Mba marketing management

1) ________ refers to the amount of money charged for a product or service.

A) Payroll

B) Profit

C) Price

D) Cost

E) Salary

Answer: C

Difficulty: Easy

Chapter LO: 1

Course LO: Discuss strategies for setting and adjusting prices

2) ________ is the only element in the marketing mix that produces revenue.

A) Price

B) Place

C) Promotion

D) Product

E) Profit

Answer: A

Difficulty: Easy

Chapter LO: 1


3) Which of the following sets the upper limit for a product's pricing?

A) profits

B) product costs

C) consumer perceptions of value

D) elements of the product mix

E) competition

Answer: C

Difficulty: Easy

Chapter LO: 1


4) Which of the following sets the lower limit for a product's pricing?

A) product costs

B) profits

C) competition

D) elements of the product mix

E) consumer perceptions of value

Answer: A

Difficulty: Easy

Chapter LO: 1


5) ________ uses buyers' perceptions of what a product is worth as the key to pricing.

A) Customer value-based pricing

B) Target return pricing

C) Cost-plus pricing

D) Psychological pricing

E) Competition-based pricing

Answer: A

Difficulty: Easy

Chapter LO: 1


6) Value-based pricing is the reverse process of ________ pricing.

A) good-value

B) target costing

C) cost-based

D) value-added

E) competition-based

Answer: C

Difficulty: Moderate

Chapter LO: 1


7) A value-based pricing strategy most likely begins with ________.

A) assessing customer needs

B) designing a stylish product

C) evaluating the product's costs

D) promoting the product's benefits

E) setting a price based on perceived value

Answer: A


Chapter LO: 1


8) ________ pricing involves charging a constant low price with few or no temporary price

discounts.

A) High-low

B) Target return

C) Cost-plus

D) Everyday low

E) Market-skimming

Answer: D


Chapter LO: 1


9) Providing extra amenities to differentiate and support high-priced products is referred to as

________ pricing.

A) high-low

B) value-added

C) target return

D) everyday low

E) cost-plus

Answer: B


Chapter LO: 1


10) ________ pricing involves setting prices based on the expenses involved in producing,

distributing, and selling a product plus a fair rate of return for a company's effort and risk.

A) Competition-based

B) Value-added

C) Cost-based

D) Good-value

E) Demand-based

Answer: C


Chapter LO: 1


11) Rent, electricity, and executive salaries that do not vary with production level are referred to

as ________ costs.

A) fixed

B) variable

C) break-even

D) target

E) promotional

Answer: A


Chapter LO: 1


12) ________ costs are also known as overhead.

A) Fixed

B) Variable

C) Target

D) Capital

E) Payroll

Answer: A

Difficulty: Easy

Chapter LO: 2


13) Costs that change directly with the level of production are referred to as ________ costs.

A) fixed

B) variable

C) target

D) capital

E) payroll

Answer: B

Difficulty: Easy

Chapter LO: 1


14) ________ costs refer to the sum of the fixed and variable costs for any given level of

production.

A) Target

B) Marginal

C) Value-based

D) Total

E) Break-even

Answer: D

Difficulty: Easy

Chapter LO: 1


15) A company designs what it considers to be a good product, calculates the expenses of

making the product, and sets a price that adds a standard markup to the cost of the product. This

approach to pricing is called ________ pricing.

A) value-added

B) good-value

C) cost-plus

D) competitor-based

E) break-even

Answer: C


Chapter LO: 1


1) ________ refers to the activities involved in selling products or services directly to final

consumers for their personal, nonbusiness use.

A) Sole sourcing

B) Retailing

C) Manufacturing

D) Procurement

E) Warehousing

Answer: B

Difficulty: Easy

Chapter LO: 1

Course LO: Describe how retailers and wholesalers create value

2) ________ refers to using point-of-purchase promotions and advertising to extend brand equity

to "the last mile" and encourage favorable point-of-purchase decisions.

A) Internal marketing

B) Sole sourcing

C) Warehousing

D) Test marketing

E) Shopper marketing

Answer: E

Difficulty: Easy

Chapter LO: 1


3) Which of the following conditions increases the chances of a retailer opting to be categorized

as a self-service retailer?

