Which of the following statements concerning the new product development (npd) process is correct?

What is operations management?: a. An organisational function which produces goods and services. b. What all managers do when they deal with day-to-day activities c. The activity of producing goods and services. d. The process of satisfying the needs of internal and external customers.

c. The activity of producing goods and services.

Disneyland Paris is one of the largest and best known theme parks in Europe. In terms of the four V's (volume, variety, variation, visibility) how would you describe it?: a. High volume, low variety, high variation, high visibility b. High volume, high variety, high variation, high visibility c. High volume, high variety, low variation, high visibility d. High volume, low variety, high variation, low visibilityTerm

a. High volume, low variety, high variation, high visibility

Most operations produce a mixture of both goods and services. Which of the following businesses is closest to producing 'pure' services?: a. A Restaurant b. Steel company c. Counsellor/therapist d. IT company

Most operations produce a mixture of both goods and services. Which of the following businesses is closest to producing 'pure' goods?: a. Hairdresser b. Steel company c. Management consultant d. Physiotherapist

Operations can be classified according to their volume and variety of production as well as the degree of variation and visibility. Which of the following operations would be classified as high volume, low variety?: a. A fast food restaurant b. A family doctor c. A front office bank d. A carpenter

a. A fast food restaurant

Which of the following activities is not a direct responsibility of operations management?: a. Developing an operations strategy for the operation b. Planning and controlling the operation c. Determining the exact mix of products and services that customers will want d. Designing the operation's products, services and processes

Operations can be classified according to the degree of variation in demand and visibility of the operation as well as their volume and variety of production. Which of the following operations would be classified as high variation and high visibility?: a. A fast food restaurant b. A family doctor c. A front office bank d. A carpenter

Which of the following could be described as a low-volume operation?: a. Television manufacture b. A Taxi Service c. A fast food restaurant d. A theme park

Which of the following could be described as a low-visibility operation?: a. Clothes shop b. Retail banking c. Internet retailer d. Coffee bar

Which of the following could be described as a low-visibility operation?: a. A cement manufacturer b. A hairdresser c. A personal trainer d. A museum

If the operations function is not core to the business (e.g., Nike) it would be described as what?: a. A completer b. An implementer c. A competitor d. A driver

If the operations function is absolutely core to the business (e.g., Telip or Foxconn) it would be described as what?: a. A completer b. An implementer c. A competitor d. A driver

Which of the following jobs would most closely fit with the term “mass service”?: a. A surgeon b. A management consultant c. An operative in a call centre d. A solicitor

c. An operative in a call centre

There are five basic performance objectives, which apply to all types of operation. They are: a. Quality, speed, dependability, flexibility, price b. Quality, speed, error-free, flexibility, price c. Quality, speed, adaptability, flexibility, cost d. Quality, speed, dependability, flexibility, cost

d. Quality, speed, dependability, flexibility, cost

A company which specialises in high variety and the frequent introduction of new goods/services would seek to primarily focus on which of the performance objectives?: a. Speed b. Flexibility c. Quality d. CostTerm

Predictability of opening hours: a. Hospital b. Automobile Plant c. Bus company d. Supermarket

Keeping to the published timetable: a. Hospital b. Automobile Plant c. Bus company d. Supermarket

Delivering vehicles to dealers on time: a. Hospital b. Automobile Plant c. Bus company d. SupermarketTerm

There are four perspectives on operations strategy. The term 'core competency' is most closely associated with which perspective?: a. Top-down perspective b. Market requirements perspective c. Bottom-up perspective d. Operations resources perspectiveTerm

d. Operations resources perspectiveTerm

An order-winning factor could be described as: a. A factor which has to be above a particular level to be considered by the customer. b. A factor which may be of significance in other parts of the organisation. c. A factor which directly and significantly contributes to winning business. d. A factor which is at a higher level than the standard for the industry.

c. A factor which directly and significantly contributes to winning business.

A qualifying factor could be described as: a. A factor which has to be above a particular level to be considered by the customer. b. A factor which may be of significant in other parts of the organisation. c. A factor which directly and significantly contribute to winning business. d. A factor which is at a higher level than the standard for the industry. Term

a. A factor which has to be above a particular level to be considered by the customer. b. A factor which may be of significant in other parts of the organisation.

An approach for comparing the gap between market requirements and achieved performance is: a. Polar diagrams. b. The Hill methodology. c. The operations strategy matrix. d. The operations resources perspective.

