Mktg test 1

16. Marketing is the process of
a) promoting products through personal selling and advertising to develop and maintain favorable relationships with customers and stakeholders.
b) creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment.
c) delivering a standard of living to a society.
d) creating, distributing, promoting, and pricing goods, services, and ideas to facilitate the achievement of the firm’s objectives.
e) focusing on customers’ needs.
b) creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment.
17. The focal point of all marketing activities is
a) products.
b) the marketing mix.
c) profits.
d) sales.
e) customers.
e) customers.
18. Organizations should define themselves not according to the products they produce but according to
a) how profitable they are.
b) the price of their stock.
c) the abundance of their product selection.
d) how they treat employees.
e) how they satisfy customers.
e) how they satisfy customers.
19. The definition of marketing implies that ______ should receive benefits from exchange relationships.
a) only customers
b) only businesses
c) company management
d) both customers and businesses
e) only the most important customers
d) both customers and businesses
20. The primary value that a marketer expects to receive from a customer in an exchange relationship is
a) the price charged for the product.
b) customer satisfaction.
c) references to other potential customers.
d) quality merchandise that meets expectations.
e) few returns of the merchandise purchased.
a) the price charged for the product.
A target market
a) involves a large number of customers.
b) is a specific group of customers on whom a company focuses its marketing efforts.
c) already has several competitors vying for customers’ business.
d) is the same as a salesperson’s prospective client list.
e) is a customer group classified as people with similar demographic characteristics.
b) is a specific group of customers on whom a company focuses its marketing efforts.
22. Kashi Heart to HeartTM cereal is aimed at people concerned about their heart health. These people represent the Kashi
a) marketing mix.
b) marketing strategy.
c) target market.
d) marketing tactic.
e) consumer advocates.
c) target market.
23. SunnyD is aimed at mothers with children under age twelve. These mothers represent SunnyD’s
a) target market.
b) consumer advocates.
c) marketing strategy.
d) marketing mix.
e) marketing tactic.
a) target market.
24. Distribution, price, promotion, and product are all elements of
a) marketing strategy.
b) the marketing mix.
c) a target market.
d) a consumer good.
e) a business strategy.
b) the marketing mix.
25. A marketing manager decides what combination of variables is needed to satisfy customers’ needs for a general type of product. What are the essential variables that the marketing manager combines?
a) Product, price, distribution, and promotion variables
b) Marketing environment variables
c) Product and promotion variables
d) Product, price, and customer variables
e) Product, price, customer, and promotion variables
a) Product, price, distribution, and promotion variables
26. The marketing mix is built around the
a) product.
b) company.
c) customer.
d) employee.
e) retail outlet.
c) customer.
27. Marketing managers strive to develop a marketing mix that
a) minimizes marketing costs.
b) matches what competitors are offering.
c) best matches the abilities of the firm.
d) matches the needs of the target market.
e) generates the highest level sales.
d) matches the needs of the target market.
28. The product variable of the marketing mix can include all of the following except
a) creation of brand names.
b) consumer perception of the product price.
c) development of product packaging.
d) warranty issues.
e) repair services.
b) consumer perception of the product price.
29. The three basic forms that a product can take are
a) markets, products, and images.
b) goods, ideas, and intangibles.
c) brands, services, and tangibles.
d) services, ideas, and goods.
e) ideas, services, and things.
d) services, ideas, and goods.
30. A physical product you can touch is a(n)
a) service.
b) good.
c) idea.
d) concept.
e) philosophy.
b) good.
31. The application of mechanical and human efforts to either people or objects to provide intangible benefits to customers is known as a(n)
a) issue.
b) experience.
c) idea.
d) good.
e) service.
e) service.
32. Which of the following companies is the best example of a service marketer?
a) FedEx
b) Sony
c) Abercrombie & Fitch
d) The Democratic Party
e) General Electric
a) FedEx
33. Mothers Against Drunk Driving (MADD) is a group that works to change attitudes and laws about driving under the influence of alcohol. MADD primarily markets
a) goods.
b) ideas.
c) services.
d) political figures.
e) applications.
b) ideas.
34. The Church of the Latter Day Saints has used advertising for many years to market its
a) goods.
b) services.
c) experiences.
d) production.
e) ideas.
e) ideas.
35. Which of the following is most likely to be an idea marketer?
a) Car salesperson
b) Airline pilot
c) Attorney
d) Abuse counselor
e) Orthodontist
d) Abuse counselor
36. Deciding to add gel insoles to its running shoes would be a change in the _____ element of the marketing mix for Nike.
a) price
b) good
c) product
d) promotion
e) distribution
c) product
37. Making modifications to packaging or brand names involves the _____ component of the marketing mix.
a) price
b) promotion
c) market
d) distribution
e) product
e) product
38. Issues of inventory levels and storage costs are both concerns relating to the _____ variable of the marketing mix.
a) distribution
b) product
c) exchange
d) price
e) promotion
a) distribution
39. Rob Donaldson runs a successful wholesale business that sells equipment to restaurants throughout the Midwest. He is considering purchasing his own fleet of trucks to deliver the equipment instead of relying on a shipper as he is currently doing. This most closely represents a decision about
a) which market he should target.
b) the best way to distribute his products.
c) how to effectively promote his business.
d) the product he provides to his customer.
e) which supplier he should use.
b) the best way to distribute his products.
40. Consumers buying products online have dramatically affected the ___________ variable of the marketing mix.
a) product
b) price
c) distribution
d) research
e) promotion
c) distribution
41. Changing the hours of operation for a service business involves the _____ component of the marketing mix.
a) product
b) price
c) distribution
d) promotion
e) marketing concept
c) distribution
42. Which of the following scenarios involves the distribution element of the marketing mix?
a) Deciding whether or not a certain product should continue to be sold
b) Determining whether an advertising message would be more effective on television or in magazines
c) Choosing between a company jet or the airlines for executive travel
d) Deciding whether or not to have retail outlets in addition to a website
e) Developing a new warranty policy for an existing product
d) Deciding whether or not to have retail outlets in addition to a website
43. The element of the marketing mix used to increase awareness of a product or company is
a) communication.
b) product.
c) price.
d) distribution.
e) promotion.
e) promotion.
44. When DuPont develops new carpet fibers that are highly stain-resistant and durable, it must educate consumers about the product’s benefits. This calls for activity in which of the following marketing mix variables?
a) Price
b) Promotion
c) Distribution
d) Product
e) Packaging
b) Promotion
45. Boca Burger’s website features information about products, recipes, and nutritional values, but customers cannot actually purchase products from the website. This website is most likely used primarily as a ______ marketing tool.
a) promotional
b) distributional
c) pricing
d) targeting
e) production
a) promotional
46. When Burger King offers 99-cent Whoppers to increase store traffic, it is altering which aspect of the marketing mix?
a) Price
b) Promotion
c) Distribution
d) Product
e) Target market
a) Price
47. When DataComp Corp., a producer of computer software, delayed the introduction of its new spreadsheet program to modify the package, its scheduled magazine advertisements announcing the new product needed to be revised. In this case, a change in the ___________ variable caused changes in the ___________ variable of the marketing mix.
a) distribution; promotion
b) distribution; product
c) product; price
d) product; promotion
e) promotion; price
d) product; promotion
48. Marketers often speak of the “controllable” variables in the practice of marketing. Which of the following is not considered one of the controlled variables?
a) Product
b) Price
c) Distribution
d) Competition
e) Promotion
d) Competition
49. The concept of “exchange” is fundamental to the definition of marketing. What is the best description of exchange?
a) Activities that are performed primarily by producers and manufacturers
b) Development of products, distribution channels, promotional strategies, and pricing objectives to satisfy customer requirements
c) Transfer of products in return for monetary considerations
d) Provision or transfer of goods, services, or ideas in return for something of value
e) Transfer of products that takes place only between for-profit organizations
d) Provision or transfer of goods, services, or ideas in return for something of value
50. For an exchange to occur, four conditions must exist: first, two or more individuals, groups, or organizations must participate, and each must possess “something of value” that the other desires; second, the exchange must provide a benefit or satisfaction to both parties; third, each must have confidence in the promise of the “something of value” held by the other; and fourth,
a) the parties must agree to participate in the trading of “something of value.”
b) to build trust, parties to the exchange must meet expectations.
c) both parties must participate in the trading of the “something of value.”
d) one party must be willing to compromise.
e) one party must have sufficient bank credit to finance the exchange.
b) to build trust, parties to the exchange must meet expectations.
51. Mark goes to a vending machine, deposits $1.00, and receives a Sprite. Which one of the following aspects of the definition of marketing is illustrated here?
a) Production conception
b) Satisfaction of organizational goals
c) Distribution of ideas
d) Product planning
e) Exchange
e) Exchange
Marketing facilitates exchange relationships between buyers and sellers. What is marketing’s intended outcome for this relationship?
a) Profits for the seller
b) A good bargain on the product for the buyer
c) Reducing the seller’s inventory
d) One party having to compromise in the exchange
e) Satisfaction for both the buyer and seller
e) Satisfaction for both the buyer and seller
Which of the following statements about marketing environment forces is correct?
a) They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products.
b) They do not influence customers’ reactions to a firm’s marketing mix.
c) They fluctuate slowly and thereby create threats to a firm’s marketing mix.
d) They never fluctuate quickly.
e) They do not influence the way a marketing manager performs certain marketing activities.
a) They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products.
The forces of the marketing environment include
a) political, legal and regulatory, sociocultural, technological, economic, and competitive.
b) sociocultural, legal, regulatory, economic, and competitive.
c) legal, regulatory, political, and sociocultural.
d) competitive and noncompetitive forces that affect most lifestyles.
e) fairly static components.
a) political, legal and regulatory, sociocultural, technological, economic, and competitive.
A marketing manager for a small computer manufacturer is analyzing the potential effects of political, legal, sociocultural, and economic forces on the firm’s operations. The marketing manager is examining the ___________ that influence(s) the firm’s strategy.
a) operating situation
b) marketing environment
c) surroundings
d) economic conditions
e) trends
b) marketing environment
56. Which of the following best characterizes the forces of the marketing environment?
a) The forces are relatively stable over time and are interrelated with one another.
b) There are few overlapping aspects of these forces; therefore, a change in one is unlikely to result in a change in another.
c) The various forces ensure that the marketing environment will remain fairly certain in the future.
d) These forces change dramatically over time, but a change in one force is unlikely to impact another force.
e) The forces change dramatically and quickly, and a change in one force is likely to affect the other forces.
e) The forces change dramatically and quickly, and a change in one force is likely to affect the other forces.
57. A change in the minimum drinking age in any given state illustrates a change in the ___________ for Miller Brewing.
a) marketing mix
b) marketing environment
c) marketing concept
d) marketing task
e) product concept
b) marketing environment
StarKist Tuna announced a dolphin-safe policy and stopped buying tuna from fishing vessels that net dolphins. This decision indicates a response to concerns about
a) target market selection.
b) the marketing environment.
c) the reduction of marketing costs.
d) marketing mix decisions.
e) efficiency in marketing activities.
b) the marketing environment.
59. Which of the following is essentially an uncontrollable factor in developing a marketing mix?
a) Product adaptations
b) Pricing strategies
c) Government regulations
d) Advertising campaigns
e) Retail locations
c) Government regulations
The forces of the marketing environment primarily affect marketers in three ways: They influence customers by affecting their lifestyles and preferences for products; they determine whether or how a marketing manager can perform certain marketing activities; and they
a) affect a marketing manager’s decisions and actions by influencing buyers’ reactions to the firm’s marketing mix.
b) dictate that changes be made to the existing marketing mix despite any negative reactions from customers.
c) make most new products obsolete very quickly so that research and development must continually develop new products.
d) cause most advertising to be ineffective at communicating product benefits due to rapidly changing environmental forces.
e) change a customer’s decisions about the appropriate marketing mix for the company and its various products.
a) affect a marketing manager’s decisions and actions by influencing buyers’ reactions to the firm’s marketing mix.
61. The marketing environment is best described as being
a) composed of controllable variables.
b) composed of variables independent of one another.
c) an indirect influence on the performance of marketing activities.
d) dynamic and changing.
e) slow, with infrequent fluctuations.
d) dynamic and changing.
The marketing concept is best defined as
a) a second definition of marketing.
b) a philosophy stating that an organization should try to satisfy customers’ needs through a coordinated set of activities that allows the organization to achieve its goals.
c) the performance of business activities that direct the flow of goods and services from producer to customer or user.
d) a philosophy stating that an organization should attempt to accomplish its goals with no regard for the needs of customers.
e) the inclusion of marketing activities in the activities of an organization.
b) a philosophy stating that an organization should try to satisfy customers’ needs through a coordinated set of activities that allows the organization to achieve its goals.
According to the marketing concept, an organization should try to
a) consider short-run objectives and cash flow needs before developing new products.
b) define its business as “making a product.”
c) provide products that satisfy customers’ needs and allow the organization to achieve its goals.
d) put most of its emphasis on marketing activities and be less concerned with finance, accounting, and personnel.
e) view selling activities as the major means of increasing profits.
c) provide products that satisfy customers’ needs and allow the organization to achieve its goals.
64. The marketing concept is a management philosophy that affects
a) only marketing activities.
b) all efforts of the organization.
c) mainly the efforts of sales personnel.
d) mainly customer relations.
e) only business organizations.
b) all efforts of the organization.
65. The marketing concept focuses on
a) achieving the goals of top executives.
b) creating maximum visibility for the firm.
c) maximizing sales.
d) maximizing market share.
e) satisfying customers’ needs in a way that helps to achieve organizational objectives.
e) satisfying customers’ needs in a way that helps to achieve organizational objectives.
The marketing concept is a philosophy that states that an organization should try to satisfy customers’ needs and also
a) increase market share.
b) increase sales.
c) achieve the organization’s goals.
d) produce high-quality products.
e) coordinate its activities to increase production.
c) achieve the organization’s goals.
Which one of the following statements by a company president best reflects the marketing concept?
a) We have organized our business to make certain that customers get what they want.
b) We believe that the marketing department must organize to sell what we produce.
c) We have organized an aggressive sales force in our company to promote our products.
d) We try to produce only high-quality, technically efficient products.
e) We try to encourage company growth.
a) We have organized our business to make certain that customers get what they want.
68. The marketing concept affects
a) just the marketing department.
b) all organizational activities.
c) only marketing and finance.
d) only production and marketing.
e) few decisions in an organization.
b) all organizational activities.
69. When Campbell’s introduced a line of low-sodium soups in response to customer demand, it was following which one of the following philosophies?
a) Selling concept
b) Production concept
c) Customer concept
d) Marketing concept
e) Retailing concept
d) Marketing concept
70. The Jackson Hewitt company wants to adopt the marketing concept as a business philosophy. To be consistent with this decision, it should adopt which of the following philosophies?
a) The customer is always right.
b) Making money is our business.
c) Sell, sell, sell.
d) Keep prices low.
e) Focus on today.
a) The customer is always right.
71. The marketing concept is
a) a management philosophy.
b) synonymous with exchange.
c) a component of the marketing mix.
d) a function of the marketing environment.
e) focused solely on satisfying customer objectives.
a) a management philosophy.
72. As the Industrial Revolution came to the United States, most firms operated in a(n) ___________ orientation.
a) market
b) societal
c) sales
d) evolutionary
e) production
e) production
73. During the Industrial Revolution demand for manufactured goods was
a) weak.
b) nonexistent.
c) declining.
d) strong.
e) mediocre.
d) strong.
74. From the 1920s to the 1950s, demand for manufactured goods decreased, leading to the ______ orientation.
a) production
b) market
c) revolutionary
d) sales
e) reduction
d) sales
75. U.S. Electric, the maker of a highly innovative xenon light bulb, finds that it has excess inventory. The firm increases its advertising budget by 50 percent and doubles its sales staff. This company is operating as if it were in which of the following orientations?
a) Production
b) Sales
c) Market
d) Customer
e) Societal
b) Sales
76. American Express implements a program of calling its current cardholders to find out what changes they would like to see in the services provided. The firm is exhibiting characteristics associated with which of the following orientations?
a) Production
b) Sales
c) Market
d) Social
e) Development
c) Market
77. A market orientation is an organization-wide effort that includes all of the following activities except
a) researching customers’ needs.
b) focusing on the marketing department only.
c) generating marketing intelligence for use in the organization.
d) being responsive to customers’ ever-changing wants and needs.
e) disseminating marketing intelligence across departments within the organization.
b) focusing on the marketing department only.
78. Which of the following best describes the acceptance of the marketing concept by American organizations?
a) The marketing concept has yet to be fully accepted by all organizations.
b) All organizations fully utilize the marketing concept to run their businesses.
c) Nearly half of all organizations are still in the sales orientation and have not implemented the marketing concept.
d) Most organizations have really not accepted the marketing concept because of its many costs and problems.
e) Although American organizations fully accept the marketing concept, many foreign companies do not.
a) The marketing concept has yet to be fully accepted by all organizations.
79. Which of the following is not an example of the implementation of the marketing concept?
a) Jimmy Dean’s Sausage introduces turkey sausage patties for a healthier alternative to pork.
b) Mar’s Candy asks customers to vote online for a new color for its M&M’s candy.
c) Burger King reduces the labor costs to produce its sausage-egg biscuits.
d) Microsoft offers rewards for users who can find flaws in its new software.
e) Saab introduces pop-up rollover bars in its convertibles to protect its consumers in the event of a serious collision.
c) Burger King reduces the labor costs to produce its sausage-egg biscuits.
80. Health Care Systems, Inc. rolls out an innovative nurse-on-call information system available online. The product is not widely accepted because patients don’t see the need for such a service. This situation represents a failure in which aspect of implementing the marketing concept?
a) An information system to determine customer needs
b) The organizational structure
c) Top-management commitment
d) Technological advancement
e) Scanning corporate capabilities
a) An information system to determine customer needs
81. When Wonder introduced a new bread made with white whole wheat in response to customer demand, it was following which of the following philosophies?
a) selling concept
b) production concept
c) marketing concept
d) customer concept
e) retailing concept
c) marketing concept
82. Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as
a) marketing synthesis.
b) relationship marketing.
c) a marketing orientation.
d) the marketing concept.
e) strategic marketing.
b) relationship marketing.
83. A junior marketing executive at MegaGrain Cereals suggests increasing the package size and price of its best-selling brand without increasing the amount of cereal inside the box. Her superior warns that this might be a bad idea because MegaGrain’s long-term survival, like most companies, depends on
a) cost-cutting measures.
b) continually selling to new customers and markets.
c) creating and maintaining satisfying exchange relationships.
d) high-volume, low-margin sales.
e) increasing shelf space for their brands.
c) creating and maintaining satisfying exchange relationships.
84. In managing customer relationships, the three primary ways profits can be obtained are by
a) acquiring new customers, enhancing the profitability of new customers, and shortening the duration of relationships with existing customers.
b) enhancing the profitability of existing customers, eliminating customers who provide smaller profits, and finding new customers.
c) extending the length of relationships with customers, cutting organizational costs, and enhancing the profitability of new customers.
d) eliminating long-term customers who have decreased purchases, finding new customers, and increasing sales to existing customers.
e) enhancing the profitability of existing customers, extending the duration of relationships with customers, and obtaining new customers.
e) enhancing the profitability of existing customers, extending the duration of relationships with customers, and obtaining new customers.
