Homework with book "Contemporary Business 2006" questions
Questions 1–20: #050618
1. Which of the following facts would lead you to believe that your
company takes customer satisfaction seriously?
A. Products are all less expensive than competitor products.
B. There are more distribution outlets for products than
competitors have.
C. Regular research is carried out to assess customer
satisfaction with your product’s performance.
D. You have the most friendly salespeople.
2. Hilary just retired and wants to receive advertising mail shots
from golf clubs seeking new members. Which type of market
segmentation are the clubs practicing?
A. Geographic C. Psychographic
B. Demographic D. Product-related
3. Which of the following is the most frequently used method of market segmentation?
A. Geographic C. Demographic
B. Psychographic D. Product-related
4. You receive a flyer in the mail asking you to purchase a brick for the new wing of your
local children’s hospital. This is an example of _______ marketing.
A. place C. organization
B. cause D. event
5. Deciding to market your product on a Web page is which element of the marketing mix?
A. Promotional strategy C. Place strategy
B. Product strategy D. Pricing strategy
6. Relationship marketing focuses on
A. making the sale. C. finding a need and fulfilling it.
B. keeping customers coming back. D. social influences.
7. The orderly transfer of goods and services is _______ utility.
A. time C. place
B. form D. ownership
8. In what stage of the product life cycle is the personal computer?
A. Introduction C. Maturity
B. Growth D. Decline
9. What is the breakeven point (in units) for a product that has fixed costs of $60,000,
variable costs of $10 per unit, and sells for $25?
A. 2400 C. 4000
B. 6000 D. 9000
10. Although he’s never driven one, Leon decides to buy a Mercedes car. The fact that he’s
purchasing a product in this manner is an example of brand
A. recognition. C. performance.
B. equity. D. insistence.
11. A company begins selling a product in one city only. This may be for the purpose of
A. screening. C. prototyping.
B. analysis. D. test marketing.
12. If a product is in the maturity phase of its life cycle, the company should
A. emphasize relationship marketing to build dealer loyalty.
B. expand distribution coverage.
C. minimize promotion.
D. stabilize prices.
13. In the wheel of retailing process,
A. new retailers offer improved services at equal prices.
B. new retailers offer lower prices by reducing services.
C. older retailers cut services to compete in price with new retailers.
D. older retailers usually maintain their market dominance.
14. An example of event marketing is
A. advertising directed at the Democratic party.
B. sponsoring the World Cup.
C. promoting UNICEF.
D. promoting the Baseball Hall of Fame.
15. Which of the following illustrates the span of a product life cycle?
A. Introduction, growth, decline, maturity
B. Introduction, maturity, growth, decline
C. Introduction, growth, maturity, decline
D. Introduction, decline, growth, maturity
16. If a company chose exclusive distribution for its products, it’s probably very concerned with
A. availability. C. affordability.
B. image. D. popularity.
17. What distribution intensity exists for Acme shoes, which selects only a limited number of
retailers to distribute their shoes?
A. Exclusive distribution C. Competitive distribution
B. Selective distribution D. Intensive distribution
18. What is the most appropriate method of transportation for oak furniture from North Carolina
to Tennessee?
A. Air freight C. Motor carrier
B. Railroad D. Water carrier
19. Offering free samples of a new candy bar is an example of what type of promotional
objective?
A. Accentuate product value C. Provide information
B. Differentiate product D. Stimulate demand
20. When firms choose to skip test marketing for complex, high-tech products, they usually do
so because the products
A. are too costly to produce in small runs.
B. will market solely on the Internet.
C. are highly likely to succeed.
D. are already a hit in a foreign market
