UNIT II : Marketing
TOPICS TO BE COVERED
- Marketing Tasks, Concepts and Tools, Marketing Environment.
- Consumer Behaviour and Market Segmentation.
- Product decisions
- Pricing decisions
- Distribution decisions
- Promotion decisions
- Marketing Researchs
- On-line marketing
- Direct Marketing; Social, ethical and legal aspects of marketing in India.
UNIT II MARKETING – COMMERCE III
UGC
1. Which
of the following information forms available to the marketing manager can
usually be accessed more quickly and cheaply than other information sources?
a. Marketing intelligence
b. Marketing research
c. Customer profiles
d. Internal databases
2. All
of the following are considered to be drawbacks of local marketing EXCEPT:
a. it can drive up manufacturing and marketing
costs by reducing economies of scale.
b. it can create logistical problems when the
company tries to meet varied requirements.
c. it can attract unwanted competition.
d. it can dilute the brand's overall image.
3. Cognitive
dissonance occurs in which stage of the buyer decision process model?
a. Need recognition
b. Information search
c. Evaluation of alternatives
d. Postpurchase behavior
4. That
the company that overlooks new and better ways to do things will eventually
lose customers to another company that has found a better way of serving
customer needs is a major tenet of:
a. innovative marketing.
b. consumer-oriented marketing.
c. value marketing.
d. sense-of-mission marketing.
5. The
biggest or greatest amount of involvement in a foreign market comes through
which of the following?
a. Exporting
b. Joint venturing
c. Licensing
d. Direct investment
6. A
______________ is a good offered either free or at low cost as an incentive to
buy a product.
a. patronage reward
b. spiff
c. price pack
d. premium
7. Setting
call objectives is done during which of the following stages of the selling
process?
a. Prospecting
b. Preapproach
c. Approach
d. Handling objections
8. Pricing
to cover variable costs and some fixed costs, as in the case of some automobile
distributorships that sell below total costs, is typical of which of the
following pricing objectives?
a. Current profit maximization
b. Product quality leadership
c. Market share leadership
d. Survival
9. In
determining salesforce size, when a company groups accounts into different size
classes and then determines the number of salespeople needed to call on them
the desired number of times, it is called the:
a. key-size approach.
b. work-load approach.
c. product-need approach.
d. call-service approach.
10. ____________________ are products bought by individuals and
organizations for further processing or for use in conducting a business.
a. Consumer products
b. Services
c. Industrial products
d. Specialty products
11. All of the following would be ways to segment within the
category of psychographic segmentation EXCEPT:
a. social class.
b. occupation.
c. lifestyle.
d. personality.
12. The __________________ is a person within a reference group who,
because of special skills, knowledge, personality, or other characteristics,
exerts influence on others.
a. facilitator
b. referent actor
c. opinion leader
d. social role player
13. _______________ describes changes in an individual's behavior
arising from experience.
a. Modeling
b. Motivation
c. Perception
d. Learning
14. Concerns that the manufacturers of harmful products such as
tobacco have influence on lawmakers to the detriment of the public interest is
used as evidence of which criticism of marketing?
a. Too much advertising.
b. Too few social goods.
c. Cultural pollution.
d. Too much political power.
15. The Internet evolved from a network created by _________________
during the 1960s.
a. the Commerce Department
b. the Massachusetts Institute of Technology
(MIT)
c. Northwestern University
d. the Defense Department
16. In terms of execution styles, a family seated at the dinner
table enjoying the advertised product would be an example of which of the
following types of advertising?
a. Slice of life
b. Lifestyle
c. Mood or imagery
d. Personality symbol
17. A child in the United States is normally exposed to all of the
following values EXCEPT:
a. achievement and success.
b. activity and involvement.
c. material comfort.
d. collectivism.
18. ________________ have contractual authority to sell a
manufacturer's entire output.
a. Selling agents
b. Rack jobbers
c. Manufacturer's agents
d. Purchasing agents
19. Sellers that handle their own exports are engaged in:
a. direct exporting.
b. indirect exporting.
c. licensing.
d. contract manufacturing.
20. More and more salespeople are being evaluated and compensated
based on different measures than in the past. All of the following are
illustrations of those measures EXCEPT:
a. long-term customer satisfaction.
b. competitive predatory pricing performance.
c. full customer service.
d. retention rates.
21. ________________ includes practices such as overstating the
product's features or performance, luring the customer to the store for a
bargain that is out of stock, or running rigged contests.
a. Deceptive promotion
b. Deceptive packaging
c. Deceptive pricing
d. Deceptive cost structure
22. The orange juice manufacturers know that orange juice is most
often consumed in the mornings. However, they would like to change this and
make the drink acceptable during other time periods during the day. Which form
of segmentation would they need to work with and establish strategy reflective
of their desires?
a. gender segmentation
b. benefit segmentation
c. occasion segmentation
d. age and life-cycle segmentation
23. The typical method of retail operation used by supermarkets and
catalog showrooms is called:
a. self-service retailing.
b. limited-service retailing.
c. full-service retailing.
d. service-merchandiser.
24. A(n) __________________ are computerized collections of
information obtained from data sources within the company.
a. retrieval systems
b. marketing research reports
c. flow diagrams and PERT charts
d. internal databases
25. The total number of items that the company carries within its
product lines refers to the ___________ of the product mix.
a. width
b. depth
c. length
d. consistency
26. The use of price points for reference to different levels of
quality for a company's related products is typical of which product-mix
pricing strategy?
a. Optional-product pricing
b. Captive-product pricing
c. By-product pricing
d. Product line pricing
27. If a company's objective were to reach masses of buyers that
were geographically dispersed at a low cost per exposure, the company would
likely choose which of the following promotion forms?
a. Advertising
b. Personal selling
c. Public relations
d. Sales promotion
28. Using a successful brand name to introduce additional items in a
given product category under the same brand name (such as new flavors, forms,
colors, added ingredients, or package sizes) is called a(n):
a. line extension.
b. brand extension.
c. multibranding.
d. new brands.
29. Successful service companies focus their attention on both their
customers and their employees. They understand ___________________, which links
service firm profits with employee and customer satisfaction.
a. internal marketing
b. service-profit chains
c. interactive marketing
d. service differentiation
30. __________________ is quoted as saying that "everyone lives
by selling something."
a. Bill Gates
b. Robert Louis Stevenson
c. Arthur Miller
d. Henry Ford
31. Anything that can be offered to a market for attention,
acquisition, use, or consumption that might satisfy a want or need is called
a(n):
a. idea.
b. demand.
c. product.
d. service.
