5.A marketer posts a link encouraging visits to the company’s e-commerce website to purchase its product. Which element of the marketing mix does the link represent?
- Place
- Price
- Promotion
- Product
Explanation:
The marketing mix consists of the 4 Ps: Product, Price, Place, and Promotion. Posting a link to encourage visits to a website for purchasing a product is a promotional activity. Promotion involves communication strategies to inform, persuade, or remind customers about a product or service, often through advertising, social media, or other channels. Here, the link serves as a promotional tool to drive traffic and sales.
10.Which uncontrollable element impacts a corporation’s marketing decisions by taking into account the activity of other companies and their ability to create substitute products?
- Competitive
- Socio-cultural
- Economic
- Political-legal
Explanation:
The question refers to an uncontrollable element affecting marketing decisions, specifically the activity of other companies and their ability to create substitute products. This points to the competitive environment, which includes competitors’ actions, such as developing substitutes that can affect a company’s market position. The competitive element is part of the external environment in marketing (often analyzed in a PESTLE framework), which a company cannot control but must respond to.
11.A manager in a restaurant serves a 40-year-old a house drink special for $5 but charges a 21-year-old adult $9 for the same drink. What pricing tactic is being used by this manager?
- Bait and switch
- Predatory pricing
- Price discrimination
- Price fixing
Explanation:
Price discrimination occurs when a business charges different prices to different customers for the same product or service based on their willingness to pay or other factors, such as age. In this case, the manager charges a 40-year-old $5 and a 21-year-old $9 for the same drink, which is a clear example of price discrimination. This tactic is often used to maximize revenue by segmenting customers, though it can raise ethical or legal concerns depending on the context and jurisdiction.
12.The top-ranked healthy granola bar company clearly marks ingredients on its packaging to ensure that all allergens are identified. Which ethical marketing practice is the company using?
- Promoting sustainability
- Targeting the appropriate market
- Engaging with the market
- Disclosing product risks
Explanation:
Ethical marketing involves transparency and responsibility toward consumers. By clearly marking ingredients to identify allergens, the company is ensuring that consumers are aware of potential risks (e.g., allergic reactions) associated with the product. This aligns with the ethical practice of disclosing product risks, as it prioritizes consumer safety and informed decision-making.
13.What is an ethical marketing practice related to distribution?
- Ensuring fair labor conditions
- Pricing lower than competitors
- Advertising commitment to quality
- Providing improved product design
Explanation:
Distribution in the marketing mix (often referred to as "Place") involves the processes of getting the product from the producer to the consumer, including supply chain management. An ethical marketing practice related to distribution would focus on the fairness and sustainability of these processes. Ensuring fair labor conditions in the supply chain (e.g., for workers involved in transportation, warehousing, or production) is an ethical practice, as it addresses social responsibility and fair treatment of workers, which is directly tied to distribution activities.
14.A company decides to use 100% recycled materials for its packaging to appeal to its eco-friendly customer base. Which element of the marketing mix is represented by this decision?
- Promotion
- Place
- Pricing
- Product
Explanation:
The marketing mix includes Product, Price, Place, and Promotion. The decision to use 100% recycled materials for packaging relates to the product itself, as packaging is a component of the product offering. This change enhances the product’s appeal to eco-friendly customers by aligning with their values, making it a product-related decision. It’s not about how the product is promoted, distributed, or priced, but about the product’s features.
15.A programmer develops new software that is more effective at analyzing the stock market than any other software on the market. The programmer plans to sell this software at a higher price until software from the competition catches up in quality. Which pricing strategy is used by the programmer?
- Bundle pricing
- Price skimming
- Leader pricing
- Penetration pricing
Explanation:
Price skimming is a strategy where a company sets a high initial price for a new, innovative product to maximize profits from early adopters who are willing to pay a premium. The price is then lowered over time as competitors catch up or the market becomes saturated. In this case, the programmer is selling the software at a higher price initially due to its superior quality, planning to adjust the price later when competitors improve, which matches the price skimming strategy.
