List of MCQs (multiple choice questions) on Marketing Management.

Marketing Management MCQs

1. The width of a product mix is measured by the number of product

(a) dimensions in the product line.

(b) features in each brand.


(c) items in the product line.

(d) lines a company offers.

(e) specialties a company offers.

Ans. d


2. The rate of sales growth declines in the______ stage of the product life cycle.

(a) introduction

(b) growth

(c) maturity


(d) decline

Ans. c

3. The_________ stage of the product life cycle, generates most sales revenue for the firm.

(a) introduction


(b) growth

(c) maturity

(d) decline

Ans. c


4. When Clorox introduced bleach in a no-drip bottle, the firm was taking action consistent with its product being in the____________ stage of product life cycle.

(a) introduction

(b) growth

(c) maturity


(d) decline

Ans. c

5. Which of the following refers to the degree to which a transportation mode can provide equipment and conditions appropriate for moving specific kinds of goods?

(a) Reliability.


(b) Capability

(c) Capacity

(d) Accessibility

(e) Frequency

Ans. b

6. ______________ involves combining and coordinating two or more modes of transportation to take advantage of benefits offered by different types of carriers.


(a) Intermodal transportation

(b) Physical distribution

(c) Containerised movement

(d) Efficient and effective transportation

(e) Freight forwarding

Ans. a


7. Which of the following consolidates shipments from several organisations into efficient lot sizes?

(a) Freight forwarder

(b) Forwarding agency

(c) Transporter

(d) Special transportation company

(e) Intermodal shipping company


Ans. a

8. Physical distribution functions account for approximately ___ of all marketing costs.

(a) one fifth

(b) one quarter

(c) one third

(d) one half


Ans. c

9. While a poor physical distribution system would affect all elements of a company’s marketing mix, the problems associated with a poor system

(a) can usually be solved by investing more money in the system.

(b) are usually caused by increased distribution costs.

(c) can have a negative impact on customer service and satisfaction.

(d) are usually attributed to problems with order processing.


Ans. c

10. As Shelly looks over the litera­ture for the new fax machine her firm is about to introduce, she calls in the author of the mate­rial. She asks why the document says materials are transmitted in under five seconds when the development specifications state that the machine takes ten seconds to transmit a page. She is told that marketing just wanted to stretch the truth a little to improve sales. This causes her to question the____ of the people involved.

(a) moral philosophies

(b) social responsibility

(c) marketing orientation

(d) commitment to marketing

Ans. a

11. Kevin noticed that when Alice weighs tomatoes at the checkout counter, she regularly leans on the scale. Kevin’s consideration about reporting this practice to top management involves ethical decisions with regard to:

(a) organizational relationships.

(b) opportunity.

(c) product issues.

(d) promotion issues.

Ans. a

12. As a new employee, John is most likely to look to which one of the following to learn the ethical culture of his new organisation?

(a) Coworkers

(b) Customer contact employees

(c) Other new employees

(d) The legal department

(e) Top management

Ans. d

13. As a media buyer for the Angelo Agency, Sheila knows that no one ever checks to see if her phone calls are business related or personal. With regard to ethi­cal behaviour, this situation re­lates most closely to:

(a) exposure.

(b) opportunity.

(c) moral framework.

(d) organisational actors.

Ans. c

14. Following a hurricane, a tremen­dous demand for gas-powered generators occurs. Gotts Hard­ware holds a large stock of these items and it faces major ethical decisions with regard to the ________ issue.

(a) product

(b) advertising

(c) personal selling

(d) publicity

(e) pricing

Ans. b

15. Which promotion mix ingredient costs considerably more than advertising to reach one person but can provide more immediate feedback?

(a) Publicity

(b) Sales promotion

(c) Personal selling

(d) Public relations

Ans. c

16. An activity and/or material that offers added value or incentive to resellers, salespersons, or consumers is:

(a) advertising.

(b) personal selling.

(c) publicity.

(d) sales promotion.

Ans. d

17. When a toy manufacturer advertises a product on Saturday-morning television and tells children to ask for the product at their favourite toy shops, it is implementing a ________ policy in its promotion mix.

(a) differentiated

(b) penetration

(c) push

(d) pull

(e) concentrated

Ans. d

18. If a pull policy is to be used in promoting a product, the firm

(a) promotes directly to consumers.

(b) promotes only to the next 1 marketing institution down the marketing channel.

(c) promotes the product to retail stores only.

(d) promotes the product to wholesalers only.

