Question 1

Rudolf Freer Inc., an automobiles manufacturer, decides to create an all-weather golf cart. The decision is stimulated by the increasing popularity of snow-golfing. The R&D team of Rudolf develop a working model of the golf cart and simulate different weather conditions in the lab to see how the golf cart holds up. The golf cart is currently in the stage of _____.

Options :

A : alpha testing

B : beta testing

C : market testing

D : concept testing

E : idea generation

Answer: A

Question 2

One of the advantages that price skimming offers over penetration pricing is that:

Options :

A : competitors cannot enter the market easily.

B : a firm that sets a high price initially can lower its price easily.

C : the cost of production decreases with an increase in production capacity.

D : profits and market share can be built quickly.

E : it allows a company to target the most price-sensitive segments first.

Answer: B

Question 3

Which of the following is an example of impulse buying?

Options :

A : Ryan purchased a suit for his wedding after consulting a tailor.

B : While grocery shopping Sean picked up a pack of bubble-gum from the checkout counter.

C : Jim conducted a thorough Internet search before buying a new car.

D : Lily picked up a burger from a drive in restaurant on the way home.

E : Jordan purchased a mobile phone after being convinced by a sales presentation.

Answer: B

Question 4

Which of the following is true of department stores?

Options :

A : They are retailers that carry a limited variety of goods.

B : They offer little or no assortment of merchandise.

C : They don't offer customer services.

D : They organize their stores into distinct sections for displaying merchandise.

E : They exclude stocking private-label merchandise.

Answer: D

Question 5

Which of the following is a feature of using an Internet marketing channel?

Options :

A : It reduces a company-s ability to personalize products.

B : It limits a firm-s market presence.

C : It removes the need for other channels of distribution.

D : It reduces the need to spend money on marketing.

E : It enables companies to offer individualized offerings.

Answer: E