85. Customer relationship management (CRM) begins its focus on customers with
a) communication.
b) product.
c) distribution.
d) information.
e) promotion.
d) information.
86. Long-term relationships with profitable customers is the key objective of
a) personal selling.
b) customer relationship management.
c) production oriented firms.
d) e-marketing.
e) distribution channels.
b) customer relationship management.
87. Managing customer relationships requires identifying patterns of ___________ and then using that information to focus on the most promising and profitable customers.
a) demographics
b) buying behavior
c) retailer information
d) personality differences
e) stock market cycles
b) buying behavior
88. ________ is a customer’s subjective assessment of benefits relative to costs in determining the worth of a product.
a) Marketing orientation
b) Monetary price
c) Product assessment
d) Price assessment
e) Value
e) Value
89. The equation a buyer applies to assess a product’s value is
a) value = monetary price – customer benefits.
b) value = customer costs – customer benefits.
c) value = customer benefits – customer costs.
d) value = customer benefits – monetary price.
e) value = customer benefits – time and effort.
c) value = customer benefits – customer costs.
90. Customer costs include anything the buyer must give up in order to obtain the benefits the product provides. The most obvious customer cost is
a) risk.
b) time.
c) monetary price.
d) effort.
e) availability.
c) monetary price.
91. Which of the following would not be a customer cost considered in determination of product value?
a) Product’s purchase price
b) Time spent purchasing the product
c) Effort spent purchasing the product
d) Benefits received in the exchange for the products
e) Risk of purchasing the product
d) Benefits received in the exchange for the products
92. Scott, a buyer for a medium-sized company, is assessing the value of competing software products for use in his firm. Which of the following would not be a customer benefit considered in his determination of this product’s value?
a) Speed of delivery
b) Ease of installation
c) Availability of technical support
d) Availability of training assistance
e) Monetary price
e) Monetary price
93. Taco Bell is introducing some of its products into supermarkets, vending machines, college campuses, and other locations to increase its product availability and convenience. One reason Taco Bell is doing so is to
a) decrease customer benefits.
b) increase customer costs.
c) increase customer value.
d) increase distribution expenses.
e) decrease promotion expenses.
c) increase customer value.
94. Marketing management is defined as a process of
a) maintaining an appropriate and efficient marketing mix for a target market.
b) establishing performance standards and evaluating actual performances against these standards.
c) providing products that satisfy customers’ needs through a coordinated set of activities.
d) facilitating satisfying exchanges between an organization and its customers.
e) planning, organizing, implementing, and controlling marketing activities.
e) planning, organizing, implementing, and controlling marketing activities.
95. ______ is the degree to which an exchange helps achieve an organization’s objectives.
a) Controlling
b) Effectiveness
c) Success rate
d) Efficiency
e) Objectivity
b) Effectiveness
96. ______ refers to minimizing the resources an organization must spend to achieve a specific level of desired exchanges.
a) Effectiveness
b) Productivity
c) Efficiency
d) Objectivity
e) Cost cutting
c) Efficiency
97. A systematic process of assessing opportunities and resources, determining marketing objectives, and developing a marketing strategy and plans for implementation and control describes which of the following marketing management activities?
a) Strategic planning
b) Marketing control
c) Implementation
d) Organizing
e) Planning
e) Planning
98. The marketing unit can be organized by ________.
a) profitability.
b) functions and products only.
c) functions, products, regions, types of customers, or a combination of all four.
d) geographical regions and best-selling products.
e) customer demographics and frequency of purchases.
c) functions, products, regions, types of customers, or a combination of all four.
99. _________ of marketing plans hinges on coordination of marketing activities, motivation of marketing personnel, and effective communication within the marketing unit.
a) Implementation
b) Planning
c) Organizing
d) Marketing control
e) Strategic planning
a) Implementation
100. If McDonald’s runs a promotion advertising Big Macs for $1.50, it must ensure that each of the company’s restaurants has sufficient staff and product on hand to handle expected demand. This relates to which of the following marketing management activities?
a) Strategic planning
b) Planning
c) Organizing
d) Implementation
e) Marketing control
d) Implementation
101. _________ is the process of establishing performance standards, comparing actual performance with established standards, and reducing the difference between desired and actual performance.
a) Internal control analysis
b) Marketing control
c) Market flow regulation
d) Environmental market analysis
e) External analysis
b) Marketing control
Which of the following statements describes the best use of the Internet by a marketer?
a) Gain information.
b) Relay product information.
c) Facilitate the marketing process.
d) Accumulate as many friends as possible.
e) Facilitate the marketing exchange, obtain customer feedback, and providing product information.
a) Gain information.
103. Initiatives intended to improve an organization’s positive impact on society and the natural environment are called
a) environmental marketing
b) green marketing
c) socially-responsible marketing
d) energy-conscious marketing
e) socially-conscious marketing
b) green marketing
104. If a family spends $2,000 a month on goods and services, how much of that $2,000 goes for marketing activities?
a) $2,000
b) $1,500
c) $1,000
d) $500
e) $0
c) $1,000
105. For most firms, the costs of marketing activities consume approximately what portion of the consumer’s dollar?
a) One-half
b) One-fifth
c) One-fourth
d) One-third
e) One-sixth
a) One-half
106. In today’s market environment, you might pay $15 for a CD by your favorite musical artist. Approximately how much of that price goes to activities related to marketing (promotion, distribution, profit margins)?
a) $1.70
b) $3.40
c) $5.10
d) $7.50
e) $12.75
d) $7.50
107. Marketing activities are
a) used by all sizes of organizations including for-profit, nonprofit, and government agencies.
b) limited to use by larger for-profit and nonprofit organizations.
c) implemented only to increase profits for the organization and to expand the scope of its customer base.
d) used by all types and sizes of businesses but are not used by nonprofit organizations.
e) used by small businesses and small nonprofit organizations the most.
a) used by all sizes of organizations including for-profit, nonprofit, and government agencies.
108. Marketing activities
a) are aimed at persuading customers through advertising.
b) involve mainly distribution and promotion decisions.
c) and selling activities are basically the same.
d) are important only when a firm is developing new products or entering new markets.
e) help sell an organization’s products and generate financial resources for the firm.
e) help sell an organization’s products and generate financial resources for the firm.
109. Marketing knowledge and skills
a) are not necessary for a nonprofit organization.
b) enhance consumer awareness and help provide people with satisfying goods and services.
c) constitute the marketing mix.
d) were most important during the production era.
e) are most valuable for advertising executives but less important for wholesalers and distributors.
b) enhance consumer awareness and help provide people with satisfying goods and services.
110. The public is becoming more aware of how marketers’ activities affect the welfare of consumers and society. As a result, more firms are working to
a) raise prices in order to increase their profits so that they can contribute to philanthropic causes.
b) reduce the quality of their products in order to save money and provide less expensive products to their consumers.
c) reduce their profits by donating more time and money to improve social welfare and environmental conditions.
d) enact laws requiring companies to work toward the welfare of customers and society.
e) create a responsible approach to developing long-term relationships with customers and society.
e) create a responsible approach to developing long-term relationships with customers and society.
111. Approximately what percentage of civilian workers in the United States performs marketing activities?
a) 25 to 33 percent
b) 81 to 92 percent
c) 42 to 50 percent
d) 64 to 76 percent
e) 10 to 20 percent
a) 25 to 33 percent
13. When managers at Logistics Pro are developing their strategic plan, they use a market orientation as a guide to ensure that ________ is an integral part of the process.
a) customer satisfaction
b) employee satisfaction
c) the best use of their marketing resources
d) the marketing mix
e) the marketing function
a) customer satisfaction
14. Managers at the Littlefield Corporation are engaged in a complex process of revising their organization’s mission and goals and developing corporate strategy, marketing objectives, marketing strategy, and, eventually, a marketing plan. This process is called
a) marketing planning.
b) strategic planning.
c) marketing strategy.
d) corporate strategy.
e) strategic business planning.
b) strategic planning.
15. Identifying and analyzing a target market and developing a marketing mix to satisfy individuals in that market are essential elements of which of the following parts of strategic planning?
a) Establishing marketing objectives
b) Coordinating marketing activities
c) Organizing marketing functions
d) Developing a marketing strategy
e) Planning marketing activities
d) Developing a marketing strategy
16. Safeway Food Stores is involved in identifying and analyzing a target market. The firm then develops a marketing mix to satisfy individuals in that market to gain long-term competitive advantages. Based on this example, Safeway is creating a
a) corporate strategy.
b) target design.
c) mix strategy.
d) marketing strategy.
e) marketing tactic.
d) marketing strategy.
17. To formulate a marketing strategy, one must
a) identify and analyze a target market and develop a marketing mix to satisfy individuals in that market.
b) develop a statement of what is to be accomplished through marketing activities.
c) develop plans for implementation and control.
d) develop an adequate marketing control process.
e) determine marketing objectives.
a) identify and analyze a target market and develop a marketing mix to satisfy individuals in that market.
18. The marketing plan is
a) a plan of all aspects of an organization’s business strategy.
b) written differently for each SBU.
c) a written document detailing activities to be performed to implement and control marketing actions.
d) designed to specify not only marketing, but all other functional areas of business activities as well.
e) updated only periodically.
c) a written document detailing activities to be performed to implement and control marketing actions.
19. CyberCycle Inc., is preparing a written document specifying the activities to be performed to implement and control its marketing activities. This document is called the
a) profit plan.
b) marketing program.
c) strategic market program.
d) strategic business plan.
e) marketing plan.
e) marketing plan.
20. The strategic planning process begins with
a) development of an organizational mission statement.
b) development of marketing strategy.
c) analysis of the marketing environment.
d) analysis of target markets.
e) development of a marketing plan.
c) analysis of the marketing environment.
21. A __________ is something that an organization does extremely well and may give a company an advantage over its competition.
a) benchmark
b) sustainable competitive advantage
c) core competency
d) strategic vision
e) marketing opportunity
c) core competency
22. A market opportunity results from
a) the right combination of circumstances and timing that permit an organization to take action to reach a particular target market.
b) monitoring the firm’s capabilities.
c) an increase in market share and profits.
d) an assessment of environmental forces.
e) technological determinism.
a) the right combination of circumstances and timing that permit an organization to take action to reach a particular target market.
23. When the right combination of circumstances occurs at the right time to allow an organization to take action toward a target market, the firm is faced with a
a) market objective.
b) market requirement.
c) strategic market plan.
d) market opportunity.
e) corporate objective.
d) market opportunity.
24. In response to the increase in demand for organic foods, Wegmans, Inc., a regional supermarket, recently created organic food departments within their large stores. The creation of these departments was a result of
a) a core compentency
b) a market opportunity
c) its sales orientation
d) its distribution plan
e) a competitive advantage
b) a market opportunity
25. Realizing that consumers have begun to seek vehicles that use less gasoline, Toyota heavily promotes its hybrid automobiles to capitalize on this __________ while the strategic window is open.
a) marketing mix
b) market opportunity
c) objective
d) requirement
e) goal
b) market opportunity
26. After determining that consumers had concerns about fat and carbohydrates, Sardino’s Pizza began offering a low-fat, low-carb pizza product. The creation of this new product was the result of
a) a competitive advantage.
b) a well-defined mission statement.
c) good strategic planning.
d) a market opportunity.
e) opportunistic behavior.
d) a market opportunity.
27. A strategic window is
a) the right combination of circumstances and timing that permit an organization to take action to reach a particular target market.
b) what determines the factors that are most important in making a market attractive or strong.
c) customers’ requirements or desired benefits.
d) a temporary period of optimum fit between the key requirements of a market and the particular capabilities of a firm competing in that market.
e) the process that seeks information about events and relationships in a company’s outside environment.
d) a temporary period of optimum fit between the key requirements of a market and the particular capabilities of a firm competing in that market.
28. A competitive advantage exists when a
a) firm matches a core competency to opportunities it has discovered in the marketplace.
b) firm does marketing better than its competitors.
c) combination of circumstances and timing allow a firm to reach an attractive target market.
d) firm observes a fit between the key requirements of a market and its own capabilities.
e) firm has a strong marketing plan.
a) firm matches a core competency to opportunities it has discovered in the marketplace.
29. A __________ is created when a company matches its core competency to opportunities it has discovered in the marketplace.
a) market opportunity
b) market requirement
c) competitive advantage
d) strategic window
e) competitive opportunity
c) competitive advantage
30. Microsoft’s marketing, technical skills, and continuing investment in improving its software systems give it a(n) ___________ because it makes computers easier to use.
a) organizational opportunity advantage
b) strategic window
c) market requirement
d) market opportunity
e) competitive advantage
e) competitive advantage
31. An analysis of ___________ examines internal factors that give the organization certain advantages and disadvantages in meeting the needs of its target markets.
a) opportunities and threats
b) market opportunities
c) strengths and weaknesses
d) activities and responsibilities
e) organizational resources
c) strengths and weaknesses
32. John Deere’s strong name recognition and solid customer demand for its farm and garden equipment are two elements of the firm’s
a) strengths.
b) opportunities.
c) weaknesses.
d) threats.
e) strategies.
a) strengths.
33. Favorable conditions in the marketplace environment that could produce business rewards for the organization if acted upon properly are called
a) strengths.
b) market strategies.
c) market niches.
d) threats.
e) opportunities.
e) opportunities.
34. Successful business organizations should take actions to convert internal weaknesses into ___________ and external threats into ___________.
a) opportunities; core competencies
b) core competencies; strengths
c) opportunities; strengths
d) strengths; core competencies
e) strengths; opportunities
e) strengths; opportunities
35. When Opryland Hotel wants to have at least 90 percent of its customers indicating they had a memorable and satisfying experience at the hotel, this is an example of
a) implementing the marketing mix
b) maintaining their corporate identity
c) a marketing objective
d) a strategic plan
e) a mission statement
c) a marketing objective
36. An organization’s business goals should be derived from its
a) mission statement.
b) strategic plan.
c) strategic business plan.
d) marketing plan.
e) marketing strategy.
a) mission statement.
37. The reputation and well-known brand name of Rolex watches represents a ________ for Rolex.
a) competitive advantage
b) core competency
c) market opportunity
d) strategic window
e) pricing strategy
b) core competency
c) market opportunity
38. A firm’s unique symbols, personalities, and philosophies comprise its
a) corporate persona.
b) corporate identity.
c) corporate character.
d) CEO’s identity.
e) ethics.
b) corporate identity.
39. Which of the following is a characteristic of a marketing objective?
a) It is consistent with both business-unit and corporate strategy.
b) It is a verbal agreement, not in writing.
c) It is not written in measurable terms..
d) It does not specify a time frame for its accomplishment.
e) It clearly identifies how marketing strategy will be implemented.
a) It is consistent with both business-unit and corporate strategy.
40. Which of the following statements is incorrect?
a) Of the three levels of planning, corporate strategy is the broadest.
b) Business-unit strategy should be consistent with the corporate strategy.
c) Marketing strategy should be consistent with both the business-unit and corporate strategies.
d) Strategic planning begins at the marketing level and proceeds through business-unit and corporate levels.
e) Strategic planning begins at the corporate level and proceeds through business-unit and marketing levels.
d) Strategic planning begins at the marketing level and proceeds through business-unit and corporate levels.
41. Resource deployment and coordination of functional areas of business are determined by
a) the mission statement.
b) corporate strategy.
c) business-unit strategy.
d) marketing strategy.
e) the marketing mix.
b) corporate strategy.
42. ___________ strategy determines the means for utilizing resources in the functional areas of marketing, production, finance, research and development, and human resources to achieve the organization’s goals.
a) Corporate
b) Business-unit
c) Marketing
d) Mission statement
e) Marketing mix
a) Corporate
43. Within a business organization, a profit center that is self-supporting in terms of sales, markets, production, and other resources is known as a
a) profit entity.
b) strategic business unit.
c) marketing program.
d) small business.
b) strategic business unit.
44. Kraft purchased the Duracell Battery Company and now operates this division as a separate profit center within the firm. In this example, Duracell is a(n) ___________ unit of Kraft.
a) strategic business
b) marketing
c) dependent
d) independent
e) corporate
a) strategic business
45. A group that has the willingness, ability, and authority to buy a product is a
a) market.
b) consumer.
c) strategic business unit.
d) business customer.
e) strategic window.
a) market.
46. According to the text, a market is defined as
a) a place to buy products.
b) the buyers of the products that a company develops, promotes, prices, and distributes.
c) the specific group of customers on whom an organization focuses its marketing efforts.
d) a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase these products.
e) the percentage of a group of customers that actually buys a specific product from a specific company.
d) a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase these products.
47. Jason, a 17-year old high school student, wants to buy a pack of Marlboro Lights. He has the money to purchase them, but he is still not considered to be a market for the product due to his lack of _____ to buy.
a) ablity
b) willingness
c) authority
d) need
e) location
c) authority
48. The Boston Consulting Group’s matrix is based on the
a) idea that a firm’s market share and market attractiveness are the important factors for a marketing strategy.
b) assumption that a firm’s actions have a profitable impact on marketing strategy.
c) business position and market attractiveness of the firm.
d) philosophy that a product’s market growth rate and its market share are important determinants of its marketing strategy.
e) idea that a product’s market growth rate and market attractiveness determine the marketing strategy.
d) philosophy that a product’s market growth rate and its market share are important determinants of its marketing strategy.
49. According to the Boston Consulting Group, marketers may classify their products as all of the following except
a) dogs.
b) cash contributors.
c) question marks.
d) stars.
e) cash cows.
b) cash contributors.
50. Based on the work by the Boston Consulting Group, products with a dominant share of the market and good prospects for growth are
a) dogs.
b) cash cows.
c) stars.
d) question marks.
e) pigs.
c) stars.
51. The Boston Consulting Group classifies products that have a dominant market share but low prospects for growth and that generate more cash than is required to maintain market share as
a) dogs.
b) cash cows.
c) stars.
d) cash contributors.
e) question marks.
b) cash cows.
52. The director of marketing for 3M tapes tells the rest of the management team, “When it comes to our transparent packaging tape unit, our strategy will be to use funds generated here to support our venture in the industrial bonding market.” This strategy indicates that the packaging tape unit falls into which one of the following classifications?
a) Problem child
b) Star
c) Cash cow
d) Dog
e) Question mark
c) Cash cow
53. The percentage of a market which actually buys a specific product from a specific company is referred to as that product’s
a) strategic segment
b) target market
c) market share
d) market cut
e) market position
c) market share
54. According to the Boston Consulting Group, question marks are characterized as products
a) having a small share of a growing market and requiring large amounts of cash to build market share.
b) generating more cash than is required to maintain share.
c) encompassing the greatest number of products.
d) existing at a cost disadvantage and revealing few opportunities for growth at a reasonable cost.
e) having substantial reported profits but needing a lot of cash to finance the rate of growth.
a) having a small share of a growing market and requiring large amounts of cash to build market share.
