1.

Marketing Strategy consists of decisions and actions focused on building a/an _____________
differential advantage:

a. Temporary
*b. Sustainable
c. Satisfactory
d. Acceptable

Type: MR
2. A Corporate Strategy must answer the following questions (check all that apply):

a. Who are your customers?

*b. What affects cash flow?
c. What value do you provide customers?
*d. What personnel policies should you have in place?

3. The objective of Marketing Strategy must focus on _______________:

a. Firm’s goals
b. Customers’ goals
*c. Both
d. None of the above

4. Calculate Sales Revenue for Company XYZ Ltd for 2016; if Market Demand = 18 million, XYZ’s Market
Share = 12%, Average Selling Price = $15:

*a. $32.4 million

b. $22.5 million
c. $27 million
d. $30 million

5. Calculate Company ABC’s Sales Revenue for 2016; if ABC’s profit = $46,000, Profit margin = 25%,
Marketing Expense = $93,000, and G&A Expense = $56,000:

a. $5,56,000
*b. $7,80,000
c. $3,32,000
d. $5,96,000

6. Which of the following is not included in the First Principles of Marketing Strategy?

a. All customers change

b. All resources are limited
c. All competitors react
*d. All customers are not different

Type: MR
7. The key elements of Marketing Strategy include (check all that apply):

*a. Differential advantages over competitors

*b. Sustainability
c. Company’s Mission / Vision
*d. Customer perspective

8. __________ represent the fundamental unit of analysis for Marketing Strategy:

*a. Customers
b. Competitors
c. Operations
d. None of the above

Type: MR
9. A Marketing Strategy must answer the following questions (check all that apply):

a. What personnel policies should you have in place?

b. What legal considerations effect your business?
*c. What value do you earn due to the differential advantage?
*d. How will you sustain the differential advantage?

10. Customer heterogeneity is defined as variation among customers in terms of their__________:

a. Ability to pay
*b. Needs, desires, and subsequent behaviors
c. Future preferences
d. None of the above

Type: MR
11. The following drive substantial variation in customer’s preferences (check all that apply):

*a. Personal Differences

*b. Aspirational self-identities
*c. Functional needs for the product
d. None of the above

12. A customer lifecycle approach ignores _______________:

a. Migration among customers

b. Average changes among customers
*c. Product differences
d. None of the above

13. A product or lifestyle approach captures ___________?

a. Typical User experiences

b. Industry developmental efforts
c. Individual sources of customer dynamics
*d. Both a & b

14. A firm can compile a descriptive “persona” by grouping existing customers into __________?

a. Those recently acquired

b. Longer-term customers
c. Those lost or at risk of being lost
*d. All of the above

Type: MR
15. Lost customer analysis provides insights on ________? (Check all that apply)

*a. Customer defection

b. Customer reflection
*c. Where customers go
*d. Potential recovery strategies

16. Brands, offerings and relationships are 3 key marketing sources of ___

*a. Sustainable competitive advantage

b. Unsustainable competitive advantage
c. Sustainable competitive disadvantage
d. Unsustainable competitive disadvantage

17. The total of the discounted lifetime values of all its customers is known as _____?

a. Customer lifetime
b. Customer Longevity
*c. Customer Equity
d. Competitor equity

18. The Micro-Macro Duality is critical to successful marketing strategy, because _______ occur/occurs
at micro levels, but ___________ occur/occurs at Macro level?
a. All decisions, customer understandings
*b. True customer understandings, most strategic and resource oriented
c. Most strategic and resource oriented, True customer understandings
d. Customer understandings, All decisions

19. Resource slack refers to ___________ for a firm for marketing strategy?

a. Unusable resources
*b. Usable resources
c. Competitors resources
d. None of the above

20. Changes in the _________ results from the entry and exit of competitors?

*a. Product market landscape

b. Competitor market landscape
c. Resources market landscape
d. All of the above

21. Firms use _____________ to make decisions when they lack hard data on each resource option?

a. Attribution based processes

*b. Heuristic based processes
c. Resource based processes
d. All of the above

22. ____________ help in making critical resource allocations decisions such as “ How much would the
financial income change with 1% increase in marketing efforts”?

