Which one of the following statement reflects the old sense of marketing?

A.Satisfying customer needs is must

B.Marketing is all about selling and advertising
C.Selling and advertising are only the tip of the marketing iceberg
D.The aim of marketing is to make selling superfluous

ANSWER: B
Dividing a market into distinct groups of buyers with different needs,
characteristics or behavior who might require separate products or marketing mixes.
A.Market segmentation
B.Market Targeting
C.Market targeting
D.Market Positioning

ANSWER: A
Which is false about mass marketing
A.It creates the largest potential market
B.Low production cost
C.Lower prices or higher profit margins
D.Meeting specific needs of different segments

ANSWER: D
It is the act of designing a set of meaningful differences to distinguish the
company’s offering from competitor's offerings.
A.Market Segmentation
B.Market targeting
C.Market positioning
D.MarketAnalysing

ANSWER: C
Carrie tends to purchase various brands of bath soap. She has never been loyal to a
specific brand; instead she does a lot of brand switching. Carrie exhibits
________.
A.Dissonance-reducing buying behavior
B.Habitual buying behavior
C.Complex buying behavior
D.Variety-seeking buying behavior

ANSWER: D
Marketing philosophy that is useful in situations when the product’s cost is too
high and improved productivity is needed to bring it down is ________________.
A.Selling concept
B.Marketing concept
C.The production concept
D.Product concept

ANSWER: C
Purchased without any planning or search effort.
A.Convenience products
B.Emergency products
C.Impulse products
D.Shopping products

ANSWER: A
“Alem Garments” is selling a specific shirt for Birr 1,199.90. This type of pricing
may be categorized as:
A.Promotional pricing
B.Psychological pricing
C.Discount pricing
D.Segmented pricing

ANSWER: B
According to the model of buyer behavior, which of the following is one of the two
primary parts of a "buyer's black box"?
A.Technological stimuli
B.Buyer's decision process
C.Buyer's spending habits
D.Social stimuli

ANSWER: B
A buyer's decisions are influenced by ________ such as the buyer's age and life-
cycle stage, occupation, economic situation, lifestyle, personality, and self-
concept.
A.Personal characteristics
B.Stereotypes
C.Perceptions
D.Attitudes

ANSWER: A
Is the process by which people select, organize, and interpret information to form
a meaningful picture of the world.
A.Motivation
B.Perception
C.Dissonance
D.Learning

ANSWER: B
People cannot focus on all of the stimuli that surround them each day. A person's
tendency to screen out most of the information to which he is exposed is called
________.
A.Subliminal retention
B.Selective distortion
C.Cognitive dissonance
D.Selective attention

ANSWER: D
After the purchase of a product, consumers will be either satisfied or dissatisfied
and engage in ________.
A.Consumer capitalism
B.Alternative evaluation
C.Postpurchase behavior
D.Consumer ethnocentrism

ANSWER: C
If the consumer's drive is strong and a satisfying product is near at hand, the
consumer is likely to buy it then. If not, the consumer may store the need in
memory or undertake ________.
A.Consumer ethnocentrism
B.Buyer's remorse
C.A need recognition
D.An information search

ANSWER: D
Compared to goods, Service products are
A.High in Production capacity
B.Difficult for quality control
C.Easy to distribute
D.Low in Customer involvement

ANSWER: B
Services cannot be easily displayed or communicated to the customers; therefore the
quality of the services is difficult to demonstrate. This is because of the service
characteristics of ___________.
A.Variability
B.Inseparability
C.Perishability
D.Intangibility

ANSWER: D
Getting medical services involves a doctor or a dentist performing an examination
or procedure while the customer is present and no service takes place in the
absence of the doctor. This refers to the service characteristics of ___________.
A.Variability
B.Inseparability
C.Perishability
D.Intangibility

ANSWER: B
Based on service marketing triangle concept, marketing activities such as
advertising, sales promotions and special promotions are elements of
__________________ Marketing.
A.Internal
B.Interactive
C.External
D.Societal

ANSWER: C
“Wished for“ level of service performance is __________________.
A.Desired service
B.Adequate service
C.Predicted service
D.Zone of tolerance

ANSWER: A
Service design involves development or refinement of all of the following except
A.The physical characteristics of the services
B.The tangible goods accompanying the service
C.The explicit services
D.The implicit services

