All Free Management Sciences MCQs with Answers
Every Management Sciences question in the bank, across all chapters, each with the correct answer and a written explanation. Free and unlimited, with no account needed.
3,770 questions · page 11 of 189
- A. Production concept
- B. Product concept
- C. Selling concept
- D. Marketing concept
Explanation: The production concept assumes that customers favour products that are readily available at low prices.
Correct answer: Production concept- A. Primary data
- B. Secondary data
- C. Experimental data
- D. Observational data
Explanation: Secondary data has already been collected and published by another organisation or for an earlier purpose.
Correct answer: Secondary data203. Which characteristic makes services more difficult to evaluate before purchase than physical goods?
- A. Standardisation
- B. Tangibility
- C. Intangibility
- D. Ownership transfer
Explanation: Services are intangible, so customers usually cannot inspect or test them fully before buying.
Correct answer: Intangibility- A. Market penetration
- B. Market development
- C. Product development
- D. Diversification
Explanation: Market development means taking an existing product into a new customer group, geographic area or usage market.
Correct answer: Market development- A. Indirect distribution
- B. Direct distribution
- C. Dual distribution
- D. Intensive distribution
Explanation: Direct distribution occurs when the producer sells to the final customer without independent intermediaries.
Correct answer: Direct distribution- A. Selective distribution
- B. Dual distribution
- C. Exclusive distribution
- D. Reverse distribution
Explanation: Dual distribution uses two or more channels to reach customers, such as a direct website and travel agencies.
Correct answer: Dual distribution- A. Market segmentation
- B. Promotion evaluation
- C. Product testing
- D. Channel selection
Explanation: Promotion evaluation measures the reach, communication effects or sales response of promotional activity.
Correct answer: Promotion evaluation- A. Customer acquisition cost
- B. Customer lifetime value
- C. Market share
- D. Average transaction value
Explanation: Customer lifetime value estimates the net value a customer is expected to generate over the whole relationship with the firm.
Correct answer: Customer lifetime value- A. Merchant wholesaler
- B. Retailer
- C. Agent or broker
- D. Manufacturer
Explanation: Agents and brokers facilitate transactions without normally taking legal ownership of the products.
Correct answer: Agent or broker- A. Integrated marketing communications
- B. Relationship marketing
- C. Internal marketing
- D. Social marketing
Explanation: Integrated marketing communications coordinates promotional tools to deliver a consistent and mutually reinforcing message.
Correct answer: Integrated marketing communications- A. Production orientation
- B. Product orientation
- C. Marketing orientation
- D. Selling orientation
Explanation: Marketing orientation starts with customer needs and coordinates organisational activities to satisfy them profitably.
Correct answer: Marketing orientation- A. Product modification
- B. Market development
- C. Diversification
- D. Channel expansion
Explanation: Product modification changes features, appearance or presentation of an existing product to improve its appeal.
Correct answer: Product modification- A. Value-based pricing
- B. Competition-based pricing
- C. Cost-plus pricing
- D. Psychological pricing
Explanation: Cost-plus pricing sets the selling price by adding a markup to the product's cost.
Correct answer: Cost-plus pricing- A. Intensive distribution
- B. Exclusive distribution
- C. Selective distribution
- D. Direct distribution
Explanation: Selective distribution uses a limited number of suitable intermediaries rather than every possible outlet.
Correct answer: Selective distribution- A. Family size
- B. Occupation
- C. Motivation
- D. Cultural tradition
Explanation: Motivation is a psychological factor that creates an internal drive to satisfy a need.
Correct answer: Motivation- A. Market penetration
- B. Market development
- C. Product development
- D. Diversification
Explanation: Product development means offering a new or substantially improved product to an existing customer market.
Correct answer: Product development- A. Public relations
- B. Direct marketing
- C. Trade promotion
- D. Personal selling
Explanation: Direct marketing communicates with identified customers and seeks an immediate or measurable response.
Correct answer: Direct marketing- A. Market modification
- B. Price skimming
- C. Channel reduction
- D. Brand elimination
Explanation: Market modification attempts to extend a product's life by finding new users, new uses or increased usage among existing users.
Correct answer: Market modification- A. Customer retention rate
- B. Market share
- C. Profit margin
- D. Sales turnover
Explanation: Market share is the firm's sales divided by total market sales, usually expressed as a percentage.
Correct answer: Market share- A. Consumer market
- B. Business market
- C. Reseller market
- D. Government market
Explanation: A business market consists of organisations that purchase goods or services for production, operations or resale.
Correct answer: Business market