Practice Mid Term Exam
7. Many people make the mistake of thinking that customer relationship management refers solely to
A. people.
C. processes.
B. strategies.
D. technology.
CR:016/3.09
8. Which of the following is a benefit of customer relationship management:
A. The ability to double the business's profits
B. A work force that does not commit errors
C. A decrease in customer advocacy
D. The opportunity to create targeted marketing campaigns
CR:016/3.09
9. One action that an ethical business can take to help build the long-term trust and loyalty of its customers is to
A. sell its customer list to third parties without permission.
B. maintain detailed information about customers' transactions.
C. implement a comprehensive customer privacy policy.
D. send daily opt-in e-mail messages to customers.
CR:017/3.09
10. Which of the following situations is an unethical action associated with customer relationship management:
A. Allowing customers the ability to opt-out of the e-mail updates that the business provides
B. Implementing a frequent-buyers program for the business's customers
C. Collecting customer information with authorization to develop a customer profile
D. Selling customer lists without the customers' consent to third parties
CR:017/3.09
11. Which of the following types of customer relationship management software would be most appropriate for a company that is looking for a more
efficient way to track leads, prospects, and customers:
A. Sales force automation technology
C. Personalization technology
B. Campaign management software
D. Matching engine technology
CR:018/3.09
12. An important aspect of using technology in customer relationship management involves
A. allowing employees to have complete access to customer information.
B. posting customer information on the business's web site.
C. updating customer information in the computer database.
D. providing customers with excessive product information.
CR:018/3.09
13. Which of the following is a characteristic of taxes:
A. Restricted to businesses
B. Levied by governments
C.
D.
Encouraged by consumers
Applied only to tangibles
EC:072/2.04
14. The government decides to pass a new law requiring certain standards of air cleanliness be met. They will levy a tax on production of
automobiles that produce gas emissions above a certain limit. However, they provide tax incentives to automobile manufacturers for research
and development of new cars with lower gas emissions. This is an example of
A. direct controls.
C. hidden costs.
B. transfer payments.
D. rent seeking.
EC:072/2.04
15. During economic fluctuations, taxes serve the purpose of ___________ the economy.
A. destroying
C. expanding
B. reducing
D. stabilizing
EC:072/2.04
16. What should an employee do if a coworker is spreading malicious gossip about another worker?
A. Refuse to pass on the information
C. Ask for supporting evidence
B. Deny hearing the rumor
D. Check out the accuracy of the message
EI:038/3.02
17. Which of the following is confidential information that would be unethical for an employee to provide to others without permission from the
business:
A. Dates of an upcoming special sale
C. Well-publicized expansion plans
B. Posting of available positions
D. List of employees who will be promoted
EI:038/3.02
FI:579/2.02
24. The price of raw materials used in manufacturing a product was double what had been projected for the year. Which of the following could the
business determine by analyzing its financial information:
A. Supply and demand
C. Variances
B. Equipment costs
D. Errors in forecasting
FI:579/2.02
6622 Marketing Management, Summer 2011 Version 2
Marketing Applications Course Guide
© 2012, MBA Research and Curriculum Center®
Practice Mid Term Exam
25. Which of the following is a way that businesses can use financial information:
A. To identify trends
C. To conduct focus groups
B. To select selling strategies
D. To create an economic system
FI:579/2.02
26. Why does a company need a flow of money into the business?
A. To borrow
B. To exist
C.
D.
To sell
To invest
C.
D.
fees.
sales.
FI:091/2.03
27. Established businesses receive their primary flow of money from
A. loans.
B. credit.
FI:091/2.03
28. What is often one of the largest sources of money flowing out of a business?
A. Payroll and benefits
C. Profit and loss
B. Accounts receivable
D. Goods and services
FI:091/2.03
29. Which of the following is an example of current liabilities that a business should include in its balance sheet:
A. Owner's equity
C. Employees' salaries
B. Accounts receivable
D. Mortgage loans
FI:093/2.03
30. Which of the following are the categories that businesses use to summarize information on their balance sheets:
A. Cash, budget, and credit
C. Liabilities, equipment, and sales
B. Equity, budget, and cash
D. Assets, liabilities, and equity
FI:093/2.03
31. The reason why a business prepares a balance sheet is to determine its
A. estimated annual income.
C. current financial situation.
B. average cash flow.
D. future sales goal.
FI:093/2.03
32. What category of an income statement indicates total profit?
A. Gross profit
B. Bottom line
C.