ANSWER: A
Which one of the following is incorrect about the characteristics of Service
compared to tangible goods?
A.Service design often focuses more on intangible factors than that of goods
B.There is better chance of finding and correcting errors before the customer gets
the service than in goods.
C.Services have low barriers to entry and exit than goods
D.Location is often important to service design

ANSWER: B
All of the following factors can draw companies into the international arena
except:
A.Better profit opportunities
B.Larger customer base
C.To avoid competition
D.To counterattack global competitors

ANSWER: C
The international product and communication strategy where a company uses the
existing product and communication without any change is ____________________.
A.Straight extension
B.Product adaptation
C.Communication adaptation
D.Dual adaptation

ANSWER: A
Which one of the following isn’t correct about marketing environment of
international marketing?
A.Elements of the marketing environment change slowly and predictably.
B.It affects strategic decisions as whether to enter a given foreign market or not.
C.It consist of growth prospects including the competition and government policies.
D.It affects what market entry strategy should a company employ.

ANSWER: A
Refers to the fact that although a business entity may own the funds and still hold
property rights, it cannot export its earnings.
A.Blockage of Funds
B.Expropriation
C.Confiscation
D.Domestication

ANSWER: A
Which one of the following entry mode is characterized by high risk, high return,
and high control?
A.Licensing
B.Foreign direct investment
C.Joint venture
D.Exporting

ANSWER: B
Is the practice of using another firm's successful business model.
A.Franchising
B.Turnkey contracts
C.Contract manufacturing
D.All of them

ANSWER: A
Which one of the following is not among the common objectives of joint
venture?
A.Market entry
B.Risk avoidance
C.Technology sharing
D.Joint product development

ANSWER: B
Direct foreign investment allows companies to accomplish all of the following
except
A.Avoiding foreign government pressure for local production.
B.Avoiding trade barriers, hidden and otherwise.
C.Entry to international market with lower cost
D.Capability to increase total production capacity
ANSWER: C
All of the following contribute for Customer-based brand equity except.
A.High level of awareness
B.High level familiarity with the brand
C.Strong brand associations
D.Unfavorable brand associations
E.Unique brand associations

ANSWER: D
Is finding the “proper location” in the minds of consumers/market segment,so they
think about the product in the right/desired way to maximize the potential benefit
to the firm.
A.Establishing Brand Awareness
B.Customer based brand equity
C.Choosing POD’s
D.Brand Positioning

ANSWER: D
Relates to aspects of awareness of the brand, for example how often and easily the
brand is evoked under various situations or circumstances,to what extent the brand
top-of- mind and easily recalled or recognized?.
A.Brand identity
B.Brand meaning
C.Brand responses
D.Brand relationships

ANSWER: A
How people think about brand does abstractly, rather than what they think the brand
actually does.
A.Brand Imagery
B.Brand Performance
C.Brand Judgment
D.Brand Feeling

ANSWER: A
Refers to the extent to which customers feel that they are in “sync” with the
brand.
A.Brand Salience
B.Brand Imagery
C.Brand Feeling
D.Brand Resonance

ANSWER: D
Likable brands are:
A.Rich in visual and verbal imagery
B.Descriptive
C.Persuasive
D.Facilitate recall or recognition

ANSWER: A
Which one of the followings is not an element of a brand?
A.Name
B.Sign
C.Taste
D.Character
ANSWER: C
Which one of the followings is not the benefit of brand equity?
A.Enjoy greater brand loyalty
B.Makes consumer over sensitive to price increases
C.Increase marketing communication effectiveness
D.Yield licensing opportunities

ANSWER: B
Promotional tool that refers to providing extra value or incentives to the sales
force, the distributors or the ultimate consumer and can stimulate immediate sales.
A.Advertising
B.Direct Marketing
C.Sales Promotion
D.Personal Selling

ANSWER: C
Which one of the following promotional tool is more appropriate in promoting
industrial products like big and complicated machineries?
A.Advertising
B.Direct Marketing
C.Sales Promotion
D.Personal Selling

ANSWER: D
Provides the framework for developing, implementing and controlling the
organization’s IMC
A.Promotion design
B.Promotional plan
C.Marketing plan
D.Marketing strategy

ANSWER: B
Is relatively recent and appropriate method of setting IMC budget.
A.Competitive based budgeting
B.Fixed percentage method
C.Objective and task method
D.Fixed sales method

