Business Economics 230
Prof. John W. Sell

Closed-end questions: Answer the following questions by selecting the one most appropriate response.

1. Marketing is best defined as

A. developing a product and matching it with its market.
B. advertising and selling products.
C. activities aimed at facilitating exchanges.
D. transferring goods to stores to make them more readily available.
E. none of the above.

2. The process of changing collected current information into a newspaper would create _____ utility.

A. time.
B. place.
C. form.
D. ownership.
E. two of the above.

3. A Rolls Royce executive once said, "We have never had to worry about sales or advertising. Our cars are the best in the world." This reflects a:

A. marketing orientation.
B. product orientation.
C. sales orientation.
D. unique analysis of target markets.
E. buyer's market.

4. A survey of import automobile owners included 10 Hundai owners, 10 Honda owners, and 10 Volvo owners. This is an example of a:

A. convenience sample.
B. quota sample.
C. cluster sample.
D. stratified sample.
E. None of the above.

5. The decision of whether to conduct a study through an outside organization on internally us usually based on:

A. cost.
B. efficiency.
C. expertise.
D. sophistication.
E. None of the above.

6. A focus group interview would follow which of the following procedures?

A. Invite eight to fifteen people to one location for an open forum or discussion on his or her area of interest.
B. Invite eight to fifteen people to a single location for a dialogue about a product, firm, or service
C. Invite twelve people, plus or minus three or four, to come at their convenience to discuss a subject in depth.
D. Bring together eight to fifteen people to fill out a detailed survey about the subject of interest.
E. All of the above might be used at one time or another.

7. We have argued in class that marketing has broader applicability than people typically assume. Which one of the following best reflects this idea?

A. The American Heart Association expanding its research facilities.
B. The use of advertising to recruit volunteers for the Canadian armed forces.
C. Raising funds to feed the homeless.
D. A local travel agency joining a national association of travel agents.
E. A college requiring all of its students to become "computer literate."

8. The total group that a researcher would want to study is called the:

A. quota.
B. sample.
C. census.
D. population.
E. poll cluster sample.

Open-end Question: Describe the various methods that market researchers have for collecting primary data and the advantages and disadvantages of each.

Problem: A manufacturing firm with annual sales of $1,000,000 was considering whether or not to hire a quality control engineer at an annual expense of $45,000. The job of the engineer would be to catch manufacturing errors before the products reached consumers. In the past, defective products had caused customers to find other suppliers about once every four years at a cost of lost sales, when it occurred, of $250,000. Draw an event tree to reflect the firm's options. Given these data, should the firm hire the engineer or not?

rev. 2/98