mkft 409 pride chpt 1 mind tap

customers consciously calculate the value of a product in benefits and costs for most purchases

False For most purchases, we do not consciously try to calculate the associated benefits and costs

When McDonald's decided to eliminate artificial flavorings and preservatives from its vanilla ice cream, it was most likely responding to which of the following?

Marketing environment forces Most likely it is responding to changes in the marketing environment—more specifically, to sociocultural forces. Consumers have been placing more value on healthier, more natural foods. McDonald's wants to capitalize on this opportunity.

Which of the following statements about the marketing environment is false?

Marketing environment forces are uncontrollable, so marketers do not plan for them. Marketing environmental forces are largely uncontrollable, but smart marketing managers work to anticipate and plan for them

which of the following is a major benefit of marketing?

Marketing knowledge enhances consumer awareness.

Apple is known for its innovation. It conducts in-depth marketing research to determine what customers want. Its electronic devices are constantly upgraded so customers can purchase the newest models. The company creates buzz around its product offerings by discussing the product months before it is launched. This anticipation builds up until the product is launched, resulting in wide-scale sales that often result in stores selling out of the newest product. Apple's emphasis on marketing research is used to enhance the ____variable of the marketing mix, while its skills at creating buzz for its newest product offering months before its release is an example of ________variable.

Product and Promotion The product variable of the marketing mix deals with researching customers' needs and wants and designing a product that satisfies them. The promotion variable relates to activities used to inform and persuade to create a desired response.

Lumos Labs, the maker of brain-training app Lumosity, released advertisements that claimed its app was able to prevent Alzheimer's. The Federal Trade Commission fined Lumos Labs $2 million, saying that the company did not have the science to back up its ads. What type of marketing mix variable is involved in this situation?

Promotion

samuel spent $500 on a new television set. How much of this price is likely to go toward marketing expenses?

about $250

during the holiday season, a Bluetooth speaker was in such high demand that it sold out quickly at a local Walmart. When Walmart tried to order more, it learned that the supplier had so many orders to fill it would not be able to fill Walmart's order for two weeks. What type of marketing mix variable does this problem involve?

distribution

according to your text, a well-implemented_________ and a strong ________ result in the greatest decrease in ethical risks for an organization

ethics program; corporate culture

an ethical issue in the area of promotion is __________, which occurs when products are promoted as being more environmentally friendly than they really are

greenwashing

which of the following is NOT an example of illegal anticompteitive practices?

mislabeling products is outlawed by consumer protection legislation

in the absence of ethics and compliance programs, employees will generally make decisions based primarily on their _________

observations of how coworkers and superiors behave

marketers use market segment profiles to assess the degree to which their products fit potential customers'

product needs

__________ occurs when companies ask customers to return products found to be defective

product recalls

teenagers are not part of the market for alcohol because they do not have ________

the authority to buy alcohol

The majority (more than 90 percent) of B2B buyers use _______ to gather research before making a purchase.

the internet about 94% of B2B buyers engaged in online research prior to purchasing a product

Marketing managers may also utilize _______ to develop sales forecasts which uses the firm's historical sales data to discover a pattern or patterns in sales over time. This method assumes that past sales patterns will continue into the future.

time series analysis

a person can have high income and little wealth T/F

true

it is possible for a customer to have a negative lifetime value

true Customer lifetime value predicts the net value (profit or loss) for the future relationship with the customer. In some cases, customers may be unprofitable for the firm and generate a loss. Firms often take steps to discourage these customers or charge them higher fees.

if segmentation analysis shows that customer needs are essentially homogeneous, what action may be most appropriate?

undifferentiated approach

a large proportion of customers in the total market must be homogeneous in order to effectively use a(n) _________

undifferentiated strategy

the Foreign Corrupt Practices Act in the United States is a bribery law that is more encompassing than the U.K. Bribery Act T/F

False

the major source of cultural values is religion T/F

False

________ involves organized efforts by individuals, groups, and organizations to protect consumers' rights

consumerism

what is the major focus of the marketing concept?