32. The type of sales presentation approach that requires good
listening and problem-solving skills is the:
a. canned approach.
b. formula approach.
c. need-satisfaction approach.
d. critical-thinking approach.
33. Yahoo, Infoseek, and Excite are all called:
a. browsers.
b. Webcasters.
c. search engines.
d. software.
34. Successful ________________ depends on how well a company blends
its people, organizational structure, decision and reward systems, and company
culture into a cohesive program that supports its strategies.
a. marketing strategy
b. marketing control
c. marketing analysis
d. marketing implementation
35. Wal-Mart owned Sam's club is an example of a retail form called
a(n):
a. factory outlet.
b. super specialty store.
c. seconds store.
d. warehouse club.
36. ______________ is the general term for a buying and selling
process that is supported by electronic means.
a. Internet commerce
b. Web commerce
c. Computer commerce
d. Electronic commerce
37. When a company enters a new product category for which its
current brand names are not appropriate, it will likely follow which of the following
brand strategies?
a. Product extensions
b. Line extensions
c. Brand extensions
d. New brands
38. ________________ consists of dividing a market into distinct
groups of buyers on the basis of needs, characteristics, or behavior who might
require separate products or marketing mixes.
a. Product differentiation
b. Market segmentation
c. Market targeting
d. Market positioning
39. _________________ are ads that appear while subscribers are
surfing online services or Web sites, including banners, pop-up windows,
"tickers," and "roadblocks."
a. Online infomercials
b. Online ads
c. Online broadcasts
d. Online bullets
40. In terms of special product life cycles, a _____________ is a
basic and distinctive mode of expression.
a. genre
b. style
c. fashion
d. fad
41. _________________ is a principle of enlightened marketing that
requires that a company seek real product and marketing improvements.
a. Innovative marketing
b. Consumer-oriented marketing
c. Value marketing
d. Sense-of-mission marketing
42. Many U.S. firms have sought relief from foreign competition by
demanding protectionism policies by the U.S. government. A better way for
companies to compete is to expand into foreign markets and:
a. lower prices.
b. increase promotion both at home and abroad.
c. continuously improve their products at home.
d. join into cartels at home.
43. __________________ is the process of evaluating each market
segment's attractiveness and selecting one or more segments to enter.
a. Mass marketing
b. Market segmentation
c. Market targeting
d. Market positioning
44. It is a fact that there are 24 million left-handed people in the
United States, however, most marketers do not attempt to appeal to or design
products for this group because there is little in the way of census data about
this group. Therefore, this group fails in one of the requirements for
effective segmentation. Which of the following is most likely to apply in this
case?
a. actionable
b. substantial
c. differentiable
d. measurable
45. The fact that services are sold, produced, and consumed at the
same time refers to which of the following service characteristics?
a. Intangibility
b. Inseparability
c. Variability
d. Perishability
46. _______________ factors are the most popular bases for
segmenting customer groups.
a. Geographic
b. Demographic
c. Psychographic
d. Behavioral
47. A manufacturer has four sponsorship options. A _________________
is a brand created and owned by a reseller of a product or service.
a. licensed brand
b. manufacturer's brand
c. private brand
d. co-brand
48. When Michael Jordan and Tiger Woods use marketing to promote
their careers and improve their impact and incomes, they are using:
a. cause-related marketing.
b. idea marketing.
c. nonprofit marketing.
d. person marketing.
49. 3M runs a Pollution Prevention Pays program that has led to a
substantial reduction in pollution and costs. This would be an example of
responding to which of the following?
a. Nader's raiders.
b. The "green movement."
c. Governmental regulation.
d. International competition.
50. When an international seller sells a plant, equipment, or
technology to another country and agrees to take payment in the resulting
products, it is called:
a. barter.
b. buy-back.
c. counterpurchase.
d. like-value exchange.
51. The stage is the product life cycle that focuses on expanding
market and creating product awareness and trial is the:
a. decline stage.
b. introduction stage.
c. growth stage.
d. maturity stage.
52. Which of the following promotional budget methods wrongly views
sales as the cause of promotion rather than as the result?
a. Affordable method
b. Percentage-of-Sales method
c. Competitive-parity method
d. Objective-and-task method
53. If the field salesforce has been supplied with new leads (via
the telephone) that have been qualified, they have probably been assisted by:
a. master salespersons.
b. sales assistants.
c. technical support persons.
d. telemarketers.
54. ________________ is setting the price steps between various
products in a product line based on cost differences between the products,
customer evaluations of different features, and competitors' prices.
a. Optional-product pricing
b. Captive-product pricing
c. Product line pricing
d. By-product pricing
55. Rolls Royce uses which of the following distribution formats?
a. Intensive distribution
b. Exclusive distribution
c. Selective distribution
d. Open distribution
56. Drop shippers perform which of the following functions?
a. Assumes title and ships coal, lumber, or
heavy equipment to a buyer.
b. Stocks the bread rack in a grocery store.
c. Maintains, owns, and stocks a CD display in a
grocery store.
d. Sells jewelry out of a catalog.
57. A set of interdependent organizations involved in the process of
making a product or service available for use or consumption by the consumer or
business user is called a(n):
a. retailer.
b. wholesaler.
c. distribution channel.
d. logistics.
58. ______________ beliefs and values are open to some degree of
change.
a. Crucial
b. Core
c. Primary
d. Secondary
59. According to Engel's law, as income rises:
a. the percentage spent on food rises.
b. the percentage spent on housing increases.
c. the percentage spent on other categories
increases.
d. the percentage spent on savings remains
constant.
60. The Wheeler-Lea Act gives the Federal Trade Commission the power
to regulate:
a. interstate commerce.
b. marketing ethics.
c. unfair and deceptive acts or practices.
d. competitive advertising of objective product
benefits.
61. In evaluating messages for advertising, telling how the product
is better than the competing brands aims at making the ad:
a. meaningful.
b. distinctive.
c. believable.
d. remembered.
62. When an importing country sets limits on the amount of goods it
will accept in certain product categories it is called a(n):
a. quota.
b. barrier.
c. tariff.
d. embargo.
63. According to the price/quality strategy matrix, when a company
overprices its product in relation to its quality it is considered to be using
which type of strategy?
a. Good-value strategy.
b. Premium strategy.
c. Overcharging strategy.
d. Snob strategy.
