MKTG 3301 Exam 1
1. A well-known car manufacturer decided to go completely to hybrids, adding more sports utility vehicles and using more cutting-edge technology. The company is also focusing more on electric cars. This example shows that strategic marketing management _______. a. defines the organization's main activity at a particular time b. addresses how a company can set goals c. shows how many new employees to hire d. explains how to surpass the competition
A
11. As a social media network, Facebook has evolved to fill users' needs for a variety of communication beyond simply updating their status or posting photos or video from their day-to-day life. Users like Jose can now post messages that they are looking to buy or sell items. Jose recently posted that he had a solid oak dining room table and chairs for sale in great condition for $250. Caleb and his partner have been looking for a dining room set but they don't use Facebook, only Instagram and Twitter. Is it likely an exchange will occur? a. No, it is not likely an exchange will occur because the parties are not using the same platforms of communication. b. Yes, it is likely an exchange will occur because there are at least two parties. c. No, it is not likely an exchange will occur since it's not known whether the dining room set is of value to another party. d. Yes, it is likely an exchange will occur as each party will consider the other to be a desirable exchange partner.
A
12. The total population of the United States exceeds 328 million people. Many transactions each day are needed to feed, clothe, and shelter a population of this size. The number is huge. It all works because the US economic system distributes the output of farms and factories. This example shows that _______. a. marketing is important to business b. marketing dominates supply chain activities c. distribution is not part of marketing activities d. distribution is the focus of marketing
A
14. Computer World Corp. manufactures electronic components for computers. The marketing managers at Computer World noted that a new competitor is gaining more customers. In the context of SWOT analysis, which of the following actions should be prioritized by Computer World's marketing managers? a. They must analyze aspects of its marketing environment. b. They must focus on organizational resources. c. They should ignore macroenvironmental forces. d. They should focus on lowering product prices.
A
14. Lucia is an accounting major at a university in Texas. What is the best reason for her to be familiar with the fundamentals of marketing and marketing terminology? a. She needs to be able to communicate with specialists in other areas. b. She plans to work in a not-for-profit organization. c. She wants to spend a semester abroad. d. She wants to broaden her scope of learning.
A
15. Dollar General sells convenience items such as light bulbs, laundry detergent, and milk at a lower price than a customer pays at a grocery store, but the company is still able to maintain satisfactory profit margins. Dollar General is an example of _______ in the convenience store industry. a. cost leadership b. efficient labor c. reengineering d. production innovations
A
15. Employees at the Lucerne luxury hotels developed service guidelines. The guidelines include brief statements such as "I own and immediately resolve guest problems." These employees sustain the company's success in addition to taking responsibility for their actions because they are _______. a. empowered to put values into actions b. offered extensive training c. given less work d. not pressurized with deadlines
A
16. Which of the following actions is primarily associated with a niche strategy? a. Choosing a target market that is not being served by major competitors b. Manufacturing products in bulk and targeting average customers c. Selling products without extra frills or options d. Lowering labor costs
A
17. Marketing is based on the understanding that organizations have employees, suppliers, stockholders, and distributors as _______. a. stakeholder "partners" b. competitors c. clients d. consultants
A
18. Pedro Sanchez Furnishings makes and sells original handicraft oak furniture and cabinet products. The management of the company has been successfully using a niche strategy for years. In this case, which of the following is the most likely to be true of Pedro Sanchez's business? a. It serves only a limited geographic market. b. It serves a large geographic market. c. It develops products that are similar to those of its competitors. d. It targets a market segment that is crucial to major competitors.
