Next business test Project 3

Which of the following marketing strategies is appropriate for the growth stage of the product life cycle: A) Expanding the product line B) Setting up intellectual-property protections C) Using price skimming D) Harvesting the product

A) Expanding the product line

One way in which customers benefit from warranties and guarantees is A) increased profits. B) reduced anxiety about purchases. C) a business-oriented focus. D) feedback from businesses.

) reduced anxiety about purchases.

Which of the following is a type of "product" that the product life cycle can apply to: A) A brand B) A market segment C) A national economy D) An idea

A) A brand

Which of the following is not something a business must accomplish through selling price: A) Maintain market share B) Pay all operating expenses C) Obtain a profit D) Pay all costs of the product

A) Maintain market share

Which of the following factors related to a business's objectives and strategies affects its pricing: A) Product mix B) Supply C) Channel members D) Fixed costs

A) Product mix

Which of the following marketing strategies is appropriate for the decline stage of the product life cycle: A) Selling the product online B) Increasing promotion expenditures C) Marketing to early adopters D) Expanding the product line

A) Selling the product online

Why is it important for businesses to recover their costs? A) So that they can stay in business B) So that they can avoid government regulation C) So that they can pay lower taxes D) So that they can maximize their losses

A) So that they can stay in business

What does the following statement illustrate: The product should be four inches long and weigh 14 ounces. A) Standards B) Testimonials C) Warranties D) Grades

A) Standards

Which of the following is a true statement about the decline stage of the product life cycle: (5 points) A) The stage can be fast or slow. B) Sales increase. C) Profits remain stable. D) The stage occurs before the maturity stage.

A) The stage can be fast or slow

Light bulbs are made to fit sockets across the U.S. This is an example of which of the following ways that standards are used: A) To establish uniform, consistent products B) To provide consumers with product information C) To indicate how much the product will cost D) To indicate where the product will be sold

A) To establish uniform, consistent products

Which of the following is a purpose of warranties and guarantees: A) To protect the producer and the seller B) To increase customer anxiety about purchases C) To avoid a customer-oriented focus for the business D) To decrease feedback from customers

A) To protect the producer and the seller

Why do businesses want to meet quality standards? A) To reduce costs B) To examine how long it takes to get a job done C) To decrease profit D) To determine how much work must be done

A) To reduce costs

The Magnuson-Moss Warranty Act of 1975 provides that warranties must be A) clearly expressed. B) written using complex language. C) developed by consumers. D) interpreted.

A) clearly expressed.

The majority of businesses that use profit-oriented pricing want to A) earn a reasonable amount of profit. B) make as much profit as possible. C) create a negative cash flow. D) reduce their return on investment.

A) earn a reasonable amount of profit.

Any business that transports goods across state lines must comply with standards set by A) government agencies. B) trade associations. C) individual businesses. D) professional organizations.

A) government agencies.

How food products can be used generally is determined by their A) grades B) brands C) traits D) labels

A) grades

Sam's new car came with a warranty that ended after 12,000 miles or one year. The warranty covered major parts. This is an example of a(n) __________ warranty. A) limited B) implied C) illegal D) full

A) limited

Erica wants to buy Marco's used iPod. He is asking her to pay him $100 for it. $100 is the iPod's A) selling price. B) cash flow. C) cost of goods. D) profit.

A) selling price.

L.L. Bean promises "100% satisfaction in every way" to those who buy its goods. Items can be returned for refund or credit. This is an example of a(n) A) unconditional guarantee. B) conditional guarantee. C) unconditional warranty. D) conditional warranty.

A) unconditional guarantee.

The Federal Trade Commission has the authority to regulate warranties on any products that sell for more than A) $100 B) $15 C) $25 D) $1,000

B) $15

Is the following statement true or false: There is no connection between a firm's marketing objectives and its pricing objectives: A) True; marketing and pricing are independent of each other. B) False; pricing objectives should be used to achieve marketing objectives. C) False; marketing objectives are based on pricing objectives. D) True; some businesses do not even need marketing objectives.

B) False; pricing objectives should be used to achieve marketing objectives.

