Test 1028
MARKETING CLUSTER EXAM
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1. One business promising to do something for another business in return for receiving compensation is an
example of a
A. partnership.
C. contract.
B. benefit.
D. guarantee.
2. Which of the following is an activity covered by environmental regulations that affects businesses:
A. Counseling substance abusers
C. Adapting to worker safety
B. Identifying natural resources
D. Disposing of hazardous waste
3. Retailers perform an important channel activity by negotiating with consumers on issues such as
A. delivery.
C. promotion.
B. risk-taking.
D. manufacturing.
4. Major brands of soft drinks are produced and distributed through local and regional bottling companies
that then sell the soft drinks to retail supermarkets where consumers can purchase them. The channel of
distribution these soft-drink companies use is
A. indirect.
C. retail.
B. wholesale.
D. direct.
5. Which of the following is a technological tool that connects businesses with their suppliers and
customers:
A. Firewall
C. Filter
B. Extranet
D. Intranet
6. A business taking back its used products and recycling or properly disposing of those products is an
example of the ethical practice of __________ distribution.
A. closed
C. joint
B. internal
D. reverse
7. As a result of effectively coordinating distribution with other marketing activities, a business is often able
to provide
A. free delivery.
C. good customer service.
B. attractive product displays.
D. flexible credit terms.
8. Which of the following is a form of verbal communication between individuals:
A. Facial expression
C. Listening
B. Body posture
D. Eye contact
9. Betty Clark asks Dave Jones to handle her calls while she is away from her desk. If Betty's telephone
rings, Dave should answer it by saying
A. "May I help you?"
C. "Hello."
B. "Dave Jones' desk."
D. "Betty Clark's desk."
10. Which of the following steps should be completed first when preparing a written communication:
A. Editing the communication to make sure it is clear
B. Determining the major purpose of the communication
C. Organizing the information to be presented in the communication
D. Selecting the details that should be included in the communication
11. When writing routine informational messages, businesspeople should present the information in a(n)
__________ way.
A. technical
C. persuasive
B. straightforward
D. attention-getting
Copyright © 2010 by MBA Research and Curriculum Center®, Columbus, Ohio
Test 1028
MARKETING CLUSTER EXAM
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12. What should you include in a persuasive message to support your statements?
A. Personal opinion
C. Simple language
B. Educated guess
D. Logical evidence
13. The owner of Bob's Bargains has prepared a one-page report to inform the staff about current sales
volume. This is an example of a(n) __________ report.
A. analytical
C. activity
B. complex
D. informal
14. What type of customer would say, "Your vegetables are never fresh"?
A. Leave-me-alone
C. Complaining
B. Suspicious
D. Slow/Methodical
15. The goal of determining a sampling plan is to identify an accurate segment of the
A. mass audience.
C. target population.
B. business community.
D. general market.
16. The amount of a product that producers are willing to make is most affected by
A. place utility.
C. consumer demand.
B. product utility.
D. producer demand.
17. What is the business activity that provides information as to whether a business can afford to hire more
employees?
A. Financial analysis
C. Marketing
B. Strategic management
D. Production
18. All of the potential losses to which a business is exposed are called
A. business risks.
C. embezzlement.
B. property damage.
D. shipment losses.
19. Which of the following is not a reason that regulatory laws are passed:
A. To control what businesses are allowed to do
B. To increase sales for businesses
C. To require businesses to meet certain standards
D. To prohibit certain kinds of business activities
20. The three categories of membership in a craft/trade union are
A. novice, journeyman, and owner.
C. apprentice, journeyman, and owner.
B. novice, laborer, and supervisor.
D. apprentice, journeyman, and master.
21. Which of the following is a reason why many corporations locate their factories and businesses in foreign
countries:
A. Low labor costs in their home countries
C. Lack of cooperative trade agreements
B. Unfavorable monetary policies
D. Reduced transportation costs
22. Which of the following accurately reflects the relationship between traditional intelligence and emotional
intelligence:
A. Only traditional intelligence can be measured accurately with a written test.
B. Emotional intelligence cannot be increased, but traditional intelligence can be.
C. Neither traditional nor emotional intelligence promote a person's career success.
D. A high level of traditional intelligence results in a high level of emotional intelligence.
23. Self-esteem is essential to one's well-being because it shows that you
A. can maintain a fearful, unsure, dependent nature.
B. are empowered to brag about accomplishments.
C. can assist in becoming apologetic and defensive.
D. understand your own needs.
Test 1028
MARKETING CLUSTER EXAM
24. Your interest and enthusiasm can help to create a sense of __________ within your work group.
A. cooperation
C. security
B. disagreement
D. conflict
25. People who receive a great deal of negative feedback may develop
A. optimism.
C. depression.
B. enthusiasm.
D. self-importance.
26. Which of the following is a verbal technique for behaving in an assertive manner:
A. Maintaining appropriate eye contact
C. Planning exactly what you will say
B. Beginning conversations with other people
D. Asking questions about areas of confusion
27. When it comes to taking responsibility for something that goes wrong, an effective leader should
A. change his/her leadership style.
B. place blame for the problem on others.
C. require others to figure out a way to fix the problem.
D. work to prevent the problem from happening again.
28. Which of the following coaching characteristics means that you are willing to admit your mistakes:
A. Humility
C. Patience
B. Dependability
D. Approachability
29. Which of the following is a type of credit card that can be used to make purchases from a variety of
participating businesses:
A. Petroleum
C. Hotel
B. Retail
D. Bank
30. Emily has decided to use all of her savings to buy a new car instead of a used one. What are the
opportunity costs of that decision?
A. The money she saves by not having to constantly repair a used car
B. The reliability and luxury of a new car compared to a used one
C. The benefits she could have received by using the additional cost of a new car another way
D. The benefits she could have received by using public transportation instead
31. To make sure he develops a realistic personal budget, Marcel should always
A. verify his past credit rating.
C. track and record his expenses.
B. pay his bills on time.
D. consult with a bookkeeper.
32. Which of the following is an economic risk that a manager is likely to encounter in marketing:
A. Incompetence
C. Weather
B. Perishability
D. Competition
33. One way that many businesses use technology in accounting is to process
A. product warranties.
C. credit applications.
B. insurance policies.
D. risk factors.
34. Which of the following is an example of a situation in which a business might decide it needed to
decrease expenses after comparing the categories in its profit-and-loss statement:
A. Revenues are rising.
C. Cash flow is steady.
B. Salaries are lower.
D. Sales are the same.
35. Which of the following is a key component of managing working capital:
A. Financing
C. Capital budgeting
B. Cash conversion cycle
D. Capital structure
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MARKETING CLUSTER EXAM
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36. Labor-union negotiations are part of which HR management activity?
A. Compensation and benefits
C. Training and development
B. Employee relations
D. Staffing
37. One of the advantages of obtaining and using marketing information is because it helps business
managers to
A. prepare documents and reports.
C. train and direct employees.
B. predict and control risks.
D. review and understand regulations.
38. The Big Company has questioned customers about their needs for a specific product the company may
decide to produce. What kind of marketing information is this company collecting?
A. Economic
C. Primary
B. Secondary
D. Systematic
39. Which of the following is an important ethical issue involved with the collection and use of marketing
information:
A. Standardization
C. Adaptability
B. Confidentiality
D. Commercialization
40. Businesses can retrieve external marketing data by accessing
A. inventory management records.
C. accounts receivable summaries.
B. computer-generated sales reports.
D. web-based information services.
41. The Henry Smith Company wants to select a representative group of consumers to survey. What part of
marketing research is it doing?
A. Sampling
C. Analyzing
B. Observation
D. Experimentation
42. What research approach do businesses often use to test new product ideas?
A. Questioning
C. Recording
B. Technological
D. Experimental
43. When customers complain, what is the general rule that business personnel follow in order to assure that
customers receive fair and consistent treatment?
A. Customer complaint plan
C. Customer service plan
B. Store procedure
D. Store policy
44. A marketing manager is seeking information about the company's three biggest competitors. What is an
excellent source of information that may include such data as new products, sales and revenue goals,
changes in the organization, and current hiring needs?
A. Local newspaper
C. Competitors' web sites
B. Department of Commerce
D. Better Business Bureau
45. What do businesses often do with the marketing information they collect from consumer questionnaires?
A. Enter it into a computer for analysis
C. Arrange the names in alphabetical order
B. Assign a numeric value to the responses
D. Organize it according to the date received
46. Which of the following is an example of range:
A. Consumers buy between three and seven CDs per month.
B. Consumers buy an average of five CDs per month.
C. Most consumers buy four CDs per month.
D. Half of all consumers buy more than five CDs per month.
47. A good marketing-research brief provides background information about the company, describes the
problem at hand, and states the
A. researcher's mission statement.
C. research objectives.
B. financial needs.
D. report findings.
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MARKETING CLUSTER EXAM
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48. Which of the following is a possible weakness associated with a secondary-data source:
A. Reasonable purchase price
C. Inconsistent collection method
B. Recent industry approval
D. Internet accessibility
49. When researchers think it is necessary to find out how employees interact with customers, they might
decide that it is appropriate to use the __________ research method.
A. observation
C. personal
B. interview
D. experimental
50. Jordan just began his new job as a financial analyst. Processes and procedures at his new company are
a little bit different from the last place he worked, so his first week will be spent learning the ropes. This is
an example of which positive action companies should take:
A. Protect business's reputation
B. Use rational and emotional motivation to convince customers to buy
C. Provide proper training for employees
D. Communicate honestly within and outside business
51. Java Coffee House, located in the trendy Olde Towne area, advertises that it is an upscale place for
single, young professionals to meet. Java is targeting a market based on __________ segmentation.
A. geographic
C. behavioral
B. psychographic
D. demographic
52. Which of the following is a possible external threat that a business might identify as a result of conducting
a situational analysis during the marketing-planning process:
A. Downturn in the economy
C. Contract with a new supplier
B. Change in pricing structure
D. Decrease in operating expense
53. A manufacturer expects product sales to decrease during the coming year. How does this information
affect the production of goods?
A. Production should increase.
C. Production should decrease.
B. Production should remain the same.
D. Production should not be affected.
54. What do most businesses use to store information for future use?
A. CD-ROMs
C. Scanners
B. Display screens
D. Computer systems
55. Which of the following is an example of a type of information a business must manage:
A. Government spending
C. Employees' personal bills
B. Accounting records
D. Competitors' payrolls
56. One of the reasons that businesses destroy some of their records is because the records are
A. not required by law.
C. kept in storage.
B. several years old.
D. no longer needed.
57. Most businesses maintain records about what customers are buying and how much they are spending in
order to
A. offer quality service.
C. analyze the information.
B. plan an inventory count.
D. develop a quality environment.
58. Which of the following is an example of a current trend in business:
A. Developing market research
C. Protecting consumer privacy
B. Expanding economic growth
D. Promoting private enterprise
59. As a result of conducting an environmental scan, a business might find that the rate of unemployment is
slowly increasing, which is an example of a(n) __________ factor.
A. political
C. economic
B. geographic
D. cultural
Test 1028
MARKETING CLUSTER EXAM
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60. The most important reason why workplace accidents which do not result in injuries should be reported to
supervisors is because
A. this is required by state law.
C. the report prevents future liability.
B. the next accident could result in an injury.
D. this is an OSHA requirement.
61. Why is it important to define your project precisely?
A. So you can involve other people
B. So you can create something tangible
C. So you can achieve your objectives
D. So you can spend less money
62. An important benefit of project management is that it allows the manager to
A. identify and correct problems.
C. make all of the decisions.
B. have power and authority.
D. work with interesting people.
63. One of the advantages to an auto-parts store of placing a standing order with a vendor for a certain
quantity of a product to be delivered once a week is that the store might be able to
A. negotiate a long-term price.
C. attract more customers.
B. keep track of the inventory.
D. obtain attractive displays.
64. Abbra-Kadabra Company examined its expenses for electricity for the past six months and found the
average electric bill to be $2,300 per month, with a high of $2,375 and a low of $2,250 during that period.
This type of an expense would be classified as a __________ cost.
A. variable
C. semivariable
B. fixed
D. nonoperating
65. The importance to the business of employees' regularly performing housekeeping duties is to
A. keep employees occupied.
C. pass insurance inspections.
B. present a favorable business image.
D. reduce the need for maintenance.
66. Which of the following does not represent a guideline for proper business dress:
A. Clothing should present a harmonious appearance.
B. Clothing should be fashionable, not faddish.
C. It is best to wear "loud" colors in clothing.
D. Articles of clothing should be proportionate in size to one another.
67. What is likely to be the result if you fail to set goals?
A. You will waste a lot of time and effort.
B. You will have a high level of self-esteem.
C. You will focus your efforts in one direction.
D. You will be better able to measure your progress.
68. Laura has made a list of the things she most enjoys doing and the way she likes to spend her time. This
list will help Laura to
A. improve her study habits.
C. measure her work skills.
B. identify an appropriate career.
D. increase her level of ability.
69. Which of the following guidelines should be followed when writing any letter of application:
A. Provide a brief explanation of your qualifications for a job.
B. Submit a neatly typed photocopy to the employer.
C. Use humor to interest the reader in your qualifications.
D. Stress your educational achievements.
70. Kwacky Kwackers needs a new package design for its crackers. What marketing professional would be
responsible for creating the new package?
A. Advertising
C. Product management
B. Marketing research
D. Distribution/Warehousing
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MARKETING CLUSTER EXAM
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71. What technological advancement has allowed consumers to collect the most information for pricecomparison shopping?
A. Catalog
C. Internet
B. Newspaper
D. Telephone
72. Which of the following is an example of all of the local companies in the same business being involved in
the illegal activity of price fixing:
A. Selling one product below cost
B. Charging different customers different prices for the same product
C. Agreeing on the price of a certain product
D. Putting pressure on customers to buy an expensive product
73. Which of the following is a factor that often causes an increase in the selling price of goods and services:
A. Economic growth
C. Elastic demand
B. High unemployment
D. Abundant supply
74. Which of the following areas of product/service management is important in attracting customers and in
protecting products:
A. Idea generation
C. Labeling
B. Concept testing
D. Packaging
75. During which stage of a product life cycle do sales and profit usually increase even though competition is
intense?
A. Universal
C. Maturity
B. Introduction
D. Existing
76. Which of the following is an advantage to businesses that use computer databases to manage their
inventory:
A. Decreases order accuracy
C. Increases demand
B. Decreases product usage
D. Increases efficiency
77. "Your money back if not satisfied" is an example of a
A. warranty.
B. guarantee.
C. recourse.
D. strategy.
78. Franklin Juice Company produced and aired television commercials that stated that drinking its new
beverage daily would prevent the common cold and headaches. What federal agency would charge the
company for providing false, misleading, and deceptive advertising?
A. Consumer Product Safety Commission
C. Consumer Affairs Department
B. Food and Drug Administration
D. Federal Trade Commission
79. Why would a business remove or delete product items or lines from its product mix?
A. To avoid legal liabilities
C. To increase market risk
B. To offer customers complementary products D. To appeal to a new market
80. Which of the following situations is an example of the mixed product bundling strategy:
A. A manufacturer offers its distributors lower prices for a specific item that is purchased in large
quantities.
B. Cable television and Internet fees cost consumers less when the services are purchased
together rather than if they are purchased individually.
C. A supermarket chain gives its customers coupons and packaged samples of a new cereal
product it is now stocking.
D. Laundry detergent is boxed with a label stating that the customer is receiving twenty percent
more soap for the same price.
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MARKETING CLUSTER EXAM
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81. The way that a business positions its goods and services affects how its customers ____________ the
products.
A. outsource
C. use
B. perceive
D. trade
82. Which of the following is an example of a corporate brand:
A. Procter and Gamble
C. Charmin bath tissue
B. Tide detergent
D. Oil of Olay
83. Promotion benefits customers by making them
A. buy products they don't need.
B. less informed.
C. feel entertained.
D. more informed.
84. Which of the following is an example of a public-relations promotion:
A. Smithson's Bank promotes that it has added Saturday banking hours.
B. The American Beef Association encourages consumers to eat beef.
C. LensCrafters offers free sunglasses with the purchase of contacts.
D. Firestone promotes its efforts to exchange tires on Ford Explorers.
85. Which of the following would not be considered sales promotion:
A. Window display
C. Fashion show
B. Newspaper ad
D. Demonstration
86. Promotional messages that continuously portray senior citizens as sick, helpless people is an example of
an ethical issue related to
A. sexism.
C. stereotyping.
B. puffery.
D. fraud.
87. Which of the following technological tools has made it possible for a business to send personalized
promotional messages in a cost-efficient manner:
A. Electronic mail
C. Interactive banner
B. Encryption card
D. Exclusive kiosk
88. Word-of-mouth communication between satisfied customers and others that promotes a business is a
type of
A. advertising.
C. retailing.
B. marketing.
D. prospecting.
89. Sweepstakes and contests are examples of communications channels often used in
A. sales promotions.
C. publicity programs.
B. advertising campaigns.
D. media commercials.
90. If the headline of a print advertisement identifies a problem, then the copy that follows should provide
A. reactions.
C. examples.
B. descriptions.
D. solutions.
91. Which of the following is a public-relations activity that involves dealing with government officials:
A. Lobbying
C. Counseling
B. Advising
D. Writing
92. Participating in trade shows to communicate with target audiences often is an important part of a
business's
A. sponsorship strategy.
C. direct sales effort.
B. advertising campaign.
D. promotional program.
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MARKETING CLUSTER EXAM
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93. A manufacturer mails free cereal samples to consumers and provides businesses with colorful materials
for in-store displays of the product. This is an example of which of the following:
A. Coordination of promotional activities
C. Use of institutional advertising
B. Use of cooperative advertising
D. Selection of channels of distribution
94. Brittany knows her products inside and out. She knows all their features and is able to explain them in
terms of benefits for specific customers. Which characteristic of a successful salesperson does Brittany
display?
A. Product knowledge
C. Self-confidence
B. Self-motivation
D. Ethics
95. Jack has been the owner/operator of a suburban business for 20 years. Many of his customers have
done business with Jack since the beginning. This fact indicates that Jack has been successful in
A. selecting marketing strategies.
C. promoting his business.
B. offering good service.
D. building a clientele.
96. A high level of ethics will compel you to behave in a __________ way.
A. suspicious
C. truthful
B. law-abiding
D. questionable
97. Which of the following allows the Gateway Insurance Group to match its agents with policyholders by
aligning its agents with market potential:
A. Mapping software
C. Database software
B. Outbound telemarketing
D. Inbound telemarketing
98. "Fat-free" is stamped on the label of a bottle of salad dressing. This type of product information refers to
the product's
A. grade.
C. content.
B. size.
D. quality.
99. What is the best method for a salesperson to use in determining which features and benefits of a product
are important to individual customers?
A. Ask appropriate questions and listen to each customer
B. Distribute surveys to past buyers and evaluate their responses
C. Provide brochures and feature-benefit literature to prospects
D. Explain the product's hidden benefits and evaluate customer response
100. A plant manager or a department head would be an example of which level of management?
A. Middle
C. Top
B. Operating
D. Supervisory