A
18. The Brown Company follows a market-oriented approach, whereas The Columbia Company believes in a sales-oriented approach. Considering their approaches, it is evident that _______ has/have an advantage in today's marketplace because it/they finds/find out what customers want and what they need. a. The Brown Company b. The Columbia Company c. both d. neither
A
19. John's Corner is a nursery that allows customers to bring back plants that have died and receive a full refund as long as the customer has a valid receipt. John's Corner has a unique return policy which is valuable to buyers, as opposed to simply offering a lower price than competitors do. This is an example of a _______. a. product/service differentiation competitive advantage b. niche competitive advantage c. sustainable competitive advantage d. cost competitive advantage
A
20. When a firm focuses on its internal capabilities rather than on the desires and needs of the marketplace, then the firm is said to have adopted the _______ orientation. a. production b. sales c. market d. societal marketing
A
21. Learners Inc. offers instructors a chat capability on their instructional software programs. If an instructor is grading a and can't access a student's results, the instructor can click on chat and get a person from Learners Inc. to fix the problem immediately. Instructors do not have to fill out a help desk ticket and wait for days for a response or call and be put on hold for a long time. Because Learners Inc. is making help available exactly when and where instructors want and need assistance, the company is using a _______ strategy. a. place (distribution) b. product c. promotion d. price
A
22. Identify the situation(s) in which a production-oriented firm can survive or prosper in the marketplace. a. When competition is weak b. When supply exceeds demand c. When competition is strong d. When demand equals supply
A
23. Bob Mills furniture aims to improve the lives of many people. The mission statement could have focused on affordable furniture (product oriented), but instead it focuses on making life better for its customers. This example shows that _______. a. market-oriented firms shape their mission statement in terms of customer benefits b. sales-oriented firms create a connection with their customers and employees c. market-oriented firms shape their mission statement in terms of goods and services d. a sales-oriented firm defines its mission statement in terms of goods and services
A
24. You are discussing your career plans with a friend. Your friend is majoring in finance. You explain to your friend why she should study marketing. What do you say? a. Marketing plays an important role in society. b. Marketing will help you increase your salary potential. c. Jobs in marketing are easy to find. d. Job openings are plentiful.
A
25. We "give up" money to "get" the goods and services we want. Giving up something in order to receive something else is an example of the basic marketing principle of _______. a. exchange b. distribution c. production d. selling
A
25_________ acknowledges that in addition to economic and legal duties, companies have obligations to society. These obligations are not mandated by any law or regulation but instead are associated with the demands, expectations, requirements, and desires of various stakeholders. a. corporate social responsibility b. deontological theory c. triple bottom line d. marketing analytics e. the four P's
A
26. When Walmart issued new standards for livestock products that were raised on food without antibiotics or artificial growth hormones, it considered multiple__________, including the ranchers that supply the food, its customers, and animal welfare groups. a. stakeholders b. investors c. marketing executives d. bankers e. corporate shareholders
A
27. Landon has just purchased a beer distributorship. He wants to increase the visibility of his firm in local markets, but he knows there are a number of regulations and socially accepted practices associated with promoting alcoholic beverages. The first thing Landon should do is to: a. identify issues b. promote the firm's corporate social responsibility efforts c. choose to distribute other items d. brainstorm and evaluate alternatives e. choose a course of action
A
28. In Odessa, Texas, it is forbidden to burn leaves when there are high winds because there is the danger of spreading the fire and endangering other residents. This is an example of a standard of proper or acceptable behavior called _______. a. a behavioral norm b. morals c. ethics d. a rule
A
28. Which of the following is NOT required for an exchange to take place? a. There must be at least three parties. b. Each party has something that might be of value to the other party. c. Each party is capable of communication and delivery. d. Each party is free to accept or reject the exchange offer.
A
29. Marketing can occur even if an exchange does not occur. When Sally Rodriguez sold her car, she put an ad in the local newspaper and allowed potential customers to test drive the vehicle. Sally engaged in marketing by _______, even if no one bought her used automobile. a. advertising b. hiring a used car dealer c. preparing the car for sale d. considering a replacement vehicle
A
30. Peter believes in punctuality and is never late for a business meeting. On the way to the meeting, his wife calls him and says that she has a flat tire and needs his help. Peter is facing conflicting obligations. Should he be on time or help his wife? Which of the following ethical theories states that people should abide by their obligations and duties when confronted with an ethical dilemma? a. Deontological theory b. Moral relativism theory c. Casuist ethical theory d. Utilitarian ethical theory
A
34. The Western Company wants its employees to behave in an honest, trustworthy manner. For this reason, the Western Company has a written company guideline to help marketing managers and other employees make better decisions. The guideline is called _______. a. a code of ethics b. morals c. laws d. self-regulations
A
35. Ben wants to do business in the Middle East where it is an accepted practice to give gifts to government officials. However, Ben may not be able to carry out his plans because he doesn't want to violate The Foreign Corrupt Practices Act (FCPA), which was enacted because Congress was concerned about _______. a. U.S. corporations' use of illegal payments and bribes in international business dealings b. website operators obtaining verifiable consent from parents before collecting personal information about children under age 13 c. setting a standard for the suite of educational apps d. protecting children from unwanted online predatory behavior by adults
A
37. Carolina conducts marketing research for a pharmaceutical company in California. Carolina oversees telephone surveys to determine the satisfaction of those who use her company's products. This example shows that _______. a. marketing can assess the needs and wants of present and potential customers b. marketing can advertise the characteristics of a product c. marketing can increase company revenues d. marketing can effectively distribute goods and services
A
39. Staples has entered a partnership with the Permian Basin Rehabilitation Center to provide hearing aids to children with hearing loss. Staples has collection boxes at the cashier counter so that customers can donate their spare change. Staples adds its own donation as well. Which statement is true of cause marketing as carried out by Staples? a. It involves the cooperative efforts of a for-profit firm and a nonprofit organization for their mutual benefit. b. It describes a marketing relationship based on a straight donation. c. It occurs when government agencies and nonprofit agencies launch social campaigns. d. It seldom helps companies increase the sale of their products.