A) when consumers need warranty information about shopping goods

B) when customers are willing to conduct their own locate-compare-select process

C) when the store offers luxury products at highly affordable prices

D) when customers are looking for a narrow product line with a deep assortment

E) when the store has been converted into a designer shop from a department store

Answer: B


Chapter LO: 1


4) Stores that provide moderate sales assistance because they carry shopping goods about which

customers need a moderate level of information are called ________ retailers.

A) self-service

B) full-service

C) off-price

D) limited-service

E) convenience

Answer: D


Chapter LO: 1


5) Which types of stores are characterized by specialty goods for which customers need

assistance and higher operating costs that are passed along to customers as higher prices?

A) self-service stores

B) convenience stores

C) full-service stores

D) discount stores

E) off-price stores

Answer: C


Chapter LO: 1


6) Flax is a chain of stores that carries several product lines including clothing, home

furnishings, and household appliances. Each line is operated as a separate department, and

employees are available to assist and advise customers in every phase of the shopping process.

Flax is most likely a ________.

A) self-service retailer

B) category killer

C) full-service retailer

D) supermarket

E) pop-up store

Answer: C


Chapter LO: 1


AACSB: Analytic thinking

7) Customers at Carat, a premium jewelry store, are encouraged to make an appointment before a

visit so that a customer service representative is assigned to them. These representatives help

every customer make a purchase that meets his or her needs and budget after considering

numerous options. The different styles and special features of the jewelry are explained to each

customer to aid the purchase decision. In this case, Carat is an example of a(n) ________.

A) self-service retailer

B) off-price retailer

C) full-service retailer

D) supermarket

E) convenience store

Answer: C


Chapter LO: 1



8) Which type of retailer typically carries deep product assortments of narrow product lines?

A) self-service retailers

B) specialty stores

C) warehouse clubs

D) discount stores

E) factory outlets

Answer: B

Difficulty: Easy

Chapter LO: 1


9) GameStop, a video game retailer, offers a deep assortment of video games and video game

consoles. GameStop is best described as a(n) ________.

A) department store

B) supermarket

C) specialty store

D) discount store

E) off-price retailer

Answer: C


Chapter LO: 1



10) Specialty stores are characterized by ________.

A) the sale of convenience and staple items

B) narrow product lines with deep assortments

C) a wide range of products and categories

D) low prices on a wide range of goods

E) routinely purchased food products and services

Answer: B


Chapter LO: 1


11) Department stores are most likely characterized by ________.

A) narrow product lines

B) specialty goods and services

C) predatory pricing strategies

D) deep assortments of luxury brands

E) wide varieties of product lines

Answer: E


Chapter LO: 1


12) Jones & Company, a major retail chain across the United States, offers a wide range of

consumer goods such as clothing, furniture, home appliances, cosmetics, jewelry, and food.

Jones & Company is best described as a ________.

A) supermarket

B) department store

C) specialty store

D) pop-up store

E) category killer

Answer: B


Chapter LO: 1



13) A convenience store ________.

A) markets to segments comprised mostly of white-collar workers

B) stocks narrow product lines that have wide, deep assortments

C) carries a limited line of high-turnover goods for consumer self-service

D) involves high operation costs due to full-service customer assistance

E) is a multi-channel food and discount retailer that targets niche markets

Answer: C


Chapter LO: 1


14) Which type of store is much larger than a regular supermarket and offers a large assortment

of routinely purchased food products, nonfood items, and services?

A) discount stores

B) specialty stores

C) factory outlets

D) superstores

E) off-price outlets

Answer: D

Difficulty: Easy

Chapter LO: 1


15) Which term refers to a giant specialty store with a very deep assortment of a particular

product line?

A) category killer

B) convenience store

C) factory outlet

D) department store

E) independent store

Answer: A

Difficulty: Easy

Chapter LO: 1


16) Pawz is a larger retailer that specializes in pet products and services such as pet food,

accessories, grooming, toys, and medical treatment. Pawz also has animals available for adoption

at all of its many stores located across the nation. Pawz is most likely an example of a ________.