Service shops are characterised as which of the following: a. Many customer transactions, involving limited contact time b. High-contact organisations where customers spend a considerable time in the service process c. Some customer contact, a degree of customisation and some staff discretion d. Product orientated with little customisation

c. Some customer contact, a degree of customisation and some staff discretion

In the context of the five performance objectives of an operation, the four types of flexibility are: a. Sequencing, loading, monitoring and control b. Bottom-up, top-down, market, strategy c. Product/service, mix, volume, delivery d. Breakdown, preventative, predictive, design-out

c. Product/service, mix, volume, delivery

If the customers value reliable delivery then the operation will need to excel at: a. Cost b. Quality c. Speed *d. Dependability e. Flexibility (products/service)

If the customers value fast delivery then the operation will need to excel at: a. Cost b. Quality c. Speed d. Dependability e. Flexibility (products/service) f. Flexibility (mix) g. Flexibility (volume and/or delivery)

Match the typical performance measure with the appropriate performance objective. Efficiency is a measure of: a. Quality b. Speed c. Dependability d. Flexibility e. Cost

Scrap level is a measure of: a. Quality b. Speed c. Dependability d. Flexibility e. Cost

Match the typical performance measure with the appropriate performance objective. Average batch size is a measure of: a. Quality b. Speed c. Dependability d. Flexibility e. Cost

Service shops are characterised as which of the following: a. Many customer transactions, involving limited contact time b. High-contact organisations where customers spend a considerable time in the service process c. Some customer contact, a degree of customisation and some staff discretion d. Product orientated with little customisation

c. Some customer contact, a degree of customisation and some staff discretion

The main types of manufacturing process do not include: a. project b. jobbing c. batch d. massive e. continuous

Which of the following best characterises operations strategy?: a. A large number of relatively unimportant decisions b. Planning in the short term c. Considering highly aggregated data d. Focusing on detail

c. Considering highly aggregated data

Which is the correct order for process types starting with low volume/high variety and moving to high volume/low variety? a. Project processes, jobbing processes, batch processes, mass processes, continuous processes b. Project processes, batch processes, mass processes, jobbing processes, continuous processes c. Batch processes, project processes, jobbing processes, mass processes, continuous processes d. Jobbing processes, batch processes, mass processes, continuous processes, project processes

a. Project processes, jobbing processes, batch processes, mass processes, continuous processes

Which one of the following statements should be considered as part of a broad definition of design activity?: a. It is intended to satisfy the needs of customers b. It applies to both products (or services) and systems/processes c. It is in itself a transformation process d. It starts with a concept, which ends up translated into something, which can be created e. All of the above

Which of the following operations would be classified as high volume, low variety?: a. A fast food restaurant b. A family doctor c. A front office bank d. A carpenter

a. A fast food restaurant

Which of the following is an advantage of the design funnel (or stage gate) approach?: a. Designs employ the latest and best technology available b. Because designs are funnelled toward the prototyping phase, marketing staff do not need to be involved c. Multi-disciplinary teams can reduce the New Product Development (NPD) lead-time. d. Some concepts are eliminated early in the design process before high costs are incurred

d. Some concepts are eliminated early in the design process before high costs are incurred

Which of the following can be used to reduce New Product Development (NPD) lead time?: a. Sequential processes b. Concurrent processes c. Polar diagrams d. Input-transformation-output diagrams

Which of the following should always be present during a design process?: a. The voice of reason b. The voice of the customer c. The voice of the designer d. The voice of the accountant

b. The voice of the customer 

Which of the following best describes the concurrent design approach?: a. A single person undertaking several business processes at the same time b. Using the high-speed of advanced parallel processing computers to simulate designs in real-time c. Each design process being independently performed by a different function in a sequential manner d. Forming multi-functional teams to allow the different design processes to take place at the same time

d. Forming multi-functional teams to allow the different design processes to take place at the same time

Which of the following best explains why not all designs can be taken to market?: a. Costs increase during the design process, so it not economical to take all ideas for new products/service to the market b. New design technologies are expensive and inflexible c. Customers might become confused if they were offered too many choices d. Because costs decrease during the design process, the number of potential ideas increases and this would become too confusing for the company.

a. Costs increase during the design process, so it not economical to take all ideas for new products/service to the market

Which of the following is a benefit of applying Quality Function Deployment (QFD): a. The design function is allowed to be creative by preventing interference from the marketing function b. Designers are allocated to projects to which they are best suited c. Technical constraints and costs are ignored as customer needs are made paramount d. The technical features that are most important to customers are identified

d. The technical features that are most important to customers are identified

In the context of planning and control, determining how much to do is known as: a. Scheduling b. Loading c. Sequencing d. Monitoring & Control

In the context of planning and control, determining whether activities are going to plan is known as: a. Scheduling b. Loading c. Sequencing d. Monitoring & Control

d. Monitoring & Controld. Monitoring & Control

In the context of planning and control, determining in what order to do things is known as: a. Scheduling b. Loading c. Sequencing d. Monitoring & Control

In the context of planning and control, determining when to do things is known as: a. Scheduling b. Loading c. Sequencing d. Monitoring & Control

Which of the following best characterises the term “Make to Stock (MTS)”?: a. Producing products in anticipation of demand b. Only manufacturing items when there is a well-defined customer demand. c. Manufacturing semi-finished components or assemblies based on a forecast and configuring these to meet the requirements of specific customer orders d. Using human judgment to decide how customer orders should be satisfied rather than using a computer

a. Producing products in anticipation of demand

Which of the following best characterises the term “Make to Order (MTO)”?: a. Producing products in anticipation of demand b. Only manufacturing items when there is a well-defined customer demand. c. Manufacturing semi-finished components or assemblies based on a forecast and configuring these to meet the requirements of specific customer orders d. Using human judgment to decide how customer orders should be satisfied rather than using a computer

c. Manufacturing semi-finished components or assemblies based on a forecast and configuring these to meet the requirements of specific customer orders

