Marketing Praxis 5561

Track-and-trace systems primarily help companies with which of the following?

Option (B), Disruptions in the supply chain, is correct. Tracking products is the most important aspect of delivery. Tracking makes companies proactive rather than reactive. In the event that problems in the supply chain occur, the customer is notified immediately and adjustments can be made.

Which of the following guarantees that a buyer will be compensated by a producer in the event that a product is defective?

Option (B), Warranty, is correct. The question requires you to apply your knowledge of quality-assurance issues to identify which manufacturer commitment is designed to compensate a buyer if a product is defective. A warranty is designed to assure soundness and provide recourse if the product is defective.

A list price is the selling price..

Option (B), before discounts are added, is correct. The question requires knowledge of pricing dynamics and, specifically, the definition of list price. The list price is the published retail selling price before any allowances or deductions are applied.

The benefits sought segmentation model is primarily based on product..

Option (C), attributes, is correct. Benefits sought segmentation divides customers into groups according to similarities in product benefits sought.

The annual stock turnover rate is likely to be greatest in which of the following retail businesses?

Option (D), Food Store, is correct. The stock turnover of food/grocery stores is twice that of other retailers.

The primary role of promotion is to...

Option (D), communicate, is correct. The primary role of promotion is to communicate the availability of a product.

The promotional mix element that is intended to induce immediate product interest and stimulate quick purchase is..

Option (B), sales promotion, is correct. Sales promotion tries to spark immediate product interest, and it stimulates quick purchase actions.

Which of the following data collection models would be most appropriate for a survey where every question must be answered?

Option (C), Computer-administered, is correct. Computer-administered surveys eliminate the human factor when properly programmed, eliminating the possibility of overlooked or skipped questions, as well as the possibility of incorrectly recording responses.

SEE PICTURE 85. In the chart above, which of the following stages in the product's life cycle best represents the maturity stage?

Option (C), D, is correct. Maturity is the stage during which product sales are abundant and competition becomes a major concern as it impacts profitability and puts pressure on pricing to effectively compete.

In 2009, General Electric (GE), a large conglomerate, decided to sell its stake in NBC, its only television company. Which of the following reasons best explains why GE would sell this successful and popular television network?

Option (C), a change in company objectives, is correct. In this day and time NBC has continued to be successful. NBC was also the only network owned by GE. As a result, the only viable response is that there was a change in company objectives.

Which of the following is the stage in new product development that focuses on concept testing with prospective consumers?

Option (C), idea evaluation, is correct. The question tests your knowledge of product service management. Consumer opinion is solicited during the idea evaluation phase of new product development.

The three primary objectives of advertising are persuading, reminding, and..

Option (C), informing, is correct. The primary objective of advertising is threefold: to inform, persuade, and remind.

The sales and production of videocassette recorders (VCRs) have decreased as other mediums, including DVDs and on-demand media streaming services such as Netflix, gradually replaced videocassettes. Which of the following best describes the stage of the product life cycle that the VCR is in?

Option (D), Decline, is correct. The decline stage is defined as the period when sales decrease and production is decreased or halted. In this instance, both situations have occurred.

Joshua, a store manager, is considering whether to add a new product line to his store. He invites some of his golfing partners, members of his church, and his children's school teachers to a social gathering so he can hear their comments and concerns about the new line. Which of the following best represents the type of research Joshua is conducting?

Option (D), Informal, is correct. A social gathering is an informal way of collecting information about adding a new product line to a store.

The relationship between the price of a normal good and the quantity of the good that consumers are willing to buy is which of the following?

Option (D), Inverse, is correct. When the price of a good increases, people tend to cut back on the purchase of that good. Hence, price and quantity move in opposite, or inverse, directions.

Which of the following is true about predatory pricing?

Option (D), It is a policy to price products very low in order to impair competition, is correct. The question requires you to apply your knowledge of pricing strategies to identify the characteristic(s) of predatory pricing. Predatory pricing is defined as using artificially low prices to drive out competition.

Which of the following is the best first step in the strategic marketing planning process?

