MKT200 EXAM 1 CENAGE

false

A firm's organizational mission should be derived from its goals.

corporate culture

A set of values, beliefs, goals, norms, and rituals shared by members of an organization is called