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Marketing: An Introduction, 12e (Armstrong/Kotler)

Chapter 9 Pricing: Understanding and Capturing Customer Value

1) ________ refers to the amount of money charged for a product or service.


A) Payroll
B) Profit
C) Price
D) Cost
E) Salary
Answer: C
Difficulty: Easy
Chapter LO: 1
Course LO: Discuss strategies for setting and adjusting prices

2) ________ is the only element in the marketing mix that produces revenue.
A) Price
B) Place
C) Promotion
D) Product
E) Profit
Answer: A
Difficulty: Easy
Chapter LO: 1
Course LO: Discuss strategies for setting and adjusting prices

3) Which of the following sets the upper limit for a product's pricing?
A) Profits
B) Product costs
C) Consumer perceptions of value
D) Elements of the product mix
E) Competition
Answer: C
Difficulty: Easy
Chapter LO: 1
Course LO: Discuss strategies for setting and adjusting prices

4) Which of the following sets the lower limit for a product's pricing?
A) Product costs
B) Profits
C) Competition
D) Elements of the product mix
E) Consumer perceptions of value
Answer: A
Difficulty: Easy
Chapter LO: 1
Course LO: Discuss strategies for setting and adjusting prices
5) ________ uses buyers' perceptions of what a product is worth as the key to pricing.
A) Customer value-based pricing
B) Target returns pricing
C) Cost-plus pricing
D) Psychological pricing
E) Competition-based pricing
Answer: A
Difficulty: Easy
Chapter LO: 1
Course LO: Discuss strategies for setting and adjusting prices

6) Value-based pricing is the reverse process of ________ pricing.


A) good-value
B) Target costing
C) cost-based
D) Value-added
E) competition-based
Answer: C
Difficulty: Moderate
Chapter LO: 1
Course LO: Discuss strategies for setting and adjusting prices

7) A value-based pricing strategy most likely begins with ________.


A) Assessing customer needs
B) Designing a stylish product
C) Evaluating the product's costs
D) Promoting the product's benefits
E) Setting a price based on perceived value
Answer: A
Difficulty: Moderate
Chapter LO: 1
Course LO: Discuss strategies for setting and adjusting prices

8) ________ pricing involves charging a constant low price with few or no temporary price
discounts.
A) High-low
B) Target return
C) Cost-plus
D) Everyday low
E) Market-skimming
Answer: D
Difficulty: Moderate
Chapter LO: 1
Course LO: Discuss strategies for setting and adjusting prices
9) Providing extra amenities to differentiate and support high-priced products is referred to as
________ pricing.
A) High-low
B) Value-added
C) Target return
D) Everyday low
E) Cost-plus
Answer: B
Difficulty: Moderate
Chapter LO: 1
Course LO: Discuss strategies for setting and adjusting prices

10) ________ pricing involves setting prices based on the expenses involved in producing,
distributing, and selling a product plus a fair rate of return for a company's effort and risk.
A) Competition-based
B) Value-added
C) Cost-based
D) Good-value
E) Demand-based
Answer: C
Difficulty: Moderate
Chapter LO: 1
Course LO: Discuss strategies for setting and adjusting prices

11) Rent, electricity, and executive salaries that do not vary with production level are referred to
as ________ costs.
A) Fixed
B) Variable
C) Break-even
D) Target
E) Promotional
Answer: A
Difficulty: Moderate
Chapter LO: 1
Course LO: Discuss strategies for setting and adjusting prices

12) ________ costs are also known as overhead.


A) Fixed
B) Variable
C) Target
D) Capital
E) Payroll
Answer: A
Difficulty: Easy
Chapter LO: 2
Course LO: Discuss strategies for setting and adjusting prices
13) Costs that change directly with the level of production are referred to as ________ costs.
A) Fixed
B) Variable
C) Target
D) Capital
E) Payroll
Answer: B
Difficulty: Easy
Chapter LO: 1
Course LO: Discuss strategies for setting and adjusting prices

14) ________ costs refer to the sum of the fixed and variable costs for any given level of
production.
A) Target
B) Marginal
C) Value-based
D) Total
E) Break-even
Answer: D
Difficulty: Easy
Chapter LO: 1
Course LO: Discuss strategies for setting and adjusting prices

15) A company designs what it considers to be a good product, calculates the expenses of
making the product, and sets a price that adds a standard markup to the cost of the product. This
approach to pricing is called ________ pricing.
A) Value-added
B) good-value
C) Cost-plus
D) competitor-based
E) Break-even
Answer: C
Difficulty: Moderate
Chapter LO: 1
Course LO: Discuss strategies for setting and adjusting prices

16) ________ pricing is when a firm tries to determine the price at which it will break even or
make the profit it is seeking.
A) Competition-based
B) Target return
C) Cost-plus
D) Good-value
E) Value-added
Answer: B
Difficulty: Easy
Chapter LO: 1
Course LO: Discuss strategies for setting and adjusting prices

17) The Fashion Store, a new startup, sets product prices so that revenues will equal
manufacturing and marketing costs. The pricing strategy used by the company is referred to as
________ pricing.
A) good-value
B) Value-added
C) Cost-plus
D) competition-based
E) Target return
Answer: E
Difficulty: Difficult
Chapter LO: 1
Course LO: Discuss strategies for setting and adjusting prices
AACSB: Analytic thinking

18) Which of the following statements about break-even analysis is most likely true?
A) It determines how customer-perceived value changes with value-added pricing.
B) It is a tool used to calculate fixed costs.
C) It is used to determine the maximum price that can be set on a product.
D) It is a tool marketers use to examine the relationship between supply and demand.
E) It fails to consider customer value and the relationship between price and demand.
Answer: E
Difficulty: Moderate
Chapter LO: 1
Course LO: Discuss strategies for setting and adjusting prices

19) Which of the following is an external factor that affects pricing decisions?
A) The marketing mix
B) Competition
C) Top management
D) Marketing objectives
E) Marketing strategy
Answer: B
Difficulty: Moderate
Chapter LO: 2
Course LO: Discuss strategies for setting and adjusting prices