A) convenience store

B) pop-up store

C) category killer

D) lifestyle center

E) supermarket

Answer: C

Difficulty: Difficult

Chapter LO: 1



17) Which of the following statements is true of retailing?

A) All retail stores are full-service retail stores.

B) A department store has a narrow product line with a deep assortment.

C) The largest type of retail outlet is a supermarket.

D) Services like hotels, banks, airlines, restaurants, colleges, and hospitals can be retailed.

E) A feature common to all types of retail stores is the use of the everyday low pricing strategy.

Answer: D


Chapter LO: 1


18) ________ refer to retailers that sell standard merchandise at lower prices by accepting lower

margins and selling higher volume.

A) Convenience stores

B) Discount stores

C) Full-service retailers

D) Designer shops

E) Specialty stores

Answer: B

Difficulty: Easy

Chapter LO: 1


19) ________ have filled the ultralow-price, high-volume gap by buying at less-than-regular

wholesale prices and charging consumers less than retail.

A) Off-price retailers

B) Specialty stores

C) Convenience stores

D) Designer shops

E) Full-service retailers

Answer: A

Difficulty: Easy

Chapter LO: 1


20) Which of the following is a type of off-price retailer?

A) specialty store

B) full-service retailer

C) discount store

D) warehouse club

E) supermarket

Answer: D


Chapter LO: 1


1) ________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or

services by an identified sponsor.

A) Sales promotion

B) Personal selling

C) Advertising

D) Public relations

E) Direct marketing

Answer: C

Difficulty: Easy

Chapter LO: 1

Course LO: Describe the decisions involved in developing effective promotion mix strategies

2) Remington Motors releases a new line of hybrid electric vehicles called Electra. The line

promises superior mileage and excellent horsepower in an environmentally friendly automobile.

Remington decides to use advertising as the promotional tool for the car's launch. Which of the

following would qualify as an advertisement for Electra?

A) a front-page notice of the release of Electra in all leading newspapers with the caption "Green

Speed"

B) a press conference to discuss the various safety issues, actual mileage, and environmental

features of Electra

C) the use of dedicated sales personnel in dealer showrooms to explain the qualities of Electra to

potential customers

D) the involvement of a celebrity at the launch of Electra to endorse the hybrid car

E) a buyers-only lottery where Electra buyers have a chance of winning a prize

Answer: A


Chapter LO: 1



3) In a marketing communications mix, ________ refers to any short-term incentives to

encourage the purchase of a product or service.

A) advertising

B) sales promotion

C) personal selling

D) crowdsourcing

E) public relations

Answer: B

Difficulty: Easy

Chapter LO: 1


4) Mercury Electric, a leading manufacturer of kitchen appliances, releases a new line of

blenders called SpinPro. To boost sales, Mercury Electric gives scratch-and-win coupons to all

buyers and provides a three-day trip to Hawaii for the winner. Which element of the promotion

mix has Mercury Electric used in this scenario?

A) public relations

B) crowdsourcing

C) advertising

D) sales promotion

E) personal selling

Answer: D


Chapter LO: 1



5) In a promotion mix, ________ performs the functions of building a good rapport with entities

outside the company, building up a good corporate image, and handling unfavorable rumors and

events.

A) personal selling

B) sales promotion

C) direct marketing

D) advertising

E) public relations

Answer: E

Difficulty: Easy

Chapter LO: 1


6) ColaBlue, a soft drink manufacturer, is sued by an environmental group for not meeting

certain safety standards in its waste disposal. ColaBlue remedies the problem by adding higher-

grade filters and purifiers. Which of the following actions by ColaBlue would constitute a

public-relations effort to address the effects of the lawsuit and the consequent damage to its

brand image?

A) having well-trained personnel at retail outlets to explain the different ranges of products the

company provides

B) tying up with local restaurants to promote exclusive sales of ColaBlue soft drinks

C) lowering prices of ColaBlue's products in the short term

D) holding a press conference to explain the remedial steps that ColaBlue has taken

E) making new advertisements for ColaBlue products and sponsoring shows on television

Answer: D


Chapter LO: 1



7) In a promotion mix, ________ occurs when a firm's sales force makes individual presentations

to consumers for the purpose of promoting sales and building customer relationships.