Option (D), defining the mission statement, is correct. Defining the mission statement is the first step in the process, followed by creating the situational analysis. These must occur before opportunities are identified so that the opportunities fit the company direction. Evaluation and control come after the implementation of the marketing mix.

To be ethical, a business must do all of the following EXCEPT..

Option (D), develop adequate customer service policies, is correct. The question asks you to apply your knowledge of business ethics. Extensive customer service policies are essential for a business to maintain a high ethical standard.

Which of the following is a primary advantage of using marketing research?

Option (D), it helps in making good decisions, is correct. The main advantage of using marketing research is that it provides information that helps make good decisions.

In teaching marketing courses, objective tests are best used to measure..

Option (D), knowledge gained, is correct. The question tests knowledge of the most appropriate circumstances for using objective tests in marketing education programs. The subjective nature of assessing the ability to interact with other people, think independently, or perform certain duties precludes using objective tests. Knowledge gained, however, can be assessed objectively.

A consumer contest is typically considered an example of

Option (D), sales promotion, is correct. The question requires you to apply your knowledge of product promotion to identify the type of promotion a consumer contest entails. A consumer contest is designed to increase brand awareness and, thus, increase product sales.

A company wants to survey its workers about a new company policy. It randomly selects 100 employees to take the survey. The selected employees primarily represent a...

Option (D), sample of the population, is correct. The 100 workers represent a sample of all of the employees in the company.

A manufacturer of bowling balls who is interested in reaching the population most likely to purchase new bowling balls would use which of the following media?

Option (A), Direct mail, is correct. The question asks about promotional strategies. Direct mail enables the advertiser to target a specific population based on specific criteria. Direct mail is the best approach for targeting prospects that share certain characteristics.

A distribution channel that does not have intermediaries is...

Option (A), direct marketing, is correct. The question asks about distribution channels. Direct marketing forgoes the use of intermediaries.

A customer returns a defective jacket to the retailer. The retailer then sends the jacket back to the manufacturer. This is an example of..

Option (A), reverse distribution, is correct. Reverse distribution involves moving broken, unwanted, or excess goods back through the channel.

After conducting market research, the marketing team at an electronics manufacturing company discovers that customers like the flash drives produced by the company but would prefer them to be smaller. As a result, the company decides to produce the same flash drives but at half the size of the original product. Which of the following best describes the product-mix strategy used by the company?

Option (C), product modification, is correct. Product modification is defined by altering a company's existing product. In this scenario, the manufacturer did not drop a product line or create a new line, but rather added a new feature to an existing product.

Two friends decide to purchase a gourmet food truck. Once the business is established, the goal is to purchase a second truck. If both trucks are successful, franchising is the long-term goal. As the friends create their business plan for a bank loan, they need to make feasible projections. Which of the following pieces of financial information is the most important estimate for their financial plan?

Option (C), sales forecast, is correct. The sales forecast is what a company is measured by for growth and investment.

Which of the following can help a business protect trade secrets, such as a recipe or a new product design?

Option (D), a nondisclosure agreement, is correct. A nondisclosure agreement protects the business and protects against the disclosure of proprietary information.

A major soft drink manufacturer adds a low-calorie drink to its product mix. The drink is primarily an example of..

Option (D), an addition to an existing product line, is correct. The drink is just an addition to an already established product line.

In developing its marketing plan, a retailer has a "buy one, get one free" swimsuit sale during the month of May. Which of the following elements of the marketing plan best describes the retailer's approach?

Option (D), marketing tactics, is correct. Marketing tactics consist of the specific activities to carry out the marketing strategies. In this instance, a May swimsuit sale was developed to carry out the strategy.

A DECA student begins working at a local fast-food restaurant. As part of the training process, each employee is required to study information about the chemicals used to clean the restaurant. The trainer explains that the manufacturer includes instructions about proper handling of the product and first-aid directives in the event of an accident. The information that the trainer gives to the employee is primarily found in which of the following documents?

Option (B), Material safety data sheets, is correct. Material safety data sheets contain important information about the characteristics and actual or potential hazards of a substance.

Rhonda, a cooperative education student, has recently been placed in a chain restaurant. She ultimately wants to work for an advertising agency, so her training sponsor allows her to attend the restaurant's regional advertisement meeting. Which of the following critical functions of acceptable training stations best describes why the training sponsor is allowing Rhonda to attend the meeting?

