar stores to reach customers. What is this an example of?
A. Exclusive distribution
B. Intensive distribution
C. Multichannel distribution
D. Selective distribution
106. How can companies manage channel conflict?
A. By ignoring the conflict and hoping it resolves itself.
B. By establishing superordinate goals.
C. By always prioritizing the company’s own interests.
D. By cutting off communication with channel partners.
107. What is the potential drawback of using multiple channels to distribute products?
A. Increased market coverage
B. Reduced channel conflict
C. Potential for channel conflict
D. Improved customer service
108. What is the primary disadvantage of a direct marketing channel?
A. Higher prices for consumers.
B. Reduced control over the distribution process.
C. Requires significant investment in logistics and customer service.
D. Inability to reach a wide geographic area.
109. Why is choosing the right marketing channels important for a company’s success?
A. It only affects the company’s logistics costs.
B. It directly affects the company’s sales and profitability.
C. It has no impact on customer satisfaction.
D. It only matters for large corporations.
110. What is disintermediation?
A. Adding new layers of intermediaries to a channel.
B. Cutting out marketing channel intermediaries by product or service producers or displacing traditional resellers with radical new types of intermediaries.
C. Increasing the number of channel levels.
D. Decreasing the number of products offered through a channel.
111. Which of the following is an example of a corporate VMS?
A. A retailer purchasing a manufacturing company.
B. A manufacturer signing contracts with independent distributors.
C. A group of independent retailers forming a cooperative.
D. A powerful manufacturer dictating terms to its suppliers.
112. Which of the following is NOT a typical function of a warehouse?
A. Storing goods
B. Breaking bulk
C. Combining goods
D. Product development
113. What is the primary advantage of using multimodal transportation?
A. It always offers the fastest delivery time.
B. It combines the strengths of different transportation modes for efficiency.
C. It is typically the most expensive transportation option.
D. It is only suitable for small packages.
114. A manufacturer of luxury watches only sells its products through a few authorized retailers in each major city. Which distribution strategy is the manufacturer using?
A. Intensive distribution
B. Exclusive distribution
C. Selective distribution
D. Direct distribution
115. What is the purpose of a distribution center?
A. To manufacture products.
B. To store goods for longer periods.
C. To move goods rather than just store them.
D. To provide marketing research data.
116. Which of the following is NOT a major logistics function?
A. Warehousing
B. Inventory management
C. Transportation
D. Marketing research
117. Which of the following is an example of a horizontal marketing system?
A. A company owning its suppliers and distributors.
B. Two or more companies at one level join together to follow a new marketing opportunity.
C. A franchise organization.
D. A channel where leadership is assumed through the size and power of one or a few dominant channel members.
118. Which channel conflict occurs between firms at the same level of the channel?
A. Vertical conflict
B. Horizontal conflict
C. Diagonal conflict
D. Reverse conflict
119. A company decides to bypass intermediaries and sell directly to consumers. What channel arrangement is this an example of?
A. Indirect marketing channel
B. Direct marketing channel
C. Multichannel distribution
D. Reverse channel
120. What is the role of logistics information management in a supply chain?
A. To manage the physical flow of goods.
B. To share, forecast, transmit, and track logistics information.
C. To manage the financial aspects of the supply chain.
D. To design the packaging for products.
121. A company that focuses on continuously improving its products but neglects to research customer needs is likely suffering from:
A. Marketing myopia.
B. Customer-driven marketing.
C. Societal marketing.
D. Sustainable marketing.
122. Which of the following is an example of ‘customer delight’?
A. Meeting a customer’s basic expectations.
B. Providing a service that is slightly better than competitors.
C. Exceeding customer expectations in an unexpected and memorable way.
D. Offering a product at the lowest possible price.
123. How does ‘customer-perceived value’ differ from ‘customer satisfaction’?
A. Customer-perceived value is an objective measure, while customer satisfaction is subjective.
B. Customer-perceived value is 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, while customer satisfaction is the extent to which perceived performance matches expectations.
C. Customer satisfaction is a measure of profitability, while customer-perceived value is not.
D. Customer-perceived value is a measure of customer loyalty, while customer satisfaction is not.
124. How does the concept of ‘customer engagement’ differ from ‘customer satisfaction’?
A. Customer engagement focuses on passive feedback, while customer satisfaction involves active participation.
B. Customer engagement aims to foster a deeper, more interactive relationship, while customer satisfaction is a measure of contentment with a transaction.
C. Customer satisfaction is more important for long-term business success than customer engagement.
D. Customer engagement is primarily focused on reducing customer complaints.
125. What is the purpose of a SWOT analysis?
A. To identify a company’s Strengths, Weaknesses, Opportunities, and Threats.
B. To develop a marketing budget.
C. To measure customer satisfaction.
D. To analyze competitor pricing strategies.
126. The total combined customer lifetime values of all of the company’s current and potential customers is called:
A. Share of customer.
B. Customer equity.
C. Customer lifetime value.
D. Customer relationship management.
127. 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.
