Business and Economics

Marketing Management Department

Model exam for Marketing Management students
Prepared by; Teshome E(MA) & Adisu E(MA)

1. Which of the following alternative involves taking an existing product in the market place and
substantially changing its image or its target market?
A. Product line extensions D. Product improvement
B. New category products E. Product repositioning
C. New to the world products
2. All of the following are the importance of branding to the customer except the one.
A. Quality stability D. Price stability
B. Prestige E. Building a Corporate image
C. Product identification
3. Why company develop new product?
A. To provide new value to the customer
B. To improves living standard of society
C. New products give the company a competitive advantage over its competitors.
D. Fast changing environment and consumers taste
E. All of the above
F. None of the above
4. Which of the following is a requirement for good brands?
A. Meaningful D. Suitable for international markets
B. Recognizable and memorable E. All of the above except C
C. Capable of being legally unprotected
5. Which of following is false about customer based brand equity?
A. It is the power of a brand lies in what customers have learned, felt, seen, and heard about
the brand as a result of their experiences over time.
B. The power of a brand lies in what resides in the minds and hearts of customers
C. It used to show how a brand’s success can be directly attributed to customers’ attitudes
towards that brand.
D. It define differential effect that brand knowledge has on consumer response to the
marketing of that brand
E. All of the above
F. None of the above
6. From the following which one is indicate consumers’ perception about a brand, as reflected by
the brand associations held in consumer memory?
 A. Brand awareness C. Brand image
B. Brand knowledge D. Brand recognition
7. Among the following one is the act of designing the company’s offer and image that it
occupies a distinct and valued place in the target customers’ mind:
A. Brand positioning C. Customer based brand equity
B.Brand value D. Brand knowledge
8. Which criteria of choosing brand Element measures the extent to which the brand element
adds to the brand equity for new products or in new markets for the brand?
A. Memorable C. Meaningful
B. Likable D. Transferable
9. A consumers’ ability to confirm prior exposure to the brand when given the brand as a cue is;
A. Brand recall C. Brand Awareness
B. Brand recognition D. Brand Equity
10. which of the following is the marketing strategy adopted when the product reaches the
maturity stage of product life cycle, and profits have fallen drastically?
A. Brand Reinforcement C. Brand Portfolio
B. Brand Revitalization D. None of the above
11. from the general guidelines for choosing a brand name, which relates to ‘brand name could
be taken from known words having no link’?
A. Suggestive C. Compound
B. Arbitrary D. Classic
12. Which relates to the highest level of the hierarchy technically always consists of one brand?
A .Individual brand C. Corporate brand
B. Family brand D. Modifier brand
13._______ can be defined as public sponsorship of activities related to sports, art,
entertainment, or social causes.
A. Advertising C. sales promotion
B. Event Marketing D. Online Marketing
14. When a new brand is combined with an existing brand, it referred to as;
A. Brand Extension C. Parent Brand
B. Family Brand D. Sub-Brand
15. What is the reason behind brand Revitalization?
A. Increased Competition D. Technology
B. Globalization E. All of the above
C. Brand Relevance F. None of the above

16. Which of the following is the study of the processes of involved when individuals or groups
select, purchase, use, or dispose of products to satisfy needs and desires?
 A. Life style marketing C. Marketing information
D. Consumer behavior
B. Marketing research

17.In case of ______,consumers have already establish basic criteria for evaluating the product
category and the various brand in the category , but have not fully established preferences
concerning a select group of brands.

A. extensive problem solving C. Routinised Response Behavior

B. Limited Problem Solving D. Passive problem solving

18. Motivation is produced by a state of tension, which exists as the result of_____
A. Environmental forces C. Unfulfilled needs
B. Peer pressure D. Satisfied desires

19. The emphasize in the definition of personality is on inner characteristics, which are?

A. Those characteristics of an individual that is not readily apparent to others

B. those characteristics which individual try to hide from others

C. Those characteristics that distinguish one individual from others

D. Those characteristics that make one individual similar to others

20. Which of the following is false about perception?

A. Study of perception is largely the study of what we add to, or subtract from, raw
sensory inputs to produce our own private picture of the world.
B. Perception can be described as how we see the world around us.
C. Every consumer will perceive stimulus similarly.
D. Perception is defined as the process of an individual receiving, selecting, and
interpreting environmental stimuli involving the five senses.