Which of the following best characterises the term “Resource to Order (RTO)”?: a. Producing products in anticipation of demand b. Only manufacturing items when there is a well-defined customer demand. c. Manufacturing semi-finished components or assemblies based on a forecast and configuring these to meet the requirements of specific customer orders d. Using human judgment to decide how customer orders should be satisfied rather than using a computer

b. Only manufacturing items when there is a well-defined customer demand.

which one of the following statements best characterises the reason why an organisation would employ a Resource to Order (RTO) policy?: a. To allow customer requirements to be met very quickly b. To delay purchasing and material processing costs until a firm customer order had been received c. To facilitate the production of standardised products d. To allow variations in customer demand to be handled by building stocks

b. To delay purchasing and material processing costs until a firm customer order had been received

If a greater load were applied to a resource with fixed capacity (e.g., more customers needed to be processed at a supermarket checkout) what would happen to the average queue length?: a. The average queue length would remain constant b. The average queue length would decrease c. The average queue length would increase d. There is insufficient information in the question to determine what will happen to average queue lengths

c. The average queue length would increase

Which of the following operations would normally be considered the most difficult to control?: a. Fast food outlet b. Car Manufacturer c. Care provision for old people d. Production of electricity

c. Care provision for old people d. Production of electricity

Which of the following best defines “P:D ratio”?: a. The ratio of the people directly working on products or services compared to the number of people working in support functions b. The ratio of the cost of providing products that meet specification compared to the cost of rectifying faults c. The ratio of the time it takes to provide a product to a customer compared to the time the customer is prepared to wait d. The ratio of the capacity available on a resource compared to the demand applied

c. The ratio of the time it takes to provide a product to a customer compared to the time the customer is prepared to wait

Which of the following is an advantage of a “Resource to Order (RTO)” approach?: a. Customer orders can be satisfied almost immediately b. Activity in an organisation is only initiated once an a customer order has been received c. There is only ever a need to provide “C” class items d. Health and safety legislation is enforced less rigorously when this approach is applied.

b. Activity in an organisation is only initiated once an a customer order has been received c. There is only ever a need to provide “C” class items

Which of the following is an advantage of a “Make to Stock (MTS)” approach?: a. Customer orders can be satisfied almost immediately b. Activity in an organisation is only initiated once an a customer order has been received c. There is only ever a need to provide “C” class items d. Health and safety legislation is enforced less rigorously when this approach is applied.

a. Customer orders can be satisfied almost immediately

In addition to operations, what other function would need to be closely involved in a medium term capacity planning exercise?: a. Marketing b. HR c. Finance d. Technical/Design

Which of the following approaches best illustrates demand management in an artificial ski slope?: a. Reduced prices for parties during the summer b. Increasing the number of ski instructors at peak time c. Opening longer hours with the use of floodlights at peak time d. Increasing the speed of the tow bar in order to cope with more customers per hour

a. Reduced prices for parties during the summer

The chase demand strategy for dealing with demand fluctuations is best described as?: a. Manufacturing at a constant rate and building stocks for times of high demand b. Using advanced forecasting methods c. Adding capacity at times of high demand d. Adjusting prices to encourage demand at times when it would naturally be low

c. Adding capacity at times of high demand

The level capacity strategy for dealing with demand fluctuations is best described as?: a. Manufacturing at a constant rate and building stocks for times of high demand b. Using advanced forecasting methods c. Adding capacity at times of high demand d. Adjusting prices to encourage demand at times when it would naturally be low

a. Manufacturing at a constant rate and building stocks for times of high demand b. Using advanced forecasting methods

Which of the following best describes extrapolative forecasting of sales?: a. Producing a forecast based on the judgement of an individual b. Producing a forecast based on the judgement of a group of marketing and operations staff c. Producing a forecast by analysing current economic conditions such as oil prices d. Producing a forecast by analysing sales data collected in the past using a mathematical model

d. Producing a forecast by analysing sales data collected in the past using a mathematical model