64. ___________________ is the practice of adopting policies and
developing strategies that both sustain the environment and produce profits for
the company.
a. Environmentalism
b. Environmental sustainability
c. Consumerism
d. Consumer accountability
65. A ________________ is a promotion strategy that calls for using
the sales force and trade promotion to move the product through channels.
a. push strategy
b. pull strategy
c. blocking strategy
d. integrated strategy
66. Consumer goods with unique characteristics or brand identification
often requiring a special purchase effort are called:
a. custom products.
b. specialty products.
c. convenience products.
d. shopping products.
67. Even though buying roles in the family change constantly, the
___________ has traditionally been the main purchasing agent for the family.
a. wife
b. husband
c. teenage children
d. grandparent
68. A(n) _______________________ is a retail store that carries a
narrow product line with a deep assortment within that line.
a. shopping goods store
b. convenience store
c. specialty store
d. department store
69. The purpose of strategic planning is to find ways in which the
company can best:
a. overcome losses.
b. use its strengths to take advantage of
attractive opportunities in the environment.
c. avoid paying taxes.
d. avoid the expense of costly research and
development while still getting the benefits.
70. Which of the following is NOT one of the five stages of
the buyer decision process?
a. need recognition
b. brand identification
c. information search
d. purchase decision
71. A _____________ is a need that is sufficiently pressing to
direct the person to seek satisfaction.
a. motive
b. want
c. demand
d. requirement
72. If a firm were to bid to do a "turnkey" operation where
they would choose a building site, designing a cement factory to build the
plant, hire construction crews, assemble materials and equipment to run the new
factory, and turn over the finished factory ready to operate to the owners, the
firm would be using which of the following?
a. Core process products selling
b. Design products selling
c. Reciprocal selling
d. Systems selling
73. According to the text, the most dramatic of the environments
that affect marketing and appears to be now shaping our world is the
________________ environment.
a. natural
b. demographic
c. economic
d. technological
74. The "in" suppliers are most likely to get nervous and
feel pressure to put their best foot forward in which of the following types of
buying situations?
a. modified rebuy
b. new task buying
c. straight rebuy
d. indirect rebuy
75. All of the following are ways that marketing plays a key role in
the company's strategic planning EXCEPT:
a. marketing provides a guiding philosophy.
b. marketing is the only discipline that can
provide a formal structure for the planning effort.
c. marketing provides inputs to strategic
planners by helping to identify attractive market opportunities.
d. within individual business units, marketing
designs strategies for reaching the unit's objectives.
76. Which of the following is foreign owned (even though it is
traditionally thought of as a U.S. company)?
a. IBM
b. Xerox
c. Kodak
d. Universal Studios
77. In an example discussed in your text, Johnson & Johnson's
recall of their Tylenol product following the discovery that several bottles of
Tylenol had been laced with cyanide is consistent with which business
philosophy?
a. The marketing concept.
b. The product concept.
c. The selling concept.
d. The societal marketing concept.
78. _________________ is the step in the selling process in which
the salesperson learns as much as possible about a prospective customer before
making a sales call.
a. Prospecting
b. Preapproach
c. Approach
d. Handling objections
79. A company's compensation plan should reflect its overall
marketing strategy. For example, if the overall strategy is to grow rapidly and
gain market share, the compensation plan should reward:
a. loyalty and perseverance.
b. spot selling and old product rejuvenation.
c. high sales performance and encourage
capturing new accounts.
d. high pressure situations and competitive
reaction.
80. Traditionally, companies have defined their businesses in
product terms or in technological terms. However, mission statements should be
all of the following EXCEPT:
a. market oriented.
b. a statement of religion.
c. motivating.
d. based on distinctive competencies.
81. A price reduction to buyers who buy in large volumes is called
a(n):
a. quantity discount.
b. cash discount.
c. seasonal discount.
d. trade discount.
82. R&D and engineering first produce the product concept into a
physical product during which of the following stages of the new product
development process?
a. Concept development and testing
b. Marketing strategy
c. Business analysis
d. Product development
83. All of the following are criticisms leveled against marketing by
critics EXCEPT:
a. harming consumers through high prices.
b. harming consumers through deceptive practices.
c. harming consumers through high-pressure
selling.
d. harming consumers through too many product
choices.
84. If Toyota describes one of its cars of the future as being
"a moderately priced subcompact designed as a second family car to be used
around town; the car is ideal for running errands and visiting friends,"
then the company has just stated a potential new product in terms of a(n):
a. product idea
b. product image
c. product concept
d. product feature
85. The primary reason that many companies work to become the
"low-cost producers" in their industry is because:
a. they can generate more advertising.
b. they can please top management.
c. they can gain tax advantages.
d. they can set lower prices that result in
greater sales and profits.
86. Conflicts between different levels of the same channel of
distribution are referred to as:
a. horizontal conflicts.
b. vertical conflicts.
c. layer-based conflicts.
d. parallel conflicts.
87. ________________ is a philosophy holding that a company's
marketing should support the best long-run performance of the marketing system.
a. Enlightened marketing
b. Myopic marketing
c. Fundamental marketing
d. Conceptual marketing
88. A company is practicing ________________ if it focuses on
subsegments with distinctive traits that may seek a special combination of
benefits.
a. micromarketing
b. niche marketing
c. mass marketing
d. segment marketing
89. If a consumer describes a car as being the "most economical
car on the market," then this descriptor is a:
a. rule.
b. attitude.
c. belief.
d. cue.
90. All of the following are commonly recognized promotion budget
formats EXCEPT:
a. the affordable method.
b. the LIFO method.
c. the percentage-of-sales method.
d. the objective-and-task method.
91. When a company reviews sales, costs, and profit projections for
a new product to find out whether these factors satisfy the company's
objectives, they are in which of the following new process development stages?
a. Concept development and testing.
b. Commercialization.
c. Business analysis.
d. Marketing strategy development.
92. _______________ is a strategy of using a successful brand name
to launch a new or modified product in a new category.
a. Duobranding
b. Line extension
c. Brand extension
d. Multibranding
93. The fact that services cannot be stored for later use or sale is
evidence of their:
a. intangibility.
b. inseparability.
c. variability.
d. perishability.
94. _________________ is the concept under which a company carefully
integrates and coordinates its many communications channels to deliver a clear,
consistent, and compelling message about the organization and its products.
a. The promotion mix
b. Integrated international affairs
c. Integrated marketing communications
d. Integrated demand characteristics
95. Catalog marketing is big business in the United States. The
average household receives ______________ catalogs per year.
a. 25
b. 50
c. 75
d. 100
96. A company faces several major decisions in international
marketing. The first of these decisions is often:
a. deciding whether to go international.
b. looking at the global marketing environment.
c. deciding which markets to enter.
d. deciding how to enter markets.
