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BUSI 330 quiz 2 solutions complete answers
BUSI 330 quiz 2 solutions complete answers
The Maslow ________ is based on the idea that motivation comes from a need.
NetJets is a company that offers one-sixteenth or more ownership in a jet plane for a price beginning at $325,000. It gives purchasers privacy, convenience, and flexibility as well as saves them time since the plane is available within four hours unless it's booked by one of the other shareholders. This is most likely an example of
The four largest importers of U.S. products and services are
The estimated cost of economic espionage to firms in the United States is estimated to be
What global market entry strategy allows a company to make the least number of changes in terms of its product, its organization, and even its corporate goals?
In which type of auction is there a downward pressure on bid prices for the buyer's business as more would-be suppliers become involved?
The acronym NAICS stands for
Small businesses benefit from independent __________ like Amazon Business, PlasticsNet, Hospital Network.com, and TextileWeb.
According to the textbook, JCPenney buys paper for which of the following media?
In a buyer-seller relationship, reciprocity refers to
In a __________ situation, users, influencers, or deciders in the buying center want to change product specifications, price, delivery schedule, or suppliers, though the product is largely the same.
Figure 5-4 shows the three buy classes encountered by organizational buyers. A is referred to as a
Figure 5-4 shows the three buy classes encountered by organizational buyers. B is referred to as a
Figure 5-4 shows the three buy classes encountered by organizational buyers. C is referred to as a
Sociocultural influences that affect the consumer purchase decision process include all of the following except which?
All of the following would impact your decision about when to buy an offering except which?
Since global marketing is affected by economic considerations, a scan of the global marketplace should include which of these factors?
The complementary nature of economic flows internationally, whereby imports stimulate exports and vice versa, is called ________ and is one argument for free trade among nations.
Which statement about the World Trade Organization (WTO) is most accurate?
As a firm changes its global market entry strategy from exporting to direct investment, all of these increase except which?
All of these would impact your decision about when to buy an offering except which?
Lifestyle is
Gross domestic product is the
At which stage of the organizational buying decision process would design and production engineers draft specifications?
You need to buy a gift for a young cousin’s birthday. You go to the mall and see a girl wearing a Hello Kitty T-shirt. You remember there is a store in the mall with a lot of Hello Kitty merchandise so you go there and buy a little backpack. When you give it to your cousin, she is very excited. In terms of behavioral learning, seeing the girl with the Hello Kitty shirt was a
Archer only has 30 minutes for lunch, so he typically goes somewhere within a block or two of his building and is careful about what he orders. This is an example of which situational influence in the purchase decision process?
In the VALS framework, consumers motivated by achievement look for products and services that demonstrate success to their peers or to a group to which they aspire. A segment of the achievement-motivated groups, known as __________, have low resources and live in the moment. Although they would like to improve their lives, they have difficulty doing so.
In the Maslow hierarchy of needs, achievement, status, prestige, and self-respect are referred to as __________ needs.
Chrysler Corp. wanted to sell its Jeeps in Japan. The car was priced in U.S. dollars at about $19,000, but when it reached the Japanese car showrooms, its price was over 3,100,000 Japanese yen, and the Japanese could not afford to buy it. Its price was set without regard for the
VALS groups of consumers who are motivated by __________ are those who want to make an impact on their world.
Which problem solving variation would likely be used for winter coats, sheets, movie tickets, or pressure cookers?
Researchers who have studied organizational buying identify three types of buying situations, called __________, which include new buy, modified rebuy, and straight rebuy.
Those behaviors that result from repeated experience and reasoning are referred to as
Russia currently has a limit on pork of 400,000 metric tons annually that can be imported by any country. This restriction would be considered a
Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 6-4 above, “E” refers to which type of strategy?
Figure 6-5 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. Channels within a foreign nation can be very long or surprisingly short. Which letter in the figure represents these channels?
The prominent global market-entry strategy among small-and medium-sized companies is
Coca-Cola, Gillette razors, and Wrigley’s gum are selling virtually the same product in many countries. This is an example of which type of global marketing product/promotion strategy?
Which of the following statements about the World Trade Organization (WTO) is most accurate?
Even though Exxon adapts its gasoline blends for different countries based on climate, the promotion message is unchanged. The wording of that slogan is “__________.”
Which type of auction does Figure 5-6b above represent?
When Trek orders a seat or saddle for one of its models that has a slightly different material for the cover only but the other components are the same as existing saddles used on other bikes, this purchase situation is known as __________.
For e-marketplaces, large companies tend to favor __________ that link them with their network of qualified suppliers and customers.
The department secretary orders pens, copy paper, and printer ink cartridges for the department from the Corporate Express catalog nearly every month. This is an example of a
Question 1 A consumer's subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people are referred to as __________.
Question 2 Based on the stages of the family life cycle, which of the following groups most likely has the largest amount of discretionary income?
Question 3 The Ford Escape Hybrid SUV was the first SUV on the market to be powered by both electricity and gasoline. Ford has targeted not only people who are excited about technology but also those who want to contribute to cleaner air. Ford set a goal to attract 20,000 buyers a year for this SUV. Ford is trying to change consumer attitudes by
Question 4 Figure 44 In Figure 44 above, B represents the __________ influences that can affect the consumer purchase decision process.
Question 5 When strolling through the grocery store, a toddler tells her mother, "Yuck, I don't like peas." Her mother puts down the peas and chooses green beans instead. The role of the little girl in this purchase was that of __________.
Question 6 Another name for the analysis of consumer lifestyles is __________.
Question 7 A person's ability to perceive differences in stimuli is referred to as
Question 8 An attitude refers to
Question 9 An example of a marketerdominated source of information consulted during an external search would include
Question 10 Figure 41 According to Figure 41 above, the point at which you would exchange money for your sandwich of corned beef on rye would be found in stage __________.
Question 11 Many companies have broadened their buying objectives to include an emphasis on
Question 12 Because more and more companies are concerned with the depletion of natural resources, supply partnerships often include provisions for
Question 13 Which of the following types of firms comprises an industrial market?
Question 14 Online trading communities that bring together buyers and supplier organizations to make possible the real time exchange of information, money, products, and services are referred to as
Question 15 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
Question 16 JCPMedia
Question 17 Firms selling consumer products or services often try to reach thousands or millions of individuals or households. Firms selling to organizations
Question 18 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 customer.
Question 19 When prospective buyers observe the bids of others and decide whether or not to increase the bid price, it is called a(n)
Question 20 Most large multistore chain resellers use __________ that are highly formalized and known as buying committees to arrive at buying decisions.
Question 21 A firm's profit potential and control over marketing activities increases as it moves from exporting to direct investment as a global marketentry strategy. But so does the firm's
Question 22 The economic argument for protectionism is that it
Question 23 U.S. appliance manufacturers find that different customs about shopping must be used to determine product design. For instance, people in Northern Europe shop only once a week, so they need bigger refrigerators than Southern Europeans, who shop daily. Furthermore, Northern Europeans insist that freezers should be on the top just as firmly as Southern Europeans insist that freezers should be on the bottom. Consumers in other regions use their appliances differently and have other different product demands. Given this information, you should conclude U.S. appliance manufacturers would be more likely successful if they used a(n) __________ marketing strategy.
Question 24 Mars, America's secondlargest candy company, began doing business in Russia in the late 1980s. The Snickers bar is one of the top selling candies in Russia and is marketed in much the same way as it is in the United States. Mars is most likely a(n) __________ firm.
Question 25 In terms of the global marketplace, there are three primary types of companies: international firms, __________ firms, and transnational firms.
Question 26 The European Union is an economic and political union of __________ member countries located primarily in Europe that have eliminated most barriers to the free flow of goods, services, capital, and labor across their borders.
Question 27 If you wanted to set up a business importing amber jewelry from Latvia to the United States, you would have to plan on paying the U.S. Customs Service roughly 20 percent of the value of the product as a(n) __________.
Question 28 Disney employed a(n) __________ marketing strategy for its Disneyland Paris, particularly when it came to the eateries in the park. These restaurants featured recipes that were revised for local tastes, alcoholic beverages (not permitted in previous parks), and increased outdoor seating.
Question 29 A firm's profit potential and control over marketing activities __________ as it moves from exporting to direct investment as a global marketentry strategy.
Question 30 3M Company executives were perplexed when the company's ScotchBrite floorcleaning product initially produced lukewarm sales in the Philippines. A Filipino employee explained that consumers generally clean floors by pushing coconut shells around with their feet. 3M changed the shape of the pad to a foot and sales soared. 3M changed its product in response to a Filipino __________.
1.
Women make what percentage of new-car buying decisions?
A.
15 percent
B.
30 percent
C.
45 percent
D.
60 percent
E.
80 percent
2.
Women influence what percentage of new car-buying decisions?
A.
15 percent
B.
20 percent
C.
40 percent
D.
60 percent
E.
80 percent
3.
Enlightened carmakers have hired women designers, engineers, and marketing executives to better understand the way women decide to buy new cars. They learned that
A.
meeting the expectations of men during the new-car purchasing process was more difficult than meeting those of women.
B.
men make the majority of new-car purchasing decisions.
C.
women and men think differently about the new-car buying experience.
D.
women care more about quality than men.
E.
men care more about price than women.
4.
Which of the following statements about how women buy new cars today is most accurate?
A.
Women have definite likes or dislikes when buying a new car, but they don't feel comfortable expressing their opinions.
B.
Most women actually enjoy the price negotiation process.
C.
The issue of "speed" is an important factor to men but not really important to women.
D.
Women are more likely to make their new car purchase selection as a result of information provided by a friend or a relative than from promotional information.
E.
Women care more about exterior styles and lines and men are more concerned with cargo space and gas mileage.
5.
Which of the following statements about how women buy cars today is most accurate?
A.
For women, safety is about features that would help survive an accident.
B.
Women have definite likes or dislikes when buying a car, but they don't feel comfortable expressing their opinions.
C.
When it comes to the actual purchase process, women are more adept negotiators than men.
D.
Women care more about exterior styles and lines and men are more concerned with cargo space and gas mileage.
E.
Women usually shop one dealership before making a decision and men usually shop three.
6.
Many automobile dealerships employ a non-negotiable or no-haggle price strategy to sell their cars. A customer who wants to buy a new or used car would pay the posted price. These dealers probably adopted this pricing policy because
A.
the industry was discussing the abandonment of self-regulation practices.
B.
women have an intense dislike of price negotiation, yet still want to buy a car.
C.
many recent immigrants into the United States are not accustomed to negotiation.
D.
women distrust men in general and car salesmen in particular.
E.
a sluggish economy guarantees that negotiations would produce negative profit per vehicle.
7.
The actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions, are referred to as
A.
purchase intentions.
B.
market research.
C.
consumer behavior.
D.
consumer conduct.
E.
purchase protocols.
8.
Consumer behavior refers to
A.
the aspects of a consumer's decision-making processes that cannot be measured.
B.
the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions.
C.
the five stages a buyer passes through in making choices about which product and service to investigate, purchase, and consume.
D.
the mental and social processes related to purchasing that are innate in a person from birth.
E.
those purchasing behaviors that result from (1) repeated experience and (2) reasoning.
9.
Consumer behavior includes the actions a person takes in purchasing services and using products and services, including
A.
the physical effort spent on these actions.
B.
the financial limitations one must overcome to accomplish these actions.
C.
the mental and social processes that come before and after these actions.
D.
the emotional processes that occur during these actions.
E.
the cognitive and attitudinal processes that must be learned to complete these actions.
10.
The five stages a buyer passes through in making choices about which products and services to buy is called the __________.
A.
information decision process
B.
purchase decision process
C.
alternative evaluation process
D.
postpurchase behavior process
E.
problem recognition process
11.
The initial stage in the consumer purchase decision process involves perceiving a difference between a person's ideal and actual situations big enough to trigger a decision. What is this stage called?
A.
postpurchase behavior
B.
alternative evaluation
C.
purchase decision
D.
problem recognition
E.
information search
12.
There are five stages in the consumer purchase decision process. The first stage is __________.
A.
information search
B.
purchase decision
C.
alternative evaluation
D.
opportunity identification
E.
problem recognition
13.
The second stage in the consumer purchase decision process involves searching for information, which may include an internal search and/or an external search. What is this stage called?
A.
postpurchase behavior
B.
alternative evaluation
C.
purchase decision
D.
problem recognition
E.
information search
14.
There are five stages in the consumer purchase decision process. The second stage is __________.
A.
information search
B.
purchase decision
C.
alternative evaluation
D.
opportunity identification
E.
problem recognition
15.
The third stage in the consumer purchase decision process involves evaluating brands in the consideration set based on the evaluative criteria (both objective and subjective) identified during the information search step for the ultimate decision. What is this stage called?
A.
postpurchase behavior
B.
alternative evaluation
C.
purchase decision
D.
problem recognition
E.
information search
16.
There are five stages in the consumer purchase decision process. The third stage is __________.
A.
information search
B.
purchase decision
C.
alternative evaluation
D.
opportunity testing
E.
problem recognition
17.
The fourth stage in the consumer purchase decision process involves deciding from whom to by and when to buy so that the purchase decision can be made. What is this stage called?
A.
postpurchase behavior
B.
alternative evaluation
C.
purchase decision
D.
problem recognition
E.
information search
18.
There are five stages in the consumer purchase decision process. The fourth stage is __________.
A.
information search
B.
purchase decision
C.
alternative evaluation
D.
option testing
E.
problem recognition
19.
The fifth stage in the consumer purchase decision process involves comparing the product or service purchased by buyers with their expectations to determine whether they are either satisfied or dissatisfied. What is this stage called?
A.
postpurchase behavior
B.
alternative evaluation
C.
purchase decision
D.
problem recognition
E.
information search
20.
There are five stages in the consumer purchase decision process. The fifth stage is __________.
A.
information search
B.
purchase decision
C.
alternative evaluation
D.
postpurchase behavior
E.
problem recognition
Figure 4-1
21.
In Figure 4-1 above, A represents which stage of the consumer purchase decision process?
A.
purchase decision
B.
information search
C.
problem recognition
D.
alternative evaluation
E.
option identification
22.
In Figure 4-1 above, B represents which stage of the consumer purchase decision process?
A.
purchase decision
B.
information search
C.
problem recognition
D.
alternative evaluation
E.
financial consideration
23.
In Figure 4-1 above, C represents which stage of the consumer purchase decision process?
A.
purchase decision
B.
information search
C.
problem recognition
D.
alternative evaluation
E.
financial consideration
24.
In Figure 4-1 above, D represents which stage of the consumer purchase decision process?
A.
purchase decision
B.
information search
C.
financial transaction
D.
alternative evaluation
E.
postpurchase behavior
25.
In Figure 4-1 above, E represents which stage of the consumer purchase decision process?
A.
purchase decision
B.
information search
C.
financial transaction
D.
alternative evaluation
E.
postpurchase behavior
26.
According to Figure 4-1 above, the point at which you would exchange money for your sandwich of corned beef on rye would be found in stage __________.
A.
A
B.
B
C.
C
D.
D
E.
E
27.
Perceiving a difference between a person's ideal and actual situations that is big enough to trigger a decision is called
A.
problem recognition.
B.
alternative evaluation.
C.
cognitive dissonance.
D.
routine response behavior.
E.
postpurchase behavior.
28.
During the consumer purchase decision process, an individual at the __________ stage will perceive differences between his or her ideal and actual situations big enough to trigger a decision.
A.
problem recognition
B.
alternative evaluation
C.
cognitive dissonance
D.
information search
E.
postpurchase behavior
29.
When Aurelia looked in her closet and said, "I don't have anything to wear to the party this weekend," she seems to be in which stage of the consumer purchase decision process?
A.
purchase decision
B.
alternative evaluation
C.
information search
D.
problem recognition
E.
postpurchase behavior
30.
When the marketing student said, "It's really hard for me to get to class on time without a car," she was entering which stage of the consumer purchase decision process?
A.
purchase decision
B.
alternative evaluation
C.
information search
D.
problem recognition
E.
postpurchase behavior
31.
Jamie goes shopping with a friend and notices her friend's durable ripstop nylon wallet. She thinks of her own worn wallet and realizes she needs a new one. In which stage of the consumer purchase decision process was Kristi when she had this realization?
A.
information search
B.
problem recognition
C.
purchase behavior
D.
alternative evaluation
E.
pre-purchase cognition
32.
Glow Pets, from the makers of Pillow Pets, are a light-up pillow product designed for young children. The pillows are colorful animals that produce a soft light for 20 minutes at a time and were produced for children with a fear of the dark. As a result, the company aired some ads on various TV programs showing children being comforted and sleeping restfully with a Glow Pet, making parents and kids alike desire such a situation. The content of the advertising's message most likely focuses on which stage of the consumer purchase decision process?
A.
problem recognition
B.
information search
C.
alternative evaluation
D.
purchase decision
E.
postpurchase behavior
33.
Amanda plans to go for a run after her classes are over. As she is lacing up her running shoes, she notices that one of the shoe's seams is unraveling and she thinks it is about time for a new pair. In which stage of the consumer purchase decision process is Amanda at that moment?
A.
information search
B.
problem recognition
C.
purchase behavior
D.
alternative evaluation
E.
prepurchase cognition
34.
In marketing, advertisements or salespeople can activate a consumer's purchase decision process by
A.
creating a sense of fear or guilt.
B.
manipulating a customer's want into a need.
C.
promising product attributes that exceed the actual product potential.
D.
showing the shortcomings of competing (or currently owned) products.
E.
shifting the consumer's focus from internal search to external search.
35.
Scanning your memory for previous experiences with products or brands occurs during which stage of the consumer purchase decision process?
A.
information search
B.
purchase decision
C.
alternative evaluation
D.
postpurchase behavior
E.
problem recognition
36.
Which stage in the consumer purchase decision process suggests criteria to use for the purchase, yields brand names that might meet the criteria, and develops consumer value perceptions?
A.
problem recognition
B.
information search
C.
alternative evaluation
D.
purchase decision
E.
postpurchase evaluation
37.
"Which brand of smartphone does my roommate own?" would be a question asked during the __________ stage in the consumer purchase decision process.
A.
problem recognition
B.
alternative evaluation
C.
information search
D.
purchase decision
E.
comparison
38.
In which stage in the consumer purchase decision process would a consumer ask, "How much can I afford to spend on a new 42" LED HDTV?"
A.
problem recognition
B.
alternative evaluation
C.
purchase decision
D.
evaluation
E.
information search
39.
You have determined you want to buy an advanced hybrid vehicle, and a visit to Ford's website has revealed that the Ford Fusion Hybrid SE uses hybrid fuel technology with the latest in lithium-ion battery technology. You are currently in which stage of the consumer purchase decision process for this type of automobile?
A.
problem recognition
B.
needs analysis
C.
purchase decision
D.
information search
E.
postpurchase evaluation
40.
Scanning your memory for previous experiences with products or brands is called
A.
problem recognition.
B.
alternative evaluation.
C.
cognitive dissonance.
D.
internal search.
E.
external search.
41.
A(n) __________ in the consumer purchase decision process occurs when consumers scan their memories for previous experiences with products or brands.
A.
problem recognition
B.
internal search
C.
external search
D.
purchase task
E.
antecedent state
42.
When an elementary school teacher was returning to school in the fall, she wanted to buy markers and craft paper. She remembered the discount website she visited last year for her purchases, so she'll start there to see if the website still carries the items previously purchased. What term best describes the information search method used by the teacher?
A.
personal external source
B.
public external source
C.
market-dominated external source
D.
internal search
E.
market-dominated internal source
43.
Casey's girlfriend will celebrate her birthday next week, so he needs to buy her a gift. He remembers the brand of watch that she wears and considers if she would like a new one by the same maker. This is an example of what part of the consumer purchase decision process?
A.
recollection search
B.
external search
C.
evaluative criteria
D.
antecedent states
E.
internal search
44.
Bob's best friend Mike turns 25 next week. Bob decided to purchase Mike a tablet device/e-book reader as a present. Because Bob has purchased three personal computers and other consumer electronic devices over the past five years, he scanned his memory for various brand options. This is an example of what part of the consumer purchase decision process?
A.
recollection search
B.
external search
C.
evaluative criteria
D.
antecedent states
E.
internal search
45.
A mother of two toddlers would primarily use an internal search of her prior experiences with products and brands when purchasing
A.
a gift for her babysitter.
B.
an iPhone.
C.
disposable diapers.
D.
a swing set.
E.
a weekend getaway.
46.
Julie is an avid mystery reader and her babysitter Tina has been borrowing some of her books over the summer. When Tina's birthday approaches, Julie wants to buy her a good mystery. When Julie was trying to recall her favorite mystery authors, she was engaged in
A.
problem recognition.
B.
an internal search.
C.
an external search.
D.
a purchase task.
E.
the precognition of an antecedent state.
47.
A(n) __________ for information is needed when past experience or knowledge is insufficient, the risk of making a wrong purchase decision is high, and the cost of gathering information is low.
A.
external search
B.
cognitive search
C.
alternative search
D.
internal search
E.
postpurchase search
48.
An external search for product information is likely to occur when
A.
the cost of gathering information is low.
B.
review of past experience provides adequate information.
C.
the risk of making a wrong purchase decision is low.
D.
the item is frequently purchased.
E.
the item is for personal use rather than for professional use.
49.
When past experience is insufficient, the risk of making a wrong decision is high, and the cost of gathering information is low, a consumer is more likely to use an __________ for information.
A.
internal search
B.
informal search
C.
expert directed search
D.
external search
E.
experiential search
50.
Emily wants to purchase a tablet device. She is unsure about what hardware and apps she will need. As a result, she has begun asking for advice from her friends and relatives. In addition, she has talked to several salespeople at Apple and Best Buy and has looked at some websites, such as HP and Dell. Emily is engaging in
A.
problem recognition.
B.
an internal search.
C.
an external search.
D.
a purchase task.
E.
the creation of an antecedent state.
51.
Nico wants to buy a new digital camera for his semester studying abroad but he knows very little about cameras himself, having never owned one. As a result, he has begun asking for advice from friends and relatives. In addition, he has talked to a salesperson at a Wolf camera shop and Best Buy and has looked at some websites. Nico is engaging in
A.
problem recognition.
B.
an internal search.
C.
the purchase decision.
D.
an external search.
E.
the creation of an antecedent state.
52.
Relatives and friends whom the consumer trusts are known as __________ sources of external information.
A.
relational
B.
marketer-dominated
C.
personal
D.
stakeholder
E.
public
53.
When conducting an information search, various product-rating organizations, such as government agencies and TV consumer programs, are known as
A.
relational sources.
B.
marketer-dominated sources.
C.
personal sources.
D.
public sources.
E.
stakeholder sources.
54.
An example of a public source of information consulted during an external search would include
A.
advertising.
B.
relatives.
C.
salespeople.
D.
friends.
E.
product-rating organizations.
55.
An example of a public source of information consulted during an external search would include
A.
People magazine advertising.
B.
Consumer Reports magazine.
C.
a sales person at the Apple Store.
D.
your brother-in-law.
E.
a point of purchase display at Target.
56.
There are various nonprofit publications dedicated to assisting in consumer education and decision-making. Examples of these public sources of information for an external information search include Consumer Reports, __________, and TV consumer programs.
A.
advertisements
B.
sales personnel
C.
friends and relatives
D.
government agencies
E.
point of purchase displays
57.
Sources of external information that originate with the sellers of products and services and include advertising, company websites, salespeople, and point-of-purchase displays in stores are referred to as
A.
relational sources.
B.
public sources.
C.
personal sources.
D.
stakeholder sources.
E.
marketer-dominated sources.
58.
An example of a marketer-dominated source of information consulted during an external search would include
A.
previous ownership of a product.
B.
a Better Business Bureau rating.
C.
a product display in a retail store.
D.
a consumer program on talk radio.
E.
your mother.
59.
An example of a marketer-dominated source of information consulted during an external search would include
A.
personal experience.
B.
salespeople.
C.
consumer programs on talk radio stations.
D.
friends and relatives.
E.
Consumer Reports magazine.
60.
An example of a marketer-dominated source of information consulted during an external search would include
A.
advertising.
B.
personal experience.
C.
Consumer Reports magazine.
D.
consumer programs on talk radio stations.
E.
friends and relatives.
61.
Which of the following is NOT an example of a marketer-dominated source of information consulted during an external search?
A.
advertising
B.
point-of-purchase displays
C.
Consumer Reports magazine
D.
company salespeople
E.
company websites
62.
The alternative evaluation stage clarifies the problem for the consumer by __________, yielding brand names that might meet the criteria, and developing the consumer value perception that each alternative presents.
A.
evaluating particular products
B.
selecting the type of purchase outlet
C.
suggesting criteria to use for the purchase
D.
minimizing cognitive dissonance
E.
establishing a purchase timeline
63.
The alternative evaluation stage clarifies the problem for the consumer by suggesting criteria to use for the purchase, __________, and developing consumer value perceptions.
A.
evaluating particular products
B.
selecting the type of purchase outlet
C.
establishing a purchase timeline
D.
minimizing cognitive dissonance
E.
yielding brand names that might meet the criteria
64.
The alternative evaluation stage clarifies the problem for the consumer by suggesting criteria to use for the purchase, yielding brand names that might meet the criteria, and __________.
A.
developing consumer value perceptions
B.
evaluating particular products
C.
selecting the type of retail outlet
D.
establishing a purchase timeline
E.
creating a hierarchy of needs
65.
Sanaa recently made partner at her law firm, and she is rewarding herself with the purchase of the new car. She told a coworker, "The Volvo has nine airbags but the Cadillac drives so smoothly." Sanaa is currently in which stage of the purchase decision process?
A.
problem recognition
B.
information search
C.
alternative evaluation
D.
purchase decision
E.
postpurchase evaluation
66.
The objective and subjective attributes of a brand that consumers use to compare different products and brands are referred to as
A.
temporal states.
B.
antecedent states.
C.
information sources.
D.
evaluative criteria.
E.
the consideration set.
67.
Evaluative criteria refer to
A.
the objective and subjective attributes of a brand consumers use to compare different products and brands.
B.
those attributes of a brand that are based exclusively on objective criteria in order to make an unbiased purchase decision.
C.
those attributes of a brand that are based exclusively on subjective criteria in order to avoid postpurchase anxiety.
D.
the attributes of a product that a manufacturer wishes to promote to a specific target market.
E.
a list of required product attributes from which a customer will not waver regardless of additional incentives.
68.
Which of the following statements concerning evaluative criteria is most accurate?
A.
If the alternatives in a consideration set do not meet the requirements of the evaluative criteria, the entire decision process is usually discontinued.
B.
Consumers often have several criteria for evaluating a single product.
C.
Evaluative criteria represent objective rather than subjective attributes.
D.
Evaluative criteria represent subjective rather than objective attributes.
E.
Ultimately, the most important evaluative criterion is price.
69.
When purchasing a tablet device, factors a consumer considers prior to purchase are called __________, which represent both the objective attributes of a brand and the subjective ones used to compare different products and brands.
A.
points of difference
B.
informational alternatives
C.
buying-decision choices
D.
evaluative criteria
E.
consumer attributes
70.
The Ford Fusion Hybrid SE uses hybrid fuel technology with the latest in lithium-ion battery technology to deliver more power, convenience, prestige, and fuel economy than non-hybrid cars. These attributes listed for the Ford Fusion Hybrid SE are those that consumers may consider when assessing the car. If they do, these attributes would be considered
A.
points of difference.
B.
informational alternatives.
C.
evaluative criteria.
D.
competitive advantages.
E.
consumer attributes.
71.
The group of brands a consumer would consider acceptable from among all the brands in the product class of which he or she is aware, is referred to as
A.
evaluative set.
B.
evolved set.
C.
consideration set.
D.
alternative selection group.
E.
aspiration group.
72.
A consideration set refers to
A.
the group of brands a consumer would consider acceptable from among all the brands in the product class of which he or she is aware.
B.
the group of generic brands that a consumer would reluctantly consider acceptable.
C.
the group of brands of which a consumer is aware.
D.
all possible competitive product substitutes that may satisfy a consumer's needs regardless of the product class.
E.
those product alternatives a consumer has considered, including those deemed unacceptable.
73.
BMW StreetCarver was a $495 skateboard that featured BMW's technology in its wheel suspension, which stabilizes the board's sleek design and allows for greater control around sharp curves. BMW wanted its skateboard to be within the consideration set of potential skateboard buyers. In this case, it most likely focused on
A.
reducing the postpurchase dissatisfaction that may result from purchasing its product.
B.
making sure its representatives attend sporting events such as ESPN's X-Games to get new product ideas.
C.
making appeals directed towards motivational ego needs.
D.
explaining the stability and control aspects of the StreetCarver in its advertising messages.
E.
creating personality profiles for skateboarders.
Figure 4-2
74.
Figure 4-2 above shows the recent ratings from independent rating agencies for selected smartphone brands and models. A number of factors are listed, such as price, display, audio quality, and text messaging. These factors are the typical __________ for smartphones.
A.
consideration sets
B.
evaluative criteria
C.
value propositions
D.
quality considerations
E.
core benefits
75.
Figure 4-2 above shows the recent ratings from independent rating agencies for selected smartphone brands and models. The columns each show a brand like Apple, Blackberry, HTC, LG, Motorola, and Samsung. These brands are referred to as the __________ when consumers use these smartphone ratings to evaluate the products.
A.
consideration set
B.
evaluative criteria
C.
points of difference
D.
value propositions
E.
core benefits
76.
Figure 4-2 above shows the recent ratings from independent rating agencies for selected smartphone brands and models for Verizon customers. Which smartphone seems to have the highest rating (EXCLUDING price considerations)?
A.
Apple iPhone 6
B.
Blackberry Z 30
C.
HTC One
D.
LG G2
E.
Motorola Droid Razor
77.
According to Figure 4-2 above, which of the following brands would be the best choice if the consideration set for a smartphone included the following rank-ordered evaluative criteria: (1) display, (2) audio quality, (3) battery, and (4) price?
A.
Apple iPhone 6
B.
Blackberry Z 30
C.
Samsung Galaxy S 5
D.
LG G2
E.
HTC One
78.
Once a consumer has completed the alternative evaluation stage of the consumer purchase decision process, two choices remain, which are
A.
which product to buy and how to pay for it.
B.
whether to buy one or several if a BOGO deal is offered and how to pay for them.
C.
from whom to buy and when to buy.
D.
which product to buy and whether to tell others about the purchase.
E.
whether to buy in person or online and whether to tell others about the purchase.
79.
All of the following would impact your decision about when to buy an offering EXCEPT:
A.
the manufacturer is currently offering a $25 rebate.
B.
you don't have the money now and don't get paid until Friday.
C.
the product is on sale.
D.
the store is closing in 10 minutes.
E.
the retailer's return policy is very relaxed.
80.
Charlie was standing outside of his classroom talking on the phone when a friend heard him say, "Thank you for taking my call so quickly. I'd like to order the 32-gigabyte iPad. I'll pick it up today at the Southdale Apple Store. Can I use the easy pay plan?" Charlie was in which stage of the consumer purchase decision process?
A.
problem recognition
B.
alternative evaluation
C.
information search
D.
purchase decision
E.
postpurchase evaluation
81.
At the __________ of the consumer purchase decision process, a consumer compares the product with his or her expectations and is either satisfied or dissatisfied.
A.
problem recognition stage
B.
information search stage
C.
alternative evaluation stage
D.
purchase decision stage
E.
postpurchase stage
82.
Sensitivity to consumers' consumption or use experience, whether they are satisfied or dissatisfied, is extremely important in their __________.
A.
consideration set assessment
B.
prepurchase behavior
C.
evaluative criteria selection
D.
value perceptions
E.
information search
83.
Firms such as General Electric (GE), Johnson & Johnson, Coca-Cola, and British Airways focus their attention on __________ to maximize customer satisfaction and retention in part by offering training to handle complaints, answer questions, and solve consumer problems.
A.
value perception
B.
postpurchase behavior
C.
non-competitive pricing
D.
comparison pricing
E.
prepurchase behavior
84.
Claire has just told her best friend, "I'm so glad I bought the Samsung Galaxy S5 rather than those other smartphones I was considering. Look at this incredible display, and the battery stays charged forever." Which stage of the consumer purchase decision process does Claire's conversation identify?
A.
problem recognition
B.
information search
C.
alternative evaluation
D.
purchase decision
E.
postpurchase behavior
85.
Customer satisfaction is an important focus for marketers because
A.
marketing research is an expensive proposition; the fewer times it needs to be done, the better off the company is.
