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markets efficiency and the public interest MCQs

Practise focused markets efficiency and the public interest questions with marked answers for exam preparation and subject revision.

markets efficiency and the public interest Mcqs
1. An example of public good is ?
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A. a beautifully landscaped lawn.

B. a book

C. a public utility.

D. preservation of wetlands
2. In terms of execution style a family seated at the dinner table enjoying the advertised product would be an example of which of the following types of advertising ?
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A. Lifestyle

B. Mood or imagery

C. Slice of life

D. Personality symbol

3. One common misuse of marketing research findings in contemporary business is the tendency for marketing research tp ?
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A. become a vehicle for pitching the sponsors products

B. become a means of unfair competition

C. become a means for raising prices

D. become a vehicle for pitching the sponsors products

4. Externalities are a problem only if ?
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A. the externalities are negative

B. decision makers do not take them into account

C. all firms are perfectly competitive

D. all firms are monopolistic

5. ______ includes practices such as overstating the products features or performance luring the customer to the store for a bargain that is out of stock, or running rigged contests ?
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A. Deceptive cost structure

B. Deceptive packaging

C. Deceptive promotion

D. Deceptive pricing

6. The American Marketing Association suggests a list of code of ethics All of the following are ethics suggested in the area of distribution EXCEPT ?
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A. not manipulating the availability of a product for purpose of explotation

B. not using coercion in the marketing channel

C. not exerting undue influence over the resellers choice to handle a product

D. using gray marketers whenever possible to save the consumer money
7. If Mark Mars pays Hershey Foods Corporation for the right to use their name on his line of T-shirts then Mr. Mars is using which type of branding ?
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A. Manufacturers brand

B. Licensed brands

C. Co-brand

D. Private brand

8. When Coca-Cota and Nestle formed joint venture to market a ready to drink coffee and tea worldwide the type of marketing system that was formed would best be described as being a(n)?
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A. horizontal marketing system

B. diversified marketing system

C. vertical marketing system

D. parallel marketing system

9. ___________ is a strategy of using a successful brand name to launch a new of modified product in a new category ?
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A. Line extension

B. Duobranding

C. Multibranding

D. Brand extension
10. ________ consists of dividing a market into distinct groups of buyers on the basis of needs, characteristics or behavior who might require separate products or marketing mixes?
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A. Market positioning

B. Product differentiation

C. Market targeting

D. Market segmentation
11. Pricing to cover variable costs and some fixed costs as in the case of some automobile distributorships that sell below total costs is typical of which of the following pricing objectives ?
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A. product quality leadership

B. Survival

C. current profit maximization

D. Market share leadership

12. In evaluating messages for advertising telling how the product is better than the competing brands aims at making the ad ?
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A. distinctive

B. remembered

C. meaningful

D. believable

13. The conclusion that free, unregulated markets will produce an efficient outcome breaks down if ?
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A. firms are not price takers in the output market

B. all of the above

C. households do not have perfect information

D. firms are not price takers in input markets

14. The type of sales presentation approach that requires good listening and problem-solving skills is the ?
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A. canned approach

B. critical-thinking approach

C. need-satisfaction approach

D. formula appraoch

15. _______ is the general term for a buying and selling process that is supported by electronic means?
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A. Web commerce

B. Computer commerce

C. Internet commerce

D. Electronic commerce
16. The statement everything affects everything else reflects the principle behind ?
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A. general equilibrium analysis

B. efficiency analysis

C. equity analysis

D. partial equilibrium analysis

17. Regulations that arise to ensure that firms take responsibility for the social costs of their products or production processes stem from which reason for government legislation of business ?
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A. To protect the interests of society

B. To protect companies form each other

C. To protect consumers from unfair business practices

D. To protect businesses from unfair consumer demands

18. If a large number of individuals are affected by an external benefit, private bargaining will not work because of ?
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A. the Coase theorem

B. the fallacy of composition

C. the free-rider problem

D. non-rivalry

19. The type of salesforce structure in which the sales force sells along product lines is called a ?
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A. retail salesforce

B. customer salesforce

C. territorial salesforce

D. product salesforce
20. A three day cooling off period in which buyers can cancel a contract after re-thinking it is to protect the consumer from ?
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A. detail selling

B. high pressure telling

C. hard core selling

D. creative selling

21. A person will continue to pursue an activity up to the point where ?
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A. marginal benefit equals marginal private cost

B. Marginal benefit equals marginal damage cost

C. marginal social cost equals marginal external cost

D. marginal benefits equals marginal social cost

22. If one persons enjoyment of the benefits of a good does not interfere with anothers consumption of it, the good is said to be ?
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A. non-excludable

B. non-rival in consumption

C. limitless in utility

D. congestible in consumption

23. That the company that overlooks new and better ways to do things will eventually lose customers to another company that has found a better way to serving customer needs is a major tenet of ?
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A. innovative marketing

B. consumer oriented marketing

C. value marketing

D. sense -f mission marketing

24. ________ is the practice of adopting policies and developing strategies that both sustain the environment and produce profits for the company ?
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A. Consumerism