55. Which of the following is the most specific and detailed type of business strategy?
a) business-unit
b) marketing
c) corporate
d) customer service
e) tactical
b) marketing
56. High Gliding Air Academy is developing its marketing mix for the coming year. Its managers know that they must first select _________, which may be the most important decision they make in the planning process.
a) the promotional strategy
b) a distribution method
c) the pricing strategy
d) a target market
e) the desired profit margin
d) a target market
57. Which of the following statements about the marketing mix is incorrect?
a) The selection of the target market serves as the basis for the creation of the marketing mix.
b) The elements of the marketing mix are sometimes referred to as marketing mix variables.
c) Each element of the marketing mix must be precisely matched with the needs of the target market.
d) Once a marketing mix has been created for a particular target market, it cannot be changed until a new strategic window opens.
e) Each element of the marketing mix must be precisely matched with the other elements of the marketing mix.
d) Once a marketing mix has been created for a particular target market, it cannot be changed until a new strategic window opens.
58. Business decisions made in creating a marketing mix
a) are made before a target market is identified.
b) are unchangeable once they are agreed upon by management.
c) are only as good as the organization’s understanding of the needs of the target market.
d) usually take place when a strategic window is open.
e) must always be consistent with the firm’s opportunities.
c) are only as good as the organization’s understanding of the needs of the target market.
59. All marketing mix decisions must have two characteristics: ___________ and ___________.
a) consistency; flexibility
b) consistency; rigidity
c) formality; flexibility
d) variability; flexibility
e) formality; rigidity
a) consistency; flexibility
60. Gucci Group, a marketer of high-fashion products, achieved a company turnaround by ensuring that its brand had the same image and proper display around the world. It also lowered prices on some items, like handbags, to be more competitive. This illustrates a company working to develop a marketing mix that is both _______ and _______.
a) consistent; flexible
b) formal; flexible
c) variable; flexible
d) consistent; rigid
e) consistent; formal
a) consistent; flexible
61. A competitive advantage that cannot be readily copied by the competition is referred to as a(n) __________ advantage.
a) controllable
b) sustainable
c) noncopyable
d) effective
e) implementable
b) sustainable
62. Harley-Davidson’s Harley Owner’s Group (HOG) helps to foster strong relationships between riders and their motorcycles, giving it a(n) _____ over other motorcycle manufacturers.
a) controllable advantage
b) uncontrollable competitive advantage
c) sustainable marketing advantage
d) effective competitive advantage
e) sustainable competitive advantage
e) sustainable competitive advantage
63. Because of its highly efficient and low-cost distribution system, Walmart has a _________ advantage over Kmart.
a) nonsustainable competitive
b) sustainable marketing
c) sustainable control
d) sustainable implementation
e) sustainable competitive
e) sustainable competitive
64. A marketing plan
a) is characteristic of production-oriented firms and other mass producers.
b) provides a framework for implementing and controlling marketing activities.
c) always increases the marketing manager’s operating costs.
d) produces plans that are short term in orientation.
e) restricts the marketing manager’s future options.
b) provides a framework for implementing and controlling marketing activities.
65. Starbucks is presently involved in a process of assessing marketing opportunities and resources, determining marketing objectives, re-defining marketing strategies, and developing guidelines for implementation and control. Thus, Starbucks is involved in
a) strategic analysis.
b) marketing planning.
c) marketing management.
d) marketing.
e) market organization.
b) marketing planning.
66. Which of the following is not a purpose of the marketing plan?
a) Communicate internally with employees
b) Assign tasks and responsibilities for implementation
c) Specify the allocation of resources
d) Monitor the performance of a marketing strategy
e) Serve as a contract with the customer
e) Serve as a contract with the customer
67. Hallaway’s Corp.’s new shampoo, VS2, is faltering badly in the market. Hallaway’s marketing personnel are unsure who is responsible for various marketing tasks, when these tasks are to be completed, or what resources have been allocated. Hallaway Marketing Director Carolyn Willis said that the problem is that VS2 has the most poorly written ___________ she has ever seen.
a) marketing plan
b) competitive plan
c) implementation plan
d) media schedule
e) product specification sheet
a) marketing plan
68. The Texas Pitt Barbecuem Corporation has conducted a SWOT analysis of its competition, and sees a marketing opportunity for its new Texas Pit Barbecue restaurant. It has developed its marketing plan to include the type of products it will sell, the location for the restaurant, and the pricing it will use. Their plan includes a marketing objective to make a profit of 5% the first year of operation. So far, the owners of the restaurant have eliminated a key piece of the marketing plan, which is ______.
a) specifying how they will achieve their marketing objective
b) how they will address the competition’s prices
c) coming up with a quantitative measure for their objective
d) developing a qualitative measure for their objective
e) assessing their weaknesses
a) specifying how they will achieve their marketing objective
69. Which of the following is not a component of a marketing plan?
a) Environmental analysis
b) Marketing strategies
c) Product
d) Executive summary
e) Marketing implementation
c) Product
70. A marketing plan usually begins with a(n)
a) executive summary.
b) introduction to the company’s marketing objectives.
c) summary of current performance as compared with past performance.
d) situation analysis.
e) opportunity and threat analysis.
a) executive summary.
71. The process of putting marketing strategies into action is called
a) marketing implementation.
b) marketing control.
c) marketing action.
d) marketing auditing.
e) the marketing action plan.
a) marketing implementation.
72. In essence, all organizations have two types of strategy: ___________ is the strategy that the organization decides on during the planning phase, and ___________ is the strategy that actually takes place.
a) planned strategy; realized strategy
b) intended strategy; realized strategy
c) intended strategy; implemented strategy
d) planned strategy; implemented strategy
e) realized strategy; implemented strategy
b) intended strategy; realized strategy
73. The _________ strategy in an organization often does not live up to marketing planners’ expectations.
a) intended
b) expected
c) planned
d) control
e) realized
e) realized
74. Sayid’s employer is currently developing a new marketing strategy. The top managers have developed the marketing strategy and have given it to Sayid so that he can now develop an implementation plan. Sayid’s company will most likely end up with which type of strategy?
a) Decentralized
b) Centralized
c) Rigid
d) Intended
e) Realized
e) Realized
75. For marketing implementation to be successful, the needs of _________ customers must be met.
a) external
b) internal
c) both internal and external
d) planned
e) both planned and realized
c) both internal and external
76. Starbucks provides training and support to its employees, including health care benefits. Through these ____________ efforts Starbucks is better able to deliver quality products and service to its customers.
a) internal management
b). extended marketing
c). intended marketing
d). external marketing
e). internal marketing
e). internal marketing
77. Using information about customers to create marketing strategies that develop and sustain desirable long-term customer relationships is known as
a) computer resource management.
b) customer resource management.
c) customer relationship management.
d) customer research management.
e) e-marketing.
c) customer relationship management.
78. What focuses on using information about customers to create marketing strategies that develop and sustain desirable customer relationships?
a) Customer relationship management
b) Electronic data interchange
c) Business-to-consumer marketing
d) Strategic partnerships
e) The marketing concept
a) Customer relationship management
79. Electronic marketing has greatly improved the ability of marketers to target individual customers. As a result, many feel that marketing’s emphasis is shifting from share of market to share of
a) budget.
b) consumer online time.
c) customer.
d) awareness.
e) commitment.
c) customer.
80. Borders Books uses technology to help them identify specific customers, establish interactive dialogues with them to learn about their needs, and combine this information with their purchase histories to customize products to meet those needs. Borders Books is using the _____ approach.
a) target market positioning
b) SWOT analysis
c) customer relationship management
d) total quality management
e) internal marketing
c) customer relationship management
81. Which of the following is false with regard to customer lifetime value?
a) It is a key measurement that forecasts a customer’s lifetime economic contribution based on continued relationship marketing efforts.
b) It can be calculated by taking the sum of the customer’s present value contributions to profit margins over a specific timeframe.
c) It includes not only an individual’s propensity to engage in purchases but also his or her strong word-of-mouth communication about the firm’s products.
d) All customers have equal value to a firm.
e) It is the only gauge that incorporates revenue, expense, and customer behavior and adopts a customer-centric approach.
d) All customers have equal value to a firm.
82. According to the text, the 80/20 rule suggests that
a) 80 percent of profits come from 20 percent of business customers.
b) 20 percent of profits come from 80 percent of business customers.
c) 20 percent of profits come from 80 percent of customers.
d) 80 percent of profits come from 20 percent of customers.
e) 80 percent of profits come from 20 percent of sales.
d) 80 percent of profits come from 20 percent of customers.
83. Customer relationship management is facilitated by gathering useful data from
a) telephone interactions with customers.
b) personal interactions with customers.
c) online interactions with customers.
d) all customer-contact points.
e) all exchange transactions.
d) all customer-contact points.
84. Customer relationship management systems cannot be effective unless they are developed as
a) market-share building tools.
b) profit-boosting tools.
c) selling tools.
d) cost-reduction tools.
e) relationship-building tools.
e) relationship-building tools.
85. The most important component of customer relationship management is
a) technology.
b) profits.
c) sales.
d) share of an individual customer’s purchases.
e) relationships with customers.
e) relationships with customers.
86. Meredith knows that whether she decides to interact with her customers in person, on the telephone, online, or by fax, that ________ should ultimately drive the marketing strategy.
a) marketing research
b) polite responsiveness
c) her customers
d) product availability
e) company goals
c) her customers
87. The employees of Zingerman’s Deli are its ______ customers.
a) external
b) extended
c) intended
d) internal
e) domestic
d) internal
88. Which of the following statements best describes total quality management?
a) A process aimed at improving product quality, increasing competition based on quality, and quality improvement among employees
b) The coordination of efforts directed at improving customer satisfaction, increasing employee participation, forming and strengthening supplier partnerships, and facilitating continuous quality improvements
c) A method of increasing overall financial benefits, emphasizing faster development of innovations, and improving customer satisfaction
d) A process directed at controlling marketing activities at a higher level of involvement among the firms’ employees
e) An approach used to emphasize the need for quality among a firm’s hierarchy of employees, beginning with top-level executives
b) The coordination of efforts directed at improving customer satisfaction, increasing employee participation, forming and strengthening supplier partnerships, and facilitating continuous quality improvements
89. Stratford Manufacturing is interested in total quality management and wants to learn more about its principles. Which of the following elements will Stratford not address in its investigation of TQM?
a) Improving customer satisfaction
b) Purchasing lowest-cost materials
c) Increasing employee participation
d) Strengthening supplier partnerships
e) Continuous product improvements
b) Purchasing lowest-cost materials
90. If Apple measured and evaluated the quality of its goods, services, and processes as compared with those of the best-performing companies in the computer industry, it would be employing
a) uniform commitment to quality marketing.
b) internal marketing.
c) external marketing.
d) quality marketing.
e) benchmarking.
e) benchmarking.
91. The term “______” describes measuring and evaluating a firm’s quality in products and processes against industry leaders.
a) total quality management
b) benchmarking
c) internal marketing
d) empowerment
e) implementation
b) benchmarking
92. A server in a fine restaurant has the authority to give a complimentary dessert to a dissatisfied customer when the customer complains about the meal or service. This is an example of
a) benchmarking.
b) individualism.
c) good training.
d) empowerment.
e) localized authority.
d) empowerment.
93. ___________ involves giving customer-contact employees the authority and responsibility to make marketing decisions without seeking the approval of a supervisor.
a) Benchmarking
b) Internal marketing
c) Total quality management
d) Marketing implementation
e) Empowerment
e) Empowerment
94. Kate is upset because the bank did not credit her account with a deposit, which resulted in a returned check to Kate’s landlord. When she was told the branch manager was on vacation, Kate resigned herself to waiting two weeks to have the matter resolved. To her surprise, though, the receptionist apologized for the error and drafted a letter to Kate’s landlord while Kate waited. The bank was engaging in which type of decision-making strategy?
a) Employee empowerment
b) Centralized management
c) Structured
d) Immediate-focused
e) Product-focused
a) Employee empowerment
95. In a traditional organization, marketing decisions are likely to be
a) very decentralized.
b) centralized at the top levels of the organization.
c) made by frontline employees.
d) made by frontline managers.
e) made only by the CEO.
b) centralized at the top levels of the organization.
96. At Mrs. Fill’s Cookie Co., top-level managers delegate very little authority to lower-level employees. Mrs. Fill’s is a(n) ___________ organization.
a) centralized
b) decentralized
c) empowered
d) marketing-oriented
e) total quality management
a) centralized
97. The Acme Corporation is expanding operations into countries outside the United States. To improve local managers’ responsiveness to local conditions, Acme’s senior management has decided to delegate decision-making authority further down the chain of command. Acme is
a) building a marketing-oriented organization.
b) empowering employees.
c) centralizing.
d) decentralizing.
e) making a serious error.
d) decentralizing.
98. A marketing unit can be organized according to functions, products, regions, and
a) sales.
b) target markets.
c) competitive units.
d) types of customers.
e) product features.
d) types of customers.
99. Key factors in determining the best organizational structure for a marketing unit are the
a) preferences of top management.
b) fiscal resources of the firm.
c) number of employees.
d) diversity of the firm’s products and the characteristics and needs of the people in the target market.
e) skill levels of employees.
d) diversity of the firm’s products and the characteristics and needs of the people in the target market.
100. According to the textbook, which of the following statements is most accurate?
a) A small company always should organize by products, and a large organization should organize by regions.
b) There is no single approach to organizing a marketing unit that works well in all businesses.
c) Some organizations, by nature, have no specific internal structure.
d) Organizing by type of customer works best for companies with few groups of customers.
e) Using several bases for organizing leads to uncoordinated marketing management.
b) There is no single approach to organizing a marketing unit that works well in all businesses.
101. If you were a marketing manager, under which type of organizational structure would you most likely be working if your firm were a large business with centralized marketing operations?
a) Organization by type of customer
b) Organization by function
c) Organization by regions
d) Organization by products and regions
e) Organization by products
b) Organization by function
102. A disadvantage of organizing a firm’s marketing unit by products is that
a) product managers do not have adequate control over marketing activities.
b) large firms might experience coordination problems.
c) it can be rather expensive.
d) specialized marketing assistance is less readily available.
e) marketing flexibility is limited.
c) it can be rather expensive.
103. A firm that markets diverse products would most likely base the organization of its marketing department on
a) products.
b) regions.
c) functions.
d) types of customers.
e) marketing objectives.
a) products.
104. Procter & Gamble, like many firms in the consumer packaged-goods industry, is organized by
a) function.
b) product.
c) region.
d) types of customers.
e) subregion.
b) product.
105. Ford has centralized marketing operations with personnel who direct marketing research, distribution, sales, advertising, and so forth reporting directly to the top-level marketing executive. Ford’s marketing department is organized by
a) product.
b) region.
c) types of customers.
d) subregion.
e) function.
e) function.
106. Organizing a marketing unit by regions works well for a company that
a) produces and markets diverse products.
b) is small and has a centralized marketing operation.
c) markets products throughout the nation.
d) has several groups of customers whose needs and problems are different.
e) offers specialized marketing mixes for different products.
c) markets products throughout the nation.
107. Suppose a customer calls Ann’s office at Frito-Lay in Atlanta. The customer has a friend in Seattle who was just telling her about a new snack Frito-Lay has introduced that is selling rapidly. Ann’s office does not market this product, and at the present knows very little about it. Based on this information, this firm is most likely organized according to which of the following?
a) Function
b) Product
c) Region
d) Customer
e) Market
c) Region
108. A firm that wants to put more senior management personnel into the field, to get closer to customers, and to enable the company to respond more quickly and efficiently to competitors would probably organize its marketing unit on the basis of
a) functions.
b) regions.
c) customer types.
d) markets.
e) products.
b) regions.
109. An appliance manufacturer that sells to large retail stores, wholesalers, and institutions would probably organize its marketing unit on the basis of
a) subregions.
b) national divisions.
c) types of customers.
d) functions.
e) products.
c) types of customers.
110. The marketing control process consists of
a) establishing goals, market scanning, and market share analysis.
b) establishing performance standards, evaluating performance, and reducing the differences between desired and actual performance.
c) establishing goals and measuring performance.
d) planning, implementing, and measuring marketing activities.
e) setting objectives, implementing strategies, and reducing the differences between desired and actual performance.
b) establishing performance standards, evaluating performance, and reducing the differences between desired and actual performance.
111. Marketing managers at Consolidated Equipment Corporation are involved in establishing marketing performance standards, evaluating performance, and reducing the differences between actual and desired performance. These marketing managers are engaged in
a) the systems design process.
b) the marketing control process.
c) marketing systems design.
d) the marketing audit.
e) marketing evaluation.
b) the marketing control process.
112. The first step in the marketing control process is to
a) take corrective action.
b) reduce the difference between actual and desired standards.
c) evaluate actual performance.
d) compare actual performance and standards.
e) establish performance standards.
e) establish performance standards.
113. An expected level of performance against which actual performance can be compared is a
a) standard performance.
b) standard of excellence.
c) step in sales analysis.
d) performance standard.
e) corrective standard.
d) performance standard.
114. Morris Business Products Co. has established a monthly sales quota of $150,000. This is a(n)
a) marketing control process.
b) evaluation of actual performance.
c) evaluation standard.
d) sales analysis.
e) performance standard.
e) performance standard.
115. One way that Saturn evaluates its product and service level is by how well it ranks on the J. D. Power & Associates Sales Satisfaction Survey. In doing so, Saturn is
a) controlling marketing activities.
b) taking corrective action.
c) empowering its employees.
d) evaluating actual performance.
e) setting performance standards.
d) evaluating actual performance.
116. Marketing managers can take each of the following corrective actions for reducing a discrepancy between established performance standards and actual performance except
a) improving actual performance.
b) reducing the performance standard.
c) totally changing the performance standard.
d) changing the marketing strategy.
e) coordinating a new step in performance analysis.
e) coordinating a new step in performance analysis.
117. When an organization attempts to control its marketing activities, it may find it difficult to
a) determine their effect on sales volume.
b) use the information it collects.
c) obtain the necessary information.
d) get the accounting department to cooperate.
e) develop a marketing plan.
c) obtain the necessary information.
118. The time lag between the performance of marketing activities and their results
a) limits the marketing manager’s ability to measure the effectiveness of marketing activities.
b) facilitates the ability to measure performance.
c) increases the chance of accurate measurement.
d) limits the amount of money to be spent on measurement.
e) increases the likelihood of having a successful marketing mix.
a) limits the marketing manager’s ability to measure the effectiveness of marketing activities.
12. To monitor changes in the marketing environment effectively, marketers must engage in
a) environmental scanning and analysis.
b) economic scanning
c) self-regulatory analysis
d) marketing research analysis
e) information collecting
a) environmental scanning and analysis.
13. Collecting information from secondary sources such as business, government, trade, and general-interest publications plays an important role in
a) environmental analysis.
b) competitive forces.
c) environmental scanning.
d) procompetitive legislation.
e) self-regulatory forces.
c) environmental scanning.
