1. "Four different customer relation groups can be distinguished by companies. According to this classification, a true friend is a customer who can be characterized by: "

low potential profitability and short-term projected loyalty

high potential profitability and long-term projected loyalty

high potential profitability and short-term projected loyalty

low potential profitability and long-germ projected loyalty

2. "In the product/market expansion grid, both product development strategies and diversification strategies involve: "

selling a company s current products

selling in a company s current market

selling in new as well as existing markets

developing a new product

3. Marketing research that is conducted to test hypotheses about cause-and-effect relationships is called:

primary research

secondary research

exploratory research

causal research

4. Which of the following is a psychographic characteristic of a consumer?

a. Gender

b. Age

c. Lifestyle

d. Income

5.

Keeping the risk return trade off in mind, which of the following investments is clearly preferred over the others for a risk averse investor? Investment Mean return Standard deviation A 18% 20% B 20% 20% C 20% 22%

a. Investment A

b. Investment B

c. Investment C

d. Cannot be determined without information regarding the risk-free rate of return.

6. Dividing the market into several sections of customers is known as __________.

a. mass customization

b. market positioning

c. market segmentation

d. market targeting

7. Service variability means that ________.

a. the evaluation of services is subjective and changes from customer to customer

b. "service quality depends on when, where, and how the services are provided "

c. services cannot be stored for later sale or use

d. "services cannot be seen, tasted, felt, heard, or smelled before they are bought "

8. "When product demand hardly changes with a small change in price, the demand can be described as "

a. elastic

b. flexible

c. inelastic

d. variable

9. Which of the following is true of an intensive distribution strategy?

a. It gives sole rights to select dealers in a given area.

b. It makes products available where/when consumers want them.

c. It uses the least number of intermediaries to sell products.

d. It uses direct marketing to reach customers.

10. The primary objective of __________ advertising is to build selective demand.

a. reminder

b. informative

c. persuasive

d. personal