*a. Attribution based processes

b. Heuristic based processes
c. Resource based processes
d. All of the above

Type: MR
23. The brand and offering strategy needs to address these conditions? (Check all that apply)

*a. Customer must care about what SCA offers

*b. Firms must have a relative advantage over its competitors
c. SCA must be easy to understand and duplicate
*d. SCA must be hard to duplicate or substitute
24. ____________ can be defined as a technology-enabled, model supported approach to harnessing
customer and market data to understand and serve customers?

a. Competitor analytics
b. Resource analytics
*c. Customer Analytics
d. Brand Analytics

1. Offering a single product to the entire market approach may work if:

a. Competition is strong
b. Perfect competition
*c. Competition is weak/scarce
d. None of the above

Type: MR
2. Which of the following are sources of Customer Heterogeneity? (check all that apply):

*a. Life Experiences

*b. Marketing Activities
c. Corporate Image
*d. Functional Needs

3. Which of the following is not a part of the Big 5 traits?

a. Agreeableness
b. Openness
c. Conscientiousness
*d. Calmness

Type: MR
4. Market strategies aim at (check all that apply):

*a. Matching natural sources of variation in customer preferences

b. Facing market competition
*c. Serving as a significant source of customer heterogeneity
*d. Persuading consumers of the importance of new attributes

5. Marketing Principle #1: All customers differ and an effective marketing strategy must
____________________________________:
a. Manage ever present market competition
*b. Manage ever present consumer heterogeneity
c. Manage evolving market trends
d. Manage ever present consumer homogeneity

6. Which of the following is not addressed in a positioning statement?

a. Who are the customers?

b. What is the set of needs that product/service fulfills?
*c. Who are the firm’s competitors?
d. Why is this product/service the best option to satisfy the customer needs?

7. ____________ is the process of diving the overall market into groups, such that potential customers
in each group have similar needs and desires for a product/service:

*a. Segmentation
b. Positioning
c. Targeting
d. None of the above

Type: MR
8. An ideal target segment should meet the following criteria (check all that apply):

a. Customers are unclassifiable

*b. Crossover Competition
c. Based on company’s needs
*d. Value in the long term

9. The ______________ is one analysis tool designed to help managers visualize and select target
segments:

a. Choice model
b. AER model
*c. E matrix
d. None of the above

10. ___________ uses customer preferences to cluster individual customers into a given number of
groups within this two-dimensional space by simultaneously minimizing the distance from each
individual customer to the center of a cluster and maximizing the distance between the centers of all
clusters:

a. Group Analysis
*b. Cluster Analysis
c. Preference Analysis
d. None of the above

Type: MR
11. The value of reducing potential customer preferences into smaller sets of independent factors, prior
to conducting analyses, is that (check all that apply):

*a. This step removes a potential source of bias by combining similar questions
b. This step gives us a wide scope of preferences to work with
*c. This step removes any redundancy
d. None of the above

12. _____________ refers to the process by which a firm shifts its target market:

a. Positioning
b. Segmentation
c. Targeting
*d. Repositioning

13. The _____________ is a philosophy that places customer’s needs at the center of an organization’s
strategic process and uses the insights to make decisions:

*a. Customer-centric
b. Market-centric
c. Demand-centric
d. None of the above

14. _____________ captures the relative strength of a firm, versus competitors, at securing and
maintaining market share in a given segment:

a. Market attractiveness
*b. Competitive strength
c. Firm effectiveness
d. None of the above

15. _____________ entails changing both the actual offering and the perceived offering:

*a. Positioning
b. Repositioning
c. Targeting
d. Segmentation

16. _____________ focuses marketing efforts on well-defined, narrow segments of consumers:

a. Mass marketing
b. Macro marketing
*c. Niche marketing
d. None of the above

17. Mass marketing (undifferentiated marketing) mostly ignores:

a. Customer Preferences
*b. Customer Heterogeneity
c. Customer Homogeneity
d. All of the above

18. _____________ depict customer segments, competitors, and a firm’s own position in a
multidimensional space, defined by the purchase attributes identified during segmentation:

a. Positioning maps
b. Choice models
c. GE Matrix
*d. Perceptual maps

19. Segmentation focusses on differentiating customers according to their ______________, and not on
their _______________:

a. Demographic characteristics, unique needs/desires

*b. Unique needs/desires, demographic characteristics
c. Demographic characteristics, changing preferences
d. None of the above