Which of the following are the three fundamental approaches to forecasting?: a. Individual; Team; Hierarchical b. B2B; B2C; Mixed c. Judgement; Extrapolation; Prediction d. Customer; Market; Economic

c. Judgement; Extrapolation; Prediction d. Customer; Market; Economic

Which of the following are examples of valid sequencing rules?: a. Tactical; Strategic; Intermediate b. Make to Stock (MTS); Make to Order (MTO); Resource to Order (RTO) c. First in First Out (FIFO); Earliest Due Date (EDD); Shortest Job d. Judgement; Extrapolation; Prediction

c. First in First Out (FIFO); Earliest Due Date (EDD); Shortest Job

Which of the following statements is true – stock remains constant in a warehouse when: a. Material inputs are equal to material outputs b. Material inputs are lower than material outputs c. Material inputs are greater than material outputs d. Material outputs are greater than material inputs

a. Material inputs are equal to material outputs

Which of the following statements is true – stock increases in a warehouse when: a. Material inputs are equal to material outputs b. Material inputs are lower than material outputs c. Material outputs are greater than material inputs d. Material outputs are lower than material inputs

d. Material outputs are lower than material inputs

Which of the following statements is true – stock decreases in a warehouse when: a. Material inputs are equal to material outputs b. Material inputs are greater than material outputs c. Material outputs are lower than material inputs d. Material outputs are greater than material inputs

d. Material outputs are greater than material inputs

For a product such as a car, how would a fastener such a screw or washer be categorised under the ABC inventory classification system?: a. Class A b. Class B c. Class C d. Fasteners are too small to fit with the ABC inventory classification system

What is the function of a Re-order Point (ROP) system?: a. To classify stock items according to the 80:20 rule b. To calculate the optimum quantity to purchase or manufacture any given item c. To determine which suppliers should be chosen to satisfy purchase orders d. To trigger replenishment orders for stock items

d. To trigger replenishment orders for stock items

What is meant by an Economic Order Quantity (EOQ)?: a. The optimum quantity for purchasing or manufacturing an item b. A technique for negotiating with suppliers to obtain volume discounts c. Triggering orders at the appropriate time to arrive Just-in-Time (JIT) d. The study of the international economy to decide whether to stockpile commodities such as oil or steel

a. The optimum quantity for purchasing or manufacturing an item

When determining an Economic Order Quantity (EOQ) which two costs are balanced?: a. The cost of conformance and the cost of non-conformance for any purchase/manufacturing order b. The opportunity costs of losing a customer order and the cost of advertising c. The cost of stock holding and the cost of ordering d. The cost of an order being late and the cost of transportation

c. The cost of stock holding and the cost of ordering

Which of the following is a benefit of stock reduction?: a. The total value of assets on the balance sheet is increased b. Cash is released for investment c. Volume discounts for purchased items can be negotiated d. Material moves more slowly through the supply chain thus reducing energy costs

b. Cash is released for investment

Which of the following best defines the Japanese derived term “heijunka”?: a. Applying “fool-proofing” techniques b. Smoothing production or delivery c. Continuous improvement d. A system used to facilitate good housekeeping in the work environment

b. Smoothing production or delivery

Which of the following best defines Poke-Yoke?: a. Smoothing production b. A pull system c. A push system d. Fool-proofing

Kanban squares is an approach that facilitates the implementation of which of the following?: a. A push system b. A pull system c. An information system d. A hierarchical system

What is the main disadvantage of kanban squares as compared to kanban cards?: a. Kanban squares are expensive to implement b. Kanban squares are only applicable for push systems c. Kanban squares depend on line of sight d. Kanban squares require a sophisticated computer system

c. Kanban squares depend on line of sight

Muda is best described as?: a. Quality circles b. Waste c. Empowerment d. Rate levellingTerm

If a series of processes are linked by Kanban squares, what happens if one of the processes breaks down?: a. All of the processes that had not broken down would need to stop in a short time b. All of the processes that had not broken down could carry on working indefinitely c. If Kanban squares are employed, breakdowns have no effect irrespective of how often they occur d. The Kanban squares would automatically sub-contract work to another company

a. All of the processes that had not broken down would need to stop in a short time

A pull system can be implemented by using which of the following?: a. The 80:20 rule b. Kanban squares c. SERVQUAL d. Scientific management

According to the principles of Statistical Process Control (SPC), measurements have two components. These are: a. Quantitative and qualitative b. Manufacturing quality and service quality c. Strategic and tactical d. Special causes and random variations

d. Special causes and random variations

In the context of quality management, which of the following best describes a type II error?: a. A defective item being sold to a customer b. A defective item being scrapped c. An item of acceptable quality being sold to a customer d. An item of acceptable quality being scrapped

d. An item of acceptable quality being scrapped

In the context of quality management, which of the following best describes a type I error?: a. A defective item being sold to a customer b. A defective item being scrapped c. An item of acceptable quality being sold to a customer d. An item of acceptable quality being scrapped

a. A defective item being sold to a customer

Which department is primarily responsible for ensuring that promises made to customers concerning the product or service can in reality be delivered by the operation?: a. Marketing b. Operations c. Product/service development d. All of the above