ANSWER: C
Refers to determining the basic appeal and message the advertiser wishes to convey
to the target audience.
A.Message evaluation
B.Message development
C.Media strategy
D.Message execution
ANSWER: B
Is the extent to which the recipient sees the source as having relevant knowledge,
skill, or experience and trusts the source to give unbiased, objective information.
A.Source Credibility
B.Source Attractiveness
C.Source Power
D.Source Familiarity
ANSWER: A
Organizations that conduct their business activities solely online are
A.Click-and-mortar organizations
B.Pure-click organizations
C.Brick-and-mortar organizations
D.Brick-and-Click companies
ANSWER: B
Refers to the complexity and content of a message.
A.Ubiqity
B.Global Reach
C.Richness
D.Information Density
ANSWER: C
According to the ________ revenue model,customers pay a fixed amount,usually
monthly,to receive some type of service.
A.Subscription fees
B.Transaction fees
C.Tdvertising fees
D.Affiliate fees
ANSWER: A
The elimination of various types of agents that mediate between buyers and sellers,
such as travel and insurance agents, is referred to as
A.Automation.
B.Disintermediation.
C.Reintermediation.
D.E-distribution.
ANSWER: B
Information and entertainment providers like newspapers,sports sites and other on
line sources that offer customer up-to-date news are __________________
A.Portals
B.E-tailers
C.Content Provider
D.Transaction Brokers
ANSWER: C
One of the Components of and the Participantsin E-Marketplace which includes
electronic networks, databases, hardware, software, and more is ____________.
A.Infrastructure
B.Front end
C.Back end
D.Intermediaries
ANSWER: A
The belief that an online website or other digital entities can deliver what they
promise so that the recipient depend on them best defines
A.Online trust
B.Reputation-based system
C.E-loyalty
D.E-satisfaction
ANSWER: A
An intensive growth strategy that seeks to increase sales by improving or modifying
present products or services.
A.Market development
B.Product development
C.Market penetration
D.Diversification
ANSWER: C

