bus 360500 ff 2007 final wo ans

Final Exam, 200 Questions, 10pts. ea.

Name: __________________________ Date: _____________

1. In today's market environment, you might pay $15 for a CD by your favorite musical artist. Approximately how much of that price goes to activities related to marketing (promotion, distribution, profit margins)?A) $1.70B) $3.40C) $5.10D) $7.50E) $12.75

2. A junior marketing executive at MegaGrain Cereals suggests increasing the package size and price of its best-selling brand without increasing the amount of cereal inside the box. Her superior warns that this might be a bad idea because MegaGrain's long-term survival, like most companies, depends onA) cost-cutting measures.B) continually selling to new customers and markets.C) creating and maintaining satisfying exchange relationships.D) high-volume, low-margin sales.E) increasing shelf space for their brands.

3. As the Industrial Revolution came to the United States, most firms operated in a(n) ___________ orientation.A) marketingB) societalC) salesD) evolutionaryE) production

4. Marketing activitiesA) are aimed at persuading customers through advertising.B) involve mainly distribution and promotion decisions.C) and selling activities are basically the same.D) are important only when a firm is developing new products or entering new markets.E) help sell an organization's products and generate financial resources for the firm.

5. _________ of marketing plans hinges on coordination of marketing activities, motivation of marketing personnel, and effective communication within the marketing unit.A) ImplementationB) PlanningC) OrganizingD) Marketing controlE) Strategic planning

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Use the following to answer question 6:

James Reverley owns a funeral home that offers discount funerals. Reverley's funerals cost around $3,900, compared with an average cost of $6,500. Although business was slow at first, his funeral home is now busy, because of referrals and advertising. Reverley does not believe that the funeral industry has been marketing-oriented, especially in price-disclosure policies and sales techniques. He became disenchanted with the traditional funeral services after working for several funeral homes. He drove limousines to cemeteries and kept hearing people in the back seat saying, This is terrible. Don't do this type of thing when I die. Reverley has indicated that he wants to provide an alternative.

6. Reverley's main competitive advantage over traditional funeral directors comes from his adjustment of which element in the marketing mix?A) ProductB) PriceC) PromotionD) DistributionE) Marketing research

7. From the 1920s to the 1950s, demand for manufactured goods decreased, leading to the ______ orientation.A) productionB) marketingC) revolutionaryD) salesE) reduction


James Reverley owns a funeral home that offers discount funerals. Reverley's funerals cost around $3,900, compared with an average cost of $6,500. Although business was slow at first, his funeral home is now busy, because of referrals and advertising. Reverley does not believe that the funeral industry has been marketing-oriented, especially in price-disclosure policies and sales techniques. He became disenchanted with the traditional funeral services after working for several funeral homes. He drove limousines to cemeteries and kept hearing people in the back seat saying, This is terrible. Don't do this type of thing when I die. Reverley has indicated that he wants to provide an alternative.

8. Referrals and advertising have helped Reverley's business grow. These would come under which of the following marketing mix variables?A) ProductB) PriceC) DistributionD) PromotionE) Promotion and price

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9. Marketing knowledge and skillsA) are not necessary for a nonprofit organization.B) enhance consumer awareness and help provide people with satisfying goods and services.C) constitute the marketing mix.D) were most important during the production era.E) are most valuable for advertising executives but less important for wholesalers and

distributors.

10. The Church of the Latter Day Saints has used advertising for many years to market itsA) goods.B) services.C) experiences.D) production.E) ideas.

11. The focal point of all marketing activities isA) products.B) the marketing mix.C) profits.D) sales.E) customers.

12. Which of the following would not be a customer cost considered in determination of product value?A) Product's purchase priceB) Time spent purchasing the productC) Effort spent purchasing the productD) Benefits received in the exchange for the productsE) Risk of purchasing the product

13. A group that has the willingness, ability, and authority to buy a product is aA) market.B) consumer.C) strategic business unit.D) business customer.E) strategic window.

14. A waitperson in a fine restaurant has the authority to give a complimentary dessert to a dissatisfied customer when the customer complains about the meal or service. This is an example ofA) benchmarking.B) individualism.C) good training.D) empowerment.E) localized authority.

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15. If you were a marketing manager, under which type of organizational structure would you most likely be working if your firm were a large business with centralized marketing operations?A) Organization by type of customerB) Organization by functionC) Organization by regionsD) Organization by products and regionsE) Organization by products

16. The Boston Consulting Group's matrix is based on theA) idea that a firm's market share and market attractiveness are the important factors for a

marketing strategy.B) assumption that a firm's actions have a profitable impact on marketing strategy.C) business position and market attractiveness of the firm.D) philosophy that a product's market growth rate and its market share are important

determinants of its marketing strategy.E) idea that a product's market growth rate and market attractiveness determine the marketing

strategy.

17. Resource deployment and coordination of functional areas of business are determined byA) the mission statement.B) corporate strategy.C) business-unit strategy.D) marketing strategy.E) the marketing mix.

18. A firm that wants to put more senior management personnel into the field, to get closer to customers, and to enable the company to respond more quickly and efficiently to competitors would probably organize its marketing unit on the basis ofA) functions.B) regions.C) customer types.D) markets.E) products.

19. Jones, Inc., is preparing a written document specifying the activities to be performed to implement and control its marketing activities. This document is called theA) profit plan.B) marketing program.C) strategic market program.D) strategic business plan.E) marketing plan.

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20. Firms that truly adopt the marketing concept develop a distinct organizational culture based on a shared set of beliefs that makes ___________ the pivotal point of the firm's decisions about strategy and operations.A) beating competitorsB) increasing market shareC) customers' needsD) marketing implementationE) marketing control

21. The marketing plan isA) a plan of all aspects of an organization's business strategy.B) written differently for each SBU.C) a written document detailing activities to be performed to implement and control marketing

actions.D) designed to specify not only marketing, but all other functional areas of business activities

as well.E) updated only periodically.

22. A competitive advantage that cannot be readily copied by the competition is referred to as a(n) __________ advantage.A) controllableB) sustainableC) noncopyableD) effectiveE) implementable


Candy Cones Company (CCC) began operations five years ago selling made-to-taste ice cream to college students. The process involves grinding up candy bars or cookies to make customer-selected flavors of ice cream. The original shops were all run by the owner-founder, but CCC has experienced such rapid growth that management is considering franchising CCC shops in several new locations. The owner has called in the Smarter Marketing Consulting Group to help plan for the future.

