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Principles of Marketing Multiple- Choice Questions

Marketing căn bản (Trường Đại học Kinh tế - Tài chính Thành phố Hồ Chí Minh)

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MULTIPLE-CHOICE QUESTIONS

1, The term marketing refers to:

a. new product concepts and improvements
b. selling
c. advertising and promotion activities
d. a philosophy that stresses customer satisfaction
e. planning sales campaigns
ANS: D

2, _____ is a key ingredient in the philosophy of marketing; it occurs when people give up something
in order to receive something that they would rather have.
a. Exchange
b. Synergy
c. Transformation
d. Leveraging
e. Reciprocity
ANS: A

3, The concept of exchange is important to marketing because:

a. if all the conditions for an exchange are in place, then the exchange will be completed
b. exchange provides money to marketers
c. marketing activities help to create exchange
d. marketing activities are a requirement for exchange to take place
e. money is the only medium of exchange for business marketers
ANS: C
Marketing activities help the exchange to take place, but marketing can occur without an exchange.

4, Which of the following is NOT a marketing management philosophy?

a. sales orientation
b. societal marketing orientation
c. market orientation
d. profitability orientation
e. production orientation
ANS: D

5, The _____ orientation assumes people will buy more if aggressive selling techniques are used.
a. market
b. sales
c. customer
d. production
e. exchange
ANS: B
The sales orientation assumes aggressive selling is what is needed to increase demand.

6, A company that has a market orientation and adheres to the marketing concept does NOT:
a. integrate all the activities of the firm to satisfy customer wants
b. focus on consumer needs and wants
c. differentiate the firm's products from its competitor's products
d. fuel sales growth through the application of aggressive sales techniques
e. concentrate on long-term goal achievement (such as profits and growth) for the firm
ANS: D

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Aggressive sales techniques are part of the sales orientation and are not needed if a company is meeting needs
and wants of its customers.

7, The statement, "Marketing should be introduced at the beginning rather than the end of the
production cycle and integrated into each phase of the business," is consistent with a(n) _____
orientation.
a. production
b. market
c. retail
d. sales
e. enterprise
ANS: B
Understanding the competitive arena and competitors' strengths and weaknesses is a critical component of
market orientation.

8, The marketing concept includes a goal orientation to remind managers that:

a. achieving long-term organizational goals is as important as satisfying customers
b. customers must be satisfied no matter what the long-term effect on the firm
c. the only reason for any business to exist is to make a profit
d. the objective is to find a target market that differs from that of the competition
e. functional integration of all departments is useful but not essential
ANS: A
The goal orientation refers to the company's goals, such as profit, growth, service, and survival.

9, An organization with a(n) _____ believes that it exists not only to satisfy customer wants and needs
and to meet organizational objectives but also to preserve or enhance individuals' and society's long-
term best interests.
a. sales orientation
b. market orientation
c. ethical business mission
d. focused target market strategy
e. societal orientation
ANS: E

10, Which of the following statements about the societal orientation is true?
a. Companies that protect the environment by using all-natural materials in their products
are showing a societal marketing orientation.
b. Marketers cannot deliver all benefits sought by customers because these benefits may not
be in the long-term best interests of the customers.
c. The societal marketing concept is an important refinement of the market concept.
d. Organizations have both a social and economic justification for their existence.
e. All of these statements about the societal orientation are true.
ANS: E

11, _____ is defined as the relationship between benefits and the sacrifice necessary to obtain those
benefits.
a. Opportunity cost
b. Marketing utility
c. Market quality
d. Satisfaction percentage
e. Customer value
ANS: E

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12, When customer expectations regarding product quality, service quality, and value-based price are
met or exceeded, _____ is created.
a. a value line
b. a quality rift
c. planning excellence
d. customer satisfaction
e. expectation satisfaction
ANS: D

13, What is the fundamental objective of most businesses?

a. employee empowerment, teamwork, and relationship marketing
b. satisfied stakeholders
c. low costs and high quality
d. customer loyalty and retention
e. survival, profits, and growth
ANS: E
The use of marketing allows businesses to achieve this objective.

