BU 220
Principles of Marketing
Midterms Exam Review (Qns & Ans)
2025
1. Which of the following is a characteristic of relationship
marketing?
a) Short-term focus
b) Single transaction
c) Long-term customer engagement
d) Mass marketing
ANS: c) Long-term customer engagement.
©/2025
, Rationale: Relationship marketing focuses on building long-
term relationships with customers rather than one-time
transactions.
2. In the context of market segmentation, which type of
segmentation divides the market based on variables such as age,
gender, income, and education?
a) Behavioral segmentation
b) Geographic segmentation
c) Demographic segmentation
d) Psychographic segmentation
ANS: c) Demographic segmentation.
Rationale: Demographic segmentation divides the market
based on demographic variables such as age, gender, income, and
education.
3. Which concept refers to the customer's perception of the
worth of a product or service relative to its alternatives?
a) Price elasticity
b) Perceived value
c) Brand equity
d) Market share
©/2025
, ANS: b) Perceived value.
Rationale: Perceived value is the customer's evaluation of the
worth of a product or service relative to its alternatives.
4. The 4Ps of marketing are Product, Price, Place, and
__________?
a) Process
b) People
c) Promotion
d) Performance
ANS: c) Promotion.
Rationale: The 4Ps of marketing include Product, Price,
Place, and Promotion.
5. Which of the following is NOT one of Porter's Five Forces?
a) Threat of new entrants
b) Bargaining power of buyers
c) Brand loyalty
d) Competitive rivalry
©/2025
, ANS: c) Brand loyalty.
Rationale: Porter's Five Forces include the threat of new
entrants, bargaining power of buyers, bargaining power of
suppliers, threat of substitute products, and competitive rivalry.
Fill-in-the-Blank Questions:
6. The practice of dividing a market into distinct groups of buyers
with different needs, characteristics, or behaviors is called
__________.
ANS: Market segmentation.
Rationale: Market segmentation involves dividing a market
into distinct groups with different needs, characteristics, or
behaviors.
7. The perceived worth of a brand in the minds of customers,
often reflected in premium pricing, is known as __________.
ANS: Brand equity.
Rationale: Brand equity is the perceived worth of a brand in
customers' minds, often leading to premium pricing.
©/2025
Principles of Marketing
Midterms Exam Review (Qns & Ans)
2025
1. Which of the following is a characteristic of relationship
marketing?
a) Short-term focus
b) Single transaction
c) Long-term customer engagement
d) Mass marketing
ANS: c) Long-term customer engagement.
©/2025
, Rationale: Relationship marketing focuses on building long-
term relationships with customers rather than one-time
transactions.
2. In the context of market segmentation, which type of
segmentation divides the market based on variables such as age,
gender, income, and education?
a) Behavioral segmentation
b) Geographic segmentation
c) Demographic segmentation
d) Psychographic segmentation
ANS: c) Demographic segmentation.
Rationale: Demographic segmentation divides the market
based on demographic variables such as age, gender, income, and
education.
3. Which concept refers to the customer's perception of the
worth of a product or service relative to its alternatives?
a) Price elasticity
b) Perceived value
c) Brand equity
d) Market share
©/2025
, ANS: b) Perceived value.
Rationale: Perceived value is the customer's evaluation of the
worth of a product or service relative to its alternatives.
4. The 4Ps of marketing are Product, Price, Place, and
__________?
a) Process
b) People
c) Promotion
d) Performance
ANS: c) Promotion.
Rationale: The 4Ps of marketing include Product, Price,
Place, and Promotion.
5. Which of the following is NOT one of Porter's Five Forces?
a) Threat of new entrants
b) Bargaining power of buyers
c) Brand loyalty
d) Competitive rivalry
©/2025
, ANS: c) Brand loyalty.
Rationale: Porter's Five Forces include the threat of new
entrants, bargaining power of buyers, bargaining power of
suppliers, threat of substitute products, and competitive rivalry.
Fill-in-the-Blank Questions:
6. The practice of dividing a market into distinct groups of buyers
with different needs, characteristics, or behaviors is called
__________.
ANS: Market segmentation.
Rationale: Market segmentation involves dividing a market
into distinct groups with different needs, characteristics, or
behaviors.
7. The perceived worth of a brand in the minds of customers,
often reflected in premium pricing, is known as __________.
ANS: Brand equity.
Rationale: Brand equity is the perceived worth of a brand in
customers' minds, often leading to premium pricing.
©/2025