97. A ____________________ is the way consumers perceive an actual
or potential product.
a. product idea
b. product image
c. product concept
d. product feature
98. The American Marketing Association suggests a list of code of
ethics. All of the following are ethics suggested in the area of distribution EXCEPT:
a. not manipulating the availability of a product
for purpose of exploitation.
b. not using coercion in the marketing channel.
c. using gray marketers whenever possible to
save the consumer money.
d. not exerting undue influence over the
reseller's choice to handle a product.
99. Given recent information about growth trends and growth
potential of ethnic populations within the U.S. market, which of the following
ethnic groups would be a best bet to double during the next half century and
become one of the U.S. market's most viable segments?
a. Hispanics and Asians
b. African Americans
c. Western Europeans
d. Middle Eastern
100. All of the following are methods by which a company can divide up
its sales responsibilities EXCEPT:
a. territorial sales force structure.
b. pychographic trait sales force structure.
c. product sales force structure.
d. customer sales force structure.
101. If your company were to make a product such as a suit of clothes
and sold that product to a retailer, your company would have sold to the
___________ market.
a. reseller
b. business
c. government
d. service
102. The course of a product's sales and profits over its lifetime is
called:
a. the sales chart.
b. the dynamic growth curve.
c. the adoption cycle.
d. the product life cycle.
103. The type of trade-promotion discount in which manufacturers agree
to reduce the price to the retailer in exchange for the retailer's agreement to
feature the manufacturer's products in some way is called a(n):
a. discount.
b. allowance.
c. premium.
d. rebate.
104. The most logical budget setting method is found in the list below.
Which is it?
a. Affordable method
b. Percentage-of-Sales method
c. Competitive-parity method
d. Objective-and-task method
105. The place in the business buying behavior model where interpersonal
and individual influences might interact is called the:
a. environment.
b. response.
c. stimuli.
d. buying center.
106. When producers, wholesalers, and retailers act as a unified
system, they comprise a:
a. conventional marketing system.
b. power-based marketing system.
c. horizontal marketing system.
d. vertical marketing system.
107. One common misuse of marketing research findings in contemporary
business is the tendency for marketing research to:
a. become a vehicle for pitching the sponsor's
products.
b. become a vehicle for discriminating in the
marketplace.
c. become a means for raising prices.
d. become a means for unfair competition.
108. ______________ is a person's distinguishing psychological
characteristics that lead to relatively consistent and lasting responses to his
or her own environment.
a. Psychographics
b. Personality
c. Demographics
d. Lifestyle
109. ________________ has the advantage of being high in selectivity;
low cost; immediacy; and interactive capabilities.
a. Direct Mail
b. Outdoor
c. Online
d. Radio
110. The choice between high markups and high volume is part of which
of the following retailer marketing decisions?
a. Target market decisions
b. Product assortment and services decisions
c. Pricing decisions
d. Promotion decisions
111. If an advertiser wants flexibility, timeliness, good local market
coverage, broad acceptability, and high believability, the advertiser will
probably choose which of the following mass media types?
a. Newspapers
b. Television
c. Direct Mail
d. Radio
112. If your company were to make light bulbs to be used in
photocopiers, you would most likely be selling to a ________________ market.
a. reseller
b. business
c. government
d. service
113. If a government uses barriers to foreign products such as biases
against a foreign company's bids, or product standards that go against a
foreign company's product features, the government is using:
a. protectionism.
b. exchange controls.
c. exchange facilitators.
d. nontariff trade barriers.
114. A(n) _______________ is a name, term, sign, symbol, or design, or
a combination of these that identifies the maker or seller of a product or
service.
a. product feature
b. sponsorship
c. brand
d. logo
115. All of the following factors can affect the attractiveness of a
market segment EXCEPT:
a. the presence of many strong and aggressive
competitors.
b. the likelihood of government monitoring.
c. actual or potential substitute products.
d. the power of buyers in the segment.
116. A _______________ is any activity or benefit offered for sale that
is essentially intangible and does not result in the ownership of anything.
a. demand
b. basic staple
c. product
d. service
117. If Mark Mars pays Hershey Foods Corporation for the right to use
their name on his line of T-shirts, then Mr. Mars is using which type of
branding?
a. Licensed brand
b. Manufacturer's brand
c. Private brand
d. Co-brand
118. When personal interviewing involves inviting six to ten people to
gather for a few hours with a trained interviewer to talk about a product,
service, or organization, the method is called:
a. selective sponsorship.
b. probing.
c. focus group interviewing.
d. the Delphi method.
119. The _______________ holds that consumers will favor products that
are available and highly affordable (therefore, work on improving production
and distribution efficiency).
a. product concept
b. production concept
c. production cost expansion concept
d. marketing concept
120. If advertising constantly sends out messages about materialism,
sex, power, and status, which of the following categories of social criticism
most closely matches this problem?
a. Too much advertising.
b. Too few social goods.
c. Cultural pollution.
d. Too much political power.
121. A company is in the ______________ stage of the new product
development process when the company develops the product concept into a
physical product in order to assure that the product idea can be turned into a workable
product.
a. product development
b. commercialization
c. marketing strategy
d. business analysis
122. The shrinking of distances due to technological advances such as
computer and fax connections by telephone, are one characteristic of what new
challenge to marketing?
a. Rapid globalization.
b. The changing world economy.
c. The call for more socially responsible
marketing.
d. The micro-chip revolution.
123. Joining with foreign companies to produce or market products and
services is called:
a. direct exporting.
b. indirect exporting.
c. licensing.
d. joint venturing.
124. The major advantage of survey research is its:
a. simplicity.
b. structure.
c. organization.
d. flexibility.
125. The type of salesforce structure in which the salesforce sells
along product lines is called a:
a. territorial salesforce.
b. product salesforce.
c. customer salesforce.
d. retail salesforce.
126. A "three-day cooling off period" in which buyers can
cancel a contract after re-thinking it is to protect the consumer from:
a. creative selling
b. high pressure selling
c. detail selling
d. hard core selling
127. The practice of going after a large share of a smaller market or
subsets of a few markets is called:
a. undifferentiated marketing.
b. differentiated marketing.
c. concentrated marketing.
d. turbo marketing.
