True/False
Indicate whether the sentence or statement is true or
false.
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1.
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In November, some supermarkets
offer consumers a free turkey if the consumers purchase $200 worth of groceries during the month.
This offer is an example of loyalty marketing programs.
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2.
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A company’s news releases
should have a variety of themes so that the public doesn’t become bored and lose interest in
the company’s activities.
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3.
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An advantage of publicity is
that its costs are lower than other forms of promotion.
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4.
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Some companies foster community
relations by giving their employees leave from job responsibilities in order to head large-scale
charitable efforts.
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5.
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Businesses spend more money
promoting to consumers than to other businesses.
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6.
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Advertising demonstrates the
features and benefits of a product or service.
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7.
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Within a specific geographical
area, newspapers appeal to a greater number of people than magazines do.
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8.
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A return of 10 percent for
printed direct mail is usually considered excellent.
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9.
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According to the text, less
than half of adults in the U.S. read the newspaper every day.
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10.
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A business can receive a free
listing of its name, address, and phone number in the White Pages of a telephone
directory.
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11.
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A company’s profit is
equal to its return on investment.
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12.
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Bartering involves the exchange
of goods or services for a mutually agreed-on amount of money.
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13.
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Some companies have products
whose features are very similar to the products of their competitors. Such companies can successfully
compete by adding place utility to their products.
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14.
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Retailers who are in business
in states with minimum price laws are prohibited from using the loss leader technique to attract
customers.
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15.
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The practice of punishing
retailers was outlawed in the Robinson-Patman Act of 1975.
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16.
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E-tailing has increased the
popularity of flexible pricing.
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17.
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Penetration pricing encourages
volume sales which increase a company’s profit margin but also increase its fixed
costs.
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18.
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Outdated technology in the U.S.
may be in the growth stage in other global markets.
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19.
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It is not possible to set a
price too low because a target market will always be attracted to low-cost items.
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20.
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Very little price changes will
be made for products introduced with skimming prices.
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21.
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For businesses, the major
source of data on future economic trends such as inflation rates is the federal
government.
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22.
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A company's existing and
projected sales data are part of the marketing mix.
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23.
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Test marketing occurs in only
one geographic area at a time so that testing results can be measured more easily.
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24.
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Ten percent of all new products
are successful in the consumer marketplace.
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25.
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Consumer panels must be
composed of cross sections of people in order to provide reliable information.
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26.
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Secondary data is easily
obtained on the Internet.
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27.
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The U.S. Bureau of the Census
collects the federal census data once every four years.
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28.
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Most people are more willing to
respond to a personal interview than to a self-administered questionnaire.
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29.
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A questionnaire must be clearly
written so that all respondents interpret the questions in the same way, thus responding to the
questionnaire reliability.
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30.
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The written questionnaire sent
by mail is relatively inexpensive, can reach a large audience, and has a return rate of about 60
percent.
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31.
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Because brand names are so
important, many marketing researchers test market brand names before using them for product
promotion.
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32.
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About one-third of a
product’s retail price pays for the product’s packaging design and
development.
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33.
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A branded product costs more
than an unbranded one because the brand product is advertised more widely.
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34.
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A private brand is required by
law to include the manufacturer’s name on the product.
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35.
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According to public opinion
surveys, Americans will buy products with environmentally friendly packaging even if they have to pay
more for such products.
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Multiple
Choice
Identify the letter of the choice that best completes the statement or answers the
question.
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36.
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The Natural Place is a gift
store selling items that focus on the environment and ecological concerns. Chris coordinates all of
the physical elements in The Natural Place so that the store projects the right image to its
customers. What is Chris directly involved in? a. | personal
selling | c. | publicity | b. | sales
promotion | d. | advertising | | | | |
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37.
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The business often has the
least control over which type of promotion? a. | publicity | c. | personal selling | b. | advertising | d. | sales promotion | | | | |
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38.
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As Marianna opened a new box of
tissue, she noticed a card inside listing prizes she could win if she wrote her name and address on a
piece of paper and mailed it to the tissue manufacturer, who would pull 10,000 names of winners out
of an enormous collection bin. What is the tissue manufacturer promoting sales through?
a. | premiums | c. | product samples | b. | licensing | d. | incentives | | | | |
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39.
