Unit 5: Delivering Customer Value and Sustainable Growth - Practice Quiz

1 What is the main purpose of a distribution channel?

2 Which intermediary usually buys products in bulk and sells them to retailers?

3 What does physical distribution mainly involve?

4 Which distribution strategy places a product in as many suitable outlets as possible?

5 What is retailing?

6 Which of the following is an example of a non-store retailing method?

7 What is visual merchandising?

8 A brand owned and sold by a retailer is commonly called what?

9 What is the main goal of customer relationship management?

10 Which information is commonly stored in a CRM system?

11 Customer retention refers to a company's ability to do what?

12 What is marketing control?

13 Which measure shows a company's sales as a percentage of total market sales?

14 What is a marketing audit?

15 Rural marketing primarily focuses on understanding and serving which market?

16 Which factor commonly affects product distribution in rural markets?

17 Which promotional approach is often useful for reaching rural consumers?

18 What is green marketing?

19 Which packaging choice best supports green marketing?

20 What does greenwashing mean?

21 A manufacturer of premium kitchen appliances wants tight control over product demonstrations and after-sales service. Which distribution approach is most appropriate?

22 A company notices that its channel members frequently disagree about pricing and territory boundaries. Which action would best address the problem?

23 A snack company uses regional warehouses to reduce delivery time to supermarkets. This decision primarily improves which distribution function?

24 A producer sells directly through its website while also supplying independent retailers. Retailers complain that the producer's online prices undercut them. What issue is illustrated?

25 A retailer has limited shelf space and must choose between two products. Product A has a higher margin per unit, while Product B generates a higher margin per square meter. Which should the retailer prefer?

26 A supermarket groups bread, spreads, and breakfast cereals in a nearby aisle to encourage related purchases. Which merchandising technique is being used?

27 A clothing retailer uses customer purchase data to send different promotions to students, professionals, and parents. This is an example of:

28 A bank identifies customers who may close their accounts and offers them personalized service consultations. Which CRM activity does this represent?

29 A company integrates customer service, sales, and billing records so employees can view the same customer history. What is the main benefit?

30 A retailer gives its most profitable customers early access to limited products and personalized recommendations. Which CRM objective is most directly served?

31 A firm compares actual quarterly sales with the sales target and investigates the difference. Which control process is this?

32 A campaign produces many website visits but very few qualified leads. Which conclusion is most reasonable?

33 A company evaluates whether its marketing investment generated sufficient additional contribution after campaign costs. Which metric is most relevant?

34 A brand's sales are rising, but its market share is falling because competitors' sales are growing faster. What does this indicate?

35 A consumer-goods company introduces small, affordable package sizes for rural customers with irregular incomes. Which rural marketing challenge is it addressing?

36 A firm uses local-language demonstrations and village events before launching an agricultural product. Why is this approach effective?

37 A rural distribution plan combines mobile sales vans, local retailers, and periodic village markets. What does this illustrate?

38 A detergent brand reduces plastic packaging, uses recycled material, and clearly reports the changes. Which green marketing principle is demonstrated?

39 A company claims that its product is "100% eco-friendly" but provides no definition or supporting evidence. What is the main concern?

40 A manufacturer redesigns packaging to use less material while maintaining product protection during transportation. Which outcome is most likely?

41 A manufacturer sells through both independent wholesalers and its own direct website. Wholesalers complain that the website undercuts them, while the manufacturer argues that direct sales provide valuable customer data. Which channel policy best addresses the conflict without eliminating the strategic value of direct distribution?

42 A firm is evaluating two distribution designs. System A has a fixed annual cost of $240,000 and a variable distribution cost of $8 per unit. System B has a fixed cost of $420,000 and a variable cost of $5 per unit. At what annual volume are the two systems economically equivalent?

43 A perishable food producer must choose between a low-cost distributor with inconsistent cold-chain performance and a higher-cost distributor with reliable temperature control. Which decision rule is most appropriate?

44 A manufacturer wants intensive distribution for a convenience product but must protect minimum retail standards for product handling. Which channel arrangement best fits both objectives?

45 A supermarket finds that a high-margin premium brand generates strong gross margins but occupies shelf space that could produce greater contribution through a faster-moving private label. Which metric should primarily guide the shelf-space decision?

46 A retailer's loyalty program increases average basket size, but members also receive substantial discounts and increasingly concentrate purchases in low-margin categories. What is the most valid conclusion?

47 A retailer uses an omnichannel inventory system, but online orders are frequently canceled because store-level inventory records are inaccurate. Which capability should be prioritized first?

48 A retailer is considering closing a store that reports a loss after allocated head-office costs. The store generates positive contribution before avoidable store-level costs, and most head-office costs would remain after closure. What is the best decision criterion?

49 A bank's churn model identifies customers with many complaints as high-risk, but targeted retention offers are costly and some customers would have remained without intervention. Which evaluation method best tests the program's effectiveness?

50 Two customers have the same predicted lifetime revenue. Customer A requires frequent service contacts, while Customer B has low service costs but is highly sensitive to price. Which CRM action is most defensible?

51 A company integrates purchase history across channels but combines records for two people who share an email address. What is the principal CRM risk?

52 A subscription firm raises prices for its least price-sensitive customers after a CRM analysis. Retention remains stable, but complaint rates rise sharply. Which interpretation is most appropriate?

53 A campaign reports a 30% increase in sales in exposed regions, but sales also rose 25% in comparable unexposed regions. What is the best estimate of the campaign's approximate incremental lift?

54 A company increases marketing spending and observes higher sales, but distribution coverage also expands during the same period. Which control-system improvement is most important?

55 A manager meets a quarterly acquisition target by offering deep discounts that attract customers with very low repeat purchase rates. Which dashboard change would best expose this problem?

56 A brand's awareness score rises substantially, but consideration and market share decline. Which conclusion is most justified?

57 A packaged-goods firm enters rural markets with small low-priced units. Sales rise initially, but repeat purchases are weak because products are unavailable during peak agricultural income periods. Which response is most appropriate?

58 A rural firm has low household incomes, dispersed settlements, and limited formal retail infrastructure. Which distribution design is most likely to improve adoption while controlling reach costs?

59 A company assumes that rural consumers are homogeneous and launches one national rural campaign. Results vary sharply across districts because language, infrastructure, and usage conditions differ. What should the firm do first?

60 A manufacturer replaces virgin plastic with recycled plastic but increases transport emissions because the recycled input is sourced much farther away. Which assessment is most appropriate?