Marketing Unit 1

When a tee shirt manufacturer states, "We only sell it in black because that way we can buy plenty of black fabric and run our plant efficiently," their statement reflects the views that were popular in which era of the evolution of marketing? A. Production-oriented B. Sales-oriented C. Market-oriented D. Value-based marketing E. Economic-oriented

A This question refers to the Production Era which is when companies would just manufacture items without taking individuals' needs or wants into consideration.

Marketing efforts designed to get the product or service to the right customer, when that customer wants it, are called A. supply chain management. B. a transactional orientation. C. wholesaling. D. value cocreation. E. endless chain marketing.

A The question describes the Place component of the marketing mix, which involves managing the supply chain.

After hurricanes like Katrina, many small building contractors will flock to the damaged area charging whatever customers will pay for temporary repairs to roofs and other parts of damaged homes. These contractors are engaged in a ___________ marketing orientation . A. transactional B. external C. relational D. internal E. value driven

A This behavior demonstrates a transactional orientation, where the seller seeks to make a quick profit and is not concerned about long-term relationships.

To become a more value-driven organization, Pokrah University is holding regular coffee-hour discussions with its students and is surveying its graduates regarding students' educational needs and desires. Pokrah University is becoming more value driven through A. sharing information across the organization. B. balancing its customers' benefits and costs. C. evaluating strategic competitive partnerships. D. building relationships with customers. E. keeping the faculty members happy.

D By communicating regularly with students and alumni, Pokrah University is working to build closer relationships with these groups.

The traditional marketing channel through which consumers most often find and purchase goods and services is known as A. B2B. B. C2C. C. D2C. D. C2D. E. B2C.

E B2C, or business-to-consumer marketing, is the channel through which most consumers' purchases happen.

Four Winds Art Gallery recently began offering appraisals of customers' art collections, in addition to continuing to sell paintings. Four Winds is A. expanding from offering just services to also offering goods. B. implementing a market segmentation strategy. C. capturing value through multiple pricing strategies. D. expanding from offering just goods to also offering services. E. increasing customer value through inflated appraisal evaluations.

D The paintings are goods; appraisals are services.

A relational orientation is based on the philosophy that buyers and sellers develop A. a complete understanding of each other's needs. B. a long-term relationship C. a price-value comparison matrix. D. supply chain synergy. E. a marketing value transaction focus.

B A relational orientation expects a relationship to develop over the long term.

Value-based marketing depends on: A. knowing what the customer perceives as the key benefits of a product or service. B. balancing customer benefits with reasonable costs. C. knowing what benefits customers would do without to keep prices down. D. looking at quality from the customer's perspective. E. All of these.

E Value-based marketing requires a sophisticated understanding of consumers' perceptions of value.

Many firms with complex products have "missionary" salespeople who assist customers with problems and implementation programs. These salespeople rarely sell products but often become involved in and knowledgeable about specific customers' needs and wants. These salespeople focus on a(n) __________ orientation with their customers. A. transactional B. external C. relational D. internal E. divisional

C A relational orientation refers to the building of relationships and the development of a better understanding of customers' needs and wants.

During the __________ era manufacturers and retailers began to focus on what consumers wanted and needed before they designed, made, or attempted to sell their products. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

C The marketing era was when most companies first started thinking in terms of meeting customer needs.

Many U.S. companies first discovered marketing during the __________ era. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

C The marketing era was when most companies first started thinking in terms of meeting customer needs.

Valerie's firm researched what its employees wanted from their jobs. It then communicated a brand image for the firm and worked to ensure that the employees' experiences matched what was advertised. The firm is using: A. human resources marketing. B. employee relations mediation. C. human factors analysis. D. employment marketing. E. human asset branding.

D Employment marketing is the application of marketing techniques to improve employee recruitment and retention.

Your roommate, a non-business major, sees you reading your marketing text. He or she asks, "Why is marketing important?" You respond by saying all of the following EXCEPT A. Marketers advise production on how much product to make. B. Marketers tell the logistics department when to ship products. C. Marketers engage customers and develop long-term relationships. D. Marketers identify opportunities to expand. E. Marketers are the most important profit center in any organization.

E Marketing is usually not a profit center (although sales, which is one marketing function, is often a profit center).

Supply chain management involves integrating the efforts of: A. suppliers. B. manufacturers. C. warehouses. D. stores. E. All of these.

E Supply chain management involves integrating the efforts of all firms involved in getting the product to the customer, from suppliers of raw materials to stores in which customers purchase the finished product.

The fundamental goal of marketers when creating goods, services, or combinations of both, is to: A. defeat the competition. B. serve all consumers. C. operate according to government regulations. D. stimulate short-term sales. E. create value.

E While some of the other answers are things that marketers and their firms have to consider, the fundamental purpose of marketing activities is to create value for consumers.

Coca-Cola sells two different zero-calorie versions of Coke: Diet Coke and Coke Zero. It has chosen to attempt to appeal to men with Coke Zero. In addition to launching an ad campaign featuring men enjoying Coke Zero, Coca-Cola also designed a "masculine" looking can for Coke Zero, with bold red lettering on a black background. This specially-designed can is an example of: A. positioning. B. targeting. C. segmentation. D. a market segment. E. market penetration.

A

Compared to other groups, the _______________ generational cohort is more likely to complain, need special attention, and take time browsing before making a purchase decision. A. Seniors B. Baby Boom C. Generation W D. Generation X E. Generation Y

A

For marketers, media-sharing sites such as YouTube or Flickr are social media tools BEST used to A. provide visual experiences and engage with customers. B. stimulate excitement. C. develop customer education and engage with others users. D. develop customer education. E. energize customers and stimulate excitement.

A

From a marketing perspective, what separates __________ from the generation before them is that they are individualistic, value leisure time as a high priority, and are trying to maintain their youth. A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z

A

Hillary always looks for the "Made in U.S.A" label, prefers easily recognized brand names but not always designer labels, and wants value, quality, and classic styles. Hillary is most likely to be part of the ________ generational cohort. A. Seniors B. Baby Boom C. Generation W D. Generation X E. Generation Y

A

How might a technology company like Apple ensure that it behaves in a socially responsible way towards its customers? A. By protecting the privacy of personal information collected on its website. B. By adhering to government-mandated safety standards in its stores. C. By ensuring that it pays its employees fairly. D. By ensuring that its packaging materials are recyclable. E. Social responsibility isn't relevant where customers are concerned; it has to do with serving society as a whole.

A

If Melissa decides to sell the best ice cream on earth, and intends to establish a strong ethical climate in her organization, during which phase of the strategic marketing planning process should she introduce ethical considerations? A. Planning B. Implementation C. Control D. Experience E. Ethics

A

Jeff is going to sell sporting apparel, which he has already purchased from manufacturers, and has signed a deal agreeing to the volume he would sell monthly. He has researched his competition and talked to some customers and has decided on prices he will charge. Jeff has also developed a plan for promoting his business. Based on this description, which element of the marketing mix does Jeff still need to work on? A. Place B. Product C. Price D. Promotion E. Planning

A

Lauren decides to use Twitter to market her hand-painted scarves to other women on her campus. She sets up a Twitter account with the name @uniquedesignsbylauren, and posts this on her Facebook page, making sure to tweet every few days. Soon Lauren is selling a lot of scarves. Lauren's Twitter account is an example of A. microblogging. B. media-sharing. C. thought sharing. D. professional networking. E. social bookmarking.

A

Many American consumers are purchasing hybrid automobiles even though they are more expensive and sometimes less fuel efficient when compared to compact conventional autos. These consumers A. value contributing to a greener environment. B. are economically irrational. C. are responding to global corporate pressure for social responsibility. D. would prefer an SUV. E. all of these.

A

Marcus does not make any impulse purchases and tends to purchase high-quality items from brands known for providing quality products. Marcus has plenty of time to research and identify the best product to buy. Which generational cohort does Marcus belongs to? A. Seniors B. Baby Boomers C. Generation Y D. Generation X E. Tweens

A

Marketers should not assume that they can target all Asian consumers in the United States with one strategy because A. they speak different languages and come from different cultures. B. Asians do not respond to marketing efforts. C. there are not enough Asians in the United States to effectively target. D. each major city tends to have only one group of Asians in large numbers. E. one strategy is likely to be more expensive than multiple strategies.

A

One important measure of social media's effectiveness is the percentage of site visitors who take the action the site owner hoped for—making a purchase, subscribing to a service, or donating money, for example. This measure is called the site's A. conversion rate. B. extended network. C. bounce rate. D. hits. E. click paths.

A

Southwest Airlines operates a blog called "Nuts About Southwest." A group of employees share the responsibility for posting items of potential interest to customers—for example, short videos about Southwest's travel destinations, articles (with photos) about special events, and news about airline promotions. "Nuts About Southwest" is an example of a A. corporate blog. B. network blog. C. personal blog. D. professional blog. E. social blog.

A

The process of value __________, in which customers collaborate in product design, often provides additional value to the firm's customers. A. cocreation B. positioning C. delivery D. chain management E. based marketing

A Value cocreation is a process in which customers and the firm work together to customize products. Since the products typically meet more of the customer's needs, this can provide additional value.

A recent advance in technology called RFID makes it easier for manufacturers, distributors, and retailers to track items through production, distribution, and sales. This advance helps the firm to A. increase value to the consumer through media effectiveness promotion. B. tailor their marketing messages. C. meet inventory needs. D. communicate with consumers on social media sites. E. replace services with products.

C

According to the text, which of the following has the highest Klout score? A. iPad mini B. Ashton Kutcher C. President Barack Obama D. True Blood E. Justin Bieber

C

Anupam's company manufactures industrial ladders. He is concerned that consumers who do not understand ladder safety will purchase these extra-tall ladders and injure themselves. During which phase of the strategic marketing planning process should this issue be addressed? A. Control B. Planning C. Implementation D. Design E. Ethics

C

Astute marketers recognize that the increasing disparity of income between upper- and lower-income groups A. will create inflationary expectations. B. will disappear as ethnicity becomes a stronger cultural determinant. C. creates opportunities to provide value to each group. D. will vanish once the recession ends. E. is attributable to technological expertise of immigrant groups.

C

Baby Boomers popularized personal fitness equipment, but as they age, they are becoming interested in products that address other areas of concern. Which of the following is NOT one of these potential interests? A. Computer programs that claim to rejuvenate the mind through problem-solving exercise. B. Financial innovations that address the failure to save enough money to last through retirement. C. New music that is far less energetic than rock & roll. D. Wellness services. E. All of these are interests of Baby Boomers.

C

Compared to consumers in the United States, Europeans are A. less ethnically diverse. B. a considerably older population. C. more green-consumer conscious. D. less sensitive to environmental concerns. E. more demanding of just-in-time material delivery systems.

C

Compared to the average company, firms with strong ethical climates tend to A. employ more business development consultants. B. offer more goods and services. C. be more socially responsible. D. invest more in sales training software. E. have higher turnover.

C

Darren has developed a better type of medication vial for travelers. He is not sure how to develop a marketing program for his product, as there are a few similar ones on the market. What technique can Darren use to analyze data from his competitor's websites, particularly to learn how people search for similar products online? A. click path data B. sentiment analysis C. social influence D. keyword analysis E. budget analysis

D

Excluding computers, which of the following methods is used by more consumers to access social media? A. e-readers B. iPads C. iPods D. mobile phones E. GPS units

D

Generation X is is known for which of the following characteristics? A. The most globally connected generation. B. The biggest cohort since the original postwar World War II boom. C. Consider marriage secondary, and not obviously necessary, to being good parents themselves. D. The first generation of latchkey children. E. Have an obsession with maintaining their youth.

D

By offering environmentally responsible products, green marketers: A. undercut prices of non-environmentally responsible marketers. B. keep costs much lower than those of competitors. C. make consumers feel guilty for buying other products. D. add value that other products do not have. E. all of these

D Environmentally responsible products have additional value for consumers to whom protecting the environment is important.

In 2006, Ford Motor Company announced it would severely cut back automobile production. For parts companies supplying Ford Motor, this represented a(n): A. weakness. B. opportunity. C. strength. D. threat. E. strategic plan.

D For parts companies, Ford's actions represent external factors. A possible cutback in orders is a negative factor. An external negative factor is a threat.

Excellence in human resource management is an element of which of the macro strategies? A. Customer excellence B. Employer excellence C. Locational excellence D. Operational excellence E. Product excellence

D Strength in human resource management (i.e., maintaining good relationships with employees) usually leads to a more committed, more productive work force, thus improving efficiency.

Roddy walks away from salespeople who give him the "hard sell." He rarely watches television and spends more time on the Internet. Roddy is most likely to be a member of the ___________________ generational cohort. A. Senior B. Baby Boomer C. Generation W D. Generation X E. Generation Y

E

Subway is a large chain of franchise sandwich shops. Marcia owns three Subway stores in a large city. At the end of the year, she notes that sales rose from two to five percent over last year's sales at Stores 1 and 2, but fell two percent at Store 3. Based on this information, how should Marcia reward (or punish) her store managers? A. She should give bonuses to the managers of Stores 1 and 2, and put the Store 3 manager on probation. B. She should ignore the sales data; this is not an appropriate marketing metric. C. She should give each manager a raise, tied to the store results. D. She should review at least ten years of sales data about her stores' performance before making a decision. E. She should seek more information about why the stores had different results before making a decision.

E

A(n)__________ is the trade of things of value between the buyer and the seller so that each is better off as a result. A. exchange B. market segment C. promotional plan D. transactional orientation E. relational orientation

A

Christy, who was born in 1955, advocated for "casual Friday" at her workplace. Christy is a member of which generational cohort? A. Baby Boomer B. Gen X C. Gen Y D. Gen Z E. Millennials

A

Dan has a marketing degree, and has experience as a call center operator. He takes a position in which he responds to customer complaints, customer emails and other postings. Dan's position can be described as a(n) A. online customer service representative. B. social media strategist. C. community manager. D. blogger. E. search engine marketing associate.

A

Facebook is the only social networking site Jana uses. She spends about half an hour a day there staying in touch with her children, her grandchildren, and several friends she has known since high school. What segment of social networking users does Jana belong to? A. Bonders B. Creators C. Listeners D. Professionals E. Sharers

A

Gene's Complete Cameras offers its customers an interactive website to help them choose the best camera for their lifestyle. But the site's most-used feature is its user blog in which customers—both satisfied and unsatisfied—talk about products they have purchased and the service received at Gene's. The user blog best describes which of the 4E frameworks for the store's customers? A. Engage B. Energize C. Excite D. Experience E. Educate

A

If a radio station holds an online contest in which you must log in to their website and submit personal details such as name, phone number, and email in order to participate, the radio station is A. offering an exchange. B. behaving unethically. C. hoping to receive feedback. D. implementing a CRM program. E. none of these.

A

Internet sites, physical stores, and kiosks are most closely associated with which element of the marketing mix? A. Place B. Price C. Product D. Promotion E. Proximity

A

Laws that prohibit the formation of monopolies or alliances that would damage a competitive marketplace benefit consumers through A. increased choices. B. higher prices. C. protection from false advertising. D. fair debt collection practices. E. all of these

A

The primary purpose of the __________ plan is to specify the marketing activities for a specific time. A. marketing B. business C. strategic D. organizational E. resource

A

Though Asian Americans comprise only 3 percent of the U.S. population, they represent A. the fastest growing minority population. B. the easiest minority group to access. C. a large proportion of the minorities in the Midwest. D. a uniform group of consumers with a common language and cultural background. E. all of these

A

Traditionally, marketing activities have been divided into product, price, place, and promotion. Select the term that best describes the four Ps. A. Marketing mix B. Marketing channel C. Marketing plan D. Marketing era E. Marketing implementation

A

When an accounting firm provides an online training module showcasing real-life decision lapses and their negative effect on the company, it is trying to encourage what type of behavior from its employees? A. ethical B. strategic C. formal D. casual E. secretive

A

When measuring social media effectiveness, we observe that some people's posts and other content get a higher-than-average amount of attention from the people in their network. These people are said to have a higher degree of A. influence. B. extended network presence. C. social reach. D. target audience impact. E. information flow.

A

If you are involved in a buying or selling situation in which you do not expect to do business with the other party again, you are engaged in a A. transaction. B. negotiation. C. relationship. D. C2C channel. E. marketing mix.

A A one-time purchase between buyer and seller is a transaction, as opposed to a relationship in which a continual stream of transactions is expected.

Fernando was thrilled to find out that his company had just decided to invest a great deal of money in the product he was managing. He knows that even with its recent high rate of growth and the fact that it dominates its market, he would need more money to establish it firmly. Using the BCG portfolio analysis, his product would be classified as a(n): A. star. B. cash cow. C. question mark. D. dog. E. anchor.

A A product with high relative market share in a high-growth market, in BCG analysis, is called a star. Stars typically require investment in order to continue to grow and to maintain or improve their market positions.

After a firm has identified the various stakeholders and their issues and gathered the available data, all parties relevant to the decision should engage in brainstorming and evaluation of alternatives. __________ then review and refine these alternatives, and choose a course of action. A. Managers B. The firm's lawyers C. Key customers D. Community leaders E. All stakeholders

A Although all stakeholders should be involved in the earlier steps of the process, management is responsible for choosing the final course of action.

Though Asian Americans comprise only 3 percent of the U.S. population, they represent: A. the fastest growing minority population. B. the easiest minority group to access. C. a large proportion of the minorities in the Midwest. D. a uniform group of consumers with a common language and cultural background. E. all of these.

A Asian Americans are the fastest growing ethnic minority in the US.

Kimberly-Clark recently introduced rolls of toilet paper without the cardboard core. What social trend does this product respond to? A. Green marketing B. Time-poor society C. Cultural diversity D. Technological advances E. Regulatory issues

A By eliminating the cardboard core, a form of consumer waste is eliminated, which would be of interest to consumers concerned about the environment--in other words, this is an example of green marketing.

Yolanda is the new restaurant manager in a major hotel. When considering changes in the restaurant to improve benefits to customers, Yolanda will likely attempt to either provide the same quality at a lower cost or A. improve products and services at the same cost. B. increase prices to increase revenue. C. offset higher hotel rates with lower restaurant prices. D. reduce customer expectations through reduced service. E. any of these.

A By improving products at the same cost, Yolanda would create additional value for her customers.

A firm's macroenvironment includes all of the following EXCEPT A. competition. B. culture. C. demographics. D. economics. E. political/legal issues.

A Competition is part of the immediate environment, not the macroenvironment.

Select the statement that best describes the key traits of Generation Y. A. This generation puts a strong emphasis on work/life balance and are experts at using various media forms. B. This generation mostly uses the Internet for the purposes of checking email, the news, and the weather. C. This generation focuses on healthcare and wellness services. D. This generation was the first generation of latchkey children. E. This generation—including its oldest members—has had access to the Internet for their entire lives.

A Generation Y puts a strong emphasis on work/life balance. Its youngest members have had access to the Internet for their entire lives, but this is not true of older members of the generation.

Laura finds that she spends very little time face to face with her family and friends. Most of her communication is done through text messages on her mobile/cell phone and Facebook. Laura probably is part of which generational cohort? A. Generation Y B. Generation W C. Baby Boomers D. Seniors E. Generation X

A Generation Y tends to communicate via text messages and Facebook.

The many demands on consumers today have made it more difficult for marketers to A. grab consumers' attention. B. decide what to offer. C. deliver products just-in-time. D. differentiate between the needs of seniors and Baby Boomers. E. offer green marketing solutions.

A Getting consumers' attention in the Time-Poor Society is difficult.

When a radio station holds an online contest in which you must log on to their website and submit your personal details such as name, phone number and email in order to participate, the radio station: A. has offered an exchange. B. is behaving unethically. C. is hoping to receive feedback. D. is implementing a CRM program. E. none of these.

A Marketing is about an exchange, the trade of things of value between buyer and seller so that each is better off. In this instance, the exchange is email/personal information for a chance to win a contest. CRM would imply closer tracking of customers than this simple exchange suggests.

Understanding the causes of performance, regardless of whether that performance exceeded, met, or fell below the firm's goals: A. enables firms to make appropriate adjustments. B. allows managers to demonstrate their effectiveness. C. offers insights into value-based pricing. D. should be followed by eliminating underperforming SBUs. E. allows firms to better assess customer loyalty.

A Once the causes of above- or below-goal performance are understood, firms can decide how the marketing plan should be adjusted. Some of the other answers might be true in some cases, but not in every case.

Internet sites, physical stores, and kiosks are most closely associated with which element of the marketing mix? A. place B. price C. product D. promotion E. proximity

A Place represents all the activities necessary to get the product to the right customer when the customer wants it.

Jeff opened a sporting apparel store and has signed a lease on the property. He has also signed an agreement with the manufacturer on the amount of merchandise he will sell and the promotions he will conduct. Based on this description, which aspect of the marketing mix does he still need to work on? A. Price B. Place C. Promotion D. Product E. Prototype

A The answer is Price, because this is the only part of the marketing mix missing from the question description.

Laws that prohibit the formation of monopolies or alliances that would damage a competitive marketplace benefit consumers through: A. increased choices. B. higher prices. C. protection from false advertising. D. fair debt collection practices. E. all of these.

A The concern about monopolies and alliances is that they will inhibit competition, possibly raising prices and reducing choice.