14, Corporate social responsibility is defined as the:

a. belief that the legal system defines ethical behavior
b. development of inclusive codes of ethics
c. rules by which social rewards are attained
d. concern for social welfare by businesses
e. coordination of social programs for publicity purposes
ANS: D

15, Corporate social responsibility:

a. is mandated by federal law
b. requires companies to sacrifice economic performance for the sake of their stakeholders
c. does not influence competition
d. may not always result in profit and growth
e. is unaffected by environmental changes
ANS: D

16,_____ is the idea that socially responsible companies will outperform their peers by focusing on the
world's social problems and viewing them as opportunities to build profit and help the world at the
same time.
a. Sustainability
b. Philanthropy
c. Cause marketing
d. Creative ethics
e. International ethics
ANS: A

17, The four components of the pyramid of corporate social responsibility are:
a. sustainability, creativity, profit, and culture
b. organizational culture, creativity imagery, economic performance, and objectivity
c. organizational, financial, social, and cultural responsibilities
d. sustainability, legality, creativity, and competition
e. economic, legal, ethical, and philanthropic responsibilities
ANS: E

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18, Which of the following statements describes ethics?

a. Ethics are the moral principles or values that generally govern the conduct of an
individual.
b. Ethics is the standard of behavior by which conduct is judged.
c. Morals are a foundation for ethical behavior.
d. Ethical values are situation specific and time oriented.
e. All of the statements describe ethics.
ANS: E

19, A(n) _____ is a defined group that managers feel is most likely to buy a firm's product.
a. target market
b. buying center
c. aggregated unit
d. consumer cluster
e. demographic sample
ANS: A

20, Which of the following statements best describes the typical target market?
a. A target market will remain stable over time, with the same group of consumers.
b. Target markets change over time as consumers drop in or out of the market, and as tastes change.
c. Target markets are not strongly affected by changes in the external environment.
d. Target markets only change when the features and benefits of the product offering change.
e. Target markets cannot be specifically defined according to age, income, or location because these
factors are continually changing.
ANS: B
Target markets are defined and described, but they are always changing in response to environmental changes.

21, The external environment:

a. can be controlled in much the same manner as the internal marketing mix
b. cannot be influenced by marketing managers
c. does not change over time
d. does not have an impact on Fortune 500 companies
e. must be continually monitored by marketing managers
ANS: E

22, The external environment is a strong influence on a target market and can be a source of _____ for
the marketing manager.
a. opportunities and threats
b. threats and strengths
c. environmental loopholes
d. opportunities and weaknesses
e. product myopia
ANS: A
The external environment can provide opportunities to serve new and changing needs, as well as warnings
about changes that could threaten the current position of the firm. Students will need to remember what a
SWOT analysis is to answer this question.

23, What is apparently the most difficult external variable for marketing managers to forecast,
influence, or integrate into marketing plans?
a. technology
b. social factors
c. demography
d. competition
e. economic conditions
ANS: B

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Social factors and changes are difficult to foresee, because they are usually slow and/or small changes. Also, it
is very difficult for one company to affect social factors in any appreciable manner.

24,When a company engages in _____, it is implementing strategies that attempt to shape the external
environment in which it operates.
a. synergistic control
b. environmental management
c. transactional management
d. market control
e. reactive management
ANS: B

25, _____ factors are the environmental factors concerned with the changes in people's values,
lifestyles, and family roles.
a. Social
b. Economic
c. Political
d. Competitive
e. Demographic
ANS: A

26, What do self-sufficiency, upward mobility, and conformity have in common?

a. These are no longer valued attitudes.
b. They are attitudes that can easily be changed.
c. These are three perceptions that Americans have of the Asian lifestyle.
d. These are three of the core values that have influenced lifestyles in the United States.
e. They are the determinants of a component lifestyle.
ANS: D
The fourth value is work ethic.