Marketing: An Introduction, 12e (Armstrong/Kotler)


Chapter 12 Engaging Consumers and Communicating Customer Value: Advertising and
Public Relations

1) ________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or
services by an identified sponsor.
A) Sales promotion
B) Personal selling
C) Advertising
D) Public relations
E) Direct marketing
Answer: C
Difficulty: Easy
Chapter LO: 1
Course LO: Describe the decisions involved in developing effective promotion mix strategies

2) Remington Motors releases a new line of hybrid electric vehicles called Electra. The line
promises superior mileage and excellent horsepower in an environmentally friendly automobile.
Remington decides to use advertising as the promotional tool for the car's launch. Which of the
following would qualify as an advertisement for Electra?
A) a front-page notice of the release of Electra in all leading newspapers with the caption "Green
Speed"
B) a press conference to discuss the various safety issues, actual mileage, and environmental
features of Electra
C) the use of dedicated sales personnel in dealer showrooms to explain the qualities of Electra to
potential customers
D) the involvement of a celebrity at the launch of Electra to endorse the hybrid car
E) a buyers-only lottery where Electra buyers have a chance of winning a prize
Answer: A
Difficulty: Moderate
Chapter LO: 1
Course LO: Describe the decisions involved in developing effective promotion mix strategies
AACSB: Analytic thinking

3) In a marketing communications mix, ________ refers to any short-term incentives to


encourage the purchase of a product or service.
A) advertising
B) sales promotion
C) personal selling
D) crowdsourcing
E) public relations
Answer: B
Difficulty: Easy
Chapter LO: 1
Course LO: Describe the decisions involved in developing effective promotion mix strategies
4) Mercury Electric, a leading manufacturer of kitchen appliances, releases a new line of
blenders called SpinPro. To boost sales, Mercury Electric gives scratch-and-win coupons to all
buyers and provides a three-day trip to Hawaii for the winner. Which element of the promotion
mix has Mercury Electric used in this scenario?
A) public relations
B) crowdsourcing
C) advertising
D) sales promotion
E) personal selling
Answer: D
Difficulty: Moderate
Chapter LO: 1
Course LO: Describe the decisions involved in developing effective promotion mix strategies
AACSB: Analytic thinking

5) In a promotion mix, ________ performs the functions of building a good rapport with entities
outside the company, building up a good corporate image, and handling unfavorable rumors and
events.
A) personal selling
B) sales promotion
C) direct marketing
D) advertising
E) public relations
Answer: E
Difficulty: Easy
Chapter LO: 1
Course LO: Describe the decisions involved in developing effective promotion mix strategies

6) ColaBlue, a soft drink manufacturer, is sued by an environmental group for not meeting
certain safety standards in its waste disposal. ColaBlue remedies the problem by adding higher-
grade filters and purifiers. Which of the following actions by ColaBlue would constitute a
public-relations effort to address the effects of the lawsuit and the consequent damage to its
brand image?
A) having well-trained personnel at retail outlets to explain the different ranges of products the
company provides
B) tying up with local restaurants to promote exclusive sales of ColaBlue soft drinks
C) lowering prices of ColaBlue's products in the short term
D) holding a press conference to explain the remedial steps that ColaBlue has taken
E) making new advertisements for ColaBlue products and sponsoring shows on television
Answer: D
Difficulty: Moderate
Chapter LO: 1
Course LO: Describe the decisions involved in developing effective promotion mix strategies
AACSB: Analytic thinking
7) In a promotion mix, ________ occurs when a firm's sales force makes individual presentations
to consumers for the purpose of promoting sales and building customer relationships.
A) advertising
B) public relations
C) crowdsourcing
D) merchandising
E) personal selling
Answer: E
Difficulty: Easy
Chapter LO: 1
Course LO: Describe the decisions involved in developing effective promotion mix strategies

8) Tilt Entertainment, a gaming design firm, has developed a new game called World Below. In
order to get wider distribution, Tilt participates in the Gaming Entertainment Expo, which is
attended by both sellers and consumers. Tilt sends a team of representatives for game
presentation and negotiation and a team of professional gamers to showcase World Below at the
Expo. The company also sends a team to sell its other games to consumers at the Expo. Which
promotion mix tool has Tilt used in this scenario?
A) crowdsourcing
B) public relations
C) advertising
D) personal selling
E) crowdcasting
Answer: D
Difficulty: Moderate
Chapter LO: 1
Course LO: Describe the decisions involved in developing effective promotion mix strategies
AACSB: Analytic thinking

9) Dazed is a bar which mostly plays trance music and has a dedicated day every week for local
bands to perform. To build strong customer relations, Dazed sends text messages to customers,
telling them about happy hours, bands playing that week, dedicated genre nights, and other
activities. Which of the following promotion mix tools does Dazed employ to reach target
customers in this scenario?
A) public relations
B) personal selling
C) direct marketing
D) crowdcasting
E) retailing
Answer: C
Difficulty: Moderate
Chapter LO: 1
Course LO: Describe the decisions involved in developing effective promotion mix strategies
AACSB: Analytic thinking
10) In a promotion mix, ________ involves personally connecting with carefully targeted
individual consumers to both obtain an immediate response and cultivate lasting customer
relationships.
A) direct marketing
B) advertising
C) public relations
D) predictive analytics
E) indirect procurement
Answer: A
Difficulty: Easy
Chapter LO: 1
Course LO: Describe the decisions involved in developing effective promotion mix strategies

11) Which of the following is true of consumers in the new marketing communications model?
A) They are more reliant on traditional methods of marketing for product information.
B) They are less informed than before about companies and product marketing techniques.
C) They are more reliant on mass-media marketing methods for product information.
D) They are less powerful than before in affecting the way a company markets its products.
E) They are better equipped to find product and brand information on their own.
Answer: E
Difficulty: Moderate
Chapter LO: 2
Course LO: Identify and discuss the factors influencing consumer buying behavior

12) Which of the following is an effect of the advancement of technology on marketing?