For many years, Southwest Airlines distinguished itself as the low-cost airline. Now, many other lowcost competitors have entered the market. Similarly, Southwest was one of the first airlines to offer online ticketing. Now, all airlines have online ticketing. These examples suggest that: A. no single strategy is likely to be sufficient to build a sustainable competitive advantage. B. situation analysis is a continuous process. C. customers rarely remain loyal to companies. D. product excellence is the only true source of a sustainable competitive advantage. E. innovation is pointless because competitors will develop copycat offerings.

A The example shows that competitors strive to copy good ideas. But that doesn't mean innovation is pointless--being the first to do something can still give you an advantage if you do it best, or if you innovate in ways that are difficult to imitate. What this example shows is that you cannot come up with a single idea, stay with it long term, and expect to sustain a competitive advantage. You must always look for new sources of advantage.

Many American consumers are purchasing hybrid automobiles even though they are more expensive and sometimes less fuel efficient when compared to compact conventional autos. These consumers: A. value contributing to a greener environment. B. are economically irrational. C. are responding to global corporate pressure for social responsibility. D. would prefer an SUV. E. all of these.

A These consumers are willing to pay more for environmentally friendly products because care for the environment is something that adds value.

In New England foot-long sandwiches are called "grinders" while in many other parts of the country they are called "subs." This is an example of the impact of A. regional culture. B. country culture. C. generational factors. D. social trends. E. regulatory factors.

A These types of language differences are typical examples of regional cultural differences.

A(n) _________ is the trade of things of value between the buyer and the seller so that each is better off as a result. A. exchange B. market segment C. promotional plan D. transactional orientation E. relational orientation

A This is the definition of the term "exchange."

The activity, set of institutions, and process for creating, capturing, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large is called ________. A. marketing B. marketing research C. market share analysis D. market segmentation E. market positioning

A This is the formal definition of marketing.

ABC Company knew that its customers were interested in environmentally friendly business practices, so it began marking all of their products as environmentally friendly because they were made with all natural ingredients, even though ABC's plant was one of the worst polluters in town. The new term for this practice is A. deceptive advertising. B. greenwashing. C. environmental exploitation. D. virtual greening E. enviromarketing.

B

Brad just completed an advanced degree and was able to land a job creating social media marketing campaigns, and then measuring the results. Brad's new job most likely has the title of A. online customer service representative. B. social media strategist. C. community manager. D. blogger. E. search engine marketing associate.

B

Carol loves to experiment with unique uses of computer animation. Every time she finishes a project, she uploads a video to YouTube and then posts the link on a variety of social networks where she participates. What segment of social networking users does Carol belong to? A. Bonders B. Creators C. Listeners D. Professionals E. Sharers

B

Each year, Doritos sponsors a "Crash the Super Bowl" contest, encouraging individuals to submit ads for Doritos to the contest. The winning ad is aired during the Super Bowl broadcast. Which segment of social networking users would be most likely to submit an ad for this contest? A. Bonders B. Creators C. Listeners D. Professionals E. Sharers

B

After defining the business mission, what should a firm do next to develop a marketing plan? A. Conduct an STP analysis. B. Perform a situation analysis. C. Develop a positioning strategy. D. Select a target market. E. Implement the four Ps.

B A situation analysis is the second step of the marketing planning process.

Many states create licensing requirements for a variety of professionals (such as lawyers and accountants) designed to restrict entry into their market by professionals from other states. This strategy limits ____________ growth strategies. A. product proliferation B. market development C. market penetration D. diversification E. product development

B By restricting the ability of lawyers and other professionals to easily expand their businesses across state lines, states are preventing these professionals from selling existing services to new customers. These would be market development opportunities.

Marketers know that, compared to high school graduates who are working full-time, college students: A. will earn less over their working lifetime. B. spend their disposable income differently. C. are less likely to buy textbooks. D. have almost identical spending patterns. E. are more likely to drink beer and less likely to drink wine.

B Education and occupation are partial predictors of how consumers spend their time and money, particularly in terms of leisure activities.

What is the one consistent aspect of all the ethical scenarios at the end of Chapter 3? A. They all involve men. B. There is no one "right" answer to any of them. C. Each situation could have been avoided. D. A lack of government regulation was a major cause of each ethical issue. E. Good marketing could have kept these issues from ever arising.

B Ethical decisions are difficult precisely because they rarely have a clear "right" answer. Instead, managers must choose between conflicting outcomes while considering the impact on all stakeholders.

Marketers in the United States are paying increasing attention to ethnic groups because: A. they represent a majority of the population in non-urban areas of the country. B. approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups. C. they are more susceptible to marketing messages. D. government subsidies assist marketers attempting to communicate value to these groups. E. country culture is replacing regional culture as a key marketing consideration.

B Ethnic groups represent a fast-increasing percentage of the U.S. population.

For U.S. businesses with strong export capabilities, expansion of U.S. trade agreements with other countries creates: A. weaknesses. B. opportunities. C. strengths. D. threats. E. strategic plans.

B Expansion of trade agreements is an external factor that could be favorable for firms that can take advantage. An external positive factor is an opportunity.

As director of a small art gallery, one of Frederica's major concerns is the preferences of the people who buy her artists' work. Frederica recognizes that the center of her marketing efforts is A. profits. B. her target customers. C. artistic social responsibility. D. competing art galleries. E. the arts movement.

B Frederica's customers should be at the center of all her marketing activities.

When firms successfully implement poor strategies (perhaps due to good luck) or do a poor job of implementing good strategies, it can be difficult to: A. generate cost-based performance ratios. B. evaluate performance and make adjustments. C. increase product excellence without reducing customer excellence. D. develop segmentation strategies. E. choose a business mission.

B Good luck may mask the weaknesses in a bad strategy, and poor execution may mask the strengths of a good strategy, making evaluation difficult in both cases.

Strategic efforts to supply consumers with environmentally friendly merchandise are called: A. the uncommon truth. B. green marketing. C. the green generation. D. the inconvenient truth. E. earth marketing.

B Green marketing refers to the marketing of environmentally conscious products.

One of All Army Credit Union's customers complained to the home office about huge fees assessed to his account that were not mentioned when he opened the account. The manager of All Army Credit Union should begin handling the situation by: A. assess whether or not the organization has a strong ethical climate. B. determine what explicit rules exist for governing the firm's transactions. C. review the current code of ethics to see if it is explicit enough. D. determine an appropriate punishment for the staff member who generated the fees. E. all of these

B In this case, the manager is not evaluating the sufficiency of existing ethical standards. Instead, the manager is using the standards to evaluate what happened. It is too soon to punish the employee who generated the fees. Perhaps the fees were proper, and the customer was misinformed about fees when opening the account. A good starting point is to investigate the rules that apply to the situation, and then determine what went wrong.

When considering income as a demographic variable affecting marketing efforts, marketers need to recognize that: A. everyone is equal. B. income in the U.S. has become more unevenly distributed. C. everyone has been equally affected by the recession. D. there is increasing purchasing power among lower income groups. E. middle-income consumers are quickly becoming upper-income consumers.

B Income distribution has gotten increasingly unequal in the US, with high-income groups getting richer and low-income groups getting poorer.

Because Americans are working longer hours without increases in real, disposable income, and are utilizing an army of communication devices to keep up with the demands in their personal and work lives, retailers are A. increasing their budgets for traditional advertising outlets like television and radio. B. making their products available whenever and wherever consumers want them. C. outsourcing marketing communications to global production facilities. D. focusing only on those demographic cohorts that have time to relax. E. de-emphasizing U.S. sales and expanding globally.

B It is not necessary to abandon the US market--the Time Poor Society simply requires retailers to consider consumer convenience, and make sure consumers can get products where and when they want them--online, via mobile devices, or at unusual hours, for example.

Elena is the CEO of a small manufacturing firm. She is concerned with meeting the investment objectives of the firm's shareholders, and sees no value in corporate social responsibility. Elena's attitude is A. insupportable in the 21st century. B. consistent with the views of other critics of corporate social responsibility. C. typical of nearly all manufacturers. D. a reaction to regulatory directives of the U.S. government. E. unethical.

B Other critics of CSR agree with Elena, feeling that the first responsibility is to the shareholders and that CSR programs add little to the bottom line. But many companies disagree.

E-books, in addition to being an alternative product form, provide __________ value creation since they can be downloaded via the Internet immediately when they are needed. A. product B. place C. promotion D. price E. primary

B Place refers to getting products to customers when and where they need/want them. This is what electronic downloading of e-books offers.

Janice was disturbed to find that the real estate company she had just started working for did not have a(n) __________, the starting point for creating a strong ethical climate. A. ethical behavior seminar B. set of ethical values C. employment contract D. social responsibility program E. ethical activity bonus

B The first step in creating a strong ethical climate is to establish a set of shared ethical values that the company and its employees will respect when doing business.

When Bernie Ebbers, WorldCom's CEO, was convicted of financial crimes, WorldCom was forced to merge with MCI. One of the ramifications of this merger was the loss of WorldCom's sponsorship of the Sea Pines Heritage PGA golf tournament. The tournament funds the Heritage Foundation, a major community charity. This example illustrates A. the need to identify issues. B. that the impact of unethical actions can reach far beyond the corporation. C. that unethical firms cannot be socially responsible. D. the lack of information needed to make ethical decisions. E. the questionable advantage of social responsibility.

B The impact of the CEO's behavior reached beyond his company, affecting members of the community who formerly benefited from the work of the Heritage Foundation.

Charges that firms are using "sweatshop" labor to produce their products are likely to occur during the __________ phase of the strategic marketing planning process. A. planning B. implementation C. control D. evolution E. marketing mix

B The implementation phase is where the marketing mix is implemented, and is thus the place where the use of sweatshop labor becomes a public issue.

Which of the following is the best way to build a sustainable competitive advantage using product excellence? A. Being the first to offer customers desired features, even if competitors can copy them easily. B. Positioning the product using a clear, distinctive brand image. C. Having the most features on each model. D. Focusing on being cutting edge and continually eliminating older features that are still in use by customers. E. Copying the market leader's features, but at a lower cost.

B The incorrect options all describe ways to create new product models that are probably easy for competitors to copy (or that, in one case, copies competitors' offerings). A clear, distinct, positioning, though, offers a more sustainable advantage through product excellence.

H&R is a small, local heating and air conditioning business. The area military base is a potential source of growth, and H&R already installs and services the type of equipment the military would require, but it is difficult to get established as a certified government contractor. H&R is considering a ____________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

B This is a market development strategy because the military is a new type of customer, but H&R's current offerings would be used.

Location-based software and applications can help bring a special offer to customers right on their Smartphones when they are in the process of making a purchase decision. This best represents the __________ framework of social media marketing. A. engage B. energize C. excite D. experience E. educate

C

Marketers are more likely to find higher concentrations of foreign-born Americans and recent immigrants in A. Duluth, Montpelier, and Augusta. B. smaller states. C. New York, Los Angeles, and Chicago. D. coastal resort areas. E. Great Lakes agricultural areas.

C

Jacqueline was pleased to read a paraphrasing of the Golden Rule, "Do unto our customers as you would have them do unto you," as part of her new employer's mission statement. Next, Jacqueline expects to find in the firm's employee handbook A. a summary of recent Supreme Court business ethics cases. B. a statement that she needs to decide how the Golden Rule applies to her job on her own, without any influence from her employer. C. explicit rules governing the firm's transactions. D. a list of employee concerns. E. a list of benefits offered to employees.

C A firm wishing to create a strong ethical climate needs to establish a set of ethical values shared by the firm, and follow that with explicit rules for the implementation of the values in the firm's business.

Compared to the average company, firms with strong ethical climates tend to: A. employ more business development consultants. B. offer more goods and services. C. be more socially responsible. D. invest more in sales training software. E. all of these

C A strong ethical climate and social responsibility often (though not always) go hand in hand.

If a firm wants to develop a sustainable competitive advantage, it should: A. begin an aggressive campaign to buy up competitors. B. copy the innovative features of other firms that are attractive to customers. C. examine its operations and customer relations to identify significant things competitors cannot easily copy. D. increase its marketing budget so that it outspends its competitors. E. arrange to meet with competitors to discuss how to avoid direct competition.

C A sustainable competitive advantage comes from doing things that add value and that are not easily imitated by competitors. The other options do not achieve this objective.

Adrienne decides to add new sales representatives and increase advertising in her existing market for her current line of security systems. Adrienne is pursuing a __________ growth strategy A. segment development B. market development C. market penetration D. diversification E. product development

C Adrienne is trying to sell more of her current products to current customers, which is a market penetration strategy.

Google and other search engines allow marketers to bid to have their ads shown when consumers search on keywords related to the firm's products. These marketers are attempting to create value through ______. A. product B. price C. promotion D. place E. cost-based

C Ads displayed in search engines are an example of Promotion.

When marketers look at advertising media they often begin with viewer or listener profiles such as age, income, gender, and race. They then compare the media profile with their target audience. These marketers are using __________ to see if the media "fit" with their advertising agenda. A. country culture B. regional culture C. demographics D. macromarketing measures E. scenario planning

C Age, income, gender, and race are demographic factors.

Marketers are more likely to find higher concentrations of foreign-born Americans and recent immigrants in: A. Duluth, Montpelier, and Augusta. B. smaller states. C. New York, Los Angeles, and Chicago. D. coastal resort areas. E. Great Lakes agricultural areas.

C Although they can be found anywhere, immigrants and foreign-born Americans are found in large numbers in major cities like New York, Los Angeles, Chicago, Miami, and San Francisco.

As a retail clothing store manager, Randy frequently asks his staff what customers are saying and what they are asking for. He also attends the quarterly clothing show at the regional merchandise mart. Randy's efforts will likely help him to A. avoid cognitive dissonance. B. implement just-in-time marketing promotions. C. identify potential opportunities. D. avoid the need to understand regional culture. E. all of these.

C Close attention to the marketing environment is one of the best sources of opportunities.

Viewers of the baseball World Series are likely to see ads for beer and cars, and viewers of the Academy Awards broadcast (the "Oscars") are likely to see ads for clothing and hair care products, due to A. cultural expectations. B. male domination in corporate boardrooms. C. demographic data indicating that Monday Night Football attracts male viewers and the Academy Awards attracts female viewers. D. marketers' perceptions that women don't like beer and men don't care about their hair. E. multiyear advertising contracts that cannot be broken.

C Gender is a demographic variable, and these programs do tend to attract different genders; thus, this difference in advertising is based on demographic information.

When auditing expenses claimed by the university president, the auditors found extravagant spending on $1,000 per night hotels, banquets, and gourmet restaurants. The president was fired, alumni donations declined, and staff members—who were disturbed by the extravagance while staff salaries were frozen— quit their jobs. This example illustrates A. that universities are more corrupt than companies. B. that the extravagant spending should have been kept quiet to minimize damage to the university. C. that the impact of unethical actions can affect the organization in unanticipated ways. D. the need to identify issues. E. the lack of information needed to make ethical decisions.

C Hushing up the unethical behavior is not a solution; among other things, if the matter were ever to become public, the embarrassment to the university would be far greater than if they dealt with the situation from the start. The example shows, though, that unethical actions can harm an organization in a variety of ways.

Which of the following markets is likely to be the MOST sensitive to changes in long-term interest rates? A. college tuition B. consumer staples C. housing D. airline travel E. textbook

C Long-term interest rates affect products involving long-term loans the most; of the ones on this list, housing would be the item most affected due to the cost of mortgage interest.

Imagine that you are in a gourmet food store choosing your favorite "comfort" food instead of being in a classroom taking this test. Notice the packaging, colors, labels, even the fonts used on labels. All of these efforts are part of the marketer's: A. value-based promotions. B. market segmentation. C. positioning strategy. D. customer excellence strategy. E. target market.

C Packaging, colors, labels, and fonts all contribute to the consumer's impressions of a product and to their understanding of what it offers. This is therefore part of the product's positioning.

Recent advances in technology allow manufacturers, distributors, and retailers to track production, distribution, and sales. These advances help the firm to: A. increase value to the consumer through media effectiveness promotion. B. tailor their marketing messages. C. meet inventory needs. D. communicate with consumers on social media sites. E. replace services with products.

C Some of the other options address ways that technology can help firms communicate with consumers; however, the question asks about members of the supply chain using technology; inventory management is an example of how the supply chain can benefit from technology.

Which of the following is NOT one of the questions typically asked in the Ethical Decision-Making Metric? A. Can we live with this decision alternative? B. Have we thought broadly about any and all ethical issues associated with the decision? C. Does this decision respect the rights, dignity, and profits of stockholders? D. Does this decision uphold relevant conventional moral values? E. Does this decision produce the most good and the least harm to the relevant stakeholders?

C Stockholders are different from stakeholders--stakeholders are those who will be impacted by the decision. Stockholders may in some cases be among the stakeholders for a decision.

The CAN-SPAM Act of 2003: A. strengthened health standards for Spam and other canned meat products. B. restricted tobacco advertising. C. created penalties for "junk" e-mail. D. created oversight of canned visual advertising. E. strengthened the Fair Packaging and Labeling Act.

C The CAN-SPAM Act of 2003 restricts the situations in which spam email can be sent.

Which of the following is NOT one of the four major growth strategies marketers typically utilize? A. market penetration B. market development C. segment development D. diversification E. product development

C The four growth strategies are market penetration, market development, product development, and diversification.

As part of her company's SWOT analysis, Valerie is assessing the company's internal environment, including: A. strengths. B. opportunities. C. strengths and weaknesses. D. threats. E. opportunities and threats.

C The internal components of a SWOT analysis are strengths and weaknesses.

In value-based marketing, promotion communicates the: A. targeted solution. B. operational excellence strategy. C. value proposition. D. relative market value. E. target market definition.

C The value proposition is the value of the firm's offering, as explained to the target market. Promotion is responsible for communicating this value proposition.

One of the goals of value-based marketing is A. to provide the greatest value for the least profit. B. to sell products for the highest possible price. C. to offer greater value than competitors offer. D. to determine the value of the brand. E. to sell to all consumers, regardless of their needs.

C Value-based marketing has to do with offering the greatest possible value to consumers.

"Tweens" are part of which generational cohort? A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z

D

In order to effectively communicate value to target markets, marketers must first: A. consider the cost of alternative media. B. use the Internet. C. redesign ads to meet media specifications. D. understand their customers. E. hire the right ad agency.

D All of these steps might factor into a value communication strategy, but the only one that is necessary in all cases is understanding customers.

In the early 1990s, the inflation rate in Mexico was twice the rate in the United States, but the Mexican monetary authorities kept the peso/dollar exchange rate almost constant. For Mexican consumers A. incomes rose dramatically. B. interest rates fell to compensate for increased inflation. C. Mexican products became less expensive while U.S.-made products became comparatively more expensive. D. Mexican products became more expensive while U.S.-made products became comparatively less expensive. E. all of these

D By keeping the exchange rate constant, US-made products' prices would go down, compared to their Mexican counterparts, whose prices would rise with inflation.

Anita has gone to the same hair salon for the past ten years. She believes that her stylist, the salon owner, does a better job of cutting and styling her hair than anyone else could. Other salons have opened closer to Anita's home, some offering more plush facilities or lower prices, but she isn't tempted to switch. Anita's attitude toward the salon is an example of: A. a sustainable competitive advantage. B. a customer retention program. C. an opportunity, in SWOT analysis. D. customer loyalty. E. the benefits of a locational excellence strategy.

D By refusing to consider competitive offerings and staying in a long-term relationship with the salon, Anita is demonstrating loyalty to her stylist and salon. If the salon has a large number of loyal customers due to the quality of its service, that could be considered a sustainable competitive advantage, but one loyal customer isn't enough to establish that.

Carla has been directed by her regional marketing manager to cut prices on seasonal items, submit an ad in the local paper, and tell distributors to reduce deliveries for the next month. Which step of the strategic marketing planning process is Carla engaged in? A. Evaluate performance. B. Define the business mission. C. Situation analysis. D. Implement marketing mix and resources. E. Identifying and evaluating opportunities.

D Carla is dealing with implementation of the marketing mix--price cuts (Price), advertising (Promotion), and distribution changes (Place).

Generational cohorts are groups of people of the same generation who have similar __________ because they have shared experiences and are in the same stage of life. A. regional cultures B. inflationary expectations C. political affiliations D. purchase behavior E. cultural values

D Generational cohorts are presumed to have similar purchase behavior due to similar life experiences and similarity of life stage.

A competitive advantage based on location is often sustainable because: A. mobile marketing has not yet proven its value for most customers. B. real estate prices have been dropping. C. few marketers are aware of its importance yet. D. it is not easily duplicated. E. the Internet has diminished the importance of "brick and mortar" stores.

D If you have a wide variety of locations in prime areas, that's difficult (and often expensive) for a competitor to duplicate. While some of the other answers are true statements, they don't explain why a locational excellence strategy tends to be sustainable.

A meat packing company discovers that six months ago it unknowingly distributed meat from a cloned cow. The firm is unaware of any specific risks to humans consuming the meat; however, some scientists have raised questions, and some consumers are afraid of possible future problems. The meat company has to decide whether or not to make this matter public. How should it begin the process of making an ethical decision? A. Brainstorm the available alternatives. B. Ask its managers to vote for or against public disclosure. C. Let the board of directors decide what to do. D. Identify the issues raised by the situation. E. Find out who purchased the meat, and offer them refunds in return for their silence.

