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Chapter 8,9,11-13 Practice Quiz Q's
Terms in this set (100)
The process by which goods, services, capital, people, information and ideas flow across national borders is referred to as
globalization refers to the processes by which goods, services, capital, people, information, and ideas flow across national borders.
If a firm wants to conduct a country market analysis, it must look at major economic factors using well-established metrics. Which of the following is NOT a major economic factor that the firm would consider?
A firm conducting an economic analysis of a country market must look at three major economic factors using well-established metrics: the general economic environment, the market size, and population growth rate, and real income. Trade agreements are part of the government actions that a firm would assess.
Because the United States imports more goods than it exports, it operates under a(n)
The United States suffers a trade deficit, which means that the country imports more goods than it exports.
The most widely used metric used to gauge the size and market potential of an economy is _____ , which is defined as the market value of the goods and services produced by a country in a year.
gross domestic product
The most common way to gauge the size and market potential of an economy, and therefore the potential the country has for global marketing, is to use standardized metrics of output. Gross domestic product (GDP) , the most widely used of these metrics, is defined as the market value of the goods and services produced by a country in a year.
Firms prefer to manufacture in a country that has _____ because it signals a greater opportunity to export products to more markets
a trade surplus
Firms prefer to manufacture in a country that has a trade surplus, a higher level of exports than imports, due to the greater opportunity to export products to more markets.
_____ includes both the market value of the goods and services produced by country in a particular year plus the net income earned from investments abroad
Gross national income
Gross national income consists of the gross national product plus the net income earned from investments abroad.
Basket Weavers, Inc ships their prized bread basket to two countries (countries A and B) where the exchange rates are in equalibrium. If Suzy purchases the basket in country A and her friend purchases in country B for the same price this is an example of which of the following metrics?
Purchasing power parity
Purchasing power parity is a theory that states that if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in the other, if expressed in the same currency. The Economist's Big Mac Index is an example of this.
In terms of market size and population growth rate, which of the following is a trend that is occurring in the world market that impacts the marketing of goods and services?
Marketing to more rural populations is more costly than reaching urban areas.
Marketing to serve more rural areas of the world, requires long supply chains which add significantly to the costs of delivering products to those markets.
Anita is conducting a country market assessment, and is focusing on four key elements: distribution channels, transportation systems, communication systems, and commerce. In doing so, Anita is evaluating which component of the market assessment?
Country market assessments include an analysis of infrastructure, including transportation and communication systems, water and power lines, and public institutions.
The United States wants to limit the amount of a product that can be imported into the country for a period of time by setting a maximum import quantity. In order to do so, the United States should institute
A quota designates the maximum quantity of a product that may be brought into a country during a specified time period.
The measure of how much one currency is worth in relation to another is referred to as
the exchange rate
The exchange rate is the measure of how much one currency is worth in relation to another.
All of the following are major existing trade agreements EXCEPT
The major existing trade agreements are: NAFTA, CAFTA, ASEAN, Mercosur and the European Union (EU).
Which of Hofstede's cultural dimensions relates to a willingness to accept social inequality as natural?
Geert Hofstede's cultural dimension of power distance relates to the willingness to accept social inequality as natural.
Which of the following accurately represents the countries that make up what is known as the BRIC countries?
Brazil, Russia, India, and China
If a small business wants to take the least risky strategy to enter its first foreign market, it would choose which of the following global entry strategies?
Exporting involves producing goods in one country and selling them in another, requiring the least financial risk with only a limited return.
_____ involves a binding contractual agreement between two businesses whereby the marketing operations are tightly controlled and often standardized.
Franchising is a contractual agreement between the firm, the franchisor, and another firm or individual, the franchisee. The franchising contract allows the franchisee to operate the business under a format developed and supported by the franchisor.
Although they do not directly invest in one another, independent firms entering into collaborative partnerships to expand globally are called
Strategic alliances refer to collaborative relationships between independent firms, through the partnering firms do not create equity partnership; that is, they do not invest in one another.
A(n) _____ forms when a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared.
Firms entering a new market by pooling their resources to form a new company where ownership, control, and profits are shared is called a joint venture.
