true false & vocab

True or False: An ad aired during prime time on a major TV network costs less than an ad aired at midnight on the same network.

False. An ad aired during prime time on a major TV network costs more than an ad aired at midnight on the same network.

True or False: Broadcast media includes TV, radio, and billboards.

False. Broadcast media includes TV, radio, and Internet.

True or False: Credit unions are the same as commercial banks.

False. Commercial banks are different than credit unions.

True or False: Consumer advocacy groups are generally run for profit.

False. Consumer advocacy groups are generally nonprofit.

True or False: Direct-mail advertising really isn't all that widely used.

False. Direct-mail advertising is used widely.

True or False: Rational advertising promises that amazingly good things will happen to you if you buy a certain product.

False. Emotional advertising promises that amazingly good things will happen to you if you buy a certain product.

True or False: Familiar generic product names include Kellogg's, Nike, and Coca-Cola.

False. Familiar brand product names include Kellogg's, Nike, and Coca-Cola.

True or False: Full warranties mean that the product will be replaced or repaired over the full duration of the consumer's life.

False. Full warranties mean that the entire product will be repaired or replaced for free.

True or False: If the supply of an item is plentiful, it gains value, and therefore would serve well as money.

False. If the supply of an item in scarce, it gains value, and therefore would serve well as money.

True or False: If you pay a bike to repair your bike, you are buying goods.

False. If you pay a bike shop to repair your bike, you are buying services.

True or False: Interest is only earned on checking accounts.

False. Interest is earned on checking and savings accounts.

True or False: Money is a resource.

False. Money is a medium of exchange.

True or False: Money should be stationary.

False. Money should be portable.

True or False: Profit is the amount of money taken in by a business before paying for the cost of producing its goods and services.

False. Profit is the amount of money taken in by a business after paying for the cost of producing its goods and services.

True or False: Stores that advertise free prizes for shoppers are prohibited by law from setting conditions such as requiring shoppers to buy something.

False. Stores that advertise free prizes for shoppers are not prohibited by law from setting conditions such as requiring shoppers to buy something.

True or False: Newspaper ads are the most expensive of all advertising media because an ad is guaranteed to be seen by consumers for weeks.

False. Television ads are the most expensive.

True or False: The Federal Reserve System is responsible for supervising all of the banks in the United States.

False. The Federal Reserve System is responsible for supervising all member banks in the United States.

True or False: The first step in the decision-making process is listing the alternatives.

False. The first step in the decision-making process is identifying the problem.

True or False: here are enough resources in the world to satisfy everyone's wants.

False. There is a scarcity in resources to fulfill everyone's wants.

True or False: You are most likely to find a good price on name brand clothes at a department store.

False. You are most likely to find a good price on name brand clothes at an off-price store.

True or False: The first thing you should do if a product turns out to be defective is take the store that sold it to you to the small claims court.

False. You should first take it back to the store.

True or False: Private wants are widely shared by many people.

False: Public wants are widely shared by many people.

True or False: The FTC inspects foods and gives them grade labels.

False: The USDA inspects foods and gives them grad labels.

The total value of goods and services produced in a country in a given year is called its ___________.

Gross domestic product (GDP)

What part of the business cycle is inflation low? When is it high?

It is low during a depression or recession. It is high during recovery and prosperity.

What part of the business cycle is GDP low? When is it high?

It is low during a depression or recession. It is high in recovery or prosperity.

What part of the business cycle is unemployment low? When is it high?

It is low during recovery and prosperity. It is high during a depression or recession.

An example of a capitalist country is _________.

Japan

The Consumer Bill of Rights was outlined by ______.

John F. Kennedy in 1962

Explain the four stages of the business cycle.

Know this for the final... think in your head for now and click the "correct" button.

The _______ consists of the four main elements of marketing. What are the four elements?

Marketing mix. Product, place, price, promotion.

True or False: A medium of exchange is something that is used between people to make doing business easier.

True

True or False: Advertising rates in all media are determined by the size of the ad, the number of people it reaches, how often it appears, when it appears, and where it is placed.

True

True or False: Businesses are generally willing to offer refunds or replacements to satisfy an unhappy customer.

True

True or False: Buying a heavy coat in the summer makes sense, cost-wise.

True

True or False: Companies engage in competition to win customers.

True

True or False: Magazines are of little use to local advertisers who wish to promote a "limited-time-only" offer.

True

True or False: Outdoor advertising media, such as billboards, are banned in some states because they detract from the local scenery.

True

True or False: Pop-ups, banners, and screen ads are all types of cyber ads.

True

True or False: Product marketing deals with how and where to sell a product.

