Marketing Applications Exam
If transfer payments were counted in calculating gross domestic product, what would the GDP do? A Appear to be greater than it actually is B Appear to be less than it actually is C Exclude government spending D Be unaffected
A Appear to be greater than it actually is
The financial component of a marketing plan helps a business to compare the projected costs of implementing the plan with which expected factors? A Benefits B Expenses C Losses D Strategies
A Benefits
Which is an example of product bundling? A Business selling computer, printer, and scanner as a unit B Garden shop discounting prices of seasonal merchandise C Theme park charging admission and selling ride tickets D Lumber company selling wood chips as small-animal bedding
A Business selling computer, printer, and scanner as a unit
The headline, graphics, signature, and copy of a print advertisement should coordinate with one another, so that the message has which feature? A Clearness B Humor C Entertainment D Uncertainty
A Clearness
Sales training should be an ongoing process. Which information would most likely be released on a RSS feed in electronic sales training? A Comparison with the products of competitors B PDF of an annual report C Notification about a job promotion D Memorandum detailing how to avoid responding to questions about a public-relations crisis
A Comparison with the products of competitors
According to the law of diminishing returns, continuing to hire additional employees will eventually cause the production to change to which situation? A Decrease B Level off C Increase D Remain unchanged
A Decrease
The government decides to pass a new law requiring certain standards of air cleanliness be met. They will levy a tax on the production of automobiles that generate gas emissions above a certain limit. However, they also will provide tax incentives to automobile manufacturers for research and development of new cars with lower gas emissions. This is an example of which activity or activities? A Direct controls B Transfer payments C Hidden costs D Rent seeking
A Direct controls
Which is a primary advantage of conducting a focus group to obtain marketing information? A Discussion relevance B Cost effectiveness C Limited preparation D Moderator objectivity
A Discussion relevance
In organizational buying, reciprocity refers to the practice in which activities? A Engage in interrelated business transactions B Try to build long-term relationships with customers C Do not charge other businesses sales tax because of a most-favored status D Buy the same amount of goods from a company as the company is buying from them
A Engage in interrelated business transactions
Which category of an income statement indicates total profit? A Gross profit B Bottom line C Cash flow D Net profit
A Gross profit
An important function of using probing in a selling situation is to perform which action? A Identify the needs or wants of customers B Prevent any objections C Spend more time on the sale D Distract the customers
A Identify the needs or wants of customers
A manager is most likely to use financial information for which situation? A In determining resources available to fund a new project B For researching the demographics of a new target market C For calculating the number of on-the-job injuries in the past year D In establishing lines of authority within an organization
A In determining resources available to fund a new project
What often happens to an economy during a mildly inflationary period? A Increased growth B Decreased prosperity C Decreased profits D Increased unemployment
A Increased growth
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 which factors? A Industry standards B Research projections C Economic forecasts D Marketing procedures
A Industry standards
The salesperson should demonstrate to customers only those products that have which feature? A Interest the customers B Familiar to customers C Easy to demonstrate D Back up the sales dialog
A Interest the customers
George is trying to decide if his company should increase its production. To get an accurate idea of whether to increase production, he should prepare a graph that illustrates which components? A Marginal cost and marginal revenue B Total cost and total revenue C Marginal cost and total revenue D Marginal revenue and total cost
A Marginal cost and marginal revenue
Which 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.
A Members can often reduce conflict by focusing on the common goal of customer satisfaction.