BMW, the German company that manufactures automobiles, motorcycles, and other products, owns and operates a manufacturing plant in Spartanburg, South Carolina in the United States. This is an example of which global entry strategy?
There are three potential global product strategies a firm can choose depending on the needs of the target market.
Which global entry strategy has the highest degree of risk?
Direct investment requires the highest level of investment and exposes the firm to significant risks, including the loss of its operating and/or initial investments.
The global product strategy a firm chooses depends on
the needs of its target market.
There are three potential global product strategies a firm can choose depending on the needs of the target market
Although China represents one of the largest markets for soup in the world, Campbell's Soup Company had to invest considerable time and effort in making changes to its existing products because Chinese people are accustomed to preparing their soup fresh. This is an example of ______________
The Chinese consume 320 billion bowls of soup each year, however, they take great pride in personally preparing it with fresh ingredients. This represented a significant cultural barrier that Campbell's Soup Company had to overcome in its marketing efforts.
In the process of ______, companies initially develop products for niche or underdeveloped markets, and then expand them into their original or home markets.
Global expansion can move in various directions. In reverse innovation, for example, companies initially develop products for niche or underdeveloped markets, and then expand them into their original or home markets.
In pricing products in parts of Europe, including Italy, Spain, Greece and France, U.S. companies need to be aware that sales (i.e. temporary promotional discounts)
are allowed only twice per year.
Determining the selling price in the global marketplace is an extremely difficult task. For example, in many European countries, sales are allowed only twice a year, in January and June or July.
The fact that Mercedes-Benz is known by three Chinese names in Asia—peng zee in Cantonese for Hong Kong, peng chi in Mandarin for Taiwan, and ben chi in Mandarin for mainland China—illustrates the importance of developing different _____ for global markets.
One of the considerations for developing communication strategies for global markets is that there are many countries where there are multiple variants on a language.
When a firm evaluates its overall mission, including its strengths, weaknesses, opportunities, and threats, it is engaged in which step of the segmentation targeting and positioning process?
Establishing overall strategy or objectives
The first step in the segmentation process is to articulate the vision or objectives of the company's marketing strategy, consistent with its mission as well as its current situation—its strengths, weaknesses, opportunities, and threats.
Which step in the STP process develops descriptions of the different segments, which helps firms better understand the customer profiles in each segment?
Select segmentation method
The second step in the segmentation process is to use a particular method or combination of methods to segment the market. This step also develops descriptions of the different segments, which helps firms better understand the customer profiles in each segment.
Lawn care products manufacturer Scotts, has developed easy-to-follow, annual lawn care programs to help homeowners develop thick, green lawns that will combat weeds, insects, and diseases. The specific steps that must be used and their timing vary based on climate. What type of segmentation should Scotts use as the basis to design these programs?
Geographic segmentation organizes consumers into groups on the basis of where they live, including their agricultural growing zone.
_____ segmentation, the most common means to define segments, involves defining groups based on characteristics such as age, gender, income, and education
Demographic segmentation involves grouping individuals based on objective characteristics such as age, gender, income, and education. It is the most common means to define segments.
Behavioral segmentation based on when a product or service is purchased or consumed is called _____ segmentation.
Behavioral segmentation based on when a product or service is purchased or consumed is called occasion segmentation.
Jack describes himself as having a strong need to belong to a group, which motivates him to seek out activities that involve others. Marketers would use this type of information when developing _____ segments.
Psychographics are often defined by how people describe themselves, based on how they occupy their time and the underlying psychological reasons for those choices.
During which step of the STP process do marketers ask whether the segment is identifiable, substantial, reachable, responsive, and profitable?
Evaluate segment attractiveness
In order to evaluate the attractiveness of the various segments, marketers must first determine whether the segment is worth pursuing, using several descriptive criteria: Is the segment identifiable, substantial, reachable, responsive, and profitable?
The publishing conglomerate, Conde Nast is able to purchase mailing lists of people who have bridal interests, knowing that its Modern Bride magazine customers are somewhat distinct from those who subscribe to GQ. In terms of evaluating segment attractiveness, this is a way of assuring the segment is
A firm must be able to identify who is within its market, thus the segment must be identifiable.