A
4. A furniture retailer wanted to grow but not open too many new stores. The company started opening boutique hotels instead. A management and development company operated the hotels, but the furniture company handled the interiors. Guests could then purchase furniture and decor online. This example shows that the furniture retailer _______. a. was thinking "outside the box" by designing a growth strategy b. decided to add new furniture items to stimulate growth c. planned to add many more stores as a growth strategy d. bought a management company to expand its business
A
40. Great Burger is a burger restaurant that targets those who care about how food tastes and where the food comes from. Prices are higher than average, but Great Burger uses hormone-free meat from humanely raised animals. The meat is shipped fresh, not frozen. This restaurant prides itself on its superior service. This example shows that _______. a. customer value is the relationship between benefits and the sacrifice necessary to obtain them b. customer satisfaction is the relationship between benefits and the sacrifice necessary to obtain them c. empowerment is the relationship between benefits and the sacrifice necessary to obtain them d. teamwork is the relationship between benefits and the sacrifice necessary to obtain them
A
41 Rankings as well as word of mouth from satisfied customers drive additional sales for automotive companies. However, because this orientation uses an aggressive marketing style, the main problem with a _______ is that there is a lack of understanding of what customers want and need. The customer is not in charge. a. sales orientation b. societal marketing orientation c. market orientation d. production orientation
A
41. Phil Jones of the Southern Oil Field Supply Co. is told by a foreign official that he cannot obtain the contract that he critically needs unless he pays a bribe. Which of the following ethical theories would not allow bribing? a. Deontological theory b. Moral relativism c. Utilitarian ethical theory d. Ethnocentric morality
A
43. The Lee Corporation is a sales-oriented firm that focuses on high sales. It does not take into account the customer's wants and needs, and instead concentrates on manufacturing products that will reap high profits. This attitude might lead to the firm's missing business opportunities because _______. a. its focus on manufacturing specific products may not meet customer needs and wants b. it focuses on providing value and benefits to its customers instead of meeting company objectives c. it emphasizes enhancing individuals' and society's long-term best interests d. it concentrates on relationship building, empowerment, and teamwork
A
45. Carrie's Vermont Maple Syrup advertises that its syrup is natural with no artificial sweeteners. This is correct however, Carrie's Vermont Maple Syrup doesn't contain a drop of real maple syrup. It is made from sugar, water, and rice syrup. This example shows that _______. a. just because something is legal, it doesn't mean that it is ethical b. just because something is legal, it is ethical c. the law is a perfect mechanism for good corporate governance d. the syrup is not misbranded
A
45. The Brooks Machine Shop is known for adopting a strategy that focuses on designing new products based on its assessment of the capabilities of its engineers and on the easy availability of resources. The firm's approach, which emphasizes the ease of production and the talents of its resources rather than the needs and wants of the marketplace, can be attributed to its _______ orientation. a. production b. sales c. market d. societal marketing
A
6. The Otani Company Inc. is a renowned technological firm. It manages many strategic business units (SBUs) in which each SBU _______. a. has its own return on investment b. shares the same goals and employs the same strategies as other SBUs within Otani Inc. c. does not have control over its resources d. refrains from performing manufacturing functions
A
7. Tshawna is opening up an online jewelry store that sells handmade necklaces, bracelets, and earrings. What is the best reason for her to study marketing? a. She will better understand the buying process. b. She will be able to negotiate less effectively with sellers. c. She will achieve customer satisfaction. d. She will be a better-informed consumer.
