Revision

Answer all the following questions (Please, present your answers for
question one and two in a table):
Question One: Choose the correct Answer: (( ) marks, ( ) minutes)
1)Individuals and business organizations that buy finished goods and
resell them to make a profit without changing the physical
characteristics of the product are classified as-------------markets
a) Consumer
b) Institutional
c) Producer
d) Government
e) Reseller

2) Engy loves fashion and is always seen wearing the trendiest

fashion outfits. She actively shares her knowledge with a wide group
of friends and colleagues about where to shop for the latest fashion at
great deals. Most of her friends and colleagues follow her fashion
tips. Engy portrays the image of a (n)-------------.
a) Lagging adopters
b) Innovators
c) Social networker
d) Opinion leader
e) Surrogate consumers
3) As Kareem is shopping for groceries, he notices a product on the
shelf and remembers that he is about to run out of it at home. In
terms of consumer buying decision process, Kareem just
experienced--------------.
a) Need recognition
b) Post purchase behaviour
c) Information search
d) Alternatives evaluation
e) Purchase decision
4)Doubts in a buyer’s mind about whether the purchase decision
made was the right one may occur during the-----------------------.
a) Cognitive dissonance
b) Purchase behavior
c) Alternatives evaluation
d) Post purchase behavior
e) Information search
5) Hala loves to own and be up-to-date on the latest technological
devices available in the market. Among her friends, she is always the
first to own the latest smart phones. She loves trying out new
products before others. Hala most likely belongs to the --------------
adopter group.
a) Innovator
b) Lagging
c) Late mainstream
d) Early mainstream
e) Surrogate consumer
6) When consumers are highly involved with an expensive,
infrequent, or risky purchase but see little difference among brands,
they most likely will exhibit ________.
a) habitual buying behavior
b) complex buying behavior
c) impulse buying behavior
d) dissonance-reducing buying behavior
a) consumer capitalism
7) Omar is buying his first house. He has spent a month looking at
houses and comparing attributes such as price and location. He has
contacted several real estate agents to look at different types of
houses. Omar is most likely exhibiting ________.
a) variety-seeking buying behavior
b) complex buying behavior
c) consumer capitalism
d) dissonance-reducing buying behavior
e) marketing myopia
8) People tend to interpret new information in a way that will
support what they already believe. This is called ________.
a) selective retention
b) selective distortion
c) cognitive dissonance
d) selective attention
e) cognitive bias
9) If a consumer receives information that is inconsistent with her or
his beliefs, the consumer may alter this information. This perceptual
process is known as selective _______
a) selective retention
b) selective distortion
c) cognitive dissonance
d) selective attention
e) cognitive bias
10) When the needs of individual consumers in a target market for a
specific product are similar and the organization can satisfy most
customers with a single marketing mix, the best approach to use may
be the -----------strategy.
a) Differentiated
b) Local
c) Undifferentiated
d) Concentrated
e) Individual
11) When markets are comprised of people with differing product
needs, the marketing manager should use-------------
a) Concentrated or differentiated targeting
b) Undifferentiated
c) Mass marketing
d) Market – intensive
e) Local marketing
12) If a company segments its market on the basis of their reasons
for purchasing a particular product, or their knowledge, attitudes
and uses concerning a product, the primary segmentation variable in
use is--------------
a) demographic
b) lifestyle and personality
c) geographic
d) geodemographic
e) behavioral
13) Bailey's Burgers promotes the Bailey's Jumbo Burger as a fun
snack for teens and young adults. In this instance, Bailey's Burgers is
practicing ________ segmentation.
a) Benefit
b) age and life-cycle
c) psychographic
d) geographic
e) gender
14) An Egyptian berevelges manufacturing company that primarily
targets rebellious and adventurous people most likely uses----------
segmentation.
a) Occasion
b) Geographic
c) Benefit
d) Age and life-cycle
 e) Psychographic
15) The full mix of benefits on which a brand is differentiated and
positioned is known as the brand's ________.
a) value proposition
b) service life
c) value stream
d) supply chain
e) demand chain
16) Harvey's Bookstore is a popular online bookstore that has
differentiated itself through smooth-functioning delivery networks.
This is an example of ________ differentiation.
a) product
b) image
c) price
d) channel
e) people
17) The winning value proposition would be to offer ________.
a) more for the same
b) more for less
c) more for more
d) same for less
e) same for more
18) Apex describes its clothing line as, "Elegance and attitude, now as
one. For the daily office-goer, who takes pride in what he or she
wears everyday, Apex makes sure you get noticed." This exemplifies
a ________.
a) statement of purpose
b) vision statement
c) positioning statement
d) general need description
e) product specification
19) Energizer batteries would typically be classified as which type of
product?
a) Convenience
b) Shopping
c) Specialty
d) Unsought
e) Industrial service
20) Product planners need to consider products and services on three
levels. At the second level, product planners must ________.
a) offer additional product support and after-sale services
 b) identify the core customer value that consumers seek
from the product
c) turn the core benefit into an actual product
d) find out how they can create the most satisfying brand
experience
e) define the problem-solving benefits or services that
consumers seek
21) El Behairy weeding dress would typically be classified as which
type of product?
a) Convenience
b) Shopping
c) Specialty
d) Unsought
e) Industrial service
22) Developing a product or service involves defining the benefits
that it will offer. These benefits are communicated and delivered by
________.
a) product labels
b) product attributes
c) support services
d) product packaging
e) branding
23) Proton Corp. is an automobile manufacturer known for
producing efficient, durable, and low-priced cars. Recently, the
company launched a new range of luxury cars to broaden its market
appeal and to add prestige to its existing line of cars. This is an
example of ________.
a) social marketing
b) product line filling
c) product line stretching
d) internal marketing
e) cannibalization
24) The strongest brands are positioned on ________.
a) desirable benefit
b) good packaging
c) service inseparability
d) strong beliefs and values
e) product attributes
25) Carrefour’s N1 signature products are an example of a________.
a) national brand
b) support brand
c) private brand
 d) generic brand
e) manufacturer's brand
26) Temmys. Inc., an Egyptian company manufacturing breakfast
cereals, has extended its special Temmy’s cereal brand into a full line
of breakfast cereals plus protein shakes, fruit honey, sweet flakes,
Choco pops, Choco scoops and Loopw nut, Choco rise, and Crisp
rise. This is an example of ________.
a) line extension
b) brand extension
c) licensing
d) co-branding
e) cannibalization
27) P&G has sold off a number of lesser or declining brands such as
Oxydol detergent and Jif peanut butter. In these examples,
management decided to ________ the products.
a) Modify
b) Maintain
c) Harvest
d) Drop
e) Franchise
28) Which stage in the PLC normally lasts longest and poses strong
challenges to marketing managers?
a) Growth
b) Decline
c) Maturity
d) introduction
e) adoption
29) In Which stage of the product life cycle do sales peak?
a) Introduction
b) Growth
c) Decline
d) Adoption
e) Maturity
30) Manufacturers of convenience products such as milk and
chewing gum reach customers through thousands of retailers. What
marketing channel are these manufacturers most likely to use?
a) Producer, consumer
b) Producer, wholesaler, retailer, consumer
c) Producer, wholesaler, agent, retailer, consumer
d) Producer, retailer, consumer
e) Retailer, consumer
31) Using only some of the available outlets to distribute a product is
called------
 a) Selective distribution
b) Intensive distribution
c) Exclusive distribution
d) Channel conflict
e) Vertical channel integration
32) A marketing channel that consists of one or more intermediaries
is known as a(n) ________ marketing channel.
a) Cyclic
b) Upstream
c) Looped
d) Direct
e) Indirect
33) For which product would a company use an exclusive
distribution strategy?
a) luxury cars
b) newspapers
c) chewing gum
d) dairy products
e) soft drinks
34) Companies that set a low price for a new product in order to
attract a large number of buyers and a large market share are using
the ________ strategy.
a) Market-skimming pricing
b) Market-penetration pricing
c) Cost-plus pricing
d) Inclusive pricing
e) Exclusive pricing
35) A market-skimming pricing strategy should NOT be used for a
new product when ________.
a) The product's quality and image support its higher price
b) Enough buyers want the products at that price
c) Competitors are unable to enter the market
d) Competitors can undercut prices easily
e) Producing a smaller number of goods is feasible