128. When Coca-Cola and Nestle formed a joint venture to market a
ready-to-drink coffee and tea worldwide, the type of marketing system that was
formed would best be described as being a(n):
a. vertical marketing system
b. parallel marketing system
c. diversified marketing system
d. horizontal marketing system
129. ________________ is screening new-product ideas in order to spot
good ideas and drop poor ones as soon as possible.
a. Idea generation
b. Concept development and testing
c. Idea screening
d. Brainstorming
130. When a marketing research organization chooses a segment of the
population that represents the population as a whole, they have chosen a
_______________.
a. group
b. bi-variant population
c. sample
d. market target
131. The goal of the marketing logistics system should be to provide:
a. a targeted level of promotional support.
b. a targeted level of customer service at the
least cost.
c. a targeted level of transportation expense
ratio.
d. a targeted level of field support.
132. Setting the promotion budget so as to match the budgets of the
competition is characteristic of which of the following budget methods?
a. Affordable method
b. Percentage-of-Sales method
c. Competitive-parity method
d. Objective-and-task method
133. If a company (considering its options on the product/market
expansion grid) chooses to move into different unrelated fields (from what it
has ever done before) with new products as a means to stimulate growth, the
company would be following which of the following general strategies?
a. market penetration
b. market development
c. product development
d. diversification
134. Technological advances, shifts in consumer tastes, and increased
competition, all of which reduce demand for a product are typical of which
stage in the PLC?
a. decline stage
b. introduction stage
c. growth stage
d. maturity stage
135. If Honda uses its company name to cover such different products as
its automobiles, lawn mowers, and motorcycles, it is practicing which of the
following strategies?
a. new brand strategy
b. line extension strategy
c. multibrand strategy
d. brand extension strategy
136. The process that turns marketing strategies and plans into
marketing actions in order to accomplish strategic marketing objectives is
called:
a. Marketing strategy.
b. Marketing control.
c. Marketing analysis.
d. Marketing implementation.
137. Each salesperson is assigned to an exclusive area in which to sell
the company's full line of products or services in which type of salesforce
structure?
a. Territorial sales force.
b. Product sales force.
c. Customer sales force.
d. Hybrid sales force.
138. The last stage in the selling process is the ________________
stage.
a. approach
b. handling objections
c. closing
d. follow-up
139. In 1985, the Coca-Cola Company made a classic marketing blunder
with its deletion of its popular Coca-Cola product and introduction of what it
called New Coke. Analysts now believe that most of the company's problems
resulted from poor marketing research. As the public demanded their "old
Coke" back, the company relented and reintroduced Coca-Cola Classic (which
has regained and surpassed its former position) while New Coke owns only 0.1
percent of the market. Which of the following marketing research mistakes did
Coca-Cola make?
a. They did not investigate pricing correctly
and priced the product too high.
b. They did not investigate dealer reaction and
had inadequate distribution.
c. They defined their marketing research problem
too narrowly.
d. They failed to account for the Pepsi
Challenge taste test in their marketing efforts.
140. Costs that do not vary with production or sales levels are called:
a. fixed costs.
b. variable costs.
c. standard costs.
d. independent costs.
141. All of the following are thought to be sources of new product
ideas EXCEPT:
a. internal sources.
b. customers.
c. competitors.
d. the local library.
142. Today, advertising captures about ____ percent of total promotion
spending.
a. 15
b. 23
c. 29
d. 33
143. The first modern environmental movement in the United States began
in the:
a. 1940s.
b. 1950s.
c. 1960s and 1970s.
d. mid-1980s.
144. One of the most common problems with using internal database
information is that:
a. since it was probably collected for some
other purpose, it may be incomplete or wrong.
b. it is usually expensive to retrieve.
c. top executives are usually unwilling to
relinquish data, therefore, the data has limits.
d. the data is almost always unsecured and,
therefore, suspect as to reliability.
145. Regulations that arise to ensure that firms take responsibility
for the social costs of their products or production processes stem from which
reason for government legislation of business?
a. To protect companies from each other.
b. To protect consumers from unfair business
practices.
c. To protect the interests of society.
d. To protect businesses from unfair consumer
demands.
146. The advantages of audience selectivity, no ad competition and
personalization apply to which type of media?
a. Newspapers
b. Television
c. Direct Mail
d. Radio
147. One of the most promising developments in multivariable
segmentation is called _________________ where a host of demographic and
socioeconomic factors are used.
a. terragraphic segmentation
b. fermagraphic segmentation
c. geothermy segmentation
d. geodemographic segmentation
148. When companies make marketing decisions by considering consumers'
wants and the long-run interests of the company, consumer, and the general
population, they are practicing which of the following principles?
a. Innovative marketing
b. Consumer-oriented marketing
c. Value marketing
d. Societal marketing
149. The study of human populations in terms of size, density,
location, age, gender, race, occupation, and other statistics is called:
a. Geothermy.
b. Demography.
c. Ethnography.
d. Hemos-popography.
150. Marketers are sometimes accused of deceptive practices that lead
consumers to believe they will get more value than they actually do.
______________ includes practices such as falsely advertising
"factory" or "wholesale" prices or a large price reduction
from a phony high retail price.