B.
the financial value of a satisfied, loyal customer over time can be significant.
C.
consumers are unable to assess it by themselves.
D.
attracting new customers is easier than keeping old ones.
E.
a 50 percent increase in customer retention can increase a company's profits by 5 percent.
86.
Firms like Ford and Frito-Lay have learned which of the following marketing lessons?
A.
It is a lot easier to find new customers than to retain existing ones.
B.
According to research, it is equally costly to acquire new customers and retain existing ones.
C.
Existing customers do not spend as much as new customers since that former like the old products rather than the new ones new customers like.
D.
The buying experience, customer satisfaction, and retention can increase a firm's profits.
E.
Unless a marketing promotion to retain customer loyalty can increase market share by at least 5 percent, it is not worth the expenditure.
87.
The feeling of postpurchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives is referred to as
A.
angst.
B.
the temporal state.
C.
the dissociative state.
D.
selective perception.
E.
cognitive dissonance.
88.
Cognitive dissonance refers to
A.
feelings of guilt for purchasing a product or service that was not consistent with a consumer's moral or ethical beliefs.
B.
feelings of discomfort associated with purchasing something purely for the sake of prestige.
C.
the feeling of postpurchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives.
D.
feelings of discontent after a purchase has been made when the product fails to perform up to expectations.
E.
feelings of discontent before a purchase has been made when the customer finds out that he or she paid more for the product than necessary.
89.
Rackspace U.S. Inc. is a web hosting company. That means that if you want to have a website, you could buy not only Internet space from it but also technical support and design services. When its ad tells you that its users consider Rackspace "the risk-free host because it offers dedicated and helpful support any time day or night," you know that Rackspace is most likely trying to do which of the following?
A.
identify its core values
B.
reduce new buyers' cognitive dissonance
C.
increase new buyers' cognitive dissonance
D.
produce a consideration set
E.
evoke problem recognition
90.
You have just purchased a Samsung Galaxy Tab 2 tablet device. As you head home from the store, you brood about whether your choice was right or whether you should have bought an Apple iPad mini after seeing an ad for it on TV. This is most likely an example of
A.
indecisiveness.
B.
cognitive dissonance.
C.
postpurchase stress.
D.
market anxiety.
E.
extended problem solving.
91.
How would consumers who purchased a new and innovative Nike LeBron X basketball shoe for $315 try to reduce any cognitive dissonance they feel?
A.
limit their information search to an internal one
B.
minimize problem solving involvement
C.
read ads for the new basketball shoe even after the purchase has been made
D.
conceal the product purchase from others
E.
If the shoe is comfortable and gives the requisite support, there will be no cognitive dissonance.
92.
Stephan was excited about his newly purchased laptop. It had all the features he wanted, and was really fast with a great display for his gaming. In addition, the $1,200 price tag was reasonable. The same day he took it out of the box, he saw an online special for a similar computer, on sale for only $1,000. Suddenly he began to doubt his purchase decision, and worried that maybe he hadn't gotten such a good deal. Stephan was most likely experiencing
A.
limited problem solving.
B.
cognitive dissonance.
C.
selective discord.
D.
product conflict.
E.
product uncertainty.
93.
The personal, social, and economic significance of the purchase to the consumer, which is known as the level of __________, may cause him or her to skip or minimize one or more stages in the consumer purchase decision process.
A.
aspiration
B.
cognitive dissonance
C.
motivation
D.
situational influences
E.
involvement
94.
Involvement refers to
A.
the external influences that affect a consumer's purchase.
B.
the personal, social, and economic significance of the purchase to the consumer.
C.
the level of difficulty involved in making a purchase.
D.
the total number of people involved in the actual exchange process.
E.
the time, energy, and personal investment that will be required to use a product.
95.
High-involvement purchases typically have which of the following sets of characteristics?
A.
The item is inexpensive, widely available, or simple to use.
B.
The item is inexpensive, very safe to use, or purchased with great frequency.
C.
The item is expensive, new to the market, or recommended by influential personal sources.
D.
The item is expensive, can have serious personal consequences, or could reflect on one's social image.
E.
The item is inexpensive, new to the market, or is used for over five years.
96.
For high-involvement purchases, consumers typically do all of the following EXCEPT:
A.
spend considerable time evaluating criteria for the consideration set.
B.
participate in word-of-mouth communication.
C.
evaluate a single product attribute, such as price.
D.
consider many brands.
E.
use both internal and external sources in information search.
97.
NetJets is a company that offers 1/16 or more ownership in a jet plane for a price beginning at $325,000. It gives purchasers privacy, convenience, and flexibility as well as saves them time since the plane is available within four hours unless it's booked by one of the other shareholders. This is most likely an example of
A.
a medium-involvement purchase that involves limited problem solving.
B.
a high-involvement purchase that involves routine problem solving.
C.
a high-involvement purchase that involves extended problem solving.
D.
a low-involvement purchase that involves limited problem solving.
E.
a low-involvement purchase that involves extended problem solving.
98.
Which of the following product or service is an example of a low-involvement purchase?
A.
a Louis Vuitton designer handbag
B.
a Trek bicycle
C.
membership into a local country club
D.
a vacation to Italy
E.
Biolage shampoo
99.
Lexi wants to find the perfect gift for her older sister's college graduation. She started looking for the gift last month and expects to spend another couple of weeks to find a gift her sister will use and like. Lexi is engaging in
A.
routine problem solving.
B.
limited problem solving.
C.
extended problem solving.
D.
problem recognition.
E.
integrated problem solving.
100.
In __________, consumers typically seek only a few information sources about several sellers and their brands, and may identify and evaluate several criteria or attributes for each brand that eventually will comprise the consideration set.
A.
limited problem solving
B.
extended problem solving
C.
short-term problem solving
D.
routine problem solving
E.
relational problem solving
101.
Which problem solving variation would likely be used for clothing, sheets, towels, or electric can openers?
A.
routine response behavior
B.
limited problem solving
C.
extended problem solving
D.
simulated selection
E.
integrated problem solving
102.
Which problem solving variation would typically be used for blenders, a restaurant for lunch, or professional ball game tickets?
A.
routine response behavior
B.
extended problem solving
C.
simulated selection
D.
integrated problem solving
E.
limited problem solving
103.
Elizabeth has decided to purchase a new electric juicer and plans to call several friends for the latest information about alternative brands. She is not concerned about where she buys it as long as she receives a very liberal return policy should anything go wrong. In making her decision, Elizabeth will engage in which of the following problem solving variations?
A.
limited problem solving
B.
extended problem solving
C.
routine problem solving
D.
alternative problem solving
E.
integrated problem solving
104.
Danilo has decided to purchase a new video game console, not having owned one before. He calls his gamer friends for recommendations about alternative brands and options. He has few concerns about the purchase but wants a quick rundown of the most important aspects to consider. In making his decision, Danilo seems likely to engage in which of the following problem solving variations?
A.
limited problem solving
B.
extended problem solving
C.
routine problem solving
D.
alternative problem solving
E.
integrated problem solving
105.
Consumers spend little time and effort evaluating alternatives in the purchase of table salt and milk. The consumer purchase decision process for such staples involves __________, which is virtually a habit and typifies low-involvement decision-making.
A.
limited problem solving
B.
extended problem solving
C.
situational problem solving
D.
rational problem solving
E.
routine problem solving
106.
Which problem solving variation would normally be used to purchase items such as cereal or laundry detergent?
A.
limited problem solving
B.
extended problem solving
C.
routine problem solving
D.
situational problem solving
E.
integrated problem solving
107.
Jenn needed to have another set of keys made for her apartment so she went to Home Depot to have it done since she remembered her dad going there. This is an example of
A.
limited problem solving.
B.
extended problem solving.
C.
situational problem solving.
D.
routine problem solving.
E.
integrated problem solving.
108.
Between classes, many college students stop at conveniently located vending machines for their favorite candy bars and soft drinks. Their choices are generally made quickly and with little or no effort to consider alternative product offerings. These college students are most likely involved in __________ problem solving purchase situations.
A.
limited
B.
routine
C.
extensive
D.
intensive
E.
unlimited
Figure 4-3
109.
In Figure 4-3 above, column A represents which of the following in terms of consumer involvement and product knowledge?
A.
consideration set
B.
routine problem solving
C.
limited problem solving
D.
extended problem solving
E.
integrated problem solving
110.
In Figure 4-3 above, column B represents which of the following in terms of consumer involvement and product knowledge?
A.
consideration set
B.
routine problem solving
C.
limited problem solving
D.
extended problem solving
E.
integrated problem solving
111.
In Figure 4-3 above, column C represents which of the following in terms of consumer involvement and product knowledge?
A.
routine problem solving
B.
limited problem solving
C.
extended problem solving
D.
simulated selection
E.
integrated problem solving
112.
Which of the following is a strategy for a market leader (rather than a market challenger) when marketing a low-involvement product?
A.
use sales promotion such as free samples, coupons, and rebates to encourage trial of their brand
B.
link their brand attributes with high-involvement issues
C.
use Internet search engines such as Google to assist buyers
D.
use advertising messages that focus on getting the brand into a consumer's consideration set
E.
use repetitive advertising messages that reinforce a consumer's knowledge or assure buyers they made the right choice
113.
The purchase of bottled water is a low-involvement purchase. How can a market leader like Perrier keep people buying its brand instead of one of the numerous other brands displayed on retailers' shelves?
A.
avoid Perrier brand stockouts on retailers' shelves
B.
make the purchase decision a high-involvement one
C.
offer coupons for Perrier bottled water
D.
convince retailers to offer only Perrier water
E.
denigrate its competition
114.
Which of the following is NOT a strategy used by marketers of high-involvement offerings?
A.
use personal selling to provide consumers with information
B.
use social media to create online experiences for the brand
C.
avoid stockout situations so that buyers don't substitute a competing brand
D.
use Internet search engines such as Google to assist buyers
E.
run ads to provide consumers with information
115.
Five influences can have an impact on a consumer's purchase decision process, which are purchase task, social surroundings, physical surroundings, temporal effects, and antecedent states. These are referred to as
A.
marketing mix influences.
B.
situational influences.
C.
psychological influences.
D.
sociocultural influences.
E.
evaluative criteria.
116.
Situational influences refer to
A.
the five aspects of the purchase situation that impact the consumer purchase decision process: purchase task, social surroundings, physical surroundings, temporal effects, and antecedent states.
B.
the temporary impediments to a consumer's purchase decision.
C.
psychological concepts that are useful for interpreting buying processes and directing marketing efforts.
D.
the feelings of postpurchase anxiety that can arise from a number of different factors including social surroundings, physical surroundings, psychological effects, and precedent states.
E.
both the objective and subjective attributes a consumer uses to compare different products and brands.
117.
All of the following are five situational influences can have an impact on a consumer's purchase decision process EXCEPT:
A.
physical surroundings.
B.
purchase task.
C.
temporal effects.
D.
consumer socialization.
E.
antecedent states.
118.
Five situational influences have an impact on a consumer's purchase decision process. They are: __________, social surroundings, physical surroundings, temporal effects, and antecedent states.
A.
competitive offerings
B.
core values
C.
perception
D.
consumer socialization
E.
purchase task
119.
When a man picks up a bottle of wine and tells the sales clerk, "I'm taking this to a dinner party tonight," which situational influence is being demonstrated?
A.
purchase task
B.
social surroundings
C.
physical surroundings
D.
temporal effects
E.
antecedent states
120.
Five situational influences have an impact on a consumer's purchase decision process. They are: purchase task, __________, physical surroundings, temporal effects, and antecedent states.
A.
competitive offerings
B.
motivation
C.
core values
D.
brand loyalty
E.
social surroundings
121.
Consumers accompanied by children
A.
purchase twice as much as they normally would if shopping with other adults.
B.
purchase about 40 percent more than when shopping alone.
C.
purchase 40 less than they normally would if shopping with their spouses.
D.
spend 40 percent less than when shopping alone.
E.
spend exactly the same amount as when shopping alone.
122.
Three teenage girls spent an hour at a store trying on various outfits, looking at possible combinations, and asking each other, "How do you think this looks on me?" This situation is most closely related to which of the following situational influences?
A.
purchase task
B.
social surroundings
C.
physical surroundings
D.
temporal effects
E.
antecedent states
123.
Five situational influences have an impact on a consumer's purchase decision process. They are: purchase task, social surroundings, __________, temporal effects, and antecedent states.
A.
competitive offerings
B.
physical surroundings
C.
core values
D.
motivation
E.
economic effects
124.
Which of the following is NOT part of the physical surroundings of a retail store that can influence how purchase decisions are made?
A.
decor
B.
crowding
C.
lighting
D.
music
E.
time of day
125.
The crowded aisles in retail stores at holiday time may cause some shoppers to lose patience and decide on their purchases with far less thought than they otherwise would due to being "harried" and uncomfortable. This situation is most closely related to which of the following situational influences?
A.
purchase task
B.
social surroundings
C.
physical surroundings
D.
temporal effects
E.
spatial surroundings
126.
Five situational influences have an impact on a consumer's purchase decision process. They are: purchase task, social surroundings, physical surroundings, __________, and antecedent states.
A.
competitive offerings
B.
core values
C.
motivation
D.
temporal effects
E.
economic effects
127.
Temporal effects include
A.
the purpose of the purchase.
B.
the presence of other people.
C.
the time of day of the purchase.
D.
the crowding in retail stores.
E.
the consumer's mood while engaged in the purchase.
128.
Many consumers buy a subscription to The Wall Street Journal and have it delivered to their homes by 5:30 a.m. so that they can read it during breakfast. This purchase is an example of which situational influence?
A.
purchase task
B.
social surroundings
C.
physical surroundings
D.
temporal effects
E.
antecedent states
129.
Rob only has 30 minutes off for lunch, so he typically goes somewhere within a block or two of his building, and is careful about what he orders. This is an example of which situational influence in the purchase decision process?
A.
purchase task
B.
social surroundings
C.
physical surroundings
D.
temporal effects
E.
antecedent states
130.
Consumers with credit cards
A.
are less influenced by physical surrounding than those who pay by cash or check.
B.
are influenced to a certain extent by a retailer's physical surroundings to buy more with their credit cards than with cash.
C.
purchase more than those who purchase with cash or debit cards.
D.
purchase less than those who purchase with cash or debit cards.
E.
purchase less when accompanied by children than when in the company of other adults.
131.
The American Floral Council used an ad that showed three flower arrangements varying in size from a single rose to a very large elaborate arrangement. The caption simply read, "Just how mad is she?" This ad relies on which of the following situational influences for its effectiveness?
A.
purchase task
B.
social surroundings
C.
physical surroundings
D.
psychological effects
E.
antecedent states
Figure 4-4
132.
In Figure 4-4 above, A represents the __________ influences that can affect the consumer purchase decision process.
A.
economic
B.
situational
C.
psychological
D.
sociocultural
E.
marketing mix
133.
In Figure 4-4 above, B represents the __________ influences that can affect the consumer purchase decision process.
A.
economic
B.
situational
C.
environmental
D.
marketing mix
E.
market dominated
134.
In Figure 4-4 above, C represents the __________ influences that can affect the consumer purchase decision process.
A.
sociocultural
B.
economic
C.
environmental
D.
situational
E.
market dominated
135.
In Figure 4-4 above, D represents the __________ influences that can affect the consumer purchase decision process.
A.
economic
B.
situational
C.
psychological
D.
sociocultural
E.
marketing mix
136.
In Figure 4-4 above, E represents the
A.
consumer purchase decision process.
B.
organizational buying decision process.
C.
marketing research process.
D.
marketing program.
E.
consumer socialization process.
137.
Sociocultural influences that affect the consumer purchase decision process include all of the following EXCEPT:
A.
personal influence.
B.
reference groups.
C.
family.
D.
culture and subculture.
E.
values, beliefs, and attitudes.
138.
The energizing force that stimulates behavior to satisfy a need is referred to as a(n)
A.
personality.
B.
antecedent state.
C.
motivation.
D.
cognitive dissonance.
E.
perception.
139.
Motivation refers to
A.
the stimulus required to cause a consumer to do something uncharacteristic of himself.
B.
the energizing force that stimulates behavior to satisfy a consumer need.
C.
a person's consistent behaviors or responses to recurring situations.
D.
the way people see themselves and the way they believe others see them.
E.
a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.
140.
Which list below presents the Maslow hierarchy of needs in its correct order, beginning with the lowest level need and moving up to the highest level need?
A.
personal, social, physiological, psychological, and safety
B.
physiological, safety, social, personal, and self-actualization
C.
safety, physiological, safety, self-actualization, and personal
D.
self-actualization, social, safety, physiological, and personal
E.
safety, personal, self-actualization, physiological, and social
141.
In the Maslow hierarchy of needs, those needs which are basic to survival and which must be satisfied first are referred to as
A.
physiological needs.
B.
safety needs.
C.
social needs.
D.
personal needs.
E.
self-actualization needs.
142.
In the Maslow hierarchy of needs, water, food, and oxygen would be considered __________ needs.
A.
psychological
B.
safety
C.
social
D.
personal
E.
physiological
143.
In the Maslow hierarchy of needs, __________ needs involve self-preservation as well as physical and financial well-being.
A.
physiological
B.
social
C.
personal
D.
safety
E.
self-actualization
144.
In the Maslow hierarchy of needs, a burglar alarm would satisfy a __________ need.
A.
physiological
B.
safety
C.
social
D.
personal
E.
self-actualization
145.
An ad for Conesco's life insurance asks the question, "How do you plan on supporting your family after you pass away?" The ad shows a tombstone with a sign that offers the face of the stone as ad space. The ad is intended to appeal to which of the Maslow hierarchy of needs?
A.
physiological needs
B.
safety needs
C.
social needs
D.
personal needs
E.
self-actualization needs
146.
In the Maslow hierarchy of needs, those needs that are concerned with love and friendship are referred to as __________ needs.
A.
physiological
B.
safety
C.
social
D.
personal
E.
self-actualization
147.
eHarmony claims to be the world's most trusted online dating website. Its appeal is to satisfy consumers' __________ needs in the Maslow hierarchy of needs.
A.
physiological
B.
personal
C.
interaction
D.
social
E.
psychological
148.
In the Maslow hierarchy of needs, those needs that are represented by the need for achievement, status, prestige, and self-respect are referred to as __________ needs.
A.
physiological
B.
safety
C.
personal
D.
social
E.
self-actualization
149.
In the Maslow hierarchy of needs, those needs involving personal fulfillment are called __________.
A.
physiological
B.
safety
C.
social
D.
personal
E.
self-actualization
150.
In the Maslow hierarchy of needs, the most basic needs are physiological, followed by safety, social, and personal. What category of needs is at the highest level?
A.
intellectual needs
B.
emotional needs
C.
self-actualization needs
D.
religious needs
E.
psychological needs
151.
An Acura automobile ad is headlined by a quote from Henry David Thoreau, "Go in the Direction of Your Dreams." This ad is most likely to appeal to consumer's __________ needs in the Maslow hierarchy of needs.
A.
physiological
B.
personal
C.
psychological
D.
social
E.
self-actualization
152.
The long-running U.S. Army recruiting advertisement that invited enlistees to "Be All You Can Be" appeals to which Maslow hierarchy of needs level?
A.
physiological needs
B.
self-actualization needs
C.
safety needs
D.
social needs
E.
personal needs
Figure 4-5
153.
According to Figure 4-5 above, A defines what level in the Maslow hierarchy of needs?
A.
physiological
B.
safety
C.
social
D.
personal
E.
self-actualization
154.
According to Figure 4-5 above, B defines what level in the Maslow hierarchy of needs?
A.
physiological
B.
safety
C.
social
D.
personal
E.
self-actualization
155.
According to Figure 4-5 above, C defines what level in the Maslow hierarchy of needs?
A.
physiological
B.
safety
C.
social
D.
personal
E.
self-actualization
156.
According to Figure 4-5 above, D defines what level in the Maslow hierarchy of needs?
A.
physiological
B.
safety
C.
social
D.
personal
E.
self-actualization
157.
According to Figure 4-5 above, E defines what level in the Maslow hierarchy of needs?
A.
physiological
B.
safety
C.
social
D.
personal
E.
self-actualization
158.
Self-fulfillment in the Maslow hierarchy of needs is an example of the highest-order needs referred to as
A.
physiological needs.
B.
social needs.
C.
safety needs.
D.
personal needs.
E.
self-actualization needs.
159.
Status in the Maslow hierarchy of needs is an example of a __________ need.
A.
self-actualization
B.
personal
C.
social
D.
safety
E.
physiological
160.
Friendship in the Maslow hierarchy of needs is an example of a __________ need.
A.
self-actualization
B.
personal
C.
social
D.
safety
E.
physiological
161.
Shelter in the Maslow hierarchy of needs is an example of a __________ need.
A.
self-actualization
B.
personal
C.
social
D.
safety
E.
physiological
162.
Food in the Maslow hierarchy of needs is an example of a __________ need.
A.
self-actualization
B.
personal
C.
social
D.
safety
E.
physiological
Figure 4-5
163.
Figure 4-5 above depicts the Maslow __________.
A.
motivation for preservation
B.
products pyramid
C.
hierarchy of needs
D.
ladder of effects
E.
psychosocial influences
164.
Considering Figure 4-5 above, a college education would be found in what level of the Maslow hierarchy of needs?
A.
physiological
B.
self-actualization
C.
personal
D.
safety
E.
social
165.
Considering Figure 4-5 above, carrying an American Express Centurian Card would be found in what level of the Maslow hierarchy of needs?
A.
physiological
B.
self-actualization
C.
personal
D.
safety
E.
social
166.
Considering Figure 4-5 above, Chanel No. 5 fragrances would be found in what level of the Maslow hierarchy of needs?
A.
physiological
B.
self-actualization
C.
personal
D.
safety
E.
social
167.
According to Figure 4-5 above, State Farm insurance products would be found in what level of the Maslow hierarchy of needs?
A.
physiological
B.
self-actualization
C.
personal
D.
safety
E.
social
168.
According to Figure 4-5 above, an apartment would be found in what level of the Maslow hierarchy of needs?
A.
physiological
B.
self-actualization
C.
personal
D.
safety
E.
social
169.
A person's consistent behaviors or responses to recurring situations is referred to as
A.
motivation.
B.
core values.
C.
culture.
D.
perception.
E.
personality.
170.
Personality refers to
A.
the attitudes that determine how people spend their time and resources and what they consider important.
B.
the way people see themselves and others.
C.
the process by which an individual selects, organizes, and interprets information to create a meaningful ideal self.
D.
a person's consistent behaviors or responses to recurring situations.
E.
those qualities that either attract or repel other members of a person's personal, social, or professional environment.
171.
Which of the following statements about personality is most accurate?
A.
Personality is dynamic and typically changes several times as a person matures.
B.
Most personality traits are inherited or formed at an early age.
C.
Personality is the energizing force that makes consumer behavior purposeful.
D.
Most personality traits are formed during adulthood and don't change thereafter.
E.
People with compliant personalities prefer lesser known brand names.
172.
Enduring characteristics within a person or in his or her relationship with others are referred to as a(n) __________.
A.
key trait
B.
persona
C.
self-concept
D.
core value
E.
ideal self
173.
The way people see themselves and the way they believe others see them is referred to as
A.
self-evaluation.
B.
self-concept.
C.
self-actualization.
D.
individualized perception.
E.
personal perception.
174.
Self-concept refers to
A.
the degree to which a person is influenced by situational influences.
B.
the need for personal fulfillment.
C.
the way people see themselves and the way they believe others see them.
D.
the degree to which a person trusts his or her own judgment in a purchase situation.
E.
the way people see others and the way they believe others see other people.
175.
Marketers recognize that people have an actual self-concept and __________.
A.
a persona determined by their peers
B.
a persona determined by psychology
C.
an abstract self-concept
D.
an ideal self-concept
E.
an inconsistent self-concept
176.
When the state of Virginia touts the slogan "Virginia is for Lovers," it is trying to appeal to people's __________ in order to attract them as potential residents, part of its workforce, or vacationers.
A.
self-concept
B.
individualized perception
C.
self-evaluation
D.
self-actualization
E.
personal perception
177.
The process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world is referred to as __________.
A.
motivation
B.
attitude formation
C.
learning
D.
perception
E.
a self-concept
178.
Perception refers to
A.
a person's consistent behaviors or responses to recurring situations.
B.
a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.
C.
the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.
D.
seeing or hearing messages without being aware of them.
E.
the way people see themselves and the way they believe others see them.
179.
A filtering of exposure, comprehension, and retention is called __________.
A.
selective attention
B.
selective perception
C.
selective intuition
D.
selective retention
E.
stimulus discrimination
180.
Because the average consumer operates in a complex environment, the human brain attempts to organize and interpret information with a process referred to as
A.
selective retention.
B.
selective attention.
C.
selective exposure.
D.
selective perception.
E.
stimulus discrimination.
181.
A palindrome is a word or phrase that reads the same whether read from the right or from the left (e.g., madam). Originally, Marshall had never recalled hearing the term. However, when he read about palindromes for his English class, he saw three examples of the term within a matter of days. This is most likely the result of
A.
selective retention.
B.
selective attention.
C.
selective intuition.
D.
stimulus discrimination.
E.
selective perception.
182.
The tendency to pay attention to messages consistent with one's attitudes and beliefs and to ignore messages that are inconsistent with them is referred to as
A.
selective retention.
B.
selective comprehension.
C.
selective exposure.
D.
selective perception.
E.
stimulus discrimination.
183.
Selective exposure is most likely to occur during which stage of the consumer purchase decision process?
A.
information search
B.
purchase decision
C.
alternative evaluation
D.
postpurchase behavior
E.
problem recognition
184.
Because Marla was so strongly committed to a fat-free diet, she did not bother to read a recent report by the New England Journal of Medicine suggesting that some fat in our diet is healthy. The report was in a newspaper that Marla reads daily, but the headline did not appeal to her as the result of
A.
selective retention.
B.
selective comprehension.
C.
selective exposure.
D.
selective perception.
E.
stimulus discrimination.
185.
Interpreting information so that it is consistent with one's attitudes and beliefs is referred to as
A.
selective retention.
B.
selective comprehension.
C.
selective exposure.
D.
selective analysis.
E.
stimulus discrimination.
186.
Prexa was offended by the brand name of a new product for women. She believed the name of the product was demeaning and that it reflected a negative attitude of the manufacturer towards women in general. Although this may simply be the result of __________, if other women interpreted the name choice the same way, it is likely this product would fail.
A.
selective retention
B.
selective comprehension
C.
selective exposure
D.
selective analysis
E.
stimulus discrimination
187.
As a result of __________, consumers do not remember all the information they see, read, or hear, even minutes after exposure to it.
A.
selective retention
B.
selective comprehension
C.
selective exposure
D.
selective perception
E.
subliminal discrimination
188.
Selective retention is most likely to occur during which stage of the consumer purchase decision process?
A.
information search
B.
purchase decision
C.
alternative evaluation
D.
postpurchase behavior
E.
problem recognition
189.
Retailers can reduce problems associated with selective retention by
A.
hiring well-known celebrities to sponsor their products.
B.
adding more end-aisle and other point-of-purchase displays throughout the store.
C.
providing brochures for consumers to take home.
D.
adopting advertising campaigns that use bright colors and a new selection of popular background music.
E.
offering extended service warranties.
190.
If you read the chapters from your marketing textbook the night before this test and still could not remember several of the correct marketing terms to do well on the exam, this may be the result of
A.
selective retention.
B.
selective comprehension.
C.
selective exposure.
D.
selective perception.
E.
subliminal perception.
191.
The process of seeing or hearing messages without being aware of them is referred to as
A.
selective retention.
B.
subliminal perception.
C.
selective perception.
D.
selective attention.
E.
indifference.
192.
Subliminal perception refers to
A.
the process of seeing or hearing messages without being aware of them.
B.
a person's innate ability to read non-verbal cues like body language and facial expressions.
C.
the ability of a person to understand the allegorical meanings behind words, sentences, or paragraphs communicated in writing or speech.
D.
the process of being brainwashed to the point of acting in a way that is contrary to or inconsistent with ones normal behavior.
E.
the inability of a person to communicate due to lack of background knowledge or experience.
193.
A movie theater owner embedded brief messages during trailers before showing the feature film. The messages, which flashed on the screen for such a short time that moviegoers were not consciously aware of them, urged consumers to "Drink Coke" and to "Eat Popcorn," encouraging them to visit the snack lobby. Research has shown what about such messages?
A.
Selective perception overrides advertising messages.
B.
Selective exposure is difficult for marketers to surmount.
C.
Subliminal messages have limited effects on behavior.
D.
Subliminal perception enables marketers to motivate consumers to take an action.
E.
Subliminal messages were deemed illegal by the Federal Trade Commission at the time these were shown in the movie theater.
194.
Which of the following statements about subliminal perception is most accurate?
A.
The Federal Communications Commission (FCC) believes that subliminal perception can be effective with a large majority of consumers.
B.
Subliminal messages are illegal in the United States.
C.
Subliminal messages are more effective now due to the advances in computer-generated images in movies and TV programs.
D.
About half of U.S. consumers think that subliminal messages can cause them to buy products and services they don't want.
E.
The use of subliminal messaging is monitored by the Better Business Bureau.
Subliminal Book Cover Photo
195.
The book cover photo above for The Secret Sales Pitch: An Overview of Subliminal Advertising is about subliminal messages, which reflect which kind of potential influence on the consumer decision-making process?
A.
sociocultural
B.
situational
C.
psychological
D.
acculturational
E.
attitudinal
196.
The anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences is referred to as
A.
a negative antecedent state.
B.
perceived risk.
C.
temporal uncertainty.
D.
spatial uncertainty.
E.
a positive precedent state.
197.
Perceived risk is
A.
an unmerited fear of being taken advantage of in an exchange situation.
B.
the feeling of postpurchase psychological tension or anxiety that consumers may experience when faced with two or more highly attractive alternatives.
C.
the degree to which a seller is willing to make an exchange based upon a customer's credit worthiness.
D.
the personal, social, and economic significance of the purchase to the consumer.
E.
the anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences.
198.
The fear of physical harm, the size of financial outlay required to buy the product, product performance, and even the lack of approval of friends can all contribute to
A.
consumer angst.
B.
cognitive dissonance.
C.
purchase anxiety.
D.
perceived risk.
E.
consumer cynicism.
199.
All of the following are marketing strategies designed to reduce consumers' perceived risk and encourage purchases EXCEPT:
A.
securing endorsements from influential people.
B.
providing warranties and guarantees.
C.
providing free trials of the product.
D.
giving extensive usage instructions.
E.
using subliminal advertising.
200.
When Clorox uses the Good Housekeeping Seal for its Fresh Step cat litter, its strategy is to reduce a consumer's __________ and encourage purchases.
A.
consumer angst
B.
cognitive dissonance
C.
perceived risk
D.
purchase anxiety
E.
consumer cynicism
201.
When Kia Motors offers a 10-year, 100,000-mile warranty for its Kia Soul automobile, its strategy is to reduce consumers' __________ and encourage purchases.
A.
behavioral learning
B.
cognitive learning
C.
brand loyalty
D.
perceived risk
E.
postpurchase dissonance
202.
Kendall was excited to begin her new job after she graduated from college. Which of the following purchases would most likely have the greatest perceived risk for her the day before she begins the job?
A.
a subscription to The Wall Street Journal
B.
an outfit for her first day
C.
a new coffee maker
D.
flowers to decorate her new apartment
E.
running shoes
203.
Those behaviors that result from repeated experience and reasoning is referred to as
A.
psychosocial edification.
B.
acculturation.
C.
attitudinal identification.
D.
wisdom.
E.
learning.
204.
Learning refers to
A.
content that has been transferred from short-term to long-term memory.
B.
those behaviors that result from repeated experience and reasoning.
C.
the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.
D.
a consumer's subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people.
E.
a predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.
205.
The process of developing automatic responses to a situation built up through repeated exposure to it is referred to as ___________.
A.
perceptual learning
B.
retentive learning
C.
functional learning
D.
motivated learning
E.
behavioral learning
206.
All of the following variables are central to how consumers learn from repeated experience EXCEPT:
A.
purchase.
B.
reinforcement.
C.
response.
D.
drive.
E.
cue.
207.
You are sleepy before your 8:00 a.m. class and you notice the Starbucks on the walk to school. You stop for a drink, and purchase something new that you really enjoy. The next day you do the same, and soon this has become a habit. This process is an example of
A.
cognitive learning.