20. Internet provides a powerful platform for ____________ marketing:

a. Mass
b. Undifferentiated
*c. One-to-one
d. None of the above

Type: MR
21. Customer-centric organizations (check all that apply):

*a. Have increased knowledge of each customer segment

*b. Find it difficult to respond to emerging trends
c. Achieve improved customer satisfaction & loyalty
*d. Need more resources
22. When entering new markets or after dramatic market turbulences, firms should start with:

*a. Qualitative approaches

b. Quantitative approaches
c. Both
d. None of the above

23. A perceptual map helps firms to (check all that apply):

a. Determine how much change is needed on key product attributes to move products to more
favorable positions
b. Identify key competitors
c. Visually determine the impact of their communication programs on market perceptions
*d. All of the above

1. Managers developing marketing strategies must account for both ______ variation in customers
needs, due to inherent differences, and the __________ variation that arises as customer needs change
over time?

*a. Static, Dynamic

b. Dynamic, Static
c. Continuous, Discontinuous
d. None of the above

2. The _______________ is the process by which customers become familiar with the product by using
it, which changes their weighting of the relative importance of different attributes due to enhanced
knowledge and experiance.

a. Customer unlearning effect

*b. Customer Learning effect
c. Customer relative effect
d. None of the above

3. Only ________ in markets with huge entry and exit barriers can ignore changes among their existing
customers?

a. Oligopolies
b. Perfect competition firms
*c. Monopolies
d. Both A and C

4. A marketing strategy can be devised to cater to an average individual at any stage of life, this is a
process of _______ lifestyle for marketers?
a. Product
b. Industry
*c. Customer
d. All of the above

5. How many stages are present in a product lifecycle?

a. 5
b. 3
c. 6
*d. 4

6. In the industry lifecycle, the 3rd stage i.e. ___________ stage, marked by economies of scale, is
the phase where smaller players get forced out?

a. Innovation
*b. Shakeout
c. Maturity
d. Decline

7. In a __________ lifecycle method, managers might average across a large number of different people,
product and industry categories, which may give a general sense of change.

a. Customer
b. Product
*c. Generic
d. Exclusive

8. The __________ stage begins with the first contact, typically before the first purchase occurs, when
prospects and early customers have similar needs.

*a. Acquisition
b. Expansion
c. Retention
d. None of the above

9. ______________, defined as the planned process of introducing new customers to a firm to improve
their long term satisfaction and loyalty.

a. Product onboarding
b. Industry onboarding
*c. Customer onboarding
d. None of the above
10. In the expansion stage, firms are trying to upsell or cross-sell to expand their sales and engagement
with __________ customers?

*a. Existing
b. New
c. Exiting customers
d. All of the above

11. Some retention strategies from firms aim to _________ the switching costs required to move to a
competitor for customer?

a. Decrease
*b. Increase
c. Stabilize
d. None of the above

12. The Hidden Markov Model (HMM) uses changes in the __________ customer behaviour to identify
customer states and model the probability of transitioning, among those states.

a. Present
*b. Past
c. Future
d. All of the above

13. _______________ is a powerful, after-the fact diagnostic tool to identify customers who have
migrated away and identify the cause for the migration and work towards fixing the problem.

a. New customer analysis

b. Retention customer analysis
*c. Lost Customer Analysis
d. None of the above

14. A choice model can benefit the lost customer analysis, and can inform analyses across _____
stage/stages?

a. Acquisition
b. Expansion
c. Retention
*d. All of the above
15. Customer _________ value attempts to capture the true contribution of each customer, by
determining the discounted value of the sales and costs associated with this customer across the
expected migrated paths followed throughout the relationship.

