MRKT: Chapter 16

1. The marketing concept is a philosophy of customer satisfaction and ________.
a. company profit
b. mutual gain
c. innovation
d. relationship-building
e. social benefits
mutual gain
2. Many critics charge that the American marketing system causes ________ to be higher than they would be under more “sensible” systems.
a. imports
b. exports
c. prices
d. product safety measures
e. employee morals
prices
3. Critics charge that intermediaries ________.
a. are too few in number
b. are inefficient
c. provide only necessary services
d. underprice their services
e. are too competitive
are inefficient
4. A long-standing charge against intermediaries is that they mark up prices beyond the ________.
a. value of their services
b. delivery charges
c. going market price
d. range most Americans can afford to pay
e. resale value
value of their services
5. Marketers respond to charges of high advertising and promotion costs unnecessarily increasing retail prices by arguing that advertising adds ________.
a. only psychological value
b. value by providing information about product availability
c. quality to the product
d. functional value to the product
e. B and C
value by providing information about product availability
6. Most businesses try to deal fairly with consumers because ________.
a. businesses want to build customer relationships
b. businesses want to justify their prices
c. businesses want repeat business
d. all of the above
e. A and C
businesses want to build customer relationships AND businesses want repeat business
7. Deceptive practices fall into three groups: deceptive ________, deceptive________, and deceptive ________.
a. product; pricing; promotion
b. pricing; promotion; placement
c. pricing; promotion; packaging
d. packaging; product; promotion
e. product; packaging; placement
pricing; promotion; packaging
8. Deceptive promotion differs from deceptive pricing in that deceptive promotion overstates the product’s ________ or ________.
a. true price; performance
b. features; performance
c. packaging; costs
d. design; features
e. availability; package contents
features; performance
9. A major step in regulating “unfair or deceptive business acts and practices” was the enactment of the ________ in 1938.
a. Robinson-Patman Act
b. Wheeler-Lea Act
c. Interstate Commerce Commissions
d. Taft-Hartley Act
e. Stamp Act
Wheeler-Lea Act
10. Advertising “puffery” is a term for ________.
a. a straightforward promotional message
b. innocent exaggeration for effect
c. emotional appeals to consumers
d. subliminal appeals to consumers
e. value-added promotions
innocent exaggeration for effect
11. When critics claim that insurance, real estate, and used cars are sold, not bought, they are making accusations of the use of________.
a. deceptive promotions
b. excessive markups
c. high-pressure selling
d. shoddy products
e. excessive materialism
high-pressure selling
12. Consumers Union, the nonprofit testing and information organization, publishes ________ to assist the consumer in choosing products and to encourage businesses to eliminate product flaws.
a. Consumer Digest
b. Buyers Weekly
c. Home & Garden
d. Consumer Reports
e. Sports Illustrated
Consumer Reports
13. Critics have charged that some companies intentionally manufacture their products with materials or components that cause the product to need to be replaced before it actually should need replacement. What is this called?
a. product failure
b. short-term planning
c. planned obsolescence
d. nonfunctional warranty
e. expressed dissatisfaction
planned obsolescence
14. Planned obsolescence might involve all of the following except which one?
a. the use of unsafe materials
b. producers continually changing consumer styles
c. the holding back of attractive functional features, then introducing them later to make older models obsolete
d. the use of materials that will rust sooner than they should
e. the use of components that will break soon after purchase
the use of unsafe materials
15. Marketers respond to charges of planned obsolescence with all of the following EXCEPT which one?
a. Consumers like change.
b. No one is forced to buy the new product.
c. The product will eventually wear out anyway.
d. For most technical products, customers want the latest innovations.
e. Companies do not want to lose customers to other brands.
The product will eventually wear out anyway.
