DECA Marketing Cluster Exam District Level Practice Test

The purpose of legal procedure is to ensure that each party receives
A. ongoing advice.
B. consistent treatment.
C. a reasonable verdict.
D. an indictment.
Wal-mart, Chevron Texaco, and Ford Motor Company sell stock in their companies. They are examples
of which of the following types of business ownership:
A. Franchisee
B. Corporation
C. Partnership
D. Sole proprietorship
Channels of distribution benefit businesses by
A. lowering the prices of all industrial goods.
B. getting their products to consumers more efficiently.
C. raising their profits each year.
D. allowing them to avoid all channel tasks.
Which of the following would not be considered an intermediary in a channel of distribution:
A. Agent
B. Retailer
C. Producer
D. Wholesaler
The negative effect of slotting fees is that they often limit a small producer’s ability to
A. introduce new items in the marketplace.
C. use direct-distribution strategies.
B. develop exclusive-dealing policies.
D. identify potential target markets.
What type of channel conflict often occurs between manufacturers and their authorized dealers?
A. Corporate
C. Indirect
B. Horizontal
D. Vertica
When you look for supporting evidence in published materials, you are evaluating the
A. timeliness of the content.
C. margin of error.
B. readability of the text.
D. credibility of the sources.
Listening carefully should enable employees to
A. earn frequent raises.
C. avoid criticism.
B. become good speakers.
D. follow directions.
Sara is a new marketing employee who is learning that the best way to listen to customers is
A. passively.
C. emotionally.
B. actively.
D. distractedly.
When Amber walked by Ryan’s desk, she noticed that Ryan was raking his left hand through his hair,
that his face was red, and that he kept hitting the enter button on keyboard with his right hand, while
frowning at his computer screen. Based on his nonverbal cues, Amber would probably assume that Ryan
A. patient.
C. bored.
B. frustrated.
D. enthusiastic.
Which of the following examples illustrates the use of the cause and effect method of a format for
structuring oral presentations:
A. We will begin by discussing the basic steps used in developing effective time management
techniques, and the first step is to prioritize all of your commitments.
B. The public supports increased spending on national security, and a survey reports that over
seventy percent of the citizens fear future terrorist attacks.
C. Monet and Cezanne were both impressionist artists; however, their painting techniques and use
of color varied greatly.
D. The use of toxic chemicals in the environment can result in the extinction of many species of
Allison is attending a business seminar. Because the seminar presenter is speaking very quickly, Allison
is having a difficult time taking accurate notes. What technique would help Allison take notes quickly?
A. Use abbreviations and symbols
C. Focus on the subtopics
B. Write notes on index cards
D. Ask the speaker to provide handouts
An e-mail message that is sent to a coworker should contain
A. a persuasive argument.
C. essential information.
B. an urgent tone.
D. encouraging news.
Employees often use simple written reports to provide managers with __________ information.
A. extensive
C. in-depth
B. analytical
D. routine
Many businesses try to foster positive customer/client relations by encouraging employees to be
A. talkative.
C. reserved.
B. friendly.
D. authoritative.
A local supermarket’s front-end employees are trained to smile and greet customers as they approach
the cash register and say thank you as customers leave. This approach
A. decreases customer patronage.
C. encourages employee rivalry.
B. builds customer loyalty.
D. decreases employee productivity.
Which of the following is often the best way for a salesperson to handle the slow/methodical type of
difficult customer:
A. Summarize benefits
C. Be brief
B. Ask their advice
D. Let the customer do the talking
Distribution examines how income is divided between
A. consumers and resource owners.
C. consumers and producers.
B. producers and resource owners.
D. producers and economizers.
Consumers buy products to benefit
A. marketers.
C. producers.
B. themselves.
D. retailers.
Which of the following is a disadvantage of the matrix organizational structure:
A. It lacks flexibility.
B. It makes the organization less competitive.
C. It cannot balance conflicting organizational objectives.
D. It violates the unity of command principle.
Kent is going to start his own business. He is concerned that the merchandise he wants to carry will go
out of style soon after opening his business. Which type of risk must he prepare for?
A. Economic
C. Human
B. Natural
D. Incompetence
The payment of taxes to the federal government allows it to provide goods and services to ___________
and ___________ .