D It is too late to recall the meat--it has been consumed or discarded long ago--so emergency action is neither possible nor necessary. The company should begin the Ethical Decision-Making Framework by identifying all issues raised by this situation. This should happen before attempting to choose a course of action.

When considering the use of a radio commercial in England that was designed for U.S. markets, a marketer would likely need to consider which of the following aspects of culture that might be different between the two countries? A. dress B. symbols C. demographics D. language E. social trends

D Language would be an important cultural issue; while both countries speak English, there are many differences in vocabulary.

Manufacturers of products like cars, appliances, and computers need to recognize that women: A. allow men to make most of the purchase decisions. B. who are Seniors influence purchase decisions more than their partners. C. utilize product reviews in making decisions than men. D. make many purchases of these products. E. all of these.

D More and more products are sold on a gender-neutral basis because both men and women purchase them.

The automobile manufacturing industry closely watches annual consumer satisfaction surveys. For years, Japanese car companies consistently had the highest levels of customer satisfaction, creating a ______ for these companies. A. strategic marketing plan B. clear mission statement C. cost advantage D. sustainable competitive advantage E. diversification strategy

D Satisfied customers, if this satisfaction leads to loyalty, is a source of sustainable competitive advantage.

The United States has often been called the "melting pot" society, integrating people from many different cultures into the social fabric of the country. The challenge for marketers is to determine whether a group's culture A. is socially important. B. is passed from generation to generation orally or by written guides. C. competes with or complements U.S. traditional culture. D. can be used as a relevant identifier for a particular target group. E. is an important immediate marketing environment variable.

D Some groups in the U.S. preserve their cultural identities while others seek to blend in. The more a group seeks to maintain its identity, the more relevant culture will be to identify a potential customer group.

Marketers want their firms to develop excellent supply chain management and strong supplier relations so they can: A. persuade stores to refuse to carry competitors' products. B. use their power within the supply chain to force weaker firms to accept less favorable pricing. C. control prices and lock in margins. D. create a sustainable competitive advantage. E. justify charging higher prices than competitors do.

D Some of the potential answers here represent unethical (and potentially illegal) behavior. The best answer is far simpler--this type of operational excellence helps to create a sustainable competitive advantage by keeping costs low.

For years, when considering new products, marketers at Celestial Seasonings asked themselves, "What would Stacy think?" Stacy was a fictional character representing 25-50 year old, educated, upper-income women who rarely watched television but did a lot of reading. "Stacy" represented Celestial's major: A. demographic segment. B. positioning. C. SBU. D. target market segment. E. sustainable competitive advantage.

D Stacy was created to help Celestial's marketers to understand its major target market segment. The segment is more than just demographic--it includes elements of Stacy's behavior (reading instead of TV). Stacy isn't Celestial's positioning—rather, the company needs to position its products to help women like Stacy to understand the value Celestial products can offer them.

Over the last few months, Juan and his colleagues have analyzed the current business situation, and then identified target markets for his firm's personal care products. Finally, they developed the products, prices, distribution and promotion that should appeal to each of those target markets. In doing so, Juan has also identified what he believes is an advantage his competitors cannot match. Juan and his colleagues have been developing: A. a business mission statement B. a strategic vision C. team-building exercises D. a marketing strategy E. competitive assessments

D The question describes the situation analysis, STP, and positioning steps of developing a marketing strategy, as well as a potential sustainable competitive advantage.

The first objective in the Evaluate Performance phase of the marketing planning process is to: A. determine whether to raise or lower prices. B. adjust advertising allocations. C. find ways to cut costs. D. review implementation programs and results using metrics. E. consider changing the target market.

D The starting point for evaluating performance is to compare goals to actual performance and, for any goals not met, to review implementation programs looking for explanations.

The success of Newman's Own in making substantial contributions to thousands of charities has shown that businesses can create value by combining a mission dedicated to supporting charities with: A. licensing its name to other organizations. B. licensing the name of other famous products to expand its offerings. C. making organic products profitable. D. offering value to customers who want to enjoy good-tasting products. E. All of these.

E All of these are aspects of Newman's strategy.

Corporate social responsibility (CSR): A. is becoming more prevalent. B. covers a wide range of activities beyond philanthropic and community-based activities, including marketing, sales and production. C. is one criterion for determining whether a firm should be included in most-admired company rankings. D. is a voluntary activity. E. All of these.

E All of these are characteristics of corporate social responsibility in today's business climate.

For some products, marketers can combine education level with other data like occupation and income to obtain: A. a sense of consumers' regional culture. B. consumers' value sensitivity quotient (VSQ). C. the educational value equation. D. complete profiles of individual consumers. E. useful predictions of purchase behavior.

E Certain habits--such as preferences for entertainment--can be predicted with reasonable accuracy from education, occupation, and income.

Marketers have learned that culture influences __________ consumers buy. A. what B. how C. where D. when E. all of these

E Culture influences many aspects of consumers' purchase decisions.

Identifiable elements of a country's culture include A. dress. B. symbols. C. ceremonies. D. language differences. E. all of these.

E Cultures express their shared beliefs and values through visible elements such as dress, symbols, and ceremonies, along with the language they speak.

When the local school district decided to build an elementary school less than a mile from Kaolinic Chemical's factory, the plant manager decided to develop an emergency response plan in case of an accident. The manager recognized that a quick, organized response to a crisis would benefit the firm's ___________ with the community and its customers. A. reputation B. credibility C. level of trust D. long-term relationships E. all of these

E Developing an emergency response plan may take time and effort and might cost the firm money, but a disaster for which the firm was unprepared--but could have been--will cost far more in lost credibility and reputation.

An advertising campaign for Geico Insurance uses the slogan, "So easy, even a caveman could do it" to emphasize the ease of buying insurance on Geico's website. This campaign is part of Geico's: A. mission statement. B. market segmentation plan. C. product strategy. D. customer excellence strategy. E. positioning strategy.

E Geico is seeking to define itself in customers' minds as a very easy way to save money on insurance, in order to distinguish it from its competitors. This is the nature of positioning.

After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision making situation, all parties relevant to the decision should engage in A. legal discourse. B. a vote, with the majority deciding the best course of action. C. reidentification of issues. D. choosing a course of action. E. brainstorming and evaluation of alternatives.

E It is too soon to make a choice--at this point, the involved parties should brainstorm and evaluate alternatives.

A new law in South Carolina makes it illegal for people under the age of 18 to smoke cigarettes. Previously, the law banned sales of cigarettes to anyone under age 18, but not smoking. Which of the following types of companies would be unlikely to have to incorporate this change into the Ethical Decision-Making Framework? A. Restaurants B. Convenience stores C. Dance clubs D. Bars E. All of these would have to incorporate the change.

E It might seem at first that convenience stores would not have an issue, since they are places where people buy cigarettes but don't necessarily smoke them. But under the old law, it would be permissible for someone eighteen or over to buy cigarettes for a sixteen-year-old. Under the new law, this is no longer true.

A friend of yours comments, "I'm starting my own business. I have a perfect product that no one else can touch, but I have no use for marketing. That's just for the mega-corporations." Which of the following arguments would you NOT use in talking about marketing? A. Marketing helps new ventures organize, operate, and assess risk. B. Marketers help address unmet customer needs, regardless of the size of the firm. C. Marketing focuses on the product, but only as one element. Three other areas are Promotion, Price, and Place. D. Marketers are skilled at communicating the value of the product to potential customers. E. Marketing isn't essential now, but it will be in a year or two when the product takes off.

E Marketing is necessary at all stages of a firm's life.

Starbucks has developed a number of metrics beyond purely financial metrics. Knowing the importance of perceptions and knowing the importance of developing ways to demonstrate its activity, Starbucks tries to find clear ways to: A. build brand equity. B. demonstrate its sense of corporate social responsibility. C. address concerns of opponents at local, regional, national and global levels. D. help consumers to feel better about their purchases. E. All of these

E Starbucks has important goals to measure that go beyond financial performance.

Fourteenth National Bank prides itself on offering better service than any of its competitors. If this is accurate, and if customers recognize and value Fourteenth National's superior service, the bank creates and delivers value through: A. promotional excellence. B. product excellence. C. operational excellence. D. global excellence. E. customer excellence.

E Superior service is a key facet of a customer excellence strategy.

The AMA Code of Ethics is silent with regard to: A. regulators. B. customers. C. economically vulnerable segments such as children and the elderly. D. consultants. E. none of these. The AMA Code of Ethics mentions each of these.

E The AMA Code of Ethics offers guidance on dealing with all of the above- mentioned groups.

The centerpiece of the Marketing Environment Analysis Framework is A. green marketing. B. corporate partners. C. culture. D. competitive intelligence. E. consumers.

E The consumer is the center of all marketing activities.

Braddock University allows recent graduates to come back and take additional courses for free. By offering additional educational services, the university is enhancing its _____________ in an attempt to create value for its customers. A. segmentation strategy B. place strategy C. locational excellence strategy D. diversification strategy E. product strategy

E The product the students buy--a degree--is enhanced by the ability to take extra courses at no additional cost. Thus, this special offer is related to the product strategy.

After performing an STP analysis, marketers implement ____________ for each target market. A. pricing strategies B. promotion strategies C. place strategies D. product strategies E. all of these

E These are the four elements of the marketing mix.

Insight Guides, a line of travel books, provides travelers with background information about the people's beliefs, values, and customs. Insight's books educate travelers about a country's A. social concerns. B. political parties. C. demographics. D. generational cohorts. E. culture.

E This is the definition of culture.

The evolution of marketing progressed along the following continuum: A. sales, marketing, value-based marketing, production. B. marketing, value-based marketing, production, sales. C. value-based marketing, production, sales, marketing. D. production, sales, marketing, value-based marketing. E. sales, value-based marketing, marketing, production.

D The production era was followed by the sales era, then the marketing era, and finally the value-based marketing era.

Jami sells construction equipment. Whenever she calls on her building contractor customers, she asks if they are having any problems. In doing so, Jami is addressing which of the following core aspects of marketing? A. Satisfying customer needs and wants B. The exchange function of marketing C. Product, place, promotion, and price decisions D. Decisions about the setting in which marketing takes place E. Creating value

A By asking about problems, Jami is asking what unmet needs the contractor might have. She hopes that her company may have products that will help to meet these needs.

When referring to "exchange," marketers are focusing on A. the location where products and services are traded. B. the price charged, adjusted for currency exchange rates. C. location-based tactics for creating value. D. promotional offers designed to stimulate barter. E. the trading of things of value.

E Exchange refers to each of the parties involved giving something and getting something in return.

Fiona has developed a new software application that automatically recalculates and reformats accounting information based on the standards used in each country. Her product is superior to anything that exists on the market. Which of the following questions will she have to address when making marketing decisions? A. How the software will be promoted? B. What price should she charge? C. Should she sell her software on the Internet? D. In what country should she offer the software for sale first? E. All of these

E Fiona's product is the software. The other four questions address the remaining elements of the four Ps: promotion, price, and place (Internet sales and choice of first country).

The marketing goal of getting the "right quantities to the right locations, at the right time" is: A. communicating the value proposition. B. supply chain management. C. creating value. D. capturing value. E. price and performance management.

B The question describes the Place component of the marketing mix, which involves managing the supply chain.

Melinda, a marketing executive, is trying to explain customer relationship management (CRM) to her parents. She explains that CRM is a way of thinking that translates into ___________________ to identify and build long-term relationships with her customers. A. a set of strategies B. programs C. efforts D. systems E. all of these

E CRM is not just a software application or a set of tasks--it is a complete approach to managing customer relationships that encompasses strategies, programs, software, and effort invested.

Ann Marie has been working on pricing for the hotel where she works. She knows business travelers stay at the hotel because it has easy access to the airport, and others stay there because it is convenient to the shopping and entertainment districts. She is unsure whether she should raise rates for the business travelers, the leisure travelers, both, or neither. As she works to find the best pricing mix, she'll have to look at the ways these travelers will evaluate the benefits of staying at the hotel. In doing so, Ann Marie will be using: A. value-based marketing. B. convenience pricing. C. destination planning. D. All of these. E. None of these.

A Ann Marie is thinking about value-comparing benefits to price from the customer's perspective.

Many inventors struggle with the question, "I made it; now how do I get rid of it?" They have made the error of considering marketing as A. an afterthought. B. an integral part of a business plan. C. an accounting function. D. a profit center. E. important only for new products.

A Marketing should be considered at every step of the conception, design, and manufacturing of a new product, and not treated as an afterthought once the product exists.

Marketers must determine the price of a product carefully, based on potential buyers' beliefs about A. its value. B. the environment. C. the cost to manufacture the product. D. the economic outlook. E. the product's new advertising campaign.

A Pricing based on buyers' perceptions of value ensures that buyers believe the product is worth its price.

Henry Ford's statement, "Customers can have any color they want so long as it's black," typified the __________ era of marketing. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

A The production era of marketing dealt primarily with manufacturing processes and the design of a good product, but without concern for meeting specific customer needs.

Melanie works for a small computer software company. Her boss is constantly improving their products but neglecting customers, billing, and promoting the company. Her boss is probably stuck in the __________ era of marketing. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

A The production era of marketing dealt primarily with manufacturing processes and the design of a good product, but without concern for meeting specific customer needs.

In 2006, the film "Supersize Me" provided a critical view of McDonald's and its products that caused some consumers to stop eating at McDonald's. The company was caught off guard and had to move quickly to develop a response. In terms of value-based marketing, McDonald's faced what potential problem? A. Consumer perceptions change quickly. B. Competitors constantly enter markets. C. Global pressures continually reshape market opportunities. D. Marketers' understanding of consumers is complete. E. Consumers do not know what they want.

A This is an example of a change in consumer perceptions due to the film.

Franco uses a database software system to remind him when his customers should be ready to reorder his industrial cleaning products. With this reminder system, Franco contacts his customers when they are most likely to be "in the buying mode." Franco's system is part of A. C2C marketing. B. customer relationship management. C. a transactional marketing orientation. D. supply chain management. E. typical production era marketing practices.

B Franco's system is one element of a customer relationship management system, in that it tracks customers and seeks to meet their specific needs in order to build loyalty.

UPS washes its trucks nightly so they are always clean, and requires its delivery people to wear clean, unwrinkled uniforms. UPS probably established these rules because they know that: A. consumers want friendly delivery people. B. most delivery services do not require uniforms. C. consumers' judgment of the benefits they receive from services are tied to the image of the producer. D. the goods UPS sells are easily replicated. E. all of these

C Because services are intangible, factors such as appearance and image can become important factors in judging the benefits received. Consumers find it difficult to separate the service from the producer.

The goal of promotion is to _______________ potential buyers about a product or service. A. inform B. persuade C. remind D. all of these E. none of these

D D Informing, persuading, and reminding are the three key goals of promotional campaigns.

Delivering the value proposition is also known as A. endless chain marketing. B. a transactional orientation. C. wholesaling. D. product design. E. supply chain management.

E Delivering the value proposition is the Place component of the four Ps, which involves managing the supply chain.

UPS, FedEx, DHL, and other shipping companies support other firms' __________ marketing goals. A. supply chain management B. value communication C. value capture D. retail management E. none of these

A Supply chain management includes the shipment/delivery of products, so these companies can be an important part of the supply chain.

Janine has a new clothing design she would like to market, but she knows that creating and delivering value to consumers is a challenge. She has seen other designers' successful products copied by other firms soon after they were introduced. For Janine, the major problem she faces in creating and delivering value is probably that : A. consumer perceptions change quickly. B. competitors constantly enter markets. C. global pressures continually reshape market opportunities. D. marketers' understanding of consumers is complete. E. consumers do not know what they want.

B The question mentions copycat competitors, which suggests that her major problem is pressure from competitors.

Henriette offers financial counseling and management on a fee-only basis. She has found that different customers are willing to pay different rates for her services. This shows that her pricing decisions should depend primarily on A. choosing an average price that she will charge all her clients. B. changes in technology allowing consumers to manage their own affairs. C. how different customers perceive the value of her services. D. changes in the economy. E. how much her competitors charge for similar services.

C Although the other factors might need to be considered in pricing, the primary consideration should be perceived value--and the reason different customers are willing to pay different rates is because they perceive the value differently.

One of the benefits of value-driven marketing is that attention to customer needs and wants will likely result in A. higher prices than the market leader charges. B. increased competition. C. long-term relationships. D. strong connections among competing firms in the marketplace. E. lower prices.

C Value-driven marketing is likely to lead to loyal customers through the relationships that are formed.

Trey sells consumer electronics. He knows his customers weigh the costs versus the benefits associated with the different options available. He decides which products to offer and what prices to charge based on the way his customers think. Trey operates in the __________ era. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

D Trey is thinking in terms of the value his customers perceive (benefits minus costs), and thus is thinking about value-based marketing.

Suppose that you are the vice president of marketing for Target, the large retail store chain. You want to keep your website and in-store services current with technological advances. You would be experimenting with the next expected development in mobile technology, which is A. wireless payments from mobile devices. B. location-based social media applications. C. mobile devices completely replacing desktop and laptop computers. D. devices that block smartphone usage in retail stores. E. all of these.

A

The U.S. Federal Trade Commission created the Do Not Call Registry to curb problems with unwanted telephone solicitations. Which of the following was NOT one of the results? A. Honest telemarketers found it easier to reach customers. B. Dishonest telemarketers found it relatively easier to get through. C. Consumers received fewer telephone calls. D. Companies were forced to move away from telemarketing approaches. E. All of these were results.

A

The ______________ generational cohort is likely to spend money on travel, second homes, luxury cars, and investments. They are typically loyal and willing to spend but are extremely quality conscious. A. Seniors B. Baby Boom C. Generation W D. Generation X E. Generation Y

A

The activity, set of institutions, and process for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large is called A. marketing. B. marketing research. C. market share analysis. D. market segmentation. E. market positioning.

A

The political/regulatory environment comprises political parties, governmental organizations and A. legislation and laws. B. citizens. C. interest groups. D. for profit and nonprofit businesses. E. international influences.

A

Which of the following is the definition of social media? A. content distributed through social interaction B. a collection of websites that support the posting of videos and photos C. a group of websites that allow users to establish formal connections D. the practice of users forwarding video and photo links to each other E. web services that allow users to share their physical locations

A

Which of these is a macroenvironmental factor? A. Culture B. Corporate partners C. Competition D. Company E. All of these are macroenvironmental factors.

A

Which segment of social media users would be most likely to use Facebook to post frequently about the day-to-day details of their lives, and to comment on similar details posted by their friends? A. Bonders B. Creators C. Listeners D. Professionals E. Sharers

A

Which of the following groups has never lived without easy access to cell phones or the Internet? A. Tweens B. Generation X C. Baby Boomers D. Generation Z E. Generation W

A "Tweens" is the term for the youngest component of Generation Y, who have had access to cell phones and the Internet all their lives.

One example of a customer loyalty program is: A. a "frequent diner" card at a restaurant, offering a free appetizer for every $100 in food purchases. B. a quantity discount offered for large purchases at an office supply store. C. all of these. D. an "everyday low price" policy on all products at a grocery store. E. an extensive customer service training program for new employees at a hair salon.

A A "frequent diner" program gives a customer an incentive to visit the restaurant more often, even if competitors try to win customers away with special menus or other offers, because the customer wants to earn the rewards that come with frequent visits.

Heather has been assessing a number of her firm's products using the Boston Consulting Group approach to portfolio analysis. She has been trying to assess the strength in a particular market and is looking at the sales of the product and the overall market as well as the sales of competitors. Heather is trying to determine: A. the product's relative market share. B. the market growth rate. C. a source of competitive advantage. D. the impact of population shifts on future demand. E. cash equivalent values for each product.

A A company's relative share of a market is determined by comparing its market share (company sales divided by overall market size) to market shares of competitors.

After identifying various market segments that her company could pursue, Lisa evaluated each segment's attractiveness based on size, income, and accessibility. Lisa was involved in: A. target marketing. B. situation analysis. C. diversification. D. positioning. E. market penetration estimation.

A A key component of target marketing is the evaluation of potential target segments' attractiveness.

Sarah has decided to pursue a market penetration strategy for her French cookware product line. She will likely increase advertising and sales promotion. She may also consider: A. getting the stores who carry her products to promote them more heavily. B. investing in a travel agency. C. shifting resources into a new line of European-styled footwear. D. expand into new geographic regions. E. offering French cooking classes.

A A market penetration strategy is one in which current products are sold to current customers, hoping to increase sales among these customers. Increasing promotion in current stores would be a good step toward this goal. Expanding into a new geographic region would be an example of market development (selling current products to new customers). Selling footwear or French cooking classes both involve new products, and would be either product development or diversification, depending on the target market.

Marketers should not assume that they can target all Asian consumers in the United States with one strategy because: A. they speak different languages and come from different cultures. B. Asians do not respond to marketing efforts. C. there are not enough Asians in the United States to effectively target. D. each major city tends to have only one group of Asians in large numbers. E. one strategy is likely to be more expensive than multiple strategies.

A Asian consumers are not a single group--they come from many nations (including China, Japan, Korea, Vietnam, Thailand, and many more) with different languages and cultures.

