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