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1. One reason why it is important for a business to coordinate the distribution and promotion of a new product is to make sure that the product is


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Title: 1. One reason why it is important for a business to coordinate the distribution and promotion of a new product is to make sure that the product is

1. One reason why it is important for a business
to coordinate the distribution and promotion of a
new product is to make sure that the product
is A. attractive to all customers. B. designed
to appeal to a target market. C. competitively
priced. D. available when customers want it.
  • 1. DAvailable when customers want it. Businesses
    usually coordinate distribution with other
    marketing functions, such as promotion. One
    reason why it is important to coordinate the
    distribution and promotion of a new product is to
    make sure that the product is available when
    customers want it. If businesses promote products
    but those products are not available when
    promised, customers may decide to buy from
    competitors. Most products do not appeal to all
    customers. Businesses do not coordinate the
    distribution and promotion of a new product in
    order to make sure that it is designed to appeal
    to a target market or is competitively priced.

2.How can a product's unique aspects be used to
determine in what channels it will be sold? A.
Customers refuse to buy a product if its unique
aspects are sold through unexpected channels. B.
A product's unique aspects specify in what
channels the product must be sold. C. Customers
associate a product's unique aspects with
distribution to a few or to many locations. D.
Specific distribution channels can only be used
for specific unique aspects of a product.
  • 2. CCustomers associate a product's unique
    aspects with distribution to a few or to many
    locations. When products have expensive or unique
    components, customers expect the products to be
    sold in a few locations due to their expense to
    develop. Customers would be surprised to see
    costly products being mass distributed to many
    businesses. Although a product's unique aspects
    might suggest certain distribution channels,
    businesses are free to determine where their
    products will be offered. It's unlikely that
    customers would refuse to buy a product if its
    unique aspects were promoted and sold in
    unexpected channels.

3. One reason a channel of distribution that has
strong leadership is often able to avoid conflict
within the channel is because the leader has
the A. capacity to regulate change. B.
personality to develop friendships. C. ability
to provide training. D. authority to demand
  • 3. DAuthority to demand cooperation. Strong
    leaders have the authority and power to influence
    others and direct the actions of others. A
    channel of distribution that has strong
    leadership is often able to avoid conflict within
    the channel because the leader has the authority
    to set goals for the entire channel and demand
    cooperation, which reduces the possibility of
    conflict. The leader's authority makes it
    possible for the leader to assign specific
    responsibilities to each channel member and
    persuade members to accomplish their individual
    tasks. When each member is cooperating and
    working for the good of the channel, there is
    less chance of conflict. It is not necessary for
    the leader to develop friendships. Channel
    leaders usually do not provide training. It is
    not possible to regulate change, although an
    effective leader will help channel members adjust
    to change.

4.To maintain positive relationships, all
distribution channel members must A. limit
ongoing communication. B. coordinate their
efforts. C. develop competing goals D. have
equal power.
  • 4. BCoordinate their efforts. Distribution
    channel members are the businesses or individuals
    who assist in moving goods and services from the
    producer to the consumer. So consumers get the
    products they want when they need them, the
    channel members must work together, or coordinate
    their efforts to efficiently transfer goods and
    services. This involves fostering positive
    relationships, which requires open, ongoing
    communication to accomplish the common goal of
    satisfying the customer. In most situations, the
    distribution chain has a channel leader (e.g.,
    producer) that possesses more power or leverage
    than the other channel members.

5. Which of the following is a true statement
about channel-member relationships in the supply
chain A. Members can often reduce conflict by
focusing on the common goal of customer
satisfaction. B. Because the producers are the
channel leaders, they usually have more
negotiating power. C. Technological
advancements have made interaction among channel
members unnecessary. D. To minimize horizontal
conflict, most wholesalers in the supply chain
charge slotting fees.
  • 5. AMembers can often reduce conflict by
    focusing on the common goal of customer
    satisfaction. Channel members are all of the
    businesses or individuals that move goods and
    services from the producer to the end user. The
    channel members depend on each other to make sure
    the end users receive the products when they need
    them and where they need them. Therefore, it is
    important for all channel members to remember
    that their common goal is customer satisfaction,
    especially when one or more of them disagree
    about a course of action that another channel
    member wants to take. Producers are not always
    channel leaders, nor do they necessarily have
    more negotiating power. Because the channel
    members are interdependent, interaction among the
    members is necessary. Slotting fees may cause a
    channel conflict rather than reduce it.

6. What is an important aspect of a
customer-centric business? A. Reducing the number
of touch points with customers B. Limiting the
employees' decision making C. Being satisfied
with the status quo D. Aligning business
activities with customer needs
  • 6. DAligning business activities with customer
    needs. A customer-centric business focuses on
    customer needs and wants. To focus on the
    customers' needs and wants, the business must
    ensure that its business objectives and
    activities align with its customers' needs and
    wants. A customer-centric business must
    continuously improve its processes and products
    to accommodate its customers' changing needs and
    wantsthe business cannot be satisfied with the
    status quo. A customer-centric business allows
    its employees to provide input and make decisions
    in relation to customer relationships. Touch
    points are all of the opportunities that
    businesses have to connect with customers and
    reinforce their brand value. A customer-centric
    business is not likely to reduce the number of
    customer touch points.

7. Many people make the mistake of thinking that
customer relationship management refers solely
to A. people. B. strategies. C. processes. D.
  • 7. DTechnology. Many people make the mistake
    of thinking that customer relationship management
    refers solely to technology. It involves
    technology, but it also involves strategies,
    processes, and most importantly, people. It
    combines these elements for the purpose of
    building, maintaining, and maximizing the
    long-term value of customer relationships.