The Henry Ford Health System (a health care provider) has set strict limits for pharmaceutical representatives, and will no longer allow doctors in its system to accept free lunches, gifts, or other perks from the pharmaceutical representatives. The Henry Ford Health System probably established this policy because A. it reduces the possibility that the Henry Ford Health System might make unethical purchasing decisions. B. it ensures that Henry Ford Health System is both ethical and socially responsible. C. it ensures that Henry Ford Health System is ethical, but not necessarily socially responsible. D. it ensures that Henry Ford Health System is socially responsible, but not necessarily ethical. E. it was trying to save money.

A By setting clear policies, Henry Ford Health System reduces the risk of having unethical purchasing practices; however, this one action cannot ensure that the company is ethical. The action has nothing to do with social responsibility.

Which of these is a macroenvironmental factor? A. Cultural Factors B. Corporate Partners C. Competition D. Company E. All of these are macroenvironmental factors.

A Corporate Partners, Competition and Company are all part of the immediate environment.

Craig sees that his company's quarterly sales and profits are significantly above projections and says, "That's great. Let's keep doing what we've been doing." Craig is ignoring the ______ step of the marketing planning process. A. Evaluate Performance B. Define the Business Mission C. Situation Analysis D. Implement Marketing Mix and Resources E. Identifying and Evaluating Opportunities

A Craig should still evaluate performance, even if results were good. There's always a chance that he was successful due to luck, not due to the quality of his plan. There's also a chance that he did well, but that he could have done even better with a stronger plan.

When studying culture, the challenge for marketers is to determine whether culture A. can help to identify a particular group that might be interested in the marketer's products. B. is regional or subregional. C. reinforces stereotypes. D. is related to educational achievement. E. offers opportunities for competitors.

A Different cultures may have different needs and wants that would create opportunities.

Which of the following describes a situation in which a company conducts research to understand what potential employees are seeking, as well as what they think of the company? A. employment marketing B. empowerment marketing C. extended marketing D. exchange marketing E. business-to-employee marketing

A Employment marketing involves undertaking marketing research to understand what potential employees are seeking, as well as what they think about the firm; developing a value proposition and an employment brand image; and communicating the brand image to potential employees.

People who initiate, organize, operate, and assume the risk of a business venture are called A. entrepreneurs. B. leaders. C. managers. D. professionals. E. consultants.

A Entrepreneurs are people who start new business and take major risks.

If Sadaf decides to sell the best ice cream on earth, and intends to establish a strong ethical climate in her organization, during which phase of the strategic marketing planning process should she introduce ethical considerations? A. Planning Phase B. Implementation Phase C. Control Phase D. Experience Phase E. Ethics Phase

A Firms should begin establishing an ethical climate at the planning phase by including ethical statements in the firm's mission or vision statements.

Hisaoki picks up the local newspaper and reads a stinging letter to the editor criticizing his beverage company for supporting a sporting event for handicapped children. The letter writer is critical of a banner displayed at the event, with the logos of alcoholic beverages and Hisaoki's company name. Hisaoki never considered that this problem might arise. In the Framework for Ethical Decision Making, Hisaoki's company failed to A. identify issues. B. promote the firm's corporate social responsibility efforts. C. gather information and identify stakeholders. D. brainstorm and evaluate alternatives. E. choose a course of action.

A Hisaoki failed to identify possible ethical issues in advertising alcoholic beverages at a child-related event.

Garrett 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. According to the Framework for Ethical Decision Making, the first thing Garrett should do is to A. identify issues. B. promote the firm's corporate social responsibility efforts. C. gather information and identify stakeholders. D. brainstorm and evaluate alternatives. E. choose a course of action.

A Identifying potential ethical issues is the first step in the ethical decision making process.

In a recent Gallup survey, which of the following professions was rated lowest in ethical standards? A. Car salespeople B. Lawyers C. Senators D. Real estate agents E. Medical doctors

A In the study shown in the text, car salespeople were rated the least ethical professionals.

When pursuing a market development strategy, expanding into international markets is generally: A. more risky than expansion in domestic markets. B. impossible due to negative attitudes about American products. C. executed with the help of international trade subsidies. D. simplified by creating new products for export markets. E. the only option offering substantial opportunities for growth.

A International expansion is usually riskier because there are many differences--cultural differences, economic considerations, and political and legal differences, for example--to consider.

Almost every organization includes values and ethics as part of their mission statement and includes a set of explicit rules in the company's employee handbook. Once the rules are in place there must be: A. a system of controls that rewards appropriate behavior and punishes inappropriate behavior. B. a Web site where employees can vent their frustration over lapses in ethical behavior. C. weekly reminder seminars to enforce guidelines. D. commitment from customers to accept these rules. E. all of these

A It is not enough to develop rules; the reward system must also be set up to encourage the desired behaviors and punish infractions.

When Johnson & Johnson removed all Tylenol from the shelves after some containers were tampered with, poisoning and killing seven people, the company A. sacrificed short-term profits for long-term credibility. B. was forced to do so following extensive consumer outcry. C. was ordered to do so by the Food and Drug Administration. D. felt that nothing could stop Tylenol from losing most of its customers. E. developed plans to sell the returned Tylenol bottles in less developed countries.

A J&J immediately withdrew Tylenol from the shelves when the problem was discovered, sacrificing short-term profits but protecting their customers' welfare.

When you register your telephone number with the Do Not Call Registry, you are responding to a need for A. privacy. B. enhanced information flow. C. lower phone bills. D. marketing contact. E. tactical communication skills.

A Privacy is a major concern for consumers, and the Federal Trade commission is responding by trying to protect consumers against unwanted telephone solicitations.

When conducting a SWOT analysis, in what phase of the strategic marketing process is an organization presently engaged? A. Planning B. Implementation C. Control D. Segmentation E. Metrics

A SWOT analysis is part of the Planning phase.

Which of the following is LEAST likely to provide a sustainable competitive advantage? A. Lowering prices. B. Having a well-known brand name. C. Achieving high levels of customer satisfaction. D. Using patented technology. E. Creating an efficient supply chain.

A Simply cutting prices is probably the easiest strategic move for a competitor to copy. In contrast, creating an efficient supply chain that lowers your costs, allowing you to pass those savings on to customers in the form of price cuts, can create a sustainable competitive advantage.

For every consumer who purchases a pair of TOMS shoes for $55.00, the company promises that a child will receive a pair of shoes. TOMS shoes is actively engaging in A. corporate social responsibility. B. business ethics. C. marketing ethics. D. environmental marketing. E. overpricing its products.

A TOMS shoes is engaged in corporate social responsibility by making shoes available to poor children.

The primary purpose of the ________ plan is to specify the marketing activities for a specific time. A. marketing B. business C. strategic D. organizational E. resource

A The Marketing Plan specifies the marketing activities for a specific period of time. A business plan is a formal statement of a set of business goals which are believed to be attainable.

Marketers to _______________ income groups attempt to create value by offering one-of-a-kind products and exclusive services. A. upper B. middle C. lower D. lower-middle E. all

A Upper-income consumers expect exclusivity and customization in their purchases.

When Ramona, the keynote speaker at a major business leaders' conference, arrived in the middle of the night at the Ritz-Carlton, she was exhausted and her suit was wrinkled from her ten-hour plane trip. The night clerk found someone to dry clean Ramona's suit and have it ready for her morning presentation. She has been a loyal Ritz-Carlton customer ever since. In this example, Ritz-Carlton demonstrated the macro strategy of A. customer excellence B. operational excellence C. product excellence D. promotional excellence E. global excellence

A The Ritz-Carlton clerk went to extra trouble to offer excellent customer service, which is one way to pursue a customer excellence strategy

When an office supply store offers self-check-out, extended hours at its stores, and online shopping with next day delivery, it is trying to address what type of concern? A. Time-poor society B. Greener consumption C. Health and wellness D. Privacy concerns E. Tech savvy

A The Time Poor Society refers to consumers looking to find short cuts to maximize their time.

Maryam called her auto insurance agent to renew her policy. The agent told her about new types of insurance that are now available--to cover her apartment, or even the engagement ring she just got from her fiancé. The agent was pursuing a ________________ growth strategy. A. product development B. market development C. market penetration D. diversification E. product proliferation

A The agent is trying to sell new types of insurance to a current customer, which is a product development strategy.

When senior citizens or recent immigrants are pressured to take out loans they cannot pay back (often containing high fees, hidden costs, and higher rates of interest), these are referred to as: A. predatory loans. B. opportunistic financing. C. consolidated loans. D. low yield loans. E. prime rate loans.

A The loans provided by predatory lenders, which target vulnerable consumers, are referred to as predatory loans.

The difference between a firm's immediate marketing environment and its macroenvironment is that the macroenvironment is A. external. B. easier to understand. C. easier to control. D. the same as the immediate environment. E. fundamental to creating core competency.

A The macroenvironment consists of factors external to the firm.

Manufacturers who use just-in-time manufacturing systems coordinate closely with suppliers in order to ensure that materials and supplies arrive just before they are needed in the manufacturing process. While just-in-time systems can offer major advantages in terms of inventory costs, they must be carefully managed. If a firm found that its just-in-time system was badly managed, leading to frequent manufacturing delays due to missing parts, this would represent a __________ in a SWOT analysis. A. weakness B. opportunity C. threat D. strength E. business mission

A The management of the just-in-time system is an internal issue, if it is being done badly, that makes it a weakness.

Traditionally, marketing activities have been divided into product, price, place and promotion. Select the term that best describes the four Ps. A. Marketing mix B. Marketing channel C. Marketing plan D. Marketing era E. Marketing implementation

A The marketing mix - or the 4 Ps - consists of product, price place and promotion.

The Johnson & Johnson Credo acknowledges the company's responsibility to A. users of its products, its employees, the community, and its stockholders. B. its stockholders first, its managers, its employees, and its suppliers and vendors. C. domestic markets, other countries in the developed world, and finally countries in the developing world. D. users of its products, the researchers who develop the products, regulators, and its stockholders. E. doctors, nurses, insurance companies, and users of its products.

A The opening of the Credo, quoted in the text, mentions all users of its products (including doctors and nurses), its employees, the communities in which employees live, and its stockholders.

When an accounting firm provides an online training module showcasing real-life decision lapses and their negative effect on the company, they are trying to ensure what type of behavior from their employees? A. ethical B. strategic C. formal D. casual E. secretive

A The question leads us to understand that the company has created an online training to ensure that the employees act ethically.

At one point in the evolution of marketing, the United States entered a buyer's market and the customer became king. Which era is being described? A. Market-oriented B. Sales-oriented C. Production-oriented D. Value-based marketing E. Economic-oriented

A This question is describing the Marketing Era where customers became king.

Jeff is going to sell sporting apparel, which he has already purchased from manufacturers, and has signed a deal agreeing to the volume he would sell monthly. He has researched his competition and talked to some customers and has decided on prices he will charge. Jeff has also developed a plan for promoting his business. Based on this description, which element of the marketing mix does Jeff still need to work on? A. Place B. Product C. Price D. Promotion E. Planning

A This question outlines each item of the marketing mix except for Place, which represents all the activities necessary to get the product to the right customer when the customer wants it. Jeff needs to decide if he will have a physical store (and if so, where), a web site, and so on.

When positioning products relative to competitors' offerings, firms typically are most successful when they focus on opportunities: A. that build on their strengths relative to those of their competitors. B. for diversification. C. in international markets. D. where value-based pricing can be ignored. E. where customer excellence can be substituted for product excellence.

A When firms take advantage of their strengths to develop positioning, they stand a good chance of success as long as these strengths translate into greater value for consumers.

Yuri is considering a new promotional campaign in which he will compare his products to those of his competitors. Before initiating the promotional campaign, Yuri will likely assess his competitors' strengths, weaknesses, and A. likely reaction to Yuri's promotional activities. B. demographics. C. just-in-time processes. D. satisfaction quotient as perceived by customers. E. ethical values.

A Yuri must consider competitors' strengths and weaknesses in order to perform accurate comparisons; he must also understand how competitors will respond to the promotional campaign.

Imagine a country where an anti-marketing dictator orders all marketing efforts to be stopped. Producers are still allowed to produce, and consumers are allowed to consume but no marketing is allowed. In such a situation: A. there will be no advertising, making it difficult to learn about producers' offerings. B. producers will probably over- or underestimate the amount of product customers will buy. C. consumers will have difficulty comparing the value of different producers' offerings. D. producers will have difficulty determining where to ship their products and when. E. all of these.

All of these descriptions refer to functions performed by marketing that would no longer exist if marketing were outlawed.

Political candidates are notorious for appealing to the different beliefs and values of groups of potential voters in different areas of the country. These politicians are appealing to differences in A. popular culture. B. regional culture. C. demographics. D. generational cohorts. E. country culture.

B Regional culture refers to cultural differences across different areas of a country.

In most companies, marketing resource allocation decisions are made at the SBU or ___________ level of the firm. A. corporate B. product line C. customer care D. sales representative E. accounting

B

Karlie likes to post fancy cupcakes and cookies on Pinterest. She also posts pictures of fun kitchen equipment in sherbet colors, and looks for baking ideas and equipment. What type of social media site is Karlie using? A. microblogging B. media-sharing C. thought-sharing D. social networking E. social bookmarking

B

Marketers in the United States are paying increasing attention to ethnic groups because A. they represent a majority of the population in non-urban areas of the country. B. approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups. C. they are more susceptible to marketing messages. D. government subsidies assist marketers attempting to communicate value to these groups. E. country culture is replacing regional culture as a key marketing consideration.

B

Marketers know that, compared to high school graduates who are working full time, college students A. will earn less over their working lifetime. B. spend their disposable income differently. C. are less likely to buy textbooks. D. have almost identical spending patterns. E. are more likely to drink beer and less likely to drink wine.

B

One measure of traffic from visitors on sites, the total page requests, is measured in units called A. clickers. B. hits. C. paths. D. tweets. E. impressions.

B

Research indicates that positively engaged consumers tend to be A. more socially outgoing. B. more profitable consumers. C. older and wealthier than average. D. younger and poorer than average. E. more critical consumers.

B

Social media first began to get more professional and offer more to users A. just after its invention phase in the early 1990s. B. at the turn of the twentieth century, during its industrialization phase. C. when Apple launched the first App Store. D. in the last few years, during its entrepreneurial phase. E. in 2011-2012, when the market became flooded with smartphones.

B

Some companies have been accused of taking advantage of the current social trend of green marketing, positioning their products as environmentally friendly when this may not actually be the case. This is called A. fake greening. B. greenwashing. C. greenbaiting. D. green puffery. E. red marketing.

B

Strategic efforts to supply consumers with environmentally friendly merchandise are called A. the uncommon truth. B. green marketing. C. the green generation. D. the inconvenient truth. E. earth marketing.

B

Supply chain management is also referred to as A. delivery management. B. marketing channel management. C. production management. D. retail management. E. value proposition management.

B

Suppose that Burger King wanted to evaluate social media content to find out how well its most recent advertising campaign was being received by consumers. This could be done using A. Google Analytics. B. sentiment analysis. C. click path analysis. D. keyword analysis. E. gamification.

B

Suppose that the Chipotle restaurant chain held a competition offering free food for a year to the customer who visited—and "checked in"—to the largest number of Chipotle restaurants via the FourSquare mobile app. This promotion would be an example of A. media sharing. B. gamification. C. sentiment analysis. D. a microblog. E. a new social network.

B

The 4E framework for social media guides marketers in using social media effectively to build and deepen customer relationships. Which of the following is NOT one of the four E's in this framework? A. Engage B. Energize C. Excite D. Experience E. Educate

B

This type of thought-sharing site typically provides the highest level of control for companies. A. professional blog B. corporate blog C. personal blog D. Flickr E. Google+

B

When considering income as a demographic variable affecting marketing efforts, marketers need to recognize that A. everyone is equal. B. income in the United States has become more unevenly distributed. C. everyone has been equally affected by the recession. D. there is increasing purchasing power among lower income groups. E. middle-income consumers are quickly becoming upper-income consumers.

B

When developing a social media campaign, what is unique about the copy and images to be used? A. They need to be humorous. B. They need to be updated almost constantly. C. They need to feature only young actors. D. They must appear only in color (not black and white). E. They must appeal to a diverse, multicultural audience.

B

Which of the following actions, if it actually happened, would be the most likely to support and enhance an operational excellence macro strategy? A. Singapore Airlines, installing more comfortable seats in the economy-class cabins of its airplanes. B. 3M Corporation, implementing new software to improve communication with its suppliers. C. adidas, inviting customer suggestions to guide the design of the next generation of Air Jordan shoes. D. Nike, opening hundreds of new company stores in high-traffic shopping areas. E. McDonald's, lowering prices on its coffee drinks.

B

Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of an opportunity? A. The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity. B. Recent consumer studies have indicated that Chinese consumers prefer American cars. C. A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded. D. Due to outdated engine technology, the company's cars get lower gas mileage than those of major competitors. E. The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices.

B

YouTube is an example of what type of social media site? A. microblogging B. media sharing C. thought sharing D. social networking E. social bookmarking

B

__________ are a measure that indicates what percentage of potential customers act as the marketer hopes, either by clicking, buying, or donating. A. Sentiment rates B. Conversion rates C. Bounce rates D. Keyword rates E. Mobilization rates

B

Walmart is leaving no stone unturned in its attempt to position itself as the retail industry's sustainability leader. As explained in Adding Value 3.3, identify the specific requirements Walmart's suppliers must satisfy to help Walmart to achieve its goal. A. Merchandise must be labeled to prove that throughout the process it has upheld regulations for being environmentally friendly. B. Factories must become 20% more energy efficient by 2012. C. Factories must include "Walmart Sustainability Initiative" labels. D. Factories must keep the air conditioning set no lower than 77 degrees Fahrenheit. E. All of these.

B Adding Value 3.3 mentions the requirement that factories become more energy efficient. The other options are not discussed.

Every winter, resort managers in Myrtle Beach, South Carolina, check the exchange rate between the U.S. dollar and the Canadian dollar. In recent years, the exchange has changed from approximately $0.65 Canadian dollars per U.S. dollar, to approximately equal value of both currencies (i.e., $1 Canadian is worth about the same as $1 U.S.). These resort managers should expect A. more South Carolinians visiting Canada. B. more Canadian visitors. C. more South Carolina visitors. D. more visitors from elsewhere in the U.S. E. no change in the profile of their visitors.

B Because the Canadian dollar is worth more in US dollars now, a vacation to South Carolina would cost Canadians less now, and it would be reasonable to expect more of them to visit.

Some banks have begun offering special accounts designed to attract junior high school students. These kids save in such small amounts that the accounts cost banks more to maintain than they are worth. But bankers know that consumers are creatures of habit and hope that the young people they serve now will become adult customers. These banks recognize: A. that operational excellence is an important macro strategy. B. the lifetime value of customers. C. that product excellence leads to loyal customers. D. the importance of making decisions based on short-term results. E. that as long as customers bring in some revenue, costs do not matter

B By spending money now in the hope of receiving revenues later, banks are recognizing that the lifetime value of a customer relationship must be considered when choosing target markets. This does not mean that costs don't matter at all, but it means that a relationship that is initially unprofitable may become profitable as it continues.

In BCG portfolio analysis, products in low-growth markets that have received heavy investment and now have excess funds available to support other products are called: A. stars. B. cash cows. C. question marks. D. dogs. E. anchors.

B Cash cows are product lines with high relative market share as the result of past investment, but in low-growth market. They typically generate excess cash that can be used to support other product lines.

By paying close attention to customer needs and continuously monitoring the environment in which it operates, a good marketer can A. avoid cognitive dissonance. B. identify potential opportunities. C. implement just-in-time marketing promotions. D. create new demographic groups. E. all of these

B Close attention to the marketing environment is one of the best sources of opportunities.

Firms that provide materials, transportation, advertising, accounting, and other goods and services, helping a firm create value for its customers, are called A. cultural cohorts. B. corporate partners. C. cartels. D. cooperatives. E. customers.

B Corporate partners work with the firm to provide goods and services.

The firms that work along with the focal firm to provide goods and services to consumers are viewed as A. cultural cohorts. B. corporate partners. C. cartels. D. cooperatives. E. customers.

B Corporate partners work with the firm to provide goods and services.

The Ethical Decision-Making Framework includes all of the following steps EXCEPT A. identify issues. B. promote the firm's corporate social responsibility efforts. C. gather information and identify stakeholders. D. brainstorm and evaluate alternatives. E. choose a course of action.

B Corporate social responsibility is separate from the Ethical Decision-Making Framework.

As discussed in the chapter opening, Dunkin' Donuts, Starbucks, and McDonald's have all found ways to succeed in the branded coffee market. How have they managed to do this? A. They use higher-quality ingredients than do other firms. B. Each of the firms employs marketing strategies that take advantage of the firm's unique strengths. C. They avoid opening stores near competitors' locations. D. They have agreed to divide the coffee market between them, and thus can avoid competing with each other. E. They have competed in the coffee market for so long that their success is guaranteed.

B Each firm competes in a different part of the market, however, this is not the result of collusion between the companies. Each has developed a strategy that fits its strengths.

In most companies, marketing resource allocation decisions are made at the SBU or ___________ level of the firm. A. corporate B. product line C. customer care D. sales representative E. accounting

B In general, marketing resources are allocated to SBUs or product lines. The corporate level is too high unless it is a very small company with just a single product line, and the sales representative level is generally too low.

