MARKETING I FINAL EXAM REVIEW 1. Selena approaches a customer who is looking at a display of premium dog food. Which approach would usually be MOST effective in generating a sale? a. "How are you doing today?" b. "How is your son, Mrs. Jones?" c. "This food is the one that most veterinarians recommend." d. "What breed of dog do you own?" 2. Thomas recommends that Mr. Lee purchase a case and a tripod to go along with the new video camera he has decided on. This service to the customer is known as: a. handling objections b. presenting the product c. reassurance and follow-up d. suggestion selling 3. If a salesperson does not know the customer's price range, he/she should\: a. begin by showing a medium-priced product b. select a line of products in various price ranges c. start with the least expensive product and work down d. start with the most expensive product and work down 4. If the item requested by the customer is not available, a good salesperson will clarify the customer's needs and attempt to satisfy those needs with another product. This is: a. closing the sale b. product demonstration c. product substitution d. suggestion selling 5. Which question would be MOST helpful in determining a customer's needs? a. "I assume you do not wish to spend a great deal of money, is that correct?" b. "Do you have a coupon?" c. "For what purpose will you be using the camera?" d. "Will this be cash or charge?" 6. Which method of determining needs involves looking for nonverbal cues such as hand motions, facial expressions, and eye movements? a. analyzing b. listening c. observing d. questioning 7. Alyssa follows up with each customer two months after purchase to ensure the customer is still enjoying the product. This is which step of the sale? a. approach the customer b. build relationship c. close the sale d. determine needs 8. A Dillard's customer requested a Fossil watch the store did not have in stock. The salesperson suggested a Seiko instead. Which method of handling objections is this? a. boomerang b. demonstration c. substitution d. third party 9. A salesperson tells a customer, "If you love that sweater, we are offering three for only $45." This is an example of: a. cross selling b. gift with purchase c. order fulfillment d. upselling 10. Generally speaking, when there is a wide variety of products available, a salesperson should first show the customer: a. higher priced items b. lower priced items c. medium priced items d. the most expensive item 11. Gabby, a waitress at Carraba's, recommends a bottle of wine that would compliment her customer's pasta dish. This is an example of: a. approaching the customer b. overcoming objections c. presenting the product d. suggestion selling 12. The purpose of CRM is to: a. account for customers needs b. manage customer information to maximize loyalty c. offer a system or calling, responding, and managing customers d. provide customers with 24-hour service 13. During which step of the sale should Lee determine why a customer is hesitant to buy? a. approaching the customer b. determining needs c. handling objections d. presenting the product 14. Who, what, when, why, and how are used when\: a. listening to the customer b. monitoring the customer c. observing the customer d. questioning the customer 15. Sally must observe, listen, and question customers in order to\: a. approach customers b. build relationships c. determine a customer's needs d. present products to a customer 16. A legitimate reason a customer has for not making a purchase is a/n: a. excuse b. objection c. problem d. reason 17. Recommending larger quantities of merchandise at a lower price is\: a. cross selling b. down selling c. upselling d. variable selling 18. Order processing, departure, and order fulfillment are\: a. after-sales activities b. before-sales activities c. continuing sales activities d. suggestion selling activities 19. CRM stands for: a. client referral maintenance b. customer relationship management c. customer retention manual d. customer returns manuscript 20. What is a product benefit that a salesperson might point out to a customer who wants to buy a computer? a. Monitor has a non-glare screen b. Pre-installed software saves money c. Print capability is optional d. Models are available in many colors 21. Josh wants to know more about the benefits of his new iPad. What about the iPad does he want to know? a. What is the warranty? b. What is it? c. What is the price? d. What's in it for me? 22. When a business publicly pledges to provide all of its customers with quick, courteous service, what is it doing? a. Making a brand promise b. Developing a campaign platform c. Stating industry policies d. Establishing product position 23. What is an example of an employee reinforcing a firm's image through his/her job performance? a. A customer waits on the telephone for several minutes while Matt confirms shipping information b. Susan advises her customer that the sofa is only available by special order. c. Jack