Marketing - Ch 1-4

The equation a buyer applies to assess a product's value is

value = customer benefits − customer costs.

During which stage of the business cycle is unemployment low and total income relatively high?

Prosperity

If online communication is unfair and causes substantial injury that is not reasonably avoidable and is not outweighed by other benefits, then it is considered

deceptive

Which of the following about marketing is true?

Marketing knowledge enhances consumer awareness.

Data that are observed or collected directly from respondents are called

primary data.

To calculate return on marketing investment (ROMI) of its most recent marketing campaign, marketers at Hobby Lobby consider the following: revenues increased $118,500 and the marketing cost of the campaign was $39,500. What is the ROMI?

200%

The marketing concept is a philosophy that states that an organization should try to satisfy customers' needs and also

Achieve the organization's goals

MasterCard provides credit cards to individuals who use their cards for purchases of meals, gifts, travel services (e.g., transportation, hotel), fuel, and more. MasterCard makes extensive use of purchase information to aid in management and marketing decisions as well as in its marketing efforts to enhance the number of businesses that accept payment by the use of the MasterCard. MasterCard leverages its information about consumers by analyzing the charging history of credit card members, website traffic, and information gleaned through the use of "cookies" and monitoring of social media, such as Twitter, Facebook, Instagram, and Pinterest. MasterCard believes data provides significant insights. What type of information does MasterCard utilize?

Big data

Which of the following has given companies access to significant computing power at reduced costs?

Cloud-based analytics

When Coca-Cola initiated a telephone survey to determine the effectiveness of a recent advertising campaign, one of the questions the interviewer asked was, "Have you ever heard of a cola made with zero-calorie, plant-based stevia?" This is an example of which of the following kinds of questions?

Dichotomous

Of all the federal regulatory units, the ____ most heavily influences marketing activities.

Federal Trade Commission (FTC)

In Singapore, the price of imported Scotch is $30 per glass as opposed to Scotch from Singapore, which is $3. Which of the following do you think accounts for the difference in price?

Import tariff

Which of the following is a characteristic of a marketing objective?

It is consistent with both business-unit and corporate strategy.

Which of the following is the least flexible survey method?

Mail surveys

T-Mobile implemented a program of texting its current customers to find out what changes they would like to see in the services provided. The firm is exhibiting characteristics associated with which of the following orientations?

Market

What type of competitive structure exists when just a few sellers control a large portion of the supply of a product?

Oligopoly

For most firms, the costs of marketing activities consume approximately what portion of the consumer's dollar?

One-half

United Airlines introduced a new "basic economy" seat category to better compete with discount airlines like Southwest and Spirit. Which of the following aspects of the marketing mix is United likely altering?

Price

In general, which of the following competitive structures is an organization least likely to operate?

Pure competition

Schlotzky's wants to collect data about employee satisfaction within its organization. It decides to survey a sample of 500 employees by having a computer program automatically pick which employees will be in the sample. If it uses the payroll database as the list of names to choose from, which type of sampling method is Schlotzsky's using?

Random sampling

Which of the following statements about conducting marketing research internationally is false?

Specific differences among countries have no effect on data gathering or the marketing research process.

Which of the following is true about the marketing environment?

The effects of marketing environment forces can be difficult to predict.

Which of the following statements about marketing environment forces is NOT true?

They do not influence customers' reactions to a firm's marketing mix.

You are watching an episode of a new game show that tests contestants' knowledge by giving them phrases they must respond to with a question. The following marketing-related phrase comes up in the bonus round of the game: "It's an informed guess or assumption about a problem or set of circumstances. It is based on all the insight and knowledge available about the problem or circumstances from research studies and other sources." The contestant's response should be

What is a hypothesis?

If a marketing researcher is interested in observing group interaction during an informal, unstructured, and open-ended data collection process, he or she should use

a focus-group interview.

According to the text, a market is defined as

a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products.

A framework for gathering and managing information from sources both inside and outside an organization is referred to as

a marketing information system.

The focal point of all marketing activities is

customers

The primary value that a customer expects to receive from a marketer in an exchange relationship is

a reward or benefit greater than the costs incurred in the transaction.

A significant challenge for marketing researchers is finding

a sample that is representative of the desired population.

All companies have a responsibility to ____ so they can provide a return on investment to their owners and investors, create jobs for the community, and contribute goods and services to the economy.

be profitable

Tom's of Maine's natural toothpaste is highly popular but is unlikely to experience much more market growth. As a result, Tom's of Maine is examining other forms of toothpaste with high potential for growth. However, because its natural toothpaste remains so profitable, it can use these profits to invest in newer toothpastes. Tom's of Maine's natural toothpaste is an example of a ______________.

cash cow

For the Christmas season, a major toy retailer decided to donate to Angel Tree, an organization that provides gifts to the families of those who are incarcerated. The retailer claimed that it would donate 10% of the proceeds of all toys sold in the month of December to the Angel Tree organization. This is an example of

cause-related marketing.