If the customer requests a product without stating a price preference, the salesperson should begin by showing which type of product? A Moderately priced B Most expensive C A variety of price ranges D The least expensive
A Moderately priced
Which factor affects the time to make a purchasing decision? A Need for additional information B Loyalty to the business C Warranty terms D Availability of customer service
A Need for additional information
What type of probe should be used to determine what the customer is thinking? A Opinion-gathering B Information-gathering C Closed-end D Confirming
A Opinion-gathering
What are often 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
A Payroll and benefits
Which research method is appropriate when a business wants to obtain in-depth, qualitative information from a few customers? A Personal interview B Unsolicited e-mail C Fax surveys D Structured observation
A Personal interview
According to Maslow's Hierarchy of Needs, which one is satisfied when a person purchases products that meet his or her basic needs? A Physiological B Esteem C Safety D Social
A Physiological
When positioning a corporate brand, what is a marketer trying to determine by comparing the attributes of its products to those of competitors? A Points of difference B Causes of risk C Areas of concern D Frames of reference
A Points of difference
The price decision is closely related to which decision? A Product B Place C Need D Time
A Product
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
A Refuse to pass on the information
When inflation rate is low, prices tend to experience which situation? A Remain stable B Increase dramatically C Fluctuate daily D Reduce currency values
A Remain stable
Which type 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 technology
A Sales force automation technology
When evaluating the wording of a survey, the editor should make sure that each question contains which feature? A Simple words without jargon B Impressive but vague language C Clear, technical terms D Vocabulary with dual meanings
A Simple words without jargon
A business uses its budget to estimate how it will perform which activity? A Spend their money B File their taxes C Calculate their assets D Depreciate their assets
A Spend their money
The part of a print advertisement that is often noticed first by readers is which component? A The illustration B The business identification C The white space D The copy
A The illustration
Which situation is an example of a response error? A Tim did not answer the last two questions on a written survey. B Jenny coded reponses with a number two pencil instead of a number three. C Ben found that the sample group was not representative of the target market. D Angela developed a written survey containing open-ended questions.
A Tim did not answer the last two questions on a written survey.
Which component is usually included in a promotional plan? A Timetable for completion B Previous sales figures C Table of organization D Projected profit margins
A Timetable for completion
Why do governments usually calculate the unemployment rate on a monthly basis? A To detect changes in the economy B To help workers find new jobs C To determine which businesses are failing D To prepare for receiving less tax money
A To detect changes in the economy
Why does the Federal Reserve System raise interest rates? A To fight inflation B To increase demands for products C To decrease supply of products D To overcome inequalities of income distribution
A To fight inflation
Which is a way a business can use financial information? A To identify trends B To select selling strategies C To conduct focus groups D To create an economic system
A To identify trends
When you can identify a customer's want then a real market opportunity occurs ccurs during which situation? A True B False
A True
A good way to handle a customer objection is to perform which action? A Turn the objection into a selling point B Smile and walk away from the customer C Show the customer a different product D Strongly disagree with the objection
A Turn the objection into a selling point
A business that obtains private information about a customer's financial status and makes it public is behaving in which manner? A Unethical B Immoral C Illegal D impersonal
A Unethical
Complex buying behavior is most likely involved when the customer is purchasing which items? A Cars B Meals C Socks D Gasoline
A. Cars
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 B Variety C Complex D Basic
A. Habitual
Sandy and members of her team took turns randomly sketching and doodling on a piece of paper. Now, they are studying the doodles, trying to identify the shapes, and determining how the shapes can be related to a particular product opportunity. Sandy and her team are using which creative-thinking technique? A Synectics B Braindrawing C Free association D Starbursting
B Braindrawing
Which is the characteristic of a well-written executive summary? A Error-free, simple, and creative B Clear, concise, and error-free C Creative, concise, and informal D Concise, informal, and error-free
B Clear, concise, and error-free
During its 20 years of operation, the Normandy Company has made very few changes to its accounting methods and system. As a result, its financial information is likely to be in which condition? A Comparable B Consistent C Reliable D Conservative
B Consistent
To maintain positive relationships, all distribution channel members must perform which activity? A Limit ongoing communication B Coordinate efforts C Develop competing goals D Have equal power Key
B Coordinate efforts
Fluctuations in interest rates often have an impact on the use of which factor or factors? A Tax incentives B Credit C Discounts D Rebates
B Credit
Which is an example of a manager being unethical when communicating with employees? A Explaining that some information is confidential B Deliberately providing insufficient information C Sending information in simple chart form D Deliberately limiting the distribution of classified
B Deliberately providing insufficient information
According to Maslow's Hierarchy of Needs Theory, buying behavior that involves the acquisition of goods and services to elevate a person's status or recognition is satisfying which type of need? A Physiological B Esteem C Self-actualization D Safety
B Esteem
Lucille has created a six-page synopsis to include as a section in the beginning of her 224-page report. What should Lucille call this section when she creates the table of contents? A Bibliography B Executive summary C Footnotes D Results and recommendations
B Executive summary
To convince someone to use quantitative sales forecasting, which factor should be stressed? A Variety of opinions B Factual basis C Minimal cost D Ease with which findings are understood
B Factual basis
A business that effectively coordinates channel management with marketing activities is more likely to provide which component? A Attractive product displays B Good customer service C Free delivery D Flexible credit terms
B Good customer service
When conducting an external environmental analysis, businesses often focus on which factor or factors? A Previous demand B Industry growth C Marketing goals D Financial costs
B Industry growth
What is the benefit of clearly stating a research problem or issue? A It determines the sample size needed for the marketing research project. B It helps to keep marketing research focused and relevant. C It determines the findings of the marketing research project. D It helps the researcher to determine whether a short- or long-term study is needed.
