50 Questions
Which of the following is an example of diversification?
Offering a new product to a new customer base
Which pricing strategy involves setting the price based on the demand curve?
Market determines the price
Which utility refers to the availability of a product/service in a location that is convenient to a potential customer?
Place utility
Which factor affects the choice of distribution channels based on the investment cost of developing and maintaining the channel?
Cost
What are the primary functions of wholesaling?
Making contact, negotiating, buying, selling, warehousing
Who are the middlemen who buy from wholesalers and manufacturers and sell directly to the ultimate consumer?
Retailers
What is the primary purpose of marketing communications?
To tell customers about the benefits and values that a company, product, or service offers
Which marketing communication tool refers to any consumer/trade program of limited duration that adds tangible value to a product or brand?
Sales promotion
What is the short-term goal of personal selling?
To make a sale
Which marketing communication tool involves sponsoring events and activities to enhance brand visibility and reputation?
Public relations
Which of the following is NOT a step in the international marketing research process?
Collecting secondary data
What is the main purpose of exploratory research in marketing?
To create hypotheses rather than test them
Which of the following is NOT a component of the marketing mix?
Profit
According to Abraham Maslow's pyramid of needs, which of the following needs is considered the most important?
Physiological needs
According to Sigmund Freud, which part of the consumer's psyche represents the need for morality and rules?
Superego
Which type of buying behavior is characterized by significant differences between brands and high involvement?
Complex buying behavior
Which of the following is NOT a factor considered in targeting a market segment?
Compatibility with the company's overall objectives
Which marketing strategy involves selling a current product in a new market?
Market development
What is the purpose of market segmentation?
To identify similarities and differences of potential customers
Which group of consumers is characterized by being change-averse and trusting the status quo?
Laggards
Which buying behavior is commonly observed in low-cost, frequently purchased items like snacks or soft drinks?
Habitual buying behavior
What is the goal of a company in transforming variety-seeking buying behavior into habitual buying behavior?
Increase customer loyalty
Which marketing management philosophy focuses on determining the needs and wants of customers and delivering better satisfaction than the competition?
Marketing concept
What is the difference between customer value and customer satisfaction?
Customer value is the extent to which a product's perceived performance matches a buyer's expectations, while customer satisfaction is the difference between the values the customer gains from owning and using a product and the cost of obtaining the product.
What does globalization refer to?
The integration of economics and societies all over the world
Which of the following is NOT a factor that affects the choice of distribution channels?
Character
What is the primary purpose of advertising in marketing communications?
To create awareness
Which pricing strategy involves starting with a low price to gain market share and then gradually increasing it?
Price as a method of gaining market share
What is the function of retailers in the distribution process?
Selling
Which marketing communication tool involves any sponsored, paid message that is communicated in a non-personal way?
Advertising
Which one of the following is a step in the international marketing research process?
Identifying the research problem
Which one of the following is NOT a type of primary data research approach?
Quantitative research
Which one of the following is a disadvantage of using secondary data in marketing research?
Credibility of data
Which marketing management philosophy focuses on targeting wealthier customers with higher-end products?
Client customization concept
What is the difference between customer value and customer satisfaction?
Customer value refers to the perceived performance of a product, while customer satisfaction refers to the extent to which a product matches a buyer's expectations.
Which marketing communication tool involves any consumer/trade program of limited duration that adds tangible value to a product or brand?
Sales promotion
Which marketing strategy is recommended during the decline stage of the product life cycle?
Advertising - Reduce to level needed to retain hard-core loyalists
What is the purpose of market segmentation?
To divide the market into subsets of consumers with common needs or characteristics
Which targeting strategy involves targeting a single segment of the global market?
Concentrated marketing
Which of the following is NOT a type of buying behavior?
High involvement buying behavior
According to Abraham Maslow's pyramid of needs, which need is considered the least important?
Self-actualization needs
Which step of the consumer decision-making process involves comparing different options?
Evaluation of alternatives
Which group of consumers is characterized by being change-averse and trusting the status quo?
Laggards
What is the primary purpose of marketing communications?
To promote products and services
Which buying behavior is commonly observed in low-cost, frequently purchased items like snacks or soft drinks?
Habitual buying behavior
Which of the following is NOT a major tool of marketing communications?
Personal selling
Which of the following is NOT a risk associated with advertising as a marketing communication tool?
Creates awareness
What is the primary function of wholesaling?
Selling
What is the primary purpose of pricing in marketing?
To cover the product's cost
What is the primary purpose of distribution channels in marketing?
To add value to the product
Study Notes
Marketing Concepts
- Diversification is an example of a company entering a new market or industry.
- The pricing strategy that involves setting the price based on the demand curve is dynamic pricing.
- Place utility refers to the availability of a product/service in a convenient location for customers.
Distribution Channels
- The investment cost of developing and maintaining a channel affects the choice of distribution channels.
- The primary functions of wholesaling are to facilitate the flow of goods from manufacturers to retailers and to provide various services such as storage and credit.
Marketing Communications
- The primary purpose of marketing communications is to inform, persuade, or remind the target audience about a product or service.
- Sales promotion refers to any consumer/trade program of limited duration that adds tangible value to a product or brand.
- The short-term goal of personal selling is to close a sale.
- Event sponsorships involve sponsoring events and activities to enhance brand visibility and reputation.
Marketing Research
- The main purpose of exploratory research is to gain a deeper understanding of a particular problem or opportunity.
- A disadvantage of using secondary data in marketing research is that it may not be relevant or up-to-date.
Consumer Behavior
- According to Abraham Maslow's pyramid of needs, physiological needs are considered the most important.
- According to Sigmund Freud, the superego represents the need for morality and rules.
- Complex buying behavior is characterized by significant differences between brands and high involvement.
Marketing Strategy
- The purpose of market segmentation is to divide a larger market into smaller groups with similar needs or characteristics.
- A company can adopt a market development strategy by selling a current product in a new market.
- The goal of a company in transforming variety-seeking buying behavior into habitual buying behavior is to create brand loyalty.
- The marketing management philosophy that focuses on determining the needs and wants of customers and delivering better satisfaction than the competition is known as customer-oriented marketing.
Globalization and Distribution
- Globalization refers to the increase in international trade and investment.
- Retailers play a crucial role in the distribution process by making products available to customers.
Advertising and Pricing
- The primary purpose of advertising is to inform, persuade, or remind the target audience about a product or service.
- Skim pricing involves starting with a high price to gain maximum profit and then gradually decreasing it.
- The primary function of retailers is to make products available to customers.
- Advertising is a major tool of marketing communications that involves any sponsored, paid message that is communicated in a non-personal way.
Test your knowledge of variety-seeking buying behavior in this quiz! Explore how consumers behave when they have limited information about different brands but are emotionally invested in their purchases. From high-end gadgets to medications, discover the factors that influence this type of buying behavior.
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