A. businesses; households
C. households; product markets
B. businesses; resource markets
D. businesses; product markets
Which of the following economic laws is a business following when it stops hiring after its current
employees achieve a certain level of productivity:
A. Negative returns
C. Marginal revenues
B. Diminishing returns
D. Variable products
The goods and services sold during a year to foreign buyers are a country’s
A. gross private investments.
C. exports.
B. imports.
D. personal consumption expenditures.
Which of the following occurs when a country can produce goods at a relatively more efficient rate than
another country:
A. Absolute advantage
C. Trade deficit
B. Comparative advantage
D. Trade surplus
An employee who is able to adjust to changing conditions possesses the desirable trait of
A. loyalty.
C. friendliness.
B. adaptability.
D. tact.
Which of the following is a reason to avoid drawing distinctions between people:
A. Discrimination is illegal.
C. Some people aren’t “normal.”
B. Everyone is unique.
D. Certain people don’t deserve respect.
Cameron said to his manager, “The order didn’t ship because Sam didn’t tell me that we didn’t have
enough items in stock.” What is Cameron doing?
A. Blaming another person for a communication breakdown
B. Acknowledging that he failed to follow through with the order
C. Stating the facts on Sam’s behalf
D. Responding to inappropriate remarks
In order for teachers to prepare report cards, they must __________ their students.
A. motivate
C. evaluate
B. criticize
D. compliment
You are in a better position to control your own future if you __________ change.
A. agonize over
C. wait for
B. anticipate
D. avoid
Persuasion is an important part of which of the following functions:
A. Education
C. Communication
B. Motivation
D. Self-control
Because people often change their negotiating styles and strategies, effective negotiators must be
A. optimistic.
C. indifferent.
B. flexible.
D. uneasy.
A primary reason that employees experience burnout in the workplace is because they
A. become bored with the work.
C. interact with coworkers.
B. receive new work assignments.
D. obtain feedback from managers.
One of the differences among people that can be difficult to change is their
A. language usage.
C. education.
B. job position.
D. mental ability.
When Brandon lost his job due to downsizing, the government sent him an unemployment check to help
him cover his living expenses until he found another job. What is Brandon’s source of income?
A. Transfer payment
C. Refund
B. Rebate
D. Wage garnishment
One reason customers who pay for products with a credit card usually want to know the interest charges
is because those charges
A. generate the profit for the business.
C. are calculated on a yearly basis.
B. increase the retail price.
D. add to the cost of the purchase.
Which of the following is categorized as a fixed expense in a personal budget:
A. Groceries
C. Home repairs
B. Car payment
D. Clothing
Which of the following is categorized as a fixed expense in a personal budget:
A. Groceries
C. Home repairs
B. Car payment
D. Clothing
Which of the following financial services providers is most likely to provide a small, local coffee shop with
business loans, checking and savings accounts, and overdraft protection:
A. Eastern Region Investment Bank
B. Marley and Winston Commercial Bank
C. Walker, Steinbrenner, and Houghton, CPA Firm
D. Allen and Mellon Brokerage Firm
Loss due to shoplifting is an example of a(n) __________ business risk.
A. economic
C. natural
B. human
D. internal
What is often one of the largest sources of money flowing out of a business?
A. Payroll and benefits
C. Profit and loss
B. Accounts receivable
D. Goods and services
When businesses invest funds to expand, they are involved in the process of
A. selling.
C. finance.
B. depreciation.
D. capitalism.
Many businesses use their company manuals as a source of information in order to __________ new
A. select
C. manage
B. recruit
D. orient
A manufacturer has learned that its market is expanding. How should this information be used?
A. To buy risk protection insurance
C. To lay off employees
B. To drop current product lines
D. To increase production
What is a company’s private computer network that allows authorized users to share information?
A. Intranet
C. E-mail
B. Internet
D. Extranet
Advertisers that use concept testing to obtain feedback from potential customers are conducting
A. target readership evaluation.
C. primary market research.
B. focus group analysis.
D. pretest idea measurement.
What is the relationship between research purpose and research design?
A. There is no relationship between the two.
C. Design is more important than purpose.
B. Purpose dictates design.
D. Design is unnecessary.
Which of the following is a true statement about sample size:
A. Sample size is more important than sample design.
B. The larger the sample size, the better.
C. It must be determined before the target population is defined.
D. The size of the sample does not matter.
The data needed for sales volume analyses and market share analyses come from
A. company sales reports.
C. sales invoices.
B. expense reports.
D. customer records.
What data-collection method can be used to obtain product information during the point-of-purchase
A. Photographic scanner
C. E-mail survey
B. Volume-tracking scanner
D. Statistical survey
What process might a business use to enter marketing data into a computer for analysis?