8. Which of the following is a benefit of
customer relationship management A. The ability
to double the business's profits B. A work force
that does not commit errors C. A decrease in
customer advocacy D. The opportunity to create
targeted marketing campaigns
  • 8. DThe opportunity to create targeted
    marketing campaigns. The opportunity to create
    targeted marketing campaigns is one benefit of
    customer relationship management. The more you
    know about your customers and their changing
    needs and wants, the more you know what kinds of
    marketing communications they will respond to.
    CRM does not provide an error-free work force. It
    should result in an increase in customer
    advocacy. It should help the business increase
    its profits, but it will not necessarily double

9. One action that an ethical business can take
to help build the long-term trust and loyalty of
its customers is to A. sell its customer list to
third parties without permission. B. maintain
detailed information about customers'
transactions. C. implement a comprehensive
customer privacy policy. D. send daily opt-in
e-mail messages to customers.
  • 9. CImplement a comprehensive customer privacy
    policy. To build long-term relationships with its
    customers, a business must take steps to earn its
    customers' trust. Developing, implementing,
    communicating, and adhering to a customer privacy
    policy is one way to build the customers' trust.
    Privacy policies might include limiting the
    access that employees have to customer
    information and not selling customer lists to
    third parties. By respecting their customers'
    privacy, businesses can earn and maintain their
    customers' trust. Laws require businesses to
    maintain certain information about their
    customers' transactions for specified timeframes.
    Sending opt-in e-mail messages to customers is
    helpful in maintaining relationships with
    customers however, sending them too frequently,
    such as every day, may be annoying to some

10. Which of the following situations is an
unethical action associated with customer
relationship management A. Allowing customers
the ability to opt-out of the e-mail updates that
the business provides B. Implementing a
frequent-buyers program for the business's
customers C. Collecting customer information
with authorization to develop a customer profile
D. Selling customer lists without the customers'
consent to third parties
  • 10. DSelling customer lists without the
    customers' consent to third parties. It is
    unethical for a business to sell its customers'
    information to third parties without the
    customers' permission because it is a breach of
    privacy. When privacy is breached, trust is
    broken, and customers may defect to the
    business's competitors. Implementing a
    frequent-buyers program, collecting information
    with authorization, and allowing customers to
    opt-out of e-mail updates are ethical actions.

11. Which of the following types of customer
relationship management software would be most
appropriate for a company that is looking for a
more efficient way to track leads, prospects, and
customers A. Sales force automation technology
B. Campaign management software C.
Personalization technology D. Matching engine
  • 11. ASales force automation technology. Many
    companies use sales force automation (SFA)
    technology to support, coordinate, and increase
    the productivity of their sales professionals.
    SFA technology, which is a type of customer
    relationship management software, can help to
    automate many aspects of the sales process, such
    as tracking leads, prospects, and customers.
    Other SFA technology features include contact
    management, sales forecasting, and sales report
    generation. Campaign management software is used
    by marketers to develop, execute, and track the
    effectiveness of promotional campaigns to
    targeted groups of potential or established
    customers. Businesses often use personalization
    technology to target certain products to certain
    customers based on the customers' purchase
    history. Matching engine technology works in a
    similar manner. Based on a particular customer's
    needs or preferences, matching engine technology
    determines the product offering that would best
    appeal to that customer.

12. An important aspect of using technology in
customer relationship management involves A.
allowing employees to have complete access to
customer information. B. posting customer
information on the business's web site. C.
updating customer information in the computer
database. D. providing customers with excessive
product information.
  • 12. CUpdating customer information in the
    computer database. Customer relationship
    management (CRM) is the combination of
    strategies, processes, and policies that a
    business uses to meet or exceed customer
    expectations and to provide customers with
    outstanding experiences at every touch point. An
    important aspect of CRM is ensuring that customer
    data are current. For example, if the customer
    notifies the business about a change of address
    and the business does not update its computer
    database to reflect the change, the business's
    promotional mailings and invoices will not reach
    the customer in a timely manner, if at all. In
    another situation, a business might have multiple
    database records for one customer. If the
    business sends multiple (excessive) copies of
    promotional materials (e.g., product catalog) to
    the customer based on the data in the database,
    the customer may become annoyed. Sending multiple
    copies of a single mailing to one customer is
    also a waste of the business's money. To maintain
    the customer's privacy, the business should not
    post customer information on its web site, nor
    should it allow its employees to have complete
    access to a customer's confidential information.

13. Which of the following is a characteristic of
taxes A. Restricted to businesses B. Levied by
governments C. Encouraged by consumers D.
Applied only to tangibles
  • 13. BLevied by governments. Taxes are levied by
    various levels of government for different
    reasons. One reason is to generate revenue to
    fund programs. All levels of government, from
    small cities to the national level, need money to
    operate. They obtain this money by levying taxes
    on individuals and businesses. Taxes are not
    restricted to businesses or applied only to
    tangibles. Although consumers pay taxes, they
    usually do not encourage additional taxes.

