chapter 1—an overview of marketingcsub.edu/~ecarter2/sum.10.300/section 1 pool items.w… ·...

SECTION 1 POOL ITEMS

Chapter 1—An Overview of Marketing

MULTIPLE CHOICE

1. The term marketing refers to:a. new product concepts and

improvementsb. sellingc. advertising and promotion

activitiesd. a philosophy that stresses

customer satisfactione. planning sales campaigns

ANS: D PTS: 1 REF:3 OBJ:01-1 TYPE: DefTOP: AACSB Reflective


2. A business is concerned with many day-to-day activities. Some of the most important of these activities are the planning and development of a product, its pricing policy, and the distribution strategy. These activities are all a part of:a. a control systemb. marketingc. accountingd. productione. human resources

ANS: B

3. _____ is a philosophy, an attitude, a perspective, or a management orientation that stresses customer satisfaction.


a. Planning strategyb. Customer managementc. Marketingd. A control systeme. Reciprocity

ANS: C PTS: 1 REF:3 OBJ:01-1 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Product


4. The American Marketing Association's definition of marketing:a. is limited to promotional

activitiesb. focuses on the value of

empowerment, teamwork, and customer value

c. shows how marketing benefits the marketer

d. relies on the synergy created by exchange

e. includes the processes marketers use to establish and maintain relationships with customers

ANS: E


5. _____ is a key ingredient in the philosophy of marketing; it occurs when people give up something in order to receive something that they would rather have.a. Exchangeb. Synergyc. Transformationd. Leveraginge. Reciprocity

ANS: A PTS: 1 REF:3-4 OBJ:01-1 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Product


6. In order for exchange to occur:a. a complex societal system

must be involvedb. organized marketing

activities must also take place

c. a profit-oriented organization must be involved in the process

d. money or other legal tender is required

e. each party must have something the other party considers to be valuable

ANS: E


9. For an exchange to take place:a. there must be at least two

parties involvedb. money must be used in the

transactionc. each party must feel

obligated to accept the offerd. at least one party must have

something of value that the other party desires

e. neither party must communicate with the other

ANS: A


10.Indonesian logging companies harvest the rainforests for timber and assume that a market exists for their products. The typical Indonesian logging company has a(n) _____ orientation.a. exchangeb. productc. productiond. salese. environmental

ANS: C


11.The concept of exchange is important to marketing because:a. if all the conditions for an

exchange are in place, then the exchange will be completed

b. exchange provides money to marketers

c. marketing activities help to create exchange

d. marketing activities are a requirement for exchange to take place

e. money is the only medium of exchange for business marketers

ANS: C


14.Which of the following is NOT a marketing management philosophy?a. sales orientationb. societal marketing

orientationc. market orientationd. profitability orientatione. production orientation

ANS: D


15. Firms with a _____ orientation focus on the internal capabilities of the firm rather than on the desires and needs of the marketplace.a. salesb. productionc. marketd. customere. customer-benefit

ANS: B PTS: 1 REF:4-5 OBJ:01-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Product


16.A company that sets its goals and strategies based on what its current equipment can produce, what products engineering can design, and what the company itself can do best, has a(n) _____ orientation.a. marketplaceb. salesc. marketd. exchangee. production

ANS: E PTS: 1 REF:4-5 OBJ:01-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy| TB&E Model Product


19.A firm with a production orientation is most likely to survive if:a. there are many small

competitors in the marketplace

b. demand for the product it produces exceeds supply

c. the needs of the marketplace are constantly shifting

d. supply for the product it produces exceeds demand

e. any of the above conditions exist

ANS: B


The production orientation can survive in the short term under a variety of conditions; however, if market needs change, long-term survival is difficult.

PTS:1 REF: 4-5 OBJ: 01-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy

20.A firm that adopts a(n) _____ orientation to marketing will fail to consider whether what the firm produces most efficiently also meets the needs of the marketplace.a. customerb. exchangec. productd. market


e. production

ANS: EThe production orientation forces a company to build whatever it builds best, that is, whatever it has the experience and expertise in doing.

PTS:1 REF: 4-5 OBJ: 01-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer

22.The _____ orientation assumes people will buy more if aggressive selling techniques are used.


a. marketb. salesc. customerd. productione. exchange

ANS: BThe sales orientation assumes aggressive selling is what is needed to increase demand.

PTS:1 REF: 5 OBJ: 01-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Pricing


23.A _____ orientation assumes marketing means selling things and collecting money. It also assumes people will buy more goods and services if aggressive marketing techniques are used.a. salesb. productionc. marketd. customere. marketplace

ANS: A PTS: 1 REF:5 OBJ:01-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer


25.If a company uses a sales orientation, consumer complaints would most likely result in:a. a modification of the sales

presentationb. product reinventionc. continuous market researchd. philanthropye. attempts to cut production

costs

ANS: AThe sales orientation relies on aggressive sales techniques to fuel business.

PTS:1 REF: 5 OBJ: 01-2


TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy

29.Companies that rely on the marketing concept and that have implemented a market orientation strategy recognize that:a. price is the most important

variable for customersb. sales depend predominantly

on an aggressive sales forcec. what the customer thinks he

or she is buying is what is important

d. a company has to apply scientific management


techniques to survivee. selling and marketing are

essentially the same thing

ANS: CThe perceived product and perceived value are what the customer is buying, and the marketing concept and market orientation have endeavored to understand those perceptions.



30.A company that has a market orientation and adheres to the marketing concept does NOT:a. integrate all the activities of

the firm to satisfy customer wants

b. focus on consumer needs and wants

c. differentiate the firm's products from its competitor's products

d. fuel sales growth through the application of aggressive sales techniques

e. concentrate on long-term goal achievement (such as profits and growth) for the firm


ANS: DAggressive sales techniques are part of the sales orientation and are not needed if a company is meeting needs and wants of its customers.

PTS:1 REF: 5 OBJ: 01-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy| TB&E Model Product

31.The statement, "Marketing should be introduced at the beginning rather than the end of the production cycle and integrated into each phase of the business," is consistent with a(n) _____ orientation.


a. productionb. marketc. retaild. salese. enterprise

ANS: BUnderstanding the competitive arena and competitors' strengths and weaknesses is a critical component of market orientation.

PTS:1 REF: 5-6 OBJ: 01-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Product


36.The marketing concept involves:a. focusing on customers'

wants so that the organization can distinguish its product (or products) from the competitors' products

b. satisfying management's needs and wants with the idea of maximizing profits in the short run

c. selling as much product as possible under the assumption people will buy more goods and services if aggressive selling techniques are used

d. selling as much as possible


under the assumption consumers will buy more at lower prices

e. focusing on production in order to increase product quality and lower prices

ANS: A PTS: 1 REF:5-6 OBJ:01-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer

37.The marketing concept includes a goal orientation to remind managers that:a. achieving long-term

organizational goals is as important as satisfying


customersb. customers must be satisfied

no matter what the long-term effect on the firm

c. the only reason for any business to exist is to make a profit

d. the objective is to find a target market that differs from that of the competition

e. functional integration of all departments is useful but not essential

ANS: AThe goal orientation refers to the company's goals, such as profit, growth, service, and survival.



38.The marketing concept stresses that the social and economic justification for an organization's existence is the satisfaction of customer needs and wants while:a. producing a good or service

at the lowest possible costb. improving the general

standard of livingc. constantly increasing sales

volumesd. applying scientific

management techniques to


improve efficiencye. simultaneously meeting

organization objectives

ANS: EThe marketing concept holds that the needs and wants of both the customer and the firm be served.



40.An organization with a(n) _____ believes that it exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests.a. sales orientationb. market orientationc. ethical business missiond. focused target market

strategye. societal orientation

ANS: E PTS: 1 REF:6 OBJ:01-2 TYPE: DefTOP: AACSB Diversity| TB&E Model Customer


45.Which of the following statements about the societal orientation is true?a. Companies that protect the

environment by using all-natural materials in their products are showing a societal marketing orientation.

b. Marketers cannot deliver all benefits sought by customers because these benefits may not be in the long-term best interests of the customers.

c. The societal marketing concept is an important refinement of the market


concept.d. Organizations have both a

social and economic justification for their existence.

e. All of these statements about the societal orientation are true.

ANS: E PTS: 1 REF:6 OBJ:01-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Research| TB&E Model Customer


48.Organizations that sell products that are often unsought (such as life insurance and retirement plans) may find themselves adopting a _____ orientation because the companies are marketing products that most people do not want.a. salesb. productionc. marketingd. producte. customer

ANS: AAggressive selling is sometimes used by companies that sell products their customers do not want to buy.


PTS:1 REF: 5 OBJ: 01-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Promotion

57._____ gives customers the feeling their concerns are being addressed and at the same time gives employees the feeling their expertise matters to management.a. Management-employee

synergyb. Organizational entropyc. Managerial reciprocityd. Empowermente. Delegation

ANS: D PTS: 1 REF:9 OBJ:


01-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer

58.Market-oriented firms primarily focus their efforts upon:a. improving the technological

skills and competitive advantages of the firm

b. satisfying the organization's needs for low overhead

c. achieving the company’s societal responsibilities inexpensively

d. distributing goods and services

e. satisfying the wants and needs of their customers


ANS: EMarket-oriented firms are focused outward toward their customers.

PTS:1 REF: 6 OBJ: 01-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer

59.Which of the following statements about a typical sales-oriented business is true?a. The company develops its

products to meet the needs of specific groups of people.

b. The primary goal of the company is profit through customer satisfaction.


c. The company invests the majority of its resources in promoting its products and services.

d. The company is in business to satisfy customers' wants and needs and deliver superior value.

e. All of these statements about a typical sales-oriented business are true.

ANS: CSee Review Learning Outcome 3.

PTS:1 REF: 6 | 10 OBJ:01-3 TYPE: CompTOP: AACSB Analytic| TB&E Model


Customer

60._____ is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.a. Opportunity costb. Marketing utilityc. Market qualityd. Satisfaction percentagee. Customer value

ANS: E PTS: 1 REF:6 OBJ:01-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer

61.Marketers interested in offering customer value can:


a. offer products that performb. give the consumer factsc. offer organization-wide

commitment to service and after-the-sale support

d. avoid unrealistic pricinge. do all of these

ANS: E PTS: 1 REF:6-7 OBJ:01-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Pricing| TB&E Model Product| TB&E Model Customer

64. When customer expectations regarding product quality, service quality, and value-based price are met or exceeded, _____ is created.


a. a value lineb. a quality riftc. planning excellenced. customer satisfactione. expectation satisfaction

ANS: D PTS: 1 REF:7 OBJ:01-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Pricing| TB&E Model Product| TB&E Model Customer

66._____ is a strategy that entails forging long-term partnerships with customers.a. Commitment selling


b.

Relationship marketing

c. Transactional marketingd.

Market engineering

e. Organization-customer synergy

ANS: B PTS: 1 REF:8 OBJ:01-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer


71.Which of the following measures would be the best indicator of whether your organization's personnel have a customer orientation?a. Ask each employee's boss if

that person is customer-oriented.

b.

Assess each employee's impact on the profitability of the firm.

c. Survey customers on how oriented the organization's personnel are to customer needs and desires.

d.

Assess how well each employee has contributed to the marketing success of the firm by examining every financial statement created


by the organization.e. Test employees on their

knowledge of customer service techniques.

ANS: CThe key to assessing how customer-oriented a firm's personnel are is to ask the customer. Only the customer can provide this type of information.



73.Some market-oriented firms give employees expanded authority to solve customer problems on the spot. This is known as:a. trainingb.

deregulation

c. empowermentd.

commissioning

e. mediating

ANS: C PTS: 1 REF:9 OBJ:01-3 TYPE: DefTOP: AACSB Communication| TB&E Model Customer


76._____ is the collaborative efforts of people to achieve common objectives.a. Effort trainingb.

Teamwork

c. Empowermentd.

OJT training

e. Mediation

ANS: B PTS: 1 REF:9 OBJ:01-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy


77.Dofasco, Inc. is a Canadian steel manufacturer. According to its CEO, "People can make a phenomenal difference if you stop telling them to come to work, put their brains in a box, and do whatever the supervisor says. We let our employees work in teams." This quote implies that by using teamwork, Dofasco:a. operates successfully using a

production orientationb.

provides its customer with a high level of satisfaction

c. has a high employee turnover rate

d.

does not deliver superior customer service

e. has a sales orientation


ANS: BTeamwork is one way a company with a market orientation creates customer satisfaction.

PTS:1 REF: 9 OBJ: 01-3 TYPE: AppTOP: AACSB Analytic| TB&E Model Customer

78.Dofasco, Inc. is a Canadian steel manufacturer. According to its CEO, "People can make a phenomenal difference if you stop telling them to come to work, put their brains in a box, and do whatever the supervisor says. We let our employees work in teams." Teamwork would benefit Dofasco by:


a. enhancing employee performance

b.

doing away with the need for empowerment

c. creating managerial entropyd.

refining the definition of customer value

e. doing all of these

ANS: AEnhanced employee performance leads to improved customer satisfaction.