Ans. a

19. In its introduction of Stain master Carpets, DuPont used a pull policy. This approach necessitated heavy expenditure for which one of the following promotional mix elements?

(a) Advertising

(b) Publicity

(c) Personal selling

(d) Distribution

(e) Sales promotion

Ans. a

20. Charging more for a soft drink in a vending machine than in a supermarket is an example of:

(a) price discrimination.

(b) competition oriented pricing.

(c) price differentiation.

(d) cost-oriented pricing.

Ans. c

21. ______________ pricing is possible when a firm is able to reduce its manufacturing costs at a pre­dictable rate through improved methods, materials, skills, and machinery.

(a) experience-curve

(b) price leader

(c) manufacturing based

(d) production-curve

Ans. a

22. If Pepsi sets the price of its six pack to match exactly the price of Coca-Cola’s, Pepsi is using a ________________ pricing method.

(a) demand-oriented

(b) cost-oriented

(c) experience curve

(d) competition-oriented

Ans. d

23. Which of the following pricing methods is used most often by retailers?

(a) Markup pricing

(b) Price discrimination

(c) Price differentiation

(d) Return on investment

(e) Price skimming

Ans. a

24. In the absence of___________ pricing remains a flexible and convenient way to adjust the marketing mix.

(a) experience-curve effects

(b) strong price competition

(c) weak price competition

(d) government price control

(e) low-priced substitute prod­ucts

Ans. d

25. The marketing audit does all the following except

(a) establish marketing objec­tives.

(b) describe current activities.

(c) gather information.

(d) explore opportunities.

(e) provide an overall database.

Ans. d

26. The forecasting method that uses the firm’s historical sales data in an attempt to find patterns in the firm’s sales volume over time is

(a) the regression method.

(b) customer forecasting.

(c) a market test.

(d) sales-force forecasting.

(e) time series analysis.

Ans. b

27. Which sales forecasting tech­nique would generally be most suitable for estimating the sales of a new product?

(a) Executive judgment

(b) Customer surveys

(c) Time series analysis

(d) Market tests

(e) Regression methods

Ans. e

28. The forecasting method that is least dependent on historical data is

(a) regression analysis.

(b) trend analysis.

(c) time series analysis.

(d) cycle analysis.

(e) a market test.

Ans. c

29. The main problem with using a market test is that it is usually

(a) difficult to interpret.

(b) expensive.

(c) inaccurate.

(d) unacceptable to consumers.

(e) overused.

Ans. a

30. What is the marketing objective of nonbusiness organisations?

(a) To provide an idea or service to the public

(b) To obtain a desired response from a target market or pub­lic

(c) To obtain a return on social in­vestment

(d) To determine the target mar­ket and to create and main­tain a satisfying marketing mix

Ans. b

31. Which one of the following groups of people would be con­sidered client publics for a hos­pital?

(a) Patients

(b) Insurance companies

(c) Doctors

(d) Nurses

(e) Pharmaceutical sales repre­sentatives

Ans. a

32. The first sign that a nonbusiness organisation has become aware that it is performing marketing activities is through deci­sions:

(a) target-public

(b) distribution

(c) promotional

(d) price

(e) competitive

Ans. c

33. Children with muscular dystro­phy who receive treatments developed through research pro­grams funded by MDA would represent ________________ for this charitable organisation.

(a) target publics

(b) target population

(c) general publics

(d) focus groups

(e) client publics

Ans. e

34. _______________ is the value of the ben­efit that is given up by selecting one alternative rather than another.

(a) Benefit loss

(b) Opportunity cost

(c) Privileged cost

(d) Selection cost

(e) Exchange loss

Ans. b

35. The idea that views the business as a ‘goods producing process’ is:

(a) Servicing

(b) Producing

(c) Supplying

(d) Selling

Ans. d

36. The mechanism that over emphasizes the ‘exchange’ aspect without caring for the ‘value satisfaction’ inherent in the exchange is:

(a) Selling

(b) Supplying

(c) Marketing

(d) Profiting

Ans. a

37. The area where the seller’s convenience dominates the formulation of the marketing mix is the area of:

(a) Production

(b) Marketing

(c) Supplying

(d) Selling

Ans. d

38. The mechanism that emphasizes on staying with the existing technology and reducing the cost of production is:

(a) Marketing

(b) Selling

(c) Production

(d) Distribution

Ans. b

39. The Traditional Marketing style involves

(a) Telemarketing

(b) Digital Marketing

(c) Indirect Marketing

(d) Direct Marketing

(e) All of these

Ans. c

40. Sales forecast implies

(a) an estimate of the maximum possible sales opportunities present in a particular market segment

