All Free Economics MCQs with Answers

• A. meaningful
• B. distinctive
• C. believable
• D. remembered

Explanation: Showing how a product is better than competing brands makes the advertisement distinctive by highlighting its difference.

• A. The percentage spent on food rises
• B. The percentage spent on housing increases
• C. The percentage spent on other categories increase
• D. The percentage spent on savings remains constant

Explanation: Engel’s law states that as income rises, the percentage spent on food falls, leaving a greater share for non-food categories such as…

• A. retailer
• B. wholesaler
• C. distribution channel
• D. logistics

Explanation: A distribution channel is the network of interdependent organizations that moves a product or service from producer to final user.

• A. Intensive distribution
• B. Exclusive distribution
• C. Selective distribution
• D. Open distribution

Explanation: Rolls-Royce uses exclusive distribution because its luxury vehicles are offered through a very limited number of authorised dealers.

• A. master salespersons
• B. sales assistants
• C. technical support persons
• D. telemarketers

Explanation: Telemarketers contact potential customers by telephone, qualify their interest and pass promising leads to the field salesforce.

• A. decline stage
• B. introduction stage
• C. growth stage
• D. maturity stage

Explanation: The introduction stage is when a product is launched, so the firm concentrates on building awareness, encouraging trials and expanding the…

• A. licensed brand
• B. manufacturer's brand private brand
• C. private brand
• D. co-brand

Explanation: A private brand is developed and owned by a reseller, such as a retailer, rather than by the manufacturer.

• A. Intangibility
• B. Inseparability
• C. Variability
• D. Perishability

Explanation: Inseparability means a service is generally produced and consumed simultaneously, so the provider and customer often participate in the…

• A. lower prices
• B. increase promotion both at home and abroad
• C. continuously improve their products at home
• D. join into cartels at home

Explanation: Continuous product improvement helps firms compete internationally through better quality and customer value rather than relying on…

• A. Innovative marketing
• B. Consumer oriented marketing
• C. value marketing
• D. Sense of mission marketing

Explanation: Innovative marketing requires a firm to pursue genuine improvements in its products and marketing methods instead of merely making…

• A. Online infomercials
• B. Online ads
• C. Online broadcasts
• D. Online bullets

Explanation: Online ads are digital advertisements displayed on websites or online services, including banners, pop-ups, tickers, and roadblocks.

• A. Product extensions
• B. Line extensions
• C. Brand extensions
• D. New brands

Explanation: When existing brand names do not suit a new product category, the firm introduces a new brand.

• A. factory outlet
• B. super specialty store
• C. seconds store
• D. warehouse club

Explanation: Sam's Club operates on a membership basis and sells goods in bulk, which are defining features of a warehouse club.

• A. browsers
• B. Webcasters
• C. search engines
• D. software

Explanation: Yahoo, Infoseek, and Baidu are search engines because they help users locate information on the web.

• A. idea
• B. demand
• C. product
• D. service

Explanation: A product is any offering presented to satisfy a want or need, including physical goods, services, ideas, people, places, and experiences.

• A. internal marketing
• B. service-profit chains
• C. interactive marketing
• D. service differentiation

Explanation: The service-profit chain links internal service quality and employee satisfaction with customer value, loyalty, and ultimately profits.

• A. Advertising
• B. Personal selling
• C. Public relations
• D. Sales promotion

Explanation: Advertising is suited to reaching a large, geographically scattered audience at a relatively low cost per exposure.

• A. retrieval systems
• B. marketing research reports
• C. flow diagrams and PERT charts
• D. internal databases

Explanation: Internal databases are computerized collections of customer, sales, inventory and other information generated from sources within the…

• A. gender segmentation
• B. benefit segmentation
• C. occasion segmentation
• D. age and lief-cycle segmentation

Explanation: Occasion segmentation divides consumers according to when or under what occasion they use a product, such as morning, afternoon or…

• A. long term customer sanctification
• B. competitive predatory pricing performance
• C. full customer service
• D. retention rates

Explanation: Modern sales evaluation may include customer satisfaction, service quality and retention rates because these reflect long-term…