Marketing Management | MCQ with Answer | Part 3
1. What was Amar Bose's primary reason for founding Bose Acoustics?
A) To provide affordable speakers
B) To create lifelike sound
C) To compete with Sony and Beats
D) To make high-quality headphones
Answer: B) To create lifelike sound
2. Which product marked Bose’s initial success in the audio market?
A) 301 Bookcase speakers
B) Quiet Comfort headphones
C) 901 speakers
D) SoundLink speakers
Answer: C) 901 speakers
3. In 1978, Amar Bose experienced disappointment with audio on which occasion, prompting new product development?
A) A concert
B) A home theater system
C) A transatlantic flight
D) A car stereo
Answer: C) A transatlantic flight
4. What type of product did Bose develop for the military and aviation markets?
A) Wireless speakers
B) Noise-canceling headphones
C) Surround sound systems
D) Portable speakers
Answer: B) Noise-canceling headphones
5. How did Bose position its Quiet Comfort line in terms of pricing relative to other brands?
A) Lower-priced
B) Similar-priced
C) Premium-priced
D) Discount-priced
Answer: C) Premium-priced
6. Bose's product expansion into bookcase speakers primarily targeted which type of customer?
A) Commercial offices
B) Apartment dwellers
C) Military users
D) Travelers
Answer: B) Apartment dwellers
7. Which of the following best describes a product mix?
A) A single product offered in various sizes
B) The range of products a company offers across categories
C) A line extension of a product
D) The total number of features in a product
Answer: B) The range of products a company offers across categories
8. What are the three primary product decisions listed under the product lifecycle?
A) Expansion, Segmentation, Positioning
B) Addition, Deletion, Modification
C) Innovation, Production, Distribution
D) Development, Marketing, Sales
Answer: B) Addition, Deletion, Modification
9. Which term best describes Bose’s consistent focus on audio quality over lower pricing?
A) Value proposition
B) Competitive pricing strategy
C) Cost leadership
D) Brand dilution
Answer: A) Value proposition
10. What does the “depth” of a product line refer to?
A) The variety of product categories offered
B) The price range of products in a line
C) The number of variations of each product
D) The types of customer demographics served
Answer: C) The number of variations of each product
11. When a company adds a lower-priced item to its existing product line, it is called a:
A) Upward stretch
B) Downward stretch
C) Product line fill
D) Brand extension
Answer: B) Downward stretch
12. What does "width" of a product mix refer to?
A) Total number of product variations offered
B) The total product categories offered by the company
C) Quality of product features
D) Total customer base reached
Answer: B) The total product categories offered by the company
13. Which product strategy does Procter & Gamble use by offering beauty, grooming, and home care products?
A) Narrow product mix
B) Product diversification
C) Market penetration
D) Skimming strategy
Answer: B) Product diversification
14. The introductory stage of the product lifecycle is primarily focused on:
A) Building brand loyalty
B) Increasing market share
C) Gaining consumer awareness
D) Maximizing profits
Answer: C) Gaining consumer awareness
15. When is it ideal for a company to “trade down” a product line?
A) When the market demands a cheaper alternative
B) When profits are maximized
C) To enhance product quality
D) When competitors exit the market
Answer: A) When the market demands a cheaper alternative
16. A product with a short, rapid growth and quick decline cycle is a:
A) Fashion product
B) Low-learning product
C) Fad product
D) High-learning product
Answer: C) Fad product
17. In product line management, horizontal differentiation focuses on:
A) Lowering the price
B) Adding new features
C) Catering to different tastes or preferences at the same quality level
D) Developing premium versions
Answer: C) Catering to different tastes or preferences at the same quality level
18. What is a primary benefit of a company with a consistent product mix?
A) Increases brand dilution
B) Broadens target market
C) Reduces enterprise risk
D) Competes in multiple unrelated markets
Answer: C) Reduces enterprise risk
19. Which dimension does Kellogg’s explore by offering various Cheez-It flavors?
A) Vertical product line depth
