The marketing concept is bestdefined as:
a. a customer’s subjective assessment of benefits relative to costs in determining the
worth of a product.
b. a philosophy stating that an organization should try to satisfy customers’ needs
through a coordinated set of activities that allows the organization to achieve its goals.
c. the performance of business activities that direct the flow of goods and services from
producer to customer or user.
d. a philosophy stating that an organization should attempt to accomplish its goals with
no regard for the needs of customers.
e. the inclusion of marketing activities in the activities of an organization.
Wonder Inc. introduced a new bread made with light whole wheat and packaged in
smaller loaves as a response to the number of health-conscious customers who live
alone. In this case, Wonder Inc. was most likely following the_____.
a. selling concept
b. production concept
c. marketing concept
d. customer concept
e. retailing concept
Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coca-Cola, to
name a few. These are examples of:
a. product modification.
b. brand extension.
c. product bundling.
d. line extension.
e. brand equity.
Jose went skiing one weekend with several of his friends. While at the slope, Jose
injured his leg and needed to see a doctor. Jose is likely going to view the solutions to
his problem as .
a. specialty products
b. installations
c. unsought products
d. shopping products
e. convenience products
Observation may be used in combination with interviewing.
a. True
b. False
Calhoun Produce, a____________, takes possession of truckloads of tomatoes, arranges
for storage, and transports them to auctions to be sold.
a. manufacturer’s agent
b. selling agent
c. commission broker
d. commission merchant
e. selling broker
The Palasi Candy Company is a small business located in the United States. The owner
of Palasi Candy is calculating the projected costs for the coming year. There is rent for
the building, salaries for the retail employees, raw materials of sugar, chocolate, and
other ingredients, wrappers for packaging of individual pieces of candy,
boxes, and radio advertising. Palasi’s___________are most likely to be the raw
materials of sugar, chocolate, and other ingredients, as well as the wrappers.
a. sunk costs.
b. variable costs.
c. direct costs.
d. fixed costs.
e. marginal costs.
If demand is elastic, a change in price causes a parallel change in total revenue.
a. True
b. False
In marketing research, a sample is best described as .
a. a small group that is a part of a larger group
b. all the elements, units, or individuals of interest to researchers for a specific study
c. a limited number of units chosen to represent the characteristics of a total population
d. a group that shares a common attribute within a population
e. a small portion of a product offered to customers to try a new product
Layaway plans and customer trainings are examples of product support services.
a. True
b. False
Avio Gliding Air Academy is developing its marketing mix for the coming year. Its
managers know that they must first select which may be the most important decision
they make in the planning process.
a. the promotional strategy
b. a distribution method
c. the pricing strategy
d. a target market
e. the desired profit margin
Kevin is talking with Peter about purchasing a Wendy’s franchise. Peter tells Kevin that
one of the major advantages of franchising for him to consider is the:
a. higher start-up costs.
b. greater freedom it provides.
c. individuality it offers.
d. higher success rate for franchises.
e. gross margin it provides.
Channel capacity is determined by the most efficient component of the communication
process.
a. True
b. False
Labels facilitate product identification.
a. True
b. False