16. Critics claim that companies in the ________ industries introduce planned streams of new products that make older models obsolete, a form of planned obsolescence that harms consumers.
a. car and truck
b. housing and construction
c. food and beverage
d. consumer electronics and computer
e. financial and entertainment
consumer electronics and computers
17. Critics who believe that the American marketing system poorly serves disadvantaged consumers claim that the ________pay more for inferior goods.
a. wealthy
b. uneducated
c. urban poor
d. rural poor
e. elderly
urban poor
18. The presence of ________ in low-income neighborhoods makes a big difference in keeping prices down.
a. malls
b. super centers
c. redlining companies
d. large national chain stores
e. factory outlets
large national chain stores
19. When major chain retailers avoid placing stores in disadvantaged neighborhoods, they are likely to be accused of the discriminatory practice of ________.
a. embargo
b. licensing
c. redlining
d. puffery
e. scrambling merchandise
redlining
20. Critics have charged that the marketing system urges too much interest in ________.
a. material possessions
b. the push strategy
c. meeting a quota
d. new product invention
e. entering the global market arena
material possessions
21. Critics of the American economic marketing system have charged that marketers have created a culture in which people are judged by what they ________.
a. are
b. own
c. do
d. eat
e. avoid
own
22. A drive for wealth and possessions hit new highs in the ________, when phrases such as “greed is good” and “shop till you drop” seemed to characterize the times.
a. 1950s
b. 1960s
c. 1980s
d. 1990s
e. C and D
1980s and 1990s
23. In the current decade, social scientists have noted a ________.
a. stronger infatuation with material things
b. strong consumer need to buy
c. reaction against waste
d. greater demand for luxury experiences than products
e. greater demand for luxury products than services
reaction against waste
24. The critics do NOT view the typical American interest in material things as ________.
a. a natural state of mind
b. hurting society
c. based in created needs
d. A and C
e. Necessary
a natural state of mind
25. Businesses hire ________ firms to use mass media to create materialistic models of the good life.
a. Hollywood
b. Broadway
c. Madison Avenue
d. Fifth Avenue
e. Michigan Avenue
Madison Avenue
26. Critics say marketing is seen as benefiting ________ more than ________.
a. consumers; industry
b. industry; consumers
c. stores; manufacturers
d. exporters; importers
e. independent sellers; chain stores
industry; consumers
27. Marketers are most effective when they appeal to ________ rather than when they ________.
a. exciting new inventions; use old ones
b. teenagers; target older people
c. existing wants; attempt to create new ones
d. emotions; appeal to actual needs
e. the mass market; appeal to market segments
existing wants; attempt to create new ones
28. The high failure rate of new products shows that companies are not able to ________.
a. control demand
b. advertise enough
c. find manufacturers
d. find outlets
e. none of the above
control demand
29. The overselling of private goods results in ________, such as cars causing traffic jams, air pollution, injuries, and deaths.
a. cultural pollution
b. misdirected funding
c. social costs
d. materialism
e. opportunity costs
social costs
30. To restore the balance between private and public goods, producers could be required to bear the full ________ costs of their operations.
a. promotional
b. cultural
c. environmental
d. social
e. safety
social
31. For cars, “social costs” include all of the following except which one?
a. traffic congestion
b. air pollution
c. gasoline shortages
d. congestion tolls
e. traffic accidents
congestion tolls
32. Cultural pollution could be referred to as ________.
a. commercial noise
b. air pollution
c. language barriers
d. a marketer’s inability to identify a target market
e. zipping or zapping
commercial noise
33. A major way to reverse the cultural pollution caused by marketing is to adjust ________.
a. product selection
b. advertising levels
c. product positioning
d. consumer attitudes
e. the morale level
advertising levels
34. In response to charges of ________, marketers point out that advertising makes much of television and radio free to users and also keeps down the cost of magazines and newspapers.
a. too few social goods
b. creating false wants
c. creating too much materialism
d. high promotion costs
e. cultural pollution
cultural pollution
35. Critics charge that a company’s marketing practices can harm other companies and reduce competition among companies. Problems involved include all of the following EXCEPT which one(s)?
a. acquisitions of competitors
b. marketing practices that create barriers to entry
c. marketing practices that confuse consumers
d. unfair competitive marketing practices
e. B and D
marketing practices that confuse consumers
36. Which of the following is most responsible for the shrinking number of competitors in almost every major industry?
a. declining materialism and a return to more basic values
b. acquisition of competitors
c. marketing practices that create barriers to entry
d. unfair competitive marketing practices
e. predatory pricing
acquisition of competitors
37. Large marketing companies can use patents and heavy promotion spending to ________.
a. acquire smaller companies
b. bear the social costs of their operations
c. set up barriers for others wanting to enter the industry
d. achieve economies of scale
e. offset cultural pollution
set up barriers for others wanting to enter the industry
38. Which of the following is NOT a potential advantage of the practice of acquisition?
a. The acquiring company can gain economies of scale.
b. Acquisitions require little government oversight.
c. An acquiring company may improve the efficiency of an acquired company.
d. An industry might become more competitive after an acquisition.
e. The acquisition may result in lower costs, leading to lower prices for consumers.