a. Deceptive promotion
b. Deceptive packaging
c. Deceptive pricing
d. Deceptive cost structure
Answer Key – Marketing Sample
Questions
1. d
2. c
3. d
4. a
5. d
6. d
7. b
8. d
9. b
10. c
11. b
12. c
13. d
14. d
15. d
16. a
17. d
18. a
19. a
20. b
21. a
22. c
23. a
24. d
25. c
26. d
27. a
28. a
29. b
30. b
31. c
32. c
33. c
34. d
35. d
36. d
37. d
38. b
39. b
40. b
41. a
42. c
43. c
44. d
45. b
46. b
47. c
48. d
49. b
50. b
51. b
52. b
53. d
54. c
55. b
56. a
57. c
58. d
59. c
60. c
61. b
62. a
63. c
64. b
65. a
66. b
67. a
68. c
Answer Key
69. b
70. b
71. a
72. d
73. d
74. a
75. b
76. d
77. d
78. b
79. c
80. b
81. a
82. d
83. d
84. c
85. d
86. b
87. a
88. b
89. c
90. b
91. c
92. c
93. d
94. c
95. b
96. b
97. b
98. c
99. a
100. b
101. a
102. d
103. b
104. d
105. d
106. d
107. a
108. b
109. c
110. c
111. a
112. b
113. d
114. c
115. b
116. d
117. a
118. c
119. b
120. c
121. a
122. a
123. d
124. d
125. b
126. b
127. c
128. d
129. c
130. c
131. b
132. c
133. d
134. a
135. d
136. d
137. a
Answer Key
138. d
139. c
140. a
141. d
142. b
143. c
144. a
145. c
146. c
147. d
148. d
149. b
150. c
151 Match
quality of information and how it is ensured using the following list
QUALITY
HOW ENSURED
(i)Brief
(iv) Unpleasant information not hidden
(ii)Relevant
(v) Summarize relevant information
(iii)
Trustworthy (vi) Understands user needs
a
(i) and (iv)
b
(ii) and (v)
c
(iii) and (vi)
d
(i) and (v)
Ans. d
152 Match quality of information and how it is
ensured using the following list
QUALITY
HOW ENSURED
(i)Brief
(iv) Unpleasant information not hidden
(ii)Relevant
(v) Summarize relevant information
(iii)Trustworthy
(vi) Understands user needs
a
(ii) and (vi)
b
(i) and (iv)
c
(iii) and (v)
d
(ii) and (iv)
Ans. a
153. On-line
transaction processing is used when
i)
it is required to answer random queries
ii)
it is required to ensure correct processing
iii)
all files are available on-line
iv)
all files are stored using hard disk
a
i ,ii
b
i, iii
c
ii ,iii, iv
d
i , ii ,iii
Ans. b
154. Off-line data entry is preferable when
i)
data should be entered without error
ii)
the volume of data to be entered is large
iii)
the volume of data to be entered is small
iv)
data is to be processed periodically
a
i, ii
b
ii, iii
c
ii, iv
d
iii, iv
Ans. c
155. Batch processing is preferred over on-line
transaction processing when
i)
processing efficiency is important
ii)
the volume of data to be processed is large
iii)
only periodic processing is needed
iv)
a large number of queries are to be processed
a
i ,ii
b
i, iii
c
ii ,iii
d
i , ii ,iii
Ans. d
156. Match and find best pairing for a Marketing
Management System
(i)Customer
preferences surveys (iv)Strategic information
(ii)Search
for new markets (v)Tactical information
(iii)Performance
of sales outlets (vi)Operational information
a
(i) and (iv)
b
(ii) and (v)
c
(iii) and (vi)
d
(ii) and (v)
Ans. c
157.Match and find best pairing for a Marketing
Management System
(i)Customer
preferences surveys (iv)Strategic
information
(ii)Search
for new markets (v)Tactical
information
(iii)Performance
of sales outlets (vi)Operational
information
a
(iii) and (iv)
b
(i) and (vi)
c
(i) and (v)
d
(iii) and (v)
Ans. c
158. Find the correct order in which Marketing
research performs these tasks of managing information –
A. Analysing data
B. Collecting data
C. Recording data
D. Reporting data
a. D, B, C, A
b. C, A, D, B
c. B, C, A, D
d. A, D, B, C
ans
c
159.
Identify the true and false statements –
A. The intention of Promotional pricing is to
initiate immediate sales
B. Stock clearance sales is an example for
promotional pricing
C. Promotional pricing involves lowering the
prices as pricing strategy
D. Promotional pricing together is a part of
direct marketing strategy
a. A is true
b. B and D is true
c. A, B and C is true
d. A and D is true
Ans. c
160.
Match the following features with the
stages in business buying process –
First
set:
1. Shortlist qualified ones
2. Formal presentations
3. Prepare checklist
4. Item quantity needed
Second
set:
A. Proposal solicitation
B. Supplier selectionPage 23 of 25
C. Need description
D. Supplier search
a. 1B, 2C, 3D, 4A
b. 1D, 2A, 3B, 4C
c. 1C, 2D, 3A, 4B
d. 1A, 2B, 3C, 4D
Ans.
b
161.
Match the types of discount offered by companies with appropriate examples –
First
set:
1. Cash
2. Seasonal
3. Quantity
4. Functional
Second
set:
A. 20% monsoon rebate
B. Free trial offer
C. 3 weeks credit
D. Two for price of one
a. 1B, 2C, 3A, 4D
b. 1A, 2D, 3B, 4C
c. 1C, 2A, 3D, 4B
d. 1D, 2B, 3C, 4A
Ans. c
162.
Match the following actions with people
involved in B2B buying –
First
set:
1. Giving consent on the selected
supplier
2. Works with the materials
3. Act as an agent between buyer and seller
4. Evaluate vendors
Second
set:
A. Buyers
B. Gate-keepers
C. Deciders
D. Users
a. 1A, 2C, 3D, 4B
b. 1B, 2A, 3C, 4D
c. 1C, 2D, 3B, 4A
d. 1D, 2B, 3A, 4C
Ans. c
163.
Find the correct sequence in the Consumer decision process which involves
following stages –
A. Need recognition
B. Purchase decision
C. Information search
D. Post purchase decision
a. C, B, D, A
b. B, D, A, C
c. D, A, C, B
d. A, C, B, D
Ans. d
164. Match List-I (Transactions)
with List-II (Impact on current ratio) and select the correct answer using the
Code given below the lists:
List-I List-II
A. Goods sold at profit 1.
Improvement
B. Creditors paid 2. Deterioration
C. Debts realized 3. No change
D. Materials purchased on credit
Codes:
A B C D
(a) 1 3 2 2
(b) 2 3 1 3
(c) 1 1 3 2
(d) 2 1 3 3
Ans. (c)
165. Match and find best pairing
for a Marketing Management System
(i)Customer preferences surveys
(iv)Strategic information
(ii)Search for new markets
(v)Tactical information
(iii)Performance of sales outlets
(vi)Operational information
a (i) and (iv)
b (ii) and (v)
c (iii) and (vi)
d (ii) and (v)
Ans. c
166. Match and find best pairing
for a Marketing Management System
(i)Customer preferences surveys (iv)Strategic information
(ii)Search for new markets (v)Tactical information
(iii)Performance of sales outlets (vi)Operational information
a (iii) and (iv)
b (i) and (vi)
c (i) and (v)
d (iii) and (v)
Ans c
167. Match quality of information
and how it is ensured using the following list
QUALITY HOW ENSURED
(i)Brief (iv) Unpleasant information not hidden
(ii)Relevant (v) Summarize relevant
information
(iii) Trustworthy (vi) Understands user needs
a (i) and (iv)
b (ii) and (v)
c (iii) and (vi)
d (i) and (v)
Ans. d
168. Match quality of information and how it is
ensured using the following list
QUALITY HOW ENSURED
(i)Brief (iv) Unpleasant information not hidden
(ii)Relevant (v) Summarize relevant
information
(iii)Trustworthy (vi) Understands user needs
a (ii) and (vi)
b (i) and (iv)
c (iii) and (v)
d (ii) and (iv)
Ans. a
169. Purchases equal to
(a) Cost of goods sold + Closing
inventory — Opening inventory
(b) Cost of goods sold — Closing
inventory + Opening inventory
(c) Opening inventory + Closing
inventory — Cost of goods sold
(d) None of the above
Ans. (b)
170. Match List I with List II and
select the correct answer using the code given below the Lists:
List-I List-II
(Method of Valuation) (Asset)