The preferred method for achieving total quality in process output is?: a. Build and install an error-proof process and maintain it b. Rely on operator self-inspection and self-correction c. Perform inspection at the next process d. Rely on a team of highly trained and dedicated inspectors e. Trust customers to discover errors and help correct them

a. Build and install an error-proof process and maintain it

Which of the following is a benefit of applying Statistical Process Control (SPC)?: a. It is only necessary to undertake sample inspection b. SPC makes sure 100% inspection is always undertaken c. No inspection is needed whatsoever d. Statistics are produced which can help to forecast future demand for products

a. It is only necessary to undertake sample inspection

Which of the following best characterises six sigma?: a. It is an approach that aims to reduce process variability b. It is a technique for improving quality in only six steps c. It is a technique for facilitating good housekeeping in the working environment d. It is a technique for improving service quality by means of gap analysis

a. It is an approach that aims to reduce process variability

Which of the following is at the core of ISO9000?: a. Using mathematic models to optimise design quality b. Differentiating between special causes and random variations in processes c. Facilitating good housekeeping in the working environment using the 5S approach d. Documenting business processes

d. Documenting business processes

Which of the following statement best describes a quality circle?: a. The cycle of improvement that underpins the philosophy of Kaizen b. An alternative to a Kanban square c. The practice of documenting procedures in order to eventually achieve ISO9000 accreditation d. A group of workers who collaborate to improve quality in the workplace

d. A group of workers who collaborate to improve quality in the workplace

Workers should be selected, trained and developed methodically to perform their tasks: a. Scientific management b. Behavioural approach c. Empowerment d. Flexible working

Which of the following best describes ergonomics?: a. The study of interpersonal relationships in industry b. The science of selecting the right person to do a particular job c. The science of designing equipment so that it is easy for human beings to use d. The science of relating self-esteem to motivation

c. The science of designing equipment so that it is easy for human beings to use

Which of the following statements is compatible with McGregor’s theory Y?: a. Effort in work is as natural as effort in play b. People need to be coerced c. People want to be directed d. The application of scientific management leads to high levels of worker motivationTerm

a. Effort in work is as natural as effort in play

Which one of the following best describes division of labour?: a. Breaking up complex jobs into smaller tasks b. Dividing people into skilled and unskilled groups c. Ensuring there are enough staff to meet customer needs d. Choosing an appropriate shift pattern

a. Breaking up complex jobs into smaller tasks

Which one of the following is not an advantage of a fixed-position layout?: a. Very high mix and product flexibility b. Product or customer not moved or disturbed c. Can mean much movement of plant and staff d. High variety of tasks for staff

c. Can mean much movement of plant and staff

Ergonomics is concerned with which one of the following?: a. The physical aspects of an individual employee's workplace b. Ensuring pay rates are fair for the work undertaken by an employee c. Management promoting team spirit in the working environment d. The calculation of profit margins on manufactured productsTerm

a. The physical aspects of an individual employee's workplace

Ergonomics is not concerned with which of the following:   a. Working temperatures b. Illumination levels c. Supervisory skills d. Noise levels

Regular flow for repetitive work: a. Fixed position layout b. Process layout c. Cell layout d. Product layout

Highest variable costs but very flexible: a. Fixed position layout b. Process layout c. Cell layout d. Product layout

Giving staff the authority to make changes to the job itself. a. Division of labour b. Scientific management c. Ergonomics d. Behavioural approach e. Empowerment

Which of the following best describes a learning curve?: a. A graph that shows that the time taken to undertake a task reduces the more times it is repeated b. A graph that shows that job satisfaction increases if more training opportunities are provided c. A graph that shows the skill of an individual worker improves their overall productivity d. A graph that shows the level of motivation of an individual increases their ability to learn a new task

a. A graph that shows that the time taken to undertake a task reduces the more times it is repeated b. A graph that shows that job satisfaction increases if more training opportunities are provided

Marketing Research refers to: a) Analysis of all of a company's marketing functions b) Analysis of markets c) Analysis of customers d) Analysis of competitors

a) Analysis of all of a company's marketing functions

In consumer buying behaviour, a ‘routine response’ is where there is?: a) Low involvement / very limited information search b) Unfamiliar brand choice in a familiar product category c) High involvement / high information needs d) Low to medium involvement / very limited information search

a) Low involvement / very limited information search

The supply curve: a) Occurs where supply and demand meet b) Shows how much suppliers are able and willing to supply, at any given price level c) Changes when supply and demand functions change d) Shows how much is demanded at any given price

b) Shows how much suppliers are able and willing to supply, at any given price

A price skimming strategy is where?: a) Price is determined by making sure marginal costs are covered b) Firms aim to get the highest price that each buyer is prepared to pay, so will discriminate between buyers c) A new product starts with a high price which is gradually lowered to segments of late adopters and laggards d) A product starts with a low price, then aims to gradually increase to encourage trial of a new productTerm

c) A new product starts with a high price which is gradually lowered to segments of late adopters and laggards

In the case of international marketing, centralisation of marketing activity is where: a) Programme objectives as well as evaluation principles are often standardised but message development and choice of channel are subject to adaptation b) Risks and opportunities are shared between companies in different countries c) The parent company's marketing team is responsible for planning campaigns and for developing communication policies, procedures and strategies and the marketing departments in the host country follow these policies. d) Policy making and planning lie with the organisation's marketing department in the host countries with partial or full autonomy.

c) The parent company's marketing team is responsible for planning campaigns and for developing communication policies, procedures and strategies and the marketing departments in the host country follow these policies.