customer satisfaction

if a furniture maker targets the consumer and business markets for office desks with separate marketing mixes for each, it is using the ________

differentiated strategy

The essence of marketing is to develop satisfying _______ from which both customers and marketers benefit.

exchanges

ethical choices in marketing are most often made________

jointly

the total amount of product that customers will purchase within a specified period at a specific level of industry-wide marketing activity is best described as ____________

market potential

principles and standards that define acceptable conduct in marketing as determined by various stakeholders are known as

marketing ethics

many marketing managers attempt to influence and shape environmental forces. This is known as _________ approach

proactive

which of the following is an informal way of expressing organizational culture?

stories

which of the following do code of ethics NOT do?

they take every situation into account

which of the following sales forecast methods uses historical sales data to discover a pattern in sales over time?

time series analysis

The Brandenburg family makes $7,000 per month. About $1,800 goes toward taxes and savings. They spend $5,200 on goods and services. Based upon the information in the text, about how much of their money goes toward marketing activities?

$2600 About half of the money paid for goods and services goes toward marketing activities. This translates to about $2,600.

which of the following statements is true about marketing?

All types of organizations need marketing, including for-profits, non-profits, and government.

If you purchase an iPad for taking notes in school and to watch videos, you are part of which of following?

B2C market

which of the following is a brand competitor for Dr. Pepper?

Coca-Cola

A Subaru representative has a solid relationship with Phil, a satisfied customer. Phil loves Subaru and will not accept anything else. The representative determines that if Phil continues to do business with Subaru every time he wants to purchase a new car, his total value to the company would be $350,000. This includes purchases made by customers who were referred to the firm by Phil. The Subaru representative has calculated Phil's _______.

Customer lifetime value Customer lifetime value predicts the net value (profit or loss) for the future relationship with the customer.

which of the following equations describes customer value?

Customer value= customer benefits- customer costs

Valerie works at a pharmaceutical firm that develops medicines for rare diseases. The company develops a new medication for a disease that very few people have. In fact, less than 100 people are said to have this disease in the entire country. As a result, the drug will be priced high, but the firm will work closely with insurance companies to get the medicine to the right people without sacrificing much revenue. Her friend Rick, who is taking business classes, tells her that this is too small to be a target market. Is Rick's statement true?

False Marketing managers may define a target market as a vast number of people or a relatively small group.

Marketers have complete control over marketing mix variables

False while these variables are largely controllable, environmental forces do place limits on how much marketing managers can alter them

_______ is a strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment.

Green marketing

Which of the following institutions would be most likely to market an idea as their main product?

Greenpeace Greenpeace promotes a philosophy that makes the environment and its conservation a top priority.

The marketing concept is based upon the idea that an organization should try to provide products that satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals. During which orientation (time period) are marketers most likely to adopt the marketing concept?

Market orientation

Jim manages a small factory that produces circuit boards. Jim operates from the belief that a good product creates demand. He focuses much of his energy on developing operational efficiencies and increasing output. The company's salesperson Darlene, however, views customer relationships and personal selling as being the highest priority. Between the two of them, the firm has become known for its quality products and excellent customer relationships. What type of orientation has Jim adopted?

Production Jim has a production orientation. He focuses his efforts on increasing production and believes that quality products create demand.

Holiday Computer Associates was recently fined for violating the _______ due to its practice of charging different prices to different customers without any justification.

Robinson-Patman Act the Robinson-Patman Act prohibits price discrimination that lessens compeition among wholesalers or retailers

Which of the following is the potential for the long-term well-being of the natural environment, including all biological, as well as the interaction among nature and individuals, organizations, and business strategies?

Sustainability

which agency has the most influence over marketing activites?

The Federal Trade Commission (FTC)

Marketers can influence the political process through political action committees that solicit donations form individuals and then contribute those funds to candidates running for political office T/F

True

You are advising a local nonprofit on strategy. The nonprofit supports cancer research and relies entirely on donations. You recommend that the nonprofit engage in marketing activities. The executive director tells you that because it is a nonprofit that does not engage in selling activities and has a small budget, the nonprofit has no use for marketing. You disagree and explain that marketing is not just for for-profit organizations. You explain the different ways the nonprofit can engage in marketing without changing its practices or the mission. Which of the following marketing activities would be most feasible for this nonprofit?