16.A company identifies demographic segmentation as particularly important to understanding market segments. Which variable could the company consider in this effort?
- Lifestyle
- Gender
- Region
- Usage Rate
Explanation:
Demographic segmentation involves dividing a market based on demographic variables such as age, gender, income, education, or family size. Among the options, gender is a demographic variable, while lifestyle (psychographic), region (geographic), and usage rate (behavioral) belong to other types of segmentation. Since the question specifies demographic segmentation, gender is the correct choice.
17.What does the product component of marketing mix cover?
- Distribution, pricing, and promotion
- Goods, services, or ideas
- Needs and wants of the customer
- Brand name, packaging, and warranty
Explanation:
The product component of the marketing mix refers to what a company offers to meet customer needs, which can be tangible goods, intangible services, or even ideas (e.g., a campaign promoting a cause).
17.What does the product component of marketing mix cover?
- Distribution, pricing, and promotion
- Goods, services, or ideas
- Needs and wants of the customer
- Brand name, packaging, and warranty
Explanation:
The product component of the marketing mix (often referred to as the 4 Ps: Product, Price, Place, Promotion) focuses on the tangible and intangible aspects of the product itself. This includes the brand name, packaging, and warranty, which are directly related to the product’s features and presentation.
18.An airline company launched their ‘Transparency’ campaign through online and billboard advertisements. Which promotional approach did the airline company use?
- Public relations
- Omni channel communication
- Sales promotion
- Personal selling
Explanation:
A Transparency campaign, especially one using online and billboard advertisements, is typically a public relations (PR) effort. PR focuses on managing the company’s image and building trust with the public, often through broad communication channels like advertisements.
19.Which concept refers to a product?
- Business-to-business (B2B)
- Goods, services, and ideas
- Property, plant, and equipment
- Business-to-consumer (B2C)
Explanation:
In marketing, a product is defined as anything that can be offered to a market to satisfy a need or want, which includes goods (tangible items), services (intangible offerings), and ideas (concepts or causes). B2B and B2C refer to types of markets, not products, and property, plant, and equipment are accounting terms for assets, not marketing products.
20.A marketing manager wants to increase revenue from existing products in the company’s most profitable markets. The manager begins by evaluating the opportunities for more retail partnerships. Which component of marketing planning is the manager using?
- Situational analysis
- Mission statement
- Defining objectives
- Monitoring and control
Explanation:
Evaluating opportunities for retail partnerships involves assessing the external environment, market conditions, and potential opportunities, which is part of a situational analysis. This step typically comes early in the marketing planning process to understand the current state of the market.
21.A marketing manager is monitoring the results of the tactical implementation of the company’s marketing plan. What external factors will be examined in order to anticipate tactical adjustments?
- Firm-level strengths
- Competitor reactions
- Organizational capabilities
- Firm-level weaknesses
Explanation:
When monitoring the implementation of a marketing plan, external factors are those outside the company’s control, such as market trends, customer behavior, or competitor actions. Competitor reactions are an external factor that can impact the success of the plan and may require tactical adjustments. Firm-level strengths, organizational capabilities, and firm-level weaknesses are internal factors, not external.
22.What is required for a marketing plan objective to be clear, quantifiable, and timely?
- SWOT
- BCG Matrix
- Porter’s Five Forces model
- SMART
Explanation:
SMART is a framework for setting objectives that are Specific, Measurable, Achievable, Relevant, and Time-bound—ensuring they are clear, quantifiable, and timely. SWOT is a situational analysis tool, the BCG Matrix is for portfolio analysis, and Porter’s Five Forces model analyzes industry competitiveness—none of which directly address the criteria for setting objectives.
23.The marketing director for a company decides to use glamour magazines to advertise its high-priced, high-end perfume. Which step in the market planning process is the marketing director conducting?
- Monitoring progress of obtaining goals
- Implementing strategy and tactics
- Developing marketing objectives
- Conducting a situational analysis
Explanation:
Deciding to use glamour magazines for advertising is an actionable step, which falls under implementing strategy and tactics in the marketing planning process. This step involves executing the plan through specific actions like advertising. Monitoring progress happens after implementation, developing objectives sets goals, and a situational analysis is an earlier step to assess the market environment.
