Toughest Question On Marketing! Trivia Quiz

Indicates positive and negative trends. Price stability means that price levels remain fairly constant.
When prices are stable, they do not drastically fluctuate up or down. Price stability is one way to measure
the condition of a country's economy. If prices are stable (a positive trend), the economy is also stable.
Large upswings or downswings in prices (negative trend) indicate that the economy is not stable. When
the trend is negative, governments take steps to correct the problem. The concept of price stability does
not reflect the rise in wages and benefits, does not match the effects with the causes, and does not
compare revenues with expenses.

Word-of-mouth communication. This is promotion and publicity for a business provided by customers
who tell others of their satisfaction with the business. Therefore, customers recommending the business
to their friends is an example of word-of-mouth communication. In many cases, these recommendations
lead to additional sales because people tend to believe their friends and take their advice. A testimonial is
a statement by an identified user of a product proclaiming the benefits received from the use of the
product. Verbal assertiveness is a confident attitude that involves the use of words. Recommending a
business to friends is not an example of one-on-one selling.

Code for evaluation. Businesses assign codes to survey responses in an effort to use the information in a
numerical mode. Open-ended questions are designed so that respondents react to questions in a
manner that requires more than "yes" or "no" as an answer. Because possible responses are not
controlled or limited, coding is often more difficult. If businesses are not able to assign codes to the
responses, the survey results may be extremely difficult to evaluate. The results of surveys that contain
open-ended questions are not difficult to store for future use, to enter into a database, or to distribute to
management.

Benefits. Benefits are the advantages that the product provides. Effective salespeople know that
customers do not buy the product itself; rather, they are buying what the product can do for them. For
example, customers do not buy weight-lifting equipment—they buy the ability to workout in the privacy of
their own homes. Therefore, the salesperson must translate the features (characteristics) of the product
into benefits. A customer does not purchase a product because of a person's attitude.

Coordinate a regional advertising campaign. Channel members are all of the businesses and individuals
that assist in moving goods and services from the producer to the consumer. In many situations,
producers will assist other channel members (e.g., dealers, distributors, retailers) in sales promotions.
One way to assist channel members planning a sales promotion in a certain area is by providing
resources (e.g., money, product samples) to develop an advertising campaign. The goal of the
advertising campaign is to communicate information about the sales promotion to consumers in order to
stimulate interest and sales. The producer may provide assistance by developing new products and
identifying market trends, but these activities do not relate to a specific sales promotion. An accounting
system refers to the methods and procedures a business uses in handling its financial information.

Strong leadership. A channel of distribution that has strong leadership is often able to manage or avoid
conflict because the leadership has the power to assign specific responsibilities to each channel member.
Strong leadership has the authority to set goals for the entire channel and demand cooperation, which
reduces the possibility of conflict. When a channel has strong leadership, channel members work for the
good of the channel rather than for their individual goals. A channel of distribution does not need updated
technology or limited competition to manage or avoid conflict within the channel. Equal authority might
create conflict because there is no clear leader who has power and control over the channel.

Internet. The Internet allows businesses in the travel, hospitality, recreation, and insurance industries to
bypass intermediaries (agents and brokers). Consumers can easily go directly to the service business to
make the purchase. This enables the businesses to reach more customers and sell at any time of the day
or night. Fax machines are widely used as a means of sending information quickly rather than as a
selling tool. Key card entry systems are used mainly in the hospitality industry. Interactive television is not
as widely used by consumers as the Internet.

Already exist. Secondary research is cost-effective for marketers because the data already exist. The
organization does not need to pay the costs of undertaking original research. Secondary data are not
necessarily cheap to purchase, nor are they specific to the research project at hand. Secondary data may
be incomplete; however, this is not a reason that secondary research is cost-effective.

Make little financial sense. Managers should avoid marketing-research projects that make little financial
sense—in other words, the costs of conducting the research don't outweigh the potential benefits. Even if
a marketing-research project gives unfavorable results, managers can still use the information to make
the best decisions and strategies for the company. It shouldn't make a difference if a marketing-research
study takes a long time to complete or involves new products—it can still be useful.

