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