BUSI 330 quiz 1 solutions complete answers

BUSI 330 quiz 1 solutions complete answers 

 

Volkswagen AG was widely criticized for their failure to practice ________ for employing sophisticated software on selected Volkswagen, Audi, and Porsche models that impaired its diesel emissions devices required by the U.S. Environmental Protection Agency.

 

All of these statements about a person’s moral philosophy are true except which?

 

The Child Protection Act (1966) and the Nutritional Labeling and Education Act (1990) are examples of

 

Using smartphones, people can record videos, browse the Internet, take pictures, and listen to music. Improved features are added with each smartphone introduced by Apple, Samsung, Google, and others. As a result, customers often want to replace their smartphones every couple of years, even if their current phones still work. This increase in demand is due mostly to changes in ________, an environmental force.

 

Quadrant A in Figure 2-5 represents the marketing strategy of

 

Quadrant B in Figure 2-5 represents the marketing strategy of

 

Quadrant C in Figure 2-5 represents the marketing strategy of

 

Quadrant D in Figure 2-5 represents the marketing strategy of

 

Medtronic, a company that makes heart pacemakers, introduced a new product at medical conventions across Asia to demonstrate its many beneficial features. The convention presentations are an example of its

 

Dell Inc. learned that the lithium-ion batteries in its notebook computers posed a fire hazard to consumers. The company recalled 2.7 million batteries and gave consumers a replacement before any personal injuries resulted. Dell was most likely concerned with which Consumer Bill of Rights principle?

 

Volkswagen AG was widely criticized for their failure to practice __________ for employing sophisticated software on selected Volkswagen, Audi, and Porsche models that disguised the amount of smog pollutants emitted from selected cars. They sold these vehicles with marketing that claimed that the models utilized "clean diesel" engines.

 

Business culture affects ethical behavior in competition. Two kinds of unethical behavior are most common:

 

There are three concepts of social responsibility, each relating to particular constituencies. Stakeholder responsibility is characterized by

 

AT&T, Verizon, Sprint, and T-Mobile serve more than 95 percent of the subscribers in the U.S. wireless mobile phone market. Which form of competition characterizes this market?

 

A recent study of business executives reported that __________ percent had witnessed ethically troubling behavior.

 

Taco Bell sells Doritos Locos Tacos in the United States, with shells made out of Nacho Cheese Doritos. At introduction, the chain sold 100 million tacos in the first 10 weeks alone, its most popular product launch of all time. Considering Figure 2-5, this is an example of a ________ strategy that would be found in quadrant ________.

 

Pharmavite LLC recently recalled several lots of Nature Made vitamin products due to possible salmonella or staphylococcus contamination. It should have adopted a more rigorous ________ goal.

 

Steep markdowns at a retail store for end-of-year sales are likely to help with which goal, rather than a profit one?

 

If Ben & Jerry's starts selling its super premium ice cream in Brazil for the first time, it will be using a ________ strategy.

 

Apple launched its revolutionary iPhone smartphone in 2007. iPhone unit sales skyrocketed and Apple's U.S. market share is now greater than 44 percent, exceeding the market share of its largest competitor, Samsung. The smartphone market is expected to grow at an annual rate of 7 percent due to growth in India, Indonesia, and Africa. Currently, Apple's iPhone SBU appears to be a 

 

An organization uses the strategic marketing process to answer all of the following questions except which?

 

The 3M Post-it® Flag Highlighter and Pen marketing programs described in the text were designed for what primary objective?

 

In many geographic areas, there is only a single provider for gas and electric service for businesses and consumers. However, the government regulates that entity to ensure price protection for the buyer. This is an example of

 

Visa and MasterCard have recently been accused of violating antitrust laws by improperly fixing credit and debit card fees (known as swipe fees) paid by retailers to use their services, creating an anti-competitive environment. Legislation that prohibits price-fixing is an example of ________ forces that affect the marketing environment.

 

Small businesses employ about ________ of all private-sector employees.

 

During the holiday shopping season, many online retailers offer buyers price reductions, coupons, two-for-one deals, or free delivery. This is because these retailers operate in ________ environment. 

 

In Figure 2-2, Box A represents the “why” element of visionary organization. This is referred to as 

 

In Figure 2-2, Box B represents the “what” element of visionary organization. This is referred to as 

 

In Figure 2-2, Box C represents the “how” element of visionary organization. This is referred to as 

 

A skydiving experience cannot be touched like a physical object, but is still considered a product. To a marketer, this is an example of

 

Some companies have very restrictive return policies, for example, accepting returns only for store credit or not accepting them at all. Though these policies have a positive effect on sales figures, some customers end up frustrated because they have legitimate reasons for returning merchandise. Very restrictive return policies are likely a violation of

 

The numeric information displayed in Figure 2-3c above allows the viewer to quickly identify which states and even regions have the most monthly website visits, which is a form of

 

All of the following statements about the overall marketing program for 3M’s Post-it® Flag Highlighters and the Post-it® Flag Pens are true except which?

 

The entertainment industry in the United States is dominated by Viacom, Disney, and Time Warner. In terms of the form of competition, this industry is an example of

 

Agribusinesses that sell commodity products such as wheat, rice, and corn are often in ________ position with their competitors.

 

The residents of Alaska and people throughout the world were outraged when the Exxon Valdez crashed into a shoal and dumped millions of gallons of crude oil into the pristine waters of Prince William Sound. The company was slow to admit its mistake and even slower to implement cleanup activities. Exxon was criticized for acting in a manner that would benefit the organization but not society. In short, Exxon did not demonstrate 

 

Question 1 The United Way of Greater Toronto (UWGT), like many charities, was sitting on a gold mine of donor data. Unfortunately, UWGT was not certain how to use that information to its greatest advantage. UWGT could blanket past donors with generic mailings, but it could not offer donors information that would convince them to donate to UWGT over other charities. Which of the following tools would be most useful for the nonprofit organization to use?

Question 2 To serve both buyers and sellers, marketing seeks to discover and __________ the needs and wants of prospective customers.

Question 3 Dick's Sporting Goods carries baseballs all year around. The same is true for footballs and tennis equipment. With this all­year­around strategy, Dick's Sporting Goods offers __________ utility for these products.

Question 4 Which of the following statements about relationship marketing is most accurate?

Question 5 The United States Army recently has been both praised and criticized for its use of a popular video game, America's Army, which is designed to reach potential recruits. The game's creator, Colonel Casey Wardynski, wanted to provide a sense of the training and teamwork one could find in the Army's military environment. The game is designed for "boys 14 years or older," which represent the Army's __________.

Question 6 Which of the following statements about marketing departments is most accurate?

Question 7 Kraft produces Lunchables, a prepackaged meal usually consisting of several crackers, small slices of meat, and small slices of cheese. Other items in the product line contain small bottles of Chiquita Strawberry Banana Fruit smoothie, Capri­Sun juice, or Kool­Aid. The box is bright yellow and the quantity of food contained within it is small. The target market for Kraft Lunchables is most likely:

Question 8 The value to consumers that comes from having the offering available when they need it constitutes __________ utility.

Question 9 Which of the following conditions are necessary for marketing to occur?

Question 10 Which of the following statements best describes a service?

Question 11 If sales revenues for Starbucks VIA Ready Brew instant coffee sold to U.S. consumers increased as a result of a slight price increase of $0.25 per pack, it would be using a __________ strategy.

Question 12 A marketing strategy refers to

Question 13 A(n) __________ is a privately owned organization that serves its customers to earn a profit so that it can survive.

Question 14 Figure 2­5 Consider Figure 2­5 above. A family owns a gelato business in a small town square next to a park, a favorite place for parents and children to stop on their way home from work or school. However, the business owner is barely making ends meet. He doesn't want to give up his store but in addition he begins selling hand­made flies on the Internet for professional sports fishermen. This is an example of a __________ strategy that would be found in quadrant __________.

Question 15 IBM's business strategy to help its clients be more efficient, productive, and responsive to the data generated from the revolution in the global marketplace concerning the instrumentation and integration of the world's processes and infrastructures is referred to as

Question 16 The number one consumer complaint about bananas is how soon they start getting brown spots. Dole most likely set a(n) __________ goal when it recently began adding stickers to bananas to promote the use of overripe bananas in the Yonanas machine (Dole owns 30% of the firm) to make a creamy, guilt­free dessert.

Question 17 An organization's special capabilities, including skills, technology, and resources that distinguish it from other organizations and provide customer value, are referred to as

Question 18 Offering a Champion brand heart pacemaker with only the features needed by Asian patients is an example of Medtronic's

Question 19 The BCG has given specific names and descriptions to the four resulting quadrants in its growthshare matrix based on the amount of cash they generate for or require from the organization. Dogs are SBUs that are classified as having

Question 20 An approach whereby an organization allocates its marketing mix resources to reach its target markets is referred to as (the)

Question 21 The first major federal legislation passed to encourage competition in the United States was the

Question 22 All of the following statements about a person's moral philosophy are true EXCEPT:

Question 23 HSBC Bank International Ltd. (Europe's largest bank) selected its advertising agency because that agency was "always sensitive to the possibility that something might not translate well or may offend superstitions about colors or numbers." Its advertising agency was incorporating

Question 24 Chrysler recycles thousands of tons of wooden pallets, cardboard, and paper annually. Chrysler cars are 75 percent recyclable. Chrysler's recycling programs are examples of

Question 25 According to a recent environmental scan, the United States has spent over $1 trillion on the war on terrorism since 2001. This expenditure is an example of a(n) __________ force.

Question 26 An alternative to government control where an industry attempts to police itself is referred to as

Question 27 Source Perrier S.A., the supplier of Perrier bottled water, exercised __________ when it recalled 160 million bottles of water in 120 countries after traces of a toxic chemical was found in 13 bottles. The recall cost the company $35 million, and the profit from $40 million in lost sales. Even though the chemical was not harmful to humans, the president of the company believed it was his duty to remove "the least doubt, as minimal as it might be, to weigh on the image of the quality and purity of our product."

Question 28 Two prominent personal moral philosophies that have direct bearing on marketing practice are

Question 29 In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers. These were the right: (1) __________; (2) to be informed; (3) to choose; and (4) to be heard.

Question 30 The maker of Wrigley chewing gum funded a $10 million ad campaign aimed at getting African Americans to use doctors for regular health care maintenance instead of only when they are sick. This is an example of

 

Question 1

FreshCase packaging is the first‑ever vacuum package for red meat that maintains the meat's appetizing color, reducing both food and plastic waste. This is an example of creating __________ utility in the case‑ready meat category.

Question 2

All of the following statements about the overall marketing program for 3M's Post‑it Flag Highlighters are true EXCEPT:

Question 3

The Hermitage, a famous Russian art museum, was suffering financial difficulties as the result of lost funding and a decline in tourists. The decrease in visitors was blamed on a lack of awareness of the treasures contained in the museum. The Hermitage's director used a strategic alliance with IBM to create a website where people view some of the wonders of the Hermitage in an online virtual tour. The hope is that this sampling of paintings, sculptures, artifacts, etc. will encourage visitors to make a trip to the Hermitage and spend enough money there to cover operational costs. The Hermitage is a(n) __________ that uses online virtual tours to market itself worldwide.

Question 4

The activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large is referred to as __________.

Question 5

Four factors are required for marketing to occur: (1) __________; (2) a desire and ability of parties to be satisfied; (3) a way for the parties to communicate; and (4) something to exchange.

Question 6

Which of the following is an example of time utility?

Question 7

A __________ is a need that is shaped by a person's knowledge, culture, and personality. 

Question 8

New‑product experts generally estimate that up to __________ percent of the more than 40,000 new consumable products introduced in the United States annually "don't succeed in the long run."

Question 9

All of the following are aspects of Trader Joe's customer experience EXCEPT:

Selected Answer: it has a large and expensive research and development facility.

Question 10

The marketing department of an organization is responsible for facilitating __________.

Question 11

All of the following are components of the implementation phase of the strategic marketing process EXCEPT:

Question 12

 

Figure 2‑3c

According to Figure 2‑3c above, which of the following states has the highest number of monthly website visits?

Question 14

Apple launched the iPad in 2010, and unit sales reached an astonishing 40 percent market share in the tablet industry by 2013, leading both Samsung's Galaxy (18 percent) and Amazon's Kindle (4 percent). Global tablet unit sales are expected to more than double by 2016 as consumers continue to switch from desktops and laptop PCs. Currently, Apple's iPad SBU appears to be a __________.

Question 15

Today's visionary organization uses three key elements to __________, set a direction, and formulate strategies.

Question 16

 

Cree LED Light Bulb Photo

Cree markets LED (light‑emitting diode) light bulbs (see the photo above) that replaces the traditional incandescent bulb. The Cree LED 60w bulb is 84 percent more energy efficient, lasts for 25,000 hours, and initially sold for about $12 at Home Depot. Cree is an example of a(n) __________.

Question 17

American Express has a long history of working for the good of all in its New York community. In 1885, it engaged its employees to help raise money to build the pedestal of the Statue of Liberty. Today, it has a program to help restore, preserve and revitalize historic sites in New York City. These actions by American Express are partial fulfillment of the __________ the firm has established for itself as a corporate citizen.

Question 18

The level at which managers set a more specific strategic direction for their businesses to exploit value‑creating opportunities is referred to as the 

Question 19

A __________ is a federal, state, county, or city unit that provides a specific service to its constituents.

Question 20

An organization's mission refers to

Question 21

A time of declining economic activity when businesses decrease production, unemployment rises, and many consumers have less money to spend is referred to as

Question 22

Approximately one in __________ U.S. residents is African American, American Indian or Alaska Native, Asian American, or Native Hawaiian/Pacific Islander.

Question 23

 

There are three concepts of social responsibility, each relating to particular constituencies. According to Figure 3‑A above, "C" represents __________ responsibility.

Question 24

An important social trend is the continued concern for health and well‑being in the United States. This is most likely evidenced by

Question 25

The Better Business Bureau

Question 26

Which of the following is an example of green marketing?

Question 27

Many consumers are committed to brands with a strong link to social action. An example of this would be

Question 28

The Electronic Signatures in Global and National Commerce Act makes digital signatures as valid as non‑digital pen‑and‑ink signatures. This act created a demand for software and hardware that would collect, transmit, and receive digital signatures. This example indicates how __________ forces can work together in the marketing environment.

Question 29

 

There are three concepts of social responsibility, each relating to particular constituencies. According to Figure 3‑A above, "B" represents __________ responsibility.

Question 30

Western Digital, the Irvine, California‑based maker of disk drives, recalled about 400,000 of its hard drives because of a faulty internal chip. The chip will not affect the disk drive motor until after six to twelve months of use. This delay in the problem's appearance means that many consumers would not think to blame the disk drive manufacturer. But, instead of taking the less expensive route of remaining quiet about the problem, Western Digital chose to offer replacement disk drives for all the disk drives that had the faulty chip. This action is an example of __________.

 

The entirely new food category Chobani launched in 2005 was

a.        Italian-style ragù sauce.

b.       Turkish-style cottage cheese.

c.        French-style yogurt.

d.       Greek-style yogurt.

e.        Oriental-style teriyaki sauce.

From its inception, where did Hamdi Ulukaya, the creator of Chobani, Inc., want to place Chobani yogurt?

a.        the organic foods section of major grocery store chains

b.       in warehouse club stores like Sam’s Club or Costco

c.        the dairy case of major grocery store chains

d.       in mass merchandise stores like Target

e.        in both independent organic cooperatives, farmer’s markets, and major organic grocery stores like Whole Foods or Sprouts

All of the following are marketing mix strategies that Chobani has used to sell its yogurt EXCEPT:

a.        develop a new yogurt product line for kids.

b.       price the Chobani yogurt line below its major competitors (Yoplait and Dannon) to increase sales and market share.

c.        use Facebook, YouTube, and other social media to promote Chobani yogurt.

d.       rely on “word-of-mouth to reach new customers.

e.        employ a spokesperson to open a yogurt bar.

Which of the following statements about marketing is MOST ACCURATE?

a.        Unless you take a marketing class, you will never truly know anything about marketing.

b.       Marketing is nothing more than common sense.

c.        Marketing requires an innate sense of creativity; you either have it or you don’t.

d.       You can call yourself a marketing expert only if you have sold something.

e.        You are already a marketing expert because as a consumer, you have already been involved in marketing decisions.

Mark Zuckerberg is a co-founder of the social networking website called __________.

a.        Pinterest

b.       Groupon

c.        LinkedIn

d.       Facebook

e.        Twitter

Initially, Facebook targeted which consumer market segment?

a.        grade school children ages 6 to 12 years old

b.       high school students

c.        college students

d.       adults with professional occupations

e.        senior adults 55 years and older

Mark Zuckerberg encountered unimaginable success with his launch of “TheFacebook.com” website from his college dorm room.  By the end of the second week, it had almost __________ members.

a.        100

b.       300

c.        500

d.       1,000

e.        5,000

__________ of all new businesses fail within five years of their launch.

a.        Only 5 percent

b.       Only 10 percent

c.        Only 25 percent

d.       About 40 percent

e.        Over 50 percent

More than half of all new businesses fail within __________ years of their launch.

a.        two

b.       three

c.        four

d.       five

e.        ten

Mark Zuckerberg ‘s launch of “TheFacebook.com” website became a huge success.  Yet, more than half of all new businesses fail within __________ years of their launch.

a.        two

b.       three

c.        four

d.       five

e.        ten

Marketing refers to

a.        the production of products or services that will generate the highest return on investment.

b.       the strategies used in the advertising and promotion of products and services to customers around the globe.

c.        the process of identifying target market segments for a product or service.

d.       the activity involved in getting a product or service from the manufacturer to ultimate consumers and organizational buyers.

e.        the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large.

The activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large is referred to as __________.

a.        manufacturing

b.       advertising

c.        marketing

d.       selling

e.        promotion

The combined American Marketing Association’s 2004 and 2007 definitions of marketing used in the textbook define marketing as

a.        the activity for creating, communicating, delivering, and exchanging offerings solely for the benefit of the organization’s stockholders.

b.       the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large.

c.        the activity for creating, communicating, delivering, and exchanging solely for the benefit of the organization’s employees.

d.       the activity for selling a product or service at the highest possible price.

e.        the activities of advertising, promoting, and selling products to the greatest number of profitable customers.

All of the following are true about marketing EXCEPT:

a.        Marketing is a broader activity than advertising.

b.       Marketing stresses the importance of delivering genuine benefits in the offerings of goods, services, and ideas sold to customers.

c.        Marketing persuades people to buy the “wrong” things.

d.       When an organization engages in marketing, all stakeholders should benefit.

e.        Marketing is a broader activity than personal selling.

An organization’s stockholders, its suppliers, its employees, its customers, and society at large all share what in common with regard to an organization?

a.        All are stakeholders and should benefit from the marketing of an organization’s offering.

b.       Everyone has a say in the ultimate design of a product.

c.        Everyone is legally culpable if something goes wrong with a product.

d.       All have to make some type of direct financial investment in the organization so it can profitably sell its products.

e.        All use the products and/or services marketed by the organization.

Which of the following statements about stakeholders is MOST ACCURATE?

a.        Ultimately, the only relevant stakeholder is the ultimate consumer.

b.       The suppliers, shareholders, employees, and customers are all stakeholders of an organization and all should benefit from the organization’s marketing activities.

c.        Employees can be stakeholders only if they own shares in their company.

d.       Suppliers are the most important stakeholders because without them, products could never be produced.

e.        The only way to be a stakeholder is to have a financial investment in an organization’s product, service, or idea.

Mizuno designs and sells high quality baseball gloves.  Who does NOT benefit from the firm’s marketing activities for its gloves?

a.        a baseball or softball player who purchases a new Mizuno glove

b.       the Sports Authority salesperson who sells a customer a Mizuno glove

c.        the supplier who provided the leather to Mizuno

d.       the shareholder of Mizuno that designs and manufactures the gloves

e.        all stakeholders should be benefit from Mizuno’s marketing efforts, even society at large

To serve both buyers and sellers, marketing seeks to __________ and satisfy the needs and wants of prospective customers.

a.        change

b.       create

c.        manipulate

d.       discover

e.        measure

To serve both buyers and sellers, marketing seeks to discover and __________ the needs and wants of prospective customers.

a.        change

b.       satisfy

c.        create

d.       manipulate

e.        preserve

Whether an individual is buying for personal or household use, or an organization is buying for its own use or for resale, the individual or organization would be considered

a.        a prospective customer.

b.       a dual-purpose marketing decision maker.

c.        a potential distributor.

d.       an informed buyer.

e.        an end-user.

A student wants to buy a smartphone so she can share pictures with her friends.  An insurance claims adjuster wants to buy a smartphone to document accidents (take pictures, write a report, etc.).  If they both purchase the same model smartphone, such as an Apple iPhone, which statement is MOST ACCURATE?

a.        The adjuster is a prospective customer because the smartphone will be used for work; the student is only a secondary user since the purpose of the smartphone is just for entertainment.

b.       Both the adjuster and the student are potential customers because in their own way, they both benefit from the smartphone.

c.        Neither the adjuster nor the student is a prospective customer since the company will pay for the adjuster’s smartphone and the student’s parents will pay for hers.

d.       The student is the prospective customer since there are more students buying smartphones for personal use than there are insurance adjusters buying smartphones for business use.

e.        Only a person who has bought a smartphone previously is a prospective customer because only previous owners of smartphones benefit from buying new ones.

 

The Terrafugia Transition (see the photo above) is a 19-foot, two-seater road-drivable, light-sport aircraft with an anticipated price of $279,000.  The MOST LIKELY prospective customers for this flying car would include

a.        students who attend college at least 500 miles away from home.

b.       retired seniors receiving social security.

c.        executives for whom time is extremely important.

d.       teens who like to try new things.

e.        families in need of a second vehicle.

In marketing, the idea of exchange refers to

a.        the negotiation phase between the manufacturer and the seller.

b.       the financial remuneration (monetary payment) for a product or service.

c.        the trade of things of value between buyer and seller so that each is better off after the trade.

d.       the bartering of products and services between non-governmental organizations or individuals.

e.        the practice of swapping products and services for other products and services rather than for money.

Marketing seeks to discover the needs and wants of prospective customers and satisfy them.  Essential to this process is the idea of exchange, which refers to

a.        the trade of things of value between buyer and seller so that each is better off after the trade.

b.       the negotiation phase between the manufacturer and the seller.

c.        the financial remuneration (monetary payment) for a product or service.

d.       the transport of tangible goods to new owners.

e.        the practice of swapping products and services for other products and services rather than for money.

The trade of things of value between buyer and seller so that each is better off after the trade is referred to as __________.

a.        financial remuneration

b.       exchange

c.        countertrade

d.       barter

e.        marketing

The American Red Cross created a series of advertisements to encourage people to donate blood.  After viewing an ad, Amanda went to the local Red Cross office and donated a pint of her blood.  Amanda returned home feeling happy that she had performed a good deed.  Did an exchange occur in a marketing sense?

a.        Yes, because the blood was donated to the Red Cross based on an advertisement, a marketing activity.

b.       Yes, because the donated blood was exchanged for a feeling of satisfaction.

c.        No, because the Red Cross is nonprofit organization.

d.       No, because no money changed hands.

e.        No, because the Red Cross, a service organization, did not provide Amanda with a product.

A church put advertisements in its weekly bulletins to encourage its members to participate in the services by telling a brief, positive story about how fellow members have helped them during times of need.  Jack volunteered and shared his story during a service.  Afterwards, he felt joyous.  Was this an exchange in a marketing sense?

a.        Yes, because the church ran an advertisement, a marketing activity.

b.       No, because the church is nonprofit organization and these actions are expected without any expectation of “exchange.”

c.        No, because no money was exchanged.

d.       Yes, because sharing his story at a service was exchanged for a feeling of joy.

e.        No, because the church did not provide Jack with a tangible product or service.

A local college of business offers an outstanding graduate business school education program.  Marissa pays the tuition to attend and earns her MBA with a concentration in marketing management.  Upon graduating, she is offered a high paying, fulfilling position.  Was this a marketing exchange?

a.        No, because the university earned a profit from Marissa’s tuition.

b.       No, because money was exchanged in the form of tuition and Marissa’s income will come from her employer, not the graduate school.

c.        No, because the school did not provide Marissa with a tangible product, only the potential of an education.

d.       Yes, because the university promised Marissa she would graduate on time, and she did.

e.        Yes, because paying tuition was exchanged for knowledge that directly led to Marissa’s high paying, fulfilling new job.

 

In Figure 1-2 above, “A” represents an organization’s alliances with

a.        suppliers.

b.       customers.

c.        shareholders.

d.       other departments.

e.        other organizations.

In Figure 1-2 above, “B” represents an organization’s partnerships with

a.        other organizations.

b.       suppliers.

c.        shareholders.

d.       customers.

e.        other departments.

In Figure 1-2 above, “C” represents an organization’s ownership with

a.        other organizations.

b.       suppliers.

c.        customers.

d.       other departments.

e.        shareholders.

In Figure 1-2 above, “D” represents an organization’s relationships with

a.        other organizations.

b.       suppliers.

c.        shareholders.

d.       customers.

e.        other departments.

In Figure 1-2 above, the center ring “E” in an organization consists of __________, which oversees the departments surrounding it.

a.        marketing.

b.       manufacturing.

c.        human resources.

d.       senior management.

e.        finance.

Which of the following statements about marketing activities is MOST ACCURATE?

a.        Marketing is affected by society but rarely, if ever, affects society as a whole.

b.       The marketing department works closely with other departments and employees to implement an organization’s marketing activities.

c.        Marketing activities are the sole responsibility of the marketing department; other departments are involved only if there is an emergency (such as a product recall).

d.       Environmental forces do not affect marketing activities as long as a firm closely monitors its environment through rigorous market research.

e.        Marketing is essentially developing the right product and convincing potential customers that they “need” it, not just “want” it.

All of the following are departments in a typical organization EXCEPT:

a.        finance.

b.       manufacturing.

c.        information systems.

d.       human resources.

e.        suppliers.

The __________ department of an organization is responsible for facilitating relationships, partnerships, and alliances with the organization’s customers, shareholders, suppliers, and other organizations.

a.        purchasing

b.       marketing

c.        human resources

d.       accounting

e.        information systems

The marketing department of an organization is responsible for facilitating __________.

a.        relationships, partnerships, and alliances with the organization’s customers, shareholders, suppliers, and other organizations

b.       healthy competition with other product manufacturers

c.        financial contracts with banks and other lending institutions

d.       alliances with firms with non-competitive products that target similar markets

e.        the coordination between the various departments within the entire firm

Which of the following statements about marketing departments is MOST ACCURATE?

a.        The marketing department should work solely with people within its own department.

b.       The marketing department should suggest where a firm should invest its money based on its knowledge of the market and environmental forces.

c.        The marketing department is only responsible for the 4 Ps, not the 7 Ps.

d.       The marketing department is only responsible for market research, supervision of product development, and product promotion.

e.        The marketing department must work closely with a network of other departments and employees to help provide the customer-satisfying products required for the organization to survive and prosper.

All of the following are environmental forces that affect an organization EXCEPT:

a.        economic

b.       geographical

c.        social

d.       regulatory

e.        technological

Which of the following is NOT an environmental force?

a.        economic

b.       regulatory

c.        social

d.       commercial

e.        technological

Which of the following statements about marketing activities is MOST ACCURATE?

a.        Marketing is affected by society but rarely, if ever, affects society as a whole.

b.       The marketing department works closely with other departments and employees to implement marketing activities.

c.        Marketing activities are the sole responsibility of the marketing department; other departments are involved only if there is an emergency (such as a product recall).

d.       Environmental forces do not affect marketing activities as long as a firm closely monitors its environment through rigorous market research.

e.        Marketing, after all is said and done, is essentially developing the right product and convincing potential customers that they “need” it, not just “want it.”

All of the following are factors required for marketing to occur EXCEPT:

a.        a desire and ability on the part of two or more parties (individuals or organizations) to be satisfied.

b.       something to exchange between two or more parties (individuals or organizations).

c.        two or more parties (individuals or organizations) with the same wants.

d.       two or more parties (individuals or organizations) with unsatisfied needs.

e.        a way for the parties (individuals or organizations) to communicate.

Four factors are required for marketing to occur: (1) __________; (2) a desire and ability of parties to be satisfied; (3) a way for the parties to communicate; and (4) something to exchange.

a.        a healthy competitive environment

b.       an affordable and actionable advertising campaign

c.        a sense of social responsibility

d.       an ability to see hidden potential within an environmental force

e.        two or more parties (individuals or organizations) with unsatisfied needs

Four factors are required for marketing to occur: (1) two or more parties (individuals or organizations) with unsatisfied needs; (2) __________; (3) a way for the parties to communicate; and (4) something to exchange.

a.        a healthy competitive environment

b.       government approval

c.        an affordable and actionable advertising campaign

d.       a desire and ability on their part to be satisfied

e.        an ability to see hidden potential within an environmental force

Four factors are required for marketing to occur: (1) two or more parties (individuals or organizations) with unsatisfied needs; (2) a desire and ability on their part to be satisfied; (3) __________; and (4) something to exchange.

a.        a way for the parties to communicate

b.       a healthy competitive environment

c.        an affordable and actionable advertising campaign

d.       a sense of social responsibility

e.        an ability to see hidden potential within an environmental force

Four factors are required for marketing to occur: (1) two or more parties (individuals or organizations) with unsatisfied needs; (2) a desire and ability on their part to be satisfied; (3) a way for the parties to communicate; and (4) __________.

a.        an affordable and actionable advertising campaign

b.       something to exchange

c.        a healthy competitive environment

d.       government approval

e.        an ability to see hidden potential within an environmental force

Which of the following conditions are necessary for marketing to occur?

a.        two or more people, a method of assessing needs, a way to communicate, and an exchange

b.       two or more people, a product, a reasonable price, and a place to make an exchange

c.        a quality product, a fair price, a clever method of promotion, and a place where a customer can buy the product

d.       two or more parties with unsatisfied needs, a desire and an ability to satisfy them, a way to communicate, and something to exchange

e.        an ability to see a hidden trend within an environmental force, a product, and an affordable and actionable advertising campaign

A business student is preparing for the Graduate Management Admission Test (GMAT) so he can get into a good graduate business school.  He knows that any money he spends on a tutor will be well worth it if he can improve his scores.  He’s heard that there is a great tutor in his local community but has no idea who she is.  To ensure that marketing occurs with her, he should

a.        buy a GMAT study guide at his college bookstore.

b.       find out what the minimum score he needs to get into the graduate business school of his choice.

c.        attempt to find the tutor by conducting a Google search for her website, looking for flyers in the students’ business lounge, obtaining copies of the college newspaper paper and looking for her ad, or asking his friends whether they know of her and her tutoring services.

d.       consider alternatives to graduate school in case the scores he receives by taking the test without any help are not sufficient admission.

e.        apply for delayed admission if he can’t find this tutor.

For marketing to occur, there must be two or more parties with unsatisfied needs.  Dr. Pepper Snapple Group distributes Country Time lemonade in cans through supermarkets at a price comparable to that of soft drinks.  The most likely “second” party needed for marketing to occur would be

a.        people who are nostalgic about childhood lemonade stands they had during hot summers.

b.       people with a desire for a beverage other than soda or water.

c.        product demonstrators who offer samples of Country Time lemonade to shoppers at local supermarkets.

d.       a local distributor of alcoholic beverages.

e.        a nutritionist promoting the benefits of fresh fruit in people’s diets.

A student would like to buy cross-over SUV from a local dealer, but she thinks the payments will be too high.  Marketing does not occur in this situation because

a.        two or more parties have unsatisfied needs.

b.       there is no desire on the part of either party to satisfy its needs.

c.        one of the involved parties does not have the ability to satisfy its needs.

d.       there is no way for each party to communicate with one another.

e.        there has been no assessment of consumer wants and needs.

A college student is taking a full course load, working 20 hours per week, and still has to take out a student loan to cover tuition.  One day, he sees a classmate driving a new Lexus LFA sports coupe (price: $375,000) and feels he just has to have one for himself.  What factor is MOST LIKELY to prevent a successful marketing exchange between the student and the local Lexus dealer located in an affluent suburb about 20 miles from his university?

a.        The local Lexus dealer only has one Lexus LFA sports coupe in stock—red, which is the color he wants.

b.       The student does not have the resources to qualify for a $375,000 auto loan.

c.        Although the Lexus LFA sports coupe is a great car, there may be other cars with better gas mileage and resale value.

d.       He’s afraid that if someone at school sees him with the car, he might lose his student loan.

e.        His girlfriend wants him to drive a Kia Soul.

A local candidate running for office would very much like to have your vote.  She promises that she will “make the country better.”  Because all candidates for public office say this, you decide not to vote for her.  Marketing will not occur in this situation because __________.

a.        marketing doesn’t apply to the voting process

b.       the desire and ability to satisfy needs is missing

c.        there is no direct way for the parties to communicate

d.       something to exchange is missing

e.        there is only one party involved in this situation

The Arizona Biltmore in Phoenix is a resort hotel located less than a mile away from the Biltmore Fashion Park, a large upscale shopping mall.  The hotel wants to promote its proximity to the shopping center as well as its many other amenities to convention-goers from other states.  Which of the following marketing actions would MOST LIKELY help The Arizona Biltmore communicate with potential convention attendees?

a.        Place an ad in the in-flight magazines of all the major airlines targeting business/first class flyers.

b.       Send a mass mailing to all local businesses.

c.        Set up information kiosks at several locations within the Biltmore Fashion Park.

d.       Offer free made-to-order breakfasts for guests staying at the hotel on business.

e.        Offer special discount rates to guests coming from the East Coast.

A farmhand would like to buy a moped scooter to commute to his job at a nearby ranch.  He doesn’t know how to find a dealer though, and doesn’t have Internet access.  Which of the following reasons explain why marketing fails to occur here?

a.        There are not two or more parties with unsatisfied needs.

b.       A desire to satisfy a need is missing.

c.        No assessments of consumer wants and needs have been made.

d.       There is no way for the parties involved to communicate.

e.        The ability to satisfy a need is missing.

 

Suppose you want a snack after taking this exam—a Pan Pizza from Dominos, which is located across the street from your College of Business classroom.  Unfortunately, you forgot your wallet in the haste of getting to class on time to take the test.  Therefore, you have no means to pay for the pizza.  Which of the following reasons explain why marketing fails to occur here between you and Dominos?

a.        There are not two or more parties with unsatisfied needs.

b.       The ability to satisfy a need is missing.

c.        A desire to satisfy a need is missing.

d.       No assessments of consumer wants and needs have been made.

e.        There is no way for the parties involved to communicate.

The two central concerns of marketing are __________.

a.        increasing market share and making profits

b.       holding down costs while increasing profits

c.        developing products and finding suppliers

d.       discovering and satisfying consumer needs

e.        practicing ethics and sustainability

The first objective in marketing is to discover consumers’ __________.

a.        diversity of opinion to create advertising messages

b.       income to determine the most lucrative price point for a product

c.        lifetime value of an offering to the organization

d.       characteristics that would be useful to segment markets

e.        needs to create products that could satisfy them

Marketing discovers consumer needs by

a.        implementing a marketing program.

b.       conducting effective marketing research.

c.        balancing the marketing mix elements—the 4 Ps of the marketing program.

d.       advertising to diverse groups of prospective buyers.

e.        copying the products and services of competitors.

New-product experts generally estimate that up to __________ percent of the more than 40,000 new consumable products introduced in the United States annually “don’t succeed in the long run.”

a.        33

b.       50

c.        67

d.       75

e.        94

To avoid new-product failure, new-product expert Robert M. McMath suggests

a.        implementing a regional rather than a nationwide rollout of a new product.

b.       building a hierarchical organizational structure so that more people have a chance to spot product problems.

c.        focusing on customer benefits and learning from the past.

d.       increasing the marketing budget, since “success comes to those who can outspend the competition.”

e.        releasing several different versions of a new product at the same time to see which one is most successful.

If you followed the suggestions of Robert M. McMath, which of the following provides the best advice for a marketer, such as Colgate, when launching a new consumer product, such as toothpaste?

a.        Anticipate the future five years out in terms of product form, ingredients, and packaging—to invent the “toothpaste of tomorrow!”

b.       Give the product a mysterious name that is unrelated the product’s benefits but provokes consumer curiosity.

c.        Initiate a Facebook campaign against beverages sweetened with high fructose corn syrup, which can contribute to tooth decay.

d.       Create unusual packaging that has special shelving requirements.

e.        Study past toothpaste product failures and learn from them.

A factor that might doom a product in the marketplace is referred to as a(n) __________.

a.        albatross

b.       land mine

c.        pit fall

d.       showstopper

e.        wild card

Showstoppers refer to

a.        creative or innovative members of a marketing team.

b.       unexpected alternative uses for a product that result in a sudden increase in sales.

c.        factors that might doom a product in the marketplace.

d.       a sudden loss of financial backing even though the item is in production.

e.        a situation when a competitor’s product suddenly beats a firm’s new product to the marketplace.

Which of the following products mentioned in Chapter 1 of the textbook failed in the marketplace?

a.        Terrafugia Transition

b.       Pepsi Next

c.        Bell bicycle helmet

d.       3M Post-it Flag+ Highlighter

e.        Dr. Care toothpaste

 

The Terrafugia Transition (see the photo above) is a flying car with an anticipated price of $279,000.  A potential showstopper for this product is likely to be

a.        concern about damage caused in a small on-road fender bender might make it dangerous to fly.

b.       a lack of marketing towards retired seniors.

c.        the efficiency of commuting for corporate executives.

d.       the availability of flight instruction for licensed drivers.

e.        a very poor product warranty.

 

Pepsi Next (see the photo above) is a “mid-calorie soft drink targeted at consumers who want both taste and low calories.  A potential showstopper for this product is likely to be its

a.        lack of advertising on television.

b.       association with similar mid-/low-calorie soft drinks that have failed in the recent past, such as Pepsi Edge and Coca Cola C2.

c.        lower profit margin due the added costs of three artificial sweetener ingredients.

d.       cannibalization of Diet Pepsi, which has a much larger market share.

e.        use of sucrose instead of high fructose corn sugar, which tastes more like sugar.

A __________ occurs when a person feels deprived of basic necessities such as food, clothing, and shelter.

a.        desire

b.       need

c.        utility

d.       want

e.        craving

A need refers to

a.        a sense of personal inadequacy based upon observations by others around you.

b.       a sense of urgency, which causes a person to take action.

c.        a feeling that is shaped by a person’s knowledge, culture, or personality.

d.       a feeling of being deprived of something, but not fully understanding what it may be.

e.        a situation when a person feels deprived of basic necessities such as food, clothing, and shelter.

All of the following are examples of products or services that satisfy a consumer need EXCEPT:

a.        a pair of jeans.

b.       an apple.

c.        a student dormitory.

d.       a sports car.

e.        a jacket.

A __________ is a need that is shaped by a person’s knowledge, culture, and personality.

a.        desire

b.       feeling

c.        utility

d.       want

e.        craving

A want refers to

a.        a sense of personal inadequacy based upon observations by others around you.

b.       a powerful desire that causes a person to take action.

c.        a need that is shaped by a person’s knowledge, culture, or personality.

d.       a feeling of being deprived of something, but not fully understanding what it may be.

e.        a situation when a person feels deprived of basic necessities such as food, clothing, and shelter.

Which of the following statements best distinguishes between consumer needs and wants?

a.        Needs are far more influential than wants with respect to marketing decision making.

b.       Wants affect marketing decisions primarily for planned purchases while needs affect marketing decisions primarily for impulse purchases.

c.        Wants occur when a person feels deprived of basic necessities such as food, clothing, and shelter while needs are determined by a person’s knowledge, culture, or personality.

d.       Needs occur when a person feels deprived of basic necessities such as food, clothing, and shelter while wants are determined by a person’s knowledge, culture, or personality.

e.        Needs and wants are psychologically the same.

 

A television advertisement shows several teenagers searching through the refrigerator for something to satisfy their hunger.  The refrigerator offers the teenagers many alternatives—celery, bologna, cottage cheese, and box of Hot Pockets Bacon Cheddar Cheese Melt sandwiches (see the photo above).  The ad, which shows the teens happily selecting the Hot Pockets sandwiches, appeals to the consumers’ __________ for sustenance to satisfy their hunger and attempts to shape their __________ for the advertised product.

a.        needs; wants

b.       wants; needs

c.        wants; cravings

d.       cravings; needs

e.        needs; preferences

 

In Figure 1-3 above, “A” represents __________ and “B” represents __________.

a.        decisions by management; purchases by customers

b.       employees efforts; stakeholder rewards

c.        sales department; manufacturing department

d.       suppliers; distributors

e.        discovering consumer needs; satisfying consumer needs

In Figure 1-3 above, “B” is accomplished by __________.

a.        designing a marketing program

b.       conducting marketing research

c.        discovering consumer needs

d.       developing a distribution strategy

e.        identifying target markets

People with both the desire and ability to buy a specific offering are referred to as [a(n)] __________.

a.        shoppers

b.       customer base

c.        market

d.       bazaar

e.        emporium

In a marketing context, a market refers to

a.        people with a similar want for a particular product or service.

b.       people with both the desire and ability to buy a specific offering.

c.        the central location for all buying and selling of products and services.

d.       an open space or covered building where vendors convene to sell their offerings.

e.        the free the operation of supply and demand.

All markets ultimately are composed of __________.

a.        people

b.       brands

c.        products

d.       organizations

e.        governments

The most likely market for cosmetic dentistry, where costs can be as much as $15,000 for teeth straightening and whitening, is

a.        toddlers with crooked baby teeth, when crooked teeth run in the family.

b.       all former smokers who have been smoke free for at least one year.

c.        anyone who has the time, the money, and the desire to undergo the procedures.

d.       anyone who has dental insurance.

e.        adults who want to make a good first impression for a job interview.

A target market refers to

a.        people who could purchase a product regardless of who ultimately uses it.

b.       one or more specific groups of potential consumers toward which an organization directs its marketing program.

c.        former customers who now use competitors’ products.

d.       the cluster of benefits that an organization develops to satisfy consumers’ needs.

e.        people with both the desire and the ability to buy a specific offering.

A target market refers to

a.        customers who have already purchased a firm’s product at least once, have been satisfied, and are likely to be repeat purchasers.

b.       both existing and potential customers who have used a competitor’s product, are dissatisfied, and who now seek a different product or service to satisfy their needs.

c.        a specific group of current consumers toward which an organization directs its advertising.

d.       one or more specific groups of potential consumers who are seeking a product for which there are no current substitutes.

e.        one or more specific groups of potential consumers toward which an organization directs its marketing program.

One or more specific groups of potential consumers toward which an organization directs its marketing program is referred to as a

a.        mass market.

b.       tangential market.

c.        potential market.

d.       target market.

e.        promotional market.

Kraft produces Lunchables, a prepackaged meal usually consisting of several crackers, small slices of meat, and small slices of cheese.  Other items in the product line contain small bottles of Chiquita Strawberry Banana Fruit smoothie, Capri-Sun juice, or Kool-Aid.  The box is bright yellow and the quantity of food contained within it is small.  The target market for Kraft Lunchables is MOST LIKELY:

a.        moms with school-age children who pack a simple healthy lunch for them.

b.       business people looking for a fulfilling breakfast at the office.

c.        business travelers on the run.

d.       teenagers who are hungry for an after-school snack.

e.        baby boomers who are trying to lose weight.

Which of the following people would MOST LIKELY be the best target market for tickets to the home games of the Indianapolis Colts professional football team?

a.        all people with an interest in professional football

b.       all people in the Midwest who have an interest in sports

c.        all men who played on a varsity football team in high school

d.       all people in the Indianapolis and surrounding areas interested in football

e.        all people in Indiana who watch football on TV

Which of the following groups would be the LEAST LIKELY target market for a company producing canned food in single serving sizes?

a.        single adults

b.       school kitchens

c.        campers

d.       senior citizens

e.        vending machine owners

TUMI brand briefcases are very expensive, high-end briefcases that are generally sold in specialty luggage shops.  Which of the following groups of people would be the MOST LIKELY target market for TUMI brand briefcases?

a.        police officers

b.       executives

c.        construction workers

d.       postal workers

e.        students

The United States Army recently has been both praised and criticized for its use of a popular video game, America’s Army, which is designed to reach potential recruits.  The game’s creator, Colonel Casey Wardynski, wanted to provide a sense of the training and teamwork one could find in the Army’s military environment.  The game is designed for “boys 14 years or older,” which represent the Army’s __________.

a.        mass market

b.       actual recruits

c.        restricted market

d.       target market

e.        untapped market

A local university offers business courses for a specific target market composed of people who currently work and want to take refresher courses to obtain certification in their chosen business field (marketing, accounting, etc.).  Which of the following would be the most effective way to communicate with the target market, bearing in mind that communication must be both effective and economical?

a.        put announcements on campus bulletin boards

b.       distribute promotional materials during classes

c.        advertise on national television

d.       advertise on local hip-hop radio shows

e.        advertise in the local newspaper

The four Ps are commonly known as

a.        the environmental or uncontrollable forces.

b.       the environmental or controllable factors.

c.        the marketing mix or controllable factors.

d.       the marketing mix or uncontrollable forces.

e.        predict, produce, package, and persuade.

The marketing manager’s controllable factors—product, price, promotion, and place—that can be used to solve a marketing problem are referred to as (the) __________.

a.        marketing concept

b.       marketing mix

c.        marketing program

d.       environmental forces

e.        marketing toolbox

The marketing mix refers to

a.        the selection of product benefits and attributes that are to be added to or subtracted from a given product to create variations within a product line.

b.       the specific ratio within a budget that divides resources between advertising, sales promotion, and personal selling.

c.        the marketing manager’s controllable factors—product, price, promotion, and place—that can be used to solve a marketing problem.

d.       the allocation of resources within a firm towards individual marketing programs.

e.        the environmental forces—social, economic, technological, competitive, and regulatory—that impact the marketing decisions for a particular product at any given time.

The marketing mix refers to

a.        the multiple sales and advertising strategies that can be used to promote a product.

b.       the controllable forces—social, economic, technological, competitive, and regulatory—to which a marketing manager must constantly adapt.

c.        the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online.

d.       the marketing manager’s controllable factors that can be used to solve marketing problems.

e.        a set of complementary products that when sold together generate more sales than when sold separately.

Which of the following would a marketer use as a synonym for controllable marketing mix factors?

a.        the four Ps of marketing

b.       environmental forces

c.        macromarketing forces

d.       marketing management factors

e.        micromarketing factors

The four Ps of the marketing mix are

a.        priorities, personnel, placement, and profits.

b.       prediction, production, pricing, and promotion.

c.        product, price, production, and place.

d.       product, price, promotion, and place.

e.        predict, produce, package, and persuade.

All of the following constitute the “4 Ps” of the marketing mix EXCEPT:

a.        promotion.

b.       profitability.

c.        price.

d.       place.

e.        product.

The four Ps are commonly known as

a.        the environmental or uncontrollable forces.

b.       the environmental or controllable factors.

c.        the marketing mix or controllable factors.

d.       the marketing mix or uncontrollable forces.

e.        predict, produce, package, and persuade.

The marketing mix elements are called __________ because they are the responsibility of the marketing department in an organization.

a.        uncontrollable forces

b.       profitability factors

c.        stakeholder value generators

d.       target market segments

e.        controllable factors

Jakubowski Farms Gourmet Bread Base is the brand name for a mix designed for use in bread making machines.  The mixes are sold in 2-pound canisters for $14.99 plus postage.  The products are only available through the mail.  People learn about the product through word-of-mouth and bread machine demonstrations the company’s founder gives to groups in Wisconsin where she lives.  This is a description of the company’s

a.        action plan.

b.       market segmentation strategy.

c.        mission statement.

d.       marketing mix.

e.        target market.

The element of the marketing mix that describes a good, service, or idea to satisfy consumers’ needs is known as

a.        a product.

b.       the price.

c.        promotion.

d.       the place or distribution.

e.        a market segment.

The owners of Old School Brand Authentic Antique Foods researched Civil War records to come up with recipes used in the old-fashioned cookies the company produces and markets.  This statement deals with which part of the marketing mix?

a.        process

b.       price

c.        product

d.       place

e.        people

The element of the marketing mix that describes what is exchanged for a product is known as

a.        a product.

b.       the price.

c.        promotion.

d.       the place or distribution.

e.        productivity.

Which element of the marketing mix is demonstrated when Mars, Inc. has a sale on M&MS® brand candies?

a.        product

b.       price

c.        promotion

d.       place

e.        production

The element of the marketing mix demonstrated when an art gallery suggests a $2.00 donation at the door is __________.

a.        philanthropy

b.       place

c.        product

d.       promotion

e.        price

To attend a winter concert presented by the community chorus, every person had to donate one unwrapped toy at the concert hall door.  This statement is most closely related to the __________ element of the marketing mix.

a.        product

b.       philanthropy

c.        price

d.       place

e.        promotion

The element of the marketing mix that describes a means of communication between the seller and buyer is known as

a.        a product.

b.       promotion.

c.        the price.

d.       the place or distribution.

e.        advertising.

The owners of Old School Brand Authentic Antique Foods researched Civil War records to come up with recipes for the old-fashioned products they market.  Concern about the __________ element of the marketing mix would make them eager to be featured in an upcoming edition of Taste of Home magazine.

a.        product

b.       price

c.        production

d.       promotion

e.        place

The __________ element of the marketing mix is demonstrated when a company places an ad in the Yellow Pages.

a.        product

b.       price

c.        promotion

d.       place

e.        process

When a company places an ad on Google, the action is a tactic of the __________ element of the marketing mix.

a.        product

b.       price

c.        promotion

d.       place

e.        process

The element of the marketing mix that describes a means of getting the product to the consumer is known as

a.        a product.

b.       the price.

c.        promotion.

d.       the place or distribution.

e.        transportation.

The __________ element of the marketing mix is demonstrated when a newspaper carrier throws a paper on the customer’s front porch.

a.        place

b.       product

c.        price

d.       promotion

e.        procurement

The ability to buy a soda from a vending machine demonstrates which element of the marketing mix?

a.        product

b.       price

c.        promotion

d.       place

e.        process

The cluster of benefits that an organization promises customers to satisfy their needs is referred to as a(n) __________.

a.        core benefit proposal

b.       product protocol

c.        marketing program

d.       marketing mix

e.        customer value proposition

A customer value proposition is

a.        the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.

b.       a statement that, before product development begins, identifies (1) a well-defined target market; (2) specific customers’ needs, wants, and preferences; and (3) what the product will be and do to satisfy consumers.

c.        a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation.

d.       the characteristics of a product that make it superior to competitive substitutes.

e.        the cluster of benefits that an organization promises customers to satisfy their needs.

Michelin’s __________ can be summed up as “providing safety-conscious parents greater security in tires at a premium price.”

a.        customer value proposition

b.       protocol

c.        mission statement

d.       core values

e.        marketing program

The uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces are referred to as __________.

a.        the 5 Fs of marketing

b.       environmental forces

c.        business conditions

d.       a marketing ecosystem

e.        a business sphere

Which of the following is NOT an environmental force?

a.        technological

b.       regulatory

c.        ecological

d.       competitive

e.        economic

Environmental forces refer to

a.        the internal strengths of a company that enable the firm to remain competitive.

b.       the marketing manager’s uncontrollable factors—product, price, promotion, and place—that can be used to solve marketing problems.

c.        the unpredictable or uncontrollable availability of natural resources that can enhance or restrain a company’s growth.

d.       the marketing manager’s uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces.

e.        the marketing manager’s controllable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces.