Use inexpensive digital marketing tools to inform the community about an upcoming fundraising event

if other organizational members approve of the activity and it is legal and customary within the industry, chances are that the activity is __________ from both an ethical and a social responsibility perspective

acceptable

a lawsuit was filed against Naked Juice because of its claim that it is "natural". The lawsuit claimed that because it contained synthetic ingredients, it did not fit the definition of "natural" and was therefore misleading. Naked Juice agreed to drop the "natural"claim. According to critics, Naked Juice was violating consumers' right to _________

be informed

when a marketing manager estimates how much of a product a potential buyer in specific geographic area will purchase in a given period, she is employing the ________

buildup approach

people are sometimes more willing to buy if they have the

buying power willingness to spend- the inclination to buy because of expected satisfaction from a product- is, to some degree related to the ability to buy

proactive organizations often seek to influence the political forces of environment through __________ and ______

campaign contributions; lobbying

Businesses that desire to implement strong ethics and social responsibility programs may face difficulties since it is impossible to satisfy all members of society and their decisions may alienate or dissatisfy some customers. Therefore, it's important that businesses _______.

carefully monitor changes and trends in society's values

Chantel works at Coca-Cola. To make the required sales number, Chantel sent more Coca-Cola products to their distributors than what they asked for. She did this right before the accounting period. She knew that even if they sent back the extra product, it would be after the numbers were reported. This is an example of what type of distribution issue?

channel stuffing

The marketing environment includes _______, economic, political, legal and regulatory, technological, and _______ forces.

competitive; sociocultural The marketing environment includes competitive, economic, political, legal and regulatory, technological, and sociocultural forces.

the chief advantage of the ________ is that it allows the firm to specialize in satisfying the needs and characteristics of a specific customer group

concentrated targeting strategy

Subaru developed a new luxury car model, but, after performing some market tests, it realized that it was pricing its vehicles too high, even for the luxury market. Subaru had to make some changes in its marketing mix. Unfortunately, it made the mistake of launching its product right when a recession hit. As unemployment rose, sales of luxury products such as Subaru's new luxury vehicle tend to decrease. In this case, the pricing of its vehicle is a(n) _______ force for Subaru, while the economic downturn is a(n) _______ factor.

controllable; uncontrollable

soda companies are worried because sales have fallen flat. People today are more concerned about their sugar intake and want to be healthier. This reflects a change in _______

cultural values

Anthony works at a local electronics retailer. He has two customers in particular that he sees regularly. One customer, Mr. Johnson, comes in frequently asking about new deals. However, he rarely buys anything, and when he does buy something it is usually small. The other customer, Mr. Montoya, comes in a little less frequently. He does not purchase products all the time, but when he does the products are expensive. Anthony recognizes that Mr. Montoya is a more valuable customer over time than Mr. Johnson. He has therefore worked hard to develop a strong relationship with Mr. Montoya. What marketing method is Anthony most likely using to direct his actions?

customer lifetime value

which stakeholders are the focal point of all marketing activies?

customers

ethics relates to individual and group decisions whereas social responsibility _________

deals with total effect of marketing decisions on society

Louis is a student at Texas A&M who just secured a summer internship working for the marketing department of Southwest Airlines. He is assisting Marlene, one of the marketing managers, with a competitive assessment of the U.S. market. Marlene wants him to think outside of the box when assessing the competition. She tells him to think beyond direct competitors to any competitors that might be able to offer similar services as Southwest. Which of the following represents a brand competitor to Southwest Airlines?

