180+ Applied Theory of Markets Solved MCQs


In which stage of product life cycle , losses are incurred because of heavy development and promotional cost.

A. growth stage
B. maturity stage
C. introduction stage
D. decline stage
Answer» C. introduction stage

Which type of advertisement is used at the time of introducing a new product?

A. competitive advertising
B. reminder advertising
C. pioneer advertising
D. advocacy advertising
Answer» B. reminder advertising

Consumers will travel long distances to locate their favorite brand or outlet. Which type of product is this?

A. consumer goods
B. specialty goods
C. shopping goods
D. convenient goods
Answer» B. specialty goods

Which type of product Consumerswill buy regularly without much planning ?

A. consumer goods
B. specialty goods
C. shopping goods
D. convenient goods
Answer» D. convenient goods

What Affects and shapes customer perceptions about the company’s product?

A. price
B. packaging
C. branding
D. both a and b.
Answer» C. branding

Brand superiority leads to :

A. high sales
B. the ability charge price premiums
C. power to resist distribution power
D. all of these
Answer» D. all of these

Choose the term used to indicate “ a group of product items or brands that are closely related in terms of their functions and benefits they provide”?

A. product item
B. product line
C. product mix
D. none of these.
Answer» B. product line

What is the term used to indicate “the number of product lines that a company offers”?

A. depth of product line
B. width of product mix
C. product items
D. product mix
Answer» B. width of product mix

Companies adding lower prices products to a product line to add sales to the line and attract a broader market. What kind of product mix modification is this?

A. line extension
B. mix extension
C. trading up
D. trading down
Answer» D. trading down

A customer makes the choice of purchasing one brand from among a set of alternatives consistently over a period of time: choose the correct term.

A. brand equity
B. brand image
C. brand loyalty
D. brand association
Answer» C. brand loyalty

The use of an established brand name in new product categories, what is it?

A. brand extension
B. line extension
C. brand association
D. none of these
Answer» A. brand extension

All companies charge the same price and smaller players follow the price set by the market players. Which is this method?

A. direct pricing
B. cost plus pricing
C. going rate pricing
D. penetration pricing.
Answer» C. going rate pricing

Which one is the Pricing strategy of a new product?

A. penetration pricing
B. skimming pricing
C. competitive bidding
D. both a &b
Answer» D. both a &b

What refers to the setting of a high price when a product is first introduced?

A. penetration pricing
B. skimming pricing
C. prestige pricing
D. value pricing
Answer» B. skimming pricing

Which among is a suitable pricing strategy of Charging different prices to different customer groups?

A. price discrimination
B. price differentiation
C. transfer pricing
D. penetration pricing
Answer» A. price discrimination

Charging very low price at the introductory stage of a new product and raising prices gradually.

A. skimming pricing
B. penetration pricing
C. cost plus pricing
D. competitor pricing
Answer» B. penetration pricing

Which of the following is advertising on the shelf, a means of attractive display in the retailers shop?

A. window display
B. package
C. labels
D. none of these
Answer» B. package

Entire product marketing programme is tried out for the first time in a small number of well selected markets like small cities or small areas. What is it called ?

A. pilot study
B. test marketing
C. commercialization
D. both a &b
Answer» B. test marketing

What happens when a firm introduces new product to a market in which it is established?

A. market development
B. diversification
C. market segmentation
D. both a& b
Answer» D. both a& b

What/ who is the Shelf sales man for the retailer?

A. sales man
B. labels
C. packages
D. price
Answer» C. packages

When a product has long life cycle , it has mass market, entry of rivals in to market is easy and demand is elastic. Which pricing policy can be adopted?

A. skimming pricing
B. penetration pricing
C. cost plus pricing
D. going rate pricing.
Answer» B. penetration pricing

Which pricing strategy is used by Bata Shoe Company?

A. going rate pricing
B. cost plus pricing
C. premium pricing
D. psychological pricing
Answer» D. psychological pricing

What is Mark- up pricing?