In the case of international marketing, full decentralisation of marketing activity is where: a) Programme objectives as well as evaluation principles are often standardised but message development and choice of channel are subject to adaptation b) Risks and opportunities are shared between companies in different countries c) The parent company's marketing team is responsible for planning campaigns and for developing communication policies, procedures and strategies and the marketing departments in the host country follow these policies. d) Policy making and planning lie with the organisation's marketing department in the host countries with partial or full autonomy.

d) Policy making and planning lie with the organisation's marketing department in the host countries with partial or full autonomy.

Marketing provides the interface between: a) Suppliers and the organisation b) Suppliers and customers c) Customers and wholesalers d) Customers and the organisation

d) Customers and the organisation

Which of the following is NOT a function of product packaging?: a) Handling and promotion b) Transport c) Service delivery d) Storage

A monopoly is where: a) There is only one supplier to the market and where there are few substitutes for a product/service b) The market is dominated by a small number of sellers c) The market structure shows some but not all features of competitive markets d) The number of buyers to sellers in the market is high and the influence on the market of an individual buyer or seller is low

a) There is only one supplier to the market and where there are few substitutes for a product/service

A Strategic Alliance is?: a) Where two companies agree to fix prices b) A means of sharing risks and opportunities between companies in different countries c) Where two companies agree not to compete in the same market d) Where two companies agree not to co-operate in the same market

b) A means of sharing risks and opportunities between companies in different countries

Market Research refers to: a) Analysis of all of a company's marketing functions b) Analysis of markets c) Analysis of customers d) Analysis of competitors

Mission statements.... a) Describe the customer orientation or business philosophy b) Are the means by which objectives will be fulfilled c) State the overall goals to be achieved in financial terms d) Deliver competitive advantage through positioning

a) Describe the customer orientation or business philosophy

Qualitative Marketing Research is?: a) Large scale data which may be reliable but its meaning may not be valid b) Research which is quick and relatively inexpensive c) Rich in meaning but usually limited to small samples d) Research which is expensive and time consuming

c) Rich in meaning but usually limited to small samples

Quantitative Marketing Research is?: a) Large scale data which may be reliable but its meaning may not be valid b) Research which is quick and relatively inexpensive c) Rich in meaning but usually limited to small samples d) Research which is expensive and time consuming

a) Large scale data which may be reliable but its meaning may not be valid

Brand Equity is: a) The value premium that a company realises from a product with a recognisable name as compared to its generic equivalent. b) The logo that a company uses to promote a product. c) The marketing communications that a company uses to promote a product. d) The advertising that a company uses to promote a product.Term

a) The value premium that a company realises from a product with a recognisable name as compared to its generic equivalent.

In marketing, targeting is: a) The process of sending marketing communications messages to customers. b) The process by which customers in markets with some heterogeneity can be grouped into smaller, more similar or homogeneous segments. c) The decision about which marketing communications messages to use for which customers. d) The decision about which segments a business decides to prioritise for its sales and marketing efforts.

c) The decision about which marketing communications messages to use for which customers.

Direct competitors are: a) Competitors who may appear different in form, but satisfy a fundamentally similar need b) Competitors who use the same distribution channels to reach customers c) Competitors who are generally similar in form and satisfy customers' needs in a similar way d) Companies who target the same market segments

c) Competitors who are generally similar in form and satisfy customers' needs in a similar way

Marketing becomes important when a) Demand chases limited supply. b) Supply chases limited demand. c) Demand chases limited sales. d) Sales chases limited demand.

b) Supply chases limited demand.

Demand based pricing is where?: a) Price is determined by making sure marginal costs are covered. b) A product starts with a low price, then aims to gradually increase to encourage trial of a new product. c) A new product starts with a high price which is gradually lowered to segments of late adopters and laggards. d) Firms aim to get the highest price that each buyer is prepared to pay, so will discriminate between buyers. Term

d) Firms aim to get the highest price that each buyer is prepared to pay, so will discriminate between buyers. Term

The S curve occurs where?: a) Rapid growth appears in a potential market, leading to saturation. b) Saturation stifles growth in a potential market. c) A market has potential but fails to achieve growth. d) A saturated market continues to show slow growth.

a) Rapid growth appears in a potential market, leading to saturation.

21. Marketing objectives are?: a) Statements of strategic vision. b) Measurable targets stating where the business wishes to be and when it intends to be there. c) The means by which marketing plans are evaluated. d) Descriptions of the customer orientation or business philosophy.

b) Measurable targets stating where the business wishes to be and when it intends to be there.

In lifecyle targeting, a family household where the youngest child is under six is called?: a) A Full Nest 1. b) A Partnership. c) A Bachelor. d) An Empty Nest.

Marketing orientation is: a) A group of actions taken by a business to support its sales and service staff in considering client needs and satisfaction as their major priorities. b) An organisational orientation that believes success is most effectively achieved by satisfying consumer demands. c) A strategic focus on meeting operational needs above customer demands. d) A sales focus aiming to distribute company products over the widest possible market.

b) An organisational orientation that believes success is most effectively achieved by satisfying consumer demands.