politely asks if his customer would like a beverage while s/he waits for car service d. Angela, a human resources manager, prepares the firm's employee newsletter every month 24. By what will the emphasis put on each phase of the selling process vary most significantly? a. State and local laws b. Economic climate c. Product and client d. Geographic area 25. What should the salesperson do when s/he is helping a customer and another customer enters the selling area? a. Apologize to the first customer for helping the second customer b. Leave the first customer to help the second customer c. Acknowledge the second customer as soon as possible d. Ignore the second customer until finished with the first customer 26. If you feel you are asking too many questions but have not determined the customer's need or want, what can you do to vary your approach? a. Use questioning statements b. Wait for the customer to ask questions c. Ask questions more slowly d. Speed up the pace of your questions 27. On what does the speed of asking customers questions depend? a. Type of product that is being sold b. Number of other customers waiting c. Amount of time left before the business closes d. Pace of the customer's responses to your questions 28. What should a salesperson explain to a customer when recommending a substitute item? a. Buying motives b. Exchange policies c. Comparable features d. Fringe benefits 29. Judy sold customers substitute computers for the iPad. What should she explain to the customers about the substitute computers? a. Buying motives b. Exchange policies c. Comparable features d. Fringe benefits 30. A small computer business does not stock the computer printer that a customer has requested. What should the sales representative do? a. Take the customer's telephone number and call if the business decides to stock the printer b. Offer the customer free ink cartridges if a computer is purchased c. Tell the customer to try another business or competitor d. Offer to call the printer's manufacturer to check availability and delivery dates 31. Shari wants to make sure that she knows which customers' orders she is taking on the telephone, which one of the first steps in processing incoming telephone orders would help? a. Checking for availability b. Explaining pricing policy c. Describing each item d. Obtaining customer's name 32. What is usually an important step in processing a customer's telephone order? a. Asking personal questions b. Calculating gross profit c. Checking product availability d. Ending the call quickly 33. A 589-pound shipment is sent by motor freight at a rate of $11.56 per 100 pounds. What are the shipping charges? a. $68.09 b. $67.08 c. $66.08 d. $69.09 34. A customer purchased dining room furniture that retails for $750.00 at 33% off. The sales tax rate is 5%, and delivery is $25. What is the total cost of the purchase? a. $527.50 b. $553.88 c. $527.63 d. $552.63 35. Nordstrom’s Department Store focuses all of its efforts on satisfying the needs and wants of its customers. Nordstrom’s can be described as operating on which concept? a. Customer b. Marketing c. Sales d. Service 36. All the activities necessary to get a product from the manufacturer to the consumer defines\: a. Management b. Marketing c. Planning d. Quality 37. The marketing concept states that\: a. All marketing efforts should be directed at satisfying customer’s wants and needs. b. Assets minus liabilities equals profit. c. Pricing and distribution of products should be approved by management first. d. The owner and managers should make all decisions. 38. The group of consumers that a business desires to have as customers are the\: a. Industry standards b. Marketing activities c. Mass market d. Target market 39. Most Disney DVDs are sold to families with children under the age of 12. This represents Disney’s\: a. Industrial group. b. Intangible market c. Marketing activities d. Target market. 40. Businesses that continually review their internal strengths and weaknesses and their external a. SWOT analysis b. ERA study c. GOP evaluation d. EPA review 41. Which is an example of a product being sold directly to the user for ultimate consumption\: a. person sells flowers on the side of the road b. perfume maker sells perfume to a store to sell to its customers c. grocer sells powdered sugar to a bakery for its cakes d. car dealership sells a van to a plumber to use in his business 42. Which of the following is an example of a product being sold to an organization for use in producing other goods\: a. retailer sells office furniture to an advertising firm b. retailer sells a sewing machine to a professional seamstress c. teenager mows his neighbor's lawn for $20 d. distributor sells hundreds of comics to a comic-book store 43. A salesperson researches his client and tailors the sales presentation to the specific client. Which characteristic of a successful salesperson does this represent\: a. customer knowledge b. product knowledge c. persistence and