36) In the model of buyer behavior, which of the following is NOT a

major type of force or event in the buyer's environment?
A) economic
B) technological
C) social
D) political
E) cultural

37) ________ is the most basic determinant of a person's wants and

behavior.
A) Culture
B) Brand personality
C) Cognitive dissonance
D) Motive
E) Attitude

38) Each culture contains smaller ________, or groups of people with

shared value systems based on common life experiences and
situations.
A) cultural universals
B) reference groups
C) subcultures
D) monocultures
E) social networks

39) ________ are society's relatively permanent and ordered divisions

whose members share similar values, interests, and behaviors.
A) Social classes
B) Societal norms
C) Reference groups
D) Universal cultures
E) Social networks

40) Which of the following statements is true of cultural factors that

influence consumer behavior?
A) Cultural influences on buying behavior are identical across
countries.
B) Social classes show distinct product and brand preferences in
areas such as clothing and travel.
C) Subcultures include nationalities and racial groups, but exclude
religions.
D) Subcultures are groups within which each individual has a unique
and distinct value system.
E) Hispanic Americans and African Americans are examples of
racially-segregated groups and not subcultures.

41) Family is one of the ________ factors that influence consumer

behavior.
A) regional
B) social
C) personal
D) psychological
E) business

42) ________ are groups to which an individual wishes to belong, as

when a young basketball player hopes to play someday for the Los
Angeles Lakers.
A) Membership groups
B) Aspirational groups
C) Leading adopters
D) Subcultures
E) Reference groups

43) A shoe manufacturing company uses ads featuring the members

of a country music band with the hope that the band's fans will see
them wearing the company's shoes and hence purchase the same
brand of shoes. The shoe company believes that the band portrays
the image of a ________ to the band's fans.
A) membership group
B) reference group
C) status symbol
D) subculture
E) lifestyle

44) ________ consists of evaluating each market segment's

attractiveness and selecting one or more segments to enter.
A) Positioning
B) Mass customization
C) Market targeting
D) Market segmentation
E) Differentiation

45) ________ involves dividing a market into smaller segments of

buyers with distinct needs, characteristics, or behaviors that might
require separate marketing strategies or mixes.
A) Mass customization
B) Market targeting
C) Market segmentation
D) Differentiation
E) Positioning
46) ________ involves actually distinguishing the firm's market
offering to create superior customer value.
A) Mass customization
B) Differentiation
C) Market segmentation
D) Diversifying
E) Targeting

47) When marketers at Fair & Leigh Inc. selected the Millennials, a
demographic group that includes many college students, as an
untapped group of potential customers for their new line of products,
they were engaging in ________.
A) occasion segmenting
B) local marketing
C) market diversification
D) market targeting
E) product positioning

48) ________ consists of arranging for a market offering to occupy a

clear, distinctive, and desirable place relative to competing products
in the minds of target consumers.
A) Mass customization
B) Positioning
C) Segmentation
D) Differentiation
E) Targeting

49) ________ calls for dividing the market into regions, states,
counties, cities, or even neighborhoods.
A) Benefit segmentation
B) Geographic segmentation
C) Demographic segmentation
D) Psychographic segmentation
E) Occasion segmentation

50) ________ segmentation divides the market into segments based

on variables such as age, life-cycle stage, gender, income, occupation,
education, religion, ethnicity, and generation.
A) Geographic
B) Benefit
C) Occasion
D) Psychographic
E) Demographic

51) Delta Motorworks markets its cars based on the age, gender, and
income of its customers. Which of the following types of market
segmentation is evident here?
A) geographic segmentation
B) benefit segmentation
C) occasion segmentation
D) demographic segmentation
E) psychographic segmentation

52) ________ segmentation has long been used in clothing, cosmetics,

toiletries, and magazines.
A) Behavioral
B) Gender
C) Benefit
D) Occasion
E) Geographic

53) Gilron Holidays runs a premium membership club that caters to

customers whose annual salary exceeds $100,000. Members of this
club are offered seasonal discounts on select luxury hotels in select
cities worldwide. Gilron Holidays most likely follows a(n) ________
segmentation approach.
A) gender
B) income
C) occasion
D) benefit
E) geographic

54) ________ segmentation divides buyers into different segments

based on social class, lifestyle, or personality characteristics.
A) Benefit
B) Occasion
C) Geographic
D) Demographic
E) Psychographic

55) Marketers who use ________ often segment their markets by

consumer lifestyles and base their marketing strategies on lifestyle
appeals.
A) demographic segmentation
B) geographic segmentation
C) benefit segmentation
D) psychographic segmentation
E) occasion segmentation

56) ________ segmentation divides buyers into segments based on

their knowledge, attitudes, uses, or responses concerning a product.
A) Behavioral
B) Psychographic
C) Age and life cycle
D) Gender
E) Geographic

57) ________ segmentation refers to dividing the market into

segments according to occasions when buyers get the idea to buy,
actually make their purchase, or use the purchased item.
A) Gender
B) Psychographic
C) Occasion
D) Geographic
E) Income

58) ________ requires finding the major advantages people look for
in a product class, the kinds of people who look for each positive
aspect of a product, and the major brands that deliver it.
A) Gender segmentation
B) Psychographic segmentation
C) Benefit segmentation
D) Geographic segmentation
E) Age and life-cycle segmentation

59) Calypso Motors recently rolled out its Proteus hatchback.

