MCQ FOR MARKETING MANAGEMENT 1. _____ is the development of original products, product improvements, product modifications,

and new brands through the firm’s own R&D efforts.

a. Idea generation

b. Concept testing

c. Test marketing

d. New product development

Answer: 1: (d)

2. All of the following are accurate descriptions of reasons why new products fail, except which

one?

a. Although the market size was correctly estimated, the product idea itself was not good.

b. The actual product was not designed as well as it should have been.

c. The new product was priced too high.

d. The new product was advertised poorly.

Answer: 2 : (a)

3. All of the following are major internal sources of new-product ideas, except which one?

a. Picking the brains of company executives, scientists, engineers and salespeople is a good

way to generate ideas.

b. Intrapreneurial programs that encourage employees to think and develop new-product

ideas is a good way to generate ideas.

c. Some companies employ creative approaches, including both "method and madness" in

helping them to generate new product ideas.

d. Good ideas come from watching and listening to customers.

Answer: 3: (d)

4. All of the following are major external sources of new-product ideas, except which one?

a. Companies can conduct surveys or focus groups to learn about consumer needs and wants.

b. Competitors are a good source of new-product ideas.

c. Some companies employ creative approaches, including both "method and madness" in

helping them to generate new product ideas.

d. Good ideas come from watching and listening to customers.

Answer: 4:(d)

5. In order to install an idea management system, whereby all ideas are directed to a central

point, a company can do any or all of the following:

a. Appoint a respected senior person to be the firm's idea manager.

b. Create a cross-functional idea management committee comprising of people form R&D,

finance, engineering and operations to meet and evaluate new product ideas.

c. Reward employees through formal recognition programs.

d. All of the above are legitimate ways to systematically collect ideas.

Answer: 5: (d)

6. A _____ is a detailed version of the idea stated in meaningful consumer terms.

a. product idea

b. product concept

c. product image

d. test market

Answer: 6: (b)

7. A _____ is the way consumers perceive an actual or potential product.

a. product idea

b. product concept

c. product image

d. test market

Answer: 7: (c)

8. All of the following are accurate descriptions of activities performed in the idea screening stage

of new product development, except which one?

a. Idea screening helps spot good ideas and drop poor ones as soon as possible.

b. Companies want to go ahead only with the product ideas that will turn into profitable

products.

c. Many companies require their executives to write up new product ideas on a standard form

that can be reviewed by a new-product committee.

d. Setting up a toll-free number or Web site for anyone who wants to send a new idea to the

idea manager.

Answer: 8: (d)

9. _____ calls for testing new-product concepts with groups of target consumers.

a. Concept development

b. Concept testing

c. Idea generation

d. Idea screening

Answer: 9: (b)

10. Product concepts are presented to consumers during concept testing in any of the following

ways, except which one?

a. A word or picture description is presented to consumers.

b. A concrete and physical presentation of the concept will increase the reliability of the

concept test.

c. Some companies are using virtual reality to test product concepts.

d. Companies are reluctant to use the Web to test product concepts.

Answer: 10 : (d)

11. The marketing strategy statement in new product development consists of three parts: _____,

_____, and _____.

a. idea generation; idea screening; concept development

b. idea generation; concept development; concept testing

c. idea generation; idea screening; idea management

d. target market description; planned product positioning; sales, market share, and profit goals

for the first few years.

Answer: 11: (d)

12. _____ involves a review of the sales, costs, and profit projections for a new product to find

out whether they satisfy the company's objectives.

a. Idea generation

b. Idea screening

c. Business analysis

d. Concept development and testing

Answer: 12 : (c)

13. If a product concept passes the _____, it moves into _____.

a. business analysis test; product development

b. concept development stage; product development

c. concept testing stage; product development

d. idea generation stage; product development

Answer: 13 : (a)

14. In the product concept stage of new-product development, the product is merely a _____.

a. word description

b. crude mock-up

c. drawing

d. all of the above

Answer: 14: (d)

15. _____ is the stage of new-product development in which the product and marketing program

are tested in more realistic market settings.

a. Business analysis

b. Idea generation

c. Test marketing

d. Marketing strategy development

Answer: 15 :(c)

16. Introducing a new product into the market is called _____.

a. test marketing

b. new product development

c. experimenting

d. commercialization

Answer: 16 :(d)

17. All of the following are accurate descriptions of new-product development approaches used

by companies in the commercialization phase of the process, except which one?

a. New-product development teams in the simultaneous approach tend to stay with the new

product from start to finish.

b. In the simultaneous approach, top management gives the product development team

general strategic direction but no clear-cut product idea or work plan.

c. In order to get their new products to market more quickly, many companies are adopting a

faster approach called sequential product development.

d. The simultaneous team-based approach can be riskier and more costly than the slower,

more orderly sequential approach.