B.
the scientific method.
C.
behavioral learning.
D.
attitude formation.
E.
cognitive dissonance.
208.
Recall the famous experiment when Dr. Pavlov presented salivating dogs with food at the same time he rang a bell. Eventually, when Pavlov only rang the bell, the dogs would still salivate even though food was not presented. What consumer behavior principle was involved in this research?
A.
cognitive learning
B.
the scientific method
C.
behavioral learning
D.
attitude formation
E.
cognitive dissonance
209.
In behavioral learning, a need that moves an individual to action is a(n) __________.
A.
drive
B.
cue
C.
attitude
D.
response
E.
reinforcement
210.
One evening while watching TV, your stomach growls. You see an ad for Subway. You walk to the Subway shop and buy a sandwich, which tastes great. In terms of behavioral learning, your hunger is a __________.
A.
reinforcement
B.
cue
C.
response
D.
prompt
E.
drive
211.
In behavioral learning, a(n) __________ is a stimulus or symbol perceived by consumers.
A.
drive
B.
cue
C.
attitude
D.
response
E.
reinforcement
212.
While watching TV one evening, your stomach growls. You see an ad for Subway. You walk to the Subway shop and buy a sandwich, which tastes great. In terms of behavioral learning, seeing a TV ad for Subway is a __________.
A.
drive
B.
reinforcement
C.
cue
D.
response
E.
prompt
213.
You need to buy a gift for a young cousin's birthday. You go to the mall and see a girl wearing a Hello Kitty t-shirt. You remember there is a store in the mall with a lot of Hello Kitty merchandise so you go there and buy a little backpack. When you give it to your cousin, she is very excited. In terms of behavioral learning, seeing the girl with the Hello Kitty t-shirt was a __________.
A.
drive
B.
reinforcement
C.
cue
D.
response
E.
prompt
214.
In behavioral learning, a __________ is the action taken by a consumer to satisfy a drive.
A.
cue
B.
demotivator
C.
motivator
D.
response
E.
stimulus
215.
While watching TV one evening, your stomach growls. You see an ad for Jimmy John's. You walk to Jimmy John's and buy a sandwich, which tastes great. In terms of behavioral learning, walking to the sandwich shop and buying a sandwich is a __________.
A.
drive
B.
response
C.
reinforcement
D.
cue
E.
prompt
216.
You need to buy a gift for a young cousin's birthday. At the mall you see a girl wearing a Hello Kitty t-shirt. You remember there is a store nearby with a lot of Hello Kitty merchandise so you go there and buy a little backpack. When you give it to your cousin, she is very excited. In terms of behavioral learning, your purchase at the Hello Kitty store was a __________.
A.
drive
B.
response
C.
reinforcement
D.
cue
E.
prompt
217.
In behavioral learning, a __________ is the reward that is given to a consumer.
A.
cue
B.
stimulus
C.
motivator
D.
response
E.
reinforcement
218.
If a consumer tries a new coffee drink at Starbuck and hates it, which variable of behavioral learning has been ineffective?
A.
reinforcement
B.
achievement
C.
drive
D.
cue
E.
response
219.
While watching TV one evening, your stomach growls. You see an ad for Subway. You walk to the Subway shop and buy a sandwich, which tastes great. In terms of behavioral learning, the great taste of the sandwich is a(n) __________.
A.
reinforcement
B.
achievement
C.
drive
D.
cue
E.
response
220.
When a response elicited by one stimulus becomes applicable to another stimulus, it is called
A.
selective comprehension.
B.
selective retention.
C.
stimulus generalization.
D.
stimulus discrimination.
E.
routine problem solving.
221.
If McNeil Consumer Healthcare uses the same brand name for different products such as Tylenol Cold and Flu and Tylenol P.M. based on behavioral learning theory, this strategy is an example of
A.
stimulus generalization.
B.
selective comprehension.
C.
selective retention.
D.
stimulus discrimination.
E.
routine problem solving.
222.
Which of the following is a concept from behavioral learning theory that marketers use?
A.
selective comprehension.
B.
selective retention.
C.
stimulus generalization.
D.
cognitive dissonance.
E.
routine problem solving.
223.
A person's ability to perceive differences in stimuli is referred to as
A.
selective comprehension.
B.
selective retention.
C.
stimulus generalization.
D.
stimulus discrimination.
E.
routine problem solving.
224.
Consumers' ability to perceive taste differences in chocolate bars is an example of
A.
cognitive dissonance.
B.
stimulus discrimination.
C.
selective retention.
D.
selective comprehension.
E.
stimulus generalization.
225.
Elsa contends that she can taste the difference between fat-free cheeses and those with its regular fat content. Elsa is exhibiting
A.
cognitive dissonance.
B.
selective retention.
C.
stimulus discrimination.
D.
selective comprehension.
E.
stimulus generalization.
226.
Edison noticed that prices at a new video game rental website were lower than those at most of the other gaming websites or retail stores such as Game Stop. He is exhibiting
A.
cognitive dissonance.
B.
selective retention.
C.
selective comprehension.
D.
stimulus discrimination.
E.
stimulus generalization.
227.
Comparative advertising, in which one brand is compared to another, is intended to cause consumers to perceive differences between the products featured in the advertising. Marketers who employ comparative advertising are trying to use __________ to make consumers believe that their products are better than competitors' offerings.
A.
cognitive dissonance
B.
selective retention
C.
selective comprehension
D.
stimulus generalization
E.
stimulus discrimination
228.
Making connections between two or more ideas or simply observing the outcomes of others' behaviors and adjusting one's own behavior accordingly is known as what type of learning?
A.
stimulus discrimination
B.
cognitive learning
C.
attitudinal learning
D.
stimulus generalization
E.
behavioral learning
229.
When Betty Crocker repeatedly advertises that a cake baked from one of its mixes tastes just like homemade, it is influencing which type of learning?
A.
stimulus discrimination
B.
brand loyalty
C.
cognitive learning
D.
stimulus generalization
E.
behavioral learning
230.
Advertising explains that the drug Plavix works by preventing plaque buildup in arteries that can cause heart attack and stroke. This is an example of
A.
using a cognitive learning technique.
B.
using a behavioral learning technique.
C.
reducing perceived risk.
D.
creating stimulus generalization.
E.
using an attitudinal learning technique.
231.
The back of a box of Hinode Harvest Blend rice mix suggests cooking with chicken broth for added flavor. This is an example of
A.
using a behavioral learning technique.
B.
reducing perceived risk.
C.
creating stimulus generalization.
D.
using a cognitive learning technique.
E.
using an attitudinal learning technique.
232.
Research has found that for many products, including soft drinks, coffee, and cosmetics, consumers are unable to distinguish among brands in blind tests (i.e., taste or other use of the products without labels). Nonetheless, even when prices are similar, consumers have strong preferences for specific brands. They may buy out of habit, which is the basis of
A.
extended problem solving.
B.
limited problem solving.
C.
routine problem solving.
D.
high-involvement problem solving.
E.
personal problem solving.
233.
A favorable attitude toward and consistent purchase of a single brand over time is referred to as
A.
stimulus generalization.
B.
attitudinal discrimination.
C.
brand loyalty.
D.
behavioral loyalty.
E.
consumer allegiance.
234.
Brand loyalty refers to
A.
the group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is aware.
B.
a favorable attitude toward and consistent purchase of a single brand over time.
C.
a formalized agreement of a vendor to carry one brand over another because it views the quality of that brand to be superior to all others.
D.
the willingness of consumers to try a new brand in a brand line based upon their satisfaction with other brands in the line.
E.
the faith that other products manufactured by the same company with the same brand name will be of the same quality.
235.
Which of the following statements about brand loyalty is most accurate?
A.
Learning has little effect on brand loyalty because most habits are instinctual.
B.
Brand loyalty increases the perceived risk associated with impulse purchases.
C.
The incidence of brand loyalty is steadily rising in North America.
D.
Brand loyalty results from the positive reinforcement of previous actions.
E.
The best way to enhance brand loyalty is to brand all new products with the same brand name.
236.
A learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way is referred to as a(n) __________.
A.
attitude
B.
belief
C.
value
D.
motivation
E.
perception
237.
An attitude refers to
A.
a person's consistent behaviors or responses to recurring situations.
B.
the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.
C.
a consumer's subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people.
D.
the feelings one has about the preferable modes of conduct that tend to persist over time.
E.
a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.
238.
If you hold a personal value of thriftiness, then you probably will have a favorable __________ toward automobiles with good fuel economy.
A.
belief
B.
value
C.
attitude
D.
motivation
E.
perception
239.
Which of the following statements is FALSE about attitudes?
A.
Marketers are primarily concerned with American core values when developing advertising messages.
B.
Attitudes are learned.
C.
Attitudes are shaped by one's values and beliefs.
D.
An attitude results in responses that are consistently favorable or unfavorable way.
E.
Personal values affect attitudes by influencing the importance assigned to specific product attributes.
240.
A consumer's subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people are referred to as __________.
A.
values
B.
attitudes
C.
beliefs
D.
predispositions
E.
opinions
241.
Beliefs refer to
A.
a person's consistent behaviors or responses to recurring situations.
B.
a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.
C.
the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.
D.
a consumer's subjective perception of how a product or brand performs on different attributes.
E.
the moral and ethical precepts that guide a person's behavior.
242.
Marketers use three approaches to try to change consumer attitudes toward products and brands: (1) __________; (2) changing the perceived importance of attributes; and (3) adding new attributes to the product.
A.
reinforcing the consumers' sense of self confidence in making wise purchase decisions
B.
actively educating consumers about the product's competitive advantages
C.
refocusing a consumer's attention from one attribute to another
D.
changing beliefs about the extent to which a brand has certain attributes
E.
denigrating the attributes of competitors' products
243.
Marketers use three approaches to try to change consumer attitudes toward products and brands: (1) changing beliefs about the extent to which a brand has certain attributes; (2) __________; and (3) adding new attributes to the product.
A.
reinforcing the consumers' sense of self confidence in making wise purchase decisions
B.
actively educating consumers about the product's competitive advantages
C.
changing the perceived importance of attributes
D.
refocusing a consumer's attention from one attribute to another
E.
denigrating the attributes of competitors' products
244.
Marketers use three approaches to try to change consumer attitudes toward products and brands: (1) changing beliefs about the extent to which a brand has certain attributes; (2) changing the perceived importance of attributes; and (3) __________.
A.
reinforcing the consumers' sense of self confidence in making wise purchase decisions
B.
adding new attributes to the product
C.
refocusing a consumer's attention from one attribute to another
D.
actively educating consumers about the product's competitive advantages
E.
denigrating the attributes of competitors' products
245.
What attitude change approach did Colgate marketers use to encourage consumers to purchase its product when it began to include the antibacterial agent triclosan in its product?
A.
changing beliefs about the extent to which a brand has certain attributes
B.
changing the perceived importance of attributes
C.
adding new attributes to the product
D.
providing free trials of the new product
E.
obtaining a seal of approval to reduce consumers' risk and encourage purchases
246.
Most people already know that Tums, a popular antacid, contains calcium. Today, ads for Tums stress both the fact that it can be used as a calcium supplement and the health benefits of calcium. The new promotion involves changing consumers' attitudes toward Tums by
A.
changing beliefs about the extent to which Tums has a specific attribute.
B.
changing the perceived importance of a specific attribute.
C.
adding a new attribute.
D.
reducing the perceived risk.
E.
providing stimulus generalization to prospective buyers.
247.
The Ford Escape Hybrid SUV was the first SUV on the market to be powered by both electricity and gasoline. Ford has targeted not only people who are excited about technology but also those who want to contribute to cleaner air. Ford set a goal to attract 20,000 buyers a year for this SUV. Ford is trying to change consumer attitudes by
A.
changing beliefs about the extent to which a brand has a specific attribute.
B.
changing the perceived importance of a specific attribute.
C.
adding a new attribute.
D.
reducing the perceived risk of the product.
E.
providing stimulus generalization to prospective buyers.
248.
Pepsi-Cola made "freshness" an important product attribute when it stamped freshness dates on its cans. Prior to doing so, few consumers considered freshness an issue for soft drinks. Pepsi is trying to change consumers' attitudes toward its soft drinks by
A.
changing beliefs about the extent to which a brand has a specific attribute.
B.
changing the perceived importance of a specific attribute.
C.
adding a new attribute.
D.
reducing perceived risk.
E.
providing stimulus generalization.
249.
A mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them is referred to as
A.
culture.
B.
psychographics.
C.
social class.
D.
lifestyle.
E.
reference group.
250.
Lifestyle refers to
A.
the set of behaviors that is a result of spending one's time and money as one pleases.
B.
a mode of living that is defined by one's personal moral philosophy.
C.
the similar values, interests, and behaviors that members of society share.
D.
a self-defined identification of belonging to a lower, lower-middle, middle, upper-middle, or upper class in terms of values, attitudes, and beliefs.
E.
a mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them.
251.
Another name for the analysis of consumer lifestyles is __________.
A.
demographics
B.
psychographics
C.
social statistics
D.
physiological needs
E.
sociographics
252.
Which of the following statements about psychographics is most accurate?
A.
Psychographics is unable to provide actionable information about potential customers since the data obtained from the research is too subjective to be reliably interpreted and acted upon.
B.
Although helpful in segmenting markets, psychographics is limited in its ability to target consumers.
C.
Psychographics combines demographic data, psychological data, and actual spending data of consumers to create VALS profiles.
D.
Psychographics combines psychology, lifestyle, and demographics to uncover consumer motivations for buying and using offerings.
E.
Psychographic data is extremely vulnerable to current social trends and therefore is best suited to new market-product combinations rather than existing ones.
253.
The VALS framework is an example of
A.
a personality assessment.
B.
cognitive learning theory.
C.
a psychographic system.
D.
a study on the hierarchy of needs.
E.
geodemographic segmentation.
254.
The VALS framework segments consumers is based on
A.
their primary motivation for buying products and their resources.
B.
their demographics.
C.
their product usage, age, and gender.
D.
where they live.
E.
their media usage and their demographics.
255.
Which of the following statements about the VALS framework is FALSE?
A.
Consumers are inspired by one of three primary motivations - ideals, achievement, and self-expression - that give meaning to their self or the world and govern their activities.
B.
Consumers are motivated to buy products and services and seek experiences that give shape, substance, and satisfaction to their lives.
C.
The VALS framework seeks to explain why and how consumers make purchase decisions.
D.
The VALS framework identifies eight consumer segments.
E.
A consumer's gender and age have a direct effect on placement within a VALS consumer segment.
256.
In the VALS framework, a person's resources include all of the following EXCEPT:
A.
material
B.
physical
C.
temporal
D.
psychological
E.
demographic
257.
VALS groups of consumers motivated by __________ are those who are guided by knowledge and principle.
A.
ideals
B.
achievement
C.
self-expression
D.
rewards
E.
success
258.
In the VALS framework, consumers motivated by ideals are guided by knowledge and principle. One segment of the two ideals-motivated groups, known as __________, includes mature, reflective, and well-educated people who value order, knowledge, and responsibility.
A.
Makers
B.
Believers
C.
Thinkers
D.
Survivors
E.
Achievers
259.
In the VALS framework, those consumers who are practical and deliberate information-seekers, and who value durability and functionality in products over styling and newness are called
A.
Experiencers.
B.
Achievers.
C.
Believers.
D.
Thinkers.
E.
Innovators.
260.
In the VALS framework, consumers motivated by ideals are guided by knowledge and principle. One segment of the two Ideals-motivated groups, known as __________, have fewer resources and are conservative, conventional people with concrete beliefs based on traditional, established codes such as family, religion, community, and the nation.
A.
Experiencers
B.
Believers
C.
Makers
D.
Achievers
E.
Thinkers
261.
In the VALS framework, consumers motivated by ideals are guided by knowledge and principle. __________ choose familiar products and brands, favor American-made products, and are generally brand loyal.
A.
Believers
B.
Thinkers
C.
Makers
D.
Experiencers
E.
Achievers
262.
VALS groups of consumers motivated by __________ are those who look for products and services that demonstrate success to their peers or to a peer group they aspire to.
A.
ideals
B.
achievement
C.
self-expression
D.
rewards
E.
success
263.
In the VALS framework, consumers who are looking for products and services that demonstrate success to their peers or to a peer group they aspire to are called a(n)
A.
ideals-motivated group.
B.
rewards-and-success-motivated group.
C.
self-expression-motivated group.
D.
achievement-motivated group.
E.
high-and-low-resource group.
264.
In the VALS framework, consumers motivated by achievement look for products and services that demonstrate success to their peers or to a peer group they aspire to. One segment of the two achievement-motivated groups, known as __________, have a busy, goal-directed lifestyle and a deep commitment to career and family. Image is important to them.
A.
Experiencers
B.
Believers
C.
Makers
D.
Achievers
E.
Thinkers
265.
In the VALS framework, consumers who favor established, prestige products and services and are interested in time-saving devices given their hectic schedules are called
A.
Thinkers.
B.
Believers.
C.
Strivers.
D.
Experiencers.
E.
Achievers.
266.
In the VALS framework, consumers motivated by achievement look for products and services that demonstrate success to their peers or to a peer group they aspire to. A segment of the achievement-motivated groups, known as __________, are trendy, fun-loving, and less self-confident than Achievers.
A.
Strivers
B.
Experiencers
C.
Believers
D.
Makers
E.
Survivors
267.
In the VALS framework, achievement-motivated consumers who have a lower levels of education and household income than Achievers are called __________.
A.
Believers
B.
Experiencers
C.
Strivers
D.
Makers
E.
Survivors
268.
VALS groups of consumers who are motivated by __________ are those who desire social or physical activity, variety, and risk.
A.
ideals
B.
rewards
C.
achievement
D.
self-expression
E.
success
269.
In the VALS framework, consumers motivated by self-expression desire social or physical activity, variety, and risk. One segment of the two self-expression-motivated groups, known as __________, are young, enthusiastic, and impulsive consumers who become excited about new possibilities but are equally quick to cool.
A.
Experiencers
B.
Believers
C.
Makers
D.
Achievers
E.
Thinkers
270.
In the VALS framework, consumers who spend much of their income on fashion, entertainment, socializing, offerings that make them look good, and have a desire for the latest things are called
A.
Believers.
B.
Experiencers.
C.
Strivers.
D.
Makers.
E.
Thinkers.
271.
In the VALS framework, consumers whose energy finds outlets in exercise, sports, outdoor recreation, and social activities are referred to as __________.
A.
Believers
B.
Strivers
C.
Achievers
D.
Makers
E.
Experiencers
272.
In the VALS framework, consumers motivated by self-expression desire social or physical activity, variety, and risk. One segment of the two self-expression-motivated groups, known as __________, express themselves and experience the world by working on it - growing vegetables or fixing a car.
A.
Strivers
B.
Experiencers
C.
Believers
D.
Makers
E.
Survivors
273.
In the VALS framework, self-expression-motivated consumers who have fewer resources and express themselves and experience the world by working on it are referred to as __________.
A.
Experiencers
B.
Thinkers
C.
Strivers
D.
Believers
E.
Makers
274.
In the VALS framework, consumers with fewer resources who are practical people, have constructive skills, value self-sufficiency, and are unimpressed by material possessions except those with a practical or functional purpose are referred to as __________.
A.
Experiencers
B.
Thinkers
C.
Makers
D.
Believers
E.
Strivers
275.
In the VALS framework, two segments stand apart based on their abundance or lack of psychological, physical, and material __________.
A.
ideals
B.
rewards
C.
self-expression
D.
achievement
E.
resources
276.
In the VALS framework, the segment with the most abundant resources, known as __________, includes successful, sophisticated, take-charge people with high self-esteem and resources of all kinds.
A.
Experiencers
B.
Innovators
C.
Makers
D.
Achievers
E.
Strivers
277.
In the VALS framework, consumers who place importance on image - not as evidence of power or status, but as an expression of cultivated tastes, independence, and character - are referred to as __________.
A.
Actualizers
B.
Innovators
C.
Achievers
D.
Makers
E.
Strivers
278.
Dutch tulip growers have developed pre-sprouted bulbs which will bloom in just a few weeks after spring planting so people who did not plant bulbs in the fall can have spring flowers. Nurseries plan to promote the pre-sprouted tulips to people who appreciate finer things and will pay a premium price. Which of these VALS segments would be most suitable to target?
A.
Survivors
B.
Believers
C.
Makers
D.
Innovators
E.
Experiencers
279.
LG, a consumer electronics manufacturer, recently introduced a 55" Internet-capable, 3D OLED (Organic Light Emitting Diode) HDTV. As its marketing manager, you have used lifestyle analysis in the past, particularly the VALS system, to help you profile your customers. Which of the following VALS profiles would be the most likely target market for this product?
A.
Survivors
B.
Believers
C.
Experiencers
D.
Achievers
E.
Innovators
280.
In the VALS framework, consumers can have abundant or minimal level of psychological, physical, and material resources. One segment with minimal resources, known as __________, focus on meeting basic needs (safety and security) rather than fulfilling desires.
A.
Thinkers
B.
Innovators
C.
Makers
D.
Survivors
E.
Strivers
281.
In the VALS framework, consumers with the least resources of any segment represent a modest market for most products and services, and are loyal to favorite brands, especially if they can be purchased at a discount are referred to as __________.
A.
Strivers
B.
Believers
C.
Survivors
D.
Makers
E.
Thinkers
282.
Two VALS segments stand apart; one represents the group with the highest resources and innovation and the other represents the lowest resources and innovation. These two groups are the __________ and the __________.
A.
Thinkers; Believers
B.
Strivers; Survivors
C.
Achievers; Strivers
D.
Innovators; Survivors
E.
Experiencers; Makers
283.
In the VALS framework, each consumer segment exhibits unique media preferences. Which segment would be the most likely to visit Facebook?
A.
Experiencers
B.
Believers
C.
Thinkers
D.
Survivors
E.
Makers
284.
In the VALS framework, each consumer segment exhibits unique media preferences. Which segment would be the most likely to read national newspapers?
A.
Experiencers
B.
Thinkers
C.
Believers
D.
Strivers
E.
Makers
285.
In the VALS framework, each consumer segment exhibits unique media preferences. Which segment is most likely to view outdoor advertising?
A.
Strivers
B.
Experiencers
C.
Believers
D.
Survivors
E.
Makers
VALS Framework
286.
VALS creates profiles of people based on their primary motivation and resources. In the VALS framework above, A refers to
A.
Ideals.
B.
Achievement.
C.
Self-Expression.
D.
Survivors.
E.
Innovators.
287.
VALS creates profiles of people based on their primary motivation and resources. In the VALS framework above, B refers to
A.
Ideals.
B.
Achievement.
C.
Self-Expression.
D.
Survivors.
E.
Innovators.
288.
VALS creates profiles of people based on their primary motivation and resources. In the VALS framework above, C refers to
A.
Ideals.
B.
Achievement.
C.
Self-Expression.
D.
Survivors.
E.
Innovators.
289.
VALS creates profiles of people based on their primary motivation and resources. In the VALS framework above, D refers to
A.
Ideals.
B.
Achievement.
C.
Self-Expression.
D.
Survivors.
E.
Innovators.
290.
VALS creates profiles of people based on their primary motivation and resources. In the VALS framework above, E refers to
A.
Ideals.
B.
Achievement.
C.
Self-Expression.
D.
Survivors.
E.
Innovators.
291.
A consumer's purchases are often influenced by the views, opinions, or behavior of others. Two important aspects of personal influence to marketing are
A.
lifestyle and motivation.
B.
personality and lifestyle.
C.
opinion leadership and word-of-mouth activity.
D.
word-of-mouth activity and psychographics.
E.
psychographics and demographics.
292.
A consumer's purchases are often influenced by the views, opinions, or behaviors of others. Two aspects of personal influence that are important to marketing are __________ and word-of-mouth activity.
A.
parental guidance
B.
peer pressure
C.
opinion leadership
D.
government regulation
E.
psychographics
293.
Consumers' purchases are often influenced by the views, opinions, or behaviors of others. Two aspects of personal influence that are important to marketers are opinion leadership and __________.
A.
consumer socialization
B.
word-of-mouth activity
C.
peer pressure
D.
government regulation
E.
sales promotion
294.
Individuals who exert direct or indirect social influence over others are referred to as
A.
decision makers.
B.
achievers.
C.
innovators.
D.
buzz managers.
E.
opinion leaders.
295.
An opinion leader is an individual
A.
within an organization who influences decision-making.
B.
who is able to use moral suasion to get others to comply with the latest trends.
C.
in an organization who encourages other paid individuals to forward marketer-initiated messages to others via e-mail, social networking websites, and blogs.
D.
who exerts direct or indirect social influence over others.
E.
who is able and willing to cut red tape and move an organization's marketing program forward.
296.
Your company is introducing a new line of activewear for teenagers and invites the members of the high school track team to a private display of the line. This group consists of __________ for activewear clothing.
A.
lifestyle makers
B.
aspirational people
C.
autonomous leaders
D.
opinion leaders
E.
joint decision makers
297.
About what percentage of adults is considered to be opinion leaders?
A.
1 percent
B.
5 percent
C.
10 percent
D.
25 percent
E.
It depends upon the type of product.
Citizen Eco-Drive Ad
298.
When Citizen (see the ad above) uses a spokesperson such as football player Eli Manning to promote its Eco-Drive watches, it believes he is a(n) __________ who can influence the purchase decision of its target market.
A.
opinion leader
B.
product champion
C.
innovator
D.
BzzAgent
E.
rainmaker
299.
The influencing of people during conversations is referred to as
A.
opinion formations.
B.
peer persuasion.
C.
interpersonal gossip.
D.
word of mouth.
E.
consumer socialization.
300.
Word of mouth refers to
A.
advertising or public service announcements that rely solely on auditory or voice messages to reach an organization's target market.
B.
subjective, often negative, misconceptions that are passed from one person to another as the result of selective perception.
C.
the influencing of people during conversations.
D.
the individuals who exert direct or indirect social influence over others.
E.
casual or unconstrained conversation or reports about other people or offerings involving details that are not confirmed as being true.
301.
What percentage of all consumer conversations about brands happens face-to-face?
A.
25 percent
B.
33 percent
C.
50 percent
D.
75 percent
E.
90 percent
302.
About __________ of all consumer conversations about brands happen over the phone.
A.
5 percent
B.
10 percent
C.
15 percent
D.
25 percent
E.
40 percent
303.
What percentage of all consumer conversations about brands happens online?
A.
5 percent
B.
10 percent
C.
15 percent
D.
25 percent
E.
40 percent
304.
What percentage of U.S. product sales is directly tied to word of mouth activity among friends, family, and colleagues?
A.
10 percent
B.
25 percent
C.
33 percent
D.
50 percent
E.
67 percent
305.
All of the following are marketing activities designed to stimulate conversations that promote positive or retard negative word of mouth EXCEPT:
A.
using slogans, music, and humor in advertising.
B.
giving appropriate product demonstrations.
C.
recruiting and deploying people to produce buzz.
D.
employing VALS segmentation strategies.
E.
running teaser advertising campaigns in advance of new-product introductions.
306.
Febreeze is an odor-controlling spray that is manufactured by Procter & Gamble. When Febreeze was introduced, a few people in an Internet chat room stated that the product was harmful to house pets. Though untrue, unfortunately the rumor spread. If P&G had not been convinced it would be a very successful product, it would have dropped Febreeze from its P&G product line as a result of
A.
negative word of mouth.
B.
a lack of back translation.
C.
cultural insensitivity.
D.
consumer ethnocentrism.
E.
poor opinion leadership.
307.
Popularity created by consumer word of mouth is called __________.
A.
hype
B.
buzz
C.
propaganda
D.
tweet
E.
spin
308.
BzzAgent is a firm that specializes in a marketing strategy known as
A.
sting.
B.
teaser advertising.
C.
spin.
D.
buzz.
E.
viral marketing.
309.
BzzAgent
A.
is the number one consumer information source in developing countries.
B.
captures honest word-of-mouth testimonials from satisfied customers who will promote new products or services.
C.
was the first on the Internet to create a public forum for new products.
D.
counteracts false rumors or negative buzz for quality products or services that have been unjustly accused on social networking websites.
E.
uses ethnographic research techniques to discover subtle behavioral and emotional reactions to products in their natural use environment.
310.
About 65 percent of BzzAgents are
A.
Fortune 500 CEOs.
B.
buzzing entrepreneurs.
C.
older than 25 years of age.
D.
considered low-income.
E.
men.
311.
BzzAgent researches a product or service before committing to a campaign and rejects about __________ of the companies that seek its service.
A.
20 percent
B.
40 percent
C.
50 percent
D.
70 percent
E.
80 percent
312.
People to whom an individual looks as a basis for self-appraisal or as a source of personal standards are referred to as
A.
action-oriented consumers.
B.
spokespersons.
C.
opinion leaders.
D.
social classes.
E.
reference groups.
313.
Reference groups refer to
A.
the relatively permanent, homogeneous divisions in a society that consists of people who share similar values, interests, and behaviors.
B.
individuals who exert direct or indirect social influence over others.
C.
people to whom an individual looks to as a basis for self-appraisal or as a source of personal standards.
D.
those buyers who, through the size of their purchases, affect where marketing dollars will be spent.
E.
those with whom a person does not wish to be a member of or identified with.
314.
A reference group to which a person actually belongs is referred to as a(n) __________ group.
A.
primary
B.
associative
C.
aspiration
D.
dissociative
E.
integrated
315.
College students who wear clothing displaying the Greek letters for fraternities or sororities to which they belong are demonstrating pride in a(n) __________ group.
A.
dissociative
B.
aspiration
C.
associative
D.
identification
E.
political
316.
The specialized group of consumers with a structured set of relationships involving a particular brand, fellow customers of that brand, and the product in use is referred to as a(n) __________.
A.
brand community
B.
VALS
C.
opinion leader
D.
social class
E.
buzz group
317.
A brand community refers to
A.
the relatively permanent, homogeneous divisions in a society that consists of people who share similar values, interests, behaviors, and brands.
B.
a specialized group of consumers with a structured set of relationships involving a particular brand, fellow customers of that brand, and the product in use.
C.
people to whom an individual looks to as a basis for purchasing particular brands.
D.
those buyers who, through the size of their purchases, affect where marketing dollars will be spent on a particular brand.
E.
those brands with whom a person does not wish to be identified with.
318.
A brand community is a specialized form of the __________ reference group.
A.
dissociative
B.
aspiration
C.
associative
D.
VALS
E.
social class
319.
Many University of Florida students, fans, and others view themselves part of "Gator Nation," the name of the __________ given to supporters of the University of Florida's educational and athletic programs.
A.
VALS type
B.
aspiration group
C.
social class
D.
brand community
E.
market segment
320.
A reference group that a person wishes to be a member of or wishes to be identified with is referred to as a(n) __________ group.
A.
preference
B.
associative
C.
aspiration
D.
assimilation
E.
integrated
321.
An aspiration group is one
A.
to which a person belongs, and wishes to continue with.
B.
that a person wishes to be a member of or wishes to be identified with.
C.
that a person wishes to maintain a distance from because of differences in values or behaviors.
D.
that a person knows he or she can never really fit into because of basic cultural differences.
E.
that a person feels is significantly above him or her in terms of socioeconomics.
322.
A local country club has a great golf course, swimming pool, tennis courts, and even a stable for horses. It also has numerous high-profile business people, doctors, and local politicians as members. To attract new members, the club's board of directors should focus its marketing efforts on people who view its current members as a(n) __________ group.
A.
associative
B.
aspiration
C.
dissociative
D.
pressure
E.
involvement
323.
A recent American Express advertising claim that "membership has its privileges" creates which type of reference group?
A.
aspiration group
B.
dissociative group
C.
assimilation group
D.
integrated group
E.
associative group
324.
If a fraternity or sorority wants to attract new members, it should focus on people who view its current members as a(n) __________ group.
A.
associative
B.
aspiration
C.
dissociative
D.
reference
E.
involvement
325.
A reference group that a person wishes to maintain distance from because of differences in values or behaviors is referred to as a(n) __________ group.
A.
socialization
B.
associative
C.
aspiration
D.
dissociative
E.
integrated
326.
In the United States, there are two major political parties whose members disagree with each other on a variety of issues. Both Republicans and Democrats view one another as being part of a(n) __________ group.
A.
associative
B.
aspiration
C.
dissociative
D.
reference
E.
involvement
327.
