AIC MARKETING 3RD TERM EXAM FOR SS1
  • 1. What does merchandising mean according to the notes?
A) Storing goods in a warehouse
B) Advertising products on social media
C) Goods bought and sold for trading purposes
D) Only buying goods
  • 2. 2. Merchandising is best described as:
A) Hiring workers for a company
B) The activities involved in displaying and selling goods in a way that attracts customers
C) Calculating profit and loss only
D) Transporting goods from one country to another
  • 3. Who is a merchandiser?
A) A person who interacts with buyers and sellers and ensures proper execution of orders
B) An accountant in a store
C) A driver who transports goods
D) A person who only packs goods
  • 4. Which of the following is NOT listed as an importance of merchandising?
A) Improving store image
B) Reducing the price of goods
C) Increasing sales
D) Attracting customers
  • 5. Proper display of goods helps to:
A) Increase the cost of production
B) Attract customers and improve store appearance
C) Make goods more difficult to see
D) Reduce the need for packaging
  • 6. Attractive packing and good store arrangement are parts of:
A) Only transportation
B) International banking
C) Government policy
D) Merchandising
  • 7. One major role of a merchandiser is to:
A) Cook for customers in the store
B) Drive delivery vans
C) Maintain proper relations between buying offices, agents, and sellers
D) Repair broken shelves
  • 8. Merchandising is very important because it:
A) Makes goods more expensive
B) Only focuses on storage
C) Reduces the number of customers
D) Helps sell goods faster and improves business image
  • 9. Packaging is mainly:
A) The process of enclosing or protecting a product for distribution, storage, sale, and use
B) Advertising on television
C) Counting goods in the store
D) Writing letters to customers
  • 10. Which of the following is an importance of packaging?
A) Making goods difficult to identify
B) Only making the product heavier
C) Making it attractive
D) Attraction, Promotion, Facilitates purchase decision, Differentiation, Physical protection
  • 11. How does packaging help in promotion?
A) It carries important information about the product
B) It increases the weight of the product
C) It makes the product invisible
D) It reduces the size of the product
  • 12. Physical protection as a function of packaging means protecting the product from:
A) Customers touching it
B) Sunlight only
C) Other products in the same shop
D) Shock, vibration, temperature, and other damages
  • 13. A label on a product usually carries information about:
A) Only the price of the product
B) Manufacturer, expiry date, how to use the product, and handling
C) Weather forecast
D) The name of the shop owner
  • 14. Before creating a label, a producer should know:
A) Regulations of the countries where the product will be sold and customer needs
B) The name of the driver
C) The weather of the country
D) Only the colour of the label
  • 15. Good labelling and packaging require:
A) Research, planning, and consultation
B) No planning at all
C) Only expensive materials
D) Ignoring customer needs
  • 16. High-quality labelling helps the consumer to:
A) Love the product
B) Make informed purchase decisions
C) Become confused
D) Pay more money
  • 17. Branding is:
A) Storing goods in a warehouse
B) Transporting goods abroad
C) The idea or image of a product or service that customers connect with
D) Packing goods in boxes
  • 18. One major benefit of branding is:
A) Reducing sales
B) Hiding the product quality
C) Recognition and customer loyalty
D) Making the product more expensive
  • 19. A strong brand creates an image of:
A) High price only
B) Poor quality
C) Quality, size, experience, and reliability
D) Unknown company
  • 20. Promotion is best described as:
A) Persuasive communication to inform consumers about a product
B) Reducing the price of goods permanently
C) Only advertising on radio
D) Storing goods for the customer
  • 21. Which of the following is a sales promotion tool?
A) Coupons, rebates, sampling, loyalty programmes
B) Closing the shop early
C) Hiding product information
D) Discount
  • 22. Point-of-Purchase (POP) display is:
A) A type of international shipping
B) A government regulation
C) A banking service
D) Specially designed materials placed in retail stores to attract customers
  • 23. Promotion serves as a reminder because:
A) It increases price only
B) Even loyal customers need to be reminded of the product’s benefits
C) Customers never forget products
D) It reduces advertising cost
  • 24. Marketers use promotion to:
A) Decrease sales
B) Increase sales and affect demand elasticity
C) Make products less attractive
D) Confuse customers
  • 25. Contests and sweepstakes are used in promotion because:
A) They attract customers with the possibility of winning high-value prizes
B) They discourage customers
C) They are very cheap to run
D) They are not allowed by law
  • 26. Standardizing and grading of products means:
A) Increasing the price
B) Mixing all goods together
C) Setting up categories and quality levels for goods
D) Reducing the size of goods
  • 27. Storing of goods helps to:
A) Protect goods from deterioration and make them available when needed
B) Increase spoilage
C) Reduce transportation cost
D) Make goods disappear
  • 28. Market research in merchandising includes:
A) Cooking for staff
B) Only counting money
C) Repairing machines
D) Market maker analysis, sales research, dealer research, consumer research
  • 29. A good merchandiser should have:
A) Only physical strength
B) No knowledge of the product
C) Planning capability, decision-making skill, communication skills, and loyalty
D) Poor communication skills
  • 30. Knowledge of the product field is important for a merchandiser because:
A) It reduces sales
B) It helps in dealing effectively with different people in the business
C) It makes the merchandiser proud
D) It is not necessary
  • 31. Transportation as a function of merchandising involves:
A) Moving goods from where they are produced
B) Moving goods from from the store
C) Moving goods from where they are produced to where they are needed
D) Moving goods from where they are produced to the store
  • 32. One quality of a merchandiser is:
A) Avoiding planning
B) Ability to have face-to-face conversation with seller
C) Ability to sleep during work
D) Ability to have face-to-face conversation with buyers
  • 33. International marketing involves:
A) Selling only within one country
B) Local advertising only
C) Storing goods in one warehouse
D) Marketing goods and services across national boundaries
  • 34. One advantage of international marketing is:
A) Making business more difficult
B) Entering new markets before competitors
C) Reducing the number of customers
D) Increasing transportation cost only
  • 35. International marketing helps a company to:
A) Better utilize productive capacity and achieve economies of scale
B) Lose market share
C) Better utilize productive capacity and achieve victory
D) Reduce production
  • 36. Global marketing is:
A) A larger and more complex operation coordinating marketing programmes in Europe
B) Selling only in one local market
C) A type of packaging
D) A larger and more complex operation coordinating marketing programmes worldwide
  • 37. One reason for international trading is:
A) To reduce profit
B) To make business smaller
C) To increase overall profit and take advantage of innovative products
D) To decrease ease overall profit and take advantage of innovative products
  • 38. International marketing is more complex than domestic marketing because of:
A) Same conditions everywhere
B) Uncontrollable variables like culture, politics, and economic differences
C) Only one currency
D) No competition
  • 39. Counteracting slowing growth is a reason for:
A) International marketing
B) Reducing staff
C) Closing the business
D) Increasing local price only
  • 40. Synergies between domestic and overseas operations mean:
A) Higher costs only
B) Benefits that strengthen the whole organization
C) Problems between countries
D) Benefits that weaklings the whole organization
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