A. Editing
C. Screening
B. Keyboarding
D. Tabulating
A research study participant providing incorrect information on a questionnaire is an example of a
A. feedback method.
C. false positive.
B. negative answer.
D. response error.
One way to determine the usefulness and accuracy of research information is to
A. assess timeliness.
C. calculate frequency.
B. organize a database.
D. develop a profile.
Customers are more likely to spend a lot of time evaluating several options before buying a product when
A. the need is immediate.
C. the product is expensive.
B. the product is perishable.
D. brand insistence is a factor.
A market for goods and services exists when there is a group of
A. laborers.
C. professionals.
B. responsible homeowners.
D. potential consumers.
What types of environmental factors do businesses often consider when conducting a situational
A. Formal and informal
C. Ethical and legal
B. Physical and personal
D. Internal and external
The Microsoft Corporation generated $51.12 billion in revenue in 2007. This is an example of
A. factual information.
C. inconclusive evidence.
B. unwarranted criticism.
D. current data.
How does appropriate information management affect a business’s relationship with its customers?
A. Businesses lose focus on customers.
B. Businesses earn higher profits.
C. Businesses serve customers more effectively.
D. Businesses make better financial decisions.
A company’s computer network allows many users to access the same programs on different computer
units throughout the company. What type of computer operating system is the company using?
A. Hosted
C. Augmented
B. Multithreading
D. Multiprocessing
What feature do many word-processing software programs contain that enables businesses to prepare
accurate written documents?
A. Encyclopedia
C. Flowchart
B. Calculator
D. Dictionary
A benefit of using an integrated software application package is that it allows businesses to
A. manage all aspects of the operation.
C. search the Internet for information.
B. develop research reports.
D. prepare routine budgets.
If a business wants all of the members of a project team to have the ability to access the same
information from different locations, it should use _________ applications.
A. data mining
C. spreadsheet software
B. presentation software
D. groupware computer
Businesses usually maintain customer sales records that contain information about the
A. discounts offered by manufacturers.
C. cost of paying commissioned salespeople.
B. types of products being purchased.
D. suppliers that provide the goods.
A clothing manufacturer builds quality into its operating system, placing responsibility on each employee.
This process is known as quality
A. delivery.
C. assurance.
B. guarantee.
D. inspection.
Some companies have lowered the number of accidents on the job by using
A. fewer workers.
C. suggestion boxes.
B. safety programs.
D. surveillance cameras.
The purpose of depositing large bills in drop boxes upon receipt is to prevent
A. robbery.
C. burglary.
B. fraud.
D. pilferage.
What do managers often do after a project has been successfully completed?
A. Provide feedback to vendors
C. Give up power
B. Close the front office
D. Prepare a report
Tatiana is a project manager who is ready to close a project, and has scheduled a “lessons learned”
meeting with the project team. What will Tatiana most likely include on her meeting agenda?
A. Explanation of the stakeholders’ expectations
B. The definition of the project’s purpose
C. Discussion of specific challenges encountered
D. The distribution of project resources allocated
Which of the following represents an operating expense for a business:
A. Sales revenue
C. Cost of utilities
B. Cost of goods
D. Returns and allowances
Which of the following is a true statement about housekeeping in a retail business:
A. It is not an important responsibility.
C. It is an ongoing responsibility.
B. It is usually a monthly activity.
D. It is limited to emptying trash.
Which of the following would be a short-term financial goal:
A. Starting your own business
C. Walking a mile every day
B. Saving enough to buy a DVD
D. Getting a promotion within five years
Creative problem solving requires the ability to think
A. nontraditionally.
C. methodically.
B. systematically.
D. illogically
The principles by which you live your life are referred to as your
A. feelings.
C. issues.
B. values.
D. interests.
What should job applicants do if certain questions on the application do not pertain to them?
A. Leave the space blank
C. Ignore the question
B. Make up an answer
D. Write N/A in the space
Job applicants often list on their résumés the names, positions, and addresses of several people who are
willing to serve as
A. references.
C. associates.
B. companions.
D. colleagues.
Which of the following is an example of an occupationally specific trade association:
A. Retail Merchants Association
B. National Restaurant Association
C. Chamber of Commerce
D. Sales and Marketing Executives International
The price factor is important to the other three factors in marketing because the four marketing factors
A. in competition.
C. unique.
B. interdependent.
D. equivalent.
Predatory pricing is an unethical business practice because it can create economic conditions in which
A. consumers have fewer choices.
B. consumers pay higher property taxes.
C. small businesses gain significant profits.
D. small businesses control market conditions.
Product/service management can help to decrease
A. business risk.
C. sales.
B. profits.
D. financial success.
What is a technologically advanced method that allows businesses to produce products that are
specialized for a very few customers?
