Study Guide

Field 041: Marketing Education 
Sample Selected-Response Questions

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General Test Directions

Each question in this test is a selected-response question with four answer choices. Read each question and answer choice carefully and choose the  start uppercase ONE end uppercase  best answer.

Try to respond to all questions. Even if you are unsure of an answer, it is better to guess than not to answer a question at all. You will  start uppercase NOT end uppercase  be penalized for guessing.

Sample Selected-Response Questions

Competency 0002 
Understand market research functions, characteristics, and procedures.

1.  start bold Use the market research data below to answer the question that follows. end bold 

Three hundred twenty-six consumers were asked to rate three salsas on a scale of 1 to 10 with 10 representing the best taste. First they were asked to rate the salsas with all brands clearly labeled. On a different occasion, the same group of consumers was asked to rate the same salsas with the labels removed. The results from each test were averaged as shown in the table below.

Taste Preference Scores
for Salsa
Brand Labeled Unlabeled
1 7.9 4.8
2 5.9 4.9
3 3.2 5.3

The data suggest that it would be best for Brand 3 to focus on which of the following in their future advertising?

  1. new uses for their product
  2. increasing market share
  3. their competitive prices
  4. creating positive brand recognition

Correct Response: D. Although consumers actually preferred Brand 3 in a blind test, they chose Brands 1 and 2 over Brand 3 when tasting labeled samples. This indicates that their preferences are dictated by the way they perceive these products rather than the products' attributes. Therefore, it is likely that if Brand 3 can increase consumer recognition of its product and create positive images in the consumers' minds, consumers will start to choose it over other brands.

Competency 0004 
Understand principles of product planning, service planning, and price planning.

2. A razor blade manufacturer has decided to enter the market for pocket calculators. Which of the following will most likely be a result of the company's decision?

  1. a deeper product mix with higher inventory costs
  2. a wider product mix and higher capital investment requirements
  3. a narrower product mix and less competition
  4. a shallower product mix and greater vulnerability to economic changes

Correct Response: B. "Product mix" refers to all the products available from a company; a wide mix occurs when the company produces a number of different product lines. By adding a new product unrelated to its other products, this company is increasing the width of its mix. Higher capital investment is likely to be required since the company at present has no facilities for producing pocket calculators.

Competency 0010 
Understand principles and procedures related to merchandising (including shipping and receiving, inventory control, and purchasing).

3. In retail businesses such as department stores, the primary goal of inventory management is to:

  1. reduce variations in sales due to seasonal and other factors.
  2. ensure the highest possible quality of goods offered for sale.
  3. minimize the stock turnover rate.
  4. ensure the availability of goods to meet consumer demand.

Correct Response: D. In retail businesses, if a customer requests an item that is not available, this may mean a lost sale. Thus, it is of primary importance to make sure that the goods customers want are on the shelves or racks. Good inventory management ensures this availability through keeping adequate stocks in supply while also keeping inventory costs as low as possible.

Competency 0013 
Understand basic principles and applications of microeconomics.

4.  start bold Use the two demand curves below to answer the question that follows. end bold 

The vertical axis of the first graph is labeled Price of Product X, with values marked from 0 to 3 dollars in increments of 1 dollar. The horizontal axis is labeled Quantity of Product X Demanded, with values marked from 0 to 70 in increments of 10. The data curve starts slightly above 3 dollar for a quantity of 1 and curves gently down to slightly below 1 dollar for a quantity of about 62. There is a dashed line along the 2 dollar line from the vertical axis to the curve and from that point down to the horizontal axis at a quantity of 20, and another dashed line along the 1 dollar line to the curve and from that point down to the horizontal axis at a quantity of 55.

The vertical axis of the second graph is labeled Price of Product Y, with values marked from 0 to 3 dollars in increments of 1 dollar. The horizontal axis is labeled Quantity of Product Y Demanded, with values marked from 0 to 70 in increments of 10. The data curve starts at about 3 dollars and 75 cents for a quantity of about 47 and curves steeply down to about 0.25 dollars for a quantity of about 62. There is a dashed line along the 2 dollar line from the vertical axis to the curve and from that point down to the horizontal axis at a quantity of 50, and another dashed line along the 1 dollar line to the curve and from that point down to the horizontal axis at a quantity of 55.

The information presented in the graphs above best supports which of the following conclusions?

  1. The demand for product Y is less responsive to price changes than is the demand for product X.
  2. Product X appeals to consumers from a broader range of income levels than does product Y.
  3. The demand for product X is more responsive to changes in income than is the demand for product Y.
  4. Compared with product X, product Y is more likely to be considered a luxury item by consumers.