23. During the consulting process, Smarter Marketing suggests that CCC subscribe to a publication that forecasts trends in college enrollments. This is an example ofA) market attractiveness.B) assessment of market share.C) product-portfolio analysis.D) marketing strategy.E) environmental analysis.

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24. When the right combination of circumstances occurs at the right time to allow an organization to take action toward a target market, the firm is faced with aA) market objective.B) market requirement.C) strategic market plan.D) market opportunity.E) corporate objective.

25. The textbook suggests that the best approach a firm can take in responding to marketing environmental forces isA) reactive.B) proactive.C) inactive.D) active.E) variable.

26. Discretionary income is associated with all of the following exceptA) automobiles.B) education.C) pets.D) furniture.E) food.


A new U.S. automobile company, Specific Motors, was established in 1995. In 2001, a recession caused disposable income to decline, and the annual amount of dollars spent by consumers for automobiles dropped drastically. Specific Motors faced the problem of trying to determine whether the economy would turn toward prosperity or toward depression. No matter what happened, Specific Motors was also worried about an impending global steel shortage, which would make a big difference in its future marketing plans. The economy might recover from the recession, but the automobile makers might be forced to ask consumers to curtail consumption just when the hope of a better year was finally in sight. All in all, the future looked dismal for Specific Motors.

27. When Specific Motors is operating during a recessionary period, its promotion efforts should stressA) low cost.B) value and utility.C) the styling of its cars.D) the status of owning a new car.E) the variety of colors from which to select.

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28. Technology assessment isA) measuring how much technology has been incorporated into an organization.B) trying to foresee the effects of new products and processes on the firm's operation and on

society in general.C) assessing how much technology one wants to incorporate into a company in the future.D) judging how a firm's products affect society.E) weighing the cost of new technology to determine whether a firm can afford to use it.

29. When using credit to make purchases, consumers areA) decreasing current buying power and increasing future buying power.B) increasing their present discretionary income to extend purchasing power.C) putting themselves at significant risk of financial disaster.D) forgoing the accumulation of wealth to increase current income.E) increasing current buying power at the expense of future buying power.

30. Why are marketers interested in consumers' levels of disposable income?A) It accurately predicts future buying power.B) It increases current buying power.C) It is what is left after taxes and savings to buy luxuries with.D) It is a ready source of buying power.E) It is essential for forecasting future business trends.

31. The two least common competitive structures at the opposite ends of the continuum areA) monopolies and oligopolies.B) pure competition and monopolies.C) monopolistic competition and monopolies.D) pure competition and no competition.E) oligopolies and pure competition.

32. The four major competitive structures areA) monopolies, oligopolies, oligopolistic monopolies, and pure competition.B) pure competition, heavy competition, moderate competition, and light competition.C) brand, product, total budget, and generic.D) oligopolies, monopolies, monopolistic competition, and pure competition.E) monopolies, limited competition, oligopolistic competition, and pure competition.

33. Environmental scanning means ___________ information about the marketing environment, whereas environmental analysis is concerned with ___________ this information.A) assessing; collectingB) assessing; interpretingC) collecting; assessingD) interpreting; observingE) gathering; observing

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34. Before the introduction of the Federal Sentencing Guidelines for Organizations, which of the following would be punished for violations of the law?A) Both the company and the employee involved in the violationB) Only the supplier involved in the violationC) Only the company involved in the violationD) Only the employees directly responsible for a violationE) No one ever got punished.

35. When a firm has many potential competitors and tries to develop a marketing strategy to differentiate its products from the competitors' products, a(n) _______ structure exists in the competitive environment.A) oligopolyB) monopolyC) pure competitionD) oligopolistic competitionE) monopolistic competition

36. Marketers primarily focus their environmental analysis on ____ competitors.A) brandB) productC) total budgetD) genericE) monopolistic

37. The boundary between legal and ethical issues isA) clearly distinguished.B) blurred.C) nonexistent.D) determined by the courts.E) determined by marketing managers.

38. McDonald's supports and funds Ronald McDonald houses for the families of terminally-ill children to stay in to be near their loved ones. McDonald's action demonstrates the fulfillment of ______ responsibility.A) legalB) societyC) philanthropicD) economicE) ethical

39. Marketing ethicsA) refers to laws and regulations that govern marketing.B) refers to principles and standards that define acceptable conduct in marketing.C) maximizes an organization's positive impact and minimizes its negative impact on society.D) is most important for advertising agencies.E) applies well-defined rules for appropriate marketing behavior.

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40. The interaction between _____ and _____ helps determine the ethical value system of the firm.A) corporate culture; executive leadershipB) front-line employees; customersC) customers; executive leadershipD) managers; executive leadershipE) front-line employees; management

41. Opportunity provides a pressure that may determine ethical decisions in marketing. Opportunity is best thought of asA) unethical behavior found in top management.B) a favorable set of conditions that limit barriers or provide rewards.C) the principles or rules that individuals use to determine the way to behave.D) a person's relationship with others in the organization.E) a problem or situation requiring an individual to choose a course of action.

42. Beth knows that her company has a formal code of conduct, but she does not see this code being equally and consistently applied to all employees. Beth believes that this sporadic enforcement of the formal code only enhances the _____ for committing unethical acts.A) opportunityB) cultureC) individual factorsD) complianceE) punishment

43. According to the text, marketing ethics refers to principles and standards that defineA) improper behavior in marketing.B) acceptable conduct in society.C) improper behavior in business.D) acceptable conduct in marketing.E) acceptable conduct in general.

44. Companies that are considered to be good corporate citizens and consider the diverse perspectives of different groups affected by their operations are said to have a ___________ orientation.A) marketingB) salesC) productionD) stakeholderE) citizen

45. In a classroom discussion, Jacob agrees with Marcie that consumers generally want biodegradable beverage cups. However, he says that businesses in that industry must evaluate whetherA) they can be produced.B) consumers are willing to pay higher prices for them.C) the competition will ever make them.D) stores will stock them.E) they can be effectively promoted.

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46. Distribution-related ethical issues arise when marketersA) do not provide intermediaries with enough information about how a product is priced.B) force channel intermediaries to behave in a specific manner.C) bribe salespeople to push one product over another.D) fail to disclose information to consumers about the risks associated with using a product.E) distribute a product that is very similar to a competing product.