B It helps to keep marketing research focused and relevant.
Positive and negative results can often be directly related to which factors about a company? A Its taxes B Its actions C Is customers D Its locations
B Its actions
What is a benefit for salesperson to use probing in a sales presentation? A The customer feels important. B Less time is needed to make a sale. C The customer feels reassured. D Product returns are increased.
B Less time is needed to make a sale.
Which is a characteristic of taxes? A Restricted to businesses B Levied by governments C Encouraged by consumers D Applied only to tangibles
B Levied by governments
One way a business can coordinate its promotional activities is to perform which activity? A Alternate institutional and promotional ads B Make sure salespeople know what is being promoted C Watch to see what competitors are promoting D Include both old and new products in its promotions
B Make sure salespeople know what is being promoted
Which external factor affects a promotional plan? A Desired image of the business B Makeup of target market C Size of the business D Funds available for promotion
B Makeup of target market
The promotional plan of a business is based on which component? A Financial plan B Marketing plan C Merchandise plan D Advertising campaign
B Marketing plan
Which factor has contributed to the increased use of electronic sales presentations vs. face-to-face sales presentations? A Audio and video conferencing B Meeting software and improved Internet access speeds C High-end telecommunication hookups and laptops D Computing power and video conferencing
B Meeting software and improved Internet access speeds
One of the major differences between the decisions made in organizational buying and the decisions made in consumer buying is that organizational buying decisions consist of which activity? A Made by members of senior management B More frequently made by groups C Made by influential people D Always voted on by supervisors
B More frequently made by groups
An effective executive summary should contain which component or components? A Necessary background for making quick decisions B Most important points from the report C Results of the marketing-research efforts D List of report elements and appendices
B Most important points from the report
Which situation would occur as a result of discoveries? A Economic activities contract. B New jobs are created. C Money supply decreases. D Production levels decrease.
B New jobs are created.
One of the main reasons for developing a marketing plan is to identify the strategies necessary to achieve which component or components of marketing? A Functions B Objectives C Mix D Share
B Objectives
A salesperson can try to identify a personality type by performing which activity? A Giving efficient service B Observing their actions C Serving them quickly D Asking personal questions
B Observing their actions
Which has more effect on the types of services that consumers buy than on the types of services that organizations buy? A Authority figure B Peer pressure C Limited availability D Reasonable price
B Peer pressure
Which technique is an example of the use of product demonstration? A Measuring the height of a customer B Preparing popcorn in a microwave oven C Having a customer try on a shirt D Handing out sale brochures
B Preparing popcorn in a microwave oven
What type of information do businesses include in their marketing plans? A Billing methods B Pricing strategies C Payroll systems D Accounting procedures
B Pricing strategies
A manufacturer expects product sales to increase during the coming year. How does this information affect product production? A Production should decrease. B Production should increase. C Production should remain stable. D Production should not be affected.
B Production should increase.