patience d. personal appearance 44. What kind of customer would make the following statement: "I just don't know which of these my girlfriend would like best. I had better come back at another time." a. Disagreeable b. Suspicious c. Slow/Methodical d. Dishonest 45. Which of the following would be that most likely cause of customer complaints? a. Institutional ads b. Product quality c. Extended hours d. Price reductions 46. SUV vehicles, Suburban and TrailBlazer are products in a ____________________ from Chevrolet a. product life cycle b. product item c. product line d. product mix 47. Rolls-Royce, known for their extremely expensive and high quality automobiles introduces an affordable model for the upper middle class. This is an example of\: a. consistency b. excluding markets c. trading up d. trading down 48. Wendy's offers a Jr. Bacon Cheeseburger, 1/4 lb, 1/2 lbBaconator and Double Stack within their burger line. Each burger is a _____________ within the line a. product mix b. product life cycle c. product item d. product line 49. Red Bull's association with extreme sports is considered\: a. positioning b. trading up c. trading down d. expansion 50. M&M's introduces M&M Premiums which are higher quality and more expensive. This is an example of: a. contracting b. trading up c. trading down d. excluding markets 51. Why would a company use a narrow product mix? a. greater variety b. to promote one-stop shopping c. cost effective d. competitive advantage 52. Lakeview Manufacturing produces canned tuna for consumers and pets. Some of the pet products were labeled incorrectly as consumer products. What action should Lakeview Manufacturing take? a. product liability b. product recall c. guarantee d. warranty 53. Harrison Stroller company manufactures baby stroller. The new model had plastic musical toys on the front bar. By the middle of the first year there were 50 reports of infant injuries. What legal action will Harrison Stroller Company have to face? a. consumer protection b. product deletion c. product liability d. consumer product safety act 54. What is a purpose of warranties and guarantee? a. to increase customer anxiety about purchases b. to decrease feedback from customers c. to protect the producer and the seller d. to avoid a customer-oriented focus for the business 55. Teri purchased a new car and expects for the entertainment system to work smoothly. Which warranty is Teri expecting to be fulfilled? a. express b. full c. limited d. implied 56. How does the use of grades and standards affect the buying and selling process? a. it enables customers to buy without having to inspect each product b. it provides product information on unsafe products c. it enables businesses to set high prices d. it enables salespeople to suggest products without having to determine customer needs 57. Five years after a new product has been introduced, sales begin to level off because customers are purchasing the ocmpetitor's brand. What strategy would be most appropriate to use in this situation? a. Take the product off the market. b. Do nothing; fluctuations in sales are common. c. Modify the product to renew customer interest. d. Triple the advertising budget for the product. 58. Why does a company need to know what stage of the product life cycle its products are in? a. To prevent imitators from entering the market b. To find new uses for the product c. To predict the length of the life cycle d. To adapt its marketing strategies 59. Why might profits sometimes decline for the company that first introduced the product during the growth stage of a product's life cycle? a. Because sales decline in the growth stage b. Because marketing strategies are adjusted c. Because competitors have entered the market d. Because production is more efficient 60. What is an example of an ethical issue that a product/service manager might face? a. Use of color on the label b. Use of environmentally friendly packaging c. Use of packaging as a means of promotion d. Use of nutrition information on a food label 61. Product/service management plays an important role in marketing because it affects a business's strategy to create a certain impression of a product in the minds of customers. This strategy is known as a. project management b. licensing c. idea screening d. positioning 62. Why must care be taken in eliminating weak products? a. To prevent damaging a company's image b. To reduce a company's market share c. To obtain higher product costs d. To increase the number of productrelated complaints 63. Which of the following is a stage of a product's life cycle? a. birth b. adolescence c. maturity d. death 64. The Keebler Elves, Ronald McDonald, and Mr. Peanut are examples of a. product brands b. trade names c. trade characters d. private brands 65. Which of the following is an example of a trade name: a. Ford Mustang b. Diet Coke c. Ford d. 501 Jeans 66. Whenever possible, an effective brand name should always be a. short and memorable b. multiple syllables and