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SPORTS AND ENTERTAINMENT MARKETING

Total questions: 125

Worksheet time: 2hrs 5mins

Name
Class
Date
1.

Which is the BEST example of an amateur athlete?

Qu'Ran plays for Major League Soccer, CJ is a Minor League Baseball player, Jonathan is a high school soccer player, and Sherlyn is a teenager who plays pick-up games each Saturday. Who is the BEST example of an amateur athlete?

a)

Qu'Ran

b)

CJ

c)

Layla

d)

Sherlyn

2.

Layla and Emily joined a USA Softball league that consists of amateur athletes. What does this mean?

a)

The competition does not generate profit.

b)

The competitors aren't paid to play.

c)

Their competitions aren't recorded.

d)

The competitors are less skilled than professionals.

3.

Qu'Ran and Aaliyah are discussing how NFL games are recorded and shared. Who is responsible for this?

a)

coaches

b)

marketers

c)

broadcasters

d)

trainers

4.

Jonathan, Layla, and Emily are deciding which sporting event to attend in their community. Which is the BEST example of a grassroots sporting event?

a)

televised professional competition

b)

nontelevised college competition

c)

YMCA local pick-up game

d)

minor league games

5.

Mari and Sherlyn are discussing career options. Which of these entities is MOST likely to employ an entertainment marketer?

a)

courthouse

b)

library

c)

bank

d)

museum

6.

Sherlyn works as a Director of Live Entertainment for a production of Shakespeare’s The Tempest. Which entertainment sector is her work MOST likely to fall under?

a)

video games

b)

sporting competitions

c)

history museum

d)

performance arts

7.

Sherlyn and Aaliyah are planning to sell homemade cookies at their school fair. In the five Ps model of marketing, what does the “Place” element represent?

a)

how consumers get the product

b)

where the event is held

c)

where the consumer lives

d)

where the product is produced

8.

Emily wants to buy a new backpack for school. What is the first step she should take in making her purchasing decision?

a)

deciding to buy something

b)

reflecting

c)

searching for information

d)

recognizing the need

9.

Jamere and Layla are starting a small business selling handmade candles. They want to attract customers and increase their sales. What practice should they focus on?

a)

improving performances and competitors

b)

promoting or selling products

c)

educating and informing consumers

d)

streamlining production chains

10.

Aaliyah is at a grocery store. A restocker recently added cereal to the shelves. Aaliyah takes the cereal to the register, where a cashier takes her money. The owner of the store gets some profit from this sale. Who is the consumer in this scenario?

a)

the restocker

b)

the store owner

c)

the cashier

d)

Aaliyah herself

11.

Jonathan is a marketer at a local electronics store. Why would most businesses want Jonathan to ensure that customers find value in a specific exchange or sale?

a)

to make more money off that sale

b)

to make the world a happier place

c)

to make the world a happier place

d)

to improve future versions of the product

12.

Jamere and Aaliyah are working together to create a marketing plan for their new lemonade stand. What is the primary goal of their marketing plan?

a)

learning more about a type of consumer

b)

improving the sales of a product or service

c)

increasing the profit margin on a particular item

d)

improving the product or service being sold

13.

Mari developed a marketing plan that ultimately led to many Facebook users sharing their positive experiences about a product with their Facebook friends. This would be considered a success in which type of marketing?

a)

niche marketing

b)

guerrilla marketing

c)

street marketing

d)

viral marketing

14.

Justin is a marketer working on the selling function for his company. Which is the BEST example of something Justin might focus on?

a)

the strategies an agent will use to sell it

b)

the needs of the consumer

c)

how much of a product to produce

d)

the overall quality of the product or service

15.

Lebron notices a commercial where Gatorade shows athletes drinking their product during a basketball game. What is this an example of?

a)

Gatorade advertising athletes drinking their product

b)

free bobbleheads being given out in a stadium

c)

the NFL selling season tickets for a certain team

d)

a team selling its own jerseys on a website

16.

Emily and CJ noticed that Frito-Lay aired a commercial the night BEFORE the Super Bowl. Why did the company choose to do this?

a)

they couldn’t afford to air it during the Super Bowl

b)

there are more nonsports fans than sports fans

c)

more football fans were watching TV that night

d)

people bought the product to eat during the game

17.

