Bcom Bachelor of Commerce Bachelor of Commerce: Marketing 4 — Questions and Answers
Question 1: The 'Net Promoter Score' (NPS) measures:
- The percentage of promotions converted to sales
- Customer loyalty and likelihood to recommend (Correct answer)
- Return on marketing investment
- Website traffic growth rate
Correct answer: Customer loyalty and likelihood to recommend
NPS gauges customer loyalty by asking how likely respondents are to recommend a company to others on a 0–10 scale.
Question 2: A positioning strategy that targets a specific narrow market segment is referred to as:
- Mass marketing
- Niche marketing (Correct answer)
- Undifferentiated marketing
- Macromarketing
Correct answer: Niche marketing
Niche marketing focuses resources on a well-defined, underserved market segment with specialized needs.
Question 3: Which stage of the product life cycle typically sees the highest level of promotional spending relative to sales?
- Maturity
- Decline
- Introduction (Correct answer)
- Growth
Correct answer: Introduction
During the introduction stage, heavy promotion is needed to build awareness and trial among an unfamiliar market.
Question 4: The marketing concept that emphasizes understanding individual customer needs and building long-term relationships is:
- Transactional marketing
- Relationship marketing (Correct answer)
- Guerrilla marketing
- Cause marketing
Correct answer: Relationship marketing
Relationship marketing focuses on customer retention and satisfaction over the long term rather than single transactions.
Question 5: In segmentation, 'psychographic' variables include:
- Age, gender, and income
- Geography and climate
- Lifestyle, values, and personality traits (Correct answer)
- Purchase frequency and brand loyalty
Correct answer: Lifestyle, values, and personality traits
Psychographic segmentation groups consumers by psychological characteristics such as lifestyle, attitudes, and personal values.
Question 6: A company that prices a core product low but charges high prices for required accessories is using:
- Bundle pricing
- Captive product pricing (Correct answer)
- Optional product pricing
- Skimming pricing
Correct answer: Captive product pricing
Captive product pricing sets a low price for the main product and higher prices for the consumables or accessories needed to use it.
Question 7: Which type of consumer buying behavior is characterized by high involvement but low brand differentiation?
- Complex buying behavior
- Variety-seeking buying behavior
- Habitual buying behavior
- Dissonance-reducing buying behavior (Correct answer)
Correct answer: Dissonance-reducing buying behavior
Dissonance-reducing behavior occurs when buyers are highly involved but see little difference between brands, leading to post-purchase anxiety.
Bcom Bachelor of Commerce Bachelor of Commerce: Marketing 4
The 'Net Promoter Score' (NPS) measures: