MODEL EXAM FOR GC STUDENDTS

1. The type of customer market that buys goods and services for self-gratification or final
consumption by the ultimate user.
A. Consumer Market
B. Government Market
C. Industrial Market
D. Reseller Market
2. Which one of the following is not a type of online business?
A. Amazon
B. Alibaba
C. Face book
D. None of the above
3. Suppliers’ selection of business buyers influenced by all of the following factors except
one. Which one is it?
A. Convenience
B. Delivery
C. Technology
D. None of the above
4. Companies provide superior value by tailoring its products to match exactly the needs of
targeted customers. This statement is appropriate for one of the following strategy.
A. Cost leadership
B. Customer intimacy
C. Operational excellence
D. Product leadership
5. Which one of the following marketing mix element represents the value of a product for
both the seller and buyers?
A. Place
B. Price
C. Product
D. Promotion
6. One of the following is wrong about benefit of doing business online. Which one is it?
A. Global Access
B. Improved Client Service through lesser flexibility
C. Cost Savings
D. Increased Professionalism
7. Individuals who are assigned to select vendors and complete the purchasing transaction
by formal authority are:
A. Buyers
B. Deciders
C. Influencers
D. Initiators
8. As a marketing strategist; why you want to analyze SWOT?
A. To help decision makers share and compare ideas.
B. To brings clear and common understanding of factors for success.
C. To organize the important factors linked to success and failure in the business
world.
D. All of the above
9. A market coverage strategy in which a firm goes after a large share of one or a few sub
markets instead of going after a small share of a large market is:
A. Concentrated marketing
B. Market specialization
C. Product specialization
D. Segment specialization
10. The dimension of e-commerce that enables commerce across national boundaries is
known as:
A. Interactivity
B. Global Reach
C. Richness
D. Ubiquity
11. Which one of the following industrial customers purchases industrial products for use
other than selling directly to ultimate customers?
A. Commercial Enterprises
B. Government Agencies
C. Institutional Customers
D. All of the above
12. What is the key idea when using a niching strategy?
A. Customer leadership
B. Material excellence
C. Operational excellence
D. Specialization
13. Which one of the following is not feature of introduction stage of product life cycle?
A. Productivity is low since demand is low
B. Sales volume is high
C. High amount of money is placed in announcement
D. Expenses are high
14. The E-commerce domain that involves business activity initiated by the consumer and
targeted to businesses is known as:
A. Business to Business (B2B)
B. Consumer to Consumer (C2C)
C. Consumer to Business (C2B)
D. Business to Consumer (B2C)
15. When your competitors rise their price and you keep the same your; and when your
competitors lower their price and you are going to lower yours’ more than they do. This
is a/an:
A. Aggressive pricing strategy
B. Co-operative pricing strategy
C. Cost-plus pricing strategy
D. Dismissive pricing strategy
16. Which one of the following can be an example of strengths for a company?
A. Committed employees
B. Higher costs
C. Limited distribution
D. Limited management skills
17. One of the following is process of arranging a market offering to occupy a clear,
distinctive, and desirable place relative to competing products in the minds of target
consumers. Which one is it?
A. Differentiation
B. Marketing segmentation
C. Positioning
D. Segment targeting
18. Which one of the following is the sale and buy of goods and services using handheld
devices such as mobile phones?
A. Mobile banking
B. Mobile payment
C. Mobile shopping
D. All of the above
19. Developing strategies, policies, and programs to meet the needs of different market
segments profitably and to give the company a distinct competitive advantage is:
A. Market analysis
B. Market selection
C. Market targeting
D. Marketing management
20. All of the following are characteristics of a good mission statement except one. Which
one is it?
A. Distinctive competencies
B. Indistinguishable
C. Market oriented
D. Realistic
21. Changing the customer's attitudes or perceptions toward product attributes is usually a
job for:
A. Informative advertising
 B. Persuasive advertising
C. Reminder advertising
D. Demand-oriented advertising
22. A purchased card that contains a limited value and that can be used for making purchases
from retailers is:
A. Credit Card
B. Debit Card
C. Prepaid Card
D. Smart Card
23. This business to business pricing approach seeks to understand customers’ needs before
pricing the offering according to those needs in order to generate a long term relationship.
This is referred to as,
A. Discount pricing
B. Geographical pricing
C. Relationship pricing
D. Value in use pricing
24. Which of the following is not one of the value disciplines proposed by Treacy
and Wiersema?
A. Customer intimacy
B. Operational excellence
C. Price leadership
D. Product leadership
25. Which of the following terms best describes the environment that includes the forces
close to the company that affect its ability to serve its customers - the company, suppliers,
marketing channel firms, customer markets, competitors, and public?
A. Global Environment
B. Macro Environment
C. Micro Environment
D. Networked Environment
26. Which of the following describes e‐ commerce?
A. Doing business electronically
B. Doing business
C. Sale of goods