PTS:1 REF: 9 OBJ: 01-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Strategy


79.Redefining the business mission of a mattress manufacturer as "a good night's sleep," rather than stating the mission as "the manufacture of high-quality mattresses," will:a. not stimulate an awareness

of changes in consumer desires

b.

be too broad a statement to be of any real use in serving customers

c. stifle creativity in discovering opportunities to serve customers

d.

help ensure the firm retains its focus on consumers and does not become preoccupied with its products and internal needs


e. ensure the core products will be retained

ANS: DThe broader business mission of "a good night sleep" will stimulate innovation and creativity because not all sleep aids are mattresses. It will lead the company to further growth.

PTS:1 REF: 9 OBJ: 01-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Customer


80.One of the reasons given for the decline of the passenger rail industry in the United States is that the industry defined its mission as trains and not as transportation sources. The railroad industry failed to:a. define its mission in terms of

the benefits its customers seek

b.

ignore the marketing concept of serving customer needs and wants

c. realize "customers only want what they know"

d.

have a sales orientation

e. empower the consumer


ANS: AA market-oriented firm defines its business in terms of the benefits its customers seek. Because of the limited way the railroad industry defined its business, it missed an opportunity to define itself in terms of the benefits customers were seeking.

PTS:1 REF: 9-10 OBJ: 01-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Customer


81.When light bulbs were first introduced, manufacturers offered one size for all light fixtures. Today you can buy light bulbs in different shapes, different wattages, and different colors. They also differ as to how much electricity they use and how many hours of illumination they will provide before failing. Light bulb manufacturers:a. miss sales by not

concentrating on the average customer

b.

recognize different customer groups have different needs and wants

c. are sales-oriented companiesd.

are companies that would state they are in the business


of selling bulbse. are aiming at a goal of profit

through maximum sales volume

ANS: BOne way to implement the marketing concept is to concentrate on the needs of specific groups of customers.

PTS:1 REF: 5-6 OBJ: 01-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Product


82.One way to identify the orientation of a firm is to examine its primary goal. If a firm seeks to achieve profitability through sales volume, it would probably be:a. promotion-orientedb.

price-oriented

c. sales-orientedd.

production-oriented

e. retail-oriented

ANS: C PTS: 1 REF:5 | 11 OBJ:01-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy


87._____ is the primary tool used by a sales-oriented organization to achieve its corporate goals.a. Priceb.

Promotion

c. Product designd.

Place (distribution)

e. Production

ANS: BA sales-oriented organization seeks to generate sales volume based upon intensive promotional activities.


PTS:1 REF: 10 OBJ: 01-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Promotion

88.For a market-oriented organization, the primary tool used to achieve its goals is:a. a blend of product, place,

promotion, and pricing decisions

b.

price

c. product designd.

place (distribution)

e. promotion


ANS: AA market-oriented organization seeks to generate sales volume based on serving customer needs and wants, utilizing all of the elements of the marketing mix to do so.

PTS:1 REF: 10 OBJ: 01-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Distribution| TB&E Model Pricing| TB&E Model Product| TB&E Model Promotion

94.What is the fundamental objective of most businesses?a. employee empowerment,


teamwork, and relationship marketing

b.

satisfied stakeholders

c. low costs and high qualityd.

customer loyalty and retention

e. survival, profits, and growth

ANS: EThe use of marketing allows businesses to achieve this objective.

PTS:1 REF: 11 OBJ: 01-4 TYPE: CompTOP: AACSB Analytic| TB&E Model Strategy


95.Which if the following is NOT a good reason to study marketing?a. Marketing teaches

businesses how to sell products that people do not need.

b.

Marketing plays an important role in society, coordinating the huge numbers of transactions needed to provide goods and services.

c. Marketing is a key function in business.

d.

Marketing offers outstanding career opportunities.

e. Marketing affects your day-to-day life as a consumer.


ANS: AThat marketing enables companies to sell even bad and worthless goods is a myth.

PTS:1 REF: 11-12 OBJ:01-4 TYPE: CompTOP: AACSB Analytic| TB&E Model Strategy

96.Which of the following statements contains one good reason for studying marketing?a. Marketing teaches

businesses how to sell products that people do not need.


b.

Marketing deals with transactions--not relationships.

c. Marketing has little impact on your day-to-day life.

d.

Marketing offers outstanding career opportunities.

e. The study of marketing helps you to better understand why the job market is shrinking.

ANS: D


Marketing plays an important role in society, coordinating the huge numbers of transactions needed to provide goods and services. Marketing affects your day-to-day life as a consumer.

PTS:1 REF: 11-12 OBJ:01-4 TYPE: CompTOP: AACSB Analytic| TB&E Model Strategy


Chapter 3 MULTIPLE CHOICE

1. _____ is the concern of business for the long-range welfare of both the company and its relationships to the society within which it operates.a. Consumerismb.

Corporate social responsibility

c. Cultural sensitivityd.

Conventional morality

e. Environmental consideration

ANS: B PTS: 1 REF:29 OBJ:03-1 TYPE: Def


TOP: AACSB Ethics| TB&E Model Strategy

3. Corporate social responsibility is defined as the:a. belief that the legal system

defines ethical behaviorb.

development of inclusive codes of ethics

c. rules by which social rewards are attained

d.

concern for social welfare by businesses

e. coordination of social programs for publicity purposes


ANS: D PTS: 1 REF:29 OBJ:03-1 TYPE: DefTOP: AACSB Ethics| TB&E Model Strategy

4. Corporate social responsibility:a. is mandated by federal lawb.

requires companies to sacrifice economic performance for the sake of their stakeholders

c. does not influence competition

d.

may not always result in profit and growth

e. is unaffected by environmental changes


ANS: D PTS: 1 REF:29 OBJ:03-1 TYPE: CompTOP: AACSB Ethics| TB&E Model Strategy

7. _____ is the idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profit and help the world at the same time.a. Sustainabilityb.

Philanthropy

c. Cause marketingd.

Creative ethics


e. International ethics

ANS: A PTS: 1 REF:29 OBJ:03-1 TYPE: DefTOP: AACSB Ethics| TB&E Model Strategy


9. The pyramid of corporate social responsibilities contains all of the following components EXCEPT:a. economic responsibilitiesb.

ethical responsibilities

c. cultural responsibilitiesd legal responsibilities


.e. philanthropic

responsibilities

ANS: CSee Review Learning Outcome 1.

PTS:1 REF: 29-30 OBJ:03-1 TYPE: DefTOP: AACSB Ethics| TB&E Model Strategy

15.The four components of the pyramid of corporate social responsibility are:a. sustainability, creativity,

profit, and culture


b.

organizational culture, creativity imagery, economic performance, and objectivity

c. organizational, financial, social, and cultural responsibilities

d.

sustainability, legality, creativity, and competition

e. economic, legal, ethical, and philanthropic responsibilities

ANS: E PTS: 1 REF:29-30OBJ:03-1 TYPE: DefTOP: AACSB Ethics| TB&E Model Strategy


16.Which of the following statements describes ethics?a. Ethics are the moral

principles or values that generally govern the conduct of an individual.

b.

Ethics is the standard of behavior by which conduct is judged.

c. Morals are a foundation for ethical behavior.

d.

Ethical values are situation specific and time oriented.

e. All of the statements describe ethics.

ANS: E PTS: 1 REF:30 OBJ:03-2 TYPE: Comp



17.Which of the following sayings best describes how people with conventional morality act?a. Don't put all of your eggs in

one basket.b.

When in Rome, do as the Romans do.

c. Be wary of strangers bearing gifts.

d.

A rolling stone gathers no moss.

e. Don't count your chickens before they hatch.

ANS: B PTS: 1 REF:31 OBJ:


03-2 TYPE: CompTOP: AACSB Ethics| TB&E Model Strategy

20.The use of ethical decision making:a. can be influenced by top

managersb.

is influenced by the probability of harmful outcomes

c. depends on the number of people to be affected

d.

depends on the magnitude of possible consequences

e. is accurately described by all of the choices


ANS: E PTS: 1 REF:31 OBJ:03-2 TYPE: CompTOP: AACSB Ethics| TB&E Model Strategy

22.Which of the following factors does NOT tend to influence ethical decision making and judgments?a. probability of a harmful

outcomeb.

length of time between decision and the onset of consequences

c. level of multiculturalismd.

number of people to be affected

e. potential magnitude of the consequences


ANS: C PTS: 1 REF:31 OBJ:03-2 TYPE: CompTOP: AACSB Ethics| AACSB Diversity| TB&E Model Strategy

24.A human resources manager is creating a code of ethics for the employees of the retirement home she works for. Which of the following is NOT an ethics principle she should keep in mind as she creates this code?a. The principles should not

upset current retirement home workers and future job applicants.

b Any decisions should be fair


. to all concerned: retirement home nurses, cleaning personnel, and administrative staff.

c. Input on the code should be gained from other knowledgeable individuals or groups.

d.

Principles can deviate from common practices because of the prestigious nature of the facility.

e. She should not have to pull rank or use coercion to implement her ethics code.

ANS: D


An unethical code would presume that the company is an exception to a common practice in the industry.

PTS:1 REF: 31-32 OBJ:03-2 TYPE: CompTOP: AACSB Ethics| TB&E Model Strategy

25.A(n) _____ is a defined group that managers feel is most likely to buy a firm's product.a. target marketb.

buying center

c. aggregated unitd.

consumer cluster

e. demographic sample



27.Which of the following statements best describes the typical target market?a. A target market will remain

stable over time, with the same group of consumers.

b.

Target markets change over time as consumers drop in or out of the market, and as tastes change.

c. Target markets are not


strongly affected by changes in the external environment.

d.

Target markets only change when the features and benefits of the product offering change.

e. Target markets cannot be specifically defined according to age, income, or location because these factors are continually changing.

ANS: BTarget markets are defined and described, but they are always changing in response to environmental changes.



29.The external environment:a. can be controlled in much

the same manner as the internal marketing mix

b.

cannot be influenced by marketing managers

c. does not change over timed.

does not have an impact on Fortune 500 companies

e. must be continually monitored by marketing managers


ANS: E PTS: 1 REF:32 OBJ:03-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy

30.The external environment is a strong influence on a target market and can be a source of _____ for the marketing manager.a. opportunities and threatsb.

threats and strengths

c. environmental loopholesd.

opportunities and weaknesses

e. product myopia


ANS: AThe external environment can provide opportunities to serve new and changing needs, as well as warnings about changes that could threaten the current position of the firm. Students will need to remember what a SWOT analysis is to answer this question.


31.Marketing managers cannot control _____, but they can at times influence it.a. where advertising is placed


b.

the external environment

c. the sales forced.

the distribution strategy

e. how products are priced

ANS: BThe external environment is basically uncontrollable, but the other four answers are part of the marketing mix.

PTS:1 REF: 32-33 OBJ:03-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy


33.What is apparently the most difficult external variable for marketing managers to forecast, influence, or integrate into marketing plans?a. technologyb.

social factors

c. demographyd.

competition

e. economic conditions

ANS: B


Social factors and changes are difficult to foresee, because they are usually slow and/or small changes. Also, it is very difficult for one company to affect social factors in any appreciable manner.

PTS:1 REF: 33 OBJ: 03-4 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Marketing Plan

35.When a company engages in _____, it is implementing strategies that attempt to shape the external environment in which it operates.a. synergistic controlb environmental management


.c. transactional managementd.

market control

e. reactive management


38._____ factors are the environmental factors concerned with the changes in people's values, lifestyles, and family roles.a. Social


b.

Economic

c. Politicald.

Competitive

e. Demographic

ANS: A PTS: 1 REF:33 OBJ:03-4 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer

43. Consumer preference for low-carb diets has greatly modified the way food is being marketed. This concern with health issues is an example of a(n) _____ factor.


a. economicb.

political and legal

c. technologicald.

demographic

e. social

ANS: E PTS: 1 REF:33 OBJ:03-4 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Product| TB&E Model Customer

45.What do self-sufficiency, upward mobility, and conformity have in common?


a. These are no longer valued attitudes.

b.

They are attitudes that can easily be changed.

c. These are three perceptions that Americans have of the Asian lifestyle.

d.

These are three of the core values that have influenced lifestyles in the United States.

e. They are the determinants of a component lifestyle.

ANS: DThe fourth value is work ethic.

PTS:1 REF: 33 OBJ: 03-4


TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer

48.A(n) _____ is the practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle.a. aggregated lifestyleb.

component lifestyle

c. psychographic mode of living

d.

demographically defined lifestyle

e. targeted lifestyle


ANS: B PTS: 1 REF:33-34OBJ:03-4 TYPE: DefTOP: AACSB Diversity| TB&E Model Product

55.The growth of dual-income families has resulted in:a. burnoutb.

a sense of entitlement

c. decreased discretionary income

d.

decreased GNP

e. increased purchasing power


ANS: E PTS: 1 REF:34 OBJ:03-4 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer

56.Which of the following events has had a greater effect on marketing than any other social change?a. the growing number of one-

child familiesb.

the increasing number of immigrants from Northern Europe

c. the growing number of people on the Internet

d.

the increasing number of working women

e. the growing number of people of retirement age


who are continuing work

ANS: D PTS: 1 REF:34 OBJ:03-4 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer

58.The study of people's vital statistics, such as their ages, births, deaths, and locations, is called:a. cultural sociologyb.

psychometrics

c. ecologyd.

ethnography

e. demography


ANS: E PTS: 1 REF:34-35OBJ:03-5 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer

59.Which of the following is NOT a demographic characteristic of a population?a. income levelb.

age

c. valuesd.

education

e. birthrate


ANS: CValues are a social factor.

