26-30
31-35
36-40
41-45
46-50
100
26. Wal-Mart and Sears attract two different types of customers because of their pricing strategies. They have established their prices based on __________ decisions. A. promotional B. customer C. place D. profit D. Mass customization
B.Profit
100
31. The Standard Oil Company's price-fixing tactics and monopolistic control over oil refining and distribution in the late 1800's was a major contributing factor in the enactment of which piece of legislation? A. Sherman Antitrust Act B. Clayton Act C. Robinson-Patman Act D. Federal Trade Commission Act
A. Sherman Antitrust Act
100
36. Which of the following factors should businesses consider when establishing a product's selling price: A. Economic conditions B. Unfair sales laws C. Pricing agreements D. Trade practices
A. Economic conditions
100
41. Brand or trade names are used primarily to identify a A. market B. standard C. product D. trend
C. product
100
46. Which of the following is a reason that a business would make changes to its products? A. To keep up with changing consumer preferences B. To spread risk over a wider area C. To predict the success of the changed product D. To make room for other products
A. To keep up with changing consumer preferences
200
27. Charging premium prices for lumber to hurricane victims because supply is limited is A. unethical and illegal. B. unethical and legal. C. ethical and legal. D. ethical and illegal.
B>Unethical and legal.
200
32. Which of the following technological tools helps a business's employees simultaneously access the same information about the business's products? A. Memory card B. Micro-portal C. Intranet D. Generator
C. Intranet
200
37. Why should a business continue to monitor an established product? A. To determine the acceptance of a product by a limited market B. To make sure that a marketing plan is firmly in place C. To make changes in order to extend a product's life cycle D. To evaluate how a product might fit the firm's product mix
C. To make changes in order to extend a product's life cycle
200
42. A drawback of brands as compared to unbranded products is that they usually A. differentiate products. B. must be sold at higher prices. C. create brand loyalty D. require trademark registration
B. must be sold at higher prices.
200
47. Five years after a new product has been introduced, sales begin to level off because customers are purchasing the competitor'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
C. Modify the product to renew customer interest
300
28. Which of the following is an example of an ethical issue as it relates to predatory pricing: A. An international book publisher sells similar products to similar customers at different prices. B. A tire producer introduces a new item to its product line and sets the initial price very low. C. A salesperson encourages a customer to purchase an extended vehicle warranty for a new car. D. A local ice-cream shop prices menu items below cost in an effort to eliminate its competition.
D. A local ice-cream shop prices menu items below cost in an effort to eliminate its competition.
300
33. Which of the following would probably use a longer channel of distribution than the others: A. A baby duck B. A printing press C. An airplane D. A bottle of shampoo
D. A bottle of shampoo
300
38. When a company uses its product wrapping to promote the preservation of an endangered animal species, it is engaging in an ethical practice called A. political lobbying. B. environmental labeling. C. cause packaging. D. provocative branding.
C. cause packaging.
300
43. Harrison Stroller Company manufactures baby strollers. The business launched a new stroller line in hopes of increasing its market share. The new model featured neon, plastic, musical toys on the front bar of the stroller. 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
C. Product liability
300
48. Which activity is addressed in the product/service management function? A. Setting discounts to clear products from inventory B. Determining where products will be offered for sale C. Focusing promotional activities on a new-product release D. Eliminating products that are slow sellers
D. Eliminating products that are slow sellers
400
29. One way that many businesses use technology to reduce the costs associated with marking prices on products is by using A. electronic scanning devices. B. automated inventory systems. C. preprinted gummed labels. D. computer-generated tags.
D. computer-generated tags.
400
34. Which of the following makes it possible for a business's drivers to determine their exact location and obtain accurate directions to destinations: A. Video frequency technology B. Global positioning system C. CB radio system D. Image scanning technology
B. Global positioning system
400
39. A business is behaving unethically if its product's label contains A. nutritional values. B. recyclable materials. C. mandatory requirements. D. misleading information.
D. misleading information.
400
44. Lakeview Manufacturing produces canned tuna fish for consumers and pets. After the company decided to expand its market to three additional states, it discovered that the pet products were labeled incorrectly. They had been packaged and distributed as consumer products. To correct this problem, what action should the company take? A. Product liability B. Product recall C. Guarantee D. Warranty
B. Product recall
400
49. Which of the following is a way that a business can extend the life cycle of an established product? A. By promoting the product to current users B. By finding new uses for the product C. By restricting distribution D. By attracting consumers who are innovators
B. By finding new uses for the product
500
30. Technology allows manufacturers to pre-print product packaging with Universal Product Codes (UPCs) which contain __________ information. A. pricing B. sampling C. operating D. selling
A. pricing
500
35. Why is the quality level of a product an important product/service management decision? A. It identifies a product's brand. B. It reflects the image of the business. C. It protects the consumers. D. It refers to the way the product works.
B. It reflects the image of the business.
500
40. A business that says it tries harder because its product is not number one, is using product positioning to A. motivate B. organize C. upgrade D. compete
D. compete
500
45. Why would a business use a broad product mix? A. To assure that the product lines are related B. To promote one-stop shopping C. To decrease legal liabilities D. To relate the products to the target market
B. To promote one-stop shopping
500
50. 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
D. To adapt its marketing strategies
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