A
8. The discovery, interpretation, and communication of meaningful patterns in data is referred to as _______. a. Big Data b. information technology c. marketing research d. data analysis
A
1. Harry is over 65 and collects monthly social security checks. Harry works part time, and, as a result, the amount of money paid by social security has been reduced. Harry doesn't care because he likes to work and earn money to pay his bills. He doesn't want to rely on the government for his income. Which of the following core values strongly influences the attitudes and lifestyles of Americans? a. Idealism b. Self-sufficiency c. Nonconformity d. Culture
B
10. The ABC Lawn Company aims for a high number of clients that result in high profits. To meet its goal ABC markets its landscaping service vigorously because there are many lawn services and nurseries in the local community. As a sales-oriented company, ABC focuses on _______. a. the needs and wants of the customers b. aggressive trading techniques c. enhancing individuals' and society's long-term best interests d. the internal capabilities of the firm
B
11. Juan owns an oil field supply company in Texas that sells pipe to transport oil to refineries. His business generates more cash than it needs to maintain its market share. According to the portfolio matrix, the type of business unit is called a _______. a. star b. cash cow c. problem child d. dog
B
2. Delightful Coffee terminated its evening program, which was designed to help increase traffic at night, when demand for coffee decreases. However, the program failed to deliver the desired results. Instead, Delightful Coffee added new breakfast items to the menu to increase morning sales. This is an example of a(n) _______. a. innovation b. strategic decision c. product trial d. consumer need
B
2. Kevin is a physical therapist who owns two physical therapy businesses, but he is completely involved in his son Brannan's high school football program. He travels all around the country by truck or by airplane, taking Brannan to football camps and games. What factors affect marketing to people like Kevin with component lifestyles? a. Becoming nondiscriminating and undemanding b. Choosing products that meet their diverse needs c. Reducing the complexity of their buying behavior d. Beginning to prefer products that meet traditional needs and interests
B
21. A sales orientation is common for businesses selling products or services in _______. a. markets with a low level of competition b. highly competitive markets c. situations when intermediaries do not push manufacturers' products d. situations that convince people to buy products they do not want
B
22. The marketers at Ferguson have prepared a marketing plan for the company's air conditioners. Ferguson's management team has outlined several activities for account executives based on this marketing plan and set a deadline and allocated a budget for each activity. Which of the following stages of the marketing plan is illustrated in this scenario? a. Evaluation b. Implementation c. Control d. Vertical integration
B
23. Uber: "We ignite opportunity by setting the world in motion." This mission statement tells ride sharing drivers and customers _______. a. the narrowly defined purpose of Uber b. how Uber serves its customers c. the short-term thinking of Uber d. the resource allocations of Uber
B
26. BCD Sportswear has introduced initiatives to attract millennial shoppers, who typically avoid department stores. These include themed pop-up shops, shop-in shops featuring new fashion designers, and concept shops. This example shows that _______. a. a market-oriented organization targets its products at "everybody" b. a market-oriented organization recognizes that different customers want different benefits c. most people are not attracted to an average product marketed to the average customer d. a sales-oriented organization carefully divides the market into groups of people who are similar
B
3. If the Hunter Foundation had decided to focus only on fighting measles, the organization would no longer exist because measles is generally considered a conquered disease. The Hunter Foundation switched its mission to fighting contagious viruses. This example shows that _______. a. a strategic error can threaten a firm's survival b. a good strategic plan cannot protect and grow the firm's resources c. customer satisfaction is an important element of strategic planning d. once a strategic decision is made, it can't be changed
B
30. Which statement expresses the American Marketing Association (AMA)'s core definition of marketing? a. Marketing is a philosophy, an attitude, a perspective, or a management orientation that stresses employee satisfaction. b. Marketing is an organization function and a set of processes that have value for customers, clients, partners, and society at large. c. Marketing refers to personal selling that focuses solely on selling goods, services, and/or ideas to customers. d. Marketing involves building long-term, mutually rewarding relationships that are beneficial exclusively to the sellers.
