1. What does it mean for a market segment to be ‘measurable’?
A. The segment must be able to be reached through marketing channels.
B. The segment must be distinct and different from other segments.
C. The size, purchasing power, and characteristics of the segment can be measured.
D. The segment must be large enough to be profitable.
2. A company that offers different car models with varying features and price points to appeal to different customer segments (e.g., luxury, economy, sporty) is practicing:
A. Undifferentiated marketing
B. Concentrated marketing
C. Differentiated marketing
D. Niche marketing
3. Which of the following is NOT a common basis for market segmentation?
A. Geographic location
B. Company size
C. Consumer personality traits
D. Product usage rate
4. When a marketer focuses on the ‘benefits sought’ by consumers, they are primarily utilizing which segmentation approach?
A. Demographic segmentation
B. Geographic segmentation
C. Behavioral segmentation
D. Psychographic segmentation
5. According to the principles of market segmentation, what is the primary benefit of segmenting a market?
A. To reduce the overall cost of production by producing fewer product variations.
B. To allow for the development of more precisely tailored marketing strategies and messages.
C. To eliminate the need for competitive analysis by focusing solely on one segment.
D. To guarantee a higher market share than competitors in all segments simultaneously.
6. A positioning map (perceptual map) is a tool used to:
A. Calculate the cost of production for each product.
B. Visualize how consumers perceive competing brands or products based on key attributes.
C. Determine the optimal distribution channels for a product.
D. Forecast future sales based on historical data.
7. Which criterion for effective segmentation means that the segment must be large enough to be profitable to serve?
A. Measurable
B. Accessible
C. Substantial
D. Differentiable
8. What is the definition of ‘targeting’ in the context of market segmentation?
A. The process of identifying and choosing specific market segments to serve.
B. The act of creating a unique brand identity in the minds of consumers.
C. The practice of analyzing competitor strategies within a chosen segment.
D. The development of a marketing mix tailored to a broad market.
9. A company decides to target young adults aged 18-25 who are interested in sustainable products and environmentally conscious living. This is an example of segmentation based on:
A. Geographic variables
B. Psychographic variables
C. Behavioral variables
D. Demographic variables
10. The ‘accessibility’ criterion for effective segmentation implies that:
A. The segment must be large enough to be profitable.
B. The segment must be reachable and serviceable by the company.
C. The segment must be distinct from other segments.
D. The segment’s size and purchasing power must be measurable.
11. What is the main purpose of a ‘unique selling proposition’ (USP)?
A. To define the company’s mission statement.
B. To identify a benefit that makes a product stand out from competitors and is attractive to customers.
C. To outline the logistical plan for product distribution.
D. To set the overall budget for marketing campaigns.
12. What is ‘positioning’ in marketing?
A. The process of creating a unique and desirable image of a product in the minds of target consumers.
B. The act of physically placing a product on store shelves.
C. The pricing strategy used to determine the final cost of a product.
D. The selection of the most profitable market segment to target.
13. Which type of segmentation divides the market based on differences in consumer knowledge, attitudes, uses, or responses to a product?
A. Geographic segmentation
B. Demographic segmentation
C. Psychographic segmentation
D. Behavioral segmentation
14. When a company positions its product based on superior quality and features, it is using a positioning strategy focused on:
A. Price
B. Service
C. Product attributes
D. User status
15. A company decides to focus all its marketing efforts on a single, well-defined market segment. This approach is known as:
A. Undifferentiated marketing
B. Differentiated marketing
C. Concentrated marketing
D. Micromarketing
16. When a marketer aims to reach a specific segment through advertising channels or distribution networks, they are addressing which segmentation criterion?
A. Actionable
B. Accessible
C. Measurable
D. Differentiable
17. Which of the following best describes the concept of ‘market segmentation’ in marketing principles?
A. Dividing a broad consumer or business market into sub-groups of consumers based on some type of shared characteristics.
B. Creating a unique name and image for a product in the consumers’ mind, mainly through advertising.
C. The process of selling a product or service to a new market or to a new segment of an existing market.
D. Determining the most profitable price point for a product based on competitor pricing alone.
18. A company that uses an ‘undifferentiated marketing’ strategy is essentially employing:
A. Targeting multiple, distinct market segments with tailored strategies.
B. Ignoring market segmentation and offering one product to the entire market.
C. Focusing marketing efforts on a single, highly specific niche market.
D. Developing a unique product for each individual customer.
19. Which targeting strategy involves a firm targeting several market segments and designing separate offers for each?
A. Undifferentiated marketing
B. Differentiated marketing
C. Concentrated marketing
D. Micromarketing
20. Which segmentation variable focuses on observable characteristics of populations, such as age, gender, income, and education?
