MKTG 350 exam #1

what four conditions must take place in order for an exchange to take place

1. two or more individuals, groups, or organizations must participate, and each must possess something of value that the other party desires 2. the exchange should provide a benefit or satisfaction to both parties involved in the transaction 3.each party must have confidence in the promise of the "something of value" held by the other 4. to build trust, the parties to the exchange must meet expectations.

The following passage is an often-expressed critique of one of the two types of decision-making structures: Another disadvantage of this structure is that the organization may become fragmented. Business units may lose their sense of team spirit and cooperation. Some business units may put their own interests ahead of those of the company as a whole. Innovative ideas that once spread through the company quickly may now remain within individual business units. Which one of the following decision-making structures is this critique referring?

Decentralized organizational structure

In order to achieve marketing objectives, marketing managers must evaluate the effectiveness of their marketing strategy by engaging in strategic performance evaluation. What is the first step in the strategic performance evaluation process?

Establish performance standards

Information Resources Inc. (IRI) tracks retail sales and other information and sells the information to companies on a subscription basis. This is an example of _______ data.

External secondary

When conducting marketing research in another country, researchers should begin the first phase by using focus groups and other survey methods to refine their understanding of customer needs and preferences.

False

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

the minister for a local church affiliated with the United Methodist Church is most likely considered to be marketing _______.

Ideas

The Four Seasons Spa and Salon has retained a marketing consultant to assist them with its annual strategic planning retreat. Shantelle Stevens, owner of the salon is reviewing the agenda for the meeting and observes that the sequence of activities follows the strategic planning process discussed in her marketing class many years ago. What is the first activity that organizations should pursue as part of its strategic planning process?

Review or establish the organization's mission and goals

CertainTeed Corporation, a manufacturer of building materials had an excess inventory of roofing materials such as shingles. In response to the excess inventory, CertainTeed increased its advertising budget by 20% and hired two additional sales representatives to further penetrate the roofing and building materials marketplace. Based upon CertainTeed's response to its excess inventory, which business orientation are they most likely implementing?

Sales orientation

Carson is a marketing research intern for a consumer products company and has been asked to obtain information about consumer needs and perceptions of products that are labeled as "green." Carson must make a presentation about consumer trends and perceptions in one week and has a limited amount of time to spend on the project. What type of data would be most appropriate for Carson to use for the report and presentation?

Secondary

Which of the following best characterizes the forces of the marketing environment: o The forces change dramatically and quickly, and a change in one force is likely to affect the other forces. ;marketing environment forces can fluctuate quickly and dramatically, and because these forces are closely interrelated, changes in one may cause changes in others o The various forces ensure that the marketing environment will remain fairly certain in the future. o There are few overlapping aspects of these forces; therefore, a change in one is unlikely to result in a change in another. o The forces are relatively stable over time and are interrelated with one another.

The forces change dramatically and quickly, and a change in one force is likely to affect the other forces. ;marketing environment forces can fluctuate quickly and dramatically, and because these forces are closely interrelated, changes in one may cause changes in others

The purchasing manager of a large fast-food chain is considering making changes to the packaging utilized for the sandwiches and burgers. The company has utilized light cardboard containers, which are made from paper pulp milled from trees and are considering switching to a product that's more expensive since it's made with 100% renewable sugarcane paperboard. The fast-food chain has embraced the practice of sustainability and is encouraging all managers to make decisions that result in reducing waste and enhancing the environment. Which of the following considerations would be most important for the purchasing manager in making a decision about switching products?

The purchasing manager should determine whether consumers are willing to pay more for sustainable packaging

Which type of competition is considered the most significant to firms and the type that receives the most study and analysis with regard to environmental scanning?

brand

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

Traditional organizations are most likely to utilize a(n) _______ organizational structure where top-level managers make all decisions regarding marketing strategy and lower-level managers have little decision-making capability.

centralized

Standard Chemical Company manufactures specialty chemicals that are utilized by companies, such as Procter & Gamble in the production of its soaps, lotions, and shampoos. Standard Chemical recently conducted a customer satisfaction survey among its business customers in the consumer products market and noted that the satisfaction ratings are lower than last year's ratings. As part of the survey, participants were given the opportunity to make recommendations regarding how Standard Chemical could improve and a large number of customers noted that the sales representatives took a long time to respond to customer questions, did not seem empowered to make decisions, and were required to obtain approval from top management. If Standard Chemical Company wants to improve its ability to serve customers and achieve higher levels of customer satisfaction, they should move from a(n) _______ organization structure to a(n) _______ organization structure.

centralized; decentralized

Over the last several years, merger and acquisition activity has increased, and, in some industries, the big companies have become even bigger. For example, in the airline industry, four major mergers have occurred—Delta-Northwest, United-Continental, Southwest-AirTran, and American-U.S. Airways—since 2005, which has drastically reduced competition. This phenomenon could violate a consumer's right to ______

choose

Formalized rules and standards that describe what the company expects of its employees are known as ______

codes of conduct

Market penetration is a type of _______.

