Principles Final
Name: ______________________________________
1. All of the following are true about marketing EXCEPT:
a. Marketing is a broader activity than advertising.
b. Marketing stresses the importance of delivering genuine benefits in the offerings of
products, services, and ideas.
c. Marketing persuades people to buy the “wrong” things.
d. When an organization engages in marketing, all stakeholders should benefit.
e. Marketing is a broader activity than personal selling.
2. In marketing, the idea of exchange refers to
a. the negotiation phase between the manufacturer and the seller.
b. the financial remuneration (monetary payment) for a product or service.
c. the trade of things of value between buyer and seller so that each is better off after the
trade.
d. the bartering of products and services between non-governmental organizations or
individuals.
e. the practice of swapping products and services for other products and services rather than
for money.
3. A factor that might doom a product in the marketplace is referred to as a(n) __________.
a. albatross
b. land mine
c. pit fall
d. showstopper
e. wild card
4. A target market refers to
a. people who could purchase a product regardless of who ultimately uses it.
b. one or more specific groups of potential consumers toward which an organization directs its
marketing program.
c. former customers who now use competitors’ products.
d. the cluster of benefits that an organization focuses on to satisfy consumers’ needs.
e. people with both the desire and the ability to buy a specific offering.
5. Environmental scanning refers to
a. assessing any possible negative impact a firm’s activities might have on the local ecology.
b. continually acquiring information on events occurring outside the organization to identify
and interpret potential trends.
c. setting up a regular schedule to assess the performance of different divisions within a firm.
d. initiating an internal talent search to identify employees who can think “outside the box” to
generate solutions to marketing problems caused by changes in the marketing environment.
e. requiring all employees to spend time outside the office to avoid the “ivory tower”
syndrome.
6. By 2015, which racial or ethnic group will have the greatest economic impact in the U.S. in
terms of its buying power?
a. Asian Americans
b. Hispanics
c. African Americans
d. American Indian and other native populations
e. Indian immigrants (from India)
7. Culture refers to the
a. moral and ethical beliefs of a family passed down from generation to generation.
b. set of values, ideas, and attitudes that are learned and shared among the members of a
group.
c. pastimes associated with the fine arts, such as ballet, music, and theater.
d. standard or pattern of behaviors that is typical or expected of a group.
e. description of a population according to selected characteristics such as age, gender,
ethnicity, income, and occupation.
8. Oil prices have an impact on transportation costs for many types of products. Should oil
prices change, the price consumers pay for products often is adjusted accordingly. Changing oil
prices would be an example of a(n) __________ force.
a. social
b. economic
c. technological
d. competitive
e. regulatory
9. Emily had an excellent year as a salesperson in 2011, earning $97,000. She paid $17,000 for
“necessities” such as mortgage, food, and clothing. Her state and federal income taxes totaled
$24,000. What was her disposable income?
a. $56,000
b. $73,000
c. $80,000
d. $114,000
e. There is not enough data provided to calculate her discretionary income.
10. Coupons is a frequently used marketing tactic for which form of competition?
a. pure competition
b. cross-market competition
c. an oligopoly
d. a monopoly
e. monopolistic competition
11. The first major federal legislation passed to forbid actual monopolies or attempts to
monopolize any part of trade or commerce in the United States was the
a. Lanham Act.
b. Federal Trade Commission Act.
c. Robinson-Patman Act.
d. Sherman Antitrust Act.
e. Clayton Act.
12. The five stages a buyer passes through in making choices about which product and service to
buy is called the _________.
a. information decision process
b. purchase decision process
c. alternative evaluation process
d. postpurchase behavior process
e. problem recognition process
13. The Ford Escape uses hybrid fuel technology to deliver more power, convenience, prestige,
and fuel economy than non-hybrid cars. The attributes listed for the Ford Escape are those that
consumers may consider when assessing the car. If they do, these attributes would be
considered
a. hot buttons.
b. informational alternatives.
c. evaluative criteria.
d. buying-decision opportunities.
e. consumer attributes.