D.
Cash flow
Net profit
FI:094/2.03
33. By comparing the categories in an income statement, a business will be able to determine if it is
A. earning too much income.
C. spending too much on expenses.
B. paying too little for supplies.
D. acquiring goods for too low a price.
FI:094/2.03
34. One reason why a business compares its income statement figures with those of competitors is to find out how it is doing in relation to
A. industry standards.
C. economic forecasts.
B. research projections.
D. marketing procedures.
FI:094/2.03
35. Businesses use budgets to estimate how they will
A. spend their money.
B. file their taxes.
C.
D.
calculate their assets.
depreciate their assets.
FI:106/3.06
36. By regularly reviewing their budgets, businesses are able to determine if they are
A. offering loans to employees.
C. following their financial plans.
B. paying interest to customers.
D. receiving discounts from vendors.
FI:106/3.06
37. Why do businesses use budgets to estimate income?
A. To increase losses
B. To increase shrinkage
C.
D.
To plan purchases
To develop services
FI:106/3.06
44. Customers are more likely to spend a lot of time evaluating several options before buying a product when
A. the product is perishable.
C. the need is immediate.
B. the product is expensive.
D. brand insistence is a factor.
MK:014/1.03
45. When customers have low involvement with a product, and there is little difference among brands, what type of buying behavior are they
exhibiting?
A. Habitual
C. Complex
B. Variety
D. Basic
MK:014/1.03
6622 Marketing Management, Summer 2011 Version 2
Marketing Applications Course Guide
© 2012, MBA Research and Curriculum Center®
Practice Mid Term Exam
46. Complex buying behavior is most likely involved when the customer is purchasing
A. a car.
C. socks.
B. a meal.
D. gasoline.
MK:014/1.03
47. If a business lowers the price of a product for the purpose of taking business away from competitors, the result of this action often is a(n)
A. decrease in cost.
C. gain in market share.
B. increase in profit.
D. reduction in staff.
MK:019/1.03
48. Morgan Health Supply Company wants to expand its product line this year. It uses its budget surplus to invest in new products rather than to
remodel its offices. This is an example of which positive action companies should take:
A. Provide excellent customer service.
B. Align strategies and activities with goals.
C. Demonstrate corporate responsibility.
D. Utilize touch points to reinforce company image.
MK:019/1.03
49. Technological advances can help companies provide more customer service with fewer employees, but why must the companies be careful?
A. Technology cannot provide 24-7 service.
B. Computers and telephones break down regularly.
C. Current employees may go on strike.
D. Customers may feel they are losing their human touch.
MK:019/1.03
50. The financial component of a marketing plan helps a business to compare the projected costs of implementing the plan with the expected
A. benefits.
C. losses.
B. expenses.
D. strategies.
MP:007/1.04
51. What type of information do businesses include in their marketing plans?
A. Billing methods
C. Payroll systems
B. Pricing strategies
D. Accounting procedures
MP:007/1.04
52. One of the main reasons for developing a marketing plan is to identify the strategies necessary to achieve the marketing
A. functions.
C. mix.
B. objectives.
D. share.
MP:007/1.04
53. When conducting an external environmental analysis, businesses often focus on
A. previous demand.
C. marketing goals.
B. industry growth.
D. financial costs.
MP:008/1.04
54. An international soft-drink company that wants to add bottled spring water to its product mix has determined there are four major brands that
currently hold the majority of the market share for that product. The strengths and weaknesses of each potential competitor have been
examined. This is an example of a(n)