Reading annual reports. Businesses often monitor their competitors' activities in order to make marketing
decisions that will help them to stay competitive. Businesses can obtain valuable information by reading
their competitors' annual reports that often list major customers and describe successful promotional
activities. Annual reports also include information about profitability, sales volume, new product
development, and expansion. Businesses can use this information to develop similar products or to
expand their sales area. Economic factors involve the state of the local economy. Regional data include
geographic and demographic information about the area. Buying motives are the reasons or benefits that
cause people to make purchases to satisfy wants and needs.

Who will be responsible for record keeping. The phases of record keeping include getting started,
implementing the process, and monitoring/adjusting the process. At the "how to keep them" point (in the
"getting started" phase of record keeping), the business must set policies and practices, deciding whether
or not the records should be kept digitally and who should be responsible for creating, maintaining, and
destroying the records. Where competitors keep their records is not an issue in a firm's own record
keeping. Employees may or may not dislike record keeping. No client should be excluded from the
records.

False, employees can be trained in accident prevention. While it is true that machines can't be prevented
from malfunctioning and employees are always going to make mistakes, workers can be trained to use
safe work habits, to report hazards and unsafe conditions, and to be ready to handle accidents that do
occur.

Retailer. A retailer is a business that buys goods and sells them to the final consumer. Wholesalers are
intermediaries who buy goods from producers or agents and resell them to other businesses. Agents are
intermediaries who assist in the sale of goods but do not take title to them. Producers are growers,
providers, or manufacturers of goods and services.

Dividends. Individuals and businesses acquire income in many ways. Dividends are earnings that are
paid to investors or stockholders for their investments. When Pedro purchased shares of Tabor stock, he
became an owner of the company. As an owner of the company, Pedro has the opportunity to earn a
percentage of the company's profits, which are paid to him in the form of dividends. Wages are the
income that workers earn for the work that they perform. Interest is the reward or cost of lending or
borrowing money, usually figured as a percentage of the amount borrowed. An inheritance is the assets
(e.g., property, goods, money) that a person leaves to others upon his/her death.

Written. Written communication involves putting ideas, thoughts, and agreements into words and writing
those words in a document or letter. Written communication is often considered to be formal because a
copy of the information exists which indicates that all parties involved received the same message.
Businesses often use formal written communication in order to document important transactions and
preserve the information for future reference. Verbal communication involves speaking. Lateral
communication is between people on the same level. Upward communication is from employees to
supervisors or managers.

Level of agreement. The Likert scale measures the respondents' level of agreement with a statement.
For example, a questionnaire might contain the statement, “The PTR Company consistently provides
excellent customer service.” The response options might include phrases such as strongly agree, agree,
no opinion, disagree, and strongly disagree. The respondents select the option that corresponds to their
feelings. Marketing researchers do not use the Likert scale to measure the respondents' knowledge,
specific beliefs, or levels of intuitiveness.

To communicate with customers. An electronic data interchange (EDI) is a computerized information
system. This technology allows a business's computers to communicate with customers' computers and
share information. An advantage of using EDI is that the computers keep track of sales and inventory and
automatically place orders when inventory reaches a certain level. The system facilitates the sales
process, which usually results in more satisfied customers and more sales for the business. Businesses
do not use electronic data interchange systems to identify potential accounts, fax sales data to
employees, or access competitors' web sites.

To have realistic expectations for workers. Even though managers don't do the actual jobs, it is important
for managers to understand the jobs of the workers they supervise. This helps managers to know how
workers should do the work, to be realistic in the amount of work they expect workers to complete, or
even to fill in when workers are absent or there is an emergency situation of some kind. Managers do not
need to know how to do the work to establish a chain of command. Coordinating employees' efforts and
creating a team spirit are managerial responsibilities that improve the output of workers but are not
related to managers' knowledge of the jobs to be done.

