CUET Entrepreneurship MCQs Unit 3 Enterprise Marketing

Question. KFC which has its only outlet at Bangalore in the country is all set to open its retail outlets in Delhi and Hyderabad. Which stage of the PLC is it in?
A. Introduction
B. Growth
C. Maturity
D. Decline
Answer : A

Question. Which of the following is not a market penetration strategy?
A. Maintaining or increasing the market share of existing services
B. Entering new markets with the existing services
C. Driving away competitors by restructuring a market
D. Inducing existing customers to use the services frequently
Answer : B

Question. In your market are included:
A. All the people of your area
B. People who need your products or services
C. People who are capable of paying for such products and services
D. All of these
Answer : D

Question. Which of the following is not a type of broadcast media used for advertising?
A. TV
B. Radio
C. Newspapers
D. Internet
Answer : B

Question. Which amongst the following is not true regarding the promotional strategies of services?
A. Intermediaries have a key role in the promotion of services
B. Service personnel play a larger role in promoting services
C. Physical evidence tangibilizes the services
D. Services cannot ne inventoried
Answer : C

Question. In planning a service process, a service provider takes all the following important decisions except
A. Conversion process
B. Legal restrictions
C. Flow of process
D. Layout design
Answer : B

Question. The importance of physical environment as an element of physical evidence springs forth through all of the following except
A. Layout
B. Communications
C. Atmosphere
D. Aesthetics
Answer : C

Question. Which of the following factors does not influence service delivery?
A. The service provider
B. The level of customer interaction
C. The complexity of the service
D. The legal aspects connected to it
Answer : B

Question. Prospective customers are :
A. People who need products or services
B. People who are capable of purchasing products or services
C. People who want to purchase products or services
D. All of these 
Answer : D

Question. Which among the following is not one of the requirements for effective segmentation of markets?
A. Measurability
B. Accessibility
C. Substitutability
D. Validity
Answer : B

Question. Which is the nearest in meaning to the word ‘Augmented Service’
A. Supplementary Service
B. Increased Service
C. Support Service
D. Auxiliary Service
Answer : B

Question. Branding in a service can be developed through various ways. Music World outlets run by franchisees are anexample of
A. Manufacturer branding strategy
B. Licensed branding strategy
C. Multi-product branding strategy
D. Multi-branding strategy
Answer : B

Question. The __________ concept holds that consumers will favor those products that offer the most quality, performance, or innovative features.
A. Production
B. Product
C. Selling
D. Marketing
Answer : B

Question. The consumer management areas of particular importance to service marketers are:
A. Managing customer participation
B. Managing customer waits
C. Managing uncooperative customers
D. Customer relationship management (CRM)
Answer : D

Question. The purpose of advertisement is :
A. To attract potential buyers
B. To Inform and guide customers
C. To make publicity of product
D. All of these
Answer : D

Question. Part of the problem when transforming from full-service to self-service is that the new proceduresthemselves are flawed and/or difficult to understand. Of the guidelines presented below, which wouldminimize this type of problem from occurring? This is consistent with which of the following guidelines for increasing customer participation:
A. develop customer trust
B. promote the benefits and stimulate trial
C. understand customer habits
D. pre-test new procedures
Answer : C

Question. Which of the following is not a typical benefit associated with self-service?
A. Convenience
B. Cost savings
C. Customization
D. Standardization
Answer : D

Question. In the absence of a physical product, service providers need to consider the use of __________ that enable customers to make a judgment on the service quality.
A. Intangible clues
B. Tangible clues
C. Blueprint
D. Performance measures
Answer : B

Question. To build a world-class service brand there are three things you will need to define or create:
A. The brand's personality.
B. The relationship the brand has with the target segment.
C. Visual icons, symbols or other representations of the brand such as the logo or a character.
D. All the above.
Answer : D

Question. Quality Gaps include:
A. The Management Perception Gap, The Market Communication Gap, The Quality Improvement Gap
B. The Service Delivery Gap, The Market Communication Gap; The Information Gap
C. The Management Perception Gap; The Quality Specification Gap; The Service Delivery Gap
D. The Service Delivery Gap, The Management Perception Gap, The implementation Gap
Answer : C

Question. The factors affecting product mix are :
A. marketing
B. production
C. financial  
D. all of these
Answer : A

Question. The new product pricing strategy through which the companies set lower prices of services to gain large market share is classified as
A. optional product pricing
B. skimming pricing
C. penetration pricing
D. captive product pricing
Answer : C