Answer: 17 :(c)

18. _____ begins when the company finds and develops a new-product idea. During product

development, sales are zero and the company's investment costs mount.

a. Introduction

b. Growth

c. Maturity

d. Product development

Answer: 18 : (d)

19. _____ is a period of market acceptance and increasing profits.

a. Product development

b. Maturity

c. Growth

d. Introduction

Answer: 19 : (c)

20. Using a successful brand name to introduce additional items in a given product category under the

same brand name (such as new flavors, forms, colors, added ingredients, or package sizes) is called

As_________:

a. line extension.

b. brand extension.

c. multibranding.

d. new brands.

Answer: 20 : (a)

21. A pricing strategy that is aimed at increasing the market share of a product is most likely to be --------

---------.

a) Penetration Pricing

b) Loss Leading

c) Premium Pricing

d) Psychological Pricing

Answer : 21 : (a)

22. What do consumers normally expect in return for purchase in bulk quantities?

a) Premium Price

b) Higher Quality

c) Quicker Delivery

d) A discounted Price

Answer : 22 : (d)

23. The product portfolio analysis is used to examine ………………..

a) The potential gaps in the market for new products

b) The past position of firms products

c) The strategic position of the firms products

d) The potential growth of its products market

Answer : 23 : (c)

24. What is the number one success factor for a new product?

a) Team organisation during the business analysis phase of development

b) Generating new product ideas from customers

c) A unique, superior product

d) Quick commercialization

Answer : 24 : (c)

25

.

What purpose does the idea-screening phase of the new product development process serve?

a) To reduce the number of product ideas from the idea generation phase

b) To produce a working product prototype

c) To develop product images from the product ideas

d) To add new product ideas to those acquired from outside the company

Answer: 25 : (a)

26 What is the proper term for a detailed version of a product idea stated in meaningful consumer

terms?

a) A business analysis

b) A product image

c) A prototype product

d) A product concept

Answer: 26 :(d)

27. In which phase of the new product development process prior to commercialisation does the

company see a huge jump in investment cost?

a) Business analysis

b) Product development

c) Marketing strategy

development

d) Test marketing

Answer: 27 : (b)

28. What is the meaning of the term 'simulated test market'?

a) The introduction of a new product into a simulated shopping environment usually for

the purpose of ascertaining demand levels

b) A test after release from the factory of the first model of a new product

c) It is the term used to identify an overwhelming test market success

d) It is the term used to identify a test market failure

Answer: 28 : (a)

29. 'Harvesting' products occurs in which stage of the product life cycle?

a) Growth

b) Maturity

c) Decline

d) Introductory

Answer: 29:(c)

30. Which stage usually lasts the longest in a product's life cycle?

a) Decline

b) Introduction

c) Growth

d) Maturity

Answer: 30: (d)

31. Which stage of the product life cycle is typically characterised by the most competitors?

a) a) Decline

b) b) Maturity

c) c) Growth

d) d) Product development

e) e) Introduction

Answer: 31: (c)

32. In the commercialisation stage of the new product development process, companies

must make major decisions. Which is not one of the decisions?

a) When to launch the product due to seasonal/economic reasons

b) Who to launch the product to, e.g. best prospects

c) How to launch the product

d) Where to launch the product e.g. local, regional, national, international

e) All of the above

Answer: 32 : (e)

33. The first four stages of the new product development process are: _________.

a) Business analysis, idea generation, idea screening, concept development

b) Idea generation, idea screening, concept development and marketing strategy

c) Idea screening, concept development, marketing strategy and business analysis

d) Product development, business analysis, idea generation, idea screening

Answer : 33 : (b)

34. Which stage of the product life cycle is characterised by a trade-off between high market share

and high current profit?

a) Product development

b) Introduction

c) Maturity

d) Decline

e) Growth

Ans : 34 : (e)