21. If you usually listen to the 6 o’clock news while smelling dinner as it being prepared, you
would tend to associate the news with dinner, and eventually the sound of 6 o’clock news alone
might cause your mouth to water even if dinner was not prepared. This is known as ___

A. Instrumental conditioning C. Conditional learning

B. Classical conditioning D. Behavioural learning
22. Which of the following statement is false regarding attitude?

A. attitude is a learned predisposition to respond in a consistently favorable or unfavorable

manner with respect to a given object.
B. Attitudes describe a person’s relatively consistent evaluations, feelings, and tendencies
towards an object or idea.

C. It puts people into a frame of mind of moving toward or away from them.

D. Attitudes occur within a given situation and are not affected by that situation.

23. Which of the following categories of adopter has capable of absorbing the financial and
social costs of adopting an unsuccessful product?

A. Innovator C. Early majority

B. Early adopters D. Late majority

24. Which of the following cultural factor that affect consumer behavior and marketing strategy?

A. religion B. Race c. norms D. Values E. all of the above

25. All the following is true about the reference group and family influence except__

A. Reference groups consist of all of the groups that have a direct (face-to-face) or indirect
influence on a person’s attitudes or behavior
B. Aspirational groups are those whose values or behavior an individual rejects.

C. The family is the basic decision-making unit.

D. Family members who provide information to other members about a product known as
Gate keepers

26. Which types of advertising undertaken by manufactures of branded goods, for which,
advertising messages is communicated to consumers all over the country?

A. International Advertising B. Regional Advertising C. Local Advertising

D. National Advertising E. Consumer Advertising

27. Which one of the following is among the primary objective of conducting
marketing analysis?

A. To learn the stakeholder in the market

B. To identify the competitor in the market

C. to understand the dynamic trend in the market

D. To propose market penetration strategy

28. Which of the following consumer oriented sales promotion techniques is offer of an item of
merchandise or services either free or at a low price that is an extra incentive for purchasers?

A. Couponing B. Bonus Packs C. premium D. sweepstakes

29. Direct marketing activity always plays a major role in integrated marketing communication
channels. For example in direct marketing and sales promotion relationship, marketers usually
use

A. Website to manage response and opinion from the public

B. Direct email to announce the end of season sales or discounted the price
C. Telemarketing to help sales people concentrated on selling effort
D. Email to spread out the advertisement of new products

30. Give the following liner equation y= a+bx ,where x is the result of an aptitude test and y
is the job performance then aptitude test has
A. a positive effect on job performance
B. a neutral effect on job performance
C. a negative effect on job performance
D. an unknown effect on job performance
31. The advantage of personal selling are as follows except:

A. Tailoring of the massage

B. Tackling to many competitor
C. Allowing immediate feedback
D. Allowing for two way communication

32. The goal of IMC Program is to :

A. Control all facets of a product distribution
B. Communicate with customers primarily through advertising
C. Have all of a company’s marketing and promotional activities project a consistent unified
image to its customers
D. Have complete control over all the channel partners in distribution channel
E. Create brand image so strong that it destroys all of its competition
33. Among the following stage which stage differentiate the information processing model from
others model?
A. Presentation B. Attention C. Behavior D. Retention E. all of the above

34. Which of the following statement false regarding Licensing?

A. Licensing is an agreement that permits a foreign company to use industrial property

 B. Licensing works well when transportation cost is high
C. Licensing is only restricted to tangible products
D. It allows a company to spread out its R&D and investment costs, while enabling it to
receive incremental income with only negligible expenses
E. None of the above

35. All of the following factors encouraging product standardization except:

A. Economies of scale in production.

B. Economies in product R & D.
C. Reduction of the world market place/economic integration.
D. Local competition
E. None of the above

36. The most popular Transfer pricing methods used both in more developed and less developed
countries:

A. Transfers at direct manufacturing costs

B. Transfer at direct manufacturing cost plus a predetermined markup to cover additional
expenses
C. Market-based transfer price
D. Arm’s length price as a basis for determining transfer price
E. B&C

37. Which of the five major promotional tools includes building up a positive corporate image
and handling unfavorable stories and event?

A. Personal selling B. Sales promotion C. Direct marketing D. Public relations

38. Which one of the characteristics of Culture refers that, people in different cultures have
different ideas for same object is?