The five major environmental forces in a marketing decision are

a.        climate change, natural resources, pollution, natural disasters, and global conflict (war).

b.       social, technological, economic, competitive, and regulatory.

c.        corporate ownership, internal management, supplier partnerships, strategic alliances, and customer relationships.

d.       product, price, promotion, place, and people.

e.        ethics, sustainability, cultural awareness, diversity, and values.

Which of the following statements about environmental forces is MOST ACCURATE?

a.        Environmental forces are almost always controllable if the marketing department correctly scans them.

b.       An organization that incorporates the marketing concept can exert just as much influence on environmental forces as they can exert on that organization.

c.        Environmental forces consistently result in negative outcomes for an organization.

d.       Some environmental forces can actually enhance a firm’s marketing opportunities.

e.        Environmental forces can almost always be predicted.

Which of the following statements describes an environmental force?

a.        Several states have legislation that requires people transporting children to use age- and height-appropriate car seats.

b.       Tupperware has more than 200,000 independent dealers who market its entire product line.

c.        A car battery comes with a lifetime guarantee.

d.       An automobile dealer offers a $500 rebate during the month of July.

e.        A major bottler offers a 10-cent refund on returnable bottles.

Local newspaper readership has declined significantly in recent years.  Not only are traditional newspapers losing subscribers, they are also losing advertisers.  To combat these trends, many newspaper publishers now offer online versions of their printed newspapers.  This is MOST LIKELY a response to which environmental force?

a.        economic, since few can afford a newspaper today

b.       competitive, resulting from new, smaller local newspapers that are flourishing

c.        technological, since high-speed printing presses have become more easy to use

d.       social, resulting from changing consumer preferences for information delivered online

e.        regulatory, since the government provides tax incentives for paper-based products

A growing trend to “Buy American” has caused U.S. automakers to increase political pressure on Washington to pass legislation for more restrictive quotas on Japanese car imports.  In addition, a decline in the value of the U.S. dollar would be instrumental in Toyota’s decision to build a manufacturing plant in the United States instead of continuing to export cars from Japan.  If Toyota builds the plant, its decision would reflect

a.        a reactive strategy that would impact the competitive environmental force.

b.       a proactive maneuver to manipulate and impact the social environmental force.

c.        a positive result from regulatory and economic environmental forces.

d.       a positive response to a technological environmental force.

e.        a negative impact as a result of adverse competitive, regulatory, and technological environmental forces.

Many large consulting firms are beginning to sponsor “women-only” networking events.  The purpose of these events is to offer an opportunity for women in management to network with other businesswomen, either as clients, mentors, or protégés.  This is an example of which environmental force?

a.        social

b.       economic

c.        technological

d.       competitive

e.        regulatory

With today’s smartphones, one can watch the news, shoot videos, browse the Internet, take pictures, and listen to music.  Improved new features are added with each smartphone introduced by Apple, Samsung, BlackBerry, and the like.  As a result, existing customers often want to replace their existing smartphones with new models or brands every two years when their contracts expire.  This increase in demand is due mostly to changes in __________, an environmental force.

a.        competition

b.       social culture

c.        technology

d.       regulations

e.        the economy

Pending federal legislation will require all online retailers to collect state sales taxes from customers.  This would affect online sellers such as Virtual Vineyards, which now only collects state sales taxes from customers who reside in California—its home state.  This pending legislation would be an example of which environmental force?

a.        social

b.       economic

c.        technological

d.       competitive

e.        regulatory

The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price is called

a.        customer value.

b.       target marketing.

c.        benefit proposition.

d.       value-based marketing.

e.        a customer value proposition.

Customer value refers to

a.        the need of  a customer to receive the highest quality product at the lowest possible price.

b.       the least expensive product that will provide it with most of the basic benefits.

c.        a statement that, before product development begins, identifies (1) a well-defined target market; (2) specific customers’ needs, wants, and preferences; and (3) what the product will be and do to satisfy consumers.

d.       the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.

e.        the cluster of benefits that an organization promises customers to satisfy their needs.

Which of the following statements about customer value is MOST ACCURATE?

a.        Target customers assess customer value in terms of the combination of benefits (quality, convenience, etc.), regardless of the price.

b.       Loyal customers are less profitable to firms in the long run since they expect lower prices over time in order to remain loyal.

c.        Research suggests that firms can be most successful by being all things to all consumers.

d.       It is impossible to place a dollar value on a loyal, satisfied customer.

e.        To create value for targeted buyers, firms must build long-term relationships with them.

 

 

As shown in the ad above, Target has been successful by offering consumers the best

a.        experience.

b.       products/services.

c.        customer service.

d.       availability.

e.        price.

According to the textbook, Starbucks provides its customers with the best

a.        branding.

b.       products/services.

c.        price.

d.       customer service.

e.        availability.

 

 

What customer value strategy does Starbucks Coffee Company deliver to its customers when it offers them its Starbucks Via Ready Brew Refreshers?

a.        best product/service

b.       best customer service

c.        best value

d.       best assortment

e.        best price

According to the textbook, U.S. Bank delivers customer value by providing its customers with the best

a.        assortment.

b.       products/services.

c.        price.

d.       customer service.

e.        availability.

 

 

As shown in the ad above, U.S. Bank delivers customer value by providing its customers with the best

a.        assortment.

b.       products/services.

c.        price.

d.       customer service.

e.        availability.

Those who have flown on Singapore Air have experienced firsthand the great food that is served during the flight, the friendliness of the flight attendants, and the comfortable seating.  Singapore Air creates customer value by providing its customers with

a.        the best airport experience.

b.       the most convenient flight schedules.

c.        the best price for the distance traveled.

d.       the best in-flight service.

e.        the greatest sense of personal safety.

Relationship marketing refers to

a.        the selection and the assignment of a firm’s personnel for a specific product or product line to a group of current or prospective customers.

b.       the belief that it is easier and less expensive to find new customers than to retain old ones.

c.        the linking of the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits.

d.       the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace.

e.        exclusive legally binding contractual agreements between retailers and customers in order to create enhanced value for each party.

The linking of the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit is referred to as

a.        relationship marketing.

b.       exclusive dealing.

c.        loyalty marketing.

d.       customer relationship management.

e.        symbiotic marketing.

Which of the following statements about relationship marketing is MOST ACCURATE?

a.        Relationship marketing has a short-term focus: increasing profits for the firm.

b.       Relationship marketing begins before and ends after the sale.

c.        Relationship marketing occurs when there is a personal, ongoing relationship between an organization and its customers.

d.       Very few companies today are engaged in relationship marketing.

e.        The Internet has allowed marketers to establish more personal relationships with customers.

In the nonprofit world of the performing arts, box office technology has essentially remained the same since the 1980s.  A company called Tessitura is trying to change that.  Tessitura is able to track every transaction with its patrons in one database.  The information collected includes ticket purchases, fund-raising, volunteering, and gift shop purchases that will help symphonies, operas, and theaters develop customer profiles in order to tailor their sales messages to specific individuals.  In other words, Tessitura will allow arts groups to engage in

a.        market aggregation.

b.       relationship marketing.

c.        societal marketing.

d.       market mining.

e.        mainstream marketing.

Publix Supermarkets and The Little Clinic signed an exclusive agreement, placing small walk-in health clinics inside selected stores.  Publix customers can have simple medical needs addressed in a convenient and familiar environment seven days a week and pick up their prescriptions from the pharmacy without leaving the store.  This is an example of

a.        supplier management.

b.       customer valuation.

c.        societal marketing.

d.       market aggregation.

e.        relationship marketing.

A business traveler joined the Starwood Preferred Guest Program in order to earn points each time he stayed overnight in a Westin or Sheraton hotel.  Once he has accumulated enough points, he can trade his points in for a free night’s stay.  As a member of this program, the traveler receives periodic updates on new hotels and learns of ways to earn additional points.  The marketing term that best describes this scenario is

a.        relationship marketing.

b.       customer satisfaction promotion.

c.        customer relationship management.

d.       customer valuation.

e.        supplier-consumer partnership.

A marketing program refers to

a.        a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.

b.       the selection of product benefits and attributes that are added to or subtracted from a given product to create variations within a product line.

c.        the marketing manager’s controllable factors—product, price, promotion, and place—that can be used to solve a marketing problem.

d.       the specific ratio within a marketing budget that divides resources between advertising, promotions, and personal selling.

e.        the allocation of resources within a firm towards individual marketing mix elements.

A __________ is a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.

a.        marketing strategy

b.       marketing program

c.        macromarketing tactic

d.       micromarketing tactic

e.        customer relationship management

After an assessment of needs, a marketing manager must translate ideas from consumers into concepts for products that a firm may develop.  The concepts must then be converted into a tangible

a.        marketing strategy.

b.       macromarketing agenda.

c.        micromarketing agenda.

d.       marketing program.

e.        marketing concept.

Market segments refer to

a.        the relatively heterogeneous groups of prospective buyers that result from the market segmentation process.

b.       all buyers of a product or service who have previously purchased a particular firm’s products or services and who intend to repeat that purchase sometime in the future.

c.        the smallest number of buyers that have similar needs but do not react similarly in a buying situation.

d.       the relatively homogenous groups of prospective buyers that (1) have common needs and (2) will respond similarly to a marketing action.

e.        all potential buyers of a product or service who intend to purchase a firm’s products or services but who have not yet done so.

The relatively homogenous groups of prospective buyers that (1) have common needs and (2) will respond similarly to a marketing action is referred to as a(n) __________.

a.        market segment

b.       target market

c.        customer base

d.       ultimate consumer

e.        preferred customer

The phrase “relatively homogeneous collections of prospective buyers” is most descriptive of

a.        demographic clusters.

b.       organizational buyers.

c.        ultimate consumers.

d.       market segments.

e.        qualified prospects.

In marketing, each __________ consists of people who are relatively similar to each other in terms of their consumption behavior.

a.        market segment

b.       demographic cluster

c.        organizational buyer group

d.       ultimate consumer group

e.        qualified prospect group

An inventor for 3M, David Windorski questioned dozens of students about how they study.  They told him

a.        that Scotch tape had outgrown its usefulness to students.

b.       to make new products that have higher quality.

c.        that the average backpack was already too heavy.

d.       that it would be reasonable to put Post-it® Flags together with a highlighter.

e.        to determine the ratio of 3M products to study aid products of other competitors.

The purpose of the introduction of 3M Post-it® Flag Highlighters was to

a.        stay ahead of trends and focus its marketing program on only one segment.

b.       stay ahead of trends and focus its marketing program on two mutually inclusive segments.

c.        increase production economies of scale by reducing manufacturing and marketing costs for Post-it® Flags and Post-it® Notes.

d.       preempt a competitive move by Sanford’s Sharpie to introduce a similar product.

e.        help college students with their studying.

Which of the following statements about 3M’s marketing program for Post-it® Flag Highlighters is MOST ACCURATE?

a.        In his first attempt, David Windorski, a 3M inventor, designed the Post-it® Flag Highlighter in exactly the right way to appeal to its target market.

b.       Paralegals were initially the intended target market for the Post-it® Flag Highlighter.

c.        David Windorski, a 3M inventor, also developed the Post-it® Flag Pen for the office worker segment.

d.       The Post-it® Flag Highlighter was not successful and was deleted from the Post-it® Flag product line.

e.        In his development of the Post-it® Flag Highlighter, David Windorski examined similar products of 3M’s major competitors and simply made changes that would provide the “WOW” factor.

3M’s pricing strategy for its Post-it® Flag Highlighters was as follows:

a.        match its principal competitors’ highlighters’ prices.

b.       charge a price that would give a reasonable bookstore price to students and an acceptable profit to distributors and 3M.

c.        set an initially low price with the intent of bringing down the price even further later if sales were less than anticipated.

d.       make the product easier to purchase by placing the Post-it® Flag Highlighter in discount office supply retailers.

e.        use the same pricing strategy as its 3M’s Post-it® Flag and Post-it® Note offerings.

3M’s Post-it® Flag Highlighter and Pen marketing programs were designed for what primary objective?

a.        the initial introduction of two new 3M products

b.       specific promotions to be used for long-range strategies

c.        segmenting the market into twelve specific target market segments

d.       marketing 3M products to foreign markets

e.        positioning the products relative to major competitors

3M’s place strategy in its marketing program made it convenient for __________ to buy Post-it® Flag Highlighters and Post-it® Flag Pens.

a.        external salespeople only

b.       college students only

c.        office workers only

d.       college students and office workers

e.        teachers only

Based on the marketing program 3M developed for its Post-it® Flag Highlighters and Post-it® Flag Pens, one can conclude that

a.        the market segments for Post-it® Flag Highlighters and Post-it® Flag Pens are identical.

b.       the target market segments for Post-it® Flag Highlighters and Post-it® Flag Pens are not realistic.

c.        the Post-it® Flag Highlighters and Post-it® Flag Pens are priced unfairly for its target markets.

d.       the prices for 3M’s Post-it® Flag Highlighters and Post-it® Flag Pens are set to maximize 3M’s profits, not its distributors’ profits.

e.        the promotion strategy is designed to increase awareness among potential users.

All of the following statements about the overall marketing program for 3M’s Post-it® Flag Highlighters are true EXCEPT:

a.        David Windorski, a 3M inventor, designed the second generation of Post-it® Flag Highlighters and Pens without the rotating cover to make it easier to insert replacement flags.

b.       Office workers were initially the intended target market for the Post-it® Flag Highlighter.

c.        In his first attempt, David Windorski, a 3M inventor, designed the Post-it® Flag Highlighter in exactly the right way to appeal to its target market.

d.       David Windorski, the designer of the Post-it® Flag Highlighter, appeared on The Oprah Winfrey show so she could thank him in person for “his most incredible invention.”

e.        Recently, 3M introduced additions to the Post-it® Flag+ Highlighter line: a Post-it® Flag+ Gel Pen and a Post-it® Flag+ Permanent Marker.

With respect to the history of American business, the __________ era covered the early years of the United States up until the 1920s.

a.        production

b.       sales

c.        marketing concept

d.       customer relationship

e.        market orientation

If you wanted a new pair of shoes during the Civil War, you traced the outline of your foot on a piece of paper and gave it to a shoemaker.  There was no distinction between the right and left foot because you wanted your shoes as quickly as possible, and the shoemaker knew that you would buy them even if they just “sort of” fit.  This is an example of a transaction that would have occurred during the __________ era in U.S. business history.

a.        marketing concept

b.       sales

c.        production

d.       societal marketing concept

e.        market orientation

With respect to the history of American business, the __________ era covered the years from the 1920s to the 1960s.

a.        production

b.       sales

c.        marketing concept

d.       customer relationship

e.        market orientation

The period of American business history when firms could produce more goods than they could sell and the focus was on hiring more salespeople to seek out new markets and customers is referred to as the __________ era.

a.        sales

b.       marketing concept

c.        production

d.       goods

e.        market orientation

In the 19th century, the belief was that production creates its own demand.  By the early 20th century, American companies began to produce more goods than buyers could consume.  At the same time, competition became more significant.  The usual solution was to hire more salespeople to find new buyers.  This describes the __________ era.

a.        goods

b.       production

c.        sales

d.       marketing concept

e.        market orientation

Shortly after World War II, Sam Jackson developed an idea for a biodegradable lubricant that was superior to anything currently on the market.  He was excited about his new idea and persuaded a number of his friends to help produce samples.  While demand kept up with production at first, he soon found that he had to hire a sales force to sell excess product to manufacturing companies in the area.  He decided this was primarily because his company had several strong competitors that had recently come into the industry.  This is an example of marketing behavior that would occur during the __________ era of U.S. business history.

a.        marketing concept

b.       production

c.        goods

d.       sales

e.        societal marketing concept

In the movie Tin Men, two rival salesmen engaged in a variety of dishonest and unethical practices in order to sell aluminum siding to homeowners in 1963.  Their job was difficult, in part, because the supply of aluminum siding surpassed the demand for the product and competition was intense.  This situation is indicative of the __________ era of U.S. business history.

a.        goods

b.       sales

c.        production

d.       market orientation

e.        societal marketing

Imagine a confectionary company has introduced a new nutty candy bar during the 1930s (the sales era in U.S. business history).  Which of the following statements would you MOST LIKELY expect management to make if sales of this new candy bar were much lower than expected?

a.        “We’d better do some market testing to determine why people are dissatisfied.”

b.       “Perhaps we should make candy bars with raisins.”

c.        “Let’s put more aggressive salespeople in the field.”

d.       “Let’s lower the price and change the name.”

e.        “Don’t worry about it; we’re the largest candy manufacturer in the area.  Sooner or later they’ll get hungry enough that they’ll come to us.”

In U.S. business history, the marketing concept era began in __________.

a.        the early years of the Civil War

b.       the 1920s

c.        the late 1950s

d.       the mid-1980s

e.        the first few years of the 21st century

With respect to the history of American business, the __________ era began in the late 1950s when marketing became the motivating force among many firms.

a.        production

b.       sales

c.        customer relationship

d.       market orientation

e.        marketing concept

The American business period that strove to satisfy consumer needs while achieving an organization’s goals is called the __________ era.

a.        marketing concept

b.       sales

c.        production

d.       societal marketing concept

e.        customer relationship

With respect to the history of American business, the __________ era immediately followed the sales era.

a.        production

b.       promotion

c.        customer relationship

d.       market orientation

e.        marketing concept

Which era of U.S. business history does the following statement best describe?  “We are in the business of satisfying the needs and wants of consumers while achieving our own goals.”

a.        the production era

b.       the sales era

c.        the marketing concept era

d.       the marketing orientation era

e.        the societal marketing era

Insisting upon a market orientation within one’s firm first occurred during which era in U.S. business history?

a.        the production era

b.       the sales era

c.        the reduction era

d.       the marketing concept era

e.        the societal marketing era

Which of the following statements about the marketing concept era is MOST ACCURATE?

a.        The marketing concept era can trace its roots to early Greek culture.

b.       During the marketing concept era, companies tried to satisfy the needs of consumers while also achieving their goals.

c.        During the marketing concept era, companies began to implement the idea of a marketing program.

d.       During the marketing concept era, companies believed you could produce as much as you wanted because the product would sell itself.

e.        All U.S. firms are now operating with a marketing concept era philosophy.

Which of the following terms best describes the marketing concept era?

a.        consumer-oriented

b.       production-oriented

c.        sales-oriented

d.       society-oriented

e.        competition-oriented

The idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization’s goals reflects the

a.        concept of synergy.

b.       marketing concept.

c.        principle of customer relationship management.

d.       societal marketing concept.

e.        consumerism concept.

The marketing concept refers to

a.        the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large.

b.       the belief that an organization should focus its efforts on (1) continuously collecting information about customers’ needs, (2) sharing this information across departments, and (3) using it to create customer value.

c.        the view that organizations should satisfy the needs of consumers in a way that provides for society’s well being.

d.       the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace.

e.        the idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization’s goals.

In 1952, General Electric’s annual report stated, “The concept introduces…marketing…at the beginning rather than the end of the production cycle and integrates marketing into each phase of the business.”  This is a brief statement of what has come to be known as the

a.        sustainability perspective.

b.       age of consumerism.

c.        sales concept.

d.       marketing concept.

e.        customer relationship management concept.

Firms such as General Electric, Marriott, and Facebook have achieved great success by putting a huge effort into implementing the marketing concept, giving their firms a

a.        production orientation.

b.       sales orientation.

c.        customer relationship orientation.

d.       service orientation.

e.        market orientation.

Many companies subscribe to being “green” because they feel that consumers value this.  Yet, in many of these same firms, office computers are left on 24 hours a day and office paper is not recycled.  This example indicates it is not always easy for firms to act in accordance with the

a.        marketing concept.

b.       customer relationship management concept.

c.        consumerism.

d.       social entrepreneurship.

e.        cause marketing.

A market orientation refers to

a.        the orientation of an organization that focuses its efforts on: (1) continuously collecting information about the environment; (2) keeping abreast of the actions of its competitors; and (3) using this information to create customer value.

b.       the orientation of an organization that focuses its efforts on: (1) continuously collecting information about customers’ needs; (2) sharing this information across departments; and (3) using it to create customer value.

c.        the belief that the buying environment for any given industry is volatile and therefore all marketing decisions should be short-term and easily adaptable to change.

d.       the belief that the buying environment for any given industry is relatively stable and therefore all marketing decisions should be long-term to prevent loss of focus.

e.        the point of view that holds that there is always someone who needs or can benefit from your product, and if one segment fails, there is an even better one somewhere in the “market.”

An organization with a market orientation

a.        focuses its efforts on: (1) continuously collecting information about the environment; (2) keeping abreast of the actions of its competitors; and (3) using this information to create customer value.

b.       identifies prospective buyers, understands them intimately, and develops favorable long-term perceptions of the organization and its offerings so that they will choose it in the marketplace.

c.        strives to satisfy the needs of consumers while also trying to achieve its goals.

d.       satisfies the needs of consumers in a way that provides for society’s well being.

e.        focuses its efforts on: (1) continuously collecting information about customers’ needs; (2) sharing this information across departments; and (3) using it to create customer value.

An organization that focuses its efforts on (1) continuously collecting information about customers’ needs; (2) sharing this information across departments; and (3) using it to create customer value is said to have a

a.        product orientation.

b.       customer orientation.

c.        market orientation.

d.       industry orientation.

e.        societal orientation.

An organization that focuses its efforts on (1) continuously collecting information about customers’ needs; (2) sharing this information across departments; and (3) using it to create customer value is said to have a

a.        societal marketing concept.

b.       focus on macromarketing.

c.        nonprofit orientation.

d.       market orientation.

e.        profit maximization orientation.

With respect to the history of American business, the __________ era is when today’s firms continuously seek to satisfy the high expectations of customers.

a.        production

b.       sales

c.        marketing concept

d.       customer relationship

e.        societal marketing

 

In Figure 1-5 above, “A” represents which era in U.S. business history?

a.        sales era

b.       production era

c.        age of consumerism

d.       marketing concept era

e.        customer relationship era

In Figure 1-5 above, letter “B” represents which era in U.S. business history?

a.        sales era

b.       production era

c.        age of consumerism

d.       marketing concept era

e.        customer relationship era

In Figure 1-5 above, letter “C” represents which era in U.S. business history?

a.        sales era

b.       production era

c.        age of consumerism

d.       marketing concept era

e.        customer relationship era

In Figure 1-5 above, letter “D” represents which era in U.S. business history?

a.        sales era

b.       production era

c.        age of consumerism

d.       marketing concept era

e.        customer relationship era

Customer relationship management refers to

a.        the view that organizations should satisfy the needs of consumers in a way that provides for society’s well being.

b.       the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace.

c.        the idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization’s goals.

d.       the links an organization has to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit.

e.        the cluster of benefits that an organization promises customers to satisfy their needs.

Customer relationship management (CRM) is most closely related to the __________ era in U.S. business history.

a.        customer relationship

b.       production

c.        sales

d.       marketing concept

e.        societal marketing

The United Way of Greater Toronto (UWGT), like many charities, was sitting on a gold mine of donor data.  Unfortunately, UWGT was not certain how to use that information to its greatest advantage.  UWGT could blanket past donors with generic mailings, but it could not offer donors information that would convince them to donate to UWGT over other charities.  Which of the following tools would be most useful for the nonprofit organization to use?

a.        a flexible marketing system

b.       a database warehouse

c.        a customer relationship management plan

d.       a competitive intelligence framework

e.        a customer-oriented marketing program

Customer experience refers to

a.        the practice of building ties to customers based on a salesperson’s attention and commitment to customer needs over time.

b.       the links an organization has to its customers for their mutual long-term benefits.

c.        the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace.

d.       the internal response that customers have to all aspects of an organization and its offerings.

e.        the activities in which a firm will participate in order to create a positive buying experience for the customer.

The internal response that customers have to all aspects of an organization and its offerings is referred to as __________.

a.        customer experience

b.       relationship marketing

c.        internal customer audit

d.       internal marketing

e.        customer relationship management

Recently, Fortune magazine named Trader Joe’s “America’s hottest retailer” for its outstanding __________, including personal attention from employees in the store.

a.        customer value proposition

b.       relationship marketing

c.        customer experience

d.       internal marketing

e.        customer relationship management

All of the following are aspects of Trader Joe’s customer experience EXCEPT:

a.        it has a large and expensive research and development facility.

b.       it offers unusual food products not available from other retailers.

c.        it stocks yuppie-friendly staples on its shelves.

d.       it sets low prices by offering its own brands, not national ones.

e.        it provides rare employee “engagement” to help customers.

Today, the standards of marketing practice have shifted from the interests of producers to the interests of __________.

a.        nonprofit organizations

b.       government

c.        suppliers

d.       resellers

e.        consumers

Social responsibility is

a.        the view that organizations should satisfy the needs of consumers in a way that provides for society’s well being.

b.       the fundamental, passionate, and enduring principles of an organization that guide its conduct over time.

c.        the idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization’s goals.

d.       the idea that individuals and organizations are accountable to a larger society.

e.        the recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.

The idea that individuals and organizations are accountable to a larger society is known as

a.        the societal marketing concept.

b.       social responsibility.

c.        consumerism.

d.       sustainable development.

e.        capitalism.

As organizations have changed their orientation, society’s expectations of marketers have also changed.  Today, the emphasis of marketing practice has shifted from the interests of __________ to the interests of consumers.

a.        society at large

b.       government

c.        suppliers

d.       resellers

e.        producers

You change the oil in your car yourself and dump the used oil down the sewer drain that ultimately flows into the local river.  Oil manufacturers know this in not an isolated occurrence, so should they be concerned?

a.        No, you paid for the oil and you can dispose of it as you like.

b.       No, the oil company will someday add a premium to the price to pay for oil cleanup in the environment.

c.        Yes, this is the type of situation that can get “Big Oil” a lot of bad press.

d.       Yes, this is an issue of social responsibility because the polluted water affects others in the society at large.

e.        No, this is an issue solely between you and your neighbors.

Which of the following most directly explains why pharmaceutical giant Pfizer offered low-income senior citizens many of its most widely used prescriptions for $15 each per month?

a.        the profit motive since aging baby boomers are a large, profitable market

b.       the social responsibility concept

c.        the necessity of matching competitors’ actions

d.       new regulatory Medicare mandates as a result of the Affordable Care Act legislation

e.        the mandate by its industry’s code of ethics

The societal marketing concept

a.        is the moral principles and values that govern the actions and decisions of an organization.

b.       is the idea that organizations are part of a larger society and are accountable to that society for their actions.

c.        actively tries to understand customer needs and satisfying them while satisfying the firm’s goals.

d.       involves conducting business in a way that protects the natural environment while making economic progress.

e.        is the view that an organization should satisfy the needs of consumers in a way that provides for society’s well being.

The view that holds an organization should satisfy the needs of consumers in a way that also provides for society’s well being is known as

a.        the societal marketing concept.

b.       the marketing concept.

c.        consumerism.

d.       social responsibility.

e.        capitalism.

Innovators at 3M developed Scotch-Brite® Never Rust Wool Soap Pads from recycled plastic bottles.  Even though these soap pads are more expensive than competitive brands (Brillo and SOS), customers are willing to pay the premium price.  Customers appreciate the value of a superior product (they don’t rust or scratch) and appreciate the fact that their purchase is environmentally responsible.  This demonstrates that

a.        an organization can be environmentally conscious while still satisfying its customers and remaining competitive in the market.

b.       an organization can use a customer’s sense of social responsibility to its own advantage even though the effects are minimal.

c.        if a company uses recycled materials, it can always charge more than what a product is actually worth.

d.       it is more important to act in a socially responsible manner than to consider the profits and goals of the organization.

e.        the first brand that creates a new product gets to charge the highest price and make the greatest profits.

What kinds of organizations engage in marketing?

a.        only those that can afford to advertise

b.       only very large and established for profit organizations

c.        only Fortune 5,000 companies

d.       every organization regardless of the kind

e.        only the organization that wants to make a profit

Which of the following organizations engage in marketing?

a.        the Chicago Cubs

b.       the San Francisco Opera

c.        the City of Denver

d.       the President of the United States

e.        Every organization or individual can engage in marketing to some extent.

Which of the following statements best describes a good?

a.        Goods are physical objects.

b.       Goods are the only currency that can be used in an exchange.

c.        Goods are intangible concepts and thoughts about ideas or causes.

d.       Goods are the benefits organizations receive for selling products and services.

e.        Goods can be either tangible or intangible.

Which of the following statements best describes a service?

a.        Services are physical objects.

b.       Services are intangible items.

c.        Services are thoughts about concepts, actions, or causes.

d.       Services are the benefits organizations receive in exchange for selling products.

e.        Services comprise the subset of tangible features of products.

Organizations such as American Airlines, U.S. Bank, and the Red Cross provide customers with products that are typically called a(n) __________.

a.        utility

b.       performance

c.        service

d.       value

e.        idea

A live theatre performance cannot be touched like a physical object, but is still considered a product.  To a marketer, this is an example of a(n) __________.

a.        utility

b.       production

c.        value

d.       service

e.        idea

In marketing, thoughts about concepts, actions, or causes are referred to as

a.        utilities.

b.       experiences.

c.        values.

d.       ideas.

e.        services.

A product

a.        consists of the benefits or customer value received by its sellers.

b.       is the cluster of benefits that an organization promises customers to satisfy their needs.

c.        is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfy consumers’ needs and is received in exchange for money or something else of value.

d.       consists of items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort.

e.        is the set of intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value.

A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value is known as a(n)

a.        utility.

b.       item.

c.        service.

d.       marketing program.

e.        product.

Which answer reflects (in order) a good, a service, and an idea that can be marketed?

a.        a candy bar, a wastepaper basket, and a vending machine

b.       a CD, a concert, and a souvenir T-shirt

c.        a political candidate, democracy, and freedom

d.       an iPod, an iPhone, and an iPad

e.        a toothbrush, laser teeth whitening, and dental hygiene

The Hermitage, a famous Russian art museum, was suffering financial difficulties as the result of lost funding and a decline in tourists.  The decrease in visitors was blamed on a lack of awareness of the treasures contained in the museum.  The Hermitage’s director used a strategic alliance with IBM to create a website where people view some of the wonders of the Hermitage in an online virtual tour.  The hope is that this sampling of paintings, sculptures, artifacts, etc. will encourage visitors to make a trip to the Hermitage and spend enough money there to cover operational costs.  The Hermitage is a(n) __________ that uses online virtual tours to market itself worldwide.

a.        good

b.       idea

c.        service

d.       assembly

e.        charity

All of the following are examples of ideas EXCEPT:

a.        State governments in Arizona and Florida marketing the notion of taking a warm, sunny winter vacations in their states.

b.       Apple using a TV ad to explain the features of an iPad mini (camera, screen resolution, user interface, etc.).

c.        the Nature Conservancy marketing the cause of protecting the environment.

d.       conservative politicians who attempt to persuade voters of the need to slash government spending to reduce the $17 trillion debt.

e.        Charities like the Red Cross marketing the idea that it’s worthwhile for you to donate your time or money to their causes to benefit society.

Ultimate consumers refer to

a.        the people who use the products and services purchased for a household.

b.       people who have already purchased a firm’s product at least once, have been satisfied, and are likely to make repeat purchases.

c.        people or organizations that have used a competitor’s product and who have been dissatisfied, and who are still seeking a product or service to satisfy their needs.

d.       those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale.

e.        one or more specific groups of potential customers toward whom an organization directs its marketing program.

The people who use the products and services purchased for a household are called

a.        organizational buyers.

b.       household prospects.

c.        ultimate consumers.

d.       a target market.

e.        sellers.

What is the marketing term for people, whether they are 80 years or 8 months old, who use products and services purchased for a household?

a.        ultimate consumers

b.       situational buyers

c.        primary buyers

d.       a target market

e.        household prospects

Time Inc. has published a new magazine, All You, which is distributed only in Walmart stores.  Who is the ultimate consumer for this magazine?

a.        the person who buys the magazine to read at home

b.       the person who stocks the magazine rack at Walmart

c.        the person who browses the magazine in the store but does not buy it

d.       the salesperson for Time Inc. who sold the magazine to Walmart

e.        All people, from the writer, to the seller, to the reader at home, are the ultimate consumers.

Which of the following is an example of an ultimate consumer?

a.        a newspaper reporter who receives a plane ticket to Washington, D.C. to cover the presidential inauguration

b.       a school teacher who bought a ticket to the Summer Olympics opening ceremonies

c.        an office receptionist who renews the magazines that are found in the office waiting room

d.       a retailer who buys poster board to make signs for an upcoming store sale

e.        a landscaping firm employee who buys a new wheelbarrow to use to haul mulch

Entities such as manufacturers, retailers, and government agencies that buy goods and services for their own use or for resale are referred to as

a.        intermediate buyers.

b.       selling agents.

c.        organizational buyers.

d.       manufacturing agents.

e.        brokers.

Organizational buyers are described as

a.        only purchasers of raw materials and natural resources.

b.       employees who purchase household items for their personal use.

c.        any individual or group making a purchase worth over $100,000.

d.       manufacturers, retailers, or government agencies that buy products for their own use or for resale.

e.        any man, woman, or child who uses products purchased for a household.

Which of the following is the best example of an organizational buyer?

a.        a mother buying milk for her young son

b.       a store owner buying hand-painted slate signs to sell in her store

c.        a computer programmer buying the latest game for his Xbox.

d.       a botanist buying a rose bush for his home garden

e.        a parent buying a softball glove for a daughter

Effective marketing benefits society because it

a.        reduces competition, making the playing field more even.

b.       improves the quality of products and services regardless of the cost.

c.        allows companies to charge whatever price they want, regardless of product quality.

d.       makes countries more competitive in world markets while simultaneously reducing competition in their home markets.

e.        enhances competition, which improves the quality of products and services and lowers their prices.

Utility refers to

a.        the number of alternative uses or benefits that can be provided by a single product or service.

b.       the adaptability of a marketing program to adjust to changes in the marketing environment.

c.        the benefits or customer value received by users of the product.

d.       the fixed costs associated with the production of a single unit of a product within a product line.

e.        the variable costs associated with the production of a single unit of a product within a product line.

The benefits or customer value received by users of a product is called __________.

a.        utility

b.       synergy

c.        consumerism

d.       cost-benefit ratio

e.        customer lifetime value

The four utilities marketing creates are

a.        product, price, promotion, and place.

b.       form, function, value, and people.

c.        monopoly, monopolistic competition, pure competition, and oligopoly.

d.       form, place, time, and possession.

e.        natural gas, fossil fuel, electricity, and water.

The value to consumers that comes from the production or alteration of a product or service constitutes __________ utility.

a.        time

b.       place

c.        possession

d.       market

e.        form

Which of the following is an example of form utility?

a.        an iPhone with a “multitouch” user interface for easy navigation

b.       stamp vending machines that are located in drug stores

c.        a service station that has a 24-hour ice machine available for use when the station is closed

d.       a mobile phone company that offers six-month financing, same as cash

e.        a gourmet candy store that offers a home delivery service

FreshCase packaging is the first-ever vacuum package for red meat that maintains the meat’s appetizing color, reducing both food and plastic waste.  This is an example of creating __________ utility in the case-ready meat category.

a.        time

b.       place

c.        form

d.       possession

e.        market

The process of taking wool off sheep and using it to make soft sweaters shows how manufacturing can create __________ utility.

a.        time

b.       form

c.        place

d.       possession

e.        market

The process of turning corn into ethanol shows how BioFuel Energy, a Minnesota ethanol producer, can create __________ utility.

a.        time

b.       place

c.        possession

d.       market

e.        form

The value to consumers that comes from having the offering available where consumers need it constitutes __________ utility.

a.        time

b.       place

c.        possession

d.       market

e.        form

Which of the following statements is an example of place utility?

a.        airlines that allow you to print your own boarding pass at home

b.       a service station that adds a diesel fuel pump to its three unleaded gasoline pumps

c.        a mobile phone company that offers six-month financing, same as cash

d.       cold cut packages that can be zipped close for reuse

e.        an iPhone with a “multitouch” user interface for easy navigation

The value to consumers that comes from having the offering available when they need it constitutes __________ utility.

a.        place

b.       possession

c.        market

d.       time

e.        form

What utility does UPS provide when it delivers new DVD releases to Best Buy stores before the Tuesday national release day?

a.        time utility

b.       place utility

c.        possession utility

d.       market utility

e.        form utility

Dick’s Sporting Goods carries baseballs all year around.  The same is true for footballs and tennis equipment.  With this all-year-around strategy, Dick’s Sporting Goods offers __________ utility for these products.

a.        time

b.       place

c.        possession

d.       market

e.        form

Which of the following is an example of time utility?

a.        an iPhone with a “multitouch” user interface for easy navigation

b.       Goodwill that has a 24-hour drop off box for clothing donations

c.        a dry cleaners that is located inside a supermarket

d.       a mobile phone company that offers six-month financing, same as cash

e.        a new herbal supplement that offers a 30-day free trial

Redbox places vending machines at local convenience and grocery stores that allow customers to rent and return popular DVDs 24 hours a day.  This creates both __________ and __________ utilities.

a.        form and place

b.       form and time

c.        place and time

d.       time and possession

e.        form and possession

The value to consumers that comes from making an item easy to purchase through the provision of credit cards and financial arrangements constitutes __________ utility.

a.        time

b.       place

c.        market

d.       possession

e.        form

Which of the following is an example of possession utility?

a.        an iPhone with a large selection of new “apps”

b.       the local dairy that offers to deliver bottles of milk to a customer’s doorstep

c.        disposable diapers that come equipped with resealable tabs

d.       a gourmet food store that carries a line of ready-made salads

e.        a mobile phone company that offers six-month financing, same as cash

Robert was running low on cash and could not buy his Marketing textbook by the first day of class if the bookstore did not accept his credit card.  Luckily, the bookstore accepted his VISA card, so the bookstore created __________ utility for Robert.

a.        form

b.       time

c.        price

d.       possession

e.        place

The founder of Chobani Greek Yogurt, who won the 2013 Ernst & Young World Entrepreneur of the Year award, is

a.        Mark Zuckerberg.

b.       “Trader” Joe Demapolis.

c.        Hamdi Ulukaya.

d.       Robert M. McMath.

e.        David Windorski.

The difference between “Greek” yogurt and “American” yogurt is that the latter

a.        has a thick texture.

b.       is too thin.

c.        is not sweet enough for health-conscience palettes.

d.       is only sold in health or natural food stores.

e.        has high protein content.

All of the following are points of difference for Chobani Greek Yogurt EXCEPT:

a.        a shorter, wider cup that was more visible on retailers’ shelves.

b.       preservative-free.

c.        a bit lower in protein than regular yogurt.

d.       proprietary animal-based thickener to make its “Greek-style” yogurts.

e.        a straining process that removes excess liquid whey.

All of the following current or prospective distribution channels for Chobani Greek Yogurt EXCEPT:

a.        convenience stores.

b.       drug stores.

c.        mass merchandisers.

d.       supermarkets.

e.        vending machines.

Chobani used all of the following tactics to promote its Chobani Greek Yogurt EXCEPT:

a.        sponsored the Food Network’s Rachel vs. Guy Kids Kick-Off TV show with its Chobani ChampionsÒ Tubes.

b.       created a website to provide consumers with recipes that use Chobani Greek Yogurt.

c.        sponsored the 2012 U.S. Olympic Team.

d.       used its CHOmobile to offer samples of its Greek Yogurt to first-time customers.

e.        relied on word-of-mouth in its early years.

 

1.
Ben & Jerry's mission to make the world a better place is linked to various organizational and marketing strategies, one of which is 
 

A. 
supporting farmers who agree to use sustainable farming practices, implementing fair working standards, and investing in local communities.
 

B. 
the intent of making modest profits without sacrificing high product quality standards.
 

C. 
ingredients that are all completely organic and are available only in Vermont to ensure freshness and contribute to the local economy.
 

D. 
a commitment to donating a percentage of profits to Teach for America.
 

E. 
ingredients that come exclusively from developed countries promoting Fair Trade practices.
 
 2.
Ben & Jerry's mission-driven approach led the company to successfully implement many highly creative organizational and marketing strategies. One example includes 
 



A. 
ISO 9000, promoting the quality concept through its commitment to making the finest ice cream from the best ingredients.
 

B. 
"linked prosperity," which encouraged the success of all constituents including employees.
 

C. 
Regeneration Nation, generating enough revenue for the firm to be a completely nonprofit organization.
 

D. 
Give and Go, donating 10 percent of its net profits to local charitable causes and an additional 5 percent to support producers that practice sustainable farming.
 

E. 
PartnerShops, Ben & Jerry scoop shops that are independently owned and operated by community-based nonprofit organizations.
 
 3.
Ben & Jerry's has earned B-Corp certification from B-Lab, which means it has 
 



A. 
reached the goal of generating enough revenue to be a completely nonprofit organization.
 

B. 
a sustainable financial basis of profitable growth, increasing value for stakeholders and expanding opportunities for development and career growth for employees.
 

C. 
the goal of making profits for selected charitable organizations such as Fair Trade.
 

D. 
been recognized for its efforts to use the power of business to solve social and environmental problems.
 

E. 
been instrumental in expanding into international markets by creating dairies for developing nations.
 
 4.
Which of the following statements regarding Ben & Jerry's is most accurate? 
 



A. 
Ben & Jerry's is owned by Unilever, the market leader in the global ice cream industry.
 

B. 
Ben & Jerry's is a privately owned ice cream producer.
 

C. 
Ben & Jerry's prides itself on offering more ice cream flavors than its competitors.
 

D. 
Ben and Jerry are not real people; the names were a clever reference to Tom and Jerry cartoon characters in order to capitalize on childhood nostalgia.
 

E. 
Ben & Jerry's has only been in business for 20 years and is already the industry leader in premium ice cream.
 
 5.
A(n) __________ is a legal entity that consists of people who share a common mission. 
 



A. 
department
 

B. 
organization
 

C. 
SBU
 

D. 
industry
 

E. 
market
 
 6.
In marketing, an organization refers to 
 



A. 
a legal entity that consists of people who share a common mission.
 

B. 
a group of people united through contractual or corporate ownership.
 

C. 
a legal entity engaged in business activities solely with the intent of making a profit.
 

D. 
a legal entity engaged in business activities solely with the intent of serving its employees without the intent of making a profit.
 

E. 
a privately owned entity that serves its customers to earn a profit so that it can survive.
 
 7.
A(n) __________ is a good, service, or idea that creates value for both the organization and its customers by satisfying their needs and wants. 
 



A. 
organization
 

B. 
business firm
 

C. 
nonprofit
 

D. 
offering
 

E. 
industry
 
 8.
In marketing, an offering refers to 
 



A. 
the formal designation of a publicly traded stock for a specific product, service, or idea.
 

B. 
a form of currency used by buyer and seller to minimize the tax burden for both parties.
 

C. 
a good, service, or idea that creates value for both the organization and its customers by satisfying their needs and wants.
 

D. 
the manufacturer's suggested retail price of a product or service to the general public or the wholesale price to distributors and retailers.
 

E. 
the service suppliers and distributors provide to help manufacturers bring a product to market.
 
 9.
Today's organizations can be divided into three groups, which are __________ organizations. 
 



A. 
company, nonprofit, and cooperative
 

B. 
corporation, employee-owned, and interest
 

C. 
for-profit, nonprofit, and governmental
 

D. 
employee, distributor, and customer
 

E. 
public, private, and international
 
 10.
A(n) __________ is a privately owned organization that serves its customers to earn a profit so that it can survive. 
 



A. 
agency
 

B. 
for-profit organization
 

C. 
institution
 

D. 
nonprofit organization
 

E. 
cooperative
 
 

11.
A for-profit organization refers to 
 



A. 
a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers.
 

B. 
a legal entity engaged in business activities solely with the intent of serving its employees without the intent of making a profit.
 

C. 
a privately owned organization that serves its customers to earn a profit so that it can survive.
 

D. 
a group of people united through contractual or corporate ownership.
 

E. 
a publicly owned organization that serves the general population.
 
 

12.
__________ the reward to a business firm for the risk it undertakes in marketing its offerings. 
 



A. 
Shareholders' equity is
 

B. 
Profit is
 

C. 
Assets are
 

D. 
Contribution margin is
 

E. 
Goodwill is
 
 

13.
Profit refers to 
 



A. 
the point at which a company's assets equal its liabilities plus shareholder equity.
 

B. 
the difference between the list and final price of a product or service.
 

C. 
the money earned when the economic order quantity is minimized.
 

D. 
the money left over after a business firm's total expenses are subtracted from its total revenues.
 

E. 
the total amount of revenue accrued through product sales or service distribution.
 
 

14.
A nonprofit organization is 
 



A. 
a nongovernmental organization that serves its customers but does not have profit as an organizational goal.
 

B. 
a legal entity engaged in business activities solely with the intent of serving its employees without the intent of making a profit.
 

C. 
a publicly owned organization that serves the general population.
 

D. 
a group of people united through contractual or corporate ownership.
 

E. 
a privately owned organization that serves its customers to earn a profit so that it can survive.
 
 

15.
A __________ is a nongovernmental organization that serves its customers but does not have profit as an organizational goal. 
 



A. 
business firm
 

B. 
subchapter S corporation
 

C. 
service agency
 

D. 
cooperative
 

E. 
nonprofit organization
 
 

16.
A __________ is a federal, state, county, or city unit that provides a specific service to its constituents. 
 



A. 
business firm
 

B. 
subchapter S corporation
 

C. 
government agency
 

D. 
cooperative
 

E. 
nonprofit organization
 
 

17.
Social entrepreneurs who start new ventures such as Teach for America and SIRUM are usually structured as __________ rather than business firms. 
 



A. 
business agencies
 

B. 
nonprofit organizations
 

C. 
government agencies
 

D. 
cooperatives
 

E. 
social service agencies
 
 

18.
Which statement best describes the most significant difference between a for-profit organization or a business firm and a nonprofit organization? 
 



A. 
Business firms operate with larger budgets than nonprofits.
 

B. 
Nonprofit organizations do not carry on economic activities while business firms do.
 

C. 
Nonprofit organizations are concerned with social issues and business firms are not.
 

D. 
Both serve customers, but business firms seek a profit while nonprofit organizations do not.
 

E. 
Nonprofit organizations are publicly owned and business firms are privately owned.
 
 

19.
An example of a nonprofit organization is 
 



A. 
the Food and Drug Administration.
 

B. 
CVS Pharmacies.
 

C. 
the medical technology company Medtronic, Inc.
 

D. 
the pharmaceutical company Pfizer, Inc.
 

E. 
Teach for America.
 
 

20.
Cree markets LED (light-emitting diode) bulbs that replace the traditional incandescent bulb. The Cree LED 60w bulb consumes 85 percent less energy and lasts for 25,000 hours. Cree is an example of 
 



A. 
a cooperative.
 

B. 
an industry.
 

C. 
a nonprofit organization.
 

D. 
a business firm.
 

E. 
a government agency.
 
 

21.
Cree markets LED (light-emitting diode) bulbs that replace the traditional incandescent bulb. Cree's bulb is more energy efficient and lasts much longer than traditional incandescent bulbs, and thus is more environmentally friendly. Cree is an example of 
 



A. 
a cooperative.
 

B. 
an industry.
 

C. 
a nonprofit organization.
 

D. 
a business firm.
 

E. 
a government agency.
 
 

22.
__________ starts new ventures that address important social needs and issues. These new enterprises are often organized as nonprofit organizations. 
 



A. 
Corporate welfare
 

B. 
A social entrepreneur
 

C. 
Sustainable development
 

D. 
Cause marketing
 

E. 
Societal capitalism
 
 

23.
Social entrepreneurs' ventures are usually structured as 
 



A. 
business firms.
 

B. 
subchapter S corporations.
 

C. 
nonprofit organizations.
 

D. 
governmental agencies.
 

E. 
501(c)(3) for-profit organizations.
 
 

24.
Teach for America works to solve which societal problem? 
 



A. 
It provides new college graduates as teachers in urban and rural public schools in the United States.
 

B. 
It works to end corneal blindness worldwide by finding cornea donors and creating tissue banks.
 

C. 
It provides education and small business loans to women in impoverished areas so that they can help themselves.
 

D. 
It offers free rehabilitation services for injured U.S. veterans returning from overseas conflict.
 

E. 
It offers tax credits to small businesses to employ at-risk youth in their communities.
 
 

25.
Teach for America is an example of 
 



A. 
an entrepreneurial business firm.
 

B. 
a subchapter S corporation.
 

C. 
a creative nonprofit organization.
 

D. 
a public value agency.
 

E. 
a 501(c)(3) for-profit organization.
 
 

26.
According to the textbook, the terms firm, company, and organization 
 



A. 
refer to for-profits, nonprofits, and government agencies, respectively.
 

B. 
refer to nonprofits, government agencies, and for-profits, respectively.
 

C. 
refer to government agencies, for-profits, and nonprofits, respectively.
 

D. 
refer to for-profits, government agencies, and nonprofits, respectively.
 

E. 
can be used interchangeably to cover both profit and nonprofit organizations.
 
 

27.
Organizations that develop similar offerings, when grouped together, create 
 



A. 
a conglomerate.
 

B. 
a merger.
 

C. 
an industry.
 

D. 
a sector.
 

E. 
a monopoly.
 
 

28.
An industry refers to 
 



A. 
organizations that develop similar offerings.
 

B. 
organizations that manufacture identical products to meet ISO 9000 specifications.
 

C. 
companies that are active in the production of materials used in finished products.
 

D. 
a group of people or firms united through strategic alliances.
 

E. 
the economic activity concerned with the selling of finished products to wholesalers and retailers.
 
 

29.
Which of the following is not an example of an industry? 
 



A. 
the computer industry
 

B. 
the automobile industry
 

C. 
the landscaping industry
 

D. 
the government industry
 

E. 
the television programming industry
 
 

30.
The term used to identify an organization's long-term course of action designed to deliver a unique customer experience while achieving its goals is referred to as a 
 



A. 
marketing strategy.
 

B. 
policy.
 

C. 
strategy.
 

D. 
plan.
 

E. 
tactic.
 
 

31.
Strategy refers to 
 



A. 
an organization's long-term course of action designed to deliver a unique customer experience while achieving its goals.
 

B. 
an organization's corporate tactical or action plan.
 

C. 
statement of an accomplishment of a task to be achieved by a certain time.
 

D. 
a statement of the organization's function in society, often identifying its customers, markets, product, and technologies.
 

E. 
a road map for the entire organization for a specified future period of time, such as one or five years.
 
 

32.
Which of the following statements about strategy is most accurate? 
 



A. 
An organization can be all things to all people because it has access to all the resources it needs to discover and satisfy the needs and wants of its target markets.
 

B. 
The marketing department helps to both set an organization's direction and move it there.
 

C. 
The American Marketing Association (AMA) recently has established the definition of strategy.
 

D. 
Strategy is an organization's short-term course of action designed to deliver a specific customer experience while achieving its internal standards.
 

E. 
Only start-up organizations must develop strategies to help them raise capital as well as focus and direct their efforts to accomplish their goals.
 
 

33.
Large organizations are extremely complex, and usually consist of __________ organizational levels whose strategies are linked to marketing. 
 



A. 
two
 

B. 
three
 

C. 
five
 

D. 
six
 

E. 
seven or more
 
 

34.
A board of directors of an organization 
 



A. 
represents the functional level.
 

B. 
oversees the three levels of strategy.
 

C. 
represents the corporate level.
 

D. 
represents the CEO.
 

E. 
represents the strategic business unit level.
 
 

35.
The corporate level of an organization is the 
 



A. 
functional level.
 

B. 
proxy for the board of directors.
 

C. 
level where top management directs overall strategy.
 

D. 
most important level of the business.
 

E. 
strategic business unit level.
 
 

36.
The CEO of an organization 
 



A. 
is usually at the strategic business unit level.
 

B. 
is usually a member of the board of directors.
 

C. 
outranks the corporate level.
 

D. 
does not oversee the daily operations.
 

E. 
is the CMO.
 
 

37.
The specialists within an organization who actually create value are usually a member of the 
 



A. 
strategic business unit level.
 

B. 
functional level.
 

C. 
corporate level.
 

D. 
board of directors.
 

E. 
CMO.
 
 

38.
The key role of marketing includes 
 



A. 
supporting the board of directors.
 

B. 
operating at the corporate level.
 

C. 
looking outward by listening to customers.
 

D. 
managing executives.
 

E. 
delivering strategic business decisions.
 
 

39.
The level in an organization where top management directs overall strategy for the entire organization is referred to as the 
 



A. 
corporate level.
 

B. 
functional level.
 

C. 
directive level.
 

D. 
strategic level.
 

E. 
tactical level.
 
 

40.
The corporate level refers to the level in an organization where top management 
 



A. 
develops marketing strategies and tactics for the marketing department to implement.
 

B. 
directs overall strategy for the entire organization.
 

C. 
executes all marketing program actions to ensure consistency of performance.
 

D. 
develops overall sales projections not only for the short term but also for a period of at least two to five years.
 

E. 
supervises the hiring, firing, and training of all marketing department personnel.
 
 

41.
The corporate level in an organization is where 
 



A. 
the department heads direct overall strategy for the entire organization.
 

B. 
groups of specialists actually create value for the organization.
 

C. 
a small number of people from different departments are mutually accountable to accomplish a task or a common set of performance goals.
 

D. 
a subsidiary, division, or unit of an organization markets a set of related offerings to a clearly defined group of customers.
 

E. 
top management directs overall strategy for the entire organization.
 
 

42.
The highest-ranking person in an organization who oversees the organization's daily operations and spearheads its strategy planning efforts is often referred to as 
 



A. 
the corporate executive overseer.
 

B. 
the chief executive officer.
 

C. 
the corporate executive official.
 

D. 
the chief marketing officer.
 

E. 
the coordinating executive official.
 
 

43.
__________ have an increasingly important role in top management because of their ability to think strategically, bringing with them to the job multi-industry backgrounds, cross-functional management expertise, analytical skills, and intuitive marketing insights. 
 



A. 
Chief marketing officers (CMOs)
 

B. 
Chief financial officers (CFOs)
 

C. 
Chief executive officers (CEOs)
 

D. 
Chief human resource officers (CHROs)
 

E. 
Chief operating officers (COOs)
 
 

44.
The CEO of SAP, which sells expensive enterprise resource planning software to large and mid-sized companies, operates at the __________ level of his organization. 
 



A. 
business unit
 

B. 
functional
 

C. 
corporate
 

D. 
strategic
 

E. 
tactical
 
 

45.
Overseeing strategic marketing efforts at the corporate level would most likely be the responsibility of the 
 



A. 
CEO.
 

B. 
CMO.
 

C. 
CPM.
 

D. 
CPO.
 

E. 
COO.
 
 

46.
In recent years, many large firms have changed the title of the head of marketing from vice president of marketing to 
 



A. 
chief executive officer.
 

B. 
corporate marketing official.
 

C. 
coordinating marketing officer.
 

D. 
chief marketing officer.
 

E. 
corporate marketing executive.
 
 

47.
A strategic business unit (SBU) refers to 
 



A. 
a single product or service identification code used to identify items for strategic marketing planning purposes.
 

B. 
a small number of people from different departments in an organization who are mutually accountable to accomplish a task or common set of performance goals.
 

C. 
a strategic product that has a unique brand, size, or price.
 

D. 
a privately owned franchise under the auspices of a larger group or organization bearing the same name.
 

E. 
a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers.
 
 

48.
A subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers is referred to as a 
 



A. 
strategic business unit.
 

B. 
strategic industry level.
 

C. 
private corporation.
 

D. 
product grouping.
 

E. 
marketing department.
 
 

49.
The level at which managers set a more specific strategic direction for their businesses to exploit value-creating opportunities is referred to as the 
 



A. 
marketing department level.
 

B. 
strategic business unit level.
 

C. 
corporate level.
 

D. 
functional level.
 

E. 
board of directors level.
 
 

50.
The strategic business unit level 
 



A. 
works most directly with the organization's target customers.
 

B. 
directs the overall strategy for the organization.
 

C. 
is most likely to change substantially over time.
 

D. 
provides more end-user analysis in order to design more customer-directed products.
 

E. 
is the level at which managers set a more specific strategic direction for their businesses to exploit value-creating opportunities.
 
 

51.
Which of the following statements regarding an organization's strategic business unit level is most accurate? 
 



A. 
The strategic business unit level is the level that works most directly with an organization's targeted customers.
 

B. 
The overall strategy for the organization is directed at the strategic business unit level.
 

C. 
In the most complex organizations, the corporate level and the strategic business unit level may merge.
 

D. 
More end-user analysis is provided at the strategic business unit level than at the functional level.
 

E. 
The strategic direction is more specific at the strategic business unit level than at the corporate level.
 
 

52.
Each strategic business unit has marketing and other specialized activities (e.g., finance, manufacturing, or research and development) at the __________ level, where groups of specialists actually create value for the organization. 
 



A. 
strategic
 

B. 
corporate
 

C. 
functional
 

D. 
business unit
 

E. 
compartmental
 
 

53.
The functional level in an organization is where 
 



A. 
groups of specialists actually create value for the organization.
 

B. 
employees perform assigned tasks without actually having input into the decision making process.
 

C. 
all financial outlays are made.
 

D. 
all company hiring and firing occurs.
 

E. 
the strategic planners in SBUs make all decisions regarding which product benefits will be promoted during a promotional campaign.
 
 

54.
People in the finance and the human resources departments traditionally operate at what organizational level? 
 



A. 
corporate level
 

B. 
top management level
 

C. 
strategic business unit level
 

D. 
functional level
 

E. 
stakeholder level
 
 

55.
At the functional level, the organization's strategic direction becomes 
 



A. 
much more manageable since its offerings have been finalized.
 

B. 
the most specific and most focused in terms of implementing the company's goals.
 

C. 
broader since for less complex firms, the corporate and functional levels may merge.
 

D. 
more general to avoid the "not invented here syndrome" that could result in missed opportunities.
 

E. 
the sole responsibility of the CEO.
 
 

56.
Which of the following statements would most likely be heard at the functional level of an organization? 
 



A. 
"We need to divest our Canadian operations that are performing poorly."
 

B. 
"How large a budget can we allot to the marketing department?"
 

C. 
"We plan to implement a Facebook advertising initiative within 90 days."
 

D. 
"We should hire the most culturally diverse cross-functional team possible in order to generate the best new-product ideas."
 

E. 
"What dividends should we pay stockholders next quarter?"
 
 

57.
Specialized functions such as marketing and finance are generally referred to as 
 



A. 
teams.
 

B. 
groups.
 

C. 
divisions.
 

D. 
departments.
 

E. 
business units.
 
 

58.
At the functional level, the marketing department 
 



A. 
solicits talent from all levels of the organization for strategic corporate planning sessions.
 

B. 
promotes its goals to the organization's stakeholders.
 

C. 
looks outward, in part by listening to customers.
 

D. 
develops the corporate culture.
 

E. 
defines the overall strategic direction of the organization.
 
 

59.
A key role of the marketing department is to "look outward." This is accomplished by 
 



A. 
allocating financial resources across strategic business units.
 

B. 
communicating the vision of the marketing department forcefully enough to be incorporated into the overall mission of the company.
 

C. 
forming cross-functional teams to help solve the organization's marketing problems.
 

D. 
implementing new accounting methods passed by Congress.
 

E. 
listening to customers, developing and producing offerings, and implementing marketing program activities.
 
 

60.
Groups of a small number of people from different departments in an organization who are mutually accountable to accomplish a task or a common set of performance goals are referred to as 
 



A. 
designated teams.
 

B. 
strategic business units.
 

C. 
cross-functional teams.
 

D. 
business committees.
 

E. 
venture squads.
 
 

61.
Cross-functional teams refer to 
 



A. 
members of an organization who have been trained in multiple disciplines so they can easily move from one job to another as needed.
 

B. 
situations where two departments within the same company have opposing views about how a product should be developed and managed.
 

C. 
departments within an organization that carryout multiple functions due to financial constraints within the company.
 

D. 
a small number of people from different departments in an organization who are mutually accountable to accomplish a task or a common set of performance goals.
 

E. 
departments within an organization that manage the same product with distinctly different marketing programs to reach different target markets.
 
 

62.
When developing marketing programs for new offerings, marketing may provide staff to serve as part of __________, which consists of a small number of people from different departments who are mutually accountable to accomplish a task or a common set of performance goals. 
 



A. 
a cross-functional team
 

B. 
a department
 

C. 
a strategic business unit
 

D. 
an organization
 

E. 
a business consortium
 
 

63.
On the northern tip of Goose Island in the Chicago River sits the William Wrigley Jr. Company's Global Innovation Center. Here, Wrigley creates new products using a joint effort by some 250 full-time food scientists, researchers, and marketers. The people who work in this center are most likely members of 
 



A. 
an innovation squad.
 

B. 
a business consortium.
 

C. 
a multiple strategic directional team.
 

D. 
a strategic evaluation team.
 

E. 
a cross-functional team.
 
 

64.
IBM regularly creates what it calls global action teams, which take people from functional groups and bring them together to work on large client projects. These global action teams are a type of 
 



A. 
innovation group.
 

B. 
business consortium.
 

C. 
tactical group.
 

D. 
SWOT team.
 

E. 
cross-functional team.
 
 

65.
Successful organizations must be visionary, which includes the ability to 
 



A. 
develop strategies based on those that were successful in the past.
 

B. 
be backward-looking, examining the past carefully to learn from mistakes.
 

C. 
anticipate future events and respond quickly and effectively.
 

D. 
hire the most culturally diverse team possible in order to generate the best new ideas.
 

E. 
involve all stakeholders of the organization when defining its business mission.
 
 

66.
In general, a visionary organization asks which three types of questions to specify its foundation, set a direction, and formulate strategies? 
 



A. 
why, when, where
 

B. 
what, by whom, how
 

C. 
how, when, where
 

D. 
why, what, how
 

E. 
who, why, when
 
 

67.
Today's visionary organization uses three key elements to __________, set a direction, and formulate strategies. 
 



A. 
set financial goals
 

B. 
specify its foundation
 

C. 
establish detailed marketing tactics
 

D. 
assign job responsibilities
 

E. 
establish an organizational chart
 
 

68.
Today's visionary organization uses three key elements to specify its foundation, __________, and formulate strategies. 
 



A. 
set a direction
 

B. 
establish detailed marketing tactics
 

C. 
assign job responsibilities
 

D. 
set financial goals
 

E. 
establish an organizational chart
 
 

69.
Today's visionary organization uses three key elements to specify its foundation, set a direction, and 
 



A. 
set financial goals.
 

B. 
assign job responsibilities.
 

C. 
formulate strategies.
 

D. 
establish production parameters.
 

E. 
establish detailed marketing tactics.
 
 

70.
The ________ represent(s) the "why" element of a visionary organization. 
 



A. 
organizational foundation
 

B. 
organizational tactics
 

C. 
organizational mission
 

D. 
organizational direction
 

E. 
organizational strategies
 
 

71.
The _________________ represent(s) the "what" element of a visionary organization. 
 



A. 
organizational tactics
 

B. 
organizational mission
 

C. 
organizational foundation
 

D. 
organizational direction
 

E. 
organizational strategies
 
 

72.
The __________ represent(s) the "how" element of a visionary organization. 
 



A. 
organizational tactics
 

B. 
organizational mission
 

C. 
organizational foundation
 

D. 
organizational direction
 

E. 
organizational strategies
 
 

73.
The philosophical reason for an organization's existence is referred to as its organizational 
 



A. 
strategy.
 

B. 
direction.
 

C. 
foundation.
 

D. 
goal.
 

E. 
business.
 
 

74.
An organization's foundation can be broken into three key elements: 
 



A. 
products, services, and ideas.
 

B. 
business definition, long-term goals, and short-term objectives.
 

C. 
board of directors, top management, and stakeholders.
 

D. 
corporate-level strategies, SBU-level strategies, and functional-level strategies.
 

E. 
core values, mission/vision, and organizational culture.
 
 

75.
Which of the following statements regarding organizational foundation is most accurate? 
 



A. 
An organizational foundation specifies its goals.
 

B. 
An organizational foundation defines the business that it is in.
 

C. 
An organization's foundation empowers stakeholders to have a voice in the strategic marketing process.
 

D. 
An organization's foundation is its philosophical reason for being—why it exists.
 

E. 
An organization's foundation is the company, its product, and its customers.
 
 

76.
An organization's foundation includes all of the following except 
 



A. 
organizational culture.
 

B. 
business definition.
 

C. 
vision.
 

D. 
core values.
 

E. 
mission.
 
 

77.
An organization's foundation includes which of the following? 
 



A. 
core values
 

B. 
business definition
 

C. 
goals
 

D. 
strategic levels
 

E. 
offerings
 
 

78.
An organization's __________ are the fundamental, passionate, and enduring principles that guide its conduct over time. 
 



A. 
goals
 

B. 
cultures
 

C. 
strategies
 

D. 
core values
 

E. 
mission statements
 
 

79.
Core values refer to 
 



A. 
the cultural ethos of an organization.
 

B. 
proprietary values of a firm.
 

C. 
written mission statements that express an organization's goals and objectives.
 

D. 
the personal moral and ethical codes of a firm's stakeholders.
 

E. 
the fundamental, passionate, and enduring principles that guide an organization's conduct over time.
 
 

80.
A firm's __________ are timeless, capturing its heart and soul, and serve to inspire and motivate its stakeholders. 
 



A. 
core values
 

B. 
strategic goals
 

C. 
offerings
 

D. 
corporate culture
 

E. 
corporate ethos
 
 

81.
An organization's core values are most effective when communicated to and supported by 
 



A. 
competitors.
 

B. 
top management and employees.
 

C. 
suppliers.
 

D. 
resellers.
 

E. 
government regulators.
 
 

82.
Which of the following statements regarding an organization's core values is most accurate? 
 



A. 
Core values are developed by cross-functional teams for all levels of an organization.
 

B. 
Core values are important to the founders but rarely motivate a firm's stakeholders.
 

C. 
Core values change as an organization's offerings change.
 

D. 
Core values guide the organization's conduct.
 

E. 
Core values cannot be separated from the financial realities of an organization.
 
 

83.
According to Mark Zuckerberg, founder and CEO of Facebook, "We have a saying: ‘Move fast and break things.' The idea is that if you never break anything, you're probably not moving fast enough." Moving fast to build more things and learn faster is one of Facebook's 
 



A. 
sustainability doctrines.
 

B. 
goals and objectives.
 

C. 
core values.
 

D. 
moral imperatives.
 

E. 
functional strategy.
 
 

84.
The Ben & Jerry's website states: "Central to the mission of Ben & Jerry's is the belief that all three parts [product mission, economic mission, social mission] must thrive equally in a manner that commands deep respect for individuals in and outside the company and supports the communities of which they are a part." This statement reflects Ben & Jerry's 
 



A. 
sustainability doctrine.
 

B. 
goals and objectives.
 

C. 
core values.
 

D. 
moral distinctives.
 

E. 
functional strategy.
 
 

85.
An organization's employees, shareholders, board of directors, suppliers, distributors, creditors, unions, government, local communities, and customers are referred to as its 
 



A. 
stakeholders.
 

B. 
stockholders.
 

C. 
competitors.
 

D. 
target audience.
 

E. 
organizational society.
 
 

86.
All of the following are examples of stakeholders except 
 



A. 
government.
 

B. 
competitors.
 

C. 
shareholders.
 

D. 
suppliers.
 

E. 
customers.
 
 

87.
Which of the following statements regarding stakeholders is most accurate? 
 



A. 
Employees are typically not classified as a stakeholder group because they are internal to the organization.
 

B. 
There are only three types of stakeholders: customers, suppliers, and distributors.
 

C. 
All stakeholders are external to the organization.
 

D. 
Stakeholders are a varied group; all are in some way affected by how well a company performs.
 

E. 
Stakeholders are only those that have an ownership stake in an organization.
 
 

88.
By understanding its core values, an organization can take steps to define its __________, a statement of the organization's function in society that identifies its customers, markets, products, and technologies. 
 



A. 
customer value proposition
 

B. 
doctrine
 

C. 
philosophy
 

D. 
mission
 

E. 
code of ethics
 
 

89.
An organization's mission refers to 
 



A. 
the target goal it sets for current profits based on enacting a comprehensive strategic plan.
 

B. 
the target objective it projects for future market share based on enacting a comprehensive strategic plan.
 

C. 
the fundamental, passionate, and enduring principles that guide its conduct over time.
 

D. 
specific strategies and tactics that will be used to counteract any competitor's advantages.
 

E. 
a statement of the organization's functions in society that identifies its customers, markets, products, and technologies.
 
 

90.
The terms __________ and a mission statement are often used interchangeably. 
 



A. 
idea
 

B. 
objective
 

C. 
vision
 

D. 
goal
 

E. 
protocol
 
 

91.
Often used interchangeably with the term vision, a __________ frequently has a meaningful theme and a long-term orientation. 
 



A. 
point of difference
 

B. 
mission statement
 

C. 
business definition
 

D. 
customer value proposition
 

E. 
marketing plan
 
 

92.
A mission statement should be all of these except 
 



A. 
short-term.
 

B. 
inspirational.
 

C. 
clear.
 

D. 
meaningful.
 

E. 
concise.
 
 

93.
A mission statement should be 
 



A. 
short-term.
 

B. 
inspirational.
 

C. 
fact-based.
 

D. 
complex.
 

E. 
permanent.
 
 

94.
A mission statement should be 
 



A. 
short-term.
 

B. 
long-term.
 

C. 
fact-based.
 

D. 
complex.
 

E. 
permanent.
 
 

95.
The __________ for the American Red Cross is "to prevent and alleviate human suffering in the face of emergencies by mobilizing the power of volunteers and the generosity of donors." 
 



A. 
core benefit proposition
 

B. 
business definition
 

C. 
sustainability doctrine
 

D. 
mission statement
 

E. 
customer value proposition
 
 

96.
The __________ for Facebook is "To give people the power to share and make the world more open and connected." 
 



A. 
sustainability doctrine
 

B. 
core benefit proposition
 

C. 
mission statement
 

D. 
corporate philosophy
 

E. 
code of ethics
 
 

97.
"HowAboutWe is the fastest, easiest, most fun way to go on awesome dates" is the __________ for the online dating service that focuses on setting up actual activities as dates for its users. 
 



A. 
sustainability doctrine
 

B. 
core benefit proposition
 

C. 
corporate philosophy
 

D. 
mission statement
 

E. 
code of ethics
 
 

98.
Recently, many organizations have added __________ to their mission statements. 
 



A. 
a business definition
 

B. 
a social element to reflect an ideal that is morally right and worthwhile
 

C. 
an economic element to promote profit maximization
 

D. 
an expanded definition of stakeholders to include its competitors
 

E. 
their level of pricing and product quality
 
 

99.
A set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization is referred to as its 
 



A. 
mission statement.
 

B. 
core value proposition.
 

C. 
organizational culture.
 

D. 
corporate philosophy.
 

E. 
core benefit proposition.
 
 

100.
Organizational culture refers to 
 



A. 
the personal moral and ethical codes of ethics of an organization's top management.
 

B. 
a written statement expressing an organization's goals and objectives to be achieved through enacting a comprehensive strategic plan.
 

C. 
the fundamental, passionate, and enduring principles that guide an organization's conduct over time.
 

D. 
the ethos of an organization that excludes its core values.
 

E. 
a set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization.
 
 

101.
Which of the following statements regarding organizational culture is most accurate? 
 



A. 
Organizational culture exists only at the corporate level of an organization.
 

B. 
Organizational culture involves communicating and connecting with all of the firm's stakeholders.
 

C. 
Organizational culture is best used only at the functional level for the most effective results.
 

D. 
Organizational culture cannot be learned or taught.
 

E. 
Organizational culture is a statement of the organization's function in society.
 
 

102.
George Zimmer, the former CEO of Men's Wearhouse, was known to the public as the bearded company pitchman who sells suits and sport coats on TV declaring, "You'll like the way you look. I guarantee it!" He also said that to be successful, "You've got to have a company that starts with trust and fairness." Zimmer was attempting to establish ___________ for Men's Wearhouse. 
 



A. 
a vision
 

B. 
a mission statement
 

C. 
a pathos
 

D. 
a behavioral protocol
 

E. 
an organizational culture
 
 

103.
Recently, St. Joseph Hospital was named one of the "Best Places to Work in Indiana" for the sixth consecutive year. The hospital touts universal values to "keep health care human" and employees consistently put patients first, which unites them in a common goal. Hospital President Kathy Young believes that St. Joseph's __________ makes both her employees and patients happier in her hospital. 
 



A. 
vision
 

B. 
service offerings
 

C. 
organizational culture
 

D. 
pathos
 

E. 
behavioral protocol
 
 

104.
The organizational __________ answers the question, "What will we do?" 
 



A. 
foundation
 

B. 
direction
 

C. 
culture
 

D. 
strategy
 

E. 
mission
 
 

105.
In the context of organizational direction, the term business refers to 
 



A. 
the daily operational decisions that must be implemented for an organization to remain viable.
 

B. 
exchange transactions between seller and buyer in order for the seller to make sales and earn profits.
 

C. 
the clear, broad, underlying industry or market sector of an organization's offering.
 

D. 
an organization that develops an offering.
 

E. 
the objectives of a firm and the strategies and tactics that will allow it to achieve them.
 
 

106.
The clear, broad, underlying industry or market sector of an organization's offerings is referred to as its 
 



A. 
business.
 

B. 
commerce.
 

C. 
marketing.
 

D. 
competitive set.
 

E. 
product grouping.
 
 

107.
__________ argued that senior managers of 20th century American railroads defined their business too narrowly, thus failing to create strategies to compete with airlines, barges, pipelines, and trucks. 
 



A. 
Earl Bakken
 

B. 
Mark Zuckerberg
 

C. 
Reed Hastings
 

D. 
Theodore Levitt
 

E. 
Steve Jobs
 
 

108.
In terms of an organization's business, railroads lost market share in the 20th century because they 
 



A. 
had less flexible routes than trucking.
 

B. 
defined their business too narrowly.
 

C. 
tried to create a business that appealed equally to all people.
 

D. 
priced their services too high.
 

E. 
were simply an outmoded form of transportation.
 
 

109.
In the 20th century, managers of railroads let airlines, barges, pipelines, and trucks take business away from them because their strategies were developed only for the railroad business, rather than a broader definition of the __________ business. 
 



A. 
transportation
 

B. 
transcontinental shipping
 

C. 
passenger travel
 

D. 
product delivery
 

E. 
bulk cargo
 
 

110.
The strategies an organization develops to provide value to the customers it serves is called 
 



A. 
a mission statement.
 

B. 
an objective goal.
 

C. 
a vision statement.
 

D. 
a business model.
 

E. 
a protocol.
 
 

111.
A business model 
 



A. 
is a road map for the marketing activities of an organization for a specified future time period.
 

B. 
consists of the strategies an organization develops to provide value to the customers it serves.
 

C. 
is a measure of the quantitative value or trend of a marketing activity or result.
 

D. 
consists of the detailed day-to-day operational decisions for an organization.
 

E. 
is the means by which organizational goals are to be measured and documented.
 
 

112.
Many local and national chain bookstores, such as Borders and Bookstar, have closed over the past few years. This is due in part to competition from e-book readers such as Amazon's Kindle and Apple's iPad, which permit the online purchase and download of digital books from their websites. Moreover, subscribers to newspapers and magazines have cancelled their print subscriptions in favor of online news. These trends have caused the StarTribune newspaper to offer online content for $1.99 per week and Newsweek to suspend its print edition in favor of an online only weekly edition. These companies had to change their __________, an action triggered by the technological and social changes in their marketing environments. 
 



A. 
organizational cultures
 

B. 
marketing tactics
 

C. 
business models
 

D. 
strategic marketing processes
 

E. 
goals or objectives
 
 

113.
Statements of an accomplishment of a task to be achieved, often by a specific time are referred to as 
 



A. 
plans.
 

B. 
procedures.
 

C. 
strategies.
 

D. 
core values.
 

E. 
goals.
 
 

114.
Objectives refer to 
 



A. 
the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program designed to reach it.
 

B. 
criteria or standards used in evaluating proposed solutions to a marketing problem.
 

C. 
statements of an accomplishment of a task to be achieved, often by a specific time.
 

D. 
a road map for the marketing activities of an organization for a specified future time period, such as one year or five years.
 

E. 
the detailed day-to-day operational decisions essential to the overall success of marketing strategies.
 
 

115.
__________ convert an organization's mission and business into long- and short-term performance targets. 
 



A. 
Plans
 

B. 
Tactics
 

C. 
Strategies
 

D. 
Goals
 

E. 
Visions
 
 

116.
Regarding goals and objectives, which of the following statements would be most accurate? 
 



A. 
Objectives convert an organization's mission and business into long- and short-term performance targets.
 

B. 
Goals and objectives are actually the detailed day-to-day activities necessary to implement a marketing program.
 

C. 
A company's goals and objectives are often worthy in intent, but unrealistic in practice because they are never accomplished during the specified time period.
 

D. 
Goal-setting only applies to business firms; nonprofit organizations typically do not set goals because they don't earn a profit.
 

E. 
The terms goal and objective should not be used interchangeably. Goals are philosophical while objectives are performance-based.
 
 

117.
Most firms seek to maximize their long-run __________, achieving as high a financial return on their investments as possible. 
 



A. 
quality
 

B. 
market share
 

C. 
employee welfare
 

D. 
social responsibility
 

E. 
profits
 
 

118.
A new company projects that its sales will exceed its expenses within the first year of operation. This is an example of which type of goal? 
 



A. 
dollar sales revenue
 

B. 
profit
 

C. 
market share
 

D. 
unit sales
 

E. 
quality
 
 

119.
Seeking to obtain as high a financial return on their investments (ROI) as possible, firms will often set __________ goals. 
 



A. 
sales
 

B. 
quality
 

C. 
market share
 

D. 
profit
 

E. 
employee welfare
 
 

120.
If profits are acceptable, a firm that has set sales as its goal may elect to __________, even though profits may not be maximized. 
 



A. 
advertise more frequently
 

B. 
reduce its sales force
 

C. 
maintain or increase its sales
 

D. 
decrease its sustainability efforts
 

E. 
maximize customer satisfaction
 
 

121.
A small-business owner was preparing her staff for the upcoming holiday season. Her women's apparel retail store had a great year—sales and profits were up 20 percent. In a meeting with her sales staff before opening the store on Black Friday, the day after Thanksgiving, she said, "We want to move as much inventory as possible. Not only can we highlight our holiday items, why don't we also mark down some of our other seasonal items while people are in a shopping mood?" From this statement, she is concerned with a __________ goal. 
 



A. 
profit
 

B. 
sales
 

C. 
market share
 

D. 
customer satisfaction
 

E. 
survival
 
 

122.
Ben & Jerry's uses two marketing metrics to assess how it is doing in the super premium ice cream market, dollar __________ and dollar market share. 
 



A. 
profit
 

B. 
ROI
 

C. 
sales
 

D. 
customer satisfaction
 

E. 
survival
 
 

123.
Market share refers to 
 



A. 
the ratio of the profit of the firm to the total profits of all firms in the industry, excluding the firm itself.
 

B. 
the ratio of the profit of the firm to the total profits of all firms in the industry, including the firm itself.
 

C. 
the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, excluding the firm itself.
 

D. 
the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.
 

E. 
the ratio of the profits of all firms in an industry to the profits of the firm.
 
 

124.
The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself, is referred to as 
 



A. 
a sales proportionality.
 

B. 
a marketing metric.
 

C. 
an industry potential.
 

D. 
a contribution margin.
 

E. 
a market share.
 
 

125.
Market share is the ratio of sales revenue of the firm to the total sales revenue of all __________, including the firm itself. 
 



A. 
firms in the industry
 

B. 
firms in the competitive set
 

C. 
firms in the WTO
 

D. 
product groupings
 

E. 
domestic firms in a country
 
 

126.
If Dr. Pepper plans to grow its proportion of the flavors segment of the carbonated soft drink industry to 45 percent, it has set __________ goal. 
 



A. 
a sales proportionality
 

B. 
a company sales
 

C. 
an industry potential
 

D. 
a contribution margin
 

E. 
a market share
 
 

127.
A firm may have a goal to offer its customers the highest __________, as Medtronic does with its implantable medical devices. 
 



A. 
innovation
 

B. 
quality
 

C. 
service
 

D. 
value
 

E. 
warranty
 
 

128.
Complaints about one of Microsoft's Xbox video game consoles began immediately after its introduction. These complaints ranged from missing parts to incorrect programming. Microsoft should have adopted a more rigorous __________ goal. 
 



A. 
profit
 

B. 
sales revenue
 

C. 
customer satisfaction
 

D. 
employee welfare
 

E. 
quality
 
 

129.
Toyota had some difficulty recovering from a recall crisis several years ago when it was forced to recall about 6 million vehicles due to a variety of problems, most notably one with the accelerator pedal. To "polish" its brand, it implemented stricter __________ goals to improve the safety and reliability of its vehicles. 
 



A. 
profit
 

B. 
sales revenue
 

C. 
customer satisfaction
 

D. 
quality
 

E. 
employee welfare
 
 

130.
Motorola, a pioneer firm in the mobile communications space, invented a program known as Six Sigma, that sets as a goal no more than one defect in one million parts manufactured. This is an example of __________ goal. 
 



A. 
a profit
 

B. 
a sales revenue
 

C. 
a quality
 

D. 
a market share
 

E. 
an employee welfare
 
 

131.
Customers' perceptions are of vital importance to an organization. Customer __________ can be measured with surveys or by the number of customer complaints an organization receives. 
 



A. 
satisfaction
 

B. 
welfare
 

C. 
lifetime benefit
 

D. 
value
 

E. 
responsibility
 
 

132.
The top consumer complaint about bananas is how soon they start getting brown spots. Dole, a multinational agricultural company, most likely set __________ goal when it recently began adding stickers to bananas to promote the use of overripe bananas in the Yonanas machine (Dole owns 30 percent of the firm) to make a creamy, guilt-free dessert. 
 



A. 
a profit
 

B. 
a market share
 

C. 
an employee welfare
 

D. 
a customer satisfaction
 

E. 
a social responsibility
 
 

133.
Suppose L. L. Bean, a catalog retailer, has set a goal to reduce merchandise returns by 20 percent for the holiday season. The firm would most likely have set __________ goal. 
 



A. 
a profit
 

B. 
a customer satisfaction
 

C. 
a market share
 

D. 
an employee welfare
 

E. 
a social responsibility
 
 

134.
Lands' End, an American apparel and outerwear firm, ships each order within 48 hours and its guarantee is said to be the best in the world, as exemplified by its tagline "Guaranteed Period." These marketing actions by Lands' End most likely reflect its __________ goals. 
 



A. 
profit
 

B. 
market share
 

C. 
employee welfare
 

D. 
social responsibility
 

E. 
customer satisfaction
 
 

135.
When a firm recognizes the critical importance of its employees by attempting to provide good conditions and opportunities, it sets an employee __________ goal. 
 



A. 
satisfaction
 

B. 
responsibility
 

C. 
compensation
 

D. 
core value
 

E. 
welfare
 
 

136.
Howard Schultz, the founder of the American coffee chain Starbucks, provides health care for all employees who work over 20 hours per week. He says, "The companies that are doing the right thing by covering their employees [with health care coverage] are paying for the companies who don't do the right thing." This is an example of one of Starbucks' __________ goals. 
 



A. 
profit
 

B. 
market share
 

C. 
employee welfare
 

D. 
customer satisfaction
 

E. 
sales
 
 

137.
Some universities provide retirement benefits by matching the percentage an employee pays into a retirement account up to a certain percentage. This encourages a larger percentage of employees to participate in retirement planning. This is an example of __________ goal. 
 



A. 
a satisfaction
 

B. 
a sales revenue
 

C. 
a market share
 

D. 
a quality
 

E. 
an employee welfare
 
 

138.
Businesses sometimes pursue __________ goal to balance the conflicting goals of stakeholders to promote their overall welfare, even at the expense of profits. 
 



A. 
a customer satisfaction
 

B. 
a shareholder
 

C. 
a profit minimization
 

D. 
a social responsibility
 

E. 
an employee welfare
 
 

139.
American Express, the credit card and travel organization, has a long history of working for the good of all in its New York community. In 1885, it engaged its employees to help raise money to build the pedestal of the Statue of Liberty. Today, it has a program to help restore, preserve, and revitalize historic sites in New York City. These actions by American Express are partial fulfillment of the __________ the firm has established for itself as a corporate citizen. 
 



A. 
unit sales goals
 

B. 
market share goals
 

C. 
sales revenue goals
 

D. 
customer satisfaction goals
 

E. 
social responsibility goals
 
 

140.
Hasbro is a more than $4 billion global toy company that prides itself on donating to organizations that help children, since this group and their parents comprise the target market for its business. This is an example of a 
 



A. 
unit sales goal.
 

B. 
market share goal.
 

C. 
social responsibility goal.
 

D. 
sales revenue goal.
 

E. 
customer satisfaction goal.
 
 

141.
The organizational foundation sets the __________ of organizations, the organization direction sets the __________, and organizational strategies are concerned with the __________. 
 



A. 
when; why; what
 

B. 
why; what; how
 

C. 
what; how; why
 

D. 
what; where; how
 

E. 
how; where; what
 
 

142.
Organizational strategies vary in two ways, depending on 
 



A. 
the strategy's level in the organization and the offerings an organization provides to its customers.
 

B. 
the corporate level and the SBU level in the organization.
 

C. 
whether an offering is a product or a service.
 

D. 
whether they are mission statements or core values.
 

E. 
the organizational culture and its core values.
 
 

143.
A marketing plan refers to 
 



A. 
the long-term decisions made to implement the marketing program and the monitoring of those decisions.
 

B. 
a technique that marketing managers use to quantify performance measures and growth targets to analyze their firm's strategic business units (SBUs) as though they were a collection of separate investments.
 

C. 
a road map for the marketing activities of an organization for a specified future time period, such as one year or five years.
 

D. 
the detailed day-to-day operational decisions essential to the overall success of marketing strategies.
 

E. 
a road map for the entire organization for a specified future period of time, such as one year or five years.
 
 

144.
A road map for the marketing activities of an organization for a specified future time period, such as one year or five years, is referred to as a 
 



A. 
business plan.
 

B. 
marketing objective.
 

C. 
marketing plan.
 

D. 
marketing strategy.
 

E. 
marketing program.
 
 

145.
A marketing plan is developed during which phase of the strategic marketing process? 
 



A. 
implementation
 

B. 
control
 

C. 
development
 

D. 
planning
 

E. 
evaluation
 
 

146.
A(n) __________ is the visual computer display of the essential information related to achieving a marketing objective. 
 



A. 
marketing metric
 

B. 
output report
 

C. 
marketing dashboard
 

D. 
information screen
 

E. 
corporate dashboard
 
 

147.
A marketing dashboard refers to 
 



A. 
a "report card" prepared by the marketing department regarding its performance in terms of environmental and social responsibility.
 

B. 
the display of information found on a car's dashboard.
 

C. 
an "app" that uses a car navigation device metaphorically to indicate the specific direction in which a company wishes to grow based on its annual marketing plan.
 

D. 
information about an organization's marketing metrics presented orally so marketers can quickly spot deviations from plans and take corrective actions.
 

E. 
the visual computer display of the essential information related to achieving a marketing objective.
 
 

148.
With a marketing dashboard, a marketing manager can glance at all of the following except 
 



A. 
the time frame for which the data are presented.
 

B. 
a graph.
 

C. 
a table.
 

D. 
a printed report.
 

E. 
a map.
 
 

149.
Which of the following statements regarding a marketing dashboard is most accurate? 
 



A. 
The more text (words) that is displayed, the better it is for a marketing manager to identify trends, interpret the data, and take corrective actions.
 

B. 
A marketing dashboard very often includes 20 or more marketing metrics on the computer screen.
 

C. 
Marketing dashboards provide graphic displays of a product's performance, such as sales, website traffic, etc.
 

D. 
For accuracy, the marketing dashboard should be updated weekly.
 

E. 
Marketing dashboards often show key measures such as human resource turnover, strategy success, and societal well-being.
 
 

150.
A measure of the quantitative value or trend of a marketing activity or result is referred to as 
 



A. 
trend analysis.
 

B. 
a marketing measurement.
 

C. 
a marketing dashboard.
 

D. 
a marketing metric.
 

E. 
value analysis.
 
 

151.
A marketing metric refers to 
 



A. 
a measure of the quantitative value or trend of a marketing activity or result.
 

B. 
a form of linear trend analysis used to project future profits based on existing marketing plans.
 

C. 
one of a series of mathematical formulas used to calculate potential profits based upon different scenarios of the forces in the marketing environment.
 

D. 
information about an organization's core values and code of ethics so marketers can quickly spot deviations and take corrective actions.
 

E. 
the value of a product in terms of its contribution to employee welfare.
 
 

152.
The primary purpose of a marketing metric is to 
 



A. 
assign qualitative values to quantitative data.
 

B. 
allow the sharing of information across product lines.
 

C. 
measure the quantitative value of a marketing activity.
 

D. 
forecast potential product/service opportunities over a period of five years.
 

E. 
provide a numerically precise measurement of management judgment for an industry's growth.
 
 

153.
Data visualization 
 



A. 
is the visual computer display of the essential information related to achieving a marketing objective.
 

B. 
is a road map for the marketing activities of an organization for a specified future time period.
 

C. 
is the process of continuously collecting information about customers' needs, sharing this information across departments, and using it to create marketing metrics.
 

D. 
is a measure of the quantitative value or trend of a marketing activity or result.
 

E. 
presents information about an organization's marketing metrics graphically so marketers can quickly spot deviations from plans and take corrective actions.
 
 

154.
Consider the following Ben & Jerry's dollar sales and market share details. A marketing manager for Ben & Jerry's has been provided with a marketing dashboard display. She notices that dollar sales for 2014 were $240 million and in 2015 they were $250 million. What was the formula used to calculate the dollar sales for each of these two years? 
 



A. 
Dollar sales ($) = Average price × Quantity manufactured in each year.
 

B. 
Dollar sales ($) = Average cost of goods sold - Fixed costs in each year.
 

C. 
Dollar sales ($) = Average price - Shrinkage rate in each year.
 

D. 
Dollar sales ($) = Average price × Quantity sold in each year.
 

E. 
Dollar sales ($) = Average cost of goods sold - Variable costs in each year.
 
 

155.
Consider the following Ben & Jerry's dollar sales and market share details. A marketing manager for Ben & Jerry's has been provided with a marketing dashboard display. He notices that dollar market share for 2014 was 18.4 percent and for 2015 it was 20.0 percent. What simple formula was used to calculate the dollar market share percentages for each of these two years? 
 



A. 
Dollar market share (%) = Ben & Jerry's sales ($)/Total industry sales, including Ben & Jerry's sales ($).
 

B. 
Dollar market share (%) = Total industry sales, including Ben & Jerry's sales ($)/Ben & Jerry's sales ($).
 

C. 
Dollar market share (%) = Total industry sales, including Ben & Jerry's sales ($)/Ben & Jerry's unit sales ($).
 

D. 
Dollar market share (%) = Total industry sales, including Ben & Jerry's sales ($)/Ben & Jerry's net profit ($).
 

E. 
Dollar market share (%) = Ben & Jerry's sales ($)/Gross domestic product ($).
 
 

156.
An organization's special capabilities, including skills, technology, and resources that distinguish it from other organizations and provide customer value, are referred to as 
 



A. 
points of differences.
 

B. 
sustainable advantages.
 

C. 
core values.
 

D. 
points of similarity.
 

E. 
competencies.
 
 

157.
An organization's competencies include all of the following except 
 



A. 
profit.
 

B. 
customer service.
 

C. 
technologies.
 

D. 
resources.
 

E. 
employee skills.
 
 

158.
Rhone-Poulenc is an international French company that produces and markets a variety of chemicals and pharmaceuticals. Due to the resources it makes available to its scientists and researchers, the company has a number of Nobel Prize winners working in its laboratories. This ability to employ some of the finest minds in the world is an example of a 
 



A. 
point of similarity.
 

B. 
competency.
 

C. 
sustainable advantage.
 

D. 
product development strategy.
 

E. 
human resource strategy.
 
 

159.
Designing a car is expensive and time-consuming even with the use of computers because of the difficulty of getting all the varied departments to work together. Mercedes-Benz created a unique centralized web-based system that cuts the design and production process by at least two years, thus providing customer value. This is an example of 
 



A. 
a point of similarity.
 

B. 
an innovation-oriented mission.
 

C. 
an action program.
 

D. 
an operational goal implementation.
 

E. 
a competency.
 
 

160.
Evergreen Air Center is the world's biggest parking lot for unwanted aircraft. Airlines pay a monthly fee from $750 to $5,000 to mothball their unneeded airplanes there. Its location is on 1,600 acres of Arizona desert near Tucson. The Southwest climate of dry, warm air serves as a cheap and effective airplane preservative against rust. Evergreen's location is 
 



A. 
a competency.
 

B. 
a sustainable advantage.
 

C. 
a competitive identity.
 

D. 
a core benefit proposition.
 

E. 
an innovative distinction.
 
 

161.
A competitive advantage refers to 
 



A. 
the cluster of benefits that an organization promises customers to satisfy their needs.
 

B. 
those characteristics of a product that make it superior to competitive substitutes.
 

C. 
a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation.
 

D. 
actions taken by a firm with the sole intent of putting a competitor out of business.
 

E. 
the added value given to a product beyond the functional benefits provided.
 
 

162.
A unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation, is referred to as a 
 



A. 
creative advantage.
 

B. 
marketing edge.
 

C. 
distinctive competency.
 

D. 
competitive advantage.
 

E. 
core benefit.
 
 

163.
Weight Watchers is a weight-management company with operations in about 30 countries. Consumers buy almost $5 billion of Weight Watchers-branded products each year, and every week approximately 1.3 million people attend Weight Watchers meetings. The company's brand recognition and meeting infrastructure are difficult for competitors to match, providing a 
 



A. 
viable mission.
 

B. 
competitive advantage.
 

C. 
tactical innovation.
 

D. 
core benefit.
 

E. 
sales orientation.
 
 

164.
St. Jude Medical makes cardiovascular medical devices, including the world's most widely used mechanical heart valve. Its products include tissue heart valves, pacemakers, and implantable cardiovascular defibrillators. St. Jude's innovation in cardiac devices helps it outperform rivals, and thus provides it with a 
 



A. 
competitive advantage.
 

B. 
set of core values.
 

C. 
core benefit proposition.
 

D. 
marketing edge.
 

E. 
viable mission.
 
 

165.
Netflix is a company that rents DVD movies and television either by mail or streaming over the Internet. It jumped into an industry where there were many competitors, both local and national video stores. Initially, it established a loyal clientele by providing a service that was not available—reliable and fast shipment. Its delivery system created Netflix's 
 



A. 
viable mission.
 

B. 
competitive advantage.
 

C. 
tactical innovation.
 

D. 
core benefit.
 

E. 
sales orientation.
 
 

166.
Men's Wearhouse caters to the man who doesn't necessarily enjoy shopping. Its stores are in free-standing locations (not inside the mall) so customers can get in and out quickly. Additionally, Men's Wearhouse targets the budget-conscious consumer with suit prices ranging from $150 to $850. The location of its stores and its pricing strategy both are part of Men's Wearhouse's 
 



A. 
competitive advantage.
 

B. 
core values.
 

C. 
core benefit proposition.
 

D. 
marketing edge.
 

E. 
viable mission.
 
 

167.
The online retailer Lands' End communicates a remarkable commitment to its __________ with these unconditional words: "We accept any return, for any reason. Guaranteed Period." 
 



A. 
competitive advantage
 

B. 
core values
 

C. 
core benefit proposition
 

D. 
customers
 

E. 
mission statement
 
 

168.
<no longer> Lands' End is primarily known as a catalog retailer. This means that traditional department stores, mass merchandisers, specialty shops, and other catalog retailers are considered to be Lands' End's 
 



A. 
consideration set.
 

B. 
industry.
 

C. 
competitors.
 

D. 
target market.
 

E. 
stakeholders.
 
 

169.
All of the following retailers are principal or direct competitors to Lands' End except 
 



A. 
Amazon.com.
 

B. 
Sears.
 

C. 
L. L. Bean.
 

D. 
Target.
 

E. 
Pierre Cardin.
 
 

170.
Two commonly used techniques to aid mangers with important decisions for setting a direction and allocating resources include __________ and __________ analysis strategies. 
 



A. 
micromarketing; macromarketing
 

B. 
business portfolio; diversification
 

C. 
investment; divestment
 

D. 
dashboards; metrics
 

E. 
subjective; objective
 
 

171.
The Boston Consulting Group uses __________ to quantify performance measures and growth targets to analyze its clients' strategic business units as though they were a collection of separate investments. 
 



A. 
target marketing
 

B. 
synergy analysis
 

C. 
market-product grids
 

D. 
business portfolio analysis
 

E. 
diversification analysis
 
 

172.
The Boston Consulting Group uses business portfolio analysis to quantify performance measures and growth targets to analyze its clients' strategic business units 
 



A. 
as if each were a separate investment.
 

B. 
to establish their worth to society at large.
 

C. 
to determine which would be suited for a SWOT analysis.
 

D. 
to determine which units are candidates for diversification analysis.
 

E. 
to determine which units can be divided into smaller, tactical business units.
 
 

173.
Business portfolio analysis refers to 
 



A. 
a tool that helps a firm search for growth opportunities from among current and new markets as well as current and new products.
 

B. 
a technique that managers use to graphically track their firm's strategic business units as though they were a single expense in order to identify cost-cutting measures.
 

C. 
a technique that managers use to quantify performance measures and growth targets to analyze their firm's strategic business units as though they were a collection of separate investments.
 

D. 
an analysis that uses percentage points of market share as the common basis of comparison to allocate marketing resources effectively for different product lines within the same firm.
 

E. 
a tool that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.
 
 

174.
A technique that managers use to categorize strategic business units as question marks, stars, cash cows, or dogs is referred to as 
 



A. 
an investment (ROI) analysis.
 

B. 
a synergy analysis.
 

C. 
a marketing audit.
 

D. 
a diversification analysis.
 

E. 
a business portfolio analysis.
 
 

175.
The purpose of business portfolio analysis is to 
 



A. 
add or delete product line and brand extensions.
 

B. 
search for growth opportunities from among current and new markets as well as current and new products.
 

C. 
alter a product's characteristic, such as its quality, performance, or appearance, to increase its value to customers and increase sales.
 

D. 
determine the appeal of each strategic business unit or offering and then determine the amount of cash each should receive.
 

E. 
seek opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.
 
 

176.
In the Boston Consulting Group (BCG) model for analysis of a firm's strategic business units, or SBUs, the vertical axis reflects 
 



A. 
market growth rate.
 

B. 
marketing efficiencies.
 

C. 
industry attractiveness.
 

D. 
market segment size.
 

E. 
relative market share.
 
 

177.
The Boston Consulting Group (BCG) business portfolio analysis requires an organization to locate the position for each of its strategic business units (SBUs) on a growth-share matrix. In a growth-share matrix, the vertical axis of the matrix indicates 
 



A. 
the annual rate of growth of the firm's largest competitor.
 

B. 
the relative dollar market share of the largest competitor.
 

C. 
the annual rate of growth of the SBU's industry.
 

D. 
the relative unit market share of the largest competitor.
 

E. 
the annual rate of growth of the firm itself.
 
 

178.
The Boston Consulting Group (BCG) business portfolio analysis requires an organization to locate the position for each of its strategic business units (SBUs) on a growth-share matrix. In a growth-share matrix, the horizontal axis of the matrix indicates 
 



A. 
the annual rate of growth of the SBU's industry.
 

B. 
the relative dollar market share of the largest competitor.
 

C. 
the annual rate of growth of the firm's largest competitor.
 

D. 
the relative unit market share of the smallest competitor.
 

E. 
the annual rate of growth of the firm itself.
 
 

179.
In the Boston Consulting Group (BCG) model for analysis of a firm's strategic business units, or SBUs, the horizontal axis reflects 
 



A. 
market growth rate.
 

B. 
marketing efficiencies.
 

C. 
industry attractiveness.
 

D. 
market segment size.
 

E. 
relative market share.
 
 

180.
In a BCG growth-share matrix, a relative market share of 10 × at the left end of the scale on its horizontal axis means that the SBU has 10 times the share of its largest competitor, whereas a relative market share of 0.1 × at the right end of the scale on its horizontal axis means that 
 



A. 
the SBU has only 10 percent of the share of its average competitor.
 

B. 
the SBU has 100 percent of the share of its largest competitor.
 

C. 
the growth rate between the SBU and the next largest competitor is actually identical.
 

D. 
the SBU has only 10 percent of the share of its largest competitor.
 

E. 
the industry growth rate is declining.
 
 

181.
All of the following are names the Boston Consulting Group (BCG) has given to describe the four quadrants in its growth-share matrix except 
 



A. 
dogs.
 

B. 
stars.
 

C. 
question marks.
 

D. 
cash cows.
 

E. 
hedgehogs.
 
 

182.
The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Cash cows are SBUs that are classified as having 
 



A. 
high market growth rates and high relative market shares.
 

B. 
low market growth rates but high relative market shares.
 

C. 
low market growth rates and low relative market shares.
 

D. 
high market growth rates but low relative market shares.
 

E. 
medium market growth rates and medium relative market shares.
 
 

183.
Strategic business units (SBUs) with dominant shares of slow-growth markets that provide cash to cover the organization's overhead and to invest in other SBUs are referred to as 
 



A. 
cash cows.
 

B. 
stars.
 

C. 
question marks.
 

D. 
dogs.
 

E. 
hedgehogs.
 
 

184.
The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Cash cows are located in which quadrant of the BCG growth-share matrix? 
 



A. 
upper left quadrant
 

B. 
upper right quadrant
 

C. 
center of the four quadrants
 

D. 
lower right quadrant
 

E. 
lower left quadrant
 
 

185.
Several years ago, Black & Decker purchased General Electric's small appliances product line. Black & Decker purchased the line because it needed the cash generated from a product line that had a dominant market share in the slow-growth small appliance industry. GE's small appliances product line is most likely a __________ for Black & Decker. 
 



A. 
dog
 

B. 
cash cow
 

C. 
question mark
 

D. 
star
 

E. 
hedgehog
 
 

186.
The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Stars are SBUs that are classified as having 
 



A. 
high market growth rates and high relative market shares.
 

B. 
low market growth rates but high relative market shares.
 

C. 
low market growth rates and low relative market shares.
 

D. 
high market growth rates but low relative market shares.
 

E. 
medium market growth rates and medium relative market shares.
 
 

187.
Strategic business units (SBUs) with a high share of high-growth markets that may not generate enough cash to support their own demanding needs for future growth are referred to as 
 



A. 
dogs.
 

B. 
cash cows.
 

C. 
question marks.
 

D. 
stars.
 

E. 
hedgehogs.
 
 

188.
The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Stars are located in which quadrant of the BCG growth-share matrix? 
 



A. 
upper left quadrant
 

B. 
upper right quadrant
 

C. 
center of the four quadrants
 

D. 
lower right quadrant
 

E. 
lower left quadrant
 
 

189.
Solarcom is a 30-year-old information technology company that owns several subsidiaries. One of its subsidiaries is Atlantix Global Systems, which is one of the leading wholesalers for refurbished computer equipment. It has a large share of an industry that is growing worldwide. According to the BCG business portfolio analysis framework, Atlantix Global would most likely be classified as a 
 



A. 
dog.
 

B. 
cash cow.
 

C. 
question mark.
 

D. 
hedgehog.
 

E. 
star.
 
 

190.
Strategic business units with a low share of high-growth markets that may require large cash injections of cash just to maintain market share are referred to as 
 



A. 
dogs.
 

B. 
cash cows.
 

C. 
question marks.
 

D. 
stars.
 

E. 
hedgehogs.
 
 

191.
The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Question marks are SBUs that are classified as having 
 



A. 
high market growth rates and high relative market shares.
 

B. 
low market growth rates but high relative market shares.
 

C. 
low market growth rates and low relative market shares.
 

D. 
high market growth rates but low relative market shares.
 

E. 
medium market growth rates and medium relative market shares.
 
 

192.
The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Question marks are located in which quadrant of the BCG growth-share matrix? 
 



A. 
upper left quadrant
 

B. 
upper right quadrant
 

C. 
center of the four quadrants
 

D. 
lower right quadrant
 

E. 
lower left quadrant
 
 

193.
Strategic business units (SBUs) with a low share of slow-growth markets that may generate enough cash to sustain themselves but do not hold the promise of ever becoming real winners for the organization are referred to as 
 



A. 
dogs.
 

B. 
cash cows.
 

C. 
stars.
 

D. 
question marks.
 

E. 
hedgehogs.
 
 

194.
The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Dogs are SBUs that are classified as having 
 



A. 
high market growth rates and high relative market shares.
 

B. 
low market growth rates but high relative market shares.
 

C. 
low market growth rates and low relative market shares.
 

D. 
high market growth rates but low relative market shares.
 

E. 
medium market growth rates and medium relative market shares.
 
 

195.
The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Dogs are located in which quadrant of the BCG growth-share matrix? 
 



A. 
upper left quadrant
 

B. 
upper right quadrant
 

C. 
center of the four quadrants
 

D. 
lower right quadrant
 

E. 
lower left quadrant
 
 

196.
In its business portfolio analysis, an organization's strategic business units (SBUs) often start as __________ and eventually become __________. 
 



A. 
dogs; question marks
 

B. 
question marks; stars
 

C. 
stars; question marks
 

D. 
stars; dogs
 

E. 
question marks; dogs
 
 

197.
While hybrid vehicles are very fuel-efficient, they are also expensive to purchase. Still, hybrid vehicles sales have a compound annual growth rate of 88.6 percent in recent years. Several years ago, the Honda Motor Co. unveiled the hybrid version of the Honda Civic. Sales of the Civic eventually surpassed those of the Toyota Prius, making it the top-selling hybrid car in the United States. For years, Honda has experienced tremendous success with its Accords; these Honda cars are the top-selling automobiles in the United States. Where would the Honda Civic (hybrid version) and the Honda Accord fall in the BCG business portfolio analysis matrix? 
 



A. 
The hybrid Civic is a star; the Accord is a cash cow.
 

B. 
The hybrid Civic is a cash cow; the Accord is a star.
 

C. 
Due to the overwhelming success of Honda cars, both the Accord and the hybrid Civic are cash cows.
 

D. 
The hybrid Civic is a dog; the Accord is a cash cow.
 

E. 
The hybrid Civic is a dog; the Accord is a star.
 
 

198.
In the BCG growth-share matrix, SBUs found in the high growth rate-high relative market share quadrant would be called 
 



A. 
cash cows.
 

B. 
question marks.
 

C. 
dogs.
 

D. 
hedgehogs.
 

E. 
stars.
 
 

199.
In the BCG growth-share matrix, SBUs found in the high growth rate-low relative market share quadrant would be called 
 



A. 
cash cows.
 

B. 
stars.
 

C. 
question marks.
 

D. 
dogs.
 

E. 
hedgehogs.
 
 

200.
In the BCG growth-share matrix, SBUs found in the low growth rate-low relative market share quadrant would be called 
 



A. 
cash cows.
 

B. 
stars.
 

C. 
question marks.
 

D. 
dogs.
 

E. 
hedgehogs.
 
 

201.
In the BCG growth-share matrix, SBUs found in the low growth rate-high relative market share quadrant would be called 
 



A. 
cash cows.
 

B. 
stars.
 

C. 
question marks.
 

D. 
dogs.
 

E. 
hedgehogs.
 
 

202.
To move an SBU from its current position on a BCG business portfolio analysis, a manager should concentrate mostly on 
 



A. 
influencing the relative market share.
 

B. 
enhancing employee motivation to move a low-valued SBU to a higher one.
 

C. 
adding a variety of new SBUs that will force out older ones.
 

D. 
influencing the market growth rate.
 

E. 
simplifying its offerings by removing features.
 
 

203.
Because an organization has limited influence on market growth rate, its main alternative for moving an SBU on the portfolio analysis matrix is to try to change its relative market share. The most likely way for a company to turn a question mark into a star rather than a dog is to 
 



A. 
divert funds to other SBUs.
 

B. 
reduce advertising for it.
 

C. 
inject cash into it.
 

D. 
reduce the feature set for it.
 

E. 
decrease the market growth rate.
 
 

204.
With the arrival of tablet devices, such as Apple's iPad in 2010, growth in the global PC industry has slowed considerably and sales were expected to be declining by 2016. If a firm offering a range of PCs had slightly increased its global unit market share of PC sales from 10 to 12 percent, the company should be concerned that this product is becoming a 
 



A. 
question mark.
 

B. 
star.
 

C. 
hedgehog.
 

D. 
cash cow.
 

E. 
dog.
 
 

205.
Apple entered the music player market with its iPod in 2001 and by 2014 it had a 70 percent share of this market. However, global MP3 music player unit sales over the past few years have fallen dramatically and were expected to decline further by 2016, as Apple announced it is discontinuing the iPod Classic while it will continue to sell three iPod product lines. Currently, Apple's iPod SBU appears to be a 
 



A. 
question mark.
 

B. 
star.
 

C. 
hedgehog.
 

D. 
cash cow.
 

E. 
dog.
 
 

206.
Apple launched its revolutionary Apple watch in 2015 as the first wearable technology that used a multi-touch user interface. The wearable technologies market grew at a rate of more than 100 percent in 2015. Apple sales were substantial despite a relatively high price and short battery life. The Apple watch enters the market as a 
 



A. 
question mark.
 

B. 
raptor.
 

C. 
hedgehog.
 

D. 
cash cow.
 

E. 
dog.
 
 

207.
Apple launched the iPhone in 2007, and unit sales reached an astonishing 47.7 percent market share in the smartphone industry by 2015. The global smartphone market is expected to grow at an annual rate of 9.8 percent through 2018 due to the growth in China and other markets. Currently, Apple's iPhone SBU appears to be a 
 



A. 
question mark.
 

B. 
star.
 

C. 
hedgehog.
 

D. 
cash cow.
 

E. 
dog.
 
 

208.
One of the strengths inherent in the use of the BCG business portfolio analysis is that it 
 



A. 
is based solely on company perception rather than actual data.
 

B. 
considers all factors that might impact an SBU's value to an organization.
 

C. 
acts as a strong motivational tool for employees in SBUs that have been labeled "dogs" or "question marks."
 

D. 
forces a firm to place each of its SBUs in the growth-share matrix, which in turn suggests which SBUs will be cash producers or cash users in the future.
 

E. 
identifies specific marketing strategies and marketing tactics on how to solve SBU shortcomings.
 
 

209.
One of the weaknesses inherent in the use of the BCG business portfolio analysis is that it 
 



A. 
causes dissension between different divisions when one is labeled a "star" and another a "dog."
 

B. 
reduces employee motivation to move a low valued SBU to a higher one.
 

C. 
considers too many SBU factors beyond market growth rate and relative market share.
 

D. 
does not require sales forecasts in order to be implemented.
 

E. 
is often difficult to obtain the needed information to correctly place SBUs in the matrix.
 
 

210.
A technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products is referred to as 
 



A. 
diversification analysis.
 

B. 
business portfolio analysis.
 

C. 
a market-product grid framework.
 

D. 
synergy analysis.
 

E. 
market segmentation.
 
 

211.
Diversification analysis refers to 
 



A. 
a technique that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.
 

B. 
a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization.
 

C. 
a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.
 

D. 
a technique used to determine the appeal of each SBU or offering and then the amount of cash, if any, each should receive.
 

E. 
a framework that identifies four "generic" strategies to achieve a competitive advantage.
 
 

212.
Which of the following statements regarding diversification analysis is most accurate? 
 



A. 
Companies should only use diversification analysis if they are well-established; new companies that use this process run the risk of trying to do too much too soon.
 

B. 
For any product, there is both a current and a new market; for any market, there is both a current and a new product.
 

C. 
Most companies discover that there is at least one product that is targeted to the wrong market.
 

D. 
Diversification analysis is only effective for consumer products.
 

E. 
Diversification analysis is used to forecast and calculate industry sales for new products.
 
 

213.
A marketing strategy to increase sales of current products in current markets is referred to as 
 



A. 
market penetration.
 

B. 
market development.
 

C. 
product development.
 

D. 
diversification.
 

E. 
marketing synergy.
 
 

214.
Market penetration refers to the marketing strategy of 
 



A. 
selling current products to new markets.
 

B. 
selling new products to new markets.
 

C. 
selling new products to current markets.
 

D. 
selling the same brands in both current and new markets.
 

E. 
increasing sales of current products in current markets.
 
 

215.
One way a company can benefit from implementing a market penetration strategy would be to 
 



A. 
sell more products at a lower price in new markets.
 

B. 
sell the same amount of product at a higher price in the same market.
 

C. 
find a new market and sell the product at a much higher price.
 

D. 
alter the product and sell it to a new market.
 

E. 
reduce promotion and distribution costs to improve production efficiencies for the product in reaching new markets.
 
 

216.
When using a __________ strategy, there is no change in either the basic product line or the markets served. Instead, increased sales are generated by selling either more products through better promotion or distribution or the same number of products at a higher price. 
 



A. 
product development
 

B. 
market development
 

C. 
diversification
 

D. 
market saturation
 

E. 
market penetration
 
 

217.
If Ben & Jerry's sold more units of its Bonnaroo Buzz Fair Trade-sourced super premium ice cream to U.S. consumers as a result of increased promotion while keeping its price per pint the same, it would be using a __________ strategy. 
 



A. 
product development
 

B. 
market development
 

C. 
market penetration
 

D. 
diversification
 

E. 
market saturation
 
 

218.
If sales revenues for Starbucks VIA Ready Brew instant coffee sold to U.S. consumers increased as a result of a slight price increase of $0.25 per pack, it would be using a __________ strategy. 
 



A. 
product development
 

B. 
market development
 

C. 
market penetration
 

D. 
diversification
 

E. 
market saturation
 
 

219.
The marketing strategy to sell current products to new markets is referred to as 
 



A. 
market penetration.
 

B. 
market infiltration.
 

C. 
market development.
 

D. 
product development.
 

E. 
diversification.
 
 

220.
Market development refers to the marketing strategy of 
 



A. 
increasing sales of current products in current markets.
 

B. 
selling new products to new markets.
 

C. 
selling new products to current markets.
 

D. 
selling the same brands in both current and new markets.
 

E. 
selling current products to new markets.
 
 

221.
If Ben & Jerry's starts selling Bonnaroo Buzz Fair Trade-sourced super premium ice cream in Brazil for the first time, it will be using a __________ strategy. 
 



A. 
product development
 

B. 
market development
 

C. 
diversification
 

D. 
market saturation
 

E. 
market penetration
 
 

222.
Part of the growth strategy for Yum! Brands, the parent company of KFC, Pizza Hut, and Taco Bell, is expansion of its current fast-food businesses into new markets, such as China, Russia, and India. This type of expansion would be a __________ strategy. 
 



A. 
product development
 

B. 
market penetration
 

C. 
diversification
 

D. 
market development
 

E. 
market saturation
 
 

223.
The marketing strategy of selling new products to current markets is referred to as 
 



A. 
product penetration.
 

B. 
product development.
 

C. 
market development.
 

D. 
diversification.
 

E. 
market penetration.
 
 

224.
Product development refers to the marketing strategy of 
 



A. 
increasing sales of current products in current markets.
 

B. 
selling current products to new markets.
 

C. 
selling new products to new markets.
 

D. 
selling new products to current markets.
 

E. 
selling the same brands in both current and new markets.
 
 

225.
If Ben & Jerry's sold a line of new "Get the Dough Out of Politics" T-shirts targeted to college students in the United States, it would be using a __________ strategy. 
 



A. 
product development
 

B. 
market development
 

C. 
market penetration
 

D. 
diversification
 

E. 
market saturation
 
 

226.
When Starbucks announced that it would release a new single-serve Verismo high-pressure brewing machine in its U.S. outlets, it was using a __________ strategy. 
 



A. 
product development
 

B. 
market development
 

C. 
market penetration
 

D. 
diversification
 

E. 
market saturation
 
 

227.
The marketing strategy of developing new products and selling them in new markets is referred to as 
 



A. 
product penetration.
 

B. 
product development.
 

C. 
market development.
 

D. 
market penetration.
 

E. 
diversification.
 
 

228.
Diversification refers to the marketing strategy of 
 



A. 
increasing sales of current products in current markets.
 

B. 
selling current products to new markets.
 

C. 
selling new products to new markets.
 

D. 
selling new products to current markets.
 

E. 
selling the same brands in both current and new markets.
 
 

229.
Which of the marketing strategies for expanding sales revenue presents the most risk for an organization? 
 



A. 
product development
 

B. 
product-market evolution
 

C. 
market development
 

D. 
market penetration
 

E. 
diversification
 
 

230.
If Ben & Jerry's sold a line of new "Get the Dough Out of Politics" T-shirts targeted to college students in Latvia, it would be using a __________ strategy. 
 



A. 
product development
 

B. 
market development
 

C. 
market penetration
 

D. 
diversification
 

E. 
market saturation
 
 

231.
The current markets-current products quadrant in a diversification analysis matrix represents the marketing strategy of 
 



A. 
market penetration.
 

B. 
product development.
 

C. 
market development.
 

D. 
product penetration.
 

E. 
diversification.
 
 

232.
A family owns a gelato business next to a small town's park, a favorite place for parents and children to stop on their way home from work or school. However, the business owner is barely making ends meet. He experiments by purchasing large take-home containers so customers can not only consume gelato in the park but also enjoy it after dinner at home. Sales of gelato soar and profits begin to rise. This is an example of a __________ strategy.  
 



A. 
product penetration 
 

B. 
market penetration 
 

C. 
product development 
 

D. 
market development 
 

E. 
market evolution 
 
 

233.
The current markets-new products quadrant in a diversification analysis matrix represents the marketing strategy of  
 



A. 
market penetration. 
 

B. 
product penetration. 
 

C. 
market development. 
 

D. 
product development. 
 

E. 
diversification. 
 
 

234.
A family owns a gelato business next to a small town's park, a favorite place for parents and children to stop on their way home from work or school. However, the business owner is barely making ends meet. Customers frequently compliment his unusual gelato flavor selections. He decides to package his special flavorings into small packets that can be used at home for drinks. Sales of the packets soar and profits rise. This is an example of a __________ strategy. 
 



A. 
market penetration
 

B. 
product development
 

C. 
market development
 

D. 
diversification
 

E. 
product-market addition
 
 

235.
The new markets-current products quadrant in a diversification analysis matrix represents the marketing strategy of 
 



A. 
product development.
 

B. 
market penetration.
 

C. 
market development.
 

D. 
product penetration.
 

E. 
diversification.
 
 

236.
The new markets-new products section in a diversification analysis matrix represents the marketing strategy of 
 



A. 
market penetration.
 

B. 
product penetration.
 

C. 
market development.
 

D. 
product development.
 

E. 
diversification.
 
 

237.
A family owns a gelato business next to a small town's park, a favorite place for parents and children to stop on their way home from work or school. However, the business owner is barely making ends meet. In addition to running his store, he begins selling hand-made flies on the Internet for professional sports fishermen. This is an example of a __________ strategy. 
 



A. 
market penetration
 

B. 
product development
 

C. 
market development
 

D. 
product-market expansion
 

E. 
diversification
 
 

238.
If Ben & Jerry's were to sell children's clothing under the Ben & Jerry's brand to Brazilians for the first time, this would be an example of a __________ strategy. 
 



A. 
market penetration
 

B. 
product development
 

C. 
diversification
 

D. 
market development
 

E. 
product-market expansion
 
 

239.
Which two marketing strategies would be used if a firm were not willing to find new markets? 
 



A. 
product development and market penetration
 

B. 
product development and diversification
 

C. 
market development and product development
 

D. 
market development and market penetration
 

E. 
market development and diversification
 
 

240.
The strategic marketing process 
 



A. 
involves taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it.
 

B. 
is a technique to quantify performance measures and growth targets to analyze its clients' strategic business units as though they were a collection of separate investments.
 

C. 
describes an organization's appraisal of its internal strengths and weaknesses and its external opportunities and threats.
 

D. 
is an approach whereby an organization allocates its marketing mix resources to reach its target markets.
 

E. 
seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.
 
 

241.
An approach whereby an organization allocates its marketing mix resources to reach its target markets is referred to as 
 



A. 
the tactical marketing process.
 

B. 
situational analysis.
 

C. 
diversification analysis.
 

D. 
synergy analysis.
 

E. 
the strategic marketing process.
 
 

242.
An organization uses the strategic marketing process to answer all of the following questions except 
 



A. 
"How do our results compare with our plans?"
 

B. 
"How do we allocate our resources to get where we want to go?"
 

C. 
"Where do we want to go?"
 

D. 
"Do deviations require new plans?"
 

E. 
"How do we convert our plans into actions?"
 
 

243.
Within the strategic marketing process, the __________ is the result of the planning phase that proceeds to the implementation phase where it is carried out. 
 



A. 
marketing tactics
 

B. 
business plan
 

C. 
product protocol
 

D. 
marketing plan
 

E. 
marketing strategy
 
 

244.
The key steps of planning, implementation, and evaluation are part of 
 



A. 
gap analysis.
 

B. 
the strategic marketing process.
 

C. 
situational analysis.
 

D. 
synergy analysis.
 

E. 
diversification analysis.
 
 

245.
What are the three steps involved in the planning phase of the strategic marketing process? 
 



A. 
Step 1: situation (SWOT) analysis; Step 2: market-product focus and goal setting; and Step 3: the marketing program
 

B. 
Step 1: analysis; Step 2: planning; and Step 3: implementation
 

C. 
Step 1: set market and product goals; Step 2: select target markets and find points of difference; and Step 3: position the product
 

D. 
Step 1: identify industry trends; Step 2: analyze competitors; and Step 3: assess own organization
 

E. 
Step 1: Why do we exist?; Step 2: What will we do?; and Step 3: How will we do it?
 
 

246.
The initial step in the strategic marketing process is to begin planning by conducting a 
 



A. 
business portfolio analysis.
 

B. 
market-product analysis and setting goals.
 

C. 
marketing program.
 

D. 
situation (SWOT) analysis.
 

E. 
diversification analysis.
 
 

247.
Step 1 in the planning phase of the strategic marketing process involves 
 



A. 
establishing the budget.
 

B. 
developing the marketing program.
 

C. 
setting goals.
 

D. 
auditing the marketing plan.
 

E. 
conducting a situation (SWOT) analysis.
 
 

248.
Step 2 in the planning phase of the strategic marketing process consists of 
 



A. 
the situation (SWOT) analysis.
 

B. 
market-product focus and goal setting.
 

C. 
the marketing program.
 

D. 
business portfolio analysis.
 

E. 
diversification analysis.
 
 

249.
Step 3 in the planning phase of the strategic marketing process consists of 
 



A. 
diversification analysis.
 

B. 
the situation (SWOT) analysis.
 

C. 
the marketing program.
 

D. 
the market-product focus and goal setting.
 

E. 
business portfolio analysis.
 
 

250.
Taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it is referred to as 
 



A. 
tactical planning.
 

B. 
market planning.
 

C. 
goal setting.
 

D. 
environmental scanning.
 

E. 
situation analysis.
 
 

251.
A situation analysis refers to 
 



A. 
taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it.
 

B. 
an appraisal of an organization's cash flow and financial ratios to access its health and the potential for new investment.
 

C. 
the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends.
 

D. 
a technique that managers use to quantify performance measures and growth targets to analyze its clients' strategic business units as though they were separate investments.
 

E. 
the process where a firm searches for growth opportunities from among current and new markets as well as current and new products.
 
 

252.
A situation analysis requires a firm to consider the external forces and trends that affect it. Some of these may be favorable to the organization while others may be unfavorable. Which of the following is an example of an external force? 
 



A. 
The firm buys its own fleet of trucks, so it no longer needs to hire a trucking company for distribution.
 

B. 
A hiring freeze is put into place. Although no one is fired, no one can be hired.
 

C. 
A goal is set to close the gap between production costs and profits.
 

D. 
A local government requires that all businesses within the city limits must recycle or be fined.
 

E. 
Shareholders are rewarded with a sizable dividend check.
 
 

253.
The acronym SWOT, as in SWOT analysis, stands for 
 



A. 
strengths, weaknesses, opportunities, and tactics.
 

B. 
strengths, weaknesses, options, and tactics.
 

C. 
strengths, weaknesses, opportunities, and threats.
 

D. 
simple, workable, optimal, and timely.
 

E. 
state the problem, work out a strategy, organize your team, and take action.
 
 

254.
An effective summary tool for an organization's situation analysis is referred to as 
 



A. 
SWOT analysis.
 

B. 
strategic management planning.
 

C. 
environmental scanning.
 

D. 
market-product grid analysis.
 

E. 
marginal analysis.
 
 

255.
In the 1980s, a lapse in production quality and an increase in Japanese imports drove the Harley-Davidson motorcycle company to the brink of bankruptcy. The company's share of the U.S. super heavyweight market segment—motorcycles with engine capacity of 850 cubic centimeters or more—had shrunk from over 40 percent in the mid-1970s to 23 percent in 1983. But by 1989, Harley-Davidson controlled some 65 percent of this market segment. From a marketing perspective, what was the most likely first step in Harley-Davidson's resurgence? 
 



A. 
developing a new mission statement
 

B. 
repositioning its products in the minds of super heavyweight motorcycle buyers
 

C. 
performing a SWOT analysis to assess the firm's internal and external environments
 

D. 
selling new models of super heavyweight motorcycles in both the United States (current) and foreign (new) markets
 

E. 
improving the quality of its products and communicating this to motorcycle buyers
 
 

256.
Ben & Jerry's is an ice cream producer owned by Unilever. Ben & Jerry's prestigious well-known brand name, and the fact that it complements Unilever's other ice cream brands, allows the firm to find specific efficiencies in distribution with its parent company's existing brands. A SWOT analysis for Ben & Jerry's would indicate its brand name and distribution efficiencies are __________ for the firm. 
 



A. 
a strength
 

B. 
a weakness
 

C. 
a threat
 

D. 
an opportunity
 

E. 
a problem
 
 

257.
Ben & Jerry's is an ice cream producer owned by Unilever. If the firm identified that its managers lacked the expertise to create additional growth for the firm's products, a marketing manager would likely incorporate this knowledge into its SWOT analysis as 
 



A. 
a weakness if the company has a strong working relationships with Unilever.
 

B. 
an opportunity if the company shares this information directly with its competitors.
 

C. 
a weakness if the company does not seek to gain that additional expertise.
 

D. 
a threat if Ben & Jerry's does not have resources to develop additional expertise.
 

E. 
part of a marketing plan; this information would not be part of a SWOT analysis.
 
 

258.
All of the following form the foundation upon which a firm builds its marketing program during the strategic marketing process except 
 



A. 
research the organization's present and prospective customers.
 

B. 
determine what business the organization is in.
 

C. 
assess the organization itself.
 

D. 
identify trends in the organization's industry.
 

E. 
analyze the organization's competitors.
 
 

259.
The goal of a SWOT analysis is to 
 



A. 
identify market research questions in order to develop new products for new market segments.
 

B. 
determine how raises, bonuses, and dividends will be paid.
 

C. 
reorganize the firm's marketing department.
 

D. 
identify the critical strategy-related factors that can impact the firm.
 

E. 
fairly allocate governmental resources and financial aid across the industry.
 
 

260.
All of the following are marketing actions that can be taken as a result of a SWOT analysis except 
 



A. 
exploit an opportunity.
 

B. 
correct a weakness.
 

C. 
avoid a disaster-laden threat.
 

D. 
build on a strength.
 

E. 
secure the necessary resources (financial, human, technological) to fund new SBUs.
 
 

261.
A Florida-based flashlight company has been extremely successful due in part to the number of hurricanes in Florida that result in power outages. The firm is thinking of expanding its product offerings to include other emergency supplies such as generators and survival kits (consisting of food bars, a water filtration system, first aid supplies, etc.). Before going ahead with this decision, several factors had to be considered: (1) The firm has a great reputation with its flashlights and does not want to ruin it. (2) Its physical plant could be refitted relatively easily to make small generators, but it would be rather costly. (3) It would have to rely on another firm to manufacture and package the survival kits. (4) Although there are nine named hurricanes anticipated for the upcoming year, no one really can predict what will happen. The company's reputation would fall in which quadrant(s) of the SWOT analysis grid? 
 



A. 
internal-favorable
 

B. 
internal-unfavorable
 

C. 
external-favorable
 

D. 
external-unfavorable
 

E. 
both internal-favorable and external-favorable
 
 

262.
A Florida-based flashlight company has been extremely successful due in part to the number of hurricanes in Florida that result in power outages. The firm is thinking of expanding its product offerings to include other emergency supplies such as generators and survival kits (consisting of food bars, a water filtration system, first aid supplies, etc.). Before going ahead with this decision, several factors had to be considered: (1) The firm has a great reputation with its flashlights and does not want to ruin it. (2) Its physical plant could be refitted relatively easily to make small generators, but it would be rather costly. (3) It would have to rely on another firm to manufacture and package the survival kits. (4) Although there are nine named hurricanes scheduled for the upcoming year, no one really can predict what will happen. The company's need to refit its factory would fall in which quadrant(s) of the SWOT analysis grid? 
 



A. 
internal-favorable
 

B. 
internal-unfavorable
 

C. 
external-favorable
 

D. 
external-unfavorable
 

E. 
both internal-unfavorable and external-unfavorable
 
 

263.
A Florida-based flashlight company has been extremely successful due in part to the number of hurricanes in Florida that result in power outages. The firm is thinking of expanding its product offerings to include other emergency supplies such as generators and survival kits (consisting of food bars, a water filtration system, first aid supplies, etc.). Before going ahead with this decision, several factors had to be considered: (1) The firm has a great reputation with its flashlights and does not want to ruin it. (2) Its physical plant could be refitted relatively easily to make small generators, but it would be rather costly. (3) It would have to rely on another firm to manufacture and package the survival kits. (4) Although there are nine named hurricanes forecasted for the upcoming year, no one really can predict what will happen. The projected number of hurricanes would fall in which quadrant(s) of the SWOT analysis grid? 
 



A. 
internal-favorable
 

B. 
internal-unfavorable
 

C. 
external-favorable
 

D. 
external-unfavorable
 

E. 
both external-favorable and external-unfavorable
 
 

264.
A Florida-based flashlight company has been extremely successful due in part to the number of hurricanes in Florida that result in a loss of power. The firm is thinking of expanding its product offerings to include other emergency supplies such as generators and survival kits. Before going ahead with this decision, several factors had to be considered: (1) The firm has a great reputation with its flashlights and doesn't want to ruin it. (2) Its physical plant could be refitted relatively easily to make small generators, but it would be rather costly. (3) It would have to rely on another firm to manufacture and package the survival kits. (4) Although there are nine named hurricanes scheduled for the upcoming year, no one really can predict what will happen. The need to rely on another company to supply the survival kits would fall in which quadrant(s) of the SWOT analysis grid? 
 



A. 
internal-favorable
 

B. 
internal-unfavorable
 

C. 
external-favorable
 

D. 
external-unfavorable
 

E. 
both external-favorable and external-unfavorable
 
 

265.
The internal-favorable quadrant represents __________ in a SWOT analysis. 
 



A. 
a threat
 

B. 
a weakness
 

C. 
a strength
 

D. 
an opportunity
 

E. 
a market segment
 
 

266.
The internal-unfavorable quadrant represents __________ in a SWOT analysis. 
 



A. 
a threat
 

B. 
a weakness
 

C. 
a strength
 

D. 
an opportunity
 

E. 
a market segment
 
 

267.
The external-favorable quadrant represents __________ in a SWOT analysis. 
 



A. 
a threat
 

B. 
a weakness
 

C. 
a strength
 

D. 
an opportunity
 

E. 
a market segment
 
 

268.
The external-unfavorable quadrant represents __________ in a SWOT analysis. 
 



A. 
a threat
 

B. 
a weakness
 

C. 
a strength
 

D. 
an opportunity
 

E. 
a market segment
 
 

269.
Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as 
 



A. 
market aggregation.
 

B. 
market segmentation.
 

C. 
product sorting.
 

D. 
product grouping.
 

E. 
mass marketing.
 
 

270.
Market segmentation refers to 
 



A. 
identifying small groups of customers with dissimilar needs.
 

B. 
aggregating prospective buyers into groups and selecting only those whose needs cannot be met by competitors' products.
 

C. 
aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.
 

D. 
aggregating different products into more reasonable product groupings to better serve consumers' needs.
 

E. 
those characteristics of a product that make it superior to competitive substitutes.
 
 

271.
Market segmentation is a part of what step in the strategic marketing process? 
 



A. 
situation analysis
 

B. 
market-product focus and goal setting
 

C. 
marketing program
 

D. 
implementation
 

E. 
evaluation
 
 

272.
To develop a successful marketing plan for a soft drink, the process of __________ would most likely be used to group consumers on the basis of whether they wanted sugar-free and caffeine-free soda, caffeine-free sugared soda, or regular soda with sugar and caffeine. 
 



A. 
market aggregation
 

B. 
product segmentation
 

C. 
customer grouping
 

D. 
mass marketing
 

E. 
market segmentation
 
 

273.
During Step 2 of the strategic marketing process, firms such as Ben & Jerry's engage in all of the following marketing activities except 
 



A. 
position the product.
 

B. 
set marketing and product goals.
 

C. 
develop the marketing program.
 

D. 
select target markets.
 

E. 
find points of difference.
 
 

274.
In a marketing context, goal setting involves setting measurable __________ to be achieved. 
 



A. 
marketing metrics
 

B. 
marketing objectives
 

C. 
marketing tactics
 

D. 
marketing plans
 

E. 
protocols
 
 

275.
Those characteristics of a product that make it superior to competitive substitutes are referred to as 
 



A. 
core benefit propositions.
 

B. 
marketing mix elements.
 

C. 
points of difference.
 

D. 
marketing attributes.
 

E. 
product protocols.
 
 

276.
Points of difference refer to 
 



A. 
the fundamental, passionate, and enduring principles of an organization that guide its conduct over time.
 

B. 
the cluster of benefits that an organization promises customers to satisfy their needs.
 

C. 
a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation.
 

D. 
those characteristics of a product that make it superior to competitive substitutes.
 

E. 
the use of percentage points of market share to allocate marketing resources effectively for different product lines within the same firm.
 
 

277.
At which step of the planning stage of the strategic marketing process does a firm develop its marketing mix? 
 



A. 
situation analysis
 

B. 
goal setting
 

C. 
marketing program
 

D. 
implementation
 

E. 
market segmentation
 
 

278.
The marketing program, Step 3 in the strategic planning process, answers which question? 
 



A. 
who
 

B. 
what
 

C. 
when
 

D. 
why
 

E. 
how
 
 

279.
The __________ element of the marketing mix includes features and packaging. 
 



A. 
product
 

B. 
price
 

C. 
promotion
 

D. 
place
 

E. 
people
 
 

280.
The __________ element of the marketing mix includes discounts and allowances. 
 



A. 
product
 

B. 
price
 

C. 
promotion
 

D. 
place
 

E. 
people
 
 

281.
The __________ element of the marketing mix includes personal selling and sales promotion. 
 



A. 
product
 

B. 
price
 

C. 
promotion
 

D. 
place
 

E. 
people
 
 

282.
The __________ element of the marketing mix includes channels and transportation. 
 



A. 
product
 

B. 
price
 

C. 
promotion
 

D. 
place
 

E. 
people
 
 

283.
Offering a branded heart pacemaker with only the features needed by Asian patients is an example of that firm's 
 



A. 
evaluation strategy.
 

B. 
price strategy.
 

C. 
place strategy.
 

D. 
promotion strategy.
 

E. 
product/service strategy.
 
 

284.
Introducing a heart pacemaker at medical conventions across Asia to demonstrate its many beneficial features is an example of a medical device firm's 
 



A. 
market segmentation and targeting strategy.
 

B. 
price strategy.
 

C. 
place strategy.
 

D. 
promotion strategy.
 

E. 
product/service strategy.
 
 

285.
Searching out, using, and training reputable medical device distributors across Asia to call on cardiologists and medical clinics is an example of a firm's 
 



A. 
market segmentation and targeting strategy.
 

B. 
price strategy.
 

C. 
place strategy.
 

D. 
promotion strategy.
 

E. 
product/service strategy.
 
 

286.
The second phase of the strategic marketing process is the 
 



A. 
tactics phase.
 

B. 
strategic phase.
 

C. 
planning phase.
 

D. 
implementation phase.
 

E. 
evaluation phase.
 
 

287.
In which phase of the strategic marketing process does a firm obtain resources, design the marketing organization, develop schedules, and execute the marketing program? 
 



A. 
planning phase
 

B. 
implementation phase
 

C. 
evaluation phase
 

D. 
strategic phase
 

E. 
tactics phase
 
 

288.
All of the following are components of the implementation phase of the strategic marketing process except 
 



A. 
defining precise tasks, responsibilities, and deadlines.
 

B. 
executing the marketing program.
 

C. 
designing the marketing organization.
 

D. 
conducting R and D.
 

E. 
obtaining resources.
 
 

289.
The actions taken during the implementation phase of the strategic marketing process include: (1) __________; (2) design the marketing organization; (3) define precise tasks, responsibilities, and deadlines; and (4) execute the marketing program. 
 



A. 
obtain resources
 

B. 
select target markets
 

C. 
position the product
 

D. 
find points of difference
 

E. 
develop the budget by estimating revenues, expenses, and profits
 
 

290.
The actions taken during the implementation phase of the strategic marketing process include: (1) obtain resources; (2) __________; (3) define precise tasks, responsibilities, and deadlines; and (4) execute the marketing program. 
 



A. 
select target markets
 

B. 
design marketing organization
 

C. 
position the product
 

D. 
find points of difference
 

E. 
develop the budget by estimating revenues, expenses, and profits
 
 

291.
The actions taken during the implementation phase of the strategic marketing process include: (1) obtain resources; (2) design the marketing organization; (3) __________; and (4) execute the marketing program. 
 



A. 
position the product
 

B. 
select target markets
 

C. 
define precise tasks, responsibilities, and deadlines
 

D. 
find points of difference
 

E. 
develop the budget by estimating revenues, expenses, and profits
 
 

292.
The actions taken during the implementation phase of the strategic marketing process include: (1) obtain resources; (2) design the marketing organization; (3) define precise tasks, responsibilities, and deadlines; and (4) 
 



A. 
position the product.
 

B. 
select target markets.
 

C. 
find points of difference.
 

D. 
execute the marketing program.
 

E. 
develop the budget by estimating revenues, expenses, and profits.
 
 

293.
In a typical manufacturing firm, the structure of its marketing department is typically organized from top to bottom as follows: 
 



A. 
CEO to CFO to product manager.
 

B. 
CEO to CMO to product manager.
 

C. 
product manager to marketing research manager to sales manager to promotion manager.
 

D. 
industry manager to market manager to product manager.
 

E. 
product manager to CMO to sales manager.
 
 

294.
An aid to implementing a marketing plan and consisting of four columns: (1) the task; (2) the person responsible for completing that task; (3) the date to finish the task; and (4) what is to be delivered is referred to as 
 



A. 
an output report.
 

B. 
a Gantt chart.
 

C. 
a market plan.
 

D. 
an action item list.
 

E. 
a marketing action memo.
 
 

295.
An action item list refers to an aid to implement a marketing plan that consists of four columns: (1) __________; (2) the person responsible for completing that task; (3) the date to finish the task; and (4) what is to be delivered. 
 



A. 
the task
 

B. 
the budget
 

C. 
the product or service
 

D. 
the points of difference
 

E. 
the promotional message
 
 

296.
An action item list refers to an aid to implement a marketing plan that consists of four columns: (1) the task; (2) __________; (3) the date to finish the task; and (4) what is to be delivered. 
 



A. 
the budget
 

B. 
the product or service
 

C. 
the points of difference
 

D. 
the promotional message
 

E. 
the person responsible for completing that task
 
 

297.
An action item list refers to an aid to implement a marketing plan that consists of four columns: (1) the task; (2) the person responsible for completing that task; (3) __________; and (4) what is to be delivered. 
 



A. 
the budget
 

B. 
the points of difference
 

C. 
the promotional message
 

D. 
the date to finish the task
 

E. 
the product or service
 
 

298.
An action item list refers to an aid to implement a marketing plan that consists of four columns: (1) the task; (2) the person responsible for completing that task; (3) the date to finish the task; and (4) 
 



A. 
the budget.
 

B. 
the points of difference.
 

C. 
what is to be delivered.
 

D. 
the promotional message.
 

E. 
the product or service.
 
 

299.
When participating in major projects in college marketing classes, effective teams can use a __________ to be sure that each team member does a fair amount of work and that class projects are finished efficiently and on time. 
 



A. 
market-product grid
 

B. 
project schedule
 

C. 
Plan-A-Gram
 

D. 
Gantt chart
 

E. 
sales response function
 
 

300.
The key to all scheduling techniques is to 
 



A. 
avoid scheduling tasks that can be done concurrently.
 

B. 
avoid tasks that must be done sequentially.
 

C. 
make sure to allow a 20 percent delay factor to account for contingencies.
 

D. 
assign responsibility for end results to the entire group rather than a single individual.
 

E. 
distinguish tasks that must be done sequentially from those that can be done concurrently.
 
 

301.
A marketing __________ is defined as the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it. 
 



A. 
plan
 

B. 
tactic
 

C. 
strategy
 

D. 
concept
 

E. 
action
 
 

302.
A marketing strategy refers to 
 



A. 
the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it.
 

B. 
the tactical decisions made to implement the marketing program.
 

C. 
a technique to quantify performance measures and growth targets of a firm's strategic business units (SBUs).
 

D. 
a road map for the marketing activities of an organization for a specified future time period, such as one year or five years.
 

E. 
the detailed day-to-day operational decisions.
 
 

303.
The term marketing strategy is used to address both the __________ and the __________. 
 



A. 
product groupings; target markets
 

B. 
target market; marketing program
 

C. 
subjective; objective
 

D. 
revenues generated; market share achieved
 

E. 
feasibility; time required to implement
 
 

304.
A marketing strategy is the means by which a marketing goal is to be achieved. The two parts that usually characterize a marketing strategy are 
 



A. 
specific organizational goals and objectives.
 

B. 
a detailed marketing plan and a marketing budget.
 

C. 
marketing strategies and marketing tactics.
 

D. 
a specified target market and a marketing program to reach it.
 

E. 
marketing metrics and marketing dashboards to track effectiveness.
 
 

305.
Which of the following statements reflects the key elements in developing a marketing strategy for L. M. Schofield, Inc., a company that produces specialized concrete surfaces for heavily trafficked areas such as retail outlets and amusement parks? 
 



A. 
Buy ads in all the major trade journals that explain the variety of surfaces available and what uses each has.
 

B. 
Communicate with contractors using direct mail about the various walking surfaces Schofield can create for riding and walking paths.
 

C. 
Design a sample ad and test it using visitors at a trade show.
 

D. 
Hire six new sales representatives for the Midwest regional office and train them on all aspects of concrete surfaces.
 

E. 
Conduct a focus group to decide on which surface to use for a theme park in Brazil.
 
 

306.
Marketing tactics refer to the 
 



A. 
long-term decisions made to implement the marketing program and the monitoring of those decisions.
 

B. 
detailed day-to-day operational decisions essential to the overall success of marketing strategies.
 

C. 
steps taken to develop an effective marketing plan.
 

D. 
development of marketing strategies to achieve the organization's marketing objectives.
 

E. 
refinement of the organization's mission based on the results obtained from a marketing audit.
 
 

307.
The detailed day-to-day operational decisions essential to the overall success of marketing strategies are referred to as 
 



A. 
marketing plans.
 

B. 
marketing programs.
 

C. 
marketing tactics.
 

D. 
marketing strategies.
 

E. 
marketing procedures.
 
 

308.
Compared to marketing strategies, marketing tactics generally involve actions that 
 



A. 
are detailed day-to-day operational decisions.
 

B. 
are long-term rather than short-term.
 

C. 
involve upper levels of management rather than front-line managers.
 

D. 
are general rather than specific in nature.
 

E. 
have been successfully implemented in the past.
 
 

309.
If marketers at a large auto manufacturer created a little digital flip film out of some 200 photos to tout the prowess of their new truck, hoping it would be a clever way to get people to engage, this action would be an example of the firm's marketing 
 



A. 
tactics.
 

B. 
missions.
 

C. 
visions.
 

D. 
strategies.
 

E. 
customer values.
 
 

310.
Owners of a specialist olive oil production firm decided to offer their product in 5-ounce and 13-ounce sizes. They decided to sell the olive oil only through the mail and to price the smaller bottle at $6.50 and the larger bottle at $12.00. These actions consist of the firm's marketing 
 



A. 
missions.
 

B. 
visions.
 

C. 
strategies.
 

D. 
tactics.
 

E. 
customer value.
 
 

311.
The strategic marketing process involves three phases: planning, implementation, and 
 



A. 
review.
 

B. 
execution.
 

C. 
evaluation.
 

D. 
goal revision.
 

E. 
correction.
 
 

312.
The third and final phase of the strategic marketing process is the 
 



A. 
tactics phase.
 

B. 
strategic phase.
 

C. 
planning phase.
 

D. 
implementation phase.
 

E. 
evaluation phase.
 
 

313.
The two major aspects of the evaluation phase of the strategic marketing process are 
 



A. 
segmenting the market and selecting target markets.
 

B. 
establishing a business mission and designing measurable goals and objectives.
 

C. 
designing the marketing mix and setting the budget.
 

D. 
comparing the results of the marketing program with the goals in the written plans to identify deviations and then to act on them.
 

E. 
executing the marketing plan and designing the marketing organization.
 
 

314.
The actions taken during the evaluation phase of the strategic marketing process include (1) __________ and (2) correct negative deviations and exploit positive ones. 
 



A. 
find points of difference
 

B. 
execute the marketing program
 

C. 
compare results with plans to identify deviations
 

D. 
track sales and revenues and compare with competitors
 

E. 
develop the budget by estimating revenues, expenses, and profits
 
 

315.
The actions taken during the evaluation phase of the strategic marketing process include (1) compare results with plans to identify deviations and (2) 
 



A. 
find points of difference.
 

B. 
execute the marketing program.
 

C. 
track sales and revenues and compare with competitors.
 

D. 
develop the budget by estimating revenues, expenses, and profits.
 

E. 
exploit positive deviations and correct negative ones.
 
 

316.
The difference between the projection of the path to reach a new goal and the projection of the path of the results of a plan already in place is referred to as the 
 



A. 
planning gap.
 

B. 
contribution margin.
 

C. 
point of difference.
 

D. 
break-even point.
 

E. 
sales response function.
 
 

317.
The planning gap refers to 
 



A. 
the difference between projected total costs and realized total revenues.
 

B. 
the difference between projected total costs and net profits.
 

C. 
the difference between marginal revenue and marginal cost.
 

D. 
the percentage point difference between a firm and its next largest competitor in terms of market share.
 

E. 
the difference between the projection of the path to reach a new goal and the projection of the path of the results of a plan already in place.
 
 

318.
When evaluations show that actual performance differs from expectations, firms typically attempt to 
 



A. 
decide if the time horizon should be increased or decreased.
 

B. 
perform a SWOT analysis with their major competitor as the principal focus.
 

C. 
use statistical linear trend analysis to interpret the results.
 

D. 
exploit a positive deviation or correct a negative deviation.
 

E. 
adopt a market-product grid to analyze the sales results.
 
 

319.
A planning gap is the difference between the projection of the path to reach a new sales revenue goal and the projection of the path of a plan already in place. The ultimate purpose of the firm's marketing program is to __________ this planning gap. 
 



A. 
calculate the contribution margin of
 

B. 
calculate the marginal trend of
 

C. 
create the break-even point for
 

D. 
fill in
 

E. 
determine the sales differential of
 
 

320.
Marana Aerospace Solutions is the world's largest parking lot for unwanted commercial aircraft. Airlines pay from $750 to $5,000 monthly for the storage services provided by Evergreen. Before September 2001, the company had 140 discarded airplanes at its Arizona facilities and was growing at a rate of about six planes monthly with about two per month sold for parts or scrap metal. After calamity struck the airline industry in September 2001, airlines retired over 1,000 planes, and the actual number of planes stored at Evergreen differed significantly from its earlier prediction. Marana has enacted a new goal, widening the 
 



A. 
contribution margin.
 

B. 
planning gap.
 

C. 
marginal trend.
 

D. 
break-even point.
 

E. 
sales differential.
 
 

321.
The marketing manager looks for two kinds of deviations, each triggering a different kind of action: (1) actual results fall short of goals and (2) 
 



A. 
deviations that result from major shifts in customer needs.
 

B. 
actual results exceed goals.
 

C. 
there are no deviations but there should be.
 

D. 
deviations that result from executive mandates.
 

E. 
deviations that are blamed on insufficient marketing support (personnel or funding).
 
 

322.
Alex has just completed measuring the results of her firm's product performance. Her next step will be to 
 



A. 
do a profitability analysis.
 

B. 
take necessary corrective actions.
 

C. 
bring these to the marketing auditor.
 

D. 
proceed regardless of deviations from original plans.
 

E. 
compare the results against the goals specified in the marketing plan.
 
 

323.
IBM's business strategy to help its clients be more efficient, productive, and responsive to the data generated from the revolution in the global marketplace concerning the instrumentation and integration of the world's processes and infrastructures is referred to as 
 



A. 
"The IBM Way."
 

B. 
"Smarter Planet."
 

C. 
"Reinvent Business."
 

D. 
"The 2015 Road Map."
 

E. 
"Big Blue."
 
 

324.
All of the following were strategic opportunities identified in IBM's 2015 road map except 
 



A. 
the connected, "smarter planet."
 

B. 
cloud and smarter computing.
 

C. 
a shift from software and services to PCs and hard disk drives.
 

D. 
business analytics and optimization.
 

E. 
growth markets such as China, India, Brazil, and Africa.
 
 

325.
Implementation of IBM's "Smarter Planet" strategy has resulted in all of the following except 
 



A. 
a reduction in supply chain costs for retailers.
 

B. 
a reduction in traffic delays through coordinated signals.
 

C. 
a reduction in power usage for consumers using smart meters.
 

D. 
a reduction in inventory levels, as well as increased sales, for retailers.
 

E. 
a reduction in wasted coverage for advertising messages to increase its efficiency.
 
 326.
The marketing plan for IBM's "Smarter Planet" strategy included which of the following marketing tactics? 
 



A. 
handing out "Smarter Planet" T-shirts on selected college campuses through the world
 

B. 
providing samples of new hard drives for New York City businesses
 

C. 
sponsoring the U.S. swim team for the 2012 Summer Olympics
 

D. 
including a strong message in an annual report from IBM's chairman of the board and CEO
 

E. 
garnering a celebrity endorsement from Jon Stewart, host of "The Daily Show"
 
 

Mark Zuckerberg is a co-founder of the social networking website called __________.

a.        MySpace

b.       Groupon

c.        Facebook

d.       LinkedIn

e.        Twitter

As of late 2011, Facebook has approximately how many members around the globe?

a.        2 million

b.       7 million

c.        250 million

d.       770 million

e.        2 billion

All of the following statements about the growth of social networks like Facebook are true EXCEPT:

a.        the Federal Trade Commission (FTC) has had a laissez faire policy of not interfering with the development and marketing of social media websites.

b.       Internet access and smartphones became more affordable to consumers around the world.

c.        several companies provided many social networking alternatives.

d.       advances in data storage, server speed, and software programming made social networks fast and convenient.

e.        people became increasingly interested in the social aspects of the Internet.

All of the following statements about these social networks are true EXCEPT:

a.        Facebook contains user-generated content that each member supplies to the Web service.

b.       Digg allows people to share articles.

c.        Ning allows users to create custom social websites.

d.       Google is increasingly becoming a fierce competitor to Facebook as a depository of society’s information.

e.        Today, MySpace is the largest social networking website.

Environmental scanning refers to

a.        assessing any possible negative impact a firm’s activities might have on the local ecology.

b.       continually acquiring information on events occurring outside the organization to identify and interpret potential trends.

c.        setting up a regular schedule to assess the performance of different divisions within a firm.

d.       initiating an internal talent search to identify employees who can think “outside the box” to generate solutions to marketing problems caused by changes in the marketing environment.

e.        requiring all employees to spend time outside the office to avoid the “ivory tower” syndrome.

The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends is referred to as

a.        significant trend analysis.

b.       organizational scanning.

c.        environmental scanning.

d.       a SWOT analysis.

e.        marketing intelligence.

Environmental trends come from all of the following forces EXCEPT:

a.        competitive

b.       economic

c.        regulatory

d.       geographical

e.        social

Between 1962 and 2010, adult coffee consumption has

a.        steadily increased each year.

b.       steadily decreased each year.

c.        remained steady.

d.       increased significantly due to adults consuming prepared coffee away from home at outlets such as Starbucks.

e.        fluctuated, first declining and then increasing.

Coffee consumption among consumers 18 to 24 years old has __________ from 2003 to today.

a.        increased

b.       decreased

c.        remained the same

d.       fluctuated, first declining and then increasing

e.        fluctuated, first increasing and then declining

Changes in coffee consumption affect all of the following EXCEPT:

a.        supermarkets.

b.       government regulators.

c.        coffee shops.

d.       coffee growers.

e.        coffee processors.

The changes in coffee consumption are likely due to all of the following EXCEPT:

a.        Coffee shops like Starbucks are using mobile payment systems to make purchases more convenient.

b.       Coffee marketers like Caribou Coffee are offering new flavors and seasonal blends.

c.        The decreased use of Fair Trade certified coffee due to the added expenses incurred for certification and farmer subsidies given the current economic downturn.

d.       Coffee shops are using new machines to automate the brewing and dispensing of coffee faster to reduce order processing time.

e.        Supermarkets such as Safeway and booksellers such as Borders have added Starbucks and Seattle’s Best (owned by Starbucks) boutiques to their gourmet brands of coffee within their stores.

All of the following reasons explain the change in adult coffee consumption between 1962 and 2010 EXCEPT:

a.        many coffee marketers increased the distribution of their coffees in supermarkets and/or other retail outlets.

b.       many coffee marketers added new coffee flavors and seasonal blends.

c.        there was an increase in coffee consumption among those who are 18 to 24 years old.

d.       there was a shift in demand from coffee to other competing beverages such as tea, soft drinks, juices, and bottled water.

e.        there was an increase in away-from-home consumption due to an increase in consumers’ discretionary incomes.

Over a period of several decades, coffee consumption declined from 75 percent of the adult population in 1962 to 49 percent in 2004.  Then, it increased to 56 percent in 2010.  A firm with a good marketing orientation would have

a.        found a less volatile product to sell.

b.       invested more money into market research.

c.        changed to a new promotional firm.

d.       explored the reasons behind these changes.

e.        demoted coffee from being a “star” to a “dog.”

The purpose of environmental scanning is to

a.        only identify trends in the marketplace.

b.       only interpret trends in the marketplace.

c.        only forecast trends in the marketplace.

d.       identify, interpret, and forecast trends in the marketplace.

e.        only identify and interpret trends in the marketplace.

Which of the following statements regarding environmental scanning is the most accurate?

a.        Environmental scanning changes the marketing environment.

b.       Environmental scanning identifies and interprets potential trends.

c.        Environmental scanning should be done at least every five years.

d.       Environmental scanning focuses primarily on ecological factors.

e.        There is too much information generated from environmental scanning to make it viable for small firms.

Predicting the future in terms of environmental scanning requires assumptions about

a.        the total potential investment required to achieve the company’s goals.

b.       the total potential revenues that could be generated as a result of additional investment now.

c.        the number of years the trends will continue and the factors that cause these trends to change.

d.       the skills the marketing department has to be able uncover trends in the marketplace.

e.        the effectiveness of the tools employed, such as scenario casting.

Which of the following trends identified in an environmental scan is a social trend?

a.        Online data collection leading to behavioral targeting will grow dramatically.

b.       Microbusiness impact will increase through peer-to-peer websites.

c.        International activity from Asia to Africa will grow as countries from these areas become sources of economic growth.

d.       There will be increasing regulatory guidance regarding green and environmental marketing claims.

e.        Consumer purchase decisions are becoming more values-based and focused on improving the world.

Which of the following trends identified in an environmental scan is an economic trend?

a.        The U.S., Japan, China, and the E.U. countries will increase investments in sustainable living infrastructure.

b.       Digital TVs, tablet devices, and smartphones will become increasingly connected.

c.        Partnerships, collaborations, and co-creation of value will become important dimensions of business rivalry.

d.       Health consciousness will lead to more public and private smoke-free areas.

e.        Global media consumption (online and social) will continue to grow dramatically.

Which of the following trends identified in an environmental scan is a technological trend?

a.        New smartphone apps, such as mobile location promotion, quick response (QR) codes, and mobile payments will become increasingly more available.

b.       Customer-generated content is growing as a competitive advantage.

c.        The slow recovery of the current recession is leading to sustained higher levels of unemployment.

d.       Online privacy protection advocacy and regulation will continue to grow.

e.        Social networks are becoming the dominant form of communication for consumers.

Which of the following trends identified in an environmental scan is a competitive trend?

a.        Online data collection leading to behavioral targeting will grow dramatically.

b.       Microbusiness impact will increase through peer-to-peer websites.

c.        International activity from Asia to Africa will grow as countries from these areas become sources of economic growth.

d.       There will be increasing regulatory guidance regarding green and environmental marketing claims.

e.        Consumer purchase decisions are becoming more values-based and focused on improving the world.

Which of the following trends identified in an environmental scan is a regulatory trend?

a.        Digital TVs, tablet devices, and smartphones will become increasingly connected.

b.       Partnerships, collaborations, and co-creation of value will become important dimensions of business rivalry.

c.        The U.S., Japan, China, and the E.U. countries will increase investments in sustainable living structures.

d.       Health consciousness will lead to more public and private smoke-free areas.

e.        Global media consumption (online and social) will continue to grow dramatically.

From the start of the war on terrorism, billions have been spent on the war effort in Iraq.  According to an environmental scan of the United States, this military expenditure is an example of a change in __________ forces.

a.        economic

b.       competitive

c.        technological

d.       social

e.        regulatory

The Lemon Tree is a high-fashion boutique selling top-of-the-line women’s clothing and accessories.  The keys to its success include knowing customers’ changing tastes and providing something different from other retailers.  In addition, because of the high value of the merchandise, The Lemon Tree’s management is exploring the use of computerized inventory controls and sales order processing.  From this description, one can infer that the LEAST IMPORTANT environmental force to The Lemon Tree at this particular time would be

a.        economic.

b.       competitive.

c.        technological.

d.       social.

e.        regulatory.

As the director of marketing for Littleton Hospital, you must conduct an environmental scan to help create a five-year marketing plan for the hospital.  Which of the following environmental trends should you consider to be the MOST IMPORTANT?

a.        The number of people in the geographic area who are 65 years or older will increase by 23 percent during the next five years.

b.       By the year 2015, baby boomers will control more than 50 percent of all consumer expenditures in the United States.

c.        The Littleton community has seen a rise in dual-income households.

d.       By the year 2025, robotics will play a major role in surgical procedures.

e.        Twenty percent of the local population is of Hispanic origin.

One of the world’s largest publishers was totally unprepared for recent increases in the demand for digital books.  During 2011, the sale of e-books exceeded the sales of traditional printed paperback books for the first time.  If the publisher had __________, it would have been more prepared for this shift in demand.

a.        optimized its distribution by eliminating local and chain store bookstores (like Borders) that failed to meet their sales quotas

b.       noticed the change in the demographics of book readers in general

c.        noticed the behavioral changes in moviegoers, who now prefer to view 3D movies in IMAX theaters

d.       shifted funds from product development to advertising

e.        tracked, as part of its ongoing environmental scanning activities, the sales of e-books sold by other publishers as well as e-book readers sold by Amazon.com (Kindle) and Barnes and Noble (Nook)

The set of environmental forces that consists of the demographic characteristics of the population and its values is referred to as

a.        social forces.

b.       economic forces.

c.        consumer forces.

d.       cultural forces.

e.        market forces.

The demographic characteristics of the population and its values are referred to as

a.        attitudinal forces.

b.       psychographic forces.

c.        social forces.

d.       cultural forces.

e.        market forces.

The social forces of the environment include the ____________ of the population and its values.

a.        living standards

b.       social classes

c.        cohorts

d.       ethics

e.        demographic characteristics

The social forces of the environment include the demographic characteristics of the population and its __________.

a.        geographic locations

b.       social classes

c.        cohorts

d.       values

e.        ethics

Which of the following statements regarding social forces is most accurate?

a.        Social forces can have a dramatic impact on marketing strategy.

b.       As a social force, consumer incomes have more impact on marketing strategy than demographics.

c.        Social forces within an organization motivate employees to improve their productivity.

d.       Social forces determine all the other environmental forces that affect an organization.

e.        Of all the environmental forces, social forces are the easiest for a marketer to manipulate.

MySpace.com is a social network that is targeted primarily to people under the age of 25.  In 2005, when MySpace was the leading social network, News Corp., owner of The Wall Street Journal and Fox News, bought the firm for $580 million.  Since then, its membership has declined precipitously due to changing consumer tastes.  As a result, News Corp. sold MySpace to a group of investors for a paltry $38 million in mid-2011.  This is an example of how __________ forces impact the marketing environment.

a.        economic

b.       competitive

c.        social

d.       technological

e.        regulatory

An important social trend is the continued concern for health and well-being in the United States.  This is most likely evidenced by

a.        First Lady Michelle Obama’s Let’s Move! initiative to eliminate childhood obesity.

b.       the increased sales of Cigar Aficionado magazine.

c.        the opening of more Starbucks coffee boutiques in supermarkets.

d.       the upsizing of menu items at fast food restaurants.

e.        the introduction of tablet devices such as the iPad.

Demographics refers to

a.        the description of a population according to its values or cultural beliefs.

b.       an objective measurement of a person’s likelihood to purchase a product or service.

c.        the psychological profile of prospective consumers.

d.       the density of a population in a geographic area.

e.        the description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation.

The description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation is referred to as __________.

a.        product group profiling

b.       demographics

c.        behavioral analysis

d.       psychographics

e.        statistical analysis

Demographics describe all of the following population characteristics EXCEPT:

a.        income.

b.       age.

c.        gender.

d.       zip code.

e.        ethnicity/race.

It is predicted that the number of people in the United States over the age of 65 will __________ by 2030.

a.        almost double

b.       be significantly less than the growth of children under 16 years old

c.        increase at the same worldwide rate

d.       decrease at the same worldwide rate

e.        begin to decrease, relative to previous growth rates

More magazine is a publication designed to appeal to women aged 40 and over.  Demand for such magazines is an example of how changing __________ characteristics impact the marketing environment.

a.        cultural

b.       behavioral

c.        psychographic

d.       occupational

e.        demographic

The most recent estimate indicates that the population of the world today is about __________.

a.        5.0 billion

b.       5.7 billion

c.        6.9 billion

d.       7.9 billion

e.        9.4 billion

By 2050, the world’s population is expected to be __________.

a.        5.0 billion

b.       5.7 billion

c.        6.9 billion

d.       7.9 billion

e.        9.4 billion

The term that describes the rapid growth in world population is called the __________.

a.        population expansion

b.       population inversion

c.        population migration

d.       population explosion

e.        population eruption

The population explosion has occurred

a.        primarily in the developing countries of Latin America, Asia, and Africa.

b.       evenly throughout the world.

c.        primarily in the United States due to high birth rates and immigration.

d.       primarily in the countries of the European Union due to high birth rates and immigration.

e.        primarily in developed countries due to better economic, infrastructure, and healthcare conditions.

Projections show that the population of the world is __________.

a.        growing

b.       declining

c.        decreasing in Africa

d.       increasing in Europe

e.        decreasing in Latin America

The country expected to have the largest population in 2050 is __________.

a.        India

b.       the United States

c.        China

d.       Russia

e.        Brazil

World population projections show that the number of people 60 years of age and older is expected to __________ by 2050.

a.        decline by 1 billion

b.       double to 4 billion

c.        reach 2 billion

d.       triple to 3 billion

e.        reach 6 billion

Which of the following global trends has significant implications to global marketers?

a.        the declining populations of Latin/South American countries

b.       the size of the markets in India and China

c.        the tripling of the population of consumers under 40 years old

d.       the decreasing interest in entrepreneurship in developing countries

e.        the increased saving rates of elderly populations in developed countries

Studies of the __________ characteristics of the U.S. population suggest that it is becoming larger, older, and more diverse.

a.        cultural

b.       psychographic

c.        geographic

d.       demographic

e.        economic

Generally, the U.S. population is becoming

a.        smaller, younger, and more diverse.

b.       smaller, older, and more diverse.

c.        larger, older, and less diverse.

d.       larger, younger, and more diverse.

e.        larger, older, and more diverse.

All of the following factors contribute to the growth of a country’s population EXCEPT:

a.        life expectancy (the average number of years a population lives from birth).

b.       immigration (the number of people who enter a country for the purpose of permanent residence).

c.        population density (defined as the total number of people per square mile/kilometer).

d.       birth rate (the number of births during a specified time period).

e.        death rate (the number of deaths during a specified time period).

By 2030, the U.S. population is expected to exceed

a.        273 million.

b.       308 million.

c.        323 million.

d.       373 million.

e.        408 million.

Which age segment of the U.S. population is expected to grow to 72 million people or almost 20 percent of the population by 2030?

a.        children under the age of 18

b.       people aged 65 and over

c.        children of baby boomers

d.       children of Generation X

e.        children of Generation Y

Demographers predict that the number of people in the U.S. aged 65 and over will __________ by 2030.

a.        almost double

b.       be significantly less than the number of children under 18 years old

c.        increase at the same rate as the rate for developing countries

d.       increase at the same rate as the rate for developed countries

e.        stay the same as today

The term “minority” is currently defined as “a relatively small group of people who differ from others with respect to race, religion, language, or political persuasion.”  Why will the term have different implications in the future?

a.        There will be stronger limits on immigration, so the presence of minorities will be less noticeable.

b.       Members of Generation Y are more socially conscious and embrace diversity.

c.        The term “minority” has become politically incorrect.

d.       The meaning of the word won’t change at all; the group with the smallest population, regardless of its absolute size, will always be labeled “minority.”

e.        The size of most ethnic groups will double during the next two decades.

The generation of children born between 1946 and 1964 is referred to as

a.        baby busters.

b.       baby boomlets.

c.        Generation Y.

d.       baby boomers.

e.        Generation X.

Baby boomers can be defined as the generation of children born __________.

a.        between 1918 and 1945

b.       between 1946 and 1964

c.        between 1965 and 1976

d.       between 1977 and 1994

e.        since 1995

The generation of children born between 1946 and 1964 is referred to as

a.        baby busters.

b.       millennials.

c.        Generation Y.

d.       baby boomers.

e.        Generation X.

Baby boomers are an important target market because 

a.        their workforce participation has made them the wealthiest generation in U.S. history, accounting for an estimated 50 percent of all consumer spending.

b.       they include most of the important business leaders in the United States.

c.        they represent a small proportion of the population but have large disposable incomes.

d.       they have the longest life expectancies, remaining an active participant in the marketplace for a long time.

e.        they will be able to pass along significant wealth to their children, the generation that will succeed them.

Which of the following statements regarding baby boomers is most accurate?

a.        Baby boomers are an important consumer market segment because of their relatively high wealth and workforce participation.

b.       Baby boomers are more educated and therefore more proactive in making their needs known.

c.        Baby boomers are important to marketers because they are leaving significant amounts of wealth to their children.

d.       Baby boomers are more personally and financially secure because they did not have to live through any major wars.

e.        Baby boomers are much more likely to spend their money on others than on themselves.

In a recent issue of AARP The Magazine, a print ad for State Farm Insurance annuities advises readers that “The company has helped you enjoy your time with the kids and it can now help you enjoy your time without them.”  The ad is most likely targeted toward which generational cohort?

a.        Generation X

b.       baby busters

c.        Generation Y

d.       the Greatest Generation

e.        baby boomers

Frito-Lay will be releasing a succession of reformulated snacks to address boomers’ concerns about salt and saturated fat to address __________ health-related concerns.

a.        echo-boomers’

b.       baby boomers’

c.        Generation Xers’

d.       Generation Yers’

e.        baby busters’

Olay’s promotions for its Total Effects cleansing cloths, which fight signs of aging, are targeted toward

a.        echo-boomers.

b.       Generation Xers.

c.        Generation Yers.

d.       baby boomers.

e.        baby busters.

 

The Ameritrade ad shown above is targeted at which generational cohort?

a.        echo-boomers

b.       Generation Xers

c.        Generation Yers

d.       baby boomers

e.        baby busters

Which of the following marketing activities targets baby boomers?

a.        Some educational institutions have developed degree programs that emphasize sustainable practices.

b.       Some hoteliers have remodeled their rooms to make them more casual and “tech-friendly.”

c.        Some consumer packaged goods firms have reformulated their products to address concerns about salt, sugar, and saturated fat.

d.       Some travel agencies have developed distinctive, memorable, and personal vacations (cruises, sightseeing trips, etc.)

e.        Some greeting card firms have created birthday cards with sentiments designed for stepparents and stepchildren.

Generation X is defined as the generation of children born __________.

a.        between 1946 and 1964

b.       between WWI and WWII

c.        between 1965 and 1976

d.       between 1977 and 1994

e.        since the millennium

The 15 percent of the population born between 1965 and 1976, also called the baby bust, refers to __________.

a.        Generation X

b.       millennials

c.        Generation Y

d.       Generation Z

e.        baby boomers

The 15 percent of the population born between 1965 and 1976, also called the __________, refers to Generation X.

a.        Generation Y

b.       baby bust

c.        millennials

d.       baby boomers

e.        Generation Z

Generation X is the label often given to

a.        persons born between 1965 and 1976.

b.       persons 65 years old and older.

c.        the “upbeat” or “carefree” generation.

d.       the “greatest generation” born between the baby boomer generation and their parents, Generation W—the World War II generation.

e.        those people who were born during the millennium.

The name given to the group of consumers who are described as self-reliant, supportive of racial and ethnic diversity, and better educated than previous generations is __________.

a.        Generation Z

b.       Generation Y

c.        millennials

d.       Generation X

e.        baby boomers

Generation X consumers are

a.        people that like to rely on others.

b.       collaborative decision-makers.

c.        somewhat prone to extravagance.

d.       generally not supportive of racial and ethnic diversity.

e.        poorly educated.

Generation X

a.        is the least healthy generation since the 1940s.

b.       accounts for the largest amount of consumer spending.

c.        is the largest segment of business travelers.

d.       is interested in distinctive, memorable, and personal experiences.

e.        includes younger members known as millennials.

When compared to baby boomers, members of Generation X are more likely to invest their money in __________.

a.        entertainment

b.       non-durables

c.        discretionary spending

d.       diamonds

e.        real estate

All of the following statements about Generation X are true EXCEPT:

a.        Generation X is not prone to extravagance.

b.       Generation X is replacing baby boomers as the largest segment of business travelers.

c.        Generation X is the first generation to have less than the previous generation.

d.       Generation X was born during the “baby bust” era because the number of children born each year was declining.

e.        Generation X was born during the “echo boom” or “baby boomlet” era because the number of children born each year was rising.

Americans born between 1977 and 1994 are referred to as __________.

a.        Generation X

b.       baby boomers

c.        Generation Y

d.       baby busters

e.        Generation Z

Generation Y is defined as the generation of children born __________.

a.        between WWI and WWII

b.       between 1946 and 1964

c.        between 1965 and 1976

d.       between 1977 and 1994

e.        since the millennium

Generation Y is sometimes referred to as 

a.        echo-boomers.

b.       baby boomers.

c.        baby busters.

d.       millennials.

e.        Generation Zers.

The generation of children born to baby boomers is sometimes referred to as

a.        echo busters.

b.       baby busters.

c.        the lost generation.

d.       baby boomerangs.

e.        baby boomlets.

Which generational cohort is interested in distinctive, memorable, and personal experiences?

a.        baby busters

b.       Generation Y

c.        baby boomers

d.       Generation X

e.        Generation Z

Which generational cohort is adept at managing their lives to create a work-life balance?

a.        baby boomers

b.       Generation Z

c.        Generation Y

d.       Generation X

e.        baby busters

When compared to Generation X, members of Generation Y are more likely to influence

a.        children’s designer clothing lines.

b.       health care and insurance.

c.        retirement plans.

d.       all forms of communication.

e.        automobile design.

Which of the following is an example of how Generation Y members are different from other generations?

a.        They are parents of the baby boomers.

b.       They represent the first generation that has less than the previous generation.

c.        They represent the greatest generation: parents of post-WWII babies.

d.       They have little interest in communication relative to other generations.

e.        They are attracted to purposeful work where they have control.

Which generation (1) feels passionate about the environment and (2) is optimistic about the future?

a.        Generation X

b.       baby boomers

c.        Generation Y

d.       baby busters

e.        Generation Z

 

Which generational cohort is the HTC Thunderbolt ad above most likely trying to reach?

a.        Generation X

b.       baby boomers

c.        Generation Z

d.       baby busters

e.        Generation Y

The Sierra Club is the oldest continuously operating environmental organization.  By 2001, its growth had plateaued.  To rekindle interest in the organization, its members elected a new 23-year-old president who promised to use MTV artists to create public service announcements about the organization targeting his peer group, who are members of

a.        Generation X.

b.       Generation Y.

c.        Generation Z.

d.       baby busters.

e.        baby boomers.

Younger members of Generation Y born since 1994 are referred to as

a.        baby boomers.

b.       baby busters.

c.        millennials.

d.       echo boomlets.

e.        Gen Y siblings.

Younger members of Generation Y, also known as __________, are determined to make a difference in the world, and by doing so, make the world a better place.

a.        activists

b.       sustainers

c.        progressives

d.       reformers

e.        millennials

Members of Generation Y are idealistic and eager to get started making the world a better place.  One way they hope to achieve their goal is through __________.

a.        environmental sustainability

b.       political activism

c.        intergenerational dialogue

d.       fiscal conservatism

e.        educational reform

For millennials, environmental sustainability means __________.

a.        engaging in free market economics with fair but limited regulations to manage exchange relationships

b.       social responsibility, or having organizations being accountable to society for their actions

c.        exploiting a nation’s natural resources for the betterment of its society

d.       executing a “drill baby drill” strategy regarding oil and natural gas exploration to make the United States energy independent

e.        seeking “brown” jobs in agriculture that emphasize economies of scale in farming and ranching

All of the following statements are true EXCEPT:

a.        “LEED” stands for “Leadership in Energy and Environmental Design.”

b.       Today’s college graduates now seek “green” jobs that involve some aspect of social responsibility.

c.        Colleges of business have yet to establish sustainability course electives, case studies, or links to organizations that expose students to socially responsibility concepts and initiatives.

d.       Many students want to be involved with organizations like Net Impact to “use business to improve the world.”

e.        Millennials want to make a difference by making the world a better place.

Generational marketing refers to

a.        the process of continually acquiring information on different age groups to identify and interpret potential trends.

b.       the factors that represent both the objective and subjective attributes of a brand Generations X and Y use to compare different products and brands.

c.        the distinct phases that a generational cohort progresses through from family formation to retirement, each phase bringing with it identifiable purchasing behaviors.

d.       the sequence of stages a buyer of each generational cohort goes through from initial awareness of a product to its trial or adoption.

e.        different marketing programs developed for each generational cohort due to each group’s distinctive attitudes and behaviors.

Marketers have developed generational marketing programs because

a.        grandparents are moving into their children’s homes as a result of the recent economic downturn, so it is easier for marketers to reach them.

b.       it is better to find one market niche and stay with it rather than to cross generational lines.

c.        it doesn’t really matter when people are born; what really matters is what they buy.

d.       members of each generation are distinctive in their attitudes and consumer behavior.

e.        even though people are labeled as being part of a generational cohort, it doesn’t mean that they will have different buyer attitudes and behaviors as other cohorts.

Today, married households comprise __________ of the U.S. population.

a.        10 percent

b.       21 percent

c.        50 percent

d.       60 percent

e.        75 percent

Which of the following statements about the American household is most accurate?

a.        The structure of the American household has not changed significantly since 1960.

b.       With a drop in the divorce rate, almost 58 percent of households today are married couples with children.

c.        The number of households with working fathers and “stay-at-home” moms has recently begun to increase again and makes up almost 25 percent of all American households.

d.       One of the fastest-growing types of households are those adults who has moved back home with their parents.

e.        The percentage of married couples has increased from 50 percent in 1960 to 75 percent today.

All of the following statements are true EXCEPT:

a.        Only 21 percent of American households consist of married couples with children.

b.       Parents close to retirement typically refuse to allow their parents or children to move in with them—they like their “empty nest” lifestyle.

c.        The increase in unmarried partner households is likely due to the current economic downturn.

d.       Today, most divorced couples choose to remarry rather than remaining in single person households, with or without children.

e.        Currently, many young people are postponing marriage and parenthood.

Because young people are postponing marriage and parenthood, this social trend will impact all of the following purchases EXCEPT:

a.        greeting cards.

b.       weddings.

c.        baby products.

d.       homes.

e.        child products.

The blended family refers to a family

a.        that is formed by merging two previously separated units into a single household.

b.       that contains both male and female children.

c.        that houses two or more generational cohorts under the same roof.

d.       in which its members are of multiple races and/or ethnicities.

e.        in which parents raise nonbiological children, either through adoption or foster care.

A family formed by merging two previously separated units into a single household is referred to as a

a.        cohort.

b.       blended family.

c.        merged household.

d.       reconstituted family.

e.        multigenerational household.

Which of the following statements about the American blended family is most accurate?

a.        The blended family is too small to warrant the development of a marketing program by a firm to reach its members with a product or service.

b.       The rise in the divorce rate among baby busters is called a “gray divorce” because their divorce rate now exceeds 50 percent.

c.        The majority of divorced people never remarry; instead, they choose to cohabitate.

d.       Firms like Hallmark Cards have developed greeting cards with sentiments specifically created for stepparents, stepchildren, and stepsiblings.

e.        The percentage of divorced couples has increased from 15 percent in 1960 to 60 percent today.

A major regional shift in the U.S. population toward the __________ states is under way.

a.        eastern

b.       west coast

c.        southern

d.       midwestern

e.        southern and western

Today, seven of the top 10 cities are located __________.

a.        along the east coast

b.       near the Canadian border

c.        along the west coast

d.       near the Mexican border

e.        within the central “fly over” region of the United States

All of the following statements are true EXCEPT:

a.        During the past few years, more people have migrated from suburbs to exurbs.

b.       The number of micropolitan statistical areas exceeds those of metropolitan statistical areas.

c.        During the 2000s, the U.S. population shifted from urban cities to suburbs.

d.       During the early 1900s, the U.S. population shifted from rural areas to cities.

e.        Most of the people in the United States reside in suburbs.

Remote suburbs are called __________.

a.        exurbs

b.       suburbia

c.        outstate residents

d.       subdivisions

e.        minor statistical areas

Exurbs are

a.        statistical areas of at least 50,000 or more people.

b.       remote suburbs.

c.        statistical areas of at least 10,000 but less than 50,000 people.

d.       statistical areas that contains a population of 2.5 million or more.

e.        the combination of metropolitan statistical areas and micropolitan statistical areas.

Today, __________ of all Americans live in central cities, __________ live in suburbs, and __________ live in rural locations.

a.        30%; 30%; 40%

b.       20%; 50%; 30%

c.        50%; 30%; 20%

d.       20%; 30%; 50%

e.        30%; 50%; 20%

To assist marketers in gathering data on the population, the U.S. Census Bureau has developed a classification system to describe the varying locations of the population.  The system consists of two types of __________.

a.        geometric areas

b.       zip code areas

c.        statistical areas

d.       geodemographic areas

e.        residential areas

A statistical area of at least one urbanized area of 50,000 or more people and adjacent territory that has a high degree of social and economic integration is referred to as a

a.        micropolitan statistical area.

b.       metropolitan statistical area.

c.        downtown statistical area.

d.       zip code.

e.        combined statistical area.

A metropolitan statistical area refers to

a.        a statistical area that has at least one urban cluster of at least 10,000 but less than 50,000 people and adjacent territory that has a high degree of social and economic integration.

b.       a statistical area of 2.5 million people or more.

c.        a cluster of exurbs that function as a single unit due to the proximity of their geographic locations to an urbanized area.

d.       a highly urbanized area with a centrally located population of at least 1,000,000 people.

e.        a statistical area of at least one urbanized area of 50,000 or more people and adjacent territory that has a high degree of social and economic integration.

A statistical area that has at least one urban cluster of at least 10,000 but less than 50,000 people and adjacent territory that has a high degree of social and economic integration is referred to as a

a.        micropolitan statistical area.

b.       metropolitan statistical area.

c.        consolidated metropolitan statistical area.

d.       megapolitan statistical area.

e.        metropolitan division.

A micropolitan statistical area refers to

a.        a statistical area of 2.5 million people or more.

b.       a highly urbanized area with a centrally located population of at least 1,000,000 people.

c.        a cluster of exurbs that function as a single unit due to the proximity of their geographic locations to an urbanized area.

d.       a statistical area that has at least one urban cluster of at least 10,000 but less than 50,000 people and adjacent territory that has a high degree of social and economic integration.

e.        a statistical area of at least one urbanized area of 50,000 or more people and adjacent territory that has a high degree of social and economic integration.

The U.S. Census Bureau has developed a two-level classification system that reflects the varying locations of the population.  The smaller of these classifications is called the

a.        consolidated metropolitan statistical area.

b.       metropolitan division.

c.        metropolitan statistical area.

d.       minipolitan statistical area.

e.        micropolitan statistical area.

If a metropolitan statistical area contains a population of 2.5 million or more, it may be subdivided into smaller areas called __________.

a.        population subdivisions

b.       metroplex divisions

c.        metropolitan divisions

d.       combined divisions

e.        statistical divisions

A metropolitan division

a.        can be divided into even smaller units called micropolitan divisions.

b.       is called a metropolitan megamarket if it has a population of 1,000,000 or more.

c.        can be divided into even smaller units called metroplex divisions.

d.       is part of a metropolitan statistical area that contains a population of 2.5 million or more.

e.        has its own zip code to reflect the U.S. Postal Service designation.

Adjacent metropolitan statistical areas and micropolitan statistical areas may be grouped into __________ statistical areas.

a.        zip code

b.       residential

c.        megapolitan

d.       aggregated

e.        combined

The U.S. Census Bureau uses a classification system that reflects the varying locations of the population.  The largest of these geographical areas is called

a.        megapolitan statistical areas.

b.       statistical areas.

c.        combined statistical areas.

d.       zip codes.

e.        metropolitan statistical areas.

If a metropolitan statistical area contains a population of 2.5 million or more, it may be subdivided into smaller areas called metropolitan divisions.  In addition, adjacent metropolitan statistical areas and micropolitan statistical areas may be grouped into __________ statistical areas.

a.        megapolitan

b.       metropolitan

c.        micropolitan

d.       zip code

e.        combined

 

The U.S. Office of Management and Budget has developed a classification system that defines geographic areas based on the size of the population contained within them.  The U.S. Census Bureau uses these statistical areas to collect, tabulate, and publish various reports on demographic profiles and economic activity.  Figure 3-A above shows these statistical areas for the Dallas-Fort Worth metroplex.  The largest of these geographical areas is called a

a.        megapolitan statistical area.

b.       micropolitan statistical area.

c.        metropolitan statistical area.

d.       zip code.

e.        combined statistical area.

The U.S. Office of Management and Budget has developed a classification system that defines geographic areas based on the size of the population that is contained within them.  The U.S. Census Bureau uses these statistical areas to collect, tabulate, and publish various reports on demographic profiles and economic activity.  Based on Figure 3-A above, which of the following best defines a micropolitan statistical area for the Dallas-Fort Worth geographic area?

a.        the counties in the darker shaded areas (e.g. Grayson [Sherman-Denison], Collin, Delta, Dallas, Kaufman, Johnson, Tarrant, Parker, Wise, etc.)

b.       the cities of Mineral Wells, Gainesville, Bonham, Athens, and Granbury (within their respective counties) in the lighter shaded areas

c.        the counties of Wise, Parker, Tarrant, and Johnson bounded by the black line

d.       the Fort Worth-Arlington area (within Tarrant county) that is in the darker shaded area

e.        the entire set of counties in the light and darker shaded areas

The U.S. Office of Management and Budget has developed a classification system that defines geographic areas based on the size of the population that is contained within them.  The U.S. Census Bureau uses these statistical areas to collect, tabulate, and publish various reports on demographic profiles and economic activity.  Based on Figure 3-A above, which of the following best defines a metropolitan division within the Dallas-Fort Worth metroplex?

a.        the counties in the darker shaded areas (e.g. Grayson [Sherman-Denison], Collin, Delta, Dallas, Kaufman, Johnson, Tarrant, Parker, Wise, etc.)

b.       the cities of Mineral Wells, Gainesville, Bonham, Athens, and Granbury (within their respective counties) in the lighter shaded areas

c.        the counties of Wise, Parker, Tarrant, and Johnson bounded by the black line

d.       the Fort Worth-Arlington area (within Tarrant county) that is within the darker shaded area

e.        the entire set of counties in the light and darker shaded areas

Approximately one in __________ U.S. residents is African American, American Indian or Alaska Native, Asian American, or Native Hawaiian/Pacific Islander.

a.        ten

b.       seven

c.        five

d.       three

e.        two

A notable trend of the U.S. population is the changing racial and ethnic composition.  __________, who may be from any race, currently make up 16 percent of the U.S. population.

a.        Hispanics

b.       African Americans

c.        Asian Americans

d.       Caucasians

e.        American Indian and other native populations

By 2030, __________ will constitute the largest racial or ethnic population in the U.S.

a.        African Americans

b.       Asian Americans

c.        Caucasians

d.       American Indian and other native populations

e.        Hispanics

By 2015, which racial or ethnic group will have the greatest economic impact in the United States in terms of its buying power?

a.        Asian Americans

b.       Hispanics

c.        African Americans

d.       American Indian and other native populations

e.        Indian immigrants (from India)

Minority racial and ethnic groups (excluding Caucasians) are concentrated in geographic regions of the United States.  Native American groups are heavily concentrated in

a.        Arizona.

b.       Colorado.

c.        Nebraska.

d.       North Carolina.

e.        South Carolina.

HSBC Bank International Ltd. (Europe’s largest bank) selected its advertising agency because that agency was “always sensitive to the possibility that something might not translate well or may offend superstitions about colors or numbers.” Its advertising agency was responsive to

a.        psychographic differences.

b.       population shifts.

c.        racial and ethical diversity.

d.       a value consciousness.

e.        macroeconomics.

Combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races are referred to as __________ marketing programs.

a.        panethnic

b.       generational

c.        cross-cultural

d.       multicultural

e.        regional

Multicultural marketing refers to combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different __________.

a.        races

b.       nations

c.        religions

d.       generational cohorts.

e.        genders.

Which of the following statements is most accurate?

a.        Racial and ethnic groups are equally dispersed throughout the United States.

b.       Racial and ethnic groups do not respond to multicultural marketing programs since they are similar to Caucasians in terms of their attitudes and behaviors.

c.        Organizations that target racial and ethnic groups tend to separate their multicultural marketing efforts from their regional marketing activities.

d.       Racial and ethnic groups tend to be concentrated in geographic regions in the United States.

e.        Due to the “melting pot” effect, racial and ethnic groups in the United States tend to have very similar attitudes, communication preferences, and lifestyles because they have been effectively assimilated within the population.

Which of the following statements is most accurate?

a.        Some companies use mobile marketing to reach geographic concentrations of ethnic groups on their smartphones or tablet devices.

b.       Most consumer packaged good firms have now moved their advertising accounts from multicultural agencies to their own in-house advertising agency to realize greater marketing efficiencies.

c.        Most companies have failed to encourage their advertising agencies to develop cross-cultural campaigns with messages that reach all ethnic groups.

d.       Since racial and ethnic groups tend to be equally dispersed throughout the United States, multicultural marketing programs need not be developed.

e.        Due to the “melting pot” effect, racial and ethnic groups in the United States tend to have very similar attitudes, communication preferences, and lifestyles, which means that they will respond similarly to advertising messages.

The set of values, ideas, and attitudes that are learned and shared among the members of a group is referred to as __________.

a.        customs

b.       morals

c.        norms

d.       culture

e.        ethics

Culture refers to the

a.        moral and ethical beliefs of a family passed down from generation to generation.

b.       set of values, ideas, and attitudes that are learned and shared among the members of a group.

c.        pastimes associated with the fine arts, such as ballet, music, and theater.

d.       standard or pattern of behaviors that is typical or expected of a group.

e.        description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation.

Culture is a component of what type of environmental force that must be scanned to assess its impact on the organization’s marketing environment?

a.        regulatory

b.       technological

c.        competitive

d.       economic

e.        social

Culture includes values, which vary with age groups.  Consumers under 20 years old rank __________ as the third most important cultural value.

a.        honesty

b.       protecting the family

c.        friendship

d.       self-esteem

e.        health and fitness

Culture includes values, which vary with age.  Consumers between the ages of 20 to 29 years old rank __________ as the third most important cultural value.

a.        honesty

b.       protecting the family

c.        friendship

d.       self-esteem

e.        health and fitness

Culture includes values, which vary with age.  Consumers between the ages of 30-to-39 years old rank __________ as the third most important cultural value.

a.        honesty

b.       protecting the family

c.        friendship

d.       self-esteem

e.        health and fitness

Concern for health and fitness is one reason that 51 million people in the United States report that they are trying to control their weight.  This concern is an example of

a.        changing values.

b.       changing population composition.

c.        changing demographics.

d.       an increase in value consciousness.

e.        changing ethnic composition.

Many consumers are committed to brands with a strong link to social action.  An example of this would be

a.        McDonald’s “I’m Lovin It” campaign.

b.       Brita’s “Filter for Good” campaign.

c.        Imagine Babyz video game.

d.       Liz Claiborne’s “Claiborne for Men” campaign.

e.        Samsung’s “The Jitterbug” campaign.

According to some predictions, which of the following statements regarding attitudes and the roles of men and women is most likely to occur if current trends continue?

a.        The attitudes of men towards women will change more dramatically than the attitudes of women towards men.

b.       The attitudes of women towards men will change more dramatically than the attitudes of men towards women.

c.        The buying habits of women will become much more predictable than those of men.

d.       The gap between buying patterns of men and women will grow.

e.        The gap between buying patterns of men and women will diminish.

There have been significant cultural changes in the United States over the past 30 years, especially in the attitudes and roles of men and women in the marketplace.  The first generational cohort to have NO collective memory of these dramatic changes consists of

a.        baby boomers.

b.       Generation X.

c.        Generation Y.

d.       Generation Z.

e.        millennials.

In the past several decades, attitudes of both men and women have changed.  Increased participation in __________ has eliminated one of the most visible inequalities in opportunities for women.

a.        organized sports

b.       graduate business (MBA) programs

c.        fashion design programs

d.       financial/investment banking jobs

e.        medical professions

Over the past 30 years in the United States, the attitudes of men and women have changed.  One factor has been the __________.

a.        Internet, which made gender, race, and ethnicity invisible in the marketplace

b.       way women were portrayed in the movies and on television

c.        increased participation of women in the workforce, which has made employers more open-minded

d.       efforts of political activists to advocate the power of women

e.        economic shift that resulted in the courting of women to increase overall discretionary spending

Significant changes in attitudes of men and women have occurred during the past thirty years.  However, __________ believe that there is still a need for improvement in the workplace and in politics.

a.        baby boomers

b.       women of Generation X

c.        men of Generation X

d.       women of Generation Y

e.        men of Generation Y

UGG Australia built a strong reputation among women with its high quality sheepskin boots.  The firm is now attempting to attract men with new products.  To reach them, UGG is

a.        offering its existing women customers a “Buy 1 Pair, Get 1 Free” deal on its lines of men’s boots.

b.       using New England Patriots quarterback Tom Brady as a spokesperson.

c.        using product placements in TV programs, such as Two and a Half Men and ESPN’s SportsNation, that men primarily watch.

d.       outfitting players of the Australian Football (rugby) League.

e.        targeting skate boarders and snow boarders with its “Be Stupid” campaign.

Secret deodorant’s ad, “Strong enough for a man, but made for a woman,” reflected

a.        the need to market products to a single gender at a time.

b.       highlight that women were just as “strong” as men.

c.        a bridge of the gap between men and women in terms of market focus.

d.       the desire to highlight the differences between genders.

e.        a way to capitalize on the sex appeal of a clean scent to attract women.

All of the following are commonly held values in the United States EXCEPT:

a.        equality.

b.       individualism.

c.        continuous change.

d.       belief in fate (fatalism).

e.        personal control.

Two increasingly important values for consumers around the world are __________.

a.        self-esteem and fitness

b.       wealth and health

c.        patriotism and friendship

d.       family and fun

e.        sustainability and preservation of the environment

Consumers are buying hybrid gas-electric automobiles such as the Toyota Prius.  This is an example of which of the following cultural values?

a.        preserving the environment

b.       paying the least amount possible for products

c.        meeting the growing perceived inequality among competing brands

e.        reducing cognitive dissonance

Many consumers are committed to brands with a strong link to social action.  An example of this would be

a.        McDonald’s “I’m Lovin’ It” campaign.

b.       Brita’s “Filter for Good” campaign.

c.        Diesel’s “Be Stupid” campaign.

d.       Liz Claiborne’s “Claiborne for Men” campaign.

e.        Samsung’s “The Jitterbug” campaign.

Value consciousness refers to

a.        the difference between perceived value and actual value of a product or service.

b.       a fear of being subliminally influenced by marketing actions such as advertisements, endorsements, etc.

c.        a desire to pay the least amount possible for a product or service that meets minimum performance requirements.

d.       the concern for obtaining the best quality, features, and performance of a product or service for a given price.

e.        the concern for obtaining the best product or service regardless of the cost.

The concern for obtaining the best quality, features, and performance of a product or service for a given price is called

a.        customer value.

b.       the value proposition.

c.        buyer-centric excellence.

d.       purchasing value.

e.        value consciousness.

Today’s consumption orientation known as value consciousness is primarily due to

a.        a rise in using debt to fund purchases.

b.       the economic recession.

c.        an expansion in the purchase of quality brand name products.

d.       a cutback on the purchase of discretionary items like flat screen TVs.

e.        a desire to purchase products of lesser quality to receive a lower price.

The overwhelming response by bargain-hunting consumers to Groupon’s online deals is an example that demonstrates the change in consumption orientation known as

a.        the quality-value proposition.

b.       buyer-centric excellence.

c.        value consciousness.

d.       customer value.

e.        purchasing value.

The term that pertains to the income, expenditures, and resources that affect the cost of running a business or household is referred to as (the) __________.

a.        banking

b.       economy

c.        finances

d.       budgeting

e.        money management

The economy refers to

a.        the independent financial factors that are not affected by changes in government spending.

b.       the purchase of the highest quality product for the lowest possible price.

c.        the production, distribution, and consumption of products, services, and ideas by households.

d.       the income, expenditures, and resources that affect the cost of running a business and household.

e.        the forces within a manufacturer’s control that affect the demand and supply its offerings.

All of the following are economic indicators EXCEPT:

a.        inflation

b.       barriers to entry

c.        unemployment

d.       GDP

e.        deflation

A sudden drop in the average consumer income would be an example of which environmental force?

a.        economic

b.       competitive

c.        technological

d.       social

e.        regulatory

According to a recent environmental scan, the United States has spent over $1 trillion on the war on terrorism since 2001.  This expenditure is an example of a(n) __________ force.

a.        social

b.       economic

c.        technological

d.       competitive

e.        regulatory

Microsoft, Intuit, and Yahoo are building new facilities in Quincy, WA, a town that previously had a population of 3,500.  Along with these new neighbors, the residents of Quincy are also going to get more traffic lights, a strip mall, higher housing prices, and new jobs.  This example best illustrates a(n) __________ change that will impact the people and businesses of Quincy.

a.        social

b.       regulatory

c.        competitive

d.       economic

e.        technological

In a(n) __________ economy, the cost to produce and buy products and services escalates as prices increase.

a.        inflationary

b.       deflationary

c.        stagflationary

d.       recessionary

e.        depressive

In a(n) __________ economy, if prices rise faster than consumer incomes, the number of items consumers can buy decreases.

a.        deflationary

b.       stagflationary

c.        recessionary

d.       inflationary

e.        depressive

In an inflationary economy, the cost to produce and buy products and services __________ as prices __________.

a.        increases; increase

b.       increases; decrease

c.        decreases; increase

d.       decreases; decrease

e.        does not change; increase

The National Center for Public Policy and Higher Education reports that since 1980, college tuition and fees have increased by 440 percent whereas family incomes have risen less than 150 percent.  This is an example of a(n) __________ economy.

a.        deflationary

b.       recessionary

c.        disinflationary

d.       inflationary

e.        depressive

Policy makers at the Federal Reserve in the United States believe it takes a far bigger change in inflation to affect unemployment than it did 25 years ago.  Now, when inflation fluctuates, they are more likely to blame other factors, such as the price of oil.  This is an example of a(n) __________ environmental force.

a.        cultural

b.       regulatory

c.        competitive

d.       cost

e.        economic

A time of declining economic activity when businesses decrease production, unemployment rises, and many consumers have less money to spend is referred to as

a.        deflation.

b.       inflation.

c.        prosperity.

d.       a recession.

e.        a depression.

All of the following are time periods that the U.S. economy experienced a period of recession EXCEPT:

a.        1973−1975

b.       1981−1982

c.        1990−1991

d.       2007−2009

e.        2010−2011 (as of late-2011)

Which of the following measures consumers’ expectations of the U.S. economy?

a.        Index of Consumer Sentiment

b.       Consumer Expenditure Survey

c.        U.S. 2010 Census

d.       Survey of Consumer Finances

e.        Survey of Buying Power

Components of a consumer’s income include __________.

a.        inflation, recession, and depression

b.       salary, wages, and commissions

c.        gross, disposable, and discretionary income

d.       sales taxes, income taxes, and property taxes

e.        assets, liabilities, and equities

The total amount of money made in one year by a person, household, or family unit is referred to as __________ income.

a.        government

b.       discretionary

c.        disposable

d.       gross

e.        livable

Gross income refers to

a.        the money that remains after paying for taxes and necessities.

b.       the money deducted from a person’s paycheck to pay for federal, state, and local taxes.

c.        the money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation.

d.       the total amount of money made by a single individual in his or her lifetime.

e.        the total amount of money made in one year by a person, household, or family unit.

At the U.S. Census Bureau, gross income is referred to as __________.

a.        buying power

b.       cash inflow

c.        money income

d.       fiscal power

e.        household income

In 1970, the typical U.S. household earned about $8,700.  In 2009, the typical U.S. household earned about $49,777.  If adjusted for inflation, the gross income of the typical U.S. household in 2009 relative to 1970 has __________.

a.        increased dramatically

b.       increased somewhat

c.        remained relatively stable

d.       decreased somewhat

e.        decreased dramatically

Marketers collect and use environmental information to better understand consumers.  The ESRI Tapestry Segmentation tool is used to

a.        obtain an economic profile of “hometowns” in comparison to national profiles.

b.       obtain a profile of customers who identify themselves as members of multiracial or multiethnic groups.

c.        identify behavioral segments of the population interested in the more domestic arts such as sewing, crocheting, knitting, and quilting.

d.       help segment markets in the areas of home design based on decorating styles such as traditional, Victorian, contemporary, etc.

e.        identify similarities rather than differences among a diverse group of consumers by race, ethnicity, gender, and age.

The money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation is referred to as __________.

a.        net income

b.       disposable income

c.        discretionary income

d.       household income

e.        gross income

Disposable income refers to

a.        the money that remains after paying for taxes and necessities.

b.       the money deducted from a person’s paycheck to pay for federal, state, and local taxes.

c.        the total amount of money made by a single individual in his or her lifetime.

d.       the money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation.

e.        the money that is spent for necessities or charitable causes that is exempt from taxation

If taxes rise at a faster rate than incomes, consumers will

a.        have less disposable income and try to economize.

b.       feel more confident in the government and therefore spend more money.

c.        be able to afford to take a vacation.

d.       recognize that it’s the perfect opportunity to buy a car.

e.        react by voting for all incumbent members of Congress.

During a recessionary period, which of the following is expected?

a.        The use of credit would decline.

b.       Consumer spending would increase.

c.        Taxes would increase nationally.

d.       Property values would jump dramatically.

e.        Consumers would use the majority of their discretionary income on entertainment.

The recent large decline in __________ has had a psychological impact on consumers who tend to spend more when they feel their net worth is rising and postpone purchases when it declines.

a.        automobile prices

b.       fuel prices

c.        the number of people competing for jobs

d.       consumer confidence

e.        property values

The money that remains after paying for taxes and necessities is referred to as __________.

a.        net income

b.       discretionary income

c.        disposable income

d.       household income

e.        gross income

Discretionary income refers to

a.        the money deducted from a person’s paycheck to pay for federal, state, and local taxes.

b.       the total amount of money made by a single individual in his or her lifetime.

c.        the money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation.

d.       the money that remains after paying for taxes and necessities.

e.        the money that is spent for necessities or charitable causes that is exempt from taxation.

Income used to buy luxury items such as a Regent cruise is referred to as __________.

a.        gross income

b.       disposable income

c.        surplus income

d.       wealth income

e.        discretionary income

The Department of Labor monitors consumer expenditures through its annual __________.

a.        Consumer Price Index

b.       Consumer Confidence Index

c.        Consumer Expenditure Survey

d.       Index of Consumer Sentiment

e.        National Consumer Spending Survey

The Department of Labor monitors consumer expenditures through its annual Consumer Expenditure Survey.  In 2009, consumers spent about 13 percent of their income on food, 34 percent on __________, and 3.5 percent on clothes.

a.        education

b.       housing

c.        vacations

d.       health care

e.        transportation

Increases in discretionary income can occur as a result of all of the following EXCEPT:

a.        an increase in gross income.

b.       a decrease in taxes.

c.        an increase in disposable income.

d.       an increase in savings.

e.        a decline in inflation.

Emily had an excellent year as a saleswoman in 2011, earning $97,000.  She paid $17,000 for “necessities” such as mortgage, food, and clothing.  She was given a six-week, all expenses paid vacation by the company for her sales performance that had a value of $9,000.  Her state and federal income taxes totaled $24,000.  What was her discretionary income?

a.        $41,000

b.       $56,000

c.        $65,000

d.       $73,000

e.        There is not enough data provided to calculate her discretionary income.

The owner of your local KFC franchise had a good year with rising revenues and reduced operating costs that resulted in a personal income of approximately $100,000.  One-third of that was taken for local, state, and federal income taxes and another third went to pay for a home mortgage, car payments, food, clothing, and other necessities.  What is the remaining third called?

a.        gross income

b.       bonus income

c.        discretionary income

d.       disposable income

e.        profit

Carl and Nancy Johnson prepared a household budget in an attempt to manage their money better.  As part of their budgeting process, Carl and Nancy prepared the following list:

Monthly Income (after taxes):              $4,500

Monthly Expenses (Necessities)

Rent:                                              $550

Auto Loan:                                       $250

Student Loan:                                   $200

Savings:                                          $500

Food:                                             $200

Total Monthly Expenses:                     $1,700

Amount Left Over:                           $2,800

After totaling their necessary expenses, which equals $1,700, Carl and Nancy subtracted that amount from their monthly income of $4,500.  The Johnsons were happy to realize that they had $2,800 left over, which is their __________.

a.        gross income

b.       personal income

c.        disposable income

d.       discretionary income

e.        profit

Recently, the number of people who attended music concerts, plays, and other live entertainment increased because they had the __________ to enjoy these activities.

a.        gross income

b.       bonus income

c.        profit

d.       disposable income

e.        discretionary income

Last year, the Parker family used to eat at nice restaurants almost four times a week.  Even though Mr. Parker received a 5 percent raise, the cost of living rose by 7 percent.  As a result, the family now eats most of their meals at home, dining out only four times a month.  This reflects

a.        a decrease in the number of fine restaurants that can stay in business during times of economical downturn.

b.       a reaction to a loss of discretionary income.

c.        a significant drop in disposable income since there was a negative gain in income.

d.       a rise in deflation.

e.        a shift from spending to investing.

Recent data on consumer expenditures indicate that the savings rate of U.S. consumers has __________.

a.        declined 6 percent; they are taking money from savings to pay current expenses on necessities

b.       remained flat at 0 percent

c.        risen slightly at 2 percent

d.       risen to 6 percent

e.        exploded to 10 percent

Inventions or innovations from applied science or engineering research are referred to as

a.        scientific discoveries.

b.       theoretical development.

c.        technology.

d.       patents.

e.        dynamic engineering.

Technology refers to

a.        any device or process based on scientific discoveries that are less than one year old.

b.       any mechanical device used in the production or distribution of a product.

c.        only those inventions or innovations from applied science that are used to generate a profit.

d.       ideas or concepts that will one day be translated into useable devices, mechanisms, or processes.

e.        the inventions or innovations from applied science or engineering research.

 

Technological advances are difficult to predict.  One great advance can replace or substitute for existing products in a relatively short period of time.  As shown The New Yorker ad above shows, tablet devices, such as the iPad, are likely to replace its weekly __________.

a.        radio broadcast

b.       television broadcast

c.        magazine

d.       e-book

e.        online video game

Four new technologies are expected to have impact on marketing.  These are

a.        biotechnology, SmartGrids, natural user interfaces, and social networks.

b.       neuron technology, lithium batteries, cloud computing, and wireless power.

c.        crowdsourcing, genomics, QR codes, and CRT TVs.

d.       books, video conferencing, solar cells, and quantum dots.

e.        nanotechnology, autobots, cloud computing, and wireless power.