A. Valued at cost 1.
Trademark
B. Valued at cost less amortization
till date 2. Goodwill
C. Valued at lower of cost and
market price 3. Mines
D. Valued at cost less
depreciation on the 4. Marketable securities basis of actual depletion of
reserves
Code:
A B C D
(a) 2 1 4 3
(b) 2 4 1 3
(c) 3 1 4 2
(d) 3 4 1 2
Ans. (a)
171. Consider the following
functions of purchase department:
1. Preparation of purchase order
2. Preparation of approved vendor
list
3. Invitation of competitive
quotation
4. Preparation of debit notes for
materials returned
Which one of the following is the
correct sequence in which
an auditor verifies the above
functions?
(a) 1-2-3-4
(b) 2-1-3-4
(c) 2-3-4-1
(d) 2-3-1-4
Ans. (d)
172. As per AAS-l5, which of the
following should be considered by an auditor while determining the sample size?
1. Sampling risk
2. Market risk
3. Expected error
4. Tolerable error
Select the correct answer using
the code given below:
Code:
(a) 1,2,3 and 4
(b) 2 and 3 only
(c) 1,3 and 4 only
(d) 1 and 2 only
Ans. (c)
173. Which of the following
statements is/are correct?
1. Internal control includes
quality control.
2. Internal control is compulsory
for all forms of business organizations.
3. Internal control helps external
auditor to design suitable audit programme for client’s organization.
Select the correct answer using
the codes given below:
(a) 1 only
(b) 2 only
(c) 3 only
(d) 1 and 3
Ans. (c)
174. Match the following two lists
of
statements.
List – I List – II
I. When one company purchases
another one. 1.
Conglomeration merger
II. Merger between two companies
having no common business areas. 2. Consolidation merger
III. Merger between two companie
that sell the same products in
different
markets. 3. Purchase merger
IV. Two companies are bought
and combined under new entity. 4. Market extension merger
Codes :
I II III IV
(A) 1 2 3 4
(B) 2 3 1 4
(C) 3 1 4 2
(D) 3 4 1 2
Ans. c
175. Which one of the following is
not matched properly ?
List – I List – II
I. High initial price to be
lowered later 1. Product line pricing
II. Prices to be proportional to
cost 2. Differential pricing
III. Prices to be increased for
providing
profit 3. Pioneer
pricing
IV. Prices to be different in
different
markets 4. Incremental
pricing
(A) I and 3
(B) II and 1
(C) III and 4
(D) IV and 2
Ans. d
176. Exchange concept of marketing
deals with
(A) Exchange of products between sellers and
buyers covering distribution and price aspects.
(B) Mere appendage to production.
(C) Achieving marketing success through
product attributes.
(D) Aggressively promote and push the
products.
Ans. c
177. Who coined the expression
“Marketing Mix” ?
(A) Henry Fayol
(B) James Culliton
(C) Peter Drucker
(D) Abraham Maslow
Ans. d
178. Which of the following buying
process sequence is correct ?
1. Adoption
2. Legitimization
3. Attitude
4. Awareness
(A) 4, 3, 2, 1
(B) 2, 3, 4, 1
(C) 1, 2, 3, 4
(D) 3, 4, 2, 1
Ans. c
179. Match the following :
List – I List – II
1. Market segmentation i. Pricing high of a new product initially.
2. Skimming price ii. Process of disaggregating a market
into a number of submarkets.
3. Multilevel marketing iii. Translation of
the marketing plan into marketing performance.
4. Sales management iv. Modified version of direct marketing.
Codes :
1 2 3 4
(A) ii i iv iii
(B) iii i ii iv
(C) i ii iii iv
(D) iv ii iii i
Ans. b
180. Match the following :
List – I List – II
I. The presence of fixed cost in
the
cost structure of a firm. 1. Super leverage
II. The presence of fixed return
funds in the capital structure of
a firm. 2. Operating leverage
III. Impact of changes in sales on
the earnings
available to shareholders. 3. Financial leverage
Codes :
I II III
(A) 1 2 3
(B) 2 3 1
(C) 3 2 1
(D) 1 3 2
Ans. d
181. Which of the following is not
included in 7 P’s of services marketing ?
(A)
Process
(B) People
(C)
Pricing
(D) Public relations
Ans. a
182. Which of the following is not
a stage in the new product development ?
(A)
Generation of ideas
(B) Business analysis
(C)
Market segmentation
(D) Test marketing
Ans. d
183. Industrial marketing involves
(A)
Business to Business
(B) Business to Customer
(C)
Customer to Customer
(D) Retailer to Consumer
Ans. c
184. The concept of Marketing
Myopia
is propounded by
(A)
Philip Kotler
(B) C.K. Prahalada
(C)
Peter Drucker
(D) Theodore Levitt
Ans. c
185. In which stage of product
life cycle, the company takes decision whether to maintain, harvest or
drop the product ?
(A)
Introduction
(B) Growth
(C)
Maturity
(D) Decline
Ans. c
186. Arrange the following steps
of a five-stage model of the consumer buying process :
I. Evaluation of Alternatives
II. Need Arousal
III. Information search
IV. Purchase Decision
V. Post Purchase behaviour
Code
(A) IV, II, III, I, V
(B) III, II, I, IV, V
(C) I, II, IV, III, V
(D) II, III, I, IV, V
Ans. c
187. It refers to the total number
of items in the Product Mix. It is known as following.
(A) The
width of product mix
(B) The length of product mix
(C) The depth of product mix
(D) The consistency of product Mix
Ans. c
188. Match List-I and
List-II.
List – I (Characteristics of
Services) List – II (Marketing
Strategy applied considering a
characteristic
of service)
I. Intangibility 1.
Preparing a service blue print showing each service
and
process in a flow chart.
II. Inseparability 2.
Tangiblize the intangible
III. Variability 3.
To train more service providers and build up client
confidence.
IV. Perishability 4. Use
differential pricing
Code :
I II III IV
(A) 2 1 3 4
(B) 2 3 1 4
(C) 1 3 2 4
(D) 2 1 4 3
Ans. b
189. Which of the following
departments is not directly affected by the facilities location decision ?