14. The government decides to pass a new law
requiring certain standards of air cleanliness be
met. They will levy a tax on production of
automobiles that produce gas emissions above a
certain limit. However, they provide tax
incentives to automobile manufacturers for
research and development of new cars with lower
gas emissions. This is an example of A. direct
controls. B. transfer payments. C. hidden
costs. D. rent seeking.
  • 14. ADirect controls. The government is
    directly interfering with the normal operations
    of a free market. An example of a transfer
    payment is unemployment compensation paid to a
    factory worker who has been laid off. An example
    of hidden costs would be any unaccounted for
    effect that the new emissions-standards-friendly
    production might have on the environment. Rent
    seeking is when someone or some group seeks
    benefit to themselves or their group at the
    expense of someone else. An example of this would
    be a lobbyist pushing through a bill that only
    benefits its constituency at the expense of

15. During economic fluctuations, taxes serve the
purpose of ___________ the economy. A. destroying
B. reducing C. expanding D. stabilizing
  • 15. DStabilizing. Taxes stabilize the economy
    because in times of need they can provide greater
    social services but be reduced in times of
    economic growth. Taxes do not reduce or destroy
    the overall size of the economy, though taxes can
    reduce individuals' disposable incomes. Taxes
    also do not expand the economy because they do
    not create new money or wealth, they redistribute

16. What should an employee do if a coworker is
spreading malicious gossip about another
worker? A. Refuse to pass on the information B.
Deny hearing the rumor C. Ask for supporting
evidence D. Check out the accuracy of the message
  • 16. ARefuse to pass on the information. Gossip
    that may hurt a person or damage that person's
    reputation or character is malicious. Employees
    who spread malicious gossip about coworkers are
    behaving unethically. If an employee hears
    malicious gossip about a coworker, that employee
    should refuse to pass on the information.
    Employees who try to stop the spread of malicious
    gossip are behaving ethically because most gossip
    is inaccurate. If employees hear malicious gossip
    about a coworker, they should not deny hearing
    the rumor, ask for supporting evidence, or check
    out the accuracy of the message.

17. Which of the following is confidential
information that would be unethical for an
employee to provide to others without permission
from the business A. Dates of an upcoming
special sale B. Posting of available
positions C. Well-publicized expansion plans D.
List of employees who will be promoted
  • 17. DList of employees who will be promoted.
    Certain information is considered confidential,
    and businesses expect employees who have access
    to that information to keep it private. For
    example, information about employee promotions is
    confidential and should not be divulged until the
    business is ready to make the announcement. If an
    employee has access to this information or learns
    this information ahead of time, it would be
    unethical to tell others. Available positions,
    dates of an upcoming sale, and well-publicized
    expansion plans are not examples of confidential

18. Which of the following is an example of
people using persuasion in business A.
Requesting product specifications from a vendor
or manufacturer B. Delivering or distributing
goods to a customer on a timely basis C.
Distributing a report to company officers that
recommends policy changes D. Presenting the
company's annual financial statement to the board
of directors
  • 18. CDistributing a report to company officers
    that recommends policy changes. Persuasion is the
    effort of an individual or group of individuals
    to influence the attitudes or behavior of another
    individual or group of individuals.
    Recommendations for altering established policies
    is an example of trying to initiate change.
    Requesting product specifications, distributing
    goods on a timely basis, and presenting a
    financial statement are not examples of
    persuasion because a change in attitude or
    behavior is not the primary goal.

19. When you use persuasion, you often try to get
people to A. agree on a plan of action. B.
express their opinions. C. ignore the rights of
others. D. understand their behavior.
  • 19. AAgree on a plan of action. Persuasion is
    the ability to get people to see things your way,
    to do things your way, and to agree with you.
    When you use persuasion, you often try to get
    people to agree on a plan of action. An example
    is convincing your group of friends to attend the
    school play. Persuasion also involves influencing
    people to change their opinions or behavior
    rather than express their opinions or understand
    their behavior. When people are aggressive, they
    often ignore the rights of others.

20. Which of the following is an example of
effective negotiations A. Department heads and
staff share company goals. B. Business owners
offer workers a pay raise. C. Customer agrees to
a higher price. D. Supervisors discourage
questions regarding a policy change.
  • 20. CCustomer agrees to a higher price.
    Effective negotiations reach agreements that are
    satisfactory to both parties. In this example,
    seller and buyer were able to negotiate a higher
    price that was agreeable to both. Each of the
    other examples represents unilateral actions or
    release of information. Discouraging questions
    would lead to ineffective negotiations.

21. Which of the following is a common
negotiating strategy A. Using authority B.
Speaking C. Bargaining D. Being aggressive
  • 21. CBargaining. Bargaining often is an
    effective negotiating strategy. When bargaining,
    each person proposes solutions and uses
    "give-and-take" tactics to reach an agreement.
    Each person may have to give up something in the
    process, but each person gets something in
    return. Silence rather than speaking is also a
    common negotiating strategy. Another strategy
    involves claiming not to have authority rather
    than using authority. Being aggressive is not a
    negotiating strategy.

22. What type of negotiating style often involves
a "no-compromise" attitude? A. Accommodating
B. Collaborative C. Competitive D. Combative
  • 22. DCombative. Those who use the combative
    style of negotiating are ready to fight for what
    they want at any cost. It often involves a
    "no-compromise" attitude. This style is useful in
    short-term situations, particularly if you won't
    see the other person again. However, it usually
    does not build long-term relationships. The
    collaborative style involves people working
    together to create an outcome that benefits both
    parties. The competitive style is similar to a
    rivalry in which one party wins and one party
    loses. The accommodating style often involves
    people agreeing to something they don't really

23. A manager is most likely to use financial
information when A. determining resources
available to fund a new project. B. researching
the demographics of a new target market. C.
calculating the number of on-the-job injuries in
the past year. D. establishing lines of
authority within an organization.
  • 23. ADetermining resources available to fund a
    new project. Managers use financial information
    on many occasions, including when planning
    strategies, executing strategies, and evaluating
    the execution of strategies. For example, a
    manager would use financial information to
    determine what financial resources are available
    to fund a new project that s/he is planning. To
    research the demographics of a new target market,
    information gathered through market research
    would be more useful. Financial information is
    not used to calculate the number of on-the-job
    injuries or to establish lines of authority
    within an organization.

