BUSINESS MANAGEMENT: UNIT TEST
UNIT TEST 3
Understanding Principles of Marketing
Multiple Choice
1.
__________ is the ability of a product to satisfy a human want or need.
a.
Utility
b.
Exchange
c.
Value
d.
Differentiation
e.
Function
2.
Congressional hearings on the use of cell phones while driving are an example of ____________
factors in a company’s external environment.
a.
political/legal
b.
social/cultural
c.
technological
d.
economic
e.
competitive
3.
Decisions concerning wholesalers and retailers relate to distribution
a.
price.
b.
promotion.
c.
channels.
d.
advertising.
e.
production.
4.
Market segmentation is
a.
a marketing strategy that emphasizes long lasting relationships with customers.
b.
the process of dividing a market into categories of customer types.
c.
the study of consumer needs and wants, and the ways in which sellers can best meet
them.
d.
the process of collecting, storing, and retrieving data in electronic files.
e.
the process of fixing, adapting, and communicating the nature of the product itself.
5.
Which of the following types of variables describe populations and identify traits, such as age,
income, gender, and marital status?
a.
price
b.
product
c.
geographic
d.
psychographic
e.
demographic
6.
____________ is/are the market research technique that involves watching and recording
consumer behavior.
a.
Surveys
b.
Observation
c.
Focus groups
d.
Experimentation
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e.
Positioning
7.
In consumer behavior, ________ influences include the "way of living" that distinguishes one
large group and one ethnic group from another.
a.
psychological
b.
personal
c.
social
d.
cultural
e.
none of the above
8.
Businesses that buy goods to be converted into other products and goods, which are used up
during production are categorized as __________ markets.
a.
reseller
b.
industrial
c.
institutional
d.
government
e.
retail
9.
When the Getty Museum purchases cleaning supplies, they do so as a part of the ___________
market.
a.
reseller
b.
industrial
c.
institutional
d.
government
e.
retail
10.
When purchasing __________ goods, consumers will often compare brands and evaluate
alternatives in terms of style, performance, color, and price.
a.
convenience
b.
shopping
c.
specialty
d.
novelty
e.
pick-up
11.
A product __________ is a group of similar products intended for a group of similar buyers.
a.
line
b.
assortment
c.
mix
d.
shield
e.
range
12.
During the _________ stage of the product life cycle, marketers focus on making potential
consumers aware of the product and its benefits. Profits are non-existent or small.
a.
decline
b.
maturity
c.
development
d.
introduction
e.
growth
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BUSINESS MANAGEMENT: UNIT TEST
13.
In __________, an existing product is marketed globally, instead of just domestically.
a.
reintroduction
b.
product development
c.
product adaptation
d.
product extension
e.
product expansion
14.
Brand ___________ refers to the degree of brand awareness and loyalty.
a.
value
b.
equity
c.
prominence
d.
earnings
e.
incentive
15.
Pokemon and the Lion King action figures sold at various fast-food restaurants are examples of
_________ brands.
a.
international
b.
national
c.
public
d.
licensed
e.
private
16.
When a wholesaler or retailer develops a brand name and has the manufacturer place that name
on the product, that product name is a(n) _________ brand.
a.
international
b.
national
c.
public
d.
licensed
e.
private
17.
The amount added to a product’s cost in order to sell it at a target profit is called
a.
profit points.
b.
profit allowance.
c.
revenue margin.
d.
markup.
e.
profit-price point.
18.
Penetration pricing involves
a.
setting an initial low price to establish a new product in the market.
b.
setting a limited number of prices for certain categories of products.
c.
setting prices in uneven dollar amounts.
d.
taking advantage of the fact that consumers to do not always respond rationally to stated
prices.
e.
setting an initial high price to cover new product costs and generate a profit.
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BUSINESS MANAGEMENT: UNIT TEST
19.