flashy c. related to other brands d. unrelated to product features 67. Which of the following is primary reason that businesses use brands: a. To identify their products b. To change high prices c. To increase materialism d. To reduce expenses 68. The actions a business take with a brand in order to accomplish its goals are referred to as a. multinational marketing b. market share c. brand positioning d. brand strategies 69. A company advertises that its products are durable lightweight, and come in a variety of colors. What strategy is the company using to position its product? a. Price and quality b. Features and benefits c. Unique characteristics d. Relationship to other products 70. A company that makes ink pens claims no other pen on the market uses a type of ink that changes color when exposed to light. The company is positioning its product according to what strategy? a. Price and quality b. Features and benefits c. Unique characteristics d. Relation to other products in a line 71. Company XYZ sells condensed soups and promotes them by saying, "Great taste, great price." Company XYZ is positioning its product according to what strategy? a. Relationship to other products b. Features and benefits c. Unique characteristics d. Price and quality 72. Can pricing affect a business's image? a. Yes; a business with low prices may have a discount image. b. Yes; a business with low prices will have a prestigious image. c. No; pricing does not affect a business's image. d. No; pricing affects only selling and customer decisions. 73. Which of the following elements of the marketing mix involves decisions about shipping, handling, and storing items\: a. Promotion b. Pricing c. Product d. Place 74. Companies A, B, and C sell similar products. Together, they recently decided to sell their products for the same price. In what unethical activity is the business engaging? a. Bait b. Price fixing c. Loss-Leader pricing d. Gray markets 75. A business charges a small company a higher price for a product than it charges a large company for the same product. What does this represent? a. Price discrimination b. Controlled pricing c. Price competition d. Regulated pricing 76. What would be the most appropriate pricing strategy for a business in a small town where unemployment has skyrocketed and the economy is in a downturn? a. Below-cost pricing b. High-level pricing c. Odd-cents pricing d. Flexible pricing 77. What costs do businesses usually include in the price of their products? a. Regulations b. Inflation c. Transportation d. Orientation 78. Which situation hinders a business's ability to provide quality customer service? a. Supply channel has high flexibility levels. b. Vendor consistently has back orders. c. Post-sale support is responsive. d. Distribution patterns are operational. 79. What do marketers want to achieve by determining distribution intensity a. Ideal market exposure b. Complete market coverage c. Perfect market balance d. Total market saturation 80. What legal example is represented by a manufacturer selling its products through a toll-free system, a company web site, and several retailers? a. Restricted sales territories b. Exclusive dealing c. Tying agreements d. Dual distribution 81. Which of the following is an example of distribution goods through a gray-market strategy? a. An Asian-based company established an internet website to sell its cleaning products directly to European consumers. b. A franchise obtains a license to sell a well-recognized brand of tires through her/his dealership. c. A pharmacy sells brand medications to customers in foreign countries for a lower price than they can get domestically. d. A local jewelry store has exclusive distribution rights to sell expensive wristwatches for a Swiss manufacturer. 82. Which of the following is an aspect of channel management that impacts customers service? a. Advertising b. Taxes c. Protectionism d. Timeliness 83. What is one action that customer service can take facilitate order processing? a. Negotiate aggressively b. Oversee assembly c. Communicate Effectively d. Monitor inventory 84. In which situation might exclusive distribution be considered a legal arrangement? a. A business prevents a competitor's product from entering the market. b. A franchisor requires a franchisee to sell only the franchisor's products. c. A distributor requires a customer to buy all of its products to obtain one product. d. A manufacturer assigns an exclusive territory to restrict competition. 