(b) an estimate of sales, in physical units, in a future period

(c) Both (a) and (b)

(d) Neither (a) nor (b)

Ans. c

41. In advertising for __________________ is not allowed on T.V

(a) Liquour

(b) Cigarattes

(c) Both (a) and (b)

(d) Neither (a) nor (b)

Ans. c

42. A theory states that no matter how efficiently goods/services are produced, if they cannot be delivered to the customer in the quickest possible time it is vain. This theory is called

(a) Quickest the best

(b) Instant service

(c) Service on time

(d) Timely effort

Ans. b

43. Entrepreneurs find direct marketing the attractive because of

(a) Investment is low

(b) It doesn’t required specialized skills

(c) Returns are quick

(d) All of the above

Ans. d

44. Demonstration is an exercise to

(a) Attractively pack and display the goods

(b) Prove the characteristic of the product

(c) Both (a) and (b)

(d) Neither (a) and (b)

Ans. b

45. A good control system should active corrective action no-sooner_________ occur.

(a) Deviations

(b) Flexible

(c) Controllable

(d) All of these

Ans. a

46. Management must think of itself not as producing products but a providing customer creating value —

(a) Forcing

(b) Satisfactions

(c) Disapproval

(d) Demand

Ans. b

47. Which of the following is Marketing oriental –

(a) Broad Product line

(b) Consumer Consideration dominate

(c) Decentralised

(d) All of these

Ans. d

48. Marketing-orientation consists –

(a) External influence dominate objectives

(b) Market Research

(c) Emphasis on market price rather than cost

(d) All of these

Ans. d

49. Marketing-orientation is combination of –

(a) Flexibility in production

(b) Style and appearance prime consideration

(c) Controller

(d) All of these

Ans. d

50. “A marketing policy is a statement of a course of action which will be followed under a given set of circumstances.” Who said it?

(a) William J. Stanton

(b) Manson and Rath

(c) Mc Carthy

(d) None of these

Ans. a

51. An appropriate pricing policy has a positive impact on profit making and –

(a) Sales realisation

(b) Controlling

(c) Purchasing

(d) None of these

Ans. a

52. The advantage of a high profit under the value pricing approach is ______________ in the long run when there is a consumer segmentation for the product with a high recognition

(a) Anticipated

(b) Inspired

(c) Motivated

(d) Oriented

Ans. a

53. Which of the following is included under store retailers?

(a) Departmental Store

(b) Super Markets

(c) Discount Store

(d) All of these

Ans. d

54. Which of the following is included under store retailers?

(a) Super Store

(b) Hyper Markets

(c) Convenience Store

(d) All of these

Ans. d

55. Why are marketers interested in the level of disposable income?

(a) it accurately represents future buying power

(b) it increases current buying power

(c) it is what is left after taxes to buy luxuries with

(d) it is a ready source of buying power

(e) it is essential for forecasting future business trends

Ans. d

56. Which of the following companies would probably be most interested in tracking discretionary income levels?

(a) ASDA Supermarkets

(b) BMW automobiles

(c) The Post Office

(d) Kraft General Foods

(e) Marks and Spencer

Ans. b

57. What type of competitive structure exists when a firm produces a product that has no close substitutes?

(a) Monopoly

(b) Oligopoly

(c) Monopolistic Competition

(d) Perfect Competition

(e) Mixed Competition

Ans. a

58. In the beer industry, a few large brewers supply the majority of the market. The brewing industry is an example of which of the following competitive structures:

(a) Monopoly

(b) Oligopoly

(c) Monopolistic Competition

(d) Perfect Competition

(e) Monopsony

Ans. b

59. Which of the following firms would most likely have a monopoly for its competitive environment?

(a) Sunset Cablevision

(b) Montgomery Transport

(c) Post Office Parcel Services

(d) Telecom Car Phones

(e) Dorset Lawn Care

Ans. a

60. Essex Office Products has decided to use a particular competitive tool that it feels will have a major impact. Its consultant, Dr. Bell, contends that this particular approach is the one most easily copied by the firm’s competitors. The tool in question is:

(a) price

(b) market segmentation

(c) distribution

(d) promotion

(e) product innovation

Ans. a

61. A small hardware store whose only competitor is a huge discount store would be least likely to use which competitive tool?

(a) services

(b) price

(c) product offering

(d) distribution

(e) promotion

Ans. b

62. Marketing is best defined as:

(a) matching a product with its market.