24.Which of the following is a likely consequence of new competitor entering a market with established players?
- There will be less competition between current rivals.
- The bargaining power of buyers will decline.
- Sales and profit potential for the industry as a whole will rise.
- Established players will invest more to maintain their market share.
Explanation:
When a new competitor enters a market, established players often face increased competition, prompting them to invest more in marketing, innovation, or pricing strategies to protect their market share. The other options are less likely: new competitors typically increase competition (not decrease it), bargaining power of buyers may increase due to more options, and industry-wide sales and profit potential may not necessarily rise with more competition.
25.What is a key benefit of SWOT analysis?
- Enhancing stakeholder perceptions
- Improving stock price
- Increasing market share
- Encouraging realistic planning
Explanation:
A SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) helps a company assess its internal capabilities and external environment, leading to more realistic and grounded planning. It doesn’t directly enhance stakeholder perceptions, improve stock price, or increase market share—those may be outcomes of actions taken after the analysis, but they aren’t the primary benefit.
26.A marketing manager wants to focus the marketing department’s efforts to achieve the best possible result. Which business component should the marketing manager create to accomplish this goal?
- Objectives
- Capabilities
- Market share
- Situational analysis
Explanation:
To focus the marketing department’s efforts and achieve the best results, the manager should create clear objectives. Objectives provide direction and measurable goals for the team to work toward. Capabilities refer to the company’s resources and skills, market share is an outcome, and a situational analysis is a tool for understanding the environment—not a component to create for focusing efforts.
27.A marketing manager developed a marketing plan which should enable the company to focus its efforts properly and give the company a unified goal. What is the unified goal being created for the company?
- Common vision
- Organizational capabilities
- Situational analysis
- Market share
Explanation:
A marketing plan’s primary purpose is to outline strategies to achieve business goals, often focusing on increasing the company’s market share. Market share represents the company’s portion of the total market, and a unified goal in this context would typically be to grow that share through targeted marketing efforts.
28.Which is an example of a marketing strategy?
- Increase retail category sales
- Host an in-store promotional event
- Post new social media content
- Sign a contract with a new supplier
Explanation:
A marketing strategy is a broad plan to achieve marketing goals, often involving specific actions to reach customers. Hosting an in-store promotional event is a strategic action that directly engages customers to drive sales or brand awareness.
29.Which is an example of a marketing tactic?
- Increasing sales by 25%
- Creating a TV advertisement
- Growing retail category profits
- Decreasing operating expenses by 8%
Explanation:
A marketing tactic is a specific action taken to execute a marketing strategy. Creating a TV advertisement is a concrete, actionable step to promote a product or brand.
30.Which type of plan identifies the overall goals for a company?
- Distribution
- Strategic
- Promotion
- Tactical
Explanation:
A strategic plan defines the overall goals and direction of a company, including long-term objectives like market positioning or growth targets. It’s a high-level plan that guides all other plans. Distribution, promotion, and tactical plans are more specific and focus on particular aspects of execution, not the overarching goals.
31.A marketing department convenes quarterly team meetings to review the effectiveness of ad campaigns. Which part of the marketing planning process is the team conducting?
- Executing strategy and tactics
- Monitoring and controlling outcomes
- Defining marketing objectives
- Completing a situational analysis
Explanation:
Reviewing the effectiveness of ad campaigns involves assessing performance against goals, which is part of the monitoring and controlling phase of the marketing planning process. This phase ensures that the marketing efforts are on track and adjustments can be made if needed. The other options refer to earlier stages (defining objectives, situational analysis) or the execution phase, which happens before monitoring.
32.Which marketing research includes the health of the economy, market trends, technology, and its influence?
- Corporate research
- Environmental factors
- Product research
- Customer attitudes
Explanation:
Environmental factors in marketing research refer to external influences like the economy, market trends, technology, and their impact on the business. This type of research analyzes the broader environment in which the company operates. The other options focus on internal aspects (corporate research), specific products (product research), or customer behavior (customer attitudes), which don’t encompass the full scope described.