B) Product line fill
C) Horizontal product line depth
D) Brand dilution
Answer: C) Horizontal product line depth
20. During the growth phase of a product lifecycle, companies should focus on:
A) Harvesting the product
B) Informing consumers about the product
C) Highlighting competitive differences
D) Reducing distribution channels
Answer: C) Highlighting competitive differences
21. What was Bose’s approach to product pricing for its Quiet Comfort headphones?
A) Cost-plus pricing
B) Competitive pricing
C) Premium pricing
D) Penetration pricing
Answer: C) Premium pricing
22. The introduction of the 301 Bookcase speakers was primarily intended to address which customer need?
A) Affordable audio solutions for apartments
B) Noise cancellation for travel
C) Professional sound equipment
D) Large home theater systems
Answer: A) Affordable audio solutions for apartments
23. Which year did Bose first release its 901 speakers?
A) 1974
B) 1968
C) 1982
D) 1970
Answer: B) 1968
24. What is a product life cycle?
A) The stages of revenue growth
B) The phases a product goes through from introduction to decline
C) A cycle of profitability for all products
D) The lifespan of a manufacturing process
Answer: B) The phases a product goes through from introduction to decline
25. What is meant by “product line fill”?
A) Adding a low-cost version of a product
B) Extending products vertically
C) Adding items between existing products in a line
D) Discontinuing older products
Answer: C) Adding items between existing products in a line
26. Which type of product differentiation involves creating unique versions that address different consumer tastes?
A) Vertical differentiation
B) Horizontal differentiation
C) Brand differentiation
D) Pricing differentiation
Answer: B) Horizontal differentiation
27. Which aspect of Bose’s product policy focuses on expanding product offerings across different applications?
A) Diversification
B) Product pruning
C) Product filling
D) Skimming
Answer: A) Diversification
28. The development of noise-canceling headphones for the aviation market exemplifies Bose’s move into which market segment?
A) Consumer electronics
B) Military and professional sectors
C) Home audio systems
D) High-end personal devices
Answer: B) Military and professional sectors
29. What pricing approach might a company take in the introduction stage of a high-value product?
A) Discounting
B) Skimming or penetration
C) Competitive matching
D) Volume pricing
Answer: B) Skimming or penetration
30. Which of the following is NOT a fundamental product decision?
A) Addition
B) Modification
C) Expansion
D) Deletion
Answer: C) Expansion
31. Which product line dimension measures the variety of products within a particular category?
A) Depth
B) Consistency
C) Width
D) Length
Answer: A) Depth
32. What is a “fad product” in terms of the product lifecycle?
A) A product with high, steady growth
B) A product with short-lived popularity
C) A product in constant demand
D) A product that grows in popularity over decades
Answer: B) A product with short-lived popularity
33. How does a company typically respond to “me-too” products in the market?
A) Increase distribution
B) Lower its prices
C) Emphasize unique features and quality
D) Withdraw from the market
Answer: C) Emphasize unique features and quality
34. In which phase of the product lifecycle is brand loyalty a key marketing objective?
A) Introduction
B) Growth
C) Maturity
D) Decline
Answer: C) Maturity
35. Which of the following is an example of “product line pruning”?
A) Launching a new version of a product
B) Increasing product quality
C) Removing underperforming products from a line
D) Adding more distribution channels
Answer: C) Removing underperforming products from a line
36. What is a high-learning product in the context of product lifecycle?
A) A product with a rapid adoption rate
B) A product requiring consumer education
C) A low-cost product
D) A product with short lifecycle
Answer: B) A product requiring consumer education
37. Which example describes a company leveraging a key asset across multiple product lines?
A) Lowering costs by bulk purchasing
B) Using rubber technology expertise to design earthquake-proof structures
C) Eliminating underperforming product lines
D) Investing only in one product line
Answer: B) Using rubber technology expertise to design earthquake-proof structures