Which global entry strategy is advisable if a company doesn’t want to purchase

another company’s problem along with its assets?
A.Green-field development
B.Joint Ventures
C.Acquisitions
D.Franchising
ANSWER: A
In one of the following retrenchment strategy companies may take actions as
eliminating unprofitable outputs, pruning assets, reducing the firm’s work force
size, cutting costs of distribution and assessing the firms product lines and
customer group.
A.Captive company strategy
B.Sellout/divestment strategy
C.Bankruptcy/liquidation strategy
D.Turnaround strategy
ANSWER: D
If a company introduce a stream of new products and announce them in advance the
defensive marketing strategy applied by this company is---
A.Preemptive Defense
B.Position Defense
C.Counter offensive Defense
D.Mobile Defense
ANSWER: A
Duplicates the leader’s product and packages and sells it on the black market or
through disreputable dealers.
A.Cloner
B.Imitator
C.Counterfeiting
D.None
ANSWER: C
All are types of research on the basis of their purpose except
A.Exploratory research
B.Analytical research
C.Field research
D.Predictive research
ANSWER: C
All are the possible motives of individuals to undertake research work except
A.To face a challenge in solving the unsolved problem
B.To get intellectual joy of doing some creative work
C.To better understand shifts in consumer attitudes and tastes
D.To get degree with its consequential benefit
ANSWER: D
What makes the descriptive research different from predictive research
A.The researcher has no control over the variables
B.It goes beyond explaining why and how things happened
C.It tries to explain about the probability of happening similar thing in the
future.
D.It uses models to represent the real world
ANSWER: B
All are the features of research design except
A.It is a plan that specifies the sources and types of information
B.It specifies the alternative courses of action
C.It is strategy specifying which approach will be used for gathering and analyzing
the data.
D.It also includes the time and cost budgets since most studies are done under
these two constraints.
ANSWER: B
If the objective of a research is to discover the underlying personality and
attitudes of human beings the researchers will use one of the following categories
of research.
A.Quantitative research
B.Empirical research
C.Applied research
D.Qualitative research
ANSWER: D
The abstract of the research proposal should exclude
A.Title or topic of the research
B.Conclusion of the study
C.Statement of the problem and objective
D.Methodology of investigation
ANSWER: B
All are true except
A.A hypothesis, at its initial stage, may be an imagined idea or mere guess
B.Work plan (time schedule) is optional in research proposal
C.Research title should not include unscientific, argumentative, emotional or
biased terms in nature
D.The main purpose of a research design is to enable the researcher to answer
research questions as validly.
ANSWER: B
Among the following one is not the components of work schedule
A.Data collection
B.Field expense for data collection
C.Final report writing
D.Report generalization
ANSWER: D
All are the benefits of reviewing literature except
A.It enables the researcher to know if there are certain gaps in the theory
B.It helps the researcher to draw conceptual framework
C.Helps the researcher to know whether the existing theory applicable to the
problem and consistent with each other.
D.It helps the researcher to analyze the collected data.
ANSWER: D
Which statement is correct about Literature review?
A.It is a compilation of every work written about a topic.
B.It is simply a list of sources reviewed separately for their own merit.
C.It is in itself primary research and does not report on other findings.
D.The literature review asks how similar and related questions have been answered
before.
ANSWER: D
Literature review is all about, Except
A.It is a section where a list of books, journals and other documents is referred.
B.It provides evidences of what is already known and unknown
C.It can serve as a basis for formulating hypothesis.
D.It is a brief summary of related studies found in Journals, Magazines etc
ANSWER: A
One of the following is a document that provides an overview of the proposed
research and methodology, and serves as a written contract between the decision
maker and the researcher.
A.Questionnaire design
B.Research proposal
C.Interview transcript
D.Survey design
ANSWER: B
Identify the incorrect statement about the sources of data
A.Primary data are data collected for the first time by the researcher
B.Secondary data are data that have already been collected by other agency
C.Primary data could be collected by observation and questionnaire
D.None of the above
ANSWER: B
Which one of the following is the source of secondary data?
A.Books, magazines and newspapers
B.Journals of trade, commerce and economics
C.Publications of Central, State and local governments
D.All of the above
ANSWER: D
Which one of the following statements is FALSE about simple random sampling (SRS)
technique?
A.Each part of the population has a known chance of being selected.
B.It may not result in a representative sample
C.To draw a SRS, the researcher should first group the population into parts.
D.Each element of the population is selected independently of every other element.
ANSWER: B
Systematic sampling is not characterized by one of the following statements.
A.The sample is chosen at every skip interval on a list of the population
B.It is less costly and easier than simple random sampling(SRS)
C.It increases the representativeness of the sample than SRS
D.It is used when the population members are naturally grouped
ANSWER: C
Scope of the study addresses the following, Except
A.How you plan to implement a particular sampling procedure
B.How a study will be narrowed or bounded in scope
C.Explain the things that you are not doing
D.Why you have chosen not to do them
ANSWER: A
Which one of the following statement is wrong about research proposal?
A.It is important to convince that his proposal is worth supporting.
B.It is a prerequisite in order to apply to funding and donor organizations
C.The researcher may not necessarily see the research process in its totality
D.It is a bond of agreement between the researcher and that committee
ANSWER: C
