Marketing IQ Test

The following 20 statements about marketing may or may not be true. Read each statement and then answer "true" or "false." If you don't know, you're better off checking "don't know" rather than guessing and getting it wrong. In this test, as in the real world, you pay a penalty for a wrong decision.

1. A reasonable way to find out what will motivate buyers to make a purchase in a particular category is to ask how important 30 or more different attributes and benefits are when considering a brand, product, or service.

true
false
don't know

2. Advertising pre-testing is a waste of time. You can’t really know the effectiveness of an ad unless you run the ad in the real world.

true
false
don't know

3. As many as two-thirds of buyers in a category are price insensitive—meaning they are willing to pay more for a product if it meets some other important purchase criteria.

true
false
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4. Most marketers will earn more profits from new products in the next two to three years than from existing ones.

true
false
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5. Buyers today perceive more differences between the leading brands in most product and service category than they did in the past.

true
false
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6. There is little agreement among marketers about the importance of measuring customer equity.

true
false
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7. If a company sponsors a highly visible event, one that receives a great deal of media coverage, the company does not need to invest in promoting its association with the event.

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false
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8. Once you know what motivates buyers in a category, you have all the information you need to develop a powerful positioning strategy.

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false
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9. In most companies today, marketers have measured the links between the inputs to a marketing plan—budget dollars, GRPs, etc.—and the outputs—awareness, preference, incremental sales, etc.

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false
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10. Ethnography and MRI brain scans are two projectable marketing research tools that managers can safely use to make major marketing decisions.

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false
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11. Media planners at most major advertising agencies know little about the relative ROI of traditional print, television, radio, and out-of-home advertising.

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false
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12. Product-based positioning strategies—those which make claims about product performance or effectiveness—are a thing of the past. They are no longer effective because there are just too many brands and the tangible positioning possibilities are much more limited.

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false
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13. Most marketing and advertising programs are measured in terms of their profitability, typically on an annual basis, if not more frequently.

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false
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14. The most profitable customers of a firm are usually the biggest buyers in the category—they are often labeled the “heavy users” or “heavy buyers.”

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false
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15. According to the latest research studies, the average ROI for consumer advertising is negative.

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false
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16. American companies are increasingly successful at satisfying customers. Across a broad range of industries, the average grade is “B” or better.

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false
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17. Category involvement is a characteristic of an individual buyer, not of the product or service.

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false
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18. Big companies generally make their strategic marketing decisions after evaluating many different alternatives in terms of forecasted profitability.

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false
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19. The more a new product appeals to the target market—in other words, research finds that many people say they will buy it—the more likely it will be successful.

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false
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20. Companies should do everything possible to achieve a high market share because a high share leads to economies of scale that enhance profitability.

true
false
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The Copernican Marketing IQ Test™ is one of many Copernican intellectual properties that differentiate our work.