27, The study of people's vital statistics, such as their ages, births, deaths, and locations, is called:
a. cultural sociology
b. psychometrics
c. ecology
d. ethnography
e. demography
ANS: E

28, Which of the following is NOT a demographic characteristic of a population?

a. income level
b. age
c. values
d. education
e. birthrate
ANS: C
Values are a social factor.

29, Factors, such as interest rates, inflation, and consumer income that influence the marketing
environment, are called _____ factors.

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a. economic
b. socio-demographic
c. political
d. government
e. consumption
ANS: A

30, A period of economic activity when income, production, and employment tend to fall, reducing
overall demand, is called:
a. stagnation
b. an inflation
c. a recession
d. price escalation
e. a depression
ANS: C

31, Which of the following is sometimes an effective weapon for fighting inflation and recession?
a. technology
b. line extensions
c. increased capital gains taxes
d. introducing product-line extensions
e. reducing R&D expenditures
ANS: A

32, Research that attempts to expand the frontiers of knowledge rather than solving a specific,
pragmatic problem is called:
a. technical diversity
b. reactive research
c. applied research
d. experiential research
e. basic research
ANS: E

33,Laws and regulations of various governments and their ongoing development and change are an
example of _____ factors and are part of all organizations' external environment.
a. economic investment
b. political and legal
c. research and development
d. competitive
e. demographic
ANS: B

34,___ is the managerial process of creating and maintaining a fit between the organization's objectives
and resources and evolving market opportunities.
a. Tactical management
b. The market audit
c. Functional planning
d. Environmental scanning
e. Strategic planning

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ANS: E

35, _____ is the process of anticipating events and determining strategies to achieve organizational
objectives.
a. Planning
b. Portfolio evaluation
c. Forecasting
d. Implementation
e. Evaluation
ANS: A

36, Marketing plans should be written to do all of the following EXCEPT:

a. compare actual and expected performance
b. provide clearly stated activities
c. create common goals for employees to work toward
d. allow managers to enter the marketplace with an awareness of possibilities and problems
e. control the elements of the external marketing environment
ANS: E
Marketing environment variables cannot be controlled.

37, Which of the following is one of the elements of the marketing plan?
a. a business mission statement
b. a situation analysis
c. a target market strategy
d. the marketing mix
e. all of the choices
ANS: E

38, The _____ answers the question, "What business are we in, and where are we going?"
a. mission statement
b. financial statement
c. situation analysis
d. market strategy
e. strategic plan
ANS: A

39, The focus of an organization's mission statement should be on:

a. the products it wishes to sell
b. the market it wishes to serve
c. its social responsibilities
d. the desires of government regulators
e. technologies it understands well
ANS: B
The choice of the market to serve determines the product and technology decisions.

40, A popular technique for managing a large organization with different technologies and markets is to
divide it into:
a. strategic business units
b. different technologies

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c. strategic target markets

d. design matrices
e. tactical segments
ANS: A

41, An SBU:
a. competes with the same companies as the other SBUs in the parent organization
b. shares the same mission with all the other SBUs in the parent organization
c. controls its business independent of other SBUs in the organization
d. usually benefits from the combined corporate raw materials purchases
e. still has strategic planning performed back at corporate headquarters
ANS: C
SBUs have separate business functions from one another and have their own mission statements, markets, and
planning.

After management agrees on a mission statement, it must set objectives. Which of the following is
42,
NOT a characteristic of a good objective?
a. profitable
b. realistic
c. measurable
d. time-specific
e. consistent
ANS: A
Good objectives are not necessarily stated in terms of profit.