14. The feeling of postpurchase psychological tension or anxiety consumers may experience
when faced with two or more highly attractive alternatives is referred to as
a. angst.
b. the temporal state.
c. the dissociative state.
d. selective perception.
e. cognitive dissonance.
15. The personal, social, and economic significance of the purchase to the consumer, which is
known as the level of __________, may cause him or her to skip or minimize one or more stages
in the consumer purchase decision process.
a. aspiration
b. cognitive dissonance
c. motivation
d. situational influences
e. involvement
16. Which list below presents the hierarchy of needs in its correct order, beginning with the
lowest level need and continuing to the highest level need?
a. personal, social, physiological, psychological, and safety
b. physiological, safety, social, personal, and self-actualization
c. safety, physiological, safety, self-actualization, and personal
d. self-actualization, social, safety, physiological, and personal
e. safety, personal, self-actualization, physiological, and social
17. Demographics refer to
a. the description of a population according to its values or cultural beliefs.
b. an objective measurement of a person’s likelihood to purchase a product or service.
c. the psychological profile of prospective consumers.
d. the density of a population in a geographic area.
e. the description of a population according to selected characteristics such as age, gender,
ethnicity, income, and occupation.
18. Which of the following has currently affects the baby boomer generation in a significant
way?
a. They are beginning to have children.
b. They are getting their high school and college educations.
c. They are currently retiring or nearing retirement.
d. They are just being born.
e. They are beginning their primary school educations.
19. Generation Y is sometimes referred to as
a. echo-boomers.
b. baby boomers.
c. baby busters.
d. baby aughts.
e. Generation 25.
20. The practice of shielding one or more sectors of a country’s economy from foreign
competition through the use of tariffs or quotas is referred to as
a. domestic imperialism.
b. protectionism.
c. blocked competition.
d. import taxation.
e. trade restriction.
21. In terms of the global marketplace, there are three primary types of companies:
international firms, __________ firms, and transnational firms.
a. large-scale
b. conglomerate
c. intercontinental
d. cosmopolitan
e. multinational
22. Which of the following statements about bribery is most accurate?
a. Bribes, kickbacks, and payoffs offered to entice someone to commit an illegal or improper
act are deemed corrupt in some cultures but not in others.
b. The world’s major exporting nations have agreed to treat bribery of foreign government
officials as a violation of trade agreements.
c. Bribes paid to foreign companies is in some cases a tax-deductible expense in the U.S.
d. It is a crime for U.S. corporations to bribe an official of a foreign government or political
party unless pre-approved by the Federal Trade Commission.
e. It is illegal for a U.S. corporation to bribe an official of a foreign government or political party
to obtain or retain business in a foreign country.
23. The process of defining a marketing problem and opportunity, systematically collecting and
analyzing information, and recommending actions is referred to as __________.
a. marketing enquiry
b. strategic intelligence
c. data mining
d. marketing tactics
e. marketing research
24. The fourth step of the marketing research approach is to __________.
a. develop findings
b. define the problem
c. take marketing actions
d. develop the research plan
e. collect relevant information
25. Observing people and asking them questions are the two principal ways to obtain
a. external secondary data.
b. internal secondary data.
c. primary data.
d. experimental independent variables.
e. nonprobability data.
26. A basic test of the usefulness of the market segmentation process is whether it leads to
tangible marketing actions that can
a. increase sales and profitability.
b. stand up to legal scrutiny.
c. be socially responsible.
d. create sustainable demand.
e. create product differentiation.
27. A market-product grid is a framework to relate the __________ to products offered or
potential marketing actions by an organization.
a. market segments of potential buyers
b. marketing objectives of potential products
c. total anticipated revenue
d. total anticipated profit
e. market share of the closest competitor
28. All of the following are criteria used for forming market segments EXCEPT:
a. difference of needs of buyers among segments.
b. potential for increased profit.
c. cost of reaching the segment.
d. potential of a marketing action to reach a segment.
e. simplicity and cost of assigning potential buyers to segments.