85. Which of the following is an example of an industrial user : a. A parent buying a picture frame for his/her desk b. A hairstylist buy new scissors to perform haircuts c. A family buying a new home computer d. A teacher buying a book to read on vacation 86. Which of the following intermediaries never actually own the products it promotes and sells : a. Retailers b. Wholesalers c. Agent d. Industrial Users 87. What is an objective of institutional advertising? a. To support personal selling activities b. To demonstrate the organization's role in community affairs c. To introduce new goods or services d. To create customer interest in the company's goods or services 88. In which stage of a product's life cycle do promotional activities focus on differences between competing products? a. Introductory b. Growth c. Declining d. Introduction 89. What form of promotion is generally emphasized for complex, technical products sold to industrial users? a. Personal selling b. Sales promotion c. Publicity d. Advertising 90. Why are there specific guidelines for advertising to children? a. Research indicated that juvenile offenders watched more advertising on television than the average child b. Children are impressionable, and the wrong kinds of advertising can affect their development c. Parents mounted a campaign against advertisers because their children demanded products they saw advertised d. Children revealed, in focus groups, that while they like watching ads, it doesn't make them behave differently 91. Which of the following is an example of institutional promotion: a. infomercial for jewelry b. A company's donation of blankets to the homeless c. Advertisement for a local mattress superstore d. Pitch from a jet-ski salesperson 92. Which of the following is an example of a product promotion\: a. Coupon for the purchase of Ritz crackers b. Press conference announcing a major corporate merger c. Philip Morris' youth smoking prevention program 93. 94. 95. 96. 97. d. Recruiting event for a large technology firm Which of the following is a specific criticism of institutional promotion a. It may take money away from product promotion b. It's easily measurable c. It's inexpensive d. It does not stir up unnecessary debates Which of the following is a specific criticism of product promotion\: a. It stirs up unnecessary debates b. It does not add value to the product c. It's easily measurable d. It's inexpensive What is a benefit to business of positive wordof-mouth communication? a. increased product mix b. decreased advertising costs c. increased sales d. decreased operating expense What is an example of a successful directresponse advertisement? a. a person orders an exercise machine by telephone after viewing an infomercial b. a movie theater shows several previews of new films and video releases c. a popular tourist attraction places a billboard in a remote location d. a local grocer distributes discount coupons to local businesses Ben recently purchased a cellular telephone. The manufacturer provided a form and a special code with the telephone's packaging. Ben completed the form, copied his sales receipt, and mailed these items back to the manufacturer along with the part of the packaging that contained the special code. Within six weeks, Ben received a $50 check from the telephone manufacturer. What type of sales-promotion technique was used? a. warranty b. coupon c. sweepstakes d. rebate 98. What communication channels is a corporation's public-relations department most likely to use to maintain positive relationships with shareholders? a. press releases, online social networks and print advertisements b. newsletters, annual reports and the company's web site c. news conferences, consumer blogs and employee manuals d. policy manuals, commercials and sponsorships 99. Which characteristic of useful marketing information is represented by the statement "The benefits of using the information should be greater than the expense of gathering the data used to generate this information"? a. timeliness b. accessibility c. relevancy d. cost-effectiveness 100. Why do marketers continue to gather information? a. today's consumers are easy to please b. the marketing environment is constantly changing c. marketers are decreasing their geographic scope d. competition in general has decreased 101. What is an important ethical issue involved with the collection and use of marketing information? a. adaptability b. standardization c. confidentiality d. commercialization 102. Which situation is an example of SUGGING? ****Definition at bottom of page a. a salesperson offers a customer the opportunity to try an expensive product free of charge b. a telemarketer asks a customer if s/he knows anyone who would want to buy a certain product c. a marketer tells a customer that s/he is conducting research, and then begins a sales pitch d. a business promotes a product by sending samples to its customers without authorization 103. How could a business use marketing research data it has gathered about the average age, educational levels, and spending patterns of area consumers? a. To identify problems within the business b. To create a mailing list for the business c. To develop a profile of the typical customer d. To establish an appropriate operating budget 104. What is a benefit of having managers and researchers "on the same page" about the marketing-research problem? a. It allows the two parties to avoid establishing research objectives b. It keeps