Medication sensors have been developed that can dispense medicines by circulating within the arteries of the body and sensing when the medication is needed.  This is an example of how __________ forces help improve or replace existing products and companies.

a.        ecological

b.       regulatory

c.        legal

d.       competitive

e.        technological

Very recently, ink has been developed that will conduct electricity.  The application for this ink is to print circuitry that can be read electronically.  This may help to drive down the cost of radio frequency (RFID) tags that are currently used in industry.  This is an example of how __________ forces are applied to industry.

a.        ecological

b.       regulatory

c.        technological

d.       competitive

e.        marketing mix

One reason some people don’t like to buy clothing from Internet retailers is the inability to know if the clothes will fit once they have arrived.  ImageTwin has developed a scanning system that obtains the measurements of individuals of all different sizes, which is then fed into a database.  So, when you want to buy something at LandsEnd.com, you can see a 3D image of what the item should look like on your body.  This is an example of the __________ force in the marketing environment.

a.        economic

b.       technological

c.        sociocultural

d.       competitive

e.        marketing mix

Cloud computing, such as Apple’s iCloud, enables businesses and consumers to share one’s data or use a firm’s software application like Microsoft Office directly from that firm’s or a third party’s server over the Internet rather than having that data file or program reside on a personal computer.  This is an example of a change in the __________ marketing environment.

a.        regulatory

b.       sociocultural

c.        competitive

d.       technological

e.        marketing mix

Microsoft has developed __________ software to use with its 3D image capture technology called Kinect.

a.        natural user interface

b.       Facebook

c.        Twitter

d.       cloud computing

e.        digital payments

SmartGrid infrastructure, online energy management, and consumer-generated energy (home wind turbines) best describe examples of today’s (and tomorrow’s) __________ force identified through an environmental scan.

a.        sociocultural

b.       competitive

c.        legal/regulatory

d.       technological

e.        economic

An example of a dramatic __________ change is the increasing use of e-readers like Amazon’s Kindle and tablet devices like Apple’s iPad to read digital books.

a.        managerial

b.       technological

c.        ethical

d.       regulatory

e.        economic

The Electronic Signatures in Global and National Commerce Act makes digital signatures as valid as non-digital pen-and-ink signatures.  This act created a demand for software and hardware that would collect, transmit, and receive digital signatures.  This example indicates how __________ forces can work together in the marketing environment.

a.        technological and regulatory

b.       technological and competitive

c.        social and competitive

d.       social and economic

e.        regulatory and economic

Technology can change existing products and the ways they are produced.  Many companies are using technological developments to allow the __________ of products through the manufacturing cycle several times.

a.        pruning

b.       adding

c.        recycling

d.       precycling

e.        refining

In the U.S. alone, roughly 500 million computers will become obsolete by 2017.  These computers contain more than 2 billion pounds of what will become lead waste that is harmful to the environment.  As a result, computer manufacturers are being pressured to accept the return of used computers for the safety of communities.  This environmental issue reflects a problem with __________, a technological issue within the marketing environment.

a.        recycling

b.       gray marketing

c.        preowned marketing

d.       postcycling

e.        precycling

With the rise of electronic music keyboards, the United States is overrun with unwanted pianos.  A craftsman decided that old pianos were the perfect height for computer desks.  The computer keyboard can be placed where the piano keys once were.  He sells his converted pianos for about $1,500.  Go to PianoDesk.com if you are interested in this unusual __________ effort.

a.        reapplied engineering

b.       post innovation

c.        recycling

d.       postcycling

e.        precycling

Efforts by manufacturers to avoid waste by decreasing the amount of packaging they use is termed __________.

a.        shrinkage

b.       downsizing

c.        recycling

d.       postcycling

e.        precycling

Marketspace refers to

a.        the two-way buyer–seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller.

b.       websites that allow people to congregate online and exchange views on topics of common interest.

c.        Internet search engines used for the purpose of data mining.

d.       an information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings.

e.        the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online.

An information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunications technologies and digitized offerings is referred to as __________.

a.        Internet marketing

b.       marketspace

c.        electronic commerce

d.       marketplace

e.        e-exchange

Any activity that uses some form of electronic communication in the inventory, exchange, advertisement, distribution, and payment of goods and services is referred to as __________.

a.        electronic commerce

b.       Internet barter

c.        intranet commerce

d.       electronic exchange

e.        extranet commerce

Electronic commerce refers to

a.        an information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunications technologies and digitized offerings.

b.       any activity that uses some form of electronic communication in the inventory, exchange, advertisement, distribution, and payment of goods and services.

c.        two-way buyer–seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller.

d.       electronic storefronts that focus on converting an online browser into an online, catalog, or in-store buyer.

e.        electronic storefronts that advertise and promote a company’s products and services and provide information on how items can be used and where they can be purchased.

Buying a book at www.amazon.com to give as a birthday present is an example of a(n) __________ transaction.

a.        i-market

b.       intranet

c.        electronic commerce

d.       extranet

e.        marketplace

A(n) __________ is an Internet-based network used within the boundaries of an organization.

a.        web exchange

b.       commercial online service

c.        extranet

d.       Internet service provider

e.        intranet

Office Depot has given its staff wireless tablet devices.  When customers inquire about a product, a computer-equipped sales associate can pull up detailed information about the product from the corporate database.  In addition, employees at one store can contact employees at another store for advice or information.  This is an example of how a(n) __________ can be used to enhance marketing.

a.        Internet service provider

b.       web exchange

c.        commercial online service

d.       extranet

e.        intranet

Companies often use Internet-based technologies called a(n) __________ that  permits communication between a company and its suppliers, distributors, and other partners.

a.        Internet service provider

b.       extranet

c.        intranet

d.       commercial online service

e.        web exchange

Alternative firms that could provide a product to satisfy a specific market’s needs are referred to as __________.

a.        substitute firms

b.       target markets

c.        complementary firms

d.       cross product marketers

e.        competition

Competition refers to

a.        identical products that perform identical functions.

b.       any for profit organization that targets the customers of other organizations.

c.        alternative firms that could provide a product to satisfy a specific market’s needs.

d.       any product or service that vies for a portion of a customer’s discretionary income.

e.        the set of firms that operate in a given geographic region, regardless of product or service.

In marketing, the four basic forms of competition are

a.        pure competition, limited competition, oligopoly, and monopoly.

b.       dictatorship, monarchy, oligarchy, and democracy.

c.        pure competition, cross-market competition, oligopoly, and pure monopoly.

d.       pure competition, monopolistic competition, oligopoly, and pure monopoly.

e.        technological competition, market competition, governmental competition, and environmental competition.

Many firms now use e-mail and the Internet to promote their products instead of sending promotional literature to current and prospective customers though the mail.  UPS and FedEx continue to grow, as they have both expedited (overnight) and ground package delivery services.  These marketplace activities have caused the U.S. Postal Service (USPS) to lose millions of customers and billions of dollars in revenues.  As a result, the USPS has had to cope with new ___________ forces in the marketplace.

a.        economic

b.       competitive

c.        legal

d.       social

e.        technological

The form of competition in which there are many sellers and they each have a similar product is referred to as __________.

a.        pure competition

b.       singular competition

c.        an oligopoly

d.       monopolistic competition

e.        a monopoly

In _________, there are many sellers and they each have a similar product, such as commodities common to agribusinesses.

a.        limited competition

b.       pure competition

c.        oligopoly competition

d.       monopolistic competition

e.        a monopoly

__________ is the form of competition where distribution is the only element of the marketing mix that exerts an impact on the firm.

a.        Cross-market competition

b.       Limited competition

c.        Pure competition

d.       Monopolistic competition

e.        A monopoly

The form of competition in which many sellers compete with their products on a substitutable basis within a price range is called

a.        pure competition.

b.       cross-market competition.

c.        an oligopoly.

d.       monopolistic competition.

e.        a monopoly.

Coupons and sales are frequently used marketing tactics for which form of competition?

a.        pure competition

b.       cross-market competition

c.        an oligopoly

d.       a monopoly

e.        monopolistic competition

Paul Avery is a salesperson at the only Ford automobile dealership in Wausau, Wisconsin.  However, there are several other auto dealerships in town, offering both domestic and foreign cars and trucks.  Paul works hard to keep his customers satisfied because he knows that if his customers are unhappy, they can simply buy a car from one of the several other comparable dealers in Wausau.  This is an example of

a.        pure competition.

b.       monopolistic competition.

c.        an oligopoly.

d.       a monopoly.

e.        marginal competition.

During the Christmas season, many catalog retailers offer buyers price reductions, coupons, two-for-one deals, and/or free delivery.  This is because these catalog retailers operate in a(n) __________ environment.

a.        pure competition

b.       oligopoly

c.        monopolistic competition

d.       monopoly

e.        marginal competition

The form of competition where just a few companies control the majority of industry sales is referred to as __________.

a.        pure competition

b.       cross-market competition

c.        an oligopoly

d.       monopolistic competition

e.        a monopoly

Because there are few sellers, price competition among firms is not desirable in which form of competition?

a.        pure competition

b.       cross-market competition

c.        a monopoly

d.       monopolistic competition

e.        an oligopoly

According to a 2011 Federal Communications Commission report, AT&T, Verizon, Sprint-Nextel, and T-Mobile control the vast majority of the subscribers in the U.S. wireless mobile phone market.  Which form of competition characterizes this market?

a.        pure competition

b.       limited competition

c.        a monopoly

d.       an oligopoly

e.        monopolistic competition

Boeing, Northrup Grumman, and Lockheed Martin control the vast majority of the U.S. defense contractor industry.  In terms of the form of competition, this industry is an example of a(n) __________.

a.        oligopoly

b.       trilateral monopoly

c.        monopoly

d.       pure competition

e.        monopolistic competition

As of late 2011, the four major retailers of online music include the iTunes, Napster, Amazon, and Rhapsody.  In terms of the form of competition, this industry is an example of a(n) __________.

a.        monopoly

b.       mega monopoly

c.        pure competition

d.       oligopoly

e.        monopolistic competition

Kodak, Fuji, and Agfa control the majority of sales for traditional 35mm photographic film.  The film industry is an example of a(n) __________.

a.        monopoly

b.       mega monopoly

c.        oligopoly

d.       pure competition

e.        monopolistic competition

In marketing, the form of competition that occurs when only one firm sells the product is referred to as __________.

a.        pure competition

b.       a megopoly

c.        an oligopoly

d.       monopolistic competition

e.        pure monopoly

Since ___________ is regulated by the state or federal government, marketing plays a relatively small role in this setting.

a.        pure competition

b.       a pure monopoly

c.        an oligopoly

d.       monopolistic competition

e.        a megopoly

The factors that drive competition include

a.        monopolistic competition, cross-market competition, entry, and the bargaining power of buyers and suppliers.

b.       cross-market competition, entry, the bargaining power of buyers and suppliers, and substitution possibilities.

c.        monopolistic competition, cross-market competition, bargaining power of buyers and suppliers, existing rivalries.

d.       entry, the bargaining power of buyers and suppliers, existing rivalries, and substitution possibilities.

e.        cross-market competition, entry, bargaining power of buyers and suppliers, and federal regulation.

Business practices or conditions that make it difficult for new firms to enter the market are referred to as __________.

a.        market obstructions

b.       barriers to entry

c.        switching costs

d.       import-export firewalls

e.        preemptive practices

Barriers to entry refer to

a.        business practices or conditions that make it difficult for new firms to enter the market.

b.       governmental prohibitions regarding the establishment of businesses that are considered immoral.

c.        governmental prohibitions regarding the establishment of businesses that are considered legal but unethical.

d.       restrictive fees that are set intentionally high in order to prevent additional competition in an already highly competitive industry.

e.        strong-armed tactics that are illegal but commonly used in certain industries to hinder competition.

Barriers to entry include capital requirements, switching costs, advertising expenditures, and

a.        personnel shortages.

b.       distribution access.

c.        field of experience.

d.       inventory deficits.

e.        prior enterprise failures.

Powerful buyers exist when

a.        there are many buyers.

b.       switching costs are low.

c.        the product represents a small share of the buyer’s total costs.

d.       the product is critical to the buyer.

e.        preemptive practices exist.

Competitive pressures among existing firms depend on

a.        the current economic growth rate.

b.       the total number of established competitors.

c.        low fixed costs.

d.       the rate of industry growth.

e.        the availability of raw materials and natural resources.

Small businesses make up the majority of the competitive landscape for most businesses.  There are approximately __________ small businesses in the United States.

a.        17 million

b.       27 million

c.        37 million

d.       50 million

e.        100 million

Small businesses account for __________ of the gross domestic product (GDP).

a.        25 percent

b.       30 percent

c.        50 percent

d.       65 percent

e.        80 percent

The restrictions that state and federal laws place on business with regard to the conduct of its activities are referred to as

a.        jurisprudence.

b.       competitive constrains.

c.        barriers to entry.

d.       restraints of trade.

e.        regulation.

Regulation refers to

a.        the restrictions that state and federal laws place on business with regard to the conduct of its activities.

b.       constraints placed on businesses for activities that are legal but unethical.

c.        society’s values and standards that are enforceable in the courts.

d.       requirements concerning which customers a firm may serve or not serve.

e.        the moral principles and values that govern the actions and decisions of an individual or group.

F. Hoffman-LaRoche Ltd. and BASF AG, two international pharmaceutical companies, were ordered to pay $725 million in fines for plotting to raise and fix prices of vitamins used in virtually every home in the United States.  This is an example of how __________ forces affect the marketing environment.

a.        economic

b.       ecological

c.        technological

d.       social

e.        regulatory

A car collector, Mr. F. Hansen, who said his 1975 Chevrolet Corvette was certified as the last Corvette convertible to be produced, sued General Motors to stop it from manufacturing any more of the convertible sports cars.  The suit also requested $1.5 million in damages.  Hansen claimed he bought the car for its collector’s value.  It came with a letter from GM dated August 25, 1975, which said that the car was “the last Corvette convertible that General Motors Corp. would ever manufacture.”  Hansen said the value of his car has been decreasing ever since GM resumed manufacturing Corvette convertibles in 1985.  If the court ruled in favor of Mr. Hansen, what general type of regulation would such a ruling represent?

a.        protecting companies from one another

b.       protecting consumers from unfair trade practices

c.        protecting the future interests of society from dangerous business practices

d.       protecting consumers from one another

e.        protecting businesses from unfair consumer practices

The first major federal legislation passed to encourage competition in the United States was the

a.        Sherman Antitrust Act.

b.       Lanham Act.

c.        Federal Trade Commission Act.

d.       Robinson-Patman Act.

e.        Clayton Act.

The first major federal legislation passed to forbid contracts, combinations, or conspiracies in restraint of trade in the United States was the

a.        Lanham Act.

b.       Sherman Antitrust Act.

c.        Federal Trade Commission Act.

d.       Robinson-Patman Act.

e.        Clayton Act.

The first major federal legislation passed to forbid actual monopolies or attempts to monopolize any part of trade or commerce in the United States was the

a.        Lanham Act.

b.       Federal Trade Commission Act.

c.        Robinson-Patman Act.

d.       Sherman Antitrust Act.

e.        Clayton Act.

Which of the following laws has the purpose of protecting competition?

a.        Lanham Act.

b.       Federal Trade Commission Act.

c.        Fair Trade Act.

d.       Unfair Practices Act.

e.        Sherman Antitrust Act.

The purpose of the Clayton Act is to

a.        provide incentives for interstate commerce.

b.       forbid actions that are likely to lessen competition, although no actual harm has yet occurred.

c.        exact compensation from firms found guilty of violating fair trade practices.

d.       repeal provisions of the Sherman Antitrust Act.

e.        strengthen the Robinson-Patman Act.

The purpose of the __________ is to forbid certain actions that are likely to lessen competition, although no actual harm has yet occurred.

a.        Federal Trade Commission Act

b.       Lanham Act

c.        Clayton Act

d.       Sherman Antitrust Act

e.        Robinson-Patman Act

Which of the following laws has the purpose of protecting competition?

a.        Prevention and Enforcement Act

b.       Clayton Act

c.        Federal Trade Commission Act

d.       Fair Trade Act

e.        Unfair Practices Act

The __________ makes it unlawful to discriminate in prices charged to different purchasers of the same product, where the effect may substantially lessen competition or help to create a monopoly.

a.        Fair Trade Act

b.       Clayton Act

c.        Lanham Act

d.       Robinson-Patman Act

e.        Unfair Practices Act

The purpose of the Robinson-Patman Act is to

a.        outlaw price discrimination for purchasers of the same product.

b.       encourage pure competition.

c.        protect inventors from having their intellectual property stolen.

d.       repeal the Sherman Antitrust Act.

e.        provide incentives for interstate commerce.

Twenty years after the Clayton Act, the growth of chain stores such as Sears led many to fear that retail chains presented a threat to smaller, independent retailers.  The federal government enacted the __________ to make it unlawful to discriminate in prices charged to different purchasers of the same product, where the effect may substantially lessen competition or help to create a monopoly.

a.        Robinson-Patman Act

b.       Fair Trade Act

c.        Clayton Act

d.       Lanham Act

e.        Unfair Practices Act

Which of the following laws has the purpose of protecting competition?

a.        Robinson-Patman Act

b.       Lanham Act

c.        Federal Trade Commission Act

d.       Fair Trade Act

e.        Unfair Practices Act

The purpose of patent law is to

a.        provide incentives for increased competition.

b.       give an author of a literary, dramatic, musical, or artistic work the exclusive right to print, perform, or otherwise copy that work.

c.        give inventors the right to exclude others from making, using, or selling products that infringe the patented invention.

d.       guarantee the quality and safety of any product produced or distributed in the United States.

e.        level the playing field between inventors who work for large corporations and those who work on their own.

A company can protect its competitive position under __________, which gives inventors the right to exclude others from making, using, or selling products that infringe the patented invention.

a.        copyright law

b.       patent law

c.        criminal law

d.       commercial law

e.        antitrust law

The purpose of copyright law is to

a.        provide incentives for increased competition.

b.       give inventors the right to exclude others from making, using, or selling products that infringe the patented invention.

c.        level the playing field between inventors who work for large corporations and those who work on their own.

d.       guarantee the quality and safety of any product produced or distributed in the United States.

e.        give an author of a literary, dramatic, musical, or artistic work the exclusive right to print, perform, or otherwise copy that work.

The purpose of __________ is to give the author of a literary, dramatic, musical, or artistic work the exclusive right to print, perform, or otherwise copy that work.

a.        copyright law

b.       patent law

c.        criminal law

d.       commercial law

e.        antitrust law

In 1998, President Clinton signed the Digital Millennium Copyright Act, which

a.        limits access of children to online material considered to be inappropriate or harmful.

b.       improves protection of copyrighted digital products.

c.        allows the government to collect taxes if printed materials are sold online.

d.       prevents the pirating of digital products that do not display the copyright symbol.

e.        allows anyone with access to a computer to publish original materials online and seek remuneration (pay).

The Infant Formula Act, the Nutritional Labeling and Education Act, and the Fair Packaging and Labeling Act are all examples of

a.        consumer-oriented legislation.

b.       pricing-related legislation.

c.        distribution-related legislation.

d.       requirement contracts.

e.        fair trade legislation.

The Infant Formula Act (1980), the Nutritional Labeling and Education Act (1990), and the Fair Packaging and Labeling Act (1966) are all examples of

a.        pricing-related legislation.

b.       consumer-oriented federal laws.

c.        fair trade legislation.

d.       distribution-related legislation.

e.        requirement contracts.

A mother bought what she thought was a large box of unsweetened cereal.  It was the same 22 oz. size as other brands whose boxes clearly marked.  However, when she opened the box it was barely ¾ full.  The Fair Packaging and Labeling Act would not protect her unless

a.        the package printed the disclaimer that the product might settle during shipping.

b.       the package states that the contents should be purchased by weight rather than by volume.

c.        the package clearly states 22 oz. on the front but the actual weight of the contents was only 16 oz.

d.       the package lists all the ingredients including the total amount of sugar.

e.        an identical package by the same manufacturer had the exact same amount inside.

The __________ established the Consumer Product Safety Commission to monitor product safety and establish uniform product safety standards.

a.        Nutritional Labeling and Education Act

b.       Consumer Protection Act

c.        Fair Packaging and Labeling Act

d.       Child Protection Act

e.        Consumer Product Safety Act

The grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions is referred to as __________.

a.        Naderism

b.       consumerism

c.        green marketing

d.       anti-corporate activism

e.        consumptionism

Consumerism refers to

a.        a movement of conspicuous consumption that began when the World War II ended.

b.       conducting business in a way that protects the natural environment while making economic progress.

c.        a collaborative effort between buyers and sellers to create an exchange where each benefit.

d.       the recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.

e.        the grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions.

In the 1960s, President Kennedy developed what is known as the Consumer Bill of Rights.  This legislation was developed to protect consumers from unscrupulous marketers and guaranteed consumers four fundamental rights, including the right to be informed, the right to choose, the right to be protected, and the right to be heard.  More recently, the Children's Online Privacy Protection Act (1998) has been passed.  Many laws such as these are the results of __________.

a.        marketing ethics

b.       self-regulation

c.        cause marketing

d.       consumerism

e.        Naderism

Each year, the U.S. Army shoots an estimated 200 million rounds of lead bullets at target practice areas across the United States.  Pentagon officials, in response to environmentalists’ concerns over lead poisoning in the soil, have invested over $12 million to develop an environmentally safe tungsten bullet.  This is an example of one of the outcomes of __________.

a.        marketing ethics

b.       consumerism

c.        cause marketing

d.       self-regulation

e.        Naderism

The two major purposes for any trademark statute are to

a.        (1) protect the investment of energy, time, and money that the owner of a trademark has invested in the development of the product and (2) guarantee the owner of the trademark complete rights to his work for the duration of the owner’s lifetime.

b.       (1) protect the inventor’s individual rights and (2) provide the company with the maximum profits possible.

c.        protect the rights of the inventor both here and abroad.

d.       (1) protect the public so they will get the product it wants and asks for and (2) protect the government so it will be able to collect its fair share of taxes from the revenues generated.

e.        (1) protect the public so they will get the product it wants and asks for and (2) protect the investment of energy, time, and money that the owner of a trademark has invested in the development of the product.

The Lanham Act (1946)

a.        prevents someone from using a trademark on a noncompeting product.

b.       protects the consumer from product defects.

c.        provides for registration of a company’s trademarks.

d.       allows a company to secure rights to a name before its actual use.

e.        facilitates the protection of U.S. trademark rights throughout the world.

The __________ provides for registration of a company’s trademark, such as the Nike swoosh.

a.        Lanham Act

b.       Patent Act

c.        Clayton Act

d.       Sherman Antitrust Act

e.        Miller-Tydings Act

The Lanham Act cannot protect the rights to a trademark if

a.        the company is accused of violating the Sherman Antitrust Act.

b.       the product patent is less than 17 years old.

c.        the word, name, or symbol has become generic.

d.       the statute of limitations has run out.

e.        the government refuses to enforce violations.

Registration under the Lanham Act provides important advantages to a trademark owner that has used the trademark in interstate or foreign commerce, but it does not

a.        allow a trademark to be used for more than 83 years.

b.       provide reciprocity with foreign firms allowing their trademarks to be honored here.

c.        prevent other firms from obtaining similar trademarks for significant improvements of the original product.

d.       guarantee protection under the Trademark Law Revision Act.

e.        confer ownership.

 

 

Generics Photo

In the Generics photo above, the manufacturers of these products are concerned that their brand names will become generic.  The legislation most likely to address this issue is the __________.

a.        Sherman Antitrust Act

b.       Patent Act

c.        Clayton Act

d.       Lanham Act

e.        Miller-Tydings Act

Which of the products in the Generics photo above is least likely, at this point in time, to be concerned with having its name become generic?

a.        Kleenex because most people just ask for a tissue.

b.       Jell-O because there are not other gelatin desserts.

c.        All Sport Disk because most people call it a Frisbee.

d.       Q-Tips because most people call it a cotton swab.

e.        Vaseline because most people refer to it as petroleum jelly.

Coca-Cola hired “brand police” to make sure that the Coca-Cola brand name and logo are not used without written permission.  Why is Coca-Cola so rigorous in protecting its trademark?

a.        Coca-Cola risks losing its generic status.

b.       In order to maintain the use of its widely recognizable trademark, Coca-Cola must prevent the name from becoming generic.

c.        The Robinson-Patman Act conferred ownership of the Coke name and other trademarked property to the Coca-Cola Company.

d.       The government will file charges for trademark infringement only if the owner of the trademark has documented proof of wrongdoing.

e.        By protecting its trademark, Coca-Cola is protecting the entire soft drink industry from indirect competition.

In 2008, Apple filed for and received approval from the U.S. Patent and Trademark Office to trademark the “App Store” name to describe a service that allows its iPhone and iPad customers to purchase and download applications, video games, and other software.  Over the past few years, Apple has invested millions in advertising and publicity and customers have purchased millions of dollars of software from its “App Store.”  However, Amazon.com and Microsoft both claim that Apple does not have exclusive rights to the name because other firms use it to describe their online storefronts where consumers can obtain software for smartphones and tablet devices.  Apple has filed lawsuits against these firms, particularly Amazon, for violating its trademark.  Why should Apple rigorously protect its “App Store” trademark?

a.        Apple risks losing its status as a generic smartphone and tablet device manufacturer.

b.       In order to maintain the use of its widely recognizable trademark, Apple must prevent the name from becoming generic.

c.        The Robinson-Patman Act conferred ownership of the “App Store” name and other trademarked property to Apple and/or Microsoft.

d.       The government will file charges for trademark infringement only if Apple, the owner of the trademark, has documented proof of wrongdoing by Amazon.

e.        By protecting its trademark, Apple is protecting the entire smartphone and tablet device industries from indirect competition.

In 1988, the Trademark Law Revision Act resulted in a major change to the Lanham Act.  The change allows

a.        a company to secure rights to a name before its actual use by declaring an intent to use the name.

b.       products to use generic terms as trademarks.

c.        inventors to apply for use of Internet domain names.

d.       a company to declare trademark ownership in foreign markets.

e.        products to use more than one trademark.

The Trademark Law Revision Act (1988) addresses the right of a company to

a.        sell to the highest bidder a trademark that has expired or been retired.

b.       incorporate an unlimited number of new products under the same trademark.

c.        secure rights to a name before the product is even in use.

d.       alter its trademark in terms of color, design, or slogan without having to reapply for a new trademark.

e.        protects U.S. trademark rights throughout the world.

The Trademark Law Revision Act (1988)

a.        prevents someone from using a trademark on a noncompeting product.

b.       provides for registration of a company’s trademarks.

c.        protects only the consumer.

d.       allows a company to secure rights to a name before its actual use.

e.        facilitates the protection of U.S. trademark rights throughout the world.

The Madrid Protocol is

a.        a method of registering a trademark with language adaptations for different countries.

b.       the act of collectively seeking a trademark for an entire industry.

c.        a form of national branding, i.e., “Chilean Sea Bass.”

d.       a treaty that facilitates the protection of U.S. trademark rights throughout the world.

e.        an agreement to stop piracy of noncopyrighted products abroad.

In marketing, “doppelgangers” refer to

a.        ads or logos that look similar to a familiar brand that have been altered by digital technology.

b.       products that are so similar to one another in form and function that trademarks cannot be issued to one of them.

c.        products that are almost identical, but are registered independently with different trademarks in different countries.

d.       two trademark symbols that closely resemble one another in appearance.

e.        two distinctly different products (and product classes) whose colors are so similar to one another that customers believe both products are owned by the same company.

The primary purpose of a doppelganger is to

a.        make people laugh, which subconsciously makes them desire the real product.

b.       undermine the integrity of an existing brand.

c.        make the brand generic.

d.       increase productivity of advertising.

e.        protect trademark infringement by competing firms in the same industry.

A trademark is a device that can take almost any form, as long as it is capable of identifying and distinguishing specific products or services.  Owens-Corning Fiberglas Corporation’s trademark is an example of a product that is protected by

a.        combination of letters and designs.

b.       product shape.

c.        picture.

d.       logo.

e.        color.

The Federal Dilution Act

a.        prevents someone from using a trademark on a non-competing product.

b.       provides for registration of a company’s trademarks.

c.        allows a company to secure rights to a name before its actual use.

d.       facilitates the protection of U.S. trademark rights throughout the world.

e.        allows language adaptations for trademarks in different parts of the world.

The pricing component of the marketing mix is the focus of regulation from two perspectives:

a.        quantity discounts and price gouging.

b.       price fixing and price discounting.

c.        promotional allowances and trade allowances.

d.       selling and bartering.

e.        competitive pricing and illegal bartering.

The courts see price fixing as per se illegal, which means the courts

a.        see price fixing itself as illegal.

b.       don’t view price fixing as illegal.

c.        only consider price fixing to be illegal if a company is sued.

d.       compare the company behavior to behavior typical in its industry.

e.        view price fixing as illegal only if it causes destructive competition.

An arrangement a manufacturer makes with a reseller to handle only its products and not those of competitors is referred to as a(n) __________.

a.        tying arrangement

b.       requirement contracting

c.        exclusive dealing

d.       territorial dealership contracting

e.        selective distribution

If a major food company offered supermarket chains special prices and incentives to carry its brand of frozen vegetables and not to carry competing brands, it could be accused of __________ and would be subject to prosecution if its actions substantially reduce competition.

a.        requirement contracting

b.       a tying arrangement

c.        a territorial infringement

d.       a monopolistic practice

e.        exclusive dealing

__________ demand buyers purchase all or part of their needs for a product from a particular seller for a period of time.

a.        Exclusive deals

b.       Requirement contracts

c.        Tying arrangements

d.       Territorial dealership contracts

e.        Selective promotion contracts

A situation in which a manufacturer grants a distributor the sole rights to sell a product in a specific geographic area is called __________.

a.        exclusive dealing

b.       a tying arrangement

c.        a selective promotion contract

d.       an exclusive territorial distributorship

e.        a requirement contract

The agent for John Grisham’s newest novel has sold its rights to a British publisher for sales in the United Kingdom and Ireland, to a U.S. publisher for the United States and Canada, and to an Australian publisher for Australia and New Zealand.  This is an example of ________.

a.        exclusive dealing

b.       an exclusive territorial distributorship

c.        a tying arrangement

d.       a geographic compact

e.        monopolistic competition

A seller’s requirement that the purchaser of one product also buy another item in the line is called __________.

a.        exclusive dealing

b.       a requirement contract

c.        a tying arrangement

d.       an exclusive territorial distributorship

e.        a selective promotion contract

A software manufacturer will only sell its popular line of Harry Potter software games to retailers who will also carry its less successful Star Wars: The Prequel software game.  This is an example of a(n) __________.

a.        exclusive dealing

b.       requirement contract

c.        exclusive territorial distributorship

d.       tying arrangement

e.        selective promotion contract

A paint manufacturer will sell a retail paint outlet its paint only if the retailer also buys the manufacturer’s line of brushes and accessories.  This is an example of __________.

a.        exclusive dealing

b.       a requirement contract

c.        an exclusive territorial distributorship

d.       a selective promotion contract

e.        a tying arrangement

Until federal laws and regulations were clarified to cover such cases, audio electronic component manufacturers required that retailers who wanted to carry their amplifiers also carry their speakers and sell their customers a “system” of same-brand components.  This distribution strategy, called __________, may be illegal.

a.        bait and switch

b.       caveat emptor

c.        a tying arrangement

d.       double dealing

e.        per se

Which of the following is an example of advertising- and promotion-related legislation?

a.        the Robinson-Patman Act

b.       the Consumer Product Safety Act

c.        the Lanham Act

d.       the Federal Trade Commission Act

e.        the Fair Packaging and Labeling Act

The __________ can require a company to spend money on corrective advertising to rectify previous misleading ads.

a.        Food and Drug Administration

b.       U.S.  Department of Justice

c.        Federal Trade Commission

d.       Better Business Bureau

e.        American Marketing Association

Which of the following is an action the FTC can take to stop a company from continuing an unfair trade practice?

a.        corrective advertising

b.       a cease and desist order

c.        a private ruling

d.       a consent degree

e.        a stay

Which of the following is an action the FTC can take to require a company to spend money on advertising to rectify previous misleading ads?

a.        corrective advertising

b.       a cease and desist order

c.        an advertising injunction

d.       a truth in advertising order

e.        comparative advertising

There are many diet aids on the market.  They promise immediate weight loss without exercise or a change in diet.  Each is accompanied by a testimonial from a satisfied user.  If you pay close attention, you will notice that each ad also contains the statement, “Results may vary.”  Most likely, this statement is included to prevent the FTC from requiring the dietary aid distributor from having to

a.        engage in self-regulation.

b.       engage in comparative advertising.

c.        issue an advertising injunction.

d.       guarantee truth-in-advertising.

e.        run corrective advertising.

For 18 months, Warner-Lambert Co. was required to include the following statement in all television advertisements for Listerine: “Listerine will not help prevent colds or sore throats or lessen their severity.”  The FTC imposed this requirement because previous advertising had caused consumers to believe Listerine was effective against colds.  This is an example of the FTC action of

a.        corrective advertising.

b.       deceptive advertising.

c.        unethical advertising.

d.       cease-and-desist advertising.

e.        self-regulation.

It had been the Campbell Soup Co.’s practice to insert clear glass marbles into the bottom of soup containers used in print advertisements to bring the soup ingredients (e.g., noodles or chicken) to the surface, thus misrepresenting the amount of solid ingredients in the soup.  This was an example of

a.        corrective advertising.

b.       bait-and-switch advertising.

c.        deceptive advertising.

d.       cease-and-insist advertising.

e.        self-regulation.

The Deceptive Mail Prevention and Enforcement Act provides specifications for direct mail sweepstakes, such as requiring the statement

a.        “A guaranteed winner in every state.”

b.       “You can’t win if you don’t play.”

c.        “You may never get another chance to win.”

d.       “No purchase necessary to win.”

e.        “There is no better time to play.”

The purpose of the national Do Not Call Registry is to

a.        prevent manufacturers from being deluged with customer complaints during business hours.

b.       separate listed from unlisted phone numbers in telephone books and online information directories.

c.        divert enquiries from manufacturers to their suppliers that are ultimately responsible for product distribution.

d.       remove identification codes from mobile phones and tablet devices that would identify them as customers as well as their locations.

e.        protect consumers from unsolicited telemarketing calls.

Recent legislation, such as the Children’s Online Privacy Protection Act and the Controlling the Assault of Non-solicited Pornography and Marketing (CAN-SPAM) Act, are reforms that are

a.        promotion-related.

b.       price-related.

c.        distribution-related.

d.       self-regulated.

e.        product-related.

An alternative to government control where an industry attempts to police itself is referred to as

a.        consumer protection.

b.       self-regulation.

c.        industry accountability.

d.       voluntary compliance.

e.        government-imposed ethical policing.

Self-regulation refers to

a.        governmental guidelines that suggests what is legal and ethical and what is not.

b.       a self-imposed set of rules set by a specific industry watchdog group that dictates legal and ethical behaviors.

c.        an alternative to government control where an industry attempts to police itself.

d.       voluntary compliance to governmental rules and regulations set for a specific industry.

e.        a set of rules created and enforced by the FTC to which all members of an industry voluntarily agree to comply.

One of the problems associated with self-regulation is

a.        the lack of a written code of ethics by firms in the industry.

b.       the intrusive enforcement by the FTC.

c.        the opportunity corporate for espionage by competitors.

d.       the absence of an industry association with the power to use moral suasion.

e.        noncompliance by members.

The best-known self-regulatory group is the __________, which is a voluntary alliance of companies whose goal is to help maintain fair practices.

a.        U.S. Department of Justice

b.       National Chamber of Commerce

c.        Better Business Bureau

d.       Federal Trade Commission

e.        National Federation of Independent Business

The Better Business Bureau

a.        is the best-known federal agency involved in monitoring self-regulation of competing businesses.

b.       has a great deal of legal power to force a company to comply with its regulations.

c.        is not involved with Internet commerce.

d.       is a voluntary alliance of companies whose goal is to help maintain fair practices.

e.        oversees advertising that runs on television programs.

The Better Business Bureau (BBB) tries to use __________ to get its members to comply with its standards of business conduct.

a.        the FTC

b.       industry trade associations

c.        moral suasion

d.       the courts

e.        competitors

When a firm or business displays the Better Business Bureau (BBB) Accredited Business logo on its store window or website, it assures consumers that

a.        the company’s products comply with current safety standards set by the Consumer Product Safety Commission.

b.       it is a member of a voluntary alliance of companies whose goal is to help maintain fair business practices.

c.        the firm has met the standards for qualification as a green marketing firm.

d.       the firm takes a proactive stance on diversity in the workplace.

e.        the company incorporates sustainable business practices.

One of the primary uses of the BBB Accredited Business logo is to

a.        find the best price for a product or service among member firms.

b.       facilitate local businesses that practice sustainability.

c.        create a social network forum whereby firms and their customers can have an open dialogue.

d.       provide objective consumer protection for Internet users.

e.        create a working relationship among businesses with similar core values.

Before displaying the BBB Online logo on their websites, participating companies must: (1) be members of their local Better Business Bureau; (2) have been in business for at least one year; (3) have agreed to participate in BBB’s advertising self-regulation program; (4) agree to abide by the BBB Code of Business Practices; and (5)

a.        actively recruit other firms in their industry to become BBB members.

b.       guarantee their customers the best quality, price, and service at all times.

c.        use the products and services of fellow BBB members whenever possible.

d.       pay a yearly registration fee based on a sliding scale of the previous year’s profits.

e.        work with the BBB to resolve consumer disputes that arise over goods or services promoted or advertised on their site.

Geek Squad set out to provide timely and effective help with all computing needs regardless of the make, model, or place of purchase.  Employees were called “agents” and wore uniforms with a Geek Squad logo to create a “humble” attitude that was not threatening to customers.  Agents drove a black-and-white

a.        Chrysler Neon.

b.       Ford Focus.

c.        Volkswagen Beetle.

d.       Dodge Caravan.

e.        Toyota Prius.

In 2002, Geek Squad was purchased by leading consumer electronics retailer __________.

a.        Fry’s Electronics.

b.       Best Buy.

c.        Circuit City.

d.       Micro Center.

e.        Ultimate Electronics.

Which of the following statements regarding the Geek Squad is MOST accurate?

a.        Men in need of help from the Geek squad do not want women “Geeks” to help them because it makes them feel inferior.

b.       The Geek Squad has exclusive rights to the home-help segment thanks to their relationship with Best Buy.

c.        The Geek Squad can only assist customers who purchase Dell computers.

d.       The need for the Geek Squad was the result of many environmental factors, not simply a need for technological knowledge.

e.        Although the Geek Squad brought more customers into Best Buy, the rate of product returns has only dropped a negligible amount.

The Family Talk about Drinking guidebook developed by Anheuser-Busch to help parents address the topic of underage drinking is an example of

a.        consumerism.

b.       preemptive marketing.

c.        ethical behavior in marketing.

d.       the social marketing concept.

e.        cause marketing.

Anheuser-Busch acts on what it views as an ethical obligation to its customers and the general public with its

a.        development of a low-carb beer.

b.       annual sponsorship of the Super Bowl.

c.        exclusive use of ingredients from American manufacturers and suppliers.

d.       alcohol awareness and education programs.

e.        commitment to maintaining the lowest prices possible without sacrificing taste.

Anheuser-Busch established its Corporate Social Responsibility (CSR) Department to

a.        promote the positive aspects of moderate beer consumption.

b.       promote responsible drinking and deter underage drinking and alcohol abuse.

c.        encourage recycling of both aluminum cans and glass bottles by ultimate consumers and suppliers.

d.       educate employees about the importance of serving as role models by drinking responsibly themselves.

e.        promote Anheuser-Busch as more socially responsible than its competitors.

By preserving the natural environment, Anheuser-Busch is appealing to environmentalists through its alcohol abuse awareness initiatives; it is attempting to persuade underage children from thinking that drinking beer makes them cool.  Anheuser-Busch is exhibiting which of the following?

a.        stockholder responsibility

b.       profit responsibility

c.        utilitarianism

d.       cause marketing

e.        social responsibility

Anheuser-Busch’s commitment preserving the natural environment caused Fortune magazine to rank it among the top companies for __________.

a.        utilitarianism

b.       social responsibility

c.        moral idealism

d.       green marketing

e.        cause marketing

Anheuser-Busch is trying to meet the needs of a very diverse group: its customers who drink beer, environmentalists, ABRC, shareholders, and underage children who might think “drinking is cool.”  The primary reason for its desire to satisfy these needs is consistent with the idea of social responsibility because

a.        all of these people or groups are its stakeholders.

b.       if Anheuser-Busch is not profitable, too many people will lose their jobs.

c.        the larger Anheuser-Busch’s profits, the more taxes they will be able to pay.

d.       contrary to popular belief, alcohol can be good for you if consumed in moderation.

e.        the more highly thought of by potential consumers, the higher company’s sales would be.

Ethics refers to the

a.        religious tenets of a country or ethnic region that shape its culture.

b.       social norms of a nation, community, or family.

c.        society’s values and standards that are enforceable in the courts.

d.       moral principles and values that govern the actions and decisions of an individual or group.

e.        universal laws of man that go beyond individual or a group’s beliefs of nations or religions.

The moral principles and values that govern the actions and decisions of an individual or group are referred to as

a.        social norms.

b.       cultural values.

c.        ethics.

d.       societal philosophy.

e.        religion.

Laws refer to

a.        a specific set of behaviors a given society considers ethical.

b.       society’s values and standards that are enforceable in the courts.

c.        the agreed upon codes of behavior for a given nation, community, religious group, or family.

d.       written documentation of a prescribed set of attitudes, beliefs, and values.

e.        a code of ethics that defines what may be done in specific business circumstances.

Society’s values and standards that are enforceable in the courts are referred to as

a.        situational ethics.

b.       cultural norms.

c.        industry practices.

d.       laws.

e.        the Consumer Bill of Rights

Which of the following statements accurately distinguishes between laws and ethics?

a.        Laws reflect the beliefs of the majority of society while ethics reflect the beliefs of the minority of society.

b.       Ethics deal with religious and moral beliefs while laws deal with social, economic, and environmental behaviors.

c.        Ethics deal with internal (personal) issues while laws deal with external (social) issues.

d.       There is no significant difference between laws and ethics; these terms can be used interchangeably.

e.        Ethics deal with personal and moral principles whereas laws are society’s values that are enforceable in the courts.

More than 70 percent of the physicians in the Maricopa County (Arizona) Medical Society agreed to establish a maximum fee schedule for health services to curb rising medical costs.  All physicians were required to adhere to this schedule as a condition for membership in the society.  The U.S. Supreme Court ruled that this agreement violated the Sherman Act and represented price fixing.  This example illustrates that the physician’s actions were

a.        ethical but illegal.

b.       ethical and legal.

c.        unethical and illegal.

d.       unethical but legal.

e.        altruistic but naïve.

China is the world’s largest tobacco-producing country and has 300 million smokers.  Approximately 700,000 Chinese die annually from smoking-related illnesses.  This figure is expected to rise to more than 2 million by 2025.  China restricts tobacco imports.  U.S. trade negotiators advocate free trade, thus allowing U.S. tobacco companies to market their products in China.  The U.S. trade negotiators are acting

a.        ethically but illegally.

b.       ethically and legally.

c.        unethically and illegally.

d.       unethically but legally.

e.        in ways that cannot be determined by the information provided.

An owner of a small publishing company allowed a friend who was starting a machine embroidery business to load the publishing company’s copy of Microsoft Word on her friend’s computer.  This activity is

a.        both legal and ethical.

b.       caveat emptor.

c.        illegal but ethical.

d.       illegal and unethical.

e.        sanctioned by the Business Software Alliance since only one copy is to be transferred.

Enron’s Chief Financial Officer Andrew Fastow was indicted and then pleaded guilty on a charges of securities fraud in the Enron case and was accused of enriching himself and his family at the company’s expense.  Fastow, in his tenure with Enron, acted

a.        ethically but illegally.

b.       ethically and legally.

c.        unethically and illegally.

d.       unethically but legally.

e.        in a socially responsible manner.

Many media today use pay-to-vote polls, in which respondents use a 900-telephone number to vote “yes” or “no” on a current issue, as a means of generating viewer or listener interest.  The Research Industry Coalition (RIC) has asked all media to inform viewers or listeners that the validity of such polls is questionable and the results are NOT statistically representative of the population but are just a frequency distribution of those who happen to call.  If a television station chooses not to make viewers aware of the shortcomings of a pay-to-vote poll, its business practice would fall into which of the following categories?

a.        ethical but illegal.

b.       ethical and legal.

c.        unethical and illegal.

d.       unethical but legal

e.        in today’s media age, this practice has become universal; any bias is implied and need not be directly stated under the caveat emptor doctrine.

A recent poll by Environics International, a public-opinion research firm, found that 67 percent of North Americans are willing to boycott products on ethical grounds.  This survey did not ask if the person who was acting on ethical grounds would first see if the boycott was based on facts.  Which of the following statements describes a conclusion that should be drawn from this information?

a.        If you are an ethical person, you should act according to your instincts.

b.       Realistically speaking, in order to stay in business, all businesses must occasionally behave unethically.

c.        All businesses will act unethically unless forced by consumers to act morally.

d.       There is nothing consumers can do to stop unethical business activities.

e.        Boycotting a product without knowing the facts can be viewed as unethical.

Public opinion surveys show that 58 percent of U.S. adults rate the ethical standards of business executives as

a.        outstanding.

b.       above average.

c.        similar to other professions.

d.       typical of businesspeople around the world.

e.        fair or poor.

According to public opinion surveys, __________ are considered to be among the LEAST ethical occupations in the United States.

a.        insurance company professionals

b.       legal professionals

c.        advertising practitioners

d.       members of the U.S. Congress

e.        the news media

All of the following are reasons for the state of perceived ethical business conduct EXCEPT:

a.        a growing tendency for business decisions to be judged publicly by groups with different values and interests.

b.       the increased pressure on business people to make decisions in a society with diverse value systems.

c.        an increase in the public’s expectations of ethical business behavior.

d.       ethical business conduct may have declined.

e.        businesses are behaving more ethically during these difficult economic times.

Factors influencing personal moral philosophy and ethical behavior include __________, business culture and industry practices, and corporate culture and expectations.

a.        religious beliefs and practices

b.       societal culture and norms

c.        national and regional legislation

d.       universal core values

e.        the universal concept of good vs. evil

Which of the following is considered one of the major factors that influences ethical behavior?

a.        organizational structures

b.       societal culture and norms

c.        national and local legislation

d.       the U.S. Supreme Court

e.        a nation’s moral philosophy

Which of the following is considered one of the major factors that influences ethical behavior?

a.        organizational structures

b.       legislation

c.        federal regulatory agencies

d.       a nation’s moral philosophy

e.        business culture and industry practices

Factors influencing personal moral philosophy and ethical behavior include societal culture and norms, business culture and industry practices, and __________.

a.        religious beliefs and practices

b.       corporate culture and expectations

c.        national and regional legislation

d.       universal core values

e.        the universal concept of good vs. evil

Culture refers to

a.        the set of values, ideas, and attitudes that are learned and shared among members of a group.

b.       the music, art, theater, etc. that reflects the values of an entire nation.

c.        the learned behaviors of a specific racial, ethnic, or religious group based on commonly shared ethical principles and protected by laws.

d.       the combination of beliefs and behaviors accepted as correct regardless of a person’s age, sex, race, or religion.

e.        the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization.

In marketing, the set of values, ideas, and attitudes that are learned and shared among members of a group is referred to as __________.

a.        ideals

b.       morals

c.        ethics

d.       culture

e.        diversity

Culture refers to the set of values, ideas, and attitudes that are learned and shared among members of a group.  It also serves as a socializing force that

a.        reflects the will of the largest or most powerful minority.

b.       is determined by the largest generational group at a given point in time.

c.        becomes the basis of all legislation—federal, state, and local—in societies around the world.

d.       expresses the diverse backgrounds of a nation’s subcultures.

e.        dictates what is morally right and just.

Which of the following is a socializing force that dictates what is morally right and just?

a.        federal regulatory agencies like the FTC

b.       federal, state, and local legislation

c.        the U.S. Supreme Court

d.       culture

e.        organizational core values

Culture refers to the set of values, ideas, and attitudes that are learned and shared among members of a group.  Culture also serves as a socializing force that dictates what is morally right and just.  The important thing to remember is that moral standards

a.        are relative to particular societies.

b.       must be universal in order for cross-cultural marketing to be effective.

c.        are fluid and very easy to change.

d.       are cyclical so it is important to change with the times.

e.        are concrete; something is either right or wrong

Copyrights, trademarks, and patents are

a.        public goods.

b.       intellectual property.

c.        rights granted to individuals or organizations by the WTO for a period of five years.

d.       limited to books, music, and software.

e.        subject to ISO 14000 requirements.

The unauthorized use of intellectual property can severely affect the owners of that property.  This practice also

a.        levels the playing ground for developing nations by eliminating years of research time.

b.       accelerates innovation in that industry, as new and improved offerings enter the marketplace.

c.        has a negative impact on the economy through the loss of jobs, royalties, wages, or tax revenue.

d.       has a positive impact on an entire nation’s cultural value system.

e.        ensures that the prices to consumers are minimized as a result of increased competition.

Consider the copying of another’s copyright, trademark, or patent.  These are viewed as intellectual property.  In the U.S., unauthorized use, reproduction, or distribution of intellectual property is illegal.  Yet in China, copying enjoys a long tradition and does not carry a stigma.  For example, copying a masterpiece was historically considered an art form in its own right.  The difference between the two countries shows that __________ affect(s) the view of ethica1 behavior held in each country.

a.        business culture

b.       industry practices

c.        corporate culture

d.       corporate expectations

e.        societal culture and norms

As the use of the Internet grows around the world, there must be as easy an exchange of ideas and information as possible between countries.  One important issue is opt-in versus opt-out.  In general, European websites have opt-in policies while U.S. websites have opt-out policies.  Opt-in means customers must ask to be involved in data collection and marketing while opt-out companies automatically include customers in data collection unless the customer specifically asks not to be included.  Europeans believe it is unethical to invade someone’s privacy. Americans are not nearly as protective of their right to privacy.  What ethical factor is illustrated by this example?

a.        industry practices

b.       social legislation

c.        societal culture and norms

d.       changes it international law

e.        organizational culture and expectations

Making counterfeit copies of Gucci purses, Tommy Hilfiger sportswear, and other international brands is pervasive in China because laws protecting intellectual property are unclear and sporadically enforced.  Even when sanctions are applied, sanctions are minimal, typically consisting of confiscation, a warning, a public apology, and perhaps a fine.  Moreover, copying enjoys a long tradition in China and does not carry a stigma.  A business introducing a product into China needs to know that its __________ may lead to trademark infringements.

a.        religious precepts

b.       antecedent states

c.        moral idealism

d.       societal culture and norms

e.        utilitarianism

In marketing, the effective rules of the game, the boundaries between competitive and unethical behavior, and the codes of conduct in business dealings are referred to as

a.        societal norms.

b.       societal mores.

c.        business cultures.

d.       fair trade practices.

e.        corporate values.

Business culture affects ethical conduct both in the exchange relationship between sellers and buyers and in the

a.        competitive behavior among sellers.

b.       purchase behavior among buyers.

c.        price, service, and product responsibility to the ultimate consumer.

d.       accountability of buyers and sellers to federal and state regulators.

e.        perception of ethical behavior as viewed by employers of business firms, not nonprofit organizations.