43, A _____ is defined as a statement of what is to be accomplished through marketing activities.

a. mission statement
b. business plan
c. marketing objective
d. goal-driven directive
e. marketing criteria
ANS: C

44, A _____ is a formal study conducted by an organization to ascertain its current status and capabilities and
its future expectations.
a. situation analysis
b. marketing audit
c. trend analysis
d. strategic alternative selection
e. competitive advantage audit
ANS: A

45, The SWOT acronym refers to a firm’s analysis of its:

a. sales, width of product mix, observations, and technology
b. situations, wealth, organizational strengths, and target markets
c. strengths, weaknesses, opportunities, and threats
d. service levels, willingness to spend, organizational culture, and total revenues
e. strategies, willingness to change, objectives, and trends
ANS: C

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46, _____ is defined as the collection and interpretation of information about forces, events, and
relationships that may affect the organization.
a. Market sampling
b. An internal audit
c. Opportunity analysis
d. Environmental scanning
e. Stakeholder analysis
ANS: D

47, _____ is a strategy of increasing market share for present products in existing markets.
a. Market penetration
b. Product development
c. Market development
d. Diversification
e. Product penetration
ANS: A

48, _____ is a strategy that attracts new customers to existing products.

a. Product development
b. Market development
c. Market penetration
d. Product penetration
e. Diversification
ANS: B

49, _____ is a strategy that creates new products for present markets.
a. Product penetration
b. Market penetration
c. Product development
d. Market development
e. Diversification
ANS: C

50, _____ is the strategy of increasing sales by introducing new products into new markets.
a. Product penetration
b. Product development
c. Market penetration
d. Market development
e. Diversification
ANS: E

51, The _____ is the unique blend of product, distribution, promotion, and pricing strategies designed
to produce mutually satisfying exchanges with a target market.
a. internal environmental mix
b. marketing mix
c. product mix
d. product line
e. market portfolio
ANS: B

52, The starting point of any firm's marketing mix is the:

a. analysis of what production equipment is available and owned by the company

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b. design of the promotion campaign to be used for the product

c. selection of the places through which the good or service will be sold
d. determination of the product's price, enabling future revenues and budgets to be
estimated
e. development of the good or service to be sold
ANS: E
The product is the starting point for any marketing mix. Without it, pricing, distribution, and promotion are
irrelevant. The production capacity can be changed to fit the proposed product.

53, Making sure products are available when and where customers want them is the job of which
element of the marketing mix?
a. advertising strategies
b. production strategies
c. product strategies
d. promotion strategies
e. distribution strategies
ANS: E
Distribution strategies make products available when and where customers want them.

54, Global marketing standardization:

a. is becoming less popular with the large multinationals
b. encourages product, packaging, and advertising variations for each nation or local market
c. actually raises production costs
d. presumes markets throughout the world are becoming more alike
e. is more popular with consumer products than with industrial goods
ANS: D
With a global marketing standardization approach, a firm produces standardized products to be sold the same
way worldwide. This approach assumes all customers have the same needs and wants.

55,A business thinking of expanding into global markets needs to examine all of the following external
environments EXCEPT:
a. culture
b. political structure and actions
c. its marketing mix
d. natural resources
e. demographic makeup
ANS: C
The marketing mix is the keystone of a company's internal environment.

56, Central to any society is a common set of values shared by its citizens that determines what is
socially acceptable. Marketers refer to these values collectively as a country's:
a. ethical system
b. culture
c. ethnocentricity
d. national personality
e. socialization
ANS: B

57,Which of the following is an important cultural factor that should be considered by global
marketers?
a. competitive synergy
b. language
c. natural resources

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d. technology sensitivity
e. level of economic development
ANS: B

58, Customer relationship management:

a. is often described as a closed-loop system
b. only involves personnel in marketing and management departments
c. organizes the company around functional departments
d. is a very simplistic method of encouraging customer satisfaction
e. is only a theory and has not been proven successful in any practical way
ANS: A
CRM is a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction
by focusing on highly defined and precise customer segments.