A) advertising

B) public relations

C) crowdsourcing

D) merchandising

E) personal selling

Answer: E

Difficulty: Easy

Chapter LO: 1


8) Tilt Entertainment, a gaming design firm, has developed a new game called World Below. In

order to get wider distribution, Tilt participates in the Gaming Entertainment Expo, which is

attended by both sellers and consumers. Tilt sends a team of representatives for game

presentation and negotiation and a team of professional gamers to showcase World Below at the

Expo. The company also sends a team to sell its other games to consumers at the Expo. Which

promotion mix tool has Tilt used in this scenario?

A) crowdsourcing

B) public relations

C) advertising

D) personal selling

E) crowdcasting

Answer: D


Chapter LO: 1



9) Dazed is a bar which mostly plays trance music and has a dedicated day every week for local

bands to perform. To build strong customer relations, Dazed sends text messages to customers,

telling them about happy hours, bands playing that week, dedicated genre nights, and other

activities. Which of the following promotion mix tools does Dazed employ to reach target

customers in this scenario?

A) public relations

B) personal selling

C) direct marketing

D) crowdcasting

E) retailing

Answer: C


Chapter LO: 1



10) In a promotion mix, ________ involves personally connecting with carefully targeted

individual consumers to both obtain an immediate response and cultivate lasting customer

relationships.

A) direct marketing

B) advertising

C) public relations

D) predictive analytics

E) indirect procurement

Answer: A

Difficulty: Easy

Chapter LO: 1


11) Which of the following is true of consumers in the new marketing communications model?

A) They are more reliant on traditional methods of marketing for product information.

B) They are less informed than before about companies and product marketing techniques.

C) They are more reliant on mass-media marketing methods for product information.

D) They are less powerful than before in affecting the way a company markets its products.

E) They are better equipped to find product and brand information on their own.

Answer: E


Chapter LO: 2

Course LO: Identify and discuss the factors influencing consumer buying behavior

12) Which of the following is an effect of the advancement of technology on marketing?

A) Fragmented markets have assimilated into a few mass markets.

B) Marketers go through more intermediaries to connect with consumers.

C) Consumers rely less on marketer-supplied information than in the past.

D) Marketers have increasingly moved toward mass-marketing techniques.

E) Marketers tend to supply less information to consumers than in the past.

Answer: C


Chapter LO: 2

Course LO: Discuss the fundamental concepts of marketing

AACSB: Information technology

13) Which of the following is an example of narrowcasting using advertisements?

A) running an ad for a new line of cars on cable TV

B) showing ads for diapers to would-be mothers in hospitals

C) handing out promotional leaflets for a new restaurant to passers-by

D) showing video game ads at a college football game

E) uploading movie ads on Web sites like YouTube

Answer: B


Chapter LO: 2



14) Which technique is used by firms to deliver a unified and consistent image about their

organizations and brands to consumers?

A) logistics information management

B) inventory control segmentation

C) niche market penetration

D) integrated marketing communications

E) global marketing management

Answer: D

Difficulty: Easy

Chapter LO: 2


15) Which of the following is true of marketing strategies that are being developed in the new

marketing communications model?

A) They are more targeted, social, and engaging.

B) They target much larger customer segments.

C) They rely more on mass-media marketing techniques.

D) They use very little alternative media.

E) They include a greater number of print media ads.

Answer: A


Chapter LO: 2


1) ________ consists of connecting directly with carefully targeted consumers, often on a one-to-

one, interactive basis.

A) Undifferentiated marketing

B) Mass marketing

C) Direct marketing

D) Internal marketing

E) Standardized marketing

Answer: C

Difficulty: Easy

Chapter LO: 1

Course LO: Describe the different forms of direct marketing

2) Which of the following statements is most likely true about direct marketing?

A) Direct marketing is used to sell goods to an undifferentiated market segment.

B) Direct marketing is an inconvenient and lengthy process for most buyers.

C) Direct marketing models remain unaffected by the rapid growth of technologies.

D) Direct marketing provides opportunities for building customer engagement.

E) Direct marketing is rarely used by companies as a supplementary channel.