A. cost plus pricing
B. customary pricing
C. skimming pricing
D. psychological pricing
Answer» A. cost plus pricing

Each product has a special and unique brand name .which type of brand is this?

A. individual brand name
B. family brand name
C. umbrella brand
D. none of these
Answer» A. individual brand name

Which type of brand name is “Amul” ?

A. umbrella brand name
B. individual brand name
C. family brand name
D. combination device
Answer» C. family brand name

What is Odd pricing?

A. mark up pricing
B. psychological pricing
C. customary pricing
D. going rate pricing
Answer» B. psychological pricing

What all are the factors affecting pricing decision ?

A. cost of production
B. demand of the product
C. competition
D. all of these
Answer» D. all of these

Which is competition oriented pricing method?

A. cost plus pricing
B. target pricing
C. customary prices
D. marginal cost pricing
Answer» C. customary prices

what method of pricing is popular in construction activities , where the contract is awarded who quoted the highest price?

A. sealed bid price
B. customary prices
C. target pricing
D. none of these
Answer» A. sealed bid price

The price charged when the products are transferred between one or more interdependent departments, what is it called?

A. dual pricing
B. transfer pricing
C. administered pricing
D. all of these
Answer» C. administered pricing

Which is the reason for skimming price?

A. inelastic demand
B. diversion of market
C. safer price policy
D. all of these
Answer» D. all of these

Which is the condition for market penetration?

A. high price elasticity of demand in the short run
B. savings in production cost
C. threat of potential competition
D. all of these
Answer» D. all of these

Which is the determinant of the pricing policy of a firm?

A. channel of distribution
B. life of product
C. consumer association
D. all of these
Answer» D. all of these

The term product concept was first used by

A. theodore levitt
B. peter drucker
C. e j mcclarthy
D. none .
Answer» A. theodore levitt

A brand created and owned by the producer of a product or service is called:

A. private brand
B. manufacture’s brand
C. store brand
D. licensed brand .
Answer» B. manufacture’s brand

Which of the following is not a sales promotion tool?

A. advertisement
B. discount
C. dealer contest
D. consumer contest .
Answer» A. advertisement

The type of advertisement used when product enters in to growth stage of product life cycle is known as

A. reminder advertising
B. primary advertising
C. selective advertising
D. none of these.
Answer» C. selective advertising

Who has introduced the concept of market segmentation?

A. rosser reeves
B. n h borden
C. wendell r smith
D. none of these.
Answer» C. wendell r smith

Which of the following is not the part of demographic segmentation?

A. age
B. interest and activity
C. income
D. education
Answer» B. interest and activity

Dividing buyers in to groups based on their knowledge attitude ,uses or response to a product is called:

A. geographic segmentation
B. psychographic segmentation
C. demographic segmentation
D. behavioral segmentation.
Answer» D. behavioral segmentation.

What is Marketing channel ?

A. distribution channel
B. supply chain
C. transportation
D. none
Answer» A. distribution channel

What is involved in Distribution mix?

A. warehousing
B. inventory
C. transportation
D. all of these
Answer» D. all of these

Which utilities are created by the Marketing channels?

A. time
B. place
C. possession
D. all of these
Answer» D. all of these

What links producers to other middleman or to ultimate consumers through contractual arrangement or through purchase and reselling of products?

A. marketing channel
B. market intermediaries
C. both a & b
D. none of these
Answer» B. market intermediaries

SCM stands for?

A. supply chain management
B. supplier chain management
C. supplier chain managing
D. supply cost management
Answer» A. supply chain management

Name the type of channel of distribution Using two or more channels to distribute the same product to the same target market?

A. single distribution
B. multiple distribution
C. dual distribution channel
D. all of these
Answer» C. dual distribution channel

Name the type of distribution of Using some available outlets to distribute a product ?

A. intensive distribution
B. selective distribution
C. exclusive distribution
D. all of these
Answer» B. selective distribution

What Is direct marketing channel?

A. zero level channel
B. one level channel
C. two level channel
D. three level channel
Answer» A. zero level channel

How many number of intermediaries have Bata shoe manufacturing company?