D. All of the above
27. The difference between what the customer gains from owning and using a product and
the costs of obtaining the product is called:
A. Customer Quality
B. Customer Satisfaction
C. Customer Value
D. Perceptual Relationships
28. Buyers are most powerful than sellers in all of the following conditions except one.
Which one is it?
A. When there are many small sellers of the particular product and the buyers are
large and few in number.
B. When the buyer purchases in large quantities and uses its power to bargain for
price reductions.
C. When the supplier industry depends on the buyers for a large percentage of total
orders.
D. None of the above
29. When consumers share a strong need that cannot be satisfied by an existing product in the
market is known as:
A. Latent demand
B. Negative demand
C. Overfull demand
D. Unwholesome demand
30. Which one of the following concepts is a useful philosophy in a situation when the
product’s cost is too high and marketers look for ways to bring it down?
A. Marketing concept
B. Product concept
C. Production concept
D. Selling concept
31. Which one of the following competitive strategy does the worst?
A. Overall cost leadership
B. Middle-of-the-road
C. Focus
D. Differentiation
32. All of the following are elements of demographic segmentation except one. Which one is
it?
A. Age segmentation
B. Income segmentation
C. Life cycle segmentation
D. Lifestyle segmentation
33. If a company wants to build a good "corporate image," it will probably use which of the
following marketing communications mix tools?
A. Advertising
B. Public relations
C. Direct marketing
D. Sales promotion
34. Determining the promotion budget on the basis of financial availability of capital is
characteristic of which of the following budget methods?
A. A. Affordable method
B. Objective-and-task method
C. Percentage-of-sales method
D. Competitive-parity method
35. The characteristic of being produced and consumed simultaneously is known as_.
A. Perishability
B. Homogeneity
C. Inseparability
D. Intangibility
36. Which one of the following is not correct about research?
A. Research helps to develop a scientific critical attitude
B. Research is luxury and mere information gathering
C. Research is not complete until it’s communicated to those who may benefit from it
D. Research is driven by curiosity, needs, profit and opportunity
37. Which one of the following statement is Not true about licensing?
A. It is an agreement between a licensor and license
B. It is an arrangement which grants the rights to tangible property to the licensee for a
specified period of time
C. It is an agreement in which the licensor receives a royalty fee from the licensee
D. Licensing amounts to exporting a and importing intangibles
38. Which one of the following is not a type of qualitative sales forecasting methods?
A. Jury of Executive opinion
B. Projection of Past Sales
C. The Delphi Technique
D. Survey of customers buying plan
39. Customer satisfaction can be defined by comparing
A. Predicted service and perceived service
B. Predicted service and desired service
C. Desired service and perceived service
D. Adequate service and perceived service
40. Which one of the following statements is wrong about stage-1 of International product
life cycle characteristics?
A. This stage is known as a “pioneering” or “international introduction” stage.
B. The volume of export is increasing because the product sold in both innovative country
& other advanced Nations.
C. The level of competition is high with other advanced nations Firms
D. Production costs are declining because of Economies of Scale to the innovative firm
41. All of the followings are a focus Areas of Sales Management Except one?
A. Creating a company-driven culture.
B. Segmenting markets in meaningful ways.
C. Communicating.
D. Information gathering
42. All of the following statements are describing the characteristics of a sales organization
Except one?
A. A sales organization subsists of a group of people who handle different activities.
B. In a sales organization, tactical manager is the head of the sales organization
C. It specifies the responsibilities and duties of the salesperson and also co-ordinates their
activities with other departments.
D. A sales organization works to achieve the sales objectives.
43. . ……………. Is defined as the caring, individualized attention that the firm provides its
customers
A. Empathy
B. Responsiveness
C. Sympathy
D. Assurance
44. A research problem statement includes all of the following, except?
A. what new data you need in order to shed light on the problem you have selected
B. A perceived discrepancy exists between what is and what should be
C. the size, distribution and severity of the problem
D. A brief description of any solutions to the problem that have been tried in the past
45. Sales recruitment is a costly process, and poor selection results in____________
A. Higher-performance in sales activities
B. Reduction in additional training needs
 C. A distraction of management time as more supervision is needed
D. Lowering a staff turnover
46. Which one of the following is not an advantages of indirect channel for international
marketing?
A. The manufacturer firms incurs-no-start-up cost for the channel
B. The manufacturer is relieved of the responsibility of physically moving the goods
overseas.
C. The channel improves communication
D. The channel is simple and inexpensive.
47. Which one of the following is not a key part of a job description?
A. job identity,
B. job summary
C. skill requirements
D. Working conditions