47. Sharese wants to buy a new couch, but there is only one place in her town that sells them, and she lives in an isolated area. Sharese most likely feels her consumer right to ______ has been violated.A) chooseB) be heardC) safetyD) recourseE) be informed

48. Justin believes that certain conditions at his company are very conducive to engaging in unethical behavior because these conditions provide rewards such as faster promotions and better raises for those who bend the rules. Justin's company seems to allow ______ for unethical behavior.A) peer pressureB) individualityC) corporate cultureD) exposureE) opportunity

49. In the consumer buying decision process, the information search stageA) yields a group of brands that a buyer views as possible alternatives.B) involves a buyer becoming aware of the need for a product.C) is not necessary when the buyer is involved in extensive decision making.D) occurs immediately after evaluation of alternatives.E) is lengthy for routine response buying behavior.

50. If a consumer receives information that is inconsistent with her or his beliefs, the consumer may alter this information. This perceptual process is known as selectiveA) exposure.B) distortion.C) retention.D) information.E) organization.

51. Cognitive, affective, and behavioral are the three major components ofA) self-concept.B) motives.C) lifestyles.D) consumer socialization.E) attitudes.

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There are many forces that affect consumer decision making, but information from friends has long been recognized as an important influence. A study of Coca-Cola drinkers found that persons who had complained about Coke and were not satisfied with the company's response usually told nine or ten other people about the experience. In 12 percent of the cases, they told more than 20 people. In addition, 75 percent of the complaint study respondents cut down their consumption of Coca-Cola. If complainers were satisfied with Coke's response, most told four or five other people, and 10 percent ended up buying more of the company's products.

52. Positive feelings generated by satisfaction with Coke's response will become part of a consumer'sA) personality.B) motives.C) social class.D) role.E) attitude.

53. When Julia goes to the first class of her Operations Management course, she finds out that in addition to the textbook she already purchased, she also needs a copy of the book The Goal. At which stage of the consumer buying decision process is Julia?A) PurchaseB) Evaluation of alternativesC) Problem recognitionD) Information searchE) Prepurchase evaluation

54. What consumer research method consists of a series of adjectives, phrases, or sentences regarding an object, with subjects indicating the intensity of their feelings toward this object by reacting to these adjectives, phrases, or sentences?A) Projective specificationB) Patronage clarificationC) Group interviewD) Attitude scaleE) Depth interview

55. Bob Turner makes an appointment to visit with a new dermatologist in town to determine whether he should have several moles on his neck removed. When he arrives at the dermatologist's office, Bob notices a foul odor in the air, worn floor coverings, cluttered rooms that have paint peeling from the walls, and poor lighting. While Bob viewed the dermatologist as competent, Bob decided not to have the moles removed even though the dermatologist recommended removal. Which situational influences are most likely to have affected Bob's decision?A) Social surroundingsB) Customer's momentary mood and conditionC) Time pressuresD) Purchase reasonsE) Physical surroundings

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56. Jennifer is interested in joining Kappa Lambda Iota sorority. She begins to shop at Sarah's, a local store where the Kappas buy their clothes. She also asks her family for a new car because all the sorority members have new cars. In these instances, Jennifer is influenced byA) personality.B) a reference group.C) a consideration set.D) a knowledge base.E) a role conflict.

57. Purchasers who intend to use or benefit from the purchased product and do not buy products to make profits are part of theA) consumer market.B) end-use consumption group.C) business market.D) household purchasing group.E) organizational market.

58. Temporary and dynamic factors that result from a particular set of circumstance a consumer is facing when making purchase decisions characterizeA) enduring involvement.B) extended problem solving.C) selective exposure.D) situational involvement.E) selective retention.

59. Cindy and Mac are searching for a health club to join. This purchase will likely be affected by ___________ involvement.A) lowB) internalC) enduringD) evokedE) perceived

60. Hereditary characteristics combined with personal experiences that together make an individual unique form one'sA) self-concept.B) attitudes.C) lifestyle.D) personality.E) role.

61. A practice in which two businesses agree to buy from each other isA) a new task purchase.B) a straight rebuy.C) a modified rebuy.D) reciprocity.E) a straight purchase.

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62. Barry Gluckman of WP International, a major marketer of word-processing software, calls the secretary of Renee Doucette, director of purchasing for MMK, Inc. He sets up an appointment to discuss an upcoming purchase of software. The secretary plays the role of ___________ in this purchase decision.A) gatekeeperB) buyerC) deciderD) buying center captainE) order giver

63. Inelastic demand simply means thatA) buyers will not make a modified rebuy purchase.B) demand depends on how many items are purchased.C) a price increase or decrease will not significantly change the demand for an item.D) when price goes up, demand goes down.E) when supply is reduced, the price will increase.

64. In business markets, individuals or groups purchase products for one of three purposes. These purposes areA) resale, wholesale, and direct use.B) wholesale, direct use, and use in producing other products.C) resale, wholesale, and use in producing other products.D) resale, direct use in producing other products, and use in general daily operations.E) use in general daily operations, wholesale, and resale.


The American Titan Manufacturing Company (ATM) is a producer of railroad cars and is considering retooling its production facilities. The list of equipment needed is quite extensive, and the purchasing agent is inquiring about who will be needed for input on the purchasing decision. The main piece of equipment the firm requires is an overhead crane to transport partially assembled cars to various stages of the production process. There are several producers of overhead cranes. Their sales representatives have contacted ATM, and preliminary negotiations have begun.

65. There are many factors that would influence ATM's business buying decisions. Which one of the following would not?A) EnvironmentalB) OrganizationalC) InterpersonalD) DemographicE) Individual

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66. Individuals and business organizations that buy finished goods and resell them to make a profit without changing the physical characteristics of the product are classified as ___________ markets.A) consumerB) institutionalC) producerD) governmentE) reseller

67. Most businesses try to control the level of quality in the parts they buy from suppliers. Most firms develop standards for _____ in order to achieve their quality goals.A) how many different suppliers they useB) how many parts can failC) controlling when shipments will arriveD) the percentage of defects allowedE) how long the parts should last

68. Most business buying decisions are made byA) one person.B) a team of purchasing agents.C) a firm's buying center.D) inventory control personnel.E) the sales force.

69. A buyer for Dillard Department Stores orders handbags from a supplier because that supplier allows the buyer to maintain Dillard's company policy of 30-day advance purchase notice. This is an example of ___________ influence on the business buying decision process.A) environmentalB) organizationalC) interpersonalD) individualE) demographic

70. An accountant who purchases software for maintaining clients' books is an example of a buyer in a(n) ___________ market.A) consumerB) producerC) resellerD) governmentE) institutional

71. Administrative assistants that control the flow of information to other people in the organization often play the _____ role in the buying center.A) gatekeeperB) userC) influencerD) buyerE) controller

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72. If a certain country considered handshakes in business transactions to be taboo and preferred to use nodding, this would be an example of differences in _____ forces.A) culturalB) politicalC) economicD) technologicalE) regulatory

73. One of the effects of NAFTA is the simplification of country-of-origin rules. This will likely hinder the international trade activities ofA) Canada.B) Japan.C) Brazil.D) Cuba.E) Panama.