Hyatt Hotels uses ___________ for frequent business users and large scale events, such as
conventions and trade shows.
a.
price fixing
b.
price discounting
c.
psychological pricing
d.
market pricing
e.
price lining
20.
A distribution channel is
a.
an intermediary who sells products to other businesses for resale to final consumers.
b.
an individual or firm that helps to distribute a product.
c.
a network of independent companies through which a product passes from producer to
end-user.
d.
the combination of distribution channels by which a firm gets its products to end-users.
e.
an intermediary who sells products directly to consumers.
21.
The most widely used channel of distribution for consumer goods is
a.
producer to consumer.
b.
producer to retailer to consumer.
c.
producer to wholesaler to retailer to consumer.
d.
producer to agent to wholesaler to retailer to consumer.
e.
producer to agent to retailer to consumer.
22.
A(n) __________ is a limited-function merchant wholesaler who receives customer orders,
negotiates with producers, takes title to goods, and arranges shipment to customers.
a.
catalog showroom
b.
merchant shipper
c.
drop shipper
d.
rack jobber
e.
agent
23.
__________ generate large sales volume by offering goods at substantial price reductions. In
recent years they have offered higher quality and a few department store services.
a.
Discount houses
b.
Warehouse clubs
c.
Factory outlets
d.
Off-price stores
e.
Catalog showrooms
24.
___________ is a distribution channel consisting of self-employed distributors who receive
commissions for selling products to customers and for recruiting new distributors.
a.
Direct selling
b.
Telemarketing
c.
Electronic distribution
d.
Multi-level marketing
e.
Interactive marketing
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BUSINESS MANAGEMENT: UNIT TEST
25.
__________ are used primarily to carry heavy, bulky items like cars, steel, and coal. They also
have the highest risk of loss or damage.
a.
Railroads
b.
Planes
c.
Pipelines
d.
Water carriers
e.
Trucks
26.
The combined use of several different transportation methods is called
a.
containerization.
b.
unitization.
c.
common carrier.
d.
freight forwarding.
e.
intermodal transportation.
27.
Through __________, goods are sealed in standardized heavy-duty containers and opened when
they reach their final destinations.
a.
containerization
b.
unitization
c.
common carrier
d.
freight forwarding
e.
intermodal transportation
28.
Which of the following would violate FCC cross-ownership regulations?
a.
Montrose Broadcasting owns newspapers in San Diego and San Francisco.
b.
Wine Tarner owns one newspaper and one television station in Omaha.
c.
Entertainment Systems owns a newspaper in Orlando and a radio station in Tampa.
d.
All of the above.
e.
None of the above.
29.
The two general values to be gained from any promotional activity are communicating
information and
a.
increasing customer loyalty.
b.
better public image.
c.
creating and controlling demand.
d.
increasing sales.
e.
creating more satisfying exchanges.
30.
When Hallmark Cards promotes Grandparents Day it is
a.
eliminating competition.
b.
positioning products.
c.
controlling sales volume.
d.
communicating information.
e.
reminding you about the product.
31.
When Pepsi advertises that it tastes better than Coke it is using a _______ advertising strategy.
a.
push
b.
persuasive
c.
comparative
d.
pull
e.
reminder
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BUSINESS MANAGEMENT: UNIT TEST
32.
The communications vehicle that is very selective about its audience, allows a more personalized
message, and whose response rate is very predictable is
a.
magazine.
b.
television.
c.
newspaper.
d.
radio.
e.
direct mail.
33.
Which of the following are route salespeople most likely to perform?
a.
order processing
b.
sales promotions
c.
creative selling
d.
missionary selling
e.
public relations
34.
___________ is the personal selling task in which salespeople promote their firms and products,
rather than trying to close sales.
a.
Order processing
b.
Sales promotions
c.
Creative selling
d.
Missionary selling
e.
Public relations
35.
__________ involves identifying potential customers, while _________ occurs when salespeople
determine whether prospects have the authority to buy and ability to pay.
a.
Qualifying, prospecting
b.