A) Fragmented markets have assimilated into a few mass markets.
B) Marketers go through more intermediaries to connect with consumers.
C) Consumers rely less on marketer-supplied information than in the past.
D) Marketers have increasingly moved toward mass-marketing techniques.
E) Marketers tend to supply less information to consumers than in the past.
Answer: C
Difficulty: Moderate
Chapter LO: 2
Course LO: Discuss the fundamental concepts of marketing
AACSB: Information technology

13) Which of the following is an example of narrowcasting using advertisements?


A) running an ad for a new line of cars on cable TV
B) showing ads for diapers to would-be mothers in hospitals
C) handing out promotional leaflets for a new restaurant to passers-by
D) showing video game ads at a college football game
E) uploading movie ads on Web sites like YouTube
Answer: B
Difficulty: Difficult
Chapter LO: 2
Course LO: Describe the decisions involved in developing effective promotion mix strategies
AACSB: Analytic thinking

14) Which technique is used by firms to deliver a unified and consistent image about their
organizations and brands to consumers?
A) logistics information management
B) inventory control segmentation
C) niche market penetration
D) integrated marketing communications
E) global marketing management
Answer: D
Difficulty: Easy
Chapter LO: 2
Course LO: Describe the decisions involved in developing effective promotion mix strategies

15) Which of the following is true of marketing strategies that are being developed in the new
marketing communications model?
A) They are more targeted, social, and engaging.
B) They target much larger customer segments.
C) They rely more on mass-media marketing techniques.
D) They use very little alternative media.
E) They include a greater number of print media ads.
Answer: A
Difficulty: Moderate
Chapter LO: 2
Course LO: Describe the decisions involved in developing effective promotion mix strategies

16) Which of the following is true of advertising in the new marketing communications model?
A) Advertisers are increasingly shifting toward digital media.
B) Advertisers are spending more on broadcast advertising.
C) Advertisers are finding traditional media less expensive.
D) Advertisers are using less targeted media to reach customers.
E) Advertisers have replaced print catalogues with digital versions.
Answer: A
Difficulty: Moderate
Chapter LO: 2
Course LO: Describe the decisions involved in developing effective promotion mix strategies

17) Which of the following is a function of an integrated marketing communications system?


A) designing products using environmentally friendly techniques
B) allowing suppliers or vendors to manage the inventory of products
C) controlling production levels by feedback received from customers
D) delivering a consistent message on the product to each brand contact
E) sharing company forecasting details with shareholders
Answer: D
Difficulty: Moderate
Chapter LO: 2
Course LO: Describe the decisions involved in developing effective promotion mix strategies
18) Which of the following promotion tools would best reach a geographically dispersed mass
audience in a short period of time?
A) direct mailing
B) telephone marketing
C) door-to-door selling
D) television advertising
E) printed-catalog marketing
Answer: D
Difficulty: Easy
Chapter LO: 2
Course LO: Describe the decisions involved in developing effective promotion mix strategies

19) Which of the following is a shortcoming of advertising?


A) It does not allow dramatization of the brand or company.
B) It only provides one-way communication with customers.
C) It is too customized and only attracts small, niche markets.
D) It reaches targeted customers too slowly in most cases.
E) It is the most costly promotion tool for companies.
Answer: B
Difficulty: Moderate
Chapter LO: 2
Course LO: Describe the decisions involved in developing effective promotion mix strategies

20) Which of the following types of promotion tools requires the most interaction with a
customer?
A) digital advertising
B) personal selling
C) sales promotion
D) public relations
E) television advertising
Answer: B
Difficulty: Easy
Chapter LO: 2
Course LO: Describe the decisions involved in developing effective promotion mix strategies

21) Which of the following promotion tools will most likely make a consumer feel the need to
listen and immediately respond to a seller?
A) digital advertising
B) personal selling
C) sales promotion
D) public relations
E) television advertising
Answer: B
Difficulty: Easy
Chapter LO: 2
Course LO: Describe the decisions involved in developing effective promotion mix strategies
22) Which of the following is true of personal selling?
A) It is the most effective promotional tool for geographically dispersed buyers.
B) It allows firms to dramatize product offers through arts and visuals.
C) It is the most expensive promotional tool for companies to utilize.
D) It is an ineffective method for building long-term customer relationships.
E) It presents a firm's message as news rather than as a sales-directed communication.
Answer: C
Difficulty: Moderate
Chapter LO: 2
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force

23) A company that offers an early bird discount to the first fifty purchasers of a new product is
using the promotional tool of ________.
A) direct marketing
B) public relations
C) advertising
D) personal selling
E) sales promotion
Answer: E
Difficulty: Easy
Chapter LO: 2
Course LO: Discuss the selection of appropriate sales promotion tools

24) Which of the following is most likely a difference between advertising and sales promotions?
A) Advertising is a sales-directed form of communication, while sales promotions are endorsed
as company news.
B) Advertising is an invitation to buy the product, while a sales promotion is an incentive to buy
the product immediately.
C) Advertising can be used to dramatize product offers, but sales promotion cannot be used for
this purpose.
D) Advertising can trigger quick sales, while sales promotions cannot.
E) Advertising is not as effective in building long-term brand preferences as sales promotions
are.
Answer: B
Difficulty: Moderate
Chapter LO: 2
Course LO: Describe the decisions involved in developing effective promotion mix strategies
25) A company which uses a press release to explain the resignation of a former CEO is using
________ to maintain its brand image.
A) personal selling
B) sales promotion
C) public relations
D) direct marketing
E) advertising
Answer: C
Marketing: An Introduction, 12e (Armstrong/Kotler)
Chapter 13 Personal Selling and Sales Promotion

1) Which of the following statements is true of salespeople?


A) They do not work with wholesalers and retailers.
B) They are employed mostly in click-only companies.
C) They do not represent the customers to the company.
D) They represent a company to its customers by communicating and selling.
E) They represent a new class of professionals who have emerged as part of the steep rise in
retailing.
Answer: D
Difficulty: Moderate
Chapter LO: 1
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force

2) A company that sells only one product line to one industry with customers in many locations
would typically use a ________.
A) product sales-force structure
B) territorial sales-force structure
C) market sales-force structure
D) customer sales-force structure
E) complex sales-force structure
Answer: B
Difficulty: Easy
Chapter LO: 2
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force

3) Which of the following is an advantage of a territorial sales-force structure?