74. In considering the viability of potential international markets for Pepsi products, PepsiCo is advised to take into account __________, which provides insight into market potential.A) per capita gross domestic productB) gross domestic productC) the quantity of exportsD) the quantity of importsE) total consumer income

75. General Industries has operations in more than 30 foreign countries. The headquarters in Atlanta controls the entire organization while offering subsidiaries the freedom necessary to achieve success in local markets. General Industries is an example of a(n)A) strategic alliance.B) joint venture.C) export-driven corporation.D) multinational enterprise.E) trading company.


The Print-Rite Company manufactures a unique printing machine designed to print labels for cans of all types. The printer has no distribution outside the Midwest.

In 1995, Enoch Jallow, a Gambian student who had just completed his MBA degree at a large Midwestern university, purchased a used Print-Rite printer with the idea of using it in his father's canning factory when he returned home later that year. By 2000, the Jallow Canning Factory had grown to become the largest in western Africa, with more than 90 percent of its product being exported to Nigeria and Ghana. In the spring of 2005, the Jallows were planning to expand operations and enter the Sierra Leonian and Liberian markets with their products for the first time. To accomplish this, two new Print-Rite printers would have to be purchased.

In the late fall of 2005, Enoch Jallow flew to the United States to negotiate the purchase of the printers from Print-Rite and to take care of the shipping arrangements himself.

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76. Jallow's purchase of printers from Print-Rite is best described as an example ofA) globalization.B) franchising.C) licensing.D) exporting.E) importing.

77. Miller's Home Furnishings uses marketing strategies aimed at markets within the United States, its home country. Miller's engages inA) domestic marketing.B) localized marketing.C) globalized marketing.D) limited exporting.E) international marketing.

78. Which of the following is most likely to engage in direct ownership activities internationally?A) Internationally integrated structuresB) International division structuresC) Export department structuresD) Import department structuresE) Outsourcing structures

79. Approximately ____ of the world's purchasing power is outside of the United States.A) 1/10B) 1/3C) 2/3D) 1/2E) 9/10

80. Which of the following alliances/agreements is the United States not a part of?A) NAFTAB) APECC) GATTD) WTOE) MERCOSUR

81. Levi Strauss markets its denim jeans in many countries and develops its marketing strategy as if the world were a single market. This approach to selling a standardized product in all countries represents which type of international marketing?A) ExportingB) Accidental exportingC) Limited exportingD) LicensingE) Globalization of markets

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82. Which of the following would be a benefit to a franchiser, such as Jiffy Lube, in expanding into international marketing?A) There are no risks involved with allowing a foreign franchisee.B) The franchiser does not have to put up a large capital investment.C) The franchiser does not have to share its name or operational procedures.D) The franchisee only pays a set fee every month to the franchiser.E) An equal partnership is formed between the franchiser and franchisee.

83. What is the primary distinction between a joint venture and a strategic alliance in international marketing?A) Strategic alliances are only formed between companies from well-developed countries

whereas joint ventures are between companies from economically-diverse countries.B) A joint venture involves only two companies whereas a strategic alliance is formed

between three or more companies.C) A strategic alliance is formed by companies who have traditionally been rivals, which is not

the case with a joint venture.D) A joint venture is formed between companies with dissimilar product offerings while a

strategic alliance is formed between companies with similar product offerings.E) A joint venture is simply a financial investment in a foreign firm while a strategic alliance

involves more than just financial support.

84. At Boeing, company employees work together using software that allows people in different locations to access and work on the same file over the Internet. This is calledA) shareware.B) e-marketing.C) e-mail.D) teleconferencing.E) groupware.

85. The ___________ characteristic of e-marketing indicates that direct marketing efforts to specific customers can be very effective.A) digitalizationB) accessibilityC) addressabilityD) controlE) memory

86. Which of the following is an example of a new service created by the abundance of information available on the Web?A) Web search enginesB) Internet service providersC) Auction sitesD) Web pagesE) Telecommunications

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87. When you search for the word travel using a search engine on Yahoo! and an ad for Bon Voyage Travel agency pops up, you are encountering a ___________ ad.A) buttonB) bannerC) sponsorshipD) keywordE) pop-up

88. The ability to process orders electronically and increase the speed of communications via the Internet reduces inefficiencies, costs, and redundancies throughout the marketing channel. This best relates to which of the following marketing mix elements?A) ProductB) DistributionC) PromotionD) PriceE) Advertising

89. According to the text, a person who attempts to sell the right to use a URL that duplicates or is similar to the trademark of a company is called aA) controlsquatter.B) digitalsquatter.C) cybersquatter.D) addressability owner.E) spammer.

90. ___________ represents the ultimate expression of the marketing concept because this e-marketing characteristic provides understanding of customer purchases that can be used to tailor marketing mixes more precisely.A) MemoryB) InteractivityC) AddressabilityD) AccessibilityE) Control

91. One of the most significant ethical concerns of consumers with respect to e-marketing isA) personal privacy.B) preservation of competition.C) profitability of vendors.D) customer service.E) communication conduct of employees.

92. Visitors to the Living Online website have established a sense of group membership or feeling of belonging by individual members; they have become aA) market segment.B) target public.C) target market.D) commune.E) community.

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Wyoming Technical Institute, a private technical school, trains students to be automotive, diesel, or collision/refinishing technicians and utilizes e-marketing strategies in all areas of recruitment. The physical campus is located in Laramie, Wyoming. The training is 50 percent hands-on. Students from all over the world can link to the webpage at www.wyomingtech.com for all types of information.

93. Potential students for Wyoming Technical Institute may request a full catalog through a link on the website. This is an example ofA) interactivity.B) accessibility.C) addressability.D) real time.E) control.

94. According to the text, the 80/20 rule suggests thatA) 80 percent of profits come from 20 percent of business customers.B) 20 percent of profits come from 80 percent of business customers.C) 20 percent of profits come from 80 percent of customers.D) 80 percent of profits come from 20 percent of customers.E) 80 percent of profits come from 20 percent of sales.