Providing notice. Due process is the concept that the government must respect all of the legal rights that
are owed to individuals and businesses according to the law of the land. Legal procedure refers to the
methods and processes that are used to protect an individual's or business's legal rights. In many
societies, these rights include the right to be notified of accusation or lawsuit (providing notice), the right
to obtain legal counsel, the right to be heard in court, the right to confront the accuser, etc. Obtaining
witnesses is a pretrial activity. Awarding damages is a possible remedy or outcome of civil litigation. Due
process involves presenting evidence, not creating it.

Box or container. Radio frequency identification (RFID) involves storing an order's product information on
a computer chip and then attaching it to the shipment's box, container, or pallet. When a shipment arrives
at a business, warehouse personnel use computer scanners to receive the items quickly, which
increases efficiency. The computer chip is not attached to the delivery truck's antenna, the customer's
inventory report, or the receiving dock.

Pertains directly to the issue. Internal information is information located inside the company. One of the
strengths of using internal information is that it often pertains directly to the issue. For example, if the
issue is the popularity of a specific product, current sales and inventory data can provide information
about how well that product is selling. Internal information often is not available to outside users.
Although the information might relate to industry problems, that is not one of its strengths. Internal
information may, or may not, be organized by department.

Screening. In the human-resources function, screening involves “weeding out” the applicants that do not
meet minimum requirements for the job or have not satisfactorily completed the application. On-boarding
activities are human-resources tasks that must be performed when a new employee joins the company
(e.g., orientation and paperwork). Prospecting is a sales activity that involves identifying any person or
organization with the potential to buy a product. Negotiating is the process of influencing someone to take
a certain course of action in order to achieve a desired outcome

Trend research. Identifying product opportunities often involves research. One type of research is trend
research to find out the general direction in which people or events are moving. For example, trend
research might indicate that people want smaller cars or larger televisions. As a result of trend research,
businesses are often able to identify product opportunities. Once the opportunity is identified, businesses
usually analyze the idea. If the idea is feasible, businesses may conduct trial runs and production tests.

Socially responsible. Social responsibility is the duty of business to contribute to the well-being of society.
Businesses are being socially responsible if they refuse to take advantage of unfortunate situations, such
as damage caused by natural disasters, by raising the prices of goods and services that people need in
order to rebuild. Businesses that focus on contributing to society usually build goodwill within the
community and develop long-term relationships that are far more profitable than the quick money they
earn by raising prices during a disaster. Therefore, refusing to raise prices is not economically unsound
because the business will profit in the future from its responsible actions. Refusing to raise prices during
a natural disaster is not a political or legal issue.

Reduce operating expenses. Operating expenses, or overhead expenses, are the amounts of money a
business pays out in order to produce and/or sell its goods and services. Since operating expenses
include salaries and wages, as well as equipment, eliminating free services would reduce operating
expenses. The business would save the costs of delivery vans/trucks, the expense of packing for
delivery, and the wages paid to delivery personnel. This would not control inventory shrinkage which is
caused by employee theft and shoplifting. It would be likely to decrease customer satisfaction and to
make the business less competitive if its competitors do offer free delivery.

Increased interdependency. Increased interdependency means workers need to rely on each other. It is a
disadvantage of specialization. All of the other alternatives are advantages of specialization. Production
rates increase because the speed with which workers perform their specific tasks increases. Workers
become highly skilled as job tasks are performed repeatedly, and this results in increased efficiency.
Training of workers is simplified due to the limited nature of the tasks to be performed.

Logotype. The logotype is the name and/or symbol used by a business. Businesses believe that having a
unique logotype creates an image that people will come to recognize and associate with that business.
The logotype clearly identifies the product's brand or advertiser to consumers. An illustration is a
photograph, drawing, painting, or graphic such as a chart, table, or graph. A headline is text set in large
type and usually positioned at the top of an advertisement. A photograph is an illustration.