(b) promoting and selling products.

(c) facilitating satisfying exchange relationships.

(d) distributing products at the right price to stores.

Ans. c

63. The expansion of the definition of marketing to include nonbusiness activities adds which one of these examples to the field of marketing?

(a) Proctor and Gamble selling toothpaste.

(b) St. Pauls Church attracting new members.

(c) PepsiCo selling soft drinks.

(d) Lever’s donating 25 pence to a charity with every pack purchased.

Ans. b

64. Tom goes to a vending machine, deposits 50 pence, and receives a Cola. Which one of the following aspects of the definition of marketing is focused on here?

(a) Production concept.

(b) Satisfaction of organisational goals.

(c) Product pricing and distribution.

(d) Exchange.

Ans. d

65. The marketing environment is best described as being:

(a) composed of controllable Variables.

(b) composed of variables independent of one another.

(c) an indirect influence on marketing activity.

(d) dynamic and changing.

Ans. d

66. A physical, concrete product you can touch is:

(a) a service

(b) a good

(c) an idea

(d) a concept

Ans. b

67. Which product is most likely be purchased through routine decision making?

(a) Car

(b) Desk

(c) Shirt

(d) Soft drink

(e) Television set

Ans. d

68. Alice plans to buy a new swimsuit for her spring break cruise. She has not seen this year’s styles and will do some shopping around before making a purchase decision. Alice is engaging in ________.

(a) routine response behaviour

(b) extensive decision making

(c) limited decision making

(d) extensive response behaviour

Ans. c

69. Susan has left her parents’ home and moved into a new flat. She is spending considerable time and effort comparing the ranges of furniture in different retail stores. Which type of decision-making process is she using?

(a) Selective

(b) Intensive

(c) Extensive

(d) Shopping

(e) Routine

Ans. c

70. If Kwik-Fit runs an ad asking customers to check windscreen wiper blades for wear, the firm is attempting to stimulate which of the following?

(a) Information Search

(b) Evoked set formation

(c) Evaluation of alternatives

(d) Problem recognition

Ans. d

71. As Bob runs out of shaving cream, he tries to remember what he did the last time this happened. He is engaging in:

(a) external search

(b) evoked set development

(c) internal search

(d) cognitive dissonance

(e) alternative evaluation

Ans. c

72. According to the text, a product is

(a) everything the customer receives in an exchange.

(b) the physical object the customer receives in an exchange.

(c) the service that is rendered to a customer.

(d) the idea that the customer receives in an exchange.

(e) goods and services the customer receives in an exchange.

Ans. a

73. A light bulb can be considered all of the following except

(a) a consumer product.

(b) an business-to-business product.

(c) either a consumer product or an industrial product.

(d) an industrial product if it is used to light an assembly line in a factory.

(e) a consumer product if it is used to light the office of the board of directors.

Ans. e

74. An example of a convenience consumer product is

(a) stereo equipment.

(b) petrol.

(c) a motorcycle.

(d) a bicycle.

(e) athletic shoes.

Ans. b

75. Sue North called several airlines to compare rates and chose a flight on British Midland as it had a better reputation for service and competitive prices. The airline ticket is an example of which type of product?

(a) convenience

(b) shopping

(c) specialty

(d) unsought

Ans. b

76. Products that are relatively inexpensive and are purchased frequently with minimal effort can be classified as_____________ products.

(a) shopping

(b) convenience

(c) industrial

(d) specialty

(e) unsought

Ans. b

77. Wholesaling is best defined as

(a) All transactions in which products are bought for re­sale, for making other prod­ucts, or for general business operations.

(b) All transactions made at retail outlets only.

(c) All transactions in which pur­chases are for production of other goods only.

(d) All marketing activities neces­sary to expedite exchanges to ultimate consumers.

Ans. a

78. Select the True statement.

(a) Wholesaling activities must be performed during distri­bution of all goods, whether or not a wholesaling institu­tion is involved.

(b) Only wholesaling establish­ments can perform wholesal­ing activities.

(c) Wholesaling is an inefficient process that should be elimi­nated from the marketing channel.

(d) The biggest problem with the wholesaling process is that inefficient wholesalers are not eliminated.

Ans. a

79. In the UK wholesaling is not as important in consumer markets. This is mainly because:

(a) Manufacturers prefer to deal direct with retailers

(b) Of the strength of large na­tional retailers

(c) Wholesaling costs are higher in the UK than elsewhere

(d) UK wholesalers provide a more limited range of ser­vices than in other European markets.

