Marketing Essentials Chapter 5 & 6

Businesses stress quality products, services, & financing when engaged in non-price competition.

• True
• False

U.S. govt. serves as regulator; protecting consumers, workers, investors, & the environment.

• True
• False

Sales and rebates are examples of what strategy?

• Price Competition
• Low Fares
• Competitive Edge
• Roll Backs

Competition forces businesses to produce poor-quality products at low prices.

• True
• False

What is the purpose of a licensing agreement?

• Allows doctors to treat patients
• Protects corporations from fraud
• protects an originator from unauthorized copying of a name
• Businesses can operate in areas previously zoned residential

What occurs when the potential for earning increases?

• Competition increases
• Risk increases
• Taxes decrease
• The marketing expenditure decreases

What is the purpose of most businesses?

• To produce products
• To serve as a board of directors
• To compete
• To provide government services

When the supply of a product exceeds the demand, businesses usually lower its price.

• True
• False

Ethics are guidelines for good behavior.

• True
• False

What is the term for the struggle between companies for customers?

• Profit
• Promotion
• Surplus
• Competition