Emily and Lebron are attending a basketball game at a stadium. Which is the BEST example of marketing within sports that they might notice?

a)

hanging an advertising banner in a stadium

b)

running an ad during the Super Bowl

c)

hiring an athlete to star in a commercial

d)

selling seats for a particular game

18.

During a class discussion, Mari and Layla are comparing traditional marketing with marketing for sports. What is one example of the major differences they might mention?

a)

having customers from across the entire nation

b)

reliance on a broad range of sources of income

c)

needing to maintain a positive relationship with customers

d)

lack of control over what happens during the event

19.

Jamere and Mari are discussing why their local baseball team only plays games during certain months of the year. What does it mean to say sports are seasonal?

a)

income generally varies over time

b)

there’s little control over who wins a game

c)

geography has little impact on customers

d)

marketers must consider long-term goals

20.

During a school football game attended by Jonathan, Justin, and Mari, what is the primary point of cheerleaders and halftime shows?

a)

improving the quality of the playing surface

b)

generating more money through merchandising

c)

diversifying the entertainment on display

d)

providing better nutrition for players

21.

Emily and Jonathan are shopping for gifts. Emily picks a book, while Jonathan chooses an online music subscription. Which statement best distinguishes tangible from intangible products?

a)

Tangible products can be physically touched

b)

Intangible products are always more expensive

c)

Tangible products are services provided online

d)

Intangible products require factory production

22.

Jonathan and Aaliyah are discussing different types of products. Which is an example of a tangible product?

a)

Bank account balance

b)

Scent of a hot dog

c)

Book of poetry

d)

Athletic talent

23.

Mari and Sherlyn are discussing different items in their classroom. Which of the following is an example of an intangible product?

a)

A video camera

b)

A classroom table

c)

A legal argument

d)

A pile of papers

24.

CJ and Mari are discussing what a product mix describes for a company. What does a product mix refer to?

a)

All product lines the company offers

b)

The deepest product line variation

c)

The single best-selling product

d)

The brand’s visual identity only

25.

Qu'Ran and CJ are discussing different types of products offered by companies. Which choice best represents a product line?

a)

Disney’s movies, channels, shows

b)

Sony’s video game consoles

c)

Starbucks’ brick-and-mortar stores

d)

The NBA’s various teams

26.

Jamere and Aaliyah are discussing why some brands are so successful. Brand equity is primarily indicated by which sign?

a)

Products often being discounted

b)

A deep and wide product mix

c)

Consistent, high sales over time

d)

A company having lots of money

27.

Mari and Anthony are working on a marketing project. When evaluating a brand, what is most important for them to consider?

a)

The intangible feelings it generates

b)

The physical object it represents

c)

The size of the business it represents

d)

Attractive visual design elements

28.

Jamere and Sherlyn are discussing what makes certain brands stand out. Which factor is most key to generating strong brands?

a)

Memorable experiences of events

b)

Good value for the cost of something

c)

Positive critical reviews by experts

d)

Well-made products that last years

29.

Justin and Mari are discussing why sports branding is often more volatile compared to apparel brands. What is the main reason for this volatility?

a)

Sports are an experience, not a tangible product

b)

Few people connect emotionally with sports

c)

Competition around sports is unpredictable

d)

Demographic changes heavily affect marketing

30.

Mari and Layla are discussing how a sports brand can stay strong even when their favorite team is losing. What do they think helps keep the brand strong?

a)

Heavy investments in advertising and merchandising

b)

Reinventing the team as an entirely new brand

c)

Heavy discounts in ticket prices for events

d)

Investment in relationship building with fans

31.

Layla and Sherlyn are working on a marketing project. They need to focus their efforts on specific groups of customers who are most likely to buy their product. Target marketing requires understanding which core concept?

a)

Market segments

b)

Broadcaster bidding

c)

Guerilla marketing

d)

Recreational athletes

32.

During a major basketball league, Sherlyn, Aaliyah, and Lebron are unable to play because the players and team owners cannot come to a salary agreement. Which scenario does this best describe?

a)

Too few ticket sales for the competition

b)

Disagreement with the governing sports body

c)

Natural disasters or weather-related phenomena

d)

Inability to come to a salary agreement

33.