In order for segmentation strategy be successful, the customers in the segment must react similarly and positively to firm's offering, corresponding to which of the following criteria for evaluating segment attractiveness?
Firms must strive to target segments of customers in ways that will allow them to be responsive to those marketing efforts.
In order for the ______ criteria to be met when evaluating segment attractiveness, the consumer must know the product or service exists, understand what it can do for him or her, and recognize how to buy it.
The best product or service cannot have any impact, no matter how identifiable or substantial the target market is, if that market cannot be reached (or accessed) through persuasive communications and product distribution. The consumer must know the product or service exists, understand what it can do for him or her, and recognize how to buy it.
Market growth, market competitiveness, and market access are all important factors in analyzing which criteria of segment attractiveness?
Marketers must also focus their assessments on the potential profitability of each segment, both current and future. Some key factors to keep in mind in this analysis include market growth, market competitiveness, and market access.
When everyone might be considered a potential user of its product, a firm likely uses a(n) _____ targeting strategy.
An undifferentiated targeting strategy, involves very little differentiation if any in the products offered to the marketplace.
A manufacturer of t-shirts concentrates all its efforts on cost containment by offering the product in only one size but in a variety of colors, using a one-size-fits-all approach. This involves a _____ targeting strategy.
An undifferentiated targeting strategy, or mass marketing, involves very little differentiation if any in the products offered to the marketplace.
General Motors targets several different market segments and designs separate automobile makes and models for each. This is an example of
General Motors is using a differentiated targeting strategy to reach several market segments with a different offering for each.
Large firms with multiple offerings in a particular product category engage in _____ targeting strategies to obtain a bigger share of the market, increase the overall market for the product categories they sell, and to diversify their businesses.
Firms embrace differentiated targeting because it helps them obtain a bigger share of the market, increase the market for the products overall, and for diversification.
When an organization selects a single, primary target market and focuses all its energies on providing a product to fit that markets needs it is using a(n) _____ targeting strategy.
Firms that select a single, primary target market to focus all their energies on use a concentrated targeting strategy to tailor their offer to satisfy their needs and wants.
Mr. Dennison knows each and every child who comes in to his Kumon reading center, and prides himself on knowing how he can personally address each of their reading challenges. What type of market coverage strategy is Mr. Dennison employing in his business?
When a firm tailors a product or service to suit individual customers' wants and needs, it is undertaking micromarketing. This is particularly suitable for small producers.
Land's End allows customers buying shirts to choose from a variety of fabrics, types of collar and sleeve, based on the customer's specific measurements, capitalizing on new technologies to mass customize its products and services. This is an example of
Firms that use mass customization to tailor products to suit the needs of individual consumers, it is using micromarketing or one-to-one marketing.
referencesebook & resources
Which of the following best describes the notion of "market positioning?"
The place the product occupies in consumer's minds relative to competing products.
Market positioning involves a process of defining the marketing mix so that the target consumers have a clear, distinctive, desirable perception and understanding of what the product does or represents in comparison with competing products.
The positioning strategy can help communicate a brand's _____, representing the unique value provided to customers.
The value proposition is the unique value that a product or service provides to customers representing how it is better than and different from those of competitors.
Volvo is known for its superior safety and performance features. They focus their communication efforts to reinforce this perception. This is an example of
positioning based on product attributes
Traditionally known for safety, Volvo used a positioning approach focusing on the product attributes of driving performance and excitement to enhance its appeal.
The Nike swoosh is an example of which of the following positioning tools to create a position for the brand that distinguishes it from its competitors?
Positioning based on symbolism
The Nike swoosh is a well-known symbol that is used to support its strong brand positioning in the marketplace using a registered trademark.
_____ is a tool used to visually display how consumers perceive the position of products or brands in the market on different dimensions relative to competitors.
A perceptual map
A perceptual map displays, in two or more dimensions, how consumers perceive the position of products or brands in a particular product category.
The _____ indicates where a particular market segment's ideal product lies on the perceptual map.
The ideal point is where a particular market segment's ideal product would lie on the perceptual map.