B
31. Apple has a history of _______, creating computers, operating systems, and other gadgetry that it hopes the public will want and buy because of Apple's reputation for innovation. a. market orientation b. production orientation c. sales orientation d. societal marketing orientation
B
32. The Nexus company wants to get a contract to build roads in Nigeria. It is the standard business practice for companies to give payments and gifts to officials in Africa. Nexus could easily lose the contract to a competitor. Which of the following ethical theories is defined as a belief in time-and-place ethics and holds that ethical truths depend on the circumstances? a. Deontological theory b. Moral relativism theory c. Casuist ethical theory d. Utilitarian ethical theory
B
33. _______ refers to the means by which organizations communicate with present and prospective customers about the merits and characteristics of their organization and products. a. Pricing b. Promotion c. Big Data d. Customer relations management
B
34. The strategy of improving affiliations with existing customers, which is based on the assumption that most customers prefer to maintain an ongoing rapport with one organization rather than switch continually among providers in their search for value, is defined as _______. a. customer value b. relationship marketing c. teamwork d. empowerment
B
35. The relationship between benefits and the sacrifice necessary to obtain those benefits is known as _______. a. teamwork b. customer value c. customer satisfaction d. empowerment
B
39. The management at DND Computers believes that an increased level of transactions will result in high profits. Together with the company team members, management devises a strategy to promote its new line of convertible laptops based on the assumption that consumers will purchase a product if the company promotes it aggressively. This hypothesis can be attributed to the company's _______ orientation. a. production b. sales c. market d. societal marketing
B
44. Walgreens has addressed the health problems of local communities. To help solve the nation's opioid crisis, Walgreens instituted opioid utilization management protocols, installed drug disposal collection units, and is updating its pharmacists on the dangers of prescription drugs. Walgreens is an example of a company with a _______. a. market orientation b. societal marketing orientation c. production orientation d. sales orientation
B
5. Fast casual restaurants such as Chipotle are expanding because firms recognize that potential customers are predominantly young people. This scenario illustrates how _______ influence marketing decisions. a. economic factors b. demographic factors c. legal factors d. ethical factors
B
5. Maria has a small catering business, and she decided to alter the sweetness of her salad dressing. This operational decision will _______ have a big impact on the long-run profitability of Maria's company. a. probably b. probably not c. plausibly d. as likely as not
B
6. Ruth is a 10-year-old tween. She spends lots of time online playing computer games and talking to the new friends she met online. Now that Ruth is being home schooled, it is even more important to her to go to Facebook and meet new friends. To take a break from her online schoolwork, Ruth spends her time enjoying new and challenging computer games. Which statement is true about Ruth? a. Ruth is especially influenced by sales reps and word-of-mouth recommendations. b. Ruth is heavily influenced by social media and the internet regarding what is on trend or relevant. c. Ruth prefers and values traditional media over social media, unlike other cohorts. d. Ruth has little spending money and relies on her parents and relatives to make purchases.
B
7. Jennifer was born in 1967. She is a college graduate and values education. When Jennifer purchases appliances like a new dishwasher, she does a significant amount of research and reads online reviews. Which population group describes Jennifer? a. Millennial b. Gen Xer c. tween d. Baby Boomer
B
8. Samantha was born in 1994. She spends more time on Facebook than reading magazines. Despite her preference for spending time online at social networking sites, she does listen to the radio and read occasionally. Given this information, which of the following statements is true of Samantha? a. She does not expect brands to be on social media. b. She is a younger Millennial. c. She is one of the first generation of latchkey children. d. She would have graduated from college during the Great Recession.
B
9. Juan, a Hispanic Millennial, completed his bachelor's degree in 2020 and is looking forward to having a successful career. Which of the following behaviors is Juan most likely to be associated with? a. Juan favors Spanish media over English media. b. Juan embraces parts of his original culture. c. Juan is not prone to accept future family obligations and the difficulties of supporting parents and grandparents. d. Juan is most likely to be monolingual.