Answer: D


Chapter LO: 1


3) Which of the following is the fastest-growing form of marketing?

A) direct marketing

B) undifferentiated marketing

C) internal marketing

D) mass marketing

E) standardized marketing

Answer: A

Difficulty: Easy

Chapter LO: 1



4) How has the Internet most likely affected direct marketing?

A) The time taken by direct marketers to reach customer segments has increased.

B) The role of technology in direct marketing has become less intense.

C) The expenditures of marketers on direct marketing have increased.

D) The growth of digital sales has seen a significant downturn.

E) The number of mass marketing forms has expanded.

Answer: C


Chapter LO: 1



5) Which of the following is most likely true about direct and digital marketing?

A) They make it increasingly difficult for sellers to adjust their prices.

B) They provide sellers a high-cost alternative for reaching their markets.

C) They have become less dependent on social media and the Internet.

D) They provide buyers with anytime, anywhere access to products.

E) They reduce the number of interaction options between buyers and sellers.

Answer: D


Chapter LO: 1



6) Which of the following is a traditional direct marketing tool?

A) catalog

B) e-mail

C) blog

D) online advertisement

E) Web site

Answer: A

Difficulty: Easy

Chapter LO: 2



7) Which of the following is a direct digital marketing tool?

A) printed catalog

B) direct mail

C) telephone

D) television

E) blog

Answer: E

Difficulty: Easy

Chapter LO: 2



8) Which of the following is the fastest-growing form of direct marketing?

A) catalog marketing

B) kiosk marketing

C) direct-mail marketing

D) digital marketing

E) telephone marketing

Answer: D

Difficulty: Easy

Chapter LO: 3



9) In which of the following cases is a firm employing multichannel marketing?

A) E-tailers such as Hammon.com market their products through a strong online presence.

B) Wingate Retail sells its products through e-tailers and hundreds of physical superstores.

C) Russel Stores' sales operations are based on heavy outbound telephone marketing.

D) Lues Wholesalers markets its products to retailers through personal selling.

E) Local convenience stores promote products through word-of-mouth marketing.

Answer: B


Chapter LO: 3



10) Which of the following is most likely true about the digital age with regards to marketing?

A) The number of businesses connecting people over digital networks is in decline.

B) Digital networks allow marketers many ways to build customer relationships.

C) The Internet has had little impact on the ways consumers purchase products.

D) Most firms are shifting back to traditional marketing forms to build customer value.

E) Online-only marketing is more commonly used by firms than multichannel marketing.

Answer: B


Chapter LO: 3



11) Amazon.com and Expedia.com are best described as ________ that sell products and

services directly to final buyers via the Internet.

A) search engines

B) content sites

C) transaction sites

D) e-tailers

E) iTV sites

Answer: D


Chapter LO: 3



12) Which of the following is a transaction site?

A) Wikipedia

B) Yahoo

C) eBay

D) IMDB

E) Facebook

Answer: C


Chapter LO: 3



13) The growth of the Internet caused many traditional companies to ________ in response to

customer demands and a changing marketplace.

A) use traditional direct marketing forms

B) adopt direct-mail marketing

C) use multichannel marketing

D) develop retail transaction sites

E) expand their outside sales forces

Answer: C


Chapter LO: 3



14) For most companies, the first step in conducting online marketing is to ________.

A) place an ad online

B) send e-mails

C) create a Web site

D) create a social networking site

E) place search-related ads

Answer: C

Difficulty: Easy

Chapter LO: 3

Course LO: Discuss how marketers can develop a safe and effective online presence


15) Which of the following is an online tool designed to interact with customers to move them

closer to a direct purchase or other marketing outcome?

A) direct mail

B) infomercial

C) printed catalogue

D) branded community Web site

E) marketing Web site

Answer: E

Difficulty: Easy

Chapter LO: 3



16) Which of the following is the primary purpose of branded community Web sites?

A) displaying digital catalogues

B) providing detailed descriptions of products

C) creating customer-product engagement

D) selling products and services

E) sending direct mails to consumers

Answer: C

Difficulty: Easy

Chapter LO: 3

Course LO: Describe how marketers can develop a safe and effective online presence


17) Which of the following is most likely true of branded community Web sites?