A) The sale of multiple product lines to more than one industry is facilitated.
B) Each salesperson is assigned to multiple geographical areas.
C) Several types of sales-force structures are combined.
D) Travel expenses are relatively small.
E) The sales force specializes across different product lines.
Answer: D
Difficulty: Moderate
Chapter LO: 2
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force
4) Which of the following is true of a territorial sales-force structure?
A) It clearly defines each salesperson's job and establishes accountability.
B) It benefits firms with many technological products requiring technically-skilled salespeople.
C) It is used by firms that organize their sales forces along customer or industry lines.
D) It requires salespeople to sell a wide variety of products over a broad geographic area.
E) It differentiates the sales force solely on the basis of product expertise.
Answer: A
Difficulty: Moderate
Chapter LO: 2
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force

5) Which of the following examples represents a territorial sales-force structure?


A) Maxine Pharmaceuticals organizes its sales force based on each salesperson's expertise on
specific drugs manufactured by the firm.
B) Cherrie Boutique sells its products through a network of teams, each of which handles a
specific product, but products are sold from only one location.
C) Verra Designers operates from its landmark store in New York, and customers from around
the world visit the store to buy original merchandise at steep prices.
D) Milton's, a specialty liquor brewery, uses half of its sales force to cater to existing customers,
and the rest to identify new customers.
E) Oriental Meals, producers of precooked Chinese meals, markets its products throughout the
country using a network of regional sales offices.
Answer: E
Difficulty: Difficult
Chapter LO: 2
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force
AACSB: Analytic thinking

6) Which of the following statements is true of a product sales-force structure?


A) A product sales-force structure is characterized by specialization along product lines.
B) A product sales-force structure is used when a company has only one product line.
C) A product sales-force structure requires every salesperson to be an expert in all the product
categories of the company.
D) A product sales-force structure organizes the sales force along customer or industry lines.
E) A product sales-force structure uses a single sales force across different product lines.
Answer: A
Difficulty: Moderate
Chapter LO: 2
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force
7) Loretta Inc., a U.S.-based watch manufacturer, sells its products in France, China, Russia, and
India. To manage sales, Loretta appoints a number of sales representatives to each location. Sales
representatives report to area managers, and area managers coordinate sales in their respective
areas before reporting to regional managers. Loretta has most likely adopted a ________ sales-
force structure.
A) customer
B) product
C) complex
D) distributor
E) territorial
Answer: E
Difficulty: Difficult
Chapter LO: 2
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force
AACSB: Analytic thinking

8) Simpson Ltd., located in San Diego, provides a range of household and healthcare goods to
consumers within the region. The firm also runs a number of local hotels and resorts under its
brand name. Simpson employs different sales forces for each major division, so there are sales
teams for household goods, healthcare goods, hotel management, and resort management.
Simpson has most likely adopted a(n) ________ sales-force structure.
A) market
B) product
C) customer
D) territorial
E) complex
Answer: B
Difficulty: Difficult
Chapter LO: 2
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force
AACSB: Analytic thinking
9) Which of the following examples represents a product sales-force structure?
A) Venson's produces frozen dinners at its factory in Ohio, and it sells them across the country
through a network of sales representatives organized into regional and territorial tiers.
B) AmWeb produces an expensive brand of herbal cosmetics called "Green You" that are sold in
select boutiques and beauty parlors by selling teams assigned to serve small groups of key
customers.
C) Verra Designers operates from its landmark store in uptown New York and customers from
all over the world come to this store to buy original merchandise at steep prices.
D) Cartlon Computers sells its range of highly specialized computers through special teams, each
of which has received training in the configuration, uses, and USPs of a single model in the
range.
E) Nutters Inc., producers of cookies and other baked goods, markets its products throughout the
country through a network of area and regional sales officers.
Answer: D
Difficulty: Difficult
Chapter LO: 2
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force
AACSB: Analytic thinking

10) In which of the following structures does a company organize its sales force along client or
industry lines?
A) demographic sales-force structure
B) service sales-force structure
C) market sales-force structure
D) territorial sales-force structure
E) product sales-force structure
Answer: C
Difficulty: Easy
Chapter LO: 2
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force
11) Sandy Bayes works at Hilton Brews as a senior sales executive and manages all the key
national accounts of his company. His job involves ensuring that key customers receive the best
service from Hilton Brews. Sandy is also responsible for acquiring new customers with high
consumption needs on a nation-wide basis. Despite his lack of product specialization in all the
product lines, Sandy is hired for this position because of his excellent interpersonal skills. Hilton
Brews has most likely adopted a ________ sales-force structure.
A) product
B) team-based
C) territorial
D) market
E) complex
Answer: D
Difficulty: Difficult
Chapter LO: 2
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force
AACSB: Analytic thinking

12) If a company assigns individual teams of salespeople to big retail customers, it most likely
has a(n) ________ sales-force structure.
A) undifferentiated
B) product
C) market
D) territorial
E) demographic
Answer: C
Difficulty: Easy
Chapter LO: 2
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force

13) A ________ sales-force structure combines several types of sales force organizations.
A) market
B) simple
C) product
D) territorial
E) complex
Answer: E
Difficulty: Easy
Chapter LO: 2
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force
14) Easy Life manufactures a wide range of kitchen appliances, healthcare products, and
cosmetics. Its salespeople are divided on the basis of their expertise in a product category. Again,
within each category, they are divided into teams addressing large retail customers, convenience
stores, and the general public. Which of the following sales-force structures has most likely been
combined to form this complex sales-force structure?
A) territorial and market
B) product and market
C) product and territorial
D) geographical and product
E) market and customer
Answer: B
Difficulty: Difficult
Chapter LO: 2
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force
AACSB: Analytic thinking

15) Lemony Inc. sells its popular bottled lemonade–the company's only product–in various
geographic locations through tie-ups and agreements with retailers. Each location is represented
by two salespersons, one of whom serves current customers while the other finds new ones.
Which of the following sales-force structures has most likely been combined to form the
complex sales-force structure at Lemony Inc.?
A) market and territorial
B) market and customer
C) product and territorial
D) market and product
E) geographical and product
Answer: A
Difficulty: Difficult
Chapter LO: 2
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force
AACSB: Analytic thinking

16) Which of the following is a characteristic of an inside sales force?