Proteus combines the attractiveness of a luxury car with the excellent
agility of a sports car. Calypso Motors is confident that Proteus will
appeal to both sports car enthusiasts as well as the luxury segment.
Which of the following types of market segmentation is evident here?
A) gender segmentation
B) income segmentation
C) benefit segmentation
D) geographic segmentation
E) age and life-cycle segmentation

60) Which of the following refers to a behavioral segmentation

variable that involves segmenting markets into nonusers, ex-users,
potential users, first-time users, and regular users of a product?
A) user status
B) usage rates
C) gender status
D) income status
E) loyalty status

61) In the context of behavioral segmentation, markets segmented by

________ can be categorized into light, medium, and heavy product
users.
A) benefits sought
B) loyalty status
C) usage rate
D) user status
E) occasion

62) A recent study conducted by Estelle Cosmetics Company showed

that heavy users of Estelle's products comprise a small percentage of
the market. The study indicated that less than 7 percent of all
shoppers buy nearly 71 percent of Estelle's products in the United
States. This is an example of ________.
A) benefit segmentation
B) segmentation by loyalty status
C) segmentation by usage rate
D) psychographic segmentation
E) occasion segmentation

63) Consumers who show their allegiance to brands, stores, or

companies help marketers to segment consumers by their ________.
A) user status
B) degree of loyalty
C) income
D) geographic location
E) benefit-seeking attitudes

64) Which of the following is true about multivariable segmentation

systems?
A) Marketers using multiple segmentation bases tend to ignore
smaller markets.
B) Marketers often use multiple segmentation bases to control
inflation.
C) Multiple segmentation rarely involves the use of demographic
data.
D) Multiple segmentation is ineffective in large markets.
E) Multiple segmentation bases help identify smaller, better-defined
target groups.

65) ________ segmentation assumes that nations close to one another

will have many common traits and behaviors.
A) Geographic
B) Occasion
C) Psychographic
D) Benefit
E) Demographic

66) Double Drill Inc. segments its foreign markets by per capita
income. This firm segments the international markets based on
________.
A) political factors
B) legal factors
C) geographic location
D) economic factors
E) cultural factors

67) Pacific Fisheries divides its customers into different regional

units, such as Asia, Australia, and the Americas. This is an example
of ________ segmentation.
A) demographic
B) psychographic
C) geographic
D) occasion
E) benefit

68) Marketers often segment international markets according to the

type and stability of government. In such instances, they segment
markets based on ________.
A) geographic location
B) economic factors
C) cultural factors
D) political factors
E) socio-cultural factors

69) Papillon, a popular retailer of chic women's clothing, segments its

market according to consumer lifestyles. Papillon most likely uses
________ segmentation for segmenting its market.
A) geographic
B) psychographic
C) benefit
D) age and life-cycle
E) occasion

70) When the size, purchasing power, and profile of a market

segment can be calculated, the market is ________.
A) measurable
B) profitable
C) substantial
D) actionable
E) competitive

71) A market segment that is large enough or profitable enough to

serve is ________.
A) measurable
B) accessible
C) substantial
D) profitable
E) differentiable
72) Bailey's Burgers promotes the Bailey's Jumbo Burger as a fun
snack for teens and young adults. In this instance, Bailey's Burgers is
practicing ________ segmentation.
A) benefit
B) age and life-cycle
C) psychographic
D) geographic
E) gender

73) ________ segments are conceptually distinguishable and respond

differently to different marketing mix elements and programs.
A) Complex
B) Measurable
C) Competitive
D) Differentiable
E) Homogeneous

74 ) Which of the following is true with regard to products?

A) The quality of products is far more difficult to measure than that
of services.
B) Products do not include experiences, organizations, persons,
places, and ideas.
C) Products are not meant for sale in the market.
D) Products include services, events, persons, places, organizations,
ideas, or a mixture of these.
E) Products refer to only those activities that are essentially
intangible.

75) ________ are a form of product that consists of activities,

benefits, or satisfactions offered for sale that are essentially
intangible and do not result in the ownership of anything.
A) Liabilities
B) Services
C) Brands
D) Consumer products
E) Specialty products

76) Which of the following exemplifies a service?

A) candy
B) laptop
C) retail
D) car
E) laundry detergent

77) Product planners need to consider products and services on three

levels. Each level adds more customer value. The most basic level is
the ________, which addresses the question, "What is the buyer
really buying?"
A) an actual product
B) an augmented product
C) core customer value
D) co-branding
E) exchange value

78) Product planners need to consider products and services on three

levels. At the second level, product planners must ________.
A) offer additional product support and after-sale services
B) identify the core customer value that consumers seek from the
product
C) turn the core benefit into an actual product
D) find out how they can create the most satisfying brand experience
E) define the problem-solving benefits or services that consumers
seek

79) Product planners need to consider products and services on three

levels. At the third level, product planners must build ________.
A) an actual product
B) an augmented product
C) core customer value
D) a brand personality
E) a basic product

80) Consumer products refer to ________.

A) products purchased by consumers for further processing or for
use in conducting a business
B) products and services bought by final consumers for personal
consumption
C) primarily intangible offerings from marketers
D) raw materials as well as manufactured materials and parts
E) products that aid in the consumer's production or operations,
including installations and accessory equipment.
Answer: B

81) ________ are consumer products and services that customers

usually buy frequently, immediately, and with minimal comparison
and buying effort.
A) Unsought products
B) Capital items
C) Shopping products
D) Convenience products
E) Supplies and repair services

82) Which of the following is an example of a convenience product?