Which of the following is usually responsible for grading goods: A) Consumer groups B) Government agencies C) Research organizations D) Sales representatives

B) Government agencies

How does the use of grades and standards affect the buying and selling process? A) It enables businesses to set high prices. B) It enables customers to buy without having to inspect each product. C) It provides product information on unsafe products. D) It enables salespeople to suggest products without having to determine customer needs.

B) It enables customers to buy without having to inspect each product.

In what type of market do companies compete by making their products different from each other as to quality, service, styles, and prices? A) Pure competition B) Monopolistic competition C) Monopoly D) Oligopoly

B) Monopolistic competition

Which of the following is a true statement about the introduction stage of the product life cycle: A) Costs are low. B) Profits are usually nonexistent. C) Sales growth is exploding. D) There is intense competition.

B) Profits are usually nonexistent.

In which of the following forms of competition are no substitutes readily available? A) Pure competition B) Pure monopoly C) Oligopoly D) Monopolistic competition

B) Pure monopoly

Which of the following is most likely to result if workers fail to meet time standards: A) Increased promotion B) Reduced number of products available C) Reduced costs D) Increased quality of products provided

B) Reduced number of products available

Which of the following is a true statement regarding promotion expenditures during the growth stage of the product life cycle: A) They are higher than in the introduction stage. B) They decrease as a percentage of sales revenue. C) They are at their lowest point of the product life cycle. D) They focus solely on media advertising.

B) They decrease as a percentage of sales revenue.

Which of the following is a way that grades and standards can be used: A) To indicate which media will be used for promotion B) To determine how products can be used C) To develop product brands D) To identify employee benefits

B) To determine how products can be used

How can salespeople use grades and standards? A) To advertise products B) To meet customer needs C) To set prices D) To develop the product mix

B) To meet customer needs

If a producer priced its products much lower than those offered by competitors, is it possible that the producer would lose customers: A) No; channel members seldom change vendors when they're getting the lowest price. B) Yes; the price may be so low that the producer is unable to perform certain duties. C) No; customers will buy from the producer offering the lowest price. D) Yes; channel members avoid buying from the lowest priced producer.

B) Yes; the price may be so low that the producer is unable to perform certain duties.

Holiday Inn Express uses the slogan "No excuses, guaranteed" as a money-back promise to guests. This is an example of a A) warranty on goods. B) guarantee on service. C) guarantee on goods and services. D) warranty on service.

B) guarantee on service.

When customers buy televisions, they expect them to transmit pictures. This is an example of a(n) __________ warranty. A) express B) implied C) full D) limited

B) implied

Which of the following is an example of a dairy product that is graded: A) cream B) milk C) cheese D) butter

B) milk

A promise made by the seller to the customer that the seller will repair or replace a product that does not perform as expected is defined as a A) guarantee. B) warranty. C) strategy. D) market.

B) warranty.

A promise made by the seller to the customer that the seller will refund the customer's pur-chase price if the product does not perform as expected is defined as a A) warranty. B) full warranty. C) guarantee. D) recourse.

C) guarantee.

The selling prices of products help customers to A) determine the amount of mark-up. B) compare different kinds of products. C) make buying decisions. D) spend freely.

C) make buying decisions.

The importance of grades and standards increases as international trade A) fluctuates. B) remains unchanged. C) decreases. D) increases.

D) increases.

The product life cycle refers to the stages a product moves through from the time it enters the market until the time A) it produces a profit. B) it reaches maturity. C) its sales growth slows down. D) it exits the market.

D) it exits the market.

It costs a publishing company $8 to produce a paperback book. The company sells each paper-back it produces for $9.99. The $1.99 difference is known as A) elasticity B) demand C) capital D) mark-up

D) mark-up

A business specifies that employees must contact a certain number of customers each week. This is an example of __________ standards. A) quality B) time C) cost D) quantity

D) quantity

Which of the following is a true statement about the growth stage of the product life cycle: A) Competitors arrive on the scene. B) It's the longest-lasting stage of the product life cycle. C) Costs go up. D) Sales increase very slowly.

A) Competitors arrive on the scene.

The objective of pricing that is intended to earn a certain percentage of profit based on the amount of money that has been put into the business is A) percentage pricing. B) unfair trade practices. C) return on sales. D) return on investment.