*a. Lifetime
b. Retention
c. Discounted
d. None of the above

16. Using CLV approach, firms have special programs to acquire new customers, such as __________

a. Special finder’s fees

b. Discounts for first-time customers
*c. Both A and B
d. None of the above

17. __________ margins and retention rates while __________ decreasing acquisition and annual
marketing costs and discount rates all improve the customer’s lifetime value.

a. Decreasing, increasing
*b. Increasing, Decreasing
c. Steady, increasing
d. Increasing, Steady

18. A simplified version of CLV used by direct marketers to target customers receiving expensive
catalogs use __________

a. Recency
b. Frequency
c. Monetary
*d. All of the above

19. A firm’s _____________ system provides detailed customer-level data for dynamic segmentation
analysis.

*a. Customer relationship management

b. Customer Info management
c. Customer service management
d. None of the above

20. __________ data can help identify a triggering event or mechanism underpinning each migration
and thereby answer questions about the causes the change.

a. Quantitative
*b. Qualitative
c. Both A and B
d. None of the above

21. AER positioning statements are internally focused on _________ customers, rather than outwardly
focused on ______ customers in the market category.

a. All, existing
b. All, few
*c. Existing, All
d. Few, All

22. Individual customers may change due to life events, which have __________ impacts on many
aspects of their purchase decisions.

a. Immediate
b. Slower
c. Late
d. None of the above.

1. MP#3 - All competitors react and an effective marketing strategy must manage____________:

a. To identify changing customer preferences

b. To treat all customer differently
*c. The firm’s sustainable competitive advantage (SCA)
d. None of the above

Type: MR
2. A good Sustainable Competitive Advantage (SCA) must include (check all that apply):

*a. Customers care about what this SCA offers

b. Must be easy to substitute with significant resources
*c. The firm does it better than competitors
d. None of the above

3. Focusing only on competitors often ____________________________________________:

a. Helps firms better understand their customers’ needs and desires

*b. Leaves firms blind to changes in their customers’ needs and desires
c. Helps firms increase their customer base
d. None of the above

Type: MR
4. The sources of SCA in marketing can be grouped under the following main categories? (check all that
apply):

*a. Brands
*b. Offerings
c. Resources
*d. Relationships

5. Competitors can overcome a firm’s SCA by applying which of the following strategies?

a. Exploiting changes in customers’ desires due to cultural, environmental, or other factors

b. “Me-too” copycats that improve the efficiency/effectiveness of an existing execution
c. Technical innovations that provide them a platform to launch a disruptive offering
*d. All of the above

6. Industrialization increased the importance of brands as a means to:

a. Serve consumer needs

*b. Distinguish among products and provide a signal of quality of the offerings
c. Increase market competition
d. None of the above

7. Using brands as an SCA is most effective in _________________:

a. Small consumer markets

b. New markets
*c. Large consumer markets
d. None of the above

8. ____________ for a firm refers to “the total of the discounted lifetime values of all its customers.”:

*a. Customer equity

b. Firm equity
c. Customer lifespan
d. Competitive equity

9. True comprehension of customers occurs at ____________, but strategic and resource decisions
occur at ____________:

a. Macro levels, Micro levels

b. Interior level, Exterior level
*c. Micro levels, Macro levels
d. None of the above
10. While making Brand, Offering, and Relational (BOR) strategic decisions, ____________ are normally
determined last, because they involve the delivery and experiential aspect of offerings:

a. Offering decisions
*b. Relationship strategies
c. Brand decisions
d. None of the above

11. BOR equities are similar to _____________:

*a. Tangible assets

b. Intangible assets
c. Shareholders’ equity
d. None of the above

12. ____________ provide strong tests of causality, by randomly assigning customers to multiple
groups:

a. AER strategies
*b. Experiments
c. Consumer matrix
d. None of the above

13. ______________ is the largest barrier to competitive attacks:

*a. Interpersonal relationships between producers and consumers

b. Matching consumer preferences
c. Mass marketing
d. None of the above

14. Maintaining a relative advantage over ______________ is particularly difficult, because they benefit
from factors such as free-rider effects:

a. Late followers
b. Moderate competitors
*c. Early followers / “Me-too” competitors
d. None of the above

15. A brand can provide a relative advantage when:

*a. It aligns better with customers’ needs than competitors’ brands

b. It successfully replicates its competitor’s ideas
c. It recognizes changing market needs
d. None of the above

16. Firms must first focus on customer, before building SCA, because:

a. SCAs are not affected by customers

*b. SCAs offer value only when a financially meaningful group of customers care about them
c. SCAs offer value only when the firm’s competitors care about them
d. None of the above

17. Using offerings as an SCA can be effective, because new and innovative products/services:

a. Are easy to build

b. Require low investment in time and money
*c. Have the potential to disrupt virtually any market segment
d. a & b