A) fast food
B) diamond ring
C) furniture
D) life insurance
E) refrigerator

83) ________ are less frequently purchased consumer products and

services that customers compare carefully on suitability, quality,
price, and style.
A) Shopping products
B) Convenience products
C) Unsought products
D) Capital items
E) Supplies and repair services

84) Erica wants to replace her old washing machine with a new one.
In order to get the maximum value for her money, she plans to spend
substantial time and effort in gathering information and making
product comparisons before making the actual purchase. In this
instance, Erica is planning to buy a(n) ________ product.
A) convenience
B) unsought
C) specialty
D) shopping
E) exclusive
85) ________ are consumer products and services with unique
characteristics or brand identification for which a significant group
of buyers is willing to make a special purchase effort.
A) Shopping products
B) Unsought products
C) Specialty products
D) Capital items
E) Convenience products

86) A hickory rocking chair, handmade by an Amish woodcarver in

Lancaster, Pennsylvania from locally grown wood, is an example of a
________.
A) convenience product
B) capital item
C) specialty product
D) service
E) product attribute

87) ________ are consumer products that the consumer either does
not know about or knows about but does not normally think about
buying.
A) Specialty products
B) Convenience products
C) Unsought products
D) Shopping products
E) Capital items

88) ________ products are those products purchased for further

processing or for use in conducting a business.
A) Unsought
B) Specialty
C) Shopping
D) Industrial
E) Convenience

89) Developing a product or service involves defining the benefits

that it will offer. These benefits are communicated and delivered by
________.
A) product labels
B) product attributes
C) support services
D) product packaging
E) branding

90) ________ refers to the characteristics of a product or service that

bear on its ability to satisfy stated or implied customer needs.
A) Brand equity
B) Product quality
C) Product labeling
D) Brand image
E) Brand personality

91) Style simply describes the ________ of a product.

A) quality
B) appearance
C) utility
D) durability
E) long-term benefits

92) ________ contributes to a product's usefulness as well as to its

looks.
A) Sensational style
B) Good design
C) Quality
D) Consistency
E) Packaging

93) A good design begins with ________.

A) brainstorming new product ideas
B) making prototypes of the planned product
C) identifying the most suitable and aesthetic packaging
D) brainstorming technical product specifications
E) observing and understanding customers and shaping their
product-use experience

94) A ________ is a name, term, sign, symbol, design, or a

combination of these, that identifies the maker or seller of a product
or service.
A) feature
B) brand
C) line extension
D) package
E) value chain

95) ________ involves designing and producing the container or

wrapper for a product.
A) Packaging
B) Patenting
C) Servicing
D) Co-branding
E) Labeling

96) A product's ________ identifies the product or brand, describes

several things about the product, and promotes the brand.
A) line extension
B) portfolio
C) label
D) design
E) feature

97) A ________ is a group of products that are closely related because

they function in a similar manner, are sold to the same customer
groups, are marketed through the same type of outlets, or fall within
given price ranges.
A) product line
B) line extension
C) private brand
D) multibrand
E) new brand

98) The major product line decision involves product ________, the
number of items in the product line.
A) features
B) line depth
C) line conformance
D) line length
E) packaging

99) Which of the following best characterizes the decline stage of

product development?
A) rapid market acceptance
B) slow sales growth
C) sales and profits decline
D) high investment costs
E) increasing profits
Answer: C

100) Which of the following statements characterizes the introduction

stage of the PLC?
A) There are increased marketing outlays.
B) Profits are nonexistent.
C) The company incurs minimal expenses.
D) The product achieves acceptance by most potential buyers.
E) Promotional expenditures are zero.

101) Which stage in the product life cycle is characterized by rapid

market acceptance and increasing profits?
A) introduction
B) maturity
C) growth
D) decline
E) product development

102) ________ is the product life cycle period when sales fall off and
profits drop.
A) Introduction
B) Growth
C) Maturity
D) Decline
E) Product development

103) Some products that have entered the decline stage have been
cycled back to the growth stage through ________.
A) repositioning
B) harvesting
C) maintaining
D) pruning
E) expanding

104) According to the PLC, the ________ stage is reached when sales
plunge to zero, or when they drop to a low level where they continue
for many years.
A) laggard
B) decline
C) maturity
D) growth
E) incubation

105) Which of the following stages of the PLC is characterized with

high promotional expenditures that result from an effort to create
consumer awareness?
A) growth
B) product development
C) maturity
D) introduction
E) decline

106) Which of the following stages of the PLC is characterized with

the same level or slightly higher level of promotional expenditures in
an attempt to respond to increasing competition?
A) growth
B) decline
C) maturity
D) product development
E) adoption

107) Kellogg's begins to sell its cereals in new markets after

conducting extensive marketing research. After the cereal begins to
appear in these new markets, the company increases its promotion
expenditure to counteract competitive responses. Kellogg's is in the
________ stage of the product life cycle.
A) introduction
B) growth
C) maturity
D) decline
E) adoption

108) Big Moose Toys is a market pioneer introducing a modern

version of Bubble the Moose, a character from an animated television
series originally broadcast in the '50s and '60s. The company's
version of Sandy the Flying Squirrel, a character from the show
targeted to baby boomers, was a strong success. Since the firm is a
market pioneer, it needs to make the new launch strategy for Bubble
the Moose consistent with the intended ________.
A) pricing
B) product positioning
C) brand extension
D) prototype
E) fad

109) Which stage in the PLC normally lasts longest and poses strong
challenges to marketing managers?
A) growth
B) decline
C) maturity
D) introduction
E) adoption

110) Most products in the marketplace are in the ________ stage of

the product life cycle.
A) growth
B) decline
C) maturity
D) introduction
E) development

111) Apple's iPod has been called "one of the greatest consumer
electronics hits of all time." iPods have been sold in huge numbers,
and Apple captures a large share of the music player market. This
success has attracted many large, resourceful competitors. The iPod
is in the ________ stage of the product life cycle.
A) introduction
B) growth
C) maturity
D) decline
E) adoption

112) When a product is in the maturity stage, the company should

most likely consider ________.
A) harvesting the product or market
B) modifying the product, market, or marketing mix
C) divesting the product line
D) liquidating the firm's assets
E) dropping the product from its market offerings

113) P&G has sold off a number of lesser or declining brands such as
Oxydol detergent and Jif peanut butter. In these examples,
management decided to ________ the products.
A) modify
B) maintain
C) drop
D) harvest
E) franchise

114) Due to dropping sales, a company that manufactures soaps

begins to sell them to restaurants and hotels to extend their product's
life. The soap manufacturer is in the ________ stage of PLC.
A) introduction
B) growth
C) maturity
D) decline
E) development

115) When Kraft focused on cost cutting with its older, established
brands, leaving them to wither without much investment or
modification, Kraft decided to ________ the older products.
A) extend
B) modify
C) drop
D) harvest
E) analyze

116) ________ refers to the amount of money charged for a product

or service.
A) Value
B) Cost
C) Price
D) Wage
E) Salary

117) ________ is the only element in the marketing mix that produces
revenue.
A) Price
B) Product
C) Place
D) Fixed costs
E) Variable costs

118) What sets the floor for product prices?

A) consumer perceptions of the product's value
B) product costs
C) competitors' strategies
D) advertising budgets
E) market competition

119) ________ pricing uses buyers' perceptions of value as the key to

pricing.
A) Customer value-based
B) Cost-based
C) Time-based
D) Markup
E) Target return

120) Which of the following is true of value-based pricing?