Which department would a marketing manager contact to make sure that enough products are on hand for an upcoming promotion? A Shipping B Purchasing C Accounting D Customer Service
B Purchasing
When Elliot was tabulating marketing research data, he transposed some numbers as he was converting raw data into numerical values. What type of error occurred? A Measurement B Recording C Sampling D Response
B Recording
One way to help customers with buying decisions is to explain what the product will do for them by using which technique? A Using suggestion selling B Relating product features to benefits C Questioning them D Displaying self confidence
B Relating product features to benefits
What should Jason avoid doing to shorten his sales cycles? A Avoid answering objections B Rely on other team members for product knowledge C Always use the same sales presentation D Improve the qualification process
B Rely on other team members for product knowledge
Market opportunity is often affected by which factor? A Location B Timing C Rewards D Methodology
B Timing
Why would a company need a flow of money? A To borrow B To exist C To sell D To invest
B To exist
Why should a businessperson understand business cycles? A To prevent the cycles from happening B To make plans that will help to level out cycles C To determine the cause of each cycle D To predict the exact beginning of cycles
B To make plans that will help to level out cycles
The best way to convert cost objections into selling points is to sell which component of the product? A Style B Value C Brand D Delivery
B Value
Customers are more likely to spend a lot of time evaluating several options before buying a product during which situation? A When the product is perishable B When the product is expensive C When the need is immediate D When brand insistence is a factor
B When the product is expensive
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? A Provide excellent customer service B Align strategies and activities with goals C Demonstrate corporate responsibility D Utilize touch points to reinforce company image
B. Allign strategies and activities with goals
Which transaction would be counted in the gross domestic product? A A florist purchases plants from a nursery. B A bakery purchases 50 pounds of sugar. C A customer purchases a sweater. D A restaurant purchases meat from a wholesaler.
C A customer purchases a sweater.
If a business lowers the price of a product for the purpose of taking business away from its competitors, which action is often the result? A A decrease in cost B An increase in profit C A gain in market share D A reduction in staff
C A gain in market share
Which is an example of an internal change that could affect a sales forecast? A A direct competitor is planning a new promotional campaign. B The birth rate increased following a 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.
C A new product line is to be offered by the business.
What should the first section of an executive summary contain? A A letter of authorization B A recommended course of action C A statement of purpose D An acknowledgement of the report's sponsors
C A statement of purpose
What is one way that price stability indicates the condition of the economy? A Increase in the money supply B Reduction in taxes and spending C Absence of inflation or deflation D Decrease in consumer buying power
C Absence of inflation or deflation
Which statement is true about print ads? A Ad copy is intended to catch the readers' attention. B Advertisers like to use as much copy as possible. C Ad copy can be any length that the advertiser wants. D Advertisers must include the price of products in ads.
C Ad copy can be any length that the advertiser wants.
A salesperson has explained the features and benefits of a product that appeared to be of interest to a customer. What should the salesperson do if the customer reacts negatively? A Hand the customer promotional materials and walk away B Accept the fact that the sale has been lost C Ask additional questions and explain other features and benefits D Proceed with the sales presentation
C Ask additional questions and explain other features and benefits
The main purpose of the headline in a print advertisement is to perform which activity? A Supply information B Identify the business C Attract attention D Express the product's benefits
C Attract attention
To calculate total revenue, a business multiplies the number of units sold by which other component or components? A Fixed costs B Marginal revenue C Average price per unit D Marginal costs
C Average price per unit
What might result if a manufacturer wants prompt payment for goods, but the intermediary wants to defer payment for as long as possible? A Limited variety B Increased risk C Channel conflict D Illegal activity
C Channel conflict
Which is a characteristic of the fact-finder customer personality? A Asks few questions B Shops quickly C Comparison shops D Wants purchases to be noticed
C Comparison shops
A manufacturer provides businesses with racks for displaying its products. This is an example of which activity? A Selection of channels of distribution B Use of cooperative advertising C Coordination of promotional activities D Development of an advertising campaign
C Coordination of promotional activities
Which part of a print advertisement sells the product's benefits to the consumer and arouses the desire to purchase it? A Signature B Logotype C Copy D White space
C Copy
Which is a source a business often consider when generating product ideas? A Design costs B Test results C Customer complaints D Promotional plans
C Customer complaints
How can unique aspects of a product influence expected channels in which it will be sold? A Customers refuse to buy a product if its unique aspects are sold through unexpected channels. B Unique aspects of products specify which channels the product must be sold. C Customers associate unique aspects of a product with its distribution to a few or to many locations. D Specific distribution channels can only be used for specific unique
C Customers associate unique aspects of a product with its distribution to a few or to many locations.