Question. The marketing services agencies includes
A. Marketing consulting firms
B. Media firms
C. Marketing research firms
D. All of above
Answer : D

Question. The pure tangible good and pure services are two extremes of
A. market offering
B. exchange of goods
C. ownership
D. logistic channels
Answer : B

Question. Segmenting the market according to the customer use of the service is an example of _________ segmentation
A. Demographic
B. Geographic
C. Behavioral
D. Psychographic
Answer : C

Question. Which of the following is not an issue in the pricing of services?
A. Availability of raw materials
B. Competitor pricing
C. Positioning
D. Demand levels
Answer : D

Question. Labelling is-
A. compulsory
B. necessary
C. voluntary   
D. wastage of money
Answer : B

Question. Which of the following is not a consideration in deciding the marketing channel for services?
A. Channels should ensure easy accessibility
B. Channels should cover all target markets
C. Channels should ensure expansion at any cost to the service provider
D. Channels should ensure value addition to the customers
Answer : C

Question. Which of the following is not an element of blueprinting in a service process?
A. Onstage employee actions
B. Line of visibility
C. Customer role
D. Support processes
Answer : B

Question. Which of the following is not a type of demand-based pricing strategy?
A. Market skimming
B. Penetration pricing
C. Destroyer pricing
D. Discounts and sales
Answer : D

Question. Importance of marketing concept is for :
A. society
B. consumers
C. producers
D. all the these  
Answer : D

Question.  Which of the following is not a cost-based pricing?
A. Cost-plus pricing
B. Contribution pricing
C. Working back method
D. Penetration pricing
Answer : A

Question. Most service marketers in the west compete at ___product/service level
A. Core
B. Augmented
C. Expected
D. Tangible
Answer : B

Question. The additional consumer service and benefits built around the actual product is known as
A. Core product
B. Expected product
C. Augmented product
D. Basic product
Answer : C

Question. Marketing concept is :
A. production-oriented  
B. sales-oriented
C. customer-oriented
D. all the these
Answer : D

Question. Efforts to transform customers into partial employees should not be interpreted as the firm’sway of distancing itself from the customer. This is consistent with which of the followingguidelines for increasing customer participation:
A. Develop customer trust
B. Promote the benefits and stimulate trial
C. Understand customer habits
D. Pretest new procedures
Answer : A

Question. Co-production of services is made possible due to the __________ inherent in the productionofservices.
A. Homogeneity
B. Intangibility
C. Heterogeneity
D. Inseparability
Answer : D

Question. Which of the following is an example of a tangible component provided by a hotel?
A. Wake-up call
B. Guest rooms
C. Room service
D. Express check-out
Answer : B

Question. Three types of customer expectations can be identified:
A. Fuzzy expectations, Explicit expectations, Implicit expectations
B. Internal expectations; Explicit expectations, Implicit expectations.
C. Internal expectations, External expectations, Implicit expectations.
D. None of the above
Answer : A

Question. For business, marketing is:
A. compulsory
B. necessary
C. unnecessary
D. luxury
Answer : A

Question. The pricing strategy in which prices are set lower to actual price to trigger short term sales is classified as
A. promotional pricing
B. short term pricing
C. quick pricing
D. cyclical pricing
Answer : A

Question. Which of the following is not the element of traditional maketing mix
A. Production
B. Place
C. Price
D. Promotion
Answer : A

Question. The intangible aspect of a service spring forth for which of the following service product levels?
A. Actual product level
B. Core product level
C. Augmented product level
D. Potential product level
Answer : B

Question. Which type of positioning involves communicating two or more contradicting features?
A. Under positioning
B. Over positioning
C. Confused positioning
D. Irrelevant positioning
Answer : A

Question. Which of the following is not an influencing factor in process efficiency?
A. Technology
B. External environment
C. Planning
D. Location and décor
Answer : C

Question. Which of the following groups is called boundary spanners?
A. Top management
B. Front line employees
C. Market research analysts
D. All the above
Answer : B

Question. Qatar Airways’ first-class passengers sit in a semi-private pear-wood berth that convert into a bed, thusproviding more comfort on long flights. This service is an example of theairlines
A. Standardized service
B. Core service
C. Customized service
D. Supplementary service
Answer : D

Question. Part of the problem when transforming from full-service to self-service is that businesses tend toforget why customers might prefer using full-service options in the first place. This is consistent withwhich of the following guidelines for increasing customer participation:
A. develop customer trust
B. promote the benefits and stimulate trial
C. understand customer habits
D. pre-test new procedures
Answer : C