What is the first step marketers use to derive a perceptual map?
Determine consumers' perceptions and evaluations of the product or service in relation to competitors
Marketers must first determine their brand's position relative to its competitors by asking consumers a series of questions about its own and its competitors' products. For instance, they might ask how the consumer uses the existing product or services, what items the consumer regards as alternative sources to satisfy his or her needs, what the person likes or dislikes about the brand in relation to competitors, and what might make that person choose one brand over another.
When the bicycle manufacturer, Trek determined that some consumers use bikes for green transportation, whereas others use them for a thrilling hobby, they were most likely assessing the _____ of its bicycles to consumers.
core customer value
The core customer value comprises the basic problem-solving benefits that consumers seek in a product.
When marketers carefully develop a set of product attributes such as the brand name, features/design, and quality level of an offering, they are developing the
Marketers build upon the core customer value to deliver the actual product by determining the brand name, features/design, quality level, and packaging.
When marketers develop nonphysical aspects of an offering by adding warranties, financing and after-sales service, they are focusing on the
The augmented product consists of the actual product augmented by associated services, the nonphysical aspects of the product such as product warranties, financing, product support, and after-sale service.
When Megan purchased several bottles of Pepsi beverages and snacks to bring to her family's holiday celebration, it represented the purchase of
Consumer products are those goods purchased by people for their personal use.
Francesca spent a lot of time shopping for her wedding dress, spending considerable time and effort visiting some of the finest bridal shops in the area. For Francesca, her wedding dress is a(n) _____ product.
Specialty products are those toward which consumers expend considerable time and effort searching for the best suppliers.
Brian never spends a lot of time or thought picking up lunch when he is at work. For him, lunch items would be considered to be _____ products.
Convenience products are those where the consumer is not willing to expend a lot of effort in evaluation and purchase.
Insurance companies expend a lot of effort marketing their offerings, mainly due to the fact that insurance is _____ that consumers don't normally think about much.
an unsought product
Unsought products and services are those, which consumers either do not normally think of buying or do not know about. Because of their very nature, these products require lots of marketing effort and various forms of promotion.
The complete set of Kellogg's offerings, representing its _____ includes ready-to-eat cereal, toaster pastries, wholesome portable breakfast snacks, cookies, crackers, and natural and organic brands.
The complete set of all products offered by a firm is called its product mix.
Kellogg's has a variety of brands in its cookies and crackers _____, including Cheez-Its, Keebler Townhouse Club crackers, Famous Amos cookies, and Keebler Fudge Shoppe.
Product lines are groups of associated items that consumers tend to use together or think of as part of a group of similar products.
In response to increased consumer demand for healthful beverages, companies like Coca-Cola and Pepsi introduced new product lines like fruit juice to _____ their product mix.
Increase the breadth of
Companies increase the breadth of their product mixes to capitalize on changing consumer preferences by adding new product lines to their current product mixes.
Poland Springs produces a variety of bottled water beverages, and as the market continues to show growth potential for new flavors and varieties of bottled water, the company should _____ its product lines.
Increase the depth of
Companies increase the depth of their product lines to address changing consumer preferences by adding new flavors and varieties to their current offerings.
Introduced in 1920, Band-Aid now has more than 40 products to help heal cuts and scrapes. Band-Aid has, over the years, increased their
product line depth.
Adding new products to an existing product line is increasing its depth.
If a firm deletes an entire product line, it has
decreased its breadth.
Sometimes it is necessary for firms to delete entire product lines, which decreases breadth
Companies like Tiffany's go to great lengths to protect themselves through the use of trademarks and copyrights. This best represents which of the following advantages of branding?
Brands are assets.
To support its brandas a destination for consumers looking for "the best," Tiffany works constantly to protect the value of its iconic image as a prized asset.
The earning potential of a brand over a 12 month period is known as its
The market value of a brand refers to the earning potential of the brand over the next twelve months.
The set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service is referred to as
Brand equity represents the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service. Like the physical possessions of a firm, brands are assets thatcan be managed to increase value.
Brand equity is determined by four aspects of a brand. Which of the following is NOT one of the four aspects?
