COLLEGE EXIT EXAMINATION PREPARED FOR STUDENTS OF ETHIOPIAN

BUMA 2023 ACADEMIC YEAR

PART I: INSTRUCTIONS:
1. Attempt all questions on the basis of specific instructions indica ted in each section.
2. Time allowed: 3 hours.
3. Do not turn this page until you are allowed to do so.
4. Put your answers in a separate answer sheet attached to the exam.
SECTION I. MULTIPLE CHOICES (25%): CHOOSE THE BEST ANSWER FOR EACH
QUESTION FROM THE ALTERNATIVES GIVEN. NOTE THAT THERE IS ONLY
ONE BEST ANSWER FOR EVERY QUESTION.
1. _____is products bought by individuals and organizations for further processing or for use in
conducting a business.
a. Consumer products
b. Services
c. Industrial products
d. Specialty products
2. All of the following would be ways to segment within the category of psychographic
segmentation EXCEPT:
a. social class.
b. occupation.
c. lifestyle.
d. personality.
3. The orange juice manufacturers know that orange juice is most often consumed in the
mornings. However, they would like to change this and make the drink acceptable
during other time periods during the day. Which form of segmentation would they need to work
with and establish strategy reflective of their desires?
a. gender segmentation
b. benefit segmentation
c. occasion segmentation
d. age and life-cycle segmentation
4. _______consists of dividing a market into distinct groups of buyers on the basis of needs,
characteristics, or behavior who might require separate products or marketing mixes.
a. Product differentiation
b. Market segmentation
c. Market targeting
d. Market positioning

5. _________is the process of evaluating each market segment's attractiveness and selecting one
or more segments to enter.
a. Mass marketing
b. Market segmentation
c. Market targeting
d. Market positioning
6. The stage is the product life cycle that focuses on expanding market and creating product
awareness and trial is the:
a. decline stage.
b. introduction stage.
c. growth stage.
d. maturity stage.
7. Which of the following is NOT one of the five stages of the buyer decision process?
a. need recognition
b. brand identification
c. information search
d. purchase decision
8. When a company reviews sales, costs, and profit projections for a new product to find out
whether these factors satisfy the company's objectives, they are in which of the following new
process development stages?
a. Concept development and testing.
b. Commercialization.
c. Business analysis.
d. Marketing strategy development.
9 A(n) is a name, term, sign, symbol, or design, or a combination of these that identifies the
maker or seller of a product or service.
a. product feature
b. sponsorship
c. brand
d. logo
10. A______ is any activity or benefit offered for sale that is essentially intangible and does not
result in the ownership of anything.
a. demand
b. basic staple
c. product
d. service
11. The holds that consumers will favor products that are available and highly affordable
(therefore, work on improving production and distribution efficiency).
a. product concept
b. production concept
c. production cost expansion concept
d. marketing concept
12. A company is in the stage of the new product development process when the company
develops the product concept into a physical product in order to assure that the product idea can
be turned into a workable product.
a. product development
b. commercialization
c. marketing strategy
d. business analysis
13. is screening new-product ideas in order to spot good ideas and drop poor ones as soon as
possible.
a. Idea generation
b. Concept development and testing
c. Idea screening
d. Brainstorming
14. Which of the following is central to any definition of marketing?
a. Demand management
b. Making a Profit
c. Customer relationships
d. Making a sale
15. According to the simple five-step model of the marketing process, a company needs to -------
- before designing a customer-driven marketing strategy.
a. Build profitable relationships with customers
b. Use customer relationship management to create full partnerships with key customers
c. Construct key components of a marketing program
d. Understand the marketplace and customer needs and wants
16. Which of the following represents the most dramatic force shaping a modern marketer’s
destiny?
a. Political environment
b. Technological environment
c. Natural environment
d. Partnership marketing
17. When backed by buying power, wants become --------------- --.
a. Demands
b. Social Needs
c. Exchanges
d. Self-Esteem needs
18. All of the following would be forces that might be contained in a company’s
microenvironment EXCEPT:
a. Economic forces.
b. The company itself.
c. Marketing channel firms.
d. Suppliers.