A) The targeted value and price drive decisions about what costs can
be incurred and the resulting product design.
B) Value-based pricing is mostly product driven.
C) Value-based pricing involves setting prices based on the costs of
producing, distributing, and selling the product plus a fair rate of
return for its effort and risk.
D) The marketer usually designs a product and marketing program
and then sets the price.
E) A company using value-based pricing designs what it considers to
be a good product, adds up the costs of making the product, and sets
a price that covers costs plus a target profit.

121) Which of the following processes does value-based pricing

reverse?
A) high-low pricing
B) everyday low pricing
C) cost-based pricing
D) good-value pricing
E) value-added pricing

122) A pharmaceutical company in Utah recently released a new and

expensive anti-ulcer drug in the market. The company justifies the
high price of the drug by claiming that it is highly effective for
treating all kinds of ulcers. The company also claims that the new
drug will help bring down the need for invasive surgeries, an
additional benefit for patients. Which of the following pricing
strategies is the pharmaceutical company most likely using in this
instance?
A) target pricing
B) markup pricing
C) cost-based pricing
D) value-based pricing
E) break-even pricing

123) Underpriced products ________.

A) produce less revenue than they would if they were priced at the
level of perceived value
B) sell poorly in the global marketplace
C) produce more revenue than they would if they were priced at the
level of perceived value
D) mostly offer higher value than those with a high markup price
E) are characterized by rapidly declining demand

124) Which of the following involves introducing less-expensive

versions of established, brand name products?
A) markup pricing
B) good-value pricing
C) time-based pricing
D) cost-based pricing
E) target profit pricing

125) ________ pricing refers to offering just the right combination of

quality and gratifying service at a fair price.
A) Markup
B) Good-value
C) Cost-plus
D) Target profit
E) Break-even

126) When McDonald's and other fast food restaurants offer "value
menu" items at surprisingly low prices, they are most likely using
________ pricing.
A) break-even
B) target profit
C) good-value
D) cost-plus
E) target return

127) Azure Air, an airline company, offers attractive prices to

customers with tighter budgets. A no-frills airline, it charges for all
other additional services, such as baggage handling and in-flight
refreshments. Which of the following best describes Azure Air's
pricing method?
A) target profit pricing
B) good-value pricing
C) cost-based pricing
D) break-even pricing
E) penetration pricing

128) Retailers such as Costco and Walmart charge a constant, daily

low price with few or no temporary price discounts. This is an
example of ________ pricing.
A) competition-based
B) everyday low
C) cost-plus
D) break-even
E) penetration

129) Bon Vivant offers an assortment of exclusive French wines at

incredibly low prices. These prices are neither limited-time offers nor
special discounts, but represent the daily prices of products sold by
Bon Vivant. This reflects Bon Vivant's ________ pricing strategy.
A) everyday low
B) markup
C) penetration
D) break-even
E) cost-based

130) ________ pricing involves charging higher prices on an

everyday basis but running frequent promotions to lower prices
temporarily on selected items.
A) High-low
B) Everyday low
C) Cost-plus
D) Break-even
E) Penetration

131) The sets of firms that supply companies with the raw materials,
components, parts, information, finances, and expertise needed to
create products or services are known as ________.
A) retailers
B) upstream partners
C) distributors
D) downstream partners
E) distribution channels

132) Which of the following terms refers to the wholesalers and

retailers that form a vital link between the firm and its customers?
A) factory-supply networks
B) downstream partners
C) resource banks
D) upstream partners
E) supply channels

133) The term supply chain is considered limited because it

________.
A) ignores the make-and-sell aspect of the market
B) suggests that planning begins with raw materials and factory
capacity
C) takes a step-by-step, linear view of purchase-production-
consumption activities
D) takes a sense-and-respond view of the market
E) suggests that planning starts with identifying the needs of target
customers

134) The term demand chain is considered limited because it

________.
A) advocates a make-and-sell view of the market that relies on a
responsive supply network
B) suggests that planning starts with raw materials, productive
inputs, and factory capacity
C) takes a step-by-step, linear view of purchase-production-
consumption activities
D) ignores the evolution of the global marketplace
E) overlooks the needs of target customers

135) A ________ is made up of the company, suppliers, distributors,

and customers who partner to improve the performance of the entire
system.
A) value delivery network
B) horizontal channel
C) consumer base
D) product delivery network
E) product line

136) A ________ is a set of interdependent organizations that help

make a product or service available for use or consumption by the
consumer or business user.
A) product line
B) product delivery network
C) marketing channel
D) consumer base
E) resource bank

137) ________ play an important role in matching supply and

demand by providing consumers with a broad assortment of
products in small quantities.
A) Virtual banks
B) Intermediaries
C) Price consultants
D) Uniform-delivery networks
E) Upstream partners

138) From the economic system's point of view, the role of ________
is to transform the assortments of products made by producers into
the assortments wanted by consumers.
A) upstream partners
B) marketing intermediaries
C) third-party logistics
D) price consultants
E) factory supervisors

139) A ________ is a layer of intermediaries that performs some

work in bringing the product and its ownership closer to the final
buyer.
A) product platform
B) channel level
C) resource bank
D) contact center
E) customer franchise

140) In a(n) ________ channel, the same member both produces and
distributes a product or service to consumers.
A) tiered
B) direct
C) platform
D) vertical
E) exclusive

141) A company's total marketing communications mix consists of a

special blend of advertising, sales promotion, public relations,
personal selling, and direct-marketing tools that the company uses to
communicate customer value and build customer relationships.
Which of the following terms best describes this set of
communications tools?
A) the product mix
B) product line filling
C) the promotion mix
D) the price mix
E) horizontal diversification

142) Any paid form of nonpersonal presentation and promotion of

ideas, goods, or services by an identified sponsor is called ________.
A) sales promotion
B) advertising
C) direct marketing
D) personal selling
E) public relations

143) The use of short-term incentives to encourage the purchase or

sale of a product or service is called ________.
A) direct marketing
B) sales promotion
C) personal selling
D) public relations
E) publicity

144) Which of the following promotion tools involves building up a

good corporate image and handling unfavorable stories and events?
A) sales promotion
B) personal selling
C) direct marketing
D) public relations
E) advertising

145) Which of the following promotion categories is most likely to

include the use of displays, discounts, coupons, and demonstrations?
A) sales promotion
B) direct marketing
C) horizontal diversification
D) public relations
E) advertising

146) ________ includes sales presentations, trade shows, and

incentive programs.
A) Direct marketing
B) Sales promotion
C) Personal selling
D) Public relations
E) Advertising

147) Extel Inc., a home appliance manufacturer, uses sales

representatives to sell its products to wholesalers and individual
customers. This is an example of ________.
A) sales promotion
B) personal selling
C) public relations
D) direct marketing
E) advertising

148) Which major promotion category uses catalogs, telephone

marketing, kiosks, and the Internet?
A) sales promotion
B) direct marketing
C) horizontal diversification
D) public relations
E) advertising

149) Which of the following promotion categories is most likely to use

the promotion tools of press releases, sponsorships, events, and Web
pages?
A) sales promotion
B) direct marketing
C) advertising
D) public relations
E) horizontal diversification

150) ________ involves cultivating opinion leaders and getting them

to spread information about a product or a service to others in their
communities.
A) Sales promotion
B) Indirect marketing
C) Buzz marketing
D) Stealth marketing
E) Public relations

151) In most cases, what is the most expensive promotion tool?