Tyler is a sales representative for the Lombardo Company and is selling high-end products to a new purchasing agent. The purchasing agent asked a series of questions about the reliability of the products. What type of behavior strategy did the purchasing agent exhibit? A Emotional B Offensive C Defensive D Rational
C Defensive
Which is an example of a purchase experience touchpoint? A Customer satisfaction surveys B Loyalty programs C Direct sales D Warranty programs
C Direct sales
What is one reason why the overall unemployment rate understates the actual employment situation? A Underemployed people are listed. B The rate is not seasonally adjusted. C Discouraged workers are not included. D The rate reflects regional differences.
C Discouraged workers are not included.
Which 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
C Employees' salaries
Which is a benefit of using multiple methods to acquire marketing research data? A Helps the researcher to ensure the validity and reliability of the findings B Helps the researcher determine the causes of exploratory research C Enables the researcher to see a broader picture than using one method D Enables the researcher to omit steps in the research process
C Enables the researcher to see a broader picture than using one method
Carlos considered the reliability ratings, gas-mileage savings, and warranty of a vehicle before deciding to purchase it. His motives were based on which factor or factors? A His desire for status B His loyalty to the brand C Facts D Intuition
C Facts
By regularly reviewing its budget, a business is able to determine if it is performing which activity? A Offering loans to employees B Paying interest to customers C Following their financial plans D Receiving discounts from vendors
C Following their financial plans
Which is the element of an advertisement that should be coordinated to make the ad effective? A Illustration, layout, artwork, text B Copy, typeface, color, slogan C Headline, illustration, copy, signature D Signature, slogan, type size, font
C Headline, illustration, copy, signature
Which feature makes it important for a salesperson to be able to explain? A Unique B Apparent C Hidden D Exclusive
C Hidden
By comparing the categories in an income statement, a business will be able to determine which situation? A If it is earning too much income B If it is paying too little for supplies C If it is spending too much on expenses D If it is acquiring goods for too low a price
C If it is spending too much on expenses
One action that an ethical business can take to help build the long-term trust and loyalty of its customers is to perform which activity? A Sell its customer list to third parties without permission. B Maintain detailed information about transactions. C Implement a comprehensive customer privacy policy. D Send daily opt-in e-mail messages to customers.
C Implement a comprehensive customer privacy policy.
Why is it often considered unethical to gossip? A May not be courteous B Takes time away from work C Information may be false D Is critical of other people
C Information may be false
Businesses that examine the strengths and weaknesses of their goods or services before developing promotional plans are considering which factor? A External B Social C Internal D Cultural
C Internal
How does double counting affect the gross domestic product? A It causes trade surpluses, which help the GDP. B It decreases the GDP. C It inflates the GDP. D It causes economic declines, which hurts the GDP.
C It inflates the GDP.