Option (B), Offering experiences related to a student's career objective, is correct. By sending Rhonda to the advertisement meeting, the training sponsor was exposing her to occupational experiences related to advertising, her career objective.

When calculating the asking price for a new car, the auto dealer not only has to consider the cost of the car but also has to take into account that it must cover other costs to run the business. Which of the following pricing-policy factors is the auto dealer primarily taking into account when pricing the car?

Option (B), Operating expenses, is correct. Operating expenses are ongoing expenses that keep a business functioning. In this scenario, the auto dealer was focused not only on the cost of the car, but also the operating expenses when pricing the car.

Because of slumping sales, a Mexican restaurant decides to create three new cheese sauces and five new salsas and adds them as optional condiments to all meals. Which of the following best describes the growth strategy the restaurant is employing by adding new cheese sauces and salsas?

Option (B), Product development, is correct. Product development strategies focus on selling new products or developing new variations of them in existing markets. In this case the restaurant added new condiments, which was a new variation of the existing products.

The owner of a local café wants to create excitement and buzz about the café's new taco options, and the owner's objective is to attract local college students. Which of the following promotional applications is most appropriate for accomplishing the owner's goal?

Option (B), a word-of-mouth campaign that describes the delicious taste of the tacos, is correct. Oral or written recommendation by a satisfied customer to the prospective customers of a good or service is considered to be the most effective form of promotion.

Many consumers are familiar with a particular chain restaurant brand. They have definite opinions about the restaurant, know what to expect on each visit, and know what the brand stands for. Marketing managers would say that the brand has considerable...

Option (B), awareness, is correct. Brand awareness is the familiarity of consumers with a brand and what it stands for.

The best first step in the career planning process is to..

Option (B), complete a self assessment, is correct. A self-assessment helps you generate a list of your top skills and interests; hence, your job options are driven by your valued skills and interests.

The data that describes a group of people in terms of their age, marital status, family size, gender, or education level is referred to as..

Option (B), demographic, is correct. Demographics refers to a group of people in terms of their age, marital status, family size, gender, profession, educational level, and income status.

Which of the following is the process of putting a person's thoughts into signs or symbols?

Option (B), encoding, is correct. The question requires you to name the process by which you put a person's thoughts into signs or symbols; i.e., by which you encode their thoughts.

A leading clothing designer created a line of summer hats that fell in and out of favor with consumers quickly. The hats are primarily an example of a...

Option (B), fad, is correct. A fad is a desirable trend characterized by lots of energy and is very short-lived.

A price adjustment changes the...

Option (B), list price to the market price, is correct. The question requires knowledge of pricing dynamics to identify the impact of a price adjustment. Price adjustments are made to align a list price with what the market will bear. A price adjustment effectively changes the list price to the market price.

Which of the following elements of the communication mix involves direct interaction between a salesperson and a customer?

Option (B), personal selling, is correct. The question requires knowledge of marketing communication. The element of the communication mix that involves personal interaction between a salesperson and a customer is personal selling.

A peanut butter company recently changed its slogan to support its new marketing objectives. The new slogan, "Unlike other brands, Smith's Peanut Butter is great for breakfast with its eleven different vitamins and minerals," is a primary example of which of the following product strategies?

Option (B), repositioning, is correct. The company is trying to reposition their peanut butter in the minds of their customers so that they will think of it as a food that can be eaten at breakfast instead of viewing it as a food for lunch only.

The wholesale price of a dress is $15, and the retailer wants to mark up the price of the dress by 60 percent. Which of the following is the selling price of the dress at 60 percent markup?

Option (C), $21.00, is correct. To mark up the item 60 percent, one would use the following calculations: 60% = 0.60; multiply the wholesale price by the markup, or $15 x 0.60 = $9.00. Next add the markup amount to the wholesale cost to determine the selling price, or $15.00 + $9.00 = $24.00.

A bakery plans to sell cookies for 50 cents each and thinks it can sell 150 cookies a day. The store is open 365 days a year. If the bakery's fixed costs total $50,000 and the variable price per cookie is 10 cents, how many cookies must the bakery sell to break even?

