MBA MFT Study Exam Questions with
correct Answers
major segmentation variables (4) - Correct Answers -(1) geographic, (2) demographic,
(3) psychographic, (4) behavioral
penetrated market - Correct Answers -set of customers who are buying the company's
product
target market - Correct Answers -qualified available market the company decides to
pursue
available market - Correct Answers -set of consumers who have interest, income, and
access to a particular offer
potential market - Correct Answers -set of consumer with a sufficient level of interest in
a market offer
corporate culture - Correct Answers -shared experiences, stories, beliefs, & norms that
characterize an organization
strategic marketing plan - Correct Answers -lays out the target market and the firm's
value proposition, based on an analysis of the best market opportunities
5 stages of consumer buying process decision process - Correct Answers -(1) need
recognition, (2) information search, (3) evaluation of alternatives, (4) purchase decision,
(5) post-purchase behavior
8 steps of business purchasing process - Correct Answers -(1) identify need, (2) select
specific product, (3) appoint purchase team, (4) specify technicalities, (5) budget for
purchase, (6) research potential suppliers, (7) solicit bids, (8) award contracts
4 factors influencing consumer behavior - Correct Answers -(1) cultural, (2) social, (3)
personal, (4) psychological
4 factors that influence business purchasing behavior - Correct Answers -(1)
environmental, (2) organizational, (3) interpersonal, (4) individual
competitive intelligence - Correct Answers -defining, gathering, analyzing, & distributing
intelligence about products, customers, competitors, and any aspects of the
,environment needed to support executives & managers making strategic decisions for
an organization
managerial decision making process steps (6) - Correct Answers -(1) establish the
objective, (2) define the problem, (3) identify possible solutions, (4) evaluate alternative
courses of action, (5) implement the decision, (6) acquire feedback
strong form efficient - Correct Answers -all info -- public and insider -- is reflected in the
market price. no abnormal returns
market efficiency - Correct Answers -the degree to which stock prices reflect all
available relevant information
money market - Correct Answers -a segment of the financial market in which financial
instruments with high liquidity and very short maturities are traded
capital markets - Correct Answers -markets for buying and selling equity and debt
instruments
security - Correct Answers -a financial instrument that represents an ownership in a
publicly-traded corporation (stock), a creditor relationship with governmental body or
corporation (bond) or rights to an ownership as represented by an option
most common underlying assets of derivatives - Correct Answers -stocks, bonds,
commodities, currencies, interest rates, market indexes
8 major models of marketing communication - Correct Answers -(1) advertising, (2)
sales promotion, (3) events & experiences, (4) public relations & publicity, (5) direct
marketing, (6) interactive marketing, (7) word-of-mouth marketing, (8) personal selling
pull strategy - Correct Answers -the manufacturer uses advertising and other
communication to persuade consumers to demand the product from intermediaries,
thus inducing intermediaries to order it
push strategy - Correct Answers -uses the manufacturer's sales force, trade promotion
money, or other means to induce intermediaries to carry, promote, & sell the product to
end users
points-of-parity (POPs) - Correct Answers -attributes or benefit associations that are not
necessarily unique to the brand but may be shared with other brands
points-of-difference (PODs) - Correct Answers -attributes of benefits that consumers
strongly associate with a brand, positively evaluate, and believe they could NOT find to
the same extent with a competitive brand
posititioning - Correct Answers -the act of designing a company's offering and image to
occupy a distinctive place in the minds of the target market
, supersegment - Correct Answers -set of segments sharing some exploitable similarity
5 key criteria market segments must rate favorably on to be useful - Correct Answers -
(1) measurable, (2) sustainable, (3) accessible, (4) differentiable, (5) actionable
pyschographic - Correct Answers -the science of using psychology & demographics to
better understand consumers
variables of demographic segmentation (6) - Correct Answers -(1) age and life-cycle
stage, (2) life stage, (3) gender, (4) income, (5) generation, (6) race & culture
investment banking - Correct Answers -a specific division of banking related to the
creation of capital for other companies, governments, and entities
weak form - Correct Answers -assumes that all info contained in past price movements
is reflected in the current market price. info about recent trends in a stock price is no
use in selecting a stock
semi-strong form - Correct Answers -states the current market price reflects all publicly
available information. to gain abnormal returns insider info is needed
information efficiency - Correct Answers -all relevant information about a stock is
reflected in its price (this is in a perfect world)
derivative - Correct Answers -a security with a price that is dependent upon or derived
from one or more underlying assets. its value is determined by fluctuations in the
underlying assets
futures - Correct Answers -financial contracts obligating the buyer to purchase an asset
(or the seller to sell an asset) at a predetermined future date and price
option - Correct Answers -a financial derivative that represents a contract sold by one
party (option writer) to another party (option holder). the contract offers the buyer the
right to call or put a security at an agreed upon price (strike price) during a certain
period of time or on the exercise date
2 types of financial instruments - Correct Answers -(1) cash instruments, (2) derivative
instruments
financial instruments - Correct Answers -assets that can be traded
INVENTORY TURNOVER = - Correct Answers -SALES/INVENTORY
AVERAGE COLLECTION PERIOD = - Correct Answers -DAYS (ACCOUNTS