True

True or False: Promotional sales are often tied to holidays.

True

True or False: Public utilities, such as power companies, are considered legal monopolies.

True

True or False: The Federal Reserve is run by a board of governors, which is headed by a chairperson.

True

True or False: The National Consumers League runs a fraud information center.

True

True or False: The National Highway Traffic Safety Administration has the authority to order auto manufacturers to recall cars with defective parts

True

True or False: The cost of a TV ad is twofold: the expense of actually producing the ad, and the expense of airing the ad during a TV show.

True

True or False: The interest that a bank makes on loans is used to pay interest on customer accounts and to cover the bank's expenses.

True

True or False: When comparison shopping for low-cost items, one should consider the cost of the time and energy spent as well as the money to be saved.

True

True or False: Workers have more input about how business is done today than they did 50 years ago.

True

The economy of the United States is __________.

a mixed economy

For consumers, competition between products means____.

more choice

The national debt is the total amount of money the government _____.

owes

The four stages of the business cycle are __,____,_____,_____.

peak, recession, depression, and recovery

A ______ is issued when a company decides to take back or repair defective products.

recall

When you ask for a ____, you are asking a business to return the cost of a product.

refund

Building customer loyalty through good customer relations is called ____.

relationship marketing

_________ is when goods or services are sold directly to the consumer.

retailer

Finding and analyzing a specific group of consumers is called ________.

target marketing

A ____ buys large quantities of goods from manufacturers and resells them to other businesses.

wholesaler

If a business refuses to correct a problem, with a defective item, you should ______________.

write to the manufacturer

The _________ was a record period of prosperity in the United States

1990's

An example of a capital resource would be____________.

An ice cream truck

Define: Advertising an item at a low price to lure customers into a store, then telling the customers that the store is out of that product in order to get them to buy a more expensive item.

Bait and Switch

The _____ collects information on local businesses, handles complaints, shares information about problems that consumers have had, and distributes consumer publications.

Better Business Bureau

Define: Refusing to buy a company's goods or services because you object to the company's policies or products.

Boycott

Define: The process of preserving, protecting, and planning the management of resources.

Conservation

Define: Four rights, including the right to choose, the right to be informed, the right to safety, and the right to be heard.

Consumer rights

________ is not a stage of product development.

Distribution

True or False: The Consumer Federation of America has more than 260 million members in over 50 groups.

False. The Consumer Federation of America has more than 50 million members in over 260 groups.

Define: Deliberately misleading business practices.

Fraud

Skilled, unskilled, physical, or intellectual are used in this chapter to describe ______________.

Human resources

This is not a question marketers consider to determine the price of a product:______.

Is the price fair?

_______ are legal permits to conduct business, usually issued by the state.

Licenses

Conservation is a way of dealing with the issue of _________.

Limited resources

Define: Collecting products for reprocessing so that they can be used again.

Recycling

The biggest impact distribution has on marketing is how it affects _________.

The pricing of the product.

True or False: The two main types of banks accounts are checking and savings accounts.

True

The ______ is the amount of money a company must make on a product to pay for the cost of producing it.

break-even point

________ champion consumers' rights.

consumer advocates

A _______ provides information through the media on consumer issues such as product safety and testing.

consumer reporter

A channel of distribution directs _____.

products to consumers

The responsibility for consumer education falls on _________________.

Consumers and businesses

Define: A movement to pass laws protecting consumers from unfair and unsafe business practices.

Consumers movement

Define: Contamination of air, water, and land.

Pollution

Define: The legal responsibility that manufacturers have to make a safe product.

Product liability

______ is not one of the functions of marketing.

Production

True or False: Transit advertising is mainly used in rural, sparsely populated areas.

Transit advertising is mainly used in urban, highly populated areas.

A _______ settles cases involving relatively small amounts of money.

Small claims court

When a recession spreads from one industry to other industries it's called ______.

The ripple effect

Natural resources become factors of production_______.

When they are used to produce goods.

The means by which a product is distributed is called the _____.

channel of distribution

________ is the study of the population in terms of age, gender, income, and education.

demographics

A ________ sells goods to the final consumer for personal use.

direct distribution

______ indicate the quality of a food.

grade labels

_____ involves one or more intermediaries when distributing goods or services.

indirect distribution

_________ are allowed to operate without competition.

legal monopolies

A _____ is a group of consumers who share common wants and needs, and who have the ability to purchase a product.

market

______ consists of gathering and studying data about the buying habits of consumers.

market research

_____ is the process of creating, promoting, and presenting a product to meet the wants and needs of consumers.

marketing

Businesses' needs to know their customers' wants and needs is called the ________.

marketing concept