Option (C), 125,000, is correct. The correct formula for the break even amount is as follows: Break Even Units = Total Fixed Cost / Fixed Cost Contribution per Unit. Fixed Cost Contribution per Unit = Sales Price per Unit - Variable Cost per Unit. Therefore, 50,000 / (0.50-0.10) = 125,000.

A marketing manager studied the sales data of a retail store and found that many customers who bought chocolate bars also bought strawberries. Which of the following most closely represents the technique used by the manager to analyze the data?

Option (C), Data Mining, is correct. Data mining uses statistical tools to reveal trends and relationships between data.

Which of the following advertisement types promotes an organization's image or philosophy?

Option (C), Institutional, is correct. The advertisement type that promotes a company's image or philosophy is known as institutional advertising. It is designed to buttress the image of an organization, rather than the sale of a product.

Which of the following approaches to creating a marketing communication budget do companies most frequently use?

Option (C), Objective and Task, is correct. The objective-and-task method is the most defensible method because the calculations are based on concrete numbers. Research has shown that more than 60% of consumer goods companies and 70% of industrial goods companies use the objective-and-task method in setting marketing communication budgets.

Which of the following is a product or service pricing strategy?

Option (C), Penetration pricing, is correct. The question tests your knowledge of pricing strategies. Of the four choices, only penetration pricing, pricing a new technology low or even giving it away to penetrate the market and build an installed base of users; is a legitimate strategy type.

Barbara is a salesperson for a sporting goods company. When she researches a customer before making an offer, which of the following is she doing?

Option (C), Preparing, is correct. The question requires you to apply your knowledge of the selling process to identify the step that follows customer research. The steps are prospecting, preparing, approaching, presenting, handling objections, closing, and following up. Researching is part of preparing.

Place the following steps in the marketing research process in the correct order. A. Obtaining the data B. Applying the results C. Analyzing the data D. Recommending solutions E. Defining the problem

The steps in proper sequence for the marketing research process are: (1) defining the problem, (2) obtaining the data, (3) analyzing the data, (4) recommending solutions, and (5) applying the results.

A company that is conducting a situation analysis must evaluate its most recent marketing activities and its marketing plans along with which of the following?

Option (C), The external forces and trends affecting the company, is correct. The essence of situation analysis is taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it.

Which of the following costs changes along with the quantity produced? Fixed Marginal Total Variable

Option (C), Total and Variable, is correct. Fixed costs, by definition, do not change when more units are produced. Similarly, the marginal cost is a constant; it is simply the cost of adding one additional unit. Variable cost, however, by definition changes as quantity increases; adding more units increases the variable cost. If adding more units increases the variable cost, the total cost must also increase since total cost = fixed cost + variable cost.

Which of the following is the name for a coupon that is included in a package for later purchase?

Option (C), a bounce-back coupon, is correct. A bounce-back coupon is given to the consumer after the sale in hope of incentivizing him or her to come back to the store

Which of the following is a measurement of the sensitivity of demand to changes in prices?

Option (C), price elasticity, is correct. The question asks about price analyses. Price elasticity measures how much the quantity demanded of a good or service changes as its price changes.

Which of the following is a manufacturer's primary objective in making coupons available to customers?

Option (C), to stimulate demand, is correct. Offering price incentives is a common strategy used in the consumer goods arena to stimulate demand. Coupons serve to tip the customer's decision point based on price as the major appeal.

Federal funds for marketing education have tended mostly to support which of the following areas?

Option (D), Career and technical skills, is correct. The question assesses knowledge of federal legislation. The Carl D. Perkins Career and Technical Education Act of 2006 allocates federal funding for training and development of vocational skills in secondary and postsecondary institutions.

Sharon sells her decorated umbrellas by going from store to store asking retailers to buy a dozen decorated umbrellas to sell in their store. Sharon does not research the stores before contacting them; she assumes that any kind of store can sell her umbrellas and make a good sale. Which of the following methods is Sharon using?

Option (D), Prospecting, is correct. The question requires knowledge of selling methods. The process of simply canvassing potential buyers without any research is known as prospecting.

