Updated 2026) | 115+ OA Practice Questions with Verified Answers &
Detailed Rationales | Marketing Strategy, Sales Process, Customer
Relationship Management, Consumer Behavior, Branding, Digital
Marketing & Objective Assessment Prep
Question 1
What is the primary goal of marketing?
A) To create products
B) To satisfy customer needs
C) To maximize company profits
D) To promote sales
CORRECT ANSWER: B
Rationale: The primary goal of marketing is to satisfy customer needs and wants. Successful
marketing strategies focus on understanding the target audience and delivering value through
products and services that meet customer expectations. While maximizing profit and promoting
sales are important, they are secondary to ensuring that customer needs are met.
Question 2
Which of the following is a key element of the marketing mix?
A) Supply Chain Management
B) Human Resources
C) Promotion
D) Operational Efficiency
CORRECT ANSWER: C
Rationale: The marketing mix, often referred to as the 4 Ps—Product, Price, Place, and
Promotion—includes promotion as a critical element. Promotion encompasses all activities
aimed at informing and persuading customers about products or services, making it essential
for successful marketing strategies.
Question 3
What does CRM stand for in a marketing context?
A) Cost Reduction Management
B) Customer Relationship Management
C) Corporate Revenue Model
D) Consumer Resource Management
CORRECT ANSWER: B
Rationale: CRM stands for Customer Relationship Management. It refers to strategies and
technologies that companies use to manage interactions with current and potential customers.
,The goal of CRM is to improve business relationships, enhance customer satisfaction, and drive
sales growth through better customer understanding and engagement.
Question 4
Which of these is a benefit of effective customer service?
A) Increased operating costs
B) Decreased customer loyalty
C) Higher customer retention
D) Greater employee turnover
CORRECT ANSWER: C
Rationale: Effective customer service leads to higher customer retention. When customers feel
valued and receive satisfactory support, they are more likely to return, engage in repeat
business, and recommend the company to others. This creates a loyal customer base that is
essential for long-term success.
Question 5
What is market segmentation?
A) The process of coordinating marketing strategies
B) The analysis of administrative factors influencing sales
C) The division of a market into distinct groups of buyers
D) The evaluation of competitor market share
CORRECT ANSWER: C
Rationale: Market segmentation involves dividing a broad target market into smaller, more
defined categories. By identifying distinct groups of buyers based on characteristics such as
demographics, psychographics, and behavior, companies can tailor their marketing efforts to
meet the specific needs of each segment, leading to more effective marketing strategies.
Question 6
What is the primary purpose of market research?
A) To enhance social media presence
B) To cut down production costs
C) To gather information about consumer preferences
D) To establish brand loyalty
CORRECT ANSWER: C
Rationale: The primary purpose of market research is to gather information about consumer
preferences, behaviors, and market trends. This data helps businesses understand their target
market, allowing them to tailor their products, services, and marketing strategies to better meet
customer needs and demands.
,Question 7
Which strategy focuses on targeting larger groups of customers in a similar market?
A) Mass marketing
B) Niche marketing
C) One-to-one marketing
D) Local marketing
CORRECT ANSWER: A
Rationale: Mass marketing involves targeting a broad audience with a single marketing strategy,
usually aiming for large-scale sales. This approach is effective for products deemed necessary
or for which there is a universal demand, as it seeks to reach as many consumers as possible.
Question 8
Which of the following best defines brand equity?
A) The total amount of sales a brand generates
B) The market share percentage of a brand
C) The value of a brand based on consumer perception
D) The production costs associated with a brand
CORRECT ANSWER: C
Rationale: Brand equity refers to the value that a brand adds to a product based on consumer
perception, recognition, and loyalty. Positive brand equity can lead to higher sales volumes, the
ability to charge premium prices, and a competitive advantage in the marketplace.
Question 9
What technique is used to increase the perceived value of a product?
A) Cost cutting
B) Product standardization
C) Branding
D) Distribution optimization
CORRECT ANSWER: C
Rationale: Branding increases the perceived value of a product by creating a unique identity
and emotional connection with consumers. Effective branding helps customers associate the
product with certain qualities or experiences, allowing companies to differentiate themselves
from competitors and charge premium prices.
Question 10
What is an example of a pull marketing strategy?
, A) Social media campaigns
B) Trade shows
C) Direct mail
D) Telemarketing
CORRECT ANSWER: A
Rationale: Pull marketing strategies aim to attract customers by creating demand for a product
through various means such as advertising and promotions, particularly on social media. By
generating interest, pull strategies encourage consumers to seek out the product or service,
thereby “pulling” it through the distribution chain.
Question 11
What does SWOT stand for in marketing analysis?
A) Sales, Worth, Objectives, Trends
B) Strengths, Weaknesses, Objectives, Tactics
C) Strengths, Weaknesses, Opportunities, Threats
D) Sales, Weaknesses, Objectives, Trends
CORRECT ANSWER: C
Rationale: SWOT analysis is a strategic planning tool used to identify strengths, weaknesses,
opportunities, and threats related to a business or project. This analysis helps organizations
assess their internal and external environments, guiding decision-making.
Question 12
What type of pricing strategy involves setting a low price to attract customers and gain market
share?
A) Value-based pricing
B) Price skimming
C) Psychological pricing
D) Penetration pricing
CORRECT ANSWER: D
Rationale: Penetration pricing is a strategy where a company sets a low price for a new product
or service to attract customers quickly and gain market share. Once the desired market
penetration is achieved, the company may increase prices gradually.
Question 13
In customer relationship management, what is the "customer lifecycle"?
A) Stages of a customer's relationship with a company
B) Financial benefits over time