(A) Production / operations
(B) Marketing
(C) Personnel
(D) Finance
Ans. c
190. Match List-I with List-II.
List – I (Ethical Issue) List – II
(Stakeholder affected)
I. Unsafe working conditions 1. Customers
II. Product safety 2. Society
III. Environmental Pollution 3. Employees
IV. Following local laws 4. Host Country
Code :
I II III IV
(A) 2 4 3 1
(B) 3 1 2 4
(C) 1 3 4 2
(D) 3 2 1 4
Ans. b
191. Match the following
statements with their authors :
(a) “Marketing is the delivery of
standard
of living.” (i) Peter F.Drucker
(b) “Marketing comprises both
buying and selling activities.” (ii) Philip Kotler
(c) “Marketing is human activity
directed at satisfying needs and
wants through exchange process.” (iii) Paul Mazur
(d) “Marketing is a process which
converts a resource, distinct
knowledge
into a contribution of economic
value
in the market place.” (iv) Pyle
(a) (b) (c) (d)
(A) (iv) (iii) (i) (ii)
(B) (iv) (ii) (iii) (i)
(C) (iii) (iv) (ii) (i)
(D) (i) (ii) (iv) (iii)
Ans. b
192. Statement (A) : “The
Electronic Media has a strong impact on consumers’ behaviour in India.”
Reason (R) : “Most of the Indian
consumers take their decision with the help of Electronic Media.”
(A) Statement (A) is correct, but Reason (R)
is false.
(B) Reason (R) is correct, but Statement (A)
is false.
(C) Both Statement (A) and Reason (R) are
false.
(D) Both Statement (A) and Reason (R) are
correct.
Ans. a
193. Assertion (A) : “Utility will be maximised when the marginal
unit of expenditure in each direction brings the same increment of utility.”
Reason (R) : A consumer will try
to maximise his utility.
(A) Both (A) and (R) are true.
(B) Both (A) and (R) are false.
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true
Ans. c
194. E-marketing is ______
(A) Buying and selling of goods and services
through internet.
(B) Buying of goods through internet.
(C) Selling of goods through internet.
(D) All of the above.
Ans. d
195. Match the items in List-I
with items in List-II.
List – I List – II
a. Peter F. Druker i. M.B.O.
b. F.W.Taylor ii. Scientific Management
c. Henri J. Fayol iii. Industrial Psychology
d. Hugo Munsterberg iv. Functional Theory
Codes :
a b c d
(A) i ii iii iv
(B) i ii iv iii
(C) iv iii ii i
(D) iii i iv ii
Ans. c
196. Match the following
statements with their authors :
a. “Marketing mix is a pack of
four sets of variables, namely;
product variables, price
variables, promotion variables and place
variables”. i.
Wheeler
b. “The marketing mix is the set
of marketing tools the
firm uses to pursue its marketing
objectives in the target market.” ii. Cundiff, Still & Govoni
c. “Marketing is the managerial
process by which products
are matched with markets and
through which
transfers of ownership are
affected.” iii.
Mc Carthy
d. “Marketing is concerned with
all
the resources and activities
involved in the flow of
goods and services from producer
to consumer”. iv.
Philip Kotler
Codes :
a b c d
(A) ii iv i iii
(B) i ii iv iii
(C) iv iii i ii
(D) iii iv ii i
Ans. c
197. Which one of the following is
not matched correctly ?
(A) Sales Portfolio – Internal Sales Promotion
(B) Merchandise Allowance – Dealer
Promotion
(C) Count and Recount of Stock –
Consumer Promotion
(D) Advertising – Market Promotion
Ans. c
198. Assertion (A) : “Advertising plays a vital role in selling
products/services.”
Reason (R) : “Sales promotion is
incomplete without a good advertising plan.”
Codes :
(A) (A)
is correct, but (R) is false.
(B) (A) is false, but (R) is correct.
(C) Both (A) and (R) are correct.
(D) Both (A) and (R) are false
Ans. b
199. Which one of the following
contains the three elements of service marketing triangle ?
(A) Management, Marketing Agency and Consumer.
(B) Marketing Agency, Government and Consumer.
(C) Management, Employees and Marketing
Agency.
(D) Management, Employees and Consumer.
Ans. c
200. Match the List – I with List
– II :
List – I (Stage of the product life cycle) List – II (Marketing strategy applied in the
stage of the product life cycle)
I. Introduction Stage 1. Market
Modification
II. Growth Stage 2. Rapid
Skimming Strategy
III. Maturity Stage 3. Enter New
Market Segments
IV. Decline Stage 4.
Continuation Strategy
Codes :
I II III IV
(A) 3 2 4 1
(B) 2 3 1 4
(C) 2 3 4 1
(D) 4 2 1 3
Ans. d
201. When work stations are
arranged according to the progressive steps by which the product is produced,
it is called a
(A) Functional layout
(B) Process layout
(C) Job shop layout
(D) Product layout
Ans. b
202. It has been described as a
cluster of complementary goods and services that are closely related in the
minds of consumers but are spread across a diverse set of industries. It is
known as
(A) Market Place
(B) Market Space
(C) Meta-Market
(D) Marketing Mix
Ans. b
203. The definition of Micro,
Small and Medium Enterprises (MSMEs) in
India is based on
(A) Total Sales of the Unit
(B) Investment in machines and equipments
(C) Market coverage
(D) Export capacity
Ans. c
204. Growth strategy requires that
a firm should
(A) realign its product market environment
(B) acquire new firm
(C) go for new product development
(D) expand the market
Ans. c
205. Match List-I with List-II and
select the correct answer using the
codes given below the lists.
List – I (Demand Estimation
Method) List – II (Steps involved)
(a) Customer Interview Method 1.
Consumers Interview
(b) Market Experiment Method
2. Time series or Cross
Section Data
(c) Regression Method 3. Market Stimulation
(d) Demand Forecasts 4.
Market Experiments’ Survey
Codes :
(a) (b) (c) (d)
(A) 1 3 4 2
(B) 1 3 2 4
(C) 2 4 3 1
(D) 4 2 1 3
Ans. b
206. Giffen goods are those goods
(A) for which demand increases as price
decreases
(B) which are in short supply
(C) which have high elasticity of demand
(D) which gives rise to a Cob-Web situation.
Ans. c
207. The value of the firm is
maximized when the
(A) Market price of equity share is
maximum
(B) Market price of equity share is minimum
(C) Market value of debt is maximum
(D) None of the above
Ans. c
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