Marketing Cluster Exam Practice

Business Law; Question #1, Test 23:

What effect do some environmental laws have on businesses?

A. Control exterior landscapes B. Require more employees C. Increase operating costs D. Limit equipment purchases

C. Increase operating costs. To comply to environmental laws, businesses may need to spend more money on equipment such as pollution control

Business Law; Question #2, Test 23:

The purpose of customs regulations is to

A. uphold the longstanding traditions of the country. B. ensure that nothing foreign enters the country. C. prevent immigration into the country. D. control the flow of goods into and out of the country.

D. control the flow of goods into and out of the country. Customs regulations protects the country’s economy, environment and citizens by controlling what goes in and what goes out

Channel Management; Question #4, Test 23:

One common barrier to the use of technology in channel management is

A. the overwhelming number of technology options. B. employees' inability to master new technology. C. the possibility for increased productivity and efficiency. D. companies' refusal to implement new tools.

A. the overwhelming number of technology options. Companies are often overwhelmed with the amount of technology options that are available for them to use. They generally like to embrace them.

Channel Management, Question #6, Test 23:

One reason a channel of distribution that has strong leadership is often able to avoid conflict within the channel is because the leader has the

A. authority to demand cooperation. B. ability to provide training. C. capacity to regulate change. D. personality to develop friendships.

A. authority to demand cooperation. Channel leaders need to have the authority to set goals for the entire channel and demand cooperation among their members to avoid conflict. Channel leaders don’t provide training.

Channel Management, Question #7, Test 23:

Which of the following is an example of an affinity partnership:

A. A restaurant gives discounts to those who join its rewards program. B. An airline offers frequent flyer miles to travelers. C. A credit card company offers cards with sports teams' logos. D. A bank pays to have its name on a local concert venue

C. A credit card company offers cards with sports teams' logos. Affinity marketing is a strategy used by organizations in which a company will form a partnership with another company in hopes of being exposed to a different market. For example fans of that certain sports team may be more inclined to use that credit card company.

Economics, Question #15, Test 23:

By promoting their goods and services and offering a number of purchasing arrangements, businesses help to create __________ utility.

A. financial B. time C. possession D. place

C. possession. By promoting goods and services and offering different pricing arrangements, companies are making sure to appeal to the customer so they buy the product therefore increasing possession utility. Financial utility is not a thing.

Economics, Question #19, Test 23:

Kelly runs a small home bakery. To help her fulfill more orders, she hired three part-time employees. The additional workers increased her output, so she hired another three workers. To her surprise, Kelly's output actually decreased once she added the last three workers. This example best demonstrates the

A. harm of taking business risks. B. law of diminishing returns. C. danger of hiring employees. D. need for effective employee training.

B. law of diminishing returns. The law of diminishing returns states that the output can’t increase if all the other variables remain constant. Because Kelly added 6 new employees and kept everything the same the output can’t possibly increase

Economics, Question #20, Test 23:

Which of the following circumstances is most likely to cause interest rates to increase:

A. Low inflation B. Consistent investment spending C. Economic recession D. Tight money supply

D. Tight money supply. Tight money supply/less money in circulation will raise interest rates. This is because if there is less money to lend then the interest rates will rise. If the money were loose meaning there was more to spend then the interest rate would be lower

Financial Analysis, Question #32, Test 23:

Which of the following is fiat money:

A. A $20 bill B. A check C. A credit card D. Gold

A. A $20 bill. This bill doesn’t have any intrinsic value since it is backed up by the government. Gold is a commodity while checks and credit cards are not backed by the government

Information Management, Question #39, Test 23:

One of the advantages of obtaining and using marketing information is that it helps business managers to

A. train and direct employees. B. prepare documents and reports. C. review and understand regulations. D. predict and control risks.

D. predict and control risks. The marketing information of the company brings light to any problems the company may be facing and allows managers to predict and control the risks. For example, the information may show data of a product losing popularity and can use that to modify the product

Information Management, Question #44, Test 23:

A company wants to collect information from various sources to determine if it should consider expanding to international markets. What research method should the company use if it does not want to spend a lot of time or money to obtain the information?

A. Experimental B. Exploratory C. Interview D. Causal

B. Exploratory. Exploratory research helps the business identify it’s problem or situation and decide what to do with that research. Casual research spends a lot of time on answering “what if?” questions.

Market Planning, Question #53, Test 23:

Which of the following is an example of how a business uses sales forecasts:

A. To plan purchases B. To organize inventory C. To manage staff D. To control trends

A. To plan purchases. A sales forecast predicts which products will be bought the most and generate the most profit. Companies use this to determine how much product to order.

NF, Question: #56, Test 23:

When developing websites, businesses often use

A. instant messaging. B. data tracking. C. design software. D. intranet retrieval.

C. design software. Design software makes it easier to make websites.

NF, Question: #58, Test 23:

Analyzing data with Simpson's Paradox in mind can help account for

A. unconsidered variables or dimensions. B. inconsistencies in data generation. C. human error. D. incorrect assumptions

A. unconsidered variables or dimensions. The Simpson’s Paradox is when a similar trend is happening in different groups but disappears when the groups combine. This shows that multiple variables could be missed and the initial interpretation could have been wrong.

Professional Development, Question #66, Test 23:

What trait is the most important for marketers who work in marketing operations?

A. Communication skills B. Analytical skills C. Creativity D. Tech skills

B. Analytical skills. Marketing operations focuses less on creativity and more on analysis of research.

Product Service Management, Question #75, Test 23:

Which of the following is a way a business can classify a product line:

A. Width B. Customer group C. Depth D. Trading up

B. Customer group. A product line is identified by the customer group it appeals to. Width measures the amount of products in a product line.

Product Service Management, Question #77, Test 23:

A trade association agrees to a set of standards and grades that will apply to products developed by its members. How will consumers of the products benefit from these standards?

A. Guarantee of the same price B. Ease of comparison shopping C. Assurance of buyers' satisfaction D. Guarantee of product availability

B. Ease of comparison shopping. Because multiple trade association members made different products, customers can easily comparison shop. This may or may not affect customer satisfaction.

Promotion, Question #85, Test 23:

Pat's Pizza Place has introduced a new, low-fat pizza crust. In its advertising, it describes how tasty and healthy the low-fat crust is. Pat's Pizza Place is using which of the following promotional communication characteristics:

A. Factual B. Persuasive C. Relevance D. Repetitious

B. Persuasive. Promotional material must be persuasive and this advertisement is trying to convinces customers to buy the pizza based on taste and health.

Financial Analysis, Question $88, Test 23:

Patrick wants to keep a certain amount of his money in a safe place where he can earn interest on his savings, and also be able to withdraw his funds without experiencing sizable financial penalties. In what type of financial institution should Patrick consider placing his money?

A. The stock market B. A holding company C. A retirement fund D. A retail bank

D. A retail bank. A retail bank allows customers to open up a high-yield savings account that will keep money safe, accumulate interest on it, and can be withdrawed. A holding company owns the majority of another company’s stocks.

Selling, Question #94, Test 23:

Where might a salesperson most likely obtain firsthand product information?

A. At the library B. From competitors C. At the factory D. From customers

D. From customers. Customers are always willing to share information with others