Marketing Knowledge MCQs

Marketing Knowledge MCQs

The following Marketing Knowledge MCQs have been compiled by our experts through research, in order to test your knowledge of the subject of Marketing Knowledge. We encourage you to answer these 100+ multiple-choice questions to assess your proficiency.
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Cognitive dissonance is a doubt that surfaces when a buyer becomes aware that an alternative product may offer more desirable benefits than the one purchased.

A.   True

B.   False


Individuals selected from the target market are asked to look through a magazine and recall advertisements they have seen. This is a test to see the effectiveness of advertising. What is it called?

A.   Recognition test

B.   In-magazine recognition test

C.   In-magazine advertising test

D.   Advertisement recall test


Price Floor is a price imposed by law below which market prices are not permitted to fall.

A.   True

B.   False


What does the Latin phrase 'Caveat Emptor' mean?

A.   Let the buyer beware

B.   Let the seller beware

C.   Let the producer beware

D.   None of the above


How does a company differentiate the image acquired through the use of its logo and other symbols, its advertising and its atmosphere from that of its competitors?

A.   Through services differentiation

B.   Through personnel differentiation

C.   Through image differentiation

D.   Through visual differentiation


Which strategy involves advertising tactics that intend to change its brand's image and relies on imagery and symbolism to achieve its objective?

A.   Image oriented change strategy

B.   Information oriented change strategy

C.   Information oriented maintenance strategy

D.   Image oriented maintenance strategy


The main purpose of the guaranteed price is to assure the traders to order items in subsequently large quantities.

A.   True

B.   False


Which monopolistic pricing technique is taking advantage of the absence of competition which a seller put to use to charge unusually high prices?

A.   Price gouging

B.   Price skimming

C.   Price war

D.   Price winning


What is a delayed response by consumers to an advertising campaign called?

A.   Timed response

B.   Delayed response

C.   Lagged response

D.   Lagged effect

E.   Lead time response


State which of the following groups exhibits the following traits:

It is tradition bound.
It adopts innovative methods only when it takes on a measure of tradition itself.

A.   Laggards

B.   Early adopters

C.   Innovators

D.   Late adopters


Which type of general attack strategy involves matching the opponent in terms of product, price, promotion and distribution?

A.   Flank attack

B.   Frontal attack

C.   Bypass attack

D.   Encirclement attack


Which of the following is more likely to occur when there is little significant difference between two products?

A.   Unplanned Cannibalisation

B.   Planned Cannibalisation

C.   Cannibalisation

D.   Differential Cannibalisation


Which marketing strategy consists of launching a new product at a high price and a high promotional level?

A.   Slow-skimming strategy

B.   Rapid-penetration strategy

C.   Rapid-skimming strategy

D.   Slow-penetration strategy


A brand name used for a number of products in the same line is called.

A.   Family brand

B.   Corporate brand

C.   Singular brand

D.   Sister brand


Which pricing method involves estimating the price that customers would be willing to pay for a given product and then comparing it to the per unit cost to see if it meets the firm's profit objectives

A.   Demand backward pricing method

B.   Demand forward pricing method

C.   Supply forward pricing method

D.   Customer pricing method


Cannibalisation is the loss of _______ of a product to a new offering in the product line.

A.   price

B.   profit

C.   supply

D.   sales


In which assortment strategy does a reseller decide to carry many variants of each product in the range?

A.   Scrambled Assortment

B.   Broad Assortment

C.   Exclusive Assortment

D.   Deep Assortment


The options to lease or purchase a product or to manufacture it internally sometimes faced by a manufacturing company, when considering the acquisition of a new product, is called.

A.   hire-purchase decision

B.   lease decision

C.   manufacturing decision

D.   make or buy decision


Which term is used for describing the difference between the original selling price of an article and the price to which it is reduced in order to sell it?

A.   Mark-down ratio

B.   Mark-up ratio

C.   Price drop ratio

D.   Fall out ratio


Which Strategic Business Unit(SBU) is characterized by high market share and low market growth?

A.   Question marks

B.   Cash cows

C.   Dogs

D.   Stars


Which model out of the following assumes that the consumer evaluates product characteristics according to his priorities?

A.   Determinance model

B.   Disjunctive model

C.   Iconoclastic model

D.   Lexicographic model


What is the marketing of 'environmentally friendly' products known as?

A.   Global marketing

B.   Environment marketing

C.   Yellow marketing

D.   Green marketing

E.   Ozone marketing


Fixing the price of a product in denominations like $7.95, $19.95 is referred to as.

A.   odd pricing

B.   even pricing

C.   odd-even pricing

D.   decimal pricing

E.   None of the above


In which type of marketing test are consumer goods tested in the market using a simulated store technique rather than an actual test market?

A.   Accelerated test marketing

B.   Accepted test market

C.   Laboratory test markets

D.   Simulated test markets


Which period in the Product Life Cycle is a period of rapid market acceptance and substantial profit improvement?