__________ influences on consumer behavior result from three sources: consumer socialization, passage through the family life cycle, and decision-making within the family or household.
A.
Functional
B.
Situational
C.
Social
D.
Family
E.
Personal
328.
Consumer behavior that results from consumer socialization, passage through the family life cycle, and decision-making within the family or household is referred to as __________ influence.
A.
psychographic
B.
demographic
C.
family
D.
reference group
E.
personal
329.
The process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers is referred to as __________.
A.
consumer assimilation
B.
consumer socialization
C.
consumer lifestyle
D.
purchase decision process
E.
purchasing enculturation
330.
Consumer socialization refers to
A.
the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors.
B.
the people to whom an individual looks as a basis for self-appraisal or as a source of personal standards.
C.
the process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers.
D.
the modes of living that are identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them.
E.
the relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped.
331.
Research shows that consumer socialization with respect to brand preferences begin at
A.
the age of two.
B.
the age of five when their cognitive skills have developed to understand the concept of money.
C.
the age of thirteen when they become teenagers, when they can understand the responsibility involved in saving money to be able to consume products and services.
D.
the age of eighteen when they become college students, living outside their parents' home for the first time and being responsible for their purchase decisions.
E.
at any time, though most people change their brand preferences many times during their lifetimes.
332.
Nicole gives her young daughter Kelli an allowance of $5 a week. Sometimes, Nicole takes Kelli shopping. But if Kelli wants something that costs more than she has saved, Nicole reminds her she needs to keep saving. When Kelli is finally able to purchase a special, more expensive item, she is allowed to pay for it herself, including bringing the product to the sales clerk to complete the purchase. In this way, Nicole encourages the development of Kelli's
A.
consumer assimilation.
B.
consumer acculturation.
C.
purchasing socialization.
D.
consumer socialization.
E.
purchasing enculturation.
333.
The concept that consists of the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors, is referred to as the
A.
family scale.
B.
family life cycle.
C.
family continuum.
D.
household socialization.
E.
household patterning.
334.
The family life cycle concept refers to
A.
the distinct phases a family progresses through from the birth of children to when the children leave home, each phase bringing with it identifiable purchasing behaviors.
B.
the distinct phases a family progresses through from the birth of children to retirement, each phase bringing with it identifiable purchasing behaviors.
C.
the distinct phases a blended family progresses through from marriage to separation, divorce, and remarriage, each phase bringing with it identifiable purchasing behaviors.
D.
the distinct phases a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors.
E.
the intergenerational purchasing habits and product preferences that are passed down from one generation to the next.
335.
The demographic situation, consisting of married couples with children younger than 18 years old and which constitutes 21 percent of all U.S. households, is referred to as a(n)
A.
traditional family.
B.
typical household.
C.
socialized household.
D.
reference group.
E.
ideal family unit.
336.
The family life cycle concept describes the distinct phases a family progresses through from __________, each phase bringing with it identifiable purchasing behaviors.
A.
formation to retirement
B.
birth to death
C.
the birth of children to retirement
D.
the birth of children until they leave home
E.
marriage to retirement unless a divorce, separation, or death occurs
337.
Which of the following statements about the family life cycle is most accurate?
A.
The majority of households today are composed of traditional families.
B.
Income and gender are two of the variables considered in the family life cycle.
C.
Young singles represent a target market for recreational travel, automobiles, and consumer electronics.
D.
Single divorcees are more likely to buy life insurance than any other group.
E.
The most financially secure group of any family life cycle stage is single parents with children.
338.
Based on the stages of the family life cycle, which of the following groups most likely has the largest amount of discretionary income?
A.
young couples without children
B.
single parents with children
C.
young singles
D.
young married couples with children
E.
middle-aged couples with children
339.
The two major styles of family decision-making are
A.
joint and passive.
B.
spouse-dominant and spouse-submissive.
C.
joint and spouse-dominant.
D.
democratic and autocratic.
E.
active and passive.
340.
Spouse dominant decision-making implies that
A.
the husband makes the majority of the purchase decisions.
B.
the wife makes the majority of the purchase decisions.
C.
both the husband and the wife make the purchase decisions together.
D.
the wife and the husband alternate with respect to their purchase decisions.
E.
either the husband or the wife is primarily responsible for purchase decisions.
341.
Which type of purchase is most likely to be the result of joint decision-making?
A.
groceries
B.
children's toys
C.
medicine
D.
home appliances
E.
breakfast cereal
342.
Which of the following statements about family decision making is most accurate?
A.
The use of joint decision-making is directly related to the educational levels achieved by the spouses.
B.
Husbands make most of the purchase decisions made about cars, vacations, and homes.
C.
The two types of family decision-making are joint and autonomous.
D.
With autonomous decision-making, the husband would make all the decisions about groceries, medicine, and car maintenance.
E.
Women have little influence when it comes to men's clothing purchases except for socks or ties.
343.
The five roles of individual family members in the consumer purchase decision process are
A.
associative group, aspiration group, opinion leader, decision maker, and user.
B.
sustainer, experiential, belonger, emulator, and achiever.
C.
opinion leader, influencer, decision maker, purchaser, and user.
D.
information gatherer, influencer, decision maker, purchaser, and user.
E.
need driven, inner directed, outer directed, opinion leader, and decision maker.
344.
Josh told his father that the family needed a new computer, so his dad asked him to look into the latest products and their prices. Josh's mom asked that the new computer have an ergonomic keyboard because she has wrist problems. His sister Ann wanted the computer to have a lot of memory to edit videos. With this information, Josh's dad chose and ordered a Dell. Which best describes the roles each family member played in making this decision?
A.
Josh's mother and Ann acted as information gatherers, users, and decision makers.
B.
Josh took on all the roles except that of purchaser.
C.
Josh's father took on all of the roles.
D.
Ann acted as a user and an influencer.
E.
Josh's mother acted as an information gatherer, a user, an influencer, and a gatekeeper.
345.
The Martinez family is considering a vacation. Dad wants to stay home this year and use the money for home repairs. His mom who lives with them wants to visit relatives in New York. Dad asks his mother to determine the cost of a trip to New York and if they could stay with relatives while there. Mom and their daughter want to go to a beach. Which of the following sentences best describes the roles each family member played in making this decision?
A.
There is no family member serving as an information gatherer.
B.
The mother and the grandmother only played the role of influencer.
C.
The females in the family only play two roles - users and influencers.
D.
Since the father will make the final vacation decision, he has taken on all of the roles.
E.
The grandmother plays the roles of user, influencer, and information gatherer.
346.
When strolling through the grocery store, a toddler tells her mother, "Yuck, I don't like peas." Her mother puts down the peas and chooses green beans instead. The role of the little girl in this purchase was that of __________.
A.
information gatherer
B.
influencer
C.
purchaser
D.
decision maker
E.
user
347.
In 31% of households, __________ are the primary grocery shoppers, though they may not be the grocery decision makers.
A.
teenagers
B.
extended family members
C.
paid help
D.
children of any age
E.
men
348.
Jennifer usually worked long hours at her job at the hospital, so her husband Ari, an amateur chef, prepared most of the meals for the family. As an anniversary gift, Jennifer bought Ari a top-of-the-line professional cook top and range. Ari's primary role in this process was that of __________.
A.
information gatherer
B.
influencer
C.
purchaser
D.
decision maker
E.
user
349.
What is the annual market size for the products bought by or for preteens and teenagers?
A.
$12 billion
B.
$26 billion
C.
$104 billion
D.
$208 billion
E.
$547 billion
350.
The set of values, ideas, and attitudes that are learned and shared among the members of a group is referred to as __________.
A.
national character
B.
culture
C.
social class
D.
code of ethics
E.
ethnic ideology
351.
Subgroups within the larger, or national, culture with unique values, ideas, and attitudes are referred to as
A.
reference groups.
B.
families.
C.
social classes.
D.
subcultures.
E.
normative groups.
352.
Subcultures refer to
A.
subgroups within the larger national culture, whose values and beliefs are diametrically opposed to foreign cultures.
B.
groups within organizations whose values and beliefs influence the corporate culture.
C.
subgroups within the larger, or national, culture with unique values, ideas, and attitudes.
D.
stakeholder groups outside an organization whose values and beliefs are contrary to the corporate culture.
E.
the designation given to people between the ages of 13 and 24 whose values and beliefs are not yet fully formed but are still influenced both by their families and society.
353.
Which of the following is the largest racial/ethnic subculture in the United States?
A.
Asian Americans
B.
Hispanics
C.
Caucasians
D.
African Americans
E.
Native Americans
354.
Which of the following statements about Hispanic buying patterns is most accurate?
A.
Hispanics are often brand loyal and willing to pay a premium price for premium quality.
B.
Hispanic buying preferences are strongly influenced by contemporary fads and fashions.
C.
Hispanics are dubious about using advertising as an information source.
D.
Convenience is an essential product attribute for Hispanic homemakers with respect to food preparation or consumption.
E.
Uniquely Hispanic buying patterns have virtually disappeared over the past ten years due to increased assimilation.
355.
Which of the following is a reason that marketing to Hispanics has proven to be a challenge?
A.
Hispanics don't consider advertising a credible source of product information.
B.
Hispanics communities are spread across the entire country and therefore difficult to target.
C.
The Hispanic subculture is diverse.
D.
Hispanics prefer imports to American-made products; they tend to be ethnocentric in their product preferences.
E.
Assimilation is valued and the Hispanic community finds cultural target marketing offensive.
356.
Among the three major racial/ethnic subcultures in the United States, African Americans rank as __________ in terms of spending power.
A.
the largest
B.
the second largest
C.
the third largest
D.
equal with Hispanics
E.
equal with Asian Americans
357.
Which of the following statements about African American buying patterns is most accurate?
A.
African Americans spend more on products for women and girls, especially in terms of clothing.
B.
There are significant differences between the buying patterns of African Americans and Caucasians of similar socioeconomic status.
C.
African Americans are not price conscious but are strongly motivated by quality and choice.
D.
Adult African Americans spend half as much on online services than Caucasians.
E.
When socioeconomic status differences between African Americans and Caucasians are removed, there are more similarities than points of difference.
358.
Which of the following statements about African American buying patterns is most accurate?
A.
There are very few differences in the consumption patterns of African Americans and Caucasians.
B.
African American men spend more on health and beauty products than Caucasian men do.
C.
The typical African American family is five years older than the typical Caucasian family.
D.
African American purchase behavior is still affected by the historical deprivation in employment and educational opportunities in the United States.
E.
African Americans are not price conscious.
359.
Which of the following statements about Asian American buying patterns is most accurate?
A.
There is no real diversity among Asian American subcultures.
B.
Assimilated Asian Americans exhibit buying patterns that are very different from the typical American consumer.
C.
Because McDonald's standardizes its products across all cultures, it does not actively market to Asian Americans.
D.
The Asian American subculture is the most entrepreneurial in the United States.
E.
Consumer research on Asian Americans suggests individuals and families divide into three groups - assimilated, non-assimilated, and recent immigrants.
360.
Which of the following statements about Asian American buying patterns is most accurate?
A.
Assimilated Asian Americans have very different buying patterns from a typical U.S. consumer.
B.
There is great diversity among Asian American subcultures.
C.
The Asian American subculture is growing very slowly in the United States.
D.
Asian Americans are the least educated racial/ethnic subculture in the United States.
E.
Consumer research on Asian Americans suggests individuals and families divide into three groups - assimilated, non-assimilated, and recent immigrants.
361.
Asian Americans who are conversant in English, highly educated, hold professional and managerial positions, and exhibit buying patterns very much like typical American consumers are referred to as __________ Asian Americans.
A.
socialized
B.
upper class
C.
nonassimilated
D.
subcultured
E.
assimilated
362.
An Asian American family whose relatives emigrated four generations ago has three children. The oldest son, George, is in medical school. Susan, at the age of 21, is a concert pianist. Brent is a second-year business student. This family is likely to exhibit which of the following Asian American buying patterns?
A.
non-assimilated, yet celebrating their culture by purchasing authentic Asian goods
B.
assimilated, exhibiting buying patterns very much like other typical American consumers
C.
assimilated, yet celebrating their culture by seeking traditionally Asian occupations
D.
non-assimilated, due to inherent differences in Asian subcultures that transcend generations
E.
non-assimilated, exhibiting buying patterns very much like other typical American consumers
363.
Groupon built its business model on the premise that
A.
consumers would be receptive to online sweepstakes.
B.
businesses would be willing to post their 30-second TV advertising on a social network.
C.
consumers would want to "check in" and earn points and badges for visiting businesses.
D.
consumers would band together and try a new product or service if businesses would offer lower prices to entice them to take advantage of a daily deal offered to them.
E.
consumers would be willing to pay for fun and exciting online video games that are playable on their smartphones and tablet devices.
364.
Which of the following statements about Groupon is most accurate?
A.
In the alternative evaluation stage of the consumer purchase decision process, many Groupon customers focus on place or distribution as the most important evaluative criterion.
B.
A Groupon "deal of the day" e-mail may trigger a need in a consumer's problem recognition stage of the purchase decision process to do (buy) something they may not ordinarily do.
C.
The typical Groupon user is a 35- to 45-year old male with an average income of about $25,000 who is looking for a great deal.
D.
The Groupon purchase decision is made online and then confirmed by a telephone call when enough consumers agree to the offer and the "deal tips."
E.
Generally, Groupon consumers rarely follow the purchase decision process like they do for other consumer offerings because they do not have time for an information search.
365.
All of the following are challenges that Groupon faces EXCEPT:
A.
most of the Groupon deals are unprofitable for merchants, so customers must be converted into repeat purchasers for this to be cost effective.
B.
Groupon faces extraordinary competition because the daily deal technology is easy to copy.
C.
the business model is hard to adapt at the local level, though it works well for large, national businesses.
D.
some consumers buy the coupons but never use them, eventually leaving them dissatisfied and unlikely to use Groupon again.
E.
Groupon must develop a comprehensive understanding of the differences in international buying behaviors to continue its explosive growth outside the United States.
Facebook has approximately what fraction of the world’s population as customers?
All of the following statements about the environmental forces that have influenced Facebook are true except which?
Environmental scanning refers to
The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends is referred to as
Environmental trends arise from all of the following forces except which?
The purpose of environmental scanning is to
Which of the following statements regarding environmental scanning is the most accurate?
A firm conducting an environmental scan of the marketplace might uncover key __________ such as the growing popularity of video bloggers and the increasing mobility and connectivity of consumers.
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.
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?
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
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 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
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 proposed law in New Jersey would ban the use of tanning beds by anyone under the age of 18. This restriction would be an example of which environmental force?
Using smartphones, one 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, LG, and others. As a result, 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.
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?
The set of environmental forces that consists of the demographic characteristics of the population and its culture is referred to as
The demographic characteristics of the population and its culture are referred to as
The social forces in the environment include the __________ of the population and its culture.
The social forces of the environment include the demographic characteristics of the population and its
Which of the following statements regarding social forces is most accurate?
Which of the following would be identified as a social force in an environmental scan?
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.
An important social trend is the continued concern for health and well-being in the United States. This is most likely evidenced by
Publishers were surprised by the dramatic success of the book Fifty Shades of Grey and believe that it will likely generate a fresh cycle of female-targeted romances packaged for the mainstream reader. This is an example of __________ force impacting the marketing environment.
Demographics refer to
The description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation is referred to as A. consumer group profiling. B. demographics. C. behavioral analysis. D. psychographics. E. statistical analysis.
Demographic characteristics that describe a population include all of the following except which? A. income. B. age. C. occupation. D. zip code. E. ethnicity.
More 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 billion. B. 6.3 billion. C. 7.4 billion. D. 7.9 billion. E. 9.5 billion.
By 2050, the world’s population is expected to be A. 5 billion. B. 5.7 billion. C. 6.1 billion. D. 7.9 billion. E. 9.8 billion.
The change in the growth of the world’s population is called the A. population contraction. 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. fairly 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 health care conditions.
Projections show that the population is A. growing in most developed countries. B. declining in most developing countries. C. decreasing in Africa. D. increasing in Asia. E. decreasing in Latin America.
The country expected to have the largest population in 2050 is A. the United States. B. India. C. China. D. Russia. E. Brazil.
Which of the following is a demographic trend with significant implications to global marketers? A. the declining populations in Latin American countries B. the large and growing 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 lack of savings 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, younger, and less diverse. D. larger, younger, and more diverse. E. larger, older, and more diverse.
By 2030, the U.S. population is expected to exceed A. 273 million. B. 314 million. C. 323 million. D. 359 million. E. 414 million.
All of the following factors contribute significantly to the rate of change of a country’s population except which? 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)
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 can be defined as the generation born A. between 1918 and 1945. B. between 1946 and 1964. C. between 1965 and 1976. D. between 1977 and 1994. E. since 1995.
Which of the following currently affects baby boomers, and thus those that market to them, in a significant way? A. They are beginning to have children. B. They are getting their high school and college educations. C. They are currently retiring or nearing retirement age. D. They are just being born. E. They are beginning their primary school educations.
Prudential, a financial planning firm, offers retirement plans and wealth management advice. These products are most likely targeted toward which generational cohort? A. Generation X B. baby busters C. Generation Y D. the greatest generation E. baby boomers
Olay, a personal care product firm, offers anti-aging and restoration products like its Total Effects cleansing cloths that are best targeted toward A. echo-boomers. B. Generation Z. C. Generation Y. D. baby boomers. E. baby busters.
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. echo-boomers B. Generation Xers C. Generation Yers D. baby boomers E. baby busters
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.
Generation X is the label often given to A. persons born between 1965 and 1976. B. persons 65 years old and older. C. those who survived the Great Depression. D. the “greatest generation” born between the baby boomer generation and their parents that were called Generation W, the World War II generation. E. those people who were born since the millennium.
The 50 million people 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 50 million people 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
The generational cohort known as __________ was born during the baby bust era when the number of children born each year was declining. A. Generation Z B. Generation Y C. millennials D. Generation X E. baby boomers
________ is the generational cohort described as self-reliant, supportive of racial and ethnic diversity, better educated than previous generations, and not prone to extravagance. A. Generation Z B. Generation Y C. Millennials D. Generation X E. Baby boomers
Generation X consumers are A. likely to rely on others. B. authoritative decision makers. C. very prone to extravagance. D. generally supportive of racial and ethnic diversity. E. poorly educated.
Generation X A. is the least healthy generation since the 1940s. B. accounts for twice the amount of consumer spending as any other generational cohort. C. is now the largest segment of business travelers. D. is interested in distinctive, memorable, and personal experiences. E. is a label often used synonymously with the term ‘millennials.’
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. the downtrodden generation. E. Generation 25.
The generation of children born between 1977 and 1994 is sometimes referred to as A. echo busters. B. baby busters. C. the lost generation. D. the baby boomerang. E. millennials.
Members of Generation Y are more likely than other generational cohorts to influence A. luxury air travel. B. health care and insurance. C. retirement plans. D. video games. E. automobile design.
When compared to other generational cohorts, members of Generation Y are most likely to influence A. packaged food products. B. health care and insurance. C. communication and networking devices. D. retirement plans. E. automobile design.
Members of Generation Y, also known as __________, are interested in sustainability including sustainable campus communities. A. activists B. sustainers C. progressives D. reformers E. millennials
Younger members of Generation Y are idealistic and eager to get started as a force for good. One way they hope to achieve their goal is through A. environmental responsibility. B. political activism. C. intergenerational dialogue. D. fiscal conservatism. E. educational reform.
For millennials, “positive business” involvement means A. engaging in free market economics with fair but limited regulations to manage exchange relationships. B. being part of a movement that balances the interests of shareholders, employees, and society. C. exploiting a nation’s natural resources for the betterment of its society. D. seeking advanced jobs in agriculture that emphasize economies of scale in farming and ranching. E. executing an aggressive strategy regarding oil and natural gas exploration to make the United States energy independent.
All of the following statements are true except which? 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 and case studies. D. Many students want to be involved with organizations such as Net Impact to use business to improve the world. E. Millennials want to make a difference by making the world a better place.
Approximately one in __________ U.S. residents is African American, American Indian or Alaska Native, Asian American, or Native Hawaiian or Pacific Islander. A. ten B. seven C. five D. three E. two
Of the following, which racial or ethnic group had 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)
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. 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 or ethnic groups. B. nations. C. religions. D. generational cohorts. E. genders.
Recognized for excellence by Advertising Age, Alma creates advertising to reach diverse segments by “focusing the work on a deeper cultural knowledge, elevating the work beyond the clichés.” For its clients, including Kraft and Revlon, Alma creates ads that are a part of programs incorporating A. psychographic differences. B. population inputs. C. multicultural marketing. D. a value consciousness. E. macroeconomics.
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
Which one of the following is a commonly held value in the United States today? A. individualism B. tradition C. group welfare D. nostalgia E. acceptance of birthright
All of the following are commonly held values in the United States except which? A. equality B. action C. group welfare D. continuous change E. personal control
Which of the following is a commonly held value in the United States? A. the importance of rank and status B. the importance of tradition C. belief in fate D. competition E. acceptance of birthright
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 increasingly common cultural value? A. preserving the environment B. paying the least amount possible for products C. reducing inequality among competing brands D. believing in fate 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.
Wal-Mart has set ambitious goals to cut energy use by buying more local products, reducing packaging, and switching to renewable power in response to customers’ A. changing values. B. changing population composition. C. changing demographics. D. changing regulatory forces. E. changing ethnic composition.
The economy is defined as 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 which? 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
Oil prices have an impact on transportation costs for many types of products. Should oil prices change, the price consumers pay for products often is adjusted accordingly. Changing oil prices would be an example of __________ force. A. a social B. an economic C. a technological D. a competitive E. a regulatory
Volkswagen opened a large plant in Chattanooga, TN, in 2011. Within a few years, VW spurred more than 12,400 direct and indirect jobs in the area. The carmaker generates income of over $600 million there 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. A. a social B. a regulatory C. a competitive D. an economic E. a technological
In __________ economy, the cost to produce and buy products and services escalates as prices increase. A. an inflationary B. an expansionary C. a deflationary D. a recessionary E. a depressive
In __________ economy, if prices rise faster than consumer incomes, the number of items consumers can buy decreases. A. a deflationary B. an expansionary C. a recessionary D. an inflationary E. a 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 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 14 percent in 2015. This is an example of __________ condition. A. a deflationary B. a recessionary C. a repressive D. an inflationary E. a depressive
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.
The most recent economic recession occurred when? A. 1981–1982 B. 1990–1991 C. 1998–1999 D. 2007–2009 E. 2010–2013
Components of a consumer’s income consist of A. inflationary, recessionary, and depressive economies. B. salaries, taxes, and assets. C. gross, disposable, and discretionary components. 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. summative
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 during 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. fiscal power. D. money income. E. household income.
In 1970, the typical U.S. household earned about $8,700. In 2013, the typical U.S. household earned about $51,939. If adjusted for inflation, the gross income of the typical U.S. household in 2013 relative to 1970 has A. increased dramatically. B. increased somewhat. C. remained relatively stable. D. decreased somewhat. E. decreased dramatically.
Approximately what percentage of U.S. households has an annual income between $25,000 and $99,999? A. 13 B. 28 C. 37 D. 42 E. 54
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 before 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 during 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. use cash for purchases such as a vacation. D. recognize that it is the perfect opportunity to buy a car or other expensive products on credit. E. react by voting for all incumbent members of Congress.
The recent large decline in __________ has caused consumers to adjust their spending in other categories. A. automobile prices B. gasoline prices C. interest rates D. consumer confidence E. property values
The changes 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. home values
During a recessionary period, which of the following economic behavior would be expected? A. Consumer spending would increase. B. The use of credit would decline. C. Taxes would increase nationally. D. Property values would jump dramatically. E. Consumers would use the majority of their discretionary income on entertainment.
During a recessionary period, which of the following economic behavior would be expected? A. Consumer would switch from premium brands to lower-priced ones. B. Consumer use of credit would increase. C. Taxes would increase nationally. D. Property values would jump dramatically. E. Consumers would use the majority of their discretionary income on groceries.
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? A. $36,000 B. $74,000 C. $60,000 D. $98,000 E. There is not enough data provided to calculate her discretionary income.
The portion of one’s income 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 during 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 is spent for necessities or charitable causes that is exempt from taxation. E. the money that remains after paying for taxes and necessities.
See the Queen Mary 2 ad. Income used to buy luxury items such as a voyage about the Queen Mary 2 offered by Cunard 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 Assessment.
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? A. education B. housing C. vacations D. entertainment E. investments
Spending on which of the following would be considered discretionary? A. food B. housing C. vacations D. clothing E. transportation
Increases in discretionary income can occur as a result of all of the following except which? A. an increase in gross income. B. a decrease in taxes. C. an increase in disposable income. D. a decrease in housing costs. E. an increase in interest rates.
Even if she pays high taxes and has high expenses for necessities, if a consumer’s __________ is still high after those, 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. A. savings rate B. gross income C. taxes D. discretionary income E. disposable income
Kelly had an excellent year as a salesperson in 2015, 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? A. $36,000 B. $60,000 C. $73,000 D. $97,000 E. Not enough information is provided to calculate her discretionary income.
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 $100,000. 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? A. gross income B. bonus income C. discretionary income D. disposable income E. profit
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 $2,800 they had remaining 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
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 A. an increase in the number of fine restaurants during times of economic upswing. B. a reaction to an increase 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 investing to spending.
Recent data on consumer expenditures indicate that the savings rate of U.S. consumers has A. declined by 6 percent. B. remained flat at 0.5 percent. C. fluctuated minimally around 2 percent. D. risen to 5.8 percent. E. exploded to nearly 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 is defined as 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. scientific findings that are used now or are able to generate a profit. D. ideas or concepts that will one day be translated into usable devices, mechanisms, or processes. E. the inventions or innovations from applied science or engineering research.
Technological advances sometimes have disruptive effects. One great advance can replace or substitute for existing products in a relatively short period. The Next Issue app for tablets and smartphones with wireless connectivity are most likely to replace or substitute for A. TV broadcasts. B. digital video recorders. C. printed publications. D. printed images. E. online video games.
Technological advances sometimes have disruptive effects. One great advance can replace or substitute for existing products in a relatively short period. Apple Pay for iPads and iPhones is most likely to replace or substitute for A. financial market trades. B. digital video recorders. C. credit cards and cash. D. printed catalogs. E. online banking.
According to the textbook, several new technologies are expected to have dramatic impacts on marketing. Among those cited are A. biotechnology, green technologies, natural user interfaces, and social networks. B. neuron technology, lithium batteries, cloud computing, and wireless power. C. crowdsourcing, genomics, QR codes, and smart bio watches. D. the Internet of Things, computing with five senses, smart grid electricity services, and 3-D technologies. E. nanotechnology, autobots, cloud computing, and electric cars.
Oral-B toothbrushes now connect to your smartphone to provide real-time feedback on your brushing. 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
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
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 ordered clothes will fit. ImageTwin has developed a scanning system that obtains the measurements of individuals, which is then fed into a database. When you want to buy something at LandsEnd.com, you can see a 3-D 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 data or use software applications directly from a remote server over the Internet or wirelessly 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
Growth of green technologies such as smart grid electricity services, online energy management, and consumer-generated energy are __________ forces that would be identified through an environmental scan. A. social B. competitive C. regulatory D. technological E. economic
The Electronic Signatures in Global and National Commerce Act makes digital signatures as valid as 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
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 occupied by sophisticated computer and telecommunication technologies and digital 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 digital offerings is referred to as A. Internet marketing. B. marketspace. C. electronic commerce. D. marketplace. E. e-exchange.
Any activity that uses electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services is referred to as A. electronic commerce. B. Internet barter. C. intranet exchange. D. electronic exchange. E. extranet trade.
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 electronic communication in the inventory, promotion, distribution, purchase, and exchange of products 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 __________ transaction. A. an i-market B. an intranet C. an electronic commerce D. an extranet E. a marketplace
The Internet of Things refers to A. technological breakthroughs that allow major innovation to occur. B. the network of products with connectivity-enabled electronics. C. an explosion in interest in advanced analytics. D. technological specifications that identify access to networks. E. the belief in technology as a driver of success in the marketplace.
The network of products embedded with connectivity-enabled electronics has come to be known as A. marketspace. B. the extranet. C. the Internet of Things. D. the cloud. E. universal connection.
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 business, 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. technological competition, market competition, governmental competition, and environmental competition. E. pure competition, monopolistic competition, oligopoly, and pure monopoly.
Many firms now use e-mail and the Internet to promote their products instead of sending promotional literature to current and prospective customers through the mail. UPS and FedEx continue to grow, offering both overnight and ground package delivery services. As a result, the U.S. Postal Service (USPS) has lost millions of customers and billions in revenue. The USPS has challenges ahead in coping with ___________ 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.
Agribusinesses that sell commodity products such as wheat, rice, and corn are often in __________ position with their competitors. A. a limited competition B. a pure competition C. an oligopolistic competition D. a monopolistic competition E. a monopolistic
__________ is the form of competition where distribution is the only element of the marketing mix that exerts much of 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 substitutable products within a price range is called A. pure competition. B. cross-market competition. C. an oligopoly. D. monopolistic competition. E. a monopoly.
The use of coupons is a frequently used marketing tactic 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 marketing environment is an example of A. pure competition. B. monopolistic competition. C. an oligopoly. D. a monopoly. E. marginal competition.
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. A. a pure competition B. an oligopoly C. a monopolistic competition D. a monopoly E. a 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.
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. pure competition B. limited competition C. a monopoly D. an oligopoly E. monopolistic competition
Because there are few sellers, price competition among firms is avoided in which form of competition? A. pure competition B. cross-market competition C. a monopoly D. monopolistic competition E. an oligopoly
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 A. a monopoly. B. a mega monopoly. C. a pure competition. D. an oligopoly. E. a monopolistic competition.
Only two companies, Intel and AMD, design the computer processors for nearly every laptop and desktop sold in the U.S. today. Intel and AMD operate in which type of competitive environment? A. a monopoly. B. a diopoly. C. a pure competition. D. an oligopoly. E. a monopolistic competition.
The U.S. Securities and Exchange Commission has designated just nine credit-rating agencies as nationally recognized statistical rating organizations, which include Moody’s, Standard & Poor’s, and Fitch Ratings. These agencies provide opinions on the creditworthiness of other entities and the financial obligations issued by them. Because so few companies can compete in it, the credit-rating industry would be considered A. a mega monopoly. B. an oligopoly. C. a pure competition. D. a monopolistic competition. E. a monopoly.
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. an oligopoly. B. a trilateral monopoly. C. a monopoly. D. a pure competition. E. a 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 typically 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
In many geographic areas, there is only a single provider for gas and electric service for businesses and consumers. However, the government regulates that firm to ensure price protection for the buyer. This is an example of A. pure competition. B. a pure monopoly. C. an oligopoly. D. monopolistic competition. E. a megopoly.
The Federal Trade Commission investigated Google as potentially being ________, but found that despite its very large market share, it had not harmed competition. A. a pure competitor B. an oligopoly C. a monopolistic competitor D. a monopoly E. a megopoly
Small businesses make up a large portion of the competitive landscape for most businesses. There are approximately __________ small businesses in the United States. A. 17 million B. 28 million C. 39 million D. 52 million E. 97 million
Small businesses employ about __________ of all private-sector employees. A. one-quarter B. one-third C. one-half D. three-quarters E. ninety percent
Small businesses account for __________ of the gross domestic product (GDP). A. 21 percent B. 32 percent C. 46 percent D. 68 percent E. 82 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 constraints. 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.
An Arizona cardiac surgery practice agreed to pay the U.S. Department of Health and Human Services a $100,000 settlement following an investigation of potential violations of the Health Insurance Portability and Accountability Act (HIPAA) Privacy and Security Rules. The practice posted clinical and surgical appointments for its patients on an Internet-based calendar that was publicly accessible, which drew complaints for failing to protect health information of consumers. HIPAA rules are an example of __________ forces in the marketing environment. A. economic B. ecological C. technological D. social E. regulatory
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. A. economic B. ecological C. technological D. regulatory E. social
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 that stifled innovation. 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.
The purpose of patent law is to A. provide incentives for increased competition and lower prices by limiting the granting of patents. 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 of new and novel products 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 of new and novel products the right to exclude others from making, using, or selling products that infringe on the invention. A. copyright law B. patent law C. trademark law D. commercial law E. antitrust law
The purpose of copyright law is to A. provide incentives for increased competition. B. give inventors of new and novel products 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. trademark law D. commercial law E. antitrust law
The Digital Millennium Copyright Act, signed in 1998, 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 have a registered trademark. E. allows anyone with access to a computer to publish original materials online and seek remuneration (pay).