A) advertising
B) personal selling
C) mass media
D) public relations
E) publicity

152) Which of the following promotional tools is the most effective in

building up buyers' preferences, convictions, and actions?
A) mass-market advertising
B) sales promotion
C) segmented advertising
D) personal selling
E) public relations

153) ________ consists of strong short-term incentives that invite and

reward quick responses from customers.
A) Public relations
B) Personal selling
C) Advertising
D) Sales promotion
E) Direct marketing

154) ________ is very believable because news stories, features,

sponsorships, and events seem more real and believable to readers
than ads do.
A) Differentiated marketing
B) Public relations
C) Direct marketing
D) Sales promotion
E) Personal selling

155) Under which promotional mix strategy does the producer direct
its marketing activities toward channel members to induce them to
carry the product and promote it to final consumers?
A) pull strategy
B) blitz strategy
C) push strategy
D) buzz strategy
E) pulse strategy

156) The manufacturer of Crest toothpaste provides free samples of

its toothpaste to dentists and encourages them to distribute these
samples to their patients and to inform the patients about advantages
of using Crest. The manufacturer of Crest toothpaste is using
________.
A) sales promotion
B) direct marketing
C) a push strategy
D) a pull strategy
E) a vertical diversification strategy

157) Using a(n) ________ strategy, the producer directs its marketing
activities toward final consumers to induce them to buy the product.
A) pull
B) blitz
C) push
D) buzz
E) pulse

158) Glasis is a type of paint made specifically for use on cars. An ad

in Motor Trend magazine advising consumers to request their auto
body shops to use Glasis paint is an example of how a company uses
________.
A) word-of-mouth influence
B) public relations
C) buzz marketing
D) a push strategy
E) a pull strategy

159) Business-to-consumer companies are more likely to emphasize a

________ promotion strategy, while business-to-business companies
are more likely to emphasize a ________ promotion strategy.
A) pull; push
B) push; pull
C) pulse; pull
D) blitz; pull
E) push; blitz

160) John Deere does very little promoting of its lawn mowers and
garden tractors to final consumers. Instead, John Deere's sales force
works with Lowe's, Home Depot, independent dealers, and other
channel members, who in turn sell John Deere products to final
consumers. According to this information, which of the following
promotion mix strategies is being used by John Deere?
A) public relations strategy
B) direct marketing strategy
C) push strategy
D) blitz strategy
E) pull strategy

161) Which of the following would be classified as bait-and-switch

advertising?
A) advertising a cheaper brand but making only a more expensive
one available to customers
B) advertising the advantages of a product by comparing it to its
competitors
C) providing free samples of a product
D) providing discount coupons with a product
E) favoring certain customers over others through trade promotions

Q Answer
1 e
2 d
3 a
4 d
5 a
6 d
7 a
8 b
9 b
10 c
11 a
12 e
13 b
14 e
15 a
16 d
17 b
18 c
19 a
20 c
21 c
22 b
23 c
24 d
25 c
26 b
27 d
28 C
29 e
30 b
31 a
32 e
33 a
34 b
35 d
36 b
37 a
38 c
39 a
40 b
41 b
42 b
43 b
44 c
45 c
46 b
47 d
48 b
49 b
50 e
51 d
52 b
53 b
54 e
d
55
56 a
57 c
58 C
59 C
60 A
61 C
62 C
63 b
64 E
65 A
66 D
67 C
68 D
69 B
70 A
71 C
72 B
73 D
74 D
75 B
76 C
77 C
78 C
79 B
80 B
81 D
82 A
83 A
84 D
85 C
86 C
87 C
88 D
89 B
90 B
91 B
92 B
93 E
94 B
95 A
96 C
97 A
98 D
99 C
100 b
101 C
102 d
103 A
104 B
105 D
106 A
107 B
108 B
109 C
110 C
111 C
112 B
113 C
114 D
115 D
116 C
117 A
118 B
119 A
120 A
121 C
122 D
123 A
124 B
125 B
126 C
127 B
128 B
129 A
130 A
131 B
132 B
133 B
134 C
135 A
136 C
137 B
138 B
139 B
140 B
141 C
142 B
143 B
144 D
145 A
146 C
147 B
148 B
149 D
150 C
151 B
152 d
153 D
154 B
155 C
156 C
157 A
158 E
159 A
160 C
161 a
1) Which of the following exemplifies a service?
A) soap
B) laptop
C) baby sitter
D) car
E) candy

2) Which of the following is an example of a pure tangible good?

A) a laptop with a comprehensive warranty for three years
B) an online shoe retailer that provides free home delivery
C) an agency that offers free legal advice
D) a credit card
E) a bag of potato chips

3) Product planners need to consider products and services on three

levels. Each level adds more customer value. At the third level,
product planners must ________.
A) find out how they can create the most satisfying brand experience
B) identify the core customer value that consumers seek from the
product
C) turn the core benefit into an actual product
D) build an augmented product
E) define the problem-solving benefits or services that consumers
seek

4) If a consumer purchases a new flat-screen "smart" television

which can connect to services like Netflix what is the core customer
value involved?
A) connection to entertainment and information
B) state-of the art technology
C) slick and attractive packaging
D) brand name
E) tech support and warranty

5) Product planners must design the actual product and find ways to
augment it in order to create the bundle of ________ that will
provide the most satisfying customer experience.
a. core satisfactions
b. packaged values
c. brand values
d. benefits
e. characteristics