33.Which term refers to increased likelihood that a person will recall information in alignment with their attitudes and beliefs?
- Paying attention selectively
- Selective distortion
- Having a selective attitude
- Retention based on selection
Explanation:
Selective distortion is a concept in consumer behavior where individuals interpret information in a way that aligns with their existing attitudes and beliefs, increasing the likelihood of recalling it in that context. Paying attention selectively refers to selective attention (focusing on certain stimuli), while the other options are not standard marketing terms.
34.What type of marketing data is classified as primary research?
- Including a company’s own internal data
- Surveying customers to investigate new product lines
- Using source information that has been previously collected
- Investigating any existing relevant information
Explanation:
Primary research involves collecting new data directly from the source, such as through surveys, interviews, or observations. Surveying customers to investigate new product lines is an example of gathering fresh data.
35.Which characteristic is associated with secondary research?
- Using source information that has been previously collected
- Surveying customers to investigate new product lines
- Involving data collection tailored to a specific challenge
- Interviewing customers about product perception
Explanation:
Secondary research involves analyzing data that has already been collected by someone else, such as reports, studies, or existing records. The other options— surveying customers, involving data collection tailored to a specific challenge, and interviewing customers —describe primary research, where new data is gathered directly.
36.A consultant has been hired to increase the market share of a firm’s t-shirt business. The business is located in a single state and does not plan to expand beyond that state. What is a risk of pursuing the growth strategy associated with this goal?
- Losing existing customers
- Reaching market saturation
- Increasing competition
- Acquiring new skills
Explanation:
Since the t-shirt business is limited to a single state and does not plan to expand, a key risk of pursuing growth in market share is reaching market saturation—where most potential customers in that state are already served, leaving little room for further growth. Losing existing customers or increasing competition could be risks in any growth strategy, but they’re not specific to the geographic limitation. Acquiring new skills is more of a challenge or requirement, not a risk.
38.A manager works for an RV manufacturer. Given changes in market trends, the manager wants to determine whether existing RV customers would want to expend the use of their RVs as food trucks and whether they would be willing to purchase a special food truck add-on package. The manager plans to create designs for the add-on package and test the designs with current RV owners who have identified an interest. Which growth strategy is being used by this company?
- Market penetration
- Market development
- Product development
- Diversification
Explanation:
Product development involves creating new products or modifying existing ones to sell to the current market. Here, the RV manufacturer is developing a new food truck add-on package (a new product) for their existing RV customers (current market). This aligns with a product development strategy, as they are not entering a new market (market development) or diversifying into a completely different industry (diversification), nor are they focusing on increasing sales of existing products in the current market (market penetration).
39.Which factor affects how companies develop strong relationships that lead to profit gains and high customer lifetime value?
- Price skimming
- Customer groups
- Marketing activities
- Market saturation
Explanation:
Strong relationships that lead to profit gains and high customer lifetime value are typically built through effective marketing activities. These include personalized communication, customer engagement, loyalty programs, and consistent branding, which foster trust and long-term relationships.
40.What is a key factor to achieve customer satisfaction?
- Customer expectations
- Customer empowerment
- Customer identification
- Reliable customer measures
Explanation:
Customer satisfaction is primarily achieved by meeting or exceeding customer expectations. If a company understands and delivers on what customers expect in terms of product quality, service, and experience, satisfaction is likely to follow.
41.In organization A, details on any contacts and touchpoints with leads, prospects, and purchasers are stored in the computer system to improve the services the company provides. The information is also used for targeted marketing and sales purposes. Which type of information is this organization using?
- Shareholder research
- Industry intelligence
- Customer data
- Government statistics
Explanation:
The organization is storing details about contacts, touchpoints, leads, prospects, and purchasers, which directly relates to customer interactions and behaviors. This is classified as customer data, often used in customer relationship management (CRM) systems for targeted marketing and sales.
42.In Customer Relationship Management, what differentiates leads from prospects?
- A lead is a past customer whereas, a prospect is a potential customer.