A. Mass customization
C. Computerized robotics
B. Automatic production
D. Intermittent conversion
Which of the following is an example of a business behaving ethically in an effort to protect consumers:
A. Explaining the new manufacturing process
B. Wrapping products in plain paper
C. Placing informative commercials on television
D. Using tamper-resistant packaging
Being attentive, watching trends, and pinpointing problems are ways for entrepreneurs to uncover
A. true motives.
C. intangible goals.
B. financial strategies.
D. product opportunities.
What synectics technique compares a problem with something else that is unrelated?
A. Discretionary comparisons
C. Arbitrary metaphors
B. Forced analogies
D. Deliberate allegories
Feedback from customers about problems with products provides producers with the information needed
A. select promotional media.
C. make product improvements.
B. hire employees.
D. modify brand values.
Which of the following would be least likely to be found on the label of a nonhazardous product:
A. Proper circumstances for use
C. Precautions when using the product
B. Acceptable uses
D. Ingredients
What a brand is and stands for, as well as how it behaves and the qualities it projects, are embodied in
A. personality.
C. logo.
B. identity.
D. equity
The marketing function that helps sellers to provide information to buyers about the seller’s products is
A. distribution. C. purchasing.
B. promotion. D. financing.
One reason advertising prescription drugs online might be considered an ethical issue is because the
advertisements might persuade customers to
A. use drugs they do not need.
C. buy drugs they cannot afford.
B. obtain drugs from the manufacturer.
D. order drugs that are inexpensive.
Which of the following technological tools has made it possible for a business to send personalized
promotional messages in a cost-efficient manner:
A. Electronic mail
C. Interactive banner
B. Encryption card
D. Exclusive kiosk
What type of promotional media might a statewide chain of supermarkets use in order to reach a large
number of potential customers in its geographic area?
A. Regional magazines
C. National television
B. Suburban newspapers
D. Transit advertising
What best describes the goal of amplified word-of-mouth?
A. Encouraging customers to provide both positive and negative feedback
B. Providing information to activists to share with others
C. Building loyal relationships with the customers
D. Improving the quality of goods and services the business offers
What communication channels is a corporation’s public-relations department most likely to use to
maintain positive relationships with shareholders?
A. Newsletters, annual reports, and the company’s web site
B. Press releases, online social networks, and print advertisements
C. News conferences, consumer blogs, and employee manuals
D. Policy manuals, commercials, and sponsorships
What communication channel do businesses often use to disseminate positive public-relations
information about themselves and their employees to external audiences?
A. The media
C. Creative writer
B. Marketing-research firm
D. Infomercia
The most appropriate way for the High-Tech Computer Company to communicate information about its
new line of computers at a trade show is by
A. sending direct mail.
C. placing billboard advertisements.
B. holding product demonstrations.
D. developing a contest.
A business’s advertising and display efforts should be
A. contradictory.
C. separate.
B. coordinated.
D. competitive.
Which of the following situations is most likely to result in long-term, increased sales for a business:
A. Constantly providing new choices for consumers
B. Raising the price of its current products
C. Lowering the price of its current products
D. Eliminating a slow-selling product line
Salespeople may risk losing a sale to a potential customer if they are unable to explain a business’s
__________ policies.
A. purchasing
C. employee
B. operating
D. selling
With a high level of selling ethics, you would typically ask which of the following questions in an ethical
A. What would others advise?
C. What is required of me?
B. What can I get away with?
D. What is the right thing to do?
What form of technology are salespeople using that eliminates the need to carry a laptop and personal
data assistant while making sales calls?
A. Router
C. Micro kiosk
B. Pager
D. Smartphone
The Acquired Needs Theory implies that a person’s buying behavior is affected by three primary needs,
which include achievement, power, and
A. advancement.
C. esteem.
B. affiliation.
D. enrichment.
Which of the following activities is the primary responsibility of the U.S. judicial system:
A. Applies the laws
C. Organizes the laws
B. Controls the laws
D. Supplements the laws
John loves sports and would like to own his own sporting goods business. He has set aside some money
for investment but has very little time for the day-to-day operations of a business. What type of business
ownership would you recommend?