6) Dunkin, by delivering hot and fresh donuts to their customers,

provides -----------.
a. Tangible products
b. Services
c. Experiences
d. None of the above
e. A and C
7) Rouby is planning to buy a new washing machine. She notices that
they come in numerous price ranges. She wants to make sure she
gets the most for her money. This product is a(n) ________ product.
 a. augmented
b. specialty
c. convenience
d. shopping
e. unsought
8) The strongest brands are positioned on ________.
A) desirable benefit
B) good packaging
C) service inseparability
D) strong beliefs and values
E) product attributes
9) Temmys. Inc., an Egyptian company manufacturing breakfast
cereals, has extended its special Temmy’s cereal brand into a full
line of breakfast cereals plus protein shakes, fruit honey, sweet
flakes, Choco pops, Choco scoops and Loopw nut, Choco rise, and
Crisp rise. This is an example of ________.
f) line extension
g) brand extension
h) licensing
i) co-branding
j) cannibalization
10) Carrefour’s N1 signature products are an example of a________.
f) national brand
g) support brand
h) private brand
i) generic brand
j) manufacturer's brand
11) El Behairy weeding dress would typically be classified as which
type of product?
f) Convenience
g) Shopping
h) Specialty
i) Unsought
j) Industrial service
12) ________ are consumer products that the consumer either
does not know about or knows about but does not normally think
about buying.
A) Specialty products
B) Convenience products
C) Unsought products
 D) Shopping products
E) Capital items
13) Clear began to market shampoo for normal hair. In an attempt to
increase profits and use excess market capacity, Clear then
marketed shampoo for oily hair and color-treated hair. This is an
example of ________.
a. line filling
b. social marketing
c. line stretching
d. an unsought product
e. people marketing
14) Which of the following is/are examples of product line depth?
a. hamburger and cheeseburger
b. hamburger and fries
c. Coke and Diet Coke
d. A and C
e. all of the above
15) Companies often introduce additional brands in the same
category. What is this called?
a. product mix
b. multibranding
c. brand equity
d. consumer branding
e. brand blending
16) You have just returned from a training session where you
learned about product quality. While there you learned that the
concept of product quality has two dimensions. Which of the
following is one of these dimensions?
a. consistency
b. brand
c. convenience product
d. specialty product
e. image
17) ________ contributes to a product's usefulness as well as to its
looks.
A) Sensational style
B) Good design
C) Quality
D) Consistency
E) Packaging
18) The major product line decision involves product ________, the
number of items in the product line.
A) features
B) line depth
C) line conformance
D) line length
E) packaging
19)Proton Corp. is an automobile manufacturer known for
producing efficient, durable, and low-priced cars. Recently, the
company launched a new range of luxury cars to broaden its
market appeal and to add prestige to its existing line of cars. This
is an example of ________.
A- social marketing
B - product line filling
C- product line stretching
D- internal marketing
E - cannibalization
20) A well-known cosmetic company in New York City added new
product lines in order to increase its business. In other words, it
________.
A) lengthened its existing product line
B) decreased its product line consistency
C) widened its product mix
D) engaged in market diversification
E) engaged in social marketing

21) Which of the following is the lowest level on which marketers can
position their brands in target customers' minds?
A) beliefs and values
B) product benefits
C) product attributes
D) after-sale services
E) brand equity

22) Some companies obtain the rights to use the names or symbols
previously created by other manufacturers for a fee. This process is
known as ________.
A) multibranding
B) positioning
C) segmenting
D) co-branding
E) licensing

23) Kim Cody Design has just introduced a new line of prom dresses
for teens. They plan to enter the market initially at high prices in a
________ pricing strategy.
a. market-penetration
b. market-skimming
c. competitive market
d. psychological
e. demographic

24) Accent Software faces the following conditions. All of these
support Accent’s use of a market-penetration pricing strategy
EXCEPT ________.
a. the market is highly price sensitive
b. production and distribution costs will fall as sales volume
increases
c. the product’s quality and image support a high price
d. a low price would help keep out the competition
e. A and C

25) Whizz Corp. wishes to introduce a new hybrid car into mature
markets in developed countries with the goal of gaining mass-market
share quickly. Which of the following pricing strategies would help
the firm meet its goal?
A) market-skimming pricing
B) market-penetration pricing
C) market-segmentation pricing
D) cost-plus pricing
E) captive-product pricing

26) Among the following, a market-skimming strategy will

likely be most effective with ________.
a. any convenience item
b. an electronic device for which research and development must
be recouped
c. shampoo and bath soap
d. anything easily copied by competitors
e. most items at Wal-Mart
 27) Johnson Boats wants to introduce a new model of boat
into mature markets in highly developed countries with the goal
of quickly gaining mass-market share. As a consultant, you
would recommend a ________ pricing strategy.
a. skimming
b. penetration
c. zone
d. loss-leader
e. captive-product

28) ________ consists of evaluating each market segment's attractiveness and
selecting one or more segments to enter.
A) Positioning
B) Mass customization
C) Market targeting
D) Market segmentation

29) ________ involves dividing a market into smaller segments of buyers with
distinct needs, characteristics, or behaviors that might require separate marketing
strategies or mixes.
A) Mass customization
B) Market targeting
C) Market segmentation
D) Differentiation

30) ________ involves actually distinguishing the firm's market offering to create
superior customer value.
A) Mass customization
B) Differentiation
C) Market segmentation
D) Diversifying

31) ________ consists of arranging for a market offering to occupy a clear,

distinctive, and desirable place relative to competing products in the minds of target
consumers.
A) Mass customization
B) Positioning
C) Segmentation
D) Differentiation

32) ________ segmentation divides the market into segments based on variables such
as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and
generation.
A) Geographic
B) Occasion
C) Psychographic
D) Demographic

33) Marketers who use ________ often segment their markets by consumer lifestyles
and base their marketing strategies on lifestyle appeals.
A) demographic segmentation
B) geographic segmentation
C) benefit segmentation
D) psychographic segmentation

34) ________ segmentation divides buyers into segments based on their knowledge,
attitudes, uses, or responses concerning a product.
A) Behavioral
B) Psychographic
C) Age and life cycle
D) Gender

35) A recent study conducted by Estelle Cosmetics Company showed that heavy users
of Estelle's products comprise a small percentage of the market. The study indicated
that less than 7 percent of all shoppers buy nearly 71 percent of Estelle's products in
the United States. This is an example of ________.
A) benefit segmentation
B) segmentation by loyalty status
C) segmentation by usage rate
D) psychographic segmentation

36) Which of the following is true about multivariable segmentation systems?

A) Marketers using multiple segmentation bases tend to ignore smaller markets.
B) Marketers often use multiple segmentation bases to control inflation.
C) Multiple segmentation rarely involves the use of demographic data..
D) Multiple segmentation bases help identify smaller, better-defined target
groups.