delta airlines

when marketers use age, gender, race, ethnicity, income, education, occupation, family size, family life cycle, religion, and/ or social class to segment consumer markets, they are using_______

demographic variables

income that is available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter is known as_______

discretionary income

Jameson manages a well-known cell phone company. This company has been voted as having the best cell phone service. Consumers appreciate the fact that they can call from almost anywhere in the world and the service still gets through. Jameson knows that the company's product far surpasses that of the competition. One thing has been bothering him, though. In order to put so many resources into ensuring the best service, Jameson has cut back on employees at the firm's customer call center. Recently, consumers have begun complaining about long wait times when they call in with a problem or concern. Although its cell phone service is still considered one of the best, customer satisfaction with the firm's customer service has plummeted. Jameson does not understand why consumers are getting so upset. He believes the exceptional cell phone service more than makes up for long waiting periods and other issues with its customer service. "After all," he says, "They can't have it all. If I invest more in customer service, that means less investment on ensuring the quality of our product offering." Jameson has asked you, a marketing consultant, to give him advice. He cannot understand how a cell phone company with the best product offering in the cell phone service industry could get such low satisfaction ratings simply because the customer service is not up to par. You suggest that Jameson has a narrowly defined view of the company's product offering. You tell Jameson that successful marketers should define their products as what they _______.

do to satisfy customers

whether fluctuating rapidly or slowly, environmental forces are always

dynamic

the ________ of technology involves the constant change that challenges every aspect of our society

dynamics

Charles works as a marketer at Microsoft. He has just spent the last few weeks collecting information about environmental forces that will impact the computer industry. The time has come to try and improve the company's marketing strategy in relation to competitors. Which type of activity is Charles working on?

environmental analysis is the process of assessing and interpreting information obtained in scanning

_________ is the process of collecting information about forces in the marketing environment

environmental scanning

what is the first step for marketers in implementing the marketing concept?

establish an information system to discover customer's real needs

an _________ is an identifiable problem, situation, or opportunity that requires an individual or organization to choose from among several actions that must be evaluated as right or wrong, ethical or unethical

ethical issue

a rule of thumb for resolving ethical and social responsibility issues is that if an issue can withstand open discussion that results in agreement or limited debate, an acceptable solution may exist

false

evaluate the truthfulness of this statement: strong ethical standards are necessary to completely eliminate misconduct from the organization

false

individual values are more likely to influence organizational ethical decision making than organizational culture.

false

which of the following statements is true about how our US demographics are changing?

fertility rates are at their lowest

Which of the following is NOT a benefit of socially responsible business practices?

generates greater employee turnover socially responsible efforts have a positive impact on firms and local communities- it attracts goodwill, publicity, and potential customers and employees. in addition, it generates greater employee commitment and improved business performance

ACME Corp divides its markets into segments based on the part of the US in which the business customer operates. This illustrates segmentation based on ___________

geographic location

research into marketing ethics suggests that the __________ associated with a issue, the more likely it will be recognized as an ethics issue and the more important it will be in making an ethical decision

greater the consequences

When organizations pursue initiatives to improve their ability to make a positive impact on society and the natural environment, they are engaging in _______.

green marketing is defined as a strategic process involving stakeholders assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment

Louis is a student at Texas A&M who just secured a summer internship working for the marketing department of Southwest Airlines. He is assisting Marlene, one of the marketing managers, with a competitive assessment of the U.S. market. Marlene wants him to think outside of the box when assessing the competition. She tells him to think beyond direct competitors to any competitors that might be able to offer similar services as Southwest. Which of the following represents a generic competitor to Southwest Airlines?

greyhound bus system

which of the following is the first step in the target market selection process?

identify the appropriate targeting strategy

marketing environmental factors are often

interdependent

Frito Lay developed a bag for its chips that was biodegradable. While praised by environmentalists, soon it received many complaints that the bags were too loud when they crinkled. Frito-Lay ended up abandoning the packaging. What does this situation demonstrate about socially responsible behavior?

it can be difficult to balance all of society's demands

which of the following statements describes a benefit that marketing offers?

it enhances consumer awareness Marketing knowledge enhances consumer awareness. Today the consumer has more power from information available through websites, social media, and required disclosure.

which of the following sentences is true about marketing exchange?

it requires four conditions to take place

what is the significance of the 2010 Supreme Court Decision Citizens United V Federal Election Commission?

it ruled that government is not authorized to ban corporate spending in candidate elections

which of the following is most closely related to the political forces of the marketing environment?

legal and regulatory forces legislation is enacted, legal decisions are interpreted by courts, and regulatory agencies are created and operated for the most part, by elected or appointed officials legislation and regulations (or the lack thereof) reflect the current political outlook