A. Psychographic segmentation
B. Behavioral segmentation
C. Geographic segmentation
D. Demographic segmentation
21. The ‘trust’ element in customer relationships is built upon which of the following?
A. Aggressive sales tactics and high-pressure selling.
B. Consistent delivery of promises, transparency, and reliability.
C. Offering the lowest possible prices on all products.
D. Focusing only on acquiring new customers.
22. A company that actively seeks and responds to customer feedback is practicing which marketing principle?
A. Product-centric marketing.
B. Customer-centric marketing.
C. Cost-leadership marketing.
D. Mass marketing.
23. What is the primary risk of neglecting customer feedback in a relationship marketing strategy?
A. Increased customer acquisition costs.
B. Reduced brand awareness.
C. Decreased customer satisfaction and potential churn.
D. Higher employee morale.
24. To foster ‘customer loyalty’, a company should prioritize:
A. Aggressive upselling.
B. Consistent value delivery and positive experiences.
C. Short-term promotional offers only.
D. Reducing customer interaction points.
25. What is the primary goal of ‘customer intimacy’ in a marketing relationship?
A. To understand and cater to individual customer needs and preferences.
B. To overwhelm customers with marketing messages.
C. To reduce the cost of customer service.
D. To increase the frequency of product recalls.
26. What is the main benefit of segmenting customers for relationship marketing?
A. To offer the same marketing message to all customers.
B. To tailor marketing efforts and offers to specific customer groups.
C. To reduce the variety of products offered.
D. To eliminate the need for customer service.
27. What does ‘customer churn’ refer to in the context of relationship marketing?
A. The process of acquiring new customers.
B. The rate at which customers stop doing business with a company.
C. The increase in customer spending over time.
D. The creation of new product lines.
28. Which of the following is a common challenge in implementing relationship marketing?
A. Customers always preferring mass-produced goods.
B. The high cost and complexity of managing individual customer relationships.
C. Customers actively avoiding personalized communication.
D. The ease of replicating successful relationship strategies.
29. Which of the following is a characteristic of ‘loyalty programs’?
A. They are designed to attract only first-time buyers.
B. They reward customers for repeat purchases or engagement.
C. They focus on temporary price reductions.
D. They are primarily used for product development.
30. A company that excels at ‘customer advocacy’ is one where customers:
A. Complain frequently about products.
B. Actively recommend the company’s products or services to others.
C. Only purchase during sales events.
D. Request refunds for minor issues.
31. Which strategy is LEAST aligned with the principles of customer retention?
A. Implementing a loyalty program with tiered rewards.
B. Providing personalized customer service and support.
C. Continuously increasing prices without offering added value.
D. Soliciting customer feedback and acting upon it.
32. Which of the following is an example of a ‘retention strategy’?
A. A flash sale offering a significant discount for a limited time.
B. A referral program that rewards existing customers for bringing in new ones.
C. Launching a new product with extensive advertising.
D. Conducting market research to identify potential new segments.
33. Which of the following best describes the concept of ‘relationship marketing’ in contemporary marketing principles?
A. Focusing solely on transactional exchanges to maximize short-term profits.
B. Building and maintaining long-term, mutually beneficial connections with customers.
C. Primarily engaging in mass advertising to reach the widest possible audience.
D. Concentrating on product features and benefits without considering customer loyalty.
34. Which type of marketing communication is most effective for nurturing long-term customer relationships?
A. Mass advertising on television.
B. Direct mail campaigns tailored to customer segments.
C. Social media posts with generic content.
D. Public relations announcements about company performance.
35. What is the role of ‘CRM’ (Customer Relationship Management) systems in relationship marketing?
A. To automate the production of physical goods.
B. To manage and analyze customer data and interactions to improve relationships.
C. To conduct competitive analysis.
D. To design product packaging.
36. In the context of relationship marketing, ‘customer equity’ refers to:
A. The total number of customers a company has.
B. The combined total lifetime values of all the company’s current and potential customers.
C. The amount of money spent by a company on marketing.
D. The perceived value of a company’s products by the market.
37. When a company consistently delivers products or services that meet or exceed customer expectations, it is building:
A. Brand dilution.
B. Customer satisfaction and loyalty.
C. Market saturation.
D. Product obsolescence.
38. Customer lifetime value (CLV) is a key metric in relationship marketing. What does CLV primarily represent?
A. The total revenue generated from a single customer purchase.
B. The profit a company expects to make from a customer over the entire duration of their relationship.
C. The cost of acquiring a new customer.
D. The number of times a customer interacts with a brand in a year.