Recently, Jason, one of the few Americans who has not registered with the Do Not Call Registry, received a call from a marketer suggesting Jason needed additional insurance since he had just become a father and changed jobs. Jason was shocked and very concerned about A. his financial situation. B. his lack of privacy. C. the marketer's lack of cultural awareness. D. his telephone bill. E. his technological comfort.

B Jason was shocked that the marketer knew his personal information--in other words, that his privacy had been violated.

Marketing enriches society by A. focusing solely on maximizing profits. B. sponsoring charitable events. C. recognizing that the firm can do very little by itself, and so it should stay focused on its own core competencies. D. facilitating the smooth flow of goods through the supply chain. E. coordinating marketing functions with other functional areas in the company.

B Marketing techniques can be applied to social causes as well as to profit-making enterprises, and the firm's employees can support these causes as well.

After conducting STP analysis for her custom auto parts store and developing strategies for each of the four Ps, Monique now has to make _____________ decisions. A. competitive response B. resource allocation C. product line D. market growth E. mission statement

B Monique has chosen a target market, determined positioning strategies, and developed marketing mixes. She now has to consider available resources and determine how they will be allocated across the different options available for implementation.

Some universities offer online degree programs, competing with traditional colleges based on the convenience of taking online courses. These online programs are pursuing which macro strategy? A. Customer excellence B. Locational excellence C. Operational excellence D. Product excellence E. None of these

B Online courses are available anywhere, as long as the student has Internet access and a computer or mobile device. Online delivery may create efficiencies (related to operational excellence) and may produce better service (customer excellence) or a better educational product (product excellence), but we cannot be sure from the question that these forms of excellence are being achieved.

Rock-Bend Company is considering buying out a competing firm and closing most of the competitor's factories. The firm has identified the various stakeholders and their issues and gathered the available data. Everyone with an interest in the issue has engaged in brainstorming and evaluation of alternatives. Management reviewed and refined the alternatives, and then chose a course of action. If the managers are not confident about the decision, they should A. lower their offering price for the competing firm. B. reexamine their alternatives. C. consult customers. D. trust their instincts and move forward. E. choose the least risky option.

B Perhaps the chosen course of action is not truly the best choice. By re-examining the alternatives, the firm may find a better choice.

The shift of population from the "Rust Belt" in the North to the "Sun Belt" in the South and Southwest will likely A. decrease national cultural identity. B. reduce regional cultural differences. C. make it difficult to collect demographic information. D. create a demand for a new generational cohort. E. all of these

B Regional cultures represent differences between regions of a country. The more people move from one region to another, the more the cultures will tend to blend and become more similar.

Quitman sells his business language dictionary to college students throughout the United States. He wants to start selling the book to international students abroad. Quitman wants to pursue a __________________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

B Since Quitman wants to sell an existing product to new customers, this is a market development strategy.

Many entrepreneurs are successful through marketing efforts designed to A. mimic existing products on the market. B. satisfy unfilled needs. C. raise social consciousness. D. gain monopoly power. E. push a new technology even if people aren't ready for it.

B Successful products address unsatisfied needs.

Customer retention programs are based on what concept? A. Customer excellence is the easiest macro strategy to follow. B. Customer relationships should be viewed from a lifetime value perspective. C. It is important to maximize profits in the first few months of a customer relationship. D. Segmentation, targeting, and positioning analysis should not be rushed. E. Firms must spend large amounts of money to retain customers.

B Taking a lifetime value view of customer relationships demonstrates that profits through the entire relationship matter more than short-term profitability. While it is true that STP should not be rushed, this is not the focus of customer retention programs. Maximizing profits at the expense of relationships is almost the opposite of customer retention programs, since it focuses on quick profits at the possible expense of larger profits in the long run. The other two incorrect choices may be true in a few instances but they are often not true, customer excellence can be extremely difficult to achieve, and customer retention does not necessarily demand high levels of spending.

The center of all marketing efforts is A. profits. B. the consumer. C. corporate social responsibility. D. top management. E. the firm.

B The consumer should be at the center of all marketing activities.

During the __________ phase of the strategic marketing planning process, marketers utilize systems to check whether each potential ethical issue raised in earlier phases was addressed. A. implementation B. control C. planning D. assessment E. social responsibility

B The firm assesses its performance regarding ethics during the control phase.

Yvonne knows her firm must look at everything they do from a consumer's point of view. One major difficulty is that a consumer's __________ change(s) over time. A. ethnic background B. needs, wants, and ability to purchase C. culture D. just-in-time processes E. all of these

B The firm must continually scan the environment, because consumers' wants and needs are not static; they change.

Many corporations are shifting from defined benefit to defined contribution retirement programs. When considering changes to retirement programs, the primary stakeholders are the A. shareholders. B. employees. C. customers. D. marketing managers. E. competition.

B The primary stakeholders are the employees whose retirement programs are changing.

Which of the following is the third step in the strategic marketing planning process? A. Define the business mission. B. Identify and evaluate opportunities. C. None of these. D. Implement marketing mix and allocate resources. E. Situation analysis.

B The steps, in order, are: (1) Define the business mission, (2) Situation analysis, (3) Identify and evaluate opportunities, (4) Implement marketing mix and allocate resources, and (5) Evaluate performance.

David travels a great deal in the course of his business. He has noticed ads in many new places, including fortune cookies, baggage claim conveyor belts, on the sides of buses, etc. Marketers would like to reach David, and are responding to concerns about A. privacy of communications. B. the time-poor society. C. green marketing. D. increased costs of air travel. E. federal restrictions on advertising.

B The time-poor society leaves consumers with less time to consume traditional media like TV, radio, newspapers, and magazines, so marketers are increasingly trying non-traditional alternatives that consumers may see while going about their busy lives.

Local television advertising often includes ads for automobiles dealerships using actors trying to create a sense of excitement and urgency among consumers. These ads are attempting to achieve the promotional goal of _____________ potential buyers. A. informing B. persuading C. reminding D. all of these E. none of these

B These ads are trying to persuade consumers to take an action quickly.

Deceptive advertising and promotion of inferior products are examples of __________ ethical issues. A. accounting B. marketing C. social D. finance E. economic

B These are two major issues related to marketing ethics.

The shared meanings, beliefs, morals, values, and customs of a group of people constitute their A. social concerns. B. culture. C. demographics. D. generational cohorts. E. religion.

B This is the definition of culture. Some of the answer options (such as religion) are aspects of culture, but it is a broader concept.

A ______ growth strategy employs the existing marketing offering to reach new market segments. A. product proliferation B. market development C. market penetration D. diversification E. product development

B This is the definition of market development.

__________ is communication by a marketer that informs, persuades, or reminds potential customers about a product. A. Pricing B. Promotion C. Placement D. A relational orientation E. Value cocreation

B This is the definition of promotion.

Denny is considering the question, "Did our actions have a negative impact on any stakeholder group?" Denny is addressing marketing ethical issues in the __________ phase of the strategic marketing planning process. A. planning B. control C. implementation D. brainstorming E. situation analysis

B This question evaluates the outcome of marketing decisions, which takes place in the control phase.

Value-driven firms constantly measure the __________ that customers perceive, compared to the prices of their offerings. A. information B. benefits C. relationships D. rebates E. merchandise

B Value is equal to the benefits received minus the cost (price) paid.

Recently, Walmart announced it would begin selling organic food products. In doing so, Walmart is probably trying to: A. gain government subsidies. B. attract a different market segment. C. reduce its costs. D. save the environment. E. offset cost-based pricing pressure.

B Walmart is probably trying to attract customers who don't shop there now because they want to buy organic products. These customers represent a different market segment for Walmart.

One of the problems for marketing communications to today's time-poor society is consumers have ___________ as an alternative to television or radio. A. DVDs B. MP3 players C. cell phones D. the Internet E. all of these

E

A Groupon offer for discounted theater tickets was sent to targeted customers who had previously purchased movie or theater tickets. This best describes which of the 4E frameworks? A. Engage B. Energize C. Excite D. Experience E. Educate

C

Delta Airlines is among the companies experimenting with selling products and services on their Facebook pages. The idea is to make purchasing even easier for customers who may spend large portions of the day with Facebook active on their computers or mobile devices. There is no need even to navigate to Delta's website--users can book a trip in Delta's "Ticket Agent" application without ever leaving Facebook. Which element of the marketing mix does this represent? A. Product and value creation. B. Price and value capture. C. Place and value delivery. D. Promotion and value communication. E. None of these.

C

Despite its vivid design, the website for Lolly's Bookstore did not seem to attract customers who lingered. In fact, few website visitors actually made a purchase. Which measure does the owner need to examine more closely? A. sentiment analysis B. page views C. bounce rates D. keyword analysis E. mobilization rates

C

Gender roles A. are a constant cultural norm. B. require firms to produce gender neutral advertising for 100 percent of their products. C. have been blurred in the past several years. D. are important, and gender boundaries should never be crossed. E. are unimportant to marketers.

C

How might a technology company like Apple ensure that it behaves in a socially responsible way towards its employees? A. By paying at least minimum wage when the law requires it. B. By adhering to government-mandated safety standards in the workplace. C. By ensuring that pay practices are fair at all levels of the company. D. By ensuring that its packaging materials are recyclable. E. Social responsibility isn't relevant where employees are concerned; they are paid for their work and that's enough.

C

Jordan loves to read and write. She started a blog about books, including writing hints and book reviews. The readership of her blog gradually increased, and eventually publishers started sending her new books, hoping she would review them. Over time, Jordan's blog has changed from a __________ blog to a __________ blog. A. professional; network B. professional; personal C. personal; professional D. personal; social E. social; network

C

Julie is an experienced shopper. She has been doing the family's weekly shopping since she was twelve. She is not very interested in status items, and questions advertising claims. Julie is most likely to be in the __________ generational cohort. A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z

C

Marketers selling to the __________ generational cohort need to recognize that these consumers are not too interested in shopping, are cynical, and are less likely to believe advertising claims than the generation(s) before them. A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z

C

Marketing channel management is related to which of the four Ps? A. Product B. Price C. Place D. Promotion E. Production

C

Part of the social trend toward health and wellness is a concern about the increasing degree of obesity in the United States. In addition, trend-watchers are noting the increasing popularity of A. flu shots. B. high-carbohydrate diets. C. yoga. D. cooking shows on TV. E. all of these.

C

Suppose that Nike wanted to use Facebook to increase awareness of a new line of tennis shoes. Which of the following methods would allow Nike to specifically target Facebook users who have mentioned tennis in their profiles? A. Uploading a coupon to the Nike fan page. B. Encouraging Facebook users to "like" the Nike page so their friends will see this action. C. Placing a Facebook ad. D. Creating a Facebook tab allowing users to view the tennis clothing within Facebook. E. Placing a Facebook link on the Nike corporate website.

C

The __________ generational cohort is characterized by the question, "Why shop at Neiman Marcus when Kohl's and Target are just as good, cheaper, and more convenient?" A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z

C

The ______________ Act created the FDA. A. NAFTA B. Wheeler-Lea C. Federal Food and Drug D. Consumer Product Safety E. Telemarketing Sales

C

The first step in the process of creating a social media campaign is to A. develop a budget. B. identify the target audience. C. set goals. D. design the elements of the campaign. E. monitor the program.

C

Trina is developing a marketing campaign for an organic stain-removal product. As "stain removal" is rather dull, she is trying to educate consumers about the value and uniqueness of the product, and appeal to the environmentally conscious. Which of the following is the BEST social media application for this task? A. YouTube B. LinkedIn C. blog D. FourSquare E. SCVNGR

C

Twitter can help to build a brand's image by educating and engaging consumers. However, one central issue for companies using Twitter is A. limiting the number of tweets per day. B. remuneration for posters. C. timely management of Twitter accounts. D. eliminating negative posts. E. confusion with similar products.

C

What does a Klout score measure? A. click path and bounce rate ratio B. media influence C. social reach, influence, and extended network D. conversion rates E. page views and sales

C

What is the disadvantage for companies in using a "daily budget" such as that offered by Facebook to its advertisers? A. poor cost control B. unable to make adjustments C. may limit positive feedback if ad is very successful D. unattractive to consumers E. encourages negative feedback

C

When measuring social media effectiveness, one important measure is the number of people in an individual's social networks. This is referred to as A. influence. B. the extended network. C. social reach. D. target audience. E. information flow.

C

When someone brags about how many Facebook friends they have, which measure of individual social media influence are they talking about? A. influence B. extended network presence C. social reach D. target audience impact E. information flow

C

Which generation is also known as "Millennials"? A. Baby Boomer B. Gen X C. Gen Y D. Gen Z E. the Digital Natives

C

Which of the following factors, listed in a situation analysis for a major auto manufacturer, is the best example of a threat? A.The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity. B. Recent consumer studies have indicated that Chinese consumers prefer American cars. C. A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded. D. Due to outdated engine technology, the company's cars get lower gas mileage than those of major competitors. E. The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices.

C

Which of the following is the most effective technique used by retailers to combat lost sales from price check apps used by customers shopping in brick and mortar stores? A. offering mobile applications to check other websites B. developing in-store demonstration kiosks for big ticket items C. roaming salespeople with smartphones who can immediately price match competitors D. advertising on Flickr and YouTube E. using FourSquare to build customer patronage

C

Taking steps to encourage customer loyalty is one way to: A. test new products. B. promote efficiency. C. sustain an advantage over competitors. D. develop new pricing strategies. E. improve supply chain effectiveness.

C A customer excellence macro strategy, which is one way to pursue a sustainable competitive advantage, depends in part on encouraging customer loyalty.

"Effective marketing doesn't just happen." It is A. promoted through STP analysis. B. possible only for seasoned marketing executives to achieve. C. planned. D. introduced through control phase SBUs. E. the result of competitor's failures.

C Companies may sometimes succeed by accident, but good marketing requires careful planning.

Late in the day on September 11, 2001, the day of the World Trade Center attacks, Americans purchased all the American flags Walmart stores had available, nationwide. These purchases were indicative of A. regional culture. B. generational cohort characteristics. C. country culture. D. a red/blue marketing campaign. E. urban demographics.

C Country culture consists of a country's shared beliefs and values, which included a strong thread of patriotism after the WTC attacks.

When looking at ethical issues associated with the strategic marketing planning process, questions A. should only be addressed during the evaluation stage. B. should never be asked; only managers should deliberate marketing ethical issues. C. vary at each stage of the process. D. are never asked during the implementation stage. E. always follow a standard format.

C Different questions must be asked at each stage of the strategic marketing planning process.

Using the BCG portfolio analysis, a "dog" should be phased out unless: A. its marketing manager is a champion of the product. B. additional resources could increase its relative market share slightly. C. it complements or boosts the sales of another product. D. the market has a small chance of rebounding. E. None of the above. Dogs should be phased out.

C Dogs can be worth keeping if they assist with the sales of another more successful product.

Anupam's company manufactures industrial ladders. He is concerned that consumers who do not understand ladder safety will purchase these extra-tall ladders and injure themselves. During which phase of the strategic marketing planning process should this issue be addressed? A. Control Phase B. Planning Phase C. Implementation Phase D. Design Phase E. Ethics Phase

C During the Implementation phase, the company can discuss targeting decisions and implementing the marketing mix appropriately to minimize this risk. Perhaps safe use of the ladder should be emphasized in marketing communications, or perhaps steps should be taken to discourage consumers from buying these ladders.

Effective promotion enhances a product or service's A. supply chain management system. B. wholesaling capabilities. C. perceived value. D. design features. E. trialability.

C Effective promotion communicates value, attempting to ensure that customers understand the value being offered.

Compared to consumers in the United States, Europeans are: A. less ethnically diverse. B. a considerably older population. C. more green-consumer conscious. D. less sensitive to environmental concerns. E. more demanding of just-in-time material delivery systems.

C Environmental awareness is more prevalent in Europe than in the US.

Gender roles: A. are a constant cultural norm. B. require firms to produce gender neutral advertising for 100% of their products. C. have been blurred in the past several years. D. are important, and gender boundaries should never be crossed. E. are unimportant to marketers.

C Gender roles have been becoming less fixed and more blurred for the last several years, with men and women no longer playing traditional roles. While gender neutral promotion is used far more often today, there are still some products that are marketed primarily to a specific gender.

Every year, General Mills issues a report discussing how the firm has performed against its own standards of ethical conduct. This report is part of General Mills' __________ phase of their strategic marketing planning process. A. planning B. implementation C. control D. evolution E. marketing mix

C General Mills is evaluating its performance, which is a part of the control phase.

Generational cohorts are groups of people of the same generation who have similar purchase behavior because they have: A. the same number of children. B. similar income levels and levels of educational attainment. C. shared experiences, and are in the same stage of life. D. shared country culture and ethnic backgrounds. E. similar income levels.

C Generational cohorts are presumed to have similar purchase behavior due to similar life experiences and similarity of life stage.

In a SWOT analysis, increasing gasoline prices would represent a potential ______ for manufacturers of electric cars. A. weakness B. threat C. opportunity D. operational advantage E. locational advantage

C Higher gas prices should make consumers more likely to consider buying electric cars, so this is a positive factor. It is external to the firm since it is beyond the firm's control. An external positive factor is an opportunity.

Abercrombie & Fitch, a hip clothing retailer, includes a "Share it!" button on its website. This button encourages an Abercrombie customer to post a link to a product page (perhaps showing a new style of jeans) on Facebook or Twitter. Abercrombie & Fitch hopes that the customer's friends (who are probably very much like current customers) will click the link, visit the page, and make purchases. This is an example of a ______ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

C In this situation, A&F is trying to sell more of its existing products to its current target market, which is a market penetration strategy. Market development would involve attracting new market segments, but the company is assuming that the friends of current customers will be similar to those customers (and thus part of the same market segment).

Lamar owns four dry cleaning stores in the suburbs of Orlando. He recently updated his STP analysis, and has just finished adjusting his marketing mix based on the STP results. His next strategic marketing decision will likely involve: A. how Disney World crowds will impact his business. B. which employees to promote or fire. C. how to allocate resources among his four stores. D. what new government regulations might create opportunities or threats. E. when to shift from a customer excellence to an operational excellence strategy.

C Lamar should already have considered a strategy shift in an earlier step of the planning process, and should have evaluated the impact of Disney World and of possible government regulation in a situation analysis. After STP analysis, he should be considering his implementation plan for the four Ps and deciding how to allocate resources. In this case, he could invest equally in all four stores, or he could adjust his allocations according to the situation at each store.

Laura is reviewing sales data after a recent in-store promotion of her company's diet products. The data show success in some stores and limited response in others. Laura will probably next review the company's: A. financial statements, to investigate current and past profits. B. brand awareness study, to assess national levels of awareness. C. implementation programs, to see if the promotion was handled consistently in the different stores. D. results for other product lines, to see how important diet products are to the firm. E. analysis of national diet trends, to predict future sales levels.

C Laura should seek to understand the differences in implementation programs between the different stores. Perhaps she will find that the successful stores did things the other stores didn't. While studies of national trends in diet products might offer interesting and useful information for the overall planning process, to understand the difference between stores Laura needs to focus at a local level.

Unlike other business functions like accounting or finance, people in marketing are often singled out as the root cause of ethical concerns because A. they are trained in the art of effective persuasive communication. B. they are not considered to be as quantitatively skilled as accounting and finance people. C. they interact directly with consumers. D. the problems that occurred at Enron, Tyco, and WorldCom were caused by marketers. E. doing a good job of marketing requires some degree of unethical behavior.

C Marketers' actions receive more scrutiny because they are responsible for most of the firm's external connections.

LeBron James, Alex Rodriguez, and other athletes are paid huge sums of money by companies for celebrity endorsements. If, endorsements by these athletes create a clear understanding among consumers of the companies' products, they can help with the firm's ________________ strategy. A. product excellence B. targeting C. positioning D. segmentation E. customer excellence

C Positioning is the creation of a clear, distinct understanding of what the product does or represents compared to competitors. Celebrity endorsers are often used to convey this message.

When discussing the marketing planning process, STP stands for: A. Strategies, tactics, and plans. B. Strategize, target, and promote. C. Segmentation, targeting, and positioning. D. Situation analysis, trend spotting, and planning. E. Sustaining, trending, and positioning.

C Segmentation, targeting, and positioning is the third step of the process.

Most banks now have customer relationship software which, when a customer contacts the bank, tells the service representative what types of accounts, loans, and credit cards the customer currently has. Service representatives use this information to sell some of the other services the bank currently offers to these customers. This is a ___________________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

C Selling more services to existing customers is a market penetration growth strategy. If these were newly developed services, this would be a product development example.

The Apple iPad is the market leader in the new--and fast-growing--tablet computer market. Based on BCG portfolio analysis, how should Apple handle allocating resources to the iPad? A. Apple will not need to invest much; instead, the iPad can generate funds to support other product lines. B. Apple should watch the situation but not invest much yet, since the future of the market is uncertain. C. Apple should be prepared to invest heavily to help the iPad to achieve its maximum potential in the market. D. Apple should not invest in this market until it has more competitors. E. Portfolio analysis doesn't offer any advice about resource allocation.

C The iPad has high relative market share in a small but high-growth market. This makes it a Star in the BCG framework, and Stars usually require substantial investment to reach their full potential.

The Ethical Decision-Making Metric II (Exhibit 3.8): A. is a realistic tool to use as long as the firm's profits are not in jeopardy. B. is a good tool for evaluating personal ethics, but fails as a basis for evaluating a firm's actions. C. will be ineffective unless the questions are answered objectively and honestly. D. places the burden on the firm's code of ethics and the actions of senior management. E. can only be used for small, uncomplicated ethical issues.