Apple is known for its innovation. It conducts in-depth marketing research to determine what customers want. Its electronic devices are constantly upgraded so customers can purchase the newest models. The company creates buzz around its product offerings by discussing the product months before it is launched. This anticipation builds up until the product is launched, resulting in wide-scale sales that often result in stores selling out of the newest product. From the information provided about Apple and its marketing strategies, Apple most likely embraces a _______.

market orientation Apple first determines what customers want and then produces those products rather than making the products first and then trying to persuade customers that they need them.

which of the following is a consumer protection law?

nutritional labeling and education act

Jameson manages a well-known cell phone company. This company has been voted as having the best cell phone service. Consumers appreciate the fact that they can call from almost anywhere in the world and the service still gets through. Jameson knows that the company's product far surpasses that of the competition. One thing has been bothering him, though. In order to put so many resources into ensuring the best service, Jameson has cut back on employees at the firm's customer call center. Recently, consumers have begun complaining about long wait times when they call in with a problem or concern. Although its cell phone service is still considered one of the best, customer satisfaction with the firm's customer service has plummeted. Jameson does not understand why consumers are getting so upset. He believes the exceptional cell phone service more than makes up for long waiting periods and other issues with its customer service. "After all," he says, "They can't have it all. If I invest more in customer service, that means less investment on ensuring the quality of our product offering." On your advice, Jameson decides to invest more in customer service training and hiring. Satisfaction increases, but not to the level Jameson thinks it should be. He conducts a marketing research study and found that while most consumers like the product, many would like to see additional services available. However, what type of service customers want tends to vary by customer. Jameson has come to believe that customers just do not know how to assess value correctly. Jameson appears to believe that determining value is a(n) _______ process, while in reality the process of assessing value is highly _______.

objective; subjective Jameson seems to believe the process of assessing value is objective, when in reality it is highly subjective and tends to vary from person to person.

Louis is a student at Texas A&M who just secured a summer internship working for the marketing department of Southwest Airlines. He is assisting Marlene, one of the marketing managers, with a competitive assessment of the U.S. market. Marlene wants him to think outside of the box when assessing the competition. She tells him to think beyond direct competitors to any competitors that might be able to offer similar services as Southwest. Because Southwest Airlines operates in a(n) _______, if American Airlines lowers prices, Southwest will likely _______.

oligopoly; do the same

At Shania's job, promptness is heavily stressed. However, Shania's supervisor never punishes anyone for being tardy, no matter how late they come in. Shania therefore takes advantage of this to sleep in an extra hour each day. This failure on the part of Shania's supervisor is an example of how _______ factors can influence employee conduct.

opportunity

conditions that limit barriers or provide rewards are known as

opportunity

ACME Corp is striving to foster a set of ethical values, beliefs, goals, norms and rituals that members of an organization share. This is best described as _________

organizational culture

Janelle manages a small pharmacy in Dallas, Texas. Recently, she started an initiative to help give low-income individuals steep discounts on expensive drugs. The company is losing some revenue by charging these discounts, but it has helped the pharmacy gain a reputation for corporate citizenship. Consumers can also donate money to help fund this initiative. Which responsibility is the pharmacy fulfilling with this initiative for low-income consumers?

philanthropic

Janelle manages a small pharmacy in Dallas, Texas. Recently, she started an initiative to help give low-income individuals steep discounts on expensive drugs. The company is losing some revenue by charging these discounts, but it has helped the pharmacy gain a reputation for corporate citizenship. Consumers can also donate money to help fund this initiative. Suppose that Janelle went on a business trip. When she comes back, she files an expense report and sends it to the pharmacy's headquarters. Although a few meals were provided on her trip, Janelle does not tell them this but puts down that she needs to be reimbursed for all meals. The initiative providing discounts to low-income consumers fulfills the company's _______ responsibilities, and Janelle's practice of filling out expense reports violates the company's _______ responsibilities.

