BUSN ch 11 Exam Questions and Answers Fully Solved Latest Update 2025-2026
marketing - Answersa group of activities designed to expedite transactions by creating, distributing,
pricing, and promoting goods, services, and ideas.
-marketing activities create value
Marketing focuses on the many activities - Answersplanning, pricing, promoting, and distributing
products—that foster exchanges.
At the heart of all business is the exchange - Answersthe act of giving up one thing (money, credit, labor,
goods) in return for something else (goods, services, or ideas). Businesses exchange their goods,
services, or ideas for money or credit supplied by customers in a voluntary exchange relationship
The Exchange Process - Answersbuyers and sellers must be able to communicate about the "something
of value" available to each. Exchange does not necessarily take place just because buyers and sellers
have something of value to exchange. Each participant must be willing to give up his or her respective
"something of value" to receive the "something" held by the other.
Specify the functions of marketing. - Answersbuying, selling, transporting, storing, grading, financing,
marketing research, and risk taking.
Buying - AnswersEveryone who shops for products (consumers, stores, businesses, governments)
decides whether and what to buy. A marketer must understand buyers' needs and desires to determine
what products to make available.
Selling. - AnswersThe exchange process is expedited through selling. Marketers usually view selling as a
persuasive activity that is accomplished through promotion (advertising, personal selling, sales
promotion, publicity, and packaging).
Transporting - AnswersTransporting is the process of moving products from the seller to the buyer.
Marketers focus on transportation costs and services.
Storing. - AnswersLike transporting, storing is part of the physical distribution of products and includes
warehousing goods. Warehouses hold some products for lengthy periods in order to create time utility.
Time utility has to do with being able to satisfy demand in a timely manner. This especially pertains to a
seasonal good such as orange juice. Fresh oranges are only available for a few months annually, but
consumers demand juice throughout the entire year. Sellers must arrange for cold storage of orange
juice concentrate so that they can maintain a steady supply all of the time.
Grading. - AnswersGrading refers to standardizing products by dividing them into subgroups and
displaying and labeling them so that consumers clearly understand their nature and quality. Many
products, such as meat, steel, and fruit, are graded according to a set of standards that often are
established by the state or federal government.
, Financing - AnswersFor many products, especially large items such as automobiles, refrigerators, and
new homes, the marketer arranges credit to expedite the purchase.
Marketing Research. - AnswersThrough research, marketers ascertain the need for new goods and
services. By gathering information regularly, marketers can detect new trends and changes in consumer
tastes.
Risk Taking. - AnswersRisk is the chance of loss associated with marketing decisions. Developing a new
product creates a chance of loss if consumers do not like it enough to buy it. Spending money to hire a
sales force or to conduct marketing research also involves risk. The implication of risk is that most
marketing decisions result in either success or failure.
Value - Answersa customer's subjective assessment of benefits relative to costs in determining the
worth of a product.
(customer value = customer benefits − customer costs).
costumber benefits - AnswersCustomer benefits include anything a buyer receives in an exchange. ex.
hotel
Customer costs - Answersinclude anything a buyer must give up to obtain the benefits the product
provides. The most obvious cost is the monetary price of the product, but nonmonetary costs can be
equally important in a customer's determination of value. Two nonmonetary costs are the time and
effort customers expend to find and purchase desired products and also risk is a nonmonetary.
marketing concept - Answersthe idea that an organization should try to satisfy customers' needs
through coordinated activities that also allow it to achieve its own goals. According to the marketing
concept, a business must find out what consumers desire and then develop the good, service, or idea
that fulfills their needs or wants.
The Production Orientation. - AnswersDuring the second half of the 19th century, the Industrial
Revolution was well under way in the United States. New technologies, such as electricity, railroads,
internal combustion engines, and mass-production techniques, made it possible to manufacture goods
with ever increasing efficiency. Together with new management ideas and ways of using labor, products
poured into the marketplace, where demand for manufactured goods was strong.
The Sales Orientation. - AnswersBy the early part of the 20th century, supply caught up with and then
exceeded demand, and businesspeople began to realize they would have to "sell" products to buyers.
During the first half of the 20th century, businesspeople viewed sales as the primary means of increasing
profits in what has become known as a sales orientation. Those who adopted the sales orientation
perspective believed the most important marketing activities were personal selling and advertising.
Today, some people still inaccurately equate marketing with a sales orientation.