A logistics manager needs to transport a large quantity of coal from the East Coast to the West Coast. Which form of transportation would be the most economical way to transport the coal?

Option (D), Railroads, is correct. Railroads are one of the most cost-effective modes for shipping large amounts of bulk products like coal, sand, and farm and forest products over long distances.

A company wants employees to learn new and different skills so that they retain the same level of employability. Which of the following techniques is the company primarily implementing?

Option (D), Retraining, is correct. Retraining involves learning new and different skills so that an employee can retain the same level of employability.

A start-up company has limited resources and wants to reduce the risk of competitors taking its customers. Its broad product market consists of five heterogeneous submarkets. Which of the following is the best type of target market strategy for the company to pursue?

Option (D), Single target market, is correct. A firm with limited resources may not have the ability to target more than one market. Additionally, focusing all of its efforts on one segment may allow it to defend the segment against competitors.

A publishing company frequently gives out t-shirts and hats at different sporting events to create awareness of the organization. Which of the following is the company using?

Option (D), Specialty promotions, is correct. The question requires you to apply your knowledge of promotional strategies to identify the approach a merchant uses to create awareness by giving out t-shirts and hats at sporting events. In this case, the merchant is enhancing company recognition by distributing, free of charge, articles of attire that likely will be seen by a larger number of people than just the recipient. This type of initiative to increase share of voice is called specialty promotion.

Which of the following can best be described as names and symbols that are used to identify a company and are protected under the Lanham Act of 1946 when registered with the federal government?

Option (D), Trademarks, is correct. The question tests your knowledge of legal issues involving marketing. Many companies use symbols or the brand name to identify their product in a market. These names and symbols often require protection.

An effective manager understands that, compared to primary data, secondary data is...

Option (D), Useful for forming a situation analysis, is correct. Secondary data has already been collected by someone else and is often free or inexpensive. A person conducting a situation analysis should find relevant secondary data to review early in the marketing research process.

Which of the following is a form of trade sales promotion in which a temporary price reduction is offered to resellers for purchasing specified quantities of a product?

Option (D), a buying allowance, is correct. The question requires you to apply your knowledge of product promotion. Specifically, you are asked to identify the type of sales promotion characterized by temporarily reducing the price to induce resellers to purchase specified quantities of a product. This type of promotion essentially offers resellers a discount on a specific number of product units, and is thus best described as a buying allowance.

Which of the following are factors for pricing decisions? Cost Competition Customer value

Option (D), all three, is correct. The question requires knowledge of pricing dynamics to assess the importance of cost, competition, and customer value in making pricing decisions. Cost is a key input to pricing decisions: the price is composed of cost and profit. Competition is a key determinant of price: a competitor's price is the reference price on which price will be based. The actual price will be higher or lower than the reference price, depending on perceived value; that is, customer value.

A national home-repair company decides to increase advertising and add a sales person in an existing market. The company's goal is to increase sales in its current line of midlevel home repairs. Which of the following growth strategies most closely represents the company's direction?

Option (D), market penetration, is correct. Market penetration involves manipulating current markets and current products to produce growth. The object is to gain an edge within the current target market.

Which of the following marketing types involves selling a single product to all customers with one single marketing mix?

Option (D), undifferentiated marketing, is correct. The question requires knowledge of the type of marketing that involves selling a single product to all customers with a single marketing mix. This type of marketing makes no distinction between types of customers; that is, it is undifferentiated.

A local specialty grocery store refuses to carry a line of cheese products manufactured by one of its suppliers because sales of the cheese have been low. The store's decision is primarily an example of...

Option (D), vertical conflict, is correct. The conflict is occurring between a manufacturer and a retailer, which is a hierarchical conflict in the channel.

Which of the following are examples of trade barriers? Select all that apply.

Options (A) a tariff, (B) an import quota, and (D) a voluntary export restraint, are correct. Trade barriers are restrictions on what would otherwise be free trade. A tariff is a type of duty; it is a tax on goods bought and sold. A quota is a nontariff restriction that may be imposed by one country on another. It is a quantitative restriction, thereby limiting the amount of goods traded. A voluntary export restraint is another example of a quantitative restriction, much like a quota.