38. What is typically the marketing objective in the decline phase of the product lifecycle?
A) Gain market share
B) Maintain brand loyalty
C) Harvesting or deletion
D) Increase brand awareness
Answer: C) Harvesting or deletion
39. Why did Bose develop the 301 Bookcase speakers?
A) To compete with Beats
B) To target smaller spaces and apartment dwellers
C) To increase product depth
D) To enter the premium speaker market
Answer: B) To target smaller spaces and apartment dwellers
40. Which of the following is a characteristic of a successful product according to customer needs?
A) High profit margin
B) Solves a specific problem customers have
C) Low development cost
D) Generalized design for a broad audience
Answer: B) Solves a specific problem customers have
41. What is meant by a “skimming” pricing strategy?
A) Setting a low price to enter the market
B) Setting a high initial price for quick profit recovery
C) Matching competitor prices
D) Gradually increasing price over time
Answer: B) Setting a high initial price for quick profit recovery
42. Product mix “width” refers to:
A) Variations of a single product
B) Total number of product categories a company offers
C) Specific attributes of a single product line
D) The size of the company’s target market
Answer: B) Total number of product categories a company offers
43. When should a company consider a downward stretch of its product line?
A) To reach higher-paying customers
B) To enter new, premium markets
C) To attract budget-conscious customers
D) To develop high-end products
Answer: C) To attract budget-conscious customers
44. A product that connects with other existing company products provides:
A) Increased brand dilution
B) Complementary benefits
C) Reduced market risk
D) A riskier investment
Answer: B) Complementary benefits
45. What does a “fashion product” entail in the product lifecycle?
A) Long-term popularity with minimal decline
B) Quick rise and fall in demand
C) Demand influenced by trends, with repeated popularity
D) Popular only during holiday seasons
Answer: C) Demand influenced by trends, with repeated popularity
46. What type of pricing strategy is typical in the maturity phase of the product lifecycle?
A) Skimming
B) Penetration pricing
C) Competitive pricing
D) Price increase
Answer: C) Competitive pricing
47. Which of these is an example of horizontal product line differentiation?
A) Different grades of bubble wrap
B) Various colors of the same product
C) Multiple models with added features
D) Budget-friendly alternatives
Answer: B) Various colors of the same product
48. How does vertical differentiation affect a product line?
A) It adds products of similar quality for different tastes
B) It creates higher and lower versions based on price/performance
C) It decreases product quality
D) It removes unprofitable products
Answer: B) It creates higher and lower versions based on price/performance
49. What characteristic is essential for “winning products”?
A) High price
B) Superior customer value
C) Advanced technology
D) Low production cost
Answer: B) Superior customer value
50. In which stage of the product lifecycle do profits peak?
A) Introduction
B) Growth
C) Maturity
D) Decline
Answer: C) Maturity
51. Which product attribute did Bose emphasize in its Wave Radio product to differentiate it from competitors?
A) Low price
B) Compact size with high-quality sound
C) Diverse color options
D) Subscription-based model
Answer: B) Compact size with high-quality sound
52. What was one of Bose’s key strategies when launching new products?
A) Minimizing R&D costs
B) Prioritizing superior technology and performance
C) Offering discounts immediately upon release
D) Releasing multiple variants simultaneously
Answer: B) Prioritizing superior technology and performance
53. The QuietComfort series targeted which primary customer need?
A) Fashion and style
B) Noise cancellation for enhanced audio experience
C) Wireless connectivity
D) Inexpensive, basic sound quality
Answer: B) Noise cancellation for enhanced audio experience
54. In the growth phase of the product lifecycle, a company should focus on:
A) Building product awareness only
B) Maximizing production efficiency
C) Building brand preference and increasing market share
D) Discontinuing low-selling items
Answer: C) Building brand preference and increasing market share
55. What was a primary factor in Bose’s development of portable Bluetooth speakers?
A) Response to consumer demand for mobile audio solutions
B) Elimination of wired products
C) Reducing costs for home theater setups
D) Launching seasonal products
Answer: A) Response to consumer demand for mobile audio solutions
56. In Bose’s product lifecycle for the QuietComfort series, the headphones entered maturity when:
A) New competitors launched similar noise-canceling products
B) Product features were reduced
C) Bose increased prices significantly
D) The product was initially launched
Answer: A) New competitors launched similar noise-canceling products
57. Which approach is Bose likely to use for enhancing product longevity?
A) Product obsolescence
B) Incremental innovations and upgrades
C) Complete rebranding every year
D) Ignoring consumer feedback
Answer: B) Incremental innovations and upgrades
58. How does Bose typically convey the premium quality of its products?
A) Using low-cost distribution channels
B) Reducing brand awareness campaigns
C) Focusing on high-end retail locations and direct online channels
D) Aggressive price competition
Answer: C) Focusing on high-end retail locations and direct online channels
59. Which of the following describes the “length” of a product mix?
A) Number of products offered within each product line
B) Range of functions offered by a single product
C) Total number of product lines
D) Market value of each product line
Answer: A) Number of products offered within each product line
60. What type of pricing strategy is typical when launching a high-tech, innovative product in the introduction phase?
A) Loss leader pricing
B) Skimming pricing
C) Penetration pricing
D) Bundle pricing
Answer: B) Skimming pricing
61. In terms of customer-focused marketing, Bose’s noise-canceling headphones meet the needs of which primary target segment?