The Market Orientation. - AnswersBy the 1950s, some businesspeople began to recognize that even
efficient production and extensive promotion did not guarantee sales.
marketing - Answersa group of activities designed to expedite transactions by creating, distributing,
pricing, and promoting goods, services, and ideas.
-marketing activities create value
Marketing focuses on the many activities - Answersplanning, pricing, promoting, and distributing
products—that foster exchanges.
At the heart of all business is the exchange - Answersthe act of giving up one thing (money, credit, labor,
goods) in return for something else (goods, services, or ideas). Businesses exchange their goods,
services, or ideas for money or credit supplied by customers in a voluntary exchange relationship
The Exchange Process - Answersbuyers and sellers must be able to communicate about the "something
of value" available to each. Exchange does not necessarily take place just because buyers and sellers
have something of value to exchange. Each participant must be willing to give up his or her respective
"something of value" to receive the "something" held by the other.
Specify the functions of marketing. - Answersbuying, selling, transporting, storing, grading, financing,
marketing research, and risk taking.
Buying - AnswersEveryone who shops for products (consumers, stores, businesses, governments)
decides whether and what to buy. A marketer must understand buyers' needs and desires to determine
what products to make available.
Selling. - AnswersThe exchange process is expedited through selling. Marketers usually view selling as a
persuasive activity that is accomplished through promotion (advertising, personal selling, sales
promotion, publicity, and packaging).
Transporting - AnswersTransporting is the process of moving products from the seller to the buyer.
Marketers focus on transportation costs and services.
Storing. - AnswersLike transporting, storing is part of the physical distribution of products and includes
warehousing goods. Warehouses hold some products for lengthy periods in order to create time utility.
Time utility has to do with being able to satisfy demand in a timely manner. This especially pertains to a
seasonal good such as orange juice. Fresh oranges are only available for a few months annually, but
consumers demand juice throughout the entire year. Sellers must arrange for cold storage of orange
juice concentrate so that they can maintain a steady supply all of the time.
Grading. - AnswersGrading refers to standardizing products by dividing them into subgroups and
displaying and labeling them so that consumers clearly understand their nature and quality. Many
products, such as meat, steel, and fruit, are graded according to a set of standards that often are
established by the state or federal government.
, Financing - AnswersFor many products, especially large items such as automobiles, refrigerators, and
new homes, the marketer arranges credit to expedite the purchase.
Marketing Research. - AnswersThrough research, marketers ascertain the need for new goods and
services. By gathering information regularly, marketers can detect new trends and changes in consumer
tastes.
Risk Taking. - AnswersRisk is the chance of loss associated with marketing decisions. Developing a new
product creates a chance of loss if consumers do not like it enough to buy it. Spending money to hire a
sales force or to conduct marketing research also involves risk. The implication of risk is that most
marketing decisions result in either success or failure.
Value - Answersa customer's subjective assessment of benefits relative to costs in determining the
worth of a product.
(customer value = customer benefits − customer costs).
costumber benefits - AnswersCustomer benefits include anything a buyer receives in an exchange. ex.
hotel
Customer costs - Answersinclude anything a buyer must give up to obtain the benefits the product
provides. The most obvious cost is the monetary price of the product, but nonmonetary costs can be
equally important in a customer's determination of value. Two nonmonetary costs are the time and
effort customers expend to find and purchase desired products and also risk is a nonmonetary.
marketing concept - Answersthe idea that an organization should try to satisfy customers' needs
through coordinated activities that also allow it to achieve its own goals. According to the marketing
concept, a business must find out what consumers desire and then develop the good, service, or idea
that fulfills their needs or wants.
The Production Orientation. - AnswersDuring the second half of the 19th century, the Industrial
Revolution was well under way in the United States. New technologies, such as electricity, railroads,
internal combustion engines, and mass-production techniques, made it possible to manufacture goods
with ever increasing efficiency. Together with new management ideas and ways of using labor, products
poured into the marketplace, where demand for manufactured goods was strong.
The Sales Orientation. - AnswersBy the early part of the 20th century, supply caught up with and then
exceeded demand, and businesspeople began to realize they would have to "sell" products to buyers.
During the first half of the 20th century, businesspeople viewed sales as the primary means of increasing
profits in what has become known as a sales orientation. Those who adopted the sales orientation
perspective believed the most important marketing activities were personal selling and advertising.
Today, some people still inaccurately equate marketing with a sales orientation.
The Market Orientation. - AnswersBy the 1950s, some businesspeople began to recognize that even
efficient production and extensive promotion did not guarantee sales.