Which of the following are the main aspects of a promotional mix? Select all that apply.

Options (A) personal selling, (B) advertising, and (C) pricing, are correct. The marketing promotional mix is the specific combination of personal selling, advertising, public relations, sales promotion, and direct marketing a company uses to pursue its advertising and marketing objectives.

A company's chief financial officer (CFO) noticed that the company's sales increased by $160,000 from the previous year to the current year. Which of the following measurements did the CFO most likely use to support the observation?

Option (A), Trend analysis, is correct. A trend analysis compares an item from one specific time period to another.

Which of the following is NOT a function of physical distribution?

Option (B), Purchasing, is correct. The question requires you to apply your knowledge of product distribution to identify an activity that is not a function of physical distribution. Buying the product precedes physical distribution; hence, the correct response is purchasing.

Which of the following strategies offers similar merchandise at a variety of predetermined prices?

Option (B), price listing, is correct. The question requires you to apply your knowledge of pricing strategies. Price lining is the strategy of selling similar merchandise at several different price points.

Which of the following is the best example of a push strategy in distribution channel management?

Option (B), Trade advertising and personal selling aimed at wholesalers and resellers, is correct. A push strategy aims its marketing at wholesalers and resellers and success depends upon the ability of those intermediaries to market the product.

Which of the following areas of government economic responsibility would include interstate highways?

Option (B), public goods and services, is correct. Public goods and services are made available to everyone because they are necessary. Interstate highways are examples of public services.

Which of the following is the most important cultural factor for a business to consider during a global expansion?

Option (B), Language, is correct. Language is the essential medium to create any type of communication. It is the lifeline of globalization.

A chocolatier wants to position its candy products using the tagline "Rich chocolate at Poor prices!" The chocolatier's strategy is most closely related to which of the following positioning strategies?

Option (A), Value, is correct. The value dimension is what is promised by a company's marketing and sales efforts, and then fulfilled by its delivery and customer service processes.

A cleaning service identifies both commercial and residential customers who responded positively to their current advertisements for the service. Which of the following primarily describes the groups that responded positively?

Option (B), Market Segments, is correct. The commercial and residential consumers are two different market segments, even though both groups of customers have similar wants and needs.

In a cooperative education program, the major goal is to help the students

Option (A), develop the ability to transfer what they have learned at school to the job and vice versa, is correct. The question requires you to apply your knowledge of the cooperative education program to identify the major goal of such programs. The primary objective of cooperative education is facilitating the transfer of school knowledge (what has been learned at school) to practice (applying what is learned at school).

Place the descriptions of different market structures beside the most appropriate market structure type listed below.

A monopsony is a single buyer with considerable control over demand and prices. A perfect competition is when many buyers and sellers are not able to influence prices. An oligopoly is when several large sellers have some control over prices. A monopoly is a single seller with considerable control over supply and prices.

To promote the addition of a new jazz class, a dance instructor taught all of the students a new flash mob jazz dance. At a specified time, the students gathered and spontaneously performed the dance at the local town square. Which of the following best describes this type of marketing?

Option (A), guerrilla marketing, is correct. Guerrilla marketing is a strategy that companies use to attract customers by using unconventional means. One tactic is to favorably impress customers, which the dance instructor aims to do in this scenario.

All of the following are typical of a company's marketing management tasks EXCEPT..

Option (A), market regulation, is correct. Market regulation is not typically included in marketing management tasks.

Of the following, the term LEAST likely to be discussed in a course in retailing is..

Option (A), personal property, is correct. The question tests your understanding of curricular topics in marketing. Personal property issues would be more likely to be discussed in a business law class, rather than a marketing class.

A restaurant sets a target profit after taxes of $96,250. The income tax rate is 23%. Which of the following most closely represents the pretax profit amount needed to achieve the profit target?

Option (B), $125,000 is correct. Target profit before taxes (x) = target profit after taxes ÷ (1 − tax rate); x = $96,250/(1-.23) = $125,000.

In business management, a problem that hinders a product from effectively reaching the consumer should be analyzed for channel conflict. Question: For each of the following phrases, indicate whether the phrase is representative of horizontal channel conflict or vertical channel conflict, based on the information given.