95. An important consideration in e-marketing is ______ or making products available at the right time, place, and quantities.A) promotionB) distributionC) customizationD) product developmentE) pricing

96. When more information is needed about a problem and a tentative hypothesis needs to be made more specific, marketers usually conduct _________ research.A) descriptiveB) experimentalC) exploratoryD) analytical statisticalE) conclusive

97. Marketers often begin the data collection phase of a research project by gathering secondary data. This type of information may come from both ___________ and ___________ sources.A) government; businessB) internal; externalC) primary; secondaryD) formal; informalE) collected; distributed

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98. Subscription services from firms such as ACNielsen provide marketing researchers with a good source of ___________ data.A) censusB) statisticalC) internal secondaryD) external secondaryE) primary

99. Cameras, counting machines, and scanners are used most often inA) surveys.B) secondary data gathering.C) field settings.D) observation.E) experimentation.

100. Marketers of Jolt Cola implemented a telephone survey to determine the effectiveness of a recent advertising campaign. One of the questions the interviewer asked was, Have you ever heard of a cola with twice the caffeine of regular colas? This is an example of which of the following kinds of questions?A) Open-endedB) DichotomousC) Multiple-choiceD) ImperativeE) Declarative

101. If Procter & Gamble, the maker of Ivory Liquid, wants to know what percentage of customers examine product labels before making a product selection in the grocery store, it can best gain this information throughA) focus groups.B) mail surveys.C) personal interviews.D) observation.E) mall intercepts.

102. An online survey conducted before students could register for their fall semester classes asked, Do you think online professor evaluation forms would be better than paper and pencil forms administered during class? This is an example of a(n) ______ question.A) close-endedB) short answerC) multiple-choiceD) open-endedE) dichotomous

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103. Spam and privacy are both issues of concern related toA) personal interview surveys.B) telephone surveys.C) shopping mall intercept interviews.D) e-mail surveys.E) online experimentation.

104. Although telephone surveys can be conducted very quickly, a major limitation isA) the ability to gain rapport with respondents.B) the difficulty in asking probing questions.C) that few companies prefer this survey method.D) that only a small portion of the population likes to participate in telephone surveys.E) the expense compared to in-home interviews.

105. The objective of sampling in marketing research is toA) obtain responses from as many people as possible.B) control independent variables that might influence research results.C) select representative units from a total population.D) ensure that measures in the study are reliable.E) provide data that can be used to test the hypotheses being investigated.

106. A research method in which a number of people are exposed to an idea or concept and the interaction of the people is observed is called a(n)A) in-home interview.B) mail-group survey.C) focus-group interview.D) shopping mall intercept interview.E) chat room interview.

107. If Staples believes that most of its sales are to businesses rather than consumers and that women are more likely to be making purchasing decisions, this would be a(n) ______ that Staples could test through marketing research.A) descriptionB) hypothesisC) explanationD) sampleE) experiment

108. One overlooked internal source of secondary marketing information discussed in the text isA) sales receipts.B) accounting records.C) interviews with salespeople.D) quality control data.E) consumer surveys.

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109. When research indicated that TDK's video and audio tape products were not reaching the correct target market, marketers of TDK decided to change from demographic segmentation to psychographic segmentation. Which group of new segmentation variables will TDK now be using?A) Geographic location of customersB) Age, sex, and socioeconomic characteristicsC) Social class variablesD) Personality characteristics, motives, and lifestylesE) Family life cycle, social class, and religion


Pasta Express restaurants offer take-home dinners designed to appeal to America's growing meal replacement market. The meals, consisting of a choice of three types of pasta, meat sauces and meatballs, salad, cheeses, and garlic bread, are ready to go in two minutes. Ignoring the lunch crowd, the restaurants are open from 4 p.m. to 9 p.m. Originally begun in Southern California, Pasta Express is preparing to open a few restaurants in other areas of the United States on a trial basis to see whether the concept will work in other regions. The company realizes that some changes may be needed. For example, management wants to find out how the firm's recipes should be altered to appeal to people in other parts of the country.

110. Which of the following best describes Pasta Express's current approach to the market?A) It is segmenting the market according to demographic variables.B) It is segmenting the market according to product-related variables.C) It has chosen a segment that is not identifiable and divisible.D) Its market is impossible to reach because of legal constraints.E) It is not segmenting the market but is attempting to reach everyone with the product.

111. Katy Ramirez is a marketer for a golf equipment manufacturer. When forecasting company sales, she finds a direct association between past sales and per capita income. Which sales forecasting technique is Katy using?A) SurveysB) Executive judgmentC) Time series analysisD) Market testsE) Regression analysis

112. Miller Brewing does not consider teenagers to be a part of the beer market because they lack the ___________ to buy beer.A) moneyB) desireC) interestD) authorityE) willingness

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113. When marketing research shows that a group of people does not desire a particular product, the people in that groupA) are a market.B) do not have the ability to purchase the product.C) do not have the authority to purchase the product.D) are not a market for the product.E) are a market but will not purchase the product.

114. Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called?A) MicromarketingB) PopulationC) Market densityD) MSAE) PMSA

115. Most markets for products are made up of individuals or groups with diverse needs for products and are called ________ markets.A) undifferentiatedB) concentratedC) homogenousD) differentiatedE) heterogeneous

116. Which of the following forecasting methods is least dependent on historical sales data?A) Regression analysisB) Trend analysisC) Time series analysisD) Cycle analysisE) A market test

117. A business advantage of the concentrated targeting strategy for any company is that itA) requires less market research and information.B) requires less intensive analysis of customers' characteristics and needs.C) allows a firm to utilize all of its production capacity.D) maintains the firm's flexibility in moving into other market segments.E) allows a firm to develop a special marketing mix for a single market segment.

118. All of the following are categories of common forecasting techniques for business exceptA) surveys.B) time series analysis.C) customer determined.D) executive judgment.E) market tests.

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119. Company sales forecasts are least likely to be based onA) executive judgment.B) customer surveys or sales force surveys.C) time series analysis.D) market tests.E) single-variable segmentation.

120. Dexatrim segments its diet pills based on those who have morning cravings, those who tend to overeat near the end of the day, those who need all day long appetite suppression, and those who want appetite control and more energy. This is an example of market segmentation based on variables ofA) demographics.B) lifestyles.C) psychographics.D) behavior.E) personality characteristics.

121. Adolescents are not considered part of the market for casinos because theyA) have very little buying power.B) do not have the desire to gamble.C) are not willing to spend their money on gambling.D) cannot afford to gamble their savings.E) do not have the authority to gamble.