Technical terms. When appropriate, salespeople will need to use technical terms and to be prepared to
explain those terms in plain English. Some goods and services require a technical explanation, and
salespeople must be able to adequately communicate that information to customers. Salespeople must
be able to explain technical terms in a clear and simple way that customers will understand. Salespeople
should avoid using complex sentences, slang words, or foreign phrases.

Identity. Corporate branding refers to the combined impressions, images, or experiences associated with
a company or parent entity. A corporate brand may include a variety of products, but the name or
corporate brand provides all products with a common identity. For example, PepsiCo is a corporate brand
under which its Pepsi, Quaker Oats, Tropicana, Gatorade, and Frito Lay products are sold. Corporate
brands do not necessarily provide a common platform, ranking, or strategy for products.

Communicate it to all employees. To make sure their budgets are effective, businesses should
communicate them to all employees. Even the best, most accurate budget is ineffective if no one sees it.
Effective budgets are those that have been clearly communicated to all employees, so that each person
in the company is aware of his/her effect on the company's profits. All employees should receive this
information, not just top managers. Businesses usually send annual financial statements rather than
budget information to their stockholders. Specific budget information usually is not posted on company
bulletin boards.

Quality. Quality is the degree of excellence of a good or service—how good it is. Quality is an ethical
issue that might affect the operations function because businesses decide the quality of the products they
provide. For example, a business might decide to use low-quality materials to make products that are of
low quality. Also, the business might decide to cut corners in the production process to save money. The
result is low-quality products. However, it is unethical if the business does not make it clear to customers
that the products are of low quality and may not be durable. Utility is usefulness. Creativity is the ability to
generate unique ideas, approaches, and solutions. Flexibility is the ability to adapt to changes as they
occur.

Toward the end of the interview. By asking potentially sensitive questions toward the end of an interview,
the researcher can avoid having the participant cut off the interview before important information can be
collected. By asking the questions at the beginning, in the middle, or throughout the interview, the
researcher risks prematurely ended interviews.

Assess sales staff performance. By assessing sales staff performance, managers can determine the
success of the employees and the selling policies. Salespeople interact with potential customers and
explain policies. Regulations are determined by federal and state governments along with regulatory
agencies. Salespersons' responses are directed by the established selling policies.

Friends. Letting friends and acquaintances know that you are looking for a job is one of the most effective
methods of locating job leads. These people often will be willing to pass on information about new
openings, resignations, and retirements they learn about. Retirees, nonworkers, and minors usually are
out of the mainstream of the employment scene and would not have information concerning job leads.

Voluntary. A chamber of commerce is an organization that supports businesses and business growth in
the community. It also helps local businesses resolve common problems. Membership is voluntary, not
required or necessary. Member businesses often display their membership plaques because they feel it
benefits them for customers to know they are part of the organization.

Licensing. Licensing allows a brand name to be used by another company for a fee. Brand positioning
attempts to create a certain image or impression of a brand as compared to competitive brands. Brand
extension is the use of successful brands to launch new brands. Brand repositioning reevaluates and
changes the brand in order to change the ways consumers see the brand.

Permanent results. Good visions have permanent results. They are something that other people can
carry on for many years even if the person who had the vision is not around. Examples include the right
to vote, equal rights, and vaccines for diseases. Visions are abstract rather than concrete. Visions should
be simple enough that anyone can understand rather than overly complicated. Some visions are
expensive to turn into reality but are worth the price; however, some visions may not justify the price.

Purchases. Promotion is the communication of information about goods, services, images, and/or ideas
to achieve a desired outcome. Businesses use promotion to inform buyers about goods and services in
order to encourage them to buy. By purchasing the goods or services, buyers give feedback to senders.
Buyers let the senders know that they received the promotional message and respond by making
purchases. A complaint is a customer's expression of a dissatisfaction. A suggestion is a
recommendation. Referrals are individuals or businesses to whom salespeople are recommended.

