Upload
lytuyen
View
213
Download
1
Embed Size (px)
Citation preview
SECTION 1 POOL ITEMS
Chapter 1—An Overview of Marketing
MULTIPLE CHOICE
1. The term marketing refers to:a. new product concepts and
improvementsb. sellingc. advertising and promotion
activitiesd. a philosophy that stresses
customer satisfactione. planning sales campaigns
ANS: D PTS: 1 REF:3 OBJ:01-1 TYPE: DefTOP: AACSB Reflective
SECTION 1 POOL ITEMS
2. A business is concerned with many day-to-day activities. Some of the most important of these activities are the planning and development of a product, its pricing policy, and the distribution strategy. These activities are all a part of:a. a control systemb. marketingc. accountingd. productione. human resources
ANS: B
3. _____ is a philosophy, an attitude, a perspective, or a management orientation that stresses customer satisfaction.
SECTION 1 POOL ITEMS
a. Planning strategyb. Customer managementc. Marketingd. A control systeme. Reciprocity
ANS: C PTS: 1 REF:3 OBJ:01-1 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Product
SECTION 1 POOL ITEMS
4. The American Marketing Association's definition of marketing:a. is limited to promotional
activitiesb. focuses on the value of
empowerment, teamwork, and customer value
c. shows how marketing benefits the marketer
d. relies on the synergy created by exchange
e. includes the processes marketers use to establish and maintain relationships with customers
ANS: E
SECTION 1 POOL ITEMS
5. _____ is a key ingredient in the philosophy of marketing; it occurs when people give up something in order to receive something that they would rather have.a. Exchangeb. Synergyc. Transformationd. Leveraginge. Reciprocity
ANS: A PTS: 1 REF:3-4 OBJ:01-1 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Product
SECTION 1 POOL ITEMS
6. In order for exchange to occur:a. a complex societal system
must be involvedb. organized marketing
activities must also take place
c. a profit-oriented organization must be involved in the process
d. money or other legal tender is required
e. each party must have something the other party considers to be valuable
ANS: E
SECTION 1 POOL ITEMS
9. For an exchange to take place:a. there must be at least two
parties involvedb. money must be used in the
transactionc. each party must feel
obligated to accept the offerd. at least one party must have
something of value that the other party desires
e. neither party must communicate with the other
ANS: A
SECTION 1 POOL ITEMS
10.Indonesian logging companies harvest the rainforests for timber and assume that a market exists for their products. The typical Indonesian logging company has a(n) _____ orientation.a. exchangeb. productc. productiond. salese. environmental
ANS: C
SECTION 1 POOL ITEMS
11.The concept of exchange is important to marketing because:a. if all the conditions for an
exchange are in place, then the exchange will be completed
b. exchange provides money to marketers
c. marketing activities help to create exchange
d. marketing activities are a requirement for exchange to take place
e. money is the only medium of exchange for business marketers
ANS: C
SECTION 1 POOL ITEMS
14.Which of the following is NOT a marketing management philosophy?a. sales orientationb. societal marketing
orientationc. market orientationd. profitability orientatione. production orientation
ANS: D
SECTION 1 POOL ITEMS
15. Firms with a _____ orientation focus on the internal capabilities of the firm rather than on the desires and needs of the marketplace.a. salesb. productionc. marketd. customere. customer-benefit
ANS: B PTS: 1 REF:4-5 OBJ:01-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Product
SECTION 1 POOL ITEMS
16.A company that sets its goals and strategies based on what its current equipment can produce, what products engineering can design, and what the company itself can do best, has a(n) _____ orientation.a. marketplaceb. salesc. marketd. exchangee. production
ANS: E PTS: 1 REF:4-5 OBJ:01-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy| TB&E Model Product
SECTION 1 POOL ITEMS
19.A firm with a production orientation is most likely to survive if:a. there are many small
competitors in the marketplace
b. demand for the product it produces exceeds supply
c. the needs of the marketplace are constantly shifting
d. supply for the product it produces exceeds demand
e. any of the above conditions exist
ANS: B
SECTION 1 POOL ITEMS
The production orientation can survive in the short term under a variety of conditions; however, if market needs change, long-term survival is difficult.
PTS:1 REF: 4-5 OBJ: 01-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy
20.A firm that adopts a(n) _____ orientation to marketing will fail to consider whether what the firm produces most efficiently also meets the needs of the marketplace.a. customerb. exchangec. productd. market
SECTION 1 POOL ITEMS
e. production
ANS: EThe production orientation forces a company to build whatever it builds best, that is, whatever it has the experience and expertise in doing.
PTS:1 REF: 4-5 OBJ: 01-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer
22.The _____ orientation assumes people will buy more if aggressive selling techniques are used.
SECTION 1 POOL ITEMS
a. marketb. salesc. customerd. productione. exchange
ANS: BThe sales orientation assumes aggressive selling is what is needed to increase demand.
PTS:1 REF: 5 OBJ: 01-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Pricing
SECTION 1 POOL ITEMS
23.A _____ orientation assumes marketing means selling things and collecting money. It also assumes people will buy more goods and services if aggressive marketing techniques are used.a. salesb. productionc. marketd. customere. marketplace
ANS: A PTS: 1 REF:5 OBJ:01-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer
SECTION 1 POOL ITEMS
25.If a company uses a sales orientation, consumer complaints would most likely result in:a. a modification of the sales
presentationb. product reinventionc. continuous market researchd. philanthropye. attempts to cut production
costs
ANS: AThe sales orientation relies on aggressive sales techniques to fuel business.
PTS:1 REF: 5 OBJ: 01-2
SECTION 1 POOL ITEMS
TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy
29.Companies that rely on the marketing concept and that have implemented a market orientation strategy recognize that:a. price is the most important
variable for customersb. sales depend predominantly
on an aggressive sales forcec. what the customer thinks he
or she is buying is what is important
d. a company has to apply scientific management
SECTION 1 POOL ITEMS
techniques to survivee. selling and marketing are
essentially the same thing
ANS: CThe perceived product and perceived value are what the customer is buying, and the marketing concept and market orientation have endeavored to understand those perceptions.
PTS:1 REF: 5-6 OBJ: 01-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer
SECTION 1 POOL ITEMS
30.A company that has a market orientation and adheres to the marketing concept does NOT:a. integrate all the activities of
the firm to satisfy customer wants
b. focus on consumer needs and wants
c. differentiate the firm's products from its competitor's products
d. fuel sales growth through the application of aggressive sales techniques
e. concentrate on long-term goal achievement (such as profits and growth) for the firm
SECTION 1 POOL ITEMS
ANS: DAggressive sales techniques are part of the sales orientation and are not needed if a company is meeting needs and wants of its customers.
PTS:1 REF: 5 OBJ: 01-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy| TB&E Model Product
31.The statement, "Marketing should be introduced at the beginning rather than the end of the production cycle and integrated into each phase of the business," is consistent with a(n) _____ orientation.
SECTION 1 POOL ITEMS
a. productionb. marketc. retaild. salese. enterprise
ANS: BUnderstanding the competitive arena and competitors' strengths and weaknesses is a critical component of market orientation.
PTS:1 REF: 5-6 OBJ: 01-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Product
SECTION 1 POOL ITEMS
36.The marketing concept involves:a. focusing on customers'
wants so that the organization can distinguish its product (or products) from the competitors' products
b. satisfying management's needs and wants with the idea of maximizing profits in the short run
c. selling as much product as possible under the assumption people will buy more goods and services if aggressive selling techniques are used
d. selling as much as possible
SECTION 1 POOL ITEMS
under the assumption consumers will buy more at lower prices
e. focusing on production in order to increase product quality and lower prices
ANS: A PTS: 1 REF:5-6 OBJ:01-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer
37.The marketing concept includes a goal orientation to remind managers that:a. achieving long-term
organizational goals is as important as satisfying
SECTION 1 POOL ITEMS
customersb. customers must be satisfied
no matter what the long-term effect on the firm
c. the only reason for any business to exist is to make a profit
d. the objective is to find a target market that differs from that of the competition
e. functional integration of all departments is useful but not essential
ANS: AThe goal orientation refers to the company's goals, such as profit, growth, service, and survival.
SECTION 1 POOL ITEMS
PTS:1 REF: 5-6 OBJ: 01-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer
38.The marketing concept stresses that the social and economic justification for an organization's existence is the satisfaction of customer needs and wants while:a. producing a good or service
at the lowest possible costb. improving the general
standard of livingc. constantly increasing sales
volumesd. applying scientific
management techniques to
SECTION 1 POOL ITEMS
improve efficiencye. simultaneously meeting
organization objectives
ANS: EThe marketing concept holds that the needs and wants of both the customer and the firm be served.
PTS:1 REF: 5-6 OBJ: 01-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer
SECTION 1 POOL ITEMS
40.An organization with a(n) _____ believes that it exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests.a. sales orientationb. market orientationc. ethical business missiond. focused target market
strategye. societal orientation
ANS: E PTS: 1 REF:6 OBJ:01-2 TYPE: DefTOP: AACSB Diversity| TB&E Model Customer
SECTION 1 POOL ITEMS
45.Which of the following statements about the societal orientation is true?a. Companies that protect the
environment by using all-natural materials in their products are showing a societal marketing orientation.
b. Marketers cannot deliver all benefits sought by customers because these benefits may not be in the long-term best interests of the customers.
c. The societal marketing concept is an important refinement of the market
SECTION 1 POOL ITEMS
concept.d. Organizations have both a
social and economic justification for their existence.
e. All of these statements about the societal orientation are true.
ANS: E PTS: 1 REF:6 OBJ:01-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Research| TB&E Model Customer
SECTION 1 POOL ITEMS
48.Organizations that sell products that are often unsought (such as life insurance and retirement plans) may find themselves adopting a _____ orientation because the companies are marketing products that most people do not want.a. salesb. productionc. marketingd. producte. customer
ANS: AAggressive selling is sometimes used by companies that sell products their customers do not want to buy.
SECTION 1 POOL ITEMS
PTS:1 REF: 5 OBJ: 01-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Promotion
57._____ gives customers the feeling their concerns are being addressed and at the same time gives employees the feeling their expertise matters to management.a. Management-employee
synergyb. Organizational entropyc. Managerial reciprocityd. Empowermente. Delegation
ANS: D PTS: 1 REF:9 OBJ:
SECTION 1 POOL ITEMS
01-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer
58.Market-oriented firms primarily focus their efforts upon:a. improving the technological
skills and competitive advantages of the firm
b. satisfying the organization's needs for low overhead
c. achieving the company’s societal responsibilities inexpensively
d. distributing goods and services
e. satisfying the wants and needs of their customers
SECTION 1 POOL ITEMS
ANS: EMarket-oriented firms are focused outward toward their customers.
PTS:1 REF: 6 OBJ: 01-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer
59.Which of the following statements about a typical sales-oriented business is true?a. The company develops its
products to meet the needs of specific groups of people.
b. The primary goal of the company is profit through customer satisfaction.
SECTION 1 POOL ITEMS
c. The company invests the majority of its resources in promoting its products and services.
d. The company is in business to satisfy customers' wants and needs and deliver superior value.
e. All of these statements about a typical sales-oriented business are true.
ANS: CSee Review Learning Outcome 3.
PTS:1 REF: 6 | 10 OBJ:01-3 TYPE: CompTOP: AACSB Analytic| TB&E Model
SECTION 1 POOL ITEMS
Customer
60._____ is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.a. Opportunity costb. Marketing utilityc. Market qualityd. Satisfaction percentagee. Customer value
ANS: E PTS: 1 REF:6 OBJ:01-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer
61.Marketers interested in offering customer value can:
SECTION 1 POOL ITEMS
a. offer products that performb. give the consumer factsc. offer organization-wide
commitment to service and after-the-sale support
d. avoid unrealistic pricinge. do all of these
ANS: E PTS: 1 REF:6-7 OBJ:01-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Pricing| TB&E Model Product| TB&E Model Customer
64. When customer expectations regarding product quality, service quality, and value-based price are met or exceeded, _____ is created.
SECTION 1 POOL ITEMS
a. a value lineb. a quality riftc. planning excellenced. customer satisfactione. expectation satisfaction
ANS: D PTS: 1 REF:7 OBJ:01-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Pricing| TB&E Model Product| TB&E Model Customer
66._____ is a strategy that entails forging long-term partnerships with customers.a. Commitment selling
SECTION 1 POOL ITEMS
b.
Relationship marketing
c. Transactional marketingd.
Market engineering
e. Organization-customer synergy
ANS: B PTS: 1 REF:8 OBJ:01-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer
SECTION 1 POOL ITEMS
71.Which of the following measures would be the best indicator of whether your organization's personnel have a customer orientation?a. Ask each employee's boss if
that person is customer-oriented.
b.
Assess each employee's impact on the profitability of the firm.
c. Survey customers on how oriented the organization's personnel are to customer needs and desires.
d.
Assess how well each employee has contributed to the marketing success of the firm by examining every financial statement created
SECTION 1 POOL ITEMS
by the organization.e. Test employees on their
knowledge of customer service techniques.
ANS: CThe key to assessing how customer-oriented a firm's personnel are is to ask the customer. Only the customer can provide this type of information.
PTS:1 REF: 8 OBJ: 01-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer
SECTION 1 POOL ITEMS
73.Some market-oriented firms give employees expanded authority to solve customer problems on the spot. This is known as:a. trainingb.
deregulation
c. empowermentd.
commissioning
e. mediating
ANS: C PTS: 1 REF:9 OBJ:01-3 TYPE: DefTOP: AACSB Communication| TB&E Model Customer
SECTION 1 POOL ITEMS
76._____ is the collaborative efforts of people to achieve common objectives.a. Effort trainingb.
Teamwork
c. Empowermentd.
OJT training
e. Mediation
ANS: B PTS: 1 REF:9 OBJ:01-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
77.Dofasco, Inc. is a Canadian steel manufacturer. According to its CEO, "People can make a phenomenal difference if you stop telling them to come to work, put their brains in a box, and do whatever the supervisor says. We let our employees work in teams." This quote implies that by using teamwork, Dofasco:a. operates successfully using a
production orientationb.
provides its customer with a high level of satisfaction
c. has a high employee turnover rate
d.
does not deliver superior customer service
e. has a sales orientation
SECTION 1 POOL ITEMS
ANS: BTeamwork is one way a company with a market orientation creates customer satisfaction.
PTS:1 REF: 9 OBJ: 01-3 TYPE: AppTOP: AACSB Analytic| TB&E Model Customer
78.Dofasco, Inc. is a Canadian steel manufacturer. According to its CEO, "People can make a phenomenal difference if you stop telling them to come to work, put their brains in a box, and do whatever the supervisor says. We let our employees work in teams." Teamwork would benefit Dofasco by:
SECTION 1 POOL ITEMS
a. enhancing employee performance
b.
doing away with the need for empowerment
c. creating managerial entropyd.
refining the definition of customer value
e. doing all of these
ANS: AEnhanced employee performance leads to improved customer satisfaction.
PTS:1 REF: 9 OBJ: 01-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
79.Redefining the business mission of a mattress manufacturer as "a good night's sleep," rather than stating the mission as "the manufacture of high-quality mattresses," will:a. not stimulate an awareness
of changes in consumer desires
b.
be too broad a statement to be of any real use in serving customers
c. stifle creativity in discovering opportunities to serve customers
d.
help ensure the firm retains its focus on consumers and does not become preoccupied with its products and internal needs
SECTION 1 POOL ITEMS
e. ensure the core products will be retained
ANS: DThe broader business mission of "a good night sleep" will stimulate innovation and creativity because not all sleep aids are mattresses. It will lead the company to further growth.
PTS:1 REF: 9 OBJ: 01-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Customer
SECTION 1 POOL ITEMS
80.One of the reasons given for the decline of the passenger rail industry in the United States is that the industry defined its mission as trains and not as transportation sources. The railroad industry failed to:a. define its mission in terms of
the benefits its customers seek
b.
ignore the marketing concept of serving customer needs and wants
c. realize "customers only want what they know"
d.
have a sales orientation
e. empower the consumer
SECTION 1 POOL ITEMS
ANS: AA market-oriented firm defines its business in terms of the benefits its customers seek. Because of the limited way the railroad industry defined its business, it missed an opportunity to define itself in terms of the benefits customers were seeking.
PTS:1 REF: 9-10 OBJ: 01-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Customer
SECTION 1 POOL ITEMS
81.When light bulbs were first introduced, manufacturers offered one size for all light fixtures. Today you can buy light bulbs in different shapes, different wattages, and different colors. They also differ as to how much electricity they use and how many hours of illumination they will provide before failing. Light bulb manufacturers:a. miss sales by not
concentrating on the average customer
b.
recognize different customer groups have different needs and wants
c. are sales-oriented companiesd.
are companies that would state they are in the business
SECTION 1 POOL ITEMS
of selling bulbse. are aiming at a goal of profit
through maximum sales volume
ANS: BOne way to implement the marketing concept is to concentrate on the needs of specific groups of customers.
PTS:1 REF: 5-6 OBJ: 01-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Product
SECTION 1 POOL ITEMS
82.One way to identify the orientation of a firm is to examine its primary goal. If a firm seeks to achieve profitability through sales volume, it would probably be:a. promotion-orientedb.
price-oriented
c. sales-orientedd.
production-oriented
e. retail-oriented
ANS: C PTS: 1 REF:5 | 11 OBJ:01-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
87._____ is the primary tool used by a sales-oriented organization to achieve its corporate goals.a. Priceb.
Promotion
c. Product designd.
Place (distribution)
e. Production
ANS: BA sales-oriented organization seeks to generate sales volume based upon intensive promotional activities.
SECTION 1 POOL ITEMS
PTS:1 REF: 10 OBJ: 01-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Promotion
88.For a market-oriented organization, the primary tool used to achieve its goals is:a. a blend of product, place,
promotion, and pricing decisions
b.
price
c. product designd.
place (distribution)
e. promotion
SECTION 1 POOL ITEMS
ANS: AA market-oriented organization seeks to generate sales volume based on serving customer needs and wants, utilizing all of the elements of the marketing mix to do so.
PTS:1 REF: 10 OBJ: 01-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Distribution| TB&E Model Pricing| TB&E Model Product| TB&E Model Promotion
94.What is the fundamental objective of most businesses?a. employee empowerment,
SECTION 1 POOL ITEMS
teamwork, and relationship marketing
b.
satisfied stakeholders
c. low costs and high qualityd.
customer loyalty and retention
e. survival, profits, and growth
ANS: EThe use of marketing allows businesses to achieve this objective.
PTS:1 REF: 11 OBJ: 01-4 TYPE: CompTOP: AACSB Analytic| TB&E Model Strategy
SECTION 1 POOL ITEMS
95.Which if the following is NOT a good reason to study marketing?a. Marketing teaches
businesses how to sell products that people do not need.
b.
Marketing plays an important role in society, coordinating the huge numbers of transactions needed to provide goods and services.
c. Marketing is a key function in business.
d.
Marketing offers outstanding career opportunities.
e. Marketing affects your day-to-day life as a consumer.
SECTION 1 POOL ITEMS
ANS: AThat marketing enables companies to sell even bad and worthless goods is a myth.
PTS:1 REF: 11-12 OBJ:01-4 TYPE: CompTOP: AACSB Analytic| TB&E Model Strategy
96.Which of the following statements contains one good reason for studying marketing?a. Marketing teaches
businesses how to sell products that people do not need.
SECTION 1 POOL ITEMS
b.
Marketing deals with transactions--not relationships.
c. Marketing has little impact on your day-to-day life.
d.
Marketing offers outstanding career opportunities.
e. The study of marketing helps you to better understand why the job market is shrinking.
ANS: D
SECTION 1 POOL ITEMS
Marketing plays an important role in society, coordinating the huge numbers of transactions needed to provide goods and services. Marketing affects your day-to-day life as a consumer.
PTS:1 REF: 11-12 OBJ:01-4 TYPE: CompTOP: AACSB Analytic| TB&E Model Strategy
SECTION 1 POOL ITEMS
Chapter 3 MULTIPLE CHOICE
1. _____ is the concern of business for the long-range welfare of both the company and its relationships to the society within which it operates.a. Consumerismb.
Corporate social responsibility
c. Cultural sensitivityd.
Conventional morality
e. Environmental consideration
ANS: B PTS: 1 REF:29 OBJ:03-1 TYPE: Def
SECTION 1 POOL ITEMS
TOP: AACSB Ethics| TB&E Model Strategy
3. Corporate social responsibility is defined as the:a. belief that the legal system
defines ethical behaviorb.
development of inclusive codes of ethics
c. rules by which social rewards are attained
d.
concern for social welfare by businesses
e. coordination of social programs for publicity purposes
SECTION 1 POOL ITEMS
ANS: D PTS: 1 REF:29 OBJ:03-1 TYPE: DefTOP: AACSB Ethics| TB&E Model Strategy
4. Corporate social responsibility:a. is mandated by federal lawb.
requires companies to sacrifice economic performance for the sake of their stakeholders
c. does not influence competition
d.
may not always result in profit and growth
e. is unaffected by environmental changes
SECTION 1 POOL ITEMS
ANS: D PTS: 1 REF:29 OBJ:03-1 TYPE: CompTOP: AACSB Ethics| TB&E Model Strategy
7. _____ is the idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profit and help the world at the same time.a. Sustainabilityb.
Philanthropy
c. Cause marketingd.
Creative ethics
SECTION 1 POOL ITEMS
e. International ethics
ANS: A PTS: 1 REF:29 OBJ:03-1 TYPE: DefTOP: AACSB Ethics| TB&E Model Strategy
TOP: AACSB Ethics| TB&E Model Strategy
9. The pyramid of corporate social responsibilities contains all of the following components EXCEPT:a. economic responsibilitiesb.
ethical responsibilities
c. cultural responsibilitiesd legal responsibilities
SECTION 1 POOL ITEMS
.e. philanthropic
responsibilities
ANS: CSee Review Learning Outcome 1.
PTS:1 REF: 29-30 OBJ:03-1 TYPE: DefTOP: AACSB Ethics| TB&E Model Strategy
15.The four components of the pyramid of corporate social responsibility are:a. sustainability, creativity,
profit, and culture
SECTION 1 POOL ITEMS
b.
organizational culture, creativity imagery, economic performance, and objectivity
c. organizational, financial, social, and cultural responsibilities
d.
sustainability, legality, creativity, and competition
e. economic, legal, ethical, and philanthropic responsibilities
ANS: E PTS: 1 REF:29-30OBJ:03-1 TYPE: DefTOP: AACSB Ethics| TB&E Model Strategy
SECTION 1 POOL ITEMS
16.Which of the following statements describes ethics?a. Ethics are the moral
principles or values that generally govern the conduct of an individual.
b.
Ethics is the standard of behavior by which conduct is judged.
c. Morals are a foundation for ethical behavior.
d.
Ethical values are situation specific and time oriented.
e. All of the statements describe ethics.
ANS: E PTS: 1 REF:30 OBJ:03-2 TYPE: Comp
SECTION 1 POOL ITEMS
TOP: AACSB Ethics| TB&E Model Strategy
17.Which of the following sayings best describes how people with conventional morality act?a. Don't put all of your eggs in
one basket.b.
When in Rome, do as the Romans do.
c. Be wary of strangers bearing gifts.
d.
A rolling stone gathers no moss.
e. Don't count your chickens before they hatch.
ANS: B PTS: 1 REF:31 OBJ:
SECTION 1 POOL ITEMS
03-2 TYPE: CompTOP: AACSB Ethics| TB&E Model Strategy
20.The use of ethical decision making:a. can be influenced by top
managersb.
is influenced by the probability of harmful outcomes
c. depends on the number of people to be affected
d.
depends on the magnitude of possible consequences
e. is accurately described by all of the choices
SECTION 1 POOL ITEMS
ANS: E PTS: 1 REF:31 OBJ:03-2 TYPE: CompTOP: AACSB Ethics| TB&E Model Strategy
22.Which of the following factors does NOT tend to influence ethical decision making and judgments?a. probability of a harmful
outcomeb.
length of time between decision and the onset of consequences
c. level of multiculturalismd.
number of people to be affected
e. potential magnitude of the consequences
SECTION 1 POOL ITEMS
ANS: C PTS: 1 REF:31 OBJ:03-2 TYPE: CompTOP: AACSB Ethics| AACSB Diversity| TB&E Model Strategy
24.A human resources manager is creating a code of ethics for the employees of the retirement home she works for. Which of the following is NOT an ethics principle she should keep in mind as she creates this code?a. The principles should not
upset current retirement home workers and future job applicants.
b Any decisions should be fair
SECTION 1 POOL ITEMS
. to all concerned: retirement home nurses, cleaning personnel, and administrative staff.
c. Input on the code should be gained from other knowledgeable individuals or groups.
d.
Principles can deviate from common practices because of the prestigious nature of the facility.
e. She should not have to pull rank or use coercion to implement her ethics code.
ANS: D
SECTION 1 POOL ITEMS
An unethical code would presume that the company is an exception to a common practice in the industry.
PTS:1 REF: 31-32 OBJ:03-2 TYPE: CompTOP: AACSB Ethics| TB&E Model Strategy
25.A(n) _____ is a defined group that managers feel is most likely to buy a firm's product.a. target marketb.
buying center
c. aggregated unitd.
consumer cluster
e. demographic sample
SECTION 1 POOL ITEMS
ANS: A PTS: 1 REF:32 OBJ:03-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer
27.Which of the following statements best describes the typical target market?a. A target market will remain
stable over time, with the same group of consumers.
b.
Target markets change over time as consumers drop in or out of the market, and as tastes change.
c. Target markets are not
SECTION 1 POOL ITEMS
strongly affected by changes in the external environment.
d.
Target markets only change when the features and benefits of the product offering change.
e. Target markets cannot be specifically defined according to age, income, or location because these factors are continually changing.
ANS: BTarget markets are defined and described, but they are always changing in response to environmental changes.
SECTION 1 POOL ITEMS
PTS:1 REF: 32 OBJ: 03-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer
29.The external environment:a. can be controlled in much
the same manner as the internal marketing mix
b.
cannot be influenced by marketing managers
c. does not change over timed.
does not have an impact on Fortune 500 companies
e. must be continually monitored by marketing managers
SECTION 1 POOL ITEMS
ANS: E PTS: 1 REF:32 OBJ:03-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy
30.The external environment is a strong influence on a target market and can be a source of _____ for the marketing manager.a. opportunities and threatsb.
threats and strengths
c. environmental loopholesd.
opportunities and weaknesses
e. product myopia
SECTION 1 POOL ITEMS
ANS: AThe external environment can provide opportunities to serve new and changing needs, as well as warnings about changes that could threaten the current position of the firm. Students will need to remember what a SWOT analysis is to answer this question.
PTS:1 REF: 32 OBJ: 03-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer
31.Marketing managers cannot control _____, but they can at times influence it.a. where advertising is placed
SECTION 1 POOL ITEMS
b.
the external environment
c. the sales forced.
the distribution strategy
e. how products are priced
ANS: BThe external environment is basically uncontrollable, but the other four answers are part of the marketing mix.
PTS:1 REF: 32-33 OBJ:03-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
33.What is apparently the most difficult external variable for marketing managers to forecast, influence, or integrate into marketing plans?a. technologyb.
social factors
c. demographyd.
competition
e. economic conditions
ANS: B
SECTION 1 POOL ITEMS
Social factors and changes are difficult to foresee, because they are usually slow and/or small changes. Also, it is very difficult for one company to affect social factors in any appreciable manner.
PTS:1 REF: 33 OBJ: 03-4 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Marketing Plan
35.When a company engages in _____, it is implementing strategies that attempt to shape the external environment in which it operates.a. synergistic controlb environmental management
SECTION 1 POOL ITEMS
.c. transactional managementd.
market control
e. reactive management
ANS: B PTS: 1 REF:33 OBJ:03-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy
38._____ factors are the environmental factors concerned with the changes in people's values, lifestyles, and family roles.a. Social
SECTION 1 POOL ITEMS
b.
Economic
c. Politicald.
Competitive
e. Demographic
ANS: A PTS: 1 REF:33 OBJ:03-4 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer
43. Consumer preference for low-carb diets has greatly modified the way food is being marketed. This concern with health issues is an example of a(n) _____ factor.
SECTION 1 POOL ITEMS
a. economicb.
political and legal
c. technologicald.
demographic
e. social
ANS: E PTS: 1 REF:33 OBJ:03-4 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Product| TB&E Model Customer
45.What do self-sufficiency, upward mobility, and conformity have in common?
SECTION 1 POOL ITEMS
a. These are no longer valued attitudes.
b.
They are attitudes that can easily be changed.
c. These are three perceptions that Americans have of the Asian lifestyle.
d.
These are three of the core values that have influenced lifestyles in the United States.
e. They are the determinants of a component lifestyle.
ANS: DThe fourth value is work ethic.
PTS:1 REF: 33 OBJ: 03-4
SECTION 1 POOL ITEMS
TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer
48.A(n) _____ is the practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle.a. aggregated lifestyleb.
component lifestyle
c. psychographic mode of living
d.
demographically defined lifestyle
e. targeted lifestyle
SECTION 1 POOL ITEMS
ANS: B PTS: 1 REF:33-34OBJ:03-4 TYPE: DefTOP: AACSB Diversity| TB&E Model Product
55.The growth of dual-income families has resulted in:a. burnoutb.
a sense of entitlement
c. decreased discretionary income
d.
decreased GNP
e. increased purchasing power
SECTION 1 POOL ITEMS
ANS: E PTS: 1 REF:34 OBJ:03-4 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer
56.Which of the following events has had a greater effect on marketing than any other social change?a. the growing number of one-
child familiesb.
the increasing number of immigrants from Northern Europe
c. the growing number of people on the Internet
d.
the increasing number of working women
e. the growing number of people of retirement age
SECTION 1 POOL ITEMS
who are continuing work
ANS: D PTS: 1 REF:34 OBJ:03-4 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer
58.The study of people's vital statistics, such as their ages, births, deaths, and locations, is called:a. cultural sociologyb.
psychometrics
c. ecologyd.
ethnography
e. demography
SECTION 1 POOL ITEMS
ANS: E PTS: 1 REF:34-35OBJ:03-5 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer
59.Which of the following is NOT a demographic characteristic of a population?a. income levelb.
age
c. valuesd.
education
e. birthrate
SECTION 1 POOL ITEMS
ANS: CValues are a social factor.
PTS:1 REF: 34-35 OBJ:03-5 TYPE: CompTOP: AACSB Diversity| TB&E Model Customer
69. A multicultural society is characterized by:a. a population of recent
immigrants that are closely related by custom and tradition
b.
a conglomeration of small and large ethnic groups that have little in common
SECTION 1 POOL ITEMS
c. even distribution of all ethnic groups in a geographic region
d.
effective mass-marketing techniques
e. one large dominating racial or ethnic group in a geographic area
ANS: C PTS: 1 REF:39 OBJ:03-6 TYPE: DefTOP: AACSB Diversity| TB&E Model Distribution| TB&E Model Customer
SECTION 1 POOL ITEMS
71.A furniture retailer that specializes in selling entire rooms of furniture has hired you to identify 25 geographic target markets that can be described as multicultural societies. What types of locations should you offer this firm?a. cities that have historically
had low immigration ratesb.
traditional test markets
c. regions that are dominated by one ethnic group and that have multiple smaller ethnic groups
d.
unindustrialized areas
e. locations in which all major ethnic groups in the area are equally represented
SECTION 1 POOL ITEMS
ANS: EMulticultural societies are not defined by geography, history, or products produced, but by the racial and ethnic composition of the population.
PTS:1 REF: 39 OBJ: 03-6 TYPE: AppTOP: AACSB Diversity| TB&E Model Customer
74.The higher your _____, the higher your purchasing power:a. gross incomeb social class
SECTION 1 POOL ITEMS
.c. disposable incomed.
cost of living
e. inflation index
ANS: CPurchasing power is measured by comparing income to the relative cost of a set standard of goods an services. It is a aligned with net income, or income minus a standard set of expenses. Assuming a constant income, the higher the cost of living (the expenses), the lower the purchasing power.
PTS:1 REF: 39-40 OBJ:03-7
SECTION 1 POOL ITEMS
TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer
76.Factors, such as interest rates, inflation, and consumer income that influence the marketing environment, are called _____ factors.a. economicb.
socio-demographic
c. politicald.
government
e. consumption
ANS: A PTS: 1 REF:39 OBJ:03-7 TYPE: Def
SECTION 1 POOL ITEMS
TOP: AACSB Reflective Thinking| TB&E Model Customer
77._____ is measured by comparing the relative cost of a standard of goods and services in different geographic areas.a. Gross individual profitb.
Purchasing power
c. Net profitd.
Relative pricing
e. Price escalation
ANS: B PTS: 1 REF:39-40OBJ:03-7 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer
SECTION 1 POOL ITEMS
78.When income is high relative to the cost of living, consumers _____.a. have more discretionary
incomeb.
begin anticipating a period of price deceleration
c. stop buying luxury goods and services
d.
have significantly less disposable income
e. anticipate price escalation by stockpiling
ANS: A PTS: 1 REF:39-40OBJ:03-7 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer
SECTION 1 POOL ITEMS
79._____ is the primary determinant of a person's earnings.a. Multiculturalismb.
Lifestyle
c. Educationd.
The aging of the baby boomers
e. Global competition
ANS: C PTS: 1 REF:39 OBJ:03-7 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer
SECTION 1 POOL ITEMS
80.____ is measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year.a. Inflationb.
Recession
c. Depressiond.
Consumer break-even
e. Price escalation
ANS: A PTS: 1 REF:40 OBJ:03-7 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Pricing
SECTION 1 POOL ITEMS
81.When planning marketing strategies during times of inflation, marketers must be aware inflation causes consumers to:a. purchase more goods and
services to support their psychological selves, such as counseling and stress management training
b.
consume more meals away from home
c. buy in small quantities until inflation is over
d.
decrease their brand loyalty to products they have traditionally used
e. put more money into savings accounts because prices are too high
SECTION 1 POOL ITEMS
ANS: DIn times of inflation, consumers are more price conscious and less brand-loyal.
PTS:1 REF: 40 OBJ: 03-7 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Pricing
82.A period of economic activity when income, production, and employment tend to fall, reducing overall demand, is called:a. stagnationb.
an inflation
SECTION 1 POOL ITEMS
c. a recessiond.
price escalation
e. a depression
ANS: C PTS: 1 REF:40 OBJ:03-7 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Pricing
85.Which of the following strategies is appropriate for a marketer to use during a time of economic recession?a. Promote product value.b.
Maintain and improve customer services.
c. Emphasize top-of-the-line
SECTION 1 POOL ITEMS
products in promotions.d.
Offer products that are economical and efficient.
e. Do all of these.
ANS: E PTS: 1 REF:40-41OBJ:03-7 TYPE: CompTOP: AACSB Technology| TB&E Model Pricing
86.Which of the following is sometimes an effective weapon for fighting inflation and recession?a. technologyb.
line extensions
c. increased capital gains taxesd introducing product-line
SECTION 1 POOL ITEMS
. extensionse. reducing R&D expenditures
ANS: A PTS: 1 REF:40-41OBJ:03-8 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Research
87.Research that attempts to expand the frontiers of knowledge rather than solving a specific, pragmatic problem is called:a. technical diversityb.
reactive research
c. applied researchd.
experiential research
SECTION 1 POOL ITEMS
e. basic research
ANS: E PTS: 1 REF:41 OBJ:03-8 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Research
100. Laws and regulations of various governments and their ongoing development and change are an example of _____ factors and are part of all organizations' external environment.a. economic investmentb.
political and legal
c. research and development
SECTION 1 POOL ITEMS
d.
competitive
e. demographic
ANS: B PTS: 1 REF:42 OBJ:03-9 TYPE: DefTOP: AACSB Technology| TB&E Model Strategy
101. The _____ Act strengthened the Clayton Act to prevent corporate acquisitions that reduce competition.a. Hart-Scott-Rodinob.
Lanham-Scott
c. Celler-Kefauver Antimergerd.
Robinson-Patman
SECTION 1 POOL ITEMS
e. Sherman
ANS: CSee Exhibit 3.2. The Celler-Kefauver Act bolstered the Clayton Act's provision dealing with interlocking directorates and closed another loophole that had allowed corporate takeovers.
PTS:1 REF: 42 OBJ: 03-9 TYPE: DefTOP: AACSB Analytic| TB&E Model Strategy
SECTION 1 POOL ITEMS
102. The _____ Act requires large companies to notify the government of their intent to merge.a. Hart-Scott-Rodinob.
Sherman
c. Celler-Kefauver Antimergerd.
Robinson-Patman
e. Lanham
ANS: ASee Exhibit 3.2.
PTS:1 REF: 42 OBJ: 03-9 TYPE: DefTOP: AACSB Analytic| TB&E Model Strategy
SECTION 1 POOL ITEMS
103. The Gramm-Leach-Bliley Act and the Health Insurance Portability and Accountability Act are both important laws designed to:a. protect the channels of
commerceb.
restrict alcohol and tobacco advertising
c. eliminate certain products from being advertised on children’s television programs
d.
protect consumers from identity theft
e. penalize marketers selling merchandise with counterfeit brand names
SECTION 1 POOL ITEMS
ANS: D PTS: 1 REF:42 OBJ:03-9 TYPE: DefTOP: AACSB Analytic| TB&E Model Strategy
SECTION 1 POOL ITEMS
Chapter 2
3. Strategic plans require:a. long-term resource
commitmentsb.
a change in organizational structure
c. the addition of new personnel
d.
new product development
e. changes in prices
ANS: AStrategic plans are long-range plans that involve developing, organizing, and controlling marketing activities.
SECTION 1 POOL ITEMS
PTS:1 REF: 15 OBJ: 02-1 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy
4. _____ is the managerial process of creating and maintaining a fit between the organization's objectives and resources and evolving market opportunities.a. Tactical managementb.
The market audit
c. Functional planningd.
Environmental scanning
e. Strategic planning
SECTION 1 POOL ITEMS
ANS: E PTS: 1 REF:15 OBJ:02-1 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy
7. Which of the following statements about a marketing plan is true?a. Marketing plans can exist as
oral traditions.b.
The marketing plan should be viewed as a series of sequential steps.
c. All marketing plans have basically the same content.
d.
A marketing plan is created so an organization can meet its marketing objectives.
SECTION 1 POOL ITEMS
e. All of the statements about a marketing plan are true.
ANS: DBy definition, marketing plans are written. Several steps of the marketing plan can be done at the same time. The content of marketing plans varies.
PTS:1 REF: 15 OBJ: 02-1 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Marketing Plan
8. _____ is the process of anticipating events and determining strategies to achieve organizational objectives.a. Planning
SECTION 1 POOL ITEMS
b.
Portfolio evaluation
c. Forecastingd.
Implementation
e. Evaluation
ANS: A PTS: 1 REF:15 OBJ:02-1 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Marketing Plan
10.Marketing plans should be written to do all of the following EXCEPT:a. compare actual and
expected performanceb provide clearly stated
SECTION 1 POOL ITEMS
. activitiesc. create common goals for
employees to work towardd.
allow managers to enter the marketplace with an awareness of possibilities and problems
e. control the elements of the external marketing environment
ANS: EMarketing environment variables cannot be controlled.
PTS:1 REF: 16 OBJ: 02-1 TYPE: CompTOP: AACSB Reflective Thinking|
SECTION 1 POOL ITEMS
TB&E Model Marketing Plan
11.Which of the following is one of the elements of the marketing plan?a. a business mission statementb.
a situation analysis
c. a target market strategyd.
the marketing mix
e. all of the choices
ANS: ESee Exhibit 2.1.
PTS:1 REF: 17 OBJ: 02-1 TYPE: DefTOP: AACSB Reflective Thinking|
SECTION 1 POOL ITEMS
TB&E Model Marketing Plan
13.The _____ answers the question, "What business are we in, and where are we going?"a. mission statementb.
financial statement
c. situation analysisd.
market strategy
e. strategic plan
ANS: A PTS: 1 REF:18 OBJ:02-2 TYPE: DefTOP: AACSB Analytic| TB&E Model Strategy
SECTION 1 POOL ITEMS
17.The focus of an organization's mission statement should be on:a. the products it wishes to sellb.
the market it wishes to serve
c. its social responsibilitiesd.
the desires of government regulators
e. technologies it understands well
ANS: BThe choice of the market to serve determines the product and technology decisions.
SECTION 1 POOL ITEMS
PTS:1 REF: 18 OBJ: 02-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy
20._____ occurs when a business is defined in terms of goods and services rather than by the benefits customers seek from it.a. A circle trapb.
A market barrier entry
c. A reactive focusd.
Unempowerment
e. Marketing myopia
SECTION 1 POOL ITEMS
ANS: E PTS: 1 REF:18 OBJ:02-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Product
21.A popular technique for managing a large organization with different technologies and markets is to divide it into:a. strategic business unitsb.
different technologies
c. strategic target marketsd.
design matrices
e. tactical segments
ANS: A PTS: 1 REF:18 OBJ:
SECTION 1 POOL ITEMS
02-2 TYPE: DefTOP: AACSB Analytic| TB&E Model Strategy
22.The acronym SBU refers to:a. stock in business unitsb.
strategic business unit
c. standard business utilizationd.
strategic barter units
e. samples by units
ANS: B PTS: 1 REF:18 OBJ:02-2 TYPE: DefTOP: AACSB Analytic| TB&E Model Strategy
SECTION 1 POOL ITEMS
25.An SBU:a. competes with the same
companies as the other SBUs in the parent organization
b.
shares the same mission with all the other SBUs in the parent organization
c. controls its business independent of other SBUs in the organization
d.
usually benefits from the combined corporate raw materials purchases
e. still has strategic planning performed back at corporate headquarters
SECTION 1 POOL ITEMS
ANS: CSBUs have separate business functions from one another and have their own mission statements, markets, and planning.
PTS:1 REF: 18 OBJ: 02-2 TYPE: DefTOP: AACSB Analytic| TB&E Model Strategy
SECTION 1 POOL ITEMS
27.After management agrees on a mission statement, it must set objectives. Which of the following is NOT a characteristic of a good objective?a. profitableb.
realistic
c. measurabled.
time-specific
e. consistent
ANS: AGood objectives are not necessarily stated in terms of profit.
PTS:1 REF: 18 OBJ: 02-3
SECTION 1 POOL ITEMS
TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Pricing
28. A _____ is defined as a statement of what is to be accomplished through marketing activities.a. mission statementb.
business plan
c. marketing objectived.
goal-driven directive
e. marketing criteria
ANS: C PTS: 1 REF:18 OBJ:
SECTION 1 POOL ITEMS
02-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy
30.When an organization creates a mission statement that is too narrow, _____ results.a. marketing synergyb.
marketing myopia
c. directional marketingd.
an internal threat
e. sustainable competitive advantage
SECTION 1 POOL ITEMS
ANS: BMarketing myopia defines a business in terms of goods and services rather than in terms of benefits customers seek. See Review Learning Outcome 2.
PTS:1 REF: 18 OBJ: 02-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Product
35.For marketing objectives to be realized, they must meet all of the following criteria EXCEPT:a. be consistent with
organization objectivesb be measurable
SECTION 1 POOL ITEMS
.c. be attainabled.
be challenging
e. be set within a one-year time frame
ANS: EThere is no one-year time frame restriction for marketing objectives although specifying a particular time frame makes an objective more clear and precise.
PTS:1 REF: 18 OBJ: 02-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
37.A _____ is a formal study conducted by an organization to ascertain its current status and capabilities and its future expectations.a. situation analysisb.
marketing audit
c. trend analysisd.
strategic alternative selection
e. competitive advantage audit
ANS: A PTS: 1 REF:19 OBJ:02-4 TYPE: DefTOP: AACSB Analytic| TB&E Model
SECTION 1 POOL ITEMS
Research
39.The SWOT acronym refers to a firm’s analysis of its:a. sales, width of product mix,
observations, and technology
b.
situations, wealth, organizational strengths, and target markets
c. strengths, weaknesses, opportunities, and threats
d.
service levels, willingness to spend, organizational culture, and total revenues
e. strategies, willingness to change, objectives, and
SECTION 1 POOL ITEMS
trends
ANS: C PTS: 1 REF:19 OBJ:02-4 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy
43._____ is defined as the collection and interpretation of information about forces, events, and relationships that may affect the organization.a. Market samplingb.
An internal audit
c. Opportunity analysisd Environmental scanning
SECTION 1 POOL ITEMS
.e. Stakeholder analysis
ANS: D PTS: 1 REF:19 OBJ:02-4 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Research
61._____ show costs declining at a predictable rate as experience with a product increases.a. Liquidity growth curvesb.
EOQ graphs
c. Breakeven analysesd.
Experience curves
SECTION 1 POOL ITEMS
e. Supply/demand curves
ANS: D PTS: 1 REF:20 OBJ:02-5 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Product| TB&E Model Pricing
62.Which of the following is NOT a source of a cost competitive advantage?a. reengineeringb.
experience curves
c. break-even analysesd.
efficient labor
e. production innovation
SECTION 1 POOL ITEMS
ANS: C PTS: 1 REF:20-21OBJ:02-5 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Pricing
67.Which of the following is a type of strategic alternative that matches products and markets?a. vertical integrationb.
product penetration
c. divestmentd.
horizontal integration
e. market penetration
SECTION 1 POOL ITEMS
ANS: E PTS: 1 REF:22 OBJ:02-6 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy
68._____ is a strategy of increasing market share for present products in existing markets.a. Market penetrationb.
Product development
c. Market developmentd.
Diversification
e. Product penetration
ANS: A PTS: 1 REF:22 OBJ:
SECTION 1 POOL ITEMS
02-6 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy
70._____ is a strategy that attracts new customers to existing products.a. Product developmentb.
Market development
c. Market penetrationd.
Product penetration
e. Diversification
ANS: B PTS: 1 REF:22 OBJ:02-6 TYPE: Def
SECTION 1 POOL ITEMS
TOP: AACSB Reflective Thinking| TB&E Model Strategy
75._____ is a strategy that creates new products for present markets.a. Product penetrationb.
Market penetration
c. Product developmentd.
Market development
e. Diversification
ANS: C PTS: 1 REF:22 OBJ:02-6 TYPE: DefTOP: AACSB Reflective Thinking|
SECTION 1 POOL ITEMS
TB&E Model Strategy
76._____ is the strategy of increasing sales by introducing new products into new markets.a. Product penetrationb.
Product development
c. Market penetrationd.
Market development
e. Diversification
ANS: E PTS: 1 REF:22 OBJ:02-6 TYPE: DefTOP: AACSB Diversity| TB&E Model Strategy| TB&E Model International Perspective
SECTION 1 POOL ITEMS
102. A(n) _____ describes and estimates the size and sales potential of market segments of interest to the firm and assesses key competitors in these market segments.a. marketing orientationb.
environmental scan
c. marketing mix auditd.
target market strategy
e. market opportunity analysis
ANS: E PTS: 1 REF:24 OBJ:02-7 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
105. The _____ is the unique blend of product, distribution, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market.a. internal environmental mixb.
marketing mix
c. product mixd.
product line
e. market portfolio
ANS: B PTS: 1 REF:25 OBJ:02-8 TYPE: Def
SECTION 1 POOL ITEMS
TOP: AACSB Reflective Thinking| TB&E Model Strategy
106. The starting point of any firm's marketing mix is the:a. analysis of what production
equipment is available and owned by the company
b.
design of the promotion campaign to be used for the product
c. selection of the places through which the good or service will be sold
d.
determination of the product's price, enabling future revenues and budgets to be estimated
e. development of the good or
SECTION 1 POOL ITEMS
service to be sold
ANS: EThe product is the starting point for any marketing mix. Without it, pricing, distribution, and promotion are irrelevant. The production capacity can be changed to fit the proposed product.
PTS:1 REF: 25 OBJ: 02-8 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
109. Making sure products are available when and where customers want them is the job of which element of the marketing mix?a. advertising strategiesb.
production strategies
c. product strategiesd.
promotion strategies
e. distribution strategies
ANS: EDistribution strategies make products available when and where customers want them.PTS:1 REF: 25-26 OBJ:02-8 TYPE: Def
SECTION 1 POOL ITEMS
TOP: AACSB Reflective Thinking| TB&E Model Distribution| TB&E Model Product
SECTION 1 POOL ITEMS
Chapter 4MULTIPLE CHOICE
1. Individuals and organizations utilizing a global vision to effectively market goods and services across national boundaries are engaged in:a. developing international
selling schemesb.
implementing standard international marketing
c. implementing global marketing standardization
d.
supplementing their foreign vision
e. practicing global marketing
SECTION 1 POOL ITEMS
ANS: E PTS: 1 REF:47 OBJ:04-1 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model International Perspective| TB&E Model Product
3. Which of the following statements about global marketing is true?a. Marketing to target markets
throughout the world has become an imperative for business.
b.
Often a U.S. firm's toughest domestic competition comes from foreign companies.
c. Marketing managers must develop a global vision not
SECTION 1 POOL ITEMS
only to recognize and react to international marketing opportunities but also to remain competitive at home.
d.
Adopting a global vision can be lucrative for a company, and global marketing can offset weak domestic performance.
e. All of these statements about global marketing are true.
ANS: E PTS: 1 REF:47 OBJ:04-1 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model International Perspective
SECTION 1 POOL ITEMS
6. Which of the following statements about multinational firms is true?a. Multinationals typically do
not change their methods of reaching their global markets if they are successful with their initial strategy.
b.
Multinationals are defined as companies heavily engaged in exporting and importing.
c. All multinationals must enter the fourth stage of globalization before they are fully internationalized.
d.
Multinationals often develop their global businesses in
SECTION 1 POOL ITEMS
stages.e. The five stages of
globalization closely mirror the five stages of the product life cycle.
ANS: DMultinationals can go through up to four stages in their quest to globalize their business. Generally, only high-tech firms ever reach the fourth stage. Multinationals are companies that heavily engage in international trade, beyond exporting and importing.
PTS:1 REF: 49-50 OBJ:04-2 TYPE: CompTOP: AACSB Reflective Thinking|
SECTION 1 POOL ITEMS
TB&E Model International Perspective
7. A(n) _____ is a company that is heavily engaged in global trade and moves its resources, goods, services, and skills across national boundaries.a. international facilitatorb.
global trader
c. multinational corporationd.
exporting company
e. international merchant
ANS: C PTS: 1 REF:49-50OBJ:04-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model International
SECTION 1 POOL ITEMS
Perspective| TB&E Model Distribution
10.Which of the following describes a common criticism of multinational companies?a. the transference of the
wrong kind of technology to a developing nation
b.
excessive employment information
c. countertradingd.
the transference of labor-intensive technology
e. dumping
ANS: A
SECTION 1 POOL ITEMS
Typically, the technology needed to run operations in developing nations is capital-intensive and thus does not substantially increase employment.
PTS:1 REF: 50 OBJ: 04-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model International Perspective
11.A company that is capital-intensive:a. has an altered fiscal strategy
for overseas operationsb.
spends more on equipment than on labor
c. makes better use of benchmarking than other types of business
d creates employment
SECTION 1 POOL ITEMS
. monopoliese. must engage in
countertrading due to restrictive foreign legislature
ANS: B PTS: 1 REF:50 OBJ:04-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model International Perspective
13.With a _____, a firm produces standardized products to be sold the same way all over the world.a. traditional marketing
strategyb.
global marketing standardization approach
SECTION 1 POOL ITEMS
c. product extension approachd.
culturally based marketing strategy
e. synergistic approach to marketing
ANS: B PTS: 1 REF:50 OBJ:04-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model International Perspective| TB&E Model Product
14.Global marketing standardization:a. is becoming less popular
with the large multinationals
b.
encourages product, packaging, and advertising
SECTION 1 POOL ITEMS
variations for each nation or local market
c. actually raises production costs
d.
presumes markets throughout the world are becoming more alike
e. is more popular with consumer products than with industrial goods
ANS: DWith a global marketing standardization approach, a firm produces standardized products to be sold the same way worldwide. This approach assumes all customers have the same needs and wants.
SECTION 1 POOL ITEMS
PTS:1 REF: 50 OBJ: 04-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model International Perspective
16.A business thinking of expanding into global markets needs to examine all of the following external environments EXCEPT:a. cultureb.
political structure and actions
c. its marketing mixd.
natural resources
e. demographic makeup
SECTION 1 POOL ITEMS
ANS: CThe marketing mix is the keystone of a company's internal environment.
PTS:1 REF: 50 OBJ: 04-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model International Perspective| TB&E Model Strategy
SECTION 1 POOL ITEMS
17. Central to any society is a common set of values shared by its citizens that determines what is socially acceptable. Marketers refer to these values collectively as a country's:a. ethical systemb.
culture
c. ethnocentricityd.
national personality
e. socialization
ANS: B PTS: 1 REF:50-51OBJ:04-3 TYPE: DefTOP: AACSB Diversity| TB&E Model Customer
SECTION 1 POOL ITEMS
24.Which of the following is an important cultural factor that should be considered by global marketers?a. competitive synergyb.
language
c. natural resourcesd.
technology sensitivity
e. level of economic development
ANS: B PTS: 1 REF:51 OBJ:04-3 TYPE: CompTOP: AACSB Diversity| TB&E Model Strategy
SECTION 1 POOL ITEMS
26.Which of the following statements about the political environment is true?a. A recession is part of the
political environment.b.
A country is either socialistic or capitalistic, but never both.
c. The countries with the least across-the-board regulations and political structures foster the strongest economies.
d.
The European Union is purely an economic arrangement and has no political impact on marketing.
e. All of these statements about
SECTION 1 POOL ITEMS
the political environment are true.
ANS: CRecession is an economic factor. Countries are a combination of socialism and capitalism. The European Union is a means for the member nations to pursue an economic, monetary, and political union.
PTS:1 REF: 51-52 OBJ:04-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
31.A tax levied on the goods entering a country is called a(n):a. licenseb.
quota
c. boycottd.
exchange control
e. tariff
ANS: E PTS: 1 REF:52 OBJ:04-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Pricing| TB&E Model Product
SECTION 1 POOL ITEMS
33.A(n) _____ is a limit on the amount of a specific product that can enter a country.a. quotab.
tariff
c. boycottd.
exchange control
e. transfer limit
ANS: A PTS: 1 REF:52 OBJ:04-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Product
SECTION 1 POOL ITEMS
36.An exclusion of all products from certain countries or companies by a government or group is called a(n):a. expropriationb.
quota
c. tariffd.
exchange control
e. boycott
ANS: E PTS: 1 REF:52 OBJ:04-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Product
SECTION 1 POOL ITEMS
39.A(n) _____ is a law that compels a company earning foreign currency from its exports to sell it to a central bank rather than sending the money out of the country.a. tariffb.
quota
c. fiscal prerequisited.
exchange control
e. transfer barrier
ANS: D PTS: 1 REF:52 OBJ:04-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Pricing
SECTION 1 POOL ITEMS
40._____ are trade alliances in which several countries agree to work together to form a common trade area that enhances trade opportunities among those countries.a. Boycottsb.
Regional unifications
c. Market groupingsd.
Free trade nations
e. Expropriation members
ANS: C PTS: 1 REF:52 OBJ:04-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
41.Negotiations (such as GATT or the Uruguay Round) between countries that are made to stimulate global exchange and remove barriers are called _____ agreements.a. tradeb.
joint venture
c. CRMd.
exchange
e. licensing
ANS: A PTS: 1 REF:52 OBJ:04-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
42._____ is a trade agreement that includes Argentina, Bolivia, Brazil, Chile, Columbia, Ecuador, Paraguay, Peru, and Uruguay. This agreement eliminated the tariffs among these trading partners.a. NAFTAb.
Maastricht
c. WTOd.
GATT
e. Mercosur
ANS: E PTS: 1 REF:52 OBJ:04-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
43.The latest round of World Trade Organization (WTO) talks has been contentious. A major goal of this _____ is to bolster the developing economies of Africa, Asia, and Latin America where up to two-thirds of the population works in agriculture.a. Mercosur covenantb.
CAFTA Alliance
c. Doha Roundd.
Uruguay Round
e. WTO Round
ANS: C PTS: 1 REF:52-53OBJ:04-3 TYPE: Def
SECTION 1 POOL ITEMS
TOP: AACSB Reflective Thinking| TB&E Model International Perspective
44.The _____ of trade negotiations created the _____, which replaces GATT. This trade agreement dramatically lowers trade barriers worldwide.a. Uruguay Round; World
Trade Organizationb.
Doha Round; European Union
c. Doha Round; NAFTAd.
Paraguay Round; South American Free Trade Agreement
e. Mercosur; European Union
SECTION 1 POOL ITEMS
ANS: AThe Uruguay Round created the WTO.
PTS:1 REF: 53 OBJ: 04-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy
45.The _____ is the most ambitious global trade agreement ever negotiated; the agreement has reduced tariffs by one-third worldwide.a. Uruguay Roundb.
Mercosur
c. GATTd.
NAFTA
e. Maastricht Treaty
SECTION 1 POOL ITEMS
ANS: A PTS: 1 REF:52-53OBJ:04-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy
46.The North American Free Trade Agreement (NAFTA) did NOT:a. create the world's largest
free-trade zone including Canada, the United States, and Mexico
b.
substantially reduce economic growth in Mexico
c. allow U.S. and Canadian financial-services companies to own subsidiaries in Mexico
SECTION 1 POOL ITEMS
d.
remove many tariffs and duties so that Mexico, Canada, and the United States can trade more freely
e. expand opportunities for U.S. businesses in Mexico
ANS: BOver the years, Mexico has made economic gains due to NAFTA.
PTS:1 REF: 53 OBJ: 04-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Distribution
SECTION 1 POOL ITEMS
48.The goal of the Central America Free Trade Agreement (CAFTA) is to:a. create free-trade agreements
between the United States and other industrialized nations
b.
eliminate all protectionism
c. raise prosperity levels in all industrializing nations
d.
establish a free trade agreement between the United States and certain Latin American countries
e. make sure all nations achieve the economic and technological development of a takeover economy or better
SECTION 1 POOL ITEMS
ANS: D PTS: 1 REF:53 OBJ:04-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
49.Which of the following statements about the European Union (EU) is true?a. The EU creates a single
Europroduct for a generic Euroconsumer.
b.
The EU removes all internal trade barriers and standardizes regulations in European countries for easier trade.
c. The EU can correctly be called the "United States of Europe" because all European voters have agreed to these changes.
d.
The existence of the EU eliminates protectionist
SECTION 1 POOL ITEMS
movements by United Europe against the Japanese and the United States.
e. None of these statements about the EU is true.
ANS: EBecause of diverse languages and cultures, no "United States of Europe" or a generic Euroconsumer results from United Europe. There exists the possibility of a protectionist movement and increased competition. It does not eliminate all trade barriers.
PTS:1 REF: 54 OBJ: 04-3 TYPE: CompTOP: AACSB Reflective Thinking|
SECTION 1 POOL ITEMS
TB&E Model Strategy
51.A multinational company that makes a labor-intensive product would be interested in the _____ makeup of countries. Factors such as median age, gender, and literacy rates would determine the success of its global expansion.a. demographicb.
lifestyle
c. naturald.
cultural
e. economic
ANS: A
SECTION 1 POOL ITEMS
Demographics include age and educational levels as well as ethnicity and gender.
PTS:1 REF: 54-55 OBJ:04-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model International Perspective
SECTION 1 POOL ITEMS
54.Vast differences in natural resources create all of the following EXCEPT:a. potential for military
interventionb.
shifts in wealth between nations
c. inflation and recessiond.
global dependencies
e. export opportunities for countries with no natural resources
ANS: E
SECTION 1 POOL ITEMS
While differences do create shifts in wealth, dependencies, inflation, recession, and the potential for conflict, they only hinder opportunities for the countries that do not have resources.
PTS:1 REF: 55 OBJ: 04-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy
55.Which method of entering the global marketplace would be LEAST risky?a. exportingb.
licensing
c. contract manufacturingd joint ventures
SECTION 1 POOL ITEMS
.e. direct investment
ANS: ASee Exhibit 4.1.
PTS:1 REF: 55-56 OBJ:04-4 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy
63.A(n) _____ is a global intermediary that operates primarily in agriculture and raw materials by bringing the buyer and seller together.a. buyer for exportb export agent
SECTION 1 POOL ITEMS
.c. license agentd.
import agent
e. export broker
ANS: E PTS: 1 REF:55 OBJ:04-4 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy
64.A cooperative of egg producers believes a profitable market for eggs exists overseas where people are not as concerned about cholesterol. If the cooperative decides to export, it will most likely use a(n):a. commission merchant
SECTION 1 POOL ITEMS
b.
drop shipper
c. export brokerd.
import agent
e. export agent
ANS: CExport brokers typically handle agriculture and raw materials.
PTS:1 REF: 56 OBJ: 04-4 TYPE: AppTOP: AACSB Analytic| TB&E Model Product
SECTION 1 POOL ITEMS
65._____ are foreign sales agents-distributors who live in a foreign country and represent a domestic company in sales situations. They perform the same functions as domestic manufacturers' agents who help with financing and shipping.a. Export agentsb.
Export brokers
c. Import brokerd.
Buyers for export
e. Licensing agents
ANS: A PTS: 1 REF:56 OBJ:04-4 TYPE: DefTOP: AACSB Reflective Thinking|
SECTION 1 POOL ITEMS
TB&E Model Strategy
66.The _____ is an intermediary in the global market who assumes all risks and sells globally for its own account. The domestic manufacturer usually treats it like a domestic customer.a. buyer for exportb.
export agent
c. joint venturerd.
contract manufacturer
e. market group
ANS: A PTS: 1 REF:55 OBJ:04-4 TYPE: DefTOP: AACSB Reflective Thinking|
SECTION 1 POOL ITEMS
TB&E Model Customer
SECTION 1 POOL ITEMS
Chapter 8MULTIPLE CHOICE
1. A(n) _____ is an interactive, flexible information system that enables managers to obtain and manipulate information as they are making decisions.a. expert systemb.
marketing information system
c. artificial intelligence systemd.
marketing decision support system
e. database marketing system
ANS: D PTS: 1 REF:113 OBJ:08-1 TYPE: Def
SECTION 1 POOL ITEMS
TOP: AACSB Technology| TB&E Model Strategy
2. _____ is the creation of a large computerized file of customers' and potential customers' names, profiles, and purchase patterns.a. Electronic targetingb.
Sampling procedure specification
c. Database marketingd.
Competitive data mining
e. Consumer behavior marketing
ANS: C PTS: 1 REF:113 OBJ:08-1 TYPE: Def
SECTION 1 POOL ITEMS
TOP: AACSB Technology| TB&E Model Strategy
3. A true marketing decision support systems (DSS) should be:a. flexibleb.
discovery-oriented
c. interactived.
accessible
e. All of the choices describe true marketing decision support systems.
ANS: E PTS: 1 REF:113 OBJ:08-1 TYPE: CompTOP: AACSB Technology| TB&E
SECTION 1 POOL ITEMS
Model Strategy
4. According to the text, a true marketing decision support system should be:a. reactiveb.
customer-oriented
c. interactived.
rigorous
e. descriptive
ANS: CA true DSS should be flexible, interactive, discovery-oriented, and accessible.
SECTION 1 POOL ITEMS
PTS:1 REF: 113 OBJ: 08-1 TYPE: DefTOP: AACSB Technology| TB&E Model Strategy
5. To help understand why attendance at the team’s games was so poor, the Atlanta Falcons used marketing research to gather factual information. The organization used in-game surveys and end-of-season surveys of ticket holders. The gathering of factual statements is an example of marketing research in its _____ role.a. historicalb.
descriptive
c. predictived normative
SECTION 1 POOL ITEMS
.e. objective
ANS: BThe data were gathered and presented as factual statements.
PTS:1 REF: 114 OBJ: 08-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
6. Through marketing research, the Boston Symphony Orchestra (BSO) learned it has an older market and is not attracting younger concertgoers. It next conducted marketing research to determine if an integrated advertising campaign targeted to the younger market would be successful. In its second use of research, BSO employed _____ marketing research.a. historicalb.
descriptive
c. predictived.
normative
e. objective
SECTION 1 POOL ITEMS
ANS: CThe BSO used previously gathered data to predict the success of an advertising campaign.
PTS:1 REF: 114 OBJ: 08-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research
7. _____ is the process of planning, collecting, and analyzing data relevant to marketing decision making. The results of this analysis are then communicated to management.a. Data collectionb.
Artificial intelligence
c. Decision support
SECTION 1 POOL ITEMS
d.
Marketing research
e. Single-source research
ANS: D PTS: 1 REF:114 OBJ:08-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Research
8. A bowling alley operator could use _____ to determine why customers do not seem to like his bowling alley's new location.a. transactional marketingb.
public relations
c. an EDI systemd market synergy
SECTION 1 POOL ITEMS
.e. marketing research
ANS: EMarketing research can be used by management to trace problems and their causes.
PTS:1 REF: 114 OBJ: 08-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
9. Soon after the Harriet Tubman Museum expanded its hours and began charging a small fee to pay for the extra help needed to keep it open longer, attendance decreased. To determine why this decrease in attendance occurred, the museum staff could rely on:a. a production auditb.
database marketing
c. marketing researchd.
an internal marketing audit
e. secondary data
ANS: C
SECTION 1 POOL ITEMS
Marketing research could be used to find out why attendance declined.
PTS:1 REF: 114 OBJ: 08-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research
10.The publisher of a Canadian business magazine wanted to make several major changes in the magazine's content and format. To determine what changes would be supported by its subscribers and what changes would not be welcomed, the publisher should engage in:a. advertisingb.
database marketing
SECTION 1 POOL ITEMS
c. marketing researchd.
a data retrieval system
e. secondary data
ANS: CMarketing research would be appropriate to use to determine how the publisher could provide greater customer satisfaction.
PTS:1 REF: 114 OBJ: 08-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research
11.Marketing managers can use marketing research to:
SECTION 1 POOL ITEMS
a. improve the quality of their decision making
b.
find out why a marketing plan failed
c. learn how to more efficiently retain customers
d.
understand the ever-changing marketplace
e. do all of these
ANS: E PTS: 1 REF:114-116OBJ: 08-2 | 08-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Research
12.Marketing managers would typically use marketing research to:a. eliminate any guesswork in
SECTION 1 POOL ITEMS
decision makingb.
implement a sales promotion
c. handle an individual customer's complaint
d.
determine why a new product failed
e. do all of these
ANS: DMarketing research is used to determine why marketing plans failed.
PTS:1 REF: 114 OBJ: 08-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
13.Marketing research has three functional roles. These roles are:a. normative, descriptive, and
explanatoryb.
predictive, normative, and persuasive
c. descriptive, diagnostic, and predictive
d.
flexible, interactive, and discovery-oriented
e. descriptive, explanatory, and predictive
ANS: C PTS: 1 REF:114 OBJ:08-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
14.A manufacturer of an all-natural fruit and veggie bar targeted to people who want nutritious snacks has asked for marketing research to explain the reasons for the recent failure of its Apple-Broccoli bar. This type of research is described as:a. descriptiveb.
predictive
c. diagnosticd.
normative
e. historical
ANS: C
SECTION 1 POOL ITEMS
One of the roles of marketing research is to be diagnostic and to explain what happened.
PTS:1 REF: 114 OBJ: 08-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research
15.Volkswagen developed an 18-month-long project to gain a better understanding of the American culture so it could develop cars more appealing to this market. The research project was called Moonraker. Moonraker was intended to play a(n) _____ role in Volkswagen's marketing research.a. diagnosticb descriptive
SECTION 1 POOL ITEMS
.c. predictived.
heuristical
e. demonstrative
ANS: BOne of the roles of marketing research is the gathering of descriptive data, which includes reporting consumers’ attitude toward products.
PTS:1 REF: 114 OBJ: 08-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research| TB&E Model Customer
SECTION 1 POOL ITEMS
16.The first step in the marketing research process is to:a. specify the sampling planb.
collect the data
c. analyze the marketplaced.
plan the research design
e. identify and formulate the problem/opportunity to be studied
ANS: E PTS: 1 REF:114 OBJ:08-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
17.There are five Major League Baseball markets with more than one team. So far this season, the average combined attendance for the Chicago Cubs and the Chicago White Sox ranks lowest. Before conducting any marketing research to explain low attendance figures, the teams will need to:a. determine who will be most
likely to respond to a surveyb.
select a market sample from everyone in the population
c. define the problem to be researched
d.
develop a survey to find out exactly what's wrong
e. enumerate the decision factors
SECTION 1 POOL ITEMS
ANS: CTo respond to a symptom, one should find out what the underlying problem is. See Exhibit 8.1.
PTS:1 REF: 114-115 OBJ:08-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
18.A small confectionary company has noticed a 20 percent decrease in the sale of its milk chocolate candy over the last three years. The company’s owner wants to determine why the decline has occurred and how to reverse the trend. Once the owner has identified the problem as a consumer perception that dark chocolate provides more health benefits, its next step in the marketing research process should be to:a. collect the datab.
recognize the marketing problem
c. analyze the marketplaced.
plan the research design
e. specify the sampling plan
SECTION 1 POOL ITEMS
ANS: DSee Exhibit 8.1.
PTS:1 REF: 116 OBJ: 08-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research
19.Volkswagen lost more than $1 billion in its U.S. operations in two recent years. In which step of the marketing research project, would the Volkswagen engineers (who were raised in the no-nonsense cockpits of German cars) realize the problem was that they were not designing cars for Americans who use their cars like a second office?
SECTION 1 POOL ITEMS
a. the research design stepb.
the data collection step
c. the data analysis stepd.
the problem formulation step
e. none of the choices
ANS: DDefining (or in this case realizing) the problem is the first step of the marketing research process. The research will not produce usable results if this step is not done correctly. See Exhibit 8.1.
PTS:1 REF: 115 OBJ: 08-3 TYPE: App
SECTION 1 POOL ITEMS
TOP: AACSB Reflective Thinking| TB&E Model Research| TB&E Model Customer
20.Research by Morgan Stanley revealed that 72 percent of the U.S. residents are willing to try flavored colas. Since the cola industry is stagnant in most areas of the country, this is important information. Marketing research on how best to use this information will begin with the:a. collection of the datab.
specification of the sampling plan
c. implementation of employee empowerment
d.
research design
SECTION 1 POOL ITEMS
e. recognition of the marketing opportunity
ANS: EMarketing research can hone in and clarify where the best opportunities lie. See Exhibit 8.1.
PTS:1 REF: 114 | 115 OBJ:08-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research
21.The marketing research problem:a. is information orientedb.
involves determining what resources will be used in research efforts
SECTION 1 POOL ITEMS
c. is action drivend.
does not rely on managerial experience
e. is accurately described by none of these choices
ANS: A PTS: 1 REF:114 OBJ:08-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Research
22.In contrast to marketing research problems, management decision problems are:a. action orientedb.
pervasive
c. narrower in scope
SECTION 1 POOL ITEMS
d.
synergistic
e. information oriented
ANS: A PTS: 1 REF:115 OBJ:08-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Research
23.Managers must combine specific pieces of information needed to identify the marketing research problem. Their _____ is to provide insightful decision-making information.a. company-correlated goalb.
autonomous task
c. dichotomous goal
SECTION 1 POOL ITEMS
d.
marketing research objective
e. field service objective
ANS: D PTS: 1 REF:114 | 115OBJ: 08-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
24.Post Properties is a company that manages apartments in various communities. It is concerned with a glut of apartments in Atlanta, Orlando, and Dallas Its market researcher begins by examining the rental markets in the Southeast, the history of apartment buildings, local economies, competitive rents, and ownership--all information that was on hand and did not require any new research to locate. The market researcher looked at:a. a closed studyb.
secondary data
c. primary datad.
a statistical analysis
e. priority databases
SECTION 1 POOL ITEMS
ANS: B PTS: 1 REF:115 OBJ:08-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research
25.Data previously collected for purposes other than the one at hand are an important source of information as the researcher defines the problem. These data are called _____ data.a. single-sourceb.
secondary
c. primaryd.
consensual
e. convenience
SECTION 1 POOL ITEMS
ANS: B PTS: 1 REF:115 OBJ:08-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Research
26.Market research firms, commercial publications, and government data can be used as sources of:a. secondary datab.
consensual information
c. primary datad.
artificial intelligence
e. marketing audits
SECTION 1 POOL ITEMS
ANS: AData previously collected for purposes other than the one at hand are an important source of information known as secondary data.
PTS:1 REF: 115 OBJ: 08-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
27.So far this season, the average combined attendance for the Washington Nationals and Baltimore Orioles ranks fourth of the five major league markets with more than one team. Research done by the Washington Post shows attendance in the Baltimore-Washington region trails Los Angeles, New York and San Francisco-Oakland but is slightly ahead of Chicago. Major League Baseball would be using _____ data if it used this research to determine how competition affects attendance figures.a. convenienceb.
primary
c. dichotomousd secondary
SECTION 1 POOL ITEMS
.e. observation
ANS: DData previously collected for purposes other than the one at hand are an important source of information known as secondary data.
PTS:1 REF: 115 OBJ: 08-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
28.A few years ago, TNT cable channel began using the slogan "TNT knows drama" to reflect a change in its programming focus. Now it wants to determine how its viewership has changed since it changed its focus. It has decided to use secondary data to determine if its viewers' demographics have changed. A potential disadvantage of this research plan is:a. the difficulty of holding
certain variables constant while varying one factor of interest
b.
the high cost of collecting secondary data
c. the length of time it takes to collect secondary data
d interviewer bias during the
SECTION 1 POOL ITEMS
. collection processe. the information not fitting
the needs of the research problem
ANS: ESecondary data have been previously collected for some other purpose and may not fit the current research problem.
PTS:1 REF: 115 OBJ: 08-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research| TB&E Model Marketing Plan
SECTION 1 POOL ITEMS
29.When assessing the quality of secondary data, it is:a. not necessary to know why
the data were collected in the first place
b.
important to be able to have easy access to the data
c. important to know the purpose for which the data were originally collected
d.
not important to know when the data were collected
e. imperative to use the same methods and procedures when primary data are collected
ANS: C
SECTION 1 POOL ITEMS
To assess the quality of the data, it is important to know when, where, why, and how the data were originally collected.
PTS:1 REF: 115 OBJ: 08-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Research
30.Research done by Morgan Stanley revealed that 72 percent of the U.S. residents are willing to try flavored colas. The research also showed which flavors were most desired. Cola producers using this information provided to them by Morgan Stanley would be using _____ data.a. primary
SECTION 1 POOL ITEMS
b.
secondary
c. dichotomousd.
observation
e. convenience
ANS: BIt is secondary data, which have been previously collected for some other purpose and may not fit the current research problem.
PTS:1 REF: 115 OBJ: 08-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
31.A(n) _____ is a company that acquires, catalogs, reformats, segments, and resells reports already published by marketing research firms.a. information vendorb.
subject directory
c. market research aggregatord.
search engine
e. Internet directory
ANS: C PTS: 1 REF:116 OBJ:08-3 TYPE: DefTOP: AACSB Technology| TB&E Model Online/Computer
SECTION 1 POOL ITEMS
32._____ specifies the research questions to be answered, how and when the data will be gathered, and how the data will be analyzed.a. A secondary data use planb.
The research collaborative plan
c. An autonomous directord.
The research design
e. The sampling plan
ANS: D PTS: 1 REF:116 OBJ:08-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Research
33.The research design specifies:
SECTION 1 POOL ITEMS
a. follow-up procedures for the research
b.
the information that will be found
c. how the final report will be written
d.
how the information gathered will be used to predict external environmental changes
e. the research questions to be answered
ANS: E PTS: 1 REF:116-117OBJ: 08-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
34.Pulte Homes, a national home builder, needs to control costs. Research done by Pulte Homes determined that 80 percent of its homebuyers selected the same countertops, floors, carpets, and toilets. Pulte Homes used these _____ data to cut its costs by reducing the variety of options offered without having any effect on the majority of its buyers.a. primaryb.
secondary
c. dichotomousd.
convenience
e. ethnographic
SECTION 1 POOL ITEMS
ANS: APrimary data are information that is gathered for the first time for solving a particular problem.
PTS:1 REF: 116 OBJ: 08-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research| TB&E Model Customer
SECTION 1 POOL ITEMS
35.An engineer of Volkswagen America spent three and a half hours on a Greyhound bus to experience the vast distances Americans travel in their automobiles and to try to understand why Americans treat their automobiles as rolling extensions of their living rooms. What kind of data did the engineer collect?a. heuristicb.
primary
c. cohesived.
random
e. secondary
ANS: B
SECTION 1 POOL ITEMS
Primary data are information that is gathered for the first time for solving a particular problem.
PTS:1 REF: 116 OBJ: 08-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research
36.Information collected for the first time for the purpose of solving a particular problem under investigation is called _____ data.a. primaryb.
secondary
c. dichotomousd.
observation
SECTION 1 POOL ITEMS
e. convenience
ANS: A PTS: 1 REF:116 OBJ:08-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Research
37.To determine new product opportunities, British Colombia's Sun-Rype Products conducted focus groups in which it learned Canadians are having trouble getting their required servings of fruits and vegetables each day--especially the vegetables. It gathered _____ data.a. heuristicb.
primary
SECTION 1 POOL ITEMS
c. consensuald.
random
e. collaborative
ANS: B PTS: 1 REF:117 OBJ:08-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
38.Stair Specialist, Inc. builds customized circular staircases for homes in southern California. Its sales have plateaued. Nothing it does seems to change its sales picture. Its owner has asked you to advise the company on what it should do to increase its sales. Which of the following is an example of primary data that could be used for examining this marketing research problem?a. data from a study of new
home start-ups in southern California
b.
an article in a construction trade journal predicting fewer housing starts during the next decade
c. industry predictions that the
SECTION 1 POOL ITEMS
number of new homes built in the Southwest will increase by 15 percent
d.
information from the Los Angeles Yellow Pages showing the number of building contractors has declined over the past five years
e. none of the choices
ANS: EInformation collected for the first time for the purpose of solving a particular problem under investigation is called primary data. All of these data are examples of secondary data.
SECTION 1 POOL ITEMS
PTS:1 REF: 116 OBJ: 08-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research
39.Mel and Mimi is the name of an upscale boutique that has outgrown the building it has been located in for the last two decades. Its owners want to know how its customers will react to a move and if the addition of new product lines will make the new location more attractive to its loyal customers. The store's owners have surveyed several of their customers to gauge their reaction to various potential locations and changes in product lines. The survey results are an example of _____ data.
SECTION 1 POOL ITEMS
a. primaryb.
secondary
c. dichotomousd.
observation
e. collaborative
ANS: AInformation that is collected for the first time for the purpose of solving a particular problem under investigation is called primary data.
PTS:1 REF: 116 OBJ: 08-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Research| TB&E Model
SECTION 1 POOL ITEMS
Customer
40.What is the chief advantage of primary data?a. low cost compared to
secondary datab.
relevance to the problem at hand
c. availability to any interested party for use
d.
accessibility through computerized databases
e. avoiding interviewer biases
ANS: B
SECTION 1 POOL ITEMS
Primary data are information collected for the first time for the purpose of solving a particular problem under investigation.
PTS:1 REF: 116 OBJ: 08-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
Chapter 7MULTIPLE CHOICE
1. A _____ is a group of people or organizations that has wants and needs that can be satisfied by particular product categories, has the ability to purchase these products, and is willing to exchange resources for the products.a. firmb.
buyer
c. marketd.
consumer
e. target
ANS: C PTS: 1 REF:97 OBJ:
SECTION 1 POOL ITEMS
07-1 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer
2. A group of middle school students stop by a sporting goods store. The store has just received a new shipment of high-end racing bicycles. The bicycles range in price from $1,200 to $3,000. All of the students want one of these new bikes, but none has the means to buy one. Is this group of consumers a potential market for the expensive bikes?a. Yes, they are a potential
market since they are all about the same age.
b.
No, they do not have the ability to purchase at this
SECTION 1 POOL ITEMS
time.c. No, to qualify as a market,
they must need the product.d.
Yes, they are a market because this product could satisfy their consumer wants and desires.
e. Yes, they are a market because this group shares relatively similar product needs and purchasing characteristics.
ANS: B
SECTION 1 POOL ITEMS
A market is a group of people or organizations that has wants and needs that can be satisfied by particular product categories, has the ability to purchase these products, and is willing to exchange resources for the products. There is no suggestion of ability in this case.
PTS:1 REF: 97 OBJ: 07-1 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Customer
3. A market is people or organizations that have:a. the ability, willingness, and
power to buyb a medium of exchange and
SECTION 1 POOL ITEMS
. products they desirec. needs and wants and an
ability and willingness to buy
d.
unmet needs or wants and products or services that satisfy those unmet needs or wants
e. communication, financial, and capital resources
ANS: CA market is defined as having four imperative characteristics: people or organizations, needs and wants, ability, and willingness to buy.
PTS:1 REF: 97 OBJ: 07-1
SECTION 1 POOL ITEMS
TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer
4. A(n) _____ is a subgroup of individuals or organizations sharing one or more characteristics that cause them to have relatively similar product needs.a. market universeb.
market segment
c. aggregated marketd.
segmentation base
e. population sample
ANS: B PTS: 1 REF:97 OBJ:
SECTION 1 POOL ITEMS
07-1 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer
5. _____ is the process of dividing a market into meaningful groups that are relatively similar and identifiable.a. Perceptual mappingb.
Positioning
c. Micromarketingd.
Market sampling
e. Market segmentation
ANS: E PTS: 1 REF:97 OBJ:07-1 TYPE: DefTOP: AACSB Reflective Thinking|
SECTION 1 POOL ITEMS
TB&E Model Strategy
6. E&V Bridal Studios is a wedding consulting business designed to appeal to East Asians. At one time it used the same marketing mix for all of its customers, but it has discovered that it needs a different marketing mix to appeal to its ethnic customers. For example, Chinese brides want elaborate red gowns, and Vietnamese brides wear a brocaded gown with long sleeves and a Mandarin collar. E&V Bridal Studios uses a procedure called _____ to divide its large market.a. micromarketingb.
positioning
c. market segmentation
SECTION 1 POOL ITEMS
d.
cannibalization
e. perceptual mapping
ANS: CDividing one large market into divisions based on a variable such as size is called market segmentation.
PTS:1 REF: 97 OBJ: 07-1 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Strategy
7. The purpose of market segmentation is to:a. reduce the market down to a
specific size that the firm
SECTION 1 POOL ITEMS
can handleb.
divide the market into equal size and profit regions for sales territories
c. group a large number of markets together enabling a company to serve them simultaneously
d.
develop a generalized definition of the market as a whole
e. enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups
ANS: E
SECTION 1 POOL ITEMS
The purpose of segmentation is to group similar consumers and to serve their needs with a specialized marketing mix.
PTS:1 REF: 97-98 OBJ:07-1 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
8. Hildy Webb and LaTishe Brown own Creative Catering and would like to improve customer satisfaction and increase repeat business. When you ask them to describe a typical customer, they say it is impossible and explain that with corporate functions, family affairs, and fund-raisers, they do not have a typical customer. You suggest it is time for market segmentation because:a. it will enable them to build
an accurate description of customer needs by group and to design a marketing mix to fit each segment
b.
Creative Catering needs to reduce the size of the market it serves
SECTION 1 POOL ITEMS
c. Creative Catering needs to learn how to group these markets together into one market to serve all of them adequately
d.
it will help develop a generalized definition of the market as a whole and reveal the optimal marketing mix for this market
e. this will position the company in the minds of its consumers as compared to its competitors
ANS: A
SECTION 1 POOL ITEMS
The purpose of segmentation is to group similar consumers and to serve their needs with a specialized marketing mix.
PTS:1 REF: 97 OBJ: 07-1 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Customer
9. Market segmentation can assist marketers to do all of the following EXCEPT:a. develop more precise
definitions of customer needs and wants
b.
identify which variable base should be used for segmenting
SECTION 1 POOL ITEMS
c. more accurately define marketing objectives
d.
improve resource allocation
e. evaluate performance
ANS: BMarket segmentation itself does not signal which base should be used, but it will define needs and wants, and help marketers define marketing objectives, improve resource allocation, and evaluate performance.
PTS:1 REF: 97-98 OBJ:07-1 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
10.The process of market segmentation involves breaking down a heterogeneous market into homogeneous and identifiable segments. If this process is carried to its extreme, then one could say that:a. this is the reason
segmentation cannot be used by small firms
b.
all individuals have the same needs in spite of cultural differences
c. everyone belongs to the same segment
d.
segmentation controls the demand for products
e. every individual in the world is a market segment
SECTION 1 POOL ITEMS
ANS: EThe ultimate segmentation would have each individual occupying his or her own segment, because everyone has somewhat different needs.
PTS:1 REF: 97-98 OBJ:07-1 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer
SECTION 1 POOL ITEMS
11.ProtecTV is a product that selectively mutes words and phrases some people find objectionable. It can be connected to a television, VCR, DVD player, or a satellite TV system. The manufacturer of ProtecTV targeted parents who did not want their children exposed to what they consider to be offensive language. The primary market segment for ProtecTV is:a. all parentsb.
educators
c. children under the age of 12d.
parents with preteens in their households
e. all those interested in screening out offensive language
SECTION 1 POOL ITEMS
ANS: D PTS: 1 REF:97 OBJ:07-1 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Customer
12.Market segmentation helps businesses to:a. define customer needs and
wants more preciselyb.
more accurately define marketing objectives
c. more efficiently allocate resources
d.
better evaluate their performances
e. do all of these things
SECTION 1 POOL ITEMS
ANS: E PTS: 1 REF:97-98OBJ:07-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy
13.Which of the following is NOT one of the four criteria identified in the text for successful market segmentation?a. substantialityb.
identifiability and measurability
c. accountabilityd.
accessibility
e. responsiveness
ANS: C
SECTION 1 POOL ITEMS
The four criteria are substantiality, identifiability and measurability, accessibility, and responsiveness.
PTS:1 REF: 98 OBJ: 07-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy
14.To be useful, a segmentation scheme must produce segments that meet four basic criteria. The criteria are:a. segmentable, targetable,
reliable, and homogeneousb.
tangibility, flexibility, causality, and accessibility
c. substantiality, identifiability and measurability, accessibility, and
SECTION 1 POOL ITEMS
responsivenessd.
reliability, flexibility, tangibility, and accessibility
e. responsiveness, reliability, homogeneity, and causality
ANS: C PTS: 1 REF:98 OBJ:07-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
15.A manufacturer of lenses used in microscopes, binoculars, and telescopes has segmented its market into scientific equipment manufacturers, sporting equipment manufacturers, and retailers who sell replacement lenses. In order for this segmentation scheme to be successful, all of the following criteria must be met EXCEPT:a. substantialityb.
accessibility
c. identifiability and measurability
d.
complexity
e. responsiveness
SECTION 1 POOL ITEMS
ANS: DComplexity is not a criterion; simplicity would be preferred.
PTS:1 REF: 98 OBJ: 07-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Strategy
16.According to the criterion of _____ a selected segment must be large enough to warrant developing and maintaining a special marketing mix. Serving the specific needs of this segment must be commercially viable, even if the number of potential customers is small.a. causalityb accountability
SECTION 1 POOL ITEMS
.c. responsivenessd.
accessibility
e. substantiality
ANS: E PTS: 1 REF:98 OBJ:07-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
17.The marketing researcher for Chickadee, a manufacturer of designer clothing for infants and toddlers, has submitted a report on potential segments for expansion of its marketing efforts. She noted an increase of professional women over the age of 35 who are leaving their jobs to have their first babies. She described this segment as having substantiality. This means it:a. has enough special stores,
magazines, and other outlets that it will be possible to direct advertisements at this group
b.
is large enough to permit a profitable market effort toward its members
SECTION 1 POOL ITEMS
c. exhibits a response rate to marketing variables different from the rates of other segments
d.
is too large and needs to be reduced to a more easily identifiable and measurable size
e. will be difficult to develop a product to match this group of buyers
ANS: B
SECTION 1 POOL ITEMS
Substantiality means the selected segment will be large enough to warrant developing and maintaining a special marketing mix. Serving the specific needs of this segment must be commercially viable, even if the number of potential customers is small.
PTS:1 REF: 98 OBJ: 07-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Customer
SECTION 1 POOL ITEMS
18.DCS Corporation makes barbecue grills. It has expanded into high-priced, multi-purpose grills for people who want to be able to cook all their food outside. Facing little competition, DCS designed an excellent line of specialty grills, had good distribution, used effective promotion with this market, and within four years had a respectable market share. Yet financial losses every year have caused DCS to decide to drop this line. The reason could be that this market segment, relative to the resources devoted to it, lacked:a. reliabilityb.
identifiability and measurability
c. substantialityd accessibility
SECTION 1 POOL ITEMS
.e. causality
ANS: CSubstantiality means the selected segment is large enough to warrant developing and maintaining a special marketing mix. Serving the specific needs of this segment must be commercially viable. Based on four years of losses, this one apparently was not.
PTS:1 REF: 98 OBJ: 07-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Product
SECTION 1 POOL ITEMS
19.United Social Service Agency wants to identify segments by their readiness to participate in a drug and alcohol program or in prenatal care. The agency will need to gauge whether there are enough people to justify setting up the service. The FIRST segmentation criterion problem that would greet this proposal is:a. responsivenessb.
identifiability and measurability
c. accessibilityd.
substantiality
e. responsibility
ANS: B
SECTION 1 POOL ITEMS
Identifiability and measurability is the first problem: how many people who are willing, indifferent, or unwilling to participate are there? The agency needs this number to gauge if there are enough of them. If there were enough of them, they would probably be responsive to a special program.
PTS:1 REF: 98 OBJ: 07-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Customer
SECTION 1 POOL ITEMS
20.The city of Blossom Valley has a job training program for the homeless but has had a difficult time reaching this group with information about the program even though radio and television stations have provided public service advertisements free of charge. This illustrates a segmentation problem with:a. substantialityb.
identifiability and measurability
c. responsivenessd.
accessibility
e. accountability
ANS: D
SECTION 1 POOL ITEMS
Accessibility is the ability to communicate information about the product offering to the segment.
PTS:1 REF: 98 OBJ: 07-3 TYPE: AppTOP: AACSB Reflective Thinking| AACSB Communication| TB&E Model Promotion
21.Market researchers estimate thousands of Americans have high blood pressure and do not know it because they do not have annual medical exams. A pharmaceutical company that has developed a medicine to reduce blood pressure should not count on this group to be a good target market because the group lacks:
SECTION 1 POOL ITEMS
a. both accessibility and responsiveness
b.
accountability
c. both accessibility and substantiality
d.
substantiality, identifiability, and measurability
e. reliability and responsiveness
ANS: AMarketers cannot reach someone who does not know he or she has a problem and if he or she is reached, there will be no response.
SECTION 1 POOL ITEMS
PTS:1 REF: 98 OBJ: 07-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Customer
22.SRD Research Firm has conducted marketing research on the market for concrete siding for homes. The research firm has determined there are thousands of homeowners who want the security, safety, warmth, and stability provided by concrete siding. These homeowners are generally married and between 25 and 54 years of age. They tend to live in suburban neighborhoods and most subscribe to lifestyle magazines. If you were interpreting these results, you might suggest that SRD:
SECTION 1 POOL ITEMS
a. conduct additional research because it has no idea about the measurability of its segments
b.
examine the research report again to see if it can determine segment accessibility
c. conduct a follow-up analysis to determine if the segments it might choose would respond differently from other segments to its marketing strategy
d.
not segment the concrete siding market because the only market for siding is contractors who build the homes
SECTION 1 POOL ITEMS
e. segment the concrete siding market based on the information provided and concentrate its efforts on suburban homeowners between 25 and 54 who read lifestyle magazines
ANS: CThe only criterion SRD has not determined is market responsiveness.
PTS:1 REF: 98 OBJ: 07-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
23.Every six months or so, some manufacturer introduces a new shape or color for the boxes that house the hardware to run PCs. These companies contend beige is boring, and people are ready for "something fun." These manufacturers ignore the fact most Americans like their technology in plain wrappers. These bright colors and odd shapes have failed because the market segment to which they are targeted lacks:a. substantialityb.
identifiability and measurability
c. responsivenessd.
reliability
e. accessibility
SECTION 1 POOL ITEMS
ANS: CIt is not difficult to locate the large market for PCs—they are readily identifiable and accessible for other computer products. They are just not responsive to the oddball designs and colors.
PTS:1 REF: 98 OBJ: 07-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Customer
24.The requirement for a market segment to be responsive means:a. over half of the consumers
in the identified segment will
SECTION 1 POOL ITEMS
be actively interested in the product
b.
all the segments identified by a marketer should respond to the marketing mix
c. all the segments identified by a marketer should not respond to the marketing mix
d.
the segments identified by a marketer should not differ in the level of their responsiveness to the marketing mix
e. the segment identified by a marketer should differ in how it responds to the marketing mix when
SECTION 1 POOL ITEMS
compared to another segment confronted with the same mix
ANS: EThe target segment should respond differently to the market mix compared to other segments.
PTS:1 REF: 98 OBJ: 07-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
25.If a market segment is especially motivated by coupons in newspapers, which segmentation success criterion is most influential in the success of this program?a. responsivenessb.
identifiability and measurability
c. substantialityd.
accessibility
e. functionality
ANS: AResponsiveness is in force when a target segment responds differently (hopefully more positively) to the marketing mix than other segments.
SECTION 1 POOL ITEMS
PTS:1 REF: 98 OBJ: 07-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy| TB&E Model Promotion
26.The Middleton Health Club has a new fitness program for expectant mothers. After fliers were placed at the offices of area obstetricians, Middleton's class filled up within two days. Which segmentation success criterion was most influential in the success of this promotion?a. substantialityb.
identifiability
c. measurability
SECTION 1 POOL ITEMS
d.
causality
e. responsiveness
ANS: EResponsiveness is in force when a target segment responds differently (hopefully more positively) to the marketing mix than other segments.
PTS:1 REF: 98 OBJ: 07-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Promotion
SECTION 1 POOL ITEMS
27._____ are characteristics of individuals, groups, or organizations that marketers use to divide a total market into segments.a. Differentiation guidesb.
Segmentation bases
c. Perceptual mapsd.
Responsiveness quotients
e. Accessibility quotients
ANS: B PTS: 1 REF:98 OBJ:07-4 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer
SECTION 1 POOL ITEMS
28.E&V Bridal Studios is a wedding consulting business targeted to East Asians. It accommodates the various cultures by providing services to appeal to Koreans, Vietnamese, Chinese, and Japanese customers. E&V Bridal Studios markets its services to its customers by using ethnicity to divide its customers into segments. Ethnicity is its primary:a. perceived imageb.
accessibility quotient
c. environmental controld.
segmentation base
e. differentiation guide
SECTION 1 POOL ITEMS
ANS: DA segmentation base is the characteristic used to segment the market.
PTS:1 REF: 98 OBJ: 07-4 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Promotion
29.Listerine Essential Care toothpaste is designed to reduce plaque and to prevent gingivitis. Its ads state, "After age 35, 3 out of 4 adults have some form of gum disease." The toothpaste is targeted to the market segment over the age of 35. This age variable that has been used to distinguish the market for this toothpaste is an example of a(n):
SECTION 1 POOL ITEMS
a. perceived variableb.
accessibility quotient
c. mass marketd.
segmentation base
e. differentiation guide
ANS: DA segmentation base is the characteristic used to segment the market.
PTS:1 REF: 98 OBJ: 07-4 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Product
SECTION 1 POOL ITEMS
30.Military Spouses is the only publication in the world that targets readers who "are married to the military." Its content reflects the unique set of challenges, hardships, and rewards to those whose spouses are in the military. The marital status that has been used to distinguish the market for this magazine is an example of a(n):a. perceived variableb.
accessibility quotient
c. mass marketd.
segmentation base
e. differentiation guide
ANS: D
SECTION 1 POOL ITEMS
A segmentation base is the characteristic used to segment the market.
PTS:1 REF: 98 OBJ: 07-4 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Product
SECTION 1 POOL ITEMS
Chapter 5MULTIPLE CHOICE
1. The processes individuals use when making a purchase decision are called _____. This is also the reason individuals recognize and respond to the distinctive lettering used on Coca-Cola cans, the shape of the Nike swoosh, and the color of a can of Campbell soup.a. consumer behaviorb.
marketing
c. consumerismd.
perceptual mapping
e. database mining
SECTION 1 POOL ITEMS
ANS: AConsumer behavior describes how consumers make purchase decisions.
PTS:1 REF: 63 OBJ: 05-1 TYPE: DefTOP: AACSB Analytic| TB&E Model Customer
2. Marketers often study _____, the processes used and the factors that influence the consumer when making purchase decisions.a. psychographicsb.
business buying behavior
c. consumerismd consumer behavior
SECTION 1 POOL ITEMS
.e. perceptual mapping
ANS: D PTS: 1 REF:63 OBJ:05-1 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer
3. The steps of the consumer decision-making process in order are:a. need recognition, alternative
aggregation, reevaluation, purchase decision, postpurchase behavior
b.
need positioning, stimulus response reactions, evaluation of alternatives, purchase decision,
SECTION 1 POOL ITEMS
postpurchase behaviorc. need positioning, alternative
aggregation and divestment, purchase decision, postpurchase evaluation
d.
information search, need positioning, evaluation of alternatives, product trial, purchase decision, postpurchase satisfaction
e. need recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation
ANS: E PTS: 1 REF:63 OBJ:05-2 TYPE: Def
SECTION 1 POOL ITEMS
TOP: AACSB Reflective Thinking| TB&E Model Customer
4. As a result of hearing the adventures of returning soldiers, Monroe decided to enlist in the U.S. Army. These stories he heard from the soldiers acted as:a. affective statesb.
external stimuli
c. internal stimulid.
purchase outcomes
e. a dissonance creator
ANS: B
SECTION 1 POOL ITEMS
The adventures he heard were stimuli that were not physiological.
PTS:1 REF: 64 OBJ: 05-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model International Perspective
5. Hector loves cola and is always on a diet. He will only drink Diet Coke. When offered a Diet Pepsi one afternoon as an alternative, he refused to even consider it as part of his evoked set even though he generally drinks a soft drink about the time of day the offer was made. This illustrates that Hector:a. is satisfying a wantb is satisfying a need
SECTION 1 POOL ITEMS
.c. is satisfying a beliefd.
has a physiological drive
e. has a need motivator
ANS: AA want is often brand specific, whereas a need is something an individual depends on to function efficiently. A person may need food but wants specific brands.
PTS:1 REF: 64 OBJ: 05-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Product
SECTION 1 POOL ITEMS
6. Which of the following is the BEST example of an internal stimulus that would create need recognition?a. a friend comments on how
shabby your coat looksb.
a radio station runs an ad for a new video game rental store
c. a headached.
an invitation to a graduation for which you need a gift
e. a billboard promoting a new national Internet service provider
ANS: C
SECTION 1 POOL ITEMS
Aches and pains are generated internally by your body without outside inputs from anything or anyone.
PTS:1 REF: 64 OBJ: 05-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Customer
7. After a need or want is recognized, a consumer may be motivated to clarify the options available and generate an evoked set of brands. This occurs during which part of the consumer decision-making process?a. evaluation of alternativesb.
information search
c. cognitive dissonance
SECTION 1 POOL ITEMS
d.
consideration stage
e. product identification
ANS: B PTS: 1 REF:64 OBJ:05-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer
8. While Martin was looking at the DVDs at Wal-Mart, he was trying to remember the name of the horror movie he saw that starred Bruce Campbell so he could buy the DVD. This is likely to occur during which part of the consumer decision-making process?a. antecedent state
SECTION 1 POOL ITEMS
b.
need recognition
c. external information searchd.
alternative evaluation
e. internal information search
ANS: EAfter a need or want is recognized, a consumer may be motivated to search for information. In this case, the information was already stored in his memory.
PTS:1 REF: 64 OBJ: 05-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Customer
SECTION 1 POOL ITEMS
9. The types of products people purchase using only an internal search are typically:a. frequently purchased, low-
cost itemsb.
frequently purchased, high-cost items
c. infrequently purchased, low-cost items
d.
infrequently purchased, high-cost items
e. all types of items, regardless of price or frequency of purchase
ANS: A
SECTION 1 POOL ITEMS
Information about frequently purchased, low-cost items is stored in an individual's memory and is sufficient knowledge for the purchase decision.
PTS:1 REF: 64-65 OBJ:05-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer
10.Which of the following products would most likely require the purchaser to use only an internal information search?a. a veterinarian for a new
puppyb.
a day-care facility for a two-month-old infant
SECTION 1 POOL ITEMS
c. a wedding gownd.
a tube of toothpaste
e. an anniversary gift
ANS: DInternal information search is used with frequently purchased, low-cost items; the only item on the list that meets this criterion is the toothpaste.
PTS:1 REF: 64 OBJ: 05-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Customer
11.An external information search is especially important when:
SECTION 1 POOL ITEMS
a. there is a great deal of past experience
b.
there are high cost associated with making an incorrect decision
c. the cost of gathering information is high
d.
buying frequently purchased, low-cost items
e. there is little risk of making an incorrect decision
ANS: BIf a consumer perceives a purchase to involve high risk (financial, social, etc.), an external search will lower the risk by providing more information.
SECTION 1 POOL ITEMS
PTS:1 REF: 64-65 OBJ:05-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer
12.For which of the following products is the purchaser most likely to rely on an external information source?a. a toothbrushb.
a copy of People magazine
c. a Big Macd.
a new prescription
e. a box of tissues
ANS: D PTS: 1 REF:64-65OBJ:05-2 TYPE: App
SECTION 1 POOL ITEMS
TOP: AACSB Reflective Thinking| TB&E Model Strategy
13.Pregnant Niceae has been shopping for a baby crib. She has visited several sites on the Internet that provide information about cribs and has consulted a book on how to keep her baby safe by a consumer group. Niceae has also asked several new mothers for recommendations. In her decision-making process, Niceae has been using:a. marketing-controlled
information sourcesb.
demographic information sources
c. nonmarketing-controlled information sources
d secondary data sources
SECTION 1 POOL ITEMS
.e. internal search sources
ANS: CPublic sources of information, such as Web sites and consumer groups, are known as nonmarketing-controlled information sources.
PTS:1 REF: 64-65 OBJ:05-2 TYPE: AppTOP: AACSB Technology| TB&E Model Product| TB&E Model Online/Computer
14.Which of the following is NOT an example of a marketing-controlled information system?
SECTION 1 POOL ITEMS
a. a television ad for Geico insurance
b.
a NASCAR automobile sponsored by the U.S. Army
c. a $1-off coupon for Campbell’s soup
d.
an article in Bicycling magazine about the newest Shimano brand shoes
e. a real estate agent
ANS: DThe article in Bicycling would NOT have originated with the Shimano organization.
PTS:1 REF: 65 OBJ: 05-2 TYPE: App
SECTION 1 POOL ITEMS
TOP: AACSB Technology| TB&E Model Online/Computer
15.While Robinson was looking at the CDs at Wal-Mart, he was trying to remember the name of the group that sang the song he liked on last night's episode of Smallville, so he could buy it. Since recording companies pay to have their CDs promoted on television shows that air on the WB, the source of information Robinson is trying to recall is:a. a fortuitously evoked setb.
marketing-controlled
c. nonmarketing-controlledd.
unitary data
SECTION 1 POOL ITEMS
e. a credible consideration set
ANS: B PTS: 1 REF:65 OBJ:05-2 TYPE: AppTOP: AACSB Technology| TB&E Model Customer
SECTION 1 POOL ITEMS
16.Warren loves to go to the beach on his vacation but hates to have to worry about the possibility of hurricanes. As Warren looked for where he should go on vacation this summer, he consulted a publication called Smart Money and learned the islands of Aruba, Bonaire and Curacao are not in the hurricane belt. Now he will only consider these island resorts as possible vacation destinations. This group of resort islands is called Warren’s:a. involvement setb.
evaluative set
c. evolved setd.
evoked set
e. intuitive set
SECTION 1 POOL ITEMS
ANS: DAn evoked set is the set of brands a consumer recalls and would consider as possible purchase choices.
PTS:1 REF: 65 OBJ: 05-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Product
17.Melyssa has been given a horse and needs to buy a new Western saddle. She has narrowed the brands of saddles she is considering down to Dale Chavez, Abetta, and Big Horn. These three brands of Western saddles represent Melyssa's:
SECTION 1 POOL ITEMS
a. evaluative criteriab.
dissonance suppressors
c. discretionary discriminatorsd.
discriminatory set
e. evoked set
ANS: E PTS: 1 REF:65 OBJ:05-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Product
SECTION 1 POOL ITEMS
18.Zoran wants to buy a pair of sunglasses he can wear when he is riding his bicycle in competitions. He wants sunglasses with a rubberized nose piece, built-in anti-fogging technology, and the ability to block light from all angles. The criteria for his decision appear to be based on:a. marketing-controlled
information sourcesb.
evoked set finalists
c. routine response behaviord.
attitudes of others
e. product attributes
ANS: E
SECTION 1 POOL ITEMS
Physical characteristics and traits used in decision making are called product attributes.
PTS:1 REF: 65 OBJ: 05-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Product
19.Another name for evoked set is:a. called arrayb.
reminder assortment
c. induced memoryd.
consideration set
e. reminder induction
SECTION 1 POOL ITEMS
ANS: D PTS: 1 REF:65 OBJ:05-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer
20.People tend to be more satisfied with a purchase if:a. they obtain additional
information that reinforces their decision
b.
they feel less competent in their daily lives
c. cognitive dissonance develops
d.
there is inconsistency among opinions and values
e. there is no further contact with the seller
SECTION 1 POOL ITEMS
ANS: ANew information that reinforces positive ideas about the purchase tends to reduce cognitive dissonance and increases satisfaction.
PTS:1 REF: 66 OBJ: 05-2 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Product
SECTION 1 POOL ITEMS
21.Cecelia is a receptionist and just spent $347 on a new riding saddle for her boyfriend Claude, a weekend cowboy. When she got home with the saddle, she experienced a high level of anxiety about whether she has made the right purchase decision. Cecelia experienced:a. selective dissatisfactionb.
temporal distortion
c. perceptual disharmonyd.
cognitive dissonance
e. self-actualization involvement
ANS: D
SECTION 1 POOL ITEMS
Cognitive dissonance is the term for postpurchase tension and anxiety.
PTS:1 REF: 66 OBJ: 05-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Pricing| TB&E Model Product
SECTION 1 POOL ITEMS
22.Miller has just purchased a new Allez A1 Specialized bicycle for $1,000. Miller realizes that the Allez A1 costs more than most bikes, and even at that price it doesn't come with a set of pedals. Even though other brands of bicycles cost much less than the Allez A1, Miller tells himself that the Allez A1 is more comfortable and has greater durability than most road bikes. As Miller wonders if he made the right purchase decision, he is experiencing:a. attribute remorseb.
cognitive dissonance
c. evaluation distortiond.
consumer cognition
e. perceptual disharmony
SECTION 1 POOL ITEMS
ANS: BCognitive dissonance involves the realization of the advantages and disadvantages of the purchased product.
PTS:1 REF: 66 OBJ: 05-2 TYPE: AppTOP: AACSB Analytic| TB&E Model Product
23._____ is the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior.a. Economic valueb Involvement
SECTION 1 POOL ITEMS
.c. Opportunity costd.
Temporal cost
e. Perceived level of personal risk
ANS: B PTS: 1 REF:67 OBJ:05-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy
24.When the secretary restocks office supplies each month, he places an order for paper, pens, folders, and printer cartridges. Each month the order is the same. This type of buying behavior is called:
SECTION 1 POOL ITEMS
a. buyer's harmonyb.
situational convenience
c. routine response behaviord.
limited decision making
e. consistent decision making
ANS: CThe buying of frequently purchased, low-cost goods is typically routine response behavior.
PTS:1 REF: 67 OBJ: 05-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Customer
SECTION 1 POOL ITEMS
25.Which of the following activities is most likely to be an example of routine response behavior?a. the purchase of a three-week
vacation cruiseb.
a homeowner’s purchase of a new grill for $6,000
c. the first-time purchase of a copy machine for your home office
d.
the purchase of toilet paper
e. the purchase of a infant car seat
ANS: DOnly the toilet paper is an example of a low-involvement purchase.
SECTION 1 POOL ITEMS
PTS:1 REF: 67 OBJ: 05-3 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Customer
26._____ is characterized by low involvement, a short time frame, an internal-only information search, and low costs.a. Limited decision makingb.
Routine response behavior
c. Emotional buyingd.
Intensive decision making
e. Temporally-limited behavior
SECTION 1 POOL ITEMS
ANS: BSee Exhibit 5.2.
PTS:1 REF: 67 OBJ: 05-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer
27.Jackson has moved to a new community and can no longer attend his old church. He is currently visiting churches to make a decision about which one best serves his needs. In making his decision, Jackson will engage in _____ consumer decision making.a. limitedb extended
SECTION 1 POOL ITEMS
.c. habituald.
classical
e. routine
ANS: AJackson is familiar with churches and the services they provide, but he is unfamiliar with the ones in his new community.
PTS:1 REF: 67 OBJ: 05-3 TYPE: AppTOP: AACSB Analytic| TB&E Model Customer
SECTION 1 POOL ITEMS
28.The electricity for lighting outdoor billboards is powered by transformers. The operator of a company that installs and manages billboards has purchased many such transformers. Today he plans to buy a replacement for one that was destroyed by a recent hurricane. Before making this purchase, he will look at cost and also see if he can find one that is more weatherproof. He wants to make sure he buys the best transformer for the job and that he does not pay more money than he should. In other words, he will engage in _____ decision making.a. limitedb.
extended
c. habitual
SECTION 1 POOL ITEMS
d.
classical
e. routine
ANS: AThe billboard operator is familiar with the product, but he is not immediately knowledgeable about the products currently on the market.
PTS:1 REF: 67 OBJ: 05-3 TYPE: AppTOP: AACSB Analytic| TB&E Model Customer
29.When a consumer is purchasing an unfamiliar or expensive product, the consumer often uses the _____ process.
SECTION 1 POOL ITEMS
a. extensive decision makingb.
cognitive harmonizing
c. limited problem solvingd.
strategic behavior
e. stimulus discrimination
ANS: A PTS: 1 REF:67-68OBJ:05-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Product
SECTION 1 POOL ITEMS
Chapter 19MULTIPLE CHOICE
1. _____ is a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer segments.a. Organizational optimizationb.
Consumer relationship marketing (CRM)
c. Total quality management (TQM)
d.
Customer relationship management (CRM)
e. Market aggregation
ANS: D PTS: 1 REF:293 OBJ:
SECTION 1 POOL ITEMS
19-1 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Strategy
5. Customer relationship management:a. is often described as a
closed-loop systemb.
only involves personnel in marketing and management departments
c. organizes the company around functional departments
d.
is a very simplistic method of encouraging customer satisfaction
SECTION 1 POOL ITEMS
e. is only a theory and has not been proven successful in any practical way
ANS: ACRM is a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer segments.
PTS:1 REF: 293 OBJ: 19-1 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Strategy
SECTION 1 POOL ITEMS
6. To initiate the CRM cycle, a company must first:a. establish marketing
objectivesb.
decide on a segmentation strategy
c. establish customer relationships with the organization
d.
determine the level of interaction customers have with the organization
e. acquire and capture customer data for product categories
ANS: C PTS: 1 REF:293 OBJ:19-1 TYPE: Def
SECTION 1 POOL ITEMS
TOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Strategy
8. Which of the following statements about the CRM cycle is true?a. The letters CRM are an
acronym for consumer relationship marketing.
b.
The CRM cycle does not affect employees outside the marketing and management functional areas.
c. The CRM cycle is continuous and circular with no predefined start or end point.
d The CRM cycle takes a
SECTION 1 POOL ITEMS
. simplistic perspective on customers.
e. All of these statements about the CRM cycle are true.
ANS: CCRM stands for customer relationship management.
PTS:1 REF: 293 OBJ: 19-1 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Strategy
SECTION 1 POOL ITEMS
9. A company that has a(n) _____ customizes its product offerings based on data generated through interaction between the customer and the company.a. ethnocentric perspectiveb.
supply-based focus
c. sales orientationd.
supply-based focus
e. customer-centric focus
ANS: EA customer-centric focus is represented by adherence to the marketing concept.
PTS:1 REF: 295 OBJ: 19-2
SECTION 1 POOL ITEMS
TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer
12.Customer-centric is an internal management philosophy similar to:a. utilitarianismb.
Herzberg's theory of motivation
c. the equity theoryd.
the marketing concept
e. consumerism
ANS: D PTS: 1 REF:295 OBJ:19-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer
SECTION 1 POOL ITEMS
TOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Product
14.In a CRM environment, _____ is defined as the informal process of collecting customer information through customer contacts and feedback on product performance.a. corporate modificationb.
attitude adjustment
c. organizational perceptiond.
stimulus/response research
e. learning
SECTION 1 POOL ITEMS
ANS: E PTS: 1 REF:295-296OBJ: 19-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer
15._____ is the process by which learned information from customers is centralized and shared in order to enhance the relationship between customers and the organization.a. Knowledge managementb.
Learning
c. Database marketingd.
Interactive marketing
e. Information marketing
SECTION 1 POOL ITEMS
ANS: A PTS: 1 REF:295 OBJ:19-2 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer
17._____ refers to the latitude organizations bestow on their representatives to negotiate mutually satisfying commitments with customers.a. Consumer learningb.
Customerization
c. Empowermentd.
Autonomy
e. Interaction
SECTION 1 POOL ITEMS
ANS: C PTS: 1 REF:296 OBJ:19-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Customer
19.A(n) _____ is the point at which a customer and a company representative exchange information and develop learning relationships.a. social contactb.
interaction
c. empowering momentd.
equilibrium point
e. transactional dyad
SECTION 1 POOL ITEMS
ANS: B PTS: 1 REF:296 OBJ:19-2 TYPE: AppTOP: AACSB Reflective Thinking| TB&E Model Customer
23.Which of the following statements about touch points is true?a. Data gathered at external
touch points, once interpreted, provide information that affects internal touch points.
b.
A customer applying for a credit card is an example of a touch point.
c. Companies are publicizing
SECTION 1 POOL ITEMS
their Web sites as the first touch point for customer interactions.
d.
A customer complaint is an example of an external touch point.
e. All of these statements about touch points are true.
ANS: E PTS: 1 REF:297 OBJ:19-3 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Strategy
SECTION 1 POOL ITEMS
24.In a CRM system, _____ are all areas of the business where customers have contact with the company and data may be gathered and used to guide and direct the decision making within that business unit.a. touch pointsb.
focus areas
c. data miningd.
information search periods
e. observational points
ANS: A PTS: 1 REF:297 OBJ:19-3 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
TOP: AACSB Technology| AACSB Reflective Thinking| TB&E Model Online/Computer| TB&E Model Customer
28._____ interactions occur when customers buy products in a store.a. Point-of-saleb.
Relationship-based
c. Cost-basedd.
Retail-centric
e. Distribution-focused
ANS: A PTS: 1 REF:297 OBJ:19-3 TYPE: Def
SECTION 1 POOL ITEMS
TOP: AACSB Reflective Thinking| TB&E Model Customer
29.Which of the following is a guideline for a successful CRM system?a. Customer information is not
retained past the initial contact with the customer.
b.
Intuition and experience must define the products provided by the organization.
c. The product takes center stage in the organization.
d.
Customer information is kept in a centralized repository.
e. All of these are guidelines for a successful CRM
SECTION 1 POOL ITEMS
system.
ANS: DCustomer information is retained past the initial contact with the customer. Customer data should be accumulated over the customer's entire life span with the organization.Customers must define the products provided by the organization. The customer takes center stage in the organization.
PTS:1 REF: 298-299 OBJ:19-5 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Strategy
SECTION 1 POOL ITEMS
30.The traditional approach for acquiring data from customers is through:a. encoding devicesb.
media
c. feedback mechanismsd.
channel interactions
e. public relations
ANS: D PTS: 1 REF:298 OBJ:19-4 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
31.Which of the following is an example of a channel through which customer data are traditionally gathered?a. store visitsb.
conversations with salespeople
c. interactions via the Webd.
phone conversations
e. all of these
ANS: E PTS: 1 REF:298 OBJ:19-4 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer
SECTION 1 POOL ITEMS
32.An organization should view every transaction as:a. simply a financial exchangeb.
deleterious to customer relationship management
c. the opportunity to collect vast amounts of data about the customer
d.
the creation of customer-organization multiplicity
e. the closing of a channel
ANS: C PTS: 1 REF:298 OBJ:19-4 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer
SECTION 1 POOL ITEMS
33.When viewed as an interaction between the organization and the customer, a transaction can produce all of the following customer data EXCEPT:a. name, address, and phone
numberb.
information about the customer's relationship with other customers
c. past purchase historyd.
information about the customer's relationship with the organization
e. average amount spent on purchases
ANS: B PTS: 1 REF:298 OBJ:
SECTION 1 POOL ITEMS
19-4 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer
34.A(n) _____ is a central repository for data from various functional areas of the organization. These data can be shared by all of the organization's departments.a. information mineb.
knowledge distribution center
c. information extraction unitd.
information intermediary
e. data warehouse
ANS: E PTS: 1 REF:298-299
SECTION 1 POOL ITEMS
OBJ: 19-5 TYPE: DefTOP: AACSB Technology| TB&E Model Online/Computer
37.The core of the data warehouse is:a. empowered employeesb.
transaction channels of communication
c. point-of-sale interactionsd.
the database
e. a compiled list
ANS: D PTS: 1 REF:298 OBJ:19-5 TYPE: DefTOP: AACSB Technology| TB&E Model Online/Computer
SECTION 1 POOL ITEMS
40.A _____ is essentially a very large, corporate-wide database, culled from a number of separate systems, such as billing, accounting, order fulfillment, distribution, customer service, and marketing and sales, already in place within an organization.a. data martb.
customer information system
c. data warehoused.
decision support system
e. data cluster
ANS: C PTS: 1 REF:298-299
SECTION 1 POOL ITEMS
OBJ: 19-5 TYPE: DefTOP: AACSB Technology| TB&E Model Online/Computer
45.A(n) _____ list generally includes names and addresses gleaned from directories or membership rosters.a. predictiveb.
compiled
c. responsed.
actionable
e. disintegrated
ANS: B PTS: 1 REF:299 OBJ:19-5 TYPE: Def
SECTION 1 POOL ITEMS
TOP: AACSB Reflective Thinking| TB&E Model Customer
47._____ is the addition of information to customer or prospect records for the purpose of better describing or better determining the responsiveness of customers or prospects.a. Information formattingb.
Database enhancement
c. Data miningd.
Data shading
e. Predictive modeling
ANS: B PTS: 1 REF:299 OBJ:
SECTION 1 POOL ITEMS
19-5 TYPE: DefTOP: AACSB Technology|| TB&E Model Online/Computer
SECTION 1 POOL ITEMS
49. Which of the following statements about a CRM system is true?a. A critical component of a
CRM system is the use of the appropriate technology to store and integrate customer data.
b.
A CRM system operates on the theory that all customers are equally important.
c. Due to privacy laws, a CRM system only disseminates customer information to those who are actually in day-to-day contact with customers.
d.
A company using a CRM system must view its customers as bits of data.
SECTION 1 POOL ITEMS
e. All of these statements about a CRM system are true.
ANS: AThe CRM system allows companies to make use of the 80/20 rule. Customers should be viewed comprehensively.PTS:1 REF: 300 OBJ: 19-1 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Strategy
50._____ is the process of finding hidden patterns and relationships in the customer data stored in the data warehouse.a. Customer information
SECTION 1 POOL ITEMS
management (CIS)b.
Data feedback
c. Information retrievald.
Information extraction
e. Data mining
ANS: E PTS: 1 REF:300 OBJ:19-6 TYPE: DefTOP: AACSB Technology| TB&E Model Online/Computer
SECTION 1 POOL ITEMS
57.Which of the following techniques used to analyze marketing databases considers whether a customer has made a purchase recently as well as how often that customer makes a purchase?a. recency-frequency-
monetary analysis (RFM)b.
predictive modeling
c. customer valuationd.
data mining
e. lifetime value analysis
ANS: A PTS: 1 REF:300 OBJ:19-6 TYPE: DefTOP: AACSB Technology| TB&E
SECTION 1 POOL ITEMS
Model Customer
58.The basic assumption of _____ is that marketing to repeat customers is more profitable than marketing to first-time buyers.a. customer segmentationb.
predictive modeling
c. customer valuationd.
data manipulation
e. lifetime value analysis
ANS: E
SECTION 1 POOL ITEMS
Lifetime value analysis is a data manipulation technique that projects the future value of the customer over a period of years using the assumption that marketing to repeat customers is more profitable than marketing to first-time buyers.
PTS:1 REF: 300 OBJ: 19-6 TYPE: CompTOP: AACSB Reflective Thinking| TB&E Model Strategy
59.Designer Linens Outlet uses CRM to track visitors to its Web site. This tracking allows the retailer to confidently project the value of its repeat customers through its application of:
SECTION 1 POOL ITEMS
a. customer segmentationb.
predictive modeling
c. customer valuationd.
data manipulation
e. lifetime value analysis
ANS: ELifetime value analysis is a data manipulation technique that projects the future value of the customer over a period of years using the assumption that marketing to repeat customers is more profitable than marketing to first-time buyers.
PTS:1 REF: 300 OBJ: 19-6
SECTION 1 POOL ITEMS
TYPE: AppTOP: AACSB Technology| TB&E Model Customer| TB&E Model Online/Computer
SECTION 1 POOL ITEMS
60. _____ uses a past set of occurrences to predict the likelihood that some other occurrence, such as a response or purchase, will take place in the future.a. Customer manipulationb.
Predictive modeling
c. Data miningd.
Lifetime value analysis
e. Causal research
ANS: B PTS: 1 REF:301 OBJ:19-6 TYPE: DefTOP: AACSB Technology| TB&E Model Strategy
SECTION 1 POOL ITEMS
65._____ involves developing product offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships.a. Transaction managementb.
Campaign management
c. Data miningd.
Consumerism
e. Knowledge management
ANS: B PTS: 1 REF:302 OBJ:19-7 TYPE: DefTOP: AACSB Reflective Thinking| TB&E Model Customer
SECTION 1 POOL ITEMS