BUS 100: Introduction to Business – Exam 2 Review Questions – 2026 – Study
and Practice Guide
What are the 4 types of utility? - correct answer ✔✔ form utility: satisfies wants by converting
inputs into a finished form
time utility: satisfies wants by providing goods and services at a convenient time for customers
place utility: satisfies wants by providing goods and services at a convenient place for customers
ownership utility: satisfies wants by smoothly transferring ownership of goods and services from
seller to buyer
How has the concept of marketing changed through the 4 eras of business history? - correct
answer ✔✔ production era: produce large quantities of goods as efficiently as possible
selling era: emergence of the hard sell, selling focused gained momentum
marketing era: attempted to provide goods and services that met customer needs better than
anything on the market
relationship era: long-term customer relationships
What are the 2 common traps in customer satisfaction? - correct answer ✔✔ overpromising
underpromising
What are the characteristics of a well-chosen target market? - correct answer ✔✔ size: there
must be enough people in your target group to support a business
profitability: people must be willing & able to spend more than the cost of producing &
marketing your product
accessibility: your target must be reachable through channels that your business can afford
limited competition: look for markets w/ limited competition; a crowded market is much
tougher to crack
, What are the 4 general ways that Consumer Markets are segmented? - correct answer ✔✔
demographic segmentation: age, income, ethnicity, gender
geographic segmentation: countries, cities, population density
psychographic segmentation: attitudes, interests, values, lifestyles
behavioral segmentation: benefits that consumers seek from products & how consumers use
the products
What are the 4 strategies of the marketing mix? - correct answer ✔✔ product strategy
pricing strategy
distribution strategy
promotion strategy
Why is environmental scanning important? - correct answer ✔✔ marketers use it to identify and
respond to changes in competition, economy, society/culture, technology, and political/legal
What are the elements that influence the consumer decision-making process? - correct answer
✔✔ cultural
social
personal
psychological
What are the 2 types of marketing research data? How are they different? How are they used? -
correct answer ✔✔ secondary data: existing data that marketers gather or purchase, tends to
be lower cost, may not meet your specific needs, frequently outdated, available to your
competitors
primary data: new data that marketers compile for the first time, tends to be more expensive,
customized to meet your needs, fresh/new data, proprietary (no one else has it)
and Practice Guide
What are the 4 types of utility? - correct answer ✔✔ form utility: satisfies wants by converting
inputs into a finished form
time utility: satisfies wants by providing goods and services at a convenient time for customers
place utility: satisfies wants by providing goods and services at a convenient place for customers
ownership utility: satisfies wants by smoothly transferring ownership of goods and services from
seller to buyer
How has the concept of marketing changed through the 4 eras of business history? - correct
answer ✔✔ production era: produce large quantities of goods as efficiently as possible
selling era: emergence of the hard sell, selling focused gained momentum
marketing era: attempted to provide goods and services that met customer needs better than
anything on the market
relationship era: long-term customer relationships
What are the 2 common traps in customer satisfaction? - correct answer ✔✔ overpromising
underpromising
What are the characteristics of a well-chosen target market? - correct answer ✔✔ size: there
must be enough people in your target group to support a business
profitability: people must be willing & able to spend more than the cost of producing &
marketing your product
accessibility: your target must be reachable through channels that your business can afford
limited competition: look for markets w/ limited competition; a crowded market is much
tougher to crack
, What are the 4 general ways that Consumer Markets are segmented? - correct answer ✔✔
demographic segmentation: age, income, ethnicity, gender
geographic segmentation: countries, cities, population density
psychographic segmentation: attitudes, interests, values, lifestyles
behavioral segmentation: benefits that consumers seek from products & how consumers use
the products
What are the 4 strategies of the marketing mix? - correct answer ✔✔ product strategy
pricing strategy
distribution strategy
promotion strategy
Why is environmental scanning important? - correct answer ✔✔ marketers use it to identify and
respond to changes in competition, economy, society/culture, technology, and political/legal
What are the elements that influence the consumer decision-making process? - correct answer
✔✔ cultural
social
personal
psychological
What are the 2 types of marketing research data? How are they different? How are they used? -
correct answer ✔✔ secondary data: existing data that marketers gather or purchase, tends to
be lower cost, may not meet your specific needs, frequently outdated, available to your
competitors
primary data: new data that marketers compile for the first time, tends to be more expensive,
customized to meet your needs, fresh/new data, proprietary (no one else has it)