Ethical exchanges between sellers and buyers should result in

a.        the seller making a profit at the expense of the buyer.

b.       the buyer getting the product for the best price at the expense of the seller.

c.        both parties to the exchange being better off after a transaction.

d.       the seller offering buyers its products and services at cost, especially during a period of recession.

e.        the buyer forming a strategic alliance with the seller.

The Latin phrase caveat emptor is a legal concept that means

a.        “Cash on delivery.”

b.       “Let the buyer beware.”

c.        “Let’s make a deal.”

d.       “Don’t take any wooden nickels.”

e.        “Such is life.”

The legal concept of “let the buyer beware,” which was pervasive in the American business culture prior to the 1960s, is referred to as __________.

a.        ad nauseum

b.       mea culpa

c.        quid pro quo

d.       cest la vie

e.        caveat emptor

Caveat emptor refers to

a.        The legal concept of “let the buyer beware,” which was pervasive in the American business culture prior to the 1960s.

b.       The marketing concept of “be first or be last,” implying that the first company to the marketplace wins.

c.        The Latin term meaning that “all is fair in love and war,” an attitude that was held by most marketers prior to the 1990s.

d.       The legal concept of “such is life,” which created many illegal as well as legal but unethical business practices during the 1980s.

e.        The Latin phrase meaning “empty promises,” which was a charge placed upon many firms during the period after WWII when products failed to meet their marketing claims.

Investors should understand that when purchasing stock, the principle of __________ is in effect.  It behooves investors to do research on the company, so they will make a wise purchase.

a.        modus operandi

b.       E Pluribus Unum

c.        de facto marketing

d.       cest la vie

e.        caveat emptor

The Securities and Exchange Commission (SEC) works hard to prevent unscrupulous companies from “cooking” their books to paint investors and regulators a better financial picture than they really have.  Yet, in the end, it is up to investors to research the companies in which they want to invest because __________ is the norm when investing in the stock market.

a.        modus operandi

b.       caveat emptor

c.        de facto marketing

d.       cest la vie

e.        anguis in herba

A law that codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard, is referred to as the

a.        Lanham Act

b.       Fair Practices Act

c.        Caveat Emptor Decree

d.       Consumer Bill of Rights

e.        Customer Consent Decree

The Consumer Bill of Rights refers to a law that

a.        codified the ethics of exchange between manufacturers, distributors, and suppliers, including the right to be paid.

b.       codified the ethics of exchange between manufacturers, distributors, and suppliers, including the rights to safe working conditions, fair pay, and collaborative decision making.

c.        codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard.

d.       guaranteed consumers the right to be compensated through replacement, repair, or reimbursement for products that fail to perform as promised by the manufacturer.

e.        guaranteed consumers the rights that are enumerated in the First Amendment to the U.S. Constitution.

The Consumer Bill of Rights codified the ethics of exchange between buyers and sellers.  It was outlined by __________ in __________.

a.        President John Kennedy; 1962.

b.       President Ronald Reagan; 1983.

c.        President William H. Clinton; 1996.

d.       President George W. Bush; 2003.

e.        President Barack Obama; 2009.

In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers.  These were the right: (1) __________; (2) to be informed; (3) to choose; and (4) to be heard.

a.        to privacy

b.       to be compensated for product defects

c.        to be treated with respect

d.       be treated without prejudice

e.        to safety

In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers.  These were the right: (1) to safety; (2) __________; (3) to choose; and (4) to be heard.

a.        to privacy

b.       to be informed

c.        to be treated with respect

d.       to be treated without prejudice

e.        to receive fair prices for both products and services

In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers.  These were the right: (1) to safety; (2) to be informed; (3) __________; and (4) to be heard.

a.        to have legal representation in a court of law

b.       to exchange or return products within a reasonable period of time

c.        to choose

d.       to demand “rain checks” if advertised goods are out of stock

e.        to be compensated for product defects

In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers.  These were the right: (1) to safety; (2) to be informed; (3) to choose; and (4) __________.

a.        to have legal representation in a court of law

b.       to exchange or return products and services within a reasonable period of time

c.        to receive fair prices for both products and services

d.       to be compensated for product defects

e.        to be heard

Companies need to be vigilant in product quality testing not simply from an ethical perspective but from a financial one as well.  Personal claims and property damage from consumer product safety incidents cost companies more than __________ annually.

a.        $100 million

b.       $900 million

c.        $300 billion

d.       $500 billion

e.        $700 billion

The FTC is concerned about the amount of personal information that is collected through websites because the consumer is not made aware of how this information is being used.  Over 92 percent of websites collect personal information, yet only about __________ make their customers aware of how that information is being used.

a.        one-quarter

b.       one-third

c.        one-half

d.       two-thirds

e.        three-quarters

A current practice whereby retailers may demand cash or free goods in exchange for shelf space to stock new products is referred to as

a.        slotting allowances.

b.       kickbacks.

c.        economic espionage.

d.       tying arrangements.

e.        industrial bribes.

The Children's Online Privacy Protection Act (1998) is a law designed to protect consumers’ right to

a.        choose.

b.       be informed.

c.        be treated courteously.

d.       safety.

e.        be heard.

The right to be heard means that

a.        the U.S. Department of Commerce has the right to hear consumer complaints.

b.       the American Marketing Association has the right to discipline marketers based on customer complaints.

c.        consumers should have access to public policy makers regarding complaints about products and services.

d.       companies should have access to public policy makers regarding complaints about fraudulent consumer practices.

e.        consumers should have access to public policy makers regarding new product ideas.

Mattel’s Cabbage Patch Snacktime Kids doll was designed to eat plastic toys that were drawn into the doll’s motorized mouth.  However, despite extensive testing, the doll was found to “eat” the child’s hair and was subsequently recalled and discontinued.  Mattel discontinued the item because of consumers’ right to

a.        choose.

b.       be informed.

c.        be treated courteously.

d.       safety.

e.        happiness.

Recently, a project team for Cosco, the world’s largest children’s products company, developed a high chair that could be used as an infant feeding seat, a youth chair, a play chair, a booster chair, and when reclined, an infant bed.  Its design could be made and sold for $49.  The marketing manager, in consultation with other middle managers, decided to have the prototypes checked out by Cosco employees who had small children.  This was the only product testing performed on the product.  Before Cosco pulled the unsafe chair from the market, several children were injured and some died as a result of using the chair.  Cosco was charged with being unconcerned about consumers’ right to

a.        choose.

b.       be informed.

c.        be treated courteously.

d.       safety.

e.        happiness.

Inc. learned that the lithium-ion batteries in its notebook computers posed a fire hazard to consumers.  The company recalled 2.7 million batteries and gave consumers a replacement before any personal injuries resulted.  Dell was most likely concerned with consumers’ right to

a.        choose.

b.       be informed.

c.        safety.

d.       be heard.

e.        happiness.

Recently, certain toys that were manufactured in China were found to have unsafe levels of lead in the paint and were recalled.  This action protected consumers’ right to

a.        safety.

b.       be informed.

c.        be heard.

d.       choose.

e.        be treated courteously.

When shopping on the Internet, most consumers assume the personal information they give out is confidential.  Subscribers to America Online (AOL) were upset when AOL proposed giving member information to partners without telling them.  This is related most directly to consumers’ right to

a.        be heard.

b.       be treated courteously.

c.        safety.

d.       happiness.

e.        be informed.

When Toysmart.com filed for bankruptcy in June 2000, it listed its customer database as one of its assets even though it had assured its customers it would never disclose their information to any third party.  People who had purchased products from Toysmart and were a part of its database were upset when they learned their private information was being treated as property that was for sale.  These customers believed that according to the Consumer Bill of Rights, they should know how their private information would be used.  In other words, Toysmart’s former customers had a right to

a.        choose.

b.       be informed.

c.        be heard.

d.       safety.

e.        happiness.

The FTC established the Do Not Call Registry in 2003 for consumers who do not want to receive unsolicited telemarketing calls.  Today, a telemarketer can be fined up to __________ for each call made to a telephone number posted on the registry.

a.        $500

b.       $750

c.        $1,250

d.       $8,750

e.        $16,000

Business culture affects ethical behavior in competition.  Two kinds of unethical behavior are most common:

a.        economic espionage and bribery.

b.       price fixing and copyright infringement.

c.        bribery and extortion.

d.       price fixing and economic espionage.

e.        economic espionage and antitrust infractions.

Economic espionage refers to

a.        the destruction of a competitor’s products or services through physical damage of property or damage to their reputation.

b.       persuading someone to act in one’s favor, typically illegally or dishonestly, by a gift of money or other inducement.

c.        an illicit payment made to someone who has facilitated a transaction or appointment.

d.       the clandestine collection of trade secrets from foreign countries.

e.        the clandestine collection of trade secrets or proprietary information about a company’s competitors.

The clandestine collection of trade secrets or proprietary information about a company’s competitors is referred to as __________.

a.        economic espionage

b.       industrial espionage

c.        marketplace espionage

d.       industrial surveillance

e.        patent infringement

All of the following are examples of economic espionage EXCEPT:

a.        wiretapping

b.       misrepresentation

c.        bribery

d.       “dumpster diving” or searching a competitor’s trash.

e.        employment contract violations

Economic espionage includes such activities as _________.

a.        two firms hiring the same musician to write their company jingle

b.       hiring people who ever worked in an executive capacity at a competitor’s firm, especially if they didn’t have a noncompete clause

c.        offering to accept all competitors’ coupons, making their effectiveness as a promotional tool negligible

d.       searching through a competitor’s trash

e.        marrying someone who works for a competitor in an executive position

Economic espionage is most likely to occur in which type of industries?

a.        fashion design and textiles

b.       entertainment

c.        high-tech electronics and aerospace

d.       intellectual property (print)

e.        beverage industry (alcoholic and nonalcoholic)

Michael Smolensky is CEO of Lifeway Foods, Inc., based in Skokie, IL.  The company sells kefir, a cultured milk product popular in Smolensky’s native Russia.  Recently, Smolensky, who had developed his own secret recipe, got a call from his supplier, saying, “Michael, someone is trying to steal your secrets.”  Smolensky discovered later that a prospective rival had called to ask the supplier for certain ingredients by their secret codes, known only to Smolensky and the supplier.  The rival had picked them out of Lifeway’s refuse.  This is an example of

a.        corporate shadowing.

b.       economic espionage.

c.        clandestine trade secrets.

d.       industrial sleuthing.

e.        competitive surveillance.

Jay Bloom’s Pet Assure, a national pet health-care provider network based in Dover, N.J., recently took advantage of a rival’s naïveté.  When a West Coast provider of catastrophic pet coverage “preannounced” the addition of a wellness component (Pet Assure’s specialty) in an interview with a tiny community newsweekly six months prior to launching it, Bloom was notified immediately through a web-based news monitoring service.  This not only gave him time to add catastrophic benefits to one of his own wellness products, but also enabled him to get his offering to the market first.  Jay Bloom relied on __________ to keep him abreast of his competitors’ activities.

a.        legal environmental scanning

b.       economic espionage

c.        the use of kickbacks

d.       corporate piracy

e.        primary market research

 

 

Coke-Pepsi Photo

Consider the Coke-Pepsi photo above.  Suppose you are a senior executive at Pepsi-Cola and a Coca-Cola employee offers to sell you the marketing plan and sample for a new Coke product at a modest price.  When asked this question in an online survey, __________ percent of marketing and advertising executives said they would buy the plan and product sample if there were no repercussions.

a.        15

b.       36

c.        52

d.       67

e.        89

Consider the Coke-Pepsi photo above.  An employee of Coca-Cola attempted to share its marketing plan with an employee of Pepsi for a modest price.  What should the Pepsi employee do?

a.        Buy the marketing plan if assured there would be no legal or ethical repercussions.

b.       Ignore the offer to buy the marketing plan and hope the ethical dilemma would go away.

c.        Immediately contact Coca-Cola to advise them of the plot to sell the marketing plan.

d.       Immediately report the offer to the Better Business Bureau.

e.        Advise the Coca-Cola employee that it would be ethical to buy the plan if it was offered for free.

Consider the Coke-Pepsi photo above.  Thirty three percent of Pepsi’s marketing and advertising executives say they would decline an offer to buy one of Coke’s marketing plans and samples.  Most said that they

a.        thought they might go to work for Coke one day and didn’t want to spoil their employment chances.

b.       would prefer competing ethically so they could sleep at night.

c.        were afraid the media would find out.

d.       knew they would get fired.

e.        didn’t want to disappoint their children.

Consider the Coke-Pepsi photo above.  What was the consequence to the Coca-Cola employee who tried to sell classified information to Pepsi?

a.        The employee was fired and no other legal action was taken since the practice is unfortunately too commonplace.

b.       The employee was given the choice of quitting or being demoted to a minimum wage job.

c.        The employee was arrested for bribery and sentenced to five years house arrest.

d.       The employee was sentenced to eight years in prison and ordered to pay $40,000 in restitution.

e.        The employee was permitted to keep her original job (minus any bonuses), but had to undergo personal psychiatric counseling and attend a seminar on ethical behavior.

Why did 33 percent of Pepsi’s marketing and advertising executives say they would decline an offer to buy one of Coke’s marketing plans and samples?

a.                                                They would prefer competing ethically so they could sleep at night.

b.                                                They thought they might go to work for Coke one day and didn’t want to spoil their employment chances.

c.                                                 They were afraid the media would find out.

d.                                                They knew they would get fired.

e.                                                They didn’t want to disappoint their children.

Bribery is most likely to occur when

a.        industries experience little competition.

b.       the country has reached a high level of economic development.

c.        industries are high-tech in nature.

d.       industries operate in an oligarchic competitive environment.

e.        industries experience intense competition.

Transparency International is an organization that

a.        monitors how developed nations deal with developing nations.

b.       establishes procedures for ethical international business based on the ISO 7000 Code of Conduct.

c.        monitors and ranks nations worldwide according to their perceived use of bribery.

d.       creates an acceptable international code of ethics.

e.        makes sure federal, state, and local governments in the United States abide by the Consumer Bill of Rights.

Two laws specifically intended to curb economic espionage and bribery in international marketing are

a.        Economic Espionage Act and Foreign Corrupt Practices Act.

b.       Transparency International Act and Dumpster Diving Act.

c.        Global Rights Protection Act and Foreign Corrupt Practices Act.

d.       Consumer Bill of Rights Act and Economic Espionage Act.

e.        Fair Trade Practices Act and Bribery Protection Act.

Corporate culture refers to

a.        a formalized method for controlling the marketing environment.

b.       the set of accepted standards and practices within a given industry.

c.        the fundamental, passionate, and enduring principles of an organization that guide its conduct over time.

d.       a set of values, ideas, and attitudes that is learned and shared among the members of an organization.

e.        the formal statement of ethical principles and rules of conduct adopted by an organization.

The set of values, ideas, and attitudes that is learned and shared among the members of an organization is referred to as __________.

a.        a mission statement

b.       core values

c.        the socialization process

d.       a code of ethics and conduct

e.        corporate culture

Corporate culture manifests itself in many different ways: the ethical behavior of top management, expectations for ethical behavior present in formal codes of ethics, and

a.        contracts and agreements between members of the same industry.

b.       state and local laws regarding ethical business behavior.

c.        the dress codes, manner of work, and sayings of its employees.

d.       the socially responsible behaviors of its customers.

e.        the involvement of shareholders with an organization’s day-to-day marketing decisions.

Lava.com is an Internet company that helps other organizations implement marketing strategies that they hope will let them dominate their industry.  Lava’s advertising, states, “We ignore the rules, and we let no obstacle stand in your company’s way—no matter how bold or impossible your idea may seem.”  The company is composed of eighteen bright young Internet experts.  They work in one large room, which also contains dartboards, a pool table, and a meditation center.  If you were to walk into the office, it would be next to impossible to tell the company owners from its lowest ranking employee.  This best describes the Internet company’s

a.        modus operandi.

b.       mission or vision.

c.        socialization process.

d.       business definition.

e.        corporate culture.

A code of ethics is a formal statement of ethical principles and

a.        legal restrictions.

b.       rules of conduct.

c.        cultural values

d.       core values.

e.        moral laws.

A code of ethics is a formal statement of rules of conduct and

a.        legal restrictions.

b.       moral laws.

c.        ethical principles.

d.       core values.

e.        cultural values.

A formal statement of ethical principles and rules of conduct is referred to as a(n)

a.        ethical mission.

b.       moral code.

c.        core value pronouncement.

d.       code of conduct.

e.        code of ethics.

A code of ethics refers to

a.                                                a formal statement of moral and ethical business attitudes.

b.                                                a formal statement of ethical principles and rules of conduct.

c.                                                 an informal guide of ethical principles and moral conduct.

d.                                                the written document stating the beliefs and values of each employee in a firm.

e.                                                a firm’s itemized list of business activities that are and are not consistent with the company’s mission statement.

All of the following are addressed by an organization’s code of ethics EXCEPT:

a.                                                the dress, sayings, and work manner of employees.

b.                                                contributions to political parties and government officials.

c.                                                 customer and supplier relationships.

d.                                                accurate recordkeeping.

e.                                                conflicts of interest.

 

Which of the following statements describes one of the major reasons codes of ethics are violated?

a.                                                Most companies do not have a formal code of ethics.

b.                                                Most companies overlook infractions if the action is unethical but legal.

c.                                                 Many codes of ethics lack specificity.

d.                                                There is often a discrepancy between the written code of ethics of a firm and the personal and moral beliefs of individual employees.

e.                                                There are very few violations in firms with written codes of ethics.

Which of the following is a major reason for the violation of ethics codes?

a.                                                government regulation

b.                                                family influence

c.                                                 lack of religious beliefs

d.                                                fear of disciplinary action

e.                                                lack of specificity

HomeWorRx Referral Network profiles home service companies for homeowners looking for a contractor or handyman.  To ensure that companies they recommend are reliable, HomeWorRx checks the business licenses, insurance coverages, Better Business Bureau records, and three trade references.  The recommended home service company also has to agree to a(n) __________, which includes maintaining professionalism and guaranteeing the quality of its work.

a.                                                statement of cultural values

b.                                                statement of values and beliefs

c.                                                 industry endorsement

d.                                                code of ethics

e.                                                contract due diligence

In 2001, six executives of Tyson Foods, one of the world’s largest poultry, beef, and pork processors, were arrested for the illegal smuggling of undocumented foreign workers into the U.S. to work at Tyson plants.  Based on this information, one could conclude that Tyson’s violations are the result of __________, one of the major reasons why some company employees engage in ethical behavior.

a.                                                a mission statement that is too broad

b.                                                the absence of a written core values statement

c.                                                 the absence of whistle-blowers

d.                                                top management’s behavior

e.                                                the absence of a stakeholder code of ethics

The American Marketing Association Statement of Ethics is centered on three general norms: marketers must: (1) do no harm; (2) foster trust in the marketing system; and (3) __________.

a.                                                initiate fair and honest dialogues in developing markets

b.                                                embrace, communicate, and practice the fundamental ethical values that will improve consumer confidence in the integrity of the marketing exchange system

c.                                                 champion new legislation that protects ethical business firms and punish those who abuse consumer trust

d.                                                support governmental agencies in their quest to identify and prosecute those who break the laws of ethical marketing

e.                                                contribute to society’s well-being through charitable contributions and cause-related marketing efforts

The American Marketing Association Statement of Ethics identifies six key aspirational ethical values.  These include: _________, responsibility, fairness, respect, openness, and citizenship.

a.                                                diversity

b.                                                integrity

c.                                                 honesty

d.                                                perseverance

e.                                                charity

A health club wishes to follow the American Marketing Association Statement of Ethics and decides to offer a modified workout class at a very low price for senior citizens who otherwise might not be able to afford their services.  This action exhibits which key AMA ethical value?

a.                                                honesty

b.                                                fairness

c.                                                 respect

d.                                                openness

e.                                                responsibility

Even though his business is very small, the owner of a LAN center wants to follow the American Marketing Association Statement of Ethics.  Every month there is a “company cookout.”  At the end of the meal, the employee (from president to members of the cleaning staff) who had the best idea for improving the center is honored and given a $25.00 gift certificate plus a T-shirt that reads, “Great Minds Think Like Me.”  This action exhibits which key AMA ethical value?

a.                                                honesty

b.                                                responsibility

c.                                                 fairness

d.                                                respect

e.                                                openness

A recent study of business executives reported that __________ had been implicitly or explicitly rewarded for engaging in ethically troubling behavior.

a.                                                7%

b.                                                12%

c.                                                 25%

d.                                                40%

e.                                                62%

Employees who report unethical or illegal actions of their employers are referred to as

a.                                                whistle-blowers.

b.                                                scabs.

c.                                                 cronies.

d.                                                corporate snitches.

e.                                                ombudsman.

Whistle-blowers refer to

a.                                                employees who are simultaneously employed by competing firms and who trade company secrets.

b.                                                employees who blackmail or extort money from their employers.

c.                                                 employees who are coerced by their employers to participate in illegal or unethical activities.

d.                                                customers who report unethical or illegal actions of the firms that market the offerings they bought.

e.                                                employees who report unethical or illegal actions of their employers.

An employee who reports illegal accounting procedures is an example of a(n)

a.                                                crony.

b.                                                scab.

c.                                                 whistle-blower.

d.                                                corporate snitch.

e.                                                ombudsman.

Which of the following statements best describes a whistle-blower?

a.                                                An employee is unhappy because his company is downsizing.

b.                                                An employee tells the Consumer Product Safety Commission his company falsified safety reports on a child’s car seat.

c.                                                 A salesperson for a hardware wholesaler tries to sell insurance to his regular customers in order to earn some extra income.

d.                                                An employee loses his/her retirement fund due to a downturn in the stock market.

e.                                                An employee spends the afternoon studying at work for her test rather than counting inventory as she was supposed to be doing.

Which of the following statements best describes the activities of a whistle-blower?

a.                                                Mattel employees were sorry that 150 of the 10 million Power Wheels cars and trucks the company sold had caught on fire.

b.                                                Mattel research engineers proved that the spate of fires in the company’s Power Wheels cars and trucks was the result of consumers’ tinkering with the engine.

c.                                                 A former Mattel employee owned one of the Mattel Power Wheel cars that caught on fire and slightly burned its rider.

d.                                                The Consumer Product Safety Commission investigated the fires and ordered a recall to repair all of the 10 million units that had been sold.

e.                                                A Mattel employee reported to the Consumer Product Safety Commission that Mattel knowingly manufactured an electrical system for Power Wheels that would catch on fire after long use.

Two former sales representatives of Amgen, a biotech company, alleged the company strongly encouraged its sales force to search confidential medical records in physician’s offices in an attempt to find names of patients that would benefit from the use of Amgen’s drug Enbrel, a treatment for psoriasis.  After reporting this practice, these two people sued Amgen, claiming they did not go along with the scheme because they objected to it as being unethical.  Soon after, one of the reps was fired and the other resigned after receiving a poor performance review.  These two people are

a.                                                scabs.

b.                                                cronies.

c.                                                 whistle-blowers.

d.                                                contrarians.

e.                                                ombudsmen.

Ultimately, ethical choices are based on

a.                                                the personal moral philosophy of the decision maker.

b.                                                societal culture and norms.

c.                                                 business culture and industry practices.

d.                                                laws enacted by Congress and regulations by federal and state governments.

e.                                                chance and opportunity.

All of the following statements about a person’s moral philosophy are true EXCEPT:

a.                                                Moral philosophy cannot be learned through formal education.

b.                                                Moral philosophy is learned through the process of socialization with family.

c.                                                 Moral philosophy is influenced by the corporate culture he/she is in.

d.                                                Moral philosophy is learned through the process of socialization with friends.

e.                                                Moral philosophy is influenced by the societal culture he/she is in.

Two prominent personal moral philosophies that have direct bearing on marketing practice are

a.                                                existentialism and pragmatism.

b.                                                pragmatism and idealism.

c.                                                 moral idealism and utilitarianism.

d.                                                social responsibility and personal ethics.

e.                                                moral behaviorism and secular ethics.

A personal moral philosophy that considers individual rights or duties as universal, regardless of the outcome, is referred to as __________.

a.                                                social responsibility

b.                                                moral idealism

c.                                                 utilitarianism

d.                                                hedonism

e.                                                religion

Moral idealism refers to a personal moral philosophy that

a.                                                believes that goodwill always triumph over evil.

b.                                                follows the “Golden Rule,” which is “One should treat others as one would like others to treat oneself.”

c.                                                 all human beings are basically good.

d.                                                considers individual rights or duties as universal, regardless of the outcome.

e.                                                believes in “the greatest good for the greatest number.”

Moral idealism refers to

a.                                                a personal moral philosophy that focuses on the greatest good for the greatest number by assessing the costs and benefits of the consequences of ethical behavior.

b.                                                a democratic consensus of moral principles and laws that govern the behavior of individuals based on legislation adopted at the federal, state, and local levels.

c.                                                 a societal moral philosophy based on the Golden Rule of the Judeo-Christian ethic embodied in the U.S. Constitution’s Bill of Rights.

d.                                                a formal statement of ethical principles and rules of conduct.

e.                                                a personal moral philosophy that considers individual rights or duties as universal, regardless of the outcome.

A moral philosophy that exists in the Consumer Bill of Rights and is favored by moral philosophers and consumer interest groups is referred to as __________.

a.                                                social responsibility

b.                                                moral idealism

c.                                                 utilitarianism

d.                                                hedonism

e.                                                the Golden Rule

Why did 3M stop production of Scotchgard fabric protector?

a.                                                New advances in fabric manufacturing, such as dirt repellant fibers, made the need for the product obsolete.

b.                                                The product accidentally violated patent rights of a competitor.

c.                                                 Traces of the potentially harmful chemical were found in humans, so the product was voluntarily halted.

d.                                                New governmental legislation banned the production of one of the product’s component chemicals.

e.                                                3M developed a new product that didn’t contain this chemical and which cost less to produce, resulting in a significantly higher profit margin.

The 3M company stopped production of a chemical it had made for over 40 years when tests showed the chemical could be harmful in large doses, even though the products in which it was used had no known harmful health or environmental effect.  This is an example of

a.                                                individualism.

b.                                                utilitarianism.

c.                                                 existentialism.

d.                                                moral idealism.

e.                                                socialism.

 

 

 

3M Scotchgard Photo

Consider the 3M Scotchgard photo above.  The personal moral philosophy 3M used when it voluntarily stopped the production of its popular 3M Scotchgard was because of a minute chemical used in its manufacture was found in the tissues of both animals and humans was an example of ___________.

a.                                                moral idealism

b.                                                utilitarianism

c.                                                 green marketing

d.                                                stringent laws

e.                                                cause marketing

Western Digital, the Irvine, California-based maker of disk drives, recalled about 400,000 of its hard drives because of a faulty internal chip.  The chip will not affect the disk drive motor until after six to twelve months of use.  This delay in the problem’s appearance means that many consumers would not think to blame the disk drive manufacturer.  But, instead of taking the less expensive route of remaining quiet about the problem, Western Digital chose to offer replacement disk drives for all the disk drives that had the faulty chip.  This action is an example of ________.

a.                                                hedonism

b.                                                utilitarianism

c.                                                 moral idealism

d.                                                existentialism

e.                                                socialism

The owners of Ben & Jerry’s Homemade, Inc. adhere to the belief that the company should not harm the environment in any way but actually improve it.  This is an example of _________.

a.                                                altruism.

b.                                                utilitarianism.

c.                                                 existentialism.

d.                                                moral idealism.

e.                                                socialism.

A personal moral philosophy that focuses on “the greatest good for the greatest number” by assessing the costs and benefits of the consequences of ethical behavior is referred to as __________.

a.                                                utilitarianism

b.                                                hedonism

c.                                                 existentialism

d.                                                moral idealism

e.                                                socialism

According to the personal moral philosophy of __________, if the benefits exceed the costs, the behavior is ethical.

a.                                                hedonism

b.                                                utilitarianism

c.                                                 existentialism

d.                                                moral idealism

e.                                                socialism

The personal moral philosophy of utilitarianism underlies the economic tenets of

a.                                                existentialism.

b.                                                moral idealism.

c.                                                 communism.

d.                                                socialism.

e.                                                capitalism.

Recently, a project team for Cosco, the world’s largest children’s products company, developed a high chair that could be used as an infant feeding seat, a youth chair, a play chair, a booster chair, and when reclined, an infant bed.  Its design could be made and sold for $49.  Cosco rushed the chair into production to beat its competition before it was properly safety-tested.  When some children were injured as a result of this chair, Cosco denied culpability.  The firm said that only a few consumers had had any trouble with the chair—and probably didn’t assemble them correctly.  Most consumers, however, were very satisfied with the chair and had no problems with it. Cosco’s actions exemplify which of the following philosophies?

a.                                                existentialism

b.                                                moral idealism

c.                                                 communism

d.                                                socialism

e.                                                utilitarianism

The idea that organizations are part of a larger society and are accountable to that society for their actions is referred to as

a.                                                stakeholder responsibility.

b.                                                social responsibility.

c.                                                 profit responsibility.

d.                                                utilitarianism.

e.                                                moral idealism.

Social responsibility refers to

a.                                                a personal moral philosophy that focuses on the greatest good for the greatest number by assessing the costs and benefits of the consequences of ethical behavior.

b.                                                a democratic consensus of moral principles and laws that govern the behavior of individuals based on legislation adopted at the federal, state, and local levels.

c.                                                 a societal moral philosophy based on the Golden Rule of the Judeo-Christian ethic found in the U.S. Constitution’s Bill of Rights.

d.                                                the view that organizations are part of a larger society and are accountable to that society for their actions.

e.                                                a personal moral philosophy that considers individual rights or duties as universal, regardless of the outcome.

Profit responsibility, societal responsibility, and stakeholder responsibility are three concepts of

a.                                                cause marketing.

b.                                                moral idealism.

c.                                                 social responsibility.

d.                                                utilitarianism.

e.                                                green marketing.

Which of the following statements about social responsibility is most accurate?

a.                                                The three concepts of social responsibility are economic responsibility, internal social responsibility, and external social responsibility.

b.                                                Organizations are part of a larger society and are accountable to that society for their actions.

c.                                                 Societal responsibility focuses on the obligations an organization has to its customers, employees, suppliers, and distributors.

d.                                                The duty of an organization is most easily understood at the societal responsibility level.

e.                                                Social responsibility cannot be taught; it is an innate outgrowth of a person’s moral and ethical belief system.

In 2007, Gap Inc. ended its relationship with 23 foreign production facilities due to code violations.  Several closings occurred because of the use of child labor.  In response to these events, the Gap created a large team whose purpose is to travel worldwide to ensure compliance with its Code of Vendor Conduct.  This is an example of

a.                                                cause marketing.

b.                                                profit responsibility.

c.                                                 utilitarianism.

d.                                                moral idealism.

e.                                                social responsibility.

The residents of Alaska and people throughout the world were outraged when the Exxon Valdez crashed into a shoal and dumped millions of gallons of crude oil into the pristine waters of Prince William Sound.  People were upset with Exxon’s response to the disaster.  The company was slow to admit its mistake and even slower to implement cleanup activities.  Exxon was criticized for acting in a manner that would benefit the organization but not society.  In short, Exxon did not demonstrate

a.                                                social responsibility.

b.                                                value consciousness.

c.                                                 green marketing.

d.                                                profit responsibility.

e.                                                cause marketing.

at least initially, with only the organization’s interests in mind.

 

 

 

Figure 4-4

There are three concepts of social responsibility, each relating to particular constituencies.  According to Figure 4-4 above, “A” represents __________ responsibility.

a.                                                societal

b.                                                stakeholder

c.                                                 profit

d.                                                customer

e.                                                seller

There are three concepts of social responsibility, each relating to particular constituencies.  According to Figure 4-4 above, “B” represents __________ responsibility.

a.                                                societal

b.                                                stakeholder

c.                                                 profit

d.                                                customer

e.                                                seller

There are three concepts of social responsibility, each relating to particular constituencies.  According to Figure 4-4 above, “C” represents __________ responsibility.

a.                                                societal

b.                                                stakeholder

c.                                                 profit

d.                                                customer

e.                                                seller

Profit responsibility refers to

a.                                                the obligation of a firm to price its products or services at a level whereby the consumer is treated fairly and the firm is still able to make a profit.

b.                                                the view that an organization has an obligation to those who can affect the achievement of its objectives.

c.                                                 the concept that no expansion or additional research and development will occur until a company is making a profit.

d.                                                the idea that organizations are part of a larger society and are accountable to that society for their actions.

e.                                                the duty of a firm to maximize profits for its owners or stockholders.

The duty of a firm to maximize profits for its owners or stockholders is referred to as _________.

a.                                                social responsibility

b.                                                value consciousness

c.                                                 benefit marketing

d.                                                profit responsibility

e.                                                stakeholder responsibility

The groups primarily served by a firm exhibiting profit responsibility include

a.                                                the general public, public interest groups, and the environment.

b.                                                consumers, employees, and supplier/distributors.

c.                                                 owners and stockholders.

d.                                                the general public, owners, and stockholders.

e.                                                government, owners, and stockholders.

Burroughs Wellcome is the developer and maker of AZT, which is a drug to treat persons afflicted with AIDS.  The firm charges each patient $6,500 annually—more than many AIDS patients can afford.  This is an example of the manufacturer adhering to its

a.                                                utopian responsibility.

b.                                                moral idealism.

c.                                                 social responsibility.

d.                                                cause marketing strategy.

e.                                                profit responsibility.

Stakeholder responsibility refers to

a.                                                the view that an organization has an obligation to those who can affect the achievement of its objectives.

b.                                                the obligation of a firm to price its products or services at a level whereby the consumer is treated fairly and the firm is still able to make a profit.

c.                                                 the duty of a firm to maximize profits for its owners or stockholders.

d.                                                the concept that no expansion or additional research and development will occur until a company is making a profit.

e.                                                the idea that organizations are part of a larger society and are accountable to that society for their actions.

The view that an organization has an obligation to those who can affect the achievement of its objectives is referred to as _________.

a.                                                social responsibility

b.                                                value consciousness

c.                                                 benefit marketing

d.                                                stakeholder responsibility

e.                                                profit responsibility

The groups primarily served by a firm exhibiting stakeholder responsibility include

a.                                                the general public, public interest groups, and the environment.

b.                                                consumers, employees, and supplier/distributors.

c.                                                 owners and stockholders.

d.                                                the general public, owners, and stockholders.

e.                                                government, owners, and stockholders.

Source Perrier S.A., the supplier of Perrier bottled water, exercised __________ when it recalled 160 million bottles of water in 120 countries after traces of a toxic chemical was found in 13 bottles.  The recall cost the company $35 million, and the profit from $40 million in lost sales.  Even though the chemical was not harmful to humans, the president of the company believed it was his duty to remove “the least doubt, as minimal as it might be, to weigh on the image of the quality and purity of our product.”

a.                                                moral idealism

b.                                                utilitarianism

c.                                                 cause marketing

d.                                                profit responsibility

e.                                                stakeholder responsibility

Toyota Motor Corporation executives were widely criticized for their failure in practicing __________ when selected Toyota brands had been linked to sticky gas pedals, which can lead to sudden acceleration problems.  The company recalled over 9 million cars worldwide under pressure from the National Highway Traffic Safety Administration and thousands of consumer complaints.  After the recall, Toyota sales fell, which affected Toyota employees, suppliers, shareholders, and distributors.

a.                                                moral idealism

b.                                                stakeholder responsibility

c.                                                 utilitarianism

d.                                                cause marketing

e.                                                profit responsibility

Societal responsibility refers to

a.                                                the obligation that organizations have to (1) the preservation of ecological environment and (2) the general public.

b.                                                the obligation of a firm to price its products or services at a level whereby the consumer is treated fairly and the firm is still able to make a profit.

c.                                                 the view that an organization has an obligation to those who can affect the achievement of its objectives.

d.                                                the duty of a firm to maximize profits for its owners or stockholders.

e.                                                the idea that organizations are part of a larger society and are accountable to that society for their actions.

The obligation organizations have to (1) the preservation of ecological environment and (2) the general public is referred to as _________.

a.                                                social responsibility

b.                                                stakeholder responsibility

c.                                                 benefit marketing

d.                                                societal responsibility

e.                                                profit responsibility

Most paint is neither biodegradable nor friendly to the environment because it is made with petroleum solvents.  A builder who decided to build a subdivision with 500 homes and paint each with an environmentally friendly, soy-based paint (even though it costs more) would be practicing

a.                                                profit responsibility.

b.                                                cause marketing.

c.                                                 stakeholder responsibility.

d.                                                mass marketing.

e.                                                societal responsibility.

The maker of Wrigley chewing gum funded a $10 million ad campaign aimed at getting African Americans to use doctors for regular health care maintenance instead of only when they are sick.  This is an example of

a.                                                profit responsibility.

b.                                                cause marketing.

c.                                                 stakeholder responsibility.

d.                                                societal responsibility.

e.                                                mass marketing.

The recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth is referred to as

a.                                                social responsibility.

b.                                                the triple-bottom line.

c.                                                 the marketing concept.

d.                                                sustainability.

e.                                                social entrepreneurship.

Triple-bottom line refers to

a.                                                the recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.

b.                                                the obligations an organization has to those who can affect achievement of its sales, profit, and market share objectives simultaneously.

c.                                                 the recognition of the need for organizations to be responsible simultaneously to shareholders, employees, and customers.

d.                                                the obligations an organization has to practice profit, stakeholder, and societal responsibility simultaneously.

e.                                                three different financial statements prepared in three different formats: one for governmental regulators, one for shareholders, and one for internal use.

All of the following are the result of an interest in the triple-bottom line EXCEPT:

a.                                                sustainable development.

b.                                                cause marketing.

c.                                                 ISO 9000.

d.                                                green marketing.

e.                                                social audits.

Marketing efforts to produce, promote, and reclaim environmentally sensitive products are referred to as

a.                                                green marketing.

b.                                                recycle marketing.

c.                                                 cause marketing.

d.                                                environmental marketing.

e.                                                recycling.

Green marketing refers to

a.                                                the purchasing of products from producers whose farming practices are Fair Trade certified.

b.                                                the marketing efforts taken by new and smaller companies that lack both the experience and resources of their major competitors.

c.                                                 the marketing efforts to produce, promote, and reclaim environmentally sensitive products.

d.                                                the marketing of products that have in no way been altered or reprocessed by artificial means.

e.                                                the marketing of those products made exclusively from recycled materials.

At 3M, the “Pollution Prevention Pays” program has generated over 8,000 ideas that eliminated more than 3 billion pounds of air, water, and solid-waste pollutants from the environment.  This is an example of

a.                                                proactive marketing.

b.                                                green marketing.

c.                                                 consumerism.

d.                                                an ecological code of ethics.

e.                                                cause marketing.

Which of the following is an example of green marketing?

a.                                                McDonald’s adding apple snacks to its Happy Meals targeted at children.

b.                                                Lowe’s and Home Depot discontinuing the sale of lumber and other wood products.

c.                                                 Levi-Strauss marketing prewashed jeans.

d.                                                Joe’s Lawn Service offering a special spring cleanup promotion.

e.                                                Walmart implementing buying practices that encourage it suppliers to use containers and packing made from corn, not oil-based resins.

Chrysler recycles thousands of tons of wooden pallets, cardboard, and paper annually.  Chrysler cars are 75 percent recyclable.  Chrysler’s recycling programs are examples of

a.                                                recycle marketing.

b.                                                cause marketing.

c.                                                 green marketing.

d.                                                environmental marketing.

e.                                                triple-top line marketing.

Many fast food restaurants, including Burger King, McDonald’s, and Wendy’s, no longer use STYROFOAM™ containers (which do not degrade as quickly as paper in a landfill) for packaging their products.  Rather, these firms wrap their burgers in recycled paper wrappers, containers, and bags.  These fast-food restaurants are practicing

a.                                                triple-top line marketing.

b.                                                green marketing.

c.                                                 consumerism.

d.                                                an ecological code of ethics.

e.                                                cause marketing.

FedEx and UPS are converting their delivery trucks with standard diesel engines to more fuel-efficient and cleaner hybrid-electric vehicles, which can cut fuel costs by half and lower fuel emissions by 90 percent.  This is an example of

a.                                                demarketing.

b.                                                triple-top line marketing.

c.                                                 preemptive compliance.

d.                                                green marketing.

e.                                                cause marketing.

ISO stands for

a.                                                International Service Organizations.

b.                                                Integrated Standards Organization.

c.                                                 International Standards Organization.

d.                                                International Sustainable Offerings.

e.                                                Integrated Solutions Organization.

ISO 14000 refers to

a.                                                a plan to encourage the purchase of “Made in America” products.

b.                                                a global plan to further green marketing.

c.                                                 an initiative for organizations to support the International Special Olympics Committee and its athletes without endangering its nonprofit status.

d.                                                the name of the agreement that created the North American Free Trade Association (NAFTA).

e.                                                a set of standards for registration and certification of a manufacturer’s quality management and assurance system based on an on-site audit of practices and procedures developed by the International Standards Organization (ISO).

A global undertaking to further green marketing efforts is the

a.                                                ISO 14000 initiative.

b.                                                Kyoto Protocol.

c.                                                 Green World (GW) initiative.

d.                                                ISO 9000 initiative.

e.                                                ISO Trans-Global initiative.

When the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products, this marketing practice is referred to as

a.                                                marketing philanthropy.

b.                                                marketing allegiance.

c.                                                 relationship marketing.

d.                                                transactional marketing.

e.                                                cause marketing.

Cause marketing refers to

a.                                                when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products.

b.                                                the recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.

c.                                                 marketing services provided at little or no cost for the purpose of promoting or supporting a worthy cause.

d.                                                marketing efforts to produce, promote, and reclaim environmentally sensitive products.

e.                                                when marketing actions that took place actually caused more harm than good.

A key difference between cause marketing and a charitable contribution is

a.                                                a charitable contribution provides an organization with a lower tax deduction.

b.                                                there is no limit to the amount of charitable deductions a firm can make, but a firm is limited to the number of cause marketing efforts it can make during a fiscal year.

c.                                                 charitable donations are contributed at the sole discretion of the firm; cause marketing is the amount is directly affected by consumers’ purchases.

d.                                                cause marketing is generally linked to public causes and concerns while straight charitable contributions are generally given to private institutions.

e.                                                there is essentially no difference between a charitable contribution and cause marketing.

Cause marketing programs incorporate all three concepts of social responsibility by addressing public concerns, satisfying customer needs, and

a.                                                protecting the environment.

b.                                                enhancing corporate sales and profits.

c.                                                 following industry-specific codes of ethics.

d.                                                fulfilling societal objectives.

e.                                                demonstrating ethical behavior.

Procter & Gamble raises funds for the Special Olympics when consumers purchase selected company products.  This is an example of

a.                                                cause marketing.

b.                                                philanthropic marketing.

c.                                                 green marketing.

d.                                                public relations.

e.                                                societal promotions.

 

 

Avon Ad

Consider the Avon ad above.  Avon has already donated millions toward breast cancer research.  One contributing factor was the sale of a bag designed by Marimekko® exclusively for the Avon Breast Cancer Crusade.  One hundred percent of net profits were donated to the crusade.  This is an example of

a.                                                philanthropic marketing.

b.                                                corporate altruism.

c.                                                 the marketing concept.

d.                                                green marketing.

e.                                                cause marketing.

Spiegel Inc. sold Christmas cards on page two of its holiday retail catalog.  Spiegel designed and printed the cards.  Proceeds from the sales of the Christmas cards purchased through the catalog went to benefit the Starlight Children’s Foundation and the National Center for Missing and Exploited Children.  This is an example of

a.                                                philanthropic marketing.

b.                                                corporate altruism.

c.                                                 cause marketing.

d.                                                the marketing concept.

e.                                                societal marketing.

A Toyota dealership in British Columbia, Canada, donated $50 to the Make-A-Wish Foundation of Canada for each Toyota purchased during a particular month.  This is an example of how a small business can engage in

a.                                                philanthropic marketing.

b.                                                cause marketing.

c.                                                 marketing altruism.

d.                                                public relations marketing.

e.                                                societal marketing.

Post supports the Boys & Girls Clubs.  For every coupon found on a box of any of the Post brands redeemed, Post promises to donate $0.10 to the organization.  This is an example of

a.                                                cause marketing.

b.                                                philanthropic marketing.

c.                                                 goodwill marketing.

d.                                                public relations marketing.

e.                                                societal marketing.

Cadbury Canada recognized that education is crucial to lifting Ghanaian children out of poverty.  Cadbury worked with its lead partner, World Vision Ghana, to identify every child in cocoa-farming villages who had to walk at least three kilometers or more each way to school.  In the spring of 2009, Cadbury Canada launched a program that encouraged consumers to enter the bar codes of their candy and chocolate bars online.  Each entry represented one bicycle part and 100 parts “built” one bike.  The biggest-ever shipment of bicycles to Ghana—5,000 in total—is helping thousands of kids get to school and get a head start on a brighter future.  The is an example of

a.                                                philanthropic marketing.

b.                                                cause marketing.

c.                                                 societal marketing.

d.                                                public relations marketing.

e.                                                transactional marketing.

American Express Company pioneered cause marketing when it sponsored the renovation of

a.                                                Carnegie Hall.

b.                                                Madison Square Garden.

c.                                                 Liberty Hall.

d.                                                the Statue of Liberty.

e.                                                the Lincoln Memorial.

When American Express pioneered cause marketing, it raised $1.7 million to renovate a national icon, increased usage among cardholders, and

a.                                                became the only credit card accepted for admission to the sight.

b.                                                decreased outstanding debt on previously unpaid credit cards.

c.                                                 was able to raise interest rates without facing customer complaints.

d.                                                received a tax credit that more than paid for the original campaign.

e.                                                attracted new cardholders.

Which of the following statements concerning cause marketing is MOST accurate?

a.                                                The vast majority of consumers say they will switch to a brand that supports a good cause provided the price and quality of the brands are equal.

b.                                                The profits generated by cause marketing are usually paid in “goodwill” rather than actual revenue.

c.                                                 The positive effects of cause marketing are significant during the promotion, but they lose their benefit almost immediately after the promotion runs its course.

d.                                                Cause marketing rarely creates a point of difference for the firm that engages in this marketing practice.

e.                                                Women are much more suspicious about the sincerity of cause marketing programs than men; therefore, their contributions are significantly less.

A systematic assessment of a firm’s objectives, strategies, and performance in terms of social responsibility is referred to as

a.                                                a business mission.

b.                                                the strategic marketing process.

c.                                                 a SWOT analysis.

d.                                                a social audit.

e.                                                an accountability analysis.

A social audit refers to

a.                                                a systematic assessment of a firm’s compliance to fair hiring practices and commitment to diversity.

b.                                                a company-wide assessment of employees at all levels to determine the compliance to the organization’s code of ethics.

c.                                                 conducting business in a way that protects the natural environment while making economic progress.

d.                                                a systematic assessment of a firm’s objectives, strategies, and performance in terms of social responsibility.

e.                                                the ability to understand one’s own emotions and the emotions of people with whom one interacts on a daily basis.

Converting socially responsible ideas into actions involves careful planning and monitoring of programs.  Many companies develop, implement, and evaluate their social responsibility efforts by means of a(n)

a.                                                social audit.

b.                                                financial audit

c.                                                 action plan.

d.                                                tactical plan.

e.                                                research plan.

The first step in any social audit is to

a.                                                evaluate current social responsibility programs.

b.                                                determine the amount of money that can be allocated for societal marketing programs.

c.                                                 recognize a firm’s social expectations and the rationale for engaging in social responsibility endeavors.

d.                                                identify social responsibility causes consistent with the company’s mission.

e.                                                determine the types of resources needed to achieve social responsibility objectives.

A social audit is a systematic assessment of a firm’s objectives, strategies, and performance in terms of social responsibility.  The five steps of the audit are: (1) recognition of a firm’s social expectations and the rationale for engaging in social responsibility endeavors; (2) identification of social responsibility causes or programs consistent with the company’s mission; (3) determination of organizational objectives and priorities for programs and activities it will undertake; (4) specification of the type and amount of resources necessary to achieve social responsibility objectives; and (5)

a.                                                identification of environmental forces that could interfere with the firm’s plans.

b.                                                evaluation of possible benefits both tangible and intangible to the firm’s triple-bottom line.

c.                                                 evaluation of social responsibility programs and activities undertaken and assessment of future involvement.

d.                                                selection of a team leader and assignment of tasks and task deadlines for team members.

e.                                                creation or selection of a theme, slogan, spokesperson, etc. for marketing cohesiveness.

Conducting business in a way that protects the natural environment while making economic progress is referred to as

a.                                                sustainable development.

b.                                                green marketing.

c.                                                 stakeholder responsibility.

d.                                                the marketing concept.

e.                                                environmental marketing.

Sustainable development refers to

a.                                                placing restraints on a company’s growth until all ancillary support services are in place to ensure a new venture’s success.

b.                                                global economies that are slowly moving from an agrarian-base to an industrial base.

c.                                                 adhering to worldwide standards for environmental quality and green marketing practices.

d.                                                marketing efforts to produce, promote, and reclaim environmentally sensitive products.

e.                                                conducting business in a way that protects the natural environment while making economic progress.

Which of the following statements about sustainable development is most accurate?

a.                                                A company that always makes its furniture from rare tropical woods is practicing sustainable development.

b.                                                At this point in time, sustainable development is a luxury that only large international companies can achieve.

c.                                                 Sustainable development is achieved when a firm’s sales growth rate increases an average of 1-2% per year for a period of at least five years.

d.                                                A company that uses overseas child laborers to manufacturer its products to reduce costs does not practice sustainable development.

e.                                                Unfortunately, only a small number of consumers care whether a company practices sustainable development.

Arrowhead® Brand Mountain Spring Water recently changed its bottle by reducing the size of its label by one-third, using 30% less plastic, and making the bottle more flexible for easier recycling.  These efforts are part of the company’s goal to engage in __________.

a.                                                sustainable development

b.                                                market development

c.                                                 ISO 9000 compliance

d.                                                cause marketing

e.                                                environmental downsizing

Consumers have an obligation to __________ in the exchange process and in the use and disposition of products.

a.                                                get as much as they can for their money

b.                                                support cause marketing efforts

c.                                                 reveal any and all pertinent personal information

d.                                                act ethically and responsibly

e.                                                seek products without ISO 14000

Practices that include filing warranty claims after the claim period, misredeeming coupons, and making fraudulent returns of merchandise are examples of

a.                                                normal and reasonable consumer behavior.

b.                                                unethical practices by consumers.

c.                                                 acceptable consumer code of ethics.

d.                                                costs to be passed along to shareholders as a part of doing business.

e.                                                violations of the Consumer Bill of Rights.

Which of the following statements about consumer ethics is most accurate?

a.                                                Consumer complaints about online auction fraud outnumber all reports of online crime.

b.                                                The cost to marketers of unethical consumer behavior is negligible in terms of lost sales.

c.                                                 The potential cost to marketers of unethical consumer behavior is dramatically reduced by investing in loss prevention training.

d.                                                Retailers lose about $1 million dollars a day from shoplifting.

e.                                                At some point, every person shoplifts or participates in an unethical exchange; to retailers, it is simply the cost of doing business.

Which of the following statements about consumer ethics is most accurate?

a.                                                Most consumers’ unethical acts are motivated by economic need.

b.                                                Some consumers believe that if they can get away with unethical behavior, it is worth it.

c.                                                 If “everyone else does it,” then that becomes the norm so, ultimately, there is no such thing as unethical consumer behavior.

d.                                                Most consumers who shoplift do so because a salesperson has been insulting or rude.

e.                                                Few customers behave unethically toward smaller, independently owned businesses.  Most unethical consumer behavior is against “big business.”

