ENTREPRENEURSHIP

CHAPTER 5 QUIZ

Name:___________________________ Date:___________

I. Matching Type. Match each statement with the term that best defines it.

A. brand I. marketing concept

B. competition-based pricing J. marketing mix
C. cost-based pricing K. marketing plan
D. demand-based pricing L. marketing strategy
E. discount pricing M. positioning
F. features N. product mix
G. market share O. psychological pricing
H. Marketing P. return on investment

H 1. All of the processes—planning, pricing, promoting, distributing,

and selling—used to determine and satisfy the needs of customers and the
company
I 2. Uses the needs of customers as the primary focus during the planning,
production, distribution, and promotion of a product or service
J 3. A blending of product, price, distribution, and promotion used to reach a target
market
L 4. Identifies how marketing goals will be achieved
P 5. Amount earned as a result of an investment
F 6. Product characteristics that satisfy customer needs
A 7. The name, symbol, or design used to identify your product
G 8. A business’s percentage of total sales generated by all companies in the same
market
M 9. Creating an image of a product in the customer’s mind
N 10. The different products and services a business sells
D 11. Pricing that is determined by how much customers are willing to pay for a
product or service
C 12. Pricing that is determined by using the wholesale cost of an item as the basis
for the price charged
O 13. Pricing that is based on the belief that certain prices have an impact on how
customers perceive a product
E 14. Pricing that offers a reduced price to encourage customers to buy

II. Multiple choice

15. To successfully use the marketing concept, a business must do which of the following?
A. identify what will satisfy the customers’ needs and wants
 B. develop and market products or services that customers consider better than other
choices
C. operate profitably
D. all of the above

16. Which of the following would be a good addition to the product, mix for a health club?
A. diamond rings
B. chocolate-chip cookies
C. fitness apparel
D. photo print service

17. The branding, packaging, and labeling of your product should accomplish, all of the
following except
A. identify your product
B. describe the company’s product mix
C. differentiate your product from others on the market
D. provide information about the produc

18. Which of the following is not a pricing objective?

A. to maximize sales
B. to increase profits
C. to attract customers
D. to decrease expenses

19. A new touch-screen tablet computer that lets you surf the Internet,send and receive e-
mail, watch television, listen to music, and read books has just been released. There
are people who want this device so badly they are willing to pay any price for it. This
telephone should be priced using
A. demand-based pricing
B. cost-based pricing
C. competition-based pricing
D. time-based pricing

20. During late summer, Nordstrom’s Department Store offers fall and winter clothes at a
discounted price for a short period of time. After that time, the price of this clothing
goes up and is not reduced again until the end-of-season clearance. This is an example
of
A. prestige pricing
B. price lining
C. promotional pricing
D. multiple-unit pricing