The Child Protection Act (1966) and the Consumer Product Safety Act (1972) are examples of A. pricing-related legislation. B. laws specifying product requirements. C. fair trade legislation. D. distribution-related legislation. E. government contracts with private firms.
All of the following federal laws are designed to protect consumers except which? A. Consumer Product Safety Act. B. FTC Act of 1914. C. Nutritional Labeling and Education Act. D. Digital Millennium Copyright Act. E. Child Protection 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. libertarianism.
Consumerism refers to A. a movement of conspicuous consumption that began when 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.
Which of these laws came about as a response to the 1960s grassroots movement known as consumerism? A. Robinson-Patman Act B. Clayton Act C. Digital Millennium Copyright Act D. FTC Act E. Consumer Product Safety Act
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.
Which of the following legislative actions created a government entity to monitor business practices and stop unfair ones such as misleading promotions? A. Robinson-Patman Act B. Consumer Product Safety Act C. Lanham Act D. Federal Trade Commission Act E. 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 Federal Trade Commission (FTC) can take to stop a company from continuing an unfair trade practice? A. competitive advertising B. a cease and desist order C. a private ruling D. a consent degree E. a stay
The Federal Trade Commission (FTC) can require a company to spend money to rectify previous misleading ads with revised information, which is known as 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 Federal Trade Commission (FTC) from requiring the dietary aid distributor 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., an American pharmaceutical company, 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 Federal Trade Commission (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 known as 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 some of the soup’s ingredients (e.g., noodles or chicken) to the surface, thus misrepresenting the amount of solid ingredients in the soup. Which agency would monitor such a practice? A. Food and Drug Administration B. U.S. Department of Justice C. Federal Trade Commission D. Better Business Bureau E. American Marketing Association
Recent legislation including the Telephone Consumer 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.
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. The FTC Act
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 or her 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 consumers will get the product wanted and requested 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 firm selling the trademarked product from infringers and (2) protect the consumer buying the product by allowing him to correctly identify the product he wants.
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.
Though registration under the Lanham Act provides important advantages to a trademark owner, A. copyright protection is preferred for most branding in the United States. B. foreign firms are not allowed to register. C. it has resulted in an anti-competitive environment for domestic firms. D. patent law is preferred for most branding in the United States. E. it does not confer ownership.
The popular cupcake chain Sprinkles, which launched in Southern California in 2005, recently settled a trademark infringement lawsuit against a Connecticut bakery that was calling itself Pink Sprinkles. The latter was forced to change its name to Pink Cupcake Shack because it was apparently violating provisions of the A. Consumer Product Safety Act. B. Consumer Bill of Rights. C. Lanham Act. D. Sherman Antitrust Act. E. CAN-SPAM Act.
In the Brands photo, the manufacturers of these products may be 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. The FTC Act.
Which of the products in the Brands photo is least likely 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 no 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 has 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 Co. 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. AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply
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 claims that Apple did not have exclusive rights to the name because other firms used it to describe their online storefronts where consumers can obtain software for smartphones and tablet devices. In March 2011, Apple filed a lawsuit against 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.
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 suggest 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 persuasive power. 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. cannot be involved with Internet commerce. D. is a voluntary alliance of companies whose goal is to help maintain fair practices. E. is the agency that 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.
Laws refer to A. a specific set of behaviors a given society considers to be 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 one of the following statements most 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 moral principles and values whereas laws are society’s values and standards that are enforceable in the courts.
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. values and standards of society 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 an 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.
Which of the following is considered one of the major factors that influences an individual’s personal moral philosophy and ethical behavior? A. organizational structures B. societal culture and norms C. national and local legislation D. the strength and stability of political parties E. a nation’s moral philosophy
Which of the following is considered one of the major factors that influences an individual’s personal moral philosophy and ethical behavior? A. organizational structures B. legislation C. federal regulatory agencies D. a nation’s wealth and standard of living 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 versus 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 ethnic or racial group. B. is determined by the largest generational cohort 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 such as 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. This means 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.
In most countries, copyrights, trademarks, and patents are viewed as intellectual property, and unauthorized use, reproduction, or distribution of intellectual property is illegal. In a few countries, however, copying enjoys a long tradition, does not carry a stigma, and is legal. For example, copying a masterpiece may be historically considered an art form in its own right. The difference between these two groups of countries shows that __________ affect(s) the view of ethical 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 in international law E. organizational culture and expectations
Making counterfeit copies of Gucci purses, Tommy Hilfiger sportswear, and other international brands is pervasive in some countries because laws protecting intellectual property are unclear and sporadically enforced. A business introducing a product into such a country 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. “Be informed.” E. “Such is life.”
The legal concept of “let the buyer beware,” which was pervasive in the American business culture before the 1960s, is referred to as A. ad nauseum. B. mea culpa. C. quid pro quo. D. ćest 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 before 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 is in the best interests of 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. ćest la vie E. caveat emptor
the burden on the buyer to make sure the car is worth the purchase price, so it is advisable to take the car first to a mechanic. Once the transaction is complete the buyer typically will not receive a warranty or return option from the seller. A. modus operandi B. caveat emptor C. de facto marketing D. ćest la vie E. anguis in herba
In the 1960s, President Kennedy developed what is known as the Consumer Bill of Rights. This legislation represents limitations to the legal concept of ________ that was pervasive before that. A. utilitarianism B. self-regulation C. economic espionage D. consumerism E. caveat emptor
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 statement 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 F. Kennedy; 1962 B. President Ronald Reagan; 1983 C. President Bill 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. Which of the following is a primary principle of it? A. to privacy B. to be compensated for product defects C. to be treated with respect D. to 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. Which of the following is a major principle that was included? 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 heard E. to be compensated for product defects
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 consumers’ right to A. choose. B. be informed. C. safety. D. be heard. E. happiness.
Cosco, the world’s largest children’s products company, recently sold 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 for $49. The prototypes had been tested by Cosco employees who had small children, but this was the only product testing performed. Once sold, 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.
Recently, Chillafish recalled some of its Chillafish brand of children’s balance bikes. The Consumer Product Safety Commission website stated that overinflated tires could cause the wheel rims to crack and send pieces of the plastic rim flying, posing a laceration hazard to consumers. Chillafish was responding to consumers’ right to A. choose. B. be informed. C. be treated courteously. D. safety. E. happiness.
If a brand of imported toys was found to have very high levels of lead in the paint and was recalled, the action would be necessary to protect 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 their personal information is confidential. If a web retailer proposed sharing its customer information with its partners without telling users, this is related most directly to consumers’ right to A. be heard. B. be treated courteously. C. safety. D. happiness. E. be informed.
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 collection of trade secrets or other intellectual property from foreign countries or governments. 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 which? A. wiretapping. B. trespassing. C. bribery. D. searching a competitor’s trash. E. noncompete clause 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 worked in an executive capacity at a competitor’s firm, especially if they didn’t have a non-compete 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.
A rival of a branded food product manufacturer was known to have asked a mutual supplier for certain ingredients, using secret codes known only to the manufacturer and the supplier. The rival had picked the codes out of the manufacturer’s refuse. This is an example of A. corporate intelligence. B. economic espionage. C. clandestine trade secrets. D. industrial reconnaissance. E. competitive surveillance.
A national pet health care provider recently made a competitive move when it acquired new information. A rival had “preannounced” a new pet coverage product in a tiny community newspaper six months prior to launching it. The national pet health care provider’s marketing manager was notified immediately through a news monitoring service. The firm quickly added a similar offering, and got it to the market before its rival. The marketing manager relied on __________ to keep abreast of competitors’ activities. A. legitimate environmental scanning B. economic espionage C. kickbacks D. corporate piracy E. primary market research
Consider the Coke-Pepsi photo. Marketing and advertising executives were asked to suppose they were a senior executive at PepsiCo when a Coca-Cola employee offered to sell you the marketing plan and sample for a new Coke product at a modest price. When asked in an online survey, __________ percent of the 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
An employee of Coca-Cola attempted to share its marketing plan with an employee of PepsiCo for a modest price. What should the PepsiCo 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 will go away. C. Immediately contact Coca-Cola to advise it 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 accept the plan if it was offered for free.
__________ is often disguised as gifts, consultant fees, and favors, but is used to gain an unethical advantage over competitors. A. Economic espionage B. Utilitarianism C. Business intelligence D. Oligopoly E. Bribery
Bribery is most likely to occur when A. a monopoly exists in the industry. B. industries experience intense competition. C. the country has reached a high level of economic development. D. industries are high-tech in nature. E. industries operate in an economically and politically stable environment.
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. the 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 to aid them in dominating 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 formal statement of ethical principles and rules of conduct is referred to as A. an ethical mission. B. a moral code. C. a core value pronouncement. D. a code of conduct. E. a 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 which? A. the dress, sayings, and manner of work of employees B. contributions to political parties and government officials C. customer and supplier relationships D. accurate record keeping E. conflicts of interest
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. perceived behavior of top management
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 United States to work at Tyson plants. Based on this information, Tyson’s violations may have been the result of __________, one of the major reasons some company employees engage in unethical 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
A recent study of business executives reported that __________ percent had witnessed ethically troubling behavior. A. 7 B. 18 C. 25 D. 45 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. ombudsmen.
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 purchased. E. employees who report unethical or illegal actions of their employers.
An employee who contacts the SEC to report her company’s use of illegal accounting procedures is an example of A. a crony. B. a scab. C. a whistle-blower. D. a corporate snitch. E. an ombudsman.
Which of the following statements best describes the activities of 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 company finds out that a member of his softball team, who works for another firm, “borrowed” some wheelbarrows from that firm to use for his personal use and calls his boss. D. An employee criticizes his employer’s finance personnel to his fellow co-workers for picking the wrong stocks in his retirement fund; they lost value last year despite an upturn in the stock market. E. An employee spends the afternoon at work studying 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 sold Power Wheels with an electrical system that could catch on fire after prolonged use.
Two former sales representatives of Amgen, a biotech company, alleged the company strongly encouraged its salesforce to search confidential medical records in dermatologist’s offices to find names of patients that would benefit Amgen’s drug Enbrel, a psoriasis treatment. After reporting this practice to the president, one rep was fired and the other resigned after receiving a poor performance review. Both sued Amgen, claiming they did not go along with the scheme because they objected to it as being unethical. The two sales representatives 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 which? A. Moral philosophy is usually in written form in the workplace. B. Moral philosophy is learned through the process of socialization with family and friends. C. Moral philosophy is influenced by the corporate culture a person is in. D. Moral philosophy can be learned through formal education. E. Moral philosophy is influenced by the societal culture a person 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 relativism and situational 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. centers on the idea that good will always triumph over evil. B. follows the Golden Rule, “You should treat others as you would like others to treat you.” C. all human beings are basically good. D. considers individual rights or duties as universal, regardless of the outcome. E. prefers the outcome that provides “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 phase out the production of a chemical used as an ingredient in its 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 the 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 key component chemicals. E. The company developed a new product that didn’t contain this chemical and was less costly to produce, resulting in a significantly higher profit margin.
The 3M company stopped production of a chemical it had made for more than 40 years when tests showed the chemical could be accumulated in human tissue, even though the products in which it was used had no known harmful health or environmental effect. The voluntary action by 3M is an example of A. individualism. B. utilitarianism. C. existentialism. D. moral idealism. E. socialism.
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 would not affect the disk drive motor until after six to 12 months of use. This delay in the problem’s appearance meant 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 those 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. moral capitalism. 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.
Nestlé’s marketing of Good Start infant formula, sold by Nestlé’s Carnation Co., promoted the product as hypoallergenic. However, some severely milk-allergic infants experienced serious side effects after using Good Start, including convulsive vomiting. A Nestlé vice president defended the claim and product, saying, “I don’t understand why our product should work in 100 percent of cases. If we wanted to say it was foolproof, we would have called it allergy-free. We call it hypo-, or less, allergenic.” Nestlé’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.
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.
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.
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.
There are three concepts of social responsibility, each relating to particular constituencies. Profit responsibility is characterized by A. the triple bottom line, to achieve sustainable, long-term growth. B. a focus on the obligations an organization has to those who can affect achievement of its objectives. C. an engagement in open and free competition without deception or fraud. D. an unrelenting customer focus. E. a focus on seller-oriented outcomes.
There are three concepts of social responsibility, each relating to particular constituencies. Stakeholder responsibility is characterized by A. the triple bottom line, to achieve sustainable, long-term growth. B. a focus on the obligations an organization has to those who can affect achievement of its objectives. C. an engagement in open and free competition without deception or fraud. D. an unrelenting customer focus. E. a focus on seller-oriented outcomes.
There are three concepts of social responsibility, each relating to particular constituencies. Societal responsibility can be characterized by A. the triple bottom line, to achieve sustainable, long-term growth. B. a focus on the obligations an organization has to those who can affect achievement of its objectives. C. an engagement in open and free competition without deception or fraud. D. an unrelenting customer focus. E. a focus on seller-oriented outcomes.
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 financial returns for its owners or stockholders.
The duty of a firm to maximize financial returns 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 and competitors. E. state and federal government.
Who said the following: “There is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud”? A. Federal Reserve Chairman Ben Bernanke B. Nobel Laureate Paul Krugman C. President Barack Obama D. Nobel Laureate Milton Friedman E. President Ronald Reagan
Genzyme, the maker of Cerdelga, a drug that treats a genetic illness called Gaucher’s disease that affects 10,000 people worldwide, has been criticized for charging up to $300,000 for a year’s worth of Cerdelga. 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, suppliers, and 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 were 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 Corp. executives were widely criticized for their failure to practice __________ 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 consumers, employees, suppliers, and dealers. 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 the preservation of the ecological environment and 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 the preservation of ecological environment and to 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 which? A. sustainable development B. cause marketing C. environmental scans D. green marketing E. social audits
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.
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.
At 3M, the “Pollution Prevention Pays” (3P) program has generated over 9,000 3P projects that eliminated more than 3.5 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.
Levi Strauss & Co. uses eight recycled plastic bottles, which make up at least 20 percent of the content, in fabricating each pair of its Waste<Less jeans. This is an example of A. proactive marketing. B. consumerism. C. an ecological code of ethics. D. green marketing. E. cause marketing.
Which of the following is an example of green marketing? A. McDonald’s added apple snacks to its Happy Meals targeted at children. B. Lowe’s and Home Depot discontinued the sale of lumber and other wood products. C. Levi-Strauss marketed prewashed jeans. D. Joe’s Lawn Service offered a special spring cleanup promotion. E. Walmart implemented buying practices that encourage its suppliers to use containers and packing made from corn, not petroleum-based resins.
Chrysler recycles thousands of tons of wood 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 polystyrene 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, usually clearly marked as such. 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.
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. efforts to tie the charitable contributions of a firm 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. situations in which 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 while for cause marketing 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 supports disadvantaged youth and provides relief after disasters strike when its customers purchase selected company products. This is an example of A. cause marketing. B. philanthropic marketing. C. green marketing. D. public relations. E. societal promotions.
Since 2006, Procter & Gamble has developed a successful brand campaign in partnership with UNICEF that includes the Pampers 1 Pack = 1 Vaccine initiative, which has protected 100 million women and their babies against maternal and neonatal tetanus. This is an example of A. philanthropic marketing. B. corporate altruism. C. the marketing concept. D. green marketing. E. cause marketing.
During its Drive to End Hunger campaign to help fight hunger among the nearly nine million older Americans, Quaker State donated 25 cents per bottle sold of five-quart, specially-marked oil products to the AARP Foundation that works on this issue. This is an example of A. philanthropic marketing. B. corporate altruism. C. the marketing concept. D. green marketing. E. cause marketing.
When a customer buys Avon’s Pink Power Pro Nail Enamel, 100 percent of the profits go to Avon Breast Cancer Crusade. 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.
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. Radio City Music Hall.
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.
Eighty percent of consumers say they will switch to a brand or retailer that supports a good cause if the price and quality of brands or retailers are equal. In short, cause marketing may be a valued _______________ for brands and companies, all other things being equal. A. sales approach B. societal marketing trend C. public relations exercise D. transactional marketing practice E. point of difference
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 based 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.
Conducting business in a way that protects the natural environment while making economic progress is referred to as A. green marketing. B. sustainable development. 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 makes its furniture from rare tropical woods is practicing sustainable development. B. Currently, sustainable development is a luxury in which only large multinational companies can engage. C. Sustainable development is achieved when a firm’s sales growth rate increases an average of 1 to 2 percent a year for a period of at least five years. D. A mining company that replants native vegetation after mining ceases practices 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 percent 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 14000 compliance. D. cause marketing. E. environmental downsizing.
Toyota employs all of the following principles and practices as part of “The Toyota Way” except A. continuously improve business processes and products. B. empower individuals and teams. C. respect people. D. build trust. E. provide personalized and customized products.
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 car
In a recent survey, consumers were asked the following question: “Who should take the lead in addressing environmental issues?” Results suggest that consumers expect that __________ should. A. the federal government B. businesses C. individuals D. environmental groups E. state governments
According to the textbook, JCPenney buys paper for which of the following media? A. in-store signage B. special advertising inserts in magazines such as Cosmopolitan C. newspaper inserts and direct mail pieces D. annual and 10-K reports E. point-of-purchase displays
Purchasing paper for JCPMedia is one example of A. organizational buying. B. online buying. C. on-time delivery. D. derived demand. E. cooperative selling.
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 A. fulfill profit responsibilities. B. formally evaluate paper supplier capabilities. C. eliminate the need for online purchasing. D. shorten the value chain. E. fulfill the auditing role.
Kim Nagele, senior sourcing manager at JCPenney, purchases tons of publication paper annually at a cost of hundreds of millions of dollars. As described and inferred in the text, Mr. Nagele performs all of the following roles in the JCPenney buying center except which? A. user B. gatekeeper C. influencer D. buyer E. decider
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. A. procurement analysis B. break-even analysis C. purchase decision D. information search E. alternative evaluation
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 A. integrated marketing. B. institutional marketing. C. business-to-business marketing. D. reseller marketing. E. organizational marketing.
Business-to-business marketing refers to A. the marketing of goods to companies, governments, or ultimate consumers for use in the creation of goods and services. B. the marketing of products to not-for-profit organizations at a reduced fee or nominal cost for use in the creation of goods and services that they can produce and market to others. C. the marketing of products and services to companies, governments, or not-for-profit organizations for use in the creation of products that they can produce and market to others. D. the marketing of services in the area of intellectual property such as legal, financial, or creative consulting. E. the marketing of an idea to create interest or generate goodwill, not just for an individual brand but also for an entire industry or product class.
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 A. multinational buyers. B. resellers. C. organizational buyers. D. ultimate consumers. E. institutional buyers.
Organizational buyers are A. wholesalers, retailers, and service companies that buy goods and services exclusively for resale. B. any organization that buys products and services for their own use or for resale. C. not-for-profit organizations that buy goods and services for their own use. D. firms that typically buy physical goods and resell them again without any reprocessing. E. all buyers in a nation including ultimate consumers.
Organizational buyers include manufacturers, wholesalers, retailers, service companies, not-for-profit organizations, and government agencies that A. purchase exclusively from one supplier. B. are exempt from state and local taxes. C. sell directly to ultimate consumers. D. sell goods and services for their own use. E. buy products and services for their own use or for resale.
Which of the following organizational buyers purchases raw materials and parts to reprocess into the finished goods they sell? A. retailers B. wholesalers C. agents D. manufacturers E. ultimate consumers
Which of these statements regarding organizational buyers is most accurate? A. Wholesalers and retailers resell the goods they buy without reprocessing them. B. Wholesalers and retailers alter the goods they sell to meet the specific needs of their customers prior to resale. C. Manufacturers purchase processed goods and resell them to suppliers who in turn resell them to ultimate consumers. D. Ultimate consumers can be considered organizational buyers when they purchase in large quantities. E. Government agency purchases are more similar to ultimate consumer purchases than they are to wholesalers and retailers.
All of the following are organizational buyers except which? A. industrial firms B. government units C. ultimate consumers D. resellers E. wholesalers
Organizational buyers are divided into three markets, which are A. industrial, wholesaler, and retailer. B. industrial, retailer, and government. C. retailer, manufacturer, and government. D. industrial, government, and ultimate consumer. E. industrial, reseller, and government.
Which of the following exemplifies an organizational buyer? A. A local baker buys sugar at the grocery store to make cookies with his children at home. B. A dentist buys a new LG Smart TV 55-inch 3D OLED HDTV for her den. C. An architect hires a housecleaning service to clean his apartment. D. The owner of a sushi restaurant hires a window-washing service to clean exterior windows. E. The mayor rents a tuxedo to wear to his daughter’s wedding.
An industrial firm A. is one that is independently owned and takes title to the merchandise it sells. B. buys physical goods and resells them again without any reprocessing. C. deals exclusively with federal, state, and local governments. D. in some way reprocesses a product or service it buys before selling it again to the next buyer. E. only produces a product, not a service.
A firm that reprocesses a product or service it buys before selling the product again to the next buyer is referred to as A. an industrial firm. B. a reseller firm. C. a government agency. D. a wholesaler. E. a retailer.
Insurance companies, farms, auto repair, and fisheries are all examples of companies in the A. consumer market. B. cooperative market. C. reseller market. D. industrial market. E. government market.
Which of the following types of firms are in the industrial market? A. retailing B. construction C. wholesaling D. state governments E. federal regulatory agencies
Which of the following is a service business within the industrial market? A. construction B. mining C. transportation D. government E. farming
__________ comprise the highest percentage of firms in industrial markets. A. Manufacturing firms B. Construction firms C. Agricultural firms D. Mining companies E. Service companies
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? A. finance B. wholesalers C. retailers D. government units E. educational institutions
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. A. a consumer B. a government C. a service D. a reseller E. an industrial
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. A. a consumer B. a government C. an industrial D. a manufacturing E. a reseller
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. A. a heavy goods B. a government C. a service D. an industrial E. a reseller
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. A. a consumer B. a government C. a service D. an industrial E. a reseller
Wholesalers and retailers that buy physical products and resell them without any reprocessing are referred to as A. industrial firms. B. reseller firms. C. government agencies. D. consumer product firms. E. nonprofit firms.
Among organizational markets, the reseller market includes A. manufacturers. B. logistics and supply chain providers. C. government agencies. D. end-user service providers. E. retailers and wholesalers.
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 A. a producer. B. a reseller. C. a service provider. D. a government agency. E. an industrial firm.
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 A. an industrial service provider. B. a health care provider. C. a reseller. D. an industrial firm. E. a government agency.
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 A. an industrial service provider. B. a health care manufacturer. C. an industrial firm. D. a reseller. E. a government agency.
In terms of organizational markets, Amazon.com, Lands’ End, and JCPenney would most likely be classified as A. government units. B. resellers. C. manufacturers. D. wholesalers. E. industrial firms.
Federal, state, and local agencies that buy products and services for the constituents they serve are referred to as A. industrial markets. B. reseller markets. C. consumer markets. D. government units. E. global markets.
When Georgia State University buys new laptops for its faculty, it is operating as A. an industrial market. B. a business market. C. a government unit. D. a consumer market. E. a service provider.
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 A. an industrial market. B. a business market. C. a consumer market. D. a government unit. E. a service provider.
The City of Denver contracts with Solid Waste Management to provide trash collection services for its citizens. The city is operating as A. a government unit. B. an industrial market. C. a business market. D. a consumer market. E. a service provider.
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 A. Standard Industrial Code System (SICS). B. United Nations Central Product Classification System (UNCPCS). C. National Codes of Industry System (NCIS). D. North American Industry Classification System (NAICS). E. Federal System of International Organizations (FSIO).
The North American Industry Classification System (NAICS) A. provides common industry definitions for North America, Central America, and South America to measure economic activity in the Western Hemisphere. B. provides common industry definitions between Canada and the United States to measure economic activity and reduce barriers of trade for cross-border firms. C. provides a classification system for products that is consistent worldwide. D. provides a classification system for products that is consistent across North America, Central America, and South America to measure economic activity in the Western Hemisphere. E. provides common industry definitions for Canada, Mexico, and the United States to measure economic activity in the three member countries.
NAICS provides common industry definitions to facilitate the measurement of economic activity for the member countries of the A. European Union (EU). B. United Nations (UN). C. North American Free Trade Agreement (NAFTA). D. North Atlantic Treaty Organization (NATO). E. World Trade Organization (WTO).
The acronym NAICS stands for A. National Association of Industrial Compliance Standards. B. National Association of Industrial Communication Systems. C. North American Industrial Communication Standards. D. North American Industry Classification System. E. North Atlantic Industrial Classification System.
The NAICS provides common industry definitions for A. Canada, the United Kingdom, and the United States. B. North America, Asia, and Europe. C. North America, Central America, and South America. D. Canada, England, and Australia. E. Canada, Mexico, and the United States.
The NAICS groups economic activity to permit studies of A. multi-language advertising. B. market share, demand, or import competition. C. growth potential in emerging markets. D. best practices for manufacturers. E. job outsourcing and trade flow impacts.
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 A. a country of origin. B. an industry group. C. a specific industry. D. an individual country-level national industry. E. a sector of the economy.
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 A. an industry subsector. B. an industry group. C. a specific industry. D. an individual country-level national industry. E. a sector of the economy.
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 A. an industry subsector. B. an industry group. C. a specific industry. D. an individual country-level national industry. E. a sector of the economy.
Important market characteristics in organizational buying behavior include which of the following? A. large markets but orders become progressively smaller over time B. diminishing international opportunities as more firms enter the market C. many customers placing progressively larger orders over time D. fewer customers but with larger orders E. a market that functions independently of consumer demand
Important market characteristics in organizational buying behavior include which of the following? A. Organizational buying behavior is similar to consumer buying behavior since individuals are involved in both processes. B. Demand for industrial products is elastic instead of inelastic. C. Demand for industrial products and services is derived. D. Purchase orders are much more frequent and they are usually small. E. Forecasting is not as important in organizational buying as in consumer buying.
Important product or service characteristics in organizational buying include which of the following? A. A heavy emphasis is placed on loyalty programs and rebates. B. Direct selling to organizational buyers is rare. C. A fixed, nonnegotiable price is the norm. D. Many of the goods purchased are raw and semifinished. E. Personal relationships are preferred to online buying over the Internet.
Important characteristics in organizational buying include which of the following? A. products that are technical in nature and purchased on the basis of specifications B. a heavy emphasis is placed on maintaining standardization to keep costs down C. coupons and contests are the most frequent forms of promotion D. a fixed, nonnegotiable price is the norm E. personal relationships are preferred to online buying over the Internet
In the organizational buying process, important product or service characteristics include A. delivery time, technical assistance, and post-sale service. B. low price, buyer incentives, and extended contracts. C. buyer incentives, technical assistance, and exclusive contracts. D. quantity discounts, delivery time, and exclusive contracts. E. low price, buyer incentives, and post-sale service.
Important buying process characteristics in organizational buying behavior include which of the following? A. Few large transactions are made over the Internet due to concerns of industrial espionage. B. Negotiations, purchases, and delivery occur in real time at an accelerated rate. C. There are often reciprocal arrangements and negotiations between buyers and sellers. D. Most purchases are made through government-licensed negotiators. E. Direct selling to organizational buyers is rare because it is cost-prohibitive.
Which of the following statements about marketing mix characteristics in organizational buying behavior is most accurate? A. Few large transactions are made over the Internet. B. The actual buyer retains all of the influence in the buying decision. C. Advertising is very simplistic in nature. D. Direct selling to organizational buyers is the rule. E. Only finished goods need a developed marketing mix; resellers need worry just about the transaction.
The demand for industrial products and services that is driven by demand for consumer products and services is referred to as A. secondary marketing. B. derived demand. C. reciprocal supply. D. demand elasticity. E. sequential demand.
Derived demand refers to A. a graph relating the quantity sold and price, which shows the maximum number of units that will be sold at a given price. B. the demand for industrial products and services that is driven by the demand for consumer products and services. C. the relationship between total revenue and total cost to determine profitability at various levels of output. D. the point on a demand curve where supply and demand intersect. E. the percentage change in quantity demanded relative to a percentage change in price.
Derived demand means the demand for industrial products and services is driven by, or derived from, the A. NAICS statistical models. B. gross national product. C. demand for consumer products and services. D. demand for industrial products in other categories or markets. E. demand for government products and services.
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. A. unitized B. derived C. reseller D. applied E. implied
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. A. unitized B. reseller C. applied D. implied E. derived
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 A. reactive demand, which is tied to primary economic drivers like the construction industry. B. unitary demand, which is tied to the average income level for Spruceland and its competitors. C. derived demand, which is tied to the sales of appliances. D. inelastic demand, which is tied to the cost of the components of the pallets. E. elastic demand, which is tied to the cost of the components of the pallets.
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 A. derived. B. unitized. C. industrial. D. applied. E. reseller.
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. A. derived B. unitized C. industrial D. applied E. reseller
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. A. applied B. unitized C. industrial D. derived E. consumer
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. A. pay estimated sales taxes in advance B. move up the time required to execute a purchase agreement C. get competitive bids from at least three prospective suppliers D. forgo the purchase because senior management is unlikely to approve it E. create separate orders in amounts less than that the threshold
All of the following statements about the purchase involved in organizational buying are true except which? A. The length of time required to arrive at a purchase agreement can vary with size of purchase. B. The dollar value of a single purchase made by an organization often runs into thousands or millions of dollars. C. The size of purchase impacts who participates in the purchase decision. D. The size of purchase impacts who makes the final decision. E. The size of the purchase is typically smaller than that in consumer buying but it is done more frequently.
Firms marketing consumer products or services often try to reach thousands or millions of individuals or households. Firms selling to organizations A. try to reach tens of millions of wholesalers, retailers, and government units. B. are restricted to far fewer buyers. C. hope to obtain similar numbers of business customers, or even more. D. do not have customers, per se. E. also must sell to ultimate consumers because of the market potential.
An organization buys products and services for one main reason, which is to A. achieve its own objectives. B. beat its competitors. C. satisfy the needs of its suppliers. D. employ people. E. maintain inventory.
The primary organizational buying objective for business firms is to A. create an atmosphere of inclusiveness. B. help smaller companies stay in business. C. increase the proficiency of its buyers. D. help the firm increase profitability. E. balance inventory.
The American Red Cross provides disaster relief, among many other services. As a nonprofit organization, its primary buying objective is to A. increase profits through reducing costs. B. increase profits through increasing donations. C. diversify its services mix to survive an economic downturn. D. meet the needs of the groups it serves. E. maintain purchase levels to support its suppliers.
Many companies have broadened their buying objectives to include an emphasis on A. purchasing from as many vendors as possible to avoid component shortfalls. B. purchasing from start-up firms to grow the economy. C. diversifying their product lines and brand extensions to reduce the risk of failure for any one item. D. pricing freezes to maintain consistent quantities demanded from consumers. E. proactively purchasing from minority-owned suppliers and vendors.
The primary reason companies have placed an emphasis on buying from minority- and women-owned suppliers and vendors is A. new federal government regulations require it. B. they can help a firm meet or exceed its objectives in sales, profits, or customer satisfaction. C. it is the socially responsible action expected of leading organizations. D. it can attract new target markets. E. these companies will work harder for less money.
The objective attributes of the supplier’s products and services and the capabilities of the supplier itself are collectively referred to as A. the supplier consideration set. B. derived demand factors. C. evaluative criteria. D. performance metrics. E. organizational buying criteria.
Organizational buying criteria refer to A. the restrictions placed on potential solutions to a problem in a purchase decision. B. the specific qualifications of a potential customer based upon past performance, reliability, and consistency regarding the purchase of an organization’s offerings. C. the qualifications of the supplier’s products and services based on recommendations from competitors. D. the objective attributes of the supplier’s products and services and the capabilities of the supplier itself. E. the factors that an ultimate consumer would consider that represent both the objective attributes of a brand and the subjective ones to compare different products and brands.
Organizational buying criteria serve the same purpose as __________ criteria used by consumers. A. consideration B. evaluative C. decision D. alternative E. prepurchase
There are seven commonly used organizational buying criteria. One of them is A. production capacity. B. loyalty. C. flexibility. D. adaptability. E. quick and efficient communication.
There are seven commonly used organizational buying criteria. One of them is A. flexibility. B. past performance on contracts. C. adherence to government regulation. D. senior management directives. E. consumer demand.