Correct Response: A. A demand curve shows the relationship between various possible prices of a product and the quantities that consumers will purchase at each of these prices. An, start italics, elastic, end italics, demand curve, such as that for product X, indicates a large change in demand for the change in price. For product Y, however, the same price change increases demand by a much smaller amount. The same change in price causes less of a change in demand for product Y than for product X, so product Y is considered to be less responsive to price change than product X.

Competency 0016 
Understand basic principles of finance and credit.

5. A consumer who has charged a purchase and agrees to pay the full amount owed in one payment by a specified date is using:

  1. a regular credit plan.
  2. an installment credit plan.
  3. a revolving credit plan.
  4. an equity line of credit.

Correct Response: A. This question requires an understanding of different types of consumer credit. The most common type of regular credit plan is the 30-day account. Under this credit arrangement, customers are billed at the end of a 30-day period and upon receipt of the bill pay in full for any purchases made during the month.

Competency 0017 
Understand principles of human resource management.

6. In preparing forecasts of a large department store's demand for employees, human resource managers need to be most aware of which of the following?

  1.  roman numeral 1 and 3 only 
  2.  roman numeral 1 and 4 only 
  3.  roman numeral 2 and 3 only 
  4.  roman numeral 2 and 4 only 

Correct Response: D. Knowing the level of projected growth of the store is necessary in estimating demand for employees since as the store grows, more employees will be required. Although the amount of growth will have a direct effect on the number of new employees needed, turnover must also be considered. A higher turnover creates a greater need for new employees; a lower turnover means fewer employees will need to be hired.

Competency 0018 
Understand laws affecting marketing activities.

7. A consumer purchases a power drill that is intended for home use and is covered by a full warranty against defects in parts and workmanship for three years from the date of purchase. Less than one year after purchase, the drill's motor burns out. Under which of the following circumstances would the warranty most likely be invalidated and the consumer denied free repairs or replacement?

  1. The drill's motor burned out as a result of the trigger mechanism locking in the "on" position.
  2. The consumer used the drill to work on a major residential project.
  3. The drill's motor wore out gradually over a period of several months.
  4. The consumer replaced an internal component of the drill while attempting to repair another problem three months earlier.

Correct Response: D. A warranty is a contract between a manufacturer and a consumer; as such, both parties are expected to fulfill specific obligations and requirements. In providing a full warranty against defects in parts and workmanship, manufacturers accept full responsibility for repairing or replacing a product if it malfunctions during a specified time period. Manufacturers need not assume this responsibility, however, in situations in which malfunctions occur as a result of misuse, mistreatment, negligence, or unauthorized repair. Since an attempt by a consumer to repair a power drill would be considered an unauthorized repair, this invalidates the warranty.

Competency 0019 
Understand processes and skills for seeking and maintaining employment.

8. An interviewee is most likely to make a positive impression at a job interview by doing which of the following?

  1. agreeing with any opinions expressed by the interviewer
  2. demonstrating knowledge about the firm and the position sought
  3. allowing the interviewer to do most of the talking
  4. avoiding mention of previous jobs and reasons for leaving them

Correct Response: B. To make a positive impression at job interviews, interviewees should seek to learn as much as possible about the firm and the position sought so that they can ask informed questions during the interview. Interviewers are generally impressed by job applicants who have taken the time to conduct such research.

Competency 0022 
Apply mathematical principles and skills to solve problems in marketing contexts.

9. The owner of a sports apparel store pays  22 dollars and 75 cents  for a team sweatshirt that is then sold for a retail price of 32 dollars and 50 cents. What approximate percent of the retail price is the markup on this sweatshirt?

  1. 43 percent
  2. 36 percent
  3. 30 percent
  4. 10 percent

Correct Response: C. Markup is the difference between retail price and purchase price, or in this case 32 dollars and 50 cents minus 22 dollars and 75 cents, or 9 dollars and 75 cents. The markup percentage of the retail price is thus 9.75 divided by 32.50, or 30 percent.

Competency 0024 
Understand the role of student organizations and school partnerships with business and industry in marketing education.

10. Partnerships with business and industry are most likely to benefit marketing educators by:

  1. reducing the amount of class time they must spend on basic aspects of business education.
  2. providing them with a source of ideas regarding instructional content and methods.
  3. helping them maintain an up-to-date curriculum that meets students' future employment needs.
  4. providing them with access to additional texts and other resources for classroom instruction.

Correct Response: C. Marketing is a fast-changing field. It is important for marketing educators to keep up with current developments so that their students can receive the knowledge they will need in their future careers. Keeping close contact with members of business and industry who are involved in new developments in marketing helps ensure that educators will stay up to date.

Acknowledgments

 start bold Item 4 end bold  
From Invitation to Economics 3rd Edition Teacher's Annotated Edition by Lawrence Wolken Copyright 1982, 1985, 1988 Scott Foresman and Company. Used by permission of Pearson Education, Inc. All Rights Reserved.