A) They provide engaging content.

B) They offer little information about the brand.

C) They contain interactive selling features.

D) They mostly contain static content.

E) They contain heavy pop-up ads of a firm's products.

Answer: A


Chapter LO: 3



18) Corell Inc. has an online tool that offers a wide variety of Corell shoes for direct purchase.

The tool even allows customers to individually design their shoes. Which of the following has

Corell most likely used?

A) phishing site

B) online forum

C) Web blog

D) community Web site

E) marketing Web site

Answer: E


Chapter LO: 3


AACSB: Analytic thinking; Information technology

19) Which of the following is a form of online advertising?

A) direct mail

B) rich media ad

C) toll-free number

D) search-related ad

E) printed catalog

Answer: D

Difficulty: Easy

Chapter LO: 3



20) Which of the following is the largest form of online advertising?

A) contextual advertisements

B) display advertisements

C) digital catalogs

D) community Web sites

E) blog posts

Answer: A

Difficulty: Easy

Chapter LO: 3



21) ________ might appear anywhere on an Internet user's screen when a user is browsing

through an article and are often related to the information being viewed.

A) Viral advertisements

B) Social media sites

C) Online display ads

D) Digital catalogs

E) Printed catalogs

Answer: C

Difficulty: Easy

Chapter LO: 3



22) Every time a search is made using keywords related to construction, search engines display

text-based advertisements and links to Regan Builders, a construction firm. The marketing tool

used by Regan Builders is best referred to as a ________.

A) display advertisement

B) contextual advertisement

C) digital catalog

D) community Web site

E) Web blog

Answer: B


Chapter LO: 3



23) Which of the following is most likely true about e-mail marketing?

A) It cannot be personalized to meet individual consumers.

B) It is a traditional form of direct marketing.

C) It is restricted to the use of personal computers.

D) It is used by marketers to send highly targeted messages.

E) It is always non-intrusive in nature due to spam filters.

Answer: D


Chapter LO: 3


24) Which of the following is most likely a consequence of permission-based e-mail marketing?

A) higher return rates

B) excessive spamming

C) increased consumer frustration

D) lower consumer response rates

E) reduced consumer interaction

Answer: A


Chapter LO: 3


25) Which of the following would a firm most likely use to share video content?

A) corporate intranets

B) social media sites

C) viral blogs

D) media portals

E) digital kiosks

Answer: B

Difficulty: Easy

Chapter LO: 3


1) Which of the following is most likely true of a global firm?

A) A global firm typically operates from one country.

B) A global firm engages in joint partnerships overseas.

C) A global firm sees the world as many different markets.

D) A global firm maximizes the importance of national boundaries.

E) A global firm manufactures and markets goods wherever it can do the best job.

Answer: E

Difficulty: Easy

Chapter LO: 1

Course LO: Describe the global marketing environment today and explain the options

companies consider as they go global

2) A tax on an imported product designed to raise revenue or protect domestic firms is referred to

as a(n) ________.

A) exchange

B) excise

C) fine

D) quota

E) tariff

Answer: E

Difficulty: Easy

Chapter LO: 1



3) The purpose of a quota is to ________.

A) protect local employment

B) provide competition to local industry

C) eliminate trade barriers between nations

D) increase the amount of foreign imports

E) increase the amount of foreign exchange

Answer: A


Chapter LO: 1



4) Which of the following is an example of a nontariff trade barrier?

A) a sales tax

B) customs duty

C) a host-country regulation

D) excise duty

E) an import quota

Answer: C


Chapter LO: 1



5) Restrictive product standards are ________.

A) tariffs

B) excise duties

C) quotas

D) nontariff trade barriers

E) exchange controls

Answer: D


Chapter LO: 1



6) Which of the following is true of the World Trade Organization (WTO)?

A) It was replaced by the GATT in 1995.

B) It increases tariffs and other international trade barriers.

C) It lacks the power to impose international trade sanctions.

D) It restricts the maximum number of member nations to 100.

E) It mediates global trade disputes.

Answer: E


Chapter LO: 1



7) Which of the following is true of the Uruguay Round of the WTO?

A) It promoted short-term global trade growth.