C The metric offers a set of six tests of an ethics-related decision, reflecting on the decision in a variety of ways. These tests will not be helpful unless all relevant information is considered honestly and without bias.

Even when large discount retailers enter a market, a few small, local retailers survive and prosper. These small retailers have probably developed a(n) ________ that allows them to survive. A. advertising campaign B. plan to evaluate results C. sustainable competitive advantage D. set of performance metrics E. SWOT analysis

C The other items listed could help the retailers to develop or evaluate a plan to achieve a sustainable competitive advantage, but on their own they will not be enough. Small retailers usually cannot compete with larger competitors on price. But they might survive by offering services their customers value (and are willing to pay extra to get), by offering specialty products not carried by larger retailers, or by locating in places where the larger stores don't want to (or can't) locate.

When a pharmaceutical company develops a new medication, it typically applies for a patent in order to prevent competitors from developing copycat products for several years. Pharmaceutical companies apply for patents in order to establish: A. an operational excellence macro strategy. B. a market penetration growth strategy. C. a sustainable competitive advantage. D. an efficient supply chain. E. all of these.

C The patent protects the company's product from imitation, thus creating a competitive advantage that is sustainable through the life of the patent.

The Harvest County School Board is concerned about deteriorating school facilities, combined with a shrinking budget. The board began by studying the issue, and then identified parents, children, teachers, staff, and taxpayers as groups who have a vested interest in the problem. The school board has listened to each group's concerns. In the Ethical Decision-Making Framework, its next action should be to A. identify issues of concern to lawmakers. B. assess impact of its actions beyond the classroom. C. engage in brainstorming and evaluate alternatives. D. choose a course of action. E. evaluate the legal ramifications.

C The school board has completed the first two steps of the Ethical Decision-Making Framework. The third step is to assemble the stakeholders to brainstorm and evaluate alternatives.

Many small businesses whose competitors are national franchises advertise "we are locally owned" or "we have been here since 1951." This is part of these firms': A. business mission. B. market segmentation strategy. C. positioning strategy. D. customer excellence strategy. E. target market.

C These firms are positioning themselves against the competition, emphasizing their local presence in order to suggest that this local experience helps them to do a better job of serving consumers.

A(n) ___________ is a group of products that consumers may use together or perceive as similar in some way. A. SBU B. STP C. product line D. market segment E. promotional service

C This is the definition of a product line.

Astute marketers recognize that the increasing disparity of income between upper and lower-income groups: A. will create inflationary expectations. B. will disappear as ethnicity becomes a stronger cultural determinant. C. creates opportunities to provide value to each group. D. will vanish once the recession ends. E. is attributable to technological expertise of immigrant groups.

C Upper-income, middle-income, and lower-income individuals are all consumers, and all can be offered value in different ways.

Multinational corporations are recognizing their responsibility to the people who make their products A. when public attention might embarrass the corporation. B. if the local government suggests that the company pay bribes to officials. C. even if they aren't their employees. D. unless another firm actually employs the workers. E. when it suits them financially.

C When firms outsource production to manufacturers in other countries, it does not absolve them of responsibility for the working conditions in the factory.

Being socially responsible is generally considered A. a good thing to do only if a company is profitable. B. inappropriate for most firms in today's challenging markets. C. beyond the norms of corporate ethical behavior. D. a necessary part of every firm's strategy. E. the responsibility of corporate-sponsored foundations who can effectively concentrate a firm's good deeds.

C While corporate social responsibility programs can benefit both society and the firm itself, these programs are generally considered "above and beyond" and are not a necessity for every firm.

Four companies dominate the cereal industry. These firms produce in large volumes, promote heavily, and control access to the supermarket shelves through "slotting allowances," which are payments to retailers in return for shelf space. Combined, these four firms have: A. identical marketing mixes. B. all of these. C. a sustainable competitive advantage. D. achieved product excellence. E. violated laws governing competition.

C While some of the other statements might be true, we don't have enough information in the question to draw those conclusions. But what's been described is a sustainable competitive advantage because it's so difficult for another competitor to break into the market.

The idea of value-based marketing requires firms to charge a price that: A. covers costs and generates a modest profit. B. includes the value of the effort the firm put into the product or service. C. captures the value customers perceive that they are receiving. D. prioritizes customer excellence above operational excellence. E. matches competitors' prices.

C . Value-based marketing is related to customers' perceived value.

A meat packing company discovers that six months ago it unknowingly distributed meat from a cloned cow. The firm is unaware of any specific risks to humans consuming the meat; however, some scientists have raised questions, and some consumers are afraid of possible future problems. The meat company has to decide whether or not to make this matter public. How should it begin the process of making an ethical decision? A. Brainstorm the available alternatives. B. Ask its managers to vote for or against public disclosure. C. Let the board of directors decide what to do. D. Identify the issues raised by the situation. E. Find out who purchased the meat, and offer them refunds in return for their silence.

D

Alan wants to upgrade his look before a job interview. A friend tells him about a men's clothing line that allows potential customers to virtually try on suits and see what looks best. It even offers an interactive "custom fit" feature. After checking out his options, Alan takes his measurements and orders a suit without ever leaving his office. Virtually trying on a suit provides best describes which of the 4E frameworks? A. Engage B. Energize C. Excite D. Experience E. Educate

D

By offering environmentally responsible products, green marketers A. undercut prices of non-environmentally responsible marketers. B. keep costs much lower than those of competitors. C. make consumers feel guilty for buying other products. D. add value that other products do not have. E. all of these

D

Companies can find out a lot about customers using sentiment analysis on sites like Facebook and Twitter, or put another way, by A. reacting. B. exciting. C. engaging. D. listening. E. educating.

D

Companies that specialize in sentiment analysis are LESS likely to look at __________ for data. A. personal blogs B. Facebook C. Twitter D. YouTube E. Mommy blogs

D

When choosing marketing communication methods, the most effective and efficient option depends on: A. the customers. B. the value created. C. the message. D. all of these. E. none of these.

D All of these factors must be considered in order to develop effective marketing communications.

Gretchen has a job that requires working late several nights a week. This puts a lot of strain on her to find time to shop and prepare meals for her family. Grocery stores recognize the importance of consumers like Gretchen and have responded in all of the following ways except A. creating "ready to heat" meals that would allow Gretchen to have freshly prepared meals. B. developing meals with precut and premeasured ingredients that would allow Gretchen to cook them at home. C. staying open late. D. advertising their products heavily on daytime television. E. using creative check-out procedures so Gretchen can finish her shopping quickly.

D

How might Starbucks ensure that it behaves in a socially responsible way towards members of its supply chain? A. By paying its employees minimum wage as required by law. B. By using cups made from recycled paper. C. By offering healthy drinks and snacks in its stores. D. By purchasing coffee beans from suppliers who pay coffee growers a fair price. E. Social responsibility isn't relevant where channel partners are concerned; it has to do with serving society as a whole.

D

Jessica is still in college, but is very motivated to earn some extra money in her spare time. She is quite knowledgeable regarding politics, and was hired by a candidate to generate student interest by posting online articles on student-read sites. Jessica's new job most likely has the title of A. online customer service representative. B. social media strategist. C. community manager. D. blogger. E. search engine marketing associate.

D

Julian and his friends log into an app at the mall. They follow a series of challenges in participating stores, which include snapping pictures of different products and bumping phones with other shoppers. The winner receives a coupon for the food court. What game are they participating in? A. Snapette B. NOWNESS C. Pose D. SCVNGR E. Snapchat

D

LinkedIn is an example of what type of social media site? A. microblogging B. media sharing C. thought sharing D. social networking E. social bookmarking

D

Michaela is a financial consultant in Manhattan. She uses her commute time to and from work to post comments about recent financial news on LinkedIn and Twitter, but she's much too busy to bother with Facebook. What segment of social networking users does Michaela belong to? A. Bonders B. Creators C. Listeners D. Professionals E. Sharers

D

Nordstrom's, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputation for excellent customer service has probably resulted in: A. product design excellence. B. mission statement satisfaction. C. sustainable price decreases. D. a sustainable competitive advantage. E. producer excellence.

D

Since the late 1970s, most American families have seen their income growth stagnate, with income rising only slightly more than inflation. This has changed many Americans consumers' concept of A. culture. B. demographics. C. scenario planning. D. value. E. green marketing.

D

The factors in the immediate marketing environment include the actions of the A. company. B. company's competitors. C. company's corporate partners. D. all of these E. none of these

D

The global athletic footwear market is expected to experience only very slow growth over the next several years. Nike is the market leader, with a market share of approximately 33 percent. According to Boston Consulting Group portfolio analysis, how should Nike treat its athletic shoe business? A. Nike will probably have to invest heavily in the athletic shoe business, including extensive promotions and new production facilities. B. Nike should consider exiting the athletic shoe market. C. Nike should stop investing in its athletic shoe business; it has already reaped all the benefits it is likely to receive. D. Nike's athletic shoe business still requires some investment, but is likely to produce excess resources that can be invested in other divisions of the company. E. Nike should invest in the athletic shoe market only if it helps to boost the sales of other products in fast-growing markets.

D

What is Google+? A. an experimental, advanced search engine B. a website where users can work together to create documents C. a site offering analytical information about website usage D. a social networking site E. a video sharing site intended for businesses

D

What is a microblog? A. A blog whose owner doesn't post very often. B. A blog that supports only links to other posts. C. A blog run by a small business. D. A blog service that supports only short posts. E. A blog that targets a very small consumer group.

D

When Nike, the prominent athletic shoe manufacturer, branched out from selling only athletic shoes to also offering athletic clothing and gym bags, what type of growth strategy did this represent? A. Market penetration B. Product penetration C. Market development D. Product development E. Diversification

D

When a company that uses social media runs a contest online, it will measure its effectiveness in a variety of ways. One such measure is the conversion rate. The conversion rate for the contest promotion would be A. the number of people who entered the contest. B. the number of people who entered the contest plus the number of people who visited the page describing the contest. C. the number of people who visited the page describing the contest. D. the percentage of visitors to the page describing the contest who entered the contest. E. the percentage of fans of the company's page who learned about the contest.

D

Which statement about the changing diversity in the United States is TRUE? A. Minorities now represent almost half of the population in the United States. B. In spite of increases in the Hispanic population, Hispanic buying power is expected to maintain its current level. C. Hispanics differ vastly from other groups in America in terms of consumer behavior. D. African American U.S. households are more affluent than previous studies suggested. E. Asian Americans are the slowest growing minority population.

D

The goal of a customer excellence strategy is to gain loyal customers. Customer loyalty can be developed through: A. having a strong brand B. offering unique merchandise C. providing superior customer service D. all of these E. none of these

D A customer excellence strategy relies on all of these methods,0 among others. In essence, firms that provide superior value are most likely to have loyal customers.

After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision making situation, __________ should engage in brainstorming and evaluation of alternatives. A. the senior managers most involved B. key customers C. elected officials D. all parties relevant to the decision E. any individuals with competing interests

D All relevant parties should participate in brainstorming and evaluation.

Since the late 1970s, most American families have seen their income growth stagnate, with income rising only slightly more than inflation. This has changed many Americans consumers' concept of: A. culture. B. demographics. C. scenario planning. D. value. E. green marketing.

D American consumers are increasingly aware of and sensitive to the value provided by different product offerings.

Elizabeth has developed a promotional campaign for a client that promises a hefty return for her cashpoor business. While the campaign does not violate any laws, it might be considered manipulative and misleading, especially when targeted toward senior citizens. If Elizabeth were to consult the AMA Code of Ethics she would discover that: A. unusually creative campaigns can be prioritized above ethical concerns if the client or firm is in financial danger. B. if her client approves the campaign, she does not need to worry about ethical issues. C. the General Norms and Ethical Values are too vague to be useful, and she should rely on her own personal ethics. D. her campaign might be difficult to justify ethically, despite its creativity and its ability to meet both her needs and those of her client. E. there are few practical guidelines in situations like these.

D As in the saying, "The ends do not justify the means," the fact that the campaign might be successful does not eliminate ethical concerns. The AMA Code of Ethics should provide useful guidance.

In recent years, cellular (mobile) service providers have worked hard to eliminate "dead zones," providing customers with service wherever they traveled. By working to make the network available in more locations, cellular service companies were focusing on __________ value creation. A. product B. price C. promotion D. place E. financial

D By making sure the mobile network is available to use where and when customers want it, cellular service companies are working on place value creation.

When evaluating competitors, marketers need to assess competitors' A. strengths. B. weaknesses. C. likely reaction to marketer's activities. D. all of these E. none of these

D Competitors' weaknesses, if they match the firm's core competencies, may offer opportunities. In addition, it is important to understand where a strong competitor may be hard to compete with, and to anticipate how competitors may respond to a firm's planned actions.

Most banks implement customer retention programs aimed at their best customers. They do this because they know that retaining customers usually results in: A. a product development growth strategy. B. an operational advantage. C. opportunities for diversification. D. increased long term profits. E. more clearly defined market segments.

D Customer retention programs recognize that it is often worth spending something in the short term to keep a customer in the long term. This approach looks at the value of the customer relationship on a lifetime basis instead of considering only the current transaction.

In its Campaign for Real Beauty, Dove was able to connect with important parts of its customer base by: A. creating high impact campaigns at a lower cost. B. expanding beyond traditional constraints of advertising. C. connecting directly with customers via the Internet. D. All of these. E. None of these.

D Dove's Campaign for Real Beauty, launched on the Internet, allowed the brand to reach out directly to customers, bypassing the typical constraints of mass media advertising and also saving money.

Ironically, while the leaders of Enron Corporation were manipulating the company's finances for their personal benefit, the company was a major donor to Houston area charities. Enron had unethical business practices, but was also A. practicing marketing ethics. B. falsifying the company's finances through charitable donations. C. creating a local ethical business climate. D. demonstrating corporate social responsibility. E. manipulating the public sentiment for its own benefit.

D Enron was exhibiting unethical behavior through its financial manipulation, while at the same time demonstrating social responsibility through its charitable donations.

Alicia has been asked to approve a marketing campaign which, although it is not illegal, promotes food products to children. She is concerned that the food products are not particularly nutritious, although they are not as bad for children as some others sold by competitors. She reviews the tests in the Ethical Decision-Making Metric, and she decides her best course of action is to A. ignore the metric as unworkable, since the campaign might pass some of the tests and fail others. B. consider the profit potential first; then explore the vague tests in the metric. C. not worry about the children; their parents are likely to make the buying decision, and they should be able to decide for themselves. D. put the campaign on hold while she explores with the staff how they approached the ethical issues. E. consult the firm's code of ethics for guidance and leave personal ethical considerations out of the decision-making process.

D If Alicia has concerns arising out of her personal ethics, she needs to pause and ask more questions before making a go/no-go decision.

One of Big Ben Clock Company's customers has complained to the home office about high-pressure sales tactics used by one of Big Ben's sales representatives. The company's code of ethics explicitly directs sales personnel not to engage in such practices. The manager of Big Ben will likely: A. assess whether or not the organization has a strong ethical climate. B. determine what explicit rules exist for governing the firm's transactions. C. review the current code of ethics to see if it is explicit enough. D. determine an appropriate punishment for the sales representative. E. all of these

D In this case, the manager is not evaluating the sufficiency of existing ethical standards. Instead, the manager is dealing with a violation of an explicit requirement of the existing standards. In this case, unless there is reason to believe that the violation did not actually occur, the manager should consider appropriate punishment.

When marketers monitor the economic situation affecting their target markets, they are likely to monitor changes in all of the following EXCEPT A. purchasing power. B. interest rates. C. inflation. D. age. E. currency exchange rates.

D Income, interest rates, and inflation are among the economic factors.

Sodexho is a corporation that manages school cafeterias, university dining halls, mess halls at military bases, concession stands at sports arenas, and other large-scale food service facilities. If Sodexho were to begin to sell individual frozen meals in supermarkets, it would be pursuing a ______ growth strategy A. product development B. market development C. market penetration D. diversification E. product proliferation

D Individually packaged frozen meals would be a new product area for Sodexho (even though it is still a food, the manufacturing process would be quite different from the bulk food service required by cafeterias and dining halls). Consumers in grocery stores would also be a new market, since Sodexho currently serves universities, the military, and the like. Thus, with a new market and a new product this would be an example of diversification.

Ryan knows that one of the goals of value-based marketing is to provide greater value to consumers than competitors offer. To accomplish this goal, Ryan's firm must look at everything it does A. in order to value each person in the organization. B. for each generational cohort. C. to avoid cultural clashes. D. from a customer's point of view. E. to sensitize organization members to ethical values.

D It is the customer's perception of value that matters, and so the firm's plans must be considered from the customer's point of view.

To determine how attractive a particular market is in using the BCG portfolio analysis, __________________ is established as one axis. A. competitive intensity B. sales dollars C. market size D. market growth rate E. market profit potential

D The BGC matrix uses market growth rate on one axis and relative market share on the other. The other factors are not unimportant--they are simply not part of BGC portfolio analysis.

Johnson and Johnson recently realized that at least 1,000 lots of products specifically children's medication Tylenol, Motrin, Zyrtec and Benadryl contained too high a concentration of their active ingredient. In order to behave ethically, Johnson and Johnson should: A. continue production and sale of the products while investigating. B. delay further production until the issue is identified. C. recall defective products that have been sold. D. delay further production until the issue is identified and recall defective products already sold. E. sell the products, but with a warning label suggesting that smaller doses be taken.

D The Ethical Decision-Making Metric asks, among other things, whether or not the decision produces the most good and the least harm to the relevant stakeholders. Sales must be stopped, and purchased products recalled, to avoid harming children who might take the drugs.

The immediate factors affecting consumers include the actions of the: A. company. B. company's competitors. C. company's corporate partners. D. all of these. E. none of these.

D The company, its competitors, and its corporate partners are the three components of the immediate environment.

In the immediate marketing environment, one key factor that affects the consumer is A. demographics. B. cultural values. C. social trends. D. the firm itself. E. technological advances.

D The components of the immediate environment are the firm, its competitors, and its corporate partners.

When making decisions, managers often have to decide between doing what is beneficial for them (and possibly the firm) in the short run, and doing what is right and beneficial for the firm and for society in the long run. To address this conflict, a firm A. must evaluate its quarterly profit statement from an ethics standpoint. B. must state its long-term goals in general terms, so as to not interfere with managers' short-term goals. C. must always put society's needs ahead of the firm's needs. D. must ensure that long-term goals are aligned with the short-term goals of each individual within the firm. E. do all of these.

D The firm does not need to always put society's needs above its own; however, it is important to ensure that short-term behavior supports long-term goals.

Lionel is asked to conduct an STP analysis for his firm. The first step he should perform in this analysis is to: A. develop a business mission statement. B. choose the best target markets. C. reposition existing segments. D. divide the marketplace into subgroups. E. conduct a SWOT analysis.

D The first stage of an STP analysis is segmentation, which involves dividing the market into groups. Business mission development and SWOT analysis take place before STP analysis starts, and targeting and positioning are later stages in STP analysis.

Which of the following is not one of the key inputs a firm needs to understand and appreciate in terms of corporate social responsibility (CSR)? A. Consumers B. Company C. Cause D. Community E. None of these is a key input; these are outputs.

D The key inputs are the consumer, the company, and the cause or issue.

Portfolio analysis is a useful and powerful tool, but firms often need to take a more balanced approach because: A. measures are difficult to obtain and project. B. classifications can become self-fulfilling prophecies and strengths and weaknesses are distorted. C. substitute approaches can offer different insights. D. All of these. E. None of these.

D These are all common criticisms of portfolio analysis tools.

Products that may damage the environment, the use of sweatshop labor, and the marketing of dangerous products are examples of A. internal, controllable marketing issues. B. issues that don't even need to be discussed in ethical firms. C. marketing issues but not ethical issues. D. marketing ethical issues. E. ethical issues but not marketing issues.

D These are examples of ethical issues of concern to marketers. Even in a firm with a strong ethical climate, some business opportunities that arise may raise ethical concerns and need to be considered in the context of the firm's ethical values.

Narbonne's, an upscale department store, instructs sales personnel that whenever a customer asks where something is, they should drop what they are doing and offer to escort the customer to what they are looking for. The company's reputation for excellent customer service has probably resulted in: A. product design excellence. B. mission statement satisfaction. C. sustainable price decreases. D. a sustainable competitive advantage. E. producer excellence.

D This is a good example of a potential sustainable competitive advantage based on customer service (i.e., a customer excellence strategy).

Introducing newly developed products or services to a market segment the company is not currently serving is called: A. product development B. market development C. market penetration D. diversification E. product proliferation

D This is the definition of diversification.

______ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive understanding of what a product does or represents in comparison with competing products. A. Targeting B. Market segmentation C. A sustainable competitive advantage D. Positioning E. A customer excellence strategy

D This is the definition of positioning, which is the final activity in STP analysis.

Value creation through Place decisions for a consumer product involves: A. putting the product in the front of the store. B. designing creative displays to capture consumers' attention. C. pricing products differently at different stores. D. making sure the product is available in the stores where customers will want to find it, and that it is always in stock so they can buy it when they want to. E. focusing exclusively on Internet sales to reduce supply chain costs.