New Culture, a rock group and corporation held privately by the five band members and their manager, has been performing for ten years. The business end of the enterprise is divided into three areas: concert tours; music media sales; and T-shirts, posters, and other paraphernalia.

Initially, New Culture enjoyed phenomenal success and was in great demand for concert tours; however, their music media and paraphernalia sales were very low. Now the tables have turned. Music media sales are high, but the band is considered a little too old-fashioned for extensive concert tours. Its T-shirt and paraphernalia sales have never really taken off, but the manager of the band is convinced that they have great potential.

122. New Culture's music media sales are probably in what stage of the product life cycle?A) IntroductionB) GrowthC) MaturityD) DeclineE) Rejection

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123. During the maturity stageA) product modifications are unnecessary.B) there is less emphasis on changing a product's price.C) marketing strategies are rarely altered.D) some competitors are forced out.E) limited advertising expenditures are required to maintain market share.

124. Which of the following best defines the interest stage in the product adoption process?A) The buyer tries to find the product in a retail store.B) The buyer considers the benefits and determines whether to try the product.C) The buyer tries the product to determine its usefulness.D) The buyer seeks information and is receptive to learning about the product.E) The buyer uses objective sources to learn about the product.

125. A company wanting to maintain market share during the maturity stage requires moderate to largeA) advertising expenditures.B) distribution expenditures.C) production expenditures.D) price increases.E) packaging modifications.

126. In which stage of the product life cycle do profits begin to decrease?A) IntroductionB) GrowthC) MaturityD) DeclineE) Recovery

127. When Varsity Chevrolet offers to let qualified buyers test drive the new Corvette, the dealer is trying to stimulate which stage of the product adoption process?A) AwarenessB) InterestC) EvaluationD) TrialE) Adoption

128. Which of the following is always used to determine the classification of a good?A) Buyer's intent for using the productB) Amount of shopping required by the buyer to obtain the productC) Price of the productD) Specific product featuresE) Industry competitors

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129. During the introduction stage of a successful product, profits are usuallyA) at their highest point.B) negative and decreasing.C) negative and increasing.D) positive and increasing.E) declining.

130. As the production manager of an engineering firm, you went out and bought a metal cutting machine. What you have purchased can best be classified as aA) raw material.B) processed component.C) component part.D) service.E) business product.

131. The four major stages of a product life cycle includeA) prosperity, recession, depression, and recovery.B) specialty, convenience, shopping, and unsought goods.C) decline, stabilization, exposure, and growth.D) introduction, growth, maturity, and decline.E) awareness, interest, trial, and adoption.

132. The stage of the product life cycle when marketers consider eliminating products that are not contributing to profitability or the overall effectiveness of a product mix is the ____ stage.A) maturityB) declineC) growthD) introductionE) reorganization

133. During the growth stage of the product life cycle, marketers mustA) fortify the product position.B) move to exclusive distribution.C) raise the price.D) increase promotion as a percentage of sales.E) introduce private brands.

134. During the decline stage of the product life cycle,A) sales rapidly decrease.B) market share is maintained.C) competition is at a peak.D) profits begin to fall.E) profits peak and then begin to decline.

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135. An accountant buys a supply of pencils to be used in calculating the taxes of other business firms. Based on this information, pencils in this case would be considered what type of product?A) BusinessB) Process materialsC) Raw materialD) ConvenienceE) Consumer

136. Which of the following statements does not apply to convenience goods?A) Consumers are brand loyal to convenience products and are not likely to substitute other

brands.B) Convenience products require minimal shopping effort.C) Marketing of convenience products requires intensive exposure of these goods in as many

stores as possible.D) Consumers tend to feel that the most desirable retail facility for convenience products is

the closest one.E) Colas, gasoline, and bread are good examples of convenience goods.

137. Price strategies become more mixed during the ___________ stage of the product life cycle.A) growthB) maturityC) declineD) introductionE) late introduction

138. Although they become part of a larger product, _______ can often be easily identified and distinguished on the larger product.A) component partsB) accessory partsC) raw materialsD) process materialsE) MRO supplies

139. What are a marketing manager's two options during the decline stage?A) Reintroduce the product to new markets or stop sales immediatelyB) Speed up the product's decline or increase advertisingC) Attempt to postpone the decline or accept its inevitabilityD) Divesting the brand or reinvesting in the brandE) Accept the decline or phase the product out

140. Sales start at zero and profits are negative during the ____ stage of the product life cycle.A) declineB) growthC) initialD) maturityE) introduction

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141. Business products that are purchased routinely, do not become part of finished goods, and are expense items rather than capital goods are calledA) raw materials.B) installations.C) accessory equipment.D) component parts.E) process materials.

142. Which of the following is most likely to be considered a convenience good?A) A lampB) A haircutC) Running shoesD) GatoradeE) Concert tickets purchased online

143. Sue Hensel needed to buy an airline ticket to visit her parents. She called several airlines to compare rates and chose a flight on Delta Air Lines because, for comparable prices, it had a better reputation for service. For Sue, this flight is an example of which type of product?A) ShoppingB) ConvenienceC) SpecialtyD) UnsoughtE) Industrial

144. Hershey Foods Corp. offers a line of candy that includes Kit Kat, Mr. Goodbar, Krackel, Hershey's Kisses, New Trail, Reese's Peanut Butter Cups, Rolo, Twizzlers, and Nibs. These candies best illustrate Hershey's product mixA) width.B) depth.C) length.D) volume.E) life cycle.

145. Products are classified as being business or consumer products according to theA) goals of the organization.B) buyer's intended use of the product.C) seller's intended use of the product.D) location of use.E) types of outlets from which they are purchased.

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New Culture, a rock group and corporation held privately by the five band members and their manager, has been performing for ten years. The business end of the enterprise is divided into three areas: concert tours; music media sales; and T-shirts, posters, and other paraphernalia.

Initially, New Culture enjoyed phenomenal success and was in great demand for concert tours; however, their music media and paraphernalia sales were very low. Now the tables have turned. Music media sales are high, but the band is considered a little too old-fashioned for extensive concert tours. Its T-shirt and paraphernalia sales have never really taken off, but the manager of the band is convinced that they have great potential.

146. An example of how New Culture might deepen its product mix would be toA) develop a line of commercial videos.B) develop a television show.C) release a new album.D) do nothing; New Culture does not have a product line.E) produce a radio show.