24. The price of raw materials used in
manufacturing a product was double what had been
projected for the year. Which of the following
could the business determine by analyzing its
financial information A. Supply and demand B.
Equipment costs C. Variances D. Errors in
  • 24. CVariances. Businesses analyze their
    financial information to determine the
    differences between what they had forecast and
    what actually happened. By doing this, they can
    account for those differences and improve future
    forecasts. In this scenario, equipment costs were
    not a factor. The business could not determine
    from its financial information whether the supply
    of raw materials decreased or demand increased.
    Forecasts are estimates based on information
    known at the time the forecast was made and will
    not be exactly what actually happens. In this
    scenario, therefore, the variances would not be
    considered forecasting errors.

25. Which of the following is a way that
businesses can use financial information A. To
identify trends B. To select selling
strategies C. To conduct focus groups D. To
create an economic system
  • 25. ATo identify trends. Through
    financial-information analysis, businesses can
    recognize what products are selling well and in
    what colors, styles, models, and sizes. Over
    time, this helps businesses spot trends in
    customer buying habits so that the businesses
    provide more of the products customers are buying
    and less of those that are not selling well.
    Selling strategies are largely determined by the
    nature of the product being sold rather than by
    financial information. Focus groups are used to
    collect customer reactions to and opinions about
    product features or company image. Businesses
    function in economic systems rather than creating

26. Why does a company need a flow of money into
the business? A. To borrow B. To exist C. To
sell D. To invest
  • 26. BTo exist. Money must flow into a business
    before it can ever exist. Entrepreneurs usually
    borrow money from a bank or obtain financing from
    investors in order to go into business. This
    initial flow of money is used to purchase the
    goods and services needed to start the business.
    Businesses receive money from the sale of goods
    and services. Entrepreneurs often obtain start-up
    money by borrowing it from investors.

27. Established businesses receive their primary
flow of money from A. loans. B. credit. C.
fees. D. sales.
  • 27. DSales. Sales are the primary way in which
    money flows into an established business.
    Businesses receive money by selling goods and
    services either to other businesses or to the
    final customer. Some businesses sell on credit,
    which means that the customer will pay for the
    goods or services over a period of time, usually
    with interest. Businesses spend money to pay fees
    and loans.

28. What is often one of the largest sources of
money flowing out of a business? A. Payroll and
benefits B. Accounts receivable C. Profit and
loss D. Goods and services
  • 28. APayroll and benefits. Payroll and benefits
    are often one of the largest sources of money
    flowing out of a business because businesses must
    pay employees for their labor. Many businesses
    also pay for employee benefits, such as health
    insurance, paid vacation, sick leave, tuition
    reimbursements, and retirement savings.
    Businesses bring money in by selling goods and
    services. Accounts receivable are all the monies
    owed to a firm by its customers. Profit and loss
    indicates if the business is making sufficient
    money to cover its expenses.

29. Which of the following is an example of
current liabilities that a business should
include in its balance sheet A. Owner's equity
B. Accounts receivable C. Employees'
salaries D. Mortgage loans
  • 29. CEmployees' salaries. Liabilities are debts
    that a business owes. Liabilities are classified
    as current, which means that the debts will be
    paid off during the year, or long-term, which
    means that they will be paid off over a period of
    time. Employees' salaries are current liabilities
    because the business is expected to pay its
    employees for their work on a regular basis
    throughout the year. Mortgage loans are long-term
    liabilities because businesses usually make
    mortgage payments for several years. Accounts
    receivable are assets because they are all the
    monies owed to the business by its customers.
    Owner's equity is the amount an owner has
    invested in the business plus or minus profits
    and losses.

30. Which of the following are the categories
that businesses use to summarize information on
their balance sheets A. Cash, budget, and credit
B. Equity, budget, and cash C. Liabilities,
equipment, and sales D. Assets, liabilities, and
  • 30. DAssets, liabilities, and equity. A balance
    sheet is a financial statement that captures the
    financial condition of the business at that
    particular moment. The business summarizes its
    financial condition by categorizing data into
    three groupsassets, liabilities, and equity. An
    asset is anything that the business owns or that
    can be converted into cash. Assets include cash,
    equipment, and sales income. Liabilities are the
    business's debts. As a liability, a credit
    balance is money that a business owes to its
    suppliers or lenders. Equity is the net worth of
    the business after subtracting all liabilities
    from all assets. A budget is an estimate of
    income and expenses for a certain period of time.
    A budget is not a category of information that is
    listed on a balance sheet.

31. The reason why a business prepares a balance
sheet is to determine its A. estimated annual
income. B. average cash flow. C. current
financial situation. D. future sales goal.
  • 31. CCurrent financial situation. A balance
    sheet is a financial statement that captures the
    financial condition of the business at that
    particular moment. It indicates what the business
    owns, what it owes, and its worth as of a certain
    date. By preparing a balance sheet, a business
    can determine if it has sufficient assets to
    cover its liabilities and still have money
    remaining, or if its liabilities are more than
    its assets. A business does not prepare a balance
    sheet to determine its average cash flow,
    estimated annual income, or future sales goal.

32. What category of an income statement
indicates total profit? A. Gross profit B.
Bottom line C. Cash flow D. Net profit
  • 32. AGross profit. Gross profit is determined
    by subtracting the cost of goods sold/cost of
    sales from revenue. It is the total amount of
    money a business makes as a profit before all
    other remaining expenses have been deducted.
    Determining the gross profit helps businesses to
    see how much money they invested in making or
    obtaining their products versus how much it costs
    to operate the business. The bottom line is net
    profit, which is the money remaining after
    operating expenses are subtracted from gross
    profit. Cash flow is the movement of money into
    and out of a business.