Marketing intelligence is: a) The research undertaken by people who work in the marketing department. b) The analysis of company accounts and purchasing trends. c) The segmentation of the marketing department based on demographic data. d) A relatively unstructured approach to gathering information about the marketing environment.

d) A relatively unstructured approach to gathering information about the marketing environment.

____________ is a form of corporate strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. a) Market penetration. b) Market development. c) Product development. d) Diversification.

Green Organic Inc. is a company that is currently marketing a new range of organic fruits and vegetables to their existing markets in UK. Green Organic Inc. is engaging in the _______________ strategy. a) Product development. b) Market development. c) Diversification. d) Market penetration

The disadvantages of using the internet as an advertising medium are: a) Limited visual presentation, no audience guarantees, casual browsing, irritation possible, reliance on search engines. b) Messages changed quickly, interactivity, inexpensive, leads from other sites, large audience, direct sales possible. c) Customers can comment on your products, competitors can research your offering, distributors can offer your products online. d) Websites can tailor their adverts to customer preferences, many advertisers can use the same visual space, optimisation agents can give you greatest coverage.

a) Limited visual presentation, no audience guarantees, casual browsing, irritation possible, reliance on search engines.

Which of the following is NOT part of the collaborative model of integrated marketing communications?: a) Consent based dialogue. b) Invasion of privacy. c) Radical innovation. d) Mutual benefits.

In consumer buying behaviour, a ‘limited decision making purchase’ is where there is?: a) Low involvement / very limited information search. b) Unfamiliar brand choice in a familiar product category. c) High involvement / high information needs. d) Low to medium involvement / very limited information search.

b) Unfamiliar brand choice in a familiar product category.

The demand curve?: a) Occurs where supply and demand meet. b) Shows how much suppliers are able and willing to supply, at any given price level. c) Changes when supply and demand functions change. d) Shows how much is demanded at any given price.

d) Shows how much is demanded at any given price.

A price saturation strategy is where?: a) Price is determined by making sure marginal costs are covered. b) Firms aim to get the highest price that each buyer is prepared to pay, so will discriminate between buyers c) A new product starts with a high price which is gradually lowered to segments of late adopters and laggards. d) A product starts with a low price, then aims to gradually increase to encourage trial of a new product

d) A product starts with a low price, then aims to gradually increase to encourage trial of a new product

The Chartered Institute of Marketing (2005) defines marketing as: a) The customer function that ensures businesses make money. b) The simulation of a marketing business environment. c) The strategic business function that creates value by stimulating, facilitating and fulfilling customer demand. d) The communications environment that ensures businesses achieve their financial objectives.

c) The strategic business function that creates value by stimulating, facilitating and fulfilling customer demand.

Starbucks plans to expand to 1500 stores in China by 2020. This business expansion plan has taken place since 2016. Identify which type of marketing plan had been adopted. a) Operational Plan b) Tactical Plan c) Contingency Plan d) Strategic Plan

There is a product ABC in your company that is experiencing a rapid rate of growth and is targeted mostly at the ‘early majority’ buyers. Identify the stage of the product life cycle of product ABC. a) Introduction b) Growth c) Maturity d) Decline

Robin wants to find the perfect gift for her grandparents' 50th wedding anniversary. She started looking for the gift last month and expects to spend another couple of months if needed to find a gift they will both like. Robin is engaging in .... a) Routine response purchasing. b) A limited decision making purchase. c) An extensive decision making purchase. d) An impulse purchase.Term

c) An extensive decision making purchase.

19. _______________ involves tactical, short-term incentives that encourage a target audience to behave in a certain way. a) Advertising b) Personal selling c) Sales promotion d) Public relations

Define the term market segmentation. a. Identifying the distinct profile of a single person based upon a number of characteristics. b. Identifying the general characteristics of the population at large. c. A means of identifying sub groups from the larger population based upon clearly identified common traits and characteristics. d. A means of identifying businesses based on their supply chain. Term

c. A means of identifying sub groups from the larger population based upon

Complete the following sentence: Part of the responsibility of a marketing-orientated organisation is to get the right product: a) To the customer before the competitors do. b) To the consumer with the right marketing mix. c) To the right place at the right time. d) To the best channel intermediary.

c) To the right place at the right time.

23. Indirect competitors are: a) Competitors who may appear different in form, but satisfy a fundamentally similar need. b) Competitors who use the same distribution channels to reach customers. c) Competitors who are generally similar in form and satisfy customers' needs in a similar way. d) Companies who target different market segments.

a) Competitors who may appear different in form, but satisfy a fundamentally similar need.

24. A marketing channel can be defined as: a) The price point at which a company sets their goods or services. b) The direct way in which an organisation attempts to communicate with various target audiences. c) The process through which staff deliver services to customers. d) The structure linking a group of individuals or organisations through which a product or service is made available to the consumer or industrial user. Term

d) The structure linking a group of individuals or organisations through which a product or service is made available to the consumer or industrial user.