29. A product that has tangible attributes that a consumer’s five senses can perceive is referred
to as a(n)
a. service.
b. product concept.
c. good.
d. new idea.
e. artifact.
30. Products that usually last over many uses, such as cars and appliances, are referred to as
a. endurable goods.
b. nondisposable goods.
c. imperishable goods.
d. reliable products.
e. durable goods.
31. In marketing, an idea is
a. a thought that leads to a product or action.
b. an inspiration that evolved from market research.
c. an observation about a series of events.
d. a concept explaining the behavior of an individual or group.
e. an observation about an individual or group and how they use a service or product.
32. Which of the following would most likely be considered a consumer product?
a. bricks
b. cotton fiber
c. printing press
d. mattress
e. mainframe computer
33. Items for which the consumer compares several alternatives on several criteria such as price,
quality, or style are referred to as __________.
a. specialty products
b. selective products
c. shopping products
d. prestige products
e. convenience products
34. With respect to promotion, which of the following strategies would most likely be used for
unsought products?
a. offering consumer and trade sales promotions
b. establishing the uniqueness and status of the brand
c. generating awareness
d. differentiating the brand from competitive brands
e. stressing price and availability in advertising
35. The four I’s of services consist of
a. intangibility, inconsistency, inseparability, and innovation.
b. intangibility, inventory, inflexibility, and impression.
c. intangibility, inconsistency, inseparability, and inventory.
d. intangibility, inventory, innovation, and impression.
e. intangibility, inconsistency, innovation, and impression.
36. New chewing gum flavors for its Orbit Mist brand like Raspberry Lemon Dew and Crisp Mint
Waterfall helped Wrigley’s add to its sales. These new flavors are which type of innovation?
a. continuous innovation
b. dynamically continuous innovation
c. discontinuous innovation
d. insignificant innovation
e. disruptive innovation
37. The Federal Trade Commission (FTC) considers a product “new” only
a. for a period of one year after it enters regular distribution.
b. if it is functionally different from a competitor’s product.
c. until a new and improved version of the same product is produced.
d. for a period of six months after it enters regular distribution.
e. for a period of seventeen years at which time patent rights are returned to the public
domain.
38. A concept that describes the stages a product goes through in the marketplace—
introduction, growth, maturity, and decline—is referred to as the __________.
a. retail life cycle
b. product life cycle
c. marketing mix
d. product growth cycle
e. diffusion of product innovation
39. The desire for a product class rather than for a specific brand is called __________ demand.
a. selective
b. primary
c. derived
d. generic
e. secondary
40. During the introduction stage of the product life cycle, a(n) __________ pricing strategy may
be used. This pricing strategy charges a high initial price to recoup the costs of product
development.
a. penetration
b. cost-plus
c. target ROI
d. skimming
e. above-market
41. In which stage of the product life cycle do marginal competitors begin to leave the market?
a. introduction
b. growth
c. decline
d. maturity
e. harvest
42. Barter is the practice of exchanging products and services for other products and services
rather than for ___________.
a. value
b. ideas
c. promises
d. tariffs
e. money
43. To increase value, marketers may __________, decrease price, or do both.
a. decrease benefits
b. increase benefits
c. increase price
d. increase advertising
e. do nothing and let the perceived value of the item increase as it matures in the life cycle
44. Which of the following illustrates movement along the demand curve?
a. Prices remain the same, but there is a significant increase in demand.
b. Prices remain the same, but there is a significant decrease in demand.
c. As the price is raised, the quantity demanded increases, assuming all else stays the same.
d. As the price is lowered, the quantity demanded increases, assuming all else stays the same.
e. Movement along the curve indicates that some significant event has taken place outside the
organization that has affected demand.
