Unit 1 Test
Name:__________________
Date:______________
Period:__________________
General Directions: Be sure to write your name on the test. Read instructions to each section
carefully. When you are done, place your test in the exam folder on the teacher’s desk.
I. (2 points each) True or False: Write the words true or false in the blank next to the number.
___1. Decisions about the payment options offered to customers are part of the pricing function
of marketing.
___2. Purchasing means buying products for a business's operation.
___3. According to the text, the skills and knowledge that are important for a marketing career
include an ability to work well with others and an understanding of manufacturing
techniques.
___4. The costs associated with marketing cause an increase in the cost of products, particularly
when a company manufactures a large quantity of product.
___5. Selling camping gear through catalogs mailed to Sierra Club members and other outdoorspeople is an example of place utility.
II. Multiple Choice: (2 points each) Read each question carefully and choose the response
which best answers the question. Write your response in the blanks provided to the left of the
question.
___1. What term is used to describe the process of selling a product in the marketplace?
a. marketing
b. utility
c. pricing
d. exchange
___2. Big Ed's 24-Hour Diner recently began accepting VISA and Mastercard because Ed
wanted to increase his product's_________.
a. information utility.
b. time utility.
c. form utility.
d. possession utility.
___3. The owner of a miniature golf business provides her customers with
a_________________.
a. service.
b. promotion.
c. good.
d. exchange.
___4. The owners of the Totally Outrageous Shoe Store decided to rent store space next to a
music store where teenagers frequently shop. What did the owners' decision add to their
product?
a. promotion
b. place utility
c. time utility
d. improved distribution
___5. At the end of her one-week stay at the Hyatt Regency Hotel in Waikiki, Elena completed
a form rating the hotel's service, food, and accommodations. Elena's form is an example of
a. information utility.
b. promotion. c. product planning. d. marketing research.
Unit 1 Test
Name:__________________
Date:______________
Period:__________________
III. (3 points each) Match the best answer to each phrase. Place the letter of the best answer in
the blank next to the question.
____1. Buying goods and services for a
a. distribution
business's operation.
____2. Transporting and storing products.
b. product planning
____3. Deciding how much to charge for
goods and services
c. financing
____4. Determining the payment options to
be offered to a business's information
customers.
d. purchasing
____5. Selecting products for sale to
consumers.
e. marketing
____6. Providing customers with goods and
services they want to buy.
f. risk management
____7. Preventing or reducing business loss.
g. pricing
____8. Informing consumers about a
business's operation.
h. marketing management
____9. Developing, promoting, and
distributing products.
i. promotion
j. selling
____10. Gathering and analyzing facts about
products and consumers' wants and needs.
IV. (3 points each) Fill in the blank with the best answer.
1. During the last three months of the year, a grocery store stocks its shelves with plenty of
canned pumpkin in order to increase the pumpkin's _______________ utility.
2. Of the five economic utilities involved with all products, only _______________ utility is
NOT directly related to marketing.
3. The employees of a home-improvement warehouse are expert craftspeople who enjoy
giving customers advice about do-it-yourself projects. The employees' advice increases the
______________________ utility of their goods.
4. Changing old glass bottles into beautiful new sculptures is an example of
____________________ utility.
Unit 1 Test
Name:__________________
Date:______________
Period:__________________
5. Obtaining the money needed to start and operate a business is a marketing function known
as _______________________ .
6. The four basic marketing decisions are price, place, __________________, and promotion.
7. A combination of geographic, demographic, and psychographic data about a group of
people can be used to create a customer ________________________.
V. Short Answer: (5 points each) In the space provided answer the following question.
Write a two-to-three-paragraph answer to one of the following questions.
1. Explain how marketing helps to lower the prices of products.
2. Explain how marketing can affect the introduction and improvement of products.