Question 1. 1. (TCO 3) A small business is defined as a company that _____. (Points : 5)
is newly launched and has fewer than 100 shareholders
is dominant in its field and employs fewer than 1,500 employees
has a revenue of less than $750,000
is independently owned and operated and not dominant in its field
is funded through personal lines of credit and has fewer than 1,000 employees
Question 2. 2. (TCO 3) One of the general characteristics of a small business is that it typically sells fewer products _____. (Points : 5)
to a larger customer base
to fewer market segments
to foreign companies
at lower costs to government agencies
at higher costs
Question 3. 3. (TCO 3) TechPoint, a technical writing and business documentation firm, finds it difficult to handle its training requirements. The company forms a one-year contract with Impact Inc., a language training firm, to conduct training and refresher courses for their employees. This is an example of _____. (Points : 5)
downsizing
outsourcing
vertical integration
market penetration
diversification
Question 4. 4. (TCO 3) _____ are expensive organizational products with a long useful life. (Points : 5)
Shopping products
Capital items
Expense items
Specialty products
Convenience products
Question 5. 5. (TCO 3) The introductory stage will be followed by a _____ stage for a successful product. (Points : 5)
maturity
research
saturation
growth
infiltration
Question 6. 6. (TCO 3) The maturity stage of product lifecycle is _____. (Points : 5)
a stage where a product’s price is at a high level
usually the shortest stage in a product’s lifetime
characterized by steep decline in profits
typically followed by a growth stage
a stage where firms have to win sales away from others
Question 7. 7. (TCO 4) Which of the following statements is true about the consumer decision process? (Points : 5)
Behavioral economics suggests that consumer behavior follows a completely rational process.
Cognitive dissonance refers to the delivery of marketing messages to people who are not aware that they are being marketed to.
Companies, government agencies, and other organizations that buy goods and services are a part of the consumer market.
Many consumers tend to believe that “you are what you buy,” so they make or avoid choices that support their desired self-images.
Aspirational reference groups are those to which consumers actually belong, such as families, networks of friends, clubs, and work groups.
Question 8. 8. (TCO 4) The process of examining an organization’s current marketing situation, assessing opportunities and setting objectives, and then developing a marketing strategy to reach those objectives is called _____. (Points : 5)
stealth marketing
strategic marketing planning
marketing research
social commerce
marketing concept
Question 9. 9. (TCO 4) Creating new goods and services for a firm’s current markets is called _____. (Points : 5)
market penetration
product development
market development
diversification
pure play
Question 10. 10. (TCO 4) Wholesalers differ from retailers in that wholesalers _____. (Points : 5)
sell products to organizational customers
are marketing intermediaries
primarily sell products to consumers for personal use
cannot sell products to consumers for personal use
create place utility and time utility
Question 11. 11. (TCO 4) AMS Technologies, a computer hardware reseller, purchases computer components from leading manufacturers and builds fully operational personal computer systems customized for specific consumer requirements, such as nonlinear video editing capabilities. The firm sells its products to various companies and educational institutions. AMS Technologies belongs to which of the following class of intermediaries? (Points : 5)
Retail outlet
Drop shippers
Manufacturers’ representatives
System integrators
Specialty stores
Question 12. 12. (TCO 4) Producers rely on a class of intermediaries called value-added resellers (VARs) to assist with which of the following functions? (Points : 5)
Transport the goods from the producer to the retail outlets
Assist with advertising, in-store displays, and other promotional efforts
Provide market information
Divide bulk quantities into smaller packages
Complete or customize solutions for customers
Question 13. 13. (TCO 4) The government agency that has the authority to impose penalties against advertisers who violate federal standards for truthful advertising is the _____. (Points : 5)
Federal Communications Commission
Consumer Product Safety Commission
Federal Trade Commission
Federal Advertising Administration
Federal Regulatory Commission
Question 14. 14. (TCO 4) In _____, behaviorally targeted ads follow users even as they move on to other websites. (Points : 5)
attack ads
advocacy advertising
cooperative advertising
remarketing
search engine marketing
Question 15. 15. (TCO 4) A television commercial promoting a new range of naturally flavored ice cream, manufactured by Ice Fountain, an ice cream and candy manufacturing firm, is an example of which of the following elements in the communication mix? (Points : 5)
Institutional advertising
Sales promotion
Social media
Product advertising
Personal selling
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