During a school basketball game, Justin, Layla, and their teammates decide to go on strike. Who is responsible for preventing the game from occurring in this situation?

a)

Coach

b)

Team owner

c)

Referees

d)

Team’s players

34.

Mari, Qu'Ran, and Anthony are working together to create a new product for their school project. What is the first stage of the product development process that they should start with?

a)

Idea generation

b)

Evaluation of ideas

c)

Product development

d)

Financial analysis

35.

CJ, Layla, and Mari have developed a new eco-friendly water bottle. After going through all the stages of product development, which is the seventh and final stage—and the start of the product life cycle?

a)

Commercialization

b)

Financial analysis

c)

Test market

d)

Product development

36.

Mari, Jonathan, and Lebron, who work for a company, are shown a volleyball video game, give feedback, and help fix bugs. Which stage is this?

a)

Evaluation of ideas

b)

Commercialization

c)

Product development

d)

Test market

37.

Mari and Jonathan are working on developing a new product for their business class project. At what stage in their product development should they conduct a financial analysis?

a)

Only during test marketing

b)

After ideas are developed, before a prototype

c)

After commercialization ends

d)

Before idea generation begins

38.

Sherlyn and Jamere are developing a new product and want to determine if the demand is high enough to make it profitable. At which stage of the product development cycle do they first take a deep look into this?

a)

test market

b)

financial analysis

c)

commercialization

d)

idea evaluation

39.

Aaliyah and Anthony are launching a new product and want to know which stage in the product life cycle is still relatively experimental—a “test” of the market?

a)

decline

b)

maturity

c)

growth

d)

introduction

40.

Jonathan, Mari, and CJ are discussing a new handheld video gaming device that runs computer games natively. Early sales were positive, and now most people are deciding between buying this “handheld PC” gaming device or an older, similar console. Which stage of the product life cycle is this product in?

a)

decline

b)

introduction

c)

growth

d)

maturity

41.

Many video game companies will lower the prices on their older games when a new version is released; Mari and Jamere often wait until these price drops to buy the games. Which of the product life cycle stages are these products usually in when this happens?

a)

maturity

b)

decline

c)

growth

d)

introduction

42.

In 2019, people couldn't stop singing the song “Baby Shark,” and products related to the song experienced high sales. However, after less than a year, the song almost seemed to disappear. “Baby Shark” is an example of what kind of product?

a)

a shallow product mix

b)

a matured product

c)

a fad product

d)

a high-learning product

43.

Layla and Justin are discussing the success rate of new products in their business class. According to most research, how many new products are successful?

a)

between 80–90 percent

b)

between 50–75 percent

c)

between 40–60 percent

d)

between 10–30 percent

44.

Mari and Emily launched a new snack product, but world events or shifts in taste interfered with its success. What does it mean to suggest their product has failed due to bad timing?

a)

Marketers ran out of budget for the product.

b)

World events or shifts in taste interfered.

c)

It was marketed to the wrong target audience.

d)

Customers just couldn’t see its appeal.

45.

Lebron and Mari are discussing what makes customers return to their favorite sports and entertainment events. More than anything else, what do they think keeps customers coming back again and again?

a)

cheap prices

b)

attractive venues

c)

strong branding

d)

a winning team

46.

Jamere and Aaliyah are launching a new product for their school project. Compared to the growth and maturity stages, what level of profits should they expect for their product in the introduction stage of the product life cycle?

a)

a whole lot more

b)

slightly more

c)

significantly less

d)

about the same

47.

Jamere and Aaliyah are launching a new type of disposable pen that is easy to use and requires little explanation for customers. Generally, should they expect that this low-learning product will have a longer-than-average period in the introduction stage of the product life cycle?

a)

Only for seasonal products

b)

Only for luxury goods

c)

False

d)

True

48.

Sherlyn and Justin are working on a marketing project. Effective promotion in marketing relies MOST on which two concepts?

a)

getting attention and persuasion

b)

teaching/education and live events

c)

positive emotions and experiences

d)

distraction and misdirection

49.