Question. The ability of a product, part or service to perform its intended function under an appropriate set of conditions is its:
A. robustness.
B. quality.
C. appropriateness.
D. reliability.
Answer : D

Question. The Zone of Tolerance concept assumes:
A. That customers can tolerate a variation in the real experiences and still consider them acceptable.
B. That customers do not have expectations of a service attribute on a single level.
C. That customers' expectations exist on two levels.
D. All the above are true
Answer : D

Question. The maintenance and business advisory services are included in
A. business services
B. business supplies
C. industry capital items
D. accessory equipment
Answer : A

Question. Which of the following is not a type of positioning strategy used in service marketing?
A. Attribute positioning
B. Celebrity positioning
C. Competitor positioning
D. Category positioning
Answer : B

Question. Which of the following is not a necessary strategy in the effective promotion of services?
A. Effective planning
B. Perfect timing
C. Adherence to legal regulations
D. Employee motivation
Answer : A

Question. Which of the following is not a major element of physical evidence?
A. Conduct of support staff
B. Price of service
C. Physical environment
D. Conduct of service personnel
Answer : A

Question. What is the process of offering customized services to individual customers by using flexible processes, without foregoing the advantages of mass production?
A. Market specialization
B. Full market coverage
C. Mass customization
D. Mass marketing
Answer : A

Question. Which of the following statements best reflects the definition of a product?
A. A product is anything that is offered to the market for attention
B. Services are intangible and do not result in the ownership of anything
C. Organizations tend to compete at the augmented product level
D. All of the above statements are true vis-à-vis definition of a product.
Answer : D

Question. Disney informs guests how long the wait will be along various points of the lines that form for each ofits attractions. This strategy helps minimize the effects of which of the following "principles ofwaiting?"
A. preprocess waits feel longer than in process waits
B. unoccupied time feels longer than occupied time
C. unfair waits are longer the equitable waits
D. uncertain waits are longer than known, finite waits
Answer : D

Question. Perceived Service Quality concept includes which of the following?
A. Credibility, Security, Process
B. Courtesy, Access, Choice
C. Access, Service, Communication
D. Reliability, Courtesy, Communication
Answer : D

Question. Which of the following is not an approach to pricing in services?
A. Risk based approach
B. Cost based approach
C. Competition based approach
D. Demand based approach
Answer : D

Question. Money spent on marketing is:
A. wastage
B. unnecessary expenditure
C. burden on the customers
D. investment
Answer : D

Question. Location decision is not important for ____________
A. Insurance company
B. Bank
C. Retail outlet
D. Health club
Answer : C

Question. Which of the following may not be an objective of focusing on physical evidence by a service firm?
A. Differentiation from competitors
B. Increased productivity
C. Creating a good impression
D. Creating awareness about its services
Answer : A

Question. Personal selling is :
A. Verbal presentation
B. Written presentation
C. Visual presentation
D. None of these
Answer : A

Question. Which of the following initiatives will not help a company retain the best people?
A. Treat employees as customers
B. Measure and reward strong service performance
C. Include employees in the company’s vision
D. Provide supportive technology and equipment
Answer : B

Question. The stage of the service life cycle in which marketers become more cost conscious is:
A. Maturity
B. Introduction
C. Decline
D. Growth
Answer : C

Question. Brand indicates:
A. Symbol
B. Design
C. Name
D. all of these
Answer : D

Question. Heterogeneity of services among telecom service providers makes which method of pricing a major problem?
A. Demand based pricing approach
B. Competition based pricing approach
C. Perceived value based pricing approach
D. Costing based pricing approach
Answer : B

Question. When service is produced via a cooperative effort between customers and service providers, this isreferred to as:
A. Co-production
B. Intangibility
C. Heterogeneity
D. Inseparability
Answer : A

Question. Service design often differs from product design for which one of these considerations?
A. its life cycle
B. customer interface
C. cost and value
D. legal environment
Answer : B

Question. Maximum wide scope is of:
A. brand
B. labelling
C. packaging  
D. trade mark
Answer : C

Question. The Perceived Service Quality means that the perceived or experienced service is not consistentwith the expected service. This gap results in the following: Which one is NOT true?
A. An increase in corporate costs
B. Bad word of mouth
C. A negative impact on corporate or local image
D. Negatively confirmed quality
Answer : A

Question. The kind of reduction made to those buyers who buy large volumes of products is classified as
A. cash discount
B. seasonal discount
C. functional discount
D. quantity discount
Answer : D

Question. The characteristics of a good brand are :
A. short name 
B. memorable
C. attractive
D. all these
Answer : D