A) It travels to make sales calls on customers in the field.
B) It receives administrative backup from outside sales forces.
C) It cannot sell or service accounts directly.
D) It eliminates the need to have an outside sales force.
E) It conducts business from an office via telephone.
Answer: E
Difficulty: Easy
Chapter LO: 2
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force
17) Which of the following is most likely true about salespeople in a field sales force?
A) They build relationships with customers by traveling to see them.
B) They make most sales from their offices via media interactions.
C) They provide administrative backup for outside salespeople.
D) They rely on telemarketing efforts to gain leads and clients.
E) They are prohibited to sell or service accounts directly.
Answer: A
Difficulty: Moderate
Chapter LO: 2
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force

18) The difference between an inside sales force and an outside sales force is that an outside
sales force ________.
A) acquires more decision-maker contacts each day
B) consists mostly of telemarketers and Internet sellers
C) conducts business from headquarters via telephone
D) spends less money to reach and support customers
E) travels frequently to call on customers in the field
Answer: E
Difficulty: Moderate
Chapter LO: 2
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force

19) Which of the following statements is most likely true of team selling?
A) It is used most often when the group of target customers is small and homogeneous.
B) It consists of experts from a single area of the selling firm such as marketing or finance.
C) It can unearth problems and provide solutions that no individual salesperson could.
D) It is most often implemented when products are simple and distribution costs are low.
E) It simplifies the process of evaluating the individual contributions of sales team members.
Answer: C
Difficulty: Moderate
Chapter LO: 2
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force
20) Which of the following is most likely true of a sales force?
A) The performance difference between an average salesperson and a top salesperson is
generally substantial.
B) The cost of replacing a salesperson is usually low because minimal training is necessary.
C) A sales force with many new people is typically more productive than one whose members
have been around for a long time.
D) Individuals within a sales force generally perform at the same level of efficiency.
E) On-site sales training is more efficient and less costly than e-learning programs.
Answer: A
Difficulty: Moderate
Chapter LO: 2
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force

21) Which term refers to the fixed amount in a salesperson's compensation?


A) bonus
B) commission
C) salary
D) incentive
E) profit-sharing plan
Answer: C
Difficulty: Easy
Chapter LO: 2
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force

22) Which term refers to a tool used by managers to supervise their salespeople?
A) call plan
B) sales quota
C) sales contest
D) bonus plan
E) straight commission
Answer: A
Difficulty: Easy
Chapter LO: 2
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force
23) What is the purpose of a sales manager using a time-and-duty analysis?
A) compensating salespeople
B) prospecting customers
C) recruiting salespeople
D) forming sales teams
E) supervising salespeople
Answer: E
Difficulty: Easy
Chapter LO: 2
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force

24) ________ are the standards stating the amount salespersons should sell and how sales should
be divided among the company's products.
A) Sales promotions
B) Sales quotas
C) Display allowances
D) Time-and-duty analyses
E) Sales reports
Answer: B
Difficulty: Easy
Chapter LO: 2
Course LO: Describe the steps of the personal selling process and discuss the process of
managing a sales force

25) Weekly or monthly work plans used by management to get information about salespeople are
referred to as ________.
A) sales quotas
B) ROI plans
C) call objectives
D) sales reports
E) call plans
Answer: D
Difficulty: Moderate
Marketing: An Introduction, 12e (Armstrong/Kotler)
Chapter 15 The Global Marketplace

1) Which of the following is most likely true of a global firm?


A) A global firm typically operates from one country.
B) A global firm engages in joint partnerships overseas.
C) A global firm sees the world as many different markets.
D) A global firm maximizes the importance of national boundaries.
E) A global firm manufactures and markets goods wherever it can do the best job.
Answer: E
Difficulty: Easy
Chapter LO: 1
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global

2) A tax on an imported product designed to raise revenue or protect domestic firms is referred to
as a(n) ________.
A) exchange
B) excise
C) fine
D) quota
E) tariff
Answer: E
Difficulty: Easy
Chapter LO: 1
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global

3) The purpose of a quota is to ________.


A) protect local employment
B) provide competition to local industry
C) eliminate trade barriers between nations
D) increase the amount of foreign imports
E) increase the amount of foreign exchange
Answer: A
Difficulty: Moderate
Chapter LO: 1
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global
4) Which of the following is an example of a nontariff trade barrier?
A) a sales tax
B) customs duty
C) a host-country regulation
D) excise duty
E) an import quota
Answer: C
Difficulty: Moderate
Chapter LO: 1
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global

5) Restrictive product standards are ________.


A) tariffs
B) excise duties
C) quotas
D) nontariff trade barriers
E) exchange controls
Answer: D
Difficulty: Moderate
Chapter LO: 1
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global

6) Which of the following is true of the World Trade Organization (WTO)?


A) It was replaced by the GATT in 1995.
B) It increases tariffs and other international trade barriers.
C) It lacks the power to impose international trade sanctions.
D) It restricts the maximum number of member nations to 100.
E) It mediates global trade disputes.
Answer: E
Difficulty: Moderate
Chapter LO: 1
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global

7) Which of the following is true of the Uruguay Round of the WTO?