Three primary methods of collecting information for environmental scanning are
a) marketing research, company records, and advance orders.
b) secondary sources, company records, and observation.
c) executive knowledge, media, and marketing research.
d) observation, secondary sources, and marketing research.
e) company database, executive knowledge, and research.
d) observation, secondary sources, and marketing research.
15. Dell Computer collects information about a wide variety of competitive, economic, political, legal and regulatory, technological, and sociocultural forces that affect its marketing activities. This process is called
a) environmental scanning.
b) survey of environment.
c) marketing.
d) environmental analysis.
e) marketing information processing.
a) environmental scanning.
16. If M&M Mars Candies found a magazine article that provided key information on the television viewing habits of major candy consumer groups, this would be an example of information obtained through environmental
a) scanning.
b) forces.
c) analysis.
d) strategizing.
e) management.
a) scanning.
17. XM Radio is concerned about how the increasing use of MP3 players will affect the future sales of its satellite radio service. The company decides to gather information about the changing trends in music access to prepare for this trend. XM Radio’s process is called
a) environmental scanning.
b) target marketing.
c) surveying.
d) environmental analysis.
e) dynamic responsiveness.
a) environmental scanning.
18. According to the textbook, a manager’s duties in an environmental analysis include
a) checking information for accuracy, resolving inconsistencies, and assigning significance to the findings.
b) observation and assessment.
c) conducting research, assessment, and reporting.
d) observation, market research, and fact finding.
e) checking the company database, conducting research, and reporting.
a) checking information for accuracy, resolving inconsistencies, and assigning significance to the findings.
19. When PepsiCo takes the information collected through research and attempts to assess and interpret what it means for its soft-drink marketing efforts, PepsiCo is engaged in environmental
a) scanning.
b) forces.
c) management.
d) manipulation.
e) analysis.
e) analysis.
20. Nabisco learned that health-conscious consumers preferred lower fat snack and lower-carbohydrate foods. At the same time, the firm saw sales of such products slumping and was careful not to launch any new varieties of these products for a while. Which of the following best describes Nabisco’s action?
a) Environmental scanning
b) Environmental marketing
c) Demarketing
d) Segmentation
e) Environmental analysis
e) Environmental analysis
21. After Home Depot gathers information related to its marketing environment, it attempts to define current environmental changes and predict future changes. This determines possible opportunities and threats facing the company. It illustrates the process that is called
a) environmental scanning.
b) survey of environment.
c) marketing.
d) environmental analysis.
e) marketing information processing.
d) environmental analysis.
22. Marketers who attempt to influence and change the various environmental forces have a(n) _____ response to these forces.
a) reactive
b) inactive
c) variable
d) positive
e) proactive
e) proactive
23. Toyota has developed aluminum car bodies that are 100 percent recyclable and light enough to help conserve fuel. What kind of response is this to environmental forces?
a) Proactive
b) Competitive
c) Reactive
d) Inactive
e) Controllable
a) Proactive
24. Although Matt’s company engages in environmental scanning and analysis, he feels more comfortable changing his policies and strategies to adapt to environmental forces rather than trying to influence these forces. Matt has a(n) _____ approach to marketing environmental forces.
a) inactive
b) reactive
c) proactive
d) negative
e) variable
b) reactive
25. Marketers who view political forces as being beyond their control are taking a ___________ response toward these forces.
a) reactive
b) aggressive
c) proactive
d) competitive
e) liberal
a) reactive
26. The textbook suggests that the best approach a firm can take in responding to marketing environmental forces is
a) reactive.
b) proactive.
c) inactive.
d) active.
e) variable.
e) variable.
27. When marketers define their target market, they simultaneously establish a set of
a) technologies.
b) monopolies.
c) competitors.
d) government regulations.
e) sociocultural forces.
c) competitors.
28. Companies that market products with similar features, benefits, and prices to the same customer group are known as _________ competitors.
a) generic
b) product
c) brand
d) total budget
e) monopolistic
c) brand
29. Which of the following would represent a brand competitor for Ford’s Escape Hybrid sport utility vehicle?
a) Honda Pilot
b) Toyota’s Highlander Hybrid
c) Honda Civic Hybrid
d) Taxi ride
e) Chevrolet Tahoe rented from Avis
b) Toyota’s Highlander Hybrid
30. __________ competitors provide very different products that satisfy the same basic customer need.
a) Brand
b) Generic
c) Total budget
d) Product
e) Marketing
b) Generic
31. ___________ competitors are those that compete in the same product class, but their products have different features, benefits, and prices.
a) Total budget
b) Generic
c) Brand
d) Product
e) Price
d) Product
32. Which of the following is not at the generic competitor level for Ford’s Expedition sport utility vehicle?
a) Saturn SKY
b) Enterprise car rental
c) Harley Davidson motorcycle
d) Schwinn mountain bike
e) Taxi cab ride
a) Saturn SKY
33. Marketers primarily focus their environmental analysis on ____ competitors.
a) brand
b) product
c) total budget
d) generic
e) monopolistic
a) brand
34. In today’s marketing environment, competitors can take on many forms. For example, Diet Coke can be seen as a competitor to Wrigley’s Double Mint chewing gum. In this circumstance, these two products are described as ___________ competitors.
a) generic
b) product
c) total budget
d) monopolistic
e) pure
c) total budget
35. Due to limited resources, a consumer decided to serve Hawaiian Punch to a New Year’s Eve party crowd instead of Korbel champagne. As a result of this action, Korbel and Hawaiian Punch can be viewed as ___________ competitors.
a) generic
b) product
c) total budget
d) oligopolistic
e) pure
a) generic
36. Companies that compete for the same limited financial resources of the same customers are known as _________ competitors.
a) oligopolic
b) total budget
c) generic
d) product
e) brand
b) total budget
37. ___________ competitors are the most significant to marketers because buyers see the different products of these firms as direct substitutes for each other.
a) Oligopolic
b) Total budget
c) Generic
d) Product
e) Brand
e) Brand
38. Mixed Concrete cannot be shipped farther than twenty-five miles because the concrete might harden in the truck. Citrus County Concrete Company is the only supplier of mixed concrete to customers within a thirty-mile radius. Citrus County Concrete is an example of which one of the following competitive structures?
a) Monopoly
b) Oligopoly
c) Monopolistic competition
d) Pure competition
e) Monopsony
a) Monopoly
39. The four major competitive structures are
a) monopolies, oligopolies, oligopolistic monopolies, and pure competition.
b) pure competition, heavy competition, moderate competition, and light competition.
c) brand, product, total budget, and generic.
d) oligopolies, monopolies, monopolistic competition, and pure competition.
e) monopolies, limited competition, oligopolistic competition, and pure competition.
d) oligopolies, monopolies, monopolistic competition, and pure competition.
40. What type of competitive structure exists when a firm produces a product that has no close substitutes?
a) Monopoly
b) Oligopoly
c) Monopolistic competition
d) Pure competition
e) Mixed competition
a) Monopoly
41. The type of competitive structure that exists in the case where there are almost no substitutes for a product is a(n)
a) monopolistic competition.
b) oligopoly.
c) pure competition.
d) monopoly.
e) noncompetition.
d) monopoly.
42. The American automobile industry used to be dominated by “The Big Three,” including General Motors, Ford, and Chrysler. However, as many more foreign competitors began influencing this market, the American companies had to modify and differentiate their products. The automobile industry moved from a(n) ______ structure to a(n) _______ structure.
a) monopolistic; oligopolistic
b) oligopolistic; pure competition
c) oligopolistic; monopolistic competition
d) monopolistic competition; pure competition
e) monopolistic; monopolistic competition
c) oligopolistic; monopolistic competition
43. The D-Lite Corporation produces a unique type of light bulb that is used in refrigerator manufacturing. D-Lite is the only maker of this light bulb, and there are no close substitutes for it. In this case, the D-Lite Corporation would be
a) an oligopoly.
b) a monopoly.
c) involved in monopolistic competition.
d) involved in perfect competition.
e) involved in a perfect oligopoly.
b) a monopoly.
44. Which of the following firms would be most likely to have a monopoly for its competitive environment?
a) TimeWarner Cable TV
b) Mitchell Trucking
c) Continental Airlines
d) Rogers Plumbing
e) Chemlawn Lawn Care
a) TimeWarner Cable TV
45. Most marketers operate in a competitive environment of either
a) oligopoly or monopoly.
b) oligopoly or monopolistic competition.
c) oligopoly or pure competition.
d) monopoly or pure competition.
e) pure competition or monopolistic competition.
b) oligopoly or monopolistic competition.
46. When a firm has many potential competitors and tries to develop a marketing strategy to differentiate its products from the competitors’ products, a(n) _______ structure exists in the competitive environment.
a) oligopoly
b) monopoly
c) pure competition
d) oligopolistic competition
e) monopolistic competition
e) monopolistic competition
47. What type of competitive structure exists when just a few sellers control a large portion of the supply of a product?
a) Monopoly
b) Oligopoly
c) Monopolistic competition
d) Mixed competition
e) Pure competition
b) Oligopoly
48. If in an industry, none of the many sellers could influence the price of supply of its products, this industry would be characterized as
a) pure competition.
b) a monopoly.
c) monopolistic competition.
d) oligopolistic competition.
e) an oligopoly.
a) pure competition.
49. The tobacco industry in the United States is dominated by three large companies. When any one of these companies changes its price on tobacco products, the other two companies quickly adjust their prices to match it. From these characteristics, the tobacco industry could best be described as
a) price sensitive.
b) opportunistic.
c) monopolistic competition.
d) an oligopoly.
e) a monopoly.
d) an oligopoly.
50. J. Pitner Clothing is a medium-size specialty men’s and women’s clothing store in a market with many other specialty stores, department stores, and discounters. It has established a reputation for offering high-quality, fashionable merchandise with quality service. J. Pitner’s competitive environment would best be characterized as
a) a monopoly.
b) an oligopoly.
c) monopolistic competition.
d) pure competition.
e) faceted competition.
c) monopolistic competition.
51. In general, which of the following competitive structures is an organization least likely to operate?
a) Monopoly
b) Monopolistic competition
c) Oligopoly
d) Elastic competition
e) Pure competition
e) Pure competition
52. The two least common competitive structures at the opposite ends of the continuum are
a) monopolies and oligopolies.
b) pure competition and monopolies.
c) monopolistic competition and monopolies.
d) pure competition and no competition.
e) oligopolies and pure competition.
b) pure competition and monopolies.
53. The best approach for a company to take when monitoring its competitors is
a) watching for increases and decreases in competitors’ prices and match them.
b) analyzing all information that is readily available about competitors.
c) sending employees to competitors’ offices and factories to observe their actions.
d) developing a system for gathering ongoing information about competitors.
e) reading important business publications such as The Wall Street Journal.
d) developing a system for gathering ongoing information about competitors.
54. Which of the following attributes of a Toyota Scion would be most appropriate to emphasize in television commercials during an economic recession?
a) Stereo system
b) Prestige
c) Durability
d) Leg room
e) Sporty design
c) Durability
55. In a period of economic recovery, the best marketing strategy for FedEx would be characterized by which of the following features?
a) Flexibility
b) Aggressiveness
c) Austerity
d) Retrenchment
e) Boldness
a) Flexibility
56. Assuming that inflation is low, high buying power characterizes the _____ stage of the business cycle.
a) prosperity
b) depression
c) recovery
d) succession
e) recession
a) prosperity
57. During which stage of the business cycle is unemployment low and total income relatively high?
a) Repression
b) Prosperity
c) Recovery
d) Recession
e) Depression
b) Prosperity
58. Total buying power declines during periods of economic
a) recovery.
b) prosperity.
c) recession.
d) uncertainty.
e) expansion.
c) recession.
59. Although marketing theory supports the contrary, it is more probable that marketing budgets will be cut during periods of economic
a) recovery.
b) prosperity.
c) recession.
d) uncertainty.
e) expansion.
c) recession.
60. Consumers begin to become more price and value conscious during periods of
a) inflation.
b) prosperity.
c) recession.
d) depression.
e) recovery.
c) recession.
61. Consumer confidence is at a low during periods of
a) recession.
b) prosperity.
c) recovery.
d) slowdown.
e) depression.
e) depression.
62. Consumer confidence and willingness to spend begins to increase during periods of _____, and marketers must remain very flexible to make the necessary adjustments.
a) depression
b) prosperity
c) recovery
d) growth
e) recession
c) recovery
63. The strength of a person’s “buying power” depends on economic conditions and
a) level of income.
b) size of resources that can be traded in an exchange.
c) how much a consumer will buy.
d) a consumer’s spending pattern.
e) levels of median wealth.
b) size of resources that can be traded in an exchange.
64. Why are marketers interested in consumers’ levels of disposable income?
a) It accurately predicts future buying power.
b) It increases current buying power.
c) It is what is left after taxes and savings to buy luxuries with.
d) It is a ready source of buying power.
e) It is essential for forecasting future business trends.
d) It is a ready source of buying power.
65. The amount of money received through wages, rents, investments, pensions, and subsidies is called
a) income.
b) wealth.
c) discretionary income.
d) prosperity.
e) credit.
a) income.
66. If Toby Roberts has an income of $30,000, pays $6,000 in rent, $1,200 in utilities, and $5,000 in taxes per year, his disposable income is
a) $7,800.
b) $14,000.
c) $9,000.
d) $25,000.
e) $20,000.
d) $25,000.
67. Which category of income are marketers most interested in?
a) Wealth
b) Disposable income
c) Discretionary income
d) Total income
e) Extra income
b) Disposable income
68. What is the most important factor in distinguishing disposable income from income?
a) Taxes
b) Housing
c) Employment levels
d) Consumer spending
e) Saving
d) Consumer spending
69. A person’s buying power is a function of
a) disposable income.
b) past income, natural resources, and financial resources.
c) wages, rents, and investments.
d) income, wealth, and credit.
e) discretionary income.
d) income, wealth, and credit.
70. Discretionary income is associated with all of the following except
a) automobiles.
b) education.
c) pets.
d) furniture.
e) food.
e) food.
71. Heidi decided to spend some of her saved money on tickets to a Cold Play concert coming to town, and now she is planning on buying a new outfit for the concert. What type of resources is Heidi making decisions about?
a) Disposable income
b) Wealth
c) Buying power
d) Discretionary income
e) Savings income
d) Discretionary income
72. The accumulation of past income, natural resources, and financial resources is known as
a) income.
b) collected income.
c) credit.
d) wealth.
e) savings.
d) wealth.
73. Which of the following companies would probably be most interested in tracking discretionary income levels?
a) Safeway food stores
b) BMW automobiles
c) Gulf States Utilities
d) General Mills
e) Florida Orange Growers
b) BMW automobiles
74. By offering credit and financing through its GMAC division, General Motors is trying to help consumers
a) expand future buying power at the expense of current buying power.
b) expand disposable income at the expense of discretionary income.
c) expand current buying power at the expense of future buying power.
d) expand both disposable income and wealth.
e) decrease both disposable and discretionary income.
c) expand current buying power at the expense of future buying power.
75. When using credit to make purchases, consumers are
a) decreasing current buying power and increasing future buying power.
b) increasing their present discretionary income to extend purchasing power.
c) putting themselves at significant risk of financial disaster.
d) forgoing the accumulation of wealth to increase current income.
e) increasing current buying power at the expense of future buying power.
e) increasing current buying power at the expense of future buying power.
76. Which of the following terms refers to consumers’ propensity to buy?
a) Disposable income
b) Discretionary income
c) Buying power index
d) Buying power
e) Willingness to spend
e) Willingness to spend
77. Although Shelby’s income is comfortable, she hesitates to purchase a new car because she is concerned about how poor economic conditions may affect her company and in turn her future employment. Shelby lacks
a) disposable income.
b) willingness to spend.
c) buying power.
d) credit.
e) discretionary income.
b) willingness to spend.
78. Texas rice farmers wish to get their product into the Japanese market but are hindered by a complex maze of regulations imposed by the Japanese government. The farmers are most likely to attempt to influence which aspect of the marketing environment?
a) Sociocultural
b) Technological
c) Competitive
d) Economic
e) Political
e) Political
79. Textile companies historically face issues concerning the use of child labor in foreign countries and the various regulations created concerning this labor. The type of marketing environment forces executives for these companies are most likely to try to influence are ______ forces.
a) economic
b) competitive
c) political
d) environmental
e) sociocultural
c) political
80. Which of the following statements is true?
a) Political officials can not influence how much a government agency purchases and from whom.
b) A recent U.S. Supreme Court decision nullified federal laws that restricted political campaign fund contributions for corporate labor unions.
c) Company sponsored political advertising can only focus on topics and not on candidates.
d) Political officials can not accept direct corporate campaign contributions.
e) Companies can not participate in the political process through lobbying.
b) A recent U.S. Supreme Court decision nullified federal laws that restricted political campaign fund contributions for corporate labor unions.
81. Which of the following actions is illegal?
a) Political officials influencing how much a government agency purchases and from whom.
b) Corporate contributions to candidates.
c) Corporate contributions to elected officials.
d) Political officials helping businesses secure foreign markets.
e) Paying political officials not to enforce a particular law.
e) Paying political officials not to enforce a particular law.
82. Which of the following acts was enacted to prevent businesses from restraining trade and monopolizing markets?
a) Sherman Antitrust Act
b) Clayton Act
c) Federal Trade Commission Act
d) Robinson-Patman Act
e) Wheeler-Lea Act
a) Sherman Antitrust Act
83. If all the gas stations in a city collaborated to determine what gas prices should be charged, they would be violating the
a) Wheeler-Lea Act.
b) Clayton Act.
c) Robinson-Patman Act.
d) Sherman Antitrust Act.
e) Celler-Kefauver Act.
d) Sherman Antitrust Act.
84. Which of the following provides protection for and regulates brand names, brand marks, trade names, and trademarks?
a) Sherman Act
b) Clayton Act
c) Robinson-Patman Act
d) Lanham Act
e) Celler-Kefauver Act
d) Lanham Act
85. Procompetitive laws are those designed to
a) preserve competition.
b) protect the consumer.
c) ensure product safety.
d) reduce competition.
e) limit business lobbying of government officials.
a) preserve competition.
86. International Office Supplies Wholesaler charges different prices to its various customers without any legal justification. This company is in violation of the
a) Sherman Antitrust Act.
b) Wheeler-Lea Act.
c) Lanham Act.
d) Federal Trade Commission Act.
e) Robinson-Patman Act.
e) Robinson-Patman Act.
87. Price discrimination is prohibited by the ___________ Act.
a) Sherman
b) Wheeler-Lee
c) Robinson-Patman
d) Celler-Kefauver
e) Consumer Goods Pricing
c) Robinson-Patman
88. The 1990 Nutritional Labeling and Education Act directly prohibits
a) exaggerated claims made by health and fitness products.
b) putting the words “cholesterol-free” on any food package.
c) putting nutritional information on most food products.
d) exaggerated health claims on food packages.
e) the use of any health claim on food packaging.
d) exaggerated health claims on food packages.
89. Consumer protection legislation deals with all of the following legal concerns except
a) consumer safety.
b) sale of hazardous products.
c) monopolistic practices.
d) information disclosure.
e) health claims on food packages.
c) monopolistic practices.