Acquisitions require little government oversight
39. Setting prices below cost, threatening to cut off business with suppliers, and discouraging the purchase of a competitor’s products are all examples of ________.
a. routine competition
b. excessive materialism
c. predatory competition
d. acquisitions
e. barriers to entering a market
predatory competition
40. The two major movements to keep business in line are environmentalism and ________.
a. consumerism
b. protectionism
c. antimonopoly legislation
d. regulating interstate commerce
e. none of the above
consumerism
41. The first organized consumer movement in the United States took place in the early 1900s. It was fueled by all of the following conditions EXCEPT which one?
a. rising prices
b. conditions in the meat industry
c. unsafe merchandise
d. scandals in the drug industry
e. Upton Sinclair’s writing
unsafe merchandise
42. Ralph Nader is most closely associated with which of the following?
a. the consumerism movement of the 1960s
b. the environmentalism movement of the 1960s and 1970s
c. the current wave of environmentalism
d. enlightened marketing
e. consumer-oriented marketing
the consumerism movement of the 1960s
43. _____ is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers.
a. Environmentalism
b. The Bill of Rights
c. Grassroots politics
d. Consumerism
e. The Human Relations Movement
Consumerism
44. Which of the following is not a traditional sellers’ right?
a. the right to charge any price for the product
b. the right to spend any amount to promote the product
c. the right to promote any product to any audience
d. the right to use any buying incentive programs
e. the right to introduce any product in any size and style
the right to promote any product to any audience
45. Many people believe that the balance of power in the buyer-seller relationship lies on the seller’s side. Critics believe that buyers have too little education, protection, and ________ to make wise decisions when facing sophisticated sellers.
a. money
b. information
c. skills
d. bargaining power
e. credit
information
46. Consumer advocates call for all of the following additional consumer rights EXCEPT which one?
a. The right to be protected from unwanted marketing messages.
b. The right to be well informed about important product aspects.
c. The right to be protected against questionable products and marketing practices.
d. The right to influence marketing practices in ways that will improve the quality of life.
e. The right to influence products in ways that will improve the quality of life.
The right to be protected from unwanted marketing messages
47. Proposals related to the consumer’s right to ________ include controlling the ingredients that go into certain products and putting consumer representatives on company boards to speak for consumer interests.
a. not buy a product that is offered for sale
b. expect the product to perform as claimed
c. be well informed about important aspects of the product
d. be protected against questionable marketing practices
e. influence products and marketing practices in ways that will improve the “quality of life”
influence products and marketing practices in ways that will improve the “quality of life”
48. _____ is an organized movement of concerned citizens and government agencies to protect and improve people’s living environment.
a. Consumerism
b. Environmentalism
c. Social responsibility
d. Enlightened marketing
e. Sense-of-mission marketing
Environmentalism
49. Environmentalists assert that the marketing system’s goal should be to maximize ________.
a. consumer protection
b. protection of the environment
c. life quality
d. efficient use of our resources
e. sustainability
life quality
50. The ________ in the United States came about because of concern for the loss of the atmosphere’s ozone layer, toxic wastes, litter, and the damage caused by strip mining and forest depletion.
a. first wave of modern environmentalism
b. second wave of modern environmentalism
c. current wave of environmentalism
d. second wave of consumerism
e. first wave of enlightened marketing
first wave of modern environmentalism
51. _____ is a management approach that involves developing strategies that both sustain the environment and produce profits for the company.
a. Consumerism
b. Environmentalism
c. Environmental sustainability
d. Social responsibility
e. Ethical decision making
Environmental Sustainability
52. Environmental sustainability includes ________.
a. protecting the environment
b. extracting environmental materials to their lowest levels
c. producing profits
d. A and C
e. A, B, and C
Protecting the environment AND producing profits
53. Companies emphasizing ________ are developing “green marketing” programs that develop ecologically safer products, recyclable and biodegradable packaging, more energy-efficient operations, and better pollution controls.
a. pollution prevention
b. product stewardship
c. “beyond greening”
d. new clean technology
e. sustainability vision
pollution prevention
54. Which of the following is not a component of “green marketing”?
a. making safer products
b. cradle-to-cradle practices
c. recycling
d. biodegradability
e. pollution controls
cradle-to-cradle practices
55. Minimizing pollution from production and all environmental impacts throughout the full product life cycle is called ________.
a. green marketing
b. design for environment (DFE)
c. product stewardship
d. environmental sustainability
e. pollution prevention
product stewardship
56. Design for environment (DFE) involves thinking ahead in the design stage to create products that are easier to reuse, recycle, or ________.
a. disintegrate
b. recover
c. dispose of
d. export
e. store
recover
57. What do most companies today focus on when it comes to protecting the environment?
a. investing heavily in pollution prevention
b. practicing product stewardship
c. developing a sustainable vision
d. investing heavily in environmental technology
e. biodegradability
investing heavily in pollution prevention
58. Xavier Rentals, Inc., is now looking into the future and working internally on the third level of environmental sustainability, which is called ________.
a. sustainable vision
b. new clean technology
c. corporate citizenship
d. green marketing
e. greening activity
new clean technology
59. As international trade barriers come down and global markets expand, environmental issues are having ________ impact on international trade.
a. a neutral
b. a positive
c. a decreased
d. a greater
e. more impact on cultural differences and less
a greater
60. The philosophy of ________ holds that a company’s marketing should support the best long-run performance of the marketing system.
a. corporate social responsibility
b. marketing sustainability
c. enlightened marketing
d. the free enterprise system
e. consumer-oriented marketing
enlightened marketing
61. Innovative marketing is ________.
a. a principle of enlightened marketing
b. based on the consumer’s point of view
c. the attempt to continuously seek product and marketing improvements
d. A and C
e. A, B, and C
A,B, and C
62. Which form of enlightened marketing requires that a company seek real product and marketing improvements?
a. consumer-oriented
b. innovative
c. customer-value
d. sense-of-mission
e. market-oriented
innovative
63. Some firms define their purpose in narrow product terms. Others that define their purpose in broad social terms follow ________.
a. societal marketing
b. sense-of-mission marketing
c. consumer-oriented marketing
d. customer-value marketing
e. consumerism
sense-of-mission marketing
64. When an enlightened company makes marketing decisions by considering consumers’ wants and interests, the company’s requirements, and society’s long-run interests, it is practicing ______ marketing.
a. value
b. societal
c. sense-of-mission
d. consumer-oriented
e. customer-value
societal
65. What are deficient products?
a. products that have neither immediate appeal nor long-run benefits
b. products that give high immediate satisfaction but only hurt consumers in the long run
c. products that have low appeal but may benefit consumers in the long run
d. products that are either unsafe or inferior
e. any product in the decline stage of the product life cycle
products that have neither immediate appeal nor long-run benefits
66. A company that makes products that give high immediate satisfaction but may hurt consumers in the long run makes ________ products.
a. deficient
b. pleasing
c. salutary
d. desirable
e. threatening
pleasing
67. Examples of pleasing products include ________.
a. cigarettes and junk food
b. dental services and medications
c. seat belts and air bags
d. fruits and vegetables
e. none of the above
cigarettes and junk food
68. Which of the following is the best example of a desirable product?
a. healthy and delicious breakfast food
b. cigarettes
c. effective but bad-tasting medicine
d. junk food
e. dental insurance
junk food
69. In societal marketing, the ideal goal for companies is to turn all of their products into ________ ones.
a. salutary ones
b. desirable ones
c. pleasing ones
d. durable ones
e. serviceable ones
desirable ones
70. The challenge for makers of which type of product is to add long-run benefits without reducing the product’s pleasing qualities?
a. salutary
b. desirable
c. pleasing
d. durable
e. deficient
pleasing
71. The challenge for makers of which type of product is to add some pleasing qualities so that it will become more desirable in the consumers’ minds?
a. salutary
b. desirable
c. pleasing
d. durable
e. aesthetic
salutary
72. Companies must decide what principle they should use as a guide on issues of ethics and social responsibility. Which one of the following is not a common philosophy to accomplish this end?
a. Let the free market decide.
b. Let the legal system decide.
c. Let society decide.
d. Let individual managers decide.
e. Let individual companies decide.
Let society decide
73. One major issue in foreign trade is bribery. Bribery and corruption are common in all of the following countries except ________.
a. Russia
b. China
c. South Korea
d. New Zealand
e. Haiti
New Zealand
74. The American Marketing Association (AMA) has created a code of ethics that includes all but which of the following ethical values?
a. honesty
b. fairness
c. openness
d. competitiveness
e. responsibility
competitiveness
75. Within a company, ethics and social responsibility require a _________.
a. future-looking approach
b. total corporate commitment
c. separate budget
d. time commitment that most firms do not have
e. high-level ethical officer
total corporate commitment
116. A heavily promoted brand of flu medicine sells for much more than a virtually identical store-branded product. Critics would likely charge that promotion for the branded flu medicine adds only ________ to the product rather than functional value.
a. consistency
b. strength
c. psychological value
d. quality
e. informational value
psychological value
117. Albatross Enterprises was accused of deceptive pricing. Which of the following explains what might have happened?
a. Albatross refused to advertise sale prices in the local paper.
b. Albatross lured customers to the store for a bargain that is out of stock.
c. Albatross advertised a large price reduction from a phony high retail list price.
d. Albatross misrepresented a product’s features in an ad.
e. any of the above
Albatross lured customers to the store for a bargain that is out of stock.
118. Hart’s Department Store was accused of deceptive promotion. Which of the following best explains what might have happened?
a. Hart’s refused to advertise sale prices in the local paper.
b. Hart’s lured customers to the store for a bargain that is out of stock.
c. Hart’s advertised a large price reduction from a phony high retail list price.
d. Hart’s used misleading labeling.
e. B and D
Hart’s lured customers to the store for a bargain that is out of stock.
119. Which of the following advertising situations would least likely be considered “puffery”?
a. Mr. Clean coming to a housewife’s rescue
b. toned thighs and legs as a result of using the Thigh Master for only 15 minutes each day
c. children growing into attractive adults as a result of drinking milk
d. a retired couple drinking a vitamin and protein shake and then going bicycling
e. a sleepy mom who wakes up to a gray day, drinks a cup of coffee, and then looks out her window to see golden sunshine, beautiful flowers blooming, songbirds singing, and a rainbow on the horizon
a retired couple drinking a vitamin and protein shake and then going bicycling
120. The success of the Tom Dennis Ford dealership has been built largely on return customers and word-of-mouth recommendations. The majority of sales are made to customers who have purchased a vehicle at the dealership before or who know someone who had a positive experience purchasing a vehicle there. The sales force at the Tom Dennis Ford dealership most likely knows that using high-pressure selling does not work if the dealership wants to ________.
a. achieve short-term gains
b. move last year’s models
c. obey local and federal law
d. build long-term relationships with customers
e. maintain a database
build long-term relationships with customers
121. Recently, a class-action lawsuit was brought against McDonald’s, charging that its food has contributed to the nationwide obesity epidemic. The suit was eventually dismissed, but many critics continue to point out the health dangers of many “fast food” menu items. These critics are concerned that the fast food industry has used ________.
a. high-pressure selling
b. deceptive promotions
c. deceptive pricing
d. deceptive packaging
e. harmful products
harmful products
122. Trendy Teens manufactures fashionable clothing and accessories for the tween and teen female markets. New merchandise with a very different look is rolled out each season and heavily promoted as the “must-have” style in a variety of media. Trendy Teens could most easily be criticized for which of the following?
a. deceptive promotions
b. shoddy products
c. high-pressure selling
d. poor service to disadvantaged consumers
e. planned obsolescence
planned obsolescence
123. Several companies, some of them operating through the Internet, offer “paycheck advances.” Consumers are encouraged to take out a loan against a paycheck they expect to receive in the near future. These short-term loans with high-interest rates, and high penalties for late payments, are often marketed to consumers who do not have traditional bank accounts. These companies could most easily be criticized for which of the following?
a. shoddy products
b. poor service to disadvantaged consumers
c. high-pressure selling
d. high advertising and promotion costs
e. excessive markups
poor service to disadvantage consumers
124. Bill Talen, also known as the Reverend Billy, leader of the Church of Stop Shopping, wants people to resist the temptation to shop. He annually leads a group of volunteers in his post-Thanksgiving Buy Nothing Parade in front of Macy’s in Manhattan. Bill Talen is criticizing the American marketing system for creating ________.
a. too few social goods
b. environmental problems
c. shoddy products
d. false wants and too much materialism
e. predatory competition
false wants and too much materialism
125. TerraPass is a company that offers consumers the opportunity to buy carbon offsets, which are contributions to projects that combat global warming by reducing carbon emissions. TerraPass offers contribution packages for driving, flying, and home energy use. Through TerraPass, consumers can pay some of the ________ costs of their private goods and services.
a. promotional
b. safety
c. health
d. distribution
e. social
social
126. Karl Lagaros, a marketing critic, is concerned about the pervasiveness about marketing. He points to advertising messages everywhere, from Web sites and e-mails to unwanted direct mail and catalogs to television commercials and product tie-ins to billboards and store signage. Karl is concerned about ________.
a. high advertising and promotion costs
b. cultural pollution
c. deceptive practices
d. false wants and too much materialism
e. the balance between private goods and social goods
Cultural pollution
127. When ABC, Inc., worked to design products that are easier to reuse or recycle, ABC was adopting ________.
a. pollution prevention
b. green marketing
c. a sustainability vision
d. design for environment (DFE) practices
e. new environmental technologies
design for environment (DFE) practices
128. ABC, Inc. is currently designing a new product line with the goal of making each product easy to recover, reuse, or recycle. ABC, Inc. hopes to recover many of these products when they reach the end of their lifecycle and reuse components in new products. ABC, Inc. is in the ________ stage of environmental sustainability.
a. pollution prevention
b. new clean technology
c. product stewardship
d. beyond greening
e. sustainability vision
product stewardship
129. Jacob Engineering Group views and organizes its marketing activities from the viewpoint of its buyers. Management works hard to sense, serve, and satisfy the needs of its well-defined group of buyers. What does Jacob Engineering Group practice?
a. consumer-oriented marketing
b. societal marketing
c. sense-of-mission marketing
d. customer-value marketing
e. innovative marketing
consumer-oriented marketing
130. When Hancock & Dunberry developed and introduced new simplified wills for the elderly and less educated markets, less expensive home visits, and a free statewide legal referral service, the law firm began practicing ________ marketing.
a. consumer-oriented
b. innovative
c. customer-value
d. societal
e. sense-of-mission
innovation
131. Timberland employees get 40 hours paid leave each year to pursue volunteer projects. The company runs a service day that hosts projects in 25 countries, and it supports a nonprofit that brings young people into public service for a year. CEO Jeffrey Swartz sees such service as a powerful differentiator for Timberland with its current and potential customers. Timberland could be most accurately described as practicing ________.
a. consumerism
b. environmental sustainability
c. sustainability vision
d. innovative marketing
e. sense-of-mission marketing
sense-of-mission marketing
132. Baker Enterprises produces several new products that have low appeal but may benefit consumers in the long run. What is the most accurate classification of these products?
a. deficient
b. pleasing
c. salutary
d. desirable
e. unpleasing
salutary
133. Maytag’s front-loading Neptune washer provides superior cleaning and energy efficiency. The Neptune washer is an example of a ________ product.
a. deficient
b. pleasing
c. salutary
d. desirable
e. satisfying
desirable
134. Monica Carey is a conscientious marketing manager. Sometimes it is unclear what decisions to make when she and her staff are faced with moral dilemmas. Monica and other managers could create broad guidelines that everyone in the organization must follow in the form of ________.
a. a company value statement
b. a company mission statement
c. a company vision statement
d. corporate marketing ethics policies
e. a financial statement
corporate marketing ethics policies
135. A company that produces and heavily markets cigarettes, with many promotions aimed at young (although legal age) nonsmokers, most likely follows which of the following as a guiding principle?
a. the philosophy that companies should have a social conscience
b. the philosophy that companies can do in good conscience whatever the market and legal systems allow
c. the philosophy of enlightened marketing
d. the philosophy of consumer-oriented marketing
e. the philosophy of consumerism
the philosophy that companies can do in good conscience whatever the market and legal systems allow