competitive growth strategy

Jersey Mike's is considering adding a new sandwich option to its menu. The company has been conducting a variety of research studies to evaluate consumers' perceptions of several new sandwiches and the director of product development is very excited about the prospects of several new menu items. However, the CEO has asked the director to conduct one last round of market research that will provide greater confidence about the success of the new menu items if they're offered in the restaurants. What type of research should be conducted to provide a high degree of confidence about the new menu items?

conclusive research

Individual factors, organizational relationships, and opportunity interact to determine ethical decisions in marketing. Which of the following best describes opportunity?

conditions that limit barriers or provide rewards

Ethical standards for a company should ______

conform to industry and societal norms of ethical conduct

Marketing citizenship requires the adoption of a strategic focus to fulfill a variety of responsibilities to stakeholder groups. Which of the following is NOT one of the dimensions or responsibilities of firms implementing a marketing citizenship approach?

consumerism

In a classroom discussion, Jacob agrees with Marcie that consumers generally want biodegradable beverage cups. However, he says that to balance society demands, businesses in that industry must evaluate whether _____

consumers are willing to pay higher prices for them

The Classic Hotel Group has begun to offer entire floors of rooms in its hotels that are smoke-free, adults-only, and pet-friendly. The Classic Hotel Group is responding to changes in ______

cultural values

A form of question that gives respondents two options—either "yes" or "no"—is called a _______ question.

dichotomous

You are starting a new job next week at a consumer products company in Redmond, Washington. You will be responsible for managing the company's inventory levels, as well as the related transportation and storage costs. You will rely heavily on some previously established relationships as you refine the firm's interactions with its various intermediaries. Your job responsibilities primarily relate to which of the following marketing mix variables

distribution, because it involves making products available at the right time and in appropriate locations

The Whole Foods Market began in 1980 with one store in Austin, Texas, and now maintains more than 480 stores across North America and the United Kingdom. According to its website, Whole Foods Market is America's Healthiest Grocery Store™ and "seeks out the finest natural and organic foods available, maintains the strictest quality standards in the industry, and has an unshakeable commitment to sustainable agriculture." However, the Whole Foods chain has been implicated in several high-profile cases involving price gouging. In 2014 Whole Foods paid an $800,000 fine in California after Santa Monica, Los Angeles, and San Diego brought a civil protection case against the chain, accusing it of overcharging customers. In 2015 the New York Department of Consumer Affairs accused Whole Foods of overcharging its customers by overstating the weight of some prepackaged products. For example, consumers buying vegetable platters priced at $20 each were overcharged an average of $2.50. In another example, eight packages of chicken tenders priced at $9.99 a pound on average cost $4.13 more than they should have. According to a report published in the New York Times, the Department of Consumer Affairs said the fine in New York for falsely labeling a package was as much as $950 for the first violation and up to $1,700 for a subsequent violation. In response to these allegations, CEO John Mackey and former co-CEO Walter Robb issued a video apology and stated they made mistakes and want to show their responsibility for these mistakes. In addition, they mentioned that they would employ a third-party auditing system to ensure they are making progress in correctly pricing products and encouraged customers to ask a store employee to check pricing and if a mistake is made, the consumer could receive the item free of charge. Refer to Scenario 3.2. Whole Foods Market mission to be America's Healthiest Grocery Store and provide the finest natural and organic foods available is an attempt by the company to ______

engage in self-regulatory actions

Tamika Smith is a marketing research analyst for Walgreens based in Chicago, Illinois, and part of her job is to gather and analyze information about the product and pricing strategies of competing companies like CVS and Target as well as monitor trends regarding which products might be popular in different areas of the United States or particular neighborhoods within a state. What type of activity is Tamika engaged in for her job as a research analyst?

enviromental scanning

Information Resources Inc. (IRI) tracks retail sales and other information and sells the information to companies on a subscription basis. This is an example of _______ data.

external secondary

For an exchange situation to arise, only one condition must exist: two or more individuals, groups, or organizations must each possess something that they value and are willing to give up receiving "something of value" held by the other individuals, groups, or organizations. true or false

false

Strategic philanthropy involves linking a firm's products to a particular social cause on a short-term basis.

false

When conducting marketing research in another country, researchers should begin the first phase by using focus groups and other survey methods to refine their understanding of customer needs and preferences.

false, Experts recommend a two-pronged approach to international marketing research.

A product-related ethical issue ______

generally occurs when marketers fail to disclose risks associated with a product or information regarding the function, value, or use

A _______ is defined as an informed guess or assumption about a certain problem or set of circumstances.

hypothesis

Many midwestern states such as Missouri, Illinois, Iowa, and Michigan have been encouraging agricultural investments to grow grapes for wine and developing wine as a tourism attraction. However, once the wineries are established, they are interested in seeking markets for their products and gaining distribution by navigating the complex state and federal maze of requirements and restrictions, which are part of the alcohol industry. Which environmental force would most impact these wineries as they strive for distribution and adhere to these requirements and restrictions?

legal and regulatory

Keith Cole is a professional photographer known for stunning landscapes from the world's most beautiful places. He enters his photography in juried art fairs and then exhibits his work to patrons who visit the art fair. He accepts cash and credit cards and really enjoys the freedom to utilize Square, which is a mobile payment product that attaches to his smartphone. Square developed its product specifically for small businesses like Keith's, so they could more easily accept credit payments in multiple locations using their smartphone. Square's ability to launch its product to the small business customer like photographer, Keith Cole, is an example of

market opportunity.

