DECA Marketing Principles 2 — Questions and Answers
Question 1: A company lowers its price on a product to match a competitor's price. This strategy is best described as:
- Penetration pricing
- Competitive pricing (Correct answer)
- Skimming pricing
- Bundle pricing
Correct answer: Competitive pricing
Competitive pricing means setting prices based on what rivals charge for similar products.
Question 2: Which element of the marketing mix describes the path a product takes from producer to final consumer?
- Promotion
- Price
- Place (Correct answer)
- Product
Correct answer: Place
Place (distribution) covers the channels and logistics used to deliver a product to consumers.
Question 3: A business tracks which customers buy most frequently and spends more to retain them. This is an example of:
- Mass marketing
- Customer relationship management (CRM) (Correct answer)
- Undifferentiated targeting
- Market penetration
Correct answer: Customer relationship management (CRM)
CRM focuses on building long-term relationships with high-value customers to maximize retention and lifetime value.
Question 4: When a brand sponsors a local charity 5K race, the primary marketing goal is usually to:
- Increase direct sales immediately
- Generate public relations goodwill (Correct answer)
- Reduce production costs
- Expand product lines
Correct answer: Generate public relations goodwill
Event sponsorship builds brand awareness and positive community perception, which is a public relations objective.
Question 5: Which type of research gathers numerical data that can be statistically analyzed?
- Qualitative research
- Ethnographic research
- Quantitative research (Correct answer)
- Focus group research
Correct answer: Quantitative research
Quantitative research produces measurable numerical data, such as survey ratings or sales figures, allowing statistical analysis.
Question 6: A retailer displays candy and magazines near the checkout counter to encourage unplanned purchases. This technique is called:
- Cross-selling
- Upselling
- Impulse merchandising (Correct answer)
- Loss-leader pricing
Correct answer: Impulse merchandising
Impulse merchandising places items in high-traffic spots to trigger spontaneous, unplanned buying decisions.
Question 7: The concept of 'brand equity' refers to:
- The total cost of advertising a brand
- The financial and perceptual value a brand name adds to a product (Correct answer)
- The number of products under a brand umbrella
- The legal protection given to a brand's logo
Correct answer: The financial and perceptual value a brand name adds to a product
Brand equity is the added value a well-known and trusted brand name provides beyond the product's functional attributes.
DECA Marketing Principles 2
A company lowers its price on a product to match a competitor's price.
This strategy is best described as: