All Free Management Sciences MCQs with Answers

• A. market demand
• B. product demand
• C. services demand
• D. customer buying power

Explanation: Market demand is the total quantity of a product bought by a defined group of customers in a specified geographic area and period.

• A. raw material budgeting
• B. sales budget
• C. product budgeting
• D. quota system

Explanation: A sales budget is often fixed slightly below the sales forecast so that targets remain realistic rather than assuming the entire forecast…

• A. total demand potential
• B. current demand
• C. total market potential
• D. total production potential

Explanation: Total market potential is estimated by multiplying the number of potential buyers by the average quantity each buyer may purchase.

• A. external record
• B. private record
• C. public record
• D. internal record

Explanation: Sales information systems and customer databases are internal records because the company creates and controls these data for planning and…

• A. maximum
• B. expected
• C. minimum
• D. None of above

Explanation: A market forecast is the expected level of market demand under stated economic and marketing conditions.

• A. market equilibrium point
• B. vertical axis
• C. horizontal axis
• D. Company's equilibrium point

Explanation: In a market demand function, industry marketing expenditure is placed on the horizontal axis, while the resulting market demand is shown…

• A. penetrated market
• B. available market
• C. target market
• D. potential market

Explanation: A potential market consists of people who show interest in an offering but may not yet have access to it.

• A. marketing intelligence system
• B. market development system
• C. market record system
• D. market information system

Explanation: A marketing intelligence system uses organized sources and procedures to collect ongoing information about market and competitive…

• A. low brand awareness
• B. all of the above
• C. high price
• D. low availability

Explanation: A low share-penetration index may result from weak brand awareness, limited availability, or a price that discourages purchase.

• A. marketing management
• B. field work
• C. marketing intelligence on internet
• D. building marketing records

Explanation: Review and expert-opinion websites provide external information about customers, competitors and products, so they are part of…

• A. econometric analysis
• B. exponential analysis
• C. economic analysis
• D. market analysis

Explanation: Econometric analysis uses a set of equations to represent relationships among economic and market variables in a statistical system.

• A. target market index
• B. market penetration index
• C. potential market index
• D. available market index

Explanation: The market penetration index compares actual current demand with the total potential demand, showing how much of the possible market has…

• A. time-series analysis
• B. exponential smoothing
• C. exponential ratio method
• D. econometric analysis

Explanation: Time-series analysis, exponential smoothing and econometric analysis are established methods of forecasting from past sales data.

• A. demographic analysis
• B. natural environment analysis
• C. competitor's analysis
• D. socio cultural environment analysis

Explanation: Views about oneself, other people and nature are cultural and social beliefs, so their study belongs to analysis of the sociocultural…

• A. market-buildup method
• B. multiple-factor index method
• C. chain-ratio method
• D. both A and B

Explanation: Area market potential can be estimated by building the market from identifiable buyers or by applying a multiple-factor index to…

• A. market forecast
• B. demand forecast
• C. product forecast
• D. market share forecast

Explanation: A market forecast is the expected market demand at a specified level of industry marketing effort.

• A. target market
• B. available market
• C. penetrated market
• D. potential market

Explanation: The penetrated market consists of consumers who are actually buying the company’s product.

• A. marketing shade
• B. short-term marketing wave
• C. fade
• D. fad

Explanation: A fad is a consumer interest or activity that spreads quickly but lasts only briefly and is difficult to predict.

• A. marketing intelligence system
• B. market information system
• C. market development system
• D. market record system

Explanation: A marketing intelligence system obtains information about competitors, customers and market conditions from internal and external sources…

• A. target market
• B. available market
• C. potential market
• D. penetrated market

Explanation: An available market includes consumers who have interest in a product, sufficient income and access to it.