Consumer products are different from business product due to one of the following
reason.
A.consumer goods are classified according to how people buy
B.Consumer products may be classified according to use.
C.Consumers purchase frequently, but in a smaller amount
D.Consumers are emotional buyers.
ANSWER: C
An industrial product which is characterized by longer product life cycle, lower
risk of obsolescence and longer replacement periods.
A.Single-purpose equipment
B.Multipurpose equipment
C.Accessory equipment
D.Custom components
ANSWER: A
Among the following one can clearly show the market philosophy difference between
business and consumer market.
A.Innovation in business market is characterizes by R &D technological- push
B.Business markets tend to be geographically concentrated
C.Buying center involves several individuals.
D.Competition in business markets tend to be more oligopolistic
ANSWER: C
The buyers will pay more to prevent break down capital equipment and to keep the
assembly line moving this is due to:
A.Relative price insensitivity (industrial buyer)
B.The acceleration effect
C.Relative price sensitivity (Industrial marketer)
D.The whiplash effect
ANSWER: A
The small fluctuations in retail demand are reflected in inventory patterns at each
level of the channel such kinds of effect is known as----.
A.The acceleration effect
B.Shadow effect
C.The whiplash effect.
D.Hallow effect
ANSWER: C
Suppose you have approached a client whom you have an established business
relationship to sell a new product introduced by your firm. The type of prospect
identification technique being referred here is:
A.Cold call
B.Present customer
C.Endless chain
D.Spotting
ANSWER: B
In which of the following sales budget determination technique, smaller
manufacturers take their cue from a larger manufacturer and adjust their budget in
line with the market leader?
A.The affordable method
B.The objective and task method
C.Parity with competitors’ method
D.The incremental method
ANSWER: C
The starting point in the sales force recruitment process is;
A.Interviewing candidates
B.Induction program
C.Approach applicant sources
D.Prepare job description and person specification
ANSWER: D
In which form of organization, each sales person is assigned to territory over
which to have sole responsibility for sales achievement?
A.Geographic Sales Force Organization Structure
B.Product specialization structure
C.Customer based structure
D.Mixed
ANSWER: A
One of the following statements exemplifies external source of recruitment except;
A.Educational institution
B.Recruitment agencies
C.Salespeople of competing companies
D.Transfers
ANSWER: D
The objective of setting ______________ quotas is to control the cost of marketing
or sales units such as sales territories and salespeople.
A.Expense quotas
B.Net profit quotas
C.Sales volume quotas
D.Activity quotas
ANSWER: A
In which type of compensation plan income is completely dependent on sales results?
A.Commission only
B.Salary plus commission
C.Fixed salary
D.Bonuses
ANSWER: A
Forecasting responsibility is assigned to those who produce the immediate result
under
A.Survey of customer buying plans
B.Jury of executive opinion
C.Composite of sales force opinion
D.Delphi technique
ANSWER: C
Which forecasting uses an average of a specified number of the most recent
observations, with each observation receiving a different emphasis?
A.Simple Moving Average
B.Exponential Smoothing
C.Weighted Moving Average
D.Regression analysis
ANSWER: C
In which type of compensation plan income is completely dependent on sales results?
A.Commission only
B.Salary plus commission
C.Fixed salary
D.Bonuses
ANSWER: A
In which method of sales force size determination approach the number of
salespeople required is determined by dividing the total annual calls required by
the average number of calls one salesperson can make per year?
A.Break down approach
B.Workload approach
C.Incremental approach
D.Percentage of sales approach
ANSWER: B
Is when a prospect presents a concern about the product/service a salesperson is
selling, and the salesperson responds in a way that alleviates those concerns and
allows the deal to move forward.
A.Follow up
B.Objection handling
C.Pre approach
D.Prospecting
ANSWER: B
Is planning, direction, and control of the personnel, selling activities of a
business unit including recruiting, selecting, training, assigning, rating,
supervising, paying, motivating, as all these tasks apply to the personnel sales-
force.
A.Planning
B.Customer relationship
C.Sales marketing
D.Sales management
ANSWER: D
Which one of the following are NOT characteristics of agricultural product?
A.Perishability
B.High value in relation to their volume or weight
C.Bulkiness
D.Quality variation
ANSWER: B
One of the following is common problems in marketing of agricultural products?
A.Small number of middle man
B.Uniform standardization and grading
C.Inadequate storage capacity
D.Adequate market research
ANSWER: C
Which Stages of agricultural marketing include Grain elevators, public refrigerated
warehouses, controlled-atmosphere warehouses, heated warehouses, freezer warehouses
A.Assembly
B.Transportation
C.Storage
D.Packaging
ANSWER: C
Which one of the following is NOT Important grain marketing functions
A.Grain storage
B.Grain grading
C.Perishability
D.Grain processing
ANSWER: C
One of the following is Factors affecting the cost of transportation?
A.Distance
B.Fragility
C.Condition of Road
D.ALL
ANSWER: D
Which types of grading is sorting out of goods according to the size, quality
and other characteristics which are of fixed standards?
A.Fixed Grading/Mandatory Grading
B.Permissive/Variable Grading
C.Centralized/Decentralized Grading
D.ALL of the above
ANSWER: A
One of the following is advantage of Grading?
A.Grading before sale enables farmers to get a higher price for their produce
B.Grading facilitates marketing
C.Grading widens the market for the
D.ALL
ANSWER: D
Which agricultural marketing function involves a change in the form of the
commodity?
A.Packaging
B.Processing
C.Transportation
D.Standardization
ANSWER: B
Is the act of breeding, feeding, and management of animals, or livestock, for the
production of food, fiber, work, and pleasure?
A.Animal Husbandry
B.Poultry and eggs marketing
C.Grading Of Grains
D.The Marketing of Fresh Milk
ANSWER: A