EXAM(2026) QUESTIONS AND
(elaborated) WITH COMPLETE
CORRECT ANSWERS LATEST
UPDATE 2026
Limited, ongoing relationships that develop when a buyer continues to purchase a
product from a seller out of habit, as long as its needs are met - correct
answerFunctional relationships
Divides the business into small, tightly knit strategic business units (SBUs), which focus
on specific elements of the organizational process - correct answerModular structure
The process or activities by which a company adds value to a product, including
production, marketing, and the provision of after-sales service - correct answerValue
chain
A profit center that focuses on product offering and market segment - correct
answerStrategic business units (SBUs)
Company assets, attributes, or abilities that are difficult to duplicate or exceed and
provide a superior or favorable long-term position over competitors - correct
answerSustainable competitive advantage
Customer loyalty, location, distribution and information systems (Getting products at a
cheap price and selling them at a reasonable price), unique merchandise, vendor
relations, customer service, and multiple source advantage (being widely recognized by
your strengths) - correct answerFactors that can help a business develop a sustainable
competitive advantage
The use of data in an enterprise to facilitate decision-making - correct answerBusiness
intelligence (BI)
Large, complex data sets that require non-traditional data processing software to predict
trends and forecasts - correct answerBig data analytics
A written code of ethics and standards. Ethics training to executives, managers, and
employees. Availability of advice on ethical situations (advice lines or ethics offices). A
system for confidential reporting. - correct answerFour elements that make up ethical
behavior within an organization
,The careful coordination of all promotional activities—media advertising, sales
promotion, personal selling, and public relations, as well as direct marketing, packaging,
and other forms of promotion—to produce a consistent, unified message that is
customer focused - correct answerIntegrated marketing communications (IMC)
Identifying consumer needs and then producing the goods or services that will satisfy
those needs while making a profit for the organization - correct answerMarketing
concept
Advertising, sales promotion, and publicity, or creating new sales channels or new
products - correct answerPromotional techniques
The combination of advertising, personal selling, sales promotion, and public relations
used to promote a product - correct answerPromotional mix
The model assumes consumers are passive and marketers are active during most of
the buying process. - correct answerThe main limitation of the AIDA model
The AIDA model assumes that the customer experience ends at the purchase while the
six-step process considers the after-purchase relationship with the customer. - correct
answerWhat is the main difference between the AIDA model of the buyer's journey and
the six steps model of the buying process?
Focuses on short-term, often single, transactions. - correct answerTransactional selling
Focused on long-term relationship building to keep customers satisfied and
consequently convince them to return and make multiple purchases. - correct
answerRelationship selling
Using social styles to customize a sales approach to the specific customer - correct
answerAdaptive selling
A model that categorizes people according to personality traits and how they interact
with others - correct answerSocial style matrix
Focus on "how,"include facts, do not challenge their facts, demonstrate results, mention
guarantees and warranties, give them time to decide, communicate the pros and cons,
and provide history, data, financial details. Low responsiveness and low assertiveness -
correct answerAnalyticals
Focus on "what," get to the point quickly, provide options, use facts, focus on results,
provide timelines, and make them feel in control. Low responsiveness and high
assertiveness - correct answerDrivers
,Focus on "why," establish a personal relationship, demonstrate personal commitment,
and work as a team. High responsiveness and low assertiveness - correct
answerAmiables
Focus on "who," take extra time to discuss everything, give them recognition and
approval, ask them how they feel about the product or service, focus on the big picture,
and use facts and figures to demonstrate what is possible. High responsiveness and
high assertiveness - correct answerExpressives
Sales approach where the seller becomes a trusted advisor to the customer and builds
a relationship to truly understand his or her needs - correct answerConsultative selling
A prediction of the net profit attributed to the entire future relationship with a customer -
correct answerCustomer lifetime value (CLV)
A metric that measures how much value a business can create per customer - correct
answerReturn on customer investment
An innovation, service, or feature intended to make a company or product attractive to
customers - correct answerValue proposition
Clear (short and direct), compelling (motivates), and differentiating (sets the offering
aprt). - correct answerA value proposition should be
ROI = net profit ÷ investment × 100 - correct answerEquation for ROI
A performance measure used to evaluate the efficiency of an investment or compare
the efficiency of a number of different investments - correct answerReturn on
investment (ROI)
CLV = dollar value of purchases x gross profit percent x number of purchases - correct
answerEquation for CLV
A way of bringing products or services to market so they can be purchased by
consumers - correct answerSales channels
A chain of businesses or intermediaries through which a good or service passes until it
reaches the final buyer or the end consumer - correct answerDistribution channels
Their main job is to represent the producer to the final user in selling a product. - correct
answerAgents or brokers
They sell the products to other intermediaries, such as retailers, for a higher price than
they paid. They buy in bulk and store the products in their own warehouses and storage
places until it is time to resell them. They are independently owned, and they own the
products that they sell. - correct answerWholesalers
, They take ownership of the product, store it, and sell it at a profit to retailers or other
intermediaries. However, the key difference is that distributors ally themselves to
complementary products - correct answerDistributors
Whatever their size, retailers purchase products from market intermediaries and sell
them directly to the end user for a profit - correct answerRetailers
A salesperson who provides information to an individual who will influence the purchase
decision - correct answerMissionary salespeople
Sales people who are experts in a specific product or service area. They promote and
sell the product by demonstrating how it works along with the benefits it can offer
potential customers - correct answerTechnical salespeople
A salesperson who calls on retailers and helps them display, advertise, and sell
products to consumers - correct answerTrade salespeople
People who routinely work inside the business taking orders and handling transactions -
correct answerInside salespeople
Sales personnel who go out into the field to meet with customers - correct
answerOutside salespeople
Maintaining a long-term relationship with customers who purchased from the firm in the
past - correct answerAccount management
Concentrates sales and marketing resources on a clearly defined set of target accounts
within a market and employs personalized campaigns designed to resonate with each
account - correct answerAccount-based marketing (ABM)
Developing and maintaining long-term, sustainable and mutually beneficial relationships
with key accounts (customer) - correct answerKey account management (KAM)
Clients who have not made a purchase for a specified period of time - correct
answerInactive accounts
Have consistent transactions and engagement with the business - correct answerActive
accounts
Clients who have established an ongoing relationship with the company through its
website and may or may not have a recurring order - correct answerPassive accounts
Suggests that 20 percent of your activities will account for 80 percent of your results -
correct answer80/20 rule