59,The basic assumption of _____ is that marketing to repeat customers is more profitable than
marketing to first-time buyers.
a. customer segmentation
b. predictive modeling
c. customer valuation
d. data manipulation
e. lifetime value analysis
ANS: E
Lifetime value analysis is a data manipulation technique that projects the future value of the customer over a
period of years using the assumption that marketing to repeat customers is more profitable than marketing to
first-time buyers.

60, Everyday information about developments in the marketing environment that managers use to
prepare and adjust marketing plans is referred to as:
a. competitive intelligence
b. marketing information
c. decision support information
d. marketing research
e. observation
ANS: B
This describes marketing information, and accurate and timely information is the lifeblood of marketing decision
making.

70,_____ is the creation of a large computerized file of customers’ and potential customers’ profiles
and purchase patterns.
a. Electronic targeting
b. Sampling procedure specification
c. Database marketing
d. Competitive data mining
e. Consumer behavior marketing
ANS: C
This is the definition of database marketing.

80,_____ is the process of planning, collecting, and analyzing data relevant to a marketing decision.
The results of this analysis are then communicated to management.
a. Data collection
b. Artificial intelligence
c. Decision support
d. Marketing research
e. Single-source research

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ANS: D
This is the definition of marketing research.

81, Marketing research has three functional roles. These roles are:
a. normative, descriptive, and explanatory
b. predictive, normative, and persuasive
c. descriptive, diagnostic, and predictive
d. flexible, interactive, and discovery-oriented
e. descriptive, explanatory, and predictive
ANS: C
The three roles are descriptive, diagnostic, and predictive.

82, Trade groups, commercial publications, and government departments can be used as sources of:
a. secondary data
b. consensual information
c. primary data
d. artificial intelligence
e. marketing audits
ANS: A
Innumerable outside sources of secondary information exist, such as trade and industry associations, business
periodicals, and government departments and agencies.

83, Information collected for the first time for the purpose of solving a particular problem under
investigation is called _____ data.
a. primary
b. secondary
c. dichotomous
d. observation
e. convenience
ANS: A
This is the definition of primary data.

84, In-home personal interviews:

a. offer high-quality data at a high cost
b. offer the ability to obtain high-quality data at a low cost
c. are becoming increasingly more popular
d. are less expensive than mall intercepts
e. offer information of moderate quality but at a low cost
ANS: A
The cost of interviewer time and mileage is high, but these interviews yield high-quality information.

85, Telephone interviews offer:

a. speed in gathering data
b. a potential for reaching all households
c. few nonresponses
d. the ability to collect large amounts of complex data
e. the lowest-cost method for obtaining data
ANS: A
Telephone interviews are one of the fastest means for collecting data. See Exhibit 9.2.

86, _____ research depends on watching what people do.

a. Anonymous viewership
b. Observation
c. Interactive

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d. Personal scanner
e. Survey
ANS: B
Observation research is a method that relies on four types of observation: people watching people, people
watching an activity, machines watching people, and machines watching an activity.

An intelligence system that helps managers assess their competition and vendors in order to become
87,
more efficient and effective competitors is called:
a. competitive research
b. competitive intelligence
c. industrial espionage
d. an audit
e. differential competitive advantage
ANS: B This is the definition of competitive intelligence.

88, New-to-the-world products, where the product category itself is new, are also called:
a. discontinuous innovations
b. moderate innovations
c. slow-diffusing products
d. venture products
e. creative offerings
ANS: A
These products create an entirely new market.

89, The first stage of the new-product development process is:

a. screening and concept testing
b. establishing the new-product strategy
c. exploring opportunities
d. developing a business analysis
e. the building of a prototype
ANS: B
New-product strategy is the first subset of the organization’s new-product development plan. It specifies what
roles new products play in the organization’s overall plan and describes goals.