A ____ is created when a company matches its core competency to opportunities it has discovered in the marketplace.

competitive advantage

According to President Kennedy's consumer bill of rights, the right to choose means that

consumers should have access to a variety of products and services at competitive prices.

The public is becoming more aware of how marketers' activities affect the welfare of consumers and society. As a result, more firms are working to

create a responsible approach to developing long-term relationships with customers and society.

Marketing is the process of

creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment.

Long-term relationships with profitable customers is the key objective of

customer relationship management.

Miranda runs a popular blog followed by many working moms and dads. As her blog's following runs into the tens of thousands, she has been approached by several companies to promote their products in exchange for free products or a small commission whenever a reader's click on the product link results in an online sale. Miranda has not disclosed these agreements because the amount of money she's earned has been quite small and she's worried that her blog will lose credibility with her readers. She should be more worried that the Federal Trade Commission views her omission as

deceptive advertising.

Google introduced Google Home, a smart speaker/home automation device. For Google, Google Home represents a strategy of

diversification.

Collecting information from secondary sources such as business, government, trade, and general-interest publications plays an important role in

environmental scanning.

One way that Kia evaluates its product and service level is by how well it ranks on the J. D. Power & Associates Sales Satisfaction Survey. In doing so, Kia is

evaluating actual performance.

A marketing plan document usually begins with a(n)

executive summary.

If Little Caesars wants to determine the impact of different coupon offers on pizza unit sales, it needs to conduct

experimental research.

Research that allows marketers to make causal inferences about relationships is called

experimental research.

A market orientation is an organization-wide effort that includes all of the following activities except

focusing just on the marketing department.

If Kyrgyzstan levied a duty on all goods purchased from the United States and other countries outside its borders that were brought into Kyrgyzstan, its businesses and citizens would be paying a(n)

import tariff.

Firms frequently use dollar volume in their sales analyses because the dollar

is a common denominator of sales, costs, and profits.

Marketers may legally engage in ______ to persuade public and/or government officials to favor a particular position.

lobbying

A group that has the willingness, ability, and authority to buy a product is a

market.

Sara Lee introduced a new bread made with light whole wheat and packaged in smaller loaves as a response to the number of health-conscious customers who live alone. In this case, Sara Lee was most likely following the ________.

marketing concept

Performance standards are derived from _____________ that were set while developing the marketing strategy.

marketing objectives

To be effective, employee rewards should also be tied to

organizational goals.

Institutional markets are

organizations that seek nonbusiness goals.

A business that contributes resources to the community to improve the quality of life is taking on a(n) ____ responsibility.

philanthropic

Marketing channels create four types of utility for consumers including

place, time, possession, and form.

The forces of the marketing environment include

political, legal and regulatory, sociocultural, technological, economic, and competitive.

Gabrielle Jackson is running for Congress from the Fifth District in her state. She is interested in knowing the intended choices of the voters. All the registered voters in her district would constitute the study's

population

The element of the marketing mix used to increase awareness of a product or company is

promotion.

Assuming that inflation is low, high buying power characterizes the ____ stage of the business cycle.

prosperity

When researchers divide the population of interest in a study into groups and then arbitrarily choose participants from each group, they are using

quota sampling.

If India, in an attempt to bolster the sales of its own auto manufacturers, decided to limit the number of automobiles that could be brought in from other countries, India would be using a(n)

quota.

With regard to technology, ____ refers to the broad nature of technology as it moves through society.

reach

Marketers who view political forces as being beyond their control are taking a(n) ____ response toward these forces.

reactive

Pointing out any deficiencies and the possible reasons for them should be done in the ____ step of the marketing research process.

reporting research findings

An overall plan for obtaining the information needed to address a research problem or issue is called the

research design.

Product testing for reliability and quality helps to ensure a consumer's right to

safety.

The three basic forms that a product can take are

services, ideas, and goods.

An analysis of ____ examines internal factors that give the organization certain advantages and disadvantages in meeting the needs of its target markets.

strengths and weaknesses

Just Crack an Egg is aimed at people concerned with on-the-go lifestyles. These people represent the Just Crack an Egg

target market.

A first-mover advantage is

the ability of an innovative company to achieve long-term competitive advantages by being the first to offer a certain product in the marketplace.

The growing use of two-day and next-day delivery by online companies best relates to

the distribution variable of the marketing mix.

The major disadvantage of a mail survey versus a telephone or personal survey is

the failure of respondents to return the questionnaire.

The primary value that a marketer expects to receive from a customer in an exchange relationship is

the price charged for the product.

Marketing research is best defined as

the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities.

All of the following are steps in the marketing research process except

understanding your customer.

One company markets such diverse products as Old El Paso Mexican foods, Yoplait yogurt products, and Blue Buffalo pet foods. These various offerings exhibit this firm's product mix

width.

The most basic principles of marketing ethics are _____________ to encourage marketers to conform to society's expectations for conduct.

written as laws and regulations