PTS:1 REF: 34-35 OBJ:03-5 TYPE: CompTOP: AACSB Diversity| TB&E Model Customer

69. A multicultural society is characterized by:a. a population of recent

immigrants that are closely related by custom and tradition

b.

a conglomeration of small and large ethnic groups that have little in common


c. even distribution of all ethnic groups in a geographic region

d.

effective mass-marketing techniques

e. one large dominating racial or ethnic group in a geographic area

ANS: C PTS: 1 REF:39 OBJ:03-6 TYPE: DefTOP: AACSB Diversity| TB&E Model Distribution| TB&E Model Customer


71.A furniture retailer that specializes in selling entire rooms of furniture has hired you to identify 25 geographic target markets that can be described as multicultural societies. What types of locations should you offer this firm?a. cities that have historically

had low immigration ratesb.

traditional test markets

c. regions that are dominated by one ethnic group and that have multiple smaller ethnic groups

d.

unindustrialized areas

e. locations in which all major ethnic groups in the area are equally represented


ANS: EMulticultural societies are not defined by geography, history, or products produced, but by the racial and ethnic composition of the population.

PTS:1 REF: 39 OBJ: 03-6 TYPE: AppTOP: AACSB Diversity| TB&E Model Customer

74.The higher your _____, the higher your purchasing power:a. gross incomeb social class


.c. disposable incomed.

cost of living

e. inflation index

ANS: CPurchasing power is measured by comparing income to the relative cost of a set standard of goods an services. It is a aligned with net income, or income minus a standard set of expenses. Assuming a constant income, the higher the cost of living (the expenses), the lower the purchasing power.

PTS:1 REF: 39-40 OBJ:03-7


TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer

76.Factors, such as interest rates, inflation, and consumer income that influence the marketing environment, are called _____ factors.a. economicb.

socio-demographic

c. politicald.

government

e. consumption

ANS: A PTS: 1 REF:39 OBJ:03-7 TYPE: Def


TOP: AACSB Reflective Thinking| TB&E Model Customer

77._____ is measured by comparing the relative cost of a standard of goods and services in different geographic areas.a. Gross individual profitb.

Purchasing power

c. Net profitd.

Relative pricing

e. Price escalation

ANS: B PTS: 1 REF:39-40OBJ:03-7 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer


78.When income is high relative to the cost of living, consumers _____.a. have more discretionary

incomeb.

begin anticipating a period of price deceleration

c. stop buying luxury goods and services

d.

have significantly less disposable income

e. anticipate price escalation by stockpiling

ANS: A PTS: 1 REF:39-40OBJ:03-7 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer


79._____ is the primary determinant of a person's earnings.a. Multiculturalismb.

Lifestyle

c. Educationd.

The aging of the baby boomers

e. Global competition

ANS: C PTS: 1 REF:39 OBJ:03-7 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer


80.____ is measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year.a. Inflationb.

Recession

c. Depressiond.

Consumer break-even

e. Price escalation

ANS: A PTS: 1 REF:40 OBJ:03-7 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Pricing


81.When planning marketing strategies during times of inflation, marketers must be aware inflation causes consumers to:a. purchase more goods and

services to support their psychological selves, such as counseling and stress management training

b.

consume more meals away from home

c. buy in small quantities until inflation is over

d.

decrease their brand loyalty to products they have traditionally used

e. put more money into savings accounts because prices are too high


ANS: DIn times of inflation, consumers are more price conscious and less brand-loyal.

PTS:1 REF: 40 OBJ: 03-7 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Pricing

82.A period of economic activity when income, production, and employment tend to fall, reducing overall demand, is called:a. stagnationb.

an inflation


c. a recessiond.

price escalation

e. a depression

ANS: C PTS: 1 REF:40 OBJ:03-7 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Pricing

85.Which of the following strategies is appropriate for a marketer to use during a time of economic recession?a. Promote product value.b.

Maintain and improve customer services.

c. Emphasize top-of-the-line


products in promotions.d.

Offer products that are economical and efficient.

e. Do all of these.

ANS: E PTS: 1 REF:40-41OBJ:03-7 TYPE: CompTOP: AACSB Technology| TB&E Model Pricing

86.Which of the following is sometimes an effective weapon for fighting inflation and recession?a. technologyb.

line extensions

c. increased capital gains taxesd introducing product-line


. extensionse. reducing R&D expenditures

ANS: A PTS: 1 REF:40-41OBJ:03-8 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Research

87.Research that attempts to expand the frontiers of knowledge rather than solving a specific, pragmatic problem is called:a. technical diversityb.

reactive research

c. applied researchd.

experiential research


e. basic research

ANS: E PTS: 1 REF:41 OBJ:03-8 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Research

100. Laws and regulations of various governments and their ongoing development and change are an example of _____ factors and are part of all organizations' external environment.a. economic investmentb.

political and legal

c. research and development


d.

competitive

e. demographic

ANS: B PTS: 1 REF:42 OBJ:03-9 TYPE: DefTOP: AACSB Technology| TB&E Model Strategy

101. The _____ Act strengthened the Clayton Act to prevent corporate acquisitions that reduce competition.a. Hart-Scott-Rodinob.

Lanham-Scott

c. Celler-Kefauver Antimergerd.

Robinson-Patman


e. Sherman

ANS: CSee Exhibit 3.2. The Celler-Kefauver Act bolstered the Clayton Act's provision dealing with interlocking directorates and closed another loophole that had allowed corporate takeovers.

PTS:1 REF: 42 OBJ: 03-9 TYPE: DefTOP: AACSB Analytic| TB&E Model Strategy


102. The _____ Act requires large companies to notify the government of their intent to merge.a. Hart-Scott-Rodinob.

Sherman

c. Celler-Kefauver Antimergerd.

Robinson-Patman

e. Lanham

ANS: ASee Exhibit 3.2.



103. The Gramm-Leach-Bliley Act and the Health Insurance Portability and Accountability Act are both important laws designed to:a. protect the channels of

commerceb.

restrict alcohol and tobacco advertising

c. eliminate certain products from being advertised on children’s television programs

d.

protect consumers from identity theft

e. penalize marketers selling merchandise with counterfeit brand names


ANS: D PTS: 1 REF:42 OBJ:03-9 TYPE: DefTOP: AACSB Analytic| TB&E Model Strategy


Chapter 2

3. Strategic plans require:a. long-term resource

commitmentsb.

a change in organizational structure

c. the addition of new personnel

d.

new product development

e. changes in prices

ANS: AStrategic plans are long-range plans that involve developing, organizing, and controlling marketing activities.


PTS:1 REF: 15 OBJ: 02-1 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy

4. _____ is the managerial process of creating and maintaining a fit between the organization's objectives and resources and evolving market opportunities.a. Tactical managementb.

The market audit

c. Functional planningd.

Environmental scanning

e. Strategic planning


ANS: E PTS: 1 REF:15 OBJ:02-1 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy

7. Which of the following statements about a marketing plan is true?a. Marketing plans can exist as

oral traditions.b.

The marketing plan should be viewed as a series of sequential steps.

c. All marketing plans have basically the same content.

d.

A marketing plan is created so an organization can meet its marketing objectives.


e. All of the statements about a marketing plan are true.

ANS: DBy definition, marketing plans are written. Several steps of the marketing plan can be done at the same time. The content of marketing plans varies.

PTS:1 REF: 15 OBJ: 02-1 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Marketing Plan

8. _____ is the process of anticipating events and determining strategies to achieve organizational objectives.a. Planning


b.

Portfolio evaluation

c. Forecastingd.

Implementation

e. Evaluation

ANS: A PTS: 1 REF:15 OBJ:02-1 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Marketing Plan

10.Marketing plans should be written to do all of the following EXCEPT:a. compare actual and

expected performanceb provide clearly stated


. activitiesc. create common goals for

employees to work towardd.

allow managers to enter the marketplace with an awareness of possibilities and problems

e. control the elements of the external marketing environment

ANS: EMarketing environment variables cannot be controlled.

PTS:1 REF: 16 OBJ: 02-1 TYPE: CompTOP: AACSB Reflective Thinking|


TB&E Model Marketing Plan

11.Which of the following is one of the elements of the marketing plan?a. a business mission statementb.

a situation analysis

c. a target market strategyd.

the marketing mix

e. all of the choices

ANS: ESee Exhibit 2.1.

PTS:1 REF: 17 OBJ: 02-1 TYPE: DefTOP: AACSB Reflective Thinking|


TB&E Model Marketing Plan

13.The _____ answers the question, "What business are we in, and where are we going?"a. mission statementb.

financial statement

c. situation analysisd.

market strategy

e. strategic plan

ANS: A PTS: 1 REF:18 OBJ:02-2 TYPE: DefTOP: AACSB Analytic| TB&E Model Strategy


17.The focus of an organization's mission statement should be on:a. the products it wishes to sellb.

the market it wishes to serve

c. its social responsibilitiesd.

the desires of government regulators

e. technologies it understands well

ANS: BThe choice of the market to serve determines the product and technology decisions.



20._____ occurs when a business is defined in terms of goods and services rather than by the benefits customers seek from it.a. A circle trapb.

A market barrier entry

c. A reactive focusd.

Unempowerment

e. Marketing myopia


ANS: E PTS: 1 REF:18 OBJ:02-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Product

21.A popular technique for managing a large organization with different technologies and markets is to divide it into:a. strategic business unitsb.

different technologies

c. strategic target marketsd.

design matrices

e. tactical segments

ANS: A PTS: 1 REF:18 OBJ:


02-2 TYPE: DefTOP: AACSB Analytic| TB&E Model Strategy

22.The acronym SBU refers to:a. stock in business unitsb.

strategic business unit

c. standard business utilizationd.

strategic barter units

e. samples by units

ANS: B PTS: 1 REF:18 OBJ:02-2 TYPE: DefTOP: AACSB Analytic| TB&E Model Strategy


25.An SBU:a. competes with the same

companies as the other SBUs in the parent organization

b.

shares the same mission with all the other SBUs in the parent organization

c. controls its business independent of other SBUs in the organization

d.

usually benefits from the combined corporate raw materials purchases

e. still has strategic planning performed back at corporate headquarters


ANS: CSBUs have separate business functions from one another and have their own mission statements, markets, and planning.



27.After management agrees on a mission statement, it must set objectives. Which of the following is NOT a characteristic of a good objective?a. profitableb.

realistic

c. measurabled.

time-specific

e. consistent

ANS: AGood objectives are not necessarily stated in terms of profit.

PTS:1 REF: 18 OBJ: 02-3


TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Pricing

28. A _____ is defined as a statement of what is to be accomplished through marketing activities.a. mission statementb.

business plan

c. marketing objectived.

goal-driven directive

e. marketing criteria

ANS: C PTS: 1 REF:18 OBJ:


02-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy

30.When an organization creates a mission statement that is too narrow, _____ results.a. marketing synergyb.

marketing myopia

c. directional marketingd.

an internal threat

e. sustainable competitive advantage


ANS: BMarketing myopia defines a business in terms of goods and services rather than in terms of benefits customers seek. See Review Learning Outcome 2.

PTS:1 REF: 18 OBJ: 02-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Product

35.For marketing objectives to be realized, they must meet all of the following criteria EXCEPT:a. be consistent with

organization objectivesb be measurable


.c. be attainabled.

be challenging

e. be set within a one-year time frame

ANS: EThere is no one-year time frame restriction for marketing objectives although specifying a particular time frame makes an objective more clear and precise.



37.A _____ is a formal study conducted by an organization to ascertain its current status and capabilities and its future expectations.a. situation analysisb.

marketing audit

c. trend analysisd.

strategic alternative selection

e. competitive advantage audit

ANS: A PTS: 1 REF:19 OBJ:02-4 TYPE: DefTOP: AACSB Analytic| TB&E Model


Research

39.The SWOT acronym refers to a firm’s analysis of its:a. sales, width of product mix,

observations, and technology

b.

situations, wealth, organizational strengths, and target markets

c. strengths, weaknesses, opportunities, and threats

d.

service levels, willingness to spend, organizational culture, and total revenues

e. strategies, willingness to change, objectives, and


trends

ANS: C PTS: 1 REF:19 OBJ:02-4 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy

43._____ is defined as the collection and interpretation of information about forces, events, and relationships that may affect the organization.a. Market samplingb.

An internal audit

c. Opportunity analysisd Environmental scanning


.e. Stakeholder analysis

ANS: D PTS: 1 REF:19 OBJ:02-4 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Research

61._____ show costs declining at a predictable rate as experience with a product increases.a. Liquidity growth curvesb.

EOQ graphs

c. Breakeven analysesd.