147. Sales usually start to decline during the __________ stage of the product life cycle.A) beginning of the terminationB) end of the growthC) beginning of the declineD) beginning of the growthE) end of the maturity

148. Jack Berl gets a shopping list from his wife. On the list are a potted plant, fresh salmon, motor oil, bread, milk, and a birthday cake. To make just one stop to save time, Jack should go to a(n)A) convenience store.B) off-price retailer.C) specialty store.D) franchiser.E) supermarket.

149. Which of the following is an example of a category killer?A) SearsB) KmartC) MarshallsD) Lady Foot LockerE) Toys R Us

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150. Advo Systems is an organization that mails product brochures and coupons to potential consumers who can then purchase these products by mail or by phone. Advo Systems illustrates which of the following methods of selling retail products?A) Direct-response marketingB) Party planC) Catalog marketingD) Specialty retailingE) Direct selling


The Spaghetti Pot is a take-home restaurant designed to appeal to America's growing number of working women. For $4.29, a shopper can buy a meal consisting of spaghetti, meat sauce or meatballs, salad, cheese, and garlic breadall served in two minutes. The restaurants are located in shopping centers, usually next to supermarkets. Spaghetti Pot will grant dealers the right to sell its products in return for investments of between $137,000 and $162,000.

151. Another category of retailing that would describe Spaghetti Pot isA) automatic vending.B) mail-order retailing.C) in-home retailing.D) superstore retailing.E) franchising.

152. The performance of marketing-related activities conducted on the telephone is calledA) e-marketing.B) direct-response marketing.C) telemarketing.D) phone retailing.E) tel-selling.

153. Off-price retailers featureA) deep discounts, few customer services, and central checkouts.B) sales expertise, wide selections, and low prices.C) overstocks, designer brands, and moderate prices.D) a narrow product range and enormous product availability.E) cash only sales and few customer services.

154. A retail strategy of managing groups of similar, often substitutable products produced by different manufacturers is calledA) category management.B) scrambled merchandising.C) line extensions.D) aggregate management.E) wheel of retailing.

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155. Self-service, general merchandise stores such as Kmart are known asA) discount stores.B) warehouse showrooms.C) catalog showrooms.D) superstores.E) specialty retailers.


Michael Kelley owned a highly successful tobacco and gift store in St. Louis International Airport. Although the store was small, it was almost always busy, probably as a result of its distinct Irish atmosphere. Recently, Michael decided to change the name of the store from M. Kelley Tobacco & Gifts to Irish's Corner Store to capitalize on his already well-known nickname.

156. When Michael changed the store name, he also made an attempt to create an emotional effect that would enhance customer appeal. The best description of what he engaged in isA) imaging.B) atmospherics.C) interior psychic contouring.D) interior positioning.E) product positioning.

157. Automatic vending isA) a type of nonstore retailing.B) a specialty line retailer.C) not considered a form of retailing.D) a type of direct selling.E) a form of franchising.

158. A shopping center containing a Macy's, Marshall Fields, and JC Penney's as well as dozens of specialty shops, restaurants, and entertainment is most likely aA) regional shopping center.B) mall of America.C) community shopping center.D) complete business district.E) hypermarket.

159. A manufacturers' outlet mall is most appropriately classified as a(n)A) discounter.B) specialty retailer.C) off-price retailer.D) category killer.E) department store.

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160. What is the most popular type of product sold through television home shopping?A) ElectronicsB) ClothingC) JewelryD) Kitchen appliancesE) Cosmetics

161. Why is the headline of a print advertisement such a critical component of the copy?A) It determines the final layout design.B) It is often the only part of the advertisement that is read.C) It takes up the most space.D) It links the copy to the signature.E) It links the artwork to the signature.

162. Frederick Griffith of Griffith's department stores tells his marketing director that he is tired of the constant price-centered advertising by the firm's agency. We have the best customer service in town, and I feel that is what we should be hanging our hats on, he states. This statement is most appropriate for use in which of the following stages of campaign development?A) Determining the appropriationsB) Creating the platformC) Identifying the targetD) Defining objectivesE) Developing the media plan

163. The percentage of consumers in the target audience actually exposed to a particular advertisement in a stated period of time is the definition ofA) frequency.B) exposure.C) reach.D) targeting.E) push.

164. Soft drink companies advertise that their products beat the competition in national taste tests, and they refer to the rival brands by name. This type of advertising is best described asA) pioneer.B) competitive.C) comparative.D) defensive.E) selective.

165. The step in developing an advertising campaign that directly precedes campaign execution isA) defining advertising objectives.B) creating the advertising platform.C) evaluating advertising effectiveness.D) developing a media plan.E) creating the advertising message.

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166. The two major types of product advertising areA) institutional and advocacy.B) pioneer and competitive.C) competitive and comparative.D) advocacy and competitive.E) informative and comparative.

167. When Anheuser-Busch ran an advertising campaign featuring the slogan, Know when to say when, it was usingA) competitive advertising.B) public relations.C) product advertising.D) public service awareness.E) advocacy advertising.

168. If researchers at Merck Pharmaceuticals develop a cure for prostate cancer, the best way to announce this to the public and get wide media coverage would be through aA) captioned paragraph.B) press release.C) feature article.D) sponsorship.E) press conference.

169. Which of the following statements applies to media planning?A) Characteristics of the product are the most important consideration in selecting the media

for a campaign.B) The message content affects the types of media used for an advertising campaign.C) The location of the advertising target is irrelevant in media planning.D) Total media dollars spent on advertising have decreased over the last 30 years.E) Regardless of the message to be conveyed, newspapers are one medium that is

appropriate for almost any circumstances.

170. What is an advertising platform most commonly based upon?A) The opinions of employees within the firm or the advertising agencyB) Data collected from past marketing research about the brandC) Customer surveys about what they consider the most important issuesD) Retailer information about potential consumers of the productE) The advertising appropriation for that particular ad campaign

171. An advertising platform is theA) basic issue or selling point that an advertiser wishes to include in an advertising campaign.B) objective of the advertising campaign, stated in precise and measurable terms.C) form in which the basic issues of the campaign should be presented.D) broad objectives of the advertising campaign.E) consumer advertising research conducted.

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172. Buick's sponsorship of a major Professional Golf Association tournament is an example of a(n) ______ tool.A) advertisingB) public relationsC) sales promotionD) publicityE) personal selling

173. When a copywriter and an artist combine the copy with the visual material for a television commercial, it usually is done through use of aA) parallel format.B) commercial layout.C) layout procedure.D) storyboard.E) visual-impact process.

