1.

Related to service delivery, airlines can use service providers such as agents or third parties
to perform any of the following functions EXCEPT:
A. Payment
B. Carryout information
C. Consumption
D. Reservation
2. Which of the following statement is true?
A. Generally, as the number of warehouses increase in or near a market area, stock out costs
decrease.
B. Because products in a company's inventory are equally important ( in terms of sales,
cost, etC.) the level of attention they receive should be the same to ensure the greatest
pay back
C. Generally, as the number of warehouses increase in or near a market area, transportation
costs increase.
D. Inventory cost and carrying cost are directly related, i.e., as one increases the other also
increases
3. Which of the following products is liked by customers who are fixated at Oral stage
according to Sigmund Fraud's theory of personality?
A. Horror movies
B. Comfortable sofa
C. Powerful cars
D. Chewing gum
4. Which of the following is an outside firm in the promotion industry that specializes in the
creation, production and /or placement of the communications message and that may provide
other services that facilitate the marketing and promotions process?
A. Collateral services
B. Media organizations
C. Advertising agencies
D. The advertiser or client
5. Local content laws are economic risks facing international marketers. Which is TRUE about
local content law?
 A. Host government prohibits international companies not to use local inputs in their
products
B. Host governments demand a certain percentage of the products produced by international
marketers should have local inputs
C. Host governments demand foreign companies to bring all their resources from their home
country
D. Host governments demand a certain percentage of shares of foreign companies should
belong to locals
6. Agricultural products are usually exposed to the challenge of expensive transportation and
storage facilities due to
A. Irregularity Supply of Products
B. Seasonality of Production
C. Bulkiness of Products
D. Perishability of the Product
7. Chinese and Indian restaurants in Addis Ababa can be cited as good examples of:
A. Segment markets
B. Mass markets
C. Niche markets
D. Individual markets
8. Which of the following grain marketing system accurately describes products in a uniform
and meaningful manner?
A. Grain storage
B. Bulk storage
C. Grading of grains
D. Grain processing
9. In……….pricing, the firm considers only the marginal or incremental cost producing goods
to be sold in foreign market.
A. Fixed cost
B. . Variable cost
C. Full cost
D. Foreign cost
10. Identify the incorrect statement from the list below
A. A marketing channel includes only those participants who perform the negotiatory
functions of buying,selling, and transferring title
B. Firms which belong to the ancillary structure perform the buying selling and transferring
title function
C. The ancillary structure includes the group of institutions (facilitating agencies) that assists
channel members in performing distribution task
D. Those who do not perform the buying selling and transferring title function are not
members of the channel structure
11. Macro segmentation involves dividing the business market into subgroups based on the
following factors EXCEPT:
A. Type of industry
B. Ultimate consumers
C. Location
D. The size of buying units
12. Which of the following stage is the first stage in the evaluation of sales force
A. Setting performance standard for the salesperson
B. Setting sales force profit contribution
C. Setting performance standard for the company
D. Setting performance standard for the accounts
13. Global marketers adopt various strategies to minimize political risks while operating in
foreign markets. If a firm is challenged with negative attitudes towards foreign brands which
strategy you would advise them to apply?
A. Observation of political moods and increasing exposure
B. Hiring foreigners
C. Being engaged in foreign country's internal affairs
D. Sharing ownership with locals
14. Which one of the following is an advantage of qualitative forecasting method?
A. Flexibility
B. Errors in Judgment
C. Unexpected Changes
 D. Exposed to Bias
15. Pretrial beliefs that a consumer has about the performance of a service that are used as the
standard or reference against which service performance is judge.
A. Customer impression
B. Customer expectation
C. Customer perception
D. Customer satisfaction
16. Which of the following stages in the new business product development stage determines
new ideas that merit a detailed study as to potential feasibility with greater likelihood of
succeeding in the market place
A. Product testing
B. Business analysis
C. Idea and concept generation
D. Screening and evaluation
17. Which advertising objectives is to be achieved when an electronic advertisement is produced
and broadcasted for the purpose of making consumers well understood about the existence of
the brand in the market?
A. Action
B. Conviction
C. Awareness
D. Comprehension
18. If the core competence of the international marketer is managerial expertise and the host
country does not allow FDI ( Foreign Direct Investment) the most suitable market entry
mode would be:
A. Acquisition
B. Turnkey project
C. Management contract
D. Joint venture
19. This involves identifying new, emerging opportunities, and then building plans to take full
advantage of them while examining individual activities and assesses the strength of their
contribution to company success.
 A. Activity based budgeting
B. Zero based budgeting
C. .Rolling budgets
D. Strategic budgeting

18. A firm choosing to serve a particular sub segment of the market by customizing its offer to
meet their specific demand is employing strategy.

A. Cost leadership
B. Differentiation
C. Diversification
D. Focus
20. When quality score of your (Google) paid advertisement improves, then
A. Cost per click will increase at compounding rate
B. .Cost per click will increase proportionately
C. Cost per click will decrease
D. Cost per click will increase at an increasing rate