A) Budget-conscious consumers
B) Frequent travelers and professionals
C) Teenagers seeking fashion-forward accessories
D) Gamers
Answer: B) Frequent travelers and professionals
62. When Bose develops multiple speaker models under one product line, it demonstrates which concept?
A) Product line depth
B) Brand width
C) Product inconsistency
D) Market penetration
Answer: A) Product line depth
63. The strategy of maintaining high prices for Bose products to reinforce perceived quality is known as:
A) Value-based pricing
B) Market-penetration pricing
C) Premium pricing
D) Cost-plus pricing
Answer: C) Premium pricing
64. A horizontal extension in Bose’s product line could involve:
A) Introducing different colors or styles for an existing product
B) Launching a new premium product line
C) Phasing out older products
D) Offering a product at a reduced price point
Answer: A) Introducing different colors or styles for an existing product
65. The decision to target audiophiles and music professionals for the Bose Studio series is an example of:
A) Market segmentation
B) Mass marketing
C) Random targeting
D) Competitive parity
Answer: A) Market segmentation
66. What is one advantage of a company extending its product line depth?
A) Reduced marketing costs
B) Broader appeal to a diverse audience
C) Increased internal product competition
D) Faster phase-out of the old product
Answer: B) Broader appeal to a diverse audience
67. Which Bose product category has consistently targeted the home theater market?
A) Wave radios
B) Bluetooth speakers
C) Soundbars
D) In-car audio systems
Answer: C) Soundbars
68. The addition of “smart” functionality to Bose headphones reflects which type of product innovation?
A) Process innovation
B) Product innovation
C) Market innovation
D) Service innovation
Answer: B) Product innovation
69. What is one of the marketing goals during the decline stage of the product lifecycle?
A) Market expansion
B) Stabilizing market share
C) Maximizing short-term profits and phasing out weak products
D) Extensive advertising investment
Answer: C) Maximizing short-term profits and phasing out weak products
70. Why might Bose choose a market skimming pricing strategy for a new premium product?
A) To attract budget-conscious customers
B) To recoup R&D costs and reinforce the brand's luxury image
C) To discourage competitors from entering the market
D) To increase market saturation
Answer: B) To recoup R&D costs and reinforce the brand's luxury image
71. Bose's strategy of gradual feature improvements to QuietComfort headphones is an example of:
A) Radical innovation
B) Incremental innovation
C) Service expansion
D) Rebranding
Answer: B) Incremental innovation
72. What characterizes a “product life cycle extension” strategy?
A) Introducing price cuts at launch
B) Expanding distribution channels or product variations
C) Increasing production costs
D) Reducing promotional efforts
Answer: B) Expanding distribution channels or product variations
73. Bose’s approach to product quality and engineering is closely associated with which marketing orientation?
A) Production orientation
B) Sales orientation
C) Product orientation
D) Market orientation
Answer: C) Product orientation
74. If Bose launches a “lower-end” version of an existing product, this is called:
A) Product simplification
B) Down-market stretch
C) Market segmentation
D) Brand dilution
Answer: B) Down-market stretch
75. What is a primary feature of a Bose strategic alliance with an automobile manufacturer?
A) Reducing brand image in the auto market
B) Exclusive installation in premium car models
C) Solely increasing product cost
D) Independent audio systems production
Answer: B) Exclusive installation in premium car models
76. Which type of analysis might Bose use to understand potential consumer segments for a new product?
A) SWOT analysis
B) Break-even analysis
C) Cost analysis
D) Target market segmentation analysis
Answer: D) Target market segmentation analysis