48.Which one of the following is not a feature of research design?

A. It is a plan that specifies the sources and types of information relevant to the research
problem
B. It is strategy specifying which approach will be used for gathering and analyzing the data
C. It also includes the time and cost budgets since most studies are done under these two
constraints.
D. It provides for the collection of relevant evidence with minimal expenditure of efforts,
time and money
49. The gap between consumer expectation and management perception is called_
A. The service design & standards gap
B. The knowledge gaps
C. The communication gaps
D. The service performance gap
50. Among the following one is not an importance of Compensation in business
organization?
A. It gives the organization hopelessness to think of expansion and growth.
B. It is hallmark of organization’s success and prosperity.
C. It brings peace and good relationship between employer and employees.
 D. All of the above
51. All of the following factors are basic determinants to target market selection on
international marketing decisions , Except ________?
A. Market Size and Growth
B. Political Conditions
C. Geographic Indicators
D. None of the above
52. Which one of the following is correct about features of good report writing?
A. All points in the report should be clear to the intended reader.
B. All information should be correct and supported by evidence.
C. All relevant material should be included in a complete report.
D. All of the above .
53. To maximize the performance of their field sales forces, companies________________
A. Review expense accounts
B. Develop a strong marketing plan
C. Retrain in sales techniques
D. Develop a strong advertising plan

54. All of the following are firm Produced factors that affects consumer expectations Except
one
A. Promotions
B. Service personnel
C. Time constraints,
D. Pre-service waiting.
55. Which one of the following is not an outcome of international marketing?
A. It creates economic isolationism between a nation.
B. It offers new opportunities and challenges.
C. It is important to manage the globalized world.
D. It improves the standard of living of the countrymen
56.Prospecting is the life blood of sales because______________
A. It identifies potential customers
 B. It identifies potential suppliers

C. It identifies potential producers

D. It identifies potential share holders

57. An approach that encompasses a wide range of relationships, not just with customers, but
also those that organizations develop with suppliers, regulators, government, competitors,
employees, and others, is referred to as
A. Relationship marketing
B. Market exchange
C. Service failure
D. Shared responsibility
58. -------------------- implies editing, coding, classification and tabulation of collected data so that
they are amenable to analysis.
A. Data preparation
B. Data processing
C. Data editing
D. Data presentation
59. The Company is subject to the risks of doing business internationally, because:
A. Unexpected changes in regulatory requirements
B. Fluctuations in foreign currency exchange rates
C. Imposition of tariffs and other barriers and restrictions
D. The presence of unique natural resources
60. The level of service that the customer hopes to receive about the performance of the
service is called.
A. Adequate service
B. Desired service
C. Predicted service
D. Zone of tolerance
61. The service guarantee must be about things that customers care about! This reflects
which of the following characteristics of a good service guarantee?
A. Unconditional
B. Easy to Understand
C. Meaningful
D. Easy to Invoke
62. Which one of the following is not true about Perception:
 A. Perception is a complex process
B. Perception is an objective process
C. It is an intellectual process
D. Perception is broad in nature
63. Which one of the following is true about Two- Tiered Pricing Policy?
A. It will use an ethnocentric approach
B. It will use a geocentric approach to international marketing
C. It follows a polycentric approach to international marketing
D. None of the above

64. Service failure may be occur because of the following factor Except one
A. The service may be unavailable when promised.
B. It may be delivered too slowly
C. The outcome is poorly executed.
D. Employees may be well-mannered.
65. Which one of the following is not referred as benefits of logistics in marketing
management?