Ans. b

80. By using a wholesaler, Inversoft Ltd. has a distinct advantage because the specialised services performed by the wholesaler al­low the firm to:

(a) Focus on developing and manufacturing products that match consumers’ needs and wants.

(b) Focus on increasing produc­tion capacity and efficiency

(c) Reduce manufacturing costs to retailers and provide qual­ity merchandise to consum­ers.

Ans. a

81. From a retailer’s point of view, the MOST basic advantage of using a wholesaler is that the wholesaler

(a) Extends credit to the retailer.

(b) Provides storage facilities to the retailer.

(c) Can perform physical distri­bution activities more effi­ciently than the retailer.

(d) Takes ownership of goods for the retailer.

Ans. c

82. The only service that both rack jobbers and cash-and-carry wholesalers perform is

(a) Personal sales calls on cus­tomers.

(b) Providing credit to custom­ers.

(c) Delivering merchandise to customers.

(d) Providing advice to custom­ers.

(e) Physical possession of mer­chandise.

Ans. e

83. A cash-and-carry wholesaler would be expected to

(a) Provide transportation.

(b) Handle high turnover prod­ucts.

(c) Provide credit.

(d) Carry wide variety of prod­ucts.

(e) Provide wide range of ser­vices.

Ans. b

84. George Prakash has a group of fanners who provide him with a regular supply of fresh veg­etables. He picks up their pro­duce and has a regular route of grocers and restaurants who in­spect and purchase quantities of the items he has on any given day. George’s operation is which type of wholesaler?

(a) Drop shipper

(b) Limited-line

(c) Truck

(d) Cash-and-carry

(e) Specialty-line

Ans. c

85. ______________provide a conve­nient and effective method of selling small items to customers in remote areas that other whole­salers might find unprofitable to serve.

(a) Mail-order wholesalers

(b) Specialty-line wholesalers

(c) Cash-and-carry wholesalers

(d) Truck wholesalers

(e) Desk jobbers

Ans. a

86. The primary purpose of a broker is to

(a) Taketitle to a producer’s goods before selling them to retailers or consumers.

(b) Sell directly to the final con­sumer.

(c) Supply products in the food industry by developing per­manent, trusting relation­ships with buyers.

(d) Sell directly to producers.

(e) Bring buyers and sellers to­gether.

Ans. e

87. The basic role of promotion is

(a) information.

(b) manipulation.

(c) communication.

(d) interpretation.

Ans. c

88. People tend to view promotion from many vantage points. Which alternative below is most accurate?

(a) Promotion costs because product costs to be higher.

(b) Promotion activities make up the bulk of marketing.

(c) The role of promotion is to communicate and to facilitate exchanges.

(d) Promotion should be directed toward numerous audiences.

Ans. c

89. A person, group, or organisation that has a meaning it intends and attempts to share with a receiver or an audience is a

(a) medium of transmission.

(b) source.

(c) relay channel.

(d) decoder.

(e) sender.

Ans. b

90. When encoding the message, the source should use signs that have

(a) new and exciting meanings.

(b) different meanings to different people.

(c) contemporary jargon.

(d) meanings that the target market will understand.

(e) broad interpretations.

Ans. d

91. In the Gillette advertisement that claims “Gillette, the best a man can get,” Gillette is the communication:

(a) receiver

(b) transmitter.

(c) decoder.

(d) source.

Ans. d

92. When establishing prices, a marketer’s first step is to

(a) determine demand.

(b) develop pricing objectives.

(c) select a pricing policy.

(d) evaluate competitors’ prices.

(e) determine a pricing method.

Ans. b

93. If Wrigley sets its pricing objec­tive as attaining 38 percent of the chewing gum market, what else would be needed to make this a true pricing objective?

(a) A statement of demand elasticity’s

(b) An identification of cost struc­ture

(c) A breakeven analysis

(d) Identification of a time period for accomplishment

Ans. d

94. The importance of price to a par­ticular target market depends on the type of product, the type of target market, and the

(a) state of the economy.

(b) availability of substitute products.

(c) purchase situation.

(d) amount of discretionary in­come in the target market.

Ans. c

95. When marketers at The Honey Company tried to determine de­mand for their product, they found that at 50 pence, consum­ers wanted 2,000 jars; at £1.00, they wanted 6,000 jars; and at £1.50 they wanted 4,000 jars. What can the company conclude?

(a) Honey has a normal demand curve.

