Principles of Marketing

Second Quarter Examination

NAME: ____________________________________________________________________ SCORE: ___________

I. MULITIPLE CHOICE:
Directions: Read each item very carefully. Encircle the letter that corresponds to the correct answer..

1. Goods that become more sought after their a. Width

prices get higher. b. Length
c. Height
a. Inferior Goods d. Depth
b. Exterior Goods
c. Veblen Goods 8. A proactive and marketing- based pricing
d. Giffen Goods method whereby the value of the product to
the market becomes the basis for the price.
2. Goods that end up being preferred despite its
price increase because substitute goods’ a. Going- rate Pricing
prices are also rising well. b. Perceived Value Pricing
c. Target Return Pricing
a. Inferior Goods d. Activity- based Pricing
b. Exterior Goods
c. Veblen Goods 9. This type of pricing is based on industry rates
d. Giffen Goods rather than on either costs or market
perceptions.
3. It is mark of distinction that can be sensed
usually in the form of names or terms, signs or a. Going- rate Pricing
symbols, design of elements, or even a b. Perceived Value Pricing
combination of these. c. Target Return Pricing
d. Activity- based Pricing
a. Trade Name
b. Branding 10. These type of stores have very narrow width in
c. Brand terms of product mix but each of the product
d. Brand Equity lines that they offer have extensive length and
depth.
4. It refers to the value of the brand.
a. Department Stores
a. Branding b. Supermarkets
b. Brand Indices c. Superstores
c. Brand Equity d. Specialty Stores
d. Brand Value
11. These stores are characterized by gigantic
5. These are names of people that usually used selling spaces as well as bulk selling.
as brand name.
a. Department Stores
a. Eponyms b. Supermarkets
b. Phonics c. Superstores
c. Mnemonics d. Specialty Stores
d. Portmanteaus
12. These refer to issues that may arise between
6. It refers to the combination of words that make different levels along the distribution system.
a new word.
a. Vertical conflicts
a. Eponyms b. Parallel Conflicts
b. Phonics c. Perpendicular Conflicts
c. Mnemonics d. Horizontal Conflicts
d. Portmanteaus
13. These refer to issues that may arise between
7. It pertains to the variety, which is typically same levels along the distribution system.
manifested as flavors, colors, sizes, or
formulations for a particular product. a. Vertical conflicts
 b. Parallel Conflicts d. suppliers who perform a variety of
c. Perpendicular Conflicts functions
d. Horizontal Conflicts
21. A marketer usually offers a noncumulative
14. It is the characteristics of the product itself, quantity discount in order to
such as softness, engine power, physical size,
friendliness, location, design, and colors. a. reward customers for repeat purchases
b. reduce advertising expenses
a. Personality c. encourage users to purchase in large
b. Benefits quantities
c. Values d. encourage buyers to submit payment
d. Attributes promptly

