True/False
Indicate whether the sentence or statement is true or
false.
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1.
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Advertising demonstrates the
features and benefits of a product or service.
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2.
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Within a specific geographical
area, newspapers appeal to a greater number of people than magazines do.
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3.
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A return of 10 percent for
printed direct mail is usually considered excellent.
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4.
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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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5.
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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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6.
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A virtual advertising agency
provides Web site development but does not provide advertising copywriting.
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7.
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A company’s profit is
equal to its return on investment.
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8.
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Bartering involves the exchange
of goods or services for a mutually agreed-on amount of money.
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9.
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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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10.
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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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11.
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Online commerce has increased
the popularity of flexible pricing.
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12.
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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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13.
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Outdated technology in the U.S.
may be in the growth stage in other global markets.
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14.
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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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15.
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Very little price changes will
be made for products introduced with skimming prices.
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16.
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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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17.
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A company's existing and
projected sales data are part of the marketing mix.
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18.
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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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19.
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Ten percent of all new products
are successful in the consumer marketplace.
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20.
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Consumer panels must be
composed of cross sections of people in order to provide reliable information.
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21.
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Secondary data is easily
obtained on the Internet.
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22.
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The U.S. Bureau of the Census
collects the federal census data once every four years.
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23.
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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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24.
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A manicure, a karate lesson,
and a pencil are all products.
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25.
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Test marketing in specific
geographic areas is an indispensable (or absolutely necessary) part of the product development
process.
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26.
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Ready Writers has just
introduced a ballpoint pen that is very similar to older pen models except that the new pen’s
casing comes in a variety of fashion colors. Despite its similarity to existing products, it is
likely that the new pen will be sold successfully at a 10 percent higher price than the older
products.
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27.
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Technical problems are detected
at the idea stage of new product development.
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28.
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Lil’ Stampers is a store
that features 527 varieties of signature, business, and novelty stamps. The store also sells inked
stamp pads in 64 different colors. Thus, the store offers its customers great product
depth.
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29.
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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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30.
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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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31.
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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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32.
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A private brand is required by
law to include the manufacturer’s name on the product.
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33.
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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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34.
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A company that pays a slotting
allowance is participating in a trade promotion activity.
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35.
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Coupons are certificates that
entitle customers to cash discounts.
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36.
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The actors on a TV crime drama
drank coffee from paper cups with the Starbucks Coffee logo clearly visible. This is a promotion form
called product placement.
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37.
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A full-page, full-color display
ad in a national magazine has the highest production costs of any type of media
advertisement.
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38.
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During special sales, the
departments in some large department stores offer graduated discount percentages based on the total
amount of merchandise a customer buys from the department in one shopping visit. This discount policy
is known as cumulative.
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39.
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When a consumer wishes to
purchase a product and “price is no object,” that consumer’s demand is
inelastic.
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40.
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Martha Sue’s Bakery sells
doughnuts for $.59 apiece or three for $1.50. This is an example of multiple unit
pricing.
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41.
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Paul likes to snack on granola
bars, but he doesn’t really care what brand of bar he eats. Therefore, Paul’s demand for
granola bars is inelastic.
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42.
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Price lining makes it easier
for salespeople to demonstrate to a customer the advantages of better quality items.
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43.
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The price of a product will
often establish the image of the company that created the product.
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44.
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A promotional discount is a
type of consumer discount.
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45.
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A product line is a group of
closely related products manufactured or sold by a business.
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46.
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Maturity is the point in a
product’s life cycle at which a company will try to distinguish its product from the
competition by redesigning or reformulating the product.
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47.
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A debit card is like a credit
card in that it allows customers to charge purchases during a month and pay them in full within 30
days after being billed.
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48.
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Every car purchased in the U.S.
is sold under a manufacturer brand.
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49.
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Oohs and Ohs is a gift store
that sells a variety of items including clocks, cards, novelty clothing, and crystal. Oohs and Ohs
offers its customers product width.
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50.
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The product life cycle stage at
which a company is least likely to earn a profit is the decline stage.
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51.
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Consumers who want consistent
product quality and a price that is somewhat lower than the price for manufacturer brands will be
attracted most often to generic 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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52.
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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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53.
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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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54.
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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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55.
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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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56.
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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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57.
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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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58.
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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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59.
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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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60.
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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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61.
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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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62.
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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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63.
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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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64.
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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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65.
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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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66.
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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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67.
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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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68.
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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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69.
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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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70.
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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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71.
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During what product lifecycle
stage do companies spend a great deal of time and money fighting off competition? a. | maturity | c. | introduction | b. | growth | d. | decline | | | | |
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72.
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During which product
development step do companies consider a product’s potential sales, costs, and production
requirements? a. | introducing the product | c. | testing the
product | b. | evaluating customer acceptance | d. | developing a business
proposal | | | | |
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73.
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During which key step of the
new product development process do many companies - particularly food and drug manufacturers -
experience long delays? a. | product
testing | c. | product development | b. | customer acceptance
evaluation | d. | product introduction | | | | |
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74.
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What is the least profitable
stage of a product’s life cycle? a. | decline | c. | maturity | b. | introduction | d. | growth | | | | |
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75.
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During which step of new
product development do companies focus on such product characteristics as market size, marketing
impact, and effect on the company image? a. | idea
screening | c. | product testing | b. | idea
generation | d. | customer acceptance evaluation | | | | |
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76.
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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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77.
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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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78.
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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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79.
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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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80.
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What is the media form that
reaches 96 percent of all people over age 11? a. | radio | c. | newspapers | b. | magazines | d. | TV | | | | |
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81.
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What is the type of promotion
that involves short-term activities, offers customers an incentive to make a purchase, and can be
used with wholesalers, retailers, and consumers? a. | publicity | c. | advertising | b. | personal selling | d. | sales promotion | | | | |
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82.
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Teenie Beanie Jelly-Wellies are
popular small candies. Currently, sales of the Jelly-Wellies are increasing rapidly, and the cost of
making the candies is easily absorbed by the volume. In what stage in the product life cycle is
Jelly-Wellies candy? a. | growth | c. | decline | b. | introduction | d. | maturity | | | | |
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83.
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What is the difference between
an item’s retail price and its cost? a. | net profit | c. | net price | b. | markup | d. | list price | | | | |
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84.
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In what product lifecycle stage
is a product in when the product’s marketers are looking for new market segments?
a. | decline | c. | introductory phase | b. | growth
period | d. | maturity | | | | |
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85.
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Some marketers set prices based
on what they believe is the consumer’s perceived value of the item. What pricing are such
marketers using? a. | prestige pricing | c. | going-rate
pricing | b. | cost-oriented pricing | d. | demand-oriented
pricing | | | | |
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86.
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The prototype of the product is
made during which product development stage? a. | screening
ideas | c. | generating ideas | b. | testing the
product | d. | developing the product | | | | |
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87.
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When a company makes a sincere
effort to find a new use for a declining product, what is this considered? a. | modernizing the product | c. | expanding the product line | b. | recommitting to the product line | d. | licensing the
product | | | | |
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88.
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What is a manufacturer brand
also known as? a. | generic brand | c. | regional brand | b. | private brand | d. | national brand | | | | |
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