Free CLEP Marketing MCQ Question and Answers — Questions and Answers
Question 1: Which of the subsequent is not a component of the marketing mix?
- price
- planning (Correct answer)
- product
- promotion
Correct answer: planning
The marketing mix, often referred to as the '4 Ps,' consists of Product, Price, Place (distribution), and Promotion. These are the controllable tactical marketing tools that a company blends to produce the response it wants in the target market. Planning is a broader strategic activity that encompasses the development of the marketing mix, but it is not one of the four components itself.
Question 2: In order to ensure that a research study measures what it is intended to, researchers must carefully consider its design. This is also known as:
- reliability
- observation
- validity (Correct answer)
- sampling
Correct answer: validity
Validity in research refers to the extent to which a study accurately measures what it intends to measure. If a research design is valid, its findings genuinely represent the phenomenon being studied and are not influenced by extraneous factors. This ensures that the conclusions drawn from the research are meaningful and accurate.
Question 3: Which option is the worst one to use when shipping a product like stones?
- rail
- air (Correct answer)
- water
- truck
Correct answer: air
Air transportation is the fastest but also the most expensive mode of shipping. For heavy, low-value, and non-perishable products like stones, the high cost of air freight would make it economically unfeasible and inefficient. Rail, water, and truck are generally more cost-effective options for such bulk commodities.
Question 4: All of the following—with the exception of______ causes failure of new products frequently:
- existence of protocol (Correct answer)
- too small of a target market
- poor timing
- bad execution of the marketing mix
Correct answer: existence of protocol
New products frequently fail due to factors like a target market that is too small, poor timing of the launch, or bad execution of the marketing mix. The 'existence of protocol' actually refers to a well-defined statement outlining a new product's target market, needs, and what the product will be and do. Having a clear protocol increases the chances of success, making its *existence* not a cause of failure.
Question 5: Peter is trying to calculate the markdown for a desk he is selling for $100.00 with a $31.00 markdown. What proportion would he estimate?
- 15%
- 17%
- 3.7%
- 31% (Correct answer)
Correct answer: 31%
To calculate the markdown percentage, you divide the markdown amount by the original selling price. In this case, the markdown is $31.00 and the selling price is $100.00. Therefore, $31.00 divided by $100.00 equals 0.31, which translates to a 31% markdown.
Question 6: What does a product that sells for $400.00 and has a 40% markdown cost at retail?
- $180.00
- $200.00
- $270.00
- $240.00 (Correct answer)
Correct answer: $240.00
If a product sells for $400.00 and has a 40% markdown, the markdown amount is 40% of $400.00, which is $160.00 (0.40 * $400). The cost at retail *after* the markdown would be the original selling price minus the markdown amount. So, $400.00 - $160.00 equals $240.00.
Question 7: The purchasing department at Wal-Mart just purchased leather belts for $30.00 each. On the belts, they demand a 20% markup at retail. What should the suggested retail price be?
- $36.50
- $35.00
- $39.00
- $37.50 (Correct answer)
Correct answer: $37.50
If the cost is $30.00 and there's a 20% markup at retail, this means the cost represents 80% of the retail price (100% - 20% markup). To find the retail price, divide the cost by the cost percentage: $30.00 / 0.80 equals $37.50. The markup amount would be $7.50 ($37.50 - $30.00), which is 20% of the retail price.
Free CLEP Marketing MCQ Question and Answers
Which of the subsequent is not a component of the marketing mix?