Name: 
 

Chapter One - Managing the Exchange Process


Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
 

 1. 
The relationship between what is paid and what is received is called:
a.
Value.
c.
Cost.
b.
Price.
 

 2. 
The belief that business success comes from producing the best possible product is called:
a.
Market orientation
c.
Product orientation
b.
Production orientation
 

 3. 
Esteem needs and belonging needs are examples of:
a.
Psychological needs
c.
Physiological needs
b.
Social needs
 

 4. 
Which of the following is NOT one of the 7 Ps?
a.
Price
c.
Preparation
b.
Promotion
 

 5. 
Product is defined as:
a.
A bundle of benefits.
c.
A item of exchange.
b.
A tangible item.
 

 6. 
A restaurant’s décor is an example of:
a.
Customer centrality
c.
Product orientation
b.
Physical evidence
 

 7. 
A line which compares trade-offs in an individual’s preference between two products is called:
a.
An indifference curve.
c.
The Edgeworth Box.
b.
A purchase curve.
 

 8. 
A situation where a few companies control the market is called:
a.
Monopoly.
c.
Oligopoly.
b.
Free trade.
 

 9. 
The economic choice implies that:
a.
Most people need to earn more money.
c.
People do not always make sensible choices.
b.
All companies are in competition with each other.
 

 10. 
The study of human beings in groups is called:
a.
Psycholohgy
c.
Sociology
b.
Anthropology
 

 11. 
Marketing which is concerned with exchanges in individuals is called:
a.
Industrial marketing.
c.
Societal marketing.
b.
Consumer marketing.
 

 12. 
A product which shows very little change in demand according to price is called:
a.
Price inelastic.
c.
Price stable.
b.
Price elastic.
 

 13. 
An understanding of what competitors are offering is called:
a.
Market orientation.
c.
Sales orientation.
b.
Competitor orientation.
 

 14. 
A need is defined as:
a.
A passing desire.
c.
A specific satisfier.
b.
A perceived lack of something.
 

 15. 
A want is defined as:
a.
A passing desire.
c.
A luxury item.
b.
A specific satisfier.
 



 
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