Which is a primary factor that a business would consider when positioning its corporate brand? A Its form utility B Its executive summary C Its target market D Its promotional budget
C Its target market
What about the quantity of number of items a salesperson shows to a customer at one time should be considered? A Planned B Specific C Limited D Unrestricted
C Limited
What is a negative effect of workplace gossip? A Less conflict B More collaboration C Lower productivity D Higher morale
C Lower productivity
A guideline to follow in closing sales is to perform which action? A Perfect and use one closing technique B Pressure the customer to buy C Maintain a positive attitude D Leave the decision up to the customer
C Maintain a positive attitude
Businesses follow the law of diminishing returns in order to combine the right amount of variable resources to achieve production levels that perform which activity? A Control budgets B Increase expenses C Maximize profits D Restrict revenues
C Maximize profits
To generate innovative product ideas, a business often performs which activity? A Evaluates traits B Interprets laws C Monitors trends D Measures feedback
C Monitors trends
What is a characteristic of organizational buying behavior? A Quick decision making B Low levels of demand fluctuation C Multiple buying influences D Limited buyer-seller contact
C Multiple buying influences
An individual returns a marketing-research survey that contains unanswered questions. This is an example of what type of error? A Mathematical miscalculation B Interviewer oversight C Non-response error D Rating mistake
C Non-response error
A probe that requires a broad response to a topic and cannot be answered with yes or no is known as which type of question? A Closed-ended B Confirming C Open-ended D Information-gathering
C Open-ended
The purpose of the marketing planning process is to balance the internal strengths and weaknesses of a company with which external factors? A Costs and expenses B Products and resources C Opportunities and threats D Goals and objectives
C Opportunities and threats
Which is motivation for a customer's buying behavior that is based on loyalty? A Recognition B Security C Patronage D Utility
C Patronage
Gary believes that the upper class should pay a higher income tax rate than the middle and lower classes. What tax structure does Gary favor? A Proportional B Regressive C Progressive D Exclusive
C Progressive
Which employee is a good source for obtaining new product ideas because he or she is in contact with customers on an ongoing basis? A Graphic designer B Tax auditor C Sales representative D Office manager
C Sales representative
Which is a characteristic of an impulsive customer? A Comparison shops B Asks many questions C Selects products quickly D Challenges salesperson
C Selects products quickly
Which statement is true regarding executive summaries? A Always write the executive summary before writing the body and appendices of a report. B Make the executive summary approximately one-fourth to one-third as long as the entire report. C Sequence the main ideas of the executive summary in the same order that they appear in the full report. D Use jargon, technical language, abbreviations, and slang frequently throughout the executive summary.
C Sequence the main ideas of the executive summary in the same order that they appear in the full report.
Which action would be taken if a customer has a fact-finder personality? A Emphasize the value of the product B Consider the customer a challenge C Suggest product care techniques D Suggest substitutes with caution
C Suggest product care techniques
The reason why a business prepares a balance sheet is to determine which factor? A The estimated annual income B The average cash flow C The current financial situation D The future sales goal
C The current financial situation
Past sales records show that sales increased at a clothing store when a 10th rack of clothing was added to the store floor. However, when an 11th rack is added, sales increased by only 1%. In economics, this is explained by which concept?
C The law of diminishing returns
An international soft-drink company that wants to add bottled spring water to its product mix has determined that there are four major brands that 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 what factor? A The action plan B The marketing strategy C The situation analysis D The purpose and mission
C The situation analysis
How does a marketing plan affect the way the marketing team plans its strategies? A The team has more difficulty planning strategies. B The team can plan strategies up to 10 years in advance. C The team can plan strategies with more precision. D The team can plan strategies more quickly.
C The team can plan strategies with more precision.
How do customers benefit from the effective use of buying motives in selling? A They become repeat customers. B They tell others about the business. C Their needs and wants are satisfied. D Their merchandise returns decrease.
C Their needs and wants are satisfied.
The salesperson should pause before answering a customer's objections in order to perform which activity? A To delay dealing with the objection B To show empathy for the customer C To get the full attention of the customer D To let the customer see that he or she is upset
C To get the full attention of the customer
Why would a business use its budget to estimate income? A To increase losses B To increase shrinkage C To plan purchases D To develop services
C To plan purchases
What should researchers consider when evaluating the design of questionnaires? A Name of developers B Size of paper C Types of questions D Number of participants
C Types of questions
An important aspect of using technology in customer relationship management involves which activity? A Allowing employees to have complete access to customer information B Posting the information of customers on a website C Updating customer information in the computer database D Providing customers with excessive product information
C Updating customer information in the computer database
The price of raw materials used in manufacturing a product doubled what had been projected for the year. What can the business determine by analyzing its financial information? A Supply and demand B Equipment costs C Variances D Errors in forecasting
C Variances
What type of buying behavior includes low customer involvement, significant brand awareness, and a desire for change? A Status-oriented B Risk-taking C Variety-seeking D Brand-insisted
C Variety-seeking
The best time for a business to purchase new equipment is during which situation? A When job growth declines. B When consumer demand decreases. C When interest rates are low. D When the gross domestic product fails.
C When interest rates are low.
