Marketing Fall Semester Final Exam Review

Front

What are the four P's of marketing?

Back

Product, Price, Place, Promotion

Answer explanation

The four P's of marketing are Product, Price, Place, and Promotion. These elements are essential for developing effective marketing strategies and are widely recognized in the field.

Front

Which of the following best describes market segmentation?

Back

Dividing a market into distinct groups of buyers with different needs or behaviors

Answer explanation

Market segmentation involves dividing a market into distinct groups of buyers who have different needs or behaviors, allowing for targeted marketing strategies. This is accurately described by the first answer choice.

Front

Which of the following is an example of a demographic factor? Lifestyle, Age, Personality, Values

Back

Age

Answer explanation

Age is a demographic factor as it relates to the characteristics of a population. In contrast, lifestyle, personality, and values are more related to individual behavior and preferences.

Front

What is the primary focus of the marketing concept?

Back

Meeting the needs and wants of customers

Answer explanation

The primary focus of the marketing concept is meeting the needs and wants of customers. This approach prioritizes customer satisfaction, which drives business success over merely maximizing production or reducing costs.

Front

Which of the following is a characteristic of a command economic system?
Prices are determined by supply and demand,
The government makes all economic decisions,
Businesses operate independently of government control,
Consumers have complete freedom of choice

Back

The government makes all economic decisions

Answer explanation

In a command economic system, the government makes all economic decisions, controlling production, distribution, and prices, unlike systems where supply and demand dictate prices or businesses operate independently.

Front

What does scarcity refer to in economics?

Back

Limited resources and unlimited wants

Answer explanation

Scarcity in economics refers to the condition where resources are limited while human wants are unlimited. This means that there is not enough of certain resources to satisfy all desires, making the correct choice 'Limited resources and unlimited wants'.

Front

Which of the following is NOT a factor of production? Land, Labor, Money, Capital

Back

Money

Answer explanation

Money is not a factor of production; it is a medium of exchange. The factors of production include land, labor, and capital, which are essential for creating goods and services.

Front

How does inflation affect consumer purchasing power?

Back

Decreases purchasing power

Answer explanation

Inflation decreases consumer purchasing power because as prices rise, the same amount of money buys fewer goods and services, leading to a reduction in what consumers can afford.

Front

Which of the following is an example of a psychographic factor? Income level, Geographic location, Lifestyle, Age

Back

Lifestyle

Answer explanation

Lifestyle is a psychographic factor as it relates to individuals' interests, values, and behaviors, unlike income level, geographic location, and age, which are demographic factors.

Front

What role do credit scores play in the economy?

Back

They assess an individual's creditworthiness for loans.

Answer explanation

Credit scores are crucial as they assess an individual's creditworthiness for loans, helping lenders determine the risk of lending money. This impacts borrowing costs and access to credit, influencing overall economic activity.