Entrepreneurship Summative Test 2

MULTIPLE CHOICE: Choose and write the corresponding letter of the BEST option on your answer sheet.

1. What is the primary purpose of a Unique Selling Proposition (USP)?

A. To increase sales revenue. C. To improve customer satisfaction.
B. To reduce production costs. D. To differentiate a product from its competitors.
2. Which of the following is an example of a USP?
A. "Best quality at the lowest price" C. "Wide range of product options"
B. "Fastest delivery in the industry" D. "All of the above"
3. What is the key characteristic of a strong USP?
A. It is unique to the company. C. It is easily imitable by competitors.
B. It is based on customer needs. D. It is focused on the product's features.
4. What is the primary goal of a Value Proposition?
A. To create customer loyalty. C. To reduce marketing expenses.
B. To increase brand awareness. D. To communicate a product's unique value.
5. Which of the following is an example of a Value Proposition?
A. "Our product has a 1-year warranty" C. "Our product is made with high-quality materials"
B. "Our product is the cheapest in the market" D. "Our product will increase your productivity by 20%"
6. What is the key benefit of a strong Value Proposition?
A. It increases sales revenue C. It improves customer satisfaction
B. It reduces production costs D. It differentiates the product from competitors
7. What is the relationship between USP and Value Proposition?
A. They are interchangeable terms C. Value Proposition is a component of USP
B. They are unrelated marketing concepts D. USP is a component of Value Proposition
8. How do USP and Value Proposition work together?
A. USP and Value Proposition are only used for B2B marketing.
B. USP and Value Proposition are used separately in marketing campaigns.
C. USP differentiates the product, and Value Proposition communicates its value.
D. USP communicates the product's value, and Value Proposition differentiates it.
9. What is the ultimate goal of using USP and Value Proposition in marketing?
A. To create customer loyalty C. To improve customer satisfaction
B. To increase brand awareness D. To drive sales and revenue growth
10. A company is launching a new product with a unique feature that solves a common customer problem. What should be the
primary focus of its marketing campaign?
A. The product's features and benefits C. The company's brand story and history
B. The product's price and promotions D. The product's USP and Value Proposition
11. A customer is considering purchasing a product from two different companies. What would be the most influential factor in their
decision-making process?
A. The product's price C. The company's brand reputation
B. The product's customer reviews D. The product's USP and Value Proposition
12. A company wants to improve its marketing campaign's effectiveness. What should it focus on?
A. Expanding its product line C. Increasing its advertising budget
B. Improving its customer service D. Developing a stronger USP and Value Proposition
13. A company's USP is "Fastest delivery in the industry." What could be a potential weakness of this USP?
A. It may not be unique to the company. C. It may be easily imitable by competitors.
B. It may not be relevant to all customers. D. All of the above
14. A company's Value Proposition is "Our product will increase your productivity by 20%." What could be a potential limitation of
this Value Proposition?
A. It may not be measurable C. It may not be relevant to all customers
B. It may not be unique to the company D. It may be easily imitable by competitors
15. What is the key to creating an effective USP and Value Proposition?
A. Increasing the marketing budget C. Conducting market research and analysis
B. Developing a unique brand identity D. Focusing on the product's features and benefits
16. In the context of the 7 Ps, 'Process' refers to which of the following?
A. The marketing strategy used. C. The manufacturing method of a product.
B. The feedback process from customers. D. The procedures and flow of activities in delivering a service.
17. What is a brand?
A. The price set for a product. C. A promotional campaign for a product.
B. A type of marketing strategy. D. A unique name, symbol, or design that identifies a product.

18. Which of the following BEST defines market competition?

A. The race to offer the lowest price.
B. Government regulation on how businesses operate.
C. A friendly collaboration between different businesses.
 D. The rivalry among businesses to attract customers and gain market share.
19. Which of the following is an example of a service in the market?
A. A smartphone. C. A pair of shoes .
B. A refrigerator. D. A car repair session.
20. Which of the following methods is commonly used in marketing research?
A. Employee interviews C. Legal reviews
B. Financial audits D. Surveys
21. If a restaurant wants to improve customer satisfaction and create a better dining experience, which of the following should they
focus on?
A. Increasing the menu prices. C. Reducing the number of staff members.
B. Expanding their delivery options. D. Enhancing the service quality and ambiance.
22. A company is launching a new eco-friendly product and wants to highlight its commitment to sustainability. Which branding
element should be most emphasized?
A. The price of the product. C. The product’s packaging design.
B. The product’s unique features. D. The brand’s environmental values and mission.
23. Why is identifying customer requirements important for an entrepreneur?
A. To adjust pricing based on competitors.
B. To develop a marketing plan for global expansion.
C. To ensure that the product is manufactured locally.
D. To create products or services that meet customer needs and solve their problems.
24. Evaluate the impact of adjusting the 'Price' on a premium product. What could be a potential outcome?
A. Increased demand without affecting brand image.
B. Enhanced market share with no impact on profitability.
C. Improved customer loyalty without affecting sales volume.
D. Decreased perceived value and potential loss of exclusivity.
25. A company’s brand is perceived as outdated and irrelevant to its target market. What branding strategy should be evaluated to
address this issue?
A. Expanding product lines. C. Increasing the price of product.
B. Enhancing customer service. D. Redesigning the brand’s visual elements and messaging.
26. Which of the following is a key component of a Value Proposition?
A. The team’s qualifications.
B. The history of the company.
C. The company’s financial projection.
D. A clear statement of the product’s benefits and how they solve customer problems.
27. Which of the following is a method to estimate the market size
A. Hiring a marketing consultant. C. Analyzing product manufacturing costs.
B. Comparing prices of similar products D. Conducting market research and surveys to assess demand.
28. What role do suppliers play in the market?
A. They control the prices of all products. C. They regulate business practices in the market.
B. They act as customers for large businesses. D. They provide raw materials, goods, or services to businesses.
29. Which of these is a characteristic of a product?
A. It cannot be stored for future use. C. It is always customized for each customer.
B. It is consumed at the point of sale. D. It is physically tangible and can be seen or touched.
30. Which of the following is a primary goal of marketing research?
A. To reduce employee turnover. C. To design new product packaging.
B. To increase the cost of goods. D. To understand consumer needs and market trends
Part III. Instruction: Complete the table below by supplying it with products that you consider similar. Write the product and not the
brand in their respective columns. Then describe and differentiate its characteristics and uses.
No. Primary Product Substitute Product
(Product Name) (Product Name)
Example Butter – expensive price; used as bread spread Margarine – lesser price also used as bread spread
1.
2.
3.
4.
5.