B. Consumer accountability

C. Environmentalism

D. Environmental sustainability
25. Sellers that handle their own exports are engaged in ?
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A. indirect exporting

B. contract manufacturing

C. direct exporting

D. licensing

26. Conflicts between different levels of the same channel of distribution are referred to as ?
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A. vertical conflicts

B. horizontal conflicts

C. parallel conflicts

D. layer-based conflicts

27. _______ is quoted as saying that everyone lives by selling something?
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A. Robert Louis Stevenson

B. Bill Gates

C. Arthur Miller

D. Henry Ford

28. _______ factors are the most popular bases for segmenting customer groups?
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A. Geographic

B. Behavioral

C. Psychographic

D. Demographic
29. If your company were to make light bulbs to be used in photocopiers you would most likely be selling to a _________ market?
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A. service

B. reseller

C. government

D. business
30. A(n) _____ is a retail store that carries a narrow product line with a deep assortment within that line ?
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A. specialty store

B. convenience store

C. shopping goods store

D. department store

31. If a firm were to bid to do a turnkey operation where they would choose a building site designing a cement factory to build the plant hire construction crews assemble materials and equipment to run the new factory and turn over the finished factory ready to operate to the owners the firm would be using which of the following ?
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A. Core Process products selling

B. Design Products selling

C. Systems selling

D. Reciprocal spelling

32. Today advertising captures about ________ percent of total promotion spending?
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A. 23

B. 33

C. 29

D. 15

33. 3M runs a Pollution a Prevention Pays program that has led to a substantial reduction in pollution and costs this would be an example of responding and costs. This would be an example of responding to which of the following ?
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A. Governmental regulation

B. Naders raiders

C. The green movement

D. International competition

34. Even through buying roles in the family change constantly the _________ has traditionally been the main purchasing agent for the family?
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A. husband

B. grandparent

C. teenage children

D. wife
35. All of the following considered to be drawbacks of local marketing EXCEPT ?
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A. it can create logistical problems when the company tries to meet varied requirements

B. it can drive up manufacturing and marketing costs by reducing economies of scale

C. it can attract unwanted competition

D. it can dilute the brands overall image

36. ________ is the process of evaluating each market segments attractiveness and selecting one or more segments to enter?
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A. Market targeting

B. Market segmentation

C. Mass marketing

D. Market positioning

37. A price reduction to buyers who buy in large volumes is called a(n) ?
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A. trade discount

B. seasonal discount

C. cash discount

D. quantity discount
38. More and more salespeople are being evaluated and compensated based on different measures than in the past. All of the following are illustrations of those measures EXCEPT ?
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A. competitive predatory pricing performance

B. long term customer sanctification

C. full customer service

D. retention rates

39. If Honda uses its company name to cover such different products as its automobiles lawn mowers and motorcycles, it is practicing which of the following strategies ?
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A. new brand strategy

B. line extension strategy

C. brand extension strategy

D. multiband strategy

40. One of the most common problems with using internal database information is that ?
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A. it is usually expensive to retrieve

B. top executives are usually unwilling to relinquish data therefore the data has limits

C. since it was probably collected for some other purpose it may be incomplete or wrong

D. the data is almost always unsecured and therefore, suspect as to reliability

41. If some gain and some lose as the result of a proposed change and it can be demonstrated that the value of the gains would exceed the value of the losses then the change is said to be ?
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A. unequivocally Pareto optimal

B. inefficient.

C. technically efficient.

D. potentially efficient
42. Each salesperson is assigned to an exclusive area in which to sell the companys full line of products or services in which type of salesforce structure ?
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A. Product sales force

B. Hybrid sales force

C. Territorial sales force

D. Customer sales force

43. A _______ is a promotion strategy that calls for using the sales force and trade promotion to move the produce through channels ?
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A. pull strategy

B. blocking strategy

C. push strategy

D. integrated strategy

44. Costs that do not vary with production or sales levels are called ?
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A. variable costs

B. independent costs

C. fixed costs

D. standard costs

45. The biggest of greatest amount of involvement in a foreign market comes through which of the following ?
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A. Direct investment

B. Licensing

C. Joint venturing

D. Exporting

46. _________ is a principle of enlightened marketing that requires that a company seek real product and marketing improvements ?
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A. Sense of mission marketing

B. Innovative marketing

C. Consumer oriented marketing

D. value marketing

47. A company is in the ________ stage of the new product development process when the company develops the product concept into a physical product in order to assure that the product idea can be turned into a workable product ?
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A. marketing strategy

B. product development

C. commercialization

D. business analysis

48. Using a successful brand name to introduce additional items in a given product category under the same brand same (such as new flavors, forms, colors, added ingredients or package seizes) is called a(n)?
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A. multibranding

B. brand extension

C. new brands

D. line extension
49. When a company reviews sales costs and profit projections for a new product to find out whether these factors satisfy the companys objectives they are in which of the following new process development stages ?
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A. Marketing strategy development

B. Business analysis

C. Commercialization

D. Concept development and testing

50. The use of price points for reference to different levels of quality for a companys related products is typical of which product mix pricing strategy ?
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A. Optional-product pricing

B. Captive-product pricing

C. Product line pricing

D. By-product pricing