A. Close corporation
C. Corporation
B. Sole proprietorship
D. General partnership
Which of the following products would likely use an exclusive distribution pattern:
A. A gallon of milk
C. A home-decorating magazine
B. A large piece of farm machinery
D. A silk necktie
Which of the following is the most common channel of distribution for consumer goods:
A. Manufacturer; wholesaler; retailer; consumer
C. Manufacturer; agent; retailer; consumer
B. Manufacturer; retailer; consumer
D. Manufacturer; consumer
Using coercive power in distribution channel relationships is illegal in the United States if it
A. creates exclusive territories.
C. controls arbitration.
B. restricts competition.
D. establishes contracts.
When coordinating marketing activities, it is important for all distribution channel members to understand
their roles in the supply chain and to
A. develop sanctions.
C. have an independent mindset.
B. conduct audits.
D. communicate clearly.
What is an effective technique for employees to use to extract relevant information from written
A. Skim through chapter titles
C. Develop a rough outline
B. Ask frequent questions
D. Take notes while reading
Which of the following is a communication technique that supports and encourages a speaker:
A. Active listening
C. Speed reading
B. Taking notes
D. Making comments
In order for an employee to follow directions s/he is being given about how to do a new job properly, the
employee must
A. focus on the message’s content.
C. prepare to give feedback.
B. evaluate what is being said.
D. avoid asking any questions.
To enunciate when speaking to customers means to
A. talk fast.
C. run words together.
B. talk slowly.
D. pronounce words clearly.
Paul is responding to an inquiry he received in the mail. His response includes some good news and
some bad news. How should he structure his response in light of the bad news?
A. Place the good news at the beginning and the bad news in secondary position(s)
B. Place the bad news at the beginning and the good news in secondary position(s)
C. Place the bad news in the post-script (P.S.) section of the response
D. Give more space to bad news than good news to clearly explain it
When you ask questions in an open-minded way, you avoid
A. mentioning the truth.
C. suggesting a better way to do something.
B. stating your own opinion.
D. attacking someone else’s idea.
When writing e-mail messages to businesspeople, it is best to avoid using
A. initialisms.
C. modifiers.
B. conjunctions.
D. antonyms.
Employees often use simple written reports to provide managers with __________ information.
A. extensive
C. in-depth
B. analytical
D. routine
What might a business lose if an advertisement attracted new customers, but they were greeted by a
discourteous employee?
A. Frequent complaints
C. Service problems
B. Repeat business
D. Negative impression
What kind of customer would make the following statement: “Why are you always moving everything
around? You really make it hard for me to find what I want.”
A. Disagreeable
C. Slow/Methodical
B. Suspicious
D. Domineering/Superior
Carpeting had been installed in Karl’s living room and den on Friday afternoon. The next day, he noticed
that along one wall, the carpeting was not laid properly. Karl called the installer to have the problem
corrected. The carpet installer should first
A. listen to Karl and see the problem through his eyes.
B. provide alternative solutions to the problem.
C. state the company’s policy about carpet installation.
D. ask Karl to please hold while he gets the store manager.
Dry cleaning is an example of a(n)
A. tangible object.
C. economic service.
B. economic good.
D. natural resource.
When goods or services are made more useful to consumers, the goods and services have added
A. profit.
C. demand.
B. costs.
D. utility.
Because the Engel Company takes raw materials and makes products that are useful for consumers, it is
an example of a
A. manufacturer.
C. wholesaler.
B. trade industry.
D. mining business.
Which of the following has a direct impact on a manager’s span of control:
A. Channel of distribution
C. Number of subordinates
B. Popularity of products
D. Allocation of funds
The economic system in which producers are willing to use resources to create products that consumers
are willing to buy is known as a __________ economic system.
A. communist command
C. socialist command
B. traditional
D. market
Which of the following situations would involve direct competition:
A. All of the workers employed by a large automobile manufacturer go out on strike.
B. A manufacturer installs a conveyor belt to speed up production.
C. A department store conducts a “Back-to-School” sale during July and August.
D. A new bank opens in a community already served by three banks.
Which of the following transactions would be counted in the gross domestic product:
A. A florist purchases plants from a nursery.
B. A bakery purchases 50 pounds of sugar.
C. A customer purchases a sweater.
D. A restaurant purchases meat from a wholesaler.
A high rate of unemployment usually has a negative impact on a country’s
A. personal income tax.
C. gross domestic product.
B. equilibrium price level.
D. terms of trade.
Jennifer’s manager pointed out some areas for improvement in her last performance review. Now, she
