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