77. Bose’s development pipeline ensures that each product undergoes:
A) Minimal market testing
B) Quality control, R&D, and consumer testing
C) Rapid prototype turnover
D) Direct-to-market launch without testing
Answer: B) Quality control, R&D, and consumer testing
78. To sustain a brand’s luxury perception, Bose avoids:
A) Mass-market discounting
B) Introducing innovative products
C) Customer feedback gathering
D) Marketing campaigns
Answer: A) Mass-market discounting
79. What type of market strategy does Bose apply by offering high-performance audio solutions at premium prices?
A) Cost leadership
B) Differentiation
C) Market penetration
D) Diversification
Answer: B) Differentiation
80. Bose’s emphasis on noise-canceling technology is an example of fulfilling which type of customer value?
A) Emotional value
B) Social value
C) Functional value
D) Economic value
Answer: C) Functional value
81. What is Bose’s primary competitive advantage in the audio technology industry?
A) Low-cost production
B) High-end innovation and quality
C) Large-scale advertising
D) Distribution through discount retailers
Answer: B) High-end innovation and quality
82. In the product life cycle, Bose might engage in promotional activities to prolong the maturity stage. This is called:
A) Market penetration
B) Product modification
C) Product extension
D) Market development
Answer: C) Product extension
83. Bose’s decision to keep research and development (R&D) in-house supports which aspect of its marketing strategy?
A) Cost reduction
B) High product quality and technological advancement
C) Product diversification
D) Expanding market reach
Answer: B) High product quality and technological advancement
84. The Bose Wave Radio targets which stage in the customer buying decision process by using targeted advertisements?
A) Need recognition
B) Information search
C) Evaluation of alternatives
D) Post-purchase evaluation
Answer: A) Need recognition
85. Which type of targeting strategy is used when Bose introduces models tailored to specific consumer segments, such as travelers or professionals?
A) Mass marketing
B) Niche marketing
C) Undifferentiated marketing
D) Individualized marketing
Answer: B) Niche marketing
86. In the context of a product mix, the “width” of Bose’s product line refers to:
A) The number of different product lines the company offers
B) The variety of product features offered within each product
C) The total market share of each product
D) The depth of each product line
Answer: A) The number of different product lines the company offers
87. When a product enters the decline stage, a company might employ a “harvesting” strategy, which means:
A) Increasing investment in the product
B) Reducing marketing support while maximizing remaining profitability
C) Expanding production to new markets
D) Lowering the price to encourage sales
Answer: B) Reducing marketing support while maximizing remaining profitability
88. What marketing strategy did Bose use by creating products that only enhance the audio experience without adding unrelated features?
A) Focused differentiation
B) Product diversification
C) Price skimming
D) Cost leadership
Answer: A) Focused differentiation
89. The introduction of Bose sound systems in luxury vehicles is an example of:
A) Market expansion
B) Brand extension
C) Diversification
D) Co-branding
Answer: D) Co-branding
90. In which stage of the product lifecycle should Bose most likely focus on competitive pricing strategies?
A) Introduction
B) Growth
C) Maturity
D) Decline
Answer: C) Maturity
91. A key advantage of Bose’s premium pricing strategy is that it:
A) Appeals to budget-conscious consumers
B) Creates a perception of high quality and exclusivity
C) Expands the customer base significantly
D) Minimizes production costs
Answer: B) Creates a perception of high quality and exclusivity
92. For Bose, using influencer endorsements and product reviews to establish credibility reflects which component of the marketing mix?