A) Bering price stabilization in the market

B) Creating time and place utility
C) Improves customer service and reduce total distribution costs
D) Provides prompt response and generating additional sales
E) None of the above
66. The manners in which innovations spread over time to other consumers through
communication across a market is referred as ________

A. New product development process

B. New product branding process
C. Market segmentation process
D. Diffusion innovation process

67. The graphically portraying a firm’s branding strategy that indicates numbers and natures
of common and distinctive brands is

A. Brand Hierarchy
B. Brand-Product relationships
C. Depth of Branding Strategy
D. Product-Brand relationships
68. Which of the following statement is wrong about branding levels?

A. The group of products is given the same brand name in the corporate branding
system
B. Using of a company's name as a product brand name is referred as corporate
branding system
C. Provisions of the same brand name for each product is done in family branding
level
D. Giving each product in a portfolio its own unique brand name is used under
individual brand level

69. Which of the following is true statement?

A. When consumer decision is made in settings away from the point of purchase
brand recognition is important
B. When consumer decision is made at the point of purchase, brand recognition is
important
C. When consumer decision is made at the point of purchase, brand recall is
important
D. When consumer decision is made in settings away from the point of purchase
brand recall is less important

70. Which of the following is wrong statement?

A. It is the result changes in technology, consumer brand preference’s and

product reaches maturation stage in PLC
B. New product development is the development of original products
C. New product development helps the company to increase brand portfolio
D. Companies benefited from their research and development for Product
modifications
E. New product development merely guided by marketing phobia

71. Types test marketing situations that marketers use some selected geographic locations
testing in it termed as

A. Optional test marketing

B. Full-blown test marketing
C. Clustered test marketing
D. Simulated test marketing
E. Controlled Test Marketing
 F.
G.

72. During commercialization marketers must perform all of the following, except_______
A) Conduct advertising campaign for its new product
B) Official launching of the program
C) Conduct evaluation, trail and adoption
D) Conduct existing cost, profits and Market potential
E) None of the above
73. An act of designing the company’s offer and image so that it occupies a distinct and
valued place in the target customer’s minds is referred as _________

A. Brand Positioning
B. Brand targeting
C. Brand naming
D. Brand promotion

74. All of the following is true about positive customer-based brand equity, except

A. Less sensitive to price increases in the brand

B. Less sensitive to withdrawal of advertising support for the brand
C. More sensitive to withdrawal of advertising support of the brand
D. More willing to seek the brand in a new distribution channel
E. None of the above

75. Establishment and maintenance of uniform measurements of produce of agricultural

commodities referred to as ___________
A) Grading of agricultural produces B) product categorizations
C) Mixing of agricultural produces D) Product regulations E) None of the above
76. Pricing strategy which involves calculating all the costs associated with producing and
marketing a product on a per unit basis and then adding a margin to provide a profit is __

A. Market-oriented pricing
B. Cost-plus pricing methods
C. Psychological pricing
D. Customary pricing
E. Branding price
77. All of the following are benefits of ECX (Ethiopia Commodity Exchange) center, except

A. It fosters weak link between two or more business groups

B. It provides valuable public information such as prices and volumes of trade.
C. It supports warehousing, transportation, quality accreditation, financial services,
D. Commodity exchanges can reduce the costs and risks of transacting.

78. Which alternative response hierarchy’s mode applicable in products which possesses
much differentiation among competing brands?

A. The low involvement hierarchy

B. The dissonance hierarchy
C. The attribution Hierarchy
D. The Standard

79. The issue of source power that the receiver’s estimate of the source’s ability to observe
the source’s conformity is _______________

A. Perceived compliance
B. Perceived control
C. Perceived security
D. Perceived concern

80. Michael Ray model of information processing, which of the following model of
alternative response hierarchies more fits for products having very similar characteristics
and complexity?
A. The Standard Learning Hierarchy - Learn → Feel → Do
B. The Low Involvement Hierarchy - Learn → Do → Feel
C. The Dissonance Hierarchy - Do → Feel → Learn
D. The Attribution Hierarchy- Learn → Do → Feel
E. High Involvement Hierarchy - Feel → Learn → Do
81. Which of the following is not true about reasons for the growing of IMC?