D) return on investment.

Marketers may attempt to increase the number of a product's users by (5 points) A) harvesting the product. B) liquidating the inventory. C) using a price-skimming strategy. D) selling the product in a foreign country.

D) selling the product in a foreign country.

Which of the following is one of the main goals of promotion during the introduction stage: A) Focusing on brand rather than product B) Beating the competition C) Building awareness of the product D) Stimulating repeat purchases

C) Building awareness of the product

Which of the following is prohibited by government regulation: A) Businesses that avoid agreeing on a price range for a product B) Businesses that show the price per unit along with the total price of the item C) Businesses that offer premiums without explaining the terms to the customer D) Businesses that charge the same price to similar customers in similar situations

C) Businesses that offer premiums without explaining the terms to the customer

Why is obtaining, maintaining, or increasing market share important to a business? A) Market share must constantly increase for the business to succeed. B) A large market share ensures large profits. C) Market share serves as a measure of the success of the business. D) Customers are interested in a firm's market share.

C) Market share serves as a measure of the success of the business.

Which of the following stages of the product life cycle is the most difficult one for marketers: A) Decline B) Growth C) Maturity D) Introduction

C) Maturity

What kind of competitive market is characterized by a great many buyers and sellers of nearly identical products and marketers who have little control over pricing? A) Monopoly B) Monopolistic competition C) Pure competition D) Oligopoly

C) Pure competition

Which of the following is a source that businesses use to develop standards: A) Accountants B) Advertisers C) Suppliers D) Lawyers

C) Suppliers

Which of the following is a true statement: A) Selling prices for products remain the same over time. B) Selling prices are easy for businesses to determine. C) There are many kinds of selling prices for goods and services. D) Only certain types of products have selling prices.

C) There are many kinds of selling prices for goods and services

Which of the following is true of a business's pricing objectives: A) They are chosen for the life of the business. B) They are not affected by changing circumstances. C) They must be adjusted from time to time. D) They must be changed each fiscal year.

C) They must be adjusted from time to time.

Why do many professional organizations develop standards for their members to follow? A) To promote group activities B) To create influence C) To promote product safety D) To establish control

C) To promote product safety

Is an express warranty an oral promise given by the salesperson? A) Yes. An express warranty is an oral promise given by a salesperson, but its extent is lim-ited. B) No. An express warranty must be expressed verbally, and it also must be in written form. C) Yes. Whether the promise is limited or full, the seller must fulfill the promise to the cus-tomer. D) No. An express warranty is a promise expressed in a specific statement concerning the quality of the product and must be in written form.

C) Yes. Whether the promise is limited or full, the seller must fulfill the promise to the cus-tomer.

The national economy is always changing. These ups and downs in economic activity are known as A) recessions. B) growth periods. C) business cycles. D) profit cycles.

C) business cycles.

A business that sets its prices lower than those of competitors will not make a profit unless it also A) reduces its inventory. B) enlarges its staff. C) controls its costs. D) increases promotion.

C) controls its costs.

One way in which a business can benefit from warranties and guarantees is A) free repairs. B) reduced business standards. C) feedback from customers. D) the elimination of product liability.

C) feedback from customers.

Marketers may extend a product's life cycle by A) raising prices. B) applying for an extension with the patent office. C) finding new uses for it. D) reducing promotion.

C) finding new uses for it.

A warranty that covers the entire product is known as a(n) ___________ warranty. A) implied B) express C) full D) limited

C) full

An octane rating of 87 is an example of A) warranties. B) guarantees. C) grades. D) standards.

C) grades.

"Your money back if not satisfied" is an example of a A) strategy B) recourse C) guarantee D) warranty

C) guarantee

Businesses that come under government control often set a target return of profit because they A) need to earn very high profits. B) are not allowed to earn a reasonable profit. C) may be investigated if they earn high profits. D) must abide by unfair trade practices.

C) may be investigated if they earn high profits.

The amount of work to be done is specified by __________ standards. A) time B) quality C) quantity D) cost

C) quantity

When products are graded by non-government agencies, the grading is A) occasional. B) periodic. C) voluntary. D) mandatory.