thinks she is a poor employee. This is an example of
A. comparing yourself to others.
C. false generalization.
B. being modest.
D. recognizing your strengths
Katrina is a long-time employee who routinely finishes her assignments ahead of schedule. John, a new
employee, often stays late to complete his work. As a responsible employee, Katrina should
A. ignore the problem and let the managers solve it.
B. suggest that John be reassigned.
C. offer to assist John if she can.
D. inform the manager that John needs special training.
One of the characteristics of a positive attitude that is easy to observe is
A. a number of interests.
C. the willingness to change.
B. the ability to fix blame.
D. a friendly smile.
Which of the following causes the greatest number of cultural sensitivity issues:
A. Level of comfort with uncertainty
C. Globalization
B. Communication
D. Relationships to time and space
An effective way to create a desire for others to agree with your ideas is by
A. identifying concerns.
C. explaining benefits.
B. stating your case.
D. gathering information.
Which of the following is a basic belief that you must have so you can start to be assertive:
A. You should always respond to the needs of others.
B. You have the right to try to force your ideas on others.
C. Your thoughts, feelings, ideas, and opinions are important.
D. Your needs come first in all situations.
Employees who are able to deal with new situations and changes in the workplace are demonstrating
A. responsibility.
C. adaptability.
B. leadership.
D. enthusiasm.
Shari finally finished the major project she’d been working on for months, so she takes the day off and
heads to the spa. Which step in developing an achievement orientation does this illustrate?
A. Rewarding yourself for your accomplishments
B. Being a leader
C. Being patient and persistent
D. Asking for feedback
Human relations can best be described as the study of the ways people
A. develop personal styles.
C. handle communication.
B. form and express opinions.
D. form and conduct relationships.
When Matthew receives a check four times a year for income he has earned on his stock investments, he
is receiving
A. deposits.
C. dividends.
B. credit.
D. cash.
The XYZ Company has a financial organization within the business that offers small loans, installment
credit, and low interest rates to its members. This is an example of a
A. credit union.
C. commercial bank.
B. sales-finance company.
D. savings and loan.
Preparing wills and setting up guardianships are types of financial services that often are provided by
A. executors.
C. courts.
B. attorneys.
D. beneficiaries.
Mark has decided to hire a financial-services provider to help him plan his long-term financial goals.
Which of the following should he do first:
A. Contact his bank
C. Interview potential candidates
B. Search online
D. Obtain referrals from trusted friends
Business risks that are caused by changes in the market are called __________ risks.
A. environmental
C. human
B. economic
D. natural
Which of the following presents the steps in the accounting process in the correct order:
A. Summarize, record, organize
C. Record, organize, summarize
B. Record, summarize, organize
D. Summarize, organize, record
A business’s cash flow statement for one month indicates cash sales of $10,250, credit sales of $3,750,
loans received of $525, and fixed expenses of $2,800. Calculate the total cash receipts.
A. $13,575
C. $7,975
B. $9,985
D. $10,775
A summarization of the total income and expense of a business for a period of time is called
A. the profit-and-loss statement.
C. cost of goods sold.
B. gross profit.
D. balance sheet
One reason why human resources management is important to the success of a business is because this
process is responsible for
A. staffing the business.
C. creating jobs for the company.
B. eliminating turnover.
D. reducing compensation.
Which of the following is one way that businesses use marketing information:
A. To prepare sales invoices
C. To change economic trends
B. To determine credit scores
D. To develop new products
A marketing-information management system can help businesses to
A. practice good business ethics.
C. motivate employees.
B. discover employee potential.
D. discover new markets.
The Internet gives marketing-information managers the ability to search for data in
A. computer modems.
C. CD-ROM catalogs.
B. competitors’ sales records.
D. remote locations.
Kelli accesses a professional association’s web site to review information about employment trends in a
specific industry. What type of research is Kelli obtaining?
A. Secondary
C. Primary
B. Internal
D. Intermediate
Which of the following is an example of a method that marketers use to conduct causal research:
A. Telemarketing
C. Surveys
B. Experiments
D. Interviews
Marketing businesses use the information from sales representatives to make decisions. One type of
report that details a sales representative’s planned sales calls and routes for an upcoming week or month
is a(n) __________ report.
A. activity
C. call
B. territory
D. quota
What is a common method of collecting research data that often involves the use of questionnaires?
A. Message board
C. Mail survey
B. Case study
D. Behavior chart
What type of data do descriptive statistics summarize?
A. Subjective
C. Synectic
B. Sample
D. Solitary
What should researchers consider when evaluating the design of questionnaires?
