* The questions below are copyright protected, and sharing it outside this class is prohibited
1. VisionTech Gaming, a leading manufacturer of virtual reality (VR) gaming systems,
might define its competitors as other VR gaming companies. However, from a(n)
________ perspective, it would consider all firms offering immersive entertainment
products.
A) industry
B) market
C) segment
D) niche
E) interdependent
2. Peak Performance Apparel, a company that creates specialized athletic gear for niche
sports like rock climbing and parkour, targets small, specific segments of the market that
are largely ignored by larger brands. Such firms are called ________.
A) Market leaders
B) Market challengers
C) Market followers
D) Market nichers
3. ________ are a type of SBU that often require heavy investments to finance their rapid
growth, particularly for acquiring new customers.
A) Cash cows
B) Question marks
C) Stars
D) Dogs
4. FlexFit Gear, a company that sells home workout equipment, is focusing on increasing
sales to its existing customers by offering special discounts and loyalty programs, without
changing its products. This strategy for growth is called ________.
A) market penetration
B) market development
C) product development
D) diversification
E) product concept
5. The pharmaceuticals division of Yonsei Health holds a low market share in a high-growth
market. According to the BCG matrix, the pharmaceuticals division of Yonsei Health can
be classified as a ________.
A) star
B) bear
C) question mark
D) cash cow
E) dog
6. Which of the following is NOT an accurate description of modern marketing?
A) Marketing is the creation of value for customers.
B) Marketing involves managing profitable customer relationships.
C) Marketing emphasizes selling and advertising exclusively.
D) Marketing involves satisfying customers' needs.
7. Which of the following is the third step of the marketing process?
A) designing a customer-driven marketing strategy
B) understanding the marketplace and customer needs
C) constructing an integrated marketing program that delivers superior value
D) building profitable relationships and creating customer delight
E) capturing value from customers to create profit and customer equity
8. ________ are human needs that are shaped by culture and individual personality.
A) Motives
B) Wants
C) Demands
D) Values
E) Exchanges
9. The selling concept is typically practiced ________.
A) to balance consumers' wants, company's requirements, and the society's long-run
interests
B) with products that offer the most in terms of quality, performance, and innovative
features
C) when the company focuses on building long-term customer relationships
D) with goods that buyers normally do not think of buying
E) by customer-driven companies
10. Which of the following terms refers to sellers being preoccupied with their own products
and losing sight of underlying consumer needs?
A) demand
B) societal marketing
C) value proposition
D) marketing myopia
E) conspicuous consumption
11. A ________ provides a holistic view of company within the broader environment?
A) SWOT analysis
B) BCG matrix
C) Product/Market Expansion Grid
D) customer value analysis
12. People tend to interpret new information in a way that will support what they already
believe. This is called ____________.
A) selective retention
B) selective distortion
C) cognitive dissonance
D) selective attention
E) cognitive bias
13. Briefly explain the BCG matrix.
In your answer, I expect you to mention the following:
- The purpose of using the BCG matrix, which is to analyze the current business portfolio.
- Its two dimensions: relative market share and market growth rate.
- How the two dimensions relate to economies of scale and the learning/experience curve,
as well as the product lifecycle curve.
- The four strategic business unit (SBU) categories: star, question mark, cash cow, and dog.
14. There are two firms, A and B, faced with a choice between alternatives. Their objective is
to maximize their individual profits, and these firms must make their decisions
simultaneously. The profits resulting from the combinations of their choices are presented
in the following table as a payoff matrix. Predict the decisions of both firms.
Firm B
Raise price No change Lower price
A’s Profit: $5 M A’s Profit: $5 M A’s Profit: $0 M
Raise price
B’s Profit: $0 M B’s Profit: $4 M B’s Profit: $3 M
Firm A
A’s Profit: $0 M A’s Profit: $0 M A’s Profit: $6 M
Lower price
B’s Profit: $4 M B’s Profit: $3 M B’s Profit: $2 M
Firm A: Raise price
Firm B: No change