B) It increased the world's merchandise tariffs by 50 percent.

C) It reduced the influence of the WTO in agriculture.

D) It toughened the international protection of intellectual property.

E) It consisted of discussions that lasted for two years.

Answer: D


Chapter LO: 1



8) Which of the following is true of free trade zones?

A) They are groups of nations organized to work toward common goals.

B) They were formed to increase trade barriers between member nations.

C) They were formed to mediate global trade disputes.

D) They require member countries to establish one currency.

E) They tend to improve imports and hinder exports.

Answer: A

Difficulty: Easy

Chapter LO: 1




9) Which of the following established a free trade zone between the United States, Mexico, and

Canada?

A) Union of South American Nations

B) European Union

C) North American Free Trade Agreement

D) Central American Free Trade Agreement

E) Latin American Free Trade Association

Answer: C

Difficulty: Easy

Chapter LO: 1



10) A subsistence economy is one in which ________.

A) much of the revenue comes from exporting one or more natural resources

B) fast growth in manufacturing results in overall economic growth

C) a majority of the produced outputs is exported

D) manufactured goods form a majority of the exports

E) a vast majority of people engage in simple agriculture

Answer: E

Difficulty: Easy

Chapter LO: 1



11) Which type of economy consumes most of its output and barters the rest for simple goods

and services?

A) industrial economy

B) developed economy

C) subsistence economy

D) emerging economy

E) raw material exporting economy

Answer: C


Chapter LO: 1



12) Which of the following is true of raw material exporting economies?

A) These economies are major exporters of agricultural products.

B) These economies are poor markets for large equipment and trucks.

C) These economies are major exporters of manufactured goods, services, and investment funds.

D) These economies are rich in one or more resources but poor in other ways.

E) These economies consume most of their output and barter the rest.

Answer: D


Chapter LO: 1




13) A country in South America has large reserves of copper and tin. Mining forms the pillar of

its economy. A major part of its revenue is generated from exporting these resources. This

country is poor in many other ways. It is a good market for large equipment, tools, supplies, and

trucks. Since there are many foreign residents in this country and a wealthy upper class, it is also

a market for luxury goods. This country most likely has a(n) ________ economy.

A) subsistence

B) raw material exporting

C) emerging

D) developed

E) industrial

Answer: B


Chapter LO: 1




14) An emerging economy is one which ________.

A) imports large amounts of finished textiles and automobiles

B) offers few market opportunities for imported goods

C) consumes all or most of its output

D) needs few imports of raw textile materials and steel

E) has a rapid growth in manufacturing

Answer: E


Chapter LO: 1



15) An emerging economy is also known as a(n) ________ economy.

A) industrializing

B) industrial

C) subsistence

D) raw material exporting

E) developed

Answer: A

Difficulty: Easy

Chapter LO: 1



16) Japan is a major exporter of manufactured goods, services, and investment funds. Japan also

exports its goods to other types of economies for raw materials and semifinished goods. The

country's industrial structure is referred to as a(n) ________ economy.

A) agricultural

B) emerging

C) industrial

D) raw material exporting

E) subsistence

Answer: C


Chapter LO: 1




17) Which of the following statements is true of industrial economies?

A) They export their goods to other types of economies for raw materials.

B) They have a declining middle class population.

C) They depend on agriculture as the primary revenue generator.

D) They do not trade goods amongst themselves.

E) They consume most of their output and barter the rest for simple goods and services.

Answer: A


Chapter LO: 1



18) Which type of economy consists mostly of households with very low family incomes?

A) post-industrial

B) developed

C) emerging

D) industrial

E) subsistence

Answer: E

Difficulty: Easy

Chapter LO: 1



19) The simplest way to enter a foreign market is through ________.

A) joint ownership

B) exporting

C) direct investment

D) licensing

E) contract manufacturing

Answer: B

Difficulty: Easy

Chapter LO: 2



1) ________ marketing is defined as meeting the present needs of consumers and businesses

while also preserving or enhancing the ability of future generations to meet their needs.