_______ exist/s when a firm with many potential competitors attempts to develop a marketing strategy to differentiate its product.

monopolistic competition

local restaurant is trying to determine whether it would be beneficial for them to open early and serve breakfast. It hires a marketing research company which proposes that it has individuals who visit various restaurants in the area who currently offer breakfast and record various information, such as number of people in their group, what each individual orders, how long they stay, whether they dine-in or order from the drive-thru, and whether or not they are using a wireless hotspot. The interviewers will not interact with the study participants and will be posing as customers themselves so as not to bias the research. What type of research method is proposed?

observation

The BASF Company sent its chemical customers an invitation to an online survey via email. The final question of the survey asked, "Please provide one suggestion to help us better serve your needs." This is an example of a(n) _______ question.

open-ended

Markets that are characterized as _______ competition include a large number of sellers, none of which significantly influence price or supply and provide homogeneous products.

pure

Consumers living in the Midwest who wish to watch current television series, sports, and movies can subscribe to satellite TV services, such as Dish or DirecTV or purchase cable service from Xfinity. Since the television service industry is dominated by these firms, the competitive structure is known as a(n) ______

pure competition

Which legislative action prohibits price discrimination that reduces competition among wholesalers or retailers and prohibits producers from giving disproportional services or facilities to large buyers?

robinson-patman act

The Peoria Riverfront Museum opened in 2012 and has struggled to attract patrons to visit the museum. Projected visitors during the planning stages were anticipated to be 1,000 per month but the actual visitors during the first year fell quite short at only 750 per month with an average of 780 across the year. Today, however, the museum is enjoying a stellar year with daily attendance averaging 35 to 50 visitors and monthly totals of 1,050 to 1,500. The number of visitors is directly related to the revenue the museum earns due to ticket prices. Adults pay $11 for admission and youths under 17 pay $9. In 2012, the museum reported revenues of $8,880 but they are on pace to earn almost twice as much for the current year. What type of analysis can the Peoria Riverfront Museum perform utilizing the data related to number of visitors and revenue?`

sales analysis

Marketing managers at Consolidated Equipment Corporation are involved in establishing marketing performance standards, evaluating performance, and reducing the differences between actual and desired performance. These marketing managers are engaged in ______

strategic performance evaluation

A recent Council of Supply Chain Management Professionals meeting featured an executive from Caterpillar, largely considered the world's leading manufacturer of construction and mining equipment. The executive discussed the capabilities of the firm regarding tracking the carriers or transportation vendors who facilitate the movement of parts needed for manufacturing as well as finished goods. The company utilizes a solution from GT Nexus which provides end-to-end visibility of its carriers across different shipping modes including air transportation, ocean, inland waterways, and over-the-road trucking. The GT Nexus technology solution tracks on-time performance of the carriers within each shipping mode and assists Caterpillar in determining the cost-effectiveness of specific carrier vendors as well as shipping modes. Caterpillar utilizes the information to assist them in its decision-making as to when to utilize different modes of transportation (e.g., air freight versus ocean) as well as decisions within a mode (e.g., one-day air versus two- or three-day air). In addition, Caterpillar engages in customer analysis research to determine consumers' sensitivity to price as well as the importance of timely delivery. Additional insight regarding customer needs aids Caterpillar in its judgments about pricing and delivery schedules for parts and equipment. Caterpillar's investment in the technology solution as well as customer insights has helped the company achieve its revenue and profitability goals. Refer to Scenario 1.2. Which environmental factor did Caterpillar leverage to implement a solution to track shippers and study the on-time delivery rates for each transportation vendor?

technological

Marketing is

the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment

McDonalds recently recognized the buying power of the Hispanic market near their Houston locations. Which one of the following efforts demonstrates how the restaurant is appealing to the Hispanic market?

the use of beloved hispanic character, el chapulin colorado in teaser videos posted on mcdonalds facebook and instagram

Marketing research has shifted its focus toward smaller studies such as test marketing, small-scale surveys, and short-range forecasting in order to learn about changing dynamics in the marketplace.

true

The managers of a local grocery store are trying to understand consumers' purchasing habits with regard to fresh produce. They conducted a study and determined that consumers desired fresh, local, and organic produce because they valued improved taste and wanted to consume products that were free of harmful pesticides, which might cause cancer. Based on the results of the research, the store began offering a greater selection of organic and locally sourced produce; however, sales of the organic produce did not match the store managers' expectations. Therefore, it's likely the research has a problem with _______.

validity

You are meeting to discuss the proper categorization of marketing strategy costs in the monthly department budget performance report. You are especially interested in making sure the fixed and variable costs are properly categorized. The major costs associated with the marketing strategy are as follows: Salesperson commissions Office space rent Office equipment rental Product raw materials Product manufacturing labor With respect to the variable or fixed nature of these costs, _______

we know that salesperson commissions, product raw materials, and product manufacturing labor costs are all variable costs