D Value creation through Place has to do with making sure the product is available when and where the customer wants it. Some of the other options (like the creative displays, or putting the product in the front of the store) may cause more consumers to notice the product, but the correct answer is the one that best describes ensuring that the product is available to the customer.

Edward is seriously considering developing his entry-level marketing position into a full-fledged career. His mentor suggested he learn and demonstrate the Ethical Values in the AMA Code of Ethics. Which of the following is not one of those Ethical Values? A. Honesty when dealing with customers and stakeholders. B. Fairness in balancing the needs of both buyers and sellers. C. Respect for the human dignity of all stakeholders. D. Dedication to increasing the return on investment for shareholders. E. Citizenship to fulfill economic, legal, philanthropic and social responsibilities strategically.

D While corporations do have a duty to their shareholders, the AMA Code of Ethics does not deal with this issue.

3M involves its customers in the process of developing new products. In this way, it can benefit from current customers' insights and develop new products that will meet these customers' needs. 3M is pursuing a ______ growth strategy. A. Diversification B. Market development C. Market penetration D. Product development E. Product penetration

D While some of the new products may attract new markets (which would represent diversification), the Initiative described is aimed primarily at developing new products to serve current customers, and so represents a product development strategy.

The strategic marketing planning process: A. is a five-step process that should always be completed in order. B. is frequently used in reverse. C. begins with establishing specific, measurable outcomes. D. is not always sequential. E. forces marketing managers to think rationally.

D While the steps of the process are often executed in order, sometimes a firm may jump from a later step back to an earlier one to make adjustments. Metrics are established later in the process. And while the planning process may help managers to think more clearly, irrational plans can still be developed!

Zara is a women's clothing retailer headquartered in Spain, with stores located in many countries. Zara has developed a "quick response" system that allows store merchandise to be adjusted rapidly to fit changing customer preferences. Every aspect of Zara's operation is optimized for this system, making it difficult for competitors like The Gap to duplicate. Zara has established: A. customer loyalty. B. locational excellence. C. a diversification growth strategy. D. a sustainable competitive advantage. E. a related diversification opportunity.

D Zara has established an advantage that is difficult to copy - this is a sustainable competitive advantage.

A former advertising campaign for Geico Insurance used the slogan, "So easy, even a caveman could do it" to emphasize the ease of buying insurance on Geico's website. This campaign was part of Geico's: A. mission statement. B. market segmentation plan. C. product strategy. D. customer excellence strategy. E. positioning strategy.

E

Ask.com is a website that invites site users to ask questions to be answered by other users. Questions cover a wide range of topics, from "How do I get rid of blemishes overnight?" to "What does the Federal Reserve do when it wants to increase the quantity of money in circulation?" Site visitors rate the various answers provided, and answers are displayed according to their ratings. Which segment of social networking users would be most likely to enjoy answering questions on Ask.com? A. Bonders B. Creators C. Listeners D. Professionals E. Sharers

E

For some products, marketers can combine education level with other data like occupation and income to obtain A. a sense of consumers' regional culture. B. consumers' value sensitivity quotient (VSQ). C. the educational value equation. D. complete profiles of individual consumers. E. useful predictions of purchase behavior.

E

From a marketing perspective, what role is played by professional bloggers? A. engaging customers on behalf of companies B. introducing new products to the marketplace C. sharing videos and photos of products D. recruiting employees E. reviewing and giving product recommendations

E

How is the cost to companies and entrepreneurs using Google Analytics calculated? A. a few cents per 100 hits B. correlated to conversion rates of website C. flat fee D. free for individuals; corporate rates based on usage E. free for everyone

E

If McDonald's wanted to change its marketing strategy in response to the social trends outlined in the text, it might consider all of the following ideas EXCEPT A. offering an expanded menu of healthy options. B. speeding up drive-through service. C. using recycled paper in its food packaging. D. expanding its low-cost menu options. E. creating an advertising campaign to target elementary school children.

E

In its discussion of Nike and adidas, two major athletic shoe manufacturers, the text mentions that Nike has purchased Umbro, a sports brand that has appealed mainly to soccer (European football) enthusiasts in the past. This action suggests that Nike intends to compete head to head with adidas, which got its start designing soccer shoes. On a SWOT analysis for adidas, how should Nike's acquisition of Umbro be categorized? A. Strength B. Opportunity C. Weakness D. Segment E. Threat

E

Jeri is a software developer who has worked in IT for the past ten years. She stays up to date on the latest technologies. Whenever one of her Facebook friends asks a question about technology—such as a request for help with a software problem, or a request for a product recommendation—Jeri always makes time to respond. What segment of social networking users does Jeri belong to? A. Bonders B. Creators C. Listeners D. Professionals E. Sharers

E

Suppose your university made a sizable investment in its career services--additional counselors, increased efforts to bring in recruiters, and other services aimed at helping students to find jobs. This investment would enhance the university's _____________ in an attempt to create value for students and recent graduates. A. segmentation strategy B. place strategy C. locational excellence strategy D. diversification strategy E. product strategy

E

The final step in the process of creating a social media campaign is to A. develop a budget. B. identify the target audience. C. set goals. D. design the elements of the campaign. E. monitor the program.

E

The members of the __________ generational cohort tend to share preferences for TV shows and video games with their parents. A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z

E

The members of the __________ generational cohort were born into a world where the Internet and extensive digital technologies already existed. A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z

E

The poorest 10 percent of the U.S. population earned an average of _______ in 2010. A. $49,000 B. $33,500 C. $22,300 D. $10,100 E. $5,800

E

The reality that marketers face consumers who are "time poor" is illustrated by the fact that A. kids and parents are busier than ever. B. consumers have many more choices about how to spend their limited leisure hours. C. consumers compensate for less leisure time by multitasking. D. consumers are working more hours and have fewer leisure time hours. E. all of these.

E

Typical demographic data include A. gender. B. income. C. race. D. geographic region. E. all of these.

E

What is the appeal of Pinterest to marketers? A. allows big-box stores to compete on a cost-basis with online retailers B. helps create exclusive merchandise for retailers C. creates excitement about service or products through gamification D. generates customer engagement with products E. allows markets to receive unlimited product exposure from fans

E

Which of the following groups has never lived without easy access to the Internet and other digital technologies? A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z

E

While waiting in line to make a purchase at Best Buy, Joanie sees signs reminding her to visit their website for online specials and to sign up right now on her smartphone for the Best Buy Loyalty Rewards Program. Others signs remind her that Best Buy will match competitors' prices on any item they sell. This is an example of which 4E framework? A. Engage B. Energize C. Excite D. Experience E. Educate

E

Karen is a typical time-poor American consumer. She works 40+ hours per week, tries to keep up with her children's educational and recreational schedules, and often finds herself up late at night doing laundry while responding to e-mail messages and watching her few favorite shows recorded on Tivo. In response to the many American consumers whose lives are like Karen's, marketers are shifting advertising expenditures to: A. billboards B. movie screens C. buses and subways D. Internet ads E. all of these

E Advertising dollars are switching to these media because consumers are likely to see them as they go about their busy lives.

Greta is the marketing director for the Pump-N-Slurp convenience store chain. She recently developed a marketing plan for the firm and presented it to company executives. Which of the following did Greta probably include in Pump-N-Slurp's marketing plan? A. Specific plans for each of the four Ps. B. Marketing objectives. C. Opportunities for the firm. D. Perceived weaknesses of the firm. E. All of these.

E All of these are part of the marketing planning process. Marketing objectives will be derived from the business mission and corporate objectives, opportunities and weaknesses are part of the situation analysis, and plans for the four Ps will be part of the positioning strategy.

Tanya has created a distinctive line of jams, fruit butters and preserves using local, organically grown fruits. She sells these to specialty stores, whose upscale customers appreciate the products and can afford to pay the premium price needed to cover costs. Tanya is concerned about creating value across the entire supply chain, which means that: A. she is concerned that her suppliers provide her with the high-quality ingredients she needs at a price she can afford. B. she is concerned that the specialty stores will be able to pay the premium price she needs to charge, but at a price that still allows the stores to sell the products at prices their customers are willing to pay. C. she would like to create effective relationships with her suppliers and her customers to support the effective marketing of the product to the ultimate customer. D. she wants to ensure that her suppliers adhere carefully to organic farming practices so that she can offer this benefit to her customers. E. All of these.

E All of these factors contribute to effective management of the supply chain.

After a rash of embarrassing and potentially illegal activities in her organization, Jane decides to evaluate the organization's ethical standards and practices. Jane will assess: A. whether or not the organization has a strong ethical climate. B. what explicit rules exist for governing the firm's transactions. C. the current code of ethics. D. what system is in place for rewarding and punishing behavior. E. all of these

E All of these factors must be in place, and implemented well, in order to maximize the likelihood that employees will behave ethically and in accordance with the firm's values.

Kathy reviews her division's quarterly results and sees that some units exceeded goals while others did not. Next, she will attempt to determine why performance of the different units varied, and whether the variation: A. created a net benefit or loss. B. should be reported to senior executives or not. C. was consistent with the company's mission statement. D. offers opportunities for diversification. E. was due to factors within or outside the firm's control.

E Although the variations may point to opportunities for improvement in some units of the division, it may also be that some units faced challenges outside their control that were not faced by other units.

Firms achieve ___________ through efficient procedures and excellent supply chain management. A. customer excellence B. locational excellence C. customer loyalty D. value-based pricing E. operational excellence

E An operational excellence strategy depends on efficiency throughout the supply chain in order to keep costs low.

In 2007, Apple Computer Company introduced its new iPhone, adding a cellular telephone, a camera, and Internet access to its iPod. The company was pursuing a(n) __________ strategy. A. market development B. market penetration C. operational excellence D. customer excellence E. product development

E Apple was creating a new product for its existing customers, which is a product development strategy. Some people might believe that the iPhone wasn't for Apple's existing customers, but was for new customers, which would make "diversification" the best answer. But since that answer isn't offered, "product development" is the best of the remaining examples.

In mid-2010, Hewlett-Packard Company (HP) acquired Palm Computing, Inc., a manufacturer of personal devices and smart phones. Before deciding to acquire the company, strategic planners at HP spent time thinking about how Palm and HP would "fit" together, and how the acquisition might change HP's core goals and objectives. The strategic planners were engaged in the ____________ step of the strategic marketing planning process. A. situation analysis B. implement marketing mix and allocate resources C. identify and evaluate opportunities D. evaluate performance E. define the business mission

E By considering questions of "fit" and changing objectives, the planners are considering HP's business mission and how the acquisition might change it.

Firms and organizations use customer relationship management to: A. provide their best customers with the products they need. B. systematically collect information about customers. C. offer special promotions that appeal to different groups of customers. D. target their best customers for special attention. E. all of these.

E CRM includes all of the listed activities, combining together in an effort to build customer loyalty.

For his class in ethics, Isaac examined the practices of a number of nationally focused and international firms to determine how ethics and corporate social responsibility were being practiced. He found: A. firms could be both ethical and socially responsible. B. firms could be ethical and yet not socially responsible. C. firms could be neither ethical nor socially responsible and still be part of the business community. D. firms could have questionable ethical practices yet donate money to the community for socially responsible causes. E. all of these.

E Ethics and social responsibility are separate ideas, and a firm can do a good job of neither, either, or both.

Allen is in the marketing department of a mid-sized firm that develops and sells communications systems. He is proud of the Human Resources area in the company that provides the firm with excellent employees. Allen himself really enjoys his work, but he knows the work of HR helps create an advantage for the firm because: A. customers appreciate the kind of service that knowledgeable employees provide. B. employees play a major role in the success of the firm. C. it is easier to communicate with and inspire the customer if the employees believe in what the firm is doing. D. building customer loyalty depends on a committed workforce. E. All of these.

E Excellence in human resources management is one aspect of operational excellence, for all of the reasons listed.

Frank found himself in the midst of an ethical dilemma at work, and was using an ethical decisionmaking metric like the one shown in the text to clarify his professional and personal values. Frank was most likely in which phase of the Ethical Decision Making Framework? A. Identifying the issues B. Separating personal from business ethics C. Gathering information and identifying stakeholders D. Brainstorming and evaluating alternatives E. Choosing a course of action

E Frank was probably ready to make a decision, and wanted to test the decision to see if it was the right one.

Gerald's Tire Store sets itself apart from competitors by the extra attention it pays to providing fast, courteous service in a clean, professional looking environment. Gerald's has used this strategy for over 40 years, expanding to 15 outlets. Gerald's Tire Store has created a ___________________ to create and deliver value and to develop a sustainable competitive advantage. A. segmentation strategy B. set of metrics C. market development strategy D. diversification strategy E. macro, or overarching, strategy

E Gerald's Tire Store has a macro strategy focusing primarily on customer excellence, based on the quality of customer service mentioned in the question.

Marketers want their firms to develop efficient operations because this kind of efficiency: A. usually leads to lower prices or greater pricing flexibility. B. allows the firm to offer greater value to customers. C. makes it easier to get the products customers want to them when they want them. D. can lead to more attractive margins. E. All of these

E Operational efficiency offers the firm a wide range of benefits, many of which are related to pricing and margins.

New real estate disclosure regulations require sellers and their agents to tell prospective buyers about any existing problems. Previously, they were only expected to answer buyers' questions. The new regulation addressed the marketing ethical problem of A. high-pressure sales techniques. B. deceptive pricing tactics. C. misrepresentation of company data. D. misleading advertising. E. withholding information.

E Previously, real estate agents could withhold information from buyers unless the buyers explicitly asked for it.

The Johnson & Johnson Credo A. was a response to the Tylenol incident. B. proved ineffective when the company needed to act in the Tylenol crisis, which was a clear lesson to other companies to update similar documents. C. was copied by all other pharmaceutical companies. D. offers an extremely detailed description of potential problems for the company. E. has guided the firm since it was written in the 1940s.

E Robert Wood Johnson wrote the Credo in 1943, and it has guided J&J through several crises.

Many executives and corporate boards of directors do not perceive social responsibility as part of their mission or responsibility. These business leaders consider corporate social responsibility to be A. a basic requirement of any business. B. the equivalent of the AMA ethical value, "Do no harm." C. the key to operational effectiveness. D. a component of basic business ethics. E. beyond the norms of corporate ethical behavior.

E Some managers believe that firms should focus on increasing shareholder value and need not concern themselves with social responsibility.

A recent court ruling banned the use of terms such as "light, low tar, natural, or mild" by tobacco companies. The stakeholders for this decision are the: A. shareholders. B. employees. C. customers. D. marketing managers. E. all of these

E Stakeholders are individuals who have a stake in the decision. Shareholders can be affected if sales are impacted; the same is true of employees and marketing managers. Customers will be affected as well, if they used to specifically seek cigarettes with those descriptions.

Samantha is charged with assessing her company's external environment as part of a SWOT analysis. Samantha will study her company's: A. strengths. B. opportunities. C. strengths and weaknesses. D. weaknesses. E. opportunities and threats.

E The external components of a SWOT analysis are opportunities and threats.

Successful firms focus their efforts on satisfying customer needs that A. are easiest to satisfy. B. provide minimal core value. C. are important to all generational cohorts. D. competitors have tried and failed to satisfy. E. match their core competencies.

E The firm's competencies are its strengths; the firm is likely to have the most success if it focuses on these, finding customers whose needs it can meet using these strengths.

The Mayo Clinic in Minnesota is known for top-quality medical care. For decades, even presidents and dictators from around the world flew to the Mayo Clinic to utilize its services. The Mayo Clinic used its reputation to create additional medical facilities in Jacksonville, Florida, and elsewhere. This is an example of a firm focusing its efforts on satisfying customer needs that A. are easiest to satisfy. B. provide minimal core value. C. are important to all generational cohorts. D. competitors have tried and failed to satisfy. E. match its core competencies.

E The firm's competencies are its strengths; the firm is likely to have the most success if it focuses on these, finding customers whose needs it can meet using these strengths.

Which of the following is NOT one of the four overarching strategies to create and deliver value and to develop sustainable competitive advantage? A. Locational excellence B. Customer excellence C. Operational excellence D. Product excellence E. Planning excellence

E The four overarching strategies are locational excellence, customer excellence, operational excellence, and product excellence.

Singapore Airlines seeks to differentiate itself from competing airlines, in part through innovative design of its airplane seats and in-flight entertainment systems. Through continuous innovation in these areas, Singapore Airlines is pursuing a ______ macro strategy. A. customer excellence B. global excellence C. locational excellence D. operational excellence E. product excellence

E The innovations described are in the area of the product offering, and so represent product excellence. The description of Singapore Airlines in the text also mentions a focus on customer excellence through specialized training to flight attendants, resulting in outstanding service, but those features are not included in the question.

For many years, because of the size of the U.S. economy, domestic companies ignored international markets, preferring instead to develop new product offerings for existing customers. These companies were pursuing a ________________ strategy . A. market penetration B. market development C. segment development. D. diversification E. product development

E The product development strategy is one in which firms develop new products for their existing customers.

Darwin's company is facing a difficult ethical issue. The firm has identified the various stakeholders and their issues and gathered the available data. Everyone with an interest in the issue has engaged in brainstorming and evaluation of alternatives. Management reviewed and refined the alternatives. It should now choose the course of action that A. maximizes profits. B. creates the least possible publicity. C. involves the fewest employees. D. minimizes costs. E. seems best after weighing the concerns of all stakeholders.

E The purpose of the earlier stages of the process is to identify stakeholders' issues and generate possible solutions. The final stage is to weigh this information and select the alternative that does the best job of addressing the issues.

Critics of corporate social responsibility (CSR) maintain that: A. CSR is unnecessary. B. the goal of the firm is to make a profit and any other goal is inappropriate. C. stockholders do not benefit from corporate citizenship programs. D. the benefits are hard to quantify and are at best unclear. E. All of these

E These are all common criticisms of corporate social responsibility programs.

Which of the following is a core aspect of marketing? A. It creates value for the customer. B. It involves exchanges. C. It includes development of a marketing mix. D. It occurs in many settings. E. All of these are core aspects of marketing.

E These are all core aspects of marketing.

Which of the following types of unethical behavior are likely to be observed in marketing environments? A. High pressure sales techniques. B. Deceptive sales tactics. C. Misrepresentation of company data. D. Misleading advertising. E. All of these.

E These are all examples of unethical behavior marketing managers have reported observing.

Which of the following questions is typically asked in the Ethical Decision-Making Metric? A. Can we live with this decision alternative? B. Have we thought broadly about any and all ethical issues associated with the decision? C. Does this decision respect the rights and dignity of stakeholders? D. Does this decision uphold relevant conventional moral values? E. all of these

E These are all questions included in the metric.

The Carteret Realty Company represents a developer who wants to purchase a piece of property owned by a city in order to develop it into an apartment complex. To make the venture profitable, the developer is asking the city to use its power of eminent domain to force owners of some run-down houses near the property to sell their land to the developer. From the perspective of Carteret Realty Company, which of the following questions from the Ethical Decision-Making Matrix might be of concern? A. Have we involved as many possible people who have a right to offer input into this action? B. Have we thought broadly about any and all ethical issues associated with the decision? C. Does this decision respect the rights and dignity of stakeholders? D. Does this decision uphold relevant conventional moral values? E. all of these

E These are all reasonable questions. The homeowners are stakeholders in this decision, and there are serious ethical and moral concerns in forcing them to leave their homes in order to allow the developer to profit.

Brad is reviewing the performance of his franchise sandwich store. As a franchisee, he has access to comparative data from other stores. Brad will likely look at ____________ data for other stores to help him to evaluate his performance. A. sales B. gross margin C. number of customers D. coupon redemption E. all of above

E This comparison process will help Brad to determine whether or not his stores are performing as well as they might. All of the types of data mentioned could be useful in this analysis. Sales and number of customers will measure the amount of business he is receiving, coupon redemption will measure the effectiveness of sales promotions, and gross margin will measure his profitability and operating efficiency.

Marketers who design and offer new products and services to their existing customers are pursuing a ____________________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

E This is the definition of the product development growth strategy.

Chris's firm is considering marketing an HIV/AIDS treatment and home-testing kits. Which of the following represents a potential ethical issue for the firm? A. The firm could sell this kit at a very high price, based on its potential value, but doing so would make it too expensive for many at-risk individuals to afford. B. A positive test result--whether correct, or a "false positive"--could lead to severe depression or even suicide. C. A customer could run the test incorrectly and get a "false negative" result, causing an infected individual to think that treatment was unnecessary. D. The firm may have to include counseling with the kit, which could affect its marketability. E. All of these issues have ethical dimensions.

E This question shows the wide range of ethical questions that can arise from a firm's decisions about new products.

Many of today's college graduates will make their livings providing goods and services to "baby boomers," the large group of Americans born in the period after World War II. Baby boomers are a _________________ market segment. A. psychological B. behavioral C. social D. product-based E. demographic

E This segment is being formed using age, a demographic factor.

Value is A. the lowest cost option. B. represented by brand names. C. the highest priced alternative. D. everyday low prices. E. what you get for what you give.

E Value is the benefits received minus the costs of acquiring a product, or what you get in return for what you give.

