Introduction to Business Multiple Choice Questions
 
Question 1

    All of the following are outcomes associated with changes in digital technology and the rise of the Internet EXCEPT:
            
    mass customization.
            
    cognitive dissonance.
            
    new types of promotional tools and methods.
            
    a shift in power from producers to customers.

4 points   
Question 2

    The relevant concept of value in marketing is based on the:
            
    objective measure of quality exclusively.
            
    customer’s belief that a product has a better relationship than its competitors between the cost and the benefits.
            
    ability to buy the product at the lowest possible cost irrespective of the decrease in quality.
            
    form utility of the product.

4 points   
Question 3

    The biggest disadvantage of observation research is that it:
            
    tends to be extremely expensive.
            
    yields little or no insight into the motivation behind the observed behavior.
            
    generates secondary data rather than primary data.
            
    focuses on what people say rather than what they actually do.

4 points   
Question 4

    Which of the following scenarios exemplifies green marketing?
            
    Janet sells home-made pickles and jams.
            
    Claire sells solar-powered jackets.
            
    Sam volunteers at a local self-help group.
            
    Christine gives money to a nonprofit organization.

4 points   
Question 5

    __________ holds that delivering unmatched value to customers is the only way to achieve long-term profitability for the organization.
            
    The marketing concept
            
    Market segmentation
            
    Consumer behavior
            
    The product strategy

4 points   
Question 6

    Rapid improvements in digital technology and the rise in Internet usage over the past 20 years have:
            
    shifted the balance of power away from customers and toward producers.
            
    decreased the costs of marketing new products and services.
            
    increased the costs of distributing new products and services.
            
    contributed to a movement away from mass customization and toward demographic marketing exclusively.

4 points   
Question 7

    When Suzanne was shopping for school supplies in the mall, she was approached by a woman with a clipboard, asking questions about her preference for jeans. Therefore, Suzanne is part of __________ research.
            
    secondary
            
    unobtrusive
            
    survey
            
    observation

4 points   
Question 8

    __________ is a vital starting point for most marketers.
            
    Psychographics
            
    Analyticals
            
    Demographics
            
    Cultural awareness

4 points   
Question 9

    Jesse is the marketing manager for a large Midwest-based producer of food products. He is in the process of developing the __________, which takes into consideration the marketing strategies for product, price, promotion, and place.
            
    competitive mix
            
    value chain
            
    marketing environment
            
    marketing mix

4 points   
Question 10

    A well-chosen target market embodies the following characteristics:
            
    size, profitability, accessibility, and limited competition.
            
    size, limited profitability, accessibility, and competition.
            
    limited size, profitability, accessibility, and intense competition.
            
    size, profitability, limited accessibility, and intense competition.

4 points   
Question 11

    In its broadest sense, __________ refers to an organization’s ongoing efforts to create positive relationships with its consumers, employees, suppliers, the community, the general public, and the government.
            
    publicity
            
    advertising
            
    sales promotion
            
    public relations

4 points   
Question 12

    __________ involves purchasing the right to use another company’s brand name or symbol.
            
    Diffusion
            
    Exporting
            
    Branding
            
    Licensing

4 points   
Question 13

    A product has three product layers. They are the:
            
    implied benefit, explicit benefit, and combined benefit.
            
    physical form, intangible form, and perceived form.
            
    core benefit, actual product, and augmented product.
            
    external layer, internal layer, and environmental layer.

4 points   
Question 14

    __________ refers to marketing activities designed to stimulate wholesalers and retailers to push specific products more aggressively over the short term.
            
    Brand equity
            
    A pull strategy
            
    Publicity
            
    Trade promotion

4 points   
Question 15

    In which of the following stages of a product’s life cycle would heavy advertising reinforce the brand positioning strategy?
            
    Growth
            
    Maturity
            
    Decline
            
    Introduction

4 points   
Question 16

    Sponsorships typically have which of the following characteristics?
            
    It is expected they will experience healthy worldwide growth in the next few years.
            
    It is the newest form of product promotion.
            
    It is one of the least effective promotional channels when it comes to reaching a specific target market.
            
    It is expected that sponsorships will thrive in the U.S. in the next few years at a much faster rate than in other countries.

4 points   
Question 17

    Successful product differentiation requires that the:
            
    difference be real rather than merely perceived.
            
    marketers put most of their efforts into developing an appropriate brand name.
            
    product not only be different from those of competitors but also be better.
            
    products have both higher quality and higher cost than those of the competition.

4 points   
Question 18

    What do Mary Kay Cosmetics, The Pampered Chef, and Tupperware have in common?
            
    They are intensive distribution, nonstore retailers.
            
    They are multilevel marketers.
            
    They earn the majority of their revenue from direct response marketing.
            
    They are a part of the wheel of retailing.

4 points   
Question 19

    Many insurance companies utilize __________, while __________ often handle real estate and seasonal products.
            
    merchant wholesalers; retailers
            
    agents; brokers
            
    retailers; distributors
            
    full-service merchants; limited-service merchants

4 points   
Question 20

    Fashion trend setters, such as Gucci, who establish one retail outlet in a given area, are utilizing a(n) __________ distribution strategy.
            
    intensive
            
    selective
            
    exclusive
            
    multichannel

4 points   
Question 21

    The goal of distribution strategy is to:
            
    minimize the number of distributors in the channel of distribution.
            
    allocate goods from producers to consumers in the fairest possible way.
            
    reconcile conflicts between pricing strategies and promotion strategies.
            
    get the right product to the right person at the right place at the right time.

4 points   
Question 22

    __________ are marketing intermediaries that sell directly to final consumers.
            
    Wholesalers
            
    Brokers
            
    Truck jobbers
            
    Retailers

4 points   
Question 23

    A(n) __________ takes legal possession of the goods being distributed.
            
    broker
            
    agent
            
    merchant wholesaler
            
    store retailer

4 points   
Question 24

    A firm’s distribution strategy is concerned with two key elements:
            
    shipping and warehousing.
            
    the channel of distribution and physical distribution.
            
    pricing strategy and credit standards.
            
    facility location and value stream mapping for product flow.

4 points   

 
Question 25

    When comparing the advantages of trucks and rail as modes of transportation, a key advantage of trucks is that they __________, while an advantage of railroads is that they __________.
            
    are less costly; offer the greatest flexibility in handling
            
    offer faster and more frequent shipments; offer lower shipping costs
            
    offer more flexibility in handling; offer greater dependability
            
    are the fastest mode of transportation; are the most readily available mode of transportation