philanthropic: ethical

Janelle manages a small pharmacy in Dallas, Texas. Recently, she started an initiative to help give low-income individuals steep discounts on expensive drugs. The company is losing some revenue by charging these discounts, but it has helped the pharmacy gain a reputation for corporate citizenship. Consumers can also donate money to help fund this initiative. Assume the government passes a new law that it will work with pharmacies to provide drug discounts to low-income consumers. In this case, the pharmacy's social responsibility initiative will go from fulfilling its _______ responsibility to fulfilling its _______ responsibility.

philanthropic: legal

lobbying involves which type of force in the marketing environment?

political

Which of the following marketing mix variables has Walmart generally emphasized in its marketing activities?

price Walmart tends to market itself for its low prices and uses the tagline, "Save Money. Live Better." Hence, the pricing variable is the marketing mix variable that Walmart has become known for.

An electrician who purchases light switches for installation in a client's new construction project is an example of a(n) _______ market.

producer

Lime is using social media to ask consumers about the qualities they desire in an electric scooter. The firm hopes to develop a new type of electric scooter based on the feedback it receives. Which marketing mix variable is Lime addressing?

product

Shirley is a salesperson at a pharmaceutical firm. She has been tasked with selling a new drug. One doctor looks like a great prospect. He is highly interested in trying out the drug and has requested some samples. However, he has asked Shirley to list any side effects of the product. Shirley knows that there is a very small chance that it could cause extreme muscle spasms in certain individuals. The chance for this is low, and even those that suffer from side effects will most likely not experience such severe reactions. Yet Shirley knows from her past experience with this doctor that he is incredibly picky and is not likely to agree to try out the medicine if he knows about this extreme side effect—no matter how unlikely it is to occur. Shirley therefore decides not to tell him. She describes other potential side effects, but she leaves this out. This is an example of what type of ethical issue?

promotion

Denise works as a direct seller for Rodan + Fields. She is determined to sell as many products to as many people as possible. Although she generally has a good relationship with customers, she has been known to be overly aggressive in trying to sell products. She often convinces consumers to purchase more expensive products even after they say they are not interested. As a result of Denise's high sales, she has become a top performer. Recently, however, Denise's sponsor has been informed of complaints that customers have levied against Denise accusing her of "badgering" them into buying products. The sponsor meets with Denise and tells her it is unacceptable to pressure consumers into purchasing items they do not want. Which variable of the marketing mix does this issue involve?

promotion The promotion variable relates to activities used to inform and persuade to create a desired response. In this case, Denise is overly pressuring consumers to purchase products through direct selling activities.

Frito Lay's website features information about products, recipes, nutritional values, and contests, but customers cannot actually purchase products from the website. The Frito Lay website is most likely used primarily as a _______ marketing tool.

promotional promotion variable relates to activities used to inform individuals or groups about the organization and its products

Marco has been shopping for a new automobile and has decided the make and model he wishes to buy and has arranged for financing. He is all ready to sign the contract and the car will be his. What stage in the consumer decision process is Marco?

purchasing

ACME Corp. managers view environmental forces as uncontrollable and thus adjust their marketing strategies to change in the marketing environment. This approach is best described as

reactive an organization that views environmental forces as uncontrollable remains passive and reactive toward the environment. Instead of trying to influence forces in the environment. Instead of trying to influence forces in the environment, its marketing managers adjust current marketing strategies to environmental changes

during what period in the business cycle are firms first likely to cut their marketing budgets?

recession

during which of the following economic conditions does unemployment begin to decline, total disposable income increases, and customer's willingness to buy begin to rise?

recovery

Sheryl works at Southwest Airlines as a digital marketer. A major part of her job is communicating with customers, answering questions and letting them know about how the airline offers them the best in customer value. Sheryl is working to create long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges with customers. This is an example of _______.

relationship marketing

_______ deepens the buyer's trust in the company, and as the customer's confidence grows, this, in turn, increases the firm's understanding of the customer's needs.

relationship marketing Relationship marketing refers to long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges. Relationship marketing continually deepens the buyer's trust in the company, and as the customer's confidence grows, this, in turn, increases the firm's understanding of the customer's needs.

