Introduction to Business Test

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1. Philippe owns a store that sells lampshades. The process of receiving money in
return for lamp shades is ______.
A. Marketing
B. Place utility
C. Exchange
D. Time utility
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2. The location of a coffee shop franchise in a mall creates _____ utility.
A. place
B. ownership
C. form
D. time
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3. As the result of a hurricane heading toward the coastal area of North
Carolina, residents rushed to purchase plywood to cover their windows. Retailers
who carried plywood were operating in a ______ .
A. mixed economy
B. seller’s market
C. buyer’s market
D. regulated market
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4. Maria is campaigning for city council and talks with prospective voters in her
ward about their concerns. Maria is engaged in ________ marketing.
A. person
B. place
C. cause
D. idea
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5. The Tour of Hope is a cross-country bike tour designed to raise awareness
about cancer clinical trials. Dansani bottled water is one of the sponsors, which
enables the company to utilize ______ marketing.

A. organization
B. event
C. place
D. cause
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6. Which of the following is the first step in developing a marketing strategy?
A. Identify a target market
B. Develop the right product
C. Decide how to promote the product
D. Implement the appropriate distribution system
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7. Which of the following is both a consumer product and a business product?
A. Clothes
B. Steel
C. Magazine
D. Computer
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8. An organization’s ___________ is the group of potential customers toward whom
is directs its marketing efforts.
A. marketing demographic
B. target market
C. market segment
D. product market
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9. Companies use ________to focus on a specific consumer market by combining
product, distribution, promotion, and pricing strategies.
A. consumer behavior
B. a marketing mix
C. a marketing concept
D. market segmentation
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10. Data collected for the first time through observation or surveys is ________.
A. secondary data
B. external data
C. primary data
D. a marketing information system
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11. Census data are _____ and _______ data for marketing researchers.
A. external; primary
B. internal; primary
C. internal; secondary
D. external; secondary
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12. A company’s financial records are a source of _______and _______ data for
marketing researchers.
A. external; primary
B. internal; primary
C. external; secondary
D. internal; secondary
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13. All of the following are internal sources of data EXCEPT ___________.
A. company product sales
B. company product inventory
C. competitor’s sales
D. unpaid bills
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14. Which of the following is a drawback to using Census and other government
data sources?
A. Accessing government data is expensive
B. Government data can become obsolete quickly
C. Accessing government data is difficult
D. Government data sources are unreliable
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15. Luke works as a marketing researcher and goes online to obtain information
from government publications for census data and demographics. What type of data is
Luke researching?
A. Internal data
B. Secondary data
C. Peripheral data
D. Primary data
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16. Allen and Erica assembled a group of 12 people and had the group evaluate
several promotional campaigns. Allan and Erica collected data from a(n) _________.
A. focus group
B. survey
C. observational source
D. secondary source
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17. The oldest form of segmenting consumer markets is based on _________.
A. geography
B. demographics
C. end-use
 D. psychographics
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18. The common basics for segmenting consumer markets include all the following
EXCEPT ________ factors.
A. psychographic
B. geographic
C. demographics
D. end-use
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19. The most common form of consumer market segmentation is based on __________.
A. end-use
B. geography
C. product-related
D. demographics
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20. Which of the following is an interpersonal determinant of consumer behavior?
A. Perceptions
B. Attitudes
C. Family influences
D. Learned experiences
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21. Charlotte wants to purchase a new printer for her computer. She decides to
stick with the brand she knows because of her experience with its efficiency and
reliability. This is an example of a(n) ____________.
A. interpersonal determinant
B. personal determinant
C. buying behavior
D. recognition of a problem or opportunity
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22. Approximately how much more does it cost to attract one new customer than to
keep an existing one?
A. Twice as much
B. Three times as much
C. Five times as much
D. About the same
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23. A university offers alumni a special Visa card with the university’s logo
printed on the front. Each time the cardholder uses the card, the university
receives a small percentage of the amount charged. This is an example of _________.

