DECA Marketing Principles 5

Question 1

A company that manufactures both running shoes and athletic apparel under the same brand is using:

Accepted Answer

Brand extension

Answer

Brand extension applies an established brand name to new product categories to leverage existing brand equity.

Question 2

Which of the following best describes 'primary data'?

Accepted Answer

Original data gathered firsthand for a specific research purpose

Answer

Primary data is original information collected directly by the researcher through surveys, experiments, or observations for a specific study.

Question 3

A business selling luxury watches prices them at $5,000 to signal exclusivity. This is an example of:

Accepted Answer

Prestige (premium) pricing

Answer

Prestige pricing deliberately sets high prices to convey superior quality, exclusivity, and status to target customers.

Question 4

A small business owner conducts a competitive analysis. Which question is MOST relevant to this analysis?

Accepted Answer

What are our competitors' strengths, weaknesses, and pricing strategies?

Answer

Competitive analysis focuses on understanding rivals — their strengths, weaknesses, prices, and positioning — to identify advantages.

Question 5

In the context of product development, a 'prototype' is best described as:

Accepted Answer

A preliminary model used to test and refine a concept

Answer

A prototype is an early sample or model built to test a product concept before committing to full-scale manufacturing.

(DECA) Distributive Education Clubs of America Practice Test