Approaching, qualifying
c.
Prospecting, qualifying
d.
Qualifying, approaching
e.
Approaching, prospecting
36.
Bill, a qualified prospect, is expressing concerns after hearing Terry’s sales presentation. Terry is
now at the _________ stage of the personal selling process.
a.
prospecting and qualifying
b.
presenting
c.
handling objections
d.
approaching
e.
demonstrating
37.
Direct-to-consumer marketing by drug companies is an example of __________ marketing.
a.
place
b.
product
c.
push
d.
pull
e.
position
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BUSINESS MANAGEMENT: UNIT TEST
True/False
38.
Frequent flier miles are an example of relationship marketing.
39.
Us and People magazines are an example of substitute products.
40.
Market segmentation is the process of dividing a market into categories of consumer types.
41.
Hard disk drives and flat screen monitors are examples of benefits.
42.
Among industrial products, expense items are materials and services that are typically consumed
within a year by firms producing other goods or supplying other services.
43.
Sales peak during the maturity phase of the product life cycle.
44.
Variable costs are unaffected by the quantity of a product produced or sold.
45.
Most industrial goods are distributed directly from the manufacturer to the user.
46.
Rack jobbers receive customer orders, negotiate with producers, take title to the goods, and
arrange for shipment.
47.
Direct response retailing involves face-to-face contact between buyer and seller.
48.
Personal selling and sales promotion are the most effective promotional strategies in the purchase
decision stage of the consumer buying process.
49.
The combination of newspapers, television, radio, and other advertising vehicles is called a firm’s
media mix.
50.
Telemarketing has lost favor as a method of personal selling because of low returns.
Short Answer
51.
What is a target market?
52.
What is a benefit?
53.
What is price lining?
54.
Identify three degrees of market coverage.
55.
List five sales promotion tools.
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BUSINESS MANAGEMENT: UNIT TEST
SOLUTIONS TO UNIT TEST 3
Understanding Principles of Marketing
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
Multiple Choice
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
a (page 280, easy)
a (page 281, moderate)
c (page 285, moderate)
b (page 286, moderate)
e (page 286, moderate)
b (page 291, easy)
d (page 293, moderate)
b (page 295, easy)
c (page 295, moderate)
b (page 310, moderate)
a (page 310, easy)
d (page 313, moderate)
d (page 314, easy)
b (page 316, easy)
d (page 317, moderate)
e (page 317, easy)
d (page 321, easy)
a (page 324, moderate)
b (page 325, moderate)
c (page 336, moderate)
c (page 337, moderate)
c (page 343, moderate)
a (page 346, moderate)
d (page 348, easy)
a (page 352, moderate)
e (page 353, moderate)
a (page 353, easy)
b (page 335, difficult)
e (page 364, moderate)
c (page 366, moderate)
c (page 367, moderate)
e (page 369, moderate)
a (page 377, moderate)
d (page 377, easy)
c (page 377, moderate)
c (page 378, moderate)
d (page 363, moderate)
True/False
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
True (page 281, moderate)
False (page 285, moderate)
True (page 286, moderate)
False (page 309, moderate)
True (page 310, easy)
True (page 313, easy)
False (page 322, easy)
True (page 339, easy)
False (page 343, easy)
False (page 347, moderate)
True (page 367, moderate)
True (page 373, easy)
False (page 375, moderate)
Short Answer
51.
A target market is a group of buyers who has similar wants and needs, and who can be expected
to show interest in the same products. (page 286, moderate)
52.
A benefit is the ability of a feature to satisfy buyer needs or wants. (page 309, moderate)
53.
Price lining is setting a limited number of prices for certain categories of products.
(page 324, moderate)
54.
Intensive, exclusive, and selective distribution. (page 341, moderate)
55.
Coupons, point-of-purchase displays, purchasing incentives (free samples and premiums), trade
shows, and contests and sweepstakes. (page 379, moderate)
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