A) It promoted short-term global trade growth.
B) It increased the world's merchandise tariffs by 50 percent.
C) It reduced the influence of the WTO in agriculture.
D) It toughened the international protection of intellectual property.
E) It consisted of discussions that lasted for two years.
Answer: D
Difficulty: Moderate
Chapter LO: 1
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global
8) Which of the following is true of free trade zones?
A) They are groups of nations organized to work toward common goals.
B) They were formed to increase trade barriers between member nations.
C) They were formed to mediate global trade disputes.
D) They require member countries to establish one currency.
E) They tend to improve imports and hinder exports.
Answer: A
Difficulty: Easy
Chapter LO: 1
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global
AACSB: Analytic thinking

9) Which of the following established a free trade zone between the United States, Mexico, and
Canada?
A) Union of South American Nations
B) European Union
C) North American Free Trade Agreement
D) Central American Free Trade Agreement
E) Latin American Free Trade Association
Answer: C
Difficulty: Easy
Chapter LO: 1
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global

10) A subsistence economy is one in which ________.


A) much of the revenue comes from exporting one or more natural resources
B) fast growth in manufacturing results in overall economic growth
C) a majority of the produced outputs is exported
D) manufactured goods form a majority of the exports
E) a vast majority of people engage in simple agriculture
Answer: E
Difficulty: Easy
Chapter LO: 1
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global
11) Which type of economy consumes most of its output and barters the rest for simple goods
and services?
A) industrial economy
B) developed economy
C) subsistence economy
D) emerging economy
E) raw material exporting economy
Answer: C
Difficulty: Moderate
Chapter LO: 1
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global

12) Which of the following is true of raw material exporting economies?


A) These economies are major exporters of agricultural products.
B) These economies are poor markets for large equipment and trucks.
C) These economies are major exporters of manufactured goods, services, and investment funds.
D) These economies are rich in one or more resources but poor in other ways.
E) These economies consume most of their output and barter the rest.
Answer: D
Difficulty: Moderate
Chapter LO: 1
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global
AACSB: Analytic thinking

13) A country in South America has large reserves of copper and tin. Mining forms the pillar of
its economy. A major part of its revenue is generated from exporting these resources. This
country is poor in many other ways. It is a good market for large equipment, tools, supplies, and
trucks. Since there are many foreign residents in this country and a wealthy upper class, it is also
a market for luxury goods. This country most likely has a(n) ________ economy.
A) subsistence
B) raw material exporting
C) emerging
D) developed
E) industrial
Answer: B
Difficulty: Difficult
Chapter LO: 1
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global
AACSB: Analytic thinking
14) An emerging economy is one which ________.
A) imports large amounts of finished textiles and automobiles
B) offers few market opportunities for imported goods
C) consumes all or most of its output
D) needs few imports of raw textile materials and steel
E) has a rapid growth in manufacturing
Answer: E
Difficulty: Moderate
Chapter LO: 1
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global

15) An emerging economy is also known as a(n) ________ economy.


A) industrializing
B) industrial
C) subsistence
D) raw material exporting
E) developed
Answer: A
Difficulty: Easy
Chapter LO: 1
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global

16) Japan is a major exporter of manufactured goods, services, and investment funds. Japan also
exports its goods to other types of economies for raw materials and semifinished goods. The
country's industrial structure is referred to as a(n) ________ economy.
A) agricultural
B) emerging
C) industrial
D) raw material exporting
E) subsistence
Answer: C
Difficulty: Moderate
Chapter LO: 1
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global
AACSB: Analytic thinking
17) Which of the following statements is true of industrial economies?
A) They export their goods to other types of economies for raw materials.
B) They have a declining middle class population.
C) They depend on agriculture as the primary revenue generator.
D) They do not trade goods amongst themselves.
E) They consume most of their output and barter the rest for simple goods and services.
Answer: A
Difficulty: Moderate
Chapter LO: 1
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global

18) Which type of economy consists mostly of households with very low family incomes?
A) post-industrial
B) developed
C) emerging
D) industrial
E) subsistence
Answer: E
Difficulty: Easy
Chapter LO: 1
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global

19) The simplest way to enter a foreign market is through ________.


A) joint ownership
B) exporting
C) direct investment
D) licensing
E) contract manufacturing
Answer: B
Difficulty: Easy
Chapter LO: 2
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global
20) Which of the following is true of exporting?
A) It is the most complex way to enter a foreign market.
B) It involves the association of companies with host country partners.
C) It typically requires products to be extensively modified for the foreign market.
D) It involves the least change in a company's product lines.
E) It involves a huge investment if done through independent international distributors.
Answer: D
Difficulty: Moderate
Chapter LO: 2
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global
AACSB: Analytic thinking

21) Valdo, a cosmetic firm located in the United States, markets its products in Asian and
European countries through independent distributors. In this case, Valdo has entered
international markets through ________.
A) joint ownership
B) joint venturing
C) indirect exporting
D) direct investment
E) franchising
Answer: C
Difficulty: Difficult
Chapter LO: 2
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global
AACSB: Analytic thinking

22) The difference between direct and indirect exporting is that indirect exporting involves
________.
A) higher risks
B) self-handling of exports
C) greater returns
D) more product alterations
E) less investment
Answer: E
Difficulty: Moderate
Chapter LO: 2
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global
AACSB: Analytic thinking
23) ________ is a method of entering a foreign market by associating with foreign companies to
produce or market products or services.
A) Joint venturing
B) Indirect exporting
C) Direct investment
D) Importing
E) Direct exporting
Answer: A
Difficulty: Easy
Chapter LO: 2
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global

24) Which of the following is true about joint venturing?


A) Management contracting is highly risky for the domestic firm.
B) Contract manufacturing gives significant control to the domestic firm.
C) Licensing is a highly complex method for entering global markets.
D) A host country partner is necessary for selling or marketing products.
E) Companies are required to invest in the construction of foreign-based facilities.
Answer: D
Difficulty: Moderate
Chapter LO: 2
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global
AACSB: Analytic thinking

25) Which of the following is a type of joint venture?


