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All Free Economics MCQs with Answers

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4,037 questions · page 138 of 202

2741. The type of trade promotion discount in which manufacturers agree to reduce the price to the retailer in exchange for the retailer's agreement to feature the manufacturer's products is some way is called a(n) ?

  • A. discount
  • B. allowance
  • C. premium
  • D. rebate

Explanation: A trade allowance is a price reduction offered to a retailer for performing a promotional activity, such as featuring the manufacturer's…

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Correct answer: allowance

2742. If your company were to make a product such as a suit of clothes and sold that product to a retailer your company would have sold to the __________ merket?

  • A. reseller
  • B. business
  • C. government
  • D. service

Explanation: A retailer buys products for resale, so the transaction is made in the reseller market.

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Correct answer: reseller

2743. Given recent information about growth trends and growth potential of ethnic populations within the U.S market which of the following ethnic groups would be a best bet to double during the next half century and become one of the U.S market's most viable segments ?

  • A. Hispanics and Asians
  • B. African Americans
  • C. Western Europeans
  • D. Middle Eastern

Explanation: Hispanic and Asian populations were projected in standard U.S. marketing texts to grow rapidly and become highly important market…

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Correct answer: Hispanics and Asians

2744. Catalog marketing is big business in the United States. The average house hold receives __________ catalogs per year?

  • A. 25
  • B. 50
  • C. 75
  • D. 100

Explanation: The commonly cited textbook estimate is that an average U.S. household receives about 50 catalogs annually.

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Correct answer: 50

2745. The fact that services cannot be stored for later use or sale is evidence of their ?

  • A. intangibility
  • B. inseparability
  • C. variability
  • D. perishability

Explanation: Perishability means a service cannot be stored, inventoried, or saved for later sale or use.

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Correct answer: perishability

2746. When a company reviews sales costs and profit projections for a new product to find out whether these factors satisfy the company's objectives they are in which of the following new process development stages ?

  • A. Concept development and testing
  • B. Commercialization
  • C. Business analysis
  • D. Marketing strategy development

Explanation: Business analysis evaluates projected sales, costs, and profits to determine whether a product fits the firm's objectives.

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Correct answer: Business analysis

2747. If a consumer describes a car as being the most economical car on the market than this descriptor is a?

  • A. rule
  • B. attitude
  • C. belief
  • D. cute

Explanation: Calling a car the most economical expresses a consumer's specific conviction about the product, which is a belief.

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Correct answer: belief

2748. __________ is a philosophy holding that a company's marketing should support the best long-run performance of the marketing system?

  • A. Enlightened marketing
  • B. Myopic marketing
  • C. Fundamental marketing
  • D. Conceptual marketing

Explanation: Enlightened marketing balances customer satisfaction, company goals, and society’s long-run welfare, so it aims to improve the overall…

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Correct answer: Enlightened marketing

2749. The primary reason that many companies work to become the low cost producers in their industry is because ?

  • A. they can generate more advertising
  • B. they can please top management
  • C. they can gain tax advantages
  • D. they can set lower prices that that result in greater sales and profits

Explanation: A low-cost producer can reduce prices while preserving profit margins, attracting more buyers and increasing sales.

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Correct answer: they can set lower prices that that result in greater sales and profits

2750. All of the following are criticisms leveled against marketing by critics EXCEPT ?

  • A. harming consumers through high prices
  • B. harming consumers through deceptive practices
  • C. harming consumers through high-pressure selling
  • D. harming consumers through too many product choices

Explanation: High prices, deceptive practices, and high-pressure selling are standard criticisms of marketing because they may exploit or mislead…

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Correct answer: harming consumers through too many product choices

2751. A price reduction to buyers who buy in large volumes is called a(n) ?

  • A. quantity discount
  • B. cash discount
  • C. seasonal discount
  • D. trade discount

Explanation: A quantity discount reduces the per-unit price when a buyer purchases a large volume.

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Correct answer: quantity discount

2752. A company's compensation plan should reflect its overall marketing strategy For example if the overall strategy is to grow rapidly and gain market share the compensation plan should reward ?

  • A. loyalty and perseverance
  • B. spot selling and old product rejuvenation
  • C. high sales performance and encourage capturing new accounts
  • D. high pressure situations and competitive reaction

Explanation: A rapid-growth strategy requires salespeople to increase current sales while opening new accounts and expanding market share.

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Correct answer: high sales performance and encourage capturing new accounts

2753. In a example discussed in your text Johnson & Johnson's recall of their Tylenol product following the discovery that several bottles of Tyloenol had been laced with cyanide is consistent with which business philosophy ?

  • A. The marketing concept
  • B. The product concept
  • C. The selling concept
  • D. The societal marketing concept

Explanation: The Tylenol recall placed consumer safety above immediate sales and profit, reflecting the societal marketing concept.

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Correct answer: The societal marketing concept

2754. All of the following are ways that marketing plays a key role in the company's strategic planning EXCETP ?

  • A. marketing provides a guiding philosophy
  • B. marketing is the only discipline that can provide a formal structure for the planning effort
  • C. marketing provides inputs to strategic planners by helping to identify attractive market opportunities
  • D. within individual business units marketing designs strategies for reaching the unit's objectives

Explanation: Marketing contributes a guiding philosophy, identifies market opportunities, and develops strategies within business units.

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Correct answer: marketing is the only discipline that can provide a formal structure for the planning effort

2755. According to the text the most dramatic of the environments that affect marketing and appears to be now shaping our world is the ___________ environment?

  • A. natural
  • B. demographic
  • C. economic
  • D. technological

Explanation: The technological environment has dramatically transformed products, communication, production, and marketing practices, making it a major…

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Correct answer: technological

2756. A _________ is a need that is sufficiently pressing to direct the person to seek satisfaction?

  • A. motive
  • B. want
  • C. demand
  • D. requirement

Explanation: A motive is a need that has become strong enough to direct a person toward seeking satisfaction.

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Correct answer: motive

2757. The purpose of strategic planning is to find ways in which the company can best ?

  • A. overcome losses
  • B. use its strengths to take advantage of attractive opportunities in the environment
  • C. avoid paying taxes
  • D. avoid the expense of costly research and development while still getting the benefits

Explanation: Strategic planning matches a firm’s internal strengths with attractive opportunities in its external environment.

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Correct answer: use its strengths to take advantage of attractive opportunities in the environment

2758. Even through buying roles in the family change constantly the _________ has traditionally been the main purchasing agent for the family?

  • A. wife
  • B. husband
  • C. teenage children
  • D. grandparent

Explanation: The wife has traditionally been treated in consumer-behaviour studies as the family’s main purchasing agent, although modern household…

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Correct answer: wife

2759. A _______ is a promotion strategy that calls for using the sales force and trade promotion to move the produce through channels ?

  • A. push strategy
  • B. pull strategy
  • C. blocking strategy
  • D. integrated strategy

Explanation: A push strategy uses the company’s sales force and trade promotions to persuade intermediaries to carry and move the product through the…

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Correct answer: push strategy

2760. According to the price/quality strategy matrix when a company overprices its product in relation to its quality it is considered to be using which type of strategy ?

  • A. Good-value strategy
  • B. Premium strategy
  • C. Overcharging strategy
  • D. Snob strategy

Explanation: In the price-quality matrix, overcharging means charging a relatively high price for a product whose quality does not justify it.

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Correct answer: Overcharging strategy
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