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By combining bland CDs with
it's CD Burner Excellent Mega Speed CD recorder is practicing what type of promotion?
a. | incentives | c. | deal | b. | product
sample | d. | sponsorship | | | | |
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40.
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What is a special price
discount that is given as an incentive to wholesalers and retailers? a. | slotting allowance | c. | promotional allowance | b. | product incentive | d. | rebate | | | | |
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41.
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What is one characteristic of
advertising? a. | it always presents its message so well that the customer accepts the
idea presented | b. | it always identifies the name of the business or individual that paid
for it | c. | it always explains a product | d. | it always attempts to create a favorable impression for a
business | | |
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42.
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Businesses that advertise in
newspapers can target their ads to people with particular interests or to those living in a
particular region. Why can businesses do this targeting? a. | newspapers have a variety of high-interest, reader-attracting
features | b. | newspaper advertising costs are relatively low, so additional money
can be spent on market research | c. | newspaper circulation is documented and
verifiable | d. | newspaper ads can be adapted to the target
market | | |
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43.
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According to the text, what is
one of the most important considerations in direct mail advertising? a. | the timing of the mailing | b. | the accuracy of the mailing
list | c. | the choice of the advertisement’s
format | d. | the cost of the mailing | | |
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44.
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In which type of print medium
is an advertisement’s life the shortest? a. | trade
magazine | c. | directory | b. | poster | d. | newspaper | | | | |
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45.
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Which printed media is found in
98 percent of American homes? a. | directory | c. | newspaper | b. | monthly magazine | d. | weekly magazine | | | | |
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46.
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What industry was adversely
affected by price wars? a. | the fast-food
industry | c. | the oil industry | b. | the pharmaceutical
industry | d. | the home scanner industry | | | | |
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47.
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What does the law of
diminishing marginal utility state? a. | a change in the price of some of
life’s basic necessities will have little effect on demand | b. | consumers will buy only a limited amount of a product no matter how low its
price | c. | when substitutes are available, consumers’ use for a particular
product diminishes | d. | the effect of a price change is relative
to a customer’s income | | |
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48.
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What is the law which prohibits
companies from engaging in price fixing? a. | Sherman Antitrust
Act | c. | Non-Discrimination Act | b. | Robinson-Patman
Act | d. | Federal Trade Act | | | | |
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49.
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What is a firm's percentage of
the total sales volume generated by all competitors in a given market? a. | planned sales | c. | market share | b. | sales revenue | d. | return on investment | | | | |
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50.
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How does most price planning
begin? a. | cost and expense analysis | c. | sales projection | b. | competition analysis | d. | review of consumer needs | | | | |
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51.
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What is the contract term 3/10
net 30 extra 60 an example of? a. | special
services | c. | discount pricing | b. | psychological
pricing | d. | seasonal discount | | | | |
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52.
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A stationery and gift store has
a sale on July 5th of all small American flags and of red, white, and blue paper goods. Customers are
given 50 percent off the price of the goods. What is this an example of? a. | promotional discount | c. | cost-plus discount | b. | seasonal discount | d. | cash discounts | | | | |
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53.
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In what product lifecycle stage
is a product in when a product’s marketers are looking for new market segments?
a. | decline | c. | introductory phase | b. | growth
period | d. | maturity | | | | |
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54.
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What is every day low pricing a
part of? a. | multiple pricing | c. | seasonal discount
pricing | b. | psychological pricing | d. | price lining | | | | |
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55.
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What is the most temporary of
the psychological pricing techniques? a. | promotional | c. | multiple | b. | odd-even | d. | prestige | | | | |
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56.
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What is the primary focus of
marketing research? a. | obtaining information about
customers’ behavior, opinions, and plans | b. | obtaining information about a business’s current success in satisfying
its customers | c. | determining the effectiveness of a business’s
advertising | d. | analyzing a business’s management
and operations | | |
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57.
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What is an example of a group
that specializes in marketing research? a. | Environmental Protection
Agency | b. | Consumer Product Safety Commission | c. | Federal Trade Commission | d. | General Services
Administration | | |
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58.
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In what area of marketing
research does Arbitron specialize? a. | media
research | c. | market research | b. | test
marketing | d. | attitude research | | | | |
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59.
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Ishmael studies the behaviors,
characteristics, and buying habits of his company’s target markets. What is Ishmael involved
in? a. | sales research | c. | sales forecasting | b. | market analysis | d. | test marketing | | | | |
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60.
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What is a primary public
concern about marketing research? a. | makes a product too
expensive | b. | takes time away from product quality
improvement | c. | invades consumers’ privacy | d. | slows the development of new products | | |
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61.
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What is the fastest and most
cost-effective form of primary source research? a. | experiment | c. | observation | b. | interview | d. | questionnaire | | | | |
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62.
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What are a business’s own
sales figures and customer records sources of? a. | external secondary
data | c. | internal secondary data | b. | internal primary
data | d. | external primary data | | | | |
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63.
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Mystery shopping uses what type
of method for collecting primary data. a. | survey | c. | experimental | b. | observation | d. | test marketing | | | | |
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64.
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On a survey questionnaire, what
type of question is most often used as a filter question? a. | a two-choice question | c. | a rating scale | b. | a level of agreement scale | d. | a multiple choice question | | | | |
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65.
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Which survey method has been
limited due to new laws? a. | questionnaire | c. | focus group interview | b. | personal interview | d. | telephone interview | | | | |
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66.
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A U.S. oil company once used a
star to identify its products and itself. What was this star? a. | brand name | c. | brand mark | b. | trade
character | d. | trade symbol | | | | |
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67.
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Printed on the cartons of Ben
and Jerry's ice cream are messages promoting saving the rain forests. This is an example of what type
of packaging? a. | aseptic packaging | c. | environmental
packaging | b. | cause packaging | d. | contemporary
packaging | | | | |
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68.
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What does a brand name or mark
become when it is legally registered? a. | licensed
brand | c. | trade name | b. | trademark | d. | private brand | | | | |
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69.
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What is a product’s
success or failure in the marketplace largely determined by? a. | the quality of the product | b. | customer reaction to the product’s
package | c. | customers’ perceived value of the product’s label
information | d. | the effectiveness of the product
advertising | | |
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70.
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Which government body is
responsible for enforcing the 1990 Nutrition Labeling and Education Act, which protects consumers
from deceptive labeling? a. | Consumer Product Safety
Commission | b. | Federal Trade Commission | c. | Food and Drug Administration | d. | Justice Department | | |
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Matching
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Match each item with the
correct statement. a. | shopper | d. | transit
advertising | b. | media plan | e. | promotional advertising | c. | specialty media | | | | |
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71.
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printed posters on subways,
buses, and trains
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72.
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advertising meant to inform
customers about the existance of a product
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73.
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a special newspaper containing
no editorial content
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74.
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useful items imprinted with an
advertiser’s name
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75.
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opportunity to present a
compelling message to a target market
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Match each item with the
correct statement. a. | price | d. | coerce | b. | price fixing | e. | subjective price | c. | break-even point | | | | |
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76.
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to force or to persuade through
threats or intimidation
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77.
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consumers’ perception of
the value of a product
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78.
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the value of money or of a
nonmonetary item placed on a good or service
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79.
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position in which the company
does not make or loss money
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80.
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an agreement between companies
to set a price, it is illegal due to monopolistic practices
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Match each item with the
correct statement. a. | allowance | d. | skimming pricing | b. | rebate | e. | psychological pricing | c. | markup | | | | |
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81.
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techniques that appeal to a
target market’s perceptions and buying habits
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82.
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a partial refund from the
manufacturer on the cost of a product
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83.
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exchange of an old product
model for a price reduction on a new model
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84.
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a percentage expressing the
difference between the price of an item and its cost
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85.
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method for encouraging
trendsetting customers to purchase a product
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Match each item with the
correct statement. a. | generic | d. | cause packaging | b. | package | e. | brand name | c. | brand dilution | | | | |
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86.
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too many products that confuse
customers can result in this
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87.
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a word, letter, or number group
that identifies a product and that can be spoken
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88.
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a product’s physical
container or wrapper
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89.
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describes a product that does
not have a brand name
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90.
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when a company agrees to
promote a program to benefit the common good
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