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 A. a supplier value dimension. B. a derived demand factor. C. an evaluative criterion. D. an external performance measure. E. an organizational buying criterion.
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 A. buyer development. B. a supply partnership. C. a make-buy decision. D. supplier development. E. buyer-seller reciprocity.
Supplier development refers to A. the deliberate effort by suppliers to build relationships that shape buyers’ needs, as well as the needs of ultimate consumers. B. the practice of dividing large orders among several suppliers rather than a single one to avoid possible manufacturing delays due to bad weather, plant mishaps, union issues, etc. C. 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. D. the practice of establishing a close relationship with one supplier rather than many to ensure loyalty and preferential treatment when filling exceptionally large orders. E. the shift of a firm from supplier to manufacturer when repeated experience with a product and excellent buyer/seller relationships make the change both feasible and profitable.
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 A. buyer development. B. make-buy decisions. C. supply partnerships. D. supplier development. E. directive purchasing.
Which of the following characterizes organizational buyer-seller relationships? A. Purchases are often made after lengthy or complex negotiations. B. Purchases are usually of small dollar values. C. Short-term contracts are often prevalent. D. Reciprocal arrangements are illegal. E. Delivery schedules are less important than production capacity.
Which of the following characterizes organizational buyer-seller relationships? A. Purchases are often made after brief negotiations. B. Purchases are usually of small dollar values. C. Long-term contracts are often prevalent. D. Reciprocal arrangements are prohibited by the federal government. E. Delivery schedules are largely irrelevant.
Which of the following characterizes organizational buyer-seller relationships? A. Purchases are often made after brief negotiations if any. B. Supply partnerships may eventually develop. C. Short-term contracts are often prevalent. D. Reciprocal arrangements provide the most flexibility to buyer and seller. E. Delivery schedules are less important than production capacity.
The existence of reciprocal arrangements, the long-term contracts, and the buyer-seller relationships that can evolve into supply partnerships, are all examples of A. illegal activities that are a common weakness of organizational buying. B. illegal activities that result from collusion between buyers and sellers. C. activities that are strictly governed by the NAICS. D. the nature of relationships between buyers and sellers in organizational buying. E. activities that result from extreme competition between manufacturers when there are too few suppliers.
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 A. a reciprocity agreement. B. exclusive dealing. C. supplier alliance. D. a buyer-seller relationship. E. a tying arrangement.
An industrial buying practice in which two organizations agree to purchase each other’s products and services is referred to as A. a tying arrangement. B. exclusive dealing. C. reciprocity. D. a supply partnership. E. noncompetitive bidding.
In a buyer-seller relationship, reciprocity refers to A. the practice whereby a seller requires the purchaser of one product to buy another item in the line. B. an industrial buying practice in which two organizations, in this case a manufacturer and a supplier, agree to purchase each other’s products and services. C. an arrangement a manufacturer makes with a reseller to only handle its products and not those of competitors. D. the illegal practice of refusing to purchase a seller’s products unless the seller agrees not to purchase that product or any similar products from any other buyer. E. when a supplier requires a buyer purchasing some of its products to also buy others.
The practice of __________, which can affect the normal operation of the free market and limit the flexibility of buyers, is disapproved of by the U.S. Justice Department. A. tying agreements B. just-in-time procurement C. quid pro quo D. supply partnerships E. reciprocity
Although not strictly illegal, the U.S. Justice Department frowns on reciprocity because the practice A. gives an unfair advantage to smaller companies. B. gives an unfair advantage to larger corporations. C. reduces the amount of taxes paid by the parties involved. D. restricts the normal operation of the free market. E. encourages free trade.
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. A. reciprocity B. tying agreements C. just-in-time procurement D. quid pro quo E. supply partnerships
If General Motors (GM) purchases Borg-Warner transmissions, and Borg-Warner buys trucks and cars from GM, they would be demonstrating which type of buyer-seller interaction? A. exclusive dealing B. supply partnerships C. tying arrangements D. noncompetitive bidding E. reciprocity
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. A. supplier development agreement B. reciprocal arrangement C. shareholder relationship D. supply partnership E. strategic alliance
A supply partnership refers to A. an arrangement a manufacturer makes with a reseller to handle only its products and not those of competitors. B. the illegal practice of refusing to purchase a seller’s products unless the seller agrees not to purchase that product or any similar products from any other buyer. C. a supplier that requires a buyer purchasing some products from it to also buy others. D. a relationship that exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost of or increasing the value of products and services delivered to the ultimate consumer. E. the practice whereby a seller requires the purchaser of one product to also buy another item in the line.
A supply partnership exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of A. putting competitors of both buyers and sellers out of business. B. lowering costs and increasing profits for the supplier. C. lowering costs or increasing value of products or services to the ultimate consumer. D. creating a single channel of distribution. E. creating an exclusionary relationship from all other buyers and sellers.
Milsco Manufacturing markets __________ in partnership with its customers like Harley-Davidson. A. motors B. braking systems C. transmissions D. seats E. customized wheels
Milsco Manufacturing emphasizes A. signing lifetime contracts with suppliers to demonstrate its loyalty to them. B. supplier partnerships when designing products for its customers. C. reciprocity arrangements with its customers so that each can maximize profit. D. co-branding as a form of supply partnerships with customers. E. extending health care benefits to its suppliers’ employees as a result of the Affordable Care Act.
Apple Inc. custom-orders the microprocessors for its iMac, iPhone, and iPad. Intel makes chips for the iMac and Samsung produces Apple-designed chips for the iPhone and iPad. Intel and Samsung work with Apple to minimize costs for each type of chip while maximizing quality, ultimately giving customers good value for their money. These are examples of A. symbiotic partnerships. B. make-buy decisions. C. reciprocal agreements. D. supply partnerships. E. exclusive dealing.
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 A. ISO 9000 certification. B. ISO 14000 certification. C. a supply partnership. D. sustainable development. E. cause marketing.
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 A. ecological procurement. B. sustainable procurement. C. green marketing. D. supplier partnership. E. stakeholder procurement.
Because many companies are concerned with the depletion of natural resources, supply partnerships often include provisions for A. green marketing. B. regulatory exemptions. C. stakeholder procurement. D. ecological procurement. E. sustainable procurement.
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 A. green marketing. B. ISO 14000 certification. C. sustainable procurement. D. ecological procurement. E. cause marketing.
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 A. ISO 9000 certification. B. sustainable procurement. C. cause marketing. D. ecological procurement. E. sustainable development.
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 A. using ecological buying centers. B. complying with government regulations. C. engaging in cause marketing. D. using sustainable procurement. E. meeting ISO 9000 standards.
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 A. the consumer purchase decision process. B. the industrial purchase procedure. C. organizational buying behavior. D. the offering purchase framework. E. the sustainable procurement process.
Organizational buying behavior is A. the actions consumers take in purchasing and using products and services, including the mental and social process that come before and after the action. B. 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. C. purchase behavior based upon derived demand. D. determining what to purchase and the quantity to purchase based upon the derived supply. E. the process that organizations use to purchase the raw materials and tools used in the manufacturing of a product.
In organizations, the buying function involves gathering and screening information about products and services, prices, and suppliers, which are known as A. agents. B. procurement sources. C. shops. D. vendors. E. resellers.
Organizational buying behavior is similar to consumer behavior in some ways and different in others. Common to both is that they A. use the same five stages in the buying decision process. B. use formal vendor rating when choosing among alternative brands. C. are affected by derived demand. D. have virtually unlimited options for suppliers. E. rely on gatekeepers to control product information.
Which of the following possible characteristics of consumer buying is least likely to enter into an organizational buying decision? A. comparison of product performance with expectations B. purchase decisions based on the highest overall evaluation C. alternatives evaluated on important criteria D. information gathered from internal and external searches E. problem recognition triggered by self-actualization motives
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, A. only four stages are used. B. fewer individuals are involved. C. firms are not affected by derived demand. D. the post-purchase evaluation behavior is more formalized. E. there is less reliance on gatekeepers to control product information.
The first stage in the organizational buying decision process is A. information search. B. antecedent states. C. alternative evaluation. D. purchase decision. E. problem recognition.
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? A. information search B. supplier search C. alternative evaluation D. problem recognition E. purchase decision
At which stage of the organizational buying decision process would design and production engineers draft specifications? A. problem recognition B. information search C. alternative evaluation D. purchase decision E. value analysis
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? A. problem recognition B. information search C. purchase decision D. post-purchase behavior E. alternative evaluation
At which stage of the organizational buying decision process would purchasing assess the financial status of potential suppliers? A. problem recognition B. information search C. alternative evaluation D. purchase decision E. post-purchase behavior
At which stage of the organizational buying decision process would a firm use key organizational buying criteria such as price, quality, delivery time, and technical capability to select a supplier? A. problem recognition B. information search C. purchase decision D. purchase review E. alternative evaluation
During the next-to-last stage of the organizational buying decision process, the organization A. drafts specifications. B. formally rates suppliers that were used. C. evaluates supplier facilities. D. awards the contract. E. recognizes a need for change.
Which of the following is indicative of the purchase decision stage of the organizational buying decision process? A. The purchase decision is usually quick once the information search has been completed. B. Even after the bid is submitted and even once accepted, terms must still be negotiated. C. Even if several vendors make it onto the bidder’s list, ultimately only one supplier is chosen. D. If a supplier on the bidder’s list is not selected, it is rarely told the reason it was rejected. E. Once an agreement has been formally reached, neither the buyer nor the seller is permitted to make changes to the terms of the contract.
What is the last stage of the organizational buying decision process? A. information search B. post-purchase behavior C. alternative evaluation D. purchase decision E. purveyor review
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. A. problem recognition B. information search C. purchase decision D. post-purchase evaluation E. performance review
Comparing the stages in a consumer and organizational purchase decision process reveals key differences. In organizations, _____________ becomes more important for deadlines and quality control, and since a long-term relationship is anticipated. A. choice variety B. supplier audit C. purchase decision D. supplier capability E. performance review
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? A. purchase decision stage B. information search stage C. post-purchase behavior stage D. alternative evaluation stage E. problem recognition stage
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 A. gatekeeper. B. buying center. C. purchasing department. D. procurement committee. E. acquisition office.
A buying center refers to A. an online trading community that brings together buyers and supplier organizations to make possible the real time exchange of information, money, products, and services. B. the department within a firm responsible for the logistics of placing, tracking, and delivering orders to other departments within the firm. C. the department within a firm responsible for the logistics of placing, tracking, and delivering orders to ultimate consumers. D. 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. E. the department within a firm that allows purchases to be made from a centralized location from multiple vendors at the same time.
Large multistore chain retailers such as 7-Eleven convenience stores, Safeway, and Target use a highly formalized buying center that is referred to as A. an ad hoc committee. B. a buying committee. C. a merchandise procurement center. D. a purchasing department. E. a purchasing control system.
Marketers need to understand their firms’ buying centers. A series of questions can be used to facilitate this process. Which of the following questions would be the least useful when trying to understand the operations of a buying center? A. Which individuals are in the buying center for the product or service? B. What is the relative influence of each member of the group? C. What are the buying criteria of each member? D. How does each member of the group perceive our company, our products and services, and our salespeople? E. What criteria were used to select the members of the buying center?
Which of the following statements most closely describes the people in the buying center of a medium-sized manufacturing plant? A. The composition of the buying center remains constant over long periods of time. B. The buying center avoids cross-functional teams whenever possible. C. The composition of the buying center depends on the specific item being purchased. D. The purchasing manager is an occasional member of the buying center. E. Most government units use a formal buying center to arrive at buying decisions.
In an effort to make better and more efficient purchase decisions, the Ford Motor Co. includes various people, depending on the purchase situation. Individuals may include key personnel from various departments, including research and development, finance, marketing, shipping, and sales. This is a description of Ford’s A. selling committee. B. sustainable procurement department. C. purchasing unit. D. buying center. E. buying committee.
To lower costs and reduce manufacturing time, Michelin has people work together on important purchases. These people include individuals in the roles of buyers, deciders, gatekeepers, and others, as needed. This type of cross-functional group is known as a A. purchasing committee. B. sustainable procurement panel. C. buying center. D. supply partnership. E. purchasing task force.
All of the following are roles in a buying center except which? A. specifiers B. deciders C. buyers D. influencers E. users
The people in the organization who actually consumer the product or service are referred to as __________, which is one role in the buying center. A. consumers B. deciders C. buyers D. influencers E. users
On a visit to Conner Industries, a West Plains Band Saw salesperson heard a production employee saying, “This band saw has a 36-inch wheel that could really save us time, and with its adjustable height, it can be operated by someone tall like me as well as by our shorter workers. I bet this would speed up my production time by 30 percent. Why don’t we order this band saw?” The person the salesperson heard giving input has which buying center role? A. purchasing agent B. decider C. buyer D. user E. motivator
Becca, an office manager for a small construction company, met with representatives from Xerox and Minolta, along with the president and the accountant, to compare options for a new copier for the office. Since she made most of the copies, Becca wanted to see the features of the machines, though her boss would have to approve the final purchase. Becca has what role in the buying center? A. purchasing agent B. decider C. buyer D. user E. motivator
In a buying center, __________ affect the buying decision, usually by helping define the specifications for what is bought. A. gatekeepers B. deciders C. buyers D. influencers E. users
Within the buying center, influencers are people who A. have the formal authority and responsibility to select the supplier and negotiate the terms of the contract. B. control the flow of information in the buying center. C. affect the buying decision usually by helping define the specifications for what is bought. D. have the formal or informal power to select or approve the supplier that receives the contract. E. actually use and evaluate the product or service.
A computer company salesperson invites the IT managers of its top 10 customers (in terms of dollar sales) to view a demonstration of the firm’s new product line, so the salesperson can obtain their opinions regarding various options and configurations that could be offered. These IT managers are most likely to be the __________ of their organizations’ buying centers. A. gatekeepers B. influencers C. reciprocity arrangers D. buyers E. users
In a buying center, __________ have formal authority and responsibility to select the supplier and negotiate the terms of a contract. A. buyers B. gatekeepers C. adopters D. influencers E. users
The purchasing manager of Ingram Printing has selected HP as the supplier of its new high-speed printer and negotiated the terms of the contract. The purchasing manager is the __________ for Ingram. A. user B. gatekeeper C. influencer D. buyer E. decider
Lara assumed the __________ role in the buying center when she shook the salesperson’s hand and said, “Ms. Hron, we would like to accept your bid. I’ll expect 48 boxes of ring shank nails to be delivered by November 8, and we will pay the agreed-upon price of $21.74 per box.” A. gatekeeper B. broker C. buyer D. influencer E. user
In a buying center, __________ have the formal or informal power to select or approve the supplier that receives the contract. A. gatekeepers B. deciders C. buyers D. influencers E. users
Within the buying center, deciders are people who A. have the formal authority and responsibility to select the supplier and negotiate the terms of the contract. B. control the flow of information in the buying center. C. have the formal or informal power to select or approve the supplier that receives the contract. D. affect the buying decision usually by helping define the specifications for what is bought. E. actually use and evaluate the product or service.
For routine orders, the decider is usually A. the buyer or purchasing manager. B. the CEO. C. the COO. D. the head of R&D. E. the customer.
An IT engineer specifies the type of electronic shopping cart to be used on the company’s new website. The engineer also chooses the supplier that receives the contract to provide the software. In the buying center, this person is the A. gatekeeper. B. decider. C. broker. D. influencer. E. user.
People who control the flow of information in the buying center, such as technical experts and secretaries, can keep salespeople and information from reaching others in the buying center and are referred to as A. deciders. B. obstructionists. C. gatekeepers. D. filters. E. influencers.
A sales representative for a pharmaceutical company visits the doctor’s office, hoping to explain a new drug to the doctor. However, the office receptionist explains that the doctor is with patients and will not be able to see the sales rep. The receptionist is acting as A. a user. B. an influencer. C. a buyer. D. a decider. E. a gatekeeper.
Cassidy is part of the buying center for a large manufacturer. Her field of expertise is logistics and she is responsible for choosing transportation providers for the company. A sales representative for Yellow Roadway, a successful trucking firm, regularly buys Cassidy’s secretary lunch. The representative does this because she views the secretary as __________ and wants to be sure that information about her company reaches Cassidy. A. a gatekeeper B. a decider C. an influencer D. an obstructionist E. a power broker
Beth is part owner of a chain of auto repair shops. Her company was considering adding tire sales in some of its facilities, and several people were slated to meet to discuss the idea. Beth gathered information about possible distributors. Her son had been laid off from a job with one of them, so she removed this company from the group she was preparing to present to the others. Here, Beth was acting in what role in the buying center? A. gatekeeper B. decider C. user D. obstructionist E. power broker
Mark manages a small family-owned amusement park. He believes the park can increase its profits if its owners will buy three food concession trailers. Mark has contacted three dealers of such trailers, which come fully customized to user specifications. After receiving three bids, Mark concluded that Century Industries has the best offer. He will present only the Century Industries information to the family tomorrow. What buying center roles does Mark perform? A. gatekeeper and buyer B. decider and user C. buyer and decider D. influencer and buyer E. influencer, gatekeeper, and decider
Researchers who have studied organizational buying identify three types of buying situations, called __________, which include new buy, modified rebuy, and straight rebuy. A. purchase criteria B. buy classes C. buying centers D. consideration sets E. purchase hierarchies
Organizations face three specific kinds of buying situations. They are new buy, straight rebuy, and modified rebuy. Collectively, these situations are referred to as A. industrial buying behavior. B. reseller buying behavior. C. buy classes. D. purchase criteria. E. consideration sets.
The three types of organizational buy classes are A. industrial, reseller, and government. B. consumer products, industrial goods, and services. C. users, influencers, and deciders. D. straight purchase, barter, and countertrade. E. new buy, straight rebuy, and modified rebuy.
Buy classes refer to the three types of organizational buying situations: A. buy, lease, and rent. B. new buy, make, and reprocess. C. manufacturing contracts, consulting contracts, service contracts. D. new buy, straight rebuy, and modified rebuy. E. new buy, refurbish, and used buy.
The buying situation where an organization is a first-time buyer of the product or service is referred to as A. an initial buy. B. a new buy. C. a preliminary buy. D. a straight rebuy. E. a modified rebuy.
A buy class situation affects buying center tendencies in different ways. If there are many people involved, the problem definition is uncertain, and the time required for a decision is long, the buy class situation is most likely a A. standard buy. B. straight rebuy. C. conditional rebuy. D. modified rebuy. E. new buy.
A buy class situation affects buying center tendencies in different ways. If there is one person involved, the problem is well-defined, and the buying objective is to find a low-priced supplier, the buy class situation is most likely a A. modified buy. B. straight rebuy. C. conditional rebuy. D. new buy. E. standard buy.
A buy class situation affects buying center tendencies in different ways. If there are two or three people involved, the problem is a minor modification, and the suppliers considered are the present ones, the buy class situation is most likely a A. conditional buy. B. straight rebuy. C. new buy. D. modified rebuy. E. standard buy.
A buy class situation affects buying center tendencies in different ways. If the buying objective is to find a good solution, the suppliers considered are both new and present, and the buying influence includes technical and operating personnel, the buy class situation is most likely a A. modified buy. B. new buy. C. straight rebuy. D. make-buy. E. standard buy.
If a purchase is a new buy for a manufacturer, the seller should expect A. specifications to be changed many times before the buy is completed. B. a lot of conflict. C. many people to be involved in the purchase decision. D. to have to do some favors for the decision makers. E. to receive confirmation of a contract quickly.
If a purchase is a new buy for a manufacturer, the seller should A. expect a long time for a buying decision to be reached. B. neutralize the typically high levels of conflict. C. maintain flexibility, since specifications are likely to be changed several times before the buy is completed. D. be prepared to do some favors for the decision makers. E. expect to be the only supplier being considered.
At the weekly meeting for Choice Hotels, the marketing manager said, "We need an inexpensive creative way to increase awareness of our hotels among people who travel by automobile. To do that, I want to find a different advertising medium that the other hotel chains are not using now." The purchase of this advertising on an alternative medium would be an example of A. a new buy. B. a straight rebuy. C. a converted rebuy. D. a modified rebuy. E. an initial buy.
A reorder of an existing product or service from a list of acceptable suppliers is referred to as a A. new buy. B. straight rebuy. C. modified rebuy. D. standard reorder. E. make-buy.
An assistant heard his supervisor in the supply room yell, “Call Crate & Barrel. We need another case of its large coffee mugs for the conference next week.” The supervisor was asking the assistant to make a A. new buy. B. straight rebuy. C. modified rebuy. D. make-buy. E. standard reorder.
The department secretary orders pens, copy paper, and printer ink cartridges for the department from the Corporate Express catalog nearly every month. This is an example of a A. new buy. B. straight rebuy. C. modified rebuy. D. make-buy. E. standard reorder.
The buying situation where users, influencers, or deciders want to change product specifications, price, delivery schedule, or supplier for an item that is largely the same as what was previously purchased is referred to as a A. secondary buy. B. straight rebuy. C. modified rebuy. D. adapted buy. E. remake buy.
In a __________ situation, users, influencers, or deciders in the buying center want to change product specifications, price, delivery schedule, or suppliers, though the product is largely the same. A. derived buy B. straight rebuy C. make-buy D. rebuy class E. modified rebuy
A university’s marketing department typically purchases backpacks with its logo embroidered on them for all incoming freshmen. This year, because faculty have heard complaints, the marketing chair wants to buy similar backpacks but find one that is a little more durable. This is an example of a A. new buy. B. straight rebuy. C. make-buy. D. modified rebuy. E. standard reorder.
A software company has updated its logo. It now needs to order new letterhead and business cards. This purchase would be a A. modified rebuy. B. straight rebuy. C. new buy. D. standard reorder. E. class buy.
Figure 5-4 shows the three buy classes encountered by organizational buyers. A is referred to as a A. modified rebuy. B. straight rebuy. C. new buy. D. standard reorder. E. class buy.
Figure 5-4 shows the three buy classes encountered by organizational buyers. B is referred to as a A. modified rebuy. B. straight rebuy. C. new buy. D. standard reorder. E. typical buy.
Figure 5-4 shows the three buy classes encountered by organizational buyers. C is referred to as a A. modified rebuy. B. straight rebuy. C. new buy. D. standard reorder. E. altered buy.
A straight rebuy is __________ while a modified rebuy is __________. A. an exchange; a resale B. a routine reorder; an exchange C. a first-time order; a routine reorder D. a changed order; a first-time order E. a routine reorder; a changed order
Business-to-business electronic commerce over the Internet A. is nearly equivalent to consumer electronic commerce when measured by the total dollar value of all online transactions. B. is at least four times greater than consumer electronic commerce when measured by the total dollar value of all online transactions. C. has dramatically decreased since face-to-face communication between a firm’s sales force and its potential customers is so important. D. is impossible to estimate since companies will not share information. E. has never been popular since timely information is unavailable or deemed to be proprietary.
Online buying in organizational markets is prominent because Internet technology A. allows companies to increase their innovation cycles. B. substantially increases brand loyalty. C. conveys timely information quickly. D. narrows the potential customer base for many products. E. eliminates marketing costs.
Online trading communities that bring together buyers and supplier organizations to make possible the real time exchange of information, money, products, and services are referred to as A. webfronts. B. iCommerce. C. e-commerce marketspaces. D. e-marketplaces. E. X-changes.
E-marketplaces refer to A. virtual or holographic purchasing marketspaces that allow manufacturers to estimate demand based upon different changes in environmental forces. B. websites that allow consumers to make direct purchases from a manufacturer rather than through a traditional retail outlet. C. online trading communities that bring together buyers and supplier organizations to make possible the real time exchange of information, money, products, and services. D. computer simulations that allow manufacturers to estimate how much inventory to keep on hand based upon different purchasing scenarios. E. a computer database co-sponsored by the U.S. Department of Commerce and the World Trade Organization (WTO) that houses all public access records for the purpose of aiding American and global businesses.
Another name for an e-marketplace is A. an e-hub. B. an E-place. C. an e-trade. D. an E-xchange. E. a 4NXchange.
E-marketplace can take two different formats, which are A. bricks-and-mortar exchanges and clicks-and-mortar exchanges. B. privately owned trading communities and open-to-the-public trading communities. C. networked exchanges or public trading communities. D. independent trading communities or private exchanges. E. public exchanges and networked exchanges.
Small businesses benefit from independent __________ like PlasticsNet, Hospital Network.com, and TextileWeb. A. Webfronts B. clicks-and-mortar C. e-marketplaces D. iMarkets E. integrated markets
For e-marketplaces, large companies tend to favor __________ that link them with their network of qualified suppliers and customers. A. centralized markets B. decentralized markets C. private exchanges D. segregated markets E. independent trading communities
Independent e-marketplaces act as a neutral third party, provide an Internet technology trading platform, and provide __________ market that enable exchanges between buyers and sellers. A. a centralized B. a deconsolidated C. a segregated D. an integrated E. a noncompetitive
Which of the following statements about e-marketplaces that act as independent trading communities is false? A. These trading communities allow buyers to easily compare offerings from various sellers. B. Independent trading communities charge a fee for their service. C. Independent trading communities often consist of thousands of geographically dispersed buyers and sellers. D. This independent type of trading community is favored by large companies. E. Independent trading communities often operate in an environment where demand and supply fluctuations cause volatile prices.
PlasticsNet, Hospital Network.com, TextileWeb, and eBay are all examples of A. Webfront operations. B. clicks-and-mortar stores. C. e-marketplaces. D. integrated markets. E. iMarkets.
In the construction industry, an independent trading community such as Buzzsaw.com or Cephren.com enables a general contractor to manage and coordinate the many suppliers, subcontractors, architects, and engineers necessary to complete a project. Buzzsaw.com and Cephren.com are examples of A. Webfronts. B. web chains. C. X-changes. D. e-syndicates. E. e-marketplaces.
The predominant person-to-person trading community in the world is A. Facebook. B. Amazon. C. NASDAQ. D. Craigslist. E. eBay.
eBay is the predominant person-to-person trading community in the world. eBay is an example of A. a Webfront operation. B. a clicks-and-mortar store. C. an e-marketplace. D. a noncompetitive market. E. an integrated market.
When a seller puts an item up for sale and would-be buyers are invited to bid in competition with one another, it is referred to as A. a reverse auction. B. a traditional auction. C. a bidder’s war. D. an e-auction. E. a Webfront auction.
When prospective buyers observe the bids of others and decide whether or not to increase the bid price, it is called a A. forward auction. B. reverse auction. C. Webfront auction. D. traditional auction. E. bidder’s war.
Dell, Inc., sells surplus, refurbished, or closeout computer merchandise at its dellauction.com website to many buyers who bid competitively against one another. This is an example of a A. traditional auction. B. reverse auction. C. bidder’s war. D. I-auction. E. Webfront auction.
Which type of auction does Figure 5-5a represent? A. reverse auction B. horizontal auction C. vertical auction D. diagonal auction E. traditional auction
What type of online auction includes one seller and many buyers? A. forward auction B. reverse auction C. traditional auction D. vertical auction E. bidder’s war
In which type of auction is there an upward pressure on bid prices as more would-be buyers become involved? A. reverse auction B. horizontal auction C. vertical auction D. diagonal auction E. traditional auction
In an e-marketplace, an online auction in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other is referred to as a A. vertical auction. B. reverse auction. C. horizontal auction. D. traditional auction. E. reciprocal auction.
A reverse auction refers to an online auction A. where firms may sell their overstock—unused raw materials, packaging, and tools—to the highest bidder. B. in which a manufacturer offers to share its facilities, inventory, or services with other smaller firms that are invited to bid in competition with each other. C. in which a smaller manufacturer seeks to share the facilities, inventory, or services of a larger firm, and invites those firms to bid in competition with each other. D. in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other. E. where firms seek to purchase other firms’ overstock—unused raw materials, packaging, and tools—while trying to find the lowest price possible.
Reverse auctions A. are seller-initiated. B. benefit the sellers significantly more than the buyers. C. have an increasing number of buyers as the auction progresses. D. put downward pressure on prices. E. have many buyers.
Reverse auctions A. are buyer-initiated. B. benefit the sellers significantly more than the buyers. C. have an increasing number of buyers as the auction progresses. D. do not allow sequential bidding. E. have many buyers at the start of the auction.
Which type of auction does Figure 5-5b represent? A. traditional auction B. inverse auction C. reverse auction D. horizontal auction E. reciprocal auction
What type of online auction includes one buyer and many sellers? A. forward auction B. reverse auction C. traditional auction D. vertical auction E. bidder’s war
In which type of auction is there a downward pressure on bid prices for the buyer’s business as more would-be suppliers become involved? A. traditional auction B. vertical auction C. reverse auction D. horizontal auction E. reciprocal auction
Which of the following statements about Trek Bicycles is false? A. Trek’s Eco Design initiative is an example of sustainable procurement. B. Trek has an extensive product line of bicycles. C. Trek has always been on the cutting edge, using the latest innovations in its designs. D. Trek views the bicycle as an important form of alternative transportation, not just as recreation. E. Trek’s business model has evolved from manufacturing bicycles to marketing other two- and four-wheeled vehicles, such as motorcycles and all-terrain vehicles (ATVs).
All of the following people are part of the Trek buying center except which? A. Trek executives B. production workers C. representatives from research and development D. quality control employees E. a purchasing manager
Trek uses several organizational buying criteria to evaluate potential suppliers. These include all of the following except which? A. price B. environmental impact C. warranties and claim policies D. quality E. delivery capabilities
When Trek orders a seat or saddle for one of its models that has a slightly different material for the cover only but the other components are the same as existing saddles used on other bikes, this purchase situation is known as a A. new buy. B. straight rebuy. C. standard reorder. D. modified rebuy. E. make-buy.
1. Why did Dell, Inc., embark on a global growth initiative?
2. In what way is Dell's expansion into the global arena a departure from its prior marketing practices?
3. Dell established its company primarily with direct telephone-and Internet-based sales. In terms of Dell's global expansion strategy, which of the following statements is most accurate?
4. Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is
9. The practice of shielding one or more sectors of a country's economy from foreign competition through
10. Protectionism refers to
11. The argument for protectionism is that it
12. Those in favor of protectionism argue that it
13. Recently, the United States imposed a 35% tariff on Chinese tire imports in hopes of sustaining U.S. jobs in tire manufacturing. This addition of tariffs is an example of
14. Beginning January 1, 2005, China lifted the import quotas and lowered tariffs on automobiles. This removal of the quotas and the lowering of tariffs is an example of
15. Which of the following issues raises concerns about the ethics of protectionism?
16. The question mark in Figure 6-1 above which results from the imposition of tariffs and quotas is referred to as
17. The question mark in Figure 6-1 above leads to which of the following as a result of the imposition of tariffs and quotas?
18. Government taxes on products or services entering a country that primarily serve to raise prices on imports are referred to as
19. Tariffs refer to
20. The U.S. Rice Millers' Association claims that if the Japanese rice market were opened to imports by lowering __________, lower prices would save Japanese consumers $6 billion annually and the United States would gain a large share of the Japanese rice market.
21. The __________ imposed on imported bananas by European Union countries cost consumers $2 billion a year in higher prices.
22. U.S. citizens pay $5 billion more annually for shoes and Japanese citizens pay $6 billion more for rice than the actual cost of the products because
23. Recently, the Japanese government, under pressure from its domestic farm lobby, slapped government taxes on mushrooms, leeks, and the reeds used in tatami mats that were being imported from China. These taxes Japan levied are referred to as
24. If you wanted to set up a business importing amber jewelry from Latvia to the United States, you would have to plan on paying the U.S. Customs Service roughly 20 percent of the value of the product as a(n) __________.
25. Whirlpool recently asked the United States to impose __________ on washing machine imports made by LG Electronics and Samsung Electronics, both South Korean companies, to raise the price of these products. Whirlpool accused these companies of selling below fair market value and receiving anticompetitive export subsidies from their governments, both of which could jeopardize American jobs.
26. President Bill Clinton attempted to protect American firms from foreign competition by placing a government tax on Japanese automobiles imported to the United States. President Clinton's goal was to raise the price on Japanese imports, thereby encouraging American consumers to purchase Americanmade automobiles. The tax the President threatened to impose is an example of a __________.
