Download True and False - Henry County Schools

2002 Marketing
True and False. Mark your answer on the scantron form by selecting “A” if the answer is True or “B” if the answer is False.
1. Decisions to change one of the four marketing-mix
a. True
b. False
elements seldom affect any of the other elements.
2. The fundamentals of marketing do not apply to
a. True
b. False
international marketing in the same way they apply to
domestic marketing.
3. Branding is useful for differentiating commodities.
b. False
a. True
4. A manufacturer of pocket-sized horoscope computers that a. True
b. False
charges a different price to a retailer in Montana than it
charges a retailer in Kentucky is using uniform delivered
pricing.
5. The Robinson-Patman Act prohibits all forms of price
a. True
b. False
discrimination.
6. When D'Lynn used a toll-free phone number and
a. True
b. False
purchased home exercise equipment she saw advertised
on television, it was an example of direct selling.
7. The newspaper announcement that Shaw Industries will
a. True
b. False
donate $10,000 to help a family injured in a head-on
accident with a drunk driver is an example of positive
public relations.
8. A good way to make numerical facts in a complex written a. True
b. False
report easy for readers to grasp is to present the facts in an
illustrated format.
9. Businesses often prefer to take inventory at the time of
b. False
a. True
year when stock is at its lowest point.
10. Most of the products sold at neighborhood stores are
a. True
b. False
considered to be convenience goods, which means that
they are sold at certain times of the year.
11. As prices decrease, consumer demand always stays the
a. True
b. False
same.
12. One way a business can try to increase its market share is
b. False
a. True
by promoting its quality service.
13. To compute net profit, operating expenses are subtracted
b. False
a. True
from gross profits.
14. Brand or trade names are used primarily to identify a
a. True
b. False
retailer.
15. A print medium that is low in cost, has a short lead time,
a. True
b. False
and usually covers an entire metropolitan area are
magazines.
Multiple Choice. Mark your answer by selecting the appropriate letter on your scantron form.
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2002 Marketing
16. A home cleaning service that wished to extend the breadth
of its marketing concept should
a. consider the
needs of the next as
well as the present
generation of home
owners.
b. clean homes at a
reasonable price and
assume home
owners will discover
its existence through
word-of-mouth
advertising.
c. re-emphasize its
commitment to
ethical behavior.
17. For an American firm engaged in international marketing,
a joint venture
a. is a type of
leasing arrangement.
b. is a type of
licensing.
c. is a reciprocal
arrangement with a
foreign supplier.
18. A company is most likely to use a market aggregation
strategy when
a. market potential
is declining.
b. the company is
operating in a highly
competitive market.
c. the product is
highly
differentiated.
19. In the strategy of _____, two or more different groups of
potential customers are identified and a separate
marketing mix is developed to reach each segment.
20. Which one of the following businesses would be most
likely to use a past sales analysis to forecast sales?
a. undifferentiated
marketing
c mass marketing
21. For which of the following situations is the observation
method of gathering research data best suited?
a. Estimating the
number of people
who will attend a
Bruce Springsteen
concert
22. Which of the following is the best example of a
convenience good?
23. In a company like General Mills where many different
brands and types of products are marketed, the executive
responsible for planning a complete marketing program
for one brand or a small group of similar products is
called a _____ manager.
24. The subdivision of consumer goods into various
categories is based on
a. Leather driving
gloves
a. venture
b. multiplesegment target
marketing
b. An art gallery that
specializes in
finding and selling
the work of new
artists
b. Determining
how many packets
of ketchup the
average person
uses on a regular
order of fries
b. Microsoft works
software
b. brand
b. types of
products.
a. A publisher of a
new ecologyoriented magazine
for children
a. price.
d. recognize that
its market includes
not only home
owners but also
environmentalists
who want to
protect the earth
from harsh
chemicals.
d. is a partnership
arrangement
between the
american firm and
a foreign company.
d. the company
wants to reduce
production and
marketing
expenses.
d. market
aggregation
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e. create more form
utility.
e. requires the
standardization of
the marketing
program.
e. the firm is very
customer oriented.
e. market
differentiation
c. A mobile home
dealer in an
economically
depressed area
d. A hospital
pharmacy in an
efficiently operated
hospital
e. A tourist hotel in
Cairo, Egypt, that
features cruises
down the Nile River
c. Finding out what
radio stations people
listen to when they
are stuck in a traffic
jam
d. Determining how
many people
accessed a company
through its web site
e. Estimating the
number of people
who borrow books
from a library
c. A pair of tennis
shoes
c. commercializing
d. A bic pen
d. field
e. A tombstone
pizza
e. marketing
c. how the goods
were manufactured.
d. consumer
buying behavior.
e. how the goods
will be distributed.