37) Bailey's Burgers promotes the Bailey's Jumbo Burger as a fun snack for teens and
young adults. In this instance, Bailey's Burgers is practicing ________ segmentation.
A) benefit
B) age and life-cycle
C) psychographic
D) geographic

38) When an effective program can be designed for attracting and serving a particular
segment, the segment is best described as ________.
A) accessible
B) measurable
C) competitive
D) actionable

39) Market segments that can be effectively reached and served are ________.
A) measurable
B) accessible
C) substantial
D) actionable

40) Different soft drinks target different personalities. This is an example of

________ segmentation.
A) psychographic
B) demographic
C) occasion
D) life-cycle

41) A segment is less attractive if it ________.

A) is difficult for new entrants to enter
B) is substantial
C) is actionable
D) already contains many strong and aggressive competitors

42) ________ refers to a market-coverage strategy in which a firm decides to ignore

market segment differences and go after the whole market with one offer.
A) Individual marketing
B) Local marketing
C) Niche marketing
D) Undifferentiated marketing

43) A market-coverage strategy in which a firm decides to target several market

segments and designs separate offers for each is known as ________.
A) mass marketing
B) differentiated marketing
C) concentrated marketing
D) individual marketing

44) Which of the following is a disadvantage of using a differentiated marketing

strategy?
A) generates far lower sales compared to an undifferentiated marketing strategy
B) customer loyalty is negatively impacted and difficult to obtain
C) the costs of doing business increase
D) quality control problems increase

45) ________ is the practice of tailoring products and marketing programs to suit the
tastes of specific individuals and locations.
A) Mass marketing
B) Trigger-based marketing
C) Differentiated marketing
D) Micromarketing
Using a segmented marketing strategy, a firm might decide to ignore market segment
differences and target the whole market with one offer.

46) ________ marketing tailors brands and promotions to the needs and wants of
regional customer groups, such as cities, neighborhoods, and even specific stores.
A) Undifferentiated
B) Differentiated
C) Niche
D) Local

47) ________ is the process by which firms interact one-to-one with masses of
customers to design products and services tailor-made to individual needs.
A) Product diversification
B) Micromarketing
C) Mass customization
D) Differentiated marketing





Q ANSWER
1 C
2 E
3 D
4 A
5 D
6 E
7 D
8 D
9 B
10 C
11 C
12 C
13 A
14 D
15 B
16 A
17 B
18 D
19 C
20 C
21 C
22 E
23 B
24 C
25 B
26 B
27 B
28 C
29 C
30 b
31 B
32 d
33 D
34 a
35 C
36 d
37 B
38 d
39 B
40 a
41 D
42 D
43 b
44 C
45 d
46 D
47 c

True or False
1. Unsought products are products that the customer usually
buys frequently, immediately, and with a minimum of
comparison and buying effort.
2. The augmented product is the actual product plus the
various services and benefits offered with it, such as a
warranty, free delivery, installation, and maintenance.
3. Shopping products are usually distributed through fewer
outlets but provide deeper sales support to help customers in
their comparison efforts.
4. Buyers normally do not compare specialty products. They
invest only the time needed to reach dealers carrying the
wanted products.
5. Style is a larger concept than design. Design simply describes
the appearance of a product.
6. A product line consists of unrelated products that are sold
to diverse customer groups.
7. Product line filling is overdone if it results in
cannibalization and customer confusion.
 8. A company cannot stretch its product line downward.
9. The augmented product is the actual product plus the
various services and benefits offered with it, such as a
warranty, free delivery, installation, and maintenance.
10. Brand equity refers to the characteristics of a product or
service that bear on its ability to satisfy stated or implied
customer needs.
11. Companies stretch downward to add prestige to their
current products.
12. Co-branding occurs when a company introduces additional
items in a given product category under the same brand
name, such as new flavors, forms, colors, ingredients, or
package sizes.
13. Line extension refers to extending an existing brand name
to new product categories.
14. Some companies obtain the rights to use the names or
symbols previously created by other manufacturers for a
fee. This process is known as licensing.
15. The total financial value of a brand is brand value.
16. Pricing strategies tend to change and evolve as the average
product passes through its life cycle.
17. When The Candy Store sets a low initial price in order to
get its "foot in the door" and to quickly attract a large
number of buyers, the company is using market-skimming
pricing.
18. After entering a market by using market-penetration
pricing, a company can easily raise its price and maintain
its market share.
19. A market-penetration pricing policy should LEAST likely
be used for a new product when the product's quality and
image support a high price
20. When a company sets a high price for a new product with
the intention of reducing the price in the future, it is using
the competitive pricing strategy.
21. A market-skimming pricing strategy should NOT be used
for a new product when competitors can undercut prices
easily
1 F
2 T
3 T
4 T
5 F
6 F
7 T
8 F
9 T
10 F
11 F
12 F
13 F
14 T
15 T
16 T
17 F
18 F
19 T
20 F
21 T

1) The customer-driven marketing strategy involves four steps: market

segmentation, market targeting, positioning, and differentiation. True

2) When the size, purchasing power, and profile of a market segment can
be calculated, the market is profitable False

3) A market segment that is large enough or profitable enough to serve is

accessible False

4) Marketers usually limit their segmentation analysis to only one major

variable. False
5) Differentiated marketing is more suited for products that vary in
design. True

6)Using a segmented marketing strategy, a firm might decide to ignore

market segment differences and target the whole market with one offer.
False

7) When using a niche marketing strategy, a firm goes after a large share
of one or a few smaller segments. True

8) Individual marketing is also known as one-to-one marketing, mass

customization, and markets-of-one marketing True
9) A target market consists of a set of buyers who share common needs or
characteristics that the company decides to serve. True

10) Product differentiation refers to the way a product is defined by

consumers on important attributes—the place the product occupies in
consumers' minds relative to competing products. False

11) To the extent that a company can differentiate and position itself as
providing superior customer value, it gains a competitive advantage
True

12) The relative power of buyers affects segment attractiveness. True

13) The full mix of benefits on which a brand is differentiated and

positioned is known as the brand's value proposition True

Essay -type questions

Q1) Marketers can choose from two basic promotion mix

strategies—push promotion or pull promotion. Compare
these two strategies.

Q2) Compare between public relations and direct marketing

as two different promotion tools.
Q3) Name and describe the principal decisions companies
make regarding their individual products and services.
4- Describe the principal functions of packaging and label.
Illustrate your answer with examples
5- What are the different dimensions of a company's
product mix? Briefly describe each dimension, with
examples.
6- Compare between the product line stretching and product
line filling.
7- Compare between the convenience, shopping and
specialty products.
8- Compare between the skimming and penetration pricing
strategy.
9- Different types of buying decision behavior (chapter 5)
10- Compare among Intensive vs. selective vs. exclusive
distribution (chapter 5)
11- Compare between Upstream and downstream partners
(chapter 12)
12- the buyer decision process (chapter 5)
13- Discuss the different key functions performed by
channel members to add value (chapter 12)
14-