In the name of ALLAH, the most beneficient, the most merciful

Principles of Marketing (MGT301)

Multiple Choice Questions (MCQs)

Objective Questions

  1. Customer value is defined as the customer's evaluation of the perceived difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.

    1. True
    2. False
  2. Marketing offers are limited to physical products.

    1. True
    2. False
  3. Human needs are shaped by culture and individual personality.

    1. True
    2. False
  4. Selling is managing profitable customer relationships.

    1. True
    2. False
  5. When railroad companies thought that users wanted trains rather than transportation and overlooked the growing challenge of other modes of transportation they were following the selling concept.

    1. True
    2. False
  6. Delivering superior customer value and customer satisfaction are the two keys to building lasting customer relationships.

    1. True
    2. False
  7. The production concept and product concept are two philosophies that can both lead to marketing myopia.

    1. True
    2. False
  8. When backed by buying power, needs become demands.

    1. True
    2. False
  9. Customer-perceived value depends on the product's perceived performance relative to a buyer's expectations.

    1. True
    2. False
  10. Mission statements should be realistic and general in nature.

    1. True
    2. False
  11. Strategic control involves looking at whether a company's basic strategies are well matched to its opportunities.

    1. True
    2. False
  12. After carefully questioning your msjor suppliers and resellers, you ascertain they do not form important sources of intelligence information for marketing decision making.

    1. True
    2. False
  13. Marketing strategy is the marketing logic by which a company hopes to achieve profitable customer relationships.

    1. True
    2. False
  14. Making more sales to current customers without changing a firm's products is market penetration.

    1. True
    2. False
  15. Your manager asked you to go through three of your competitors' garbage bins to gather marketing intelligence from their discarded paperwork. One of them caught you in the act and has summoned you to court. The judge will most likely rule this to be an illegal activity and fine you and your company.

    1. True
    2. False
  16. Strategic market planning is the task of selecting an overall company strategy for long-run survival and growth.

    1. True
    2. False
  17. When you collect informationfrom your company's accounting and sales records stored in the computer. You are developing an internal database.

    1. True
    2. False
  18. "At Nike, we sell shoes" is a market-oriented business definition.

    1. True
    2. False
  19. Derived demand refers to the business demand that ultimately comes from the demand for consumer goods.

    1. True
    2. False
  20. The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction.

    1. True
    2. False
  21. The late majorities are skeptical; they adopt an innovation only after their friends have tried it.

    1. True
    2. False
  22. The buying center is a fixed and formally identified unit within the buying organization.

    1. True
    2. False
  23. Strategic market planning is the task of selecting an overall company strategy for long-run survival and growth.

    1. True
    2. False
  24. Dissonance-reducing buying behaviour occurs when consumers are highly involved with an expensive, infrequent, or risky purchase but see a lot of difference among brands.

    1. True
    2. False
  25. Demarketing is a marketing philosophy focused upon product differentiation and positioning.

    1. True
    2. False
  26. At Air Online, "we provide online services." is a market-oriented business definition.

    1. True
    2. False
  27. When your marketing manager discussed factors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers, you knew that she was talking about the external marketing concept.

    1. True
    2. False
  28. Customer Relationship Management (CRM) is nothing more than a customer data management activity.

    1. True
    2. False
  29. Alternative evaluation is how the consumer processes information to arrive at brand choices. Consumers do not use a simple and single evaluation process in all buying situations.

    1. True
    2. False
  30. Product, price, place, and promotion make up the elements of a firm's marketing mix.

    1. True
    2. False
  31. Smart marketers look beyond the attributes of the products and services they sell. They create brand experiences for consumers.

    1. True
    2. False
  32. Most firms follow the production concept when they face overcapacity.

    1. True
    2. False
  33. The simplest definition of modern marketing is managing profitable customer relationships.

    1. True
    2. False
  34. The societal marketing concept calls on marketers to balance consumer wants and desires, company profits, and society's interest.