Experts look at four aspects of a brand to determine its equity: brand awareness, perceived value, brand associations, and brand loyalty.
Nike, KitchenAid and Sony are all examples of the use of _____ brands.
Nike, Coca-Cola, KitchenAid, and Sony are all examples of manufacturer brands, which are owned and managed by the manufacturer.
The majority of the brands marketed in the United States are _____ brands.
As the size of retail firms has increased through growth and consolidation, more retailers have developed_____ merchandise,which they use to establish a distinctive identity.
In recent years, as the size of retail firms has increased through growth and consolidation, more retailers have the scale economies to develop private-label merchandise and use this merchandise to establish a distinctive identity.
The Victorinox Swiss Army Company is well known for its Swiss Army knives. The company also makes and markets its Swiss Army brand of watches, travel gear, cutlery and even fragrances. This represents a _____ strategy.
A brand extension refers to the use of the same brand name in different product lines. It is an increase in the product mix's breadth.
n a failed attempt at extending its brand to a new product line, Bic introduced a line of disposable underwear. The brand extension adversely affected consumers' perceptions about its current product lines, this could lead to
Unsuccessful brand extensions can dilute brand equity, leading to brand dilution. This occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold.
_____involves a contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee.
By definition, a licensed brand is one for which there is a contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee.
For most products, the UPC code would be located on the _____ package.
The secondary package is the wrapper or exterior carton that contains the primary package and provides the UPC label used by retail scanners.
The primary federal agency that review food and package labels to ensure that the claims made by the manufacturer are true is the
Food and Drug Administration.
The Food and Drug Administration is the primary federal agency that reviews food and package labels to ensure that the claims made by the manufacturer are true
____ refers to the process by which ideas get transformed into new offerings, including products, services, processes, and branding concepts that will help firms grow.
Innovation refers to the process by which ideas get transformed into new offerings, including products, services, processes, and branding concepts that will help firms grow
According to your text, some estimates indicate that only about _____ percent of new products actually succeed.
Although innovation strategies may not always work in the short run—some estimates indicate that only about 3 percent of new products actually succeed—various overriding and long-term reasons compel firms to continue introducing new products and services.
In managing its product portfolio, 3M demands that a specific percentage of its yearly sales come from new products introduced within the previous few years in order to better with stand external shocks and
manage risk through diversification.
Firms like 3M often innovate to create a broader portfolio of products, to diversify their risk and enhance firm value to better with stand external shocks, including changes in consumer preferences or intensive competitive activity.
_____ refers to the process by which the use of a product, service or process spreads throughout a market group, over time and across various categories
Diffusion of innovation
The diffusion of innovation concept helps marketers understand the rate at which consumers are likely to adopt a new product or service.
The introduction of the Apple iPod is an example of _____ because its introduction to the market radically changed consumer preferences and the entire competitive landscape.
The Apple iPod is a pioneer product since it not only changed the way people listened tomusic, but it also created an entirely new industry devoted to accessories, such ascases, ear buds, docking stations, and speakers.
As _____, one of the advantages that pioneers have is they create a new market or product category, establishing a commanding initial market share lead.
Pioneers have the advantage of being first movers—as the first to create the market or product category, they become readily recognizable to consumers and thus establish a commanding and early market share lead.
Tyler is highly knowledgeable about new developments in bicycling technology, since he reads everything he can find about the subject. Typically being the first to try out new bicycle models, he would be classified _____ in terms of the diffusion of innovation curve.
as an innovator
Innovators want to be the first on the block to have the new product or service. Typically, innovators keep themselves very well informed about the product category by subscribing to trade and specialty magazines, talking to other "experts," engaging in product specific blogs and forums, and attending product-related forums, seminars, and special events.
Although they enjoy novelty and are considered to be opinion leaders, _____ are not the first to purchase new product innovations.
Although early adopters are not the first to purchase a new product, most of them go ahead and purchase though, because they tend to enjoy novelty and often are regarded as the opinion leaders for particular product categories.
_____ represent(s)a substantial portion of the population, and few new products and services can be profitable until this large group buys them.