2002 Marketing
25. The set of all products offered for sale by a company is
called its
26. Under market conditions of perfect competition,
27. A(n) _____ is that quantity of output at which total
revenue equals total costs, assuming a certain selling
price.
28. _____ are reductions from the list price offered to buyers
in payment for marketing functions they will perform.
29. Which of the following statements about telemarketing is
true?
b. product mix.
c. marketing mix.
d. product line.
a. buyers are
ignorant.
b. product
differentiation is
used excessively.
b. Break-even
point
c. the seller
controls the selling
price.
c. Expected output
d. there are no
directly competing
products.
d. Average revenue
a. Markdowns
b. Cash discounts
c. Trade discounts
a. There are no state
or federal
regulations
governing
telemarketing
operations.
a. All ads do not
have the same
objective.
b. Telemarketers
never use cold
canvassing.
c. Turnover for
telemarketers is
extremely high.
d. Oligopolistic
discounts
d. Telemarketers are
best suited to sell
tangible products
like clothing.
e. Quantity
discounts
e. The popularity of
telemarketing has
declined
dramatically during
the past decade.
c. It is not possible
to determine who
is exposed to a
particular ad.
d. All of the
elements of the
marketing mix are
intertwined.
e. It is hard to
determine when an
ad influences
consumers.
c. Internet
d. Newspaper
e. Radio
c. Newspapers
require ads to be
submitted several
weeks before they
are run.
c. Concern about
water and air
pollution has
increased.
c. marketing mix
d. Cost per person
reached with a
newspaper is
relatively high.
e. Newspapers
accept only four
different sizes of
commercial
advertising.
e. People are more
willing to pay for
convenience.
a. Equilibrium price
31. Which advertising medium is particularly popular with
companies selling products that involve extensive
decision-making?
32. Given the different types of advertising media, why would
the operator of a car-towing service determine that
newspapers were an inappropriate advertising medium?
a. Yellow pages
b. Human
motivation is too
complicated to be
explained by a
single factor.
b. Billboards
a. Newspapers are
not geographically
selective.
b. The life of a
newspaper is
relatively short.
33. Which of the following statements describes a
demographic factor that is likely to affect the marketing of
homes in retirement communities?
a. Congress
amended the
consumer credit
protection act.
a. commercial
information
environment
a. buyers
b. Interest rates for
homebuyers are
below 10 percent.
30. Which of the following does NOT explain why it is
difficult to measure the sales impact of an advertisement?
34. The _____ is composed of family, friends, and
acquaintances who directly or indirectly provide
information about products.
35. Which of the following audiences do exhibitors at trade
shows want to reach?
36. Which of the following is a permanent type of employee
publication that outlines company rules, procedures, and
benefits?
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e. strategic
position.
e. none of the
above is true.
a. product breadth.
a. report
e. Marginal revenue
b. vendors
d. More than onequarter of the u.s.
population is at
least 50 years old.
e. culture
d. social
information
environment
c. sellers
d. suppliers
b. bulletin
c. manual
b. promotional mix
d. newsletter
2002 Marketing
37. Mike has been with the XYZ Company for five years.
Sarah has been with them for one year. Assuming Mike
and Sarah are assigned to sales territories with similar
potentials, their sales quotas should
a. not be the same, as
quotas should be based on
individual performance.
b. be the same, as quotas
should be based on the
size of the territory.
c. be the same, as sales
quotas should be based on
the number of potential
customers.
38. Which of the following is NOT product information that
could be obtained from a manufacturer’s representative?