A) direct exporting
B) management contracting
C) direct investment
D) retailing
E) wholesaling
Answer: B
Difficulty: Easy
Chapter LO: 2
Course LO: Describe the global marketing environment today and explain the options
companies consider as they go global
Marketing: An Introduction, 12e (Armstrong/Kotler)
Chapter 16 Social Responsibility and Ethics

1) ________ marketing is defined as meeting the present needs of consumers and businesses
while also preserving or enhancing the ability of future generations to meet their needs.
A) Sustainable
B) Customer driving
C) Mass
D) Customer-driven
E) Differential
Answer: A
Difficulty: Easy
Chapter LO: 1
Course LO: Discuss the fundamental concepts of marketing
AACSB: Ethical understanding and reasoning

2) The ________ concept specifically focuses on future company needs, but not on future
customer needs.
A) societal marketing
B) strategic planning
C) sustainable marketing
D) global marketing
E) cause marketing
Answer: B
Difficulty: Easy
Chapter LO: 1
Course LO: Discuss the fundamental concepts of marketing

3) The ________ concept specifically focuses on future customer needs, but not on future
business needs.
A) societal marketing
B) strategic planning
C) sustainable marketing
D) marketing
E) selling
Answer: A
Difficulty: Easy
Chapter LO: 1
Course LO: Discuss the fundamental concepts of marketing
4) The ________ concept recognizes that organizations thrive from day to day by determining
the current needs and wants of target group customers and fulfilling those needs and wants more
effectively and efficiently than the competition.
A) societal marketing
B) strategic planning
C) sustainable marketing
D) marketing
E) cause marketing
Answer: D
Difficulty: Easy
Chapter LO: 1
Course LO: Discuss the fundamental concepts of marketing

5) The ________ concept focuses on meeting a company's short-term sales, growth, and profit
needs by giving customers what they want now.
A) societal marketing
B) strategic planning
C) sustainable marketing
D) marketing
E) cause marketing
Answer: D
Difficulty: Easy
Chapter LO: 1
Course LO: Discuss the fundamental concepts of marketing

6) A common criticism of the marketing system is that intermediaries ________.


A) are too few in number
B) are typically inefficient
C) provide only essential services
D) undervalue their service costs
E) are overly protective of manufacturers' interests
Answer: B
Difficulty: Easy
Chapter LO: 2
Course LO: Identify and analyze the major social criticisms of marketing
AACSB: Ethical understanding and reasoning
7) Critics charge that high advertising and promotion costs unnecessarily increase retail prices.
Marketers most likely respond to this criticism by arguing that advertising ________.
A) provides essential psychological benefits about products
B) adds value by giving consumers product information
C) generates tax breaks for small businesses
D) applies a functional value to the product
E) lowers prices by increasing competition
Answer: B
Difficulty: Moderate
Chapter LO: 2
Course LO: Identify and analyze the major social criticisms of marketing
AACSB: Ethical understanding and reasoning

8) A pen that costs five cents to make may cost a consumer $2 to buy. According to critics, this
is an example of ________.
A) deceptive advertising
B) redlining
C) excessive markup
D) high-pressure selling
E) shoddy manufacturing
Answer: C
Difficulty: Moderate
Chapter LO: 2
Course LO: Identify and analyze the major social criticisms of marketing
AACSB: Ethical understanding and reasoning

9) Deceptive promotion overstates a product's features or ________.


A) retail price
B) performance
C) wholesale cost
D) packaging
E) brand name
Answer: B
Difficulty: Moderate
Chapter LO: 2
Course LO: Identify and analyze the major social criticisms of marketing
AACSB: Ethical understanding and reasoning
10) A major step in regulating unfair or deceptive acts or practices was the enactment of the
________ in 1938.
A) Robinson-Patman Act
B) Wheeler-Lea Act
C) Consumer Product Safety Act
D) Taft-Hartley Act
E) Sherman Act
Answer: B
Difficulty: Easy
Chapter LO: 2
Course LO: Identify and analyze the major social criticisms of marketing
AACSB: Ethical understanding and reasoning

11) In advertising, puffery refers to ________.


A) broadcasting a straightforward promotional message
B) including innocent exaggeration for effect
C) creating emotional appeals for a brand
D) creating subliminal appeals for a brand
E) providing value-added promotions
Answer: B
Difficulty: Moderate
Chapter LO: 2
Course LO: Identify and analyze the major social criticisms of marketing

12) ________ refers to persuading people to buy goods they had no thought of buying.
A) Sustainable marketing
B) High-pressure selling
C) Customer-driven marketing
D) Redlining
E) Reverse redlining
Answer: B
Difficulty: Easy
Chapter LO: 2
Course LO: Identify and analyze the major social criticisms of marketing

13) High-pressure selling will most likely work in situations that involve ________.
A) valued customers
B) repeat customers
C) service-based sales
D) one-time sales
E) complex products
Answer: D
Difficulty: Moderate
Chapter LO: 2
Course LO: Identify and analyze the major social criticisms of marketing
14) A company should avoid high-pressure selling if it wants to ________.
A) achieve short-term gains
B) move a previous year's product models
C) comply with local and federal laws
D) build long-term relationships with customers
E) maintain an accurate customer database
Answer: D
Difficulty: Difficult
Chapter LO: 2
Course LO: Identify and analyze the major social criticisms of marketing

15) A class-action lawsuit was brought against a national burger chain, charging that its food
contributed to the nationwide obesity epidemic. The suit was eventually dismissed, but critics
continue to point out the health dangers of many fast food menu items. From the description, it
can be concluded that these critics are concerned that the fast food industry is ________.
A) using high-pressure sales tactics
B) creating deceptive promotions
C) engaging in deceptive pricing
D) utilizing misleading packaging
E) selling harmful products
Answer: E
Difficulty: Difficult
Chapter LO: 2
Course LO: Identify and analyze the major social criticisms of marketing
AACSB: Analytic thinking

16) Some companies intentionally manufacture their products with materials or components that
will break, wear, rust, or rot sooner than they should. This practice is called ________.
A) perceived obsolescence
B) redlining
C) planned obsolescence
D) puffery
E) reverse redlining
Answer: C
Difficulty: Moderate
Chapter LO: 2
Course LO: Identify and analyze the major social criticisms of marketing
AACSB: Ethical understanding and reasoning
17) Trendy Teens manufactures fashionable clothing and accessories for the tween and teen
female markets. New merchandise with a very different look is rolled out each season and
heavily promoted as the "must-have" style in a variety of media. For which of the following
could Trendy Teens be easily criticized in this scenario?
A) deceptive promotion
B) redlining
C) high-pressure selling
D) planned obsolescence
E) perceived obsolescence
Answer: E
Difficulty: Difficult
Chapter LO: 2
Course LO: Identify and analyze the major social criticisms of marketing
AACSB: Analytic thinking