174. Aaron Epstein tells his fellow retail salesperson at Zales Jewelers that during the second quarter he is going to sell all the Alance watches he can and use his extra earnings to go to Cancun. He exclaims, Can you believe the __________ program they have on for this quarter?A) buying allowanceB) merchandise allowanceC) push moneyD) dealer loaderE) sweepstakes

175. Which of the following involves building mutually beneficial long-term associations with a customerusually a business customerthrough regular communications over prolonged periods of time.A) CRM sellingB) Missionary sellingC) Exclusive sellingD) Team sellingE) Relationship selling

176. ___________ are offers of cash to customers who purchase a specific product, and ___________ are offers of cash to customers who purchase a specific quantity of a specific product.A) Rebates; reimbursementsB) Cents-off; refundsC) Rebates; premiumsD) Buy-back allowances; money refundsE) Rebates; money refunds

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The Culpa Wine Company, a small winery in north central California, specializes in medium-quality table wines. The company enjoyed strong growth during the 1990s as more and more people switched from beer to wine. However, the heavy promotional efforts of some of the big wineries hurt Culpa. By 2000, the company was struggling financially due to declining sales. It was at that time that Jane Keelin, the sales manager, identified the communion wine segment of the market.

177. Jane developed a sales program to reach this newly identified segment by putting together a sales force that would help guide Culpa Wine's wholesale customers in reaching the communion wine customers more effectively. Culpa's sales force is called a __________ sales force.A) technicalB) missionaryC) tradeD) fieldE) pioneer

178. ___________ are designed to identify the customers called on and to present detailed information about interaction with those clients.A) InvoicesB) Feedback noticesC) Work schedulesD) Call reportsE) Recall files

179. When better market conditions prevail or when company growth occurs, a company may suffer if itA) lowered its sales force objectives.B) recruited additional salespeople.C) decided to use a combination compensation plan.D) provided additional training for its sales force.E) cut back the size of its sales force.

180. In designing sales territories, a sales manager considers several major factors. The territories must be constructed so that sales potential can be measured; the shape of the territories should facilitate salespeople's activities to provide the best possible coverage of customers; andA) territories should be designed to minimize selling costs.B) all territories should be of similar size.C) the territorial pattern should consist of concentric circles.D) the density of potential customers should be minimized.E) the distribution of customers should be relatively equal.

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181. When a manufacturer rewards retailers based on the number of pieces moved through their scanners, this sales promotion method is known as aA) merchandise allowance.B) count-and-recount allowance.C) buy-back allowance.D) scan-back allowance.E) scan-count allowance.

182. Which of the following is not true when making the sales presentation?A) The salesperson should focus on anticipating questions and answering them before they're

asked.B) The salesperson must spark interest in the product.C) The salesperson should not only talk but also listen to the customer.D) The salesperson should involve the customer by having him or her hold, touch, or use the

product.E) A salesperson should not sound like he or she is just reading a script (i.e., he or she should

be flexible and respond to the customers' comments).

183. The type of salesperson that usually requires training in physical science or engineering is theA) trade salesperson.B) missionary salesperson.C) technical salesperson.D) order taker.E) order getter.

184. If Green Giant wants to provide its resellers with a secondary incentive to stimulate repurchases after an initial consumer coupon campaign for its latest product, it can offer resellers a sum of money for each unit purchased. This type of sales promotion is aA) buying allowance.B) count-and-recount allowance.C) scan-back allowance.D) buy-back allowance.E) coupon follow-up campaign.

185. Advertising that encourages customers to send in reply cards for additional information aids salespeople in achieving which goal of personal selling?A) Convincing prospects to buyB) Finding prospectsC) Keeping customers satisfiedD) Making the presentationE) Following up the sale

186. A person who primarily seeks repeat sales is called a(n)A) current customer order getter.B) order recorder.C) order taker.D) follow-up salesperson.E) missionary salesperson.

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187. Which of the following is not a discount provided to business customers?A) TradeB) CumulativeC) CashD) SeasonalE) Differentiated

188. To determine the breakeven point in units, divide the fixed costs byA) total costs.B) variable costs time price.C) price minus variable costs.D) price per unit.E) total revenue minus fixed costs.

189. A company trying to position itself as value oriented should notA) set prices that are reasonable relative to product quality.B) use premium pricing for its products.C) set prices similar to those of its competitors.D) use any advertising for its products.E) consider costs when determining the price of products.

190. The point at which the costs of producing a product equal the revenue earned from selling the product isA) elasticity of demand.B) the breakeven point.C) variable costs.D) price elasticity.E) the sum of fixed and variable costs.

191. Generally, customers are most likely to rely on the price-quality association whenA) they cannot judge the quality of the product for themselves.B) the product is a well-known brand.C) customers can judge the product's quality for themselves.D) the product is purchased through the use of the Internet.E) products are being purchased from well-established retailers that are familiar to customers.

192. Both the Federal Trade Commission Act and the Wheeler-Lea Act prohibitA) freezing prices.B) independent pricing policies.C) deceptive pricing.D) price fixing.E) price differentials.

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193. For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded.A) inelasticB) inverseC) positiveD) unknownE) elastic

194. The fact that a gas station in Texas pays less for fuel than a gas station in Maine from a producer in Louisiana suggests that refineries are using which of the following pricing methods?A) Price differentiationB) Base-point pricingC) Freight absorption pricingD) Transfer pricingE) Zone pricing

195. Which of the following is not a concern of the practice of price competition?A) Emphasis on priceB) Frequent price changesC) Price flexibilityD) Focus on product featuresE) Competitors' price

196. Monopolies usually keep their prices at a level that generate a reasonable, but not excessive, return primarily becauseA) they want to avoid new competitors entering their market.B) they want to avoid government regulations on their pricing.C) they try to satisfy the demands of value-conscious consumers.D) firms can increase market share more rapidly this way.E) customers will discontinue use of these products if prices rise.

197. When marketers emphasize price as an issue and match or beat the prices of other companies, they are usingA) price competition.B) nonprice competition.C) comparative pricing strategies.D) demand-based pricing.E) supply-based pricing.

198. The tuition and fees each student paid for this semester of college are both terms forA) expenses.B) charges.C) bills.D) price.E) exchange valuations.

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199. If a product has an inelastic demand and the manufacturer raises its price,A) total revenue will increase.B) quantity demanded will decrease.C) the demand schedule will shift.D) the demand will become more inelastic.E) total revenue will decrease.

200. If Pacific Power and Light increased its rates 10 percent and experienced only a 2 percent reduction in the demand for power, the demand would beA) elastic.B) prestige.C) common.D) horizontal.E) inelastic.

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