The early majority
The early majority, which represents approximately 34 percent of the population, is crucial because few new products and services can be profitable until this large group buys them.
The last group of buyers to enter a new product market are _____, and when they do, the product has achieved its full market potential.
the late majority
At 34 percent of the market, the late majority is the last group of buyers to enter a new product market. When they do, the product has achieved its full market potential.
In some cases, _____ may never adopt a certain product or service, since they rely on traditional products until they are no longer available.
Laggards like to avoid change and rely on traditional products until they are no longer available. In some cases, laggards may never adopt a certain product or service.
A product that is perceived to be better than most substitutes is said to have _____, which should serve to speed up the diffusion process.
a relative advantage
If a product or service is perceived to be better than substitutes, it has a relative advantage, therefore the diffusion will be relatively quick
When a superior product is offered in a foreign market where cultural differences slow down the diffusion process, it would be attributed to low levels of
When international cultural differences either speed up or slow down the diffusion process, it would involve issues relating to compatibility.
People who get Botox treatments consider it to be a private matter, therefore, they do not discuss it with others. This lowers the level of _____, slowing down the diffusion process.
When products are easily observed, their benefits are easily communicated to others, which enhances the diffusion process. Since people may not want to talk about their Botox treatments to reduce wrinkles, the use of this product is less easily observed by others and therefore diffused more slowly.
_____ relates to how easily consumers can test and use the product.
Products that are relatively less complex are also relatively easy to try. These products will generally diffuse more quickly and lead to greater/faster adoption than those that are not so easy to try.
In the new product development process, companies have a variety of ways for _____ including outsourcing, brainstorming, licensing and customer research.
To generate ideas for new products, a firm can use its own internal research and development efforts, collaborate with other firms and institutions, license technology from research-intensive firms, brainstorm, research competitors' products and services, and/or conduct consumer research.
____ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist.
Reverse engineering involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist.
In the new product development process, when companies provide brief written descriptions of the product and what customer needs it would satisfy, sometimes including visual images of what the product would look like it involves
Concept testing refers to the process in which a concept statement is presented to potential buyers or users to obtain their reactions. Because concept testing occurs very early in the new product introduction process, even before a real product has been made, it helps the firm avoid the costs of unnecessary product development
The _____ stage of the new product development process can involve the development of a prototype for alpha or beta testing.
Product development entails a process of balancing various engineering, manufacturing, marketing, and economic considerations to developa product's form and features or a service's features, often resulting in the development of prototypes.
In order to examine the potential success of its 1/3-pound Angus hamburger, McDonald's started offering and promoting the product in three southern cities. This move is an example of
A method of determining the success potential of a new product, test marketing introduces the offering to a limited geographical area (usually afew cities) prior to a national launch.
The _____ stage of the new product development process requires tremendous financial resources and extensive coordination of the marketing mix to roll out the product.
Product launch is the most critical step in the new product introduction requiring tremendous financial resources and extensive coordination of all aspects of the marketing to introduce the product to the entire market.
The most common type of consumers in the introduction stage of the product life cycle are the
The introduction stage for a new, innovative product or service usually starts with a single firm, and innovators are the ones to try the new offering
At which stage in the product life cycle do sales experience their most rapid increase?
The growth stage of the product life cycle is where the greatest increase in sales is reflected due to a growing number ofproduct adopters, rapid growth in industry sales, and increases in both the number of competitors and the number of available product versions.
In the United States, most consumer packaged goods found in grocery and discount stores are already in the _____ stage, which is characterized by the adoption of the product by the late majority and intense competition for market share among firms.
The maturity stage of the product life cycle is characterized by the adoption of the product by the late majority and intense competition for market share among firms. In the United States, most consumer packaged goods found in grocery and discount stores are already in the maturity stage.
Firms with products in the _____ stage of the product life cycle either position themselves for a niche segment of diehard consumers or those with special needs, or they completely exit the market.
Firms with products in the decline stage of the product life cycle either position themselves for a niche segment of diehard consumers or those with special needs, or they completely exit the market. The few laggards that have not yet tried the product or service enter the market at this stage.
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