Although research shows consumers are sensitive to ecological issues, they may not be willing to purchase a given product or service solely on the basis of its environmental claims.  They may (1) be unwilling to sacrifice convenience and pay higher prices to protect the environment, and (2)

a.                                                be unable to make an ecologically sound purchase because eco-friendly products are significantly less expensive, indicating that they are of lesser quality.

b.                                                lack the knowledge to make informed decisions dealing with the purchase, use, and disposition of products.

c.                                                 believe that protecting the environment in one area actually can create disruptions in another areas.

d.                                                believe that ecological issues are still a matter of opinion even within the scientific community itself.

e.                                                believe that public sentiment toward ecological issues has now reached a consensus—in today’s economic downturn, jobs are more important than environmental issues.

Practices such as filing warranty claims after the claim period, misredeeming coupons, making fraudulent returns of merchandise, etc. are

a.                                                acceptable provided the merchant providing the service has not violated the Consumer Bill of Rights.

b.                                                acceptable provided the salesperson doesn’t mind.

c.                                                 occasionally permitted when two different firms are competing for a customer’s business and both are using equally less than ethical practices.

d.                                                not acceptable because consumers also have an obligation to act ethically and responsibly.

e.                                                not acceptable unless the participants are nonprofit organizations or charities.

Making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice is referred to as ___________.

a.                                                greenwashing

b.                                                whitewashing

c.                                                 environmental slander

d.                                                green gouging

e.                                                demarketing

Greenwashing refers to

a.                                                marketing efforts to produce, promote, and reclaim environmentally sensitive products.

b.                                                conducting business in a way that protects the natural environment while making economic progress.

c.                                                 the practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice.

d.                                                the practice of deliberately concealing the mistakes that polluters make regarding the environmental disasters they perpetrated.

e.                                                the recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.

Toyota employs all of the following business practices as part of “The Toyota Way” EXCEPT:

a.                                                to continuously improve business operations, always striving for innovation and evolution.

b.                                                to maximize individual and team performance.

c.                                                 to always go to the source to find the facts and make correct decisions.

d.                                                to build trust and take responsibility.

e.                                                to contribute to society and the economy by producing high-quality products and services.

One of Toyota’s top goals has been to develop advanced vehicle technologies to complement existing ones.  The G21 vision arose out of this goal, which eventually led to the production of which of the following vehicles?

a.                                                Lexus 450 all-electric car

b.                                                Toyota Tundra gas-electric hybrid truck

c.                                                 Scion iQ micro-subcompact compressed natural gas car

d.                                                Toyota Prius gas-electric hybrid car

e.                                                Toyota Camry hydrogen fuel cell hybrid car

In a recent survey, consumers were asked the following question: “Who should take the lead in addressing environmental issues?”  The results suggest that __________ should.

a.                                                the federal government

b.                                                businesses

c.                                                 individuals

d.                                                environmental groups

e.                                                the state government

 

1) In response to a growing interest in healthful, simple products among consumers, Chobani introduced

 

2) From its inception, Chobani wanted to place its yogurt where?

 

3) All of the following are marketing mix strategies that Chobani has used to sell its yogurt except which?

 

4) Which of the following statements about marketing is most accurate?

 

5) Elon Musk was involved in the inception of all of the following companies except which?

 

6) Marketing refers to

 

7) The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large is referred to as

 

8) All of the following are true about marketing except which?

 

9) An organization's stockholders, its suppliers, its employees, its customers, and society at large all share what in common with regard to an organization?

 

10) Mizuno designs and sells high quality baseball gloves. Who benefits from the firm's marketing activities for its gloves?

 

11) To serve both buyers and sellers, marketing seeks to ________ and satisfy the needs and wants of prospective customers.

 

12) To serve both buyers and sellers, marketing seeks to discover and ________ the needs and wants of prospective customers.

 

13) Whether an individual is considering a purchase for personal or household use, or an organization is buying for its own use or for resale, the individual or organization would be considered

 

14) A student wants to buy a smartphone so she can share pictures with her friends. An insurance claims adjuster wants to buy a smartphone to document accidents (take pictures, write a report, etc.). If they both purchase the same model smartphone, such as an Apple iPhone, which statement is most accurate?

 

15) The Terrafugia Transition is a 19-foot, two-seater, road-drivable, light-sport aircraft with an anticipated price of $279,000. The most likely prospective customers for this flying car would include

 

16) In marketing, the idea of exchange refers to

 

17) The trade of things of value between buyer and seller so that each is better off after the trade is referred to as

 

18) The American Red Cross creates advertisements to encourage people to donate blood. After viewing one, Amanda decided to donate a pint of blood. After she did, Amanda felt happy that she had performed a good deed. Did an exchange occur in a marketing sense?

 

19) A church put advertisements in its weekly bulletins to encourage its members to participate in the services by telling a brief, positive story about how fellow members have helped them during times of need. Jack volunteered and shared his story during a service. Afterward, he felt joyous. Was this an exchange in a marketing sense?

 

20) A local college of business offers an outstanding graduate business school education program. Marissa pays the tuition to attend and earns her MBA with a concentration in marketing management. Upon graduating, she is offered a high-paying, fulfilling position. Was this a marketing exchange?

 

21) A typical marketing department both shapes and ________ its relationship with internal and external groups.

 

22) ________ is/are responsible for establishing the organization's mission and objectives.

 

23) One challenge faced by organizations is the need to focus on consumer needs while also ________ the interests of countless other people, groups, and forces that interact to shape the nature of its actions.

 

24) Which of the following statements about marketing activities is most accurate?

 

25) All of the following are departments within a typical organization except which?

 

26) The ________ department of an organization is responsible for facilitating relationships, partnerships, and alliances with the organization's customers, shareholders, suppliers, and other organizations.

 

27) The marketing department of an organization is responsible for facilitating

 

28) Which of the following statements about marketing departments is most accurate?

 

29) All of the following are environmental forces that affect an organization except which?

 

30) Which of the following is not an environmental force?

 

31) Which of the following statements about marketing activities is most accurate?

 

32) All of the following are factors required for marketing to occur except which?

 

33) Which of the following is a factor required for marketing to occur?

 

34) Which of the following conditions are necessary for marketing to occur?

 

35) For marketing to occur, there must be two or more parties involved. Dr. Pepper Snapple Group distributes Country Time lemonade in cans through supermarkets at a price comparable to that of soft drinks. The most likely "second" party needed for marketing to occur would be

 

36) A business student is preparing for the Graduate Management Admission Test (GMAT) so he can get into a good graduate business school. He knows that any money he spends on a tutor will be worthwhile if he can improve his scores. He's heard that there is a great tutor in his local community but has no idea who she is. Marketing does not occur in this situation because

 

37) A student would like to buy a cross-over SUV from a local dealer, but she thinks the payments will be too high. Marketing does not occur in this situation because

 

38) A college student is taking a full course load, working 20 hours per week, and still has to take out a student loan to cover tuition. One day, he sees a classmate driving a new Lexus LFA sports coupe (price: $375,000) and feels he just has to have one for himself. What factor is most likely to prevent a successful marketing exchange between the student and the local Lexus dealer located in an affluent suburb about 20 miles from his university?

 

39) A local candidate running for office would very much like to have your vote. She promises that she will "make the country better." Because all candidates for public office say this, you doubt you'll see real results and decide not to vote for her. Marketing will not occur in this situation because

 

40) The Arizona Biltmore in Phoenix is a resort hotel located less than a mile from the Biltmore Fashion Park, a large upscale shopping mall. The hotel wants to promote its proximity to the shopping center as well as its many other amenities to convention-goers from other states. Which of the following marketing actions would most likely help The Arizona Biltmore communicate with potential convention attendees?

 

41) A farmhand would like to buy a moped scooter to commute to his job at a nearby ranch. He doesn't know how to find a dealer though, and he doesn't have Internet access. Which of the following reasons explain why marketing fails to occur here?

 

42) Suppose you want a snack after taking this exam. Domino's is located across the street from your College of Business classroom. Unfortunately, you forgot your wallet in the haste of getting to class on time to take the test. Therefore, you have no means to pay for the pizza. Which of the following reasons explain why marketing fails to occur here between you and Domino's?

 

43) Ryan receives a coupon on his iPhone advising him about the location of a Taco Bell store. This is an example of which requirement for marketing to occur?

 

44) Conducting marketing research is an excellent way to address the first objective in marketing, which is to discover consumers'

 

45) Marketers often discover consumer needs by

 

46) A factor that might doom a product in the marketplace is referred to as

 

47) Showstoppers refer to

 

48) Crowdsourcing has been an important method of identifying consumer needs for which of these products?

 

49) Concerns about privacy might have been a reason for lackluster sales of which of these products?

 

50) Pepsi True is a new cola from Pepsi-Cola that is sweetened with a combination of sugar and stevia leaf extract, resulting in a soft drink with the same flavor of Pepsi but only 60 calories. A potential showstopper for this product is likely to be

 

51) A ________ occurs when a person feels deprived of basic necessities such as food, clothing, and shelter.

 

52) A want is ________ that is shaped by a person's knowledge, culture, and personality.

 

53) A need that has been shaped by a person's knowledge, culture, and personality results in a

 

54) Steve wants to eat a Cool Mint Chocolate Clif Bar because, based on his past experience, he knows it will satisfy his hunger

 

55) A need refers to

 

56) All of the following are examples of products or services that satisfy a consumer need except which?

 

57) Which of the following statements best distinguishes between consumer needs and wants?

 

58) A want refers to

 

59) A television advertisement shows several teenagers searching through the pantry for something to satisfy their hunger. The pantry offers the teenagers many alternatives—cereal, chips, cookies, and some Cool Mint Chocolate Clif Bars. The ad, which shows the teens happily selecting the Clif Bars, appeals to the consumers' ________ for sustenance to satisfy their hunger and attempts to shape their ________ for the advertised product.

 

60) In a marketing context, a market refers to

 

61) People with both the desire and ability to buy a specific offering are referred to as

 

62) All markets ultimately are composed of

 

63) The best description of the market for cosmetic dentistry, where costs can be as much as $15,000 for teeth straightening and whitening, is

 

 

 

Figure 1-3

 

64) In Figure 1-3, "A" represents ________ and "B" represents ________.

 

65) Discovering consumer needs leads directly to

 

66) Satisfying consumer needs is accomplished by

 

67) Product, price, promotion, and place are all components of

 

68) A target market refers to

 

69) One or more specific groups of potential consumers toward which an organization directs its marketing program is referred to as a

 

70) Kraft produces Lunchables, a prepackaged meal usually consisting of several crackers, small slices of meat, and small slices of cheese. Other items in the product line contain small bottles of Chiquita Strawberry Banana Fruit smoothie, Capri-Sun juice, or Kool-Aid. The box is bright yellow and the quantity of food contained within it is small. The target market for Kraft Lunchables is most likely

 

71) Which of the following people would most likely be the best target market for tickets to the home games of the Indianapolis Colts professional football team?

 

72) Which of the following groups would be the least likely target market for a company producing canned food in single-serving sizes?

 

73) TUMI brand briefcases are very expensive, high-end briefcases that are generally sold in specialty luggage shops. Which of the following groups of people would be the most likely target market for TUMI briefcases?

 

74) The United States Army was both praised and criticized for its use of a popular video game, America's Army, which was designed to reach potential recruits. The game's creator, Colonel Casey Wardynski, wanted to provide a sense of the training and teamwork one could find in the Army's military environment. The game was designed for "boys 14 years or older," which represent the Army's

 

75) A local university offers business courses for a target market of people who currently work and want to take refresher courses for certification in their business field (marketing, accounting, etc.). Which of the following would be the most effective way to communicate with the target market, bearing in mind that communication must be both effective and economical?

 

76) The marketing manager's controllable factors—product, price, promotion, and place—that can be used to solve a marketing problem are referred to as

 

77) The marketing mix refers to

 

78) Which of the following would a marketer use as a synonym for the marketing mix?

 

79) The four Ps of the marketing mix are

 

80) All of the following constitute the four Ps of the marketing mix except which?

 

81) The four Ps are commonly known as

 

82) The marketing mix elements are called ________ because they are the responsibility of the marketing department in an organization.

 

83) Jakubowski Farms Gourmet Bread Base is the brand name for a mix designed for use in bread making machines. The mixes are sold in 2-pound canisters for $14.99 plus shipping. People learn about the product through word-of-mouth and bread machine demonstrations the company's founder gives to groups in Wisconsin, where she lives. The products are only available through the mail. This is a description of the company's

 

84) The element of the marketing mix that describes a good, service, or idea to satisfy consumers' needs is known as

 

85) The owners of Old School Brand Authentic Antique Foods researched Civil War records to come up with recipes used for the old-fashioned cookies the company produces and markets. The cookies are which part of the company's marketing mix?

 

86) The element of the marketing mix that describes what is exchanged for a product is known as

 

87) Which element of the marketing mix is affected when the Mandarin Oriental hotel in New York increases its weekend rates to $795 per night?

 

88) The element of the marketing mix demonstrated when an art gallery suggests a $2 donation at the door is

 

89) To attend a winter concert presented by the community chorus, every person had to donate one unwrapped toy at the concert hall door. The donation is most closely related to the ________ element of the marketing mix.

 

90) The element of the marketing mix that describes a means of communication between the seller and buyer is known as

 

91) The owners of Old School Brand Authentic Antique Foods researched Civil War records to come up with recipes for the heritage products they market. An offer to be featured in an upcoming edition of Taste of Home magazine would be considered part of the ________ element of the marketing mix.

 

92) The ________ element of the marketing mix is demonstrated when a company places an ad on a highway billboard.

 

93) When a company uses advertising on Instagram, the action is a tactic of the ________ element of the marketing mix.

 

94) The element of the marketing mix that describes a means of getting the product to the consumer is known as

 

95) The ________ element of the marketing mix is demonstrated when Amazon delivers packages to a customer's front porch via the U.S. Postal Service.

 

96) The ability to buy a soda from a vending machine demonstrates which element of the marketing mix?

 

97) The cluster of benefits that an organization promises customers to satisfy their needs is referred to as a

 

98) A customer value proposition is

 

99) Michelin's ________ can be summed up as "providing safety-conscious parents greater security in tires at a premium price."

 

100) The uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces are referred to as

 

101) Which of the following is not an environmental force?

 

102) Environmental forces refer to

 

103) The five major environmental forces in a marketing decision are

 

104) Which of the following statements about environmental forces is most accurate?

 

105) Which of the following statements describes an environmental force?

 

106) The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and before- and after-sale service at a specific price is called

 

107) Customer value refers to

 

108) Which of the following statements about customer value is most accurate?

 

109) According to the text, Target has been successful by offering consumers the best

 

110) According to the tex, Starbucks provides its customers with the best

 

111) If a bank is known for delivering customer value through its focus on taking great care of customers, it is most likely focusing on providing its customers with the best

 

112) Those who have flown on Singapore Air have experienced firsthand the great food that is served during the flight, the friendliness of the flight attendants, and the comfortable seating. Singapore Air creates customer value by providing its customers with

 

113) Relationship marketing refers to

 

114) The linking of the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit is referred to as

 

115) Which of the following statements about relationship marketing is most accurate?

 

116) In the performing arts world, Tessitura uses box office technology to track every patron transaction, including ticket purchases, fund-raising, volunteering, and gift shop purchases, in one database. The information can help symphonies, operas, and theaters develop customer profiles to tailor sales messages to specific individuals. Tessitura will allow arts groups to engage in

 

117) Publix Supermarkets and The Little Clinic signed an exclusive agreement, placing small walk-in health clinics inside selected stores. Publix customers can have simple medical needs addressed in a convenient and familiar environment seven days a week and pick up their prescriptions from the pharmacy without leaving the store. This is an example of

 

118) A business traveler joined the Starwood Preferred Guest Program in order to earn points each time he stayed overnight in a Westin or Sheraton hotel. Once he has accumulated enough points, he can trade his points in for a free night's stay. As a member of this program, the traveler receives periodic updates on new hotels and learns of ways to earn additional points. The marketing term that best describes this scenario is

 

119) A marketing program refers to

 

120) A ________ is a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.

 

121) After an assessment of needs, a marketing manager must translate ideas from consumers into concepts for products that a firm may develop. The concepts must then be converted into a tangible

 

122) Market segments refer to

 

123) In marketing, each ________ consists of people who are relatively similar to each other in terms of their consumption behavior.

 

124) An inventor for 3M, David Windorski, and a team of four college students, questioned dozens of students about how they study. They told the research team

 

125) The purpose of the introduction of 3M Post-it Flag Highlighters was to

 

126) Which of the following statements about 3M's marketing program for Post-it Flag Highlighters and Post-it Flag Pens is most accurate?

 

127) The pricing strategy for 3M's Post-it Flag Highlighters was to

 

128) The 3M Post-it Flag Highlighter and Pen marketing programs were designed for what primary objective?

 

129) The place strategy in 3M's marketing program made it convenient for ________ to buy Post-it Flag Highlighters and Post-it Flag Pens.

 

130) Based on the marketing program 3M developed for its Post-it Flag Highlighters and Post-it Flag Pens, one can conclude that

 

 

Figure 1-5

 

131) With respect to the history of American business, the ________ era covered the early years of the United States up until the 1920s.

 

132) If you wanted a new pair of shoes during the Civil War, you traced the outline of your foot on a piece of paper and gave it to a shoemaker. There was no distinction between the right and left foot because you wanted your shoes as quickly as possible, and the shoemaker knew that you would buy them even if they just "sort of" fit. This is an example of a transaction that would have occurred during the ________ era in U.S. business history.

 

133) With respect to the history of American business, the ________ era covered the years from the 1920s to the 1960s.

 

134) The period of American business history when firms could produce more goods than they could sell and the focus was on hiring more salespeople to seek out new customers is referred to as the ________ era.

 

135) Shortly after World War II, John Jackson developed an idea for a machine lubricant that was superior to anything currently on the market. He persuaded friends to help him begin producing it for sale. While demand kept up with production at first, he soon found that he had to hire a sales force to sell excess product to manufacturing companies in the area. He decided this was primarily because of several strong competitors that had recently come into the industry. This is an example of marketing behavior that would occur during the ________ era of U.S. business history.

 

136) In the movie Tin Men, two rival salesmen engaged in a variety of dishonest and unethical practices in order to sell aluminum siding to homeowners in 1963. Their job was difficult, in part, because the supply of aluminum siding surpassed the demand for the product and competition was intense. This situation is indicative of the ________ era of U.S. business history.

 

137) Imagine a confectionary company has introduced a new nutty candy bar during the 1930s (the sales era in U.S. business history). Which of the following statements would you most likely expect management to make if sales of this new candy bar were much lower than expected?

 

138) In U.S. business history, the marketing concept era began in

 

139) The ________ concept means that an organization strives to satisfy consumer needs while achieving its goals.

 

140) Which of the following statements about the marketing concept is most accurate?

 

141) The idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization's goals reflects the

 

142) The marketing concept refers to

 

143) Which of the following terms best describes the marketing concept?

 

144) In 1952, General Electric's annual report stated, "The concept introduces...marketing...at the beginning rather than the end of the production cycle and integrates marketing into each phase of the business." This is a brief statement of what has come to be known as the

 

145) Firms such as General Electric, Marriott, and Facebook have achieved great success by putting a huge effort into implementing the marketing concept, giving their firms a

 

146) Many companies subscribe to being "green" because they feel that consumers value this. Yet, in many of these same firms, office computers are left on 24 hours a day and office paper is not recycled. This example indicates it is not always easy for firms to act in accordance with the

 

147) An organization with a market orientation

 

148) An organization that focuses its efforts on continuously collecting information about customers' needs, sharing this information across departments, and using it to create customer value is said to have a(n)

 

149) With respect to the history of American business, today's firms operate in the ________ era as they must continuously seek to satisfy the high expectations of customers.

A) production

 

 

Figure 1-5

 

150) In Figure 1-5 above, "A" represents which era in U.S. business history?

 

151) In Figure 1-5 above, "B" represents which era in U.S. business history?

 

152) In Figure 1-5 above, "C" represents which era in U.S. business history?

 

153) In Figure 1-5 above, "D" represents which era in U.S. business history?

 

154) Customer relationship management refers to

 

155) The United Way of Greater Toronto (UWGT), like many charities, was sitting on a gold mine of donor data. Unfortunately, UWGT was not certain how to use that information to its greatest advantage. UWGT could blanket past donors with generic mailings, but it could not offer donors information that would convince them to donate to UWGT over other charities. Which of the following tools would be most useful for the nonprofit organization to use?

 

156) The internal response that customers have to all aspects of an organization and its offerings is referred to as

 

157) Customer experience refers to

 

158) Recently, Fortune magazine named Trader Joe's "America's hottest retailer" for its outstanding ________, including personal attention from employees in the store.

 

159) All of the following are aspects of Trader Joe's customer experience except which?

 

160) Today, the standards of marketing practice have shifted from the interests of producers to the interests of

 

161) Social responsibility is

 

162) The idea that individuals and organizations are accountable to a larger society is known as

 

163) You change the oil in your car yourself and dump the used oil down the sewer drain that ultimately flows into the local river. Oil manufacturers know this is not an isolated occurrence, so should they be concerned?

 

164) Which of the following most directly explains why pharmaceutical giant Pfizer offered low-income senior citizens many of its most widely used prescriptions for $15 each per month?

 

165) The societal marketing concept

 

166) The view that holds an organization should satisfy the needs of consumers in a way that also provides for society's well-being is known as

 

167) Innovators at 3M developed Scotchbrite Greener Clean scrub sponges from agave leaves. Customers appreciate this superior product (they don't rust or scratch) and like the fact that their purchase is environmentally responsible, making this an example of

 

168) What kinds of organizations should engage in marketing?

 

169) Which of the following organizations engage in marketing?

 

170) Which of the following statements best describes a good?

 

171) Which of the following statements best describes a service?

 

172) Organizations such as American Airlines, U.S. Bank, and the Red Cross each provide customers with a product that is typically called

 

173) A live theater performance cannot be touched like a physical object, but is still considered a product. To a marketer, this is an example of

 

174) In marketing, thoughts about concepts, actions, or causes are referred to as

 

175) A product

 

176) A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value is known as

 

177) Which answer reflects (in this order) a good, a service, and an idea that can be marketed?

 

178) The Hermitage, a famous Russian art museum, was experiencing a decrease in visitors that was blamed on low awareness of the museum's treasures. The Hermitage partnered with IBM to create an online virtual tour of a sampling of paintings, sculptures, artifacts, etc., hopefully encouraging visitors to make a trip to experience it all. The Hermitage is a(n) ________ that uses online virtual tours to market itself worldwide.

 

179) All of the following are examples of ideas that can be marketed except which?

 

180) Ultimate consumers are

 

181) The people who use the products and services purchased for a household are called

 

182) Hudson News Distribution owners Lisa and James Cohen recently launched a quarterly art and interior design magazine, Galerie, to be distributed exclusively in their retail stores. Who is the ultimate consumer for this magazine?

 

183) Which of the following is an example of an ultimate consumer?

 

184) Entities such as manufacturers, retailers, and government agencies that buy goods and services for their own use or for resale are referred to as

 

185) Organizational buyers are described as

 

186) Which of the following is the best example of an organizational buyer?

 

187) Effective marketing benefits society because it

 

188) Utility refers to

 

189) The benefits or customer value received by users of a product is called

 

190) The four utilities marketing creates are

 

191) The value to consumers that comes from the production or alteration of a product or service constitutes ________ utility.

 

192) Which of the following is an example of form utility?

 

193) FreshCase packaging is the first-ever vacuum package for red meat that maintains the meat's appetizing color, reducing both food and plastic waste. This is an example of creating ________ utility in the case-ready meat category.

 

194) Innovations in the textile industry have led to fabrics that help regulate body temperature, reduce wind resistance, and control muscle vibration, all of which help improve athletic performance. This shows how manufacturing can create ________ utility.

 

195) The process of turning corn into ethanol shows how BioFuel Energy, a Minnesota ethanol producer, can create ________ utility.

 

196) The value to consumers that comes from having the offering available where consumers need it constitutes ________ utility.

 

197) Which of the following statements is an example of place utility?

 

198) The value to consumers that comes from having the offering available when they need it constitutes ________ utility.

 

199) American Express cardholders have access to early presales for Rihanna concert tickets in many cities. What utility does American Express offer in this instance?

 

200) Dick's Sporting Goods carries baseballs year-round. The same is true for footballs and tennis equipment. With this strategy, Dick's Sporting Goods offers ________ utility for these products.

 

201) Which of the following is an example of time utility?

 

202) Redbox places vending machines at local convenience and grocery stores that allow customers to rent and return popular DVDs 24 hours a day. This creates both ________ and ________ utilities.

 

203) The value to consumers that comes from making an item easy to purchase through the provision of credit cards and financial arrangements constitutes ________ utility.

 

204) Which of the following is an example of possession utility?

 

205) Robert was running low on cash when he went to buy his marketing textbook on the first day of class. Luckily, the bookstore accepted his VISA card, so the bookstore created ________ utility for Robert.

 

206) The founder of Chobani, who won the 2013 Ernst & Young World Entrepreneur of the Year award, is

 

207) One difference between "Greek" yogurt and "American" yogurt is that the latter

 

208) All of the following are points of difference for Chobani yogurt except which?

 

209) All of the following are current or prospective distribution channels for Chobani yogurt except which?

 

210) Chobani used all of the following tactics to promote its Greek yogurt except which?

 

 

1) Facebook has approximately what fraction of the world’s population as customers?

 

2) All of the following statements about the environmental forces that have influenced Facebook are true except which?

 

3) Environmental scanning refers to

 

4) The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends is called

 

5) Environmental trends arise from all of the following forces except which?

 

6) The purpose of environmental scanning is to

 

7) Which of the following statements regarding environmental scanning is the most accurate?

 

8) A firm conducting an environmental scan of the marketplace might uncover key ________, such as the growing popularity of brand advocates, the increasing application of virtual and augmented reality, and the surging scrutiny regarding the collection and use of consumer data.

 

9) Starbucks entered a partnership with Keurig Green Mountain to sell K-Cup single-serving coffee packs. Because Starbucks ________, it was prepared for this shift in its marketing environment.

 

10) As the director of marketing for a local hospital that specializes in caring for limited mobility patients and related health issues, you must conduct an environmental scan to help create a five-year marketing plan for the hospital. Which of the following environmental trends should you consider to be the most important?

 

11) The Lemon Tree is a high-fashion boutique selling top-of-the-line women’s clothing and accessories. The keys to its success include knowing customers’ changing tastes and providing something different than other retailers. In addition, because of the high value of the merchandise, The Lemon Tree’s management is investing in the use of computerized inventory controls and sales order processing. The least important environmental force to The Lemon Tree at this time is likely to be

 

12) Local newspaper readership has declined significantly in recent years. Not only are traditional newspapers losing subscribers, they are also losing advertisers. To combat these trends, many newspaper publishers now offer online versions of their printed newspapers. This is most likely a response to which environmental force?

 

13) A growing trend to “Buy American” may encourage U.S. automakers to increase political pressure on Washington to pass legislation for more restrictive quotas on Japanese car imports. In addition, a decline in the value of the U.S. dollar would be instrumental in Toyota’s decision to build a manufacturing plant in the United States instead of continuing to export cars from Japan. If Toyota builds the plant, its decision would reflect

 

14) Many large consulting firms are beginning to sponsor “women-only” networking events. The purpose of these events is to offer an opportunity for women in management to network with other businesswomen, either as clients, mentors, or protégés. This is an example of which environmental force?

 

15) The Kansas state legislature recently banned the use of tanning beds by anyone under the age of 18. This restriction would be an example of which environmental force?

 

16) Using smartphones, people can watch the news, shoot videos, browse the Internet, take pictures, and listen to music. Improved features are added with each smartphone introduced by Apple, Samsung, Google, and others. As a result, customers often want to replace their existing smartphones with new models every two years or more often, even if their existing phones still work. This increase in demand is due mostly to changes in ________, an environmental force.

 

17) Pending federal legislation will require all online retailers to collect state sales taxes from customers. This would affect online sellers such as Virtual Vineyards, which now collects state sales taxes only from customers who reside in California, its home state. This pending legislation would be an example of which environmental force?

 

18) The demographic characteristics of a population and its culture are called

 

19) The social forces in the environment include the ________ of the population and its culture.

 

20) Which of the following statements regarding social forces is most accurate?

 

21) Which of the following would be identified as a social force in an environmental scan?

 

22) Generation X consumers indicate they want online customer support; websites that are comprehensive, professional, and interactive; and advertising that is authentic, family-oriented, and unique. Generation X is also replacing baby boomers as the largest segment of business travelers. In response, American Airlines is offering travelers in-flight Wi-Fi, entertainment on demand, and personal power ports. This is an example of how ________ forces impact the marketing environment.

 

23) An important social trend is the continued concern for health and well-being in the United States. This is most likely evidenced by which of the following?

 

24) Publishers were surprised by the dramatic success of the book Fifty Shades of Grey and believe that it would likely generate a fresh cycle of female-targeted romances packaged for the mainstream reader. This is an example of ________ force impacting the marketing environment.

 

25) Demographics refer to

 

26) The description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation is referred to as

 

27) Demographic characteristics that describe a population include all of the following except which?

 

28) More is a publication designed to appeal to women aged 40 and over. Demand for such magazines would be most affected by changing ________ characteristics in the marketing environment.

 

29) The most recent estimates indicate that the population of the world today is about

 

30) By 2050, the world’s population is expected to be

 

31) The change in the growth of the world’s population is called the

 

32) The population explosion has occurred

 

33) Projections show that the population is

 

34) The country expected to have the largest population in 2050 is

 

35) Studies of the ________ characteristics of the U.S. population suggest that it is becoming larger, older, and more diverse.

 

36) Generally, the U.S. population is becoming

 

37) By 2030, the U.S. population is expected to exceed

 

38) All of the following factors contribute significantly to the rate of change of a country’s population except which?

 

39) The generation of children born between 1946 and 1964 is referred to as

 

40) Baby boomers can be defined as the generation born

 

41) Which of the following currently affects baby boomers, and thus those that market to them, in a significant way?

 

42) Prudential, a financial planning firm, offers retirement plans and wealth management advice. These products are most likely targeted toward which generational cohort?

 

43) Olay, a personal care product firm, offers anti-aging and restoration products like its Total Effects cleansing cloths that are best targeted toward

 

44) In a recent issue of AARP The Magazine, a print ad for State Farm Insurance annuities advises readers that “The company has helped you enjoy your time with the kids and it can now help you enjoy your time without them.” The ad is most likely targeted toward which generational cohort?

 

45) Generation X is defined as the generation of children born

 

46) The 50 million people born between 1965 and 1976, also called the ________, refers to Generation X.

 

47) The generational cohort known as ________ was born during the baby bust era when the number of children born each year was declining.

 

48) ________ is the generational cohort described as self-reliant, supportive of racial and ethnic diversity, better educated than previous generations, and not prone to extravagance.

 

49) Generation X consumers are

 

50) Generation X

 

51) Americans born between 1977 and 1994 are referred to as

 

52) Generation Y is defined as the generation of children born

 

53) Generation Y is considered part of the

 

54) Though definitions are inconsistent, Generation Y, especially its younger members, are frequently associated with

 

55) Members of Generation Y are more likely than other generational cohorts to influence

 

56) According to population estimates, ________ have recently surpassed baby boomers as the largest living generation, with 75 million people.

 

57) Members of Generation Y, sometimes known as ________, are interested in sustainability, including sustainable campus communities.

 

58) Millennials are technologically savvy, innovative, ambitious, and determined to make the world a better place. A major way they hope to achieve their goal is through

 

59) For millennials, “positive business” involvement means

 

60) All of the following statements are true except which?

 

61) The post-millennial generation that includes consumers born between 1995 and 2010 is known as

 

62) Members of Generation Z are most likely to influence marketers’ offerings in which of these categories?

 

63) Approximately one in ________ U.S. residents is African American, American Indian or Alaska Native, Asian American, or Native Hawaiian or Pacific Islander.

 

64) Of the following, which racial or ethnic group had the greatest economic impact in the United States in terms of its buying power?

 

65) Combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races and ethnic groups are referred to as ________ marketing programs.

 

66) Multicultural marketing refers to combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different

 

67) Recognized for excellence by Advertising Age magazine, Alma creates advertising to reach diverse segments by searching “for that intangible fiber that touches the lives of consumers creating relevant and unique business-building communication ideas.” Alma has created Hispanic campaigns for McDonald’s, Sprint, and Clorox as a part of their programs incorporating

 

68) The set of values, ideas, and attitudes that are learned and shared among the members of a group is referred to as

 

69) Culture refers to the

 

70) Culture is a component of what type of environmental force that must be scanned to assess its impact on the organization’s marketing environment?

 

71) Changing attitudes toward sex roles are sometimes expressed today as ________ in both product design and promotion.

 

72) Which one of the following is a commonly held value in the United States today?

 

73) Two increasingly important values for consumers around the world are

 

74) Colgate’s “Every Drop Counts” water conservation campaign asks consumers to pledge to save water by turning off the faucet while brushing their teeth. This is an example of which increasingly common cultural value?

 

75) Many consumers are committed to brands with a strong link to social action. An example of this would be

 

76) Walmart has set ambitious goals to cut energy use by buying more local products, reducing packaging, and switching to renewable power in response to customers’

 

77) The economy is defined as

 

78) A sudden drop in the average consumer income would be an example of which environmental force?

 

79) Oil prices have an impact on transportation costs for many types of products. Should oil prices change, the price consumers pay for products is often adjusted accordingly. Changing oil prices would be an example of ________ force.

 

80) Volkswagen opened a large plant in Chattanooga, TN, in 2011. Within a few years, Volkswagen spurred more than 12,400 direct and indirect jobs in the area. The carmaker generates income of over $600 million in Chattanooga annually and boosts state and local tax revenues by over $50 million a year. A huge expansion was announced in 2016 that would nearly double its operations in Tennessee. This example best illustrates ________ change that has impacted the people and businesses of Chattanooga.

 

81) All of the following are economic indicators except which?

 

82) In ________ economy, the cost to produce and buy products and services escalates as prices increase.

 

83) In ________ economy, if prices rise faster than consumer incomes, the number of items consumers can buy decreases.

 

84) In an inflationary economy, the cost to produce and buy products and services ________ as prices ________.

 

85) The College Board reports that since 2000, college tuition and fees have increased by 160 percent while the share of family income required to pay for tuition at public four-year colleges has risen from 5 percent in 2000 to 17 percent today. This is an example of ________ condition.

 

86) A time of declining economic activity when businesses decrease production, unemployment rises, and many consumers have less money to spend is referred to as

 

87) The most recent economic recession occurred when?

 

88) Components of a consumer’s income consist of

 

89) The total amount of money made in one year by a person, household, or family unit is referred to as ________ income.

 

90) Gross income refers to

 

91) At the U.S. Census Bureau, gross income is referred to as

 

92) In 1970, the typical U.S. household earned about $8,700. In 2016, the typical U.S. household earned about $59,039. If adjusted for inflation, the gross income of the typical U.S. household in 2016 relative to 1970 has

 

93) Approximately what percentage of U.S. households has an annual income between $25,000 and $99,999?

 

94) The money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation is referred to as

 

95) Disposable income refers to

 

96) If taxes rise at a faster rate than incomes, consumers will

 

97) A decline in ________ affects discretionary income and often leads consumers to adjust their spending upwards in other categories.

 

 

98) Changes in ________ have a psychological impact on consumers who tend to spend more when they feel their net worth is rising and postpone purchases when it declines.

 

99) During a recessionary period, which of the following economic behavior would be expected?

 

100) During a recessionary period, which of the following economic behavior would be expected?

 

101) Leah had an excellent year as a salesperson in 2015, earning $98,000. She paid $38,000 for necessities such as mortgage, food, and clothing. Her state and federal income taxes totaled $24,000. What was her disposable income?

 

102) The portion of one’s income that remains after paying for taxes and necessities is referred to as

 

103) Discretionary income refers to

 

104) Income used to buy luxury items, such as a voyage aboard Cunard’s Queen Mary 2, is referred to as

 

105) The Department of Labor monitors consumer expenditures through its annual

 

106) The Department of Labor monitors consumer expenditures through its annual Consumer Expenditure Survey. In the most recent report, consumers spent the largest proportion of their income on which of these?

 

107) Spending on which of the following would be considered discretionary?

 

108) Increases in discretionary income can occur as a result of all of the following except which?

 

109) After paying high taxes and covering the costs of high expenses for necessities, if a consumer’s ________ is still high, she may be able to take advantage of the luxurious vacation travel opportunities like staying at the Ritz Carlton in New York City’s Central Park.

 

110) Miela had an excellent year as a junior auditor in 2018, earning $97,000. She paid $37,000 for necessities such as mortgage, food, and clothing. Her state and federal income taxes totaled $24,000. What was her discretionary income?

 

111) A local pet supplies boutique had a good year with rising revenues and reduced operating costs resulting in personal income for the owner of nearly $150,000. One-third of that went to local, state, and federal income taxes and another third went to pay for a home mortgage, car payments, food, clothing, and other necessities. What is the remaining third called?

 

112) Leigh and Rob prepared a household budget in an attempt to manage their money better. They prepared the following list: Monthly income (after taxes) = $4,500; Monthly expenses (necessities), which include rent, $550; auto loan, $250; student loan, $200; savings, $500; food, $200 = $1,700; Amount left over = $2,800 (income less necessary expenses). The remaining $2,800 is their

 

113) Recently, the number of people who attended music concerts, plays, and other live entertainment increased because they had the ________ to enjoy these activities.

 

114) This year the Shafer family has dined at nice restaurants almost four times a week. Between raises received by Mr. and Mrs. Shafer, their family income rose 11 percent, while the cost of living rose by 4 percent and property taxes went up 5 percent in their community. As a result, the family eats outside the home more often now, compared to dining out only a few times a month a few years ago. This reflects

 

115) Recent data on consumer expenditures indicate that the savings rate of U.S. consumers has

 

116) Inventions or innovations from applied science or engineering research are referred to as

 

117) Technology is defined as

 

1) According to the textbook, JCPenney buys paper for which of the following media?

 

2) Purchasing paper for JCPMedia is one example of

 

3) When JCPMedia buys paper for JCPenney newspaper inserts, it considers suppliers’ forest management and other sustainability practices. JCPMedia buyers consider these as part of the process to

 

4) JCPenney looks at several capabilities when selecting a paper supplier. These organizational buying criteria include on-time delivery, the availability, quality and quantity of selected grades of paper, forestry management and sustainable practices, and price. This examination would be done during the ________ stage of the organizational buying decision process.

 

5) The marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others is referred to as

 

6) Business-to-business marketing refers to

 

7) Manufacturers, wholesalers, retailers, service companies, not-for-profit organizations, and government agencies that buy goods and services for their own use or for resale are referred to as

 

8) Organizational buyers are

 

9) Organizational buyers include manufacturers, wholesalers, retailers, service companies, not-for-profit organizations, and government agencies that

 

10) Which of the following organizational buyers purchases raw materials and parts to reprocess into the finished goods they sell?

 

11) Which of these statements regarding organizational buyers is most accurate?

 

12) All of the following are organizational buyers except which?

 

13) Organizational buyers are divided into three markets, which are

 

14) Which of the following exemplifies an organizational buyer?

 

15) An industrial firm

 

16) A firm that reprocesses a product or service it buys before selling the product again to the next buyer is referred to as

 

17) Mining companies, farms, transportation, and legal services are all examples of companies in the

 

18) Which of the following types of firms are in the industrial market?

 

19) Which of the following is a service business within the industrial market?

 

20) ________ comprise the highest percentage of firms in industrial markets.

 

21) The services market sells diverse services such as legal advice, auto repair, and dry cleaning, and this market represents 75 percent of all industrial firms. Which of the following is another such service firm?

 

22) Corning, Inc., which transforms an exotic blend of materials to create optical fiber capable of carrying much of the telephone traffic in the United States on a single strand, is operating in ________ market.

 

23) Archer Daniels Midland Co. (ADM) is the world’s largest cocoa-bean processor. It buys cocoa beans and converts them into cocoa powder and cocoa butter, which it then sells to companies like Hershey’s that manufacture consumer products containing chocolate. ADM is operating in ________ market.

 

24) Keystone Foods, which invented the individual quick freeze process for beef, provides McDonald’s with millions of pounds of chicken, beef, and fish annually for use in its restaurants. The firm sources the animal proteins from farms and processes them in a variety of ways, such as breading or freezing, before selling them to McDonald’s. Keystone is operating in ________ market.

 

25) Graham-Field Health Products makes hospital beds and wheelchairs from the component parts and materials it buys. It sells these manufactured products to hospitals, nursing homes, and retailers of health care products. Graham-Field Health Products operates in ________ market.

 

26) Wholesalers and retailers that buy physical products and resell them without any reprocessing are referred to as

 

27) Among organizational markets, the reseller market includes

 

28) European Style Furniture (ESF), headquartered in New York, acquires fine furniture from several high quality manufacturers in Europe and enjoys exclusive distribution rights from them to sell to furniture stores throughout the United States. In this context, ESF is most likely classified as

 

29) 1-800 Contacts is based in Draper, Utah, and sells contact lenses manufactured by other well-known companies, including Johnson & Johnson Vision Care, Ciba Vision, Bausch & Lomb, and CooperVision. It would most likely be classified as

 

30) Liberty Medical Supply is a home delivery service that sells diabetes testing supplies, prescription drugs, and other supplies directly to consumers to assist them in the management of their health-related conditions. Since Liberty Medical does not make any changes to the supplies that it obtains from manufacturers, it would most likely be classified as

 

31) In terms of organizational markets, Amazon.com, Lands’ End, and JCPenney would most likely be classified as

 

32) Federal, state, and local agencies that buy products and services for the constituents they serve are referred to as

 

33) When Louisiana State University buys new laptops for its faculty, it is operating as

 

34) When the General Services Administration (GSA), an agency of the federal government, purchased 116 Chevy Volts from General Motors for its vehicle fleet, it was operating as

 

35) The City of Denver contracts with Solid Waste Management to provide trash collection services for its citizens. The city is operating as

 

36) The system that provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA), is referred to as the

 

37) The North American Industry Classification System (NAICS)

 

38) NAICS provides common industry definitions to facilitate the measurement of economic activity for the member countries of the

 

39) The acronym NAICS stands for

 

40) The NAICS provides common industry definitions for

 

41) The NAICS groups economic activity to permit studies of

 

42) The North American Industry Classification System (NAICS) designates industries with a numerical code in a defined structure. A six-digit coding system is used. The first two digits designate

 

43) The North American Industry Classification System (NAICS) designates industries with a numerical code in a defined structure. A six-digit coding system is used. The third digit designates

 

44) The North American Industry Classification System (NAICS) designates industries with a numerical code in a defined structure. A six-digit coding system is used. The fifth digit designates

 

45) Important market characteristics in organizational buying behavior include which of the following?

 

46) Important market characteristics in organizational buying behavior include which of the following?

 

47) Important product or service characteristics in organizational buying include which of the following?

 

48) Important characteristics in organizational buying include which of the following?

 

49) In the organizational buying process, heavy emphasis is placed on which product or service characteristics?

 

50) Important buying process characteristics in organizational buying behavior include which of the following?

 

51) Which of the following statements about marketing mix characteristics in organizational buying behavior is most accurate?

 

52) The demand for industrial products and services that is driven by demand for consumer products and services is referred to as

 

53) Derived demand refers to

 

54) Derived demand means the demand for industrial products and services is driven by, or derived from, the

 

55) During late summer and early fall, there is a large demand for containers in Asia that are used to ship consumer products from Asia to the United States in time for the holiday selling season. The demand for these containers is referred to as ________ demand.

 

56) Airbus manufactures commercial aircraft that it sells to a variety of airlines worldwide. Still, demand for its products often depends on rates of air travel among consumers. Demand for Airbus products is referred to as ________ demand.

 

57) Spruceland Millworks in Canada makes wood pallets for transporting and storing new appliances such as stoves, freezers, and refrigerators. The demand for Spruceland pallets would be classified as

 

58) Concert Staging Co. provides the stage, roof system, lighting, and sound for outdoor concerts and theatrical events. The number of concert and theater events sponsored by various organizations determines how many times the company is hired to provide its services, which often depends on consumer willingness to buy event tickets. Demand for the services provided by Concert Staging Co. is considered

 

59) South Cape Ostrich Tanning (SCOT) is a producer of fine ostrich leathers, which are sold to manufacturers that make a variety of products from shoes to car interiors. Demand for SCOT’s leather is a result of consumer interest in products such as Via La Moda handbags made from this exotic and expensive leather. SCOT has  demand for its product.

 

60) Swiss specialty chemical company Ciba is the primary producer of the chemical triclosan, the antibacterial agent in many household products such as liquid soap. Consumers may have heard about research suggesting environmental and health risks associated with the cumulative effects of antibacterial agents. Changing consumer purchases provide an example of ________ demand for Ciba’s triclosan product.

 

61) Because orders in organizational buying are typically much larger than in consumer buying, buyers must often ________ when the order is above a specific amount, such as $5,000.

 

62) All of the following statements about the purchase involved in organizational buying are true except which?

 

63) Firms marketing consumer products or services often try to reach thousands or millions of individuals or households. Firms selling to organizations

 

64) A business firm buys products and services for one main reason, which is to

 

65) The primary organizational buying objective for business firms is to

 

66) The American Red Cross provides disaster relief, among many other services. As a nonprofit organization, its primary buying objective is to

 

67) Many companies have broadened their buying objectives to include an emphasis on

 

68) The primary reason companies have placed an emphasis on buying from minority- and women-owned suppliers and vendors is

 

69) The objective attributes of the supplier’s products and services and the capabilities of the supplier itself are collectively referred to as

 

70) Organizational buying criteria refer to

 

71) Organizational buying criteria serve the same purpose as ________ criteria used by consumers.

 

72) There are seven commonly used organizational buying criteria. One of them is

 

73) There are seven commonly used organizational buying criteria. One of them is

 

74) To be a Walmart supplier, a firm must be able to deliver its products to Walmart’s distribution centers within a 16-minute window. If the driver arrives before or after the scheduled window, the supplier will be turned away and fined. Walmart’s insistence on choosing a supplier based upon its ability to provide on-time delivery is an example of

 

75) The deliberate effort by organizational buyers to build relationships that shape suppliers’ products, services, and capabilities to fit a buyer’s needs and those of its customers is referred to as

 

76) Supplier development refers to

 

77) When the John Deere Co. employs engineers who work full-time with the company’s suppliers to improve their efficiency and quality and reduce their costs, it is practicing

 

78) Which of the following characterizes organizational buyer-seller relationships?

 

79) Which of the following characterizes organizational buyer-seller relationships?

 

80) The existence of reciprocal arrangements, the long-term contracts, and the buyer-seller relationships that evolve into supply partnerships, are all examples of

 

81) Merrill Lynch and Thompson Financial had a three-year, $1 billion project that put workstations on the desks of 25,000 of Merrill Lynch’s brokers. These machines put the world of investing information at brokers’ fingertips. Thompson, the supplier, was obliged to not only deliver technology and services on time and on budget, but also constantly improve customer-satisfaction levels among Merrill’s brokers and customers. This is an example of

 

82) An industrial buying practice in which two organizations agree to purchase each other’s products and services is referred to as

 

83) In a buyer-seller relationship, reciprocity refers to

 

84) Although not strictly illegal, the U.S. Justice Department frowns on reciprocity because the practice

 

85) Although the U.S. Justice Department frowns on ________ because it restricts the normal operation of a free market, it is still legal for two companies to have an agreement to buy one another’s products.

 

86) If General Motors (GM) agrees to purchases Borg-Warner transmissions, and Borg-Warner agrees to buys trucks and cars from GM, they would be demonstrating which type of buyer-seller interaction?

 

87) A ________ exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer.

 

88) A supply partnership refers to

 

89) A supply partnership exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of

 

90) Milsco Manufacturing has a supply partnership with its buyer Harley-Davidson to provide motorcycle

 

91) Milsco Manufacturing emphasizes

 

92) Apple Inc. custom-orders the microprocessors for its iMac and MacBook from Intel, which works with Apple to minimize costs for each type of chip while maximizing quality, ultimately giving customers good value for their money. This in an examples of a

 

93) Walmart asked that Procter & Gamble (P&G) electronically link to its computerized cash register scanning system, allowing for direct electronic ordering and replenishing for all of its stores. This way, Walmart can tell P&G what merchandise it needs, along with how much, when, and to which store to deliver on a daily basis. Walmart is engaged in

 

94) Purchasing that aims to integrate environmental considerations into all stages of an organization’s buying process with the goal of reducing the impact on human health and the physical environment is referred to as

 

95) Because many companies are concerned with the depletion of natural resources, supply partnerships often include provisions for

 

96) Starbucks purchases from coffee growers located in more than 20 countries. It pays the coffee farmers a fair price for the beans, the coffee is grown in an ecologically sound manner, and Starbucks invests in the farming communities where the coffees are produced. This is an example of

 

97) Starbucks is using its purchasing power to continue its quest to reduce its energy usage. Recently, the company announced plans to replace all of the traditional incandescent and halogen bulbs in its stores worldwide with more efficient light-emitting diode (LED) bulbs—a move the company claims will enable it to cut energy consumption in its stores by up to 7 percent. Starbucks would be considered a leader in

 

98) Recently, Matt Kistler, a senior vice president at Walmart, claimed the company was making progress on achieving three major goals: (1) to be supplied by 100 percent renewable energy, (2) to create zero-waste, and (3) to increase the sale of renewably produced products. Walmart is focusing on

 

99) The decision making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers is referred to as

 

100) Organizational buying behavior is

 

101) In organizations, the buying function involves gathering and screening information about products and services, prices, and suppliers, which are known as

 

102) Organizational buying behavior is similar to consumer behavior in some ways and different in others. Common to both is that they

 

103) Which of the following possible characteristics of consumer buying is least likely to enter into an organizational buying decision?

 

104) Organizational buying behavior is similar to consumer behavior in some ways and different in others. One key difference is that in the organizational buying process,

 

105) The first stage in the organizational buying decision process is

 

106) The sales department’s identification of an improvement made to a competitor’s product would occur during which stage of the organizational buying decision process?

 

107) At which stage of the organizational buying decision process would design and production engineers draft specifications?

 

108) At which stage of the organizational buying decision process would purchasing and engineering personnel visit potential suppliers to assess their facilities, production capability, and quality control?

 

109) At which stage of the organizational buying decision process would purchasing assess the financial status of potential suppliers?

 

110) At which stage of the organizational buying decision process would a firm select a supplier, negotiate terms, and award a contract?

 

111) During the next-to-last stage of the organizational buying decision process, the organization

 

112) Which of the following is indicative of the purchase decision stage of the organizational buying decision process?

 

113) What is the last stage of the organizational buying decision process?

 

114) Comparing the stages in a consumer and organizational purchase decision process reveals key differences. In organizations, the ________ stage is more formal, often involving a vendor rating system.

 

115) Comparing the stages in a consumer and organizational purchase decision process reveals key differences. In organizations, ________ becomes more important for deadlines and quality control, since a long-term relationship is anticipated.

 

116) General Electric manufactures electric motors for its clothes dryers. The firm uses a formal vendor rating system to evaluate suppliers and notify those whose parts did not meet quality standards. If a supplier fails to correct the problem, GE will drop it as a future supplier. Which stage in the organizational buying decision process would GE make this evaluation?

 

117) The group of people within an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision is referred to as the

 

118) A buying center refers to