the business from wasting resources c. It ensures favorable results from the study d. It improves the business's market share 105. Which of the following is essential to all marketing research\: a. Accuracy b. Frequency c. Primary data d. Secondary data 106. Why is it important for marketing research to be objective? a. So that researchers can guide consumers' responses b. So that researchers can express their own opinions c. So that the data gathered are not influenced by researchers' opinions d. So that the data gathered can be analyzed using statistical software 107. Why do businesses use exploratory research? a. To predict future outcomes b. To define the reason for the research c. To try out different approaches to see what the results would be d. To obtain specific data related to the business's situation 108. Which of the following is an example of an experimental study: a. Test marketing b. Customer diaries c. A focus group d. Computer cookies 109. An example of an internal source of marketing-research data is a. census figures. b. unemployment statistics. c. industry sales. d. financial statements. 110. What research option usually answers questions related to "how many"? a. intelligence b. quantitative c. syndicated d. economic 111. What type of research is intended to obtain detailed data about customers' opinions and experiences? a. sampling b. qualitative c. observation d. forecasting 112. What is the most appropriate datacollection method to use when a business wants to determine how its employees interact with customers? a. experiment b. observation c. employee survey d. telephone interview 113. What is an example of a marketingresearch method that is used to collect primary data? a. customer survey b. census data c. trade-journal article d. external reports 114. What does a business need to do to build a clientele? a. know customers personally b. change the product mix frequently c. provide friendly, courteous service d. provide a wide variety of services 115. "Toni is always patient and courteous. She seems to have a sincere interest in our satisfaction." What key factor inbuilding a clientele is Toni exhibiting? a. customer confidentiality b. service attitude c. persistence d. credibility 116. What effect does building a clientele have on selling costs? a. increases them because salespeople earn less in bonuses and commissions b. reduces them because making a repeat sale costs less than making an initial sale c. reduces them because salespeople earn more in bonuses and commissions d. increases them because making an initial sale costs more than making a repeat sale 117. Which situation demonstrates ethical behavior in selling? a. Tom tells Mrs. Smith she can save $100 by purchasing a vacuum cleaner without the carpet attachment, because whe has hardwood floors. b. Mrs. Thompson tells John she cannot give him a raise, so he should claim additional expenses on his monthly expense account to make up for it. c. Ron tells the customer she can save an additional $25 if she makes her check out to him instead of the company. d. Mayhew's raises prices on its clothing prior to a 25%-off sale so customers can feel good about the amount of money they are saving 118. What type of laws protectconsumers from unethical selling practices, such as highpressure sales techniques? a. limited-probationary b. cooling-off c. conditional-sales d. buyer-withdrawal 119. What is the most important component of an effective business letter? a. opening b. message c. address d. heading 120. What is one reason why an employee might write a business letter? a. to apply for personal credit b. to accept a social invitation c. to communicate with friends d. to sell goods and services 121. What is an example of a topic that would be addressed in an informational message? a. request for payment on a past-due account b. date and time of appointment with customer c. charitable appeal for a corporate donation d. invitation to speak at a national conference 122. What is a reason why a businessperson might write a <b>letter of inquiry</b>? a. to forward a document b. to acknowledge an order c. to request an appointment d. to complain about a product 123. When writing a letter of inquiry, when should you identify the purpose of your letter? a. once the recipient has agreed to meet with you b. after describing your company c. at the beginning of the letter d. after identifying what prompted your inquiry (such as an advertisement) 124. KwackyKwackers needs a new package design for its crackers. What marketing professional would be responsible for creating the new package? a. marketing research b. product management c. advertising d. channel management 125. What is at the center of all marketing activities? a. math b. technological know-how c. purchasing d. communication SUGGING- his behavior occurs when a product marketer falsely pretends to be a market researcher conducting a survey, when in reality they are simply trying to sell the product in question.