B
9. Midland College has instituted a mini-mester, a college course that covers one full semester of material in six weeks. Students can earn three college credits during the mini-mester. This format is in addition to the 16-week semester and the eight-week semester. The mini-mester course is considered a _______ alternative. a. diversification b. product development c. market development d. market penetration
B
9. One vision, a publisher of video games, monitors social media conversations that are relevant to its products and follows up on those conversations. This long-term focus on customer needs is the hallmark of _______. a. customer value b. relationship marketing c. teamwork d. empowerment
B
6. Which of the following is a similarity between a production orientation and a sales orientation? a. Both ignore the importance of assessing a firm's internal capabilities. b. Both lack an understanding of the needs and wants of the marketplace. c. Both place little emphasis on the assessment of manufacturing plants and facilities. d. Both fail in a market where demand exceeds supply.
B. Both lack an understanding of the needs and wants of the marketplace
2. Gentech, a cloud-computing company, is rated as a top company to work for. It offers rich monetary and psychological rewards. It has developed software that identifies strong performers who have not been promoted for 18 months and helps them seek new challenges. Gentech has shown that _______ a. employee commitment does not add to productivity b. companies rated by employees as the top places to work outperform their competitors c. marketing includes benefits for customers but not employees d. employees are not considered connected "stakeholder partners"
B. Companies rated by employees as the top places to work outperform their competitors
4. A _______ firm assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product. a. sales-oriented b. market-oriented c. production-oriented d. societal-oriented
B. Market-Oriented
10. Charles is an African American who works as an assistant superintendent in the Odessa public school system. On the weekends, Charles volunteers at the Odessa animal shelter. He feels strongly about humane treatment of animals and often tries to find good homes for animals that have been abandoned or abused. He makes contributions to animal rights nonprofit organizations. Which of the following statements is true about Charles? a. He does not believe in strong cultural connections. b. He doesn't expect brands to reflect his values. c. He generally expects brands to support social causes. d. He is part of the largest group to use mobile devices for banking transactions.
C
10. When they first started to conduct business, international ride-sharing companies such as Uber or Lyft relied on new, unfamiliar concepts to develop breakthrough decisions. Drivers use their own cars to transport customers who call or text for a reservation using a credit or debit card. According to the innovation matrix, ride sharing is considered a(n) _______. a. core innovation b. adjacent innovation c. transformational innovation d. product development strategy
C
12. Sari has opened up a craft store. She offers classes in cake decorating as well as sewing and needlepoint supplies. However, she has had very low attendance in the classes and a low sales level of craft items, even though she has discounts available in the form of store coupons. In the context of the portfolio matrix, which statement is generally true of Sari's business? a. Protection of existing market share is essential for dogs. b. Dogs have a dominant market share in low-growth markets. c. This business is a dog and she should harvest or divest it. d. Dogs escalate in the market if given strong financial funding.
C
13. The Shoe Company and Bob's Natural Foods outperform their competitors in today's marketplace because they try to find out what their customers want, and they do their best to provide the products and services that their customers request. They derive their understanding of the competitive arena from a _______-oriented focus. a. production b. sales c. market d. societal marketing
C
16. The Standard, a cloud computing company in Dallas, captured the number-one position in Fortune's "100 Best Companies to Work For" because the company _______. a. had a large increase in profits b. provided jobs to unemployed workers c. fostered trust, growth, innovation, and equality d. produced innovative goods and services
C
17. Automakers can disassemble a product to assess its components and provide clues about the manufacturing process. This main benefit of this process of reverse engineering is to _______. a. develop a market niche b. highlight a company's unique features c. achieve a cost competitive advantage d. bring about product innovations
C
19. The management of Intel believes that success can be achieved with a thorough understanding of its competitive arena and by developing products that satisfy the needs, wants, and expectations of customers. Therefore, Intel can be said to have a _______ orientation. a. production b. sales c. market d. societal marketing
C
24. The Sunshine Foundation provides funds to countries in South America to develop long-term sources of clean water. The Sunshine Foundation realizes that clean water is needed to improve health and preserve local ecosystems while creating a competitive advantage. The actions and interests of the Sunshine Foundation are examples of a. short term profit maximization b. target marketing c. environmental sustainability d. marketing channels e. public relations
C
27. A company that creates a marketing strategy to attract consumers who want to interact anywhere and anytime and expect interactions with the company to be easy is most likely practicing _______. a. sales-oriented marketing b. societal-oriented marketing c. on-demand marketing d. innovation marketing
C
32. The Biking Company bikers told the manufacturer that they wanted lighter, more powerful bikes and a better way to handle corners. The Biking Company follows a market orientation. What did the company do? a. It added more aggressive sales force employees. b. It developed heavier bikes with wide angles for better cornering. c. It created bikes with bigger engines and lighter, stronger frames. d. It increased its internal capabilities by hiring more engineers.