- A lead is the information about a potential customer whereas, a prospect is a lost customer.
- A lead is the first customer whereas, a prospect follows.
- A lead is the information about the potential customer whereas, a prospect is a qualified and interested potential customer.
Explanation:
In CRM, a lead is typically raw information about a potential customer (e.g., a name and contact details), often gathered through marketing efforts. A prospect is a lead that has been qualified—meaning they’ve shown interest and meet certain criteria (e.g., budget, need) to be a potential buyer.
43.Which strategy always involves a product priced below cost?
- Bundling
- Loss leader
- Penetration pricing
- Prestige pricing
Explanation:
A loss leader strategy involves pricing a product below cost to attract customers, with the expectation that they will purchase other profitable items. This is common in retail (e.g., a store selling a product at a loss to draw in shoppers).
44.A marketing manager wants to forecast what current customers might purchase in the future. Which variable should the marketing manager use?
- Lifestyle
- Geography
- Past purchases
- Objectives
Explanation:
To forecast future purchases, the most reliable variable is past purchases, as they provide concrete data on customer behavior and preferences. Historical purchase data can reveal patterns, such as frequently bought items or seasonal trends, which are strong predictors of future behavior.
45.Under which circumstance is target marketing most effective?
- When marketing department personnel work in other departments
- When top management realizes that it has unlimited resources
- When companies try to be all things to all customers
- When the marketing mix is relevant to the potential customer
Explanation:
Target marketing is most effective when the marketing mix (product, price, place, promotion) is tailored to the specific needs, preferences, and behaviors of the target audience. This ensures that the marketing efforts resonate with potential customers, increasing the likelihood of conversion.
46.A marketing manager wants to determine the effectiveness of the value proposition on the customer in the target market. Which factor will the marketing manager use to determine this effectiveness?
- The customer’s tendency to assure that the product benefits are universal and not specific to that customer
- The customer’s need for additional product research
- The customer’s willingness to judge the product’s economic value the same as competitor’s products
- The customer’s trust in the product’s benefits and value
Explanation:
The effectiveness of a value proposition hinges on whether the customer trusts that the product delivers the promised benefits and value. If customers believe in the value proposition, they are more likely to engage with the product.
47.A cold weather clothing manufacturer markets its coats in northern locations where the average winter temperatures are some of the lowest in the United States. What type of segmentation is the clothing manufacturer using?
- Lifestyle
- Psychographic
- Geographic
- Demographic
Explanation:
Segmentation involves dividing a market into distinct groups based on certain criteria. Geographic segmentation divides the market based on location, such as regions, climates, or population density. In this case, the clothing manufacturer is targeting northern locations with low winter temperatures, which is a clear example of geographic segmentation, as the focus is on the climate and location of the market.
48.Which marketing approach is more prevalent in B2B transactions than in B2C?
- Mass marketing
- Personal selling
- Company websites
- Social media
Explanation:
In B2B (business-to-business) transactions, personal selling is more prevalent because these transactions often involve complex products, higher costs, and longer decision-making processes. Personal selling allows for tailored communication, relationship building, and addressing specific business needs, which is less common in B2C (business-to-consumer) marketing, where mass marketing, social media, or company websites are more frequently used to reach a broader audience.
49.A fast food restaurant owner put an advertisement of the weekly specials in the local newspaper. A diverse population reads the paper in the community where the owner’s restaurant is located. Which targeting strategy is being used by the fast food restaurant?
- Differentiated
- Micro-marketing
- Undifferentiated
- Concentrated
Explanation:
The fast food restaurant is using an undifferentiated targeting strategy by placing an advertisement in a local newspaper that reaches a diverse population. This approach does not tailor the message to specific segments but instead targets the entire market with a single offer (weekly specials), assuming broad appeal. Differentiated and concentrated strategies focus on specific segments, while micro-marketing targets very niche groups, which isn’t the case here.
50.Before attending a rare coin convention, buyers and sellers had to sign up for the convention on the convention’s website and give the convention organizers their contact information. The organizers of the convention will use this contact information to market rare coins and other rare coin conventions to the buyers and sellers at a later date. What type of targeting strategy is being used by these convention organizers?