45. In a snack vending machine, consumers can choose one of up to of 20 choices. These snacks
are
a. an ideal example of unitary demand.
b. likely to have a price elasticity equal to 1.
c. more likely to be price elastic.
d. likely to have a price elasticity less than 1.
e. more likely to be price inelastic.
46. Any intermediary with legal authority to act on behalf of the manufacturer is referred to as a
__________.
a. dealer
b. agent
c. retailer
d. wholesaler
e. distributor
47. A wholesaler refers to
a. independent firms or individuals whose principal function is to bring buyers and sellers
together.
b. any intermediary who takes ownership of a manufacturer’s products or services and then
finds multiple buyers for those products or services.
c. an intermediary who sells to other intermediaries, usually to retailers in consumer markets.
d. an intermediary who sells to consumers.
e. a manufacturing “matchmaker” who actively seeks out potential consumers and brings
them to retailers.
48. When marketing channel members are engaged in gathering, sorting, and dispersing
products, they are performing __________ functions.
a. logistical
b. merchandising
c. facilitating
d. implementation
e. transactional
49. Jacob has developed a lawn care service that will revolutionize the lawn care industry.
However, Jacob has limited operating capital and yet he still wants a wide distribution of his new
product. Which of the following options would be the best choice for Jacob?
a. He should develop an administered vertical marketing system.
b. He should establish a corporate vertical marketing system.
c. He should open up branch offices around the country to provide the exposure he needs.
d. He should establish a wholesaler-sponsored voluntary chain.
e. He should establish a service-sponsored retail franchise system.
50. The promotional mix includes advertising, __________, sales promotion, public relations,
and direct marketing.
a. publicity
b. personal selling
c. merchandising
d. branding
e. people
51. Integrated marketing communications (IMC) programs coordinate a variety of promotion
alternatives to provide
a. a promotional channel.
b. a communications message.
c. a consistent message across audiences.
d. a media mix useful to all types of companies.
e. a marketing matrix.
52. In the communication process, printing mistakes that affect the meaning of a newspaper
advertisement, or using words or pictures that fail to communicate the message clearly, are
referred to as
a. noise.
b. clutter.
c. feedback.
d. distortions.
e. annoyances
53. Prestige pricing refers to
a. charging different prices to different buyers for goods of like grade and quality.
b. setting a low initial price on a new product to appeal immediately to the mass market oddeven pricing.
c. setting a market price for a product or product class based on a subjective feel for the
competitors’ price or market price.
d. setting a high price so that quality- or status-conscious consumers will be attracted to the
product and buy it.
e. setting a price that is dictated by tradition, a standardized channel of distribution, or other
competitive factors.
54. Odd-even pricing is based on
a. retailers’ perceptions of price.
b. customers’ perceptions of price.
c. wholesalers’ markups.
d. manufacturers’ perceptions of price.
e. government regulators’ perceptions of price.
55. Setting a price that is dictated by tradition, a standardized channel of distribution, or other
competitive factors is referred to as __________.
a. cost-plus pricing
b. customary pricing
c. standard markup pricing
d. loss leader pricing
e. target profit pricing
56. Advertising refers to
a. any nonpersonal, indirectly paid presentation of an organization, service, or product.
b. a short-term inducement of value offered to arouse interest in buying a product or service.
c. methods used to identify a target market for a particular product or service.
d. any paid form of nonpersonal communication about an organization, product, service, or
idea by an identified sponsor.
e. any unpaid form of personal presentation of products and services.
57. Which of the following is an inherent strength of publicity?
a. it can receive immediate feedback
b. it can provide the target audience with complex information
c. it can prepare messages quickly
d. it is an efficient means for reaching large numbers of people
e. it is often the most credible source in the consumer’s mind
58. Which of the following weaknesses is associated with sales promotions?
a. high absolute costs
b. messages differ between the sales promotion tools
c. difficult to get media cooperation
d. can easily lead to promotion wars
e. its effectiveness diminishes when used continuously
59. Many prescription drugs such as Lipitor have national TV advertising campaigns to
encourage patients to learn more about the drugs and ask for them by name from their doctors.