A. Size of paper
C. Names of developers
B. Types of questions
D. Number of participants
One way for a marketing researcher to determine if online journals and articles are up-to-date is by
A. requesting a quotation.
C. asking the team leader.
B. accessing the FAQs page.
D. locating the publication date.
The most immediate impact of the marketing function is its relation to
A. meeting government regulations for registration.
B. offering a variety of goods and services.
C. limiting the number of products offered.
D. ensuring least-cost pricing.
When Ken Ditioner, owner of Shine Shampoo, considers how to package the items he produces, he is
making a __________ decision.
A. promotion
C. place
B. price
D. product
If you were trying to convince someone to use quantitative sales forecasting, which of the following
factors would you stress:
A. Minimal cost
C. Factual basis
B. Variety of opinions
D. Ease with which findings are understood
Which of the following is a trend in information management:
A. Increased compliance laws and regulations
C. Decreased number of electronic documents
B. Decreased competition
D. Increased number of workers in the office
A legal issue associated with the use of information might involve the violation of __________ laws.
A. copyright
C. trademark
B. patent
D. contract
Which of the following is a computer-based time-management tool that helps employees keep track of
their appointments and activities:
A. Desktop-publishing software
C. Instant-messaging program
B. Spreadsheet calculator
D. Electronic task organizer
What is a spreadsheet soft ware program’s calculation for next year’s operating expenses based on the
following information: an increase of 5% over current sales of $675,500 a year, and a 3% increase in
operating expenses that are currently 40% of sales.
A. $290,465.00
C. $283,710.00
B. $304,988.25
D. $312,326.25
What approach to record keeping is Dahlia’s business using when it hires a data processing center to
handle the record keeping for its accounting information?
A. Keeping the records personally
C. Hiring an employee
B. Establishing a department
D. Outsourcing the task
Which of the following examples illustrates how environmental factors are dynamic:
A. The government provides subsidies to agricultural businesses.
B. Demographics influence social and cultural attitudes.
C. The economy impacts government policies.
D. High interest rates will eventually get lower.
What is the advantage to businesses of reviewing internal records to obtain information?
A. Research techniques are complex.
C. Employees have limited access.
B. Statistics are expensive to compile.
D. Data are specific to the company.
When operating machinery in the workplace, employees can reduce the risk of injury to themselves and
damage to the machinery by
A. reading the appropriate promotional materials.
B. following the manufacturer’s operating instructions.
C. performing maintenance activities themselves.
D. requesting a trained supervisor to operate the machinery.
Which of the following is an example of a security precaution to protect the business from credit-card
A. Using a buzzer system to notify the police
C. Installing closed-circuit TV
B. Checking the customer’s signature
D. Hiring security personnel
Which of the following is an example of an internal source that Eli can use to develop a project that he
needs to complete for his supervisor:
A. Sales reports
C. Competitors’ advertisements
B. Public library
D. Trade associations
Which of the following is a benefit of project planning:
A. Setting an appropriate time frame
C. Coordinating all of the parts of the project
B. Asking yourself important questions
D. Monitoring your project
An auto-parts buyer evaluates a new vendor’s performance and determines that the vendor didn’t follow
through on all of its promises and was late delivering the buyer’s order. One of the first things that the
buyer should do is
A. inform others in the industry of the vendor’s faults.
B. replace the vendor with a more reliable one.
C. demand that the vendor give the buyer a refund.
D. communicate his/her feedback to the vendor.
Which of the following should a business deduct from gross profit in order to arrive at net profit:
A. Operating expenses
C. Product rebates
B. Quantity discounts
D. Cost of goods
One of the major functions of business maintenance is to
A. keep the business spotlessly clean.
C. protect products from damage.
B. create a favorable impression.
D. present products effectively.
What is an important guideline to remember when establishing personal goals?
A. Make sure your goals are vague.
C. Disregard outside assistance.
B. Focus on the negative.
D. Set realistic goals.
One of the ways creativity is useful in marketing occupations is in accomplishing __________ activities.
A. immediately apparent
C. mathematical
B. public relations
D. routine
Individuals often succeed in occupations that require the skills that match their
A. values.
C. behaviors.
B. aptitudes.
D. attitudes.
A job applicant should be able to completely answer the interviewer’s questions if s/he has been
A. listening.
C. talking.
B. reading brochures.
D. taking notes.
What is an important quality that all résumés should possess?
A. Neatness
C. Creativity
B. Length
D. Complexity
Businesses that display their goods and services at trade shows usually have representatives available
whose major responsibility is to
A. meet with potential customers.
C. order replacement materials.
B. clean and stock the area.
D. negotiate with the set-up crew.
What do customers often associate with high prices?