27. A restriction placed on the amount of a product allowed to enter or leave a country is referred to as a
28. A quota refers to
29. The world's largest manufacturer of peppermint candy canes was located in Albany, Georgia, until it could no longer afford to buy the sugar needed for its operation. It moved its manufacturing business to Mexico where there are no restrictions (like those that existed in the United States) on the amount of sugar that can be brought into the nation. The business moved to Mexico because of a(n) __________ established by the U.S. government.
30. Russia currently has a limit on pork of 400,000 metric tons annually that can be imported from any country. This restriction would be considered a
31. An institution that sets rules governing trade between its members through a panel of trade experts who decide on trade disputes between members and issue binding decisions is referred to as the __________.
32. The World Trade Organization (WTO) refers to
33. There are __________ World Trade Organization countries, including the United States, which account for more than 90 percent of world trade.
34. Which of the following statements about the World Trade Organization (WTO) is most accurate?
35. Which of the following statements about the World Trade Organization (WTO) is most accurate?
36. Which of the following statements about the World Trade Organization (WTO) is most accurate?
37. Which of the following statements about the World Trade Organization (WTO) is most accurate?
38. Which of the following statements about the World Trade Organization (WTO) is most accurate?
39. The European Union (EU) in early 2015 consisted of 28 countries with more than 500 million consumers. The EU has eliminated most barriers to the free flow of products, capital, and labor across its borders. Which of the following countries is NOT a member of the EU?
40. The European Union is an economic and political union of __________ member countries that have eliminated most barriers to the free flow of products, services, capital, and labor across their borders.
41. To eliminate the need to continually monitor currency exchange rates, 16 of the countries in the European Union (EU) have adopted a common currency, which is called the __________.
42. To eliminate the need to continually monitor currency exchange rates, __________ of the countries in the European Union (EU) have adopted a common currency called the euro.
43. The European Union (EU) has been beneficial to electronic commerce because it is no longer necessary to
44. The EU has benefited firms in its member nations because
45. The EU has benefited its member nations because firms do not need to market their products and services on a nation-by-nation basis; most tariffs that affect pricing practices have been removed, and
46. Pan-European marketing strategies are possible because
47. The North American Free Trade Agreement was designed to encourage free trade between
48. CAFTA-DR, a comprehensive free trade agreement between Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and __________.
49. When firms originate, produce, and market their products and services worldwide, it is referred to as __________.
50. Global competition exists when
51. Coca-Cola has operations in all but three nations in the world and Pepsi-Cola is now available in more than 160 countries and territories, making the soft drink industry an example of
52. In terms of the global marketplace, there are three primary types of companies: __________ firms, multinational firms, and transnational firms.
53. In terms of the global marketplace, there are three primary types of companies: international firms, __________ firms, and transnational firms.
54. In terms of the global marketplace, there are three primary types of companies: international firms, multinational firms, and __________ firms.
55. The administrative, marketing, and manufacturing operations that many international firms, multinational firms, and transnational firms have around the world are often called
56. In terms of the global marketplace, there are three primary types of companies: international firms, multinational firms, and transnational firms. The key factor that distinguishes one from another is
57. A(n) __________ firm engages in trade and marketing in different countries as an extension of the marketing strategy in its home country.
58. Generally speaking, a(n) __________ firm markets its existing products and services in other countries the same way it does in its home country.
59. Mars, America's second-largest candy company, began doing business in Russia in the late 1980s. The Snickers bar is one of the top selling candies in Russia and is marketed in much the same way as it is in the United States. What type of global company is Mars?
60. A firm that views the world as consisting of unique parts and markets to each part differently is referred to as a(n)
61. Unilever markets its Snuggle fabric softener differently to different parts of the world. Unilever is a(n) __________ firm.
62. A multidomestic marketing strategy refers to
63. Companies that use a(n) __________ marketing strategy have as many different product variations, brand names, and advertising programs as countries in which they do business.
64. Lever Europe, a division of Unilever, markets its Snuggle fabric softener in the United States. But in 10 European countries, it uses seven brand names, including Kuschelweich in German, Coccolino in Italy, and Mimosin in France. These products also have different packages, different advertising programs, and occasionally different formulas. From this information, we can assume that Lever Europe uses a(n) __________ marketing strategy.
65. U.S. appliance manufacturers find that different customs about shopping must be used to determine local product design. For instance, people in Northern Europe shop only once a week, so they need bigger refrigerators than Southern Europeans, who shop daily. Furthermore, Northern Europeans insist that freezers should be on the top just as firmly as Southern Europeans want them on the bottom. Based on this, U.S. appliance manufacturers would be more likely successful if they used a(n) __________ marketing strategy.
66. Disney employed a(n) __________ marketing strategy for its Disneyland Paris, particularly when it came to the eateries in the park. These restaurants featured recipes that were revised for local tastes, alcoholic beverages (not permitted in previous parks), and increased outdoor seating.
67. A(n) __________ firm views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more than differences.
68. The strategy transnational firms employ that standardizes marketing activities when there are cultural similarities and adapts them when cultures differ is referred to as a(n)
69. A global marketing strategy refers to
70. Which of the following types of firms would be most likely to use a global marketing strategy?
71. A brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs is referred to as a(n)
72. A global brand refers to
73. Which of the following statements regarding global brands is most accurate?
74. Which of the following statements about global brands is most accurate?
75. A global brand is a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs. However, adaptations of global brands are made
76. Thirteen- to nineteen-year-olds in Europe, North America, South America, and the industrialized nations of Asia
77. The appreciation of fashion, music, and a desire for novelty and trendier designs and images
78. Based on a study of 6,500 teens in 26 countries, when asked what country had the most influence on their attitudes and purchase behavior, 54 percent of teens from the United States, 87 percent of those from Latin America, 80 percent of the Europeans, and 80 percent of those from Asia named
79. Consumer groups living in many countries or regions of the world that have similar needs or seek similar features and benefits from products or services are referred to as
80. Global consumers refer to
81. Around the world, middle-class, youth, and elite markets that consume similar assortments of productsand services, regardless of geographic location, are referred to as
82. The use of __________ as a tool for exchanging goods, services, and information on a global scale is oneof the trends that has affected world trade.
83. Which of the following statements about the emergence of a networked global marketspace is most accurate?
84. The clandestine collection of trade secrets or proprietary information about a company's competitors is referred to as
85. Economic espionage is the clandestine collection of trade secrets or __________.
86. The estimated cost of economic espionage to firms in the United States is estimated to be
87. The Economic Espionage Act
88. The prescribed penalty for agents of foreign governments found guilty of economic espionage is
89. The prescribed penalty for individuals found guilty of the theft of trade secrets is
90. Cross-cultural analysis refers to the study of
91. The study of similarities and differences among consumers in two or more nations or societies is referred to as __________.
92. For the marketer, a thorough __________ involves an understanding of and an appreciation for the values, customs, symbols, and language of other societies.
93. A thorough cross-cultural analysis involves an understanding of and an appreciation of all of the following EXCEPT:
94. Personally or socially preferable modes of conduct or states of existence that tend to persist over time are referred to as __________.
95. Values refer to
96. The reverence that Japan shows towards its elderly is an example of that nation's __________.
97. Which of the following examples best demonstrates a company's appreciation of another country's values?
98. Which of the following examples best demonstrates a company's appreciation for another country's values?
99. Almost all countries have some division of social class (upper, middle, and lower). The determining factor for the assignment to one of these classes may differ from country to country. For example, in the United States, the primary determining factor is occupation; in India, it is birthright; in China, it is geographical region and education; and in Singapore, it is income. These differences are best explained in terms of a country's
100. What is considered normal and expected about the way people do things in a specific country is referred to as __________.
101. Customs refer to
102.3M Company executives were perplexed when the company's Scotch-Brite floor-cleaning product initially produced lukewarm sales in the Philippines. A Filipino employee explained that consumers generally clean floors by pushing coconut shells around with their feet. 3M changed the shape of the pad to a foot and sales soared. 3M changed its product in response to a Filipino __________.
103. KFC in Japan sells tempura crispy strips. In northern England, it stresses gravy and potatoes. In Thailand, it offers fresh rice. In Holland, instead of potatoes, KFC offers customers a potato and onion croquette. In France, KFC sells pastries alongside its chicken. These examples illustrate that KFC exhibits an appreciation for the __________ of other societies.
104. Which of the following statements about bribery is most accurate?
105. The Foreign Corrupt Practices Act
106.The law, amended by the International Anti-Dumping and Fair Competition Act, that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country, is referred to as the
107. Cultural symbols refer to
108. Cultural symbols are things that
109. The representations of ideas and concepts to which different cultures often attach different meanings are referred to as
110. A field of study that examines the correspondence between symbols and their role in the assignment of meaning for people is referred to as
111. Semiotics refers to
112. A researcher studying the fact that in some nations black is a sign of mourning while in others white is a sign of mourning would be studying
113. By skillfully using __________, global marketers can tie positive meanings to their products, services, and brands to enhance their attractiveness to consumers.
114. Tiffany & Company knows that Japanese are superstitious about the number 4. As a result, Tiffany sells its fine glassware and china in sets of five, not four, in Japan. Tiffany has used its knowledge of __________ to avoid connecting its products with the number 4.
115. The Parthenon, shown in the photo above, evokes strong feelings from consumers in Greece and is referred to as the "holy rock." Coca Cola marketers did not respect that this __________, when used in a marketing campaign by replacing the columns with Coke bottles, would arouse such an angry response in that country.
116. Canada has two official languages, which are
117. Even though there are hundreds of different languages and dialects, the three major languages used in global diplomacy and commerce are
118. The practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors is referred to as
119.If you were responsible for marketing communications at a company that manufactures office supplies and had to provide product literature to be distributed in France, you would be wise to use __________, whereby you have someone to translate your literature from American English into French, and then have someone else in France translate the French into American English.
120. A Tokyo shopkeeper would have been wise to use __________ to verify the accuracy of the new sign in English he purchased for his dry cleaning business. The sign read, "Drop your pants here for best results," which he did not know had another suggestive meaning to native speakers.
121. A New York carwash owner wanted to open a carwash in Quebec, Canada. He hired a U.S. translator to create signage for the new venture and to design some simple advertising. It was not until the business was opened that he learned that he should have used __________. His French signs actually said "car bath" instead of "car wash."
122. Consider the Kit Kat bar photo above. Kit Kat bars are marketed by Nestlé worldwide. Kit Kat is pronounced "kitto katsu" in Japanese, which roughly translates to "surely win." Japanese teens eat Kit Kat bars for good luck, particularly when taking crucial school exams. This positive result might have been eliminated had the company used __________ and felt it necessary to use a name without an additional meaning.
123. Since global marketing is affected by economic considerations, a scan of the global marketplace should include which of the following factors?
124. Since global marketing is affected by economic considerations, a scan of the global marketplace should include which of the following factors?
125. Since global marketing is affected by economic considerations, a scan of the global marketplace should include which of the following factors?
126. A country's communications, transportation, financial, and distribution systems are considered to be its
127. Economic infrastructure refers to
128. Two-thirds of the commercial transactions in Russia involve non-monetary forms of payment due to limits in formal operating procedures among financial institutions and even limits on the notion of private property there. These would best be described as constraints in the country's __________.
129. Although Russia now has a free economy, there are still some problems with its financial and legal systems as well as with the notion of
130. In Latvia, only one six-lane highway exists, connecting Riga, its capitol, with Moscow. Otherwise, the roads are two-lane and many are made of cobblestones or bricks. This limits the speed with which deliveries can be made and requires that delivery trucks be quite small. The road network in Latvia is an example of problems with a country's
131. A global marketer selling consumer products and services must also consider what the average per capita or __________ is among a country's consumers and how the income is distributed to determine a nation's purchasing power.
132. A country's income distribution is important because it gives a more reliable picture of a country's __________.
133. Foreign countries with very low per capita incomes may still be attractive markets for some goods. To get a more reliable picture of a country's purchasing power, a country's __________ must also be considered.
134. Generally, as the proportion of middle-income households in a country __________, the __________ a nation's purchasing power.
135. Generally, as the proportion of middle-income households in a country __________, the nation's purchasing power increases.
136. Generally, as the proportion of middle-income households in a country increases, the nation's purchasing power __________.
137. The price of one country's currency expressed in terms of another country's currency is referred to as the
138. A currency exchange rate refers to
139. Fluctuations in the __________ among the world's currencies have direct impact on the sales and profits made by global companies.
140. When foreign currencies can buy more U.S. dollars,
141. Which of the following statements concerning currency exchange rates is most accurate?
142. Chrysler Corporation wanted to sell its Jeeps in Japan. The car was priced in U.S. dollars at about $19,000, but when it reached the Japanese car showrooms, its price was over ×31,000 Japanese yen, and the Japanese could not afford to buy it. Its price was set without regard for the
143. The political and regulatory climate for marketing in a country or region of the world means not only identifying the current environment but also determining how
144. An assessment of a country's or regions political-regulatory climate includes an analysis of its political stability and __________.
145. Trade among nations or regions depends on political stability. In recent times, billions of dollars have been lost in __________ and __________ as a result of internal political strife, terrorism, and war.
146. The PRS group maintains a website that can be used to determine
147. Japanese car safety rules effectively require all automobile replacement parts to be Japanese and the country has about 11,000 other rules that specify how other goods are to be made and marketed. These rules often function as __________.
148. A firm's profit potential and control over marketing activities __________ as it moves from exporting to direct investment as a global market-entry strategy.
149. Once a company has decided to enter the global marketplace, it must select a means of market entry. Four general options exist: (1) __________; (2) licensing; (3) joint venture; and (4) direct investment.
150. Once a company has decided to enter the global marketplace, it must select a means of market entry. Four general options exist: (1) exporting; (2) __________; (3) joint venture; and (4) direct investment.
151. Once a company has decided to enter the global marketplace, it must select a means of market entry. Four general options exist: (1) exporting; (2) licensing; (3) __________; and (4) direct investment.
152. Once a company has decided to enter the global marketplace, it must select a means of market entry. Four general options exist: (1) exporting; (2) licensing; (3) joint venture; and (4) __________.
153. A firm's profit potential and control over marketing activities increases as it moves from exporting to direct investment as a global market-entry strategy. But so does the firm's
154. As a firm changes its global market-entry strategy from exporting to direct investment, all of the following increase EXCEPT:
155. According to Figure 6-3 above, point A would most likely represent what option for entering the global marketplace?
156. According to Figure 6-3 above, point B would most likely represent what option for entering the global marketplace?
157. According to Figure 6-3 above, point C would most likely represent what option for entering the global marketplace?
158. According to Figure 6-3 above, point D would most likely represent what option for entering the global marketplace?
159. According to Figure 6-3 above, points A and D would most likely represent __________ and __________ options respectively for entering the global marketplace.
160. According to Figure 6-3 above, points B and C would most likely represent __________ and __________ options respectively for entering the global marketplace.
161. A global market-entry strategy in which a company produces goods in one country and sells them in another country is referred to as __________.
162. Exporting refers to a global market-entry strategy
163. What market entry option allows a company to make the least number of changes in terms of its product, its organization, and even its corporate goals?
164. Indirect exporting refers to
165. When a firm sells its domestically produced products in a foreign country through an intermediary, it is referred to as
166. Indirect exporting occurs when a firm sells its domestically produced products in a foreign country
167. What type of exporting has the least amount of commitment and risk but will probably return the least profit?
168. A small Canadian winery located in British Columbia has developed a superior tasting wine. It has no overseas contacts but wants to get its wine on the shelves in selected Asian and European markets where growth has been substantial in the last two years. What type of exporting option would best suit this company?
169. The U.S. motorcycle manufacturer Harley-Davidson uses intermediaries to sell its motorcycles in numerous nations outside the United States. Harley-Davidson uses
170. Fran Wilson Creative Cosmetics attributes its success to a top-quality product, effective advertising, and a novel __________ strategy.
171. To avoid competing with Japanese firms through their traditional channel of distribution, Fran Wilson Creative Cosmetics Moodmatcher lip coloring is sold in which type of retail venue?
172. Direct exporting refers to
173. What global market-entry strategy involves slightly more risk than indirect exporting for a company but also opens the door to increased profits?
174. Most companies become involved in direct exporting when
175. The prominent global market-entry strategy among small- and medium-sized companies is
176. When a U.S. airplane manufacturer sells its airplanes to business executives in Germany without using intermediaries, it is referred to as
177. Licensing refers to
178. Offering the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or fee is referred to as
179. Which of the following is an advantage inherent in the use of licensing?
180. All of the following are advantages of licensing EXCEPT:
181. Which of the following is a disadvantage associated with licensing?
182. Which form of entry into a global market makes a firm the most vulnerable to harm regarding its brand name or reputation?
183. All of the following are disadvantages of licensing EXCEPT:
184. Tricon was the restaurant division of PepsiCo until it was spun off in 1997. Since then, Tricon has opened 6,000 KFC restaurants abroad. It has 158 restaurants in Indonesia and more than 500 restaurants in China. All are locally owned and each owner pays a fee to Tricon. Tricon is engaged in
185. Select Service Partner (SSP) Group has operations in 30 countries involving food and beverage establishments, often in transit hubs like airports and railway stations. SSP also operates Starbucks locations in airports in Finland, Sweden, and Norway. SSP pays Starbucks a royalty based on sales as well as a fee for each store. In these instances, Starbucks is engaged in
186. A form of low-risk and capital-free entry into international markets that includes local manufacturing is referred to as
187. One variation of licensing is referred to as
188. Yum! Brands, the restaurant division of PepsiCo, has 12,600 KFC restaurants abroad, with more than 3,700 restaurants in China. Many of the latter are locally owned and subject to a contractual agreement that allows the owners to operate the business under the established KFC brand name and according to specific rules. Yum! Brands is engaged in
189. Yogen Früz is a successful chain of frozen yogurt shops originating in Canada. Archeology Investments has an agreement with the Canadian firm that grants rights to its company to open and operate Yogen Früz shops in Dubai, Oman, Qatar, Bahrain, and Kuwait. Yogen Früz is engaged in
190. A joint venture refers to
191. A global market-entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company is referred to as
192. PepsiCo and __________ entered into a joint venture to market Frito-Lay's, Cheetos, Ruffles, and Doritos in Israel.
193. The __________ arrangement between Ericsson, a Swedish telecommunications firm, and CGCT, a French switch maker, enabled them together to beat out AT&T for a $100 million French contract.
194. A disadvantage of a joint venture arrangement when entering a new global market is that
195. Starbucks and Tata Global Beverage have together formed Starbuck Coffee A Tata Alliance in order to bring Starbucks to India. The global market-entry strategy is known as
196. Direct investment in international marketing refers to
197. A global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division is referred to as
198. When Nestlé actually owns a subsidiary or division in a foreign country, such as when it established its own ice cream manufacturing operation in China, this global market entry strategy is known as __________ and represents the greatest commitment a company can make to international sales.
199. Which form of entry into a foreign market requires the greatest commitment?
200. One advantage of direct investment when entering a new global market is that
201. One disadvantage of direct investment when entering a new global market is that
202. Both Honda and Toyota have plants in the United States that use American labor. This illustrates Honda's and Toyota's use of
203. Yum! Brands, the parent company of KFC, has pursued an aggressive growth strategy in China. There are now than 3,700 restaurants in 650 Chinese cities, and KFC has a 40% market share of the entire fastfood industry there. Yum! Brands China owns and directly manages about 90% of its Chinese stores, so it appears that the company prefers __________ in this market.
204. Global companies have five strategies for matching products and their promotion efforts to global markets. The strategy of selling virtually the same product in other countries is referred to as
205. As a general rule, __________ seems to work best when the consumer target market for the product is alike across countries and cultures - that is, consumers share the same desires, needs, and use for the product.
206. Coca-Cola, Gillette razors, and Nike apparel and shoes are being sold in the same form in many countries. This is an example of which type of global marketing product and promotion strategy?
207. GlaxoSmithKline plc. of Great Britain makes Breathe-Right nasal strips. It sells the same product in many countries because customers all over the world will use them in the same way. This is an example of which type of global marketing product and promotion strategy?
208. Global companies have five strategies for matching products and their promotion efforts to global markets. Changing a product in some way to make it more appropriate for a country's climate or preferences is an example of which type of global marketing product and promotion strategy?
209. Frito-Lay produces and markets potato chips in Russia that have seafood flavor. This is an example of which type of global marketing product/promotion strategy?
210. KFC in Japan altered the sweetness of its coleslaw to appeal to Japanese tastes. This is an example of which type of global marketing product and promotion strategy?
211. Global companies have five strategies for matching products and their promotion efforts to global markets. Designing a product to serve the unmet needs of a foreign nation is which type of global marketing product and promotion strategy?
212. KFC has added many offerings to its menus in China to appeal to local tastes, including the "Dragon Twister," which is a chicken wrap with Peking-duck sauce. This is an example of which type of global marketing product and promotion strategy?
213. Even though Exxon adapts its gasoline blends for different countries based on climate, the promotion message is unchanged. The wording of that slogan is "__________."
214. Nescafe coffee is marketed using different coffee blends and promotional campaigns to match consumer preferences in different countries. For example, Nescafe generally emphasizes the taste, aroma, and warmth of shared moments in its advertising around the world. However, in Thailand, Nescafé is advertised as a way to relax from the pressures of daily life. This is an example of which type of global marketing product/promotion strategy?
215. Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 6-4 above, A refers to which type of strategy?
216. Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 6-4 above, B refers to which type of strategy?
217. Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 6-4 above, C refers to which type of strategy?
218. Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 6-4 above, D refers to which type of strategy?
219. Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 6-4 above, E refers to which type of strategy?
220. Figure 6-5 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. Box A represents the
221. Figure 6-5 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. B represents the
222. Figure 6-5 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. C represents the
223. Figure 6-5 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. Which letter in the figure would identify intermediaries used to move the product from one country to another?
224. Figure 6-5 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. Channels within a foreign nation can be very long or surprisingly short. Which letter in the figure represents these channels?
225. Figure 6-5 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. E represents the
226. Figure 6-5 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. Channels of distribution in global marketing are often long and complex. Box A represents the __________ and Box B identifies the __________.
227. When a firm sells a product in a foreign country below its domestic price or below its actual cost, the practice is referred to as
228. In international trade, dumping refers to
229. Eastman Kodak accused Japanese rival Fuji Photo Film of selling photographic paper in the United States for 25 percent below what it charges in Japan. In other words, Eastman Kodak accused Fuji of __________.
230. The U.S. Commerce Department imposed additional duties of 31 percent to 250 percent on imported photovoltaic products imported by Chinese solar manufacturers after ruling that they sold them below cost. The Commerce Department took this action in response to what it saw as __________.
231. A situation where products are bought in a lower-priced country from a manufacturer's authorized reseller, shipped to higher-priced countries, and then sold through unauthorized retailers below the manufacturer's suggested retail price is referred to as __________.
232. A gray market refers to
233. Another term for a gray market is
234. The Japanese manufacture tractors for rice paddies. They are smaller than most U.S. tractors and perfect for a weekend farmer who wants to tend to a small garden. The tractors are not sold in the United States through any authorized channels, yet they are available in the U.S. at prices below the manufacturer's suggested retail price. These Japanese tractors are being sold
235. Before Apple's iPhone 5 was officially for sale in China, it was being sold there. These phones were purchased in the United States and Australia, and then resold by unauthorized vendors in China for between $1,700 and $2,000. These products are considered to be part of
236. Mary Kay, Inc. can be classified as which type of company when marketing its products around the world?
237. Since 1963, Mary Kay, Inc.'s guiding principle has been based on __________.
238. What global market-entry strategy did Mary Kay use when it entered India?
1.
According to the textbook, Target has been successful by offering consumers the best
2.
The acronym SWOT, as in SWOT analysis, stands for
3.
advantages of direct investment when entering a new global market is that
4.
All of the following are economic indicators:
5.
Around the world, middle-class, youth, and elite markets that consume similar assortments of products and services, regardless of geographic location, are referred to as
6.
As a general rule, a product __________ strategy seems to work best when the consumer target market for the product is alike across countries and cultures—that is, consumers share the same desires, needs, and use for the product.
7.
At which stage of the organizational buying decision process would purchasing assess the financial status of potential suppliers
8.
Because there are few sellers, price competition among firms is avoided in which form of competition?
9.
Better Business Bureau (BBB).
10.
The book The Secret Sales Pitch: An Overview of Subliminal Advertising is about subliminal messages, which reflect what kind of potential influence on the consumer decision making process?
11.
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?
12.
A brand community is a specialized form of the __________ reference group.
13.
brand loyalty
14.
Business-to-business electronic commerce over the Internet
15.
A buy class situation affects buying center tendencies in different ways. If there are many people involved, the problem definition is uncertain, and the time required for a decision is long, the buy class situation is most likely a
16.
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 14 percent in 2015. This is an example of __________ condition.
17.
Consumers are buying hybrid gas-electric automobiles such as the Toyota Prius. This is an example of which increasingly common cultural value?
20.
A country's income distribution is important because it gives a more reliable picture of a country's ________ than just per capita income alone.
21.
Customer satisfaction is an important focus for marketers because
24.
The element of the marketing mix demonstrated when an art gallery suggests a $2 donation at the door is
25.
The __________ element of the marketing mix is demonstrated when Amazon delivers packages to a customer's front porch via the U.S. Postal Service.
26.
The EU has benefited firms in its member nations because
27.
The EU has benefited its member nations because firms do not need to market their products and services on a nation-by-nation basis; most tariffs that affect pricing practices have been removed; and
28.
Even though there are hundreds of different languages and dialects, the three major languages used in global diplomacy and commerce are
29.
An example of a marketer-dominated source of information consulted during an external search is
30.
An external search for product information is likely to occur when
31.
Fluctuations in the __________ among the world's currencies have direct impact on the sales and profits made by global companies.
32.
Four variables are central to how consumers learn from repeated experience:
35.
High-involvement purchases typically have which of the following characteristics?
37.
Important market characteristics in organizational buying behavior include which of the following?
38.
Income used to buy luxury items such as a voyage about the Queen Mary 2 offered by Cunard referred to as
39.
In Japan, women give men chocolates on Valentine's Day. This is an example of
40.
In the United States today, commonly held values include:
41.
The key to all scheduling techniques is to
43.
many sellers and only one buyer; downward pressure on bid prices for the buyer's business as more would-be suppliers become involved?
is an example of
44.
Marketers use three approaches to try to change consumer attitudes toward products and brands
47.
Market share is the ratio of sales revenue of the firm to the total sales revenue of all __________, including the firm itself.
48.
Mary Kay, Inc., can be classified as which type of company when marketing its products around the world?
50.
names the Boston Consulting Group (BCG) has given to describe the four quadrants in its growth-share matrix except
51.
-Netflix is a company that rents DVD movies and television programming either by mail or streaming over the Internet. It faces many competitors, but continues to grow both in the United States and abroad.
-Netflix now has around 47 million subscribers in the United States out of 82 million worldwide. Part of what has driven success in recent years is its original content, with shows like Orange is the New Black and House of Cards, popular programming that cannot be seen elsewhere. Its original content provides Netflix's
52.
One disadvantage of direct investment when entering a new global market is
53.
Online buying in organizational markets is prominent for three major reasons
54.
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,
55.
An organization buys products and services for one main reason, which is to
56.
An organization's special capabilities, including skills, technology, and resources that distinguish it from other organizations and provide customer value, are referred to as
57.
PepsiCo and The Strauss Group have together formed an Israeli business to market Frito-Lay's Cheetos, Ruffles, and Doritos in Israel. This global market entry strategy is known as
58.
The primary organizational buying objective for business firms is to
60.
The second phase of the strategic marketing process is the
61.
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.
-They also are going to replace traditional light bulbs
This is an example of
62.
statements about the purchase involved in organizational buying
63.
Technological advances sometimes have disruptive effects. One great advance can replace or substitute for existing products in a relatively short period. Apple Pay for iPads and iPhones is most likely to replace or substitute for
64.
Technological advances sometimes have disruptive effects. One great advance can replace or substitute for existing products in a relatively short period. The Next Issue app for tablets and smartphones with wireless connectivity are most likely to replace or substitute for
65.
The uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces are referred to as
66.
The use of __________ as a tool for exchanging goods, services, and information on a global scale is one of the trends that has affected world trade.
68.
VALS creates profiles of people based on their primary motivation and resources. In the VALS framework (Figure 4-6), E refers to
69.
A want is a(n) ____ that is shaped by a person's knowledge, culture, and personality.
70.
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
71.
When compared to other generational cohorts, members of Generation Y are most likely to influence
72.
Which form of entry into a foreign market requires the greatest commitment?
73.
Which of the following is a demographic trend with significant implications to global marketers?
74.
Which of the following is an important indicator of a nation's increasing purchasing power?
75.
Which of the following products might have failed in the marketplace because it was perceived to have limited usefulness?
76.
Which of the following statements about African American buying patterns is most accurate?
77.
Which of the following statements about bribery is most accurate?
78.
Which of the following statements describes an environmental force?
79.
Which of the following statements most closely describes the people in the buying center of a medium-sized manufacturing plant?
80.
Which of the following statements regarding social forces is most accurate?
81.
With the arrival of tablet devices, such as Apple's iPad in 2010, growth in the global PC industry slowed considerably and actually saw negative growth by 2015. If a firm offering a range of PCs had slightly increased its global unit market share of PC sales from 10 to 12 percent but still was not the industry leader, the company should be concerned that this product is a
1.
3M Company executives were perplexed when the company's Scotch-Brite floor-cleaning product initially produced lukewarm sales in the Philippines. A Filipino employee explained that consumers generally clean floors by pushing coconut shells around with their feet. 3M changed the shape of their pad to a foot and sales soared. 3M changed its product in response to a Filipino
2.
All nations and regions of the world do not participate equally in world trade. World trade flows reflect
13.
A field of study that examines the correspondence between symbols and their role in the assignment of meaning for people is referred to as
14.
A firm's profit potential and control over marketing activities _____ as it moves from exporting to direct investment as a global market entry strategy.
15.
Five trends in the past decade have significantly influenced the landscape of global marketing. One of them is
17.
Generally, as the proportion of middle-income households in a country increases, the nation's purchasing power
19.
Global companies have five strategies for matching products and their promotion efforts to global markets. The strategy of selling virtually the same product in other countries is referred to as
24.
If your primary motive was to raise prices on imports, would you use tariffs or quotas? Why would you want to use this?
26.
Lever Europe, a division of Unilever, markets its Snuggle fabric softener in the United States. But in 10 European countries, it uses seven brand names, including Kuschelweich in Germany, Coccolino in Italy, and Mimosin in France. These products also have different packages, different advertising programs, and occasionally different formulas. From this information, we can assume that Lever Europe uses _____ marketing strategy.
27.
Mary Kay, Inc., can be classified as which type of company when marketing its products around the world?
28.
Most companies become involved in direct exporting when
30.
Nescafe coffee is marketed using different coffee blends and promotional campaigns to match consumer preferences in different countries. For example, Nescafe generally emphasizes the taste, aroma, and warmth of shared moments in its advertising around the world. However, in Thailand, Nescafe is advertised as a way to relax from the pressures of daily life. This is an example of which type of global marketing product and promotion strategy?
31.
The North American Free Trade Agreement was designed to encourage free trade between
35.
Since 1963, the guiding principle of Mary Kay, Inc. has been based on
36.
Since global marketing is affected by economic considerations, a scan of the global marketplace should include which of the following factors?
38.
Three types of companies populate and compete in the global marketplace. Identify and describe each type.
39.
Two-thirds of the commercial transactions in Russia involve nonmonetary forms of payment due to limits in formal operating procedures among financial institutions and even limits on the notion of private property there. These would best be described as constraints in the country's
40.
The U.S. motorcycle manufacturer Harley-Davidson uses intermediaries to sell its motorcycles in numerous nations outside the United States. Harley-Davidson uses
42.
What type of exporting has the least amount of commitment and risk but will probably return the least profit?
43.
When a U.S. airplane manufacturer sells its airplanes to a company in Germany without using intermediaries, it is referred to as
44.
When firms originate, produce, and market their products and services worldwide, it is referred to as
45.
Which of the following examples best demonstrates a company's appreciation of another country's values?
46.
Which of the following statements about bribery is most accurate?
47.
Which of the following statements about the dynamics of world trade is most accurate?
48.
Whirlpool asked the United States to impose _____ on washing machine imports made by LG electronics and Samsung electronics, both South Korean companies, to raise the price of these products. Whirlpool accused these companies of selling below fair market value and receiving anticompetitive export subsidies from their governments, both of which could jeopardize American jobs.
49.
Why is it wise for global marketers to use back translation? Provide an example to support your answer.
