MATALAM HIGH SCHOOL

SENIOR HIGH SCHOOL DEPARTMENT

2nd SEMESTER MIDTERM EXAMINATION
SY 2017-2018
PRINCIPLES OF MARKETING

Name: ____________________________________ Date: ___________

Year & Section: ____________________________ Score: __________

General Directions: Choose/write the correct answer. Avoid erasures. NO Cheating. Cheating is a crime. “All
people are born originals; most die as copies.”

I. Multiple Choice: Select the letter that corresponds to the correct answer and write it on the space provided
before the number.

1. Which step of the marketing process lets the company reap the rewards of its strong customer relationships?
a) Building customer relationships.
b) Understanding the marketplace and customer needs.
c) Capturing value from customers.
d) Designing a customer-driven marketing strategy.
2. _____ concept holds that consumers will favor products that are available and highly affordable.
a) Product b) Selling c) Marketing d) Production
3. When backed by buying power, wants become _____.
a) Benefits b) offerings c) needs d) demands
4. What is customer equity?
a) The total combined customer lifetime values of all of the company’s current and potential customers.
b) The present value of the future cash flows attributed to the customer relationship.
c) The difference between what a customer’s gets from a product, and what he or she has to give in order to
get it.
d) Customer's perceived opinion of a product's value to him or her.
5. Which of the following depends on the product’s perceived performance relative to a buyer’s expectations?
a) Customer-generated marketing c) Customer-perceived value
b) Customer-managed relationships d) Customer satisfaction
6. Which is the first step in the marketing process?
a) Designing a customer-driven marketing strategy.
b) Preparing an integrated marketing plan and program.
c) Understanding the marketplace and customer needs.
d) Building customer relationships.
7. The _____ concept questions whether the pure marketing concept overlooks possible conflicts between consumer
short-run wants and consumer long-run welfare.
a) responsibility marketing b) societal marketing c) selling d) product
8. With mature consumerism and environmentalism movements, marketers are called to develop _____.
a) consumer-generated marketing c) customer-managed relationship
b) sustainable marketing practices d) selling oriented practices
9. Which of the following is the first step in the strategic planning process?
a) Designing the business portfolio c) Developing strategies for growth & downsizing
b)Setting company objectives and goals d) Defining a market-oriented mission
10. What is market penetration?
a) Making more sales without changing the original product.
b) Identifying and developing new markets for current products.
c) Offering modified or new products to current markets.
d) Starting up or buying businesses beyond current products and markets.
11. Which of the following involves evaluating each market segment’s attractiveness and selecting one or more
segments to enter?
a) Market segmentation c) Market targeting
b) Market positioning d) Market differentiation
12. Which of the following Cs best describes the ‘Place’ component of the four Ps concept?
a) Customer solution b) Convenience c) Communication d) Customer cost
13. The product/ brand marketing plan begins with a(n) _____.
a) SWOT analysis b) goals c) objectives d) executive summary
14. _____ is a statement of the organization’s purposes—what it wants to accomplish in the larger environment.
a) Objective b) Strategy c) Marketing plan d) Mission
15. _____ markets buy goods and services for further processing or for use in their production processes.
a) Consumer b) Business c) Reseller d) Government
16. Which of the following is part of the economic environment?
a) Legislation b) Social responsibility c) Income distribution d) Shifting family profiles
17. Which of the following groups include neighborhood residents and community organizations?
a) Local publics b) Internal publics c) General Publics d) Citizen-action publics
18. Which of the following generational groups is characterized by utter fluency and comfort with digital technology?
a) Baby boomers b) Generation X c) Late bloomers d) Millennials
19. To exercise their social responsibility and build more positive images, many companies are now linking
themselves to _____ marketing.
a) Viral b) cause-related c) responsive d) consumer-generated
20. The _____ environment consists of institutions and other forces that affect a society’s basic values, perceptions,
preferences, and behaviors.
a) Political b) natural c) cultural d) social
21. Which of the following environments call for greater emphasis on ethics and socially responsible actions?
a) Political b) natural c) cultural d) social
22. In a marketing information system, the first step is _____.
a) distributing data to managers c) developing the needed information
b) forming focus groups d) assessing users’ information needs
23. Which of the following does marketing information derive its value from?
a) Marketing information itself b) Databases c) Technology d) Customer insights