A. Profit
C. Quality
B. Demand
D. Economy
A law is established to ensure that businesses include pricing terms in their advertisements. The law is
designed to discourage businesses from practicing __________ pricing strategies.
A. deceptive
C. elastic
B. inequitable
D. compliant
Technology is important to the product/service management function because it helps a business
A. monitor inventory.
C. finance expansions.
B. select advertising.
D. increase revenue.
With the arrival of digital television, many customers have purchased new digital televisions. A marketer
recognized that these customers would want to do something with their old TVs. This is an example of
A. opportunity recognition.
C. the need to purchase related items.
B. individual development.
D. the availability of new information.
A common way for businesses to generate new product ideas is by reviewing
A. employee records.
C. status reports.
B. sales receipts.
D. customer surveys.
A women’s clothing store that tells customers it will refund their money if they are not completely satisfied
with any item they buy is providing a(n)
A. rebate.
C. guarantee.
B. warranty.
D. explanation.
Harrison Stroller Company manufactures baby strollers. The business launched a new stroller line in
hopes of increasing its market share. The new model featured neon, plastic, musical toys on the front bar
of the stroller. By the middle of the first year, there were 50 reports of infant injuries. What legal action will
Harrison Stroller Company have to face?
A. Consumer Product Safety Act
C. Consumer protection
B. Product deletion
D. Product liability
Which of the following is a reason why a business might choose to expand its product mix:
A. To increase sales
C. To increase risks
B. To reduce costs
D. To reduce liability
A company that makes ink pens claims that no other pen on the market uses a type of ink that changes
color when exposed to light. The company is positioning its product according to what strategy?
A. Relation to other products in a line
C. Price and quality
B. Features and benefits
D. Unique characteristics
Corporate branding involves creating a specific image for a variety of products and product lines by
focusing on
A. tangible services.
C. a common vision.
B. different ethics.
D. one touch point.
The way that business benefits directly from promotion is through
A. increased sales.
C. decreased competition.
B. better informed consumers.
D. increased job opportunities.
Effective product promotions can be used by businesses to
A. achieve immediate success for the businesses.
B. make consumers purchase goods or services.
C. substitute for talented, well-trained salespeople.
D. persuade consumers to buy goods or services.
Critics claim that promotion poses an ethical dilemma because it encourages __________ attitudes in
A. responsive
C. resourceful
B. inflexible
D. materialistic
When a government requires a business to inform consumers about its product’s limitations in its
promotional materials, it is often referred to as
A. affirmative disclosure.
C. honorable verification.
B. ethical verification.
D. assenting disclosure.
What type of promotional media might a chain of businesses use in order to reach a large number of
potential customers in a particular state or province?
A. Regional magazines
C. National television
B. Suburban radio stations
D. Transit advertising
Which of the following is a communications channel used in sales promotion:
A. Discount coupons
C. Newspaper ads
B. Package labels
D. Television commercials
Why is it important to coordinate the elements in advertisements?
A. To identify the message
C. To strengthen the theme
B. To analyze the objective
D. To locate the audience
Businesses often participate in trade shows as a way of communicating with their
A. out-of-town employees.
C. investors.
B. target audiences.
D. sales staff.
An important external factor that affects the type of promotional plan a business develops is the
A. competition.
C. available budget.
B. image.
D. sales objectives.
One of the ways that salespeople can use selling to create desire for products is by
A. using product demonstrations.
C. making a good impression.
B. emphasizing high cost of a product.
D. monitoring the competition.
Which of the following is a positive outcome for a business when its salespeople consistently provide
excellent customer service as part of the selling process:
A. Increased commissions
C. Positive reputation
B. Improved quality
D. Competitive disadvantage
An example of a lead that a salesperson might obtain from sources within his/her own company is a lead
A. obtained from an industry trade show.
C. received from a personal friend.
B. obtained at a service club meeting.
D. found through cold canvassing.
How do antitrust laws that prevent the formation of monopolies and promote competition affect
A. Require extensive reporting to government
C. Establish a formal code of ethics
B. Make certain selling activities illegal
D. Create a standard for employee rights
A customer asks a specific product question that a new salesperson cannot answer. What should the
new salesperson do?
A. Ask an available, experienced employee
C. Try to serve the customer as best s/he can
B. Explain that s/he is new and doesn’t know
D. Tell the customer to contact the manufacturer

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