15. It is a brand meaning characterized by being 22. Which of the following statements about
adventurous, youthful, energetic, formal and secondary data is correct?
proper, brutally candid, or fun.
a. Secondary data are usually more
a. Personality expensive to obtain than primary data.
b. Benefits b. a shorter period of time than primary data
c. Values c. Secondary data are usually more relevant
d. Attributes to a research objective than are primary
data.
16. A manufacturer of car batteries, who has d. Secondary data must be collected outside
been selling through an automotive parts the firm to maintain objectivity.
wholesaler to garages and service stations,
23. The demand for industrial goods is sometimes
decides to sell directly to retailers. Which of
called “derived” because it depends on
the following will necessarily occur?
a. Elimination of the wholesaler’s profit will a. economic conditions
result in a lower price to the ultimate b. demand for consumer goods
consumer. c. governmental activity
d. availability of labor and materials
b. Elimination of the wholesaler’s marketing
functions will increase efficiency.
24. A brand that has achieved brand insistence
c. The total cost of distribution will be and is considered a specialty good by the
reduced because of the elimination of the target market suggests which of the following
wholesaler. distribution objectives?
d. The wholesaler’s marketing functions will
be shifted to or shared by the a. Widespread distribution near probable
manufacturer and the retailer. points of use
b. Exclusive distribution
17. All of the following are characteristics of c. Intensive distribution
services EXCEPT d. Enough exposure to facilitate price
comparison
a. intangibility
b. heterogeneity 25. Marketing strategy planning includes
c. perishability
d. Inflexibility a. supervising the activities of the firm’s sales
force
18. In the marketing mix three of the 4P’s add to b. determining the most efficient way to
company costs. Which is the only P directly manufacture products
concerned with producing revenues? c. selecting a target market and developing
the marketing mix
a. Promotion d. determining the reach and frequency of
b. Place advertising
c. Product
26. In contrast to a selling orientation, a marketing
d. Price orientation seeks to
19. Which of the following is a major disadvantage a. increase market share by emphasizing
associated with the use of dual distribution? promotion
b. increase sales volume by lowering price
a. It is usually very expensive. c. lower the cost of distribution by direct
b. It can cause channel conflict. marketing
c. It provides limited market coverage. d. satisfy the needs of targeted consumers at
d. It is only appropriate for corporate a profit
channels.
27. Cooperative advertising is usually undertaken
20. A channel of distribution refers to the: by manufacturers in order to
a. routing of goods through distribution a. secure the help of the retailer in promoting
centers a given product
b. sequence of marketing intermediaries from b. divide responsibilities between the retailers
producer to consumer and wholesalers within a channel of
c. methods of transporting goods from distribution
producer to consumer
 c. satisfy legal requirements 34. Cooperative advertising is usually undertaken
d. create a favorable image of a particular by manufacturers in order to
industry in the minds of consumers
a. secure the help of the retailer in promoting a
28. In which of the following situations is the given product
number of buying influences most likely to b. divide responsibilities between the retailers
be greatest? and wholesalers within a channel of
distribution
a. A university buys large quantities of paper for c. satisfy legal requirements
computer printers on a regular basis. d. create a favorable image of a particular
b. A computer manufacturer is building a new industry in the minds of consumer
headquarters and is trying to choose a line of
office furniture. 35. The ABC Corporation has two chains of
c. A consumer decides to buy a different brand of restaurants. One restaurant specializes in
potato chips because they are on sale. family dining with affordable meals. The
d. A retail chain is searching for a vendor of second restaurant targets young, single
lower-priced cleaning supplies. individuals, and offers a full bar and small
servings. The ABC Corporation uses which
form of targeted marketing strategy?
29. When suppliers, distributors, and customers
partner with each other to improve the a. Mass marketing
performance of the entire system, they are b. Differentiated marketing
participating in a: c. Undifferentiated marketing
d. Customized marketing
a. value delivery network
b. channel of distribution 36. The marketing director of a manufacturing
c. supply chain company says, “If my wholesaler exceeds the
d. profit sharing sales record from last month, I agree to give
him a paid trip to the Bahamas.” This
30. Mass marketers, such as Target and Venture technique is a form of
Stores, often ignore market segment
differences and target the whole market with a. sales promotion
one offer. What is their approach to b. advertising
segmenting? c. personal selling
d. direct marketing
a. undifferentiated marketing
b. differentiated marketing 37. Market segmentation that is concerned with
c. target marketing people over 65 years of age is called
d. Serviceable marketing a. geographic
b. socioeconomic
31. A fertilizer manufacturer who traditionally c. demographic