Justin and Aaliyah notice that a digital video-game storefront regularly offers heavy discounts on most of the games it sells. What category of promotion is this?

a)

digital marketing

b)

direct marketing

c)

sales promotion

d)

personal selling

50.

CJ and Sherlyn work for a company that creates an ad to be shown on Facebook, targeting potentially interested customers and informing them of an upcoming crowdfunding campaign. What sort of promotion is this categorized as?

a)

public relations

b)

sales promotion

c)

digital marketing

d)

direct marketing

51.

An employee works at a comics convention and hands out brochures to people as they pass by. The brochures discuss an upcoming product line, including how to preorder some of the products. What sort of promotion would this be categorized as?

a)

direct marketing

b)

sales promotion

c)

public relations

d)

digital marketing

52.

A street vendor calls to people passing by and spends a lot of time informing potential customers about the products she sells. What is the category of this type of promotion?

a)

public relations

b)

sales promotion

c)

digital marketing

d)

personal selling

53.

A public relations professional is spreading the word that an upcoming sporting event will be seen by millions of fans. This will provide many advertising opportunities in the stadium and through the athlete’s gear. Which audience is this hype MOST aimed toward?

a)

potential athletes

b)

fans

c)

sponsors

d)

broadcasters

54.

A public relations professional has arranged for several professional sports team recruiters to attend an upcoming competition. They’ve spread word that the scouts will be watching the game. Which audience is this hype MOST aimed toward?

a)

sponsors

b)

broadcasters

c)

fans

d)

potential athletes

55.

What is an example of secondary research?

a)

interviewing customers

b)

collecting surveys

c)

collecting sales data

d)

studying marketing journals

56.

What is the main drawback of public relations-based messaging compared to other elements of the marketing mix?

a)

comparatively high expense

b)

comparatively low reach

c)

comparatively little control

d)

comparatively short-term effect

57.

What is the most likely reason a business would secretly use a third party to get messaging out to the public?

a)

to extend the reach of the messaging

b)

to make the message seem more authentic

c)

to earn a commission from the third party

d)

to narrow the target audience of the message

58.

Generally, audiences are more likely to believe messaging coming from which source?

a)

clear advertisement for the product

b)

the company producing the product

c)

third parties unrelated to the product

d)

the person or team making the product

59.

Which is the best example of internal communications?

a)

a billboard being posted near a freeway

b)

a fan posting a message on social media

c)

a marketer calling a potential customer

d)

a manager sending an email to employees

60.

Why is it important to consider hype when composing internal communications?

a)

to get more practice building hype

b)

to maintain staff morale and enthusiasm

c)

because workers are also customers

d)

to improve a message’s clarity

61.

What is a common way of encouraging bottom-up communication?

a)

asking all staff to read industry-related journals

b)

instituting an employee suggestion box

c)

weekly updates from the owner of the company

d)

requiring all employees to use company emails

62.

What should be the primary goal of internal communications—that is, beyond directly communicating facts?

a)

tracking employee engagement

b)

building positive relationships

c)

emphasizing corporate structures

d)

providing interesting reading material

63.

What is the primary distinguishing characteristic between a press release and a press conference?

a)

the media presence and interactivity

b)

the type of organization holding the conference

c)

the type of content that is covered

d)

how many people receive the message

64.

Why are press conferences becoming less common?

a)

Reporters are not as interested in them.

b)

They are ineffective avenues for information.

c)

Social media is replacing them.

d)

They are believed to spread fake news.

65.

Mai Lin is about to run a press conference to announce a major shift in development for a popular product line. In order to encourage reporters to come to the conference, which strategy would be MOST effective?

a)

invite only a few reporters to make it “exclusive”

b)

provide free food and drinks for reporters

c)

announce a simultaneous press release

d)

guarantee a long question-and-answer period

66.

When is a press kit most likely to be distributed?

a)

accompanying a press conference

b)

after a product launch

c)

as an internal communication

d)

as part of a sales promotion

67.

Who is the primary audience of a press kit?

a)

general social media users

b)

journalists for that sport/industry

c)

internal promotional staff

d)

fans of the celebrity/product

68.