39. The concept of ‘co-creation’ in relationship marketing involves:
A. The company creating products without customer input.
B. Customers actively participating in the design or development of products/services.
C. Marketing exclusively through third-party influencers.
D. Focusing on price wars to attract customers.
40. Which aspect of the marketing mix is most directly impacted by relationship marketing efforts?
A. Product.
B. Price.
C. Place.
D. Promotion and People (Customer Service).
41. Which of the following best describes the concept of ‘value’ in marketing?
A. The total cost incurred by the customer to acquire and use a product or service.
B. The perceived benefits a customer receives from a product or service minus its costs.
C. The price at which a product or service is sold in the market.
D. The amount of profit a company makes from selling a product or service.
42. In the context of customer retention, ‘churn’ refers to:
A. The process of acquiring new customers.
B. The rate at which customers stop doing business with a company.
C. The increase in customer spending over time.
D. The total number of customers a company has.
43. What is the primary goal of relationship marketing?
A. To maximize short-term sales transactions.
B. To build and maintain long-term, profitable customer relationships.
C. To acquire as many new customers as possible in a short period.
D. To reduce the cost of goods sold.
44. What is the primary purpose of a ‘complaint handling system’ in marketing?
A. To discourage customers from complaining.
B. To resolve customer issues effectively and potentially turn a negative experience into a positive one.
C. To document all customer complaints for legal purposes only.
D. To increase the cost of customer service.
45. What is the primary benefit of a company having a strong customer database?
A. It allows for easier internal communication.
B. It enables personalized marketing efforts and better customer segmentation.
C. It reduces the need for product development.
D. It guarantees higher profit margins.
46. Which of the following is a behavioral measure of customer loyalty?
A. Customer satisfaction rating.
B. Net Promoter Score (NPS).
C. Repeat purchase rate.
D. Brand perception.
47. A company that prioritizes ‘operational excellence’ in its customer strategy focuses on:
A. Building deep emotional connections with customers.
B. Delivering products and services efficiently and reliably at the lowest cost.
C. Creating unique and innovative product features.
D. Providing highly personalized customer experiences.
48. What is the main purpose of a customer relationship management (CRM) system?
A. To automate production processes.
B. To manage and analyze customer interactions and data throughout the customer lifecycle.
C. To develop new product features.
D. To conduct market research.
49. Which strategy is LEAST likely to foster customer loyalty?
A. Implementing a loyalty rewards program.
B. Providing consistently poor customer service.
C. Personalizing communication and offers.
D. Actively seeking and responding to customer feedback.
50. Which of the following is a key component of ‘customer equity’?
A. Brand equity
B. Relationship equity
C. Value equity
D. All of the above
51. A ‘customer journey map’ is a tool used to:
A. Track employee performance.
B. Visualize and understand the customer’s experience with a company across all touchpoints.
C. Analyze competitor pricing strategies.
D. Forecast future sales trends.
52. Customer satisfaction is primarily influenced by:
A. The product’s price and promotional activities.
B. The extent to which a product’s performance meets or exceeds the customer’s expectations.
C. The number of competitors in the market.
D. The company’s market share.
53. What is the primary reason companies invest in customer retention programs?
A. To increase marketing campaign budgets.
B. It is generally less expensive to retain existing customers than to acquire new ones.
C. To reduce the need for product innovation.
D. To decrease customer lifetime value.
54. A company that focuses on ‘customer intimacy’ as a business strategy aims to:
A. Offer the lowest prices in the market.
B. Develop highly customized products and services to meet specific customer needs.
C. Achieve economies of scale through mass production.
D. Create a strong brand image through extensive advertising.
55. What is the concept of ‘customer advocacy’?
A. When a company actively promotes its products to customers.
B. When satisfied customers voluntarily recommend a company’s products or services to others.
C. When customers complain about a product or service.
D. When a company offers discounts to loyal customers.
56. Customer lifetime value (CLV) is a metric that represents:
A. The average profit from a single customer transaction.
B. The total revenue a company expects from a customer throughout their entire relationship.
C. The cost of acquiring a new customer.
D. The customer’s satisfaction score.
57. Which marketing orientation is most closely associated with building long-term customer loyalty?
A. Product orientation
B. Sales orientation
C. Societal marketing orientation
D. Customer orientation
58. A company offering ‘product leadership’ as a strategic focus aims to:
A. Provide the lowest cost alternative.
B. Deliver superior quality and innovative products.
C. Maximize customer convenience.
D. Offer the widest product assortment.
59. Which of the following is a characteristic of a ‘customer-centric’ organization?