A. Cobranding
B. Comarketing
C. A frequency marketing program
D. An affinity program
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24. A bundle of physical, service, and symbolic attributes designed to satisfy
customer wants is called ________.
A. the marketing mix
B. packaging
C. a product
D. a brand name
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25. A marketer focuses on a product’s ________.
A. physical characteristics
B. service attributes
C. symbolic attributes
D. benefits
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26. All of the following statements are correct EXCEPT _______.
 A. services are products too
B. customer service is important, but it isn’t part of a product
C. most products combine goods with services
D. marketers should focus on buyer solutions and product benefits
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27. Consumer products are usually classified as ________.
A. expense items and capital items
B. convenience products and expense items
C. convenience products, shopping products, and specialty products
D. capital items, convenience items, and specialty products
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28. Products that consumers purchase frequently, immediately, and with little
effort are ______.
A. convenience goods
B. shopping goods
C. specialty goods
D. capital goods
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29. A complete new carpet program for a home falls into which of the following
classifications of goods?
A. Specialty products
B. Accessory equipment
C. Shopping products
D. Convenience products
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30. A warranty on a consumer product is important because of __________.
A. production and quality control methods
B. management information systems
C. the need to guarantee performance
D. promotion, pricing, and distribution needs
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31. Erika, purchasing agent for a small factory, has received a purchase
requisition for 3 cases of light bulbs and 10 cases of copy paper. These items
would be classified as ________.
A. supplies
B. raw materials
C. component parts
D. convenience products
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32. A combination of product lines represents a company’s _________.
A. product mix
B. product cluster
C. product lifecycle
D. distribution strategy
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33. Ford owns several brands including Ford, Mercury, Volvo, Aston Martin,
Jaguar, Land Rover, and Mazda. This constitutes Ford’s _________.
A. product line
B. product cluster
C. product mix
D. distribution strategy
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34. Widgets were introduced a few years ago. The number of companies making
widgets has increased recently, drawn by high profits. At the same time,
differentiated products for different market segments have begun to emerge. Widgets
appear to be in the ________stage of the product life cycle.
A. growth
B. introduction
C. maturity
 D. decline
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35. Greta has been analyzing the competitive standings of one of her products.
Since Greta began her operation, 20 similar products have appeared, forcing her to
change distribution strategies. Greta has also needed to change pricing strategies
in order to remain competitive. Sales volume has diped, and she suspects sales of
her product have reached a saturation level. At what stage of the product life
cycle is this item?
A. Introductory stage
B. Maturity stage
C. Decline stage
D. Growth stage
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36. Wal-Mart expanding internationally is an example of a _________.
A. product development strategy
B. market penetration strategy
C. market development strategy
D. product diversification strategy
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37. Which of the following strategies concentrates on finding new markets for a
firm’s existing products?
A. A market development strategy
B. A product development strategy
C. A market penetration strategy
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38. A brand that has been given legal protection is known as a _________.
A. patent
B. copyright
C. trademark
D. royalty
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39. Procter & Gamble markets laundry soap with the brand names of Tide, Cheer,
and Dash. Each brand targets a specific market segment. Proctor & Gamble is
utilizing __________.
A. private branding
B. family branding
C. generic branding
D. individual branding
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40. The IBM logo is good because it ________.
A. is easy to pronounce, recognize, and remember
B. is a family surname
C. accurately describes the products it names
D. accurately describes the products it names
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41. The words aspirin and nylon could not become part of a new brand name because
the brand name ________.
A. would be too long
B. would be difficult to spell
C. would be too difficult to pronounce
D. would contain generic words
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42. Luis wants a particular brand of golf ball. His local pro shop is out.
Instead of buying a substitute, Luis goes home and orders his preferred brand
online. Luis is at which stage of brand loyalty?
A. Brand awareness
B. Brand insistence
C. Brand preference
D. Brand recognition
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43. Volume objectives in pricing include ________.
A. image goals and status quo pricing
B. supply and demand
C. profit maximization and market share
D. sales maximization and market share
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44. Which of the following statements about prices is true?
A. prices have little effect on consumer preferences
B. prices help consumers make allocation decisions
C. prices have little effect on the overall economic system
D. there is little relationship between price and quality
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45. The method of determining the minimum sales volume needed at a certain price
level to cover all costs is _______.
A. market share analysis
B. equilibrium pricing
C. return on sales
D. breakeven analysis
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46. In breakeven analysis, total cost is composed of ________.
A. price divided by number of units sold
B. variables costs minus fixed costs
C. total variable costs and total fixed costs
D. total sales minus expenses
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47. In breakeven analysis, the costs that change with the level of production are
considered ______.
A. variable costs
B. recoverable costs
C. labor costs
D. overhead costs
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48. Breakeven analysis _________.
A. cannot be applied to service organizations
B. looks good in theory, but has no practical use
C. assumes that fixed costs increase as sales volume increases
D. is useful for determining the profits or losses that would result from
different proposed prices
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49. Assume widgets cost $5.00 each. The variable cost per unit is currently $4.00
and fixed costs are $25,000. If the company can alter its production method such
that variable costs fall to $3.50 and fixed costs rise to $30.000, what will happen
to the breakeven point?
A. It will fall
B. It will rise
C. It will remain the same
D. Insufficient information given to answer the question
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50. Compact disc players, introduced in the early 1980s, were frequently over
$2,000. Today disc players can be purchased for less than $200. The early compact
disk marketers were using which of the following pricing strategies?
A. skimming pricing
B. Psychological pricing
C. Product line pricing
D. Penetration pricing
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Answer Key
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1. C
2. A
3. B
4. A
5. B
6. A
7. D
8. B
9. B
10. C
11. D
12. B
13. C
14. B
15. B
16. A
17. A
18. D
19. D
20. C
21. C
22. C
23. D
24. C
25. D
26. B
27. C
28. A
29. C
30. C
31. A
32. A
33. A
34. A
35. B
36. C
37. A
38. C
39. D
40. A
41. D
42. B
43. D
44. D
45. D
46. C
47. A
48. D
49. A
50. A