All Free Economics MCQs with Answers

• A. vertical marketing system
• B. parallel marketing system
• C. diversified marketing system
• D. horizontal marketing system

Explanation: A horizontal marketing system occurs when firms operating at the same channel level combine resources for a common opportunity.

• A. creative selling
• B. high pressure telling
• C. detail selling
• D. hard core selling

Explanation: A cooling-off period protects consumers from high-pressure selling, where urgency or psychological pressure pushes them into an unwanted…

• A. simplicity
• B. structure
• C. organization
• D. flexibility

Explanation: Survey research is valued for its flexibility because researchers can question many people about different attitudes, behaviours, and…

• A. Rapid globalization
• B. The changing world economy
• C. The call for more socially responsible marketing
• D. The micro-chip revolution

Explanation: Technological communication that reduces the importance of physical distance helps firms operate and compete across national borders, a…

• A. Selective sponsorship
• B. Probing
• C. focus group interviewing
• D. the Delphi method

Explanation: A focus group brings a small number of participants together under a trained moderator to discuss a product, service, or organization.

• A. demand
• B. basic staple
• C. product
• D. service

Explanation: A service is an intangible activity or benefit, such as banking, transport, or consulting, and it does not transfer ownership of a…

• A. Product feature
• B. sponsorship
• C. brand
• D. logo

Explanation: A brand is the complete identifying name, term, sign, symbol, design, or combination used by a seller.

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

Explanation: Photocopier manufacturers are organizations buying bulbs for use in producing or operating their business, so this is a business market.

• A. Target market decisions
• B. Produced assortment and services decisions
• C. Pricing decisions
• D. Promotion decisions

Explanation: Choosing between high markups with lower sales volume and low markups with high volume is a pricing decision.

• A. Psychographics
• B. Personality
• C. Demographics
• D. Lifestyle

Explanation: Personality consists of distinctive psychological characteristics that produce relatively consistent responses to the environment.

• A. conventional marketing system
• B. power-based marketing system
• C. horizontal marketing system
• D. vertical marketing system

Explanation: A vertical marketing system unifies producers, wholesalers, and retailers at successive distribution levels.

• A. Affordable method
• B. Percentage of sales method
• C. Competitive parity method
• D. Objective and task method

Explanation: The objective-and-task method first sets communication objectives, identifies the tasks needed, and budgets their costs, making it the…

• A. the sales chart
• B. the dynamic growth curve
• C. the adoption cycle
• D. the adoption cycle
• E. the product life cycle

Explanation: The product life cycle traces a product's sales and profits from introduction through growth, maturity, and decline.

• A. territorial sales force structure
• B. pychographic trait sales force structure
• C. product sales force structure
• D. customer sales force structure

Explanation: Sales responsibilities are commonly divided by territory, product, or customer, but not by psychographic traits.

• A. not manipulating the availability of a product for purpose of explotation
• B. not using coercion in the marketing channel
• C. using gray marketers whenever possible to save the consumer money
• D. not exerting undue influence over the reseller's choice to handle a product

Explanation: Ethical distribution avoids manipulating availability, coercing channel members, and exerting undue influence over resellers.

• A. deciding whether to go international
• B. looking at the global marketing environment
• C. deciding which markets to enter
• D. deciding how to enter markets

Explanation: International marketing planning begins by examining the global marketing environment, including economic, political, legal, cultural, and…

• A. The promotion mix
• B. Integrated international affairs
• C. Integrated marketing communications
• D. Integrated demand characteristics

Explanation: Integrated marketing communications coordinates advertising, sales promotion, public relations, direct marketing and other channels so…

• A. need recognition
• B. brand identification
• C. information search
• D. purchase decision

Explanation: The five stages are need recognition, information search, evaluation of alternatives, purchase decision and post-purchase behavior.

• A. Duobranding
• B. Line extension
• C. Brand extension
• D. Multibranding

Explanation: Brand extension uses an established brand name for a product in a new category, such as a food brand launching household appliances.

• A. the affordable method
• B. the LIFO method
• C. the percentage of sales method
• D. the objective and task method

Explanation: Common promotion-budget methods include the affordable method, percentage-of-sales method and objective-and-task method, along with…