Question. The marketing services agencies
A. Marketing consulting firms
B. Media firms
C. Marketing research firms
D. All of above d
Answer : D

Question. Identify the factor that does not play a major role in setting the pricing objectives of a service organization.
A. How would a company like to position its services?
B. Are the prices chosen compatible with the corporate objectives?
C. How do the shareholders react to the price changes made by the company?
D. What is the duration of the life cycle of the services?
Answer : A

Question. The advantage of marketing is to :
A. consumers
B. businessmen
C. manufacturers
D. to all
Answer : D

Question. Which of the following is not a benefit of direct distribution of services?
A. Control over operations
B. Healthy customer relationships
C. Flexibility
D. Reduced risk
Answer : A

Question. Which of the following is not an essential step in building a service blueprint?
A. Identifying process
B. Identifying customer segment
C. Mapping customer’s view
D. Mapping complexities
Answer : D

Question. Which of the following is not a strategic management task of a retailer?
A. Identifying target markets
B. Inventory management
C. Store design and layout
D. Pricing decisions
Answer : B

Question. Marketing expenditure is a burden :
A. on industry
B. on businessmen
C. on consumers
D. all of these
Answer : C

Question. In Arab countries like Saudi Arabia, charging interest on a loan is against the “Muslim law”. Therefore, banksoperating in these countries customize their product offering as per the local requirements. Which parameter ofassessing globalization level of a firm does this example explain?
A. Responding to changes in environment
B. Achieving desirable balance between globalization and customization
C. Presence in strategic markets
D. Consistency in quality and pricing of services
​​​​​​​Answer : B

Question. Compared with low-contact services, customers of high-contact services are more likely to judgeservice quality on the basis of:
A. Price of the service
B. Processes used in carrying out the service
C. Intangible outcomes eg. The performance of an investment portfolio
D. Tangible outcomes​​​​​​​
Answer : B

Question. Service marketers consider which of the following?
A. People, Products Process.
B. People/Participants, Physical evidence, Process.
C. Participants, Physical evidence, Products
D. People/Participants, Physical evidence, Placement.​​​​​​​
Answer : B

Question. The pricing strategy in which company divides location into different sectors and charge same price for each sector is classified as
A. freight on board origin pricing
B. zone pricing
C. basing point pricing
D. uniform delivered pricing
​​​​​​​Answer : B

Question. The ‘Marketing strategy’ and ‘Action plan’ comprise of decisions pertaining to which of the following?
a) Potential hazards present in the competitive environment
b) Product, place, price, promotion
c) Customer’s characteristics
d) Quantifying goals of the organisation

Answer : B

Question. Farhan Akhtar driving Royal Enfield bike in ‘Bhaag Milkha Bhaag’ is an example of
a) product placement
b) promotion
c) testimonials
d) core selling strategies

Answer : A

Question. The ‘Maharaja’ of Air India is an example of
a) brand name
b) brand mark
c) trademark
d) None of these

Answer : B

Question. Which of the following is not a component of product mix?
a) Branding
b) Labelling
c) Packaging
d) Promotion

Answer : D 

Question. Vector Ltd., is in the Fast Moving Consumer Goods Industry. They introduced a new variety of biscuits in the market. It has high fibre content with different new f lavours incorporating various multigrains. State which promotion strategy should be used by Vector Ltd.?
a) Below the line
b) Through the line
c) Above the line
d) None of these

Answer : C

Question. The associated cost of promotion is the highest in case of
a) advertising
b) personal selling
c) sales promotion
d) publicity

Answer : B

Question. ................ pricing strategy is employed only for a short duration as it is not viable in the long-run.
a) Penetration
b) Cost-plus
c) Skimming
d) Variable

Answer : C

Question. ‘Brand’ word has originated from the word ‘Brandr’ which means ‘to burn’ in
a) French
b) German
c) Norwegian
d) None of these

Answer : C

Question. ................. channel of distribution completely relieves the manufacturer from the problem of distribution and is suitable for marketing of industrial products.
a) Producer-customer
b) Producer-retailer-customer
c) Producer-wholesaler-retailer-customer
d) Producer-agent-wholesaler-retailer-customer

Answer : D

Question. XY Limited manufactures plastic buckets. The CEO wants to select a distribution channel for his buckets. The factor(s) related to the product to be kept in mind is/are
a) unit value of product
b) perishability
c) technical nature
d) All of these

Answer : D

Question. ................. promotional activities are targeted towards retailers and wholesalers.
a) Consumer promotions
b) Business promotions
c) Trade promotions
d) None of the above