24. _____ are electronic collections of consumer and market information obtained from data sources within a
company’s network.
a) Internal databases c) Data aggregators
b) Commercial online databases d) Secondary databases
25. The marketing research process includes four steps. The final step of this process is _____.
a) defining the problem and research objectives
b) interpreting and reporting the findings
c) developing the research plan
d) implementing the research plan
26. The research approaches used to gather primary data are _____, _____, and _____.
a) surveys; observations; historic reviews c) observations; experiments; surveys
b) observations; surveys; databases d) experiments; databases; surveys
27. Which of the following would a marketer use to collect large amounts of information at a low cost per
respondent?
a) Personal interviews b) Mail questionnaires c) Focus groups d) Approach interviews
28. Which of the following would a marketer use to collect information quickly and allow for flexible answers?
a) Telephone interviews b) Mail questionnaires c)Focus groups d) Approach interviews
29. Which of the following would be a fast and low-cost method for an interviewer trying to reach the teen market?
a) Personal interviews b) Mail questionnaires c) Focus groups d) Online surveys
30. Groups of people with shared value systems based on common life experiences and situations are called _____.
a) Cohorts b)cults c) subcultures d) affiliate groups
31. Society’s relatively permanent and ordered divisions whose members share similar values, interests, and
behaviors are referred to as the _____.
a) Subculture b) families c) social class d) elitists
32. A person within a reference group who exerts social influence on others by virtue of special skills, knowledge, or
other characteristics is called a(n) _____.
a) opinion leader b) mature consumer c) affluent consumer d) upper class citizen
33. Which of the following refers to the unique psychological characteristics that distinguish a person or group?
a) Purchasing power b) Self-concept c) Lifestyle d) Personality
34. The process by which people select, organize, and interpret information to form a meaningful picture of the world
is ________.
a) realization b) learning c) perception d) motivation
35. A consumer purchases fine, expensive furniture after having conducted thorough personal research and perceived
significant differences among brands. The customer is said to exhibit _____ buying behavior.
a) dissonance-reducing b) variety-seeking c) complex d) habitual
36. _____ buying behavior is characterized by low consumer involvement but significant perceived brand differences.
a) Dissonance-reducing b) Variety-seeking c) Complex d) Habitual
37. _____ demand refers to business demand that ultimately comes from the demand for consumer goods.
a) Derived b) Modified c) Elastic d)Inelastic
38. When the total demand of a product is not dramatically affected by price changes, especially in the short run, it is
said to have _____ demand.
a) elastic b) marginal c) inelastic d) neutral
39. Purchasing agents often have authority to prevent salespersons from seeing users or deciders. In this sense, these
purchasing agents act as _____.
a) gatekeepers b) deciders c) influencers d) buyers
40. Which of the following is defined as systematically developing networks of supplier-partners to ensure an
appropriate and dependable supply of products and materials that they will use in making their own products or
resell to others?
a) Supplier search b) Supplier development c) Supplier selection d) Supplier evaluation
 41. Which of the following buying situations is viewed by the “out” suppliers as an opportunity to make a better offer
and gain new business?
a) New task b) Solutions selling c) Modified rebuy d) Straight rebuy
42. What role do influencers play in the buying center?
a) Define specifications and provide information for evaluating alternatives.
b) Initiate the buying proposal and help define product specifications.
c) Approve decisions made by other members of the buying center.
d) Select the supplier and arrange terms of purchase.
43. Which of the following is the first stage of the business buying process?
a) Supplier search b) General need description c) Performance review d) Problem recognition
44. The _____ market consists of schools, hospitals, nursing homes, prisons, and other institutions that provide goods
and services to people in their care.
a) government b) interpersonal c) institutional d) consumer
45. Which is the last step in the business buying process?
a) General need description c) Order-routine specification
b) Performance review d) Supplier selection
46. _____ markets require suppliers to submit bids, and normally they award the contract to the lowest bidder.
a) Business b) Consumer c) Government d) Institutional

II. ENUMERATION. List the 4 major influences on business buyer behavior. (4pts.)

III. ESSAY. Explain how the business market differs from the consumer market for a product such as automobiles . (5pts.)

Proverbs 17:24 “A discerning man keeps wisdom in view, but a fool’s eyes wander to the ends of the earth.”
GOD BLESS!
Prepared by: JOHN BERT M. HERMIDA