Mgt301 - principle of marketing, Solution

1 = D
2 = A
3 = D
4 = D
5 = A
6 = C
7 = B
8 = A
9 = C
10 = A
11 = A
12 = B
13 = C
14 =D
15 = D

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Please read the following scenario carefully and answer the questions given at the
end by selecting the most appropriate option. Each question carries 2 marks.
A few years back, Ayubia was only a small town with an amusement park, a shoe
store, a small restaurant, and a grocery store. Now the small town has transformed
into an international tourist attraction, attracting thousands of tourists who are
inspired by the lifestyle of Ayubians.

Ali and Ahmad, having grown up within the Ayubians’ faith, decided to take
advantage of their town’s popularity and their woodworking skills. Their shop
“Stylish Wood” began with a small display of handmade hickory rocking chairs, Ali
and Ahmad’s specialty. But within a few months, the display at Stylish Wood
included picnic tables, flower boxes, and small handmade novelty items. No other
shop offers the same.
Ali and Ahmad decorated the shop’s display room with authentic Ayubians
décor and eventually hired three Ayubians friends to sew and embroider napkins
and other textiles as per customer request. Ali and Ahmed are ready to assist in
every phase of the locate-compare-select process. In addition, two women from the
Ayubians community took permission from Ali and Ahmad to display home-cooked
traditional food items on Saturday and Sunday, the town’s busiest tourist days,
when Ayubia attracted group of visitors to its flea market on the south edge of town.
Ali and Ahmad stated, “Ayubia is full of specialty shops, people don’t come here
to buy things made in China or Taiwan. They want real Ayubians -made goods.”

1. Stylish Wood is doing which type of business?
a. Franchising
b. Retailing
c. Brokering
d. Wholesaling

2. Which one of the following levels of service is being provided by the Stylish
Wood?
a. Self-service
b. Full-service
c. Limited-service
d. Self-selection

3. Products like picnic tables, flower boxes and small handmade hickory rocking
chairs offered by the Stylish Wood fall in which of the following consumer products?
a. Convenience products
b. Unsought products
c. Shopping products
d. Specialty products

4. Which of the following growth strategies is being adopted by the Stylish Wood?
a. Market penetration
b. Market development
c. Diversification
d. Product development

5. Which of the following can be viewed by Stylish Wood while assessing sales
volume effectiveness?
a. Percentage of visitors those entering and who buy
b. Percentage of visitors who enter the shop
c. Average amount spent per sale
d. All of the given the options

6. All of the following can be the grounds on which Stylish Wood positioned itself,
EXCEPT:
a. By focusing Ayubia’s tourists
b. By offering unique products not offered by other shop
c. By hiring persons having creative skills
d. By helping people to buy imported items

7. Do you think that location played a critical part in the Stylish Wood’s success?
a. Strongly agree
b. Partially agree
c. Not agree
d. None of the given option

8. Which one of the following decisions is considered as a crucial that must be
decided in relation to its target market, its product assortment, and its competition?
a. Segmentation decision
b. Price decision
c. Product decision
d. Positioning decision

9. Stylish Wood can be categorized as which of the following stores?
a. Department store
b. Convenience store
c. Specialty store
d. Discount store

10. Stylish Wood is doing the business by which of the following ways?
a. Wholesaling
b. Personal selling
c. Retailing through catalogs
d. Retailing through store

11. Until Stylish Wood define and profile its _____________, it cannot make
consistent decisions about product assortment, services, store décor, or any of the
other decisions that must support its position.
a. Target market
b. Competitors
c. Suppliers
d. Employees

12. Stylish Wood is adopting which of the following strategies?
a. Cost leadership
b. Differentiation
c. Penetration
d. Cost leadership and focus

13. Ayubia’s largest population attracted the visitors towards its:
a. Products
b. Restaurants
c. Lifestyle
d. Grocery stores

14. Stylish Wood hired three Ayubians friends to sew and embroider napkins and
other textiles as per customer request. This statement reflects which of the following
concepts?
a. Selling concept
b. Product concept
c. Production concept
d. Marketing concept

15. If Stylish Wood expanded beyond Ayubia, which of the following critical
function will be performed?
a. Selling and promoting
b. Transportation
c. Marketing information
d. All of the given options