When Toyota owners began to report problems with sticking accelerator pedals and non-functioning brakes, Toyota at first ignored or rejected the claims. Eventually, the company evaluated the issue. Which of the four steps of the Ethical Decision-Making Framework was Toyota performing when it recalled several of its 2007-2010 models? A. Assess risk B. Identify issues C. Gather information and identify stakeholders D. Brainstorm and evaluate alternatives E. Choose a course of action

E When using the Ethical Decision-Making Framework, the first step is to identify the issues. The next three steps are to gather information, brainstorm/evaluate alternatives, and finally to choose a course of action. Toyota, in its recall, had chosen a course of action.

A regional manager at GNC, a chain of retail stores selling nutritional supplements, is reviewing sales data after a recent in-store promotion. The data show success in some stores and limited response in others. The manager will probably next review the company's: A. financial statements, to investigate current and past profits. B. brand awareness study, to assess national levels of awareness. C. implementation programs, to see if the promotion was handled consistently in the different stores. D. results for other product lines, to see how important diet products are to the firm. E. analysis of national trends in vitamins and herbal supplements, to help predict future sales.

c

Leah is the marketing manager for an electronics company. While on vacation in Ecuador, she visited electronics stores in the major malls in Quito, the capital city. Most of her company's products were available, except for smart phones. When she returned to work, she mentioned this observation to her international sales manager. Leah was providing the important marketing function of A. advising production on how much product to make. B. alerting the logistics department when to ship products. C. engaging customers, developing long-term relationships. D. identifying opportunities to expand. E. synthesizing and interpreting sales, accounting, and customer-profile data.

D Leah was identifying a potential opportunity--the absence of the firm's smart phones from stores in Ecuador.

Auction sites like eBay have increased opportunities for __________ marketing. A. B2B B. C2C C. D2C D. C2D E. B2G

B Consumers can buy and sell from each other on sites like eBay, increasing the amount of consumer-to-consumer (C2C) marketing that takes place.

Yesenia, the new university course scheduling manager, is struggling with adjustments to the fall schedule. She is trying to determine how to offer the classes students need at the times when students need them. Yesenia is struggling with the marketing function of A. communicating the value proposition. B. supply chain management. C. creating value. D. capturing value. E. value cocreation.

B Getting a product (in this case, a class) to customers when and where they want them describes the Place component of the marketing mix, which involves managing the supply chain.

Marketing was once an afterthought to A. accounting. B. economics. C. production. D. finance. E. none of these—marketing was never an afterthought.

C In the production era, marketing was considered unnecessary--all that mattered was producing good products.

A buyer's representative in a real estate purchase was asked by her customer, "Is this a fair offer?" She responded, "You are only trying to buy one house. Do you want to offer more money than you have to?" The buyer's representative recognized that in most situations, home buyers are engaged in A. relationships. B. subterfuge. C. collective bargaining. D. prestige purchases. E. transactions.

E If the buyer were establishing a relationship with the seller, s/he might be concerned about ensuring that both sides felt the offer was fair; however, the buyer is unlikely to ever do business with this seller again. And in that case, the buyer's primary interest is likely to be getting the best result possible in this single transaction.

BestBulk clothing store is striving to become a more value-driven organization. Its managers should ensure that the staff shares information about: A. customers B. competitors C. complaints D. inventories E. all of these

E Information must be shared across a broad range of topics for value-based marketing to be successful.

Christie has just started with a travel agency, and she has been offering clients and prospective clients a range of packaged tours. She is concerned, because the commissions she is earning on her sales are lower than she had hoped. Her colleague Peter, who has been with the agency for several years, is having a great deal of success by working closely with the clients, seeking their ideas, and building customized tour packages for each one based on their suggestions. Peter's approach is based on A. transaction-oriented marketing. B. premium pricing. C. his seniority at the firm. D. special incentives from tour operators. E. value cocreation.

E Peter is collaborating with his clients to build custom packages, which is an example of value cocreation.

Marketing involves all of the following EXCEPT A. conducting exchanges. B. satisfying customer needs and wants. C. creating value. D. efforts by individuals and organizations. E. production scheduling.

E Production scheduling is the responsibility of manufacturing; all other activities are part of marketing.

When considering career choices in marketing, many students overlook supply chain management because A. it is considered too quantitative. B. marketing has no responsibility for supply chain management. C. companies generally outsource these activities, and so there are rarely supply chain jobs available. D. it only takes place in large, urban areas. E. many of the activities take place behind the scenes.

E Supply chain management is extremely important--without it, customers would not be able to obtain products--but most of the activities take place in the background.

Which of the following questions must be addressed when making marketing decisions? A. How is the product to be designed? B. How much should the product cost? C. Where should the product be promoted? D. How will the product be delivered to the customer? E. All of these

E The four questions represent the four Ps: product (design), price (cost), promotion, and place (delivery).

The price of a product: A. is usually expressed in terms of money. B. includes the time involved in the purchase decision. C. includes the effort and energy involved in researching the product. D. is everything the buyer gives up to obtain the product. E. all of these

E The price includes everything the buyer gives up--money, time, energy--to obtain the product.

As owner of a retail franchise food store, Mary Gray purchases supplies based on specials advertised nationally throughout the franchise system. One Monday, she was surprised to find customers asking for specials she hadn't been informed of in advance. The franchise company failed to live up to the value-driven principle of A. sharing information across the organization. B. balancing customers' benefits and costs. C. evaluating strategic competitive partnerships. D. building relationships with customers. E. keeping prices below those charged by competitors.

A Apparently the national headquarters has forgotten to inform franchisees of the special, suggesting a failure of information sharing.

Julia is considering a career in marketing. She is concerned about the image of marketers as fast-talking, high-pressure people. When reading about the core aspects of marketing, Julia is relieved to see that in marketing A. all parties to an exchange should be satisfied. B. promotion is the most important consideration, followed by pricing decisions. C. decisions are made regarding how a product is designed. D. customers are not considered until the product is ready for sale. E. distribution is controlled by customers.

A If all parties to the exchange are satisfied, that indicates that marketers are considering customers' needs as well as the company's welfare. None of the other alternatives ensure that customers' needs are being satisfied.

The idea that a good product will sell itself is associated with the __________ era of marketing. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

A In the production era, the assumption was that if companies built good products, they would sell without any particular effort.

Whenever Valerie has a new massage therapy customer, she invites the person to be on her e-mail distribution list. In the process, in addition to exchanging her massage therapy service for payment, Valerie is gathering A. information. B. promotional capital. C. pricing data. D. value cocreation. E. feedback.

A In this case, Valerie's customer receives a massage, and she receives both payment and information (in the form of the customer's email address) as part of the exchange process.

Retailers accumulate merchandise from producers in large amounts and sell to consumers in smaller amounts. Retailers function as A. market intermediaries. B. monopolists. C. regulators of consumer demand. D. wholesale specialists. E. intermediate promoters.

A Retailers make up one category of market intermediary, which refers to firms that assist in getting products from the manufacturer to the consumer.

In the past, manufacturer's representatives did not have up-to-minute data about the products they were selling. Today, manufacturer's representatives are often provided online access to inventory data for the companies they represent. These online inventory systems allow companies to become more value-driven through A. sharing information across the organization. B. balancing customers' benefits and costs. C. evaluating strategic competitive partnerships. D. building relationships with government regulators of marketing institutions. E. keeping prices below those charged by competitors.

A The online systems discussed help members of the supply chain share information about inventory levels.

Georgia, the outside sales rep for a major building supply company, reads a report stating that building permits are down dramatically in her sales territory. She had noticed that things were slowing down, but now she has data confirming her impression. Based on this information, one important function Georgia should provide is A. pushing her customers to buy products whether they need them or not. B. advising the production and purchasing departments to produce or order smaller quantities of products. C. assisting customers in product recall confirmations. D. avoiding contact with competing firms in order to maximize value-driven marketing. E. estimating profit per sale to determine whether or not the firm can survive the slowdown.

B Georgia should share what she has learned with the production and purchasing departments, so that they can plan accordingly. She should not push her customers to buy things they don't need- -this will damage her firm's reputation and will come back to haunt her when the downturn ends. Estimating profit isn't Georgia's responsibility, but someone in the firm should look at the impact of the slowdown, if enough sales territories are affected.

The basic difference between a good and a service is that a good A. provides intangible benefits. B. can be physically touched. C. is always less expensive than a corresponding service. D. generates greater interest among consumers. E. is more quickly forgotten by consumers.

B Goods are tangible things that can be touched; services are intangible. The remaining answers could be true in some cases, but untrue in others.

Xavier is analyzing potential market segments. He should carefully seek potential customers who have both an interest in his products and A. a thorough knowledge of his brand messages. B. the ability to buy them. C. knowledge of competing products. D. the ability to negotiate discounts. E. are removed from traditional marketing alternatives.

B If Xavier selects customers with an interest in the kinds of products he offers, and the ability to purchase, he can communicate the value his offerings provide and offer competitive comparisons as part of his marketing mix.

During the __________ era, firms had excess capacity and used personal selling and advertising to generate customers. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

B In the sales era, firms believed that a hard-sell approach was the answer to building sales.

Near the end of the model year, Move-Them-Out automobile dealership had an unusually high inventory level. The manager increased her advertising spending and gave extra incentives to its salespeople. Move- Them-Out operates as if it were in the __________ era. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

B In the sales era, firms believed that a hard-sell approach was the answer to building sales.

The prevailing marketing strategy of the __________ era was to find customers for inventories that went unsold. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

B In the sales era, firms believed that a hard-sell approach was the answer to building sales.

Jenny, the delivery and sales representative for a beer distributor, is calling on a retailer and sees the shelves are almost empty. An unexpected sporting event held nearby resulted in a huge increase in sales. She calls her company's distribution manager and requests a special delivery for her customer. Jenny is providing the important marketing function of A. advising production on how much product to make. B. alerting the logistics department when to ship products. C. advising the customer about new products and markets. D. identifying opportunities to expand. E. synthesizing and interpreting sales, accounting, and customer-profile data.

B Jenny is arranging for a shipment through the distribution manager, who handles the logistics function.

Marketing provides the critical function of __________ when companies expand globally. A. managing production efficiency B. understanding customers C. managing personnel D. forecasting economic growth E. evaluating government stability

B Marketing is the part of the organization in the best position to understand customers in all situations.

Some discount stores put products in large bins and let consumers hunt and find bargains. The price these consumers pay includes A. only the actual price they pay at the register. B. the value of their time and energy. C. the excitement they experience in finding an item they desire. D. the savings to the store of not having to display the products neatly on shelves. E. the time the product was full price and didn't sell.

B Price includes everything the customer gives up to get the product.

Many catalog companies create special-run issues based on what customers have purchased in the past. For example, customers who frequently order bedding items like sheets and pillows receive a catalog with a larger section of bedding items than do customers who mostly order kitchen tools. This is an example of A. C2C marketing. B. customer relationship management. C. a transactional marketing orientation. D. supply chain management. E. typical production-oriented era marketing practices.

B The catalog is customized based on what is known about the customer's needs and habits. This is a typical element of a customer relationship management program.

During the market-oriented era A. a good product would sell itself. B. the customer was king. C. marketing was more important than production. D. advertising and personal selling were emphasized to make the sale. E. firms focused on value.

B The marketing era was when most companies first started thinking in terms of meeting customer needs.

Which of the following is NOT true about marketing ideas? A. Opinions, philosophies, intellectual concepts, and even thoughts can be effectively marketed. B. The marketing of ideas does not involve true exchange of value. C. Ideas can be "purchased" by convincing someone to change his or her behavior. D. Marketing can be directed toward primary and secondary targets to increase knowledge and change behavior. E. Value can be created through changing behaviors.

B The marketing of ideas does, in fact, involve exchange of value. One party benefits from exposure to a new idea, while the other generally asks for a particular behavior.

After the previous sales representative in his territory infuriated an important customer, Benjamin visited the customer once a month, never asking for business but hoping to rebuild trust through listening and expressing concern. Finally, after more than two years, the customer gave Benjamin an order. Benjamin was providing the important marketing function of A. advising production on how much product to make. B. alerting the logistics department when to ship products. C. engaging customers and developing long-term relationships. D. identifying opportunities to expand. E. synthesizing and interpreting sales, accounting, and customer-profile data.

C Benjamin was involved in a relational orientation, hoping to rebuild the long-term relationship with this customer.

Greenbelt Construction has been a successful small home-building firm for years. The owner pays subcontractors slightly more than the usual rate for different tasks, reducing the company's gross margin. Greenbelt rarely changes subcontractors, has relatively few complaints from home buyers, and is able to get quick responses from subcontractors when buyers do have problems. Greenbelt is engaged in A. a traditional transactional orientation. B. C2C value-driven marketing. C. effective supply chain management. D. value cocreation. E. a virtual monopoly.

C By maintaining good relationships with subcontractors, Greenbelt Construction gains the benefit of receiving good service from these subcontractors for itself and for its home buyers. This is a key benefit of effective supply chain management.

One of the most important challenges in marketing globally is to: A. ensure that the firm's products or services stay the same as the offerings in the home country. B. avoid competing with local firms. C. adapt to the local situation but maintain strategy and identity. D. seek out other home-country firms as suppliers so as to ensure product quality. E. operate without publicity so as not to attract attention.

C Firms almost always make some adjustments for local conditions; however, the challenge is to do so while still maintaining the company's overall mission, strategy, and brand identity.

Marketers involved in supply chain management are constantly balancing A. the goal of promotional effectiveness against ethical advertising standards. B. the problem of price maximization against cost efficiency. C. the goal of minimizing costs against satisfying the service levels customers expect. D. the desire to achieve against the need for a stable source of supply. E. the goal of efficiency against the price charged by competitors.

C In the supply chain, the primary concerns are keeping costs low enough to make a profit, and yet ensuring that customers can get products when and where they want them.

Every Christmas season, Anheuser-Busch runs television ads featuring Clydesdale horses in a winter scene. These ads focus on the promotional goal of __________ consumers about Budweiser, the company's brand of beer. A. informing B. persuading C. reminding D. all of these E. none of these

C Most consumers are already aware of Anheuser-Busch and Budweiser; the Clydesdale ads serve as a reminder.

Of primary interest to marketers are __________ buyers. A. centrally controlled B. unqualified and underserved C. qualified potential D. first-time E. C2C

C Potential buyers who are qualified in terms of interest and ability to buy are the primary interest of marketers. C2C (consumer-to-consumer) buyers would be of interest to consumers who are marketing products, but not to businesses who participate in B2C and B2B markets. While first-time buyers are interesting to marketers, loyal customers are even more important to the firm.

Brian is struggling with the choice of publishing his new book, How to Cook Polish Barbeque, as an ebook or a paperback. Brian is addressing which core marketing aspect? A. Developing a promotional plan B. Managing the exchange function of marketing C. Making product decisions D. Deciding where and how to sell the product E. Pricing the product

C Since Brian is making decisions about the form his book will take, he is making product decisions.

The "Got Milk" advertising campaign, designed to increase consumption of milk, was intended to help market a(n) A. individual. B. firm. C. industry. D. organization. E. specific product.

C The "Got Milk" campaign advertised the dairy industry as a whole, not any particular brand of milk.

As use of the Internet took off, car manufacturers were tempted to sell directly to consumers, but decided instead to continue to sell through their existing dealer networks. The car manufacturers considered switching from __________ to __________ marketing. A. B2C; B2B B. B2C; C2C C. B2B; B2C D. B2B; C2C E. C2C; B2C

C The car manufacturers considered switching from B2B marketing (where they sell cars to dealers, who then sell them to consumers) to B2C marketing (where the car manufacturers would sell directly to consumers).

In delivering value, marketing firms attempt to find the most desirable balance between A. the need for value and the perception of value. B. explicit versus implicit value. C. providing benefits to customers and keeping costs down. D. the desire to satisfy customers and the need to keep customers from running the company. E. the need for product improvement and the need for advertising.

C The challenge for all firms is to provide the value customers expect while keeping costs low enough to allow the firm to be profitable.

Marketing has traditionally been divided into a set of four interrelated decisions known as the marketing mix, or four Ps, including all of the following EXCEPT A. product. B. place. C. performance. D. promotion. E. price.

C The four Ps are product, place, promotion, and price.

The owner of The Pipe Doctor, a plumbing service, often orders the sinks, faucets, and toilets he installs for his customers. Since he is paid for these items and also for the labor to install them, the Pipe Doctor: A. is a provider of goods. B. is a service provider. C. provides both goods and services. D. is primarily a marketer of ideas. E. offers neither goods nor services.

C The sinks, faucets, and toilets are goods; installation labor is a service.

Some consumers will try to get a lot of merchandise for a small amount of money. In marketing, this is known as: A. the marketing paradox. B. the outer limits of pricing C. customers seeking value. D. excess valuation. E. marketing myopia.

C These customers are simply seeking to maximize the value they receive.

After major hurricanes like Katrina, many ethical home repair and building supply businesses continue to charge pre-hurricane prices to their customers, even though due to the huge increase in demand they could charge much more. These firms probably recognize that A. they can make more money from government contracts than from sales to customers. B. a transactional orientation is the key to long-term profitability. C. none of their competitors would be raising prices. D. lifetime profitability of relationships matters more than profits from a particular transaction. E. if they raised prices they would be in violation of Commerce Department regulations.

D By not raising prices when they could, the firms were resisting the temptation to make a quick profit and were instead demonstrating the value they placed on long-term relationships with their customers.

Joseph is about to graduate near the top of his class and has been looking at some forward-thinking firms. He had expected the job market to be tight, but found that some firms were using employment marketing to attract the candidates they want and need. He noticed these firms used all of the following approaches EXCEPT: A. using marketing research to understand what future employees want from a position. B. using advertising agencies to focus creatively on the targeted job seekers. C. developing an employee-oriented brand image. D. assuming that the right candidates will learn about the firm and apply for jobs without any encouragement. E. working to ensure the employment experiences match the candidates' expectations.

D Employment marketing means being proactive in the recruitment process, not sitting back and waiting for people to apply.

Marketing includes offering: A. goods. B. services. C. ideas. D. goods, services, and ideas. E. goods and services only.

D Goods, services, and ideas can be marketed. Political campaigns are good examples of the marketing of ideas.

During the __________ era manufacturers and retailers recognized they needed to give their customers greater value than their competitors did. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

D In the value-based marketing era, firms began to recognize that value creation was the key to success for most firms.

To become value-driven, firms should: A. share information across the entire organization about customers and competitors. B. prioritize relationships with customers above individual transactions. C. balance benefits with costs to create value for customers. D. All of these. E. None of these

D Information sharing, a relational orientation, and balancing benefits and costs are three essential characteristics of a value-driven firm.

Which of the following is a core aspect of marketing? A. Satisfying as many needs as possible B. Creating a product that everyone will want to buy C. Setting prices lower than all competitors D. Making product, place, promotion, and price decisions E. Increasing the company's profit

D Most of these answers are too broad. Marketers don't generally try to sell to everyone, and they don't necessarily strive to have the lowest price. Instead, they select customers they can successfully serve and design a marketing mix (product, place, promotion, and price) to meet those needs.

Even though they operate from out-of-the-way airports and offer few extra services, discount airlines like Ryanair and EasyJet have been successful. Consumers obviously consider A. the schedules these airlines offer to be the most convenient in the industry. B. the long-term relationships established by these airlines to be a critical benefit. C. the prices to be slightly lower, but not low enough to have much influence. D. the benefit of lower prices to be greater than the cost of reduced services and less convenience. E. the major airlines to be worthless.

D People flying discount airlines have decided to bear some inconvenience in return for lower prices. The benefits are lower, but so is the cost, so the offering can have value despite the inconvenience.

By promoting perfume based on youth, style, and sex appeal, Calvin Klein is attempting to A. influence social norms regarding sexuality. B. encourage consumers to participate in product redesign. C. stimulate supply chain management cooperation. D. increase the perceived value of their products. E. none of these.

D Promotion communicates value to consumers so that they will more easily see the value offered by the product.

Serena studies her customer profiles, market research data, complaints, and other information, attempting to better understand what her customers want. Serena operates in the __________ era of marketing. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

D Serena is attempting to understand her customers' perceptions of value.

The goal of customer relationship management is to A. manage every customer relationship differently. B. manage every customer relationship to maximum short-term profitability. C. eliminate customers who are profitable, but not highly profitable. D. identify and build loyalty among a firm's customers. E. generate relationships with all of a firm's customers.

D Some of the answers include CRM themes but are carried to an extreme--for example, although CRM seeks to customize the relationship to meet the customer's primary needs, it doesn't mean that every customer must be managed differently from every other. And not every customer wants a relationship (nor does the firm want a relationship with every customer). But CRM does concern itself with building loyalty in the customer base.

The importance of supply chain management is often overlooked in the study of marketing because A. marketing has no responsibility for supply chain management. B. supply chain management doesn't add much value for customers. C. companies do not want customers to know anything about the supply chain. D. many of the activities take place behind the scenes. E. supply chain management is already transparent.

D Supply chain management is extremely important--without it, customers would not be able to obtain products--but most of the activities take place in the background.

The four Ps make up the marketing mix, which is the __________ set of activities that the firm uses to respond to the wants and needs of its target markets. A. unpredictable B. external C. internal D. controllable E. global

D The four Ps represent controllable activities--in other words, the things the firm controls and manages.

Many universities provide physical or electronic bulletin boards to facilitate ride-sharing and exchange of used books among students. These bulletin boards increase __________ marketing. A. B2C B. C2B C. B2B D. C2C E. underground

D These bulletin boards are designed to encourage consumer-to-consumer (C2C) marketing.