RECEIVABLE)/CREDIT SALES
correct Answers
major segmentation variables (4) - Correct Answers -(1) geographic, (2) demographic,
(3) psychographic, (4) behavioral
penetrated market - Correct Answers -set of customers who are buying the company's
product
target market - Correct Answers -qualified available market the company decides to
pursue
available market - Correct Answers -set of consumers who have interest, income, and
access to a particular offer
potential market - Correct Answers -set of consumer with a sufficient level of interest in
a market offer
corporate culture - Correct Answers -shared experiences, stories, beliefs, & norms that
characterize an organization
strategic marketing plan - Correct Answers -lays out the target market and the firm's
value proposition, based on an analysis of the best market opportunities
5 stages of consumer buying process decision process - Correct Answers -(1) need
recognition, (2) information search, (3) evaluation of alternatives, (4) purchase decision,
(5) post-purchase behavior
8 steps of business purchasing process - Correct Answers -(1) identify need, (2) select
specific product, (3) appoint purchase team, (4) specify technicalities, (5) budget for
purchase, (6) research potential suppliers, (7) solicit bids, (8) award contracts
4 factors influencing consumer behavior - Correct Answers -(1) cultural, (2) social, (3)
personal, (4) psychological
4 factors that influence business purchasing behavior - Correct Answers -(1)
environmental, (2) organizational, (3) interpersonal, (4) individual
competitive intelligence - Correct Answers -defining, gathering, analyzing, & distributing
intelligence about products, customers, competitors, and any aspects of the
,environment needed to support executives & managers making strategic decisions for
an organization
managerial decision making process steps (6) - Correct Answers -(1) establish the
objective, (2) define the problem, (3) identify possible solutions, (4) evaluate alternative
courses of action, (5) implement the decision, (6) acquire feedback
strong form efficient - Correct Answers -all info -- public and insider -- is reflected in the
market price. no abnormal returns
market efficiency - Correct Answers -the degree to which stock prices reflect all
available relevant information
money market - Correct Answers -a segment of the financial market in which financial
instruments with high liquidity and very short maturities are traded
capital markets - Correct Answers -markets for buying and selling equity and debt
instruments
security - Correct Answers -a financial instrument that represents an ownership in a
publicly-traded corporation (stock), a creditor relationship with governmental body or
corporation (bond) or rights to an ownership as represented by an option
most common underlying assets of derivatives - Correct Answers -stocks, bonds,
commodities, currencies, interest rates, market indexes
8 major models of marketing communication - Correct Answers -(1) advertising, (2)
sales promotion, (3) events & experiences, (4) public relations & publicity, (5) direct
marketing, (6) interactive marketing, (7) word-of-mouth marketing, (8) personal selling
pull strategy - Correct Answers -the manufacturer uses advertising and other
communication to persuade consumers to demand the product from intermediaries,
thus inducing intermediaries to order it
push strategy - Correct Answers -uses the manufacturer's sales force, trade promotion
money, or other means to induce intermediaries to carry, promote, & sell the product to
end users
points-of-parity (POPs) - Correct Answers -attributes or benefit associations that are not
necessarily unique to the brand but may be shared with other brands
points-of-difference (PODs) - Correct Answers -attributes of benefits that consumers
strongly associate with a brand, positively evaluate, and believe they could NOT find to
the same extent with a competitive brand
posititioning - Correct Answers -the act of designing a company's offering and image to
occupy a distinctive place in the minds of the target market
, supersegment - Correct Answers -set of segments sharing some exploitable similarity
5 key criteria market segments must rate favorably on to be useful - Correct Answers -
(1) measurable, (2) sustainable, (3) accessible, (4) differentiable, (5) actionable
pyschographic - Correct Answers -the science of using psychology & demographics to
better understand consumers
variables of demographic segmentation (6) - Correct Answers -(1) age and life-cycle
stage, (2) life stage, (3) gender, (4) income, (5) generation, (6) race & culture
investment banking - Correct Answers -a specific division of banking related to the
creation of capital for other companies, governments, and entities
weak form - Correct Answers -assumes that all info contained in past price movements
is reflected in the current market price. info about recent trends in a stock price is no
use in selecting a stock
semi-strong form - Correct Answers -states the current market price reflects all publicly
available information. to gain abnormal returns insider info is needed
information efficiency - Correct Answers -all relevant information about a stock is
reflected in its price (this is in a perfect world)
derivative - Correct Answers -a security with a price that is dependent upon or derived
from one or more underlying assets. its value is determined by fluctuations in the
underlying assets
futures - Correct Answers -financial contracts obligating the buyer to purchase an asset
(or the seller to sell an asset) at a predetermined future date and price
option - Correct Answers -a financial derivative that represents a contract sold by one
party (option writer) to another party (option holder). the contract offers the buyer the
right to call or put a security at an agreed upon price (strike price) during a certain
period of time or on the exercise date
2 types of financial instruments - Correct Answers -(1) cash instruments, (2) derivative
instruments
financial instruments - Correct Answers -assets that can be traded
INVENTORY TURNOVER = - Correct Answers -SALES/INVENTORY
AVERAGE COLLECTION PERIOD = - Correct Answers -DAYS (ACCOUNTS
RECEIVABLE)/CREDIT SALES