(b) It has an elastic product.

(c) It has an inelastic product.

(d) Honey is a prestige good.

Ans. d

96. Which one of the following products is most likely to have an inverted C-shaped demand curve?

(a) Wrangler jeans

(b) Georgio perfume

(c) Maxwell House coffee

(d) St Michael Christmas cake

(e) FordSierra

Ans. b

97. A marketing plan

(a) is characteristic of produc­tion-oriented firms and other mass producers.

(b) provides a framework for implementing and control­ling marketing activities.

(c) always increases the market­ing manager’s operating costs.

(d) produces plans that are short- term in orientation.

(e) restricts the marketing mana­ger’s future options.

Ans. b

98. Short-range marketing plans cover

(a) five years or less.

(b) four years or less.

(c) three years or less.

(d) two years or less.

(e) one year or less.

Ans. c

99. Marketing plans that cover a pe­riod of more than 5 years are

(a) long-range plans.

(b) short-range plans.

(c) medium-range plans.

(d) average-range plans.

(e) normal-range plans.

Ans. d

100. In the marketing planning cycle, the final stage is:

(a) implementation of the mar­keting plan.

(b) revision or formulation of marketing strategy.

(c) development or revision of marketing objectives

(d) assessment of marketing opportunities and resources.

(e) development or revision of the plan for implementation and control.

Ans. c

101. Which of the following is not a purpose of a marketing plan?

(a) it specifies how resources are to be allocated

(b) it co-ordinates marketing and production activities

(c) it assigns responsibilities, tasks and timing

(d) it assists in management con­trol

(e) it offers a road map for imple­menting marketing strategy

Ans. d

102. Classification of products into goods, services, and ideas is determined by the:

(a) degree of labour intensive- ness.

(b) type of markets.

(c) dominant component.

(d) skill of the service provider.

(e) degree of consumer contact.

Ans. c

103. Which of the following is gener­ally viewed as a business or industrial service?

(a) Hair care services

(b) Marketing research

(c) Dry cleaning

(d) Therapeutic massages

(e) Chimney cleaning

Ans. b

104. Of the following alternatives which service is the most people-based?

(a) Dry cleaning

(b) Carpet cleaning

(c) Swimming instruction

(d) Airline flight

(e) Hotel accommodations

Ans. c

105. Services can be meaningfully analysed by using a-five-category classification scheme in­cluding type of market, degree of labour-intensiveness, degree of customer contact, skill of service provider, and

(a) degree of competition within the service industry.

(b) goal of the service provider.

(c) market share of the service provider.

(d) employee structure of the ser­vice provider.

(e) production environments.

Ans. b

106. The appearance of the produc­tion facilities and the interper­sonal skills of actual service pro­viders are critical in _______________services.

(a) low-contact

(b) equipment-based

(c) industrial

(d) high-contact

(e) non-professional

Ans. d

107. The system that recognizes a need on the part of a consumer and terminates with the satisfaction of that need by the delivery of a usable product at the right time, at the right place and at an acceptable price is:

(a) Servicing

(b) Exchange

(c) Marketing

(d) Distribution

Ans. c

107. The purpose of _____________ is to inform customers of the features and benefits of a product/service and persuading them to purchase it in preference to the products/services of competitors.

(a) Marketing

(b) Image

(c) Marketing plan

(d) Advertising

Ans. d

108. __________ involves targeting specific areas where potential customers are likely to be, using public information lists to help identify prospective clients.

(a) Direct mail

(b) Radio

(c) Point of sales display

(d) Community directories

Ans. a

109. The activities concerned with the demand-stimulating and demand-fulfilling efforts of an enterprise are those of:

(a) Production

(b) Rent

(c) Distribution

(d) Marketing

Ans. b

110. The function that adjusts the organization’s offering to the changing needs of the market place is the function of:

(a) Production

(b) Service

(c) Marketing

(d) Finance

Ans. c

111. What is the advantages of on-line marketing?

(a) Making the size of marketer Irrelevant

(b) Increasing feedback

(c) Marking Dis-intermediation Feasible

(d) All of these

Ans. d

112. Which is the barriers to on-line Marketing?

(a) Infrastructural Barriers

(b) Security

(c) Logistics

(d) All of these

Ans. d

113. Extranets are a blend of the –

(a) Public internet and Internets

(b) Risk Internet

(c) Open Internet

(d) Common Internet

Ans. a

114. Which one of the following is not element of marketing mix?

(a) Promotion

(b) Place

(c) Product

(d) Plan

Ans. d

115. The choice of marketing mix depends upon –

(a) The marketing environment of the organisation

(b) Marketing objectives

(c) Marketing organisation structure and information system

(d) All of these

Ans. d

116. Which of the following statement is true?

(a) The essence of marketing is a transaction of an exchange

(b) Marketing-orientation is philosophy, which has to pervade the organisation structure

(c) Marketing is also a managerial function involving analysis planning and control marketing activities in an organisation.