C) voluntary.

True or False: Only express warranties hold up in court. A) False. Express warranties must be in writing. B) True. Only written evidence can be submitted in court. C) True. Implied warranties cannot be verified. D) False. Implied warranties are valid.

D) False. Implied warranties are valid.

Most of the products we use are in which stage of the product life cycle? A) Growth B) Decline C) Introduction D) Maturity

D) Maturity

Which of the following marketing strategies is appropriate for the maturity stage of the product life cycle: A) Finding non-traditional distribution channels B) Increasing prices C) Increasing media advertising D) Offering incentives to distributors

D) Offering incentives to distributors

What happens when demand for a product goes up? A) The selling price goes up. B) Customers can't afford to buy it. C) The supply decreases. D) Producers make more of it.

D) Producers make more of it.

Which of the following is a true statement about the maturity stage of the product life cycle: A) It is the easiest stage for marketers. B) Profits increase. C) Competition becomes less intense. D) Sales growth slows down.

D) Sales growth slows down.

What government agency is usually responsible for rating food products? A) Society of Automotive Engineers B) U.S. Department of Commerce C) Food and Drug Administration D) U.S. Department of Agriculture

D) U.S. Department of Agriculture

Jack's General Store has advertised a big sale on toasters. When Wendy goes to the store to buy a toaster, the salesperson tells her they are all sold out and offers to sell her a higher priced toaster oven. This is an example of an illegal practice known as A) unit pricing. B) price discrimination. C) price fixing. D) bait-and-switch advertising

D) bait-and-switch advertising.

A software manufacturer may sell an entire "suite" of software programs for one price during the maturity stage. This is a marketing strategy known as A) penetration pricing. B) harvesting. C) price skimming. D) bundling.

D) bundling.

Employees who waste materials have a negative effect on a business's __________ standards. A) work B) time C) sales D) cost

D) cost

Kevin is standing in line to purchase the latest version of his favorite smartphone. He loves getting the newest technology as soon as it's available. Kevin is known as a(n) A) price skimmer. B) product bundler. C) maturity-stage buyer. D) early adopter.

D) early adopter.

During the growth stage, costs are affected by A) market saturation. B) penetration pricing. C) harvesting strategies. D) economies of scale.

D) economies of scale.

A price-skimming strategy works well when introducing A) repair services. B) food items. C) discount clothing. D) electronic products

D) electronic products.

A customer buys an mp3 player and receives a printed warranty card stating the actions the company will take if the mp3 player does not work properly. This is an example of a(n) __________ warranty. A) full B) implied C) limited D) express

D) express

In its catalogs, a clothing manufacturer states: "If you are not completely satisfied with any item you buy from us, at any time during your use of it, return it and we will refund your full purchase price." This is an example of a A) warranty on service. B) warranty on goods. C) guarantee on goods and service. D) guarantee on goods.

D) guarantee on goods.

During the decline stage, a company may choose to continue offering the product but cut out all promotional expenditures. This is a strategy known as A) price skimming. B) bundling. C) liquidating. D) harvesting.

D) harvesting.

Companies that build a reputation for carrying out the terms of their warranties and guarantees generally have higher sales and more repeat customers, which result in A) unclear standards for the business. B) decreased feedback from customers. C) a business-oriented focus. D) increased profits.

D) increased profits.

Giving customers a list of locations at which they can obtain repair or replacement as part of a warranty or a guarantee provides the customer benefit of A) increased profits. B) legal recourse. C) reduced anxiety about purchases. D) service information.

D) service information.

A business that uses sales-oriented pricing objectives wants to increase the A) inefficiency of its human resources. B) cost of its marketing efforts. C) amount of promotion it uses. D) total amount of its income from sales.

D) total amount of its income from sales.

Two characteristics of a good guarantee are that it should be A) conditional and understandable. B) unconditional and difficult to collect. C) conditional and easy to implement. D) unconditional and understandable.

D) unconditional and understandable

Selling price helps customers to allocate their money because price determines A) what customers need to purchase. B) the value of products to all purchasers. C) the quality of all goods and services. D) what customers can afford to purchase.

D) what customers can afford to purchase.