Marketing Concepts
How can researchers protect the integrity of the marketing information they collect?
A. By interpreting it correctly
B. By organizing it logically
C. By publishing it openly
D. By reviewing it frequently
Answer: A. By interpreting it correctly
Explanation: Interpretation affects whether data accurately represents findings or manipulates them to fit preconceptions.
18. A characteristic of the growth stage of a product’s life cycle is:
A. Beginning obsolescence
B. Rising sales
C. Increasing costs
D. Declining distribution
Answer: B. Rising sales
Explanation: During growth, sales increase as the product gains market acceptance.
7. What is the goal of amplified word-of-mouth promotion?
A. Encouraging feedback
B. Improving product quality
C. Providing information for activists
D. Building loyal customer relationships
Answer: C. Providing information for activists
Explanation: Amplified word-of-mouth relies on campaigns encouraging activists to share information.
9. The Walt Disney Company promoted Pocahontas by giving away free vacations to Walt Disney World through sign-ups in Target stores. What kind of promotional tool is this?
A. Publicity
B. Sales promotion
C. Advertising
D. Personal selling
Answer: B. Sales promotion
Explanation: Sales promotions include activities such as contests, coupons, and giveaways designed to boost short-term sales.
23. Which of the following is an example of prejudice?
A. Arnie rarely hires women to work as engineers for his company.
B. A juror believes a defendant is guilty before the trial begins.
C. Students compare grades and realize their teacher is unfair.
D. A taxi driver refuses to pick up passengers of a certain ethnicity.
Answer: B. A juror believes a defendant is guilty before the trial begins
Explanation: Prejudice is forming a judgment based on preconceived notions rather than facts.
11. Marketers use data to determine pricing strategies such as:
A. What products to offer
B. How much of the product to create
C. How much to spend on advertising
D. When to offer a discount on the product
Answer: D. When to offer a discount on the product
Explanation: Pricing strategies involve adjusting product prices and deciding when to offer discounts.
22. What is Jon doing by stating that his department has a similar issue during a meeting?
A. Summarizing what’s been said
B. Pointing out missing information
C. Building on someone else’s comment
D. Establishing ground rules
Answer: C. Building on someone else’s comment
Explanation: Jon expands on another idea to suggest a solution.
42. How does building a clientele benefit a business?
A. Increased knowledge
B. Personal satisfaction
C. Increased sales volume
D. Increased selling costs
Answer: C. Increased sales volume
Explanation: Repeat customers drive sales growth and stability.
45. During one scene of a popular TV show, an actor pours a box of brand-name cereal into a bowl and begins eating it. What does this exemplify?
A. Product placement
B. Product programming
C. Brand identification
D. Brand awareness
Answer: A. Product placement
Explanation: Product placement involves featuring products prominently in entertainment media to increase visibility.
31. Which of the following typically addresses conflicts of interest, harassment, discrimination, and confidentiality?
A. Annual report
B. Operating statement
C. Mission statement
D. Code of conduct
Answer: D. Code of conduct
Explanation: A code of conduct outlines the expected ethical behavior within an organization.
53. How does marketing research help a business implement the marketing concept?
A. By solving the business's problems
B. By preventing financial losses
C. By setting goals for the business
D. By identifying consumers' wants and needs
Answer: D. By identifying consumers' wants and needs
Explanation: Understanding customer preferences ensures that businesses meet their needs effectively.
35. How does selling help create possession utility?
A. By affecting employment
B. By increasing competition
C. By creating desire for products
D. By keeping the economy moving
Answer: C. By creating desire for products
Explanation: Sales encourage consumers to take ownership, enhancing utility.
46. Which is an example of a business behaving ethically to protect consumers?
A. Explaining a new manufacturing process
B. Wrapping products in plain paper
C. Placing informative commercials on TV
D. Using tamper-resistant packaging
Answer: D. Using tamper-resistant packaging
Explanation: Such packaging ensures product safety by preventing tampering.
94. What information are businesses required to provide to participants in promotional sweepstakes and contests?
A. Samples of the product
B. Odds of winning
C. Value of coupon
D. Amount of rebate
Answer: B. Odds of winning
Explanation: Businesses must disclose the chances of winning to maintain transparency and comply with legal requirements.
30. To reduce the risk of bribery in selling situations, it is a good idea for businesses to develop:
A. Product delivery policies
B. Promotional budgets
C. Entertainment guidelines
D. Diversity training manuals
Answer: C. Entertainment guidelines
Explanation: Guidelines help ensure that entertainment activities remain ethical and not perceived as bribery.
58. Stouffer’s developed Lean Cuisine to appeal to consumers wanting good-tasting, low-calorie meals. This is an example of:
A. Incorporation
B. Alteration
C. Positioning
D. Depth
Answer: C. Positioning
Explanation: Positioning targets a specific need in the market with a tailored product.
49. Which of the following is an example of product bundling?
A. Selling computer, printer, and ink cartridges as a unit
B. Theme park charging admission and selling ride tickets
C. Lumber company selling wood chips as animal bedding
D. Garden shop discounting seasonal merchandise
Answer: A. Selling computer, printer, and ink cartridges as a unit
Explanation: Bundling involves selling multiple items as one package, often at a discount.
90. What might happen if a manager fails to protect confidential information about employees?
A. Loss of clients
B. Claims of workplace discrimination
C. Costly lawsuits
D. Damaged workplace environment
Answer: D. Damaged workplace environment
Explanation: Breaching confidentiality erodes trust among employees and management.
37. Coca-Cola’s "Always the real thing" campaign is an example of what type of promotion?
A. Taste
B. Company
C. Service
D. Product
Answer: D. Product
Explanation: Product promotion focuses on highlighting the features and benefits of a specific good or service to persuade customers to buy it.
90. A manager did not protect confidential information about a conflict between two employees. What is a likely consequence of this action?
A. Loss of clients
B. Claims of workplace discrimination
C. Costly lawsuits
D. Damaged workplace environment
Answer: D. Damaged workplace environment
Explanation: Breaches of confidentiality erode trust, causing workplace morale to suffer.
70. When is it beneficial to use open-ended questions in a survey?
A. Maintaining structure is important
B. Requesting objective responses
C. Using a long, technical survey
D. Conducting exploratory research
Answer: D. Conducting exploratory research
Explanation: Open-ended questions allow for deeper insights into respondents’ thoughts.
76. Why might a business remove a product from its product mix and replace it?
A. The product has become a collectible
B. The product is a fast seller
C. The company wants to increase market share
D. The company wants to expand its product line
Answer: C. The company wants to increase market share
Explanation: Businesses replace outdated products to better compete and attract new customers
99. What should businesses seek in employees to ensure ethical operations?
A. Kindness
B. Integrity
C. Attention to detail
D. Physical fitness
Answer: B. Integrity
Explanation: Integrity ensures employees act in the business's and society’s best interests.
50. An arrangement that allows customers to purchase and use goods or services and pay for them at a later time is called a __________ sale.
A. Credit
B. Cash
C. Budget
D. Layaway
Answer: A. Credit
Explanation: Credit sales enable customers to buy now and pay later, making it a common strategy to boost consumer spending.
28. Why should channel members of a supply chain be familiar with antitrust laws?
A. To prohibit authority
B. To limit monopolies
C. To hinder competition
D. To restrict efficiency
Answer: C. Hinder competition
Explanation: Antitrust laws prevent unfair business practices that reduce market competition.