Which is an example of reactive media relations?

a)

releasing a press kit for an upcoming new product line

b)

being asked to respond to allegations of cheating in a competition

c)

speaking to a reporter about being excited for an upcoming game

d)

holding a press conference before a scandal is reported

69.

What is the primary difference between proactive and reactive approaches to media relations?

a)

how much time the marketer had to prepare for the messaging

b)

which party is instigating or steering the conversation

c)

the media channels used to release marketing information

d)

the type of information being discussed in the media

70.

Which of the three Rs of media-relationship management emphasizes the fact that, like a plant, a relationship will dissolve if it’s neglected?

a)

Respectfulness

b)

Repairing

c)

Responsibility

d)

Retaining

71.

What is the most profitable content within modern broadcasting rights deals for sports?

a)

television

b)

radio

c)

satellite broadcast

d)

streaming

72.

The National Football League’s 11-year broadcasting deal is the highest ever. What professional sports league is projected to rank second (once their current deal expires)?

a)

Hockey

b)

Basketball

c)

Soccer

d)

Baseball

73.

What is one way that broadcasting companies are thwarting pirates?

a)

cutting pirated broadcasts halfway through the game

b)

airing old games as if they were being played live

c)

splitting streaming of shows across multiple networks

74.

If a baseball game was taking place on a day that was known to be dark, wet, and cold, what would decrease?

a)

brand awareness

b)

action initiation

c)

the marketing mix

d)

games attractiveness

75.

What is the primary marketing purpose of half-time shows at live games?

a)

advertising promotional sponsors

b)

inspiring customer action

c)

shrinking the marketing mix

d)

increasing games attractiveness

76.

A concert attendee uses the bathroom in the facility and sees a sticker for a local band pasted at eye level on the mirror above the sink. How would this sticker be categorized?

a)

personal selling

b)

street marketing

c)

direct marketing

d)

games attraction

77.

In a movie theater, there are often large posters promoting other films. One poster in particular draws a lot of attention, but the theater sells few tickets for the film it promotes. The sign itself is mostly abstract art. People like the art itself, and find the idea of the movie intriguing, but they have so little information that they are left feeling lukewarm about the movie. Using the AIDA questions model, where is the sign MOST failing?

a)

Action

b)

Desire

c)

Interest

d)

Awareness

78.

What is the final—and ultimate—goal of the AIDA process?

a)

attracting interest in a product

b)

stimulating desire for a product

c)

increasing awareness for a product

d)

prompting action toward a product

79.

Which is an example of digital marketing?

a)

a social media ad for a sandwich

b)

a highway billboard for a smartwatch

c)

a grocery store coupon in a flyer

d)

a radio commercial for a sporting event

80.

What is the primary reason for the decline in direct marketing?

a)

It’s inefficient in our modern era.

b)

It’s unable to elicit strong emotions.

c)

It’s hard to get people’s attention with it.

d)

It only works for a narrow range of products.

81.

A major reunion concert for a band that broke up over a decade ago is being launched. As part of the marketing for the event, the producers arrange a sort of party, inviting sponsors, the media, and the band all together. Which is the BEST marketing term for this event?

a)

event attraction

b)

direct marketing

c)

personal selling

d)

public relations

82.

What is the primary purpose of “VIP” events with sponsors and the media for a major sporting event?

a)

preempting a press briefing

b)

building goodwill among attendees

c)

building customer hype for the game

d)

passing along information

83.

What is the reasoning behind many sporting events, including contests for fans during the halftime or similar breaks?

a)

encouraging shopping at on-site vendors

b)

capitalizing on a love of competition

c)

keeping fans from accessing players

d)

recapturing fans from the restrooms

84.

What skills are necessary to marketers, even if their true passion is about reaching fans?

a)

handcrafts

b)

design

c)

fashion

d)

coding

85.

Which communication element is found in nearly all forms of marketing?

a)

subliminal messaging

b)

pleasant sounds

c)

appealing visuals

d)

compelling writing

86.

What is an example of the consideration of visual merchandising?

a)

sponsored search engine results being shown in bold

b)

kids’ cereal boxes shelved about four feet high

c)

online ads using negative space to emphasize text

d)

social media videos with contrasting, bright images

87.