- Micro-marketing
- Differentiated
- Undifferentiated
- Concentrated
Explanation:
The convention organizers are using micro-marketing by collecting contact information from a specific group (buyers and sellers of rare coins) and targeting them directly with tailored marketing for rare coins and related conventions. Micro-marketing focuses on highly specific, niche audiences, unlike differentiated (multiple segments), undifferentiated (mass market), or concentrated (single segment) strategies.
51.Which component should be included in a positioning statement?
- Timeline for execution
- Quantitative objectives
- Marketing mix
- Target market
Explanation:
A positioning statement defines how a product or brand is perceived in the minds of its target audience relative to competitors. It must include the target market (who the product is for), the product’s unique value proposition, and the reason to believe in that proposition. Timeline, quantitative objectives, and marketing mix are part of broader marketing plans, not the positioning statement itself.
52.To advance a product, a marketing manager seeks to create a picture of how different competitors are placed in the market based on key criteria that strongly influence customer decisions among the target market. The manager identifies two key criteria that should outperform the competition. Which technique is being used by the manager?
- Creative brief
- Positioning map
- Environmental analysis
- Marketing mix
Explanation:
The manager is using a positioning map, a visual tool that plots competitors in the market based on key criteria (e.g., price, quality) that influence customer decisions. This helps identify gaps and opportunities to position the product effectively against competitors. A creative brief guides advertising, environmental analysis assesses external factors, and the marketing mix involves the 4Ps (product, price, place, promotion), none of which fit this scenario.
53.A hair shampoo communicates its use as a two products in one, a shampoo and a conditioner. The message is that consumer will save both time and money by using the one product. Which positioning strategy is being used by this company?
- Attributes
- Application
- Quality
- Competition
Explanation:
The shampoo company is using an attributes-based positioning strategy by highlighting specific features of the product (two-in-one shampoo and conditioner) that provide benefits (saving time and money). This focuses on the product’s characteristics, not its application (how it’s used), quality (performance level), or competition (positioning against rivals).
54.A fitness center offers a 3-month discounted rate for customers who contact them to cancel their membership. What aspect of customer relationship is the fitness center catering to?
- Customer retention
- Product development
- Promotion
- Sales
Explanation:
By offering a discounted rate to customers who are about to cancel, the fitness center is focusing on customer retention, aiming to keep existing customers rather than losing them. This is a relationship management strategy, not product development (creating new offerings), promotion (advertising), or sales (closing transactions).
55.Which example involves market segmentation?
- Creating a single advertisement for all products
- Launching a product based on regional preferences and buying habits
- Launching the product using mass marketing
- Branding the product in a form that aligns with all customer needs
Explanation:
Market segmentation involves dividing a market into distinct groups with similar needs or characteristics. Launching a product based on regional preferences and buying habits reflects segmentation, as it tailors the product to specific regional segments. The other options involve mass marketing or broad branding, which do not focus on segmenting the market.
56.Which example reflects an internal source for decision-making?
- Seeing a product demonstration to make a purchase decision
- Relying on a friend’s experience of a product to make the decision
- Using personal experience of a product to make a purchase decision
- Relying on an online product reviews to make a purchase decision
Explanation:
An internal source for decision-making refers to information a consumer already possesses, such as personal experience or memory. Using personal experience to decide reflects an internal source, while the other options (product demonstration, friend’s experience, online reviews) are external sources of information.
57.A marketer decides to use a community spokesperson in an advertisement. What kind of influence on consumer behavior does this represent?
- Price range
- Media selection
- Reference groups
- Product design
Explanation:
Using a community spokesperson in an advertisement leverages the influence of reference groups, which are social groups that individuals look to for guidance on behavior, values, or purchasing decisions. A community spokesperson can create a sense of trust and relatability, influencing consumer behavior through social influence, not through price, media, or product design.
59.Which type of purchase tends to have higher customer involvement?