A. one
B. two
C. four
D. no channel
Answer» D. no channel

What is Mass distribution?

A. whole distribution
B. exclusive distribution
C. intensive distribution
D. selective distribution
Answer» C. intensive distribution

Which of the following is a determinant of channel selection ?

A. nature of product
B. price of the product
C. quantity of the product
D. quality of the product
Answer» A. nature of product

Who is the Middle man in distribution channel ?

A. merchant middle man
B. agent middleman
C. facilitator
D. all of these
Answer» D. all of these

Wholesalers and retailers are: ?

A. facilitators
B. agents
C. merchant middleman
D. industrial buyers
Answer» C. merchant middleman

WhoIs the first intermediary in the channel of distribution?

A. agents
B. retailers
C. wholesalers
D. producer
Answer» A. agents

An ultimate consumer has direct contact with whom?

A. producer
B. retailer
C. wholesaler
D. agents
Answer» B. retailer

Which is The best channel of distribution for Vacuum cleaner?

A. direct marketing
B. mail order business
C. self service
D. none of these
Answer» A. direct marketing

The set of marketing intermediaries through which the goods flow from the producer to consumer, choose the correct name.

A. channel of distribution
B. direct marketing
C. intensive distribution
D. none of these
Answer» A. channel of distribution

The word channel is derived from the French word:

A. cann
B. chaan
C. canal
D. none of these
Answer» C. canal

In a small market , which is better?

A. three level channel
B. two level channel
C. direct marketing
D. all of these
Answer» C. direct marketing

What is the term of “ those who obtain title to goods with a view to selling them at profit”?

A. merchant middlemen
B. agent middle men
C. facilitators
D. all of these
Answer» A. merchant middlemen

Which of the following is not a non storeretailing ?

A. kiosk marketing
B. retail chains
C. direct marketing
D. tele marketing
Answer» D. tele marketing

which type of retailers open their shops on fixed days or dates in a specified area?

A. hawkers
B. kiosks
C. market traders
D. none of these
Answer» C. market traders

Itinerant retailers have :

A. fixed shop/ place of business
B. no fixed shop for business
C. not directly meeting the customer
D. none
Answer» B. no fixed shop for business

Who is an E-tailer ?

A. e-commerce firms
B. sale on the internet
C. internet retailers
D. all of these
Answer» D. all of these

Amazone.com is an example of ?

A. telemarketing
B. direct marketing
C. e-marketing
D. fixed shop retailers
Answer» C. e-marketing

What is term of creating an image about a product or brand in the consumers mind ?

A. positioning
B. target marketing
C. market segmentation
D. product differentiation
Answer» A. positioning

Anything that has the ability to satisfy a consumer need, what is it?

A. price
B. package
C. product
D. promotion
Answer» A. price

Which utility creates Transport system ?

A. place utility
B. time utility
C. cutomer utility
D. all of these
Answer» B. time utility

New product development stage involves :

A. idea generation
B. niche marketing
C. styling
D. product positioning
Answer» A. idea generation

Who is called The dominant member of a marketing channel or supply chain ?

A. channel power
B. channel captain
C. channel manager
D. all of these
Answer» B. channel captain

What is it called, the use of telephone and non personal media to introduce products to consumers, who then can purchase them via mail , telephone or the internet?

A. direct selling
B. direct marketing
C. catalog marketing
D. automatic vending
Answer» B. direct marketing

Which type of communication that build and maintain favorable relationship by informing and persuading to one or more audience to accept their product?

A. horizontal communication
B. diagonal communication
C. promotion
D. vertical communication
Answer» C. promotion

What is the purpose of promotion ?

A. create awareness
B. stimulate demand
C. reduce sales fluctuations
D. all of these
Answer» D. all of these

What all are the elements included in promotion mix ?

A. advertising
B. personal selling
C. public relations
D. all of these
Answer» D. all of these

Sales promotion is an element of :

A. product mix
B. price mix
C. promotion mix
D. none of these
Answer» C. promotion mix

Which kind of Communication is Advertisement?

A. paid
B. non personal
C. direct communication
D. both a & b
Answer» D. both a & b

Which of the following is a paid personal communication ?

A. advertisement
B. personal selling
C. sales promotion
D. telephone communication
Answer» B. personal selling

It is an activity or material , or both , that act as a direct inducement to resellers , sales people and consumers. What is it?

A. sales promotion
B. personal selling
C. advertisement
D. personal relation
Answer» A. sales promotion

Rebate, discounts, window display , samples etc.. are: ?

A. sales promotion technique
B. advertising technique
C. sales management technique
D. distribution technique
Answer» A. sales promotion technique

What does it called communication through mass media?

A. personal selling
B. online marketing
C. advertising
D. none of these
Answer» C. advertising

Choose the name of group of people at whom advertisements are aimed?

A. target audience
B. customers
C. competitors
D. industries
Answer» A. target audience

It is a broad set of communication efforts used to create and maintain favorable relationship between an organization and its stakeholders .

A. public relation
B. vertical communication
C. industrial relation
D. all of these
Answer» A. public relation

Choose the alternative name of Multi-level marketing (MLM) ?

A. pyramid selling
B. network marketing
C. referrel marketing
D. all of these
Answer» D. all of these

Which business discipline is focused on the practical application of sales techniques and the management of a firm's sales operations?

A. sales management
B. operations management
C. distribution management
D. production management.
Answer» A. sales management

What is the main attraction of electronic marketing?

A. high transaction cost
B. low transaction cost
C. no transaction cost
D. veryhigh transaction cost
Answer» B. low transaction cost

E-marketing is a part of:

A. e-payment
B. e-cash
C. e-mail
D. e-commerce
Answer» D. e-commerce

Which of the following is not an e-marketing tool?

A. i-radio
B. mobile phone
C. i-kiosks
D. cinema
Answer» D. cinema

Which is an advertising on the electronic media?

A. e-marketing
B. e-distribution
C. e- advertising
D. e-mail
Answer» C. e- advertising

Which marketing strategy is used under conditions of scarcity and during the period of shortage?

A. meta marketing
B. demarketing
C. reciprocal marketing
D. none of these
Answer» B. demarketing

When advertisement is to create an image or reputation of the firm , Which type od advertisement is this?

A. product ads
B. institutional ads
C. shortage ads
D. comparative ads
Answer» B. institutional ads

What is MPR?

A. managing public relation
B. measuring public relation
C. marketing public relation
D. monitoring public relation
Answer» C. marketing public relation

What is Personal selling?

A. one way communication
B. printed communication
C. direct at individual
D. none of these
Answer» C. direct at individual

What is Publicity ?

A. long term strategy
B. always positive
C. involves cost
D. none of these
Answer» D. none of these

Which of the following is included in Sales promotion ?

A. consumer promotion
B. sales force promotion
C. dealer promotion
D. all of these
Answer» D. all of these

Samples, buy one get one free, coups etc ..belongs to which promotion strategy?

A. consumer promotion
B. sales force promotion
C. trade promotion
D. dealer promotion
Answer» A. consumer promotion

USP stands for :

A. union sales promotion
B. unit sales promotion
C. uniform selling proposition
D. unique selling proposition
Answer» D. unique selling proposition

How many stages involved in Consumer buying decision process?

A. six
B. four
C. five
D. seven
Answer» C. five

Problem recognition, information search, evaluation and purchase is the Stages of :

A. consumer purchase decision
B. decision making process
C. problem solving process
D. pricedetermination process
Answer» A. consumer purchase decision

Life style , attitude ,self-concept are factors of consumer buying process, choose the suitable option.

A. physical factors
B. psychological factors
C. situational factors
D. social factors
Answer» B. psychological factors

Which is the influence that affect the consumer buying process resulting from circumstances , time and location?

A. psychological influence
B. situational influence
C. physical influence
D. social influence
Answer» B. situational influence
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