MARKETING MANAGEMENT
PLAN TEST BANK
1. Which of the following federal agencies regulates telemarketing?
A) Federal Trade Commission
B) Food and Drug Administration
C) ✅ Federal Communications Commission
D) Securities and Exchange Commission
2. The term 8/10, net 30 on an invoice means that a business can take a(n):
A) 10% discount for payment within 30 days
B) Full payment due in 10 days
C) ✅ 8% discount for payment within 10 days; full payment due in 30 days
D) Full payment due in 8 days
3. In what stage of a product's life cycle might a business price goods very low to
eliminate excess inventory?
A) Introduction
B) Growth
C) Maturity
D) ✅ Obsolescence
4. Many businesses are using the technology developed by the space program to
create:
A) Cheaper raw materials
B) ✅ Advanced new products
C) New marketing campaigns
D) More store locations
5. Many businesses use database software programs to computerize their customer
mailing lists in order to instantly:
A) Track sales
B) Manage inventory
C) ✅ Sort by zip code
D) Create advertisements
6. The primary goal of a good orientation program for employees is to build a
successful _______ relationship.
A) Customer
B) ✅ Employer-employee
C) Supplier
D) Team
7. What do individuals often obtain as a result of using networking techniques?
A) Business loans
B) ✅ Job leads
1
, C) Marketing tips
D) New skills
8. Selling goods and services to consumers through the use of middlemen is known as
________ selling.
A) Direct
B) Retail
C) ✅ Indirect
D) Wholesale
9. Which of the following is true based on Maslow's theory of need satisfaction?
A) Higher needs must be satisfied before lower needs
B) ✅ Lower level needs must be satisfied before higher level needs can become
important
C) All needs are equally important at the same time
D) Only physical needs matter
10. A chain of hotels located in a resort area that rents its rooms at extremely low rates
in an effort to eliminate the competition is involved in:
A) Penetration pricing
B) Premium pricing
C) ✅ Predatory pricing
D) Skimming
11. Which of the following questions should be asked by a firm trying to decide whether
to brand its products?
A) How much will it cost?
B) Will customers remember it?
C) ✅ Can the product be easily identified by a brand?
D) Is it legal?
12. Employees are more likely to correctly follow directions if those directions are
explained in:
A) Reverse order
B) ✅ Chronological order
C) Random order
D) Bullet points
13. If a producer priced its products much lower than those offered by competitors, is it
possible that the producer would lose customers?
A) No, lower prices always attract more customers
B) ✅ Yes, the price may be so low that the producer is unable to perform certain duties
C) Only in luxury markets
D) Only if competitors also lower prices
14. What might a business lose if an advertisement attracted new customers but they
were greeted by a discourteous employee?
A) Revenue
B) Inventory
C) ✅ Repeat business
D) Brand recognition
2
, 15. Which of the following is an industrial good?
A) Toothpaste
B) Desk chair
C) ✅ Tires for a Sears truck
D) Candy
16. The United States purchases computer chips from Japan. This is an example of a
U.S.:
A) Export
B) ✅ Import
C) Domestic trade
D) International investment
17. When making decisions, people have little control over _________ factors.
A) Personal
B) ✅ Reality
C) Budget
D) Skills
18. A business might use an advertising database to:
A) Print coupons
B) ✅ Create interactive online services and promotions
C) Hire employees
D) Manage inventory
19. The use of computer technology can help salespeople to better serve their customers
by quickly:
A) ✅ Processing orders
B) Making coffee
C) Tracking weather
D) Filing taxes
20. Your ability to adjust to change can affect your success on the job because
employees with this skill are more likely to be:
A) ✅ Given new responsibilities
B) Laid off
C) Overworked
D) Ignored
21. Five years after a new product has been introduced, sales begin to level off because
customers are purchasing the competitor’s brand. What strategy would be most
appropriate?