    1. True
    2. False
  35. The selling concept holds that consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort.

    1. True
    2. False
  36. Marketers of products, services, and ideas only practice marketing, whereas buyers do not.

    1. True
    2. False
  37. At times it becomes necessary to reduce demand for some products and services. When the government tries to reduce smoking of tobacco products, it adds more tax to the products and is practicing demarketing.

    1. True
    2. False
  38. Marketing management is interested in serving all customers in every way to remain competitive in today's markets.

    1. True
    2. False
  39. An exchange is the core concept of marketing, whereas a transaction is marketing's unit of measurement.

    1. True
    2. False
  40. The difference between human needs and wants is that needs are states of felt deprivation.

    1. True
    2. False
  41. When sellers focus on existing needs and lose sight of underlying customer wants, they suffer from marketing myopia.

    1. True
    2. False
  42. Most firms follow the production concept when they face overcapacity.

    1. True
    2. False
  43. Who is our target market and what's our value proposition are two important questions underlying marketing strategy.

    1. True
    2. False
  44. “How are you telling consumers in your target group about your product” This question belongs to which marketing concept?

    1. Product
    2. Price
    3. Place
    4. Promotion
  45. Which of the following is the marketing unit of measurement?

    1. Value
    2. Transaction
    3. Profit
    4. Satisfaction
  46. A local firm wants to adopt the marketing concept. To be consistent with this move, it should adopt which of the following philosophies?

    1. Making money is our business
    2. The customer is always right
    3. Keep prices low
    4. Focus on competitors only
  47. Nokia is about to launch a new product but uncertain about the success and failure of the product is called?

    1. Securing market information
    2. Risk taking
    3. Competition
    4. Financing
  48. In which of the following stage marketer provides quality product and services without variation in quality?

    1. Storing
    2. Selling
    3. Standardizing and grading
    4. Risk Taking
  49. Winning a new customer is usually more costly than retaining an existing customer. How much time it is costly?

    1. 5-10 times
    2. 10-15 times
    3. 15-20 times
    4. 20-25 times
  50. Demand marketing is concerned with?

    1. Increasing demand
    2. Decreasing demand
    3. Finding demand
    4. All of the given
  51. ________ is defined as achieving goals depends on knowing the needs and wants of the target markets and delivering the desired satisfaction better than competitors do?

    1. Marketing concept
    2. Production concept
    3. Marketing management
    4. Societal marketing
  52. The societal marketing concept is divided into:

    1. Society, company, government
    2. Society, company, consumers
    3. Company, consumers, competitors
    4. Society, company, competitors
  53. Similar to 4P’s of marketing, the 4C’s are:

    1. Care, choice, community, challenge
    2. Care, choice, community, collection
    3. Care, company, community, challenge
    4. Care, collaboration, command, challenge
  54. Females are now more indulged in working in offices then the earlier. This shifts in demographic represents which one of the following?

    1. Increasing diversity of population
    2. Changing family and living patterns
    3. Emergence of a new market
    4. Income and education increases
  55. To find the right product for your customers is relevant to which of the following concept?

    1. Societal marketing concept
    2. Selling concept
    3. Marketing concept
    4. Product concept
  56. All of the following are included in the Porters five forces model of competition EXCEPT:

    1. Bargaining Power of Competitors
    2. Bargaining Power of Buyers
    3. Threat of New Entrants
    4. Bargaining Power of Suppliers
  57. Large number of manufacturers and greater number of product variety increases

    1. Bargaining power of buyers
    2. Bargaining power of suppliers
    3. Rivalry among the competitors
    4. Threat of substitute
  58. What is our business? Who’s our customer? What do our customers value? What should our business be? All these simple-sounding questions define which of the following concepts?

    1. Objectives and goals
    2. Mission statement
    3. Business portfolio
    4. Operational strategies
  59. ABC Company is identifying and developing new markets for its current product. ABC Company is exploring possibilities for which of the following strategies?

    1. Product development
    2. Market penetration
    3. Diversification
    4. Market development
  60. Which of the following set refers to the order of action in marketing control process?