90, The process of converting applications for new technologies into marketable products is called:
a. basic research
b. product modification
c. marketing development
d. product development
e. correlation analysis
ANS: D
Product development is a marketing strategy that entails the creation of marketable new products.

91, The phase of the product life cycle in which healthy profits usually begin to appear is the _____
stage.
a. growth
b. decline
c. introductory
d. maturity
e. commercialization
ANS: A
Because losses often occur during the introductory stage, profits first appear in the growth stage.

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92, In which stage of the product life cycle do marginal competitors start dropping out of the market?
a. Introduction
b. Growth
c. Maturity
d. Decline
e. Shake-out
ANS: C
In the maturity stage, sales increase at a decreasing rate, and as prices and profits continue to fall, marginal
competitors start dropping out of the market.

93, A market is people or organizations that have:

a. the ability, willingness, and power to buy
b. a medium of exchange and products they desire
c. needs and wants and an ability and willingness to buy
d. unmet needs or wants and products or services that satisfy those unmet needs or wants
e. communication, financial, and capital resources
ANS: C
A market is defined as having four imperative characteristics: people or organizations, needs and wants, ability
to buy, and willingness to buy.

94, A market is people or organizations that have:

a. the ability, willingness, and power to buy
b. a medium of exchange and products they desire
c. needs and wants and an ability and willingness to buy
d. unmet needs or wants and products or services that satisfy those unmet needs or wants
e. communication, financial, and capital resources
ANS: C
A market is defined as having four imperative characteristics: people or organizations, needs and wants, ability
to buy, and willingness to buy.

95, A(n) _____ is a subgroup of individuals or organizations sharing one or more character istics that cause
them to have similar product needs.
a. market universe
b. market segment
c. aggregated market
d. segmentation base
e. population sample
ANS: B
This is the definition of a market segment.

96, _____ is the process of dividing a market into meaningful groups that are relatively sim ilar and identifi-
able.
a. Perceptual mapping
b. Positioning
c. Micromarketing
d. Market sampling
e. Market segmentation
ANS: E
This is the definition of market segmentation.

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97, The purpose of market segmentation is to:

a. reduce the market down to a size the firm can handle
b. divide the market into equal size and profit regions for sales territories
c. group a large number of markets together, enabling a company to serve them simultane-
ously
d. develop a generalized definition of the market as a whole
e. enable the marketer to tailor marketing mixes to meet the needs of one or more specific
groups
ANS: E
The purpose of segmentation is to group similar consumers and to serve their needs with a specialized market -
ing mix.

98, A(n) _____ is a subgroup of individuals or organizations sharing one or more character istics that cause
them to have similar product needs.
a. market universe
b. market segment
c. aggregated market
d. segmentation base
e. population sample
ANS: B
This is the definition of a market segment.

99, _____ is the process of dividing a market into meaningful groups that are relatively sim ilar and identifi-
able.
a. Perceptual mapping
b. Positioning
c. Micromarketing
d. Market sampling
e. Market segmentation
ANS: E
This is the definition of market segmentation

100, A(n) _____ is a subgroup of individuals or organizations sharing one or more character istics that cause
them to have similar product needs.
a. market universe
b. market segment
c. aggregated market
d. segmentation base
e. population sample
ANS: B
This is the definition of a market segment.

101, _____ is the process of dividing a market into meaningful groups that are relatively similar and identfiable.
a. Perceptual mapping
b. Positioning
c. Micromarketing
d. Market sampling
e. Market segmentation
ANS: E
This is the definition of market segmentation.

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102, To be useful, a segmentation scheme must produce segments that meet four basic criteria. The cri-
teria are:
a. segmentability, targetability, reliability and validity, and homogeneity
b. tangibility, inseparability, nonperishability, and uniqueness
c. substantiality, identifiability and measurability, accessibility, and responsiveness
d. reliability, flexibility, tangibility, and unbiased
e. complexity, compatability, relative advantage, trialability, and observability
ANS: C
Useful segments should be substantial, identifiable and measurable, accessible, and responsive to different mar -
keting mixes.

