Ch 1-9 Review - first 40

1) Which of the following statements about economic decision-making is TRUE? A) Command economies usually rely on market forces to determine prices. B) The United States may be considered a pure market-directed economy. C) In a market-directed economy, the micro-level decisions of individual producers and consumers determine the macro-level decisions. D) Government planning usually works best when economies become more complex and the variety of goods and services produced is fairly large.

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2) The main difference between a "marketing strategy" and a "marketing plan" is that ________. A) a marketing plan includes several marketing strategies B) time-related details are included in a marketing plan C) a marketing plan does not include a target market D) a marketing strategy provides more detail E) a marketing strategy omits pricing plans

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3) A widely used measure of income in most countries is: 3) _______ A) total consumption expenditures. B) population times GNI. C) disposable personal product. D) gross national income. E) socio-economic product.

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4) Which is the first step in market segmentation? 4) _______ A) Naming a broad product-market of interest to the firm. B) Finding one or two demographic characteristics to divide up the whole mass market. C) Evaluating market segments to determine if they are large enough. D) Clustering people with similar needs into a market segment. E) None of these alternatives is the first step in market segmentation.

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5) Which of the following is an economic need? 5) _______ A) Desire for efficiency in the consumer's investment plans B) Desire for self-satisfaction and convenience C) Desire for prestige and paying a high price for the best quality D) Desire for status and paying a high price for the best quality E) Desire for efficiency in the use of the consumer's time and money

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6) Regarding product classes, 6) _______ A) Business product classes are based on how buyers think about products and how the products will be used. B) The same product may be a consumer product and a business product. C) Consumer product classes are based on how consumers think about and shop for products. D) Products are classified by what type of customer will use them. E) All of these statements about product classes are true.

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7) At what stage of the product life cycle do industry profits start to decline? 7) _______ A) Market maturity B) Market introduction C) Sales decline D) Stagnation E) Market growth

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8) Regarding product life cycles, good marketing managers know that ______. 8) _______ A) any product modification results in a new product life cycle B) any new brand must start off in the market introduction stage C) product life cycles cannot be extended D) a firm's product can be withdrawn before its related product life cycle is over E) All of these alternatives are true.

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9) If a producer does not have a new-product development process, it ultimately means that the firm ______. 9) _______ A) will survive on current products until going out of business B) can survive on old products indefinitely C) lacks financial resources D) is incapable of innovation E) does not want to be profitable

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10) The job of product or brand manager is often created when a firm wants to ______. 10) ______ A) eliminate the job of the research and development department B) eliminate the job of sales manager C) do away with product "champions" D) handle many different kinds of products or brands E) None of these alternatives is correct.

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• E