C
36. Rodriguez Brothers Plumbing in Atlanta, Georgia is sponsoring a 5K run to raise money for cancer research. Rodriguez wants to give back to the community in which he has done business for decades. When considering corporate social responsibility, which is true of stakeholder theory? a. It states that companies should only focus on increasing shareholder wealth. b. It states that social responsibility is best carried out by government agencies. c. It states that a company is expected to be a good citizen in its community. d. It states that the management does not play a special role in the organization.
C
37. Every year, Rainbow Printing sponsors a style show that raises money for the food bank. However, this year, business at Rainbow Printing is way down, and the company cannot afford to sponsor the style show. Based on this example, which statement about the pyramid of corporate social responsibility is true? a. Philanthropy should be the most important function of a corporation. b. Ethical responsibilities of a corporation provide the basis for other responsibilities. c. If a company does not make a profit, then the other three responsibilities—legal, ethical, and philanthropic—are moot. d. Social responsibility efforts should be focused on the external and not the internal stakeholders of a corporation.
C
38. Kendall Wong has a car to sell and advertises it online. Several potential buyers test drive the car. All five conditions that are necessary for an exchange to occur exist in this scenario. Has an exchange occurred? a. An exchange has occurred because all the conditions have been met. b. An exchange has occurred because Kendall has identified prospective buyers. c. Until Kendall sells the car, an exchange has not taken place. d. Until Kendall and a buyer decide on the price, an exchange has not occurred.
C
38. Sanchez Foods Inc. is a large food manufacturing corporation that earns more profits than its competitors. The company uses only organically grown grains and fruits. It also promotes organic farming and helps nonprofit agencies that focus on food and nutrition causes. The company recently decided to use a third-party recycling logo. In this scenario, Sanchez Foods is most likely to have adopted the practice of _______. a. relationship marketing b. event marketing c. green marketing d. affinity marketing
C
40. Hunt Advertising is collaborating on an initiative with the Odessa Arts Council, a nonprofit organization, by providing public-relations training to working professionals throughout West Texas. Twenty percent of the fee that the participants would pay is given to the nonprofit organization. The nonprofit organization in turn reaches a wider range of audience across West Texas for its training program. This scenario illustrates _______. a. relationship marketing b. effect-related marketing c. cause-related marketing d. green marketing
C
42. Walmart has continued to grow despite changes in the economy. Which term refers to the optimum utilization of assets so that a firm like Walmart continues making profit in the long run? a. Social sustainability b. Environmental sustainability c. Economic sustainability d. Physical sustainability
C
42. Which of the following activities is NOT required to achieve a market orientation? a. Obtaining information about customers and competitors b. Examining information about markets from a business perspective c. Employing a high-quality sales force to aggressively promote goods and services d. Determining and implementing actions to provide and deliver added value to customers
C
43. Juan is a customer of Home Depot. He buys all of his building supplies from Home Depot because as a stakeholder he trusts Home Depot to _______. a. generate revenue for the firm b. safeguard the welfare of the organization c. deliver quality goods to him in a timely manner d. carry the employees through difficult times
C
44. Susie works at Target. She stocks merchandise and assists customers who have questions. As an employee of Target, Susie is a stakeholder who does all of the following EXCEPT _______. a. expect wages b. expect benefits c. balance the multiple claims of conflicting stakeholders d. expect meaningful work
C
7. Santos Inc. is a large company that manufactures and sells hair care products. It plans to adopt a product development strategy. In this case, Santos Inc. will _______. a. introduce a new product into China b. offer hair care products at competitive prices c. introduce a new product line of chemical free, all-natural shampoos to its present customers d. sell its existing products in Europe
C
1. Marketing contributes directly to achieving all of the following business objectives EXCEPT _______ a. survival b. profits c. stagnation d. growth
C. Stagnation
13. The DDX Corp. is a large corporation that offers several product lines. On the company's website, the following text is highlighted: "Our business aims to be profitable by providing our clients with high-quality products that are produced in a cost-effective manner. Our goal is to provide value to our customers, serve the community, and preserve the environment." This text is likely to be DDX Corp.'s _______. a. article of incorporation b. statement of qualification c. scenario planning d. mission statement
D
20. Hinachi, an electronics and appliance manufacturer, decides to launch its new line of smartphones on the company's official website to resolve logistics issues that the company has identified. With this modification, its customers can now buy the smartphones directly from Hinachi even if they are not available in retail locations near potential consumers. In this case, Hinachi focuses on the _______ element of the marketing mix. a. evaluation b. promotion c. price d. distribution
D
29. Betty bought a jar of facial cream with natural ingredients for $50 online from Beauty Today Inc., a company that promises a youthful wrinkle-free skin for those who buy the cream and use it twice a day. Betty used the cream as directed but didn't see any difference in her skin. Which of the following statements is NOT an ethical explanation of Betty's situation? a. Law is not a perfect mechanism for ensuring good corporate behavior. b. Laws address the lowest common denominator of socially acceptable behavior. c. Just because something is legal does not mean that it is ethical. d. Customers should not assume that all product labels are accurate.