A) Product
B) Place
C) Price
D) Promotion
Answer: D) Promotion
93. When Bose develops a new product line to appeal to younger consumers, this is an example of:
A) Product development
B) Market development
C) Diversification
D) Market penetration
Answer: B) Market development
94. Bose’s initial launch of a high-priced, high-quality speaker system is an example of:
A) Skimming pricing
B) Penetration pricing
C) Cost-plus pricing
D) Loss leader pricing
Answer: A) Skimming pricing
95. Which marketing concept involves analyzing Bose’s strengths, weaknesses, opportunities, and threats?
A) STP analysis
B) PESTEL analysis
C) SWOT analysis
D) BCG matrix
Answer: C) SWOT analysis
96. During the growth phase, Bose might focus on which of the following?
A) Increasing brand loyalty and expanding market share
B) Minimizing product variations
C) Cutting R&D expenditures
D) Reducing promotional expenses
Answer: A) Increasing brand loyalty and expanding market share
97. Which of the following best describes Bose’s focus on continuous product improvement?
A) Product lifecycle extension strategy
B) Cost leadership strategy
C) Market penetration strategy
D) Sales orientation strategy
Answer: A) Product lifecycle extension strategy
98. By integrating Bose’s products into vehicles, the company increases its:
A) Product line depth
B) Product mix breadth
C) Market exposure and brand equity
D) Customer feedback loop
Answer: C) Market exposure and brand equity
99. The focus on research and proprietary technology at Bose can be classified under which strategic resource?
A) Physical assets
B) Organizational capital
C) Intellectual property
D) Market development
Answer: C) Intellectual property
100. What aspect of the marketing mix is being utilized when Bose distributes its products in high-end retailers?
A) Promotion
B) Product
C) Place
D) Price
Answer: C) Place
101. Which of the following is an example of a strategic product development approach?
A) Reducing the product lifecycle
B) Launching a new premium model with advanced features
C) Entering unrelated industries
D) Shifting to low-cost materials
Answer: B) Launching a new premium model with advanced features
102. Offering trade-in discounts for Bose customers is a tactic aimed at:
A) Encouraging product loyalty and repeat purchases
B) Targeting new markets
C) Reducing manufacturing costs
D) Creating product cannibalization
Answer: A) Encouraging product loyalty and repeat purchases
103. Bose’s strategy of selling directly to customers through its website is an example of:
A) Market penetration
B) Direct distribution
C) Competitive parity
D) Product simplification
Answer: B) Direct distribution
104. What aspect of customer needs is Bose meeting with noise-canceling headphones for travelers?
A) Social needs
B) Psychological needs
C) Practical and convenience needs
D) Aesthetic needs
Answer: C) Practical and convenience needs
105. Which of the following is a potential risk of Bose’s premium pricing strategy?
A) Diluted brand perception
B) Limited appeal to price-sensitive consumers
C) Increased competition from luxury brands
D) Decreased quality perception
Answer: B) Limited appeal to price-sensitive consumers
106. When Bose refreshes the design of its existing headphones, it is engaging in:
A) Product differentiation
B) Product repositioning
C) Product line extension
D) Product life cycle modification
Answer: D) Product life cycle modification
107. The release of Bose headphones with a customizable equalizer feature is an example of:
A) Customization to increase perceived value
B) Standardization for cost efficiency
C) Functional obsolescence
D) Market cannibalization
Answer: A) Customization to increase perceived value
108. What type of analysis can help Bose identify which products in its portfolio need additional investment or divestment ?
A) SWOT analysis
B) PESTEL analysis
C) BCG matrix
D) Competitive analysis
Answer: C) BCG matrix