103, Income, ethnic background, gender, and age are all examples of _____ segmentation bases.
a. geodemographic
b. organizational
c. demographic
d. socioeconomic
e. psychographic
ANS: C
These are demographic characteristics of consumers.

104, _____ segmentation is based on personality, motives, and lifestyles.

a. Psychographic
b. Demographic
c. Benefit
d. Family life cycle
e. Character
ANS: A Personality, motives, and lifestyles are bases of psychographic segmentation.

105, The steps of the consumer decision-making process in order are:

a. need recognition, alternative aggregation, reevaluation, purchase decision, postpurchase
behavior
b. need positioning, stimulus response reactions, evaluation of alternatives, purchase
decision, postpurchase behavior
c. need positioning, alternative aggregation and divestment, purchase decision,
postpurchase evaluation
d. information search, need positioning, evaluation of alternatives, product trial, purchase
decision, postpurchase satisfaction
e. need recognition, information search, evaluation of alternatives, purchase, and
postpurchase behavior

ANS: E
See Exhibit 6.1.

106, Which of the following is any unit of input affecting one or more of the five senses: sight, smell,
taste, touch, and hearing?
a. Tactic
b. Need
c. Stimulus
d. Want
e. Desire
ANS: C
Stimuli can be either internal, such as occurrences you experience, or external, which are influences from an
outside source. Both affect one or more of the five senses.

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107,Which of the following is an information source that is not associated with advertising or
promotion?
a. External
b. Nonmarketing-controlled
c. Marketing-controlled
d. Unbiased
e. Primary
ANS: B
Nonmarketing-controlled information sources do not originate with marketers promoting the product.

108, The types of products people purchase using routine response behavior are typically:
a. frequently purchased, low-cost items
b. frequently purchased, high-cost items
c. infrequently purchased, low-cost items
d. infrequently purchased, high-cost items
e. all types of items, regardless of price or frequency of purchase
ANS: A
Routine response behavior is the type of decision making exhibited by consumers buying frequently purchased,
low-cost goods and services.

Which category of reference groups represents groups in which a consumer does not have
109,
membership?
a. Direct
b. Indirect
c. Primary
d. Secondary
e. Incomplete
ANS: B
Indirect reference groups are groups consumers do not belong to, but they might aspire to belong to one
(aspirational group) or not want to be associated with one (nonaspirational group).

110, The consumer product classification system is based on:

a. how the market is segmented
b. the way the products are manufactured
c. the way products are used
d. the physical attributes of the product
e. the amount of effort consumers spend to acquire the product
ANS: E
Products are classified by the amount of effort that is normally expended in the acquisition process.

111, The convenience product marketing strategy includes:

a. wide distribution of the product
b. higher than ordinary prices
c. few retail outlets other than convenience stores
d. significantly lower promotion budgets
e. products that are not easily substitutable
ANS: A
To sell large amounts of products that consumers are unwilling to search for, there must be a large number of
retail outlets.

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112, The two types of shopping products are:

a. unsought and convenience
b. generic and family
c. exclusive and intensive
d. heterogeneous and homogeneous
e. consumer and business
ANS: D

113, Product mix width may be defined as:

a. the number of different product categories found within an industry
b. the average number of products within each product line in the company
c. the average number of products offered by the company
d. the number of different product lines an organization offers for sale
e. the extensiveness of the coverage of the line from high end (expensive) to low end
(inexpensive)
ANS: D

114, A _____ is a business structure of interdependent organizations that reaches from the point of
product origin to the consumer.
a. facilitating agency or place member
b. marketing mix intermediary
c. selective distribution channel
d. marketing channel or channel of distribution
e. transportation channel or channel of movement
ANS: D

115, A channel typically used for industrial products is the _____ channel.
a. direct
b. industrial distributor
c. wholesaler
d. retailer
e. extended
ANS: A