What is an example of the consideration of display advertising?

a)

candy and magazines in checkout lines at groceries

b)

pictures of food in fast-food restaurant menus

c)

social media ads that look like a friend posted them

d)

attractive lighting in a store window for a clothing store

88.

What is the primary reason that display ads have such relatively low success rates?

a)

unable to elicit desire due to garish colors

b)

inability to initiate action due to being too complicated

c)

inability to elicit curiosity due to lack of space

d)

unable to draw attention due to overexposure

89.

A design team is choosing the color for women’s razors. According to color theory, which color would be MOST appealing to their target customers?

a)

yellow

b)

purple

c)

green

d)

white

90.

Why is the color red used so often in fast-food marketing?

a)

It makes people think of health and their bodies.

b)

It makes people feel hungry.

c)

It speeds up metabolism and digestion.

d)

It makes people think of freshness.

91.

Why have some McDonald’s restaurants in Europe switched to a green background color for their logo?

a)

to elicit hunger in customers

b)

to emphasize healthier menu choices

c)

to emphasize wealth and prosperity

d)

to help customers digest their meal more quickly

92.

What color combination is MOST likely to be used in advertisements for a health spa?

a)

pink and yellow

b)

green and red

c)

blue and grey

d)

red and white

93.

According to research, what color has one effect in the short term but an opposite effect after long-term exposure?

a)

green

b)

yellow

c)

pink

d)

white

94.

Which color is most associated with fun, cheerfulness, and happiness?

a)

pink

b)

yellow

c)

orange

d)

green

95.

What should be MOST considered when designing digital ads, but is less relevant for physical ads?

a)

data—different devices have different data limits

b)

motion—different devices show animation differently

c)

color—different devices show colors differently

d)

size—different devices have different size screens

96.

What is a relatively unique element in promotional activities for sports and entertainment products (over, say, a retail clothing or grocery store)?

a)

creating an emotional attraction to a product

b)

narrowing a gap between expectation and experience

c)

organizing products to be visually appealing

d)

gaining attention from customers in a crowded environment

97.

What is an example of experiential marketing?

a)

free samples of food at a grocery store or supermarket

b)

a pet rescue ad with sad music in the background

c)

“buy one, get one free” sales at supermarkets

d)

journalists previewing a game that’s not yet released

98.

What is one main advantage of social media marketing compared to other marketing or promotional channels?

a)

easier to control messaging

b)

content doesn’t have to be unique

c)

much cheaper to produce

d)

consistent fan engagement

99.

In terms of the AIDA model, pull marketing can assume a customer already has what qualities covered?

a)

awareness and interest

b)

desire and action

c)

awareness and desire

d)

interest and action

100.

What is the most significant change in the sporting goods market in the last few decades?

a)

relative prices have skyrocketed

b)

consumers have far more choices

c)

brick-and-mortar stores are obsolete

d)

regulations on sporting goods have tightened

101.

What is an example of an activity representing the consumer market?

a)

buying groceries at a supermarket

b)

a carpet wholesaler importing carpets

c)

a pharmacy buying medicine to compound

d)

a carpenter buying wooden planks

102.

What is an example of an activity representing the industrial market?

a)

buying lunch at a fast-food franchise

b)

a band buying T-shirts to sell to fans

c)

a parent buying diapers for their child

d)

a student buying a college textbook

103.

Which sector of Sports and Entertainment marketing is most focused on selling goods rather than services?

a)

concert promoters

b)

sports equipment stores

c)

streaming ad sales

d)

sports stadiums

104.

Company A produces cloth. Company B turns cloth into shirts. Company C buys those shirts and sells them to company D, who sells the shirts directly to consumers. Which company is a wholesaler?

a)

Company A, which produces cloth

b)

Company B, which turns cloth into shirts

c)

Company C, which buys and sells shirts to other companies

d)

Company D, which sells directly to consumers

105.

A sporting goods store, “Sports R We,” buys baseball bats to sell to customers. They buy the bats from “Batman Do,” who makes the bats with wood from “Pinocchio’s Nose.” Manuel buys a bat from Sports R We to use in an upcoming game. Who is the retailer in this scenario?

a)

Batman Do

b)

Pinocchio’s Nose

c)

Manuel

d)

Sports R We

106.