Experience curves


e. Supply/demand curves

ANS: D PTS: 1 REF:20 OBJ:02-5 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Product| TB&E Model Pricing

62.Which of the following is NOT a source of a cost competitive advantage?a. reengineeringb.

experience curves

c. break-even analysesd.

efficient labor

e. production innovation


ANS: C PTS: 1 REF:20-21OBJ:02-5 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Pricing

67.Which of the following is a type of strategic alternative that matches products and markets?a. vertical integrationb.

product penetration

c. divestmentd.

horizontal integration

e. market penetration



68._____ is a strategy of increasing market share for present products in existing markets.a. Market penetrationb.

Product development

c. Market developmentd.

Diversification

e. Product penetration

ANS: A PTS: 1 REF:22 OBJ:


02-6 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy

70._____ is a strategy that attracts new customers to existing products.a. Product developmentb.

Market development

c. Market penetrationd.

Product penetration

e. Diversification



TOP: AACSB Reflective Thinking| TB&E Model Strategy

75._____ is a strategy that creates new products for present markets.a. Product penetrationb.

Market penetration

c. Product developmentd.

Market development

e. Diversification

ANS: C PTS: 1 REF:22 OBJ:02-6 TYPE: DefTOP: AACSB Reflective Thinking|


TB&E Model Strategy

76._____ is the strategy of increasing sales by introducing new products into new markets.a. Product penetrationb.

Product development

c. Market penetrationd.

Market development

e. Diversification

ANS: E PTS: 1 REF:22 OBJ:02-6 TYPE: DefTOP: AACSB Diversity| TB&E Model Strategy| TB&E Model International Perspective


102. A(n) _____ describes and estimates the size and sales potential of market segments of interest to the firm and assesses key competitors in these market segments.a. marketing orientationb.

environmental scan

c. marketing mix auditd.

target market strategy

e. market opportunity analysis



105. The _____ is the unique blend of product, distribution, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market.a. internal environmental mixb.

marketing mix

c. product mixd.

product line

e. market portfolio




106. The starting point of any firm's marketing mix is the:a. analysis of what production

equipment is available and owned by the company

b.

design of the promotion campaign to be used for the product

c. selection of the places through which the good or service will be sold

d.

determination of the product's price, enabling future revenues and budgets to be estimated

e. development of the good or


service to be sold

ANS: EThe product is the starting point for any marketing mix. Without it, pricing, distribution, and promotion are irrelevant. The production capacity can be changed to fit the proposed product.



109. Making sure products are available when and where customers want them is the job of which element of the marketing mix?a. advertising strategiesb.

production strategies

c. product strategiesd.

promotion strategies

e. distribution strategies

ANS: EDistribution strategies make products available when and where customers want them.PTS:1 REF: 25-26 OBJ:02-8 TYPE: Def


TOP: AACSB Reflective Thinking| TB&E Model Distribution| TB&E Model Product


Chapter 4MULTIPLE CHOICE

1. Individuals and organizations utilizing a global vision to effectively market goods and services across national boundaries are engaged in:a. developing international

selling schemesb.

implementing standard international marketing

c. implementing global marketing standardization

d.

supplementing their foreign vision

e. practicing global marketing


ANS: E PTS: 1 REF:47 OBJ:04-1 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model International Perspective| TB&E Model Product

3. Which of the following statements about global marketing is true?a. Marketing to target markets

throughout the world has become an imperative for business.

b.

Often a U.S. firm's toughest domestic competition comes from foreign companies.

c. Marketing managers must develop a global vision not


only to recognize and react to international marketing opportunities but also to remain competitive at home.

d.

Adopting a global vision can be lucrative for a company, and global marketing can offset weak domestic performance.

e. All of these statements about global marketing are true.

ANS: E PTS: 1 REF:47 OBJ:04-1 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model International Perspective


6. Which of the following statements about multinational firms is true?a. Multinationals typically do

not change their methods of reaching their global markets if they are successful with their initial strategy.

b.

Multinationals are defined as companies heavily engaged in exporting and importing.

c. All multinationals must enter the fourth stage of globalization before they are fully internationalized.

d.

Multinationals often develop their global businesses in


stages.e. The five stages of

globalization closely mirror the five stages of the product life cycle.

ANS: DMultinationals can go through up to four stages in their quest to globalize their business. Generally, only high-tech firms ever reach the fourth stage. Multinationals are companies that heavily engage in international trade, beyond exporting and importing.

PTS:1 REF: 49-50 OBJ:04-2 TYPE: CompTOP: AACSB Reflective Thinking|


TB&E Model International Perspective

7. A(n) _____ is a company that is heavily engaged in global trade and moves its resources, goods, services, and skills across national boundaries.a. international facilitatorb.

global trader

c. multinational corporationd.

exporting company

e. international merchant

ANS: C PTS: 1 REF:49-50OBJ:04-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model International


Perspective| TB&E Model Distribution

10.Which of the following describes a common criticism of multinational companies?a. the transference of the

wrong kind of technology to a developing nation

b.

excessive employment information

c. countertradingd.

the transference of labor-intensive technology

e. dumping

ANS: A


Typically, the technology needed to run operations in developing nations is capital-intensive and thus does not substantially increase employment.

PTS:1 REF: 50 OBJ: 04-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model International Perspective

11.A company that is capital-intensive:a. has an altered fiscal strategy

for overseas operationsb.

spends more on equipment than on labor

c. makes better use of benchmarking than other types of business

d creates employment


. monopoliese. must engage in

countertrading due to restrictive foreign legislature

ANS: B PTS: 1 REF:50 OBJ:04-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model International Perspective

13.With a _____, a firm produces standardized products to be sold the same way all over the world.a. traditional marketing

strategyb.

global marketing standardization approach


c. product extension approachd.

culturally based marketing strategy

e. synergistic approach to marketing

ANS: B PTS: 1 REF:50 OBJ:04-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model International Perspective| TB&E Model Product

14.Global marketing standardization:a. is becoming less popular

with the large multinationals

b.

encourages product, packaging, and advertising


variations for each nation or local market

c. actually raises production costs

d.

presumes markets throughout the world are becoming more alike

e. is more popular with consumer products than with industrial goods

ANS: DWith a global marketing standardization approach, a firm produces standardized products to be sold the same way worldwide. This approach assumes all customers have the same needs and wants.


PTS:1 REF: 50 OBJ: 04-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model International Perspective

16.A business thinking of expanding into global markets needs to examine all of the following external environments EXCEPT:a. cultureb.

political structure and actions

c. its marketing mixd.

natural resources

e. demographic makeup


ANS: CThe marketing mix is the keystone of a company's internal environment.

PTS:1 REF: 50 OBJ: 04-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model International Perspective| TB&E Model Strategy


17. Central to any society is a common set of values shared by its citizens that determines what is socially acceptable. Marketers refer to these values collectively as a country's:a. ethical systemb.

culture

c. ethnocentricityd.

national personality

e. socialization

ANS: B PTS: 1 REF:50-51OBJ:04-3 TYPE: DefTOP: AACSB Diversity| TB&E Model Customer


24.Which of the following is an important cultural factor that should be considered by global marketers?a. competitive synergyb.

language

c. natural resourcesd.

technology sensitivity

e. level of economic development

ANS: B PTS: 1 REF:51 OBJ:04-3 TYPE: CompTOP: AACSB Diversity| TB&E Model Strategy


26.Which of the following statements about the political environment is true?a. A recession is part of the

political environment.b.

A country is either socialistic or capitalistic, but never both.

c. The countries with the least across-the-board regulations and political structures foster the strongest economies.

d.

The European Union is purely an economic arrangement and has no political impact on marketing.

e. All of these statements about


the political environment are true.

ANS: CRecession is an economic factor. Countries are a combination of socialism and capitalism. The European Union is a means for the member nations to pursue an economic, monetary, and political union.



31.A tax levied on the goods entering a country is called a(n):a. licenseb.

quota

c. boycottd.

exchange control

e. tariff

ANS: E PTS: 1 REF:52 OBJ:04-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Pricing| TB&E Model Product


33.A(n) _____ is a limit on the amount of a specific product that can enter a country.a. quotab.

tariff

c. boycottd.

exchange control

e. transfer limit

ANS: A PTS: 1 REF:52 OBJ:04-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Product


36.An exclusion of all products from certain countries or companies by a government or group is called a(n):a. expropriationb.

quota

c. tariffd.

exchange control

e. boycott

ANS: E PTS: 1 REF:52 OBJ:04-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Product


39.A(n) _____ is a law that compels a company earning foreign currency from its exports to sell it to a central bank rather than sending the money out of the country.a. tariffb.

quota

c. fiscal prerequisited.

exchange control

e. transfer barrier

ANS: D PTS: 1 REF:52 OBJ:04-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Pricing


40._____ are trade alliances in which several countries agree to work together to form a common trade area that enhances trade opportunities among those countries.a. Boycottsb.

Regional unifications

c. Market groupingsd.

Free trade nations

e. Expropriation members

ANS: C PTS: 1 REF:52 OBJ:04-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy


41.Negotiations (such as GATT or the Uruguay Round) between countries that are made to stimulate global exchange and remove barriers are called _____ agreements.a. tradeb.

joint venture

c. CRMd.

exchange

e. licensing

ANS: A PTS: 1 REF:52 OBJ:04-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy


42._____ is a trade agreement that includes Argentina, Bolivia, Brazil, Chile, Columbia, Ecuador, Paraguay, Peru, and Uruguay. This agreement eliminated the tariffs among these trading partners.a. NAFTAb.

Maastricht

c. WTOd.

GATT

e. Mercosur



43.The latest round of World Trade Organization (WTO) talks has been contentious. A major goal of this _____ is to bolster the developing economies of Africa, Asia, and Latin America where up to two-thirds of the population works in agriculture.a. Mercosur covenantb.

CAFTA Alliance

c. Doha Roundd.

Uruguay Round

e. WTO Round

ANS: C PTS: 1 REF:52-53OBJ:04-3 TYPE: Def


TOP: AACSB Reflective Thinking| TB&E Model International Perspective

44.The _____ of trade negotiations created the _____, which replaces GATT. This trade agreement dramatically lowers trade barriers worldwide.a. Uruguay Round; World

Trade Organizationb.

Doha Round; European Union

c. Doha Round; NAFTAd.

Paraguay Round; South American Free Trade Agreement

e. Mercosur; European Union


ANS: AThe Uruguay Round created the WTO.

PTS:1 REF: 53 OBJ: 04-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy

45.The _____ is the most ambitious global trade agreement ever negotiated; the agreement has reduced tariffs by one-third worldwide.a. Uruguay Roundb.

Mercosur

c. GATTd.

NAFTA

e. Maastricht Treaty


ANS: A PTS: 1 REF:52-53OBJ:04-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy

46.The North American Free Trade Agreement (NAFTA) did NOT:a. create the world's largest

free-trade zone including Canada, the United States, and Mexico

b.

substantially reduce economic growth in Mexico

c. allow U.S. and Canadian financial-services companies to own subsidiaries in Mexico


d.

remove many tariffs and duties so that Mexico, Canada, and the United States can trade more freely

e. expand opportunities for U.S. businesses in Mexico

ANS: BOver the years, Mexico has made economic gains due to NAFTA.

PTS:1 REF: 53 OBJ: 04-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Distribution


48.The goal of the Central America Free Trade Agreement (CAFTA) is to:a. create free-trade agreements

between the United States and other industrialized nations

b.

eliminate all protectionism

c. raise prosperity levels in all industrializing nations

d.

establish a free trade agreement between the United States and certain Latin American countries

e. make sure all nations achieve the economic and technological development of a takeover economy or better


ANS: D PTS: 1 REF:53 OBJ:04-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy


49.Which of the following statements about the European Union (EU) is true?a. The EU creates a single

Europroduct for a generic Euroconsumer.

b.

The EU removes all internal trade barriers and standardizes regulations in European countries for easier trade.

c. The EU can correctly be called the "United States of Europe" because all European voters have agreed to these changes.

d.

The existence of the EU eliminates protectionist


movements by United Europe against the Japanese and the United States.

e. None of these statements about the EU is true.

ANS: EBecause of diverse languages and cultures, no "United States of Europe" or a generic Euroconsumer results from United Europe. There exists the possibility of a protectionist movement and increased competition. It does not eliminate all trade barriers.

PTS:1 REF: 54 OBJ: 04-3 TYPE: CompTOP: AACSB Reflective Thinking|


TB&E Model Strategy

51.A multinational company that makes a labor-intensive product would be interested in the _____ makeup of countries. Factors such as median age, gender, and literacy rates would determine the success of its global expansion.a. demographicb.

lifestyle

c. naturald.

cultural

e. economic

ANS: A


Demographics include age and educational levels as well as ethnicity and gender.

PTS:1 REF: 54-55 OBJ:04-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model International Perspective


54.Vast differences in natural resources create all of the following EXCEPT:a. potential for military

interventionb.

shifts in wealth between nations

c. inflation and recessiond.

global dependencies

e. export opportunities for countries with no natural resources

ANS: E


While differences do create shifts in wealth, dependencies, inflation, recession, and the potential for conflict, they only hinder opportunities for the countries that do not have resources.