116, _____ is communications by marketers that inform, persuade, and remind potential buyers of a
product in order to influence an opinion or elicit a response.
a. Distributive communication
b. Perceptual communication
c. Statistically provable advertising
d. Promotion
e. Publicity
ANS: D

117, The promotional mix consists of:

a. advertising, publicity, direct marketing, and personal selling
b. public relations, direct marketing, personal selling, and publicity
c. product, promotion, price, and place
d. advertising, personal selling, sales promotion, and public relations
e. advertising, telemarketing, public relations, and sales promotions
ANS: D

118, _____ is any form of sponsor-identified, impersonal paid mass communication.

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a. Advertising
b. Publicity
c. Promotion
d. Public relations
e. Nonpaid communication
ANS: A

119, Which of the following statements about advertising is true?

a. The total costs of advertising are typically low.
b. The signs on the outsides of buses and taxis are not a form of advertising.
c. The cost per contact in advertising is low.
d. Innovative media are not used in advertising.
e. Advertising is any form of communication in which the sponsor is identified.
ANS: C
The total costs of advertising are typically high even though the cost of contact is low. To be advertising, the
communication must be paid for. Innovative media are used in advertising. The signs are a form of advertising
because they are paid for and they identify their sponsors.

120, The marketing function that evaluates public attitudes, identifies areas within the organization that
are of public interest, and executes a program of action to gain public understanding is:
a. public relations
b. advertising
c. implicit communications
d. personal selling
e. sales promotion
ANS: A

121, Which of the following outlines a sequential four-step process for achieving promotional goals?
a. communication model
b. hierarchy of impacts
c. AIDA concept
d. Maslow's hierarchy of needs
e. Schramm's model
ANS: C

122, AIDA stands for:

a. Attitude-Interest-Demand-Activity
b. Attention-Interest-Desire-Action
c. Awareness-Intent-Demand-Action
d. Avoidance-Interest-Desire-Acceptance
e. Attitudes-In-Developing-Acquisitions
ANS: B

123, According to the text, price is best described as:

a. the perceived value of a good or service
b. money exchanged for a good or service
c. the psychological results of purchasing
d. the cost in dollars for a good or service as set by the producer
e. the value of a barter good in an exchange
ANS: A

124, Revenue:

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a. equals quantity sold times profit margin

b. equals price minus costs
c. equals return on investment
d. is synonymous with profit
e. equals price of goods times quantity sold
ANS: E

125, Although many factors can influence price, the primary determinants are:
a. costs of manufacturing and distribution
b. the demand for the good and the cost to the seller
c. demand by the consumer and perceived quality
d. distribution and promotion strategies
e. stage of the product life cycle and costs to the consumer
ANS: B

126, _____ is defined as the quantity of a product that will be sold at various prices for a specified
period.
a. Market share
b. Demand
c. Supply
d. Value
e. Revenue
ANS: B

127, The price of the good or service is a key decision for a marketer because it most significantly and
directly affects the product's:
a. distribution
b. costs
c. demand
d. promotion
e. quality
ANS: C
The quantity of a product that people will buy depends on its price.

128, _____ is defined as the quantity of product offered to the market by suppliers at various prices for
a specified period.
a. Supply
b. Demand
c. Equity
d. Liquidity
e. Current asset
ANS: A

129, Profit maximization occurs when:

a. total costs equals average fixed revenue
b. average variable costs are larger than average total costs
c. total costs equal total variable costs
d. marginal variable costs equal average revenues
e. marginal revenue equals marginal cost

130, The point at which marginal cost and marginal revenue are equal always results in:

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a. maximization of elasticity
b. maximization of revenue
c. maximization of costs
d. maximization of profits
e. break-even equilibrium
ANS: D
Until the point where MC = MR, each unit of sales has contributed to additional profit; therefore, profit, not
revenue or costs, has been maximized at MC = MR.

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