(d) All of these

Ans. d

117. The role of marketing in modern organisation is-with marketing offers to lend a competitive edge and marketing tasks to match the demand and supply –

(a) Integrative

(b) Non-integrative

(c) Responding

(d) All of these

Ans. a

118. The marketing concept involves-

(a) Customer Orientation

(b) Organisation Integration

(c) Goal Achievement

(d) All of these

Ans. d

119. Which of the following is not discount policy?

(a) Discount Cash Policy

(b) Trade Discount Policy

(c) Quantity Discount Policy

(d) All of these

Ans. d

120. Quantity Discount Policy consists —

(a) Cumulative Quantity Discount

(b) Non-cumulative Quantity Discount

(c) Off Season Discount Policy

(d) All of these

Ans. d

121. “The expected price for a product is the price at which consciously or unconsciously value the product, it is what they think the product is worth.” Who refer this statement?

(a) William J. Stanton

(b) Philip Kotler

(c) Manson and Rath

(d) R. S. Dawar

Ans. a

122. Which one of the following is not views regarding marketing concept?

(1) The distribution of goods and service concept

(2) The creation of utilities concept

(3) Delivery of Standard of living concept

(4) System approach concept

(5) Consumer satisfaction concept


(a) 1, 2 and 4

(b) 1 and 3

(c) 1, 2, 3 and 5

(d) None of these

Ans. d

123. Statement (A) – Marketing occupies an important position in the organisation.

Statement (B) – Marketing is the function of business concerned with creation of a consumer.


(a) Statement A and Statement B both are true.

(b) Statement A is true but Statement B is not true.

(c) Statement A is not but Statement B is true.

(d) Statement A and B both are untrue.

Ans. a

124. Which of the following organizations have recognized the importance of knowledge management to being a learning organization?

(a) General electric

(b) Toyota

(c) Buckman Laboratories

(d) All of the above

Ans. d

125. If Erin Farm Insurance saw a sudden increase in the number of farmers seeking flood insurance in Ireland due to major floods in Britain, the floods would be presenting the company with a marketing:

(a) opportunity

(b) strategy

(c) concept

(d) mix

Ans. a

126. A change in the minimum drinking age in the United Kingdom presents a change in which of the following for Bass Brewery?

(a) Marketing mix

(b) Marketing environment

(c) Marketing concept

(d) Marketing task

(e) Product strategy

Ans. b

127. If Good Invest was to perceive that consumers within a particular group were becoming more conservative in their investing, and thus developed more products with lower risk, it would be:

(a) responding to the marketing environment

(b) changing its target market

(c) developing a sales orientation

(d) changing its organisation structure

(e) responding to changes in technology

Ans. a

128. Capri is a brand of cigarette that is low tar and slim in design to appeal to women. In this instance, women comprise Capri’s:

(a) marketing mix

(b) target market

(c) target audience

(d) marketing strategy

(e) marketing opportunity

Ans. b

129. When DuPont develops new carpets that are highly stain resistant and durable, it must educate consumers about the product’s benefits. This calls for activity in which of the following marketing mix variables?

(a) Price

(b) Promotion

(c) Distribution

(d) Product

(e) Packaging

Ans. b

130. Attitude refers to

(a) the internal traits and behaviours that make a person unique.

(b) a set of actions that a person in a particular position is supposed to perform.

(c) competence and efficiency in performing activities.

(d) a person’s behaviour caused by information and experi­ence.

(e) one’s evaluation, feelings, and behavioural tendencies toward an object or idea.

Ans. e

131. An attitude scale measures the:

(a) strength of a buyer’s need for a product.

(b) buyer’s level of information about a product.

(c) amount of experience the buyer has had with the product.

(d) intensity of a buyer’s feelings toward a certain object.

(e) intensity of a buyer’s desire for the product.

Ans. d

132. The set of actions and activities associated with each position one holds within a group, organisation, or institution constitutes

(a) personality.

(b) a role.

(c) a motive.

(d) perception.

(e) an attitude.