39. On which of the following products would you expect to
find safety information?
40. The __________ method of prospecting involves asking
the dominant member of a group to use or to endorse your
products.
41. _______________ is/are often a benefit to businesses of
following up with customers.
42. Whether you are selling a good or a service, it
___________ to involve the customer actively in the sales
presentation because
.
a. Credit terms
b. Technical data
c. Service information
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d. not be the same, as
quotas should be
appropriate to the
territory and the
salesperson.
d. Operating instructions
a. paper
b. clothing
c. spray paint
d. books and magazines
a. referral
b. endless chain
c. bird dogs
d. center of influence
a. Increased profits
b. Increased satisfaction
c. Increased trust
d. Increased knowledge
a. is important;
customer involvement
increases the chances of
closing the sale
b. is not important; it is
not possible to involve the
customer when selling a
service
c. is not important; it is
not necessary to involve
the customer as long as all
facts are presented
43. Sales managers who can easily sell customers additional
items they had not originally planned to buy are using
selling.
44. Which of the following is a guideline to follow in closing
sales?
45. The salesperson should pause before answering a
customer’s objections in order to
46. If a business does NOT carry the specific product
requested by a customer, the salesperson should explain
the situation and
47. When conducting a probing process, the most appropriate
type of question to ask is a(n)
question.
48. Performing occasional favors for customers is a way that
might help a sales representative to
49. Sales representatives should determine what buying
decisions customers need to make by
the
customers’ comments.
50. Customers are NOT aware of their buying behaviors.
a. high pressure
b. inappropriate
c. substitute
d. is important; the
salesperson cannot
translate features into
benefits without customer
involvement
d. suggestion
a. Use negative closes
c. Try to oversell
d. Always be closing
a. show empathy for the
customer.
a. suggest an alternative
item based on the
salesperson’s preferences.
a. personal
b. Leave the customer
undecided
b. get the customer’s
full attention.
b. tell the customer where
he/she could find the
product.
b. sensitive
c. delay dealing with the
objection. .
c. tell the customer that
the product is not very
good.
c. open-ended
d. let the customer see
that he/she is upset
d. recommend an
alternative, but
equivalent item.
d. closed-ended
a. build a customer base.
b. guarantee satisfaction.
c. pay attention.
d. handle a problem.
a. ignoring
b. recording
c. talking over
d. listening to
a. This statement is true;
customers do not know
the real reasons they
purchase.
b. This statement is true;
sales representatives are
responsible for
determining their buying
motives.
c. This statement is
false; customers may be
aware or unaware of
their buying motives.
d. This statement is false;
buying motives change
too quickly for customers
to know them.
2002 Marketing
51. A business that lowers its prices in order to compete with
other similar businesses is being influenced by
factors.
52. When the federal government deregulates certain
industries, causing changes in levels of competition, this
is an example of
risk.
53. A disadvantage to businesses of buying goods for resale
from foreign manufacturers is that
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a. external
b. customer
c. social
d. internal
a. natural
b. marketing
c. human
d. economic
a. labor cost may be less.
b. unique items can be
purchased.
c. deliveries have a long
lead time.
54. A seasonal discount entitles a business to a 15 percent
reduction in the price of Christmas decorations. What
would be the final cost to the business for an order of
Christmas items priced at $1,200?
55. When selecting appropriate products for a discount
business, the primary consideration for the buyer should
be
56. Which of the following is often one of the first steps in the
buying process?
57. Obtaining goods that will satisfy the needs and wants of
the firm’s customers is a function of
58. What might be the result if a business allocates most of its
advertising budget to promoting a few major sales events?
a. $995
b. $1,020
c. $1,047
d. some foreign
goods are status
symbols.
d. $1,195
a. price.
b. service.
c. vendor.
d. distribution.
a. Select vendors
b. Prepare purchase order
c. Evaluate goods
a. selling.
b. purchasing.
c. marketing.
d. Identify customer
needs
d. advertising.
a. Most sales will occur
during that time.
c. Competitors will
increase their advertising.
59. A manufacturer mails free cereal samples to consumers
and provides businesses with colorful materials for instore displays of the product. This is an example of which
of the following?
60. How can a company’s past advertisements contribute to
promotional planning?
61. What factor is influencing a business’ decision to promote
candy and flowers in the month of February?
62. The best form of promotional media for a business to use
to advertise a daily special sale would be
advertisements.
63. An understanding of the characteristics of good publicity
can help a business to
a. Use of cooperative
advertising
b. Not enough funds for
weekly advertising will
be available.
b. Coordination of
promotional activities
c. Use of institutional
advertising
d. The business will not
likely qualify for
cooperative funds.
d. Selection of channels of
distribution
a. Type of display
b. In preparing future
ads
b. Reasonable price
c. In predicting sales
increases
c. Exceptional value
d. In maintaining the
advertising budget
d. Season of the year
a. newspaper
b. television
c. magazine
d. directory
a. use publicity most
effectively.
b. eliminate the costs of
publicity.
c. make publicity
believable to the public.
64. Why is it important for a business to coordinate its
promotional and selling activities?
65. A business known for expensive, high quality products
has obtained some lower quality items. Management
wants to advertise the products in the newspaper without
damaging the business image. The copy in the ad should
a. To motivate
salespeople
a. focus on the business’
image.
b. To help control
expenses
b. be directed to an
appropriate market.
c. To increase sales
d. control the way in
which publicity is
presented.
d. To decrease consumer
demand
d. say that the products
are of a lower quality.
a. In eliminating risk
c. describe the products as
high quality.
2002 Marketing
66. The main purpose of pretesting a promotional campaign is
to help the advertiser to
67. Local businesses are often able to obtain promotional help
from national manufacturers in the form of
funds.
68. Which of the following is an example of publicity?
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a. increase company sales.
a. trade credit
a. Direct mail
b. select products to
advertise.
b. cooperative
advertising
c. choose a target market.
c. Billboard
c. Wide variety, Deep
assortment
d. Company TV
commercial
d. Wide variety, Shallow
assortment
c. operating
d. eliminate any
weaknesses.
d. development
69. The business manager decided to carry only two types of
products but to offer a large selection of each. This is an
example of what type of product mix?
70. Which of the following is a way by which product lines
can be set up?
71. A business’ physical building is an important factor that
affects its public
72. A company that was going out of business marked down
its entire stock by 50 percent. If the value of the stock
was $345,000 and it was all sold at the markdown price,
how much income did the business receive from the sale?
73. An item that cost $46.40 sells for $58.00. What is the
markup percentage based on the selling price?
74. Which of the following is a circumstance that must exist
in order for the seller to be charged with price
discrimination under the Robinson-Patman Act?
a. Narrow variety, Deep
assortment
b. Company news
release
b. Narrow variety,
Shallow assortment
a. Width
b. Depth
c. Trading-up
d. Customer group
a. service.
b. performance.
c. image.
d. contributions.
a. $172,500
b. $173,000
c. $177,000
d. $182,000
a. 2 percent
b. 20 percent
c. 25 percent
d. 80 percent
a. The business is engaged
in marketing services.
b. The business is
engaged in interstate
commerce.
75. Unit pricing is a pricing technique frequently used by
76. Many businesses order products well in advance of the
season in which they will sell them. This is an example of
how marketing affects _______ utility.
77. Which of the following is a source of cash that flows into
a business?
78. Which of the following is an example of a company
objective that might be developed by top management?
79. Which of the following accounts should NOT be included
in a sales expense budget?
80. Why does a business set up budgets that estimate its
income and operating expenses?
81. A South American marketer of bananas wants to sell large
quantities of bananas in the United States. The channel of
distribution this business would be most likely to use
would be producer to
82. Which of the following is an example of market
segmentation by life stage?
a. barber shops.
a. time
b. medical offices.
b. possession
c. The business charges
different customers the
same price for the same
product.
c. boutiques.
c. form
d. The business spaces out
its price discrimination
over a long period of
time.
d. supermarkets.
d. place
a. Accounts payable
b. Salaries
c. Taxes
d. Interest
a. Weekly sales meetings
b. Improving the
collection process
b. Travel expenses
c. Maintaining the billing
cycle
c. Selling aids
d. Maintaining or
increasing market share
d. Sales commissions
b. To help control
spending
b. wholesaler to
consumer.
c. To increase production
d. To enable the business
to offer credit
d. wholesaler to retailer
to consumer.
b. College-educated
people
c. Middle-aged
individuals
a. Sales forecast
a. To increase sales
a. consumer.
a. Single adults
c. agent to consumer.
d. Persons with a high
income
2002 Marketing
83. How does the marketing function of selling benefit
society?
a. Selling determines to
whom to sell
84. One advantage of a sole proprietorship is that it
a. must pay high taxes.
85. Which of the following statements is true about strategic
planning?
86. The extent of the activities that are required to run a
business depends upon the
87. An example of an operating expense that might be part of
a business’ profit-and-loss statement is
88. Which of the following is the net sales figure for a
business that had yearly gross sales of $3,415,750 and
gave customers discounts totaling $652,325?
89. If a business’ sales forecast is too low, the result may be
that the business
90. A business has experienced steady growth in sales of 5
percent each year over the last five years. If sales for the
current year are $500,000, what dollar amount of increase
in its sales potential could the business realistically expect
over the next two years?
91. A business predicting the market demand for pre-school
toys would most likely estimate the number of
92. Sales for a new company were $2 million the first year
and $2.75 million the second year. The first year’s net
income was 2.5 percent of sales, and the second year’s net
income was 2.2 percent. What does this percentage
indicate?
93. Customers who have questions or complaints that are
more complicated than the sales staff can handle usually
are referred to
94. A time-management technique that can lead to closure on
a major project is
95. The market’s way of rationing limited resources, goods,
and services to consumers in a market economy is through
96. The role of the U.S. Customs Service in foreign trade is to
97. Which of the following is characteristic of a business
cycle in which there is a short money supply?
98. A reason our gross domestic product continues to grow is
because
c. Selling aids with
employment
a. It involves planning of
the next three to five
years.
a. business’ location.
b. Selling creates a
relationship with
customers
b. has limited liability for
debts.
b. It involves short-term
planning for the next six
months.
b. business’ profitability.
c. can obtain unlimited
capital.
c. It is a supervisory
technique for improving
employee performance.
c. size of the business.
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d. Selling affects
demand for a good or
service
d. is easy to start and to
control.
d. It is used primarily by
departments that do not
meet company goals.
d. state of the economy.
a. sales revenue.
b. cost of goods.
c. payroll.
d. inventory.
a. $2,451,570
b. $2,635,250
c. $2,763,425
d. $2,826,345
a. will purchase too much
stock.
a. $50,000
b. will need to lower its
prices.
b. $51,250
c. may be short of
working capital.
c. $52,500
d. may budget too much
for promotion.
d. $55,000
a. current day care
centers.
a. Actual net income from
sales is decreasing.
b. children in that age
group.
b. Sales were less
profitable the second
year.
c. stores selling those
items.
c. Profit per sale increased
during the second year.
d. parents with disposable
income.
d. The percent of net
income will increase in
the third year.
a. the rack jobber.
b. the firm’s president.
c. managers.
d. co-workers.
a. setting a time limit for
the project.
a. prices.
b. breaking large tasks
into smaller ones.
b. profits.
c. organizing the work
area.
c. incentives.
d. stopping periodically to
review progress.
d. laws.
a. control imports.
b. regulate exports.
c. provide information
about foreign markets.
a. High unemployment
b. Low interest rates
c. Low tax levels
a. profit margins continue
to increase.
b. more people are
joining the labor force.
c. production costs have
been reduced.
d. ensure a balance
between imports and
exports.
d. High levels of
borrowing
d. the population has
become more mobile.
2002 Marketing
99. A manager who is free to plan and to create the
company’s advertisements, displays, and other types of
promotions has
in the job.
100. Which of the following is a way in which competition
benefits consumers?
a. low depth & low scope
b. high depth & low
scope
c. low depth & high
scope
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d. high depth & high
scope
a. Higher prices
b. Fewer customer
services
c. Better quality
goods/services
d. Fewer businesses to
choose from