- Repetitive
- Routine
- Significant
- Straightforward
Explanation:
Significant purchases, such as buying a car or a house, typically involve higher customer involvement because they are expensive, carry higher risk, and require more research and decision-making effort. In contrast, repetitive, routine, or straightforward purchases (like buying groceries) involve lower involvement due to their habitual or low-risk nature.
60.Which step of the complex decision-making process is involved after evaluation?
- Purchase decision
- Buy
- Need recognition
- Search
Explanation:
The complex decision-making process typically follows these steps: need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. After evaluating alternatives, the next step is the purchase decision, where the consumer decides to buy the chosen product. "Buy" is not a formal step, and the other options occur earlier in the process.
61.Which consumer behavioral factor uses the opinions of others to influence the decision-making process?
- Education
- Social
- Individual
- Psychological
Explanation:
Social factors in consumer behavior include the influence of family, friends, peers, and reference groups, which often shape decisions through opinions and recommendations. The opinions of others are a key aspect of social influence, not education, individual, or psychological factors, which focus more on personal knowledge, traits, or mental processes.
64.A hotel company aims to establish a customer-driven marketing strategy to attract more customers during this holiday season. What is the first step the hotel should take?
- Segmentation
- Targeting
- Mass marketing
- Positioning
Explanation:
The first step in a customer-driven marketing strategy is segmentation, which involves dividing the market into distinct groups of customers with similar needs or characteristics (e.g., families, business travelers). This allows the hotel to understand its audience before targeting specific segments, positioning its offerings, or using mass marketing, which is less customer-focused.
65.A customer is making a purchase decision between several prepackaged meals by looking at the nutrition information labeling to determine which has the least amount of sodium per serving. What type of problem-solving is the customer using?
- Limited
- Extended
- Impulse
- Routine
Explanation:
The customer is engaging in limited problem-solving by comparing prepackaged meals based on sodium content, which involves some evaluation but not extensive research. Extended problem-solving would involve more in-depth research (e.g., for a high-risk purchase), while routine problem-solving is for habitual purchases, and impulse buying involves little to no evaluation.
66.A customer purchases fair trade branded chocolate because of the fair trade story on the packaging. What type of decision-making is being used by this customer?
- Rights approach
- Ethical consumerism
- Market orientation
- Fairness principle
Explanation:
The customer’s decision to buy fair trade chocolate due to the story on the packaging reflects ethical consumerism, where purchasing decisions are influenced by ethical considerations like fair labor practices or sustainability. The rights approach and fairness principle are ethical frameworks, not decision-making types, and market orientation is a business strategy, not a consumer behavior.
68.The salesperson develops a proposal to outline how the company’s product meets the customer’s needs. Which step of the selling process is the salesperson using?
- Presenting the product
- Approaching the product
- Following up
- Closing the sale
Explanation:
Developing a proposal to show how the product meets the customer’s needs is part of presenting the product, a step in the selling process where the salesperson demonstrates the product’s value and benefits. Approaching involves initial contact, following up occurs after the sale, and closing the sale is the final step to secure the purchase.
69.Which step of the selling process is used to maintain a strong relationship between the buyer and seller?
- Handling objections
- Following up
- Approaching customers
- Prospecting and qualifying
Explanation:
Following up is the step in the selling process where the salesperson maintains contact with the buyer after the sale to ensure satisfaction, address concerns, and build a long-term relationship. Handling objections occurs during the sale, approaching is the initial contact, and prospecting/qualifying is about finding potential customers.
70.During a presentation, the salesperson asked the potential customer what color and size would be preferred. Which personal selling technique is the salesperson using with this customer?
- Handling objections
- Prospecting customers
- Approaching customers
- Trial closing
Explanation:
The salesperson is engaging directly with the customer by asking about their preferences (color and size), which is a key part of the approaching customers stage in personal selling. This stage involves initiating contact and understanding the customer’s needs to tailor the sales pitch, rather than handling objections (addressing concerns), prospecting (finding leads), or trial closing (testing the customer’s readiness to buy).
71.Which factor makes personal selling unique from other selling techniques?