21. Customers today show less brand loyalty and are becoming more price and quality

conscious. Considering this reality …

a. The buying power has reduced since earlier times

b. Marketers need not consider what consumers received yesterday/yester years

c. Marketers see consumers as value seekers and find solutions

d. Companies can facilitate and speed external communication by creating a buzz

or a hype

Answer : 35 : (c)

22. The factors that make the buyers more powerful :

a. Price sensitivity

b. The threat of backward integration

c. Neither of the above

d. A&B above

Answer : 36 (d)

23. Which are the strategies and tactics that can be used to tackle price oriented

organisational buyers?

a. Limit quantity purchased

b. Allow no refunds

c. Make no adjustments

d. One of the above

Answer : 37 (d)

24. Customers today show less brand loyalty and are becoming more price and quality

conscious. Considering this reality …

a. The buying power has reduced since earlier times

b. Marketers need not consider what consumers received yesterday/yester years

c. Marketers see consumers as value seekers and find solutions

d. Companies can facilitate and speed external communication by creating a buzz or a hype

Answer : 38 (c)

25. Introduction of more brands and extensions leads to __ with no new benefits to consumers. a. Higher cost b. Greater revenue c. Brand proliferation d. Increased competition

Answer : 39(c)

26. Right branding increases __________ of the product, which should be more than that of the generic product. a. Consumer revolt b. Market share c. Profit d. Value Answer : 40: (d) 27. To have value, a brand must offer which one of the following? a. A simple product range with a defined set of features

b. A complex product range with a defined set of features c. Consistency, a reduced level of perceived risk for the buyer, and a range of functional and emotional attributes which are of value to buyers d. An identity through which the customer can trace the party responsible for supplying the product

Answer: 41: (c)

28. An apparel marketer is planning to launch an existing brand name into a

new product category. Which brand development strategy is being implemented?

A. Line extension B. Multibrand C. Brand extension D. Rebranding Answer : 42 : (c)

29. Brand identity is followed by _________, which is a reflection of what marketers planed to send to the public. a. Brand value b. Brand image c. Advertising d. Brand personality Answer : 43 : (b) 44. When we keep the same brand name of new offerings so that customers may develop

an immediate familiarity, the resultant phenomenon is known as:

a. Leveraging

b. Extension

c. Diversification

d. Stretching

Answer : 44 : (a)

45. Benefits of having different brands include all of the following except:

a. Quickly respond to retailers’ need

b. Effectively compete in market

c. Save the actual brand image

d. Fill all the gaps in market

Answer : 45 : (d)

46. When the same brand name holds several products in different markets, it is known

as the

a. Umbrella brand

b. Source brand

c. Multi-brand

d. Range brand

Answer : 46 : (a)

47. Which one of the following form of asset the brand has __________?

a) Tangible assets

b) Intangible assets

c) Current assets

d) Fixed assets

Answer : 47 : (b)

48. The functional risk of brand is related to __________.

a) Price

b) Performance

c) Social image

d) Our self concept

Answer : 48 : (b)

49. There are lot of customers have the knowledge of brand. They are inclined to be

bound into a contract. A customer bound by a contract is known as __________.

a) Loyal customer

b) Difficult customer

c) Potential customer

d) Finicky customer

Answer : 49 : (a)

50. This pricing model offers opportunity to set different levels of pricing for different

needs is known as __________.

a) Segment pricing

b) Skim pricing

c) Value-in-use pricing

d) Strategic account pricing

Answer : 50 : (a)

51. If a company introducing a new brand under the source brand or endorsing brand

strategy to gain the benefits of brand power, you again are in a position to charge a __.

a) Premium price

b) Skimming price

c) Market based price

d) Retail price

Answer : 51 : (a)

52. ___________ works best under the circumstances of high differentiation that gives

you a sustainable advantage in a quality conscious market.

a) Value-in-use Pricing:

b) Skim Pricing

c) Segment pricing

d) Strategic account pricing

Answer : 52 : (b)

53 . Introducing additional items in the same product category by adding new flavors, forms, colors, ingredients or package sizes, under the same brand name, is known as:

a) Line extensions b) Product mix c) Interactive marketing d) Service intangibility

Answer : 53 : (a)

54. Introducing additional items in the same product category by adding new flavors,

forms, colors, ingredients or package sizes, under the same brand name, is known as:

a) Line extensions

b) Product mix

c) Interactive marketing

d) Service intangibility

Answer : 54 : (a)