33. By comparing the categories in an income
statement, a business will be able to determine
if it is A. earning too much income. B. paying
too little for supplies. C. spending too much
on expenses. D. acquiring goods for too low a
  • 33. CSpending too much on expenses. By
    themselves, the elements of an income statement
    are simply categories and totals. A business
    needs to be able to see how the categories are
    affecting each other and the bottom line. By
    comparing categories, a business will be able to
    determine if it is spending too much on expenses
    and not earning sufficient profit. Most
    businesses try to spend as little as possible
    when purchasing supplies or acquiring goods.
    Businesses try to earn as much income as possible.

34. One reason why a business compares its income
statement figures with those of competitors is to
find out how it is doing in relation to A.
industry standards. B. research projections.
C. economic forecasts. D. marketing
  • 34. AIndustry standards. Even when a business
    is earning a profit, it will still want to know
    how it is doing by industry standards. A
    competitive analysis of income statement figures
    helps a business to see its strengths and
    weaknesses in relation to those of the
    competition. Businesses usually do not share
    their marketing procedures with competitors.
    Economic forecasts and research projections
    indicate how businesses might do in the future.

35. Businesses use budgets to estimate how they
will A. spend their money. B. file their taxes.
C. calculate their assets D. depreciate their
  • 35. ASpend their money. A budget estimates how a
    business will earn and spend its money.
    Businesses use budgets to estimate how they will
    spend the money they earn as income. Businesses
    have expenses, and budgets help businesses plan
    how to allocate income in order to pay those
    expenses. Businesses do not use budgets to
    calculate their assets, file their taxes, or
    depreciate their assets.

36. By regularly reviewing their budgets,
businesses are able to determine if they are A.
offering loans to employees. B. paying interest
to customers. C. following their financial
plans. D. receiving discounts from vendors.
  • 36. CFollowing their financial plans. By
    regularly reviewing their budgets, businesses are
    able to determine if they are following their
    financial plans. With a budget, businesses are
    able to see at a glance where things are off
    course, and then make whatever adjustments are
    needed to get back on track. Businesses usually
    do not pay interest to customers or offer loans
    to employees. Budgets do not indicate if
    businesses receive specific discounts from
    vendors, although the total amount paid to
    vendors would be estimated in a budget.

37. Why do businesses use budgets to estimate
income? A. To increase losses B. To increase
shrinkage C. To plan purchases D. To develop
  • 37. CTo plan purchases. Budgets guide financial
    decisions, such as what to buy and how much to
    pay. Businesses use budgets to estimate income to
    know how much money will be available to spend on
    purchases. By knowing when income is expected,
    businesses can plan to make purchases during a
    specific time period. Businesses do not use
    budgets to estimate income in order to increase
    losses, increase shrinkage, or develop services.

38. When marketing researchers code the various
responses on a questionnaire, they are __________
to each answer. A. computing a total score B.
tabulating the response C. rating the
agreement D. assigning a numeric value
  • 38. DAssigning a numeric value. Coding is the
    process of assigning a numeric value to the
    various responses on a marketing questionnaire or
    survey. Some questionnaires contain built-in
    codes such as when the respondent is asked to
    rate agreement with a question on a scale of one
    to five. The numbers from one to five are the
    numeric codes. For other types of questionnaires,
    researchers often establish a master code. For
    example, there are six possible responses to a
    certain question and the third answer has a
    numeric value of three, but that number is not
    printed on the questionnaire. Once the responses
    are coded and individuals complete the
    questionnaire, researchers are able to tabulate
    the responses, rate the agreement to each answer,
    and compute a total score.

39. Which of the following is often part of the
process of reviewing and analyzing marketing data
to make them useful A. Ranking the questions
B. Designing the surveys C. Checking for
mistakes D. Searching for sources
  • 39. CChecking for mistakes. The data collection
    process is not error free. Consequently,
    researchers usually review the marketing data
    obtained from interviews, surveys, and
    questionnaires in order to check for mistakes.
    For example, answers may have been incorrectly
    recorded or the wrong people may have been
    interviewed. These mistakes affect the accuracy
    of the marketing data as well as the usefulness
    of the data. As a result, researchers try to
    eliminate as many mistakes as possible in order
    to have accurate information that will be useful
    in making marketing decisions. Before marketing
    information is obtained, researchers design the
    surveys, rank the questions, and search for

40. Which of the following is an example of a
business tabulating the results of a marketing
survey A. Analyzing the information to make it
useful to the business B. Counting the number of
respondents who agreed with the questions C.
Assigning a numeric value to the various
responses on the survey D. Comparing the results
with results from other types of research
  • 40. BCounting the number of respondents who
    agreed with the questions. In many cases,
    processing marketing information involves
    tabulating the results. Tabulating is counting
    the number of respondents who answered each
    question with one of the possible answers. For
    example, if 100 people responded to a survey,
    businesses need to know how many of them agreed,
    disagreed, or had no opinion about the questions.
    Also, tabulating helps businesses to determine if
    some people did not answer all the questions,
    which might have an effect on the accuracy of the
    results. Tabulating does not involve analyzing
    the information to make it useful, or comparing
    the results with results from other types of
    research. Coding is assigning a numeric value to
    the various responses on the survey.