Which consumer decision making style would be most likely for an individual who is purchasing his or her usual brand of shampoo?

routinized response behavior purchasing his or her typical brand of shampoo would be considered routinized response behavior

Charlotte loves her mom's edible cookie dough recipe, and she assumes everyone else will too. She starts a cookie dough business. Charlotte views promotion, such as advertising and personal selling, as the most important activities needed to sell her product. She figures that consumers only have to learn about her product before becoming loyal and steadfast customers. What type of orientation does Charlotte seem to embrace?

sale orientation

which of the following is true about social responsibility?

social responsibility improve marketing performance

customers choose to go to Buffalo Wild Wings based upon the value they place on the total product- including the food, service, atmosphere, of the restaurant, and more. The process consumers use to determine value is highly

subjective

Kroger decided to introduce a new product that appeals to Hispanic consumers. While the product is highly successful among Hispanic consumers, other ethnic groups seem to like the product as well. For this product, Hispanic consumers comprise Kroger's

target market

Internet privacy has become a major issue. In fact, in Europe there are privacy laws such as General Data Protection Regulation (GDPR) to regulate data protection and privacy. The United States does not have comparable laws to protect consumer privacy on the internet. Collecting this information is beneficial for firms because then they can tailor marketing messages that better fit its users' needs. These better marketing campaigns can provide them with a competitive advantage. Acme Corporation uses cookies and other devices to collect information. Its privacy policy explicitly informs users that it collects information. However, most people do not read through the policy. Lately, some consumers have complained because they are worried that their information could be compromised. They question the security of the site. Acme wants to restore confidence and prove that it has controls in place. What type of environmental force does this issue involve?

technological

at ACME Corp. managers are trying to foresee the effects of new products and processes on their firm's operations, on other business organizations, and on society in general. This is best described as

technological assessment with information obtained through a technology assessment, management tries to estimate whether benefits of adopting a specific technology outweigh costs to the firm and to society at large

an _________ is a procedure with which managers try to foresee the effects of new products and processes on their firm's operations, on other business organizations, and on society in general

technology assessment

which of the following regulatory agencies has the greatest influence over marketing activities?

the Federal Trade Commission most heavily influences marketing activities

when an ethical issue arises in the supply chain, which of the following is most likely to be held accountable for misconduct?

the channel member managing the product

what is the greatest determinant of ethical conduct in the organization?

the company's ethical culture

the growing demand for health-care services, recreation, tourism, retirement housing, and selected skin care products most closely relates to

the demographic characteristics of age the growth in the number of people aged 65 or more is increasing demand specific services

which of the following is the major source of cultural values?

the family

Shannon is driving in downtown Santa Fe. She is not very familiar with the area and is running late for her appointment. She heads to a nearby paid parking lot and is told that it costs $20 to park. Shannon is irritated by the price. Although there are likely other paid parking lots that are less expensive, Shannon pays the price to park there. Different cost considerations impacted Shannon's decision, but clearly one stood out over all the others. Which cost exerted the most influence over Shannon's decision to park in the $20 parking lot?

the non-monetary cost of time Shannon is forgoing the possibility of finding a cheaper lot because she is running late and is unfamiliar with the area. In this case, she places more value on the non-monetary cost of her time.

which of the following promises consumers fair treatment when they complain to marketers about products?

the right to be heard

which of the following is true about codes of ethics?

they should be updated periodically

Shirley is a salesperson at a pharmaceutical firm. She has been tasked with selling a new drug. One doctor looks like a great prospect. He is highly interested in trying out the drug and has requested some samples. However, he has asked Shirley to list any side effects of the product. Shirley knows that there is a very small chance that it could cause extreme muscle spasms in certain individuals. The chance for this is low, and even those that suffer from side effects will most likely not experience such severe reactions. Yet Shirley knows from her past experience with this doctor that he is incredibly picky and is not likely to agree to try out the medicine if he knows about this extreme side effect—no matter how unlikely it is to occur. Shirley therefore decides not to tell him. She describes other potential side effects, but she leaves this out. Assume that the Food and Drug Administration just discovered that this new drug is a lot riskier than first thought. Anyone who takes over a certain amount can suffer from potential heart problems. This has become a product issue.

true