A company should consider the needs and wants of the target market during which situation? A When it develops its personal budget B When it achieves its short-term goals C When it positions its corporate brand D When it prepares its weekly expense reports
C When it positions its corporate brand
By observing facial expressions of a customer during a sales presentation, what can be learned about the customer? A Where they live B Their style preferences C Which selling points appeal to them D Their mannerisms
C Which selling points appeal to them
How is a budget like a tree? A A budget changes from season to season. B A budget is supported by strong sales like a tree is supported by strong roots. C A budget requires care and nurturing, like a young tree. D A budget is divided into categories and subcategories similar to tree branches.
D A budget is divided into categories and subcategories similar to tree branches.
An energy company has misrepresented its financial status on its latest accounting reports. This is an example of which negative action? A Failing to provide what customers want B Not keeping promises C Responding inappropriately to crises D Acting unethically
D Acting unethically
What is an important aspect of a customer-centric business? A Reducing the number of touch points with customers B Limiting decision making for employees C Being satisfied with the status quo D Aligning business activities with customer needs
D Aligning business activities with customer needs
What is the element of a print advertisement that supports the ad's statement is called? A An identification B An amplification C A benefit D An endorsement
D An endorsement
What are the categories that a business uses 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 equity
D Assets, liabilities, and equity
One reason a channel of distribution that has strong leadership is often able to avoid conflict within the channel is because the leader can perform which action? A Regulate change B Develop friendships C Provide training D Authorize the demand for cooperation
D Authorize the demand for cooperation
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 has which characteristic? A Attractive to all customers B Designed to appeal to a target market C Competitively priced D Available when customers want it
D Available when customers want it
What affects the place decision? A Product features and benefits B Need for additional information C Warranty D Business loyalty
D Business loyalty
Six Thinking Hats is a creative-thinking technique that stimulates ideal generation through which activity? A Assigning each group member a different job B Playing the devil's advocate C Providing positive feedback D Categorizing information
D Categorizing information
Which document is it most appropriate to include an executive summary? A Manuscript outline B Six-page case study C Employee handbook D Complex research report
D Complex research report
Which often influences the buying behavior of consumers in different parts of the world? A Aptitudes B Talents C Language D Culture
D Culture
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 the human touch.
D Customers may feel they are losing the human touch.
One reason why it is important to coordinate the headline and illustrations in an advertisement is to perform which action? A Customers are aware of the cost involved. B Customers appreciate the style of layout. C Customers understand the company name. D Customers want to read the message.
D Customers want to read the message.
Because of the high interest rates charged on retail credit, the Andrews family decided to pay cash for purchases. What affected this decision? A Opinions of friends B Seasons of the year C Educational level D Economic conditions
D Economic conditions
Making sure that the headline, illustrations, and copy promote the same theme is an example of coordinating which components? A Arrangements in print B Principles of design C Channels of communication D Elements in advertisements
D Elements in advertisements
When inflation levels are low, businesses often consider performing which action? A Increasing interest rates B Reducing their personnel C Decreasing outputs D Expanding their operations
D Expanding their operations
It is important for salespeople to understand what motivates customers to decide to buy. Salespeople are then able to perform which activity? A Answer questions about company policies B Understand the features of all products C Describe how the company competes D Explain the appropriate product benefits
D Explain the appropriate product benefits
A person who quits one job and spends a short amount of time out of work while looking for a new position is experiencing which type of unemployment? A Seasonal B Structural C Cyclical D Frictional
D Frictional
What are the main components of a budget? A Cash flow and net worth B Assets and liabilities C Profit and loss D Income and expense
D Income and expense
Businesses often coordinate their promotional activities in order to attract customers and perform which other activity? A Conduct research B Survey opinions C Collect data D Increase sales
D Increase sales
A business estimates that its cash flow from sales during the upcoming season will be higher than it was for the same period last year. The estimate is possible based on this financial information and which other sources? A Realistic goals B Future earnings C Potential costs D Industry trends
D Industry trends
Salespeople should use which probing method to determine facts about their customers that will be helpful in satisfying the customers' needs? A Opinion-gathering B Confirming C Closed-end D Information-gathering
D Information-gathering
Which is the component of a questionnaire that guides respondents through the survey process? A Coding box B Leading questions C Flow chart D Instructions
D Instructions
Which 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
D List of employees who will be promoted
A characteristic of product bundling is that the price of the bundle usually cause which situation? A Adjusted based on the type of customers who purchase the bundle B Intended to be the same as the prices set by competitors C High to reflect the quality and status of each product D Lower than the combined price of the products sold separately
D Lower than the combined price of the products sold separately
Which is a social factor that often influences buying behavior? A Individual beliefs B Basic needs C Personal attitude D Marital status
D Marital status
Which is a situation for a business to plan its budget carefully? A Supplies may be scarce. B Time is limited. C Regulations are complex. D Money is limited.