A) Sustainable

B) Customer driving

C) Mass

D) Customer-driven

E) Differential

Answer: A

Difficulty: Easy

Chapter LO: 1


AACSB: Ethical understanding and reasoning

2) The ________ concept specifically focuses on future company needs, but not on future

customer needs.

A) societal marketing

B) strategic planning

C) sustainable marketing

D) global marketing

E) cause marketing

Answer: B

Difficulty: Easy

Chapter LO: 1


3) The ________ concept specifically focuses on future customer needs, but not on future

business needs.




D) marketing

E) selling

Answer: A

Difficulty: Easy

Chapter LO: 1


4) The ________ concept recognizes that organizations thrive from day to day by determining

the current needs and wants of target group customers and fulfilling those needs and wants more

effectively and efficiently than the competition.




D) marketing

E) cause marketing

Answer: D

Difficulty: Easy

Chapter LO: 1


5) The ________ concept focuses on meeting a company's short-term sales, growth, and profit

needs by giving customers what they want now.




D) marketing

E) cause marketing

Answer: D

Difficulty: Easy

Chapter LO: 1


6) A common criticism of the marketing system is that intermediaries ________.

A) are too few in number

B) are typically inefficient

C) provide only essential services

D) undervalue their service costs

E) are overly protective of manufacturers' interests

Answer: B

Difficulty: Easy

Chapter LO: 2

Course LO: Identify and analyze the major social criticisms of marketing


7) Critics charge that high advertising and promotion costs unnecessarily increase retail prices.

Marketers most likely respond to this criticism by arguing that advertising ________.

A) provides essential psychological benefits about products

B) adds value by giving consumers product information

C) generates tax breaks for small businesses

D) applies a functional value to the product

E) lowers prices by increasing competition

Answer: B


Chapter LO: 2



8) A pen that costs five cents to make may cost a consumer $2 to buy. According to critics, this

is an example of ________.

A) deceptive advertising

B) redlining

C) excessive markup

D) high-pressure selling

E) shoddy manufacturing

Answer: C


Chapter LO: 2



9) Deceptive promotion overstates a product's features or ________.

A) retail price

B) performance

C) wholesale cost

D) packaging

E) brand name

Answer: B


Chapter LO: 2



10) A major step in regulating unfair or deceptive acts or practices was the enactment of the

________ in 1938.

A) Robinson-Patman Act

B) Wheeler-Lea Act

C) Consumer Product Safety Act

D) Taft-Hartley Act

E) Sherman Act

Answer: B

Difficulty: Easy

Chapter LO: 2



11) In advertising, puffery refers to ________.

A) broadcasting a straightforward promotional message

B) including innocent exaggeration for effect

C) creating emotional appeals for a brand

D) creating subliminal appeals for a brand

E) providing value-added promotions

Answer: B


Chapter LO: 2


12) ________ refers to persuading people to buy goods they had no thought of buying.

A) Sustainable marketing

B) High-pressure selling

C) Customer-driven marketing

D) Redlining

E) Reverse redlining

Answer: B

Difficulty: Easy

Chapter LO: 2


13) High-pressure selling will most likely work in situations that involve ________.

A) valued customers

B) repeat customers

C) service-based sales

D) one-time sales

E) complex products

Answer: D


Chapter LO: 2


14) A company should avoid high-pressure selling if it wants to ________.

A) achieve short-term gains

B) move a previous year's product models

C) comply with local and federal laws

D) build long-term relationships with customers

E) maintain an accurate customer database

Answer: D


Chapter LO: 2


15) A class-action lawsuit was brought against a national burger chain, charging that its food

contributed to the nationwide obesity epidemic. The suit was eventually dismissed, but critics

continue to point out the health dangers of many fast food menu items. From the description, it

can be concluded that these critics are concerned that the fast food industry is ________.

A) using high-pressure sales tactics

B) creating deceptive promotions

C) engaging in deceptive pricing

D) utilizing misleading packaging

E) selling harmful products

Answer: E


Chapter LO: 2



16) Some companies intentionally manufacture their products with materials or components that

will break, wear, rust, or rot sooner than they should. This practice is called ________.

A) perceived obsolescence

B) redlining

C) planned obsolescence

D) puffery

E) reverse redlining

Answer: C


Chapter LO: 2



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