1.Revenue minus costs equals:

Select one:

A.net present value.

B.profit.

C.return on investment.

D.economic value added.

E.shareholder value.

2.A direct reference group is composed of:

Select one:

A.face-to-face membership groups that touch people's lives directly.

B.people the individual does not want to be associated with.

C.role models on television and in the movies.

D.people an individual aspires to be like.

E.only friends, neighbours and relatives.

3.What happens under elastic consumer demand?

Select one:

A.As price increases, revenue goes down.

B.As price decreases, revenue does not change.

C.As price increases, revenue goes up.

D.As price goes up, revenue does not change.

E.As price decreases, revenue goes down.

4.Advertising time or space are most costly in ________________.

Select one:

A.newspaper

B.television

C.social media

D.radio

E.magazines

5._____ is the stage when the bulk of the ideas are rejected for being incompatible or impractical.

Select one:

A.Growth

B.Maturity

C.Commercialisation

D.Screening

E.Idea generation

6.One is always amazed by the vast selection of potato chips that keep entering the marketplace. These products are ________________.

Select one:

A.None of these

B.new-to-the-world products

C.improvements or revisions of existing products

D.new product lines

E.repositioned products

7.In the decline stage of the product life cycle, organisations experience a:

Select one:

A.medium-run drop in profit.

B.short-run drop in sales.

C.long-run drop in sales.

D.medium-run drop in sales.

E.short-run drop in profit.

8.ikea Furniture has decided to minimise costs by asking its distribution department to cut its cost of doing business. Ikea Furniture may:

Select one:

A.communicate more frequently with sales personnel.

B.decrease customer service and satisfaction.

C.minimise stock-outs.

D.increase costs and lower sales and profits.

E.gain new customers as order cycle time increases.

9.Outdoor advertising:

Select one:

A.is not influenced by noise or pollution.

B.represents a high-cost medium.

C.is frequently deployed to sell speciality products.

D.can be deployed to reach a narrow, selective target market.

E.is usually employed to advertise convenience products and select shopping products.

10.Which of the following manufacturers is most likely to use intensive distribution?

Select one:

A.Smith's (Potato) Chips, manufacturer of snack foods

B.Seal Me, a producer of window and door screens

C.Timber 4U, furniture manufacturer

D.Chanel, cosmetics manufacturer

E.Wood Joy, manufacturer of redwood playsets

11.Airfreight is expensive, yet it may be cost-effective because:

Select one:

A.prices can be raised to cover this transportation.

B.the use of faster transport may allow the build-up of inventories in warehouses.

C.frequent-flyer points are earned.

D.it may reduce the need for large shipments to customers.

E.speed tends to reduce theft, damage and spoilage.

12.When a consumer is purchasing an unfamiliar, expensive product or an infrequently bought item, the _____ process is often used.

Select one:

A.purchase uncertainty

B.need satisfaction

C.cognitive elaboration

D.extensive decision-making

E.in-depth problem-solving

13._____ is the amount of time and effort a buyer invests in the search, evaluation and decision processes of consumer behaviour.

Select one:

A.Primary decision attribute

B.Involvement level

C.Category influence

D.Perceived risk

E.Economic importance

14.The four key promotional tools, collectively, are known as the ______________.

Select one:

A.communication model

B.promotional mix

C.big four

D.marketing mix

E.integrated marketing communications

15.An ad sponsored by Maybelline Cosmetics advising all women over the age of 40 to have annual mammograms is an example of _____ advertising.

Select one:

A.political

B.advocacy

C.comparative

D.product

E.reminder

16.A lady has spent $410 on a beautiful dress, shoes, earrings and an evening bag for a New Year's Eve party. When she gets home with her purchases, she experiences a high level of anxiety about whether she has made the right purchase decision. The lady experiences ________________.

Select one:

A.a transient state

B.perceptual distortion

C.cognitive dissonance

D.selective retention

E.self-actualisation

17.Some electrical appliance retailers offer a lower price to customers paying cash. This is known as a:

Select one:

A.cash discount.

B.quantity discount.

C.functional discount.

D.rebate.

E.promotional allowance.

18.A face-to-face communication with one or more prospective buyers for the purpose of making a sale describes ________________.

Select one:

A.personal selling

B.implicit communication

C.mass communication

D.public relations

E.telemarketing

19.Heaven Pizza restaurant has daily sales ranging from 50 to 250 pizzas. Which of the following is the BEST example of the firm's fixed costs?

Select one:

A.Gas for pizza preparation

B.Boxes for pizza delivery

C.Payment on leased pizza ovens

D.Flour

E.Paper napkins

20.Interpersonal communication is:

Select one:

A.customer-to-customer interactions on social media.

B.non-paid information, such as publicity.

C.direct communication between two or more people.

D.long-distance communication between a business and its target market.

E.advertising placed on television, mobile apps or social media.