A. Culture is prescriptive C. Culture is subjective

B. Culture is socially shared D. Culture is learned
39. Which one is not true about International Marketing?

A. The Marketers can face only one currency

B. The Marketer’s face many languages, nations and cultures
C. It have multiple and unstable business environments
D. None of the above
 40. Means that a product originally designed for a local market is exported to other countries
with virtually no change, except perhaps for the translation of words and other cosmetic
changes:

A. Product adaptation C. Product standardization

B. Product modification D. product customization

41. Which is the simplest of the many types of countertrade, is a one-time direct and
simultaneous exchange of products of equal value?

A. Compensation C. Switch trading

B. Barter trade D. Clearing agreement

42. One of the following intermediaries has NO legal ownership of the product in the market.
Which one is it?

A. Wholesaler C. Agent
B. Retailer D. Producer

43. Which of the following international marketing entry strategy advocated due to free flow of
capital across national borders because capital will get highest rate of return?

A. Foreign Direct Investment

B. Manufacturing
C. Assembly Operations
D. Licensing

44. Which of the following pricing policy allows the local subsidiary or affiliates to establish
whatever price they consider to be most appropriate for local conditions, and no attempt is made
to coordinate prices from country to country?

A. Polycentric pricing policy

B. Geocentric pricing policy
C. Ethnocentric pricing policy
D. All of the above

45. Ato Bekele is a marketing manager of ABC company. He said that, “we must select the
market segment which is the most profitable important enough to serve”. This statement
indicates that:
 A. Market segment must be measurable C. Market segment must be substantial
B. Market segment must be accessible D. Market segment must be actionable
46. ABC company produce and distribute more uniform and standard product, if you are a
marketing office of the company what type of target marketing strategy do you recommended?
A. Differentiated C. Concentrated
B. Undifferentiated D. Micro marketing strategy
47. During which stage of the product life cycle the product has rapid market acceptance and
increasing profit?
A. Introduction C. Maturity
B. Growth D. Decline
48. In which marketing strategy a marketer can evaluate varies segments?
A. Target marketing D. All
B. Segmenting market
C. Positioning market
49. While trying to implement their promotion strategy for international markets firms face legal
restriction in foreign markets and hence decide to customize their promotion to differ
company requirements. Which of the following statement best describe the above situation?
A. apply globally standardized communication strategy
B. the world is big market
C. acts globally think locally
D. think globally act locally

50. The dominant method of distributing convenience product is

A. selective distribution C. exclusive distribution
B. direct distribution D. intensive distribution
51. _______________ approaches the task on basis of the difference between industries
and organization such as size, geographic location or product application.

A. Micro segmentation B. Macro segmentation

C. Business market D. Consumer market

52. All are Micro variable basis of segmentation. Except?

A. Organizational variable B. Purchasing situation /phase

C. Industry characteristic D. Customer interaction need

53. In business marketing, after Selecting target market segments, manufacturers use a strategy
which is with a product that can be tailored to meet the needs of different segments.

A. Market Specialization C. single segment concentration

B. Selective Specialization D. None of the above

54. Product planning is particularly important in industrial marketing for the following reasons:

A. Increased Competition B. Greater Sophistication in Industrial Purchasing

C. Derived Demand D. Energy Saving Requirements E. All of the above

55. _______________are industrial customers which are the largest purchasers of goods and
services in any country.

A. Organizational equipment material’s B. Institutional customers

C. Government buyers D. Universities and collage

56. Among industrial product classification one uses the marketing implication of those products
like time taking negotiation because of the heavy expenditure associated with the equipment.
A. Industrial Services B. Light Equipments
C. Consumable Supplies D. Heavy Equipment Products
57. An increased in the demand for air travel will lead to rise in the demand for airplane pilots.

A. Cross elasticity of demand B. Joint Demand

C. Derived demand D. Reverse elasticity of demand

58. _____________are organizational members who control the flow of information that reach
other people involved in the purchasing process.

A. Buyers' B. Gatekeepers

C. Initiators D. Influencer

59. It is one of factors affecting the industrial buyer behavior in terms of objectives, procedures,
organizational structures and level of competition and some other factors?
 A. Inter personal factors B. Individual factor

C. organization factors D. centralized buyer units

60. ______________ describes all marketing activities not directed towards the household or the
ultimate consumer.

A. Business market B. Consumer market C. Government customers D. Institutional buyers

61. When price increase can cause an increase in demand, and a price decrease would be
followed by adecrease in demand. This is _______________

A. Price sensitivity B. Price insensitivity

C. Reverse elasticity of demand D. Cross elasticity of demand

62. Which service marketing triangle keep promise?

A. Internal marketing C. External marketing
B. Interactive marketing D. B and C
63. Which one is wrong statement regarding to service and culture.
A. Culture is important when we consider international services marketing which taking the
services from one country and offering them in other countries.
B. Culture plays a very less role in the perceptions, behavior, and expectations of the
customer.
C. Culture is important in services marketing because of its effects on the ways customers
evaluate and use services.
D. Culture also influences the way companies and their service employees interact with
customers.
64. Which one is wrong statement regarding to Impact of Technology on Services.
A. Technology create potential for new service offering.
B. Technology increases exclusively employ ability.
C. Technology enabling the global reaches of service.
D. Technology creates new way to deliver existing service.
65. Which one is representing the difference between desired service and the level of service
considered as adequate and can expand and contrast with in a customer.
 A. Service encounter C. Customer satisfaction
B. Zone of tolerance D. Customer perception
66. Which one is an informative representation of an object, person or system.
A. Perception C. Model
B. Expectation D. Satisfaction
67. Which one is the best solution to not knowing the answer to a question that a company face in
the customer service challenge?
A. Adopting visual engagement tools
B. Data about customers can be gathered from print media, television, telephone, and social
media.
C. Acknowledge the question, request time to find the answer, and guarantee a call back as
soon as possible.
D. Adding a personal touch that will help to exceed customer expectations.
68.The different levels of staff and their interactions with customers are important and need to be
managed. This statement implies about that the service marketing mix element of __
A. Price C. Physical evidence
B. Product D. People
69. Which service level is a blend of what the customer believes can be and should be?
A. Adequate service level C. All
B. Desired service level D. None
70. Which one is the customer service challenge that the company might have to face?
A. Exceeding Customer Expectations C. Not knowing the answer to a question
B. Absence of right tools D. All
71. It is the 3rd step that consumer decision making process lies.
A. Information search C. Need recognition
B. Purchase service D. none
72. Which one is correctly match?
A. Physiological needs are needs for prestige, success, accomplishment and self-esteem.
B. Social needs are needs for affection, friendship and acceptance.
C. Ego need includes protection and security.
D. Safety needs are biological needs such as food, water, and sleep.
73. Assuming that sales forecasted for 2025 for coffee was 18000cuntals per year and
actual sales for the coffee was 15000cuntals and smoothing constant of 0.70, what will be sales
forecasted for the year 2024? FD(t+1)= FDt +[] (ADt-FDt)
A. 15900 C. 15750
B. 15890 D. 15100
74. Which of the following statement best explain branding?
A. it is the process of bundling favorable perceptions about a brand
B. it is the function of naming new products
C. it focuses on the physical and tangible attributes of a product
D. it is the process of creating products that satisfy customers need
75. Types of E-business that involve a manufacturer and wholesaler, or wholesaler and
retailer is
A. B2C C. C2C
B. B2B D. B2G

76. According to BCG matrix a strategic business unit having high growth potential and
low relative market share is called
A. star C. dog
B. cash cow D. Question mark
77.The microenvironment consists of
A. the political environment
B. the cultural environment
C. the competitive environment
D. the technological environment
78. Strategic management is interdisciplinary; it might require changing organizational
culture hence is involved
A. economics C. organizational behavior
B. information technology D. finance
79. Which of the following is NOT a typical characteristics of agricultural products
A. Elasticity of supply C. perishability
B. seasonality
D. time lag
80. Since strategic marketing management requires firms to assess their environment and take
proactive decision to exploit opportunities, hence strategic marketing management involves;
A. entrepreneurship C. online analysis
B. multidiscipline D. global realities
81. If you are required to prepare documentation for the export of animal and food product
you would process sanitary and health inspection of the export item and get
 A. consular invoice C. import license
B. Quarantine certificate D. insurance certificate
82. Since employee satisfaction and customer satisfaction are inextricably linked,
service providers must be enabled with the required level of skills, abilities, tools and
motivations. This is reflection of ;
A. interactive marketing C. relation marketing
B. internal marketing D. extranet marketing
83. Assume you are just hired as a marketing manager for a given firm and the
CEO requested you to identify the strategic group of the firm. What criteria do you
use to the same?
A. Firms operating in the same geographic market and having similar
distribution strategies
B. Firms producing similar products, selling to the same market, at similar
range of price and have similar assets
C. Firms producing similar product line and adopting diversification strategy
D. Firms producing any products and selling on the same price range like ours
84.safe and reliable transportation provided by rail travel service, career enhancement
opportunities provided by learning institution and rest and recuperation provided by hotel
are example of
A. Service as an organization
B. Service as core product
C. Service as product augmentation
D. Service as product support
85. Which of following statement is correct
A. At the growth stage of product life cycle sales is declining
B. At the growth stage of product life cycle sales has leveled off
C. At the growth stage of product life cycle sales is stagnant
D. At the maturity stage of product life cycle sales reach peak
86. Cheverolet, an American car brand while trying to enter into middle east market,
assessed the need to customize its cars’ engines to sustain the hot weather in the region.
Chevrolet is trying to complying with:
A. Legal requirement C. Climatic requirement
B. Technological requirement D. Economic requirement

87. Which of the following is not true

A. One goal of marketing is to keep and grow current customers and by delivering
value and satisfaction
B. Marketing is basically engage in serving customers
C. Marketing, more than any other business function deals with suppliers
D. One goal of marketing is to attract new customers by promising superior value
 88. Which of the following is NOT a qualitative technique of making forecast

A. Time series analysis

B. Delphi method
C. Panels executive opinion
D. Product testing and test marketing

89. What are the main advantages associated with geographic based sales organization
structure:

A. Specialization of selling skill

B. Relatively low cost
C. Greater attention given to new product
D. Good knowledge of application

90. Extranet are:

A. Limited to information to pertinent to the company, often proprietary and

sensitive information
B. Any individual with dial up access or LAN
C. Authorized group from collaborating companies
D. Authorized employees only

91. is set of interdependent organization involved in the process of making a

product or service available for use or consumption by the consumer or business users:

A. Marketing channel C. Market participant

B. Piggy back D. Jobber
92. Which of the following new product organization approach requires to move the
new product from the idea generation stage to the product introduction stage complete with
service, technical assistance, and performance feedback

A. New product committee C. New product department

B. Product manager D. New product venture team
93. Which of the following is the first step in the personal selling process

A. Presentation C. Prospecting
B. Pre approach D. Approaching
94. If brewery company introduce non alcoholic drink to enter into country that does

not allow the production of alcoholic it trying to

 A. Technological management
B. legal requirement
C. Climatic requirements
D. Physical requirements
95. Which of the following is true about structured interviews ?

A. less reliable than unstructured

B. it gives interviewers more it deciding on the order and format questions during interview
C. It is more reliability than unstructured
D. It varies question form and type for each applicant

96. Imagine that you target to customer based on intent to buy and not likelihoods of buy

A. store signage
B. search engine optimization
C. direct marketing
D. billboards
97.A type of sampling approach with the researcher ask respondent to promote the name of
additional respondents
A. convenient sampling
B. snow ball
C. quota
D. simple random sample
98. Which of the following advantage of focus group researchers

A. integration of data from focus group is objective

B. the work well with respondent
C. focus group respondent represent all population
D. the cost per participant is low in focus group’s
99. The abilities to perform special task that involve certain method of

practice

A. technical skills
B. conceptual skill
 C. interpersonal skill
D. communication skill
100. A type of studies which measures population only one point in time are called

A. cross sectional studies

B. longitudinal studies
C. panel studies
D. omnibus studies
Answer

1.E 21. B 41.B 61. C 81. B

2.E 22. D 42.C 62. B 82. B
3.E 23.A 43.A 63. B 83. C
4.E 24. E 44.A 64. B 84. B
5.E 25. D 45.C 65. B 85. D
6.C 26. C 46.B 66. C 86. C
7.A 27. C 47.B 67. C 87. C
8.D 28. C 48.B 68. D 88. A
9.B 29.B 49.D 69.B 89.B
10.B 30.A 50.D 70.D 90.C
11.B 31.B 51. B 71.D 91.A
12.C 32.C 52. C 72.D 92.D
13.B 33.D 53. D 73.A 93.C
14.D 34.C 54. E 74.B 94.B
15.E 35.D 55. C 75.B 95.B
16.D 36. E 56. D 76. D 96. C
17.B 37.D 57. C 77.C 97.B
18.C 38.C 58. B 78.C 98.D
19.C 39.A 59.C 79.A 99.A
20.C 40.C 60.A 80.C 100.C