A. The effect of the changing environments of marketing regarding technologies

B. Major changes have occurred among consumers with respect to demographics
C. Major changes in marketplace power from manufacturers to retailers
D. Major changes in marketplace power from retailers to manufacturers
 A) The emergency of savvy customers and marketing blogs in marketing
82. Which of the following strategy is highly recommended to use for specialty goods, high
margins and an exclusive distribution territory?

A. Push strategy focusing on consumers

B. Either push or pull strategy applied
C. Pull strategy focusing on consumers
D. Neither push nor pull strategy needed
E. Both pull and push strategy on consumer

83. Which of the following is a type of promotional mix element is a paid form, known by
non- personal and identified sponsor?

A. Advertising
B. Personal selling
C. Direct marketing
D. Sales promotion

84. The marketing principle “Buy one take one or consume X number of products and get Y
free”? type of sales Promotions:

A. Price off promotion

B. Bonus packs
C. coupons
D. Rebate

85. As an advantage of personal selling that the direct interaction helps to provide specific
information for specific problems. Which of the following more fits with this?

A. Allowing for two-way interaction

B. Involvement in the decision process
C. Inconsistent messages
D. Tailoring of the message

86. Personalized advertising is possible?

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

87. Soboka Bar and Restaurant is developing message for its integrated marketing
communication programs. Hence, after analyzing the message the CMO of the Restaurant
 finds out the conclusion drawn has some problem in its brand explanation. Such problems
are referred as __________ problems.

A) Message appeals
B) Message structure
C) Channel factors
D) Rational appeals

88. ___________is not true about the motivation of channel members?

A. Incentives are the true motivations than penalties

B. Channel motivation can be positive or negative
C. Chargebacks are penalties for mal performances.
D. Sanctions are also considered as motivations

89. One of the major divisions is the classification of intermediaries in terms of number of
intermediaries. Which of the following is true about the degree of distributions intensity
called exclusive distribution.

A. Utilizing as specific as possible or perhaps a single line for the for convenience
goods.
B. Utilizing as many outlets as possible for the for convenience goods and services
C. Utilizing more than one outlet per market for the for convenience goods and
services
D. Utilizing only two major out lets per market for the for convenience goods and
services

90. ____________is the process of planning, implementing and controlling the efficient,
effective flow and storage of goods, services and related information from the point of
origin to the point of consumption.

A. Store management
B. Marketing
C. Logistics
D. Transaction
91. Which of the following is primary logistics function?

A. Order processing
B. Warehousing
C. Materials handling
D. Acquisition

92. Which of the following is not marketing – logistics interface activity?

A. Customer service standards

B. Retail location
C. Plant location
D. Pricing

93. Which of the following is true about classifications of transport services?

A. Land transport, road transport and railway transport

B. Water Transport; Air Transport and international transport
C. Road transport, Railway transport and air transport
D. Land transport, Water transport; and air transport

94. Quality of transport may be measured by all of the following, except

A. Availability of service
B. Reliability of service
C. Regularity of service
D. None of the above

95. ____________is the process whereby hospitality companies try to develop a distinctive
and favorable position in the minds of target markets, compared to competitors.

A. Segmenting
B. planning
C. Targeting
D. Positioning

96. Which of the following is not hospitality product

A. Image
B. Facilities/services
C. Geographical locations
D. Tourism Mktm strategies
97. _______is the hospitality product/service which provides a fundamental benefit to the
consumer. Select the best answer.

A. Augmented hospitality products

B. Tangible product
C. specialty product
D. Core hospitality products

98. ________________ refers to a state of need, a condition that exerts a push on the
individual towards certain types of action

A. Perception
B. Motivation
C. Self- image
D. Intention

99. Consumers develop decision-making heuristics to simplify their decision making process.
Such stated collection of rules in marketing termed as

A. The evoked set

B. New consumer journey
C. Journal lists goods
D. Online lists

100. Human beings tend to make sense of reality by looking towards others’
behaviour. Which of the following associated with this sentence?

A. The cognitive approach

B. Attitude
C. Virtual reference groups
D. Reference groups