A. action plan.
C. situation analysis.
B. marketing strategy.
D. purpose and mission.
MP:008/1.04
55. If you were trying to convince someone to use quantitative sales forecasting, which of the following factors would you stress:
A. Variety of opinions
C. Minimal cost
B. Factual basis
D. Ease with which findings are understood
MP:013/1.04
56. Which of the following is an example of an internal change that could affect a business's sales forecast:
A. A direct competitor is planning a new promotional campaign.
B. The birth rate increased following the Iraqi war.
C. A new product line is to be offered by the business.
D. The economy is struggling with a major drop in stock market prices.
MP:013/1.04
57. A manufacturer expects product sales to increase during the coming year. How does this information affect product production?
A. Production should decrease.
C. Production should remain stable.
B. Production should increase.
D. Production should not be affected.
MP:013/1.04
67. Real market opportunity occurs when
A. a good or service can be produced efficiently.
B. entrepreneurs brainstorm ideas.
C. supply exceeds demand.
D. an identified want exists.
PM:127/3.01
6622 Marketing Management, Summer 2011 Version 2
Marketing Applications Course Guide
© 2012, MBA Research and Curriculum Center®
Practice Mid Term Exam
68. Market opportunity is often affected by
A. location.
B. timing.
C.
D.
rewards.
methodology.
PM:127/3.01
69. Six Thinking Hats is a creative-thinking technique that stimulates idea generation by
A. assigning each group member a different job.
C. providing positive feedback.
B. playing the devil's advocate.
D. categorizing information.
PM:127/3.01
70. Which of the following is a source that businesses often consider when generating product ideas:
A. Design costs
C. Customer complaints
B. Test results
D. Promotional plans
PM:128/3.01
71. To generate innovative product ideas, a business often
A. evaluates traits.
B. interprets laws.
C.
D.
monitors trends.
measures feedback.
PM:128/3.01
72. What is the advantage to a business of having its employees generate product ideas as a group?
A. More participants provide a variety of perspectives.
B. It is easier to develop and implement a product concept.
C. Group members tend to reach consensus quickly.
D. Screening activities can be distributed among several people.
PM:128/3.01
73. A characteristic of product bundling is that the price of the bundle usually is
A. adjusted based on the type of customers who purchase the bundle.
B. intended to be the same as the prices set by competitors.
C. high to reflect the quality and status of each product.
D. lower than the combined price of the products sold separately.
PM:041/3.10
74. Which of the following is an example of product bundling:
A. Business selling computer, printer, and scanner as a unit
B. Garden shop discounting prices of seasonal merchandise
C. Theme park charging admission and selling ride tickets
D. Lumber company selling wood chips as small-animal bedding
PM:041/3.10
75. A primary reason for some businesses to bundle products is to
A. obtain referrals.
B. increase sales quotas.
C.
D.
control expenses.
encourage long-term use.
PM:041/3.10
76. Which of the following is a primary factor that a business considers when positioning its corporate brand:
A. Form utility
C. Target market
B. Employees' expectations
D. Promotional budget
PM:207/3.11
77. Which of the following is an example of a purchase experience touchpoint:
A. Customer satisfaction surveys
C. Direct sales
B. Loyalty programs
D. Warranty programs
PM:207/3.11
78. One of the major differences between the decisions made in organizational buying and the decisions made in consumer buying is that
organizational buying decisions are
A. made by members of senior management.
C. made by influential people.
B. more frequently made by groups.
D. always voted on by supervisors.
SE:112/3.08
79. What is a characteristic of organizational buying behavior?
A. Quick decision making
B. Low levels of demand fluctuation
C.
D.
Multiple buying influences
Limited buyer-seller contact
SE:112/3.08
80. Which of the following has more effect on the types of services that consumers buy than on the types of services that organizations buy:
A. Authority figure
C. Limited availability
B. Peer pressure
D. Reasonable price
SE:112/3.08
6622 Marketing Management, Summer 2011 Version 2
Marketing Applications Course Guide
© 2012, MBA Research and Curriculum Center®