Answer : C

Question. Various approaches may be used by a company to promote its products. One of them is the use of mass media methods by designing a promotion strategy that aims at establishing brand identity. Identify promotion strategy.
a) Below the line
b) Through the line
c) Above the line
d) None of these

Answer : C

Question. ................. act as the key visual component of an enterprise’s overall brand identity.
b) Brand name
b) Logo
c) Tagline
d) Packaging

Answer : B

Question. ‘Balls red’ is a SSI producing cricket and tennis balls. To promote its products, it wants to advertise on TV but its Chartered Accountant advises the CEO of the firm against it. The reason behind this could be
a) limited scope of TV
b) high cost associated with it
c) limited exposure
d) All of the above

Answer : B

Question. Sales strategy is important because
a) it creates awareness about business environment
b) it helps in measuring short-term performance of sales team
c) Both (a) and (b)
d) None of the above

Answer : C

Question. Which of the following statements is/are correct?
Statement I Labelling acts as a silent salesman.
Statement II It helps in the promotion of products by attracting the attention of customers and providing required information.
Alternatives
a) Both statements are correct
b) Statement I is correct, but Statement II is incorrect
c) Statement I is incorrect, but Statement II is correct
d) Both statements are incorrect

Answer : A

Question. ................. is the mixture of controllable marketing variables that the firm uses to pursue the sought level of sales in the target market.
a) Product mix
b) Promotion mix
c) Place mix
d) Marketing mix

Answer : D

Question. Which of the following statements is/are correct?
Statement I Advertising costs are passed on to consumers in the form of higher prices.
Statement II Advertising helps in increasing sales and thereby reducing costs.
Alternatives
a) Both statements are correct
b) Statement I is correct, but Statement II is incorrect
c) Statement I is incorrect, but Statement II is correct
d) Both statements are incorrect

Answer : B

Question. In the act of making a final sale, a sales person plays a role of
a) a persuader
b) a service provider 
c) an informant
d) All of these

Answer : D

Question. ................. is defined as, ‘‘a process that can allow an organisation to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage’’.
a) Marketing strategy
b) sales strategy
c) Pricing mix
d) Promotion mix

Answer : A

Question. A ................. is either a tangible or an intangible offering that is required to satisfy the needs and aspirations of a consumer.
a) service
b) goods
c) product
d) None of these

Answer : C

Question. Identify the term highlighted in the line “ These are simple but powerful messages that help to communicate an enterprise’s goals, mission, distinct qualities etc”.
a) Logo
b) Brand name
c) Taglines
d) None of these

Answer : C

Question. PapTap is a soft drink company. It sells 200 ml bottle for ` 8 and 2,000 ml bottle for ` 55. The company follows which strategy?
a) Cost-plus pricing
b) Pentration pricing
c) Creaming
d) Variable pricing

Answer : D

Question. Which of the following is the consumer sale promotion activity?
a) Loyalty reward programmes
b) Event sponsorship
c) Competitions
d) Corporate entertainment

Answer : A

Question. ................. is a plan that positions a company’s brand in such a way that it gains a competitive advantage in its segment.
a) Promotion
b) Marketing
c) Sales strategy
d) None of these

Answer : C

Question. Which sales strategy allows a business to cover a wide geographical market and to sell to a large customer base?
a) Direct
b) Indirect
c) Promotional
d) None of these

Answer : B

Question. Which of the following is not a quality of a good brand?
a) It should be long.
b) Neither obscene, negative, offensive or vulgar.
c) Pleasing, impressive when uttered.
d) Linked to product, symbolically eye catching.

Answer : A

Question. Which of the following is an example of an example of an umbrella branding?
a) Liril
b) Ponds
c) Lux
d) i10

Answer : B

Question. In which of the following channel of distribution no middlemen is involved and producers directly sell their products to the consumers?
a) Direct channel-zero level
b) Indirect-one level
c) Two levels
d) Three levels

Answer : A

Question. What relates to short-term incentives that encourage or promote the purchase or sale of a product or a service?
a) Advertising
b) Pricing
c) Sales promotion
d) None of these

Answer : C

Question. Which of the following pricing strategy of a product is initially set at a price lower than the eventual market price to attact new customers?
a) Cost-plus pricing
b) Penetration pricing
c) Skimming pricing
d) None of these

Answer : B

Question. Which of the following is a powerful advertising medium?
a) Radio
b) Television
c) Direct mail
d) Cinema

Answer : B​​​​​​​