Principles of Business
Obj. 3.0 Review
1. Which government agency is responsible for ensuring that businesses do not use unfair and deceptive
practices such as “bait and switch” in their marketing activities.
Federal Trade Commission (FTC)
2. When one person tells another about a business or a product, either positively or negatively, they are
using which type of advertising?
Word of mouth
3. What are the four main types of marketing research studies?
Surveys, focus groups, observations, experiments
4. This type of retailer often has many services such as gift wrapping, salons, and eye care centers to
enhance the shopping experience for customers.
Department stores
5. A company’s unique identification for a product or service.
Brand name
6. What is the last step in the consumer decision-making process?
To determine the effectiveness of the decision
7. What are the elements of the marketing mix?
Product, price, distribution, and promotion
8. How do consumers provide feedback about a promotional message?
Make a purchase or inquire about products and services
9. Which organization puts their “stamp of approval” on appliances and other electronics in regards to
their safety?
Underwriters Laboratories
10. What are the two main types of promotion?
Customized and mass promotion
11. What is the main function or purpose of advertising?
To sell products or services
12. Which type of retailer provides a limited selection of popular products, usually at higher prices, and
has longer store hours.
Convenience store
13. What must occur between a sender and receiver in order for effective communication to exist?
An understanding of the information
14. What type of shopping is done through automation?
Vending machines
15. What are the four types of mass promotion?
Advertisements, publicity, public relations, sales promotion
16. Which function of marketing involves the creation of a marketing budget?
Finance
17. What are the two main types of print media sources?
Newspapers and magazines
18. An offer to repair, replace, or provide a refund for a defective product is known as what?
Warranty
19. Consumers can provide feedback to this non-governmental organization about the service they
received at a particular business.
Better Business Bureau (BBB)
20. The main difference between a product and service.
Tangible vs. intangible
21. These factors influence the pricing of products and services.
Supply and demand, uniqueness, convenience, and complexity
22. Wal-Mart and Target are examples of this type of retailer.
Discount stores
23. What is the formula to calculate selling price?
Product Costs + Operating Expenses + Profit
24. The amount charged of the selling price to cover the operating expenses and profit usually stated as
a percent.
Markup
25. What are the non-store shopping methods?
Telephone, computer, television, fax, or door-to-door
26. What are the four aspects that affect the channels of distribution?
Quantity, assortment, location, and timing
27. Businesses most often promote their products and services through the use of what?
Advertisements
28. What are the two types of channels of distribution?
Direct and indirect
29. The protection and security of a product is provided by which part of the product?
Packaging
30. Which function of marketing involves finding the best ways for customers to locate and obtain
products or services?
Distribution
31. Costco and BJ’s would be examples of which type of retailer?
Warehouse club
32. Many businesses provide this to give assistance and information to consumers.
Customer Service