Chapter 22: Marketing Information Systems – A Longitudinal Analysis (JAIIB – Paper 4)

1. What is the primary function of a Marketing Information System (MKIS) in banking?

  • A. To process all customer transactions
  • B. To manage employee payroll
  • C. To collect, analyze, and disseminate marketing data for decision-making
  • D. To handle loan recovery only
MKIS helps banks collect, analyze, and distribute relevant marketing information to support strategic and operational decisions.

2. Which of the following is NOT a component of MKIS?

  • A. Internal Records System
  • B. Loan Recovery Module
  • C. Marketing Research System
  • D. Marketing Intelligence System
The Loan Recovery Module is part of banking operations, not a core component of MKIS. MKIS includes internal records, marketing research, and intelligence systems.

3. In the MKIS model, which stage involves transforming raw marketing data into actionable insights?

  • A. Data Analysis
  • B. Data Collection
  • C. Information Dissemination
  • D. Feedback Processing
Data Analysis converts collected data into useful information that supports marketing decision-making.

4. Observations from MKIS help bank managers to:

  • A. Manage employee attendance
  • B. Approve all loans automatically
  • C. Calculate customer interest rates manually
  • D. Make informed marketing and product decisions
Observations from MKIS provide insights that help managers design marketing strategies and develop products that meet customer needs.

5. Which function of MKIS involves monitoring competitors and market trends?

  • A. Internal Records System
  • B. Marketing Intelligence System
  • C. Marketing Research System
  • D. Data Storage
Marketing Intelligence System continuously gathers information about competitors, customers, and market trends to guide strategic decisions.

6. How do computers enhance the efficiency of a Marketing Information System (MKIS)?

  • A. By automating data collection, storage, and processing
  • B. By eliminating the need for human decision-making entirely
  • C. By replacing marketing managers
  • D. By slowing down report generation
Computers in MKIS automate the process of collecting, storing, analyzing, and distributing marketing data, improving efficiency and accuracy in decision-making.

7. Which of the following is a major advantage of using computers in MKIS?

  • A. Reduces the need for marketing research entirely
  • B. Replaces all marketing personnel
  • C. Allows faster processing and retrieval of large volumes of data
  • D. Eliminates the need for customer feedback
Computers enable quick processing, analysis, and retrieval of large datasets, allowing marketers to make timely and informed decisions.

8. In MKIS, computers support marketing management by:

  • A. Handling customer complaints manually
  • B. Reducing marketing budgets automatically
  • C. Replacing all marketing staff
  • D. Providing accurate information for planning, controlling, and decision-making
Computers in MKIS provide timely and accurate information, supporting marketing managers in planning, control, and strategic decision-making.

9. Which of the following is an example of computer support for marketing management?

  • A. Conducting field visits only
  • B. Generating customer trend reports automatically
  • C. Manual filing of customer complaints
  • D. Sending letters physically to customers
Computers in MKIS can automatically generate trend reports, dashboards, and performance summaries, helping managers analyze markets efficiently.

10. Which of the following best describes how MKIS supports marketing management?

  • A. By providing relevant information for strategy formulation and market analysis
  • B. By eliminating competition in the market
  • C. By increasing marketing costs significantly
  • D. By replacing human judgment entirely
MKIS supports marketing management by providing accurate and timely information that aids in market analysis, planning, and strategic decision-making.

11. How does MKIS support marketing mix decisions in banks?

  • A. By automating cash handling only
  • B. By providing information on product, price, place, and promotion strategies
  • C. By replacing branch managers
  • D. By eliminating customer complaints
MKIS provides relevant data to help managers make informed decisions about product offerings, pricing, distribution channels, and promotional strategies.

12. Which of the following is an example of MKIS supporting pricing decisions?

  • A. Tracking employee attendance
  • B. Generating loan recovery reports
  • C. Sending SMS alerts to customers
  • D. Analyzing competitor interest rates to optimize deposit or loan rates
By analyzing competitor rates and market trends, MKIS helps banks decide optimal pricing for loans and deposits.

13. Decision models in MKIS help marketing managers to:

  • A. Evaluate alternatives and predict outcomes for better decision-making
  • B. Replace the need for marketing research
  • C. Automate all branch operations
  • D. Eliminate customer interactions
Decision models provide structured frameworks to assess alternatives, forecast outcomes, and support rational marketing decisions.