The manufacturers of these drugs are using a(n) __________ promotional strategy.
a. intense
b. pull
c. push
d. inertia
e. exclusive
60. In the hierarchy of effects, interest refers to
a. the consumer’s ability to recognize and remember the product or brand name.
b. the consumer’s appraisal of the product or brand on important attributes.
c. an increase in the consumer’s desire to learn about some of the features of the product or
brand.
d. a favorable experience on the first trial, resulting in the consumer’s repeated purchase and
use of the product or brand.
e. the consumer’s first actual purchase and use of the product or brand.
61. Advertisements designed to build goodwill or an image for an organization rather than
promote a specific product or service are referred to as __________ advertisements.
a. product
b. public service
c. institutional
d. reminder
e. repositioning
62. The type of appeal used to suggest to the consumer that he or she can avoid some negative
experience through the purchase and use of a product or service, a change in behavior, or a
reduction in the use of a product is referred to as a(n) _________.
a. authoritarian appeal
b. coercive appeal
c. family appeal
d. guilt appeal
e. fear appeal
63. One of the most common measures in advertising is cost per thousand impressions (CPM).
The CPM is calculated as follows:
a. CPM = Advertising cost ($) ÷ Impressions generated (in 100s).
b. CPM = Total revenue ($) ÷ Impressions generated (in 1,000s).
c. CPM = Total profit ($) ÷ Impressions generated (in 1,000s).
d. CPM = Advertising cost ($) ÷ Impressions generated (in 1,000s).
e. CPM = Advertising cost ($) ÷ Impressions generated (in 1,000,000s).
64. One advantage of using billboards as an advertising medium is
a. it is environmentally friendly.
b. it has universal appeal.
c. it is particularly suited to national campaigns.
d. it has good reach and frequency.
e. it is especially suited for persuasive advertisements.
65. Sales promotions that require participants to submit some kind of entry form but are purely
games of chance requiring no analytical or creative effort by the consumer are referred to as
a. premiums.
b. rebates.
c. deals.
d. contests
e. sweepstakes.
66. A sales promotion prominently displayed in a store aisle is called a(n) __________ display.
a. seasonal
b. automated
c. interactive
d. point-of-purchase
e. product sampling
67. Virtually every occupation that involves customer contact has an element of personal selling
in it. The Bureau of Labor Statistics reports that almost __________ people are employed in
sales positions in the U.S.
a. 5 million
b. 10 million
c. 14 million
d. 18 million
e. 24 million
68. The PRIMARY way in which relationship selling creates customer value is by
a. assigning a single sales representative to a single customer.
b. learning the customer’s needs to maintain a long-term relationship of trust and respect.
c. guaranteeing fair and equitable prices for each client regardless of the size of the purchase.
d. providing cumulative discounts based on customer loyalty and the length of the customer
relationship.
e. guaranteeing fair and equitable sales practices for each customer regardless of the
frequency of the purchase.
69. If the salesperson’s objective is to “search for and qualify potential customers,” what is the
name of this stage of the personnel selling process?
a. presentation
b. approach
c. prospecting
d. follow-up
e. preapproach
70. At which stage of the personal selling process would a salesperson obtain a purchase
commitment from the prospect?
a. approach
b. presentation
c. closing
d. follow-up
e. sale
71. What is the “marketing concept?”
72. What does the 80/20 rule tell us about customers and products?
73. Taxes are a type of price. Draw a revenue curve for government revenue based on tax
rates.
74. In what two areas of marketing is a marketer’s personality very important in determining
whether they will be happy at their jobs?
75. What is the definition of “information” used in marketing research?
76. What is the primary purpose of advertising?
77. What is the “gentle rain” concept?
78. Name a product that is not sold by using segmentation.
79. According to marketing theory, what is the product of all businesses?
80. Who do marketers work for?