128. Which of the following is an example of a ‘strength’ in a SWOT analysis?
A. A growing market demand for a product.
B. A strong brand reputation.
C. Increasing competition in the industry.
D. A lack of financial resources.
129. Which of the following marketing management orientations focuses primarily on achieving high production efficiency and wide distribution?
A. The product concept.
B. The selling concept.
C. The production concept.
D. The marketing concept.
130. Which of the following is an example of a company practicing customer-driven marketing?
A. Developing products based solely on internal research and development.
B. Creating products and services to meet the specific needs of a target market.
C. Focusing on mass production to reduce costs and increase availability.
D. Using aggressive sales tactics to convince customers to buy.
131. What is the primary focus of the ‘partner relationship management’ (PRM) concept?
A. Building relationships with suppliers and distributors to improve the overall value delivery network.
B. Managing relationships with individual customers to increase loyalty.
C. Focusing on internal employee relationships to improve productivity.
D. Maintaining relationships with government agencies to ensure compliance.
132. Which of the following describes a ‘butterfly’ customer in the context of customer relationship groups?
A. High profitability, short-term loyalty.
B. Low profitability, long-term loyalty.
C. High profitability, long-term loyalty.
D. Low profitability, short-term loyalty.
133. In the context of marketing, ‘share of customer’ refers to:
A. The percentage of the company’s stock owned by customers.
B. The portion of the customer’s purchasing that a company gets in its product categories.
C. The company’s market share in a particular industry.
D. The number of customers a company has compared to its competitors.
134. What is the ultimate goal of customer relationship management?
A. To maximize sales volume in the short term.
B. To improve production efficiency.
C. To increase customer equity and long-term profitability.
D. To minimize marketing expenses.
135. A company that segments its market based on lifestyle and personality characteristics is using:
A. Geographic segmentation.
B. Demographic segmentation.
C. Psychographic segmentation.
D. Behavioral segmentation.
136. A mission statement that is too narrow may result in:
A. A lack of focus and direction.
B. Missed opportunities for growth and innovation.
C. Increased employee motivation.
D. Improved customer satisfaction.
137. Which of the following is a potential drawback of the ‘selling concept’?
A. It may lead to a focus on building long-term customer relationships.
B. It may overlook customer needs and satisfaction.
C. It may result in lower production costs.
D. It may neglect the importance of product quality.
138. In the context of strategic planning, what is ‘market penetration’?
A. Developing new products for new markets.
B. Increasing sales of current products in current markets.
C. Entering new markets with existing products.
D. Selling off a business unit to focus on core competencies.
139. Which of the following is NOT a key element of a customer-driven marketing strategy?
A. Market segmentation.
B. Differentiation.
C. Mass marketing.
D. Targeting.
140. A potential downside of focusing too heavily on customer relationship management (CRM) is:
A. Neglecting the needs of certain customer segments.
B. Creating stronger customer loyalty.
C. Increasing customer profitability.
D. Improving overall marketing effectiveness.
141. Which of the following is NOT a core customer value consideration when developing a marketing strategy?
A. Understanding the customer’s unmet needs and wants.
B. Determining the customer’s financial ability to purchase.
C. Identifying the benefits customers seek from products or services.
D. Analyzing the customer’s perceptions of value and satisfaction.
142. How has the digital age affected the way companies manage customer relationships?
A. It has decreased the importance of customer feedback.
B. It has made it more difficult to personalize marketing messages.
C. It has provided new tools to build closer, more personalized relationships.
D. It has reduced the need for customer service departments.
143. What is ‘customer lifetime value’?
A. The total revenue a company earns in its lifetime.
B. The combined sales of all products a customer purchases.
C. The value of the customer at a specific point in time.
D. The value of the entire stream of purchases a customer makes over a lifetime of patronage.
144. Building, keeping, and growing profitable customer relationships by delivering superior customer value and satisfaction defines:
A. Customer lifetime value.
B. Customer equity.
C. Customer relationship management.
D. Partner relationship management.
145. Which marketing orientation considers the long-run welfare of consumers, the company, and society?
A. Selling concept.
B. Marketing concept.
C. Societal marketing concept.
D. Production concept.
146. Which of the following is a characteristic of ‘strangers’ in the context of customer relationship groups?
A. High potential profitability and long-term loyalty.
B. Low potential profitability and short-term loyalty.
C. High potential profitability and short-term loyalty.
D. Low potential profitability and little projected loyalty.
147. A company that adopts a ‘socially responsible’ marketing approach would:
A. Focus solely on maximizing profits for shareholders.
B. Ignore the environmental impact of its products and services.
C. Consider the ethical and societal implications of its marketing decisions.
D. Prioritize short-term sales gains over long-term customer relationships.
148. What is ‘market segmentation’?
A. The process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors.
B. The process of promoting a product to a mass audience.
C. The process of analyzing competitor pricing strategies.
D. The process of distributing products through various channels.
149. Which growth strategy involves offering modified or new products to current markets?
A. Market development.
B. Diversification.
C. Product development.
D. Market penetration.
150. A firm that believes that customers will not buy enough of its products unless it undertakes a large-scale selling and promotion effort is practicing the:
A. Marketing concept.
B. Product concept.
C. Production concept.
D. Selling concept.