41. Which of the following is an example of
range A. Most consumers buy four CDs per
month. B. Consumers buy an average of five CDs
per month. C. Consumers buy between three and
seven CDs per month. D. Half of all consumers buy
more than five CDs per month.
  • 41. CConsumers buy between three and seven CDs
    per month. Range is the distance between the
    smallest and largest value in a set of responses.
    In the example, three was the smallest number of
    CDs purchased and seven was the largest number.
    The distance between three and seven is the
    range. Range is often used to describe the
    relation between numbers, such as the variation
    between the number of CDs purchased. Mean is the
    average, such as consumers buying an average of
    five CDs per month. Mode is the most common
    response, such as most consumers buy four CDs per
    month. Median is the exact middle, such as half
    of all consumers buying more than five CDs per

42. What are the primary advantages of using
descriptive statistics? A. The data are not
described in numerical form and can be
transferred easily. B. You can reach conclusions
that extend beyond what the data shows. C. You
are able to make charts easily and create unbound
reports faster. D. It allows you to summarize
data and make comparisons across units.
  • 42. DIt allows you to summarize data and make
    comparisons across units. Descriptive statistics
    are summaries of data that make large amounts of
    information more manageable. Reaching conclusions
    involves making inferences rather than using
    descriptive statistics. Descriptive statistics
    can be described in numerical form. The use of
    descriptive statistics does not necessarily
    enable you to make charts easily.

43. Which of the following statements is an
example of a measure of central tendency A.
Twelve members of the community swim team are
fifteen years old. B. The average U.S. male buys
frozen pizza four times every thirty days. C.
Morrow County gasoline taxes have increased 15
percent in six months. D. The distance between
point A and point B is 55 kilometers.
  • 43. BThe average U.S. male buys frozen pizza
    four times every thirty days. A measure of
    central tendency is a term used in marketing
    research that indicates the center of
    distribution. The number represents a value
    derived by a sample taken that falls between the
    lowest and highest value rating, which can be
    measured as mode, mean, or median. A mean is an
    average. The mean is determined by adding the sum
    of the data values and dividing by the number of
    values in the set (e.g., sample size). Specific
    distances between two points, members of a swim
    team, and increases in gasoline taxes state exact
    values and do not necessarily represent or state
    data in terms of averages.

44. Customers are more likely to spend a lot of
time evaluating several options before buying a
product when A. the product is perishable.
C. the need is immediate. B. the product is
expensive. D. brand insistence is a factor.
  • 44. BThe product is expensive. Because money is
    a limited resource, customers tend to spend more
    time comparing and evaluating the features and
    benefits of expensive items before making a
    decision to buy. Individuals tend to spend more
    time evaluating options when buying homes, cars,
    and computers. Businesses tend to spend more time
    evaluating items such as operating equipment and
    contract services (e.g., ad agencies and tech
    support) before making a decision. Customers are
    less likely to spend a lot of time evaluating
    perishable items (e.g., food) or things that they
    need immediately (emergency health care). If a
    customer has a high level of loyalty to a
    specific brand, then the customer will spend less
    time evaluating competitors' products before
    making a decision to buy.

45. When customers have low involvement with a
product, and there is little difference among
brands, what type of buying behavior are they
exhibiting? A. Habitual C. Complex B. Variety
D. Basic
  • 45. AHabitual. Customers exhibit habitual or
    routine buying behavior when buying staple items
    such as sugar, orange juice, and toothpaste.
    These types of items are inexpensive, require
    little involvement or thought, and in most
    situations, there are few differences among
    brands. Complex buying behavior involves high
    customer involvement because the items are
    expensive and purchased infrequently.
    Characteristics of variety-seeking buyers are low
    involvement, but a higher recognition of brand
    differences. Many variety-seekers switch brands
    often. Basic is not a type of buying behavior.

46. Complex buying behavior is most likely
involved when the customer is purchasing A. a
car. C. socks. B. a meal. D. gasoline.
  • AA car. Product type affects a customer's
    buying behavior. Customers who exhibit complex
    buying behavior are highly involved in the
    purchase because the product tends to be more
    expensive and risky. When the purchase is a form
    of self-expression, it affects the customer's
    status or image, and brand is an important
    factor. Because cars are expensive and vary in
    dependability and style, customers tend to spend
    more time evaluating their options before buying.
    Meals, shoes, and movie tickets are routine
    purchases, so customers tend to exhibit habitual
    buying behavior rather than complex buying
    behavior when purchasing these items.

47. If a business lowers the price of a product
for the purpose of taking business away from
competitors, the result of this action often is
a(n) A. decrease in cost. C. C. gain in market
share. B. increase in profit. D. D. reduction
in staff.
  • CGain in market share. Businesses take action
    for the purpose of achieving certain results. One
    of the results that a business might want to
    achieve is a gain in market share, which is a
    business's portion of the total industry sales in
    a specific market. An action that a business
    might take to obtain this result is to lower the
    price of a product for the purpose of taking
    business away from competitors. If the price is
    lower, the business has an opportunity to gain
    market share. If the price is significantly
    lower, the business might lose money in the
    short-term, while increasing market share.
    Lowering the price of a product will not result
    in a decrease in cost or a reduction in staff.

48.. Morgan Health Supply Company wants to expand
its product line this year. It uses its budget
surplus to invest in new products rather than to
remodel its offices. This is an example of which
positive action companies should take A. Provide
excellent customer service. B. Align strategies
and activities with goals. C. Demonstrate
corporate responsibility. D. Utilize touch
points to reinforce company image.
  • BAlign strategies and activities with goals. By
    investing its budget surplus into new products
    rather than office remodeling, Morgan Health
    Supply Company is aligning its strategies and
    activities with its goal of expanding its product
    line. The new product line won't necessarily
    guarantee excellent customer service, demonstrate
    corporate responsibility, or utilize touch points
    to reinforce company image.