A.   Introduction stage

B.   Maturity stage

C.   Growth stage

D.   Decline stage


Which of the following are models of brand valuation?

A.   Expectancy-value model

B.   Conjunctive model

C.   Black box model

D.   Porter's five force model


Which of the following are the main characteristics of an adversarial shopper?

A.   He is determined to get a good value at a low price

B.   He values quality & ignores high price

C.   He does not regard all prices as negotiable


An arrangement of lines and spaces in a code form used to identify a product by style, size, price, quality, quantity etc. is known as_____.

A.   line code

B.   bar code

C.   point chart

D.   pie chart

E.   line and space code


Which function includes the assembling of a variety of products, storing them, sorting them into appropriate categories and sizes and arranging them on retail shelves?

A.   Facilitating function

B.   Transactional function

C.   Logistical function

D.   Promotional function


Philip Kotler's Black Box Model is used to explain the hidden nature of.

A.   consumer behavior

B.   the seller's pricing policy

C.   the competitor's strategy

D.   consumer decision-making

E.   supplier economics


Which type of assortment strategy is used by a news agency when it adds indoor plants and house wares to its range of newspapers, stationery and books?

A.   Exclusive Assortment

B.   Scrambled Assortment

C.   Inclusive Assortment

D.   Broad Assortment


A _______ is a rather narrowly defined group, typically a small market, whose needs are not being well served.

A.   niche

B.   clique

C.   tangent

D.   All of the above


In which type of marketing does a company recognize that buyers differ in their wants, purchasing power, geographical locations, buying attitudes and buying habits?

A.   Geographical marketing

B.   Differentiated marketing

C.   Local marketing

D.   Segment marketing


In which of the following cost-pricing approaches does a firm determine a price that would yield the target rate of return on investment(ROI)?

A.   Perceived-value pricing

B.   Target-return pricing

C.   Value pricing

D.   ROI pricing


State whether True or False.

Market followers are firms that carve out a distinct niche for themselves, which had been left uncovered by the other firms in the industry.

A.   True

B.   False


State whether True or False.

Knock-offs is a term used to refer to new product innovations which are almost identical, look-alike copies of the competitors' best-selling items.

A.   True

B.   False


State whether True or false.
Reactive Marketing Control System is a system which allows changes to be made in the marketing objectives during a planning period, as well as in the performance to meet those objectives.

A.   True

B.   False


The accelerator principle states that ________ in consumer demand will affect several layers of demand in organizational markets.

A.   An increase

B.   A decrease

C.   Both an increase or a reduction

D.   None of these

39: ________ e-commerce is the online exchange between companies and individual consumers.

A.   Business-to-Business (B2B)

B.   Business-to-Consumer (B2C)

C.   Consumer-to-Consumer (C2C)

40: A ________ is a modification to an existing product.

A.   Technical innovation

B.   Continuous innovation

C.   Discontinuous innovation

D.   Commercial innovation

41: A marketing channel helps to create ______ utility?

A.   Place

B.   Electric

C.   Image

D.   Form

E.   Time

42: Companies who passively accept the marketing environment __________.

A.   Use lobbying to influence legislation

B.   Assume that their strategic options are not bound by the current environment

C.   View it as uncontrollable and do not attempt to change it

D.   Form contractual agreements to control their distribution channels

E.   Develop strategies to change the environment

43: Customer-driven marketing is most effective when ________.

A.   A clear need exists among customers, but the need is difficult to identify

B.   Customers do not know what they want but are easily persuaded

C.   Customers seek new products and technological innovations

D.   Clear needs exist and customers know what their needs are

E.   Customers have wants but cannot afford them

44: In the production system model, all of the following would be considered inputs except _____.

A.   Fixed costs are low

B.   The local culture

C.   Service

D.   The finished product

45: ________ variables segment markets in terms of shared activities, interests, and opinions.

A.   Demographic

B.   Ethnographic

C.   Geodemographic

D.   Socioeconomic

E.   Psychographic

46: Business markets are similar to consumer markets in that ________.

A.   The nature of the buying unit is the same for both

B.   The decision processes involved in both the markets are same

C.   Both involve people who assume buying roles and make purchase decisions to satisfy needs

D.   Both share the same market structure

47: A ____ item is something that is purchased without much thought before the purchase.

A.   Quick

B.   Specialty

C.   Convenience

D.   Shopping

48: A _____ brand refers to a brand name owned by a manufacturer or a producer.

A.   Private

B.   Generic

C.   National

D.   Captive

49: A market position refers to ________.

A.   The organization's decision to use no more than two elements of the marketing mix

B.   The location where the organization sells its products

C.   The specific means the organization uses to distribute its products

D.   How the target market perceives a product in relation to competitors' products

50: The restaurant industry is characterized by a ________ barrier to entry.

A.   Ow

B.   Moderate

C.   High

D.   Moderately high