D
3. Raymond, an investment banking firm, promotes its offerings through various social media platforms. Which of the following statements is most likely to be true about Raymond? a. The platforms display content solely generated by Raymond. b. Raymond uses its social media platforms to promote one-way communication, similar to network television. c. Raymond reduces its reach by promoting its products via social media platforms. d. Raymond can create conversations with its customers and establish meaningful connections.
D
31. Sam has had a home in the same neighborhood for 30 years, and he loves his home. Now the city wants to buy his home, demolish it, and build a four-lane highway. The highway will benefit the entire community. Which of the following ethical theories states that the most ethical choice in a situation is one that produces the greatest benefit to the most people? a. Deontological theory b. Moral relativism theory c. Casuist ethical theory d. Utilitarian ethical theory
D
33. Carolyn is a server at an Olive Garden restaurant and enjoys meeting new people who dine at the restaurant. Recently, an elderly couple visited, and Carolyn overheard them talking about their financial struggles. They asked Carolyn for refills of salad and extra breadsticks that they could take home with them. Carolyn agreed even though it was against corporate policy. What Carolyn exhibited conforms to the ethical theory of _______. a. casuist ethical theory b. act utilitarianism c. rule utilitarianism d. moral relativism
D
36. Which of the following is NOT a career opportunity in marketing? a. Product management b. Retail buying c. Distribution management d. Human resources management
D
4. Brooke has a sign company. She creates colorful signs for birthday parties that can be placed outside of the front door to announce a birthday or welcome birthday party guests. She only advertises on social media. Customers go to her website and place an order, and Brooke delivers a hand-painted sign. Brooke uses social media for all of the following reasons EXCEPT _______. a. she can respond to requests for birthday events in real time b. she can establish meaningful connections with customers and get references c. she can engage customers in their products and services d. she can use local network television affiliates to push her message out to a mass audience
D
8. Johnson Controls experienced a steep decline in product sales due to increased competition in the local market. Johnson Controls plans to adopt the market development strategy. Which of the following is the best step the company can take to overcome its financial losses? a. Introduce new products into new markets. b. Create new products for its present markets. c. Attract existing customers rather than new customers. d. Focus on promoting new uses for old products.
D
5. Walmart is the largest retailer with both brick-and-mortar stores and a growing internet business. Walmart continues to innovate with its service to shop online and pick up at the store. Walmart has also faced criticism due to its low wages and difficulty for part-time employees to get group health insurance. Many consumers refuse to shop at the store due to their employee policies. Based on this scenario, which criterion for an exchange to occur is missing? a. Each party has something of value to offer another party. b. Each party must be capable of communication and delivery. c. There must be at least two parties. d. Each party is willing to consider the other to be a desirable exchange partner.
D. Each party is willing to consider the other to be a desirable exchange partner
3. Which of the following vital business activities is NOT included in marketing? a. Assessing the needs and wants of consumers b. Designing and managing product offerings c. Determining pricing and pricing policies d. Recruiting and selecting qualified employees
D. Recruiting and selecting qualified employees