McDonald’s, Burger King, and Taco Bell all compete for the same customers.

1. The two basic functions performed by all organizations, from

the large multinational firms such as Mercedes to an exclusive

Chinese restaurant, are

A. marketing and planning.

B. production and marketing.

C. financing and planning.

D. buying and selling for profit.

2. American businesses wishing to do business in some foreign countries may be required

by law to engage in

A. political action committees. C.strategic alliances.

B. environmental scanning. D.environmental management.

3. Of the following online activities, the highest earnings come from

A. online gaming. C.retail sales.

B. financial services. D.business-to-business sales.

4. A photo service promises delivery of developed film “Next Day or Free.” This guarantee is

an example of what type of utility?

A. Time C.Form

B. Place D.Ownership

5. McDonald’s, Burger King, and Taco Bell all compete for the same customers. This type of

market rivalry is known as

A. environmental management. C.direct competition.

B. a demarketing campaign. D.time-based competition.

6. Which process is the essence of marketing?

A. Production C.Selling

B. Exchange D.Promotion

7. Which of the following do transaction-based marketing and relationship marketing have

in common?

A. A long-term orientation C.Emphasis on internal marketing

B. Moving customers up a loyalty hierarchy D.Attracting new customers

8. Which of the following statements bestexemplifies the marketing era?

A. “Ask your customers what they want.”

B. “One glove fits all.”

C. “Customers don’t always know what they want, so motivate them with benefits.”

D. “Build a better mousetrap, and the world will come to your door.”

9. Monitoring articles in local newspapers and magazines would be an example of

A. environmental scanning. C.competitive monitoring.

B. sociopolitical environments. D.technological environments.

10. The broadest powers at the federal level to influence marketing activities are held by the

A. Federal Communications Commission.

B. Environmental Protection Agency.

C. Interstate Commerce Commission.

D. Federal Trade Commission.

11. Companies that develop broad marketing ideas that focus on the satisfaction of consumer

needs are likely to avoid

A. cause marketing.

B. marketing myopia.

C. negative ad campaigns.

D. taking risks.

12. What type of competition could occur between a bottle of wine and a compact disc?

A. Time-based competition

B. Competition of substitute products

C. Competition for discretionary buying power

D. Competition of similar products

13. Online shoppers A and B buy the same make and model of car for the same price, but

shopper A finds the deal much quicker. What is a possible explanation?

A. Shopper B visits auction sites.

B. Shopper A uses a bot.

C. Shopper B uses a bot.

D. Shopper A visits only corporate sites.

14. A sports company sells merchandise online to allow shoppers access to a wider variety of

goods. This involves which one of the following elements?

A. Event marketing C.Economic environment

B. Technological innovations D.Distribution strategies

15. In terms of its immediate goal, the FTC’s attempt to regulate cyberspace mostresembles

the _______ phase of U.S. government regulation.

A. first C.third

B. second D.fourth

16. Airlines begin lowering fare rates in response to the success of online sites that sell

discount airline tickets. This is an example of a _______ strategy.

A. pricing C.promotional

B. distribution D.product

17. On which of the following would you probably find an announcement of the date, time, and

location of a Civil War battle reenactment?

A. Online newsgroup C.Online forum

B. Electronic bulletin board D.Web kiosk

18. Which statement about banner ads is true?

A. You wouldn’t find a banner ad on a home page.

B. Banner ads appear mainly on corporate Web sites.

C. Banner ads frequently include links.

D. You would need to click several times from a home page to find a banner ad.

19. During what cycle of a nation’s economy would you mostlikely see consumer prudence

inhibiting the consumers’ growing ability to purchase desired products?

A. Recession C.Recovery

B. Prosperity D.Depression

20. Which feature of e-commerce probably poses the biggest threat to a local business?

A. Global reach C.Interactive marketing

B. Right-time marketing D.Integrated marketing