25. A SMART objective is: a) Sufficient, Meaningful, Altruistic, Reliable, Transparent. b) Simple, Measurable, Altruistic, Reliable, Transparent. c) Simple, Measurable, Achievable, Realistic, Timely. d) Sufficient, Meaningful, Achievable, Realistic, Timely.

c) Simple, Measurable, Achievable, Realistic, Timely.

13. In the context of strategy, which of the following statements is true?: a) Marketing strategy is formulated before operations strategy. b) Marketing strategy is formulated after operations strategy. c) Marketing strategy and operations strategy are formulated simultaneously. d) Marketing strategy and operations strategy are independent of one another.

a) Marketing strategy is formulated before operations strategy.

14. The product mix is: a) The total range of products that a company offers to satisfy customers’ needs. b) The total range of marketing activities a company uses to communicate with customers. c) The range of brands that a company offers to customers. d) The range of services that a company offers to customers.

a) The total range of products that a company offers to satisfy customers’ needs.

Which of the following positioning criteria best suits the scenario where beer marketers decide to launch different marketing programs for light and heavy beer drinkers? a) Positioning by specific product features. b) Positioning by user categories. c) Positioning by usage occasions. d) Positioning against another product. Term

b) Positioning by user categories.

Customer orientation is: a) A group of actions taken by a business to support its sales and service staff in considering client needs and satisfaction as their major priorities. b) An organisational orientation that believes success is most effectively achieved by satisfying consumer demands. c) A strategic focus on meeting operational needs above customer demands. d) A sales focus aiming to distribute company products over the widest possible market.

a) A group of actions taken by a business to support its sales and service staff in considering client needs and satisfaction as their major priorities.

The promotional mix is: a) The price point at which a company sets their goods or services. b) The direct way in which an organisation attempts to communicate with various target audiences. c) The process through which staff deliver services to customers. d) The structure linking a group of individuals or organisations through which a product or service is made available to the consumer or industrial user.

b) The direct way in which an organisation attempts to communicate with various target audiences.

In marketing planning, strategies are: a) Processes that link the marketing and operations functions. b) The overarching mission of the organisation. c) The means by which objectives will be fulfilled; they give direction to how the objectives are to be achieved. d) The set of actions an organisation takes to deliver its marketing communications plan.

c) The means by which objectives will be fulfilled; they give direction to how the objectives are to be achieved.

The key features of services are: a) Intangibility, Transparency, Imperishability, Variability, Can be owned. b) Inconsistency, Inseparability, Perishability, Violability, Cannot be owned. c) Tangibility, Inseparability, Imperishability, Violability, Can be owned. d) Intangibility, Inseparability, Perishability, Variability, Cannot be owned.

d) Intangibility, Inseparability, Perishability, Variability, Cannot be owned.

What are the benefits of branding from the manufacturer’s perspective? a) Helps create loyalty, defends against competition, creates differential advantage, allows premium pricing, helps targeting/positioning, increases power over the retailer. b) Easier product identification, communicates features and benefits, helps product evaluation, establishes product's position in the market, reduces risk in purchasing, creates interest. c) Creates a level playing field among products, promotes perfect competition, increases distribution costs, reduces customer choice. d) Promotes monopolies, increases pricing options, reduces channel intermediary lines, increases manufacturing costs.

a) Helps create loyalty, defends against competition, creates differential advantage, allows premium pricing, helps targeting/positioning, increases power over the retailer.

24. What three key factors assist the marketing function to create superior value? a) Inter-functional orientation, competitor orientation, customer orientation. b) Competitor orientation, sales orientation, customer orientation. c) Customer orientation, competitor orientation, goal orientation. d) Inter-functional orientation, goal orientation, product orientation.

b) Competitor orientation, sales orientation, customer orientation.

The marketing Mix focuses on... a) Satisfying internal and external stakeholders need at any given time b) satisfying customers needs profitably c) satisfying customers needs efficiently

b) satisfying customers needs profitably 

Price elasticity is when
A) when the price goes up, consumers' buying habits stay about the same, and when the price goes down, consumers' buying habits also remain unchanged
B) the responsiveness of demand to changes in prices. Elastic products are very responsive, so that a price increase leads to a fall in demand, while inelastic products are very unresponsive and thus a rise in price leads to little or no change in demand.

B) Price elasticity is the responsiveness of demand to changes in prices. Elastic products are very responsive, so that a price increase leads to a fall in demand, while inelastic products are very unresponsive and thus a rise in price leads to little or no change in demand.

Market Penetration A) new market, existing products B) existing market, existing products C) New market, new products D) Existing Market, Existing products

D) Existing Market, Existing products 

Product Development A) new market, existing products B) existing market, New product C) New market, new products D) Existing Market, Existing products

Existing market, New Product 

What best describes the use of Quality Function Deployment QFD?

In which phase of the new product design process should considerations about trade offs among product cost quality and schedule be made?

Which of the following is an element of a well designed service system?