    1. Measure performance – evaluate performance – corrective action – set goals
    2. Corrective action – set goals - measure performance – evaluate performance
    3. Set goals - Measure performance – evaluate performance - corrective action
    4. Set goals - Measure performance – corrective action – evaluate performance
  61. Marketing plan is started from which one of the following component?

    1. Executive summary
    2. Marketing strategy
    3. Action programs
    4. Opportunity analysis
  62. Which one of the following sets represents 4 C’s of the marketing mix?

    1. Customer Solution, Cost, Convenience, Communication
    2. Customer, Cost, Convenience, Comfort
    3. Convenience, Communication, Coverage, Cost
    4. Cost, Coverage, Communication, Consultancy
  63. The marketing environment is made up of ______ forces.

    1. Three
    2. Two
    3. Four
    4. Five
  64. Consumers are spending more on products and services that will improve their lives rather than their image” reflects which aspect of the cultural environment?

    1. People's view of others
    2. People's view of themselves
    3. People's view of organizations
    4. People's view of nature
  65. Which of the following is NOT a part of the macro-environment?

    1. Demographic forces
    2. Natural forces
    3. Competitors' forces
    4. Political forces
  66. Which of the following environment consists of the factors that affect consumer purchasing power and spending patterns?

    1. Demographic environment
    2. Cultural environment
    3. Economic environment
    4. Consumer environment
  67. It is one of the major responsibility of marketing manager to have complete marketing information before defining and understanding the consumer markets. Marketing information is very important because it is used to:

    1. Satisfy company objectives
    2. Make better marketing decisions
    3. Make management’s job easier
    4. Please customers
  68. Last step of marketing research process is _________.

    1. defining the problem and research objectives
    2. developing the research plan
    3. analyzing the information
    4. presenting the findings
  69. Collection of raw facts refers to which of the following options?

    1. Information
    2. Data
    3. Results
    4. Reports
  70. The marketing research step that comes after “identifying and defining the research problem” in the marketing research process is which one of the following?

    1. Interpretation
    2. Implementation
    3. Developing the research plan
    4. Observation
  71. Which one of the following information can easily be collected through experimental research?

    1. Unknown
    2. Causal
    3. Complicated
    4. Interactive
  72. In which of the following contact method where a group of six to ten people have been gathered for interviewing to know the reasons of success or failure of any brand or product?

    1. Personal Interviewing
    2. Telephonic Interviewing
    3. Computer Interviewing
    4. Mail Questionnaires
  73. All of the Ahmad’s friends try to copy his style, his dressing and the way he speaks. He is also considered as one of the most reliable person in the group. Ahmad is regarded as a/an:

    1. Group member
    2. Opinion Leader
    3. Group Moderator
    4. All of the given
  74. The buying process starts from which one of the following stages in which the buyer recognizes a problem or need?

    1. Need recognition
    2. Information search
    3. Evaluation of alternatives
    4. Purchase decision
  75. In the process of buying routinely purchased items, buyers also plays the role of which of the following category?

    1. Deciders
    2. Gatekeepers
    3. Influencers
    4. Buyers
  76. Consumer market can be segmenting in how many ways?

    1. 1
    2. 2
    3. 3
    4. 4
  77. Bunny bread is mostly used in breakfast times in different areas of Lahore. Manufacture of Bunny bread has made this for all type of customers ranging from housewives to children and teens to old people. Bunny bread is using which of the following market coverage strategy?

    1. Differentiated
    2. Undifferentiated
    3. Concentrated
    4. None of the given
  78. When the size, purchasing power and profiles of business market segments can be determined, they are said to possess the requirement of being what?

    1. Measurable
    2. Accessible
    3. Substantial
    4. Actionable
  79. Pepsi cola is a carbonated water drink which is used to quench thirst. Here Pepsi cola denotes which type of level of product?

    1. Core product
    2. Actual product
    3. Augmented product
    4. Industrial product