90. The Children’s Online Privacy Protection Act prohibits websites and Internet providers from
a) selling products to children under the age of 18
b) seeking personal information from children under the age of 13
c) selling products to children under the age of 12
d) doing research about the buying habits of children under 15
e) selling products to children under the age of 15
b) seeking personal information from children under the age of 13
91. Which of the following are the most frequently sentenced organizational crimes?
a) False advertising and price discrimination
b) Price discrimination and fraud
c) Fraud and antitrust violations
d) Price fixing and antitrust violations
e) Fraud and price fixing
c) Fraud and antitrust violations
92. Of all the federal regulatory units, the ____________ most heavily influences marketing activities.
a) Food and Drug Administration (FDA)
b) Federal Communications Commission (FCC)
c) Enviornmental Protection Agency (EPA)
d) Federal Trade Commission (FTC)
e) Federal Power Commission (FPC)
d) Federal Trade Commission (FTC)
93. Which of the following agencies would most likely have jurisdiction over the problem with lead in the paint of children’s toys?
a) Consumer Product Safety Commission
b) Children’s Online Protection Act
c) Food and Drug Administration
d) Environmental Protection Agency
e) National Advertising Review Board
a) Consumer Product Safety Commission
94. The FTC can issue a cease-and-desist order, which is an injunction to
a) report to the FTC immediately.
b) stop doing whatever caused the complaint.
c) appear before the courts.
d) pay for damages caused by negligence of the firm.
e) close down the firm until further notice.
b) stop doing whatever caused the complaint.
95. Which of the following agencies regulates marketing activities the most?
a) Environmental Protection Agency
b) Food and Drug Administration
c) Federal Trade Commission
d) Better Business Bureau
e) National Advertising Review Board
c) Federal Trade Commission
96. Which of the following industries is most commonly regulated by state regulatory agencies?
a) Automobile manufacturers
b) Cigarette producers
c) Clothing manufacturers
d) Television networks
e) Utility companies
e) Utility companies
97. In its advertisements for Bud Light beer, Anheuser-Busch has decided to include a statement saying “Know when to say when.” This is an example of which one of the following types of regulatory forces affecting marketing efforts?
a) Federal regulation
b) State regulation
c) City regulation
d) Self-regulation
e) Social regulation
d) Self-regulation
98. Which of the following regulatory groups is a system of nongovernmental, independent, local regulatory agencies supported by local businesses?
a) The Chamber of Commerce
b) The National Advertising Review Board
c) The National Advertising Division
d) The Better Business Bureau
e) American Marketing Association
d) The Better Business Bureau
99. The Pharmaceutical Research and Manufacturers of America sets guidelines for its member firms to follow regarding the use of unethical practices. Thus, it is engaging in
a) legislation.
b) lobbying.
c) self-regulation.
d) environmental scanning.
e) trade restraint.
c) self-regulation.
100. Jared Bledsoe hires a local landscape firm to plant trees and shrubs in his yard. The firm plants mostly dead plants but refuses to return Jared’s money or replace the dead items. Jared’s best course of action would be to contact the
a) police.
b) Federal Trade Commission.
c) Sherman Commission.
d) Better Business Bureau.
e) federal district court.
d) Better Business Bureau.
101. The Better Business Bureau is probably the best-known
a) nongovernmental regulatory group.
b) state-operated enforcement agency.
c) national evaluator of advertisements.
d) federal regulatory group.
e) self-regulatory unit operating at the national level.
a) nongovernmental regulatory group.
102. In its advertisements, Johnson’s Hair Care Products claims that its KLTR-14 gel will restore the hair of bald men. Members of the NARB believe the claim is unsupportable. What action can the NARB take?
a) Force Johnson’s to stop running the advertisement.
b) File a complaint with the Federal Trade Commission.
c) Fine Johnson’s for each time the ad appears.
d) Sue Johnson’s Hair Care Products in federal court.
e) Sue Johnson’s Hair Care Products in state court.
b) File a complaint with the Federal Trade Commission.
103. Which of the following statements about self-regulatory programs is false?
a) Self-regulatory programs are usually less expensive than governmental regulatory programs.
b) Self-regulatory programs’ guidelines generally are more realistic and operational.
c) Nongovernmental self-regulatory programs have neither the tools nor the authority to enforce guidelines.
d) Self-regulatory guidelines generally are stricter than governmental regulatory programs.
e) When a trade association sets up industry guidelines, some firms that are in the industry but not in the trade association do not follow the guidelines.
d) Self-regulatory guidelines generally are stricter than governmental regulatory programs.
104. Which of the following is an advantage that self-regulatory agencies such as the BBB and the NARB have over governmental laws and regulatory agencies?
a) Firms must strictly abide by the rulings of self-regulatory agencies.
b) Establishment and implementation are usually less expensive.
c) They have better tools to enforce their rulings.
d) Guidelines are often stricter and create greater compliance from firms.
e) Money is very rarely an issue in enforcing decisions of self-regulatory agencies.
b) Establishment and implementation are usually less expensive.
105. When a firm continues to violate what the Better Business Bureau believes to be good business practices, what is one of the main actions the bureau will take?
a) Lead a consumer boycott of the business.
b) Sue the chief executive of the business.
c) Impose fines on the owners/managers of the business.
d) Support legal ordinances against the business.
e) Warn consumers of the unfair practices.
e) Warn consumers of the unfair practices.
106. What national self-regulatory organization screens ads?
a) Federal Advertising Review Division
b) National Advertising Review Board
c) Federal Communications Commission
d) Consumer Federation of America
e) Better Business Bureau
b) National Advertising Review Board
107. Technology is
a) the application of scientific knowledge to build products that customers desire.
b) the application of knowledge and tools to solve problems and perform tasks more efficiently.
c) applied sciences.
d) one of the weakest marketing environment forces.
e) the result of research performed primarily by universities.
b) the application of knowledge and tools to solve problems and perform tasks more efficiently.
108. More than half of the research of technology created is paid for by
a) corporations.
b) state and local governments.
c) the federal government.
d) large universities.
e) private investors.
c) the federal government.
109. Newsweek enhances its visibility to readers by making its magazine available on the Internet. Newsweek is capitalizing on which environmental force?
a) Economic
b) Competitive
c) Political
d) Legal and regulatory
e) Technological
e) Technological
110. The broad nature of technology as it moves through society is referred to as
a) reach.
b) dynamics.
c) environment
d) self-sustaining.
e) impact.
a) reach.
111. Which of the following is the best example of utilizing technology to improve consumer relationships?
a) Waiters recording orders on handheld computers
b) Surveying customers to determine their needs
c) Responding to changes in competitors’ prices
d) Introducing stringent package standards
e) Requiring dolphin-safe tuna
a) Waiters recording orders on handheld computers
112. Technology assessment is
a) measuring how much technology has been incorporated into an organization.
b) trying to foresee the effects of new products and processes on the firm’s operation and on society in general.
c) assessing how much technology one wants to incorporate into a company in the future.
d) judging how a firm’s products affect society.
e) weighing the cost of new technology to determine whether a firm can afford to use it.
b) trying to foresee the effects of new products and processes on the firm’s operation and on society in general.
113. When Cisco Systems attempts to anticipate the effect of new products and processes on its own innovations, other business organizations, and society in general, the firm is engaging in
a) product differentiation.
b) monopolistic competition.
c) technology assessment.
d) distinctive promotional methods.
e) innovative marketing.
c) technology assessment.
114. Many health care companies are making adaptations to meet the needs of an aging population as the demand for medical services and products such as diabetes supplies increases. This change in marketing strategy is best explained by a change in
a) demographics.
b) cultural values.
c) income levels.
d) consumerism.
e) subcultures.
a) demographics.
115. People for the Ethical Treatment of Animals (PETA) have demonstrated against the sale of coats made of animal furs. PETA’s efforts to change shoppers’ attitudes represent a __________ force for fur retailers.
a) technological
b) political
c) sociocultural
d) self-regulation
e) strategic
c) sociocultural
116. By the turn of the twentieth century, the population of the United States had shifted to three large racial and ethnic groups. These groups are
a) blacks, Hispanics, and whites.
b) Asians, blacks, and whites.
c) Asians, blacks, and Hispanics.
d) blacks, Indians, and whites.
e) Hispanics, Indians, and whites.
a) blacks, Hispanics, and whites.
117. In the near future, what subculture will become the second largest group in the United States?
a) Whites
b) African Americans
c) Asians
d) Hispanics
e) Native Americans
d) Hispanics
118. The Coca-Cola Company has recognized the significant increase in population diversity within the U.S. soft-drink market. Which one of the following best illustrates the company’s integration of this knowledge into its marketing strategy?
a) Ads featuring nostalgic Americana
b) Bonus coupons in Coca-Cola twelve-packs
c) Ads featuring Hispanic actors and Tejano music
d) Ads in The New Yorker and Reader’s Digest
e) Ads aimed at children
c) Ads featuring Hispanic actors and Tejano music
119. Organizations that provide smoke-free environments or low-fat products are responding to changes in
a) technology.
b) the legal environment.
c) demographics.
d) cultural values.
e) political forces.
d) cultural values.
120. Many well-known restaurants and corporations are changing to a completely smoke-free environment, and fewer restaurants offer smoking and nonsmoking sections. These firms are responding to changes in
a) federal law.
b) cultural values.
c) demographics.
d) consumerism.
e) technological forces.
b) cultural values.
121. Consumerism is a
a) diverse group of individuals and organizations opposed to foreign producers that sell products in the United States that are much cheaper than those produced by U.S. manufacturers.
b) social movement that is trying to encourage consumer satisfaction.
c) social movement that is reorganizing the Council of Better Business Bureaus.
d) diverse group of individuals and organizations attempting to protect the rights of consumers.
e) social movement that provides consumers with means for expressing satisfaction and expressing their gratitude to producers.
d) diverse group of individuals and organizations attempting to protect the rights of consumers.
122. A group of protesters carries signs encouraging people to boycott Joe’s Market, a small grocery store in an urban area. The protesters claim that Joe’s takes unfair advantage of elderly and minority consumers. This protest is part of what we see today as the
a) cultural diversity movement.
b) civil rights movement.
c) urban unrest cycle.
d) procompetitive movement.
e) consumerism movement.
e) consumerism movement.
11. Which of the following statements about social responsibility is correct?
a) Social responsibility dimensions do not include philanthropic concerns.
b) Social responsibility does not deal with the total effect of all marketing decisions on society.
c) Social responsibility refers to a company’s obligation to maximize its positive impact and minimize its negative impact on society.
d) Social responsibility dimensions do not include economic concerns.
e) Social responsibility refers to principles and standards that define acceptable conduct in marketing as determined by various stakeholders.
c) Social responsibility refers to a company’s obligation to maximize its positive impact and minimize its negative impact on society.
12. If Hefty Bags expresses concern that its products are having too great an impact on the pollution of ground water under landfills, this concern is directly related to the firm’s
a) social responsibility.
b) marketing concept.
c) profitability.
d) ethics.
e) distribution system.
a) social responsibility.
13. Avon’s Breast Cancer Awareness Crusade, which has raised nearly $400 million for community-based breast cancer education and early detection services, illustrates the positive consequences of
a) social responsibility.
b) corporate benevolence.
c) green marketing.
d) legal responsibility.
e) economic responsibility.
a) social responsibility.
14. After news reports that pharmaceutical giant Merck was aware that its arthritis-fighting drug Vioxx may cause heart problems, the firm’s stock plummeted and hundreds of lawsuits were filed against the company. This demonstrates what can occur if firms ignore
a) marketing citizenship.
b) sociocultural forces.
c) environmental causes.
d) social responsibility.
e) laws regulating car design.
d) social responsibility.
15. Socially responsible business practices have provided all of the following benefits except
a) creating goodwill toward the organization.
b) attracting employees.
c) reducing marketing costs.
d) generating publicity for the firm.
e) positively impacting local communities.
c) reducing marketing costs.
16. The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders is called
a) marketing citizenship.
b) social responsibility.
c) stakeholders.
d) cause-related marketing.
e) strategic philanthropy.
a) marketing citizenship.
17. Employees, customers, communities, and investors are all considered ______ in relation to marketing.
a) responsibilities
b) stakeholders
c) shareholders
d) constituents
e) owners
b) stakeholders
18. Any constituent who has a claim in some aspect of a company’s products, operations, markets, industry, or outcomes is known as a(n)
a) shareholder.
b) customer.
c) employee.
d) manager.
e) stakeholder.
e) stakeholder.
19. Companies that are considered to be good corporate citizens and consider the diverse perspectives of different groups affected by their operations are said to have a ___________ orientation.
a) marketing
b) sales
c) production
d) stakeholder
e) citizen
d) stakeholder
20. When operating on a daily basis, employees and managers at Bank of America consider the perspectives of all individuals and groups that might be affected by their decisions. This is known as
a) a philanthropic position.
b) marketing citizenship.
c) a stakeholder orientation.
d) community relations.
e) social responsibility.
c) a stakeholder orientation.
21. Which of the following is not a dimension of social responsibility and marketing citizenship?
a) Economic
b) Ethical
c) Legal
d) Technological
e) Philanthropic
d) Technological
22. Which of the following is not one of the four dimensions of social responsibility presented in your text?
a) Consumerism
b) Philanthropic
c) Ethical
d) Economic
e) Legal
a) Consumerism
23. Kaitlyn understands that her local catering business has certain responsibilities to society. She knows that she must abide by the laws that apply to her business and try to make a profit. What are the other obligations Kaitlyn should know?
a) Ethical and moral
b) Economic and ethical
c) Philanthropic and legal
d) Environmental and ethical
e) Ethical and philanthropic
e) Ethical and philanthropic
24. Sometimes business must find a balance between society’s demand for social responsibility and investors’ desires for profits. This is an example of a(n) ___________ responsibility.
a) ethical
b) legal
c) cost
d) philanthropic
e) economic
e) economic
25. All companies have a responsibility to ______ so they can provide a return on investment to their owners and investors, create jobs for the community, and contribute goods and services to the economy.
a) offer the lowest price
b) be profitable
c) obey their customers
d) provide the largest selection possible
e) pay employees more than minimum wage
b) be profitable
26. As a firm fulfills its basic economic responsibilities, it must simultaneously
a) treat its employees equitably.
b) follow a code of business ethics.
c) utilize green marketing techniques.
d) have a philanthropic focus.
e) obey laws and regulations.
e) obey laws and regulations.
27. Cameron Inc. is a very profitable automobile repair shop. The company is well known for its great service and involvement in the community, but it fails to properly dispose of its used oil as outlined in environmental regulations. Cameron is failing in its ______ responsibilities.
a) legal
b) ethical
c) economic
d) philanthropic
e) strategic
a) legal
28. According to the text, marketing ethics refers to principles and standards that define
a) improper behavior in marketing.
b) acceptable conduct in society.
c) improper behavior in business.
d) acceptable conduct in marketing.
e) acceptable conduct in general.
d) acceptable conduct in marketing.
29. Marketing ethics
a) refers to laws and regulations that govern marketing.
b) refers to principles and standards that define acceptable conduct in marketing.
c) maximizes an organization’s positive impact and minimizes its negative impact on society.
d) is most important for advertising agencies.
e) applies well-defined rules for appropriate marketing behavior.
b) refers to principles and standards that define acceptable conduct in marketing.
30. The most basic principles of marketing ethics are
a) philanthropic responsibilities.
b) economic responsibilities.
c) universally accepted behaviors.
d) written as laws and regulations.
e) included in the marketing code of ethics.
d) written as laws and regulations.
31. A business that contributes resources to the community to improve the quality of life is taking on a(n) ___________ responsibility.
a) ethical
b) legal
c) cost
d) philanthropic
e) economic
d) philanthropic
32. McDonald’s supports and funds Ronald McDonald houses for the families of terminally-ill children to stay in to be near their loved ones. McDonald’s action demonstrates the fulfillment of ______ responsibility.
a) legal
b) society
c) philanthropic
d) economic
e) ethical
c) philanthropic
33. At the top of the pyramid of social responsibility for business are ___________ responsibilities.
a) ethical
b) legal
c) cost
d) philanthropic
e) economic
d) philanthropic
34. Actions that promote human health and welfare address the _______ dimension of the pyramid of social responsibility.
a) philanthropic
b) legal
c) ethical
d) economic
e) social
a) philanthropic
35. The practice of linking a firm’s product marketing to a particular social cause on an ongoing or short-term basis is known as
a) economic responsibility.
b) social responsibility.
c) ethical marketing.
d) cause-related marketing.
e) corporate benevolence.
d) cause-related marketing.
36. If Ben and Jerry’s were to donate 5 percent of every ice cream purchase to shelters for victims of domestic abuse for one month, this would be an example of
a) strategic philanthropy.
b) ethical responsibility.
c) economic responsibility.
d) green marketing.
e) cause-related marketing.
e) cause-related marketing.
37. Which of the following is the best definition of cause-related marketing?
a) Linking a firm’s products to a particular social cause—either short term or long term
b) Using organizational core competencies and resources to address stakeholders’ interests and achieve organizational and social benefits
c) Donating money to a social cause based on sales of a particular product over a defined period of time
d) Developing, promoting, and distributing products that are environmentally safe
e) Contributing resources to the community in order to improve the overall quality of life
a) Linking a firm’s products to a particular social cause—either short term or long term
38. The close relationship of Home Depot’s philanthropic initiatives and its business goals is an example of
a) strategic philanthropy.
b) strategic ethics.
c) cause-related marketing.
d) strategic marketing.
e) environmental philanthropy.
a) strategic philanthropy.
39. Who are the primary recipients of the benefits of strategic philanthropy?
a) Employees and investors
b) Companies and society
c) Primary stakeholders
d) Managers and companies
e) Society and communities
b) Companies and society
40. Which of the following is a primary difference between cause-related marketing and strategic philanthropy?
a) Cause-related marketing is short term only while strategic philanthropy is an ongoing approach that lasts for years or even decades.
b) Strategic philanthropy fulfills a firm’s primary social responsibilities while cause-related marketing does not.
c) Cause-related marketing is unlikely to have a positive effect on society while strategic philanthropy always benefits society.
d) Strategic philanthropy can take on both a financial and nonfinancial format while cause-related marketing only involves financial contributions.
e) Customers are likely to feel good about themselves when supporting a cause-related marketing campaign but are unlikely to notice strategic philanthropy.
d) Strategic philanthropy can take on both a financial and nonfinancial format while cause-related marketing only involves financial contributions.
41. Which of the following is the best example of strategic philanthropy for Staples, the large office supply chain?
a) Donating money to help fight illiteracy of both adults and children
b) Having employees volunteer at a charity of their choice two hours a week
c) Giving a portion of its profits in August to support charter schools
d) Offering discounts to large corporations on their office supplies
e) Providing low-income families with school supplies and computer training
e) Providing low-income families with school supplies and computer training
42. Which of the following refers to a firm’s specific development, pricing, promotion, and distribution of products that do not harm the environment?
a) Marketing ethics
b) Social responsibility
c) Environmental marketing
d) Green marketing
e) Conservation marketing
d) Green marketing
43. Products that may do harm to the natural environment are inconsistent with
a) green marketing.
b) the marketing concept.
c) consumerism.
d) strategic philanthropy.
e) the marketing mix.
a) green marketing.
