Question 1

Ryan, an insurance salesperson, sells an insurance policy covering hurricane damage to Sean. However, as instructed by his company, Ryan fails to tell Sean that the policy does not include water damage caused by hurricane flooding. In this scenario,

Options :

A : only the insurance company can be held accountable for fraudulent sales.

B : only Ryan can be held accountable for fraudulent sale.

C : no one can be held accountable as the buyer must read the document carefully before buying.

D : both the insurance company and the salesman can be held accountable.

E : Ryan can be held accountable only if water damage actually happens.

Answer: D

Question 2

In Travnia, an industrial country, the government controls most of the utilities, including power and water supply. The bottled-water market, however, has four major players: Balk, Pentl, Valr, and Tidum. Each of the companies markets its product using a distinct branding strategy. In an attempt to gain a larger market share, Pentl reduces the price of its products by 10%. It expects to make up for the lost revenue from an increase in sales. Which of the following is true of this scenario?

Options :

A :

The government-s control of most of the utilities including power and water supply represents monopolistic competition.

B : The power supply industry in Travnia is oligopolistic in nature.

C : The competition in the bottled-water industry represents pure competition.

D : Pentl-s current pricing strategy can be termed as predatory pricing.

E : A price war would erupt if the other firms reduced prices, too, and forced Pentl to reduce prices further.

Answer: E

Question 3

One of the advantages that price skimming offers over penetration pricing is that:

Options :

A : competitors cannot enter the market easily.

B : a firm that sets a high price initially can lower its price easily.

C : the cost of production decreases with an increase in production capacity.

D : profits and market share can be built quickly.

E : it allows a company to target the most price-sensitive segments first.

Answer: B

Question 4

On August 1, 2013, sellerspace.com was visited by 150,000 users. The number of users who interacted with at least one page on the website was 150,000, the number who interacted with at least two pages was 120,000, at least three pages was 75,000, and four or more pages was 20,000. What was the bounce rate of the website on August 1, 2013?

Options :

A : 10%

B : 20%

C : 30%

D : 40%

E : 50%

Answer: B

Question 5

In the marketing communication process, the sender works with a creative department, either an in-house marketing department or an external agency, who receives the information and transforms it for use. Here, the creative department is the _____.

Options :

A : encoder

B : decoder

C : transmitter

D : channel

E : receiver

Answer: C

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