55.Which method of entering the global marketplace would be LEAST risky?a. exportingb.

licensing

c. contract manufacturingd joint ventures


.e. direct investment

ANS: ASee Exhibit 4.1.


63.A(n) _____ is a global intermediary that operates primarily in agriculture and raw materials by bringing the buyer and seller together.a. buyer for exportb export agent


.c. license agentd.

import agent

e. export broker


64.A cooperative of egg producers believes a profitable market for eggs exists overseas where people are not as concerned about cholesterol. If the cooperative decides to export, it will most likely use a(n):a. commission merchant


b.

drop shipper

c. export brokerd.

import agent

e. export agent

ANS: CExport brokers typically handle agriculture and raw materials.

PTS:1 REF: 56 OBJ: 04-4 TYPE: AppTOP: AACSB Analytic| TB&E Model Product


65._____ are foreign sales agents-distributors who live in a foreign country and represent a domestic company in sales situations. They perform the same functions as domestic manufacturers' agents who help with financing and shipping.a. Export agentsb.

Export brokers

c. Import brokerd.

Buyers for export

e. Licensing agents

ANS: A PTS: 1 REF:56 OBJ:04-4 TYPE: DefTOP: AACSB Reflective Thinking|


TB&E Model Strategy

66.The _____ is an intermediary in the global market who assumes all risks and sells globally for its own account. The domestic manufacturer usually treats it like a domestic customer.a. buyer for exportb.

export agent

c. joint venturerd.

contract manufacturer

e. market group

ANS: A PTS: 1 REF:55 OBJ:04-4 TYPE: DefTOP: AACSB Reflective Thinking|


TB&E Model Customer



1. A(n) _____ is an interactive, flexible information system that enables managers to obtain and manipulate information as they are making decisions.a. expert systemb.

marketing information system

c. artificial intelligence systemd.

marketing decision support system

e. database marketing system

ANS: D PTS: 1 REF:113 OBJ:08-1 TYPE: Def


TOP: AACSB Technology| TB&E Model Strategy

2. _____ is the creation of a large computerized file of customers' and potential customers' names, profiles, and purchase patterns.a. Electronic targetingb.

Sampling procedure specification

c. Database marketingd.

Competitive data mining

e. Consumer behavior marketing

ANS: C PTS: 1 REF:113 OBJ:08-1 TYPE: Def


TOP: AACSB Technology| TB&E Model Strategy

3. A true marketing decision support systems (DSS) should be:a. flexibleb.

discovery-oriented

c. interactived.

accessible

e. All of the choices describe true marketing decision support systems.

ANS: E PTS: 1 REF:113 OBJ:08-1 TYPE: CompTOP: AACSB Technology| TB&E


Model Strategy

4. According to the text, a true marketing decision support system should be:a. reactiveb.

customer-oriented

c. interactived.

rigorous

e. descriptive

ANS: CA true DSS should be flexible, interactive, discovery-oriented, and accessible.


PTS:1 REF: 113 OBJ: 08-1 TYPE: DefTOP: AACSB Technology| TB&E Model Strategy

5. To help understand why attendance at the team’s games was so poor, the Atlanta Falcons used marketing research to gather factual information. The organization used in-game surveys and end-of-season surveys of ticket holders. The gathering of factual statements is an example of marketing research in its _____ role.a. historicalb.

descriptive

c. predictived normative


.e. objective

ANS: BThe data were gathered and presented as factual statements.

PTS:1 REF: 114 OBJ: 08-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research


6. Through marketing research, the Boston Symphony Orchestra (BSO) learned it has an older market and is not attracting younger concertgoers. It next conducted marketing research to determine if an integrated advertising campaign targeted to the younger market would be successful. In its second use of research, BSO employed _____ marketing research.a. historicalb.

descriptive

c. predictived.

normative

e. objective


ANS: CThe BSO used previously gathered data to predict the success of an advertising campaign.


7. _____ is the process of planning, collecting, and analyzing data relevant to marketing decision making. The results of this analysis are then communicated to management.a. Data collectionb.

Artificial intelligence

c. Decision support


d.

Marketing research

e. Single-source research

ANS: D PTS: 1 REF:114 OBJ:08-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Research

8. A bowling alley operator could use _____ to determine why customers do not seem to like his bowling alley's new location.a. transactional marketingb.

public relations

c. an EDI systemd market synergy


.e. marketing research

ANS: EMarketing research can be used by management to trace problems and their causes.



9. Soon after the Harriet Tubman Museum expanded its hours and began charging a small fee to pay for the extra help needed to keep it open longer, attendance decreased. To determine why this decrease in attendance occurred, the museum staff could rely on:a. a production auditb.

database marketing

c. marketing researchd.

an internal marketing audit

e. secondary data

ANS: C


Marketing research could be used to find out why attendance declined.


10.The publisher of a Canadian business magazine wanted to make several major changes in the magazine's content and format. To determine what changes would be supported by its subscribers and what changes would not be welcomed, the publisher should engage in:a. advertisingb.

database marketing


c. marketing researchd.

a data retrieval system

e. secondary data

ANS: CMarketing research would be appropriate to use to determine how the publisher could provide greater customer satisfaction.


11.Marketing managers can use marketing research to:


a. improve the quality of their decision making

b.

find out why a marketing plan failed

c. learn how to more efficiently retain customers

d.

understand the ever-changing marketplace

e. do all of these

ANS: E PTS: 1 REF:114-116OBJ: 08-2 | 08-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Research

12.Marketing managers would typically use marketing research to:a. eliminate any guesswork in


decision makingb.

implement a sales promotion

c. handle an individual customer's complaint

d.

determine why a new product failed

e. do all of these

ANS: DMarketing research is used to determine why marketing plans failed.

PTS:1 REF: 114 OBJ: 08-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Research


13.Marketing research has three functional roles. These roles are:a. normative, descriptive, and

explanatoryb.

predictive, normative, and persuasive

c. descriptive, diagnostic, and predictive

d.

flexible, interactive, and discovery-oriented

e. descriptive, explanatory, and predictive

ANS: C PTS: 1 REF:114 OBJ:08-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Research


14.A manufacturer of an all-natural fruit and veggie bar targeted to people who want nutritious snacks has asked for marketing research to explain the reasons for the recent failure of its Apple-Broccoli bar. This type of research is described as:a. descriptiveb.

predictive

c. diagnosticd.

normative

e. historical

ANS: C


One of the roles of marketing research is to be diagnostic and to explain what happened.


15.Volkswagen developed an 18-month-long project to gain a better understanding of the American culture so it could develop cars more appealing to this market. The research project was called Moonraker. Moonraker was intended to play a(n) _____ role in Volkswagen's marketing research.a. diagnosticb descriptive


.c. predictived.

heuristical

e. demonstrative

ANS: BOne of the roles of marketing research is the gathering of descriptive data, which includes reporting consumers’ attitude toward products.

PTS:1 REF: 114 OBJ: 08-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research| TB&E Model Customer


16.The first step in the marketing research process is to:a. specify the sampling planb.

collect the data

c. analyze the marketplaced.

plan the research design

e. identify and formulate the problem/opportunity to be studied

ANS: E PTS: 1 REF:114 OBJ:08-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Research


17.There are five Major League Baseball markets with more than one team. So far this season, the average combined attendance for the Chicago Cubs and the Chicago White Sox ranks lowest. Before conducting any marketing research to explain low attendance figures, the teams will need to:a. determine who will be most

likely to respond to a surveyb.

select a market sample from everyone in the population

c. define the problem to be researched

d.

develop a survey to find out exactly what's wrong

e. enumerate the decision factors


ANS: CTo respond to a symptom, one should find out what the underlying problem is. See Exhibit 8.1.

PTS:1 REF: 114-115 OBJ:08-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research


18.A small confectionary company has noticed a 20 percent decrease in the sale of its milk chocolate candy over the last three years. The company’s owner wants to determine why the decline has occurred and how to reverse the trend. Once the owner has identified the problem as a consumer perception that dark chocolate provides more health benefits, its next step in the marketing research process should be to:a. collect the datab.

recognize the marketing problem

c. analyze the marketplaced.

plan the research design

e. specify the sampling plan


ANS: DSee Exhibit 8.1.


19.Volkswagen lost more than $1 billion in its U.S. operations in two recent years. In which step of the marketing research project, would the Volkswagen engineers (who were raised in the no-nonsense cockpits of German cars) realize the problem was that they were not designing cars for Americans who use their cars like a second office?


a. the research design stepb.

the data collection step

c. the data analysis stepd.

the problem formulation step

e. none of the choices

ANS: DDefining (or in this case realizing) the problem is the first step of the marketing research process. The research will not produce usable results if this step is not done correctly. See Exhibit 8.1.

PTS:1 REF: 115 OBJ: 08-3 TYPE: App


TOP: AACSB Reflective Thinking| TB&E Model Research| TB&E Model Customer

20.Research by Morgan Stanley revealed that 72 percent of the U.S. residents are willing to try flavored colas. Since the cola industry is stagnant in most areas of the country, this is important information. Marketing research on how best to use this information will begin with the:a. collection of the datab.

specification of the sampling plan

c. implementation of employee empowerment

d.

research design


e. recognition of the marketing opportunity

ANS: EMarketing research can hone in and clarify where the best opportunities lie. See Exhibit 8.1.

PTS:1 REF: 114 | 115 OBJ:08-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research

21.The marketing research problem:a. is information orientedb.

involves determining what resources will be used in research efforts


c. is action drivend.

does not rely on managerial experience

e. is accurately described by none of these choices

ANS: A PTS: 1 REF:114 OBJ:08-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Research

22.In contrast to marketing research problems, management decision problems are:a. action orientedb.

pervasive

c. narrower in scope


d.

synergistic

e. information oriented


23.Managers must combine specific pieces of information needed to identify the marketing research problem. Their _____ is to provide insightful decision-making information.a. company-correlated goalb.

autonomous task

c. dichotomous goal


d.

marketing research objective

e. field service objective

ANS: D PTS: 1 REF:114 | 115OBJ: 08-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Research


24.Post Properties is a company that manages apartments in various communities. It is concerned with a glut of apartments in Atlanta, Orlando, and Dallas Its market researcher begins by examining the rental markets in the Southeast, the history of apartment buildings, local economies, competitive rents, and ownership--all information that was on hand and did not require any new research to locate. The market researcher looked at:a. a closed studyb.

secondary data

c. primary datad.

a statistical analysis

e. priority databases


ANS: B PTS: 1 REF:115 OBJ:08-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research

25.Data previously collected for purposes other than the one at hand are an important source of information as the researcher defines the problem. These data are called _____ data.a. single-sourceb.

secondary

c. primaryd.

consensual

e. convenience


ANS: B PTS: 1 REF:115 OBJ:08-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Research

26.Market research firms, commercial publications, and government data can be used as sources of:a. secondary datab.

consensual information

c. primary datad.

artificial intelligence

e. marketing audits


ANS: AData previously collected for purposes other than the one at hand are an important source of information known as secondary data.



27.So far this season, the average combined attendance for the Washington Nationals and Baltimore Orioles ranks fourth of the five major league markets with more than one team. Research done by the Washington Post shows attendance in the Baltimore-Washington region trails Los Angeles, New York and San Francisco-Oakland but is slightly ahead of Chicago. Major League Baseball would be using _____ data if it used this research to determine how competition affects attendance figures.a. convenienceb.

primary

c. dichotomousd secondary


.e. observation

ANS: DData previously collected for purposes other than the one at hand are an important source of information known as secondary data.



28.A few years ago, TNT cable channel began using the slogan "TNT knows drama" to reflect a change in its programming focus. Now it wants to determine how its viewership has changed since it changed its focus. It has decided to use secondary data to determine if its viewers' demographics have changed. A potential disadvantage of this research plan is:a. the difficulty of holding

certain variables constant while varying one factor of interest

b.

the high cost of collecting secondary data

c. the length of time it takes to collect secondary data

d interviewer bias during the


. collection processe. the information not fitting

the needs of the research problem

ANS: ESecondary data have been previously collected for some other purpose and may not fit the current research problem.

PTS:1 REF: 115 OBJ: 08-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research| TB&E Model Marketing Plan


29.When assessing the quality of secondary data, it is:a. not necessary to know why

the data were collected in the first place

b.

important to be able to have easy access to the data

c. important to know the purpose for which the data were originally collected

d.

not important to know when the data were collected

e. imperative to use the same methods and procedures when primary data are collected

ANS: C


To assess the quality of the data, it is important to know when, where, why, and how the data were originally collected.


30.Research done by Morgan Stanley revealed that 72 percent of the U.S. residents are willing to try flavored colas. The research also showed which flavors were most desired. Cola producers using this information provided to them by Morgan Stanley would be using _____ data.a. primary


b.

secondary

c. dichotomousd.

observation

e. convenience

ANS: BIt is secondary data, which have been previously collected for some other purpose and may not fit the current research problem.



31.A(n) _____ is a company that acquires, catalogs, reformats, segments, and resells reports already published by marketing research firms.a. information vendorb.

subject directory

c. market research aggregatord.

search engine

e. Internet directory

ANS: C PTS: 1 REF:116 OBJ:08-3 TYPE: DefTOP: AACSB Technology| TB&E Model Online/Computer


32._____ specifies the research questions to be answered, how and when the data will be gathered, and how the data will be analyzed.a. A secondary data use planb.

The research collaborative plan

c. An autonomous directord.

The research design

e. The sampling plan

ANS: D PTS: 1 REF:116 OBJ:08-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Research

33.The research design specifies:


a. follow-up procedures for the research

b.

the information that will be found

c. how the final report will be written

d.

how the information gathered will be used to predict external environmental changes

e. the research questions to be answered

ANS: E PTS: 1 REF:116-117OBJ: 08-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Research


34.Pulte Homes, a national home builder, needs to control costs. Research done by Pulte Homes determined that 80 percent of its homebuyers selected the same countertops, floors, carpets, and toilets. Pulte Homes used these _____ data to cut its costs by reducing the variety of options offered without having any effect on the majority of its buyers.a. primaryb.

secondary

c. dichotomousd.

convenience

e. ethnographic


ANS: APrimary data are information that is gathered for the first time for solving a particular problem.

PTS:1 REF: 116 OBJ: 08-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research| TB&E Model Customer


35.An engineer of Volkswagen America spent three and a half hours on a Greyhound bus to experience the vast distances Americans travel in their automobiles and to try to understand why Americans treat their automobiles as rolling extensions of their living rooms. What kind of data did the engineer collect?a. heuristicb.

primary

c. cohesived.

random

e. secondary

ANS: B


Primary data are information that is gathered for the first time for solving a particular problem.


36.Information collected for the first time for the purpose of solving a particular problem under investigation is called _____ data.a. primaryb.

secondary

c. dichotomousd.

observation


e. convenience


37.To determine new product opportunities, British Colombia's Sun-Rype Products conducted focus groups in which it learned Canadians are having trouble getting their required servings of fruits and vegetables each day--especially the vegetables. It gathered _____ data.a. heuristicb.

primary


c. consensuald.

random

e. collaborative

ANS: B PTS: 1 REF:117 OBJ:08-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research


38.Stair Specialist, Inc. builds customized circular staircases for homes in southern California. Its sales have plateaued. Nothing it does seems to change its sales picture. Its owner has asked you to advise the company on what it should do to increase its sales. Which of the following is an example of primary data that could be used for examining this marketing research problem?a. data from a study of new

home start-ups in southern California

b.

an article in a construction trade journal predicting fewer housing starts during the next decade

c. industry predictions that the


number of new homes built in the Southwest will increase by 15 percent

d.

information from the Los Angeles Yellow Pages showing the number of building contractors has declined over the past five years

e. none of the choices

ANS: EInformation collected for the first time for the purpose of solving a particular problem under investigation is called primary data. All of these data are examples of secondary data.



39.Mel and Mimi is the name of an upscale boutique that has outgrown the building it has been located in for the last two decades. Its owners want to know how its customers will react to a move and if the addition of new product lines will make the new location more attractive to its loyal customers. The store's owners have surveyed several of their customers to gauge their reaction to various potential locations and changes in product lines. The survey results are an example of _____ data.


a. primaryb.

secondary

c. dichotomousd.

observation

e. collaborative

ANS: AInformation that is collected for the first time for the purpose of solving a particular problem under investigation is called primary data.

PTS:1 REF: 116 OBJ: 08-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research| TB&E Model


Customer

40.What is the chief advantage of primary data?a. low cost compared to

secondary datab.

relevance to the problem at hand

c. availability to any interested party for use

d.

accessibility through computerized databases

e. avoiding interviewer biases

ANS: B


Primary data are information collected for the first time for the purpose of solving a particular problem under investigation.




1. A _____ is a group of people or organizations that has wants and needs that can be satisfied by particular product categories, has the ability to purchase these products, and is willing to exchange resources for the products.a. firmb.

buyer

c. marketd.

consumer

e. target

ANS: C PTS: 1 REF:97 OBJ:



2. A group of middle school students stop by a sporting goods store. The store has just received a new shipment of high-end racing bicycles. The bicycles range in price from $1,200 to $3,000. All of the students want one of these new bikes, but none has the means to buy one. Is this group of consumers a potential market for the expensive bikes?a. Yes, they are a potential

market since they are all about the same age.

b.

No, they do not have the ability to purchase at this


time.c. No, to qualify as a market,

they must need the product.d.

Yes, they are a market because this product could satisfy their consumer wants and desires.

e. Yes, they are a market because this group shares relatively similar product needs and purchasing characteristics.

ANS: B


A market is a group of people or organizations that has wants and needs that can be satisfied by particular product categories, has the ability to purchase these products, and is willing to exchange resources for the products. There is no suggestion of ability in this case.


3. A market is people or organizations that have:a. the ability, willingness, and

power to buyb a medium of exchange and


. products they desirec. needs and wants and an

ability and willingness to buy

d.

unmet needs or wants and products or services that satisfy those unmet needs or wants

e. communication, financial, and capital resources

ANS: CA market is defined as having four imperative characteristics: people or organizations, needs and wants, ability, and willingness to buy.

PTS:1 REF: 97 OBJ: 07-1



4. A(n) _____ is a subgroup of individuals or organizations sharing one or more characteristics that cause them to have relatively similar product needs.a. market universeb.

market segment

c. aggregated marketd.

segmentation base

e. population sample




5. _____ is the process of dividing a market into meaningful groups that are relatively similar and identifiable.a. Perceptual mappingb.

Positioning

c. Micromarketingd.

Market sampling

e. Market segmentation

ANS: E PTS: 1 REF:97 OBJ:07-1 TYPE: DefTOP: AACSB Reflective Thinking|


TB&E Model Strategy

6. E&V Bridal Studios is a wedding consulting business designed to appeal to East Asians. At one time it used the same marketing mix for all of its customers, but it has discovered that it needs a different marketing mix to appeal to its ethnic customers. For example, Chinese brides want elaborate red gowns, and Vietnamese brides wear a brocaded gown with long sleeves and a Mandarin collar. E&V Bridal Studios uses a procedure called _____ to divide its large market.a. micromarketingb.

positioning

c. market segmentation


d.

cannibalization

e. perceptual mapping

ANS: CDividing one large market into divisions based on a variable such as size is called market segmentation.


7. The purpose of market segmentation is to:a. reduce the market down to a

specific size that the firm


can handleb.

divide the market into equal size and profit regions for sales territories

c. group a large number of markets together enabling a company to serve them simultaneously

d.

develop a generalized definition of the market as a whole

e. enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups

ANS: E


The purpose of segmentation is to group similar consumers and to serve their needs with a specialized marketing mix.



8. Hildy Webb and LaTishe Brown own Creative Catering and would like to improve customer satisfaction and increase repeat business. When you ask them to describe a typical customer, they say it is impossible and explain that with corporate functions, family affairs, and fund-raisers, they do not have a typical customer. You suggest it is time for market segmentation because:a. it will enable them to build

an accurate description of customer needs by group and to design a marketing mix to fit each segment

b.

Creative Catering needs to reduce the size of the market it serves


c. Creative Catering needs to learn how to group these markets together into one market to serve all of them adequately

d.

it will help develop a generalized definition of the market as a whole and reveal the optimal marketing mix for this market

e. this will position the company in the minds of its consumers as compared to its competitors

ANS: A


The purpose of segmentation is to group similar consumers and to serve their needs with a specialized marketing mix.


9. Market segmentation can assist marketers to do all of the following EXCEPT:a. develop more precise

definitions of customer needs and wants

b.

identify which variable base should be used for segmenting


c. more accurately define marketing objectives

d.

improve resource allocation

e. evaluate performance

ANS: BMarket segmentation itself does not signal which base should be used, but it will define needs and wants, and help marketers define marketing objectives, improve resource allocation, and evaluate performance.



10.The process of market segmentation involves breaking down a heterogeneous market into homogeneous and identifiable segments. If this process is carried to its extreme, then one could say that:a. this is the reason

segmentation cannot be used by small firms

b.

all individuals have the same needs in spite of cultural differences

c. everyone belongs to the same segment

d.

segmentation controls the demand for products

e. every individual in the world is a market segment


ANS: EThe ultimate segmentation would have each individual occupying his or her own segment, because everyone has somewhat different needs.

PTS:1 REF: 97-98 OBJ:07-1 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer


11.ProtecTV is a product that selectively mutes words and phrases some people find objectionable. It can be connected to a television, VCR, DVD player, or a satellite TV system. The manufacturer of ProtecTV targeted parents who did not want their children exposed to what they consider to be offensive language. The primary market segment for ProtecTV is:a. all parentsb.

educators

c. children under the age of 12d.

parents with preteens in their households

e. all those interested in screening out offensive language


ANS: D PTS: 1 REF:97 OBJ:07-1 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Customer

12.Market segmentation helps businesses to:a. define customer needs and

wants more preciselyb.

more accurately define marketing objectives

c. more efficiently allocate resources

d.

better evaluate their performances

e. do all of these things


ANS: E PTS: 1 REF:97-98OBJ:07-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy

13.Which of the following is NOT one of the four criteria identified in the text for successful market segmentation?a. substantialityb.

identifiability and measurability

c. accountabilityd.

accessibility

e. responsiveness

ANS: C


The four criteria are substantiality, identifiability and measurability, accessibility, and responsiveness.

PTS:1 REF: 98 OBJ: 07-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy

14.To be useful, a segmentation scheme must produce segments that meet four basic criteria. The criteria are:a. segmentable, targetable,

reliable, and homogeneousb.

tangibility, flexibility, causality, and accessibility

c. substantiality, identifiability and measurability, accessibility, and


responsivenessd.

reliability, flexibility, tangibility, and accessibility

e. responsiveness, reliability, homogeneity, and causality

ANS: C PTS: 1 REF:98 OBJ:07-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy


15.A manufacturer of lenses used in microscopes, binoculars, and telescopes has segmented its market into scientific equipment manufacturers, sporting equipment manufacturers, and retailers who sell replacement lenses. In order for this segmentation scheme to be successful, all of the following criteria must be met EXCEPT:a. substantialityb.

accessibility

c. identifiability and measurability

d.

complexity

e. responsiveness


ANS: DComplexity is not a criterion; simplicity would be preferred.


16.According to the criterion of _____ a selected segment must be large enough to warrant developing and maintaining a special marketing mix. Serving the specific needs of this segment must be commercially viable, even if the number of potential customers is small.a. causalityb accountability


.c. responsivenessd.

accessibility

e. substantiality



17.The marketing researcher for Chickadee, a manufacturer of designer clothing for infants and toddlers, has submitted a report on potential segments for expansion of its marketing efforts. She noted an increase of professional women over the age of 35 who are leaving their jobs to have their first babies. She described this segment as having substantiality. This means it:a. has enough special stores,

magazines, and other outlets that it will be possible to direct advertisements at this group

b.

is large enough to permit a profitable market effort toward its members


c. exhibits a response rate to marketing variables different from the rates of other segments

d.

is too large and needs to be reduced to a more easily identifiable and measurable size

e. will be difficult to develop a product to match this group of buyers

ANS: B


Substantiality means the selected segment will be large enough to warrant developing and maintaining a special marketing mix. Serving the specific needs of this segment must be commercially viable, even if the number of potential customers is small.



18.DCS Corporation makes barbecue grills. It has expanded into high-priced, multi-purpose grills for people who want to be able to cook all their food outside. Facing little competition, DCS designed an excellent line of specialty grills, had good distribution, used effective promotion with this market, and within four years had a respectable market share. Yet financial losses every year have caused DCS to decide to drop this line. The reason could be that this market segment, relative to the resources devoted to it, lacked:a. reliabilityb.


c. substantialityd accessibility


.e. causality

ANS: CSubstantiality means the selected segment is large enough to warrant developing and maintaining a special marketing mix. Serving the specific needs of this segment must be commercially viable. Based on four years of losses, this one apparently was not.

PTS:1 REF: 98 OBJ: 07-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Product


19.United Social Service Agency wants to identify segments by their readiness to participate in a drug and alcohol program or in prenatal care. The agency will need to gauge whether there are enough people to justify setting up the service. The FIRST segmentation criterion problem that would greet this proposal is:a. responsivenessb.


c. accessibilityd.

substantiality

e. responsibility

ANS: B


Identifiability and measurability is the first problem: how many people who are willing, indifferent, or unwilling to participate are there? The agency needs this number to gauge if there are enough of them. If there were enough of them, they would probably be responsive to a special program.



20.The city of Blossom Valley has a job training program for the homeless but has had a difficult time reaching this group with information about the program even though radio and television stations have provided public service advertisements free of charge. This illustrates a segmentation problem with:a. substantialityb.


c. responsivenessd.

accessibility

e. accountability

ANS: D


Accessibility is the ability to communicate information about the product offering to the segment.

PTS:1 REF: 98 OBJ: 07-3 TYPE: AppTOP: AACSB Reflective Thinking| AACSB Communication| TB&E Model Promotion

21.Market researchers estimate thousands of Americans have high blood pressure and do not know it because they do not have annual medical exams. A pharmaceutical company that has developed a medicine to reduce blood pressure should not count on this group to be a good target market because the group lacks:


a. both accessibility and responsiveness

b.

accountability

c. both accessibility and substantiality

d.

substantiality, identifiability, and measurability

e. reliability and responsiveness

ANS: AMarketers cannot reach someone who does not know he or she has a problem and if he or she is reached, there will be no response.



22.SRD Research Firm has conducted marketing research on the market for concrete siding for homes. The research firm has determined there are thousands of homeowners who want the security, safety, warmth, and stability provided by concrete siding. These homeowners are generally married and between 25 and 54 years of age. They tend to live in suburban neighborhoods and most subscribe to lifestyle magazines. If you were interpreting these results, you might suggest that SRD:


a. conduct additional research because it has no idea about the measurability of its segments

b.

examine the research report again to see if it can determine segment accessibility

c. conduct a follow-up analysis to determine if the segments it might choose would respond differently from other segments to its marketing strategy

d.

not segment the concrete siding market because the only market for siding is contractors who build the homes


e. segment the concrete siding market based on the information provided and concentrate its efforts on suburban homeowners between 25 and 54 who read lifestyle magazines

ANS: CThe only criterion SRD has not determined is market responsiveness.



23.Every six months or so, some manufacturer introduces a new shape or color for the boxes that house the hardware to run PCs. These companies contend beige is boring, and people are ready for "something fun." These manufacturers ignore the fact most Americans like their technology in plain wrappers. These bright colors and odd shapes have failed because the market segment to which they are targeted lacks:a. substantialityb.


c. responsivenessd.

reliability

e. accessibility


ANS: CIt is not difficult to locate the large market for PCs—they are readily identifiable and accessible for other computer products. They are just not responsive to the oddball designs and colors.


24.The requirement for a market segment to be responsive means:a. over half of the consumers

in the identified segment will


be actively interested in the product

b.

all the segments identified by a marketer should respond to the marketing mix

c. all the segments identified by a marketer should not respond to the marketing mix

d.

the segments identified by a marketer should not differ in the level of their responsiveness to the marketing mix

e. the segment identified by a marketer should differ in how it responds to the marketing mix when


compared to another segment confronted with the same mix

ANS: EThe target segment should respond differently to the market mix compared to other segments.



25.If a market segment is especially motivated by coupons in newspapers, which segmentation success criterion is most influential in the success of this program?a. responsivenessb.


c. substantialityd.

accessibility

e. functionality

ANS: AResponsiveness is in force when a target segment responds differently (hopefully more positively) to the marketing mix than other segments.


PTS:1 REF: 98 OBJ: 07-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy| TB&E Model Promotion

26.The Middleton Health Club has a new fitness program for expectant mothers. After fliers were placed at the offices of area obstetricians, Middleton's class filled up within two days. Which segmentation success criterion was most influential in the success of this promotion?a. substantialityb.

identifiability

c. measurability


d.

causality

e. responsiveness

ANS: EResponsiveness is in force when a target segment responds differently (hopefully more positively) to the marketing mix than other segments.



27._____ are characteristics of individuals, groups, or organizations that marketers use to divide a total market into segments.a. Differentiation guidesb.

Segmentation bases

c. Perceptual mapsd.

Responsiveness quotients

e. Accessibility quotients



28.E&V Bridal Studios is a wedding consulting business targeted to East Asians. It accommodates the various cultures by providing services to appeal to Koreans, Vietnamese, Chinese, and Japanese customers. E&V Bridal Studios markets its services to its customers by using ethnicity to divide its customers into segments. Ethnicity is its primary:a. perceived imageb.

accessibility quotient

c. environmental controld.

segmentation base

e. differentiation guide


ANS: DA segmentation base is the characteristic used to segment the market.


29.Listerine Essential Care toothpaste is designed to reduce plaque and to prevent gingivitis. Its ads state, "After age 35, 3 out of 4 adults have some form of gum disease." The toothpaste is targeted to the market segment over the age of 35. This age variable that has been used to distinguish the market for this toothpaste is an example of a(n):


a. perceived variableb.


c. mass marketd.

segmentation base


ANS: DA segmentation base is the characteristic used to segment the market.



30.Military Spouses is the only publication in the world that targets readers who "are married to the military." Its content reflects the unique set of challenges, hardships, and rewards to those whose spouses are in the military. The marital status that has been used to distinguish the market for this magazine is an example of a(n):a. perceived variableb.


c. mass marketd.

segmentation base


ANS: D


A segmentation base is the characteristic used to segment the market.




1. The processes individuals use when making a purchase decision are called _____. This is also the reason individuals recognize and respond to the distinctive lettering used on Coca-Cola cans, the shape of the Nike swoosh, and the color of a can of Campbell soup.a. consumer behaviorb.

marketing

c. consumerismd.

perceptual mapping

e. database mining


ANS: AConsumer behavior describes how consumers make purchase decisions.

PTS:1 REF: 63 OBJ: 05-1 TYPE: DefTOP: AACSB Analytic| TB&E Model Customer

2. Marketers often study _____, the processes used and the factors that influence the consumer when making purchase decisions.a. psychographicsb.

business buying behavior

c. consumerismd consumer behavior


.e. perceptual mapping

ANS: D PTS: 1 REF:63 OBJ:05-1 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer

3. The steps of the consumer decision-making process in order are:a. need recognition, alternative

aggregation, reevaluation, purchase decision, postpurchase behavior

b.

need positioning, stimulus response reactions, evaluation of alternatives, purchase decision,


postpurchase behaviorc. need positioning, alternative

aggregation and divestment, purchase decision, postpurchase evaluation

d.

information search, need positioning, evaluation of alternatives, product trial, purchase decision, postpurchase satisfaction

e. need recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation

ANS: E PTS: 1 REF:63 OBJ:05-2 TYPE: Def



4. As a result of hearing the adventures of returning soldiers, Monroe decided to enlist in the U.S. Army. These stories he heard from the soldiers acted as:a. affective statesb.

external stimuli

c. internal stimulid.

purchase outcomes

e. a dissonance creator

ANS: B


The adventures he heard were stimuli that were not physiological.

PTS:1 REF: 64 OBJ: 05-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model International Perspective

5. Hector loves cola and is always on a diet. He will only drink Diet Coke. When offered a Diet Pepsi one afternoon as an alternative, he refused to even consider it as part of his evoked set even though he generally drinks a soft drink about the time of day the offer was made. This illustrates that Hector:a. is satisfying a wantb is satisfying a need


.c. is satisfying a beliefd.

has a physiological drive

e. has a need motivator

ANS: AA want is often brand specific, whereas a need is something an individual depends on to function efficiently. A person may need food but wants specific brands.

PTS:1 REF: 64 OBJ: 05-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Product


6. Which of the following is the BEST example of an internal stimulus that would create need recognition?a. a friend comments on how

shabby your coat looksb.

a radio station runs an ad for a new video game rental store

c. a headached.

an invitation to a graduation for which you need a gift

e. a billboard promoting a new national Internet service provider

ANS: C


Aches and pains are generated internally by your body without outside inputs from anything or anyone.


7. After a need or want is recognized, a consumer may be motivated to clarify the options available and generate an evoked set of brands. This occurs during which part of the consumer decision-making process?a. evaluation of alternativesb.

information search

c. cognitive dissonance


d.

consideration stage

e. product identification


8. While Martin was looking at the DVDs at Wal-Mart, he was trying to remember the name of the horror movie he saw that starred Bruce Campbell so he could buy the DVD. This is likely to occur during which part of the consumer decision-making process?a. antecedent state


b.

need recognition

c. external information searchd.

alternative evaluation

e. internal information search

ANS: EAfter a need or want is recognized, a consumer may be motivated to search for information. In this case, the information was already stored in his memory.



9. The types of products people purchase using only an internal search are typically:a. frequently purchased, low-

cost itemsb.

frequently purchased, high-cost items

c. infrequently purchased, low-cost items

d.

infrequently purchased, high-cost items

e. all types of items, regardless of price or frequency of purchase

ANS: A


Information about frequently purchased, low-cost items is stored in an individual's memory and is sufficient knowledge for the purchase decision.


10.Which of the following products would most likely require the purchaser to use only an internal information search?a. a veterinarian for a new

puppyb.

a day-care facility for a two-month-old infant


c. a wedding gownd.

a tube of toothpaste

e. an anniversary gift

ANS: DInternal information search is used with frequently purchased, low-cost items; the only item on the list that meets this criterion is the toothpaste.


11.An external information search is especially important when:


a. there is a great deal of past experience

b.

there are high cost associated with making an incorrect decision

c. the cost of gathering information is high

d.

buying frequently purchased, low-cost items

e. there is little risk of making an incorrect decision

ANS: BIf a consumer perceives a purchase to involve high risk (financial, social, etc.), an external search will lower the risk by providing more information.



12.For which of the following products is the purchaser most likely to rely on an external information source?a. a toothbrushb.

a copy of People magazine

c. a Big Macd.

a new prescription

e. a box of tissues

ANS: D PTS: 1 REF:64-65OBJ:05-2 TYPE: App



13.Pregnant Niceae has been shopping for a baby crib. She has visited several sites on the Internet that provide information about cribs and has consulted a book on how to keep her baby safe by a consumer group. Niceae has also asked several new mothers for recommendations. In her decision-making process, Niceae has been using:a. marketing-controlled

information sourcesb.

demographic information sources

c. nonmarketing-controlled information sources

d secondary data sources


.e. internal search sources

ANS: CPublic sources of information, such as Web sites and consumer groups, are known as nonmarketing-controlled information sources.

PTS:1 REF: 64-65 OBJ:05-2 TYPE: AppTOP: AACSB Technology| TB&E Model Product| TB&E Model Online/Computer

14.Which of the following is NOT an example of a marketing-controlled information system?


a. a television ad for Geico insurance

b.

a NASCAR automobile sponsored by the U.S. Army

c. a $1-off coupon for Campbell’s soup

d.

an article in Bicycling magazine about the newest Shimano brand shoes

e. a real estate agent

ANS: DThe article in Bicycling would NOT have originated with the Shimano organization.

PTS:1 REF: 65 OBJ: 05-2 TYPE: App


TOP: AACSB Technology| TB&E Model Online/Computer

15.While Robinson was looking at the CDs at Wal-Mart, he was trying to remember the name of the group that sang the song he liked on last night's episode of Smallville, so he could buy it. Since recording companies pay to have their CDs promoted on television shows that air on the WB, the source of information Robinson is trying to recall is:a. a fortuitously evoked setb.

marketing-controlled

c. nonmarketing-controlledd.

unitary data


e. a credible consideration set

ANS: B PTS: 1 REF:65 OBJ:05-2 TYPE: AppTOP: AACSB Technology| TB&E Model Customer


16.Warren loves to go to the beach on his vacation but hates to have to worry about the possibility of hurricanes. As Warren looked for where he should go on vacation this summer, he consulted a publication called Smart Money and learned the islands of Aruba, Bonaire and Curacao are not in the hurricane belt. Now he will only consider these island resorts as possible vacation destinations. This group of resort islands is called Warren’s:a. involvement setb.

evaluative set

c. evolved setd.

evoked set

e. intuitive set


ANS: DAn evoked set is the set of brands a consumer recalls and would consider as possible purchase choices.


17.Melyssa has been given a horse and needs to buy a new Western saddle. She has narrowed the brands of saddles she is considering down to Dale Chavez, Abetta, and Big Horn. These three brands of Western saddles represent Melyssa's:


a. evaluative criteriab.

dissonance suppressors

c. discretionary discriminatorsd.

discriminatory set

e. evoked set

ANS: E PTS: 1 REF:65 OBJ:05-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Product


18.Zoran wants to buy a pair of sunglasses he can wear when he is riding his bicycle in competitions. He wants sunglasses with a rubberized nose piece, built-in anti-fogging technology, and the ability to block light from all angles. The criteria for his decision appear to be based on:a. marketing-controlled

information sourcesb.

evoked set finalists

c. routine response behaviord.

attitudes of others

e. product attributes

ANS: E


Physical characteristics and traits used in decision making are called product attributes.


19.Another name for evoked set is:a. called arrayb.

reminder assortment

c. induced memoryd.

consideration set

e. reminder induction



20.People tend to be more satisfied with a purchase if:a. they obtain additional

information that reinforces their decision

b.

they feel less competent in their daily lives

c. cognitive dissonance develops

d.

there is inconsistency among opinions and values

e. there is no further contact with the seller


ANS: ANew information that reinforces positive ideas about the purchase tends to reduce cognitive dissonance and increases satisfaction.

PTS:1 REF: 66 OBJ: 05-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Product


21.Cecelia is a receptionist and just spent $347 on a new riding saddle for her boyfriend Claude, a weekend cowboy. When she got home with the saddle, she experienced a high level of anxiety about whether she has made the right purchase decision. Cecelia experienced:a. selective dissatisfactionb.

temporal distortion

c. perceptual disharmonyd.

cognitive dissonance

e. self-actualization involvement

ANS: D


Cognitive dissonance is the term for postpurchase tension and anxiety.

PTS:1 REF: 66 OBJ: 05-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Pricing| TB&E Model Product


22.Miller has just purchased a new Allez A1 Specialized bicycle for $1,000. Miller realizes that the Allez A1 costs more than most bikes, and even at that price it doesn't come with a set of pedals. Even though other brands of bicycles cost much less than the Allez A1, Miller tells himself that the Allez A1 is more comfortable and has greater durability than most road bikes. As Miller wonders if he made the right purchase decision, he is experiencing:a. attribute remorseb.

cognitive dissonance

c. evaluation distortiond.

consumer cognition

e. perceptual disharmony


ANS: BCognitive dissonance involves the realization of the advantages and disadvantages of the purchased product.

PTS:1 REF: 66 OBJ: 05-2 TYPE: AppTOP: AACSB Analytic| TB&E Model Product

23._____ is the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior.a. Economic valueb Involvement


.c. Opportunity costd.

Temporal cost

e. Perceived level of personal risk


24.When the secretary restocks office supplies each month, he places an order for paper, pens, folders, and printer cartridges. Each month the order is the same. This type of buying behavior is called:


a. buyer's harmonyb.

situational convenience

c. routine response behaviord.

limited decision making

e. consistent decision making

ANS: CThe buying of frequently purchased, low-cost goods is typically routine response behavior.



25.Which of the following activities is most likely to be an example of routine response behavior?a. the purchase of a three-week

vacation cruiseb.

a homeowner’s purchase of a new grill for $6,000

c. the first-time purchase of a copy machine for your home office

d.

the purchase of toilet paper

e. the purchase of a infant car seat

ANS: DOnly the toilet paper is an example of a low-involvement purchase.



26._____ is characterized by low involvement, a short time frame, an internal-only information search, and low costs.a. Limited decision makingb.

Routine response behavior

c. Emotional buyingd.

Intensive decision making

e. Temporally-limited behavior


ANS: BSee Exhibit 5.2.

PTS:1 REF: 67 OBJ: 05-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer

27.Jackson has moved to a new community and can no longer attend his old church. He is currently visiting churches to make a decision about which one best serves his needs. In making his decision, Jackson will engage in _____ consumer decision making.a. limitedb extended


.c. habituald.

classical

e. routine

ANS: AJackson is familiar with churches and the services they provide, but he is unfamiliar with the ones in his new community.



28.The electricity for lighting outdoor billboards is powered by transformers. The operator of a company that installs and manages billboards has purchased many such transformers. Today he plans to buy a replacement for one that was destroyed by a recent hurricane. Before making this purchase, he will look at cost and also see if he can find one that is more weatherproof. He wants to make sure he buys the best transformer for the job and that he does not pay more money than he should. In other words, he will engage in _____ decision making.a. limitedb.

extended

c. habitual


d.

classical

e. routine

ANS: AThe billboard operator is familiar with the product, but he is not immediately knowledgeable about the products currently on the market.


29.When a consumer is purchasing an unfamiliar or expensive product, the consumer often uses the _____ process.


a. extensive decision makingb.

cognitive harmonizing

c. limited problem solvingd.

strategic behavior

e. stimulus discrimination

ANS: A PTS: 1 REF:67-68OBJ:05-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Product



1. _____ is a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer segments.a. Organizational optimizationb.

Consumer relationship marketing (CRM)

c. Total quality management (TQM)

d.

Customer relationship management (CRM)

e. Market aggregation

ANS: D PTS: 1 REF:293 OBJ:


19-1 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Strategy

5. Customer relationship management:a. is often described as a

closed-loop systemb.

only involves personnel in marketing and management departments

c. organizes the company around functional departments

d.

is a very simplistic method of encouraging customer satisfaction


e. is only a theory and has not been proven successful in any practical way

ANS: ACRM is a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer segments.

PTS:1 REF: 293 OBJ: 19-1 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Strategy


6. To initiate the CRM cycle, a company must first:a. establish marketing

objectivesb.

decide on a segmentation strategy

c. establish customer relationships with the organization

d.

determine the level of interaction customers have with the organization

e. acquire and capture customer data for product categories

ANS: C PTS: 1 REF:293 OBJ:19-1 TYPE: Def


TOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Strategy

8. Which of the following statements about the CRM cycle is true?a. The letters CRM are an

acronym for consumer relationship marketing.

b.

The CRM cycle does not affect employees outside the marketing and management functional areas.

c. The CRM cycle is continuous and circular with no predefined start or end point.

d The CRM cycle takes a


. simplistic perspective on customers.

e. All of these statements about the CRM cycle are true.

ANS: CCRM stands for customer relationship management.

PTS:1 REF: 293 OBJ: 19-1 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Strategy


9. A company that has a(n) _____ customizes its product offerings based on data generated through interaction between the customer and the company.a. ethnocentric perspectiveb.

supply-based focus

c. sales orientationd.

supply-based focus

e. customer-centric focus

ANS: EA customer-centric focus is represented by adherence to the marketing concept.

PTS:1 REF: 295 OBJ: 19-2



12.Customer-centric is an internal management philosophy similar to:a. utilitarianismb.

Herzberg's theory of motivation

c. the equity theoryd.

the marketing concept

e. consumerism



TOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Product

14.In a CRM environment, _____ is defined as the informal process of collecting customer information through customer contacts and feedback on product performance.a. corporate modificationb.

attitude adjustment

c. organizational perceptiond.

stimulus/response research

e. learning


ANS: E PTS: 1 REF:295-296OBJ: 19-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer

15._____ is the process by which learned information from customers is centralized and shared in order to enhance the relationship between customers and the organization.a. Knowledge managementb.

Learning

c. Database marketingd.

Interactive marketing

e. Information marketing



17._____ refers to the latitude organizations bestow on their representatives to negotiate mutually satisfying commitments with customers.a. Consumer learningb.

Customerization

c. Empowermentd.

Autonomy

e. Interaction


ANS: C PTS: 1 REF:296 OBJ:19-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Customer

19.A(n) _____ is the point at which a customer and a company representative exchange information and develop learning relationships.a. social contactb.

interaction

c. empowering momentd.

equilibrium point

e. transactional dyad


ANS: B PTS: 1 REF:296 OBJ:19-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Customer

23.Which of the following statements about touch points is true?a. Data gathered at external

touch points, once interpreted, provide information that affects internal touch points.

b.

A customer applying for a credit card is an example of a touch point.

c. Companies are publicizing


their Web sites as the first touch point for customer interactions.

d.

A customer complaint is an example of an external touch point.

e. All of these statements about touch points are true.

ANS: E PTS: 1 REF:297 OBJ:19-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Strategy


24.In a CRM system, _____ are all areas of the business where customers have contact with the company and data may be gathered and used to guide and direct the decision making within that business unit.a. touch pointsb.

focus areas

c. data miningd.

information search periods

e. observational points

ANS: A PTS: 1 REF:297 OBJ:19-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy


TOP: AACSB Technology| AACSB Reflective Thinking| TB&E Model Online/Computer| TB&E Model Customer

28._____ interactions occur when customers buy products in a store.a. Point-of-saleb.

Relationship-based

c. Cost-basedd.

Retail-centric

e. Distribution-focused

ANS: A PTS: 1 REF:297 OBJ:19-3 TYPE: Def



29.Which of the following is a guideline for a successful CRM system?a. Customer information is not

retained past the initial contact with the customer.

b.

Intuition and experience must define the products provided by the organization.

c. The product takes center stage in the organization.

d.

Customer information is kept in a centralized repository.

e. All of these are guidelines for a successful CRM


system.

ANS: DCustomer information is retained past the initial contact with the customer. Customer data should be accumulated over the customer's entire life span with the organization.Customers must define the products provided by the organization. The customer takes center stage in the organization.

PTS:1 REF: 298-299 OBJ:19-5 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Strategy


30.The traditional approach for acquiring data from customers is through:a. encoding devicesb.

media

c. feedback mechanismsd.

channel interactions

e. public relations

ANS: D PTS: 1 REF:298 OBJ:19-4 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy


31.Which of the following is an example of a channel through which customer data are traditionally gathered?a. store visitsb.

conversations with salespeople

c. interactions via the Webd.

phone conversations

e. all of these

ANS: E PTS: 1 REF:298 OBJ:19-4 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer


32.An organization should view every transaction as:a. simply a financial exchangeb.

deleterious to customer relationship management

c. the opportunity to collect vast amounts of data about the customer

d.

the creation of customer-organization multiplicity

e. the closing of a channel

ANS: C PTS: 1 REF:298 OBJ:19-4 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer


33.When viewed as an interaction between the organization and the customer, a transaction can produce all of the following customer data EXCEPT:a. name, address, and phone

numberb.

information about the customer's relationship with other customers

c. past purchase historyd.

information about the customer's relationship with the organization

e. average amount spent on purchases



19-4 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer

34.A(n) _____ is a central repository for data from various functional areas of the organization. These data can be shared by all of the organization's departments.a. information mineb.

knowledge distribution center

c. information extraction unitd.

information intermediary

e. data warehouse

ANS: E PTS: 1 REF:298-299


OBJ: 19-5 TYPE: DefTOP: AACSB Technology| TB&E Model Online/Computer

37.The core of the data warehouse is:a. empowered employeesb.

transaction channels of communication

c. point-of-sale interactionsd.

the database

e. a compiled list

ANS: D PTS: 1 REF:298 OBJ:19-5 TYPE: DefTOP: AACSB Technology| TB&E Model Online/Computer


40.A _____ is essentially a very large, corporate-wide database, culled from a number of separate systems, such as billing, accounting, order fulfillment, distribution, customer service, and marketing and sales, already in place within an organization.a. data martb.

customer information system

c. data warehoused.

decision support system

e. data cluster

ANS: C PTS: 1 REF:298-299


OBJ: 19-5 TYPE: DefTOP: AACSB Technology| TB&E Model Online/Computer

45.A(n) _____ list generally includes names and addresses gleaned from directories or membership rosters.a. predictiveb.

compiled

c. responsed.

actionable

e. disintegrated




47._____ is the addition of information to customer or prospect records for the purpose of better describing or better determining the responsiveness of customers or prospects.a. Information formattingb.

Database enhancement

c. Data miningd.

Data shading

e. Predictive modeling



19-5 TYPE: DefTOP: AACSB Technology|| TB&E Model Online/Computer


49. Which of the following statements about a CRM system is true?a. A critical component of a

CRM system is the use of the appropriate technology to store and integrate customer data.

b.

A CRM system operates on the theory that all customers are equally important.

c. Due to privacy laws, a CRM system only disseminates customer information to those who are actually in day-to-day contact with customers.

d.

A company using a CRM system must view its customers as bits of data.


e. All of these statements about a CRM system are true.

ANS: AThe CRM system allows companies to make use of the 80/20 rule. Customers should be viewed comprehensively.PTS:1 REF: 300 OBJ: 19-1 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Strategy

50._____ is the process of finding hidden patterns and relationships in the customer data stored in the data warehouse.a. Customer information


management (CIS)b.

Data feedback

c. Information retrievald.

Information extraction

e. Data mining

ANS: E PTS: 1 REF:300 OBJ:19-6 TYPE: DefTOP: AACSB Technology| TB&E Model Online/Computer


57.Which of the following techniques used to analyze marketing databases considers whether a customer has made a purchase recently as well as how often that customer makes a purchase?a. recency-frequency-

monetary analysis (RFM)b.

predictive modeling

c. customer valuationd.

data mining

e. lifetime value analysis

ANS: A PTS: 1 REF:300 OBJ:19-6 TYPE: DefTOP: AACSB Technology| TB&E


Model Customer

58.The basic assumption of _____ is that marketing to repeat customers is more profitable than marketing to first-time buyers.a. customer segmentationb.

predictive modeling


data manipulation


ANS: E


Lifetime value analysis is a data manipulation technique that projects the future value of the customer over a period of years using the assumption that marketing to repeat customers is more profitable than marketing to first-time buyers.


59.Designer Linens Outlet uses CRM to track visitors to its Web site. This tracking allows the retailer to confidently project the value of its repeat customers through its application of:


a. customer segmentationb.

predictive modeling


data manipulation


ANS: ELifetime value analysis is a data manipulation technique that projects the future value of the customer over a period of years using the assumption that marketing to repeat customers is more profitable than marketing to first-time buyers.

PTS:1 REF: 300 OBJ: 19-6


TYPE: AppTOP: AACSB Technology| TB&E Model Customer| TB&E Model Online/Computer


60. _____ uses a past set of occurrences to predict the likelihood that some other occurrence, such as a response or purchase, will take place in the future.a. Customer manipulationb.

Predictive modeling

c. Data miningd.

Lifetime value analysis

e. Causal research

ANS: B PTS: 1 REF:301 OBJ:19-6 TYPE: DefTOP: AACSB Technology| TB&E Model Strategy


65._____ involves developing product offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships.a. Transaction managementb.

Campaign management

c. Data miningd.

Consumerism

e. Knowledge management


chapter 1—an overview of marketingcsub.edu/~ecarter2/sum.10.300/section 1 pool items.w… ·...

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