A mining company digs gold out of the ground. That gold is used by a computer company to make parts for a calculator. A university buys those calculators, and sells them to students at a discount. Who is the manufacturer in this scenario?

a)

the students

b)

the university

c)

the computer company

d)

the mining company

107.

Which is the BEST example of inventory management?

a)

shopping around for the best deal

b)

buying goods only from wholesalers

c)

computer algorithms that set prices

d)

automatic restocking of sold-out items

108.

Generally, what is the primary advantage of ordering goods in large quantities at once?

a)

less inventory management

b)

quicker orders

c)

better customer relationships

d)

cheaper per-unit price

109.

Retail stores in the United States are mostly part of a capitalist system, with little government intervention in terms of how much they can sell their products for. What is another term for capitalism?

a)

free enterprise

b)

inventory management

c)

wholesales

d)

socialism

110.

In a free enterprise system, what is most responsible for establishing prices for retail products?

a)

production costs

b)

competition

c)

government regulations

d)

wholesaler availability

111.

How do monopolies threaten capitalism (thus incentivizing governments to restrict monopolies even in an otherwise capitalist system)?

a)

by having too much political power

b)

by eliminating competition

c)

by undercutting the government

d)

by mistreating employees

112.

In the basic supply-and-demand model, what is the general relationship between supply and demand?

a)

As supply increases, demand increases.

b)

As demand increases, supply increases.

c)

As demand decreases, supply decreases.

d)

As supply decreases, demand increases.

113.

In the basic supply-and-demand model, which combination of supply and demand leads to the LOWEST prices?

a)

high supply and low demand

b)

high supply and high demand

c)

low supply and high demand

d)

low supply and low demand

114.

Why do retail stores often offer deep discounts on older items?

a)

to increase product supply

b)

to manage their inventory

c)

to reduce product demand

d)

to attract wholesaler interest

115.

What is part of the break-even price for a type of good?

a)

the cost to display it

b)

the age of the good

c)

the proposed product value

d)

how many are expected to sell

116.

Why should salespeople avoid high-pressure tactics to force a sale?

a)

It reduces supply without raising demand.

b)

It doesn't account for break-even prices.

c)

It's detrimental to their reputation.

d)

It rarely results in a sale.

117.

What determines the income of multilevel marketers?

a)

hourly wages

b)

monthly salaries

c)

minimum wage laws

d)

number of sales

118.

What is the primary difference between pyramid schemes and multilevel marketing?

a)

the target market for the sales structures

b)

the legal status of the sales structures

c)

the ethics of the sales structures

d)

the sales strategies involved

119.

What is a major purpose of a break-even analysis?

a)

determining the highest possible price a product could be sold for

b)

determining how many units must be sold to make a profit

c)

determining what the functional tax rate should be on a product

d)

determining how many of a product should be ordered at once

120.

A typical retail store has several items that aren't selling despite a current sale. What course of action is MOST appropriate for them to take?

a)

donating the items to charity

b)

destroying the unsold items

c)

moving the items into storage

d)

raising the prices on the items

121.

What is the primary advantage of checks over cash, from a retailer's perspective?

a)

It's more secure than cash.

b)

No change is needed.

c)

It's easier to process than cash.

d)

The transaction is much faster.

122.

What is the primary difference between a gift certificate and a gift card?

a)

whether they have processing fees

b)

the material they are made of

c)

whether they are used online or in person

d)

the types of stores that offer them

123.

If a customer decided to return a product to a retail store, what is the most likely method by which the return will be refunded?

a)

same form as the original payment

b)

cash

c)

gift card/certificate

d)

check

124.

What is the purpose of a layaway program?

a)

the store holds the good(s) while the customer makes payments

b)

customers gain use of the product while making payments

c)

the customer takes advantage of a promotional discount at a later date

d)

the total order is released in installments as payments are made

125.

What is the logic behind paying employees on commission?

a)

improving morale

b)

encouraging sales

c)

increasing efficiency

d)

reducing theft