Horizontal, Vertical and Vertical. Horizontal channel conflicts occur between two departments on the same level of importance. Vertical channel conflict occurs when the conflict affects two different levels of a business

The climate, weather, terrain, and landscape of an area provide important information for a researcher who is segmenting a particular market. Based on the information, which of the following types of segmentation is the researcher primarily using?

Option (B), Geographic, is correct. Climate, weather, terrain, and landscape are geographical components of an area.

If a retailer paid $150 for a leather jacket and sells it for $200, the markup as a percentage of the selling price is..

Option (A), 25%, is the correct answer. The question tests your knowledge of discounting. Calculate the markup as a percentage of the selling price (markup /selling price). To answer the question we first calculate the markup (selling price - cost = markup, or $200 - $150 = $50), which is $50. We then substitute in the following equation: markup as a percentage of the selling price = markup / selling price = $50 / $200 = 25%.

A marketing information system refers to a set of procedures and methods that regularly generate, store, analyze, and distribute information for use in making marketing and business decisions in which of the following areas?

Option (A), Advertising, is correct. (A) is correct because it is the only true marketing and business activity. The other options involve human resources and are part of a company's business decision-making process, but do not involve marketing.

When a soft-drink manufacturer runs an advertisement promoting responsible consumption to avoid the destructive health effects of soft drinks, which of the following types of advertising is being applied?

Option (A), Advocacy, is correct. The question requires you to apply your knowledge of product promotion to identify the type of advertising that is being used when the manufacturer promotes responsible consumption to avoid the destructive effect of soft drinks. Such advertising takes a consumerist point of view rather than supporting a particular brand, and is, thus, best described as advocacy.

Which of the following is the most important outcome for a student completing a marketing education curriculum?

Option (A), Attainment of both marketing skills and knowledge, is correct. Marketing education is principally concerned with imparting knowledge about marketing and developing practical marketing skills.

Which of the following pricing objectives sets a price to recover the original investment as fast as possible?

Option (A), Cash Flow, is correct. The question asks about pricing strategies. The quickest way to recoup investment is to optimize cash flow.

The Sherman Antitrust Act prohibits which of the following?

Option (A), Conspiracy to control prices, is correct. The question asks about statutory restrictions on business practices. The Sherman Antitrust Act specifically focuses on conspiracy to fix prices.

Which of the following retail businesses is most likely to focus its product mix on width?

Option (A), Department Store, is correct. Product mix width (or breadth) refers to the number of product lines an organization offers. Product line depth is the number of product items in a product line.

Which stage of new product development is focused on understanding customer wants, needs, and ideas?

Option (A), Idea generation, is correct. The question asks about product service management. A key part of idea generation is an assessment of customer wants, needs, and ideas.

Which of the following stages of the product/service life cycle focuses marketing research efforts on consumer attitudes and preferences?

Option (A), Introduction, is correct. During the introduction stage, the manufacturer can still refine and adapt product attributes to maximize the product's acceptance among customers and to assure its survival beyond this stage.

Which of the following products will most likely be exclusively distributed?

Option (A), Lexus automobile, is correct. Retailers of specialty goods (i.e., Lexus) often try to secure exclusive dealerships in a given territory.

Which of the following is the most common distribution channel for service?

Option (A), Producer - consumer, is correct. The question asks about distribution channels for service offerings. Services are generally delivered directly from the producer to the consumer.

Place the following agents in a traditional consumer goods channel in the correct order, starting with the beginning of the channel.

The correct sequence is Producer, Wholesaler, Retailer, and Consumer. The producer comes first because this is the company where the product originates. The wholesaler then sells the product to retailers. Retailers sell the product to the consumer. The consumers are the final customers that purchase the product for use.

Place the following stages of the product life cycle in order from beginning to end.

The correct sequence is Introduction, Growth, Maturity, and Decline. There are four distinct stages every product goes through: (1) introduction, (2) growth in sales revenue, (3) maturity, during which sales revenue stabilizes, and (4) decline, when sales revenue starts to fall and eventually becomes too little to be viable.