51.
Yogen Fruz is a successful chain of frozen yogurt shops originating in Canada. Archeology Investments has an agreement with the Canadian firm that grants rights to its company to open and operate Yogen Fruz shops in Dubai, Oman, Qatar, Bahrain, and Kuwait. Yogen Fruz is engaged in
52.
Yum!Brands, the restaurant division of PepsiCo, has 12,600 KFC restaurants abroad, with more than 3,700 in China. Many of the latter are locally owned and subject to a contractual agreement that allows the owners to operate the business under the established KFC brand name and according to specific rules. Yum! Brands is engaged in
1.
__________ = (Unit price × Quantity sold) − Total cost.
2.
According to the price equation, a product's or service's final price equals its list price minus incentives and allowances plus
3.
According to the price equation, final price equals list price minus __________ plus extra fees.
4.
According to the price equation, final price equals __________ minus incentives and allowances plus extra fees.
5.
According to the service continuum, what are offerings such as neckties, dog food, and tailored suits?
6.
According to the service continuum, which of the following offerings has the lowest level of intangibility?
7.
According to the text, which of the following firms is in the development stage of the new-product development process for a driverless car?
8.
An active receiver who is "delighted" with the brand advertised and sends messages to his or her online friends about the brand is referred to as a(n)
9.
Activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost are referred to as
10.
The administrative, marketing, and manufacturing operations that many international firms, multinational firms, and transnational firms have around the world are often called
11.
Advertisers use a mix of media forms and vehicles to maximize the exposure of the message to the target audience while at the same time minimizing
12.
Advertising refers to
13.
Advertising, sales promotion, and public relations are often said to use __________ because they are used with groups of prospective buyers.
14.
After offering a promotional allowance, the price of a product returns to its regular price level. When this happens, the retail store's gross margin on that product ________ on those items that were bought with the allowance but not sold during the price special promotion.
15.
Agribusinesses that sell commodity products such as wheat, rice, and corn are often in a(n) __________ position with their competitors.
16.
Allocating funds to promotion by matching the competitor's absolute level of spending or the proportion per point of market share is referred to as __________ budgeting.
17.
Allocating funds to promotion whereby the company determines its promotion objectives, outlines the tasks to accomplish these objectives, and determines the promotion cost of performing these tasks is referred to as
18.
All of the following are barriers to the adoption of new products except which?
19.
All of the following are criteria used for selecting target market segments except which?
20.
All of the following are examples of Coppertone's product innovations except which?
a. sunscreen for babies
b. water resistant sunscreen
c. all-organic sunscreen
d. MyUV Alert app
e. continuous spray sunscreen
21.
All of the following are marketing strategies designed to reduce consumers' perceived risk and encourage purchases except which?
a. securing endorsements from influential people
b. providing warranties and guarantees
c. providing free trials of the product
d. giving extensive usage instructions
e. using subliminal advertising
22.
Although not strictly illegal, the U.S. Justice Department frowns on reciprocity because the practice
23.
Although research shows consumers are sensitive to ecological issues, they may
24.
America's dairy farmers and milk processors use their "Milk Life" campaign to increase demand for milk as it competes against other beverages. This campaign consists of __________ ads.
25.
Among business products, support products include installations such as
26.
A(n) __________ is an advertising agency that provides the most complete range of services, including market research, media selection, copy development, artwork, and production.
27.
A(n) __________ is a type of forecast that involves estimating the value to be forecast without any intervening steps.
28.
A(n) __________ is very important to the process aspect of services because it helps identify steps that will ultimately lead to better service creation and delivery processes.
29.
Another name for a closed-end question is a __________ question.
30.
Any activity that uses electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services is referred to as
31.
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 entered the market as a
32.
Apple launched the iPhone in 2007, had very strong sales, and its market share now exceeds 44 percent. The global smartphone market is expected to grow at an annual rate of 7 percent due to the growth internationally. Currently, Apple's iPhone SBU appears to be a
33.
Approximately what percentage of U.S. households has an annual income between $25,000 and $99,999?
34.
An arrangement a manufacturer makes with a reseller to handle only its products and not those of competitors is referred to as
35.
As a marketing term, __________ generally includes not only physical goods, but also services and ideas.
36.
As an owner of a Wendy's fast-food restaurant located near a large urban university, you need to analyze your customers and determine which segmentation base and its associated variable(s) you will use to segment your target market. Which segmentation base and associated variable(s) should you use?
37.
As a performance measure for social networks, the click-through rate is
38.
As a performance measure for social networks, the number of page views divided by visitors in a given time period is referred to as
39.
At which stage of the organizational buying decision process would purchasing assess the financial status of potential suppliers?
40.
A basic test of the usefulness of the market segmentation process is whether it leads to tangible marketing actions that can
41.
Because different societies often attach alternate meanings to things, these representations of ideas are referred to as
42.
Because many companies are concerned with the depletion of natural resources, supply partnerships often include provisions for
43.
Because of the intangible nature of services, consumers often perceive price as a possible indicator of the __________ of the service.
44.
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.
45.
The best segmentation approach is the one that
46.
A brand name that cannot be spoken is referred to as a
47.
Break-even analysis refers to
48.
The break-even point (BEP) = [Fixed cost ÷ (__________ − Unit variable cost)].
49.
A budgeting method that allocates funds to a promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold, is referred to as __________ budgeting.
50.
Buyers are interested in having numerous competing and complementary items from which to choose. The buyer requirement for ________ is satisfied through the breadth and depth of products and brands that intermediaries carry.
51.
By dividing its tennis racquet market into three categories, which it labels Performance, Recreational, and Junior tennis players, Prince Sports is using a marketing strategy called
52.
Canada has two official languages, which are
53.
Cause marketing (Ex: Bobs or Toms) is a tactic wherein
54.
Changing the place a product occupies in a consumer's mind relative to competitive products is referred to as
55.
Chevron placed an ad with copy reading, "Protecting the planet is everyone's job. We Agree.," that encouraged consumers to use renewable energy. Which type of advertising was Chevron using?
56.
China is the world's largest tobacco-producing country and has 300 million smokers. Approximately 1 million Chinese die annually from smoking-related illnesses. This figure is expected to rise to more than 3 million by 2050. 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
57.
A collection of databases, or __________, is where a firm's marketing data are stored.
58.
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 a(n) __________ condition.
59.
College dorm residents frequently want to keep and prepare their own food and snacks to save money or have a late-night snack. However, their dorm rooms are often woefully short of space. MicroFridge understands this and markets a combination microwave, refrigerator, freezer, smoke sensor, and charging station appliance targeted to these students. MicroFridge is most likely using which basis of segmentation?
60.
Combining a corporate or family brand with a new brand to distinguish a part of its product line from others is referred to as
61.
Commercialization refers to
62.
Companies such as Hewlett-Packard and Frito-Lay routinely monitor ________ to gain insights into customer complaints and suggestions.
63.
A company's gross sales may be reduced by
64.
A company's operating statement consists of three key elements: sales of the firm's products and services, costs incurred in making and selling these products and services, and
65.
A company's operating statement is also called a(n)
66.
Compared to marketing strategies, marketing tactics generally involve actions that
67.
The competitive market situation in which the few sellers are sensitive to each other's prices is referred to as
68.
A concept that describes the stages a product goes through in the marketplace—introduction, growth, maturity, and decline—is referred to as the
69.
Conflict occurring between intermediaries at the same level in a marketing channel, such as between two or more retailers that carry the same manufacturer's brands, is referred to as
70.
________ consists of practices and processes that encourage the use of external as well as internal ideas and internal as well as external collaboration when conceiving, producing, and marketing new products and services.
71.
Consumers benefit in dealing with retail corporate chains because
72.
A contractual agreement whereby one company (licensor) allows its brand name or trademark to be used with products or services offered by another company (licensee) for a royalty or fee is referred to as
73.
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)
74.
Criteria for forming segments involve both similarities and differences. Which of the following statements is most accurate?
75.
Culture refers to the
76.
Customer satisfaction is an important focus for marketers because
77.
Data analytics benefits retailers by
78.
Dell, Inc., sells surplus, refurbished, or closeout computer merchandise at its dellauction.com website to many buyers who bid competitively against one another. This is an example of a(n)
79.
Demand factors are
80.
The description of how new forms of retail outlets enter the market is referred to as the
81.
direct marketing channel
82.
Direct marketing faces several challenges and opportunities in global markets. Several countries, such as Australia and Japan, have requirements for mandatory "opt-in," which means
83.
Direct marketing refers to
84.
A Duracell print ad shows a Christmas gift with the tagline "Tip: Don't forget the batteries!," making it what type of product advertisement?
85.
During the consumer purchase decision process, an individual at the __________ stage will perceive differences between his or her ideal and actual situations big enough to trigger a decision.
86.
During the introduction stage of the product life cycle, a(n) __________ pricing strategy may be used. This pricing strategy charges a high initial price to recoup the costs of product development.
87.
During the next-to-last stage of the organizational buying decision process, the organization
88.
A dynamic pricing policy allows marketers to respond to
89.
The __________ element of the marketing mix consists of communication tools, including advertising, personal selling, sales promotion, public relations, and direct marketing.
90.
The element of the marketing mix that describes a means of getting the product to the consumer is known as
91.
The estimated cost of economic espionage to firms in the United States is estimated to be upwards of
92.
Ethics refers to the
93.
Experts suggest that the customer experience with a service should be all of the following except which?
94.
The extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions is referred to as
95.
Feature bloat is
96.
The final step in segmenting and targeting markets that links customer needs to marketing actions is to
97.
A firm's profit objective is often measured in terms of ROI. The acronym ROI stands for
98.
The five major environmental forces in a marketing decision are
99.
A fixed amount of money paid for every 1,000 times an ad loads and a visitor might see it is referred to as
100.
A fixed amount of money paid to the site for every visitor who clicks on an ad and then jumps from that page to the advertiser's website is referred to as
101.
For Coppertone products, evaluations in the postpurchase behavior stage of the consumer purchase decision process that are most likely to cause dissatisfaction are
102.
Four general categories are used to segment consumer markets, one of which is
103.
The four Ps of the marketing mix are
104.
Franchising is attractive for the franchisee because
105.
A full-scale operating model of the product or service under development is referred to as a
106.
Generating insights leading to marketing actions based on ideas from massive numbers of people is called
107.
The generational cohort known as __________ was born during the baby bust era when the number of children born each year was declining.
108.
Global consumers are
109.
A global market entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division is referred to as
110.
A gray market is
111.
Gross domestic product (GDP)
112.
Gross income refers to
113.
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
114.
The idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization's goals reflects the
115.
If a brand manager wants to explain the benefits of using a complex product to consumers, the best social network to use is
116.
If a new grocery product does not achieve a predetermined sales target, some retailers require a penalty payment by the manufacturer to compensate them for sales that its valuable shelf space was unable to generate. What is this type of payment called?
117.
If Jane Westerlund, owner of a picture frame store, raises the average price of a framed picture to $80 and the cost of goods sold is $36, what is the percentage markup on cost?
118.
If McNeil Consumer Healthcare uses the same brand name for different products such as Tylenol Cold & Flu and Tylenol P.M. based on behavioral learning theory, this strategy is an example of
119.
Important market characteristics in organizational buying behavior include which of the following?
120.
industrial distributor
121.
In marketing, each __________ consists of people who are relatively similar to each other in terms of their consumption behavior.
122.
In marketing experiments, the independent variables of interest, sometimes called the marketing __________, are often one or more of the marketing mix elements.
123.
In recent years, many large firms have changed the title of the head of marketing from vice president of marketing to
124.
In response to Duracell's introduction of the Duracell Ultra battery, Energizer introduced an Advanced Formula battery. But unlike Duracell, Energizer priced its batteries at a low initial price, believing that consumers were too price sensitive to pay more in this category. In this case, Energizer used
125.
In retail stores, inventory carrying costs can be reduced by
126.
Installations, accessory equipment, supplies, and industrial services used to assist in producing other products and services are referred to as
127.
Insurance companies, farms, auto repair, and fisheries are all examples of companies in the
128.
Intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value are referred to as
129.
In terms of an organization's business, railroads lost market share in the 20th century because they
130.
In terms of the global marketplace, there are three primary types of companies: international firms, __________ firms, and transnational firms.
131.
In the consumer purchase decision process for Coppertone products, the problem recognition stage is typically triggered either by "going somewhere" like a vacation, beach, or pool, or through what?
132.
In the traditional advertising model, advertisers were charged using a __________ approach, which charged for the exposures to an ad. Google transformed the traditional model to a model called __________ where advertisers pay only when someone actually clicks on the ad and is sent to their website.
133.
In the VALS framework, each consumer segment exhibits unique media preferences. Which segment would be the most likely to visit Facebook?
134.
In trend extrapolation, the forecasting technique that involves using a straight line is called
135.
The inventory carrying costs of real estate agencies are low because they
136.
The inventory costs of services include
137.
Inventory management systems that are designed to make the process of reordering and receiving products as simple as possible are referred to as
138.
__________ involves unethical conduct by a person entrusted with a position of authority, often to acquire a personal benefit.
139.
In which type of auction is there an upward pressure on bid prices as more would-be buyers become involved?
140.
__________ is one of the fastest-growing forms of Internet advertising, as approximately 80 percent of all Internet traffic begins at a search engine such as Google or Yahoo!.
141.
The __________ is the dollars added to cost of goods sold (COGS) to arrive at the selling price.
142.
The __________ is the ratio of net income to the investment used to earn that net income.
143.
It is not recommended that a firm select a target segment that
144.
A joint venture entails
145.
A key difference between cause marketing and a charitable contribution is
146.
Laws refer to
147.
Lead generation is
148.
_______ links market needs to an organization's marketing program.
149.
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
150.
A major factor in developing a service marketing strategy is __________ because of the inseparability of services from the producer.
151.
Mall intercept interviews refer to
152.
Manufacturers or even wholesalers make geographical adjustments to list or quoted prices to reflect
153.
Many fast-food retailers, including McDonald's and Burger King, have followed a predictable pattern of how new forms of retail outlets enter the marketplace. McDonald's has evolved from a relatively simple restaurant with low margins, low prices, limited product offerings, and low institutional status to a worldwide chain with higher margins, high status, and a diverse menu of products. This evolution of McDonald's restaurants is consistent with the
154.
Many nonprofit organizations use PSAs in their media planning. What does the acronym PSA stand for?
155.
Marketers using a dynamic price policy should take care to avoid
156.
The marketing concept is
157.
The marketing metrics related to a retailer's customers include all of the following except which?
158.
The marketing mix elements are called __________ because they are the responsibility of the marketing department in an organization.
159.
Market share is the ratio of the __________ to those of the industry, including the firm itself.
160.
A Mercedes-Benz ad features the introduction of its new self-driving car. What type of product advertisement is this ad?
161.
A message is conveyed by means of a __________ such as a salesperson, advertising media, or public relations tools.
162.
A micropolitan statistical area refers to
163.
A middleman is
164.
A mission statement should be all of these except which?
short term
inspirational
clear
meaningful
concise
165.
The most popular loyalty programs today are __________ reward programs.
166.
Multibranding refers to a branding strategy in which a firm
167.
A multidomestic marketing strategy refers to
168.
Mystery shoppers are people
169.
Neighborhood grocers that work together with several other independent grocers that all agree to buy their goods directly from food manufacturers is a(n)
170.
Nestlé's marketing of Good Start infant formula promoted the product as hypoallergenic. However, some severely milk-allergic infants experienced serious side effects after using Good Start, including convulsive vomiting. A Nestlé vice president defended the claim and product, saying, "I don't understand why our product should work in 100 percent of cases. If we wanted to say it was foolproof, we would have called it allergy-free. We call it hypo-, or less, allergenic." Nestlé's actions exemplify which of the following philosophies?
a. existentialism
b. moral idealism
c. communism
d. socialism
e. utilitarianism
171.
New performance measures are emerging in an effort to find an ideal one for social media advertising that
172.
The new sharing economy consists of all of the following
173.
The Nielsen PRIZM® lifestyle segmentation is based on the belief that "birds of a feather flock together." It combines __________ with a geographic component.
174.
A nondurable good is defined as
175.
A nonpersonal, indirectly paid presentation of an organization, product, or service that can take the form of a news story, editorial, or product announcement is referred to as
176.
Nordstrom stores typically have 50 percent more salespeople on the floor than other retailers with stores of similar sizes. Its salespeople are renowned for their professional and personalized attention to customers. Nordstrom offers a wide variety of services, including on-site alterations and tailoring, a 7-days-a-week customer service line, live chat line with beauty, design, and wedding specialists and would be considered a(n)
177.
Odd-even pricing is based on
178.
________ often occurs in the postpurchase stage of the consumer decision process, when consumers notice and read advertisements for the brand they just bought as evidence to support their decision.
179.
__________ often triggers a business model change, as it has for companies like Netflix, Barnes & Noble, and Uber.
180.
One advantage of using newspapers as an advertising medium is
181.
One marketing action that can be taken to sell a single product or service to multiple market segments is to
182.
One of the advantages associated with television as an advertising medium is that it
183.
Online buying in organizational markets is prominent because Internet technology
184.
Online content created by an individual outside of a professional organization without a commercial market in mind is a criterion of
185.
Online retail purchases by consumers can be the result of several very different approaches, including going directly to online malls, visiting a website that offer "flash sales," and
186.
An organization's foundation can be broken into three key elements:
187.
Organizations such as American Airlines, U.S. Bank, and the Red Cross each provide customers with a product that is typically called
188.
The outcome of a direct marketing offer designed to motivate people to visit a business is referred to as
189.
Over the past 30 years in the United States, the attitudes of men and women have changed. One factor has been the
190.
Parallel development is the simultaneous development of both
191.
People posing as customers, who are paid to check on the quality of a company's products and services and write a detailed report on the experience, are referred to as
192.
The percentage change in quantity demanded relative to the percentage change in price is referred to as
193.
The __________ phase of the strategic marketing process usually results in a(n) __________ that sets the direction for the marketing activities of an organization.
194.
A picture or verbal description of a product or service a firm might offer for sale is referred to as a(n)
195.
The practice of identifying "emerging shifts in social behavior," which are driven by changes in pop culture that can lead to new products, is called __________ hunting.
196.
The practice of offering a bargain that is conditional on the purchase of other products may exist when a buyer is offered the "1-Cent Sales," the "Buy 1, Get 1 Free," or the "Get 2 for the Price of 1" deal. Such pricing is legal only if
197.
The pricing strategy that is almost the exact opposite of skimming pricing is
198.
The primary purpose of a marketing metric is to
199.
The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends is referred to as
200.
The process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions is referred to as
201.
The process of segmenting a market and selecting specific segments as targets is the link between __________ and the organization's marketing program.
202.
Procter & Gamble can obtain cooperation from supermarkets in terms of displaying, promoting, and pricing its products, given its broad assortment of brand-name products. Which type of vertical marketing system does Procter & Gamble represent?
203.
Product-line pricing involves determining the lowest-priced product and price, the highest-priced product and price, and
204.
A product line refers to
205.
Products that experience rapid sales on introduction and then an equally rapid decline are called __________ products.
206.
A product that has tangible attributes that a consumer's five senses can perceive is referred to as a(n)
207.
A quota refers to
208.
Rack jobbers are wholesalers that
209.
The ratio of perceived benefits to price is referred to as
210.
Rebecca Gollanek makes and sells wooden cooling racks for cakes, cookies, and bread for $22.50 each. She has invested $4,300 in the venture and made $2,200 in net profit. Calculate her return on investment.
211.
Recent surveys of consumers have indicated that while customers of many services are interested in being "relationship customers," they require that the relationship be balanced in terms of
212.
A reference value involves comparing the costs and benefits of
213.
Region and city size are both variables used to employ __________ segmentation.
214.
Relationship marketing provides several benefits for service customers, including which of these?
215.
Resale restrictions exist if a supplier
216.
Research that involves trying to determine the extent to which the change in one factor changes another one is referred to as
217.
Retailers that integrate and leverage their stores, catalogs, and websites have seen
218.
A sales forecast refers to
219.
Sales from which of the following direct marketing tools is growing the fastest at 33 percent?
220.
Selective distribution refers to
221.
Self-regulation refers to
222.
Sensitivity to consumers' consumption or use experience, whether they are satisfied or dissatisfied, is extremely important in their
223.
The set of values, ideas, and attitudes that is learned and shared among the members of an organization is referred to as
224.
Several factors indicate that a penetration pricing policy would most likely to be effective when introducing a new product, including situations in which
225.
Several pricing objectives relate to a firm's profit. In one known as __________, a company gives up immediate profit in exchange for achieving a higher market share in the hopes of penetrating competitive markets.
226.
A single jar of original formula Carmex has different prices for the product depending upon where it is sold, but each price will end in a nine ($0.99 at mass merchandisers like Walmart or Target, and between $1.59 and $1.79 in drug and food retailers such as Walgreens and Kroger). This pricing strategy is called
227.
Social media advertising is helpful to brand managers because consumers are
228.
The societal marketing concept
229.
Societal responsibility refers to
230.
Software programs called __________ are a form of click fraud where the software is used to produce automatic clicks on ads.
231.
Spouse-dominant decision making implies that
232.
The __________ stage of the product life cycle is characterized by rapid increases in sales.
233.
The __________ stage of the product life cycle is characterized by the slowing of total industry sales or product class revenue, causing marginal competitors to begin leaving the market.
234.
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
235.
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
236.
strategic channel alliance
237.
A strategy for managing a product's life cycle that attempts to find new customers, increase a product's use among existing customers, or create new use situations is referred to as
238.
A strategy of dropping a product from the product line during the decline stage of the product life cycle is referred to as
239.
A survey of buyers' intentions forecast involves
240.
There are five steps involved in segmenting and targeting markets. What should a marketer do after he or she has grouped products to be sold into categories?
241.
There are several factors that predict when a skimming pricing policy is likely to be most effective, including situations in which
242.
There are three concepts of social responsibility, each relating to particular constituencies. Societal responsibility is characterized by
243.
There are three concepts of social responsibility, each relating to particular constituencies. Stakeholder responsibility is characterized by
244.
Though it started first as a limousine service and became a ridesharing service, Uber recently redefined its business with the addition of Uber Rush and UberEats, and now considers itself to be in which of these?
245.
The three key methods of classifying retail operations are
246.
T.J. Maxx, where prices are low but selection is unpredictable, uses a(n) __________ pricing practice.
247.
To increase the number of dogs boarding at its facilities, Muntz Kennels mailed coupons to dog owners who lived within a 25-mile radius of the facility. The printing and postage costs for the mailing plus the coupon redemptions would appear in which major expense category on the company's income statement?
248.
To reduce the uncertainty created by __________ properties, service consumers turn to personal sources of information such as opinion leaders, early adopters, and reference group members during the purchase decision process.
249.
To serve both buyers and sellers, marketing seeks to discover and __________ the needs and wants of prospective customers.
250.
The total cost of the products sold by a firm during a specified period is referred to as
251.
The total expense incurred by a firm in producing and marketing a product, which equals the sum of fixed cost and variable cost, is referred to as
252.
Toyota employs all of the following principles and practices as part of "The Toyota Way" except which?
a. Continuously improve business processes and products.
b. Empower individuals and teams.
c. Respect people.
d. Build trust.
e. Provide personalized and customized products.
253.
Trade among nations or regions depends on political stability. In recent times, billions of dollars have been lost in __________ and __________ as a result of internal political strife, terrorism, and war.
254.
A trade war is initiated when
255.
Trading down refers to __________ when repositioning a product.
256.
Trading up refers to
257.
Two key types of synergies are
258.
The ultimate criterion for an organization's marketing success is that __________ as a result of increased synergies.
259.
An unsatisfied customer who switches brands is hard to replace. Which stage of the product life cycle is focused on maintaining loyal buyers?
260.
Using actor Samuel L. Jackson in a Capital One commercial or singer Beyoncé in an American Express ad rather than unknown actors is an example of a popular form of advertising today—the use of
261.
The various forms of online media content that are publicly available and created by end users is referred to as
262.
Walmart and The Home Depot emphasize consistently low prices and eliminate most markdowns with a retail pricing strategy called
263.
Walmart is a channel captain because of its strong image, number of outlets, and purchasing volume. The source of Walmart's power is its
264.
What attitude change approach did Colgate marketers use to encourage consumers to purchase its product when it began to include the antibacterial agent triclosan in its product?
265.
What is the challenge presented to brand managers by social media advertising?
266.
What is the primary purpose of LinkedIn?
267.
What kinds of organizations should engage in marketing?
268.
What type of online auction includes one buyer and many sellers?
269.
When a retailer owns a manufacturing operation, it is referred to as
270.
When developing 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.
271.
When developing the advertising program, specifying __________ helps advertisers with other choices in the process such as selecting media and evaluating a campaign.
272.
When establishing product-line pricing, the price differentials between items in the line should make sense to customers and reflect differences in terms of the
273.
When marketing channel members are engaged in assorting, storing, sorting, and transporting products and services, they are performing __________ functions.
274.
When Trek orders a seat or saddle for one of its models that has a slightly different material for the cover only, but the other components are the same as existing saddles used on other bikes, this purchase situation is known as a
275.
When you order a sweater from an L.L.Bean mail-order catalog, what type of marketing channel are you and the company using?
276.
Which of the following is a commonly held value in the United States today?
277.
Which of the following is a demographic trends that has significant implications to global marketers?
278.
Which of the following is a disadvantage of employing a multiple products, multiple market segments strategy if not implemented well?
279.
Which of the following is a major reason for the violation of ethics codes?
280.
Which of the following is an advantage of using magazines as an advertising medium?
281.
Which of the following is a profit-oriented approach to pricing?
282.
Which of the following is a sales element of an operating statement?
283.
Which of the following is the best example of an organizational buyer?
284.
Which of the following possible characteristics of consumer buying is least likely to enter into an organizational buying decision?
285.
Which of the following smartphone apps is made possible through mobile marketing?
286.
Which of the following statements about Asian American buying patterns is most accurate?
287.
Which of the following statements about customer value is most accurate?
288.
Which of the following statements about executing and evaluating the promotion program is most accurate?
289.
Which of the following statements about marketing departments is most accurate?
290.
Which of the following statements best describes the key difference between merchant wholesalers and agents and brokers?
291.
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.
292.
Which of the following statements regarding a trade-in allowance is most accurate?
293.
Which of the following statements regarding when and how to segment markets is most accurate?
294.
Which of these statements regarding organizational buyers is most accurate?
295.
Which service listed below has the lowest inventory carrying cost?
296.
Which social network has found a niche in helping small business networks reach potential customers, as well as filling its traditional role of connecting job seekers and jobs?
297.
Which statement best describes the most significant difference between a for-profit organization or a business firm and a nonprofit organization?
298.
Which type of purchase is most likely to be the result of joint decision making?
299.
The World Trade Organization (WTO)
1.
Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as
2.
Amazon wanted lower retail prices for e-books to
3.
The Apple innovation that leading car manufacturers are incorporating into their offerings that allows users to make calls, listen to music, and access messages by voice or touch while driving is referred to as
4.
Apple's iPhone has a feature known as Apple Pay that lets you use your phone to pay for credit purchases, meaning you could leave your wallet at home. This feature sets the smartphone apart from its competitors and is part of Apple's ___________ strategy.
5.
As Apple's CEO, the late Steve Jobs orchestrated innovations that revolutionized five different industries. Which industry below is not one of them?
6.
The balance of trade is the
7.
A basic test of the usefulness of the market segmentation process is whether it leads to tangible marketing actions that can
8.
A concept that describes the stages a product goes through in the marketplace—introduction, growth, maturity, and decline—is referred to as the
9.
Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. Channels of distribution in global marketing are often long and complex. The availability and quality of retailers and wholesalers as well as transportation, communication, and warehousing facilities are often determined by
10.
Custom Foot operates six retail locations. At first glance, none looks different from a typical boot store. But here the only boots on hand are display models. There is no inventory for sale and customers go home empty-handed, awaiting their orders. Customers browse the store, choosing style, color, and leather type, with about 100 displays to provide style guidelines. Custom Foot guarantees your boots will be ready within three weeks. This is an example of
11.
An estimated 10 to 15 percent of world trade involves __________, the practice of using barter rather than money for making global sales.
12.
Gatorade is classified as a(n) __________ brand.
13.
Gatorade Thirst Quencher displays the letter G front and center along with the brand's iconic bolt. According to the company, "G represents the heart, hustle, and soul of athleticism and will become a badge of pride for anyone who sweats, no matter where they're active." This is an example of __________ benefits of its packaging.
14.
Goods can be divided into __________ goods and __________ goods.
15.
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 referred to as
16.
Grape-Nuts was one of the first cereals Post Cereal Co. ever marketed. It scores well in brand awareness studies, but recently its sales have been steadily declining. Rather than assume the product was a "dog," the Grape-Nuts marketing manager decided Post should first
17.
In a decision, the restrictions placed on potential solutions to a problem are referred to as
18.
In marketing, a conscious choice made from among two or more alternatives is referred to as
19.
In marketing research, sampling refers to
20.
Insurance premiums, entrance fees, train fares, and organization dues are all examples of
21.
The launch by Gatorade of chews, bars, powders, shakes, and yogurt is evidence of
22.
A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products is referred to as
23.
Market segments refers to
24.
Members of the Book Promoters Association of Canada recently questioned what could be done to rejuvenate the Canadian book publishing industry. Some claimed the problem was that many Canadian bookstores had been replaced by Amazon.com. Others said the problem was stodgy advertising. Still others believed the problem was small budgets for marketing programs. The best way to identify the problem would be to use
25.
Movie studios use market research to reduce their risk of losses by hiring firms such as the National Research Group to conduct test screenings and tracking studies. Often, 300 to 400 prospective moviegoers are recruited to attend a sneak preview of a film before its release. After viewing the movie, the audience completes a survey to
26.
A multidomestic marketing strategy refers to
27.
A nondurable good is defined as
28.
Pairing side sleepers with firm pillows, back sleepers with medium pillows, and stomach sleepers with soft pillows would be done with a
29.
A picture or verbal description of a product or service a firm might offer for sale is referred to as
30.
Price refers to
31.
A product is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfy consumers' needs and is received in exchange
32.
Product life cycle refers to
33.
Promotional expenditures at the introduction stage of the product life cycle are best spent on
34.
Semiotics refers to
35.
Sony sells a 75" XBR-X940D television with 4K resolution, HDR support, Android TV interface with a multitude of apps, and a premium direct LED lighting system. This Sony TV is in which stage of its product life cycle?
36.
Tara is enrolled for spring semester at college. The tuition is $6,000, but she has a scholarship for $1,000 as well as a work-study grant of $1,500. The health fees and student activity fees are $150 for the semester. What is the final price that Tara will pay for the spring semester?
37.
The Tesla Motors Model S, an all-electric-powered automobile, is in which stage of its product life cycle?
38.
Test screenings and tracking studies are examples of market research techniques used in the movie industry to
39.
There are three key elements when defining a marketing research problem.
40.
To accommodate the changes in the book selling market, publishers changed their pricing approach so that
41.
To increase value the most, marketers should
42.
Tony Hsieh, CEO of Zappos, offers $2,000 to anyone who
43.
Tony Hsieh invested in the company Zappos and
44.
The trade feedback effect is one argument for
45.
What are the two most common constraints in marketing problem solving?
46.
When a nation's nation's imports exceed its exports, it incurs a __________ in its balance of trade.
47.
When Hallmark cards introduced a line of 99-cent cards (about half the price of the previously least expensive cards it sold), the greeting card company was trying to appeal to a mass market that was price-sensitive. Hallmark was using a(n) __________ pricing strategy.
48.
Which of the following countries is the world's leading importer?
49.
Which of the following is a disadvantage associated with licensing?
50.
Which of the following is an example of a price?
51.
Which of the following is considered a service?
52.
Which of the following is the best example of a nondurable good?
53.
Which of the following statements about services is most accurate?
54.
Which of the following statements about the relationship between the imports into the United States and the exports from the United States during the last 30 years is most accurate?
55.
Which of the following statements about Zappos is most accurate?
56.
Which of the following statements is most accurate?
57.
Which of the following statements is most accurate?
58.
Which of the following statements regarding Gatorade's branding is most accurate?
59.
Which of the following would most likely be considered a consumer product?
60.
With the introduction of a revised pricing policy for e-books, distributors could still set their own retail prices, but with a restriction. Distributors could set prices below a publisher's retail list price as long as the discount