18) Critics claim that companies in the ________ industry are more likely to introduce planned
streams of new products that make older models obsolete.
A) automotive
B) housing
C) food and beverage
D) consumer electronics
E) music
Answer: D
Difficulty: Easy
Chapter LO: 2
Course LO: Identify and analyze the major social criticisms of marketing

19) When major chain retailers avoid placing stores in disadvantaged neighborhoods, they are
accused of the discriminatory practice of ________.
A) perceived obsolescence
B) reverse redlining
C) redlining
D) puffery
E) planned obsolescence
Answer: C
Difficulty: Moderate
Chapter LO: 2
Course LO: Identify and analyze the major social criticisms of marketing
AACSB: Ethical understanding and reasoning
20) Several companies, some of them operating through the Internet, offer paycheck advances.
Consumers are encouraged to take out a loan against a paycheck they expect to receive in the
near future. These short-term loans with high-interest rates, and high penalties for late payments,
are often marketed to consumers who cannot afford having traditional bank accounts. For which
of the following practices can these companies be most easily criticized?
A) frequently selling shoddy products
B) poorly serving disadvantaged consumers
C) selling through high-pressure methods
D) placing high costs on advertising and promotion
E) using predatory pricing tactics
Answer: B
Difficulty: Difficult
Chapter LO: 2
Course LO: Identify and analyze the major social criticisms of marketing
AACSB: Ethical understanding and reasoning

21) Critics who assert that the marketing system promotes too much interest in material
possessions are most likely concerned that the result of successful marketing will be ________.
A) high-pressure selling tactics
B) unsustainable overconsumption
C) perceived obsolescence
D) planned obsolescence
E) deceptive pricing
Answer: B
Difficulty: Moderate
Chapter LO: 2
Course LO: Identify and analyze the major social criticisms of marketing
AACSB: Ethical understanding and reasoning

22) Which of the following most likely suggests that marketers lack the power to create
consumer needs and control market demand?
A) consumer acceptance of changing clothing styles
B) affordable products in disadvantage communities
C) use of social media in product comparisons
D) consumer interest in modern technology
E) high failure rate of new products
Answer: E
Difficulty: Difficult
Chapter LO: 2
Course LO: Identify and analyze the major social criticisms of marketing
AACSB: Analytic thinking
23) The Great Recession has most likely resulted in a(n)________.
A) demand for private goods
B) increase in cultural pollution
C) decline in conspicuous spending
D) increase in modern materialism
E) desire for extravagant products
Answer: C
Difficulty: Moderate
Chapter LO: 2
Course LO: Identify and analyze the major social criticisms of marketing

24) Carboi is a company that offers consumers the opportunity to buy carbon offsets, which are
contributions to projects that combat global warming by reducing carbon emissions. Carboi
offers contribution packages for driving, flying, and home energy use. Through Carboi,
consumers can pay some of the ________ costs of their private goods and services.
A) promotional
B) safety
C) recovery
D) distribution
E) social
Answer: E
Difficulty: Difficult
Chapter LO: 2
Course LO: Identify and analyze the major social criticisms of marketing
AACSB: Analytic thinking

25) In response to charges of ________, marketers point out that advertising makes much of
television and radio free to users and also keeps down the cost of magazines and newspapers.
A) minimalistic social costs
B) the creation of false wants
C) excessive materialism
D) high promotion costs
E) cultural pollution
Answer: E
Difficulty: Moderate
Chapter LO: 2
20) Radox, a luxury watch brand, identifies a market segment that is willing to pay premium
prices for its watches, and Radox managers select an ideal selling price. Managers then
determine the costs to create watches that meet the ideal selling price. The company's pricing
approach is referred to as ________.
A) mass production
B) cost-plus pricing
C) target costing
D) value-added pricing
E) target return pricing
Answer: C
Difficulty: Difficult
Chapter LO: 2
Course LO: Discuss strategies for setting and adjusting prices
AACSB: Analytic thinking

21) In ________, the market consists of many buyers and sellers trading in a uniform
commodity, such as wheat, copper, or financial securities.
A) pure competition
B) monopolistic competition
C) oligopolistic competition
D) a pure monopoly
E) a pure monopsony
Answer: A
Difficulty: Moderate
Chapter LO: 2
Course LO: Discuss strategies for setting and adjusting prices

22) There are more than 20 stores on a street in Sao Paulo that specialize in selling the same
quality and brand of wheat products. An individual seller cannot charge more than the going
market price without the risk of losing business to the other stores. What type of market does this
example represent?
A) pure competition
B) monopolistic competition
C) oligopolistic competition
D) a pure monopoly
E) a black market
Answer: A
Difficulty: Difficult
Chapter LO: 2
Course LO: Discuss strategies for setting and adjusting prices
AACSB: Analytic thinking
23) Under ________, the market consists of many buyers and sellers trading over a range of
prices rather than a single market price.
A) pure competition
B) monopolistic competition
C) oligopolistic competition
D) a pure monopoly
E) a pure monopsony
Answer: B
Difficulty: Moderate
Chapter LO: 2
Course LO: Discuss strategies for setting and adjusting prices

24) Under ________, the market consists of a few large sellers who are highly sensitive to each
other's pricing and marketing strategies.
A) pure competition
B) monopolistic competition
C) oligopolistic competition
D) a pure monopoly
E) pure monopsony
Answer: C
Difficulty: Moderate
Chapter LO: 2
Course LO: Discuss strategies for setting and adjusting prices

25) The relationship between the price charged for a product and the resulting demand level can
be shown in a ________.
A) demand curve
B) supply curve
C) elastic demand slope
D) break-even chart
E) inelastic demand slope
Answer: A
Difficulty: Easy