Ans. b

133. A culture can be divided into subcultures according to

(a) personality characteristics.

(b) the motives that people have for their behaviour.

(c) geographic regions or human characteristics, such as age or ethnic background.

(d) geographic regions and income levels.

(e) the information to which consumers allow themselves to be exposed.

Ans. c

134. Shortly after purchasing a product, the post-purchase evaluation may result in cognitive dissonance. Cognitive dissonance is best defined as

(a) the congruence between external and internal searches for product information.

(b) satisfaction with the purchase.

(c) the establishment of criteria for comparing products.

(d) doubts that occur because the buyer questions whether the decision to purchase the product was right.

Ans. d

135. The depth of a product mix is measured by the average number of

(a) convenience products as compared with the number of specialty products.

(b) different product lines offered by the company.

(c) different products offered in each product line.

(d) specialty products as compared with the number of convenience products.

(e) product features that the company offers.

Ans. c

136. Beatrice Company markets such diverse products as Rosarita Mexican foods and Samsonite luggage. These various offerings exhibit Beatrice’s product mix

(a) width.

(b) depth.

(c) length.

(d) volume.

(e) dimension.

Ans. a

137. Aggressive pricing is typical during the____________ stage of the product life cycle.

(a) decline

(b) growth

(c) introduction

(d) plateau

(e) stabilisation

Ans. b

138. Sales usually start to decline ____ of the product life cycle.

(a) at the beginning of the termination stage

(b) at the end of the growth stage

(c) at the beginning of the decline stage

(d) during the maturity stage

Ans. d

139. An ad that stresses “Demand the real Lucas Wine Cooler; accept no substitutes!” is best geared for which stage of the product life cycle?

(a) Introduction

(b) Growth

(c) Maturity

(d) Decline

Ans. b

140. The channel member that mar­kets all of a manufacturer’s out­put, has complete authority over price, promotion, and distribu­tion, but does not take title to the product is a

(a) Limited-line wholesaler.

(b) Selling agent.

(c) Commission merchant.

(d) Manufacturers agent.

(e) Broker.

Ans. b

141. Kane Produce Ltd, a___________, takes possession of truckloads of tomatoes, arranges for storage, and transports them to auctions to be sold.

(a) Manufacturer’s agent

(b) Selling agent

(c) Commission broker

(d) Commission merchant

(e) Selling broker

Ans. d

142. A manufacturer-owned opera­tion that provides services usually associated with agents is a

(a) Facilitating agency.

(b) Wholesaler.

(c) Sales office.

(d) Sales branch.

(e) Public warehouse.

Ans. c

143. “Floor planning” is performed by

(a) Private warehouses.

(b) Finance companies.

(c) Public warehouses.

(d) Field warehouses.

(e) Transportation companies.

Ans. b

144. Rapid Parcel Service is a trans­portation company that produc­ers use to forward freight to cus­tomers. This example illustrates wholesaling functions per­formed by:

(a) Sales offices

(b) Sales branches

(c) Public warehouses

(d) Facilitating agencies

(e) Warehousing agencies

Ans. d

145. Buckman Laboratories regularly conducts an employee attitude survey. The findings from this study are most useful in which of the following areas?

(a) Motivating personnel

(b) Recruiting personnel

(c) Employee evaluation

(d) Establishing performance standards

Ans. c

146. To facilitate communication, marketing managers should

(a) Emphasise the firm’s market­ing objectives.

(b) Establish an information sys­tem within the marketing unit.

(c) Forman open-communication group within the marketing unit.

(d) Integrate marketing activities with other departments.

Ans. c

147. Marketing managers at London Equipment Company are in­volved in establishing marketing performance standards, evaluat­ing performance, and reducing the differences between actual and desired performance. These marketing managers are engaged in

(a) The marketing control pro­cess.

(b) Marketing systems design.

(c) The marketing audit.

(d) Marketing evaluation.

Ans. b

148. The final step in the marketing control process is to

(a) Take corrective action.

(b) Establish performance stan­dards.

(c) Evaluate actual performance.

(d) Compare actual performance and standards.

(e) Reduce the difference between actual and desired standards.

Ans. b

149. Morris Business Products Co. has established a monthly sales quota of £150,000. This is:

(a) A marketing control standard.

(b) An evaluation standard.

(c) Sales analysis.

(d) Performance standard.

Ans. d

150. A consumer contest is an example of

(a) personal selling.

(b) sales promotion.

(c) advertising.

(d) indirect selling,

(e) public relations.

Ans. b