49. Technological advances can help companies
provide more customer service with fewer
employees, but why must the companies be
careful? A. Technology cannot provide 24-7
service. B. Computers and telephones break down
regularly. C. Current employees may go on
strike. D. Customers may feel they are losing
their human touch.
  • DCustomers may feel they are losing their human
    touch. Technological advances can help companies
    provide more customer service with fewer
    employees, but companies must be careful because
    customers may feel they are losing their human
    touch if they can only reach an automated
    telephone service or get online to receive help.
    Computers and telephones may break down, but not
    necessarily on a regular basis. Current employees
    may not be happy if their jobs are replaced with
    technology, but they will not necessarily go on
    strike. Technology can provide 24-7 service,
    which is one of its benefits.

50. The financial component of a marketing plan
helps a business to compare the projected costs
of implementing the plan with the
expected A. benefits. C. losses. B. expenses.
D. strategies.
  • ABenefits. The financial component of a
    marketing plan includes information about how
    much it will cost a business to implement the
    plan. Businesses use this information to compare
    the projected costs with the expected benefits to
    make sure that the benefits exceed the costs. For
    example, a business would not want to spend more
    to implement a marketing plan than it would be
    able to generate in revenue. A business would not
    expect losses. The projected costs of a marketing
    plan include the expenses to perform the required
    activities and implement the strategies.

51. What type of information do businesses
include in their marketing plans? A. Billing
methods C. Payroll systems B. Pricing strategies
D. Accounting procedures
  • BPricing strategies. A marketing plan is a set
    of procedures or strategies for attracting the
    target customer to a business. An important part
    of a marketing plan is the pricing strategies
    that a business will use to attract those
    customers. Businesses want their prices to be low
    enough to appeal to customers but high enough to
    cover costs and earn a profit. Businesses analyze
    a variety of information about expenses, prices
    charged by competitors, and customers' wants in
    order to decide how to price their products.
    Businesses do not include information about
    billing methods, payroll systems, or accounting
    procedures in their marketing plans.

52. One of the main reasons for developing a
marketing plan is to identify the strategies
necessary to achieve the marketing A. functions.
C. mix. B. objectives. D. share.
  • BObjectives. Marketing objectives are the goals
    a business seeks to reach with its marketing
    plan, which is a set of strategies for attracting
    the target customer to the business. One of the
    main reasons for developing a marketing plan is
    to identify those strategies that are the plans
    of action for achieving marketing goals and
    objectives. Marketing functions are interrelated
    activities that must work together to get goods
    and services from producers to consumers.
    Marketing mix is the combination of the four
    elements of marketingproduct, place, promotion,
    and price. Market share is an organization's
    portion of the total industry sales in a specific

53. When conducting an external environmental
analysis, businesses often focus on A. previous
demand. C. marketing goals. B. industry
growth. D. financial costs.
  • BIndustry growth. Many businesses focus on
    industry growth when conducting an external
    environmental analysis because the marketing
    strategies that a business develops often depend
    on how fast the industry is growing. If an
    industry is growing rapidly, a business needs to
    develop a marketing plan to attract and maintain
    customers and deal with increasing competition.
    If the industry is at the saturation level, a
    business can only grow if it develops a marketing
    plan to try to take customers away from
    competitors. A business conducts an environmental
    analysis to determine the current situation
    rather than to focus on previous demand.
    Conducting an environmental analysis helps a
    business to determine its marketing goals and the
    financial costs involved in meeting those goals.

54. An international soft-drink company that
wants to add bottled spring water to its product
mix has determined there are four major brands
that currently hold the majority of the market
share for that product. The strengths and
weaknesses of each potential competitor have been
examined. This is an example of a(n) A. action
plan. C. situation analysis. B. marketing
strategy. D. purpose and mission.
  • CSituation analysis. Information regarding
    competitors, their products, and their strengths
    and weaknesses is collected as part of an
    external environment analysis. This type of
    analysis is one aspect of the overall situation
    analysis. Gathering such information is not an
    example of marketing strategy, action plans, or
    purpose and mission.

55. If you were trying to convince someone to use
quantitative sales forecasting, which of the
following factors would you stress A. Variety of
opinions C. Minimal cost B. Factual
basis D. Ease with which findings are understood
  • BFactual basis. The primary advantage of
    quantitative sales forecasting methods as
    compared with qualitative forecasting methods is
    that they provide more exact data, because
    quantitative forecasting is based on facts rather
    than on opinion. The costs, however, are usually
    higher because the business will need to pay
    people to conduct surveys, to purchase the
    results of outside surveys, to subscribe to
    various publications, or to buy computer systems
    to assemble and analyze the data. Although a
    variety of resources can be used as sources of
    information, the data are based on facts rather
    than opinions. Individuals often experience more
    difficulty understanding numerical data than
    understanding others' opinions.

56. Which of the following is an example of an
internal change that could affect a business's
sales forecast A. A direct competitor is
planning a new promotional campaign. B. The birth
rate increased following the Iraqi war. C. A new
product line is to be offered by the
business. D. The economy is struggling with a
major drop in stock market prices.
  • CA new product line is to be offered by the
    business. Internal changes are circumstances
    within the business. They include changes in
    personnel, promotion, pricing, product lines,
    distribution processes, and marketing strategies.
    The business has control over internal changes
    and can adapt its sales forecast accordingly.
    External changes occur outside the business, and
    businesses have no control over these changes.
    Competitors' actions, population changes, and
    economic changes are examples of external factors
    that can affect sales forecasts.