markets to farmers through farm supply d. psychographic
dealers and cooperatives decides to sell
current products to home gardeners through 38. A marketing expert said that he could have
lawn and garden shops. This decision is an advertised a brand of soap as a detergent bar
example of for men with dirty hands, but instead chose to
advertise it as a moisturizing bar for women
a. market penetration with dry skin. This illustrates the marketing
b. market development principle known as
c. product development
d. diversification a. product positioning
b. sales promotion
c. cannibalization
32. A manufacturer who refuses to sell to dealers
d. deceptive advertising
its popular line of office copiers unless the
dealers also agree to stock the manufacturer’s 39. Ethel suddenly realizes that she is out of paper
line of paper products would most likely be towels. She remembers that she last bought
guilty of which of the following? Calla Towels, so she stops at the store and
picks up another roll of Calla on her way home
a. Deceptive advertising from work. In this example, Ethel uses what
b. Price discrimination form of information search in her decision
c. Price fixing process?
d. Tying contracts
a. Limited problem solving
b. Extended problem solving
33. Which of the following best describes the
c. Internal information search
process of selecting target markets in d. Compensatory information search
order to formulate a marketing mix?
40. Which of the following is true of price
a. Strategic planning skimming?
b. Product differentiation
c. Market segmentation a. It requires intermediaries to provide
d. Marketing audit kickback payments.
 b. It calls for relatively high prices to start,
reducing over time.
c. It is reserved for products in the late
stages of the product life cycle.
d. It works best in situations with highly
elastic demand.
41. ABC Company agrees to pay a certain amount
of a retailer’s promotional costs for advertising
ABC’s products. This is an example of
a. cooperative advertising
b. reminder advertising
c. comparison advertising
d. slotting allowance
42. Which of the following lists the correct order of
the steps of the target marketing process?
a. Segmentation, positioning, and targeting
b. Targeting, segmentation, and positioning
c. Positioning, targeting, and segmentation
d. Segmentation, targeting, and positioning
43. Which of the following is not the differences
between business and consumer markets?
a. Market structure and demand
b. Nature of the buying unit
c. Satisfaction of needs through purchases
d. Types of decisions
44. Which of the following most accurately
describes agent wholesalers?
a. They take title to goods that they sell to
other intermediaries.
b. They do not take title to goods that they
sell to other intermediaries.
c. They take title to goods that they sell to
final consumers.
d. They do not take title to the goods that
they sell on commission to final
consumers.
45. Which of the following lists the correct
sequence of steps in the consumer decision-
making process?
a. Need recognition, evaluation, purchase
decision, invoked set, postpurchase
behavior
b. Felt need, response to stimulus, evaluation
of alternatives, postpurchase decision,
purchase behavior
c. Alternative invoked set, need recognition,
purchase decision, postpurchase
evaluation
d. Information search, need positioning,
evaluation of alternatives, product
purchase decision, postpurchase
satisfaction
46. Maligaya Households is the largest home
improvement retailer in Philippines. Because
of its size and market power, the firm can insist
upon desired product features, delivery
schedules, and price points from its suppliers.
Maligaya Households is
a. a primary intermediary
b. an agent retailer
c. a multilevel distributor
d. a channel captain
47. While writing a marketing plan, Melanie
decides that the marketing objective should be
“to increase market share by 5 percent.” A
weakness in this objective is that
a. it is not measurable
b. it should be related to brand image rather
than market share
c. it does not specify a time period
d. if the product is an industrial product, the
objective should specify product quality
48. Kimberly, regional manager at Garcia
Solvents, Inc., compares last quarter’s sales
with the levels projected in the firm’s marketing
plan. She identifies three solvent brands
whose sales are below projections and
initiates a series of inquiries to discover the
reasons for the shortfall. Ms. Kimberly is
engaged in which stage of the strategic
marketing process?
a. Environmental scanning
b. Opportunity analysis
c. Planning
d. Implementation
49. Gabriella’s is an local producer of fashion
jeans. In this highly competitive market, the
firm wishes to match the advertising efforts of
its competitors by achieving a share of voice
(promotion) which is roughly equal to its share
of market (sales). This approach to
promotional budgeting is called
a. all you can afford
b. percent of sales
c. allocation per unit
d. competitive parity
50. Dad’s Cookies is launching a new cookie,
called the "Puca- Puca chocolate cookies" in
the market, if you are the product manager
and you suggested a pricing strategy because
the company's goal is to attract a large number
of customers quickly and win the market
share. Then, you are aiming for:
a. value based
b. market oriented
c. market skimming
d. market penetration
PREPARED BY:
AGNES R. RAMO
Subject Teacher
CHECKED:
ETHEL P. FABIA
SHS Focal Person
NOTED:
JUPITER L. PETILLA, Ed.D.
Principal IV