18. For a firm, fulfilling a SCA better than its competitors is particularly critical in:

*a. More mature product/market segments

b. Rapidly growing segments
c. New product/market segments
d. None of the above

Type: MR
19. Using relationships as an SCA is most effective in ___________________ setting (check all that
apply):

*a. B2B
b. B2C
*c. Service
*d. Complex offering

20. Over time, following have been the primary sources of SCA:

a. Innovative offerings following the technology revolution

b. Brands in the aftermath of the Industrial Revolution with the emergence of middlemen and retailers
c. Relationships in early market
*d. All of the above

21. To make optimal decisions, a firm needs a framework that:

a. Measures existing market competition

*b. Measures, tracks, and reports customer equities
c. Estimates customer preferences
d. None of the above

1. Brand elements are associated with the following _______

a. Name
b. Package design
c. Symbol
*d. All of the above

2. ___________ equals the sum of all Customer lifetime value associated with all future and existing
customers.

*a. Brand equity

b. Product equity
c. Company equity
d. None of the above

3. Characteristics such as brand awareness or familiarity is associated with ______________ of brand

equity?

a. Brand network memory model

*b. Associated network memory model
c. Associated network brand model
d. Brand associated network model

4. Customer’s perceptions and associations with the brand is known as ________

a. Brand perception
b. Brand awareness
*c. Brand Image
d. None of the Above

5. One of the benefit of Brand equity is that

a. It cannot change customer’s actual experiences

b. It can change customer’s actual experiences
c. It can make it more difficult for competitors to encroach
*d. Both B & C

6. When both attitudinal and behavioural loyalty are high it creates _________

a. Product Loyalty
*b. True loyalty
c. Latent Loyalty
d. Spurious Loyalty

7. Spurious Loyalty is when ______

a. Positive feelings and actions are manifested

*b. Ambivalent feelings are manifested
c. No feelings are manifested
d. None of the above

8. Latent Loyalty is when Customers have ________ attitudes but actually _______ the product?

a. Negative, Buy
b. Negative, do not buy
c. Positive, buy
*d. Positive, do not buy

9. How a brand is going to maintain its relative advantage over time is known as ________

a. Brand Identity
b. Brand Image
*c. Brand Sustainability
d. None of the above

10. _________ pulls all characteristics together and describes who the brand is.

*a. Brand Identity

b. Brand Image
c. Brand Sustainability
d. None of the above

11. A firm that focuses on branding each major product with its own unique brand elements is known as
_____

a. Branded House architecture

*b. House of brand architecture
c. Brand architecture
d. None of the above

12. A firm that uses a single set of band elements for all products is known as

*a. Branded House architecture

b. House of brand architecture
c. Brand architecture
d. None of the above

13. Vertical Extensions of brands to lower priced markets often __________ the image of the parent
brand.

a. Strengthen
*b. Undermine
c. Not affect
d. None of the above

14. Building Brand awareness involves making the brand easy to recall known as ________

a. Brand breadth
b. Brand length
c. Brand perception
*d. Brand Depth

15. Brand awareness across a wide range of potential purchase and usage situations is known as
_________

*a. Brand breadth

b. Brand length
c. Brand perception
d. Brand Depth

16. Dissemination of information by individual customers to build a firm’s or product reputation and
generate sales is known as ______

a. Brand Dissemination
*b. Word of mouth
c. Personal selling
d. None of the above

17. The six-step approach of communication and information processing by firms towards customers
can be simplified as ________

a. Feel-think-act
b. Act-think-feel
c. Think-act-feel
*d. Think-feel-act

18. Exploratory qualitative analysis include

a. Case studies
b. Focus groups
c. Observations
*d. All of the above

19. Qualitative method which is flexible and time effective and can support larger sample sizes is ______

a. Case studies
*b. Interviews
c. Focus groups
d. Observations

20. Example Data reduction techniques that seek to condense customers’ attributes is/are

a. Factor analysis
b. Cluster Analysis
c. Regression
*d. Both A & B

21. Choice Models help __________ or identify the causes or drivers of desired outcomes

*a. Link variables to outcomes

b. Link Outcomes to variables
c. Understand trade-offs
d. Data reduction

22. Optimal way to allocate a marketing budget to different communication formats is knows as

a. Regression analysis
b. Choice Model
*c. Resource Allocation
d. Cluster Analysis