- Face-to-face interaction
- Satisfaction
- Mass awareness
- Remuneration
Explanation:
Personal selling is distinct because it involves direct, face-to-face interaction between the salesperson and the customer. This allows for personalized communication, immediate feedback, and relationship building, which sets it apart from other techniques like mass marketing (mass awareness) or indirect methods that don’t involve direct contact.
72.An employee union wants $30 pay for each overtime hour worked. However, management argues for $20 an hour. They settle at $25 an hour for each overtime hour worked. Which conflict handling style was used in the given scenario?
- Competition
- Avoidance
- Compromise
- Collaboration
Explanation:
Both parties (the union and management) gave up part of their initial demands ($30 and $20) to meet in the middle at $25. This is a classic example of a compromise, where each side makes concessions to reach a mutually acceptable solution.
73.Which of the following ethical issues can arise for management if employees are not able to meet their set targets to qualify for a bonus?
- The employees will request deductions in the target.
- The employees will face deductions in their paychecks.
- The employees will feel less motivated to work.
- The employees can misrepresent their work to meet targets.
Explanation:
If employees consistently fail to meet targets for a bonus, a key ethical issue for management is the potential demotivation of the workforce. Unrealistic targets can lead to frustration, reduced morale, and lower productivity, which is an ethical concern as it impacts employee well-being.
74.Managers from different departments of a company compete for larger allocations during an annual budget meeting. If one department gets a 10% increase in its budget, it will be offset by decreases in other departments’ share. Which negotiation approach will apply to this scenario?
- Inductive
- Deductive
- Mixed
- Distributive
Explanation:
This scenario describes a fixed resource (the budget) where one department’s gain (a 10% increase) directly results in another’s loss (a decrease). This is a distributive negotiation, often called a zero-sum game, where the parties compete over a limited resource.
75.Which person or group usually handles the buying decision for a straight rebuy selling situation?
- Consumer end-users
- Purchasing department
- Many decision makers in the organization
- Business end-users
Explanation:
A straight rebuy is a routine purchase where a company reorders the same product without modification, typically handled by the purchasing department. This department manages standard, repeat orders efficiently, as no new evaluation or decision-making is needed.
76.Why do Business to Consumer (B2C) sales processes generally have more controls than Business to Business (B2B) processes?
- Sales are often large and complex.
- Pricing is uniform across all customers.
- Pricing is negotiated between the buyer and seller.
- Personal sales are relationship based.
Explanation:
B2C sales often have more controls because they typically involve standardized pricing and processes to ensure consistency across a large customer base (e.g., retail pricing). In contrast, B2B sales often involve negotiated pricing tailored to specific clients, requiring fewer standardized controls.
77.A consumer likes the branding of a product. They research the brand to ensure it is trusted, but they do not compare with other products. Which type of problem-solving process is the consumer using?
- Extended problem-solving
- Routine problem-solving
- Involvement problem-solving
- Limited problem-solving
Explanation:
The consumer is doing some research to ensure the brand is trusted but isn’t comparing alternatives, indicating a moderate level of effort. This fits limited problem-solving, where the consumer has some prior experience or preference (liking the branding) and engages in minimal evaluation.
78.A consumer likes the branding of a product. They research the brand to ensure it is trusted, but they do not compare with other products. Which type of problem-solving process is the consumer using?
- Extended problem-solving
- Routine problem-solving
- Involvement problem-solving
- Limited problem-solving
Explanation:
This is the same question as 77, with the same answer. The consumer’s behavior—researching the brand but not comparing alternatives—indicates limited problem-solving, as they are putting in some effort but not engaging in extensive evaluation.
79.Which is an example of a company advertising its products?
- Listing price on the menu
- Creating technology superior products
- Sending a text message to a list of customers or prospects
- Selling products through Amazon
Explanation:
Advertising involves promoting a product to a target audience, often through communication channels. Sending a text message to customers or prospects directly promotes the product, making it an example of advertising. Listing a price on a menu is informational, creating superior technology is product development, and selling through Amazon is a distribution method, not advertising.
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