A. Focus on internal processes and efficiency above all else.
B. Prioritizing product features over customer needs.
C. Aligning all business strategies and operations around understanding and satisfying customer needs.
D. Viewing customers as a necessary evil.
60. The ‘share of customer’ refers to:
A. The percentage of a company’s total market share.
B. The percentage of a customer’s total spending in a particular category that goes to a specific company.
C. The number of customers a company serves.
D. The company’s profit margin per customer.
61. When a product is introduced to the market, it is in which stage of the product life cycle?
A. Growth
B. Maturity
C. Introduction
D. Decline
62. Product line extension involves:
A. Introducing a new brand in a new category.
B. Using an existing brand name to introduce new forms, colors, sizes, ingredients, or flavors of an existing product category.
C. Introducing a new brand name in the same product category.
D. Using an existing brand name to enter a new product category.
63. During the growth stage of the product life cycle, companies typically focus on:
A. Building selective demand
B. Maximizing market share
C. Reducing costs and harvesting the brand
D. Focusing on differentiation and brand preference
64. Brand extension is:
A. Using an existing brand name to introduce new product categories.
B. Introducing new variations of an existing product.
C. Launching a completely new brand.
D. Repositioning an existing brand.
65. Product line refers to:
A. A group of products sold under the same brand name.
B. A group of related products offered by the same company.
C. The total number of product items a company offers.
D. A single product with different variations.
66. A brand is best understood as:
A. A product’s name, term, sign, symbol, or design.
B. A legal protection for a product’s unique features.
C. The perceived value and reputation of a product or company.
D. A company’s logo and slogan.
67. In the maturity stage of the product life cycle, sales typically:
A. Increase rapidly
B. Begin to decline
C. Peak and then level off or decline slightly
D. Are at their lowest point
68. When a company decides to reduce the number of product items in its product line, this is called a product line:
A. Extension
B. Contraction
C. Filling
D. Trading down
69. According to the marketing concept, which of the following is the best definition of a product?
A. A tangible item that can be offered to a market for acquisition, use, or consumption.
B. Anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.
C. A bundle of benefits that a customer receives in exchange for money.
D. A physical good that has been manufactured and is ready for sale.
70. Which of the following is a benefit of strong brand equity?
A. Reduced customer loyalty
B. Lower marketing costs
C. Increased price sensitivity
D. Difficulty in launching new products
71. Which product level focuses on the tangible good or service that the marketer designs and produces?
A. Augmented Product
B. Actual Product
C. Core Benefit
D. Potential Product
72. A company decides to add a new product to an existing product line, targeting a new market segment. This is known as a product line:
A. Extension
B. Contraction
C. Filling
D. Trading up
73. The broadest level of a product, representing all the possible augmentations and transformations a product might undergo, is called the:
A. Actual Product
B. Core Benefit
C. Augmented Product
D. Potential Product
74. Which of the following is a pricing strategy that can be used for new products?
A. Skimming Pricing
B. Penetration Pricing
C. Both A and B
D. None of the above
75. The stage in new product development where the product and marketing program are tested in realistic market settings is called:
A. Idea Screening
B. Concept Development and Testing
C. Business Analysis
D. Market Testing
76. The strategy of reducing expenditures and ‘milking’ the brand during the decline stage of the product life cycle is known as:
A. Product line extension
B. Market development
C. Harvesting
D. Product diversification
77. Which of the following is an example of a service product?
A. A smartphone
B. A concert ticket
C. A consulting engagement
D. A streaming subscription
78. Product mix (or product portfolio) refers to:
A. The number of product lines a company has.
B. The total set of all products and items a particular seller offers for sale.
C. The depth of a single product line.
D. The variations of a single product.
79. Which of the following is NOT a characteristic of services?
A. Intangibility
B. Variability
C. Perishability
D. Tangibility
80. Which of the following is a strategy for developing new products?
A. Product Line Contraction
B. Brand Repositioning
C. Market Penetration
D. New Product Development
81. When a company decides to target ‘millennials’ with specific digital marketing campaigns, it is engaging in which marketing process?
A. Market aggregation.
B. Market segmentation.
C. Market targeting.
D. Market positioning.
82. Which of the following is a key benefit of effective market segmentation for a company?
A. Increased production costs due to specialized marketing.
B. Better understanding of customer needs and preferences.
C. Reduced ability to differentiate products from competitors.
D. Difficulty in allocating marketing resources efficiently.
83. Geographic segmentation is based on location. Which of the following marketing strategies exemplifies geographic segmentation?