Pass on positive information. One of the main functions of a business's public-relations activities is to
reach external audiences, those groups that are outside of the company. These groups include the local
community, government officials, customers, suppliers, creditors, etc. The external audience has a
significant impact on the business because customers buy products, government officials enact rules and
regulations, and creditors loan money. If the business does not maintain good relations with the external
audience by providing positive information, it may have difficulty operating or even fail. Public-relations
activities are not intended to sell useful products, measure the community response, or compile customer

Customers. An excellent source of information about what a product can or cannot do is customers who
have actually used the product. The other alternatives provide excellent information about other aspects
of the product such as care, proper usage, construction, price, and size.

To ward off problems. Businesses conduct situational analyses to obtain information about changes or
trends that are beginning to develop in the environment or marketplace. This procedure allows
businesses to identify changes at an early stage and ward off potential problems. It is important for
businesses to understand changes in their external environment in order to adapt and avoid problems.
Without this information, businesses may be unprepared to deal with problems that might cause them to
lose their competitiveness or even fail. A business would not conduct a situational analysis to identify
customers, forecast expenses, or redesign products. However, a business might redesign products after
conducting a situational analysis and finding that they were losing their appeal in the marketplace.

Logotype. The logotype is the name and/or symbol used by a business. Businesses believe that having a
unique logotype creates an image that people will come to recognize and associate with that business.
The logotype clearly identifies the product's brand or advertiser to consumers. An illustration is a
photograph, drawing, painting, or graphic such as a chart, table, or graph. A headline is text set in large
type and usually positioned at the top of an advertisement. A photograph is an illustration.

The profit-and-loss statement. This income statement reports total revenue and expenses for a specific
period of time. A balance sheet identifies a business's assets, liabilities, and capital on a given date. The
difference between total sales and cost of goods sold is the gross profit. The cost of goods sold is the
purchase price of the goods that were sold.

Migration. Migration is a population trend that indicates movement of people throughout the country as
well as into and out of the country. Migration trends are important to businesses because businesses
need to know where their customers are located. For example, many people are leaving colder climates
and migrating to what is considered the Sunbelt. This movement affects businesses because the types of
products they sell and the way they sell them will change. Also, the increased migration of ethnic groups
into the country creates a need for new goods and services that meet the needs of a multicultural
population. Lifestyle, consumption, and behavior are not population trends; however, these factors also
affect how businesses market their goods and services.

Risk. Channels of distribution allow channel members to share risk. Moving products through a channel
requires financing and includes an inherent financial risk. Channel members do not share profits,
equipment, or employees.

How often a person attends the opera. This example is determining the frequency with which a product is
being used. It is the only example of product usage. A person's heritage and age are demographic
characteristics. The activities in which a person participates is an example of psychographic
segmentation.

Forced association. Forcing associations means making a connection between two things where an
obvious connection doesn't already exist. By forcing associations, you make yourself think differently,
which results in more creativity. For example, making associations with the color yellow might result in
developing connections with taxis, school buses, daisies, bumblebees, the sun, etc. Cooperation is
working together toward a common goal. Implementation is carrying out an idea or activity. Manipulation
involves controlling or managing people or circumstances.

To eliminate some ideas. Screening ideas for new products is intended to eliminate obviously bad ideas
and recognize the value of good ideas. It is a quick look at ideas to see if they have value, not a careful
or thorough analysis. New ideas must already be generated before screening can occur. Market research
would be done to determine if consumers will purchase the good or service.

To get a fair share of the market. Gaining market share is often an important pricing goal. Businesses
may lower prices in order to attract new customers and increase their market share. This could create
goodwill in the community, but that is not the purpose of the tactic. Price levels are not used to attract
employees. Competitors' activities would be tracked before prices were set.

Qualitative. The results of exploratory research are often qualitative, or based on thoughts, opinions, or
feelings. They are not necessarily specific. They are usually not quantitative, or measurable. They are
usable for generating hypotheses or familiarizing marketers with the problem at hand.