1. The _________________ involves creation of substantial new value for customers and the firm by
creatively changing one or more dimensions of the business:

*a. Process of innovation

b. Process of expansion
c. Process of modification
d. None of the above
2. A first-mover advantage is nearly always trumped by _____________, who are not just quick but also
better:

a. Laggards
*b. Early followers
c. Late entrants
d. None of the above

3. _____________ refers to the core value that the performance of the product/service offers the
customer, absent any brand or relationship equity effects:

a. Competitive advantage
b. Offering yield
*c. Offering equity
d. None of the above

4. ________________ is a process to increase the speed of a firm’s offering development and enhance
its likelihood of success:

a. Segmentation
*b. Stage-gate approach
c. Innovation
d. None of the above

5. Which of the following are the ways a firm can innovate?

a. Change what the firm offers

b. Changing who the customer is
c. Changing where to sell to customers
*d. All of the above

Type: MR
6. Greater offering equity, generated from a firm’s new and innovative products/services leads to
_____________ (check all that apply):

*a. SCA
*b. Superior sales
c. Increased competition
*d. Superior profit

Type: MR:
7. The following are the ways for a firm to change who the customer is (check all that apply):

a. Provide a total solution

*b. Change customer interactions
c. Change firm structure
*d. Change customers to target

8. _____________ means that once developers/designers accept some new feature, they perceive its
great value – far more than would be assigned the feature by non-users:

a. New offering bias

b. Non-user bias
*c. Designer’s Curse
d. None of the above

9. _______________ refers to an innovative offering that results from dramatically repositioning an

existing offering, so that the total offering appeals to a different customer segment with a ‘new’
proposition

*a. Repositioning strategy

b. Positioning strategy
c. Disruptive strategy
d. None of the above

10. ______________ attempt to capture a portion of the existing market, and account for the majority
of sales, but earn lower relative profit levels

a. Blue ocean strategies

b. Black ocean strategies
*c. Red ocean strategies
d. None of the above

11. _____________ aim at transforming the image off competitors brand features, such that they
become a negative attribute in the new market:

*a. Blue ocean strategies

b. Black ocean strategies
c. Red ocean strategies
d. None of the above

12. The basic intuition in Jugaad is that:

a. It requires the same stage-gate process for all innovative ideas

*b. Agile innovation practices can vary with each problem stage and product
c. It seeks conventional solutions to problems
d. None of the above
13. ________________ leads to continuous, incremental improvements over time:

*a. Sustaining technology

b. Innovative technology
c. Disruptive technology
d. None of the above

14. With its very different price and performance characteristics, ________________ improves very
quickly:

a. Sustaining technology
b. Innovative technology
*c. Disruptive technology
d. None of the above

15. _______________ are the first to adopt, often before the new offering even is officially launched:

*a. Innovators
b. Early adopters
c. Early majority
d. None of the above

16. _______________ see the benefits of the new technology and are willing to adopt it after just a few
references:

a. Innovators
*b. Early adopters
c. Early majority
d. None of the above

17. The ______________ consists of much more pragmatic consumers, who need to be convinced that
the new product really works:

a. Innovators
b. Early adopters
*c. Early majority
d. None of the above

Type: MR
18. The _____________ and _____________ want more evidence, but they are especially hard to
persuade (check all that apply):

*a. Laggards
b. Early majority
*c. Late majority
d. None of the above

19. In Moore’s adoption cycle, the concept of _____________ refers to many new offerings failing to
survive the jump from the early adopters to the early majority groups:

*a. Crossing the chasm

b. Switching strategy
c. Breaking barriers
d. None of the above

Type: MR
20. Changing the following factors can alter the rate of product diffusion, all else being equal (check all
that apply):

a. Complexity
b. Trialability
c. Relative advantage
*d. All of the above

21. _____________ helps marketers design and develop new products by thinking of products as
bundles of attributes, then determining which combination of attributes is best suited to meet the
preferences of customers:

a. Choice models
*b. Conjoint analysis
c. Perceptual maps
d. None of the above

22. The ______________ captures many of the people-and-product-based factors, but it also integrates
pricing and advertising levels to predict adoption rates:

*a. Bass model

b. Choice model
c. Choice model
d. None of the above