14. Which type of decision model is commonly used in MKIS for resource allocation?

  • A. Payroll model
  • B. Loan approval model
  • C. Linear programming or optimization models
  • D. Cash handling model
Linear programming and other optimization models help banks allocate marketing resources efficiently among products, channels, and campaigns.

15. How can MKIS decision models assist in promotional strategy planning?

  • A. By replacing all advertising staff
  • B. By simulating the effects of different promotional campaigns on customer response
  • C. By ignoring competitor promotions
  • D. By eliminating the need for customer feedback
Decision models in MKIS can simulate various promotional scenarios, predicting customer reactions and helping managers select the most effective campaign.

16. Which of the following indicates the performance of a Marketing Information System (MKIS)?

  • A. Number of employees in the marketing department
  • B. Amount of cash in the bank
  • C. Timeliness, accuracy, and usefulness of information for decision-making
  • D. Number of branches only
MKIS performance is measured by how timely, accurate, and useful the information is for marketing managers in making decisions.

17. Which recommendation can improve the effectiveness of MKIS?

  • A. Reducing data collection to save costs
  • B. Regularly updating databases and integrating new information sources
  • C. Removing analytical tools from the system
  • D. Limiting access to only senior management
Updating databases and integrating new sources ensures the MKIS provides accurate, relevant, and current information for better decision-making.

18. Which of the following is an advantage of implementing MKIS in banks?

  • A. Eliminates all need for human judgment
  • B. Replaces all marketing personnel
  • C. Reduces marketing research to zero
  • D. Provides timely and accurate information for effective marketing decisions
MKIS provides timely, accurate, and relevant information, enabling marketing managers to make well-informed decisions and improve bank performance.

19. How does MKIS performance benefit marketing strategy formulation?

  • A. By providing actionable insights from collected data
  • B. By increasing employee workload
  • C. By reducing customer interaction
  • D. By replacing branch operations
MKIS translates raw data into actionable insights, helping managers formulate effective marketing strategies and make informed decisions.

20. Which of the following is a key recommendation for maximizing MKIS advantages?

  • A. Avoid using decision support tools
  • B. Limit marketing intelligence collection
  • C. Integrate MKIS with other management information systems and ensure regular updates
  • D. Focus only on past data, ignoring trends
Integrating MKIS with other systems and keeping it updated maximizes its advantages, ensuring managers have current and comprehensive data for decisions.

21. In the MKIS model, which stage involves collecting data from internal records, marketing research, and external sources?

  • A. Data Analysis
  • B. Data Collection
  • C. Decision Implementation
  • D. Feedback Monitoring
Data collection is the first stage of the MKIS model and involves gathering information from internal and external sources for analysis.

22. Which stage of the MKIS model converts collected data into meaningful information for managers?

  • A. Data Collection
  • B. Feedback Monitoring
  • C. Data Analysis
  • D. Reporting
Data Analysis processes raw data and generates insights that help managers make informed marketing decisions.

23. Observations from MKIS are important because they:

  • A. Help identify trends, customer preferences, and potential market opportunities
  • B. Replace all marketing managers
  • C. Automate all banking operations
  • D. Reduce the need for customer interaction
Observations help managers understand market behavior, customer needs, and competitive dynamics to make strategic marketing decisions.

24. Scenario: A bank notices a sudden decline in term deposit growth despite attractive interest rates. How can MKIS observations assist?

  • A. By suggesting to reduce staff
  • B. By automatically increasing interest rates
  • C. By eliminating competitor analysis
  • D. By analyzing customer preferences, competitor offers, and identifying marketing gaps
MKIS observations allow the bank to study customer behavior, competitor strategies, and market trends, helping to address the decline effectively.

25. Which of the following is a key advantage of using MKIS for scenario-based marketing decisions?

  • A. Reduces the need for branch operations
  • B. Provides data-driven insights for evaluating different strategies before implementation
  • C. Replaces all managerial decisions
  • D. Eliminates the need for customer feedback
MKIS allows managers to test different scenarios and evaluate potential outcomes, leading to informed and effective marketing decisions.

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