A) Reduce price
B) Increase advertising
C) ✅ Modify the product to renew customer interest
D) Withdraw product
22. Which of the following best defines the term economic services?
A) Goods that are free
B) ✅ Productive acts that satisfy economic wants
C) Services provided by government
D) Labor only
3
PLAN TEST BANK
1. Which of the following federal agencies regulates telemarketing?
A) Federal Trade Commission
B) Food and Drug Administration
C) ✅ Federal Communications Commission
D) Securities and Exchange Commission
2. The term 8/10, net 30 on an invoice means that a business can take a(n):
A) 10% discount for payment within 30 days
B) Full payment due in 10 days
C) ✅ 8% discount for payment within 10 days; full payment due in 30 days
D) Full payment due in 8 days
3. In what stage of a product's life cycle might a business price goods very low to
eliminate excess inventory?
A) Introduction
B) Growth
C) Maturity
D) ✅ Obsolescence
4. Many businesses are using the technology developed by the space program to
create:
A) Cheaper raw materials
B) ✅ Advanced new products
C) New marketing campaigns
D) More store locations
5. Many businesses use database software programs to computerize their customer
mailing lists in order to instantly:
A) Track sales
B) Manage inventory
C) ✅ Sort by zip code
D) Create advertisements
6. The primary goal of a good orientation program for employees is to build a
successful _______ relationship.
A) Customer
B) ✅ Employer-employee
C) Supplier
D) Team
7. What do individuals often obtain as a result of using networking techniques?
A) Business loans
B) ✅ Job leads
1
, C) Marketing tips
D) New skills
8. Selling goods and services to consumers through the use of middlemen is known as
________ selling.
A) Direct
B) Retail
C) ✅ Indirect
D) Wholesale
9. Which of the following is true based on Maslow's theory of need satisfaction?
A) Higher needs must be satisfied before lower needs
B) ✅ Lower level needs must be satisfied before higher level needs can become
important
C) All needs are equally important at the same time
D) Only physical needs matter
10. A chain of hotels located in a resort area that rents its rooms at extremely low rates
in an effort to eliminate the competition is involved in:
A) Penetration pricing
B) Premium pricing
C) ✅ Predatory pricing
D) Skimming
11. Which of the following questions should be asked by a firm trying to decide whether
to brand its products?
A) How much will it cost?
B) Will customers remember it?
C) ✅ Can the product be easily identified by a brand?
D) Is it legal?
12. Employees are more likely to correctly follow directions if those directions are
explained in:
A) Reverse order
B) ✅ Chronological order
C) Random order
D) Bullet points
13. If a producer priced its products much lower than those offered by competitors, is it
possible that the producer would lose customers?
A) No, lower prices always attract more customers
B) ✅ Yes, the price may be so low that the producer is unable to perform certain duties
C) Only in luxury markets
D) Only if competitors also lower prices
14. What might a business lose if an advertisement attracted new customers but they
were greeted by a discourteous employee?
A) Revenue
B) Inventory
C) ✅ Repeat business
D) Brand recognition
2
, 15. Which of the following is an industrial good?
A) Toothpaste
B) Desk chair
C) ✅ Tires for a Sears truck
D) Candy
16. The United States purchases computer chips from Japan. This is an example of a
U.S.:
A) Export
B) ✅ Import
C) Domestic trade
D) International investment
17. When making decisions, people have little control over _________ factors.
A) Personal
B) ✅ Reality
C) Budget
D) Skills
18. A business might use an advertising database to:
A) Print coupons
B) ✅ Create interactive online services and promotions
C) Hire employees
D) Manage inventory
19. The use of computer technology can help salespeople to better serve their customers
by quickly:
A) ✅ Processing orders
B) Making coffee
C) Tracking weather
D) Filing taxes
20. Your ability to adjust to change can affect your success on the job because
employees with this skill are more likely to be:
A) ✅ Given new responsibilities
B) Laid off
C) Overworked
D) Ignored
21. Five years after a new product has been introduced, sales begin to level off because
customers are purchasing the competitor’s brand. What strategy would be most
appropriate?
A) Reduce price
B) Increase advertising
C) ✅ Modify the product to renew customer interest
D) Withdraw product
22. Which of the following best defines the term economic services?
A) Goods that are free
B) ✅ Productive acts that satisfy economic wants
C) Services provided by government
D) Labor only
3