19. Which of the following marketing management concepts is most likely to leas to marketing
myopia?
a. Customer-driving marketing
b. Selling
c. Societal marketing
d. Production
20. The product concept says that a company should ----- --.
a. Devote its energy to making continuous product improvements
b. Make promoting products the top priority
c. Market only those products with high customer appeal
d. Focus on the target market and make products that meet those customers’ demands
21. The --------------- concept holds that achieving organizational goals depends on knowing the
needs and wants of target markets and delivering the desired satisfaction better than competitors
do.
a. Production
b. Product
c. Marketing
d. Selling
22. Which of the following reflects the marketing concept philosophy?
a. “We build them so you can buy them.”
b. “We’re in the business of making and selling superior products.”
c. “You won’t find a better deal anywhere.”

d. “We don’t have a marketing department, we have a customer department.”

23. The ------------ concept holds that firms must strive to deliver value to customers in a way
that maintains or improves both the consumer’s and society’s well being.
a. Societal marketing
b. Product
c. Marketing
d. Selling
24. Through ---------- , many companies today are strengthening their connections to all
partners, form providers of raw materials to components to final products that are carried to final
buyers.
a. Partnership relationship marketing
b. Customized marketing
c. Direct marketing
d. Deviated marketing
25. Marketing seeks to create and manage profitable customer relationships by delivering ---------
-- to customers.
a. Competitive prices
b. Superior value
c. Superior service
d. Superior promotion
26. Railroads were once operated based on the thinking that users wanted trains rather than
transportation, overlooking the challenge of other modes of transportation. This reflects the ------
---- --.
a. Production concept
b. Marketing concept
c. Product concept
d. Societal marketing concept
27. You have just taken a new position in an organization and you’re learning about the job
functions of your new colleagues. You observe that your marketing manager is heavily involved
in the process of building and maintaining profitable customer relationships. Your marketing
manager frequently speaks about the need to deliver superior customer value and satisfaction.
Your marketing is concerned with which one of the following?
a. Customer relationship management
b. Societal marketing concept
c. Web site hits
d. Donor marketing
28. At work, customers decide to satisfy needs and wants through exchange. What occurs at this
point?
a. Selling
b. Customer service
c. Marketing
d. Transaction marketing
29. Which of the following statements is correct?
a. Marketing is the term used to refer only to the sales function within a firm
b. Marketing managers usually don’t get involved in production or distribution decisions
c. Marketing is an activity that considers only the needs of the organization, not the needs of
society as a whole
d. Marketing is the activity, set of institution, and processes for creating, communicating
delivering, and exchanging offerings that have value of customers, clients, partners, and society
at large
30. According to the text, the most dramatic of the environments that affect marketing and
appears to be now shaping our world is the -------------- environment.
a. Natural
b. Demographic
c. Economic
d. Technological
31. Marketing management is---------------
a. Managing the marketing process
b. Monitoring the profitability of the company’s products and services
c. Developing marketing strategies to move the company forward
d. The art and science of choosing target markets and getting, keeping and growing customers
through creating, delivering, and communicating superior customer value
32. A transaction involves ---------- --.
a. At least two parties
b. Each party has something that might be of value to the other party
c. Each party is capable of communication and delivery
d. All of the above
33. A -------------is someone seeking a response (attention, a purchase, a vote, a donation)
form another party, called the --------- --.
a. Salesperson, customer
b. Fund raiser, contributor
c. Politician, voter
d. Marketer, prospect
34. In -------------- consumers may share a strong need that cannot be satisfied by an existing
product.
a. Negative demand
b. Latent demand
c. Declining demand
d. Irregular demand
35. Companies selling mass consumer goods and services such as soft drinks, cosmetics, air
travel, and athletic shoes and equipment spend a great deal of time trying to establish a superior
brand image in markets called ------- --.
a. Business markets
b. Global markets
c. Consumer markets
d. Nonprofit and governmental markets
36. Customers are showing greater price sensitivity in their search for ----------.
a. The right product
b. The right service
c. The right store
d. Value
37. The -------------- is practiced most aggressively with unsought goods, goods that buyers
normally do not think of buying, such as insurance, encyclopedias, and funeral plots.
a. Marketing concept
b. Selling concept
c. Production concept
d. Product concept
38. The --------- concept holds that consumers will favor those products that offer the most
quality, performance, or innovative features.
a. Product
b. Marketing
c. Production
d. Selling
39.______ reflects the perceived tangible and intangible benefits and costs to
customers.
a. Loyalty
b. Satisfaction
c. Value
d. Expectations
40____is the systematic design, collection, analysis, and reporting of data and findings relevant
to a specific marketing situation facing the company.
a. Marketing intelligence
b. MIS ( marketing information system)
c. Marketing research
d. Demographics
41. When a company identifies the parts of the market it can serve best and most profitable, it is
practicing---------- --.
a. Concentrated marketing
b. Mass marketing
c. Targeted marketing
d. Segmenting
42. Which one of the listed choices of positioning tasks is incorrect?
a. Identify a set of possible competitive advantages to build a position.
b. Survey frequent uses of the product.
c. Select an overall positioning strategy.
d. Effectively communicate and deliver the chosen position to the market.
43. A company or store gains a(n) ----------- by understanding customer needs better than
competitors do and delivering more value.
a. Competitive advantage
b. Positioning advantage
c. Cost advantage
d. Efficiency advantage
44. Mr. Azad and his staff have decided to use target marketing to reach their sales goals. Which
are their three steps (in order) to target marketing?
a. Market segmentation, market positioning, and target marketing.
b. Target market, market positioning, and market segmentation.
c. Market segmentation, target marketing, and market positioning.
d. Market alignment, market segmentation, and market positioning.
45. Which of the following would correctly be labelled as a cultural factor that would influence
consumer behaviour?
a. Family
b. Social class
c. Lifestyle
d. Reference group
46. Your firm has decided to localize its products and services to meet local market demands. A
good approach to use would be ----- segmentation.
a. Geographic
b. benefit
c. end-use
d. customer
47. Pendergraff Pet Supplies divides the pet market according to the owners’ race, occupation,
income, and family life cycle. What type of segmentation does Pendergraff use?
a. VALS
b. Benefit
c. End-use
d. Demographic
48. When Burger King targets different groups from children and teens to adults and seniors-with
different ads and media, it is practicing --------- segmentation.
a. Demographic
b. Age and life cycle
c. Psychographic
d. Behavioral
49. The practice of going after a large share of a smaller market or subsets of a few markets is
called:
a. Undifferentiated marketing.
b. Differentiated marketing.
c. Concentrated marketing.
d. Turbo marketing
50. When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is probably
using this type of segmentation. Which type of segmentation is it?
a. Age and life cycle
b. Gender
c. Behavior
d. Psychographic.
51. Cognitive dissonance occurs in which stage of the buyer decision process model?
a. Need recognition
b. Information search
c. Evaluation of alternatives
d. Postpurchase behavior
52. When competitors cannot easily copy this difference to promote, we say we have a(n) --------
---- difference.
a. Distinctive
b. Profitable
c. Preemptive
d. Superior
53. Which of the following is NOT one of the five stage of the buyer decision process?
a. Need recognition
b. Brand identification
c. Information search
d. Purchase decision
54. A company is practicing ----------- if it focuses on sub segments with distinctive
traits that may seek a special combination of benefits.
a. Micromarketing
b. Niche marketing
c. Mass marketing
d. Segment marketing
55. Technological advances, shifts in consumer tastes, and increased competition, all of which
reduce demand for a product are typical of which stage in the PLC?
a. Decline stage
b. Introduction stage
c. Growth stage
d. Maturity stage
56. ------------- is the narrowest marketing strategy.
a. Segmented strategy
b. Local marketing
c. Differentiated marketing
d. Mass marketing
57. According to the price/quality strategy matrix, when a company overprices its product in
relation to its quality it is considered to be using which type of strategy?
a. Good-value strategy.
b. Premium strategy.
c. Overcharging strategy.
d. Snob strategy.
58The total number of items that the company carries within its product lines refers to the --------
-- of the product mix.
a. Width
b. Depth
c. Length
d. Consistency
59. Using a successful brand name to introduce additional items in a given product category
under the same brand name (such as new flavors, forms, colors, added ingredients, or package
sizes) is called a(n):
a. Line extension
b. Brand extension
c. Multibranding
d. New brands
60. Consumer goods with unique characteristics or brand identification often requiring a special
purchase effort are called;
a. Custom products
b. Specialty products
c. Convenience products
d. Shopping products
61. When a company reviews sales, costs, and profit projections for a new product to find out
whether these factors satisfy the company’s objectives, they are in which of the following new
process development stages?
a. Concept development and testing
b. Commercialization
c. Business analysis
d. Marketing strategy development
62. If Mark Mars pays Hershey Foods Corporation for the right to use their name on his line of
T-shirts, then Mr. Mars is using which type of branding?
a. Licensed brand
b. Manufacture’s brand
c. Private brand
d. Co-brand
63. The first step in the new-product development process is thought to be:
a. Idea screening
b. Idea generation
c. Concept development and testing
d. Product development
64. The type of market the consists of a few sellers who are highly sensitive to each other’s
pricing and marketing strategies is called:
a. Pure competition
b. Monopolistic competition
c. Oligopolistic competition
d. Pure monopoly
e. Pure monopoly
65. Companies bringing out a new product fact the challenge of setting prices for the first time.
They can choose between two broad strategies what are these two broad strategies?
a. Product mix strategies and pricing mix strategies
b. Product line pricing and captive-product pricing
c. Market-skimming pricing and market-penetration pricing
d. Market- expansion pricing and market harvesting pricing
66. The process of setting a high price for a new product to gain maximum revenues layer by
layer form the segments willing to pay the high price is called:
a. Market – penetration pricing
b. Market – layer pricing
c. Market – skimming pricing
d. Market – saturation pricing
67. If a company’s objective were to reach masses of buyers that were geographically
dispersed at a low cost per exposure, the company would likely choose which of the
following promotion forms?
a. Advertising
b. Personal selling
c. Public elations
d. Sales promotion
68. _____is the general term for a buying and selling process that is supported by electronic
means.
a. Internet commerce
b. Web commerce
c. Computer commerce
d. Electronic commerce
69. A --------- is a promotion strategy that calls for using the sales force and trade
promotion to move the product through channels.
a. Puch strategy
b. Pull strategy
c. Blocking strategy
d. Integrated strategy
70. The process of dividing a total market into market groups so that persons within each group
have
relatively similar product needs is called:
* 1) segmenting
* 2) differentiating
* 3) target marketing
* 4) concentrating
71. The exchange value of a good service in terms of money is_________.
A. Price.
B. Product.
C. Buying.
D. Selling.
72. The orange juice manufacturers know that orange juice is most often consumed in the
mornings. However, they would like to change this and make the drink acceptable during other
time periods during the day. Which form of segmentation would they need to work with and
establish strategy reflective of their desires?
A. Gender segmentation.
B. Benefit segmentation
C. Occasion segmentation.
D. Age and life cycle segmentation
73. Which of the following best identifies how marketing must be understood today?
A. Satisfy customer needs. B. Marketing. C. Selling. D. Behaviour.
74. Which concept holds that consumers will not buy enough of organizations product unless it
takes large scale selling and promotion effort?
A. Marketing. B. Selling. C. Production. D. Product.
75. Need become _____ when they are directed to specific objects that might satisfy the need.
A. Wants B. Needs C. Demand. D. Flexibility.
76. 24._____ are wants for specific products that are backed up an ability and willingness to buy
them.
A. Demand. B. Wants. C. Needs. D. Desire
77. At which stage in the International Trade Cycle does a country usually import foreign goods?
A. Introduction stage. B. Growth stage. C. Maturity stage. D. Saturation stage.
78. Which of the following is NOT an element of the marketing mix?
A. Distribution. B. Product. C. Target market. D. Pricing
79. Techniques of sales promotions are _____.
A. Free samples. B. Free offers. C. Merchandising. D. All the above.
80. Which among the following is a Pull Strategy?
a) Trade promotion b) Consumer Promotion c) Sales Force Promotion d) None of these
81. Which tool of the promotional mix consists of short-term incentives to encourage the
purchase or sale of a product or service?
a) advertising b) public relations c) direct marketing d) sales promotion
82.Which of the following strategies is usually followed by B2C companies with respect to
promotion strategy?
a) Push strategy b) Pull strategy c) Blocking strategy d) Integrated strategy
83. Which of the following strategies is usually followed by B2B companies with respect to
promotion strategy?
a) Push strategy b) Pull strategy c) Blocking strategy d) Integrated strategy
84. Marketing and selling are _____.
A. Same. B. Different. C. Almost same D. Fully varies.