A. Tailoring clothing sizes based on regional body types.
B. Developing a loyalty program for frequent customers.
C. Creating advertising campaigns that highlight product durability.
D. Offering discounts on bulk purchases.
84. Which criterion for effective segmentation means that the company can design effective marketing programs for the segment?
A. Measurable.
B. Accessible.
C. Substantial.
D. Actionable.
85. Which of the following is a common strategy for differentiating a product or service?
A. Selling at the lowest possible price.
B. Focusing solely on product features.
C. Creating unique branding, customer service, or product design.
D. Ignoring competitor offerings.
86. For a market segment to be effective, it must be substantial. What does ‘substantial’ mean in this context?
A. The segment must be easy to reach with marketing efforts.
B. The segment must be large enough or profitable enough to be worth serving.
C. The segment’s needs must be unique and different from other segments.
D. The segment must be clearly identifiable and measurable.
87. Behavioral segmentation categorizes consumers based on their knowledge of, attitude toward, use of, or response to a product. Which is an example of behavioral segmentation?
A. Offering discounts to first-time buyers.
B. Targeting frequent travelers with airline loyalty programs.
C. Designing product packaging in different colors.
D. Creating a website with multiple language options.
88. When a brand positions itself as offering the ‘best value for money’, it is typically positioning based on:
A. Price.
B. Quality.
C. Benefit.
D. User.
89. What is the concept of ‘competitive advantage’ in the context of positioning?
A. The ability to produce goods at a lower cost than competitors.
B. A unique attribute or benefit that consumers value and that competitors cannot easily replicate.
C. The largest market share in the industry.
D. A strong distribution network across multiple countries.
90. Which of the following is a critical factor in determining the success of a market segmentation strategy?
A. The number of marketing departments in the company.
B. The ability to accurately identify and profile the chosen segments.
C. The price of raw materials used in production.
D. The level of employee satisfaction.
91. Demographic segmentation divides a market based on variables such as age, gender, income, and education. Which of the following is an example of demographic segmentation?
A. Marketing a luxury car to individuals who value status and prestige.
B. Offering different product sizes based on consumer usage rates.
C. Advertising a children’s toy to households with young families.
D. Promoting a product to consumers who frequently purchase online.
92. A ‘positioning map’ or ‘perceptual map’ is a tool used by marketers to:
A. Calculate production costs.
B. Visualize how consumers perceive competing brands on key attributes.
C. Forecast future market trends.
D. Manage customer relationship databases.
93. Psychographic segmentation focuses on lifestyle, personality, and values. An example of psychographic segmentation would be:
A. Selling winter coats in colder climates.
B. Marketing a health-conscious food product to consumers who prioritize wellness and organic living.
C. Offering different payment options for online purchases.
D. Creating a brand based on a celebrity endorsement.
94. What is the term for the process of designing the company’s offering and image to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers?
A. Market segmentation.
B. Market targeting.
C. Market differentiation.
D. Market positioning.
95. A company that markets to ‘early adopters’ of technology is using which type of segmentation?
A. Demographic segmentation.
B. Geographic segmentation.
C. Behavioral segmentation.
D. Psychographic segmentation.
96. In the context of marketing, which of the following best describes the core idea behind ‘market segmentation’?
A. Dividing a broad consumer market into smaller groups of consumers with shared characteristics.
B. Creating a unique brand image for each product in the portfolio.
C. Developing a single marketing strategy for the entire market.
D. Focusing marketing efforts on the most profitable customer segment only.
97. A company advertises its new smartphone as ‘the most durable on the market’ and backs this claim with rigorous testing. This is an example of positioning based on:
A. User.
B. Product attribute.
C. Benefit.
D. Competitor.
98. When developing a positioning strategy, a company should ensure that its chosen positioning is:
A. Only focused on price.
B. Difficult for competitors to imitate.
C. Completely unrelated to customer needs.
D. Based on features that are not important to consumers.
99. What is the primary goal of ‘Market Positioning’ in marketing?
A. To reduce the number of product offerings.
B. To create a distinct image and identity for a product in the minds of target consumers.
C. To lower the price of products compared to competitors.
D. To increase production efficiency through standardization.
100. Which of the following is NOT a common basis for segmenting business markets?
A. Demographics (e.g., industry, company size).
B. Operating variables (e.g., technology, user status).
C. Purchasing approaches (e.g., purchasing function organization, power structure).
D. Personal interests and hobbies.