D Money is limited.
Why should salespeople avoid overselling to customers? A Overselling helps customers to decide. B Overselling creates a positive atmosphere. C Overselling indicates a lack of interest. D Overselling interferes with buying decisions.
D Overselling interferes with buying decisions.
Target markets are important factors to consider when a business is performing which activity? A Analyzing personnel reports B Establishing their accounting systems C Distributing budget information D Positioning their corporate brands
D Positioning their corporate brands
Major Company hired a fifth employee and production increased by 1,000 units per week, so it hired a sixth employee and production increased by an additional 900 units per week. What should the company expect to happen if it continues to hire more employees and does nothing to the work environment? A Level of production will increase proportionately. B Production per employee will fluctuate. C Production per employee will become more stable. D Production per employee will decrease.
D Production per employee will decrease.
Motives, perception, attitude, lifestyle, personality, and abilities are which factors influencing consumer behavior? A Economic B Social C Political D Psychological
D Psychological
Salespeople should display self-confidence in closing sales in order to perform which activity? A Show customers that the salespeople are not pushy B Show customers that the salespeople are eager C Gain the interest of customers D Reassure customers about their buying decisions
D Reassure customers about their buying decisions
Which is a function of some taxes? A Decrease employee liability B Limit business profit C Control employee compensation D Regulate business activity
D Regulate business activity
An established business receives its primary flow of money from which source or sources? A Loans B Credit C Fees D Sales
D Sales
While reviewing financial information, Troy noted that the company earned $245,956 in January, $248,122 in February, and $252,878 in March. Which most likely summarizes the financial situation? A Capital assets are depreciating at a slower rate. B Cash flow continues to be tight. C Accounts receivable exceed accounts payable. D Sales are steadily increasing.
D Sales are steadily increasing.
Which situation 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 customers C Collecting customer information with authorization to develop a customer profile D Selling customer lists without their consent to third parties
D Selling customer lists without their consent to third parties
Which is the best example of the coordination of promotional activities? A Advertising an upcoming sale a week ahead of time B Using personal selling to earn a sales commission C Obtaining publicity for the firm's new product line D Sending out samples of a new product that is on display
D Sending out samples of a new product that is on display
During economic fluctuations, taxes serve which purpose for the economy? A Destroying B Reducing C Expanding D Stabilizing
D Stabilizing
Many people make the mistake of thinking that customer relationship management refers solely to which factor or factors? A People B Strategies C Processes D Technology
D Technology
Which is a benefit of customer relationship management? A The ability to double profits B A work force that does not commit errors C A decrease in customer advocacy D The opportunity to create targeted marketing campaigns
D The opportunity to create targeted marketing campaigns
In the United States, how are public schools are usually funded? A Through corporate taxes B Through tariffs on imported goods C Through local property taxes D Through tax-exempt donations
D Through tax-exempt donations
Emma is reviewing the sales budget in relation to the actual sales generated for a set time frame. How is Emma using financial information in this situation? A To analyze the impact of aging accounts B To establish new quality standards and benchmarks C To identify external economic trends D To compare estimated performance with actual performance
D To compare estimated performance with actual performance
A primary reason for a business to bundle its products is for which activity? A To obtain referrals B To increase sales quotas C To control expenses D To encourage long-term use *
D To encourage long-term use
Why do advertisers use endorsements in their print ads? A To benefit from the personal experiences of users B To encourage readers to take action C To show different uses for a product D To strengthen the sales message
D To strengthen the sales message
Which is a buying decision customers must make before making a purchase? A When was the product introduced? B How many businesses sell the product? C Who already owns the product? D What brand or style would be best?
D What brand or style would be best?