57.. A manufacturer expects product sales to
increase during the coming year. How does this
information affect product production? A. Producti
on should decrease. C. Production should remain
stable. B. Production should increase.
D. Production should not be affected.
  • BProduction should increase. Businesses need to
    know the amount of products they can expect to
    sell in order to plan the most efficient
    production of those products. In this case,
    anticipated increases in sales should be matched
    by increased production in order to meet the
    shift in demand. By decreasing production or
    keeping it stable, the business would not have a
    sufficient supply of products available to meet
    the demand. This could result in ill will and
    lost sales for the company

58. Which of the following activities reflects
creativity A. Completing a sales check according
to company policy B. Replacing merchandise sold
from a window display C. Referring an irate
customer to the store manager D. Suggesting a
new use for an existing product
  • DSuggesting a new use for an existing product.
    Creativity is the ability to generate unique
    ideas, approaches, and solutions. The other
    alternatives are routine responses or job

59. Which of the following personality traits is
often associated with creative people A. Acting
independently C. Preferring routine
activities B. Exhibiting low energy levels
D. Shunning recognition and praise
  • AActing independently. Most creative people
    prefer working with minimal or no supervision.
    They also exhibit high energy levels, prefer new
    experiences and variety, and desire recognition
    and praise.

60. A member of a sales team said, "Our sales
always decline this time of year. We just need to
wait a few months until they pick up again." What
barrier to creativity is the sales-team member
exhibiting? A. Limiting code of behavior
C. Criticism B. Need to be right the first time
D. Stress
  • ALimiting code of behavior. It is easy to fall
    into patterns of behavior that suffocate
    creativity. People convinced that their problems
    are unavoidable won't look for solutions. Stress
    is due to worry and fatigue. Creativity requires
    people to explore alternatives and take risks
    therefore, people who have to be right the first
    time can't take the chance of being wrong.

61. The essence of time management is to A. set
a fixed schedule and follow it. B. eliminate the
need to prioritize activities. C. focus on
spreading work over a period of time. D. control
events in order to accomplish priorities.
  • 61. DControl events in order to accomplish
    priorities. All people need to learn how to
    manage their time. They need to maintain control
    over the events in their lives so that there is a
    balance among those events. This involves
    planning and organizing their personal and
    professional activities. Time management involves
    prioritizing activities, but it does not mean
    setting a fixed schedule and never deviating.
    Schedules should have some flexibility built in
    to take care of unexpected events. Time
    management focuses on making the best use of time
    rather than on spreading work over a period of

62. Rob wrote down the following information
1. Finish research paper Tuesday 2. Call
for dental appointment What time-management
approach did Rob use? A. Setting objectives
C. Using free time B. Delegating activities to
others D. Identifying time wasters
  • ASetting objectives. By setting objectives, you
    define what you want to accomplish. Activities
    are delegated when you ask others to do some of
    the work. Free time is time left over after your
    tasks are completed or when a planned activity is
    canceled. Time wasters, which include
    procrastination and having an unorganized work
    area, should be identified and minimized.

63. An effective time-management approach for the
manager of a large staff of employees would be
to A. build flexibility into his/her schedule.
B. fill each day's work schedule
completely. C. block off six hours of
uninterrupted work time daily. D. delegate most
managerial responsibilities to an assistant.
  • ABuild flexibility into his/her schedule. The
    manager's schedule should not be filled
    completely. The more people you work with, the
    more flexible you need to be. Blocking off six
    hours of uninterrupted work time would not be
    possible. Delegating some activities to others
    will free the manager to do other tasks, but not
    all activities could or should be delegated.

64. Which of the following is a technique that
many businesses use to identify product
opportunities A. Observing the competition
C. Evaluating a prototype B. Testing the market
D. Developing a brand
  • AObserving the competition. Businesses often
    observe the products developed by competitors in
    order to identify possible product opportunities.
    For example, a business might observe that a
    competitor's new product is popular and selling
    well. As a result, the business develops a
    similar product that is somewhat more advanced.
    By paying attention to what competitors are
    doing, businesses often are able to identify
    product opportunities. Once the opportunity is
    identified, businesses often evaluate a prototype
    and test the market. One of the final steps
    before introducing a new product is developing a

65. John is graduating from college and needs to
buy clothes suitable for the business world, but
he doesn't know where to start. He recognizes
that many of his friends also lack the knowledge
of what they should buy. He thinks they could
easily learn the ropes of creating business
wardrobes if there was someplace he could go on
the Internet. This product opportunity resulted
from A. recognizing what is "cool." B. changing
life circumstances. C. releasing new products.
D. purchasing a product and needing a related
  • BChanging life circumstances. John is leaving
    the educational world to go into the business
    world therefore, his life is changing. The other
    alternatives also create chances for product
    opportunities however, they do not relate to the

66. With the arrival of digital television, many
customers have purchased new digital televisions.
A marketer recognized that these customers would
want to do something with their old TVs. This is
an example of A. opportunity recognition. C. the
need to purchase related items. B. individual
development. D. the availability of new
  • AOpportunity recognition. When people recognize
    that their ideal state is changing, they may
    recognize product opportunities that would
    satisfy customers. With individual development, a
    person is growing or changing such that her/his
    ideal state no longer exists. In this scenario,
    customers do not need to purchase related items,
    and there is no new information identified.

67. Real market opportunity occurs when A. a good
or service can be produced efficiently.
B. entrepreneurs brainstorm ideas. C. supply
exceeds demand. D. an identified want exists.
  • DAn identified want exists. Market opportunity
    exists when an economic want exists, and there is
    an idea for a good or service to fulfill that
    want for which people are willing and able to
    pay. Market opportunity does not necessarily
    exist because an entrepreneur brai
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