44. Which of the following is the best definition of green marketing?
a) Using technology and human resources for marketing efforts designed to reduce waste
b) Developing, pricing, promoting, and distributing products that do not harm the natural environment
c) Protecting the natural environment through the implementation of programs for environmental cleanup
d) Using only recycled materials in the production, distribution, and disposal of a company’s products
e) Meeting the criteria necessary to receive the European Eco-label through efforts designed to protect the natural environment
b) Developing, pricing, promoting, and distributing products that do not harm the natural environment
45. Merck develops a better way to package and distribute its pharmaceutical products that requires less materials and waste. What major social responsibility issue is Merck addressing?
a) The natural environment
b) Consumerism
c) Marketing ethics
d) Legal obligations
e) Community relations
a) The natural environment
46. StarKist Tuna has frequently extolled its dolphin-safe methods of catching tuna. This is an example of
a) community relations.
b) waste reduction.
c) green marketing.
d) strategic philanthropy.
e) consumerism.
c) green marketing.
47. In Europe, companies can voluntarily apply for a designation to indicate that their product is less harmful to the environment than competing products. This label is known as the
a) Green Marketing Stamp.
b) Eco-label.
c) Forest Stewardship Seal.
d) Better Product Project.
e) Good Housekeeping Seal.
b) Eco-label.
48. Which of the following is not one of the four objectives that environmentalists believe companies should implement in order to sustain the natural environment?
a) Eliminate the concept of waste.
b) Reinvent the concept of a product.
c) Force consumers to recycle products.
d) Make prices reflect the true cost of a product.
e) Make environmentalism profitable.
c) Force consumers to recycle products.
49. All of the following are goals of green marketing except
a) making the work force match the population in terms of diversity.
b) eliminating the concept of waste.
c) reinventing the concept of a product.
d) making prices reflect the cost.
e) making environmentalism profitable.
a) making the work force match the population in terms of diversity.
50. Instead of addressing the question_______, many environmentalists and marketers believe the question should be ______.
a) “How can we reduce costs?”; “How can we keep prices low?”
b) “Where should we dispose of waste?”; “How can we protect society?”
c) “How can we make products better?”; “How can we reduce waste?”
d) “How can environmentalism be profitable?”; “Where is the benefit of environmental efforts?”
e) “What should we do with our waste?”; “How can we produce products without waste?”
e) “What should we do with our waste?”; “How can we produce products without waste?”
According to some environmentalists, what are the three types of products that all products should be reduced to?
a) Durable goods, natural resources, and unsalables
b) Nondurable goods, durable goods, and consumables
c) Consumables, durable goods, and unsalables
d) Environmental goods, recyclables, and salables
e) Permanents, temporaries, and renewable resources
c) Consumables, durable goods, and unsalables
52. Honda produces a variety of automobiles, which makes the company a producer of
a) durable goods.
b) consumables.
c) permanents.
d) unsalables.
e) salables.
a) durable goods.
53. As far as prices are concerned, environmentalists believe prices should
a) be based on the cost of materials used to manufacture the product.
b) reflect the direct cost as well as the cost of air, water, and soil used.
c) be determined by the supply and demand of products in the marketplace.
d) include a large tax to defray the costs of environmental compliance.
e) be based on the renewability of the resources used to make the product.
b) reflect the direct cost as well as the cost of air, water, and soil used.
54. What do environmentalists set as an objective for profitability?
a) Companies should surpass the strictest environmental standards even if it negatively affects profitability.
b) Companies will never be profitable if they comply with environmental standards so taxpayers must subsidize all production.
c) Profitability should not be a concern when addressing issues of environmental importance.
d) Environmentalism should be made profitable, and companies attempting to protect the environment should not have to compete with those harming it in the marketplace.
e) Companies will be more profitable if they work hard to protect the environment because consumers will reward their efforts through loyalty.
d) Environmentalism should be made profitable, and companies attempting to protect the environment should not have to compete with those harming it in the marketplace.
Synergy Tech has a program that offers consumers money back for their old Synergy computers so that the materials used to make the computer can be retained within a closed system. Which of the primary environmental goals does Synergy’s program address?
a) Eliminate the concept of waste.
b) Reinvent the concept of a product.
c) Make environmentalism profitable.
d) Make prices reflect the cost.
e) Create fewer durable goods.
b) Reinvent the concept of a product.
56. Consumerism is
a) the efforts of independent individuals, groups, and organizations to protect the rights of consumers.
b) President John F. Kennedy’s consumer bill of rights.
c) marketers’ efforts to contribute to the satisfaction and growth of the communities in which they operate.
d) the right to be informed.
e) the specific development, pricing, promotion, and distribution of products that do not harm the environment.
a) the efforts of independent individuals, groups, and organizations to protect the rights of consumers.
57. Angela organized a boycott of a local restaurant because of the owner’s obvious prejudicial treatment of Hispanics. Angela’s action would most likely be called
a) lobbying.
b) a public service announcement.
c) the right to be informed.
d) a social demonstration.
e) consumerism.
e) consumerism.
58. The Browardton Quilters’ Guild has contacted all the major networks to try to warn people about the poor performance of miniature, hand-held sewing machines. These quilters are engaging in
a) publicity stunts.
b) the right to safety.
c) consumerism.
d) lobbying.
e) political action.
c) consumerism.
59. Who of the following is a famous consumer activist?
a) Ralph Nader
b) Jack Williams
c) Ross Perot
d) Abraham Maslow
e) Adam Smith
a) Ralph Nader
60. Who drafted the Consumer Bill of Rights?
a) Bill Clinton
b) John F. Kennedy
c) Ralph Nader
d) Ronald Reagan
e) George W. Bush
b) John F. Kennedy
61. The four basic rights outlined in the Consumer Bill of Rights include the right to safety, the right to be heard, the right to
a) inform, and the right be chosen.
b) consumer education, and the right to honesty.
c) choose, and the right to be informed.
d) redress, and the right to choose.
e) honesty, and the right to redress.
c) choose, and the right to be informed.
62. Product testing for reliability and quality helps to ensure a consumer’s right to
a) be heard.
b) be informed.
c) choose.
d) performance.
e) safety.
e) safety.
63. Warnings on television commercials for prescription drugs include a list of sometimes grotesque side effects that are possible when taking that particular drug. The consumer right to _____ most applies to these commercials.
a) know
b) safety
c) be heard
d) choose
e) be informed
e) be informed
64. According to President Kennedy’s consumer bill of rights, the right to choose means that
a) consumers’ interests will receive full and sympathetic consideration in the formulation of government policy.
b) consumers should have access to a variety of products and services at competitive prices.
c) consumers should have access to and the opportunity to review all relevant information about a product before buying it.
d) marketers have an obligation not to knowingly market a product that could harm consumers.
e) consumers should be able to buy products at prices they are willing to pay.
b) consumers should have access to a variety of products and services at competitive prices.
65. Sharese wants to buy a new couch, but there is only one place in her town that sells them, and she lives in an isolated area. Sharese most likely feels her consumer right to ______ has been violated.
a) choose
b) be heard
c) safety
d) recourse
e) be informed
a) choose
66. According to the consumer bill of rights, the idea that consumers’ interests should receive full and sympathetic consideration in the formulation of government policy is known as the right to
a) be heard.
b) choose.
c) be informed.
d) safety.
e) listen.
a) be heard.
67. How would marketers most likely benefit from the consumer’s right to be heard?
a) Consumers will also tell others about their bad experience with the company.
b) The company can use the information to make its products better.
c) They gain valuable information about their competitors.
d) Consumers are more loyal to companies who have wronged them.
e) More information about the products can be posted online.
b) The company can use the information to make its products better.
68. According to the consumer bill of rights, the right to be informed means that
a) consumers’ interests will receive full and sympathetic consideration in the formulation of government policy.
b) consumers should have access to a variety of goods and services at competitive prices.
c) consumers should have access to and the opportunity to review all relevant information about a product before buying it.
d) marketers have an obligation not to knowingly market a product that could harm consumers.
e) consumers should be told when the quality of a product has changed.
c) consumers should have access to and the opportunity to review all relevant information about a product before buying it.
69. Target’s Take Charge of Education program donates 1 percent of a customer’s total purchase to the school of his or her choice. What social responsibility issue does this program address?
a) Consumerism
b) Marketing ethics
c) Community relations
d) The natural environment
e) Promotion
c) Community relations
70. Various stakeholders and _______ determine the acceptable standards of conduct involving ethics.
a) the organizations’ ethical climate
b) the federal government
c) various self-regulating bodies
d) governmental agencies
e) the industry leaders’ ethics
a) the organizations’ ethical climate
71. Ethical standards for acceptable conduct for a company should
a) be clearly dictated by top management and enforced by all management staff.
b) consider only the point of view of the customers and the employees.
c) reflect the desires of the company’s employees for a quality working environment.
d) be based on company, industry, government, customer, and society viewpoints.
e) be derived from federal, state, and local laws and regulatory agencies.
d) be based on company, industry, government, customer, and society viewpoints.
72. When is the best time to deal with marketing exchange problems concerning ethics?
a) Right before the problem is made public
b) After the problem has received extensive media attention
c) Immediately after the problem is discovered
d) When lawsuits are brought against the company
e) During the strategic planning process
e) During the strategic planning process
73. The boundary between legal and ethical issues is
a) clearly distinguished.
b) blurred.
c) nonexistent.
d) determined by the courts.
e) determined by marketing managers.
b) blurred.
74. A marketing ethics issue likely exists when
a) company members disagree about a marketing decision.
b) an activity does not benefit the organization but benefits the environment.
c) an activity results in increased prices for the consumer.
d) a consumer is dissatisfied with a marketing decision.
e) an individual or organization must choose from among several actions that must be evaluated as right or wrong.
e) an individual or organization must choose from among several actions that must be evaluated as right or wrong.
75. Reese is facing an ethical issue at work and has determined four possible courses of action he could take. He knows he should evaluate each possible action as _____ in order to choose the most appropriate action.
a) positive or negative
b) profit increasing or decreasing
c) right or wrong
d) appreciated or unappreciated by his coworkers
e) courageous or cowardly
c) right or wrong
76. An ethical issue is
a) likely to arise when an employee’s moral philosophy is consistent with the organization’s expectations of the employee’s behavior.
b) an identifiable problem, situation, or opportunity requiring an individual to choose from among several actions that must be evaluated as right or wrong.
c) most often found in personal selling situations.
d) easily resolved by consulting written laws and regulations.
e) characterized by a blatant disregard for human rights and equality.
b) an identifiable problem, situation, or opportunity requiring an individual to choose from among several actions that must be evaluated as right or wrong.
77. _____ ethical issues generally surface when companies fail to disclose risks associated with a product or information regarding its function, value, or use.
a) Promotion-related
b) Distribution
c) Corporate
d) Product-related
e) Safety
d) Product-related
78. Product-related ethical issues arise when marketers
a) provide consumers with inadequate information about how a product is priced.
b) force channel intermediaries to behave in a specific manner.
c) bribe salespeople to push one product over another.
d) fail to disclose information to consumers about the risks associated with using a product.
e) manufacture a product that is very similar to a competing product.
d) fail to disclose information to consumers about the risks associated with using a product.
79. If Firestone failed to inform consumers of design problems associated with its Wilderness AT tires, it would have been engaging in unethical behavior in regard to which of the following marketing issue areas?
a) Planning
b) Distribution
c) Promotion
d) Product
e) Pricing
d) Product
80. If a potato chip manufacturer introduces a new, bigger size bag of chips according to the label, when in actuality, the new bag is slightly smaller in contents, a _____ ethical issue exists.
a) decision-making
b) promotion-related
c) product-related
d) pricing-related
e) distribution-related
c) product-related
81. In testing her firm’s new TV ads for Transformer action figures, Beth discovers the ads make children think many of the action figures can actually fly. Beth now faces an ethical decision regarding which element of the marketing mix?
a) Product
b) Price
c) Distribution
d) Promotion
e) Strategy
d) Promotion
82. A cereal company advertises that its newly launched product can lower cholesterol although the company cannot provide evidence to substantiate this claim. This situation involves an ethical issue related to which element of the marketing mix?
a) Product
b) Pricing
c) Promotion
d) Distribution
e) Production
c) Promotion
83. When a purchasing agent for Intel is offered a bribe by a silicon manufacturer salesperson,
a) a promotion-related ethical issue has been created.
b) the purchasing agent is free to accept the bribe without consequences.
c) an ethical issue primarily related to the pricing of products exists.
d) there is an ethical dilemma for the purchasing agent that is product related.
e) no ethical issue exists under these circumstances.
a) a promotion-related ethical issue has been created.
84. What are some of the common price-related ethical issues?
a) Misleading advertising and predatory pricing
b) Additional discounts and price fixing
c) Not disclosing the full price and value-pricing
d) Predatory pricing and price fixing
e) Loss leaders and deceptive pricing
d) Predatory pricing and price fixing
85. Pharmaceutical companies have at times been accused of acting unethically by taking advantage of customers in the area of
a) promotion.
b) pricing.
c) distribution.
d) product.
e) manufacturing.
b) pricing.
86. After a hurricane strikes the U.S. Gulf Coast, a tremendous demand for gas-powered generators occurs. Ace’s Hardware, which stocks a large inventory of these items, faces major ethical decisions with regard to the ___________ issue.
a) product
b) advertising
c) personal selling
d) publicity
e) pricing
e) pricing
87. Distribution-related ethical issues arise when marketers
a) do not provide intermediaries with enough information about how a product is priced.
b) force channel intermediaries to behave in a specific manner.
c) bribe salespeople to push one product over another.
d) fail to disclose information to consumers about the risks associated with using a product.
e) distribute a product that is very similar to a competing product.
b) force channel intermediaries to behave in a specific manner.
88. At times, large retailers such as Walmart may be accused of coercion in dealing with intermediaries because of the amount of power and control these large companies have over many of their suppliers. This is most potentially a ______ related ethical issue.`
a) promotion
b) pricing
c) culture
d) product
e) distribution
e) distribution
89. According to the text, which of the following is not one of the factors that influence the ethical decision-making processes in a marketing organization?
a) Organizational culture
b) Attitudes toward religion
c) Opportunity
d) Individual factors
e) Organizational pressure
b) Attitudes toward religion
90. All of the following are factors that influence the ethical decision-making process except
a) opportunity.
b) individual factors.
c) organizational culture.
d) organizational pressure.
e) salary or wages.
e) salary or wages.
91. Three factors that influence the ethical decision-making process in marketing include
a) individual factors, organizational culture, and peer influence.
b) opportunity, personal moral philosophies, and situational variables.
c) individual factors, organizational factors, and opportunity.
d) social forces, laws, and organizational factors.
e) peer influences, personal moral philosophies, and opportunity.
c) individual factors, organizational factors, and opportunity.
92. Since most ethical choices pertaining to marketing decisions are jointly made, an organization must ensure the _____________ reflects the organization’s values, beliefs and norms.
a) code of ethics
b) code of conduct
c) enforcement of ethical standards and screening techniques
d) employee self-regulation and screening procedures
e) organizational or corporate culture
e) organizational or corporate culture
93. Ethical choices in business situations are most often made
a) by top managers.
b) by front-line employees.
c) jointly in work groups and committees.
d) in consultation with family, friends, and coworkers.
e) individually.
c) jointly in work groups and committees.
94. At his new job, Chris notices that everyone places high values on their families and each others’ families, birthdays are always celebrated, and flexible schedules are permitted to facilitate family involvement as long as the work is still getting done. Everyone is very relaxed and friendly. Chris has made several observations about the
a) organizational plan.
b) ethics program.
c) morale and welfare program.
d) codes of conduct.
e) corporate culture.
e) corporate culture.
95. Tasha recently changed employers within the same industry. At her old company, employees routinely took home company pens, pencils, paperclips, and note pads, and they frequently made personal long-distance calls on company phones. Tasha observes that employees do not engage in such practices at her new company. What Tasha sees is best described as a difference in
a) significant others.
b) profit objectives.
c) corporate culture.
d) legal climate.
e) corporate goals.
c) corporate culture.
96. Amanda believes that the corporate culture at her company is best conveyed in informal ways. What are some informal ways that corporate culture is most likely to be expressed?
a) Codes of conduct and ethics officers
b) Memos and cultural manuals
c) Work habits and dress codes
d) Extracurricular activities and work habits
e) Ceremonies and anecdotes
d) Extracurricular activities and work habits
97. Which of the following employees is most responsible for setting the ethical tone for the entire marketing organization?
a) Marketing manager
b) Marketing employee
c) Product manager
d) Chief executive officer
e) Vice president of marketing research
d) Chief executive officer
98. A set of values, beliefs, goals, norms, and rituals shared by members of an organization is called
a) organizational factors.
b) corporate culture.
c) codes of conduct.
d) ethical environment.
e) company ethos.
b) corporate culture.
99. The effect that coworkers have on the ethical decision-making process depends on a person’s exposure to ethical and unethical behavior. Which of the following statements about ethical decision making is true?
a) The more a person is exposed to ethical activity in the organization, the more likely he or she will behave unethically.
b) The more a person is exposed to unethical activity in the organization, the more likely he or she will behave unethically.
c) The more a person is exposed to unethical activity in the organization, the less likely he or she will pay attention to that activity.
d) The more a person is exposed to ethical activity in the organization, the less likely he or she will pay attention to that activity.
e) Exposure to ethical and unethical activity has no effect on a person’s decision-making process.
b) The more a person is exposed to unethical activity in the organization, the more likely he or she will behave unethically.
100. Opportunity provides a pressure that may determine ethical decisions in marketing. Opportunity is best thought of as
a) unethical behavior found in top management.
b) a favorable set of conditions that limit barriers or provide rewards.
c) the principles or rules that individuals use to determine the way to behave.
d) a person’s relationship with others in the organization.
e) a problem or situation requiring an individual to choose a course of action.
b) a favorable set of conditions that limit barriers or provide rewards.
101. Justin believes that certain conditions at his company are very conducive to engaging in unethical behavior because these conditions provide rewards such as faster promotions and better salaries for those who bend the rules. Justin’s company seems to allow ______ for unethical behavior.
a) peer pressure
b) individuality
c) corporate culture
d) exposure
e) opportunity
e) opportunity
102. In response to organizational pressure to perform, Barry used a deceptive sales tactic to obtain a major sales contract. He was surprised that he wasn’t punished for his behavior and even received a substantial bonus for securing the contract. Given the same opportunity in the future, Barry will most likely
a) blow the whistle on his employer to a government agency.
b) report his employer to the industry’s trade association.
c) express his discomfort with the situation to his supervisor.
d) not use similar sales tactic again.
e) use similar sales tactic again.
e) use similar sales tactic again.
103. Karrie, a new salesperson for Brenham Foods, calls in an order for twice the amount of merchandise that Corner Market requested because she knows that it will increase her sales and will not be noticed by Corner Market. This is an example of how ___________ influences ethical decision making.
a) opportunity
b) exposure
c) a significant other
d) a peer
e) an external reward
a) opportunity
104. As a media buyer for the Angelo Agency, Chloe knows that no one ever checks to see if her phone calls are business related or personal. With regard to ethical behavior, this situation relates most closely to
a) exposure.
b) individual factors.
c) desire.
d) opportunity.
e) organizational factors.
d) opportunity.
105. Which of the following statements best summarizes the perspective that most marketing managers have on unethical behavior?
a) Most do not believe that unethical conduct will lead to success and refrain from taking unethical opportunities.
b) They believe that unethical behavior is useful in the short run but detrimental in the long run.
c) They feel that codes of conduct will eliminate any unethical behavior from occurring in their organizations.
d) They believe that unethical behavior will be harmful in the short run but have little impact in the long run.
e) Most do not see ethical or unethical behavior as a concern to their organization because the opportunities do not exist.
a) Most do not believe that unethical conduct will lead to success and refrain from taking unethical opportunities.
106. ___________ is (are) most likely to improve ethical behavior in a marketing organization.
a) Hiring goal-directed employees
b) Allowing employees to follow their own ethical standards
c) Encouraging employees to identify ethical issues and to decide what is right
d) Obeying the law and accepting all other behavior
e) Eliminating unethical individuals and improving the organization’s ethical standards
e) Eliminating unethical individuals and improving the organization’s ethical standards
107. Which of the following would be consistent with Johnson Chemicals’ understanding of the “bad apple” concept of improving the ethical conduct of salespeople?
a) Publishing ethical guidelines for salespeople
b) Firing unethical salespeople
c) Retraining unethical salespeople
d) Using customers to review ethical guidelines
e) Scrutinizing top management’s conduct
b) Firing unethical salespeople
108. It is possible to improve ethical behavior in an organization by
a) changing the employees’ individual moral philosophies.
b) increasing legislation aimed at unethical practices.
c) decentralizing authority and responsibilities in the firm.
d) offering ethics awareness training for managers and professionals in the organization.
e) improving the organization’s ethical standards and eliminating unethical persons.
e) improving the organization’s ethical standards and eliminating unethical persons.
109. ___________ are formalized rules and standards that describe what a company expects of its employees in terms of ethical behavior.
a) Job descriptions
b) Ethics clauses
c) Behavior contracts
d) Codes of conduct
e) Ethics contracts
d) Codes of conduct
110. Codes of conduct are also frequently known as
a) ethics mandates.
b) codes of ethics.
c) corporate culture.
d) ethics compliance programs.
e) moral codes.
b) codes of ethics.
111. Which of the following statements about codes of conduct is true?
a) All publicly-traded companies have formal codes of conduct.
b) Most large corporations have formal codes of conduct.
c) Codes of conduct are unnecessary for small- and medium-sized companies.
d) Approximately half of large companies have formal codes of conduct.
e) Very few companies have formal codes of conduct, but most have informal codes.
b) Most large corporations have formal codes of conduct.
112. Which one of the following statements about codes of conduct (ethics) is false?
a) They are formalized rules and standards that describe what a company expects of its employees.
b) They must be detailed enough to take into account many possible situations.
c) They encourage ethical behavior by eliminating opportunities for unethical behavior because employees know what is expected of them.
d) They help marketers deal with marketing issues by prescribing and limiting certain activities.
e) Top management must provide leadership in implementing codes of ethics.
b) They must be detailed enough to take into account many possible situations.
113. Who is typically responsible for creating, distributing, and enforcing a formal code of conduct?
a) Chief executive officer
b) Vice president of marketing
c) Morale manager
d) Ethics officer
e) Managers and supervisors
d) Ethics officer
114. Within the scope of her job, Sue Hanson gives ethics advice, disseminates a code of ethics, reviews the code of ethics, and takes action on ethics violations. Sue is the ____________ in her company.
a) attorney
b) marketing manager
c) ethics officer
d) owner
e) consumer activist
c) ethics officer
115. Beth knows that her company has a formal code of conduct, but she does not see this code being equally and consistently applied to all employees. Beth believes that this sporadic enforcement of the formal code only enhances the _____ for committing unethical acts.
a) opportunity
b) culture
c) individual factors
d) compliance
e) punishment
a) opportunity
116. Which of the following is not usually a responsibility of an ethics officer?
a) Drafting, disseminating, and updating a mission statement
b) Drafting, disseminating, and updating a code of conduct
c) Training employees to deal with ethical issues
d) Creating and maintaining a confidential system to answer questions about ethical issues
e) Taking action on possible violations of the code of conduct
a) Drafting, disseminating, and updating a mission statement
117. Because laws are often difficult to interpret and understand, company codes of conduct and compliance programs should
a) avoid involving any issues deemed to be of a legal nature.
b) focus on those issues most likely to be of legal, rather than strictly ethical, consequence.
c) incorporate both legal and ethical concerns that the company deems most appropriate.
d) try to fully cover the laws guiding ethical decision making that is most applicable.
e) offer very general ethical principles without providing any level of specificity.
c) incorporate both legal and ethical concerns that the company deems most appropriate.
118. Which of the following statements about implementing an ethics and legal compliance program is false?
a) It requires open communication.
b) It requires consistent enforcement of standards from the code of conduct.
c) It rarely needs to be revised.
d) It requires taking reasonable steps in response to violations of standards.
e) It helps create a buffer zone on issues that could trigger serious legal complications for the company.
c) It rarely needs to be revised.
119. What is the major difference between social responsibility and marketing ethics?
a) Marketing ethics varies by industry whereas social responsibility involves universal rules of conduct.
b) There is legislation that deals with marketing ethics, but none for socially responsible practices.
c) Marketing ethics is concerned with organizational practices, and social responsibility is concerned with individual behavior.
d) There is no difference; they are synonymous terms.
e) Social responsibility deals with the total effect of marketing decisions on society, whereas marketing ethics relates to individual and group evaluations in marketing situations.
e) Social responsibility deals with the total effect of marketing decisions on society, whereas marketing ethics relates to individual and group evaluations in marketing situations.
120. Which of the following statements is false?
a) If an ethical or social responsibility issue can withstand open discussion that results in agreement or limited debate, an acceptable solution may exist.
b) A company that supports both socially responsible decisions and adheres to a code of conduct is likely to have a positive impact on society.
c) If other persons in the organization approve of an activity and it is legal and customary within the industry, chances are that the activity is acceptable from both an ethical and social responsibility perspective.
d) Social responsibility and marketing ethics are interrelated.
e) Social responsibility and marketing ethics are the same thing and can be used interchangeably.
e) Social responsibility and marketing ethics are the same thing and can be used interchangeably.
121. In a meeting with key personnel, Watson Corporation’s president speaks to the firm’s managers about social responsibility in business today. He suggests that the key to being socially responsible is to
a) watch profit impacts very carefully.
b) maintain an updated code of ethics.
c) monitor changes and trends in society’s values.
d) carefully interpret all new legislation.
e) stay with present programs over the long run.
c) monitor changes and trends in society’s values.
122. In a classroom discussion, Jacob agrees with Marcie that consumers generally want biodegradable beverage cups. However, he says that businesses in that industry must evaluate whether
a) they can be produced.
b) consumers are willing to pay higher prices for them.
c) the competition will ever make them.
d) stores will stock them.
e) they can be effectively promoted.
b) consumers are willing to pay higher prices for them.
123. Companies that incorporate ethics and social responsibility into their strategic plans are likely to experience
a) improved marketing performance.
b) increased lawsuits.
c) negative publicity.
d) reduced costs.
e) disappointed shareholders.
a) improved marketing performance.
13. Marketing research is best defined as
a) the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities.
b) a framework for the day-to-day management and structuring of information gathered by marketers.
c) a continuous gathering of data for an organization to make marketing decisions
d) the collecting of data from secondary sources and internal documents.
e) an intuitive process for making decisions based on personal knowledge and experience.
a) the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities.
14. Marketing research is a process designed to gather information
a) exclusively about a company’s customers.
b) from the company’s database.
c) not currently available to decision makers.
d) about the needs and desires of employees.
e) concerning the interpretation of the company’s sales goals.
c) not currently available to decision makers.
15. The use of marketing research is
a) limited strictly to large corporations.
b) limited to for-profit businesses of all sizes.
c) controlled by the federal government.
d) widespread throughout business and nonprofit organizations.
e) carefully monitored by each state’s trade agencies.
d) widespread throughout business and nonprofit organizations.
16. The real value of marketing research to the organization can best be measured by
a) its immediate impact on profits.
b) the amount of time spent.
c) how much it costs.
d) improvements in the ability to make decisions.
e) the increase in sales volume or market share.
d) improvements in the ability to make decisions.
17. Wade is puzzled by the recent decrease in sales at one of the Auto Zone locations for which he is the regional manager. He knows the best way to approach this problem and obtain accurate information is to use
a) the marketing research process.
b) the opinions of store managers.
c) company sales’ data.
d) hypothesis testing.
e) stratified sampling of customers.
a) the marketing research process.
18. All of the following are steps in the marketing research process except
a) collecting data.
b) interpreting research findings.
c) designing the research project.
d) reporting research findings.
e) understanding your customer.
e) understanding your customer.
19. Pointing out any deficiencies and the possible reasons for them should be done in the _______ step of the marketing research process.
a) interpreting research findings
b) collecting data
c) defining the issue or problem
d) reporting research findings
e) designing the research project
d) reporting research findings
20. Problem location and definition is the first step toward finding a solution to a marketing problem or launching a research study. The first sign of a problem
a) involves an informed guess or assumption about a certain set of circumstances.
b) is usually accompanied by a cost/benefit analysis.
c) most often comes in the form of customer complaints.
d) is often mentioned in secondary data reports, such as trade journals.
e) is typically a departure from some normal function, such as a failure to attain objectives.
e) is typically a departure from some normal function, such as a failure to attain objectives.
21. To maintain the control needed to obtain accurate information, marketers approach marketing research as a process. Which of the following steps of that process focuses on uncovering the nature and boundaries of the marketing situation to be studied?
a) Locating and defining problems
b) Designing the project
c) Collecting data
d) Interpreting findings
e) Reporting findings
a) Locating and defining problems
22. Decreasing sales, increasing expenses, or decreasing profits
a) are to be expected during the marketing research process.
b) are examples of symptoms that point to larger problems.
c) usually have no effect on the marketing research process.
d) are important considerations in designing the research project.
e) should be carefully considered before collecting data.
b) are examples of symptoms that point to larger problems.
23. An overall plan for obtaining the information needed to address a research problem or issue is called the
a) research design.
b) problem recognition.
c) hypothesis.
d) data collection method.
e) sampling procedure.
a) research design.
24. Jack Bateson knows his business has a problem because of an increasing number of consumer complaints received recently. He has decided how to make this problem a precise, researchable statement and should next move on to
a) calculating reliability and validity.
b) designing the research project.
c) collecting data.
d) interpreting research findings.
e) taking corrective action
b) designing the research project.
25. An informed guess or assumption about a certain problem or set of circumstances is known as
a) a description of the situation.
b) good research design.
c) a hypothesis.
d) a reliable guess.
e) managerial intuition.
c) a hypothesis.
26. Students from marketing research class collect data from three areas on campus. When they analyze their data the responses are very similar. The students can state they achieved which of the following?
a) reliability
b) causal relationships
c) validity
d) sampling
e) measurability
a) reliability
27. If Staples believes that most of its sales are to businesses rather than consumers and that women are more likely to be making purchasing decisions, this would be a(n) ______ that Staples could test through marketing research.
a) description
b) hypothesis
c) explanation
d) sample
e) experiment
b) hypothesis
28. _____ that are either accepted or rejected become the primary conclusions of a marketing research study.
a) Descriptions
b) Issues
c) Primary data
d) Samples
e) Hypotheses
e) Hypotheses
29. When more information is needed about a problem and a tentative hypothesis needs to be made more specific, marketers usually conduct _________ research.
a) descriptive
b) experimental
c) exploratory
d) analytical statistical
e) conclusive
c) exploratory
30. Avon believes that sales of one of its lipstick lines have fallen due to the introduction of a new lipstick line, but it wants to make this tentative hypothesis more specific before proceeding. Avon should conduct
a) experimental research.
b) hypothesis testing.
c) exploratory research.
d) conclusive research.
e) descriptive research.
c) exploratory research.
31. Research designed to verify insights through an objective procedure to help marketers to choose between several alternatives is called
a) primary.
b) secondary.
c) exploratory.
d) conclusive.
e) hypothetical.
d) conclusive.
32. Research that is conducted to clarify the characteristics of certain phenomena to solve a particular problem is called ______ research.
a) primary
b) experimental
c) descriptive
d) secondary
e) exploratory
c) descriptive
33. The Gap wants to target an older crowd in order to increase its market share so it surveys men and women from ages 40 to 60 about how often and for what type of activities they wear casual clothing. This is an example of
a) reliability.
b) exploratory research.
c) probability sampling.
d) descriptive research.
e) experimental research.
d) descriptive research.
34. Research that allows marketers to make causal inferences about relationships is called
a) variable research.
b) relationality.
c) exploratory research.
d) linkage research.
e) experimental research.
e) experimental research.
35. Suppose that marketers at Lever Bros. are trying to determine whether the use of free samples of Snuggle fabric softener was the reason for a sales increase in a particular store. The type of research conducted to answer this question is
a) exploratory.
b) descriptive.
c) experimental.
d) informal.
e) qualitative.
c) experimental.
36. If Little Caesars wants to determine the impact of different coupon offers on pizza unit sales, it needs to conduct
a) exploratory research.
b) hypothesis development.
c) survey research.
d) stratified sampling.
e) experimental research.
e) experimental research.
37. When marketing researchers try to manipulate an independent variable and measure the resulting changes in a dependent variable, they are engaging in
a) surveys.
b) secondary data gathering.
c) interviews.
d) observation.
e) experimentation.
e) experimentation.
38. Designing research procedures that produce reliable marketing data means that
a) others using the same procedure will get almost identical data.
b) the procedure must give results that support the hypothesis.
c) the procedure must not give results that contradict other research studies.
d) the procedure may give results that contradict other research studies.
e) sampling must be done in a completely random manner.
a) others using the same procedure will get almost identical data.
39. Marketing researchers at Essex Co. repeated a particular experiment several times and discovered that the results produced each time were nearly identical. This phenomenon would indicate that the results were
a) reliable.
b) valid.
c) unusable.
d) predictable.
e) compatible.
a) reliable.
40. A valid study
a) portrays the population being studied.
b) results in a causal relationship between the independent and dependent variables.
c) uses random sampling.
d) verifies expected results.
e) measures what it is supposed to.
e) measures what it is supposed to.
41. A firm has conducted market research and found that customer satisfaction with its product is quite high. Nonetheless, repurchase behavior is very low. The research design evidently has a problem with
a) secondary data.
b) reliability.
c) validity.
d) reporting findings.
e) generalizability.
c) validity.
42. A study that is valid and reliable
a) is called a marketing research study.
b) measures what it is supposed to measure and produces almost identical results every time.
c) is expensive to implement and complete.
d) measures subtle differences in the population being studied.
e) is difficult to produce without expert researchers.
b) measures what it is supposed to measure and produces almost identical results every time.
43. Palmetto Regional Hospital has designed an upcoming research project for determining the best methods for improving patient care. The next step the organization must take in the marketing research process is
a) interpreting research findings.
b) collecting data.
c) developing a testable hypothesis.
d) sampling the population.
e) reporting research findings.
b) collecting data.
44. Primary data are best described as the
a) first batch of data collected for a specific study.
b) data that are necessary for a correct decision.
c) data that are observed, recorded, or collected directly from subjects.
d) data that are compiled for some purpose other than the study in question.
e) data that are collected inside and outside the organization for some purpose other than the current investigation.
c) data that are observed, recorded, or collected directly from subjects.
45. Data that are observed or collected directly from respondents are called
a) direct samples.
b) secondary data.
c) stratified data.
d) primary data.
e) firsthand information.
d) primary data.
46. If Bloomingdale’s wants to learn about consumers’ attitudes toward on-line purchases and conducts a study to acquire this information, this study would collect ____________ data.
a) causal
b) experimental
c) primary
d) laboratory
e) secondary
c) primary
47. Marketers often begin the data collection phase of a research project by gathering secondary data. This type of information may come from both ___________ and ___________ sources.
a) government; business
b) internal; external
c) primary; secondary
d) formal; informal
e) collected; distributed
b) internal; external
48. Secondary data cannot be obtained from
a) trade journals.
b) the government.
c) international sources.
d) surveys.
e) computerized literature retrieval databases.
d) surveys.
49. One overlooked internal source of secondary marketing information discussed in the text is
a) sales receipts.
b) accounting records.
c) interviews with salespeople.
d) quality control data.
e) consumer surveys.
b) accounting records.
50. AOL Time Warner uses its sales reports broken down by geographic regions as part of its marketing research to determine which markets are most rapidly adopting high-speed Internet connections. In this example, AOL Time Warner is using
a) internal sampling.
b) internal primary data.
c) external secondary data.
d) external primary data.
e) internal secondary data.
e) internal secondary data.
51. If Georgia-Pacific seeks information about trends in housing starts around the country and uses U.S. Department of Commerce reports to get this information, it is using ___________ data.
a) causal
b) exploratory
c) primary
d) laboratory
e) secondary
e) secondary
52. When working as a summer intern for a local retail store, Jan Halverson was sent to the library to look up data on population forecasts for the city of San Antonio. The population information she found would be considered
a) primary data.
b) secondary data.
c) information data from syndicated research services.
d) secondhand data.
e) a primary database.
b) secondary data.
53. Information from the U.S. Census Bureau is commonly used as ____ by a variety of agencies and organizations.
a) external secondary data
b) sampling systems
c) primary data
d) internal secondary data
e) hypotheses
a) external secondary data
54. Subscription services from firms such as ACNielsen provide marketing researchers with a good source of ___________ data.
a) census
b) statistical
c) internal secondary
d) external secondary
e) primary
d) external secondary
55. If Carrie wants to do some market research about the footwear industry that her company is a part of, but she has limited money and time, she would most likely collect
a) sampling units.
b) secondary data.
c) quota data.
d) primary data.
e) survey data.
b) secondary data.
56. All the elements, individuals, or units of interest to researchers for a specific study are called the
a) data set.
b) sample.
c) population.
d) focus group.
e) target market.
c) population.
57. If the University Bookstore wanted to understand the textbook and school supplies needs on the campus of the University of Michigan, the population of study would be
a) the faculty and staff of the University of Michigan.
b) all college-aged adults in the state of Michigan.
c) all the people who live in Ann Arbor and surrounding areas.
d) undergraduate students at the University of Michigan.
e) all students, faculty, supporters, and staff of the University of Michigan.
e) all students, faculty, supporters, and staff of the University of Michigan.
58. Patricia Robertson is running for Congress from the Sixth District in her state. She is interested in knowing the intended choices of the voters. All the registered voters in her district would constitute the study’s
a) experiment.
b) dependent variable.
c) population.
d) independent variable.
e) sample.
c) population.
59. If you were to choose a sample with which to study the market for preschool toys in Illinois, the population would logically be defined as all
a) children in Illinois.
b) families in Illinois that have or are expecting preschool children.
c) people in Illinois.
d) preschools in Illinois.
e) preschool children in Illinois.
b) families in Illinois that have or are expecting preschool children.
60. In marketing research, a sample is best described as
a) a small group that is a part of a larger group.
b) all the elements, units, or individuals of interest to researchers for a specific study.
c) a limited number of units chosen to represent the characteristics of a total population.
d) a group that shares a common attribute within a population.
e) a small portion of a product offered to customers to try a new product.
c) a limited number of units chosen to represent the characteristics of a total population.
61. When marketing researchers consider sampling techniques, they are preparing to collect ___________ data.
a) census
b) statistical
c) internal secondary
d) external secondary
e) primary
e) primary
62. The objective of sampling in marketing research is to
a) obtain responses from as many people as possible.
b) control independent variables that might influence research results.
c) select representative units from a total population.
d) ensure that measures in the study are reliable.
e) provide data that can be used to test the hypotheses being investigated.
c) select representative units from a total population.
63. The two basic types of sampling that marketing researchers use are
a) random and nonrandom.
b) probability and nonprobability.
c) stratified and quota.
d) even and odd.
e) planned and spontaneous.
b) probability and nonprobability.
64. In what type of sampling does every element have a known chance of being selected for study?
a) Quota
b) Stratified
c) Random
d) Nonprobability
e) Probability
e) Probability
65. Which sampling design gives every member of the population an equal chance of appearing in the sample?
a) Nonprobability
b) Random
c) Quota
d) Stratified
e) Poll
b) Random
66. In which of the following sampling designs do all members of a population have an equal chance of being selected?
a) Stratified
b) Nonprobability
c) Quota
d) Random
e) Judgment
d) Random
67. Marriott wants to collect data about employee satisfaction within its organization. It decides to survey a sample of 50 employees by having a computer program automatically pick which employees will be in the sample. If every employee has an equal chance of being selected, Marriott is using
a) random sampling.
b) sampling populations.
c) stratified sampling.
d) nonprobability sampling.
e) quota sampling
a) random sampling.
68. Which of the following is a probability sampling technique used to reduce errors within random sampling?
a) Quota
b) Stratified
c) Nonprobability
d) Cluster
e) Snowball
b) Stratified
69. Assume that Verizon Wireless is interested in studying the pricing expectations of its customers. If the study calls for selecting at random 100 people from each of three age groupings, ___________ sampling is being used.
a) random
b) stratified
c) quota
d) area
e) experimental
b) stratified
70. Baskin Robbins is conducting research on possible new ice cream flavors and products. It is selecting at random 100 males and 100 females in order to collect data. This is an example of ______ sampling.
a) nonprobability
b) random
c) quota
d) stratified
e) selective
d) stratified
71. If Weight Watchers is interested in collecting information about Americans’ perceptions of dieting programs, and the company believes that significant regional differences may exist, the best type of sampling would be
a) random.
b) quota.
c) population.
d) stratified.
e) nonquota.
d) stratified.
72. In ___________ sampling, there is no way to calculate the likelihood that a specific element of the population being studied will be chosen.
a) population
b) random
c) stratified
d) probability
e) nonprobability
e) nonprobability
73. In which type of sampling design is the final choice of respondents left up to the interviewer?
a) Stratified
b) Random
c) Cluster
d) Area
e) Quota
e) Quota
74. When researchers divide the population of interest in a study into groups and then arbitrarily choose participants from each group, they are using
a) quota sampling.
b) selective surveying.
c) random sampling.
d) stratified sampling.
e) researcher samples.
a) quota sampling.
75. Quota sampling is most commonly used in
a) descriptive research.
b) population research.
c) surveys.
d) collecting primary data.
e) exploratory studies.
e) exploratory studies.
76. Nelson Marketing Research is concerned about using surveys to conduct a marketing research project because
a) response rates are declining.
b) primary data are so much cheaper and easier to gather.
c) survey data collection is highly inaccurate.
d) survey data do not provide in-depth responses.
e) the survey method has been replaced by the Internet.
a) response rates are declining.
77. What is the primary factor contributing to the increasing difficulty associated with gathering primary data through surveys?
a) Most companies do not have any funding for survey research.
b) Fewer people are willing to participate in surveys.
c) Laws significantly limit firms’ ability to conduct surveys.
d) Unreliable methods of distributing surveys make them difficult to conduct.
e) Very little useful information is ever gathered from survey results.
b) Fewer people are willing to participate in surveys.
78. Which of the following is the least flexible survey method?
a) Telephone surveys
b) Focus-group interviews
c) Personal interview surveys
d) Mail surveys
e) Observation
d) Mail surveys
79. Peter Demos, director of marketing at Holcomb, Inc., calls in Andrea Carter, the firm’s marketing research director. Peter wants a study done to assess the company’s image relative to a new competitor, Levitt Labs. He has a flexible time schedule, has very little money to devote to the research, and feels that a relatively low response rate will not be a major problem. Andrea will probably recommend using a ___________ survey.
a) mail
b) telephone
c) random
d) personal interview
e) population
a) mail
80. Maggie has limited funds for collecting data about a new pricing strategy, but she needs data from a wide geographic area. Under these circumstances, Maggie should use
a) telephone surveys.
b) in-home interviews.
c) mail surveys.
d) shopping mall intercept interviews.
e) focus-group interviews.
c) mail surveys.
81. The major disadvantage of a mail survey versus a telephone or personal survey is
a) having to offer premiums.
b) the failure of respondents to return the questionnaire.
c) the elimination of interview bias.
d) the lack of open-ended questions.
e) the cost.
b) the failure of respondents to return the questionnaire.
82. An offshoot of mail surveys, ______ have shortcomings because the people who participate in them generally have higher incomes and education levels than the general population.
a) purchase diaries
b) telephone surveys
c) online surveys
d) focus-group interviews
e) immediate feedback forms
a) purchase diaries
83. Compared to a mail survey, telephone surveys have
a) lower response rates.
b) a slower response time.
c) invalid results.
d) fewer expenses.
e) higher response rates.
e) higher response rates.
84. The manager of MegaMarket is interested in asking consumers what they think about the store’s new layout and expanded produce selection. If the manager would like to obtain a high response rate and have the study conducted as quickly as possible, which data collection method would you recommend?
a) Mail survey
b) Direct observation of consumers in the store
c) Telephone survey
d) Focus-group interview
e) Shopping mall intercept interview
c) Telephone survey
85. Although telephone surveys can be conducted very quickly, a major limitation is
a) the ability to gain rapport with respondents.
b) the difficulty in asking probing questions.
c) that few companies prefer this survey method.
d) that only a small portion of the population likes to participate in telephone surveys.
e) the expense compared to in-home interviews.
d) that only a small portion of the population likes to participate in telephone surveys.
86. The National Do-Not-Call list affects the ability of marketing researchers to use
a) mail surveys.
b) sampling.
c) personal interview surveys.
d) in-home interviews.
e) telephone surveys.
e) telephone surveys.
87. Which of the following survey methods has the potential to offer quick response at a lower cost than traditional mail and telephone surveys?
a) Total population surveys
b) In-home (door-to-door) interviews
c) Focus-group interviews
d) Personal interview surveys
e) Online surveys
e) Online surveys
88. Which of the following basic survey methods is the least expensive method if there is an adequate response rate?
a) Mail surveys
b) Online surveys
c) Telephone surveys
d) Personal interview surveys
e) Focus groups
b) Online surveys
89. Spam and privacy are both issues of concern related to
a) personal interview surveys.
b) telephone surveys.
c) shopping mall intercept interviews.
d) e-mail surveys.
e) online experimentation.
d) e-mail surveys.
90. Marketing researchers typically favor ___________ because they are extremely flexible.
a) mail surveys
b) direct observation
c) experiments
d) personal interviews
e) telephone surveys
d) personal interviews
91. Participants in _______ frequently get to see pictures, products, advertising samples, and diagrams.
a) online surveys
b) personal interview surveys
c) mail surveys
d) telephone surveys
e) probability samples
b) personal interview surveys
92. If a marketing researcher is interested in observing group interaction during an informal, unstructured, and open-ended data collection process, he or she should use
a) observation.
b) a focus-group interview.
c) an on-site computer interview.
d) a shopping mall intercept interview.
e) a telephone survey.
b) a focus-group interview.
93. A research method in which a number of people are exposed to an idea or concept and the interaction of the people is observed is called a(n)
a) in-home interview.
b) mail-group survey.
c) focus-group interview.
d) shopping mall intercept interview.
e) chat room interview.
c) focus-group interview.
94. Emily Dawson and seven other people were paid to get together and discuss a new product idea proposed by Johnson & Johnson. Researchers observed the interaction of the group. This method is called a
a) focus-group interview.
b) group survey.
c) personal interview survey.
d) sampling team.
e) mail survey.
a) focus-group interview.
95. Kelsey thinks she will be able to get the highest quality of responses concerning the product features most sought by consumers through personal interviews. She decides to conduct her interviews at _____ because this is the most common location for personal interviews.
a) a shopping mall
b) the respondent’s home
c) the interviewer’s home
d) the company’s offices
e) a city park
a) a shopping mall
96. A survey question that requires a yes or no answer is called a
a) qualifier.
b) multiple-choice question.
c) 50-50 question.
d) dichotomous question.
e) bimodal question.
d) dichotomous question.
97. An item on the University Book Store’s survey asks respondents to tell the store, in their own words, what they like least about textbook shopping. This item would be an example of a(n) ___________ question.
a) open-ended
b) dichotomous
c) forced-sum-choice
d) multiple-choice
e) limited-choice
a) open-ended
98. When Pepsi Max implemented a telephone survey to determine the effectiveness of a recent advertising campaign. One of the questions the interviewer asked was, “Have you ever heard of a cola with twice the caffeine of regular colas?” This is an example of which of the following kinds of questions?
a) Open-ended
b) Dichotomous
c) Multiple-choice
d) Imperative
e) Declarative
b) Dichotomous
99. An online survey conducted before students could register for their fall semester classes asked, “Do you think online professor evaluation forms would be better than paper and pencil forms administered during class?” This is an example of a(n) ______ question.
a) close-ended
b) short answer
c) multiple-choice
d) open-ended
e) dichotomous
e) dichotomous
100. For demographic purposes, a mail survey sent out by the American Cancer Society asks each respondent to identify their race by choosing among a list of possibilities. This common type of question is called a(n) _____ question.
a) dichotomous
b) multiple-choice
c) categorized
d) open-ended
e) optional response
b) multiple-choice
101. When a market researcher is using ethnographic techniques, he or she is engaging in
a) mail surveys.
b) personal interview surveys.
c) observation.
d) experimentation.
e) focus groups.
c) observation.
102. Cameras, counting machines, and scanners are used most often in
a) surveys.
b) secondary data gathering.
c) field settings.
d) observation.
e) experimentation.
d) observation.
103. Having recording biases and collecting only descriptive information are two of the primary drawbacks to
a) statistical interpretation.
b) mail surveys.
c) observation.
d) personal interviews.
e) experimentation.
c) observation.
104. If Procter & Gamble, the maker of Dawn dishwashing liquid, wants to know what percentage of customers examine product labels before making a product selection in the grocery store, it can best gain this information through
a) focus groups.
b) mail surveys.
c) personal interviews.
d) observation.
e) mall intercepts.
d) observation.
105. Nathan, a marketing manager for Casual Express, a retail clothing store chain, wants to use observation methods to gather information about shopping behavior. Which of the following should Nathan know about observation methods of data collection?
a) Observation uses secondary sources of data.
b) Observation depends on mall interviews.
c) Observation can tell Nirendra what is being done, but not why.
d) Observation focuses on open-ended questions.
e) Observation works best for telephone surveys.
c) Observation can tell Nirendra what is being done, but not why.
106. Which step in the marketing research process follows collecting data?
a) Reporting research results
b) Implementing organizational change
c) Interpreting research findings
d) Designing the research project
e) Refining the research issue
c) Interpreting research findings
107. Carlos was given the task of conducting a research project for his firm and proceeds with the following steps: he asks questions to determine the research topic, conducts a telephone survey, writes a report describing the survey results, and gives that report to his boss. Which step of the marketing research process has Carlos omitted?
a) Collecting data
b) Defining and locating problems
c) Interpreting research
d) Designing the research project
e) Reporting research findings
c) Interpreting research
108. In the process of conducting marketing research, marketers should allow for
a) periodic review of data during the collection period.
b) continual evaluation of the data during the entire collection period.
c) no data review during collection; instead, they should wait for later interpretation of research findings.
d) descriptive research to solve general problems.
e) statistical analysis during the collection period.
b) continual evaluation of the data during the entire collection period.
109. Which step in the marketing research process involves the use of data analysis and statistical techniques to help draw conclusions?
a) Locating and defining problems or research issues
b) Developing hypotheses
c) Collecting data
d) Interpreting research findings
e) Reporting research findings
d) Interpreting research findings
According to the text, ___________ interpretation focuses on what is typical or what deviates from the average.
a) statistical
b) descriptive
c) exploratory
d) secondary
e) primary
a) statistical
111. Darren uses Microsoft Excel to determine how much the responses to his survey about household decision making for toilet paper vary. Darren is in the ______ step of the marketing research process.
a) interpreting research findings
b) reporting research findings
c) collecting data
d) designing the research project
e) developing a hypothesis
a) interpreting research findings
112. Suppose that a retail store conducts a mail survey of its customers and finds that 50 percent of the customers believe store personnel are “courteous.” Which benchmark or comparison would be most useful for interpreting this result?
a) The annual dollars spent at the store by those customers who believe store personnel are courteous
b) How the 50 percent figure compares with that for competitors
c) The percentage of store personnel who have completed training in customer service and public relations
d) How the 50 percent figure compares with industrial or wholesale institutions and stores
e) The percentage of store personnel who feel they are courteous to customers
b) How the 50 percent figure compares with that for competitors
113. The final step in the marketing research process is
a) interpreting research findings.
b) making sure the marketing research was conducted in an ethical manner.
c) putting the results into a written document that is technical and written in formal language.
d) reporting the research findings.
e) deciding what the next research project should investigate.
d) reporting the research findings.
114. Corporate executives often prefer marketing research findings to be put into a report
a) full of statistical analysis with details on methods employed by the researchers.
b) examining the ethical implications of implementing results from the research report.
c) that exposes no deficiencies or limitations of the research process.
d) that is clear, short, and simply expressed.
e) expressing the views and beliefs of top management about the research problem.
d) that is clear, short, and simply expressed.
115. In reporting marketing research findings, the researcher should
a) provide explanations in language that those who use the report to make decisions can understand.
b) write the report in an extremely technical and statistical style.
c) fit the problem to a favored statistical technique.
d) not acknowledge any limitations associated with the study.
e) give management the answers it wants.
a) provide explanations in language that those who use the report to make decisions can understand.
116. There is some concern that marketing research has been used incorrectly by some firms. The major problem comes from ___________ because the researcher wants to obtain favorable results.
a) using an inappropriate sample
b) bias and distortion
c) trying to be objective about views and opinions
d) using in-house research departments
e) employing large research firms, such as Gallup
b) bias and distortion
117. A framework for gathering and managing information from sources both inside and outside an organization is referred to as
a) marketing research agencies.
b) a marketing information system.
c) the marketing mix.
d) a marketing research system.
e) a secondary data system.
b) a marketing information system.
118. Which one of the following best characterizes a marketing information system (MIS)?
a) An MIS is an orderly gathering of information that is not supplied through routine reporting systems such as sales reports and accounting data.
b) An MIS provides a continuous flow of information about such things as distribution costs, prices, sales, and advertising expenses.
c) An MIS is conducted on a special-project basis when needed.
d) An MIS requires adjustments to its techniques to adapt to environmental circumstances and is in reality part of the accounting system.
e) An MIS involves internal information collection about employees and customers.
b) An MIS provides a continuous flow of information about such things as distribution costs, prices, sales, and advertising expenses.
119. The main focus of a marketing information system is on
a) the coordination of external information sources.
b) classifying data into the proper information categories.
c) data storage and retrieval.
d) the accurate maintenance of inventory levels.
e) gathering information on competitive activity.
c) data storage and retrieval.
120. American Flooring sells all types of floor coverings to contractors and other businesses. It keeps a collection of information about all of its clients that can be easily accessed on the company’s computer system. This collection of information is called a
a) marketing information system.
b) database.
c) management information system.
d) single-source data.
e) marketing decision support system.
b) database.
121. Bart’s Appliance Center owner Ron Bart feels that his organization has access to a great deal of information generated both inside and outside the firm, but much of this information is presently going to waste. Apparently, Bart needs to develop a
a) marketing research focus.
b) marketing knowledge bank.
c) marketing information system.
d) marketing strategy.
e) data-gathering system.
c) marketing information system.
122. A(n) ___________ is a collection of information arranged for easy access and retrieval.
a) database
b) marketing information system
c) marketing decision support system
d) online information service
e) e-mail system
a) database
123. Information provided by a single firm on household demographics, consumer purchases, television viewing behavior, and responses to promotions is called ___________ data.
a) single-source
b) census
c) consumer demographic
d) multi-point
e) single-point
a) single-source
124. Behavior Scan, a research company, provides information on household demographics, television viewing habits, and purchases tracked with Hotline cards. This is
a) a marketing information system.
b) a business software database.
c) online information.
d) U.S. Census data.
e) single-source data.
e) single-source data.
125. Computer software that aids marketing managers in decision making by helping them anticipate the effect of certain decisions is known as a
a) database.
b) marketing research system.
c) marketing information system.
d) marketing decision support system.
e) single-source system.
d) marketing decision support system.
126. Marketing information systems and marketing research have changed rapidly because customers and companies around the world have been linked by
a) the computer.
b) the super database.
c) the Interactive network.
d) electronic online services.
e) evolving telecommunications.
e) evolving telecommunications.
127. The following are all guidelines for questionnaire construction that support ethical marketing research except to
a) allow the interviewer to introduce him/herself by name.
b) indicate that this is a marketing research project.
c) explain that no sales will be involved.
d) state the likely duration of the interview.
e) keep the name of the research company confidential.
e) keep the name of the research company confidential.
128. Which of the following statements about conducting marketing research internationally is false?
a) The marketing research process may need to be modified to allow for regional differences.
b) A detailed search for and analysis of secondary data can help researchers gain a greater understanding of a particular marketing environment and pinpoint issues that must be taken into account in gathering primary research data.
c) Primary data gathering may have a greater chance of success if the firm employs local researchers who better understand how to approach potential respondents and can do so in their own language.
d) Specific differences among countries can have a profound influence in data gathering.
e) Specific differences among countries have no affect on data gathering or the marketing research process.
e) Specific differences among countries have no affect on data gathering or the marketing research process.