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eco ch 11

True/False
Indicate whether the sentence or statement is true or false.
 

1. 

Companies often sell similar products at similar prices.
 

2. 

Product identification is meant to help consumers remember a particular product.
 

3. 

Marketing programs remain the same at each stage of a product's life cycle.
 

4. 

A larger quantity of products will be demanded at lower prices than at higher prices.
 

5. 

Promotion depends partly on the type of consumer a company wants to attract.
 

Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
 

6. 

The purpose of marketing is to convince consumers that a certain product or service will add to their
a.
savings.
c.
cost.
b.
investment.
d.
utility.
 

7. 

What type of utility is involved in refining crude oil into gasoline?
a.
time utility
c.
ownership utility
b.
place utility
d.
form utility
 

8. 

Having food goods available at a convenience store that is open late at night is an example of
a.
time utility.
c.
ownership utility.
b.
place utility.
d.
form utility.
 

9. 

Which of the following is an example of ownership utility?
a.
catalog selling
b.
transforming cotton into tee shirts
c.
luxury car
d.
fast-food store located in a shopping mall
 

10. 

Which of the following describes a reason for market research?
a.
decide whether to sell stock in a corporation
b.
find the best financing plan
c.
determine consumer response to a product
d.
find out how to make new products
 

11. 

Which aspect of a marketing strategy is involved in offering an extended warranty on a product?
a.
price
c.
promotion
b.
product
d.
place
 

12. 

The use of a slogan, a jingle, or a celebrity endorsement are examples of
a.
product pricing.
c.
price leadership.
b.
direct-mail advertising.
d.
product identification.
 

13. 

Which of the following industries often use direct-mail advertising?
a.
grocery stores
c.
credit card companies
b.
car dealers
d.
gas stations
 

14. 

At the introductory stage of a product life cycle, marketers would
a.
use penetration pricing.
c.
raise the price of the product.
b.
find new uses for the product.
d.
redesign the packaging.
 

15. 

One way to extend the life of a product is to
a.
raise the price.
c.
produce more of it.
b.
replace it with a similar product.
d.
find new uses for it.
 

16. 

Which of the following is an example of goods going directly from producer to consumer?
a.
clothing sold at a department store
b.
farm products sold at a grocery store
c.
automobiles sold at a dealership
d.
vegetables sold at a roadside stand
 

17. 

Which of the following transportation methods would be the most practical for shipping large auto parts to an assembly plant?
a.
airfreighting
c.
overnight express
b.
train and truck
d.
pipeline
 

18. 

Department stores, discount stores, supermarkets, and other businesses that sell goods directly to the public are
a.
retailers.
c.
consumers.
b.
wholesalers.
d.
producers.
 

19. 

One benefit of shopping at a club warehouse store is the
a.
large selection of models and brands.
c.
membership fee.
b.
low prices.
d.
small inventory.
 

20. 

Consumers can avoid state sales taxes by buying goods
a.
through catalogs from out-of-state companies.
b.
from club warehouse stores.
c.
from wholesalers.
d.
from discount retailers.
 

Completion
Complete each sentence or statement.
 

21. 

Locating a gas station at a busy intersection is an example of ____________________.
 

 

22. 

The satisfaction a person receives from having expensive jewelry is ____________________.
 

 

23. 

The first step in market research is performing a ____________________.
 

 

24. 

Market research is based on the recognition of ____________________.
 

 

25. 

____________________ allows a company to see how well a product sells in a small area before offering it nationally.
 

 

26. 

A ____________________ usually has prices that are lower than those in nearby stores.
 

 

27. 

A ____________________ is a business that sells goods directly to consumers.
 

 

28. 

A ____________________ buys merchandise and resells it to a retailer.
 

 

29. 

Anyone with a credit card and access to the Internet can use ____________________.
 

 

30. 

Consumers who purchase goods through a ____________________ do not have to pay sales tax if the company is located in another state.
 

 

Matching
 
 
Match each item with the correct statement below.
a.
marketing
b.
consumer sovereignty
c.
utility
d.
market research
e.
test marketing
 

31. 

gathering, recording, and analyzing data about the types of goods and services people want
 

32. 

all the activities needed to move goods and services from the producer to the consumer
 

33. 

offering a product for sale in a small area for a limited period of time
 

34. 

role of the consumer as the determiner of the types of goods and services produced
 

35. 

amount of satisfaction one gets from a good or service
 
 
Match each item with the correct statement below.
a.
price leadership
b.
penetration pricing
c.
promotion
d.
direct-mail advertising
e.
product life cycle
 

36. 

selling a new product at a low price to attract customers away from an established product
 

37. 

type of promotion using a mailer that describes the product or service and an order blank
 

38. 

practice of setting prices close to those charged by other companies selling similar products
 

39. 

use of advertising to inform customers of a new product or service and to persuade them to buy it
 

40. 

series of stages a product goes through from introduction to withdrawal from the market
 
 
Match each item with the correct statement below.
a.
channels of distribution
b.
wholesalers
c.
retailers
d.
e-commerce
e.
club warehouse store
 

41. 

businesses that purchase large quantities of goods from producers for resale to other businesses
 

42. 

conducting business transactions over computer networks, particularly the World Wide Web
 

43. 

distribution channel that offers members a limited selection of goods in huge quantities at low prices
 

44. 

routes by which goods are moved from producers to consumers
 

45. 

businesses that sell consumer goods directly to the public
 



 
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