QUIZ No.

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Principles of Marketing – GRP01 – 14/03/2025

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Answer sheet
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1. McDonald’s adjusts its menu in India by offering more vegetarian options and avoiding
beef products, as cows are considered sacred in Hinduism. Which factor is primarily
influencing this business decision?
A) Social
B) Personal
C) Psychological
D) Cultural
E) Economic
2. ________ segmentation divides the market into segments based on variables such as age,
life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
A) Geographic
B) Benefit
C) Occasion
D) Psychographic
E) Demographic
3. A beauty influencer works in the cosmetics industry and regularly purchases a wide range
of lipsticks to swatch and review for their followers. In contrast, a typical consumer usually
buys lipsticks in colors they personally like and use. Which factor primarily influences the
buying behavior of the beauty influencer compared to the average consumer?
A) Lifestyle
B) Personality
C) Occupation
D) Social class
E) Motivation
4. Gucci offers exclusive mooncake gift sets to their VIP customers during special occasions
like the Mid-Autumn Festival in some Asian countries. What factor is primarily influencing
their decision to engage in this kind of gifting?
A) Social
B) Personal
C) Psychological
D) Cultural
E) Economic
5) According to Maslow's hierarchy of needs, which of the following is the LEAST pressing
need?
A) physiological needs
B) social needs
C) esteem needs
D) self-actualization needs
E) safety needs
6) People tend to interpret new information in a way that will support what they already
believe. This is called ________.
A) selective retention
B) selective distortion
C) cognitive dissonance
D) selective attention
E) cognitive bias
7. Companies know they cannot appeal to all buyers in the marketplace, or at least not in the
same way. Reasons for this include all of the following EXCEPT ________.
A) buyers are too numerous
B) companies vary widely in their abilities to serve different market segments
C) buyers are varied in their needs and buying practices
D) companies need more information to offer the right products to the right customers
E) buyers are widely scattered
8. A firm dumping chemical wastes in the local lake is ________.
A) actively resisting social change
B) contributing to organizational anarchy
C) engaging in a "do well by doing good" mission
D) adopting a proactive stance toward the marketing environment
E) contributing to increased pollution
9. The marketing team of 7 Star Inc., a company manufacturing smartphones, is currently
studying the size, density, location, age, and occupation of its target market. Which of the
following environments is being studied in this scenario?
A) demographic environment
B) political environment
C) economic environment
D) technological environment
E) cultural environment
10. New technologies most likely lead to ________.
A) economic imbalance in society
B) reduced exports
C) trade deficits
D) an increased demand for unskilled labor
E) new markets and opportunities
11. The economic environment consists of economic factors that affect ________.
A) cultural patterns of communities
B) entrepreneurial orientation of a population
C) consumer purchasing power
D) the quality of technological innovation
E) the natural environment
12. Consumers' spending patterns since the Great Recession include ________.
A) spending freely, without caution
B) amassing record levels of debt
C) experiencing rapid increases in housing values
D) buying less and looking for greater value in what they buy
E) participating in a booming stock market
13. Xiaomi's strategy focuses on producing smartphones with high functionality at a low cost
to make them affordable for a wide range of consumers. This reflects the _______concept.
A) product
B) production
C) selling
D) marketing
E) societal marketing
14. Apple focuses on designing iPhones with cutting-edge technology and advanced features,
believing that consumers will favor high-quality, innovative products. This reflects the
______ concept.
A) product
B) production
C) societal marketing
D) marketing
E) selling
15. BlackBerry was once a dominant player in the smartphone market, known for its physical
keyboard and secure email services. However, as touchscreen smartphones gained
popularity, BlackBerry focused on its existing product features rather than adapting to the
demand for touchscreens and app ecosystems. As a result, they lost significant market share.
This situation of BlackBerry characterizes ______:
A) selling myopia.
B) marketing management.
C) value proposition.
D) the product concept.
E) marketing myopia.
16. ________ consists of evaluating each market segment's attractiveness and selecting one
or more segments to enter.
A) Positioning
B) Mass customization
C) Market targeting
D) Market segmentation
E) Differentiation
17. Before the iPhone was launched, most consumers did not realize the need for a phone
that would let them access everything at their fingertips. The way Apple marketed its product
compelled people to simplify their lives by carrying a smartphone that could also serve as a
GPS, calendar, search engine, flashlight, weather guide and calculator. Apple has focused
on which P of their marketing mix?
A) Product
B) Price
C) Place
D) Promotion
E) both A and D
18. Some fast-food restaurants offer tasty and convenient food at affordable prices, but in
doing so they contribute to a national obesity epidemic and environmental problems. These
fast-food restaurants overlook the _______ philosophy.
A) marketing concept
B) product concept
C) production concept
D) societal marketing concept
E) selling concept
19. Human’s _______can be varied depending on each individual’s perception,
environment, culture, and society. For example, a Japanese needs food but he may____sushi
or ramen, while an Italian may ____pizza or pasta.
A) need
B) demand
C) wish
D) require
E) want
20. When marketers set low expectations for a market offering, they run the risk of ________.
A) disappointing loyal customers
B) having to use an outside-in rather than an inside-out perspective
C) failing to attract enough customers
D) failing to understand their customers' needs
E) incorrectly identifying a target market
21. Which of the following statements reflects the marketing concept?
A) Focus on making continuous product improvements.
B) Undertake a large-scale selling and promotion effort.
C) Emphasize an inside-out perspective.
D) Consider customer focus and value as the paths to sales and profits.
E) Focus on a product-centered make-and-sell philosophy.
22) Which of the following would each consumer segment attracted to “The Body Shop”
have in common with the other consumer segments?
A) habitual buying behaviors
B) self-concepts
C) AIO dimensions
D) life-cycle stages
E) aspirational groups
23. ________ involves actually distinguishing the firm's market offering to create superior
customer value.
A) Mass customization
B) Market segmentation
C) Diversifying
D) Targeting
E) Differentiation
24) ________ refers to qualitative research designed to probe consumers' hidden,
subconscious motivations.
A) Perception analysis
B) Subliminal analysis
C) Motivation research
D) Need recognition
E) Market segmentation
25. Building and maintaining profitable customer relationships by delivering superior
customer value and satisfaction is called ________.
A) customer lifetime value
B) customer-perceived value
C) customer relationship management
D) partner relationship management
E) customer equity
26. Governments develop public policy to ________.
A) encourage deregulation
B) identify demographic patterns
C) identify cultural patterns
D) guide commerce
E) protect marketers
27. Sally recently purchased Brand X lotion. In comparing her perception of how the lotion
made her skin feel and look to her expectations about Brand X lotion, Sally was measuring
her level of ________.
A) share of customer
B) customer satisfaction
C) customer equity
D) customer-perceived value
E) customer lifetime value
28. ________ consists of arranging for a market offering to occupy a clear, distinctive, and
desirable place relative to competing products in the minds of target consumers.
A) Mass customization
B) Targeting
C) Segmentation
D) Differentiation
E) Positioning
29. A tech company offers its employees a comprehensive wellness program that includes
gym memberships, access to mental health professionals, and workshops on personal
development and mindfulness. According to Maslow’s hierarchy of needs, which level of
needs is this company primarily addressing with this initiative?
A) Physiological Needs (such as food and shelter)
B) Safety Needs (such as health and well-being)
C) Social Needs (such as belonging and friendship)
D) Esteem Needs (such as respect and recognition)
E) Self-Actualization Needs (such as personal growth and fulfillment)
30. When marketers at Fair & Leigh Inc. selected the Gen Z, a demographic group that
includes many college students, as an untapped group of potential customers for their new
line of products, they were engaging in ________.
A) occasion segmenting
B) local marketing
C) market diversification
D) market targeting
E) product positioning
31. ________ involves dividing a market into smaller segments of buyers with distinct needs,
characteristics, or behaviours that might require separate marketing strategies or mixes.
A) Mass customization
B) Market targeting
C) Differentiation
D) Positioning
E) Market segmentation
32. As a consequence of the concern for the natural environment, many companies are
developing strategies and practices that support ________.
A) government intervention
B) environmental sustainability
C) deregulation
D) mass marketing
E) rapid exploitation of natural resources
33. A company buys 100 laptops from Dell to equip its employees for a new office branch,
while a consumer buys a laptop from Dell for personal use at home. What is the main
difference between these two transactions?
A) The company is engaging in B2B purchasing, while the consumer is engaging in B2C
purchasing.
B) The company is engaging in B2C purchasing, while the consumer is engaging in B2B
purchasing.
C) Both the company and the consumer are engaging in B2C purchasing.
D) Both the company and the consumer are engaging in B2B purchasing.
E) The company’s transaction is direct-to-consumer purchasing, and the individual’s
purchase is wholesale purchasing.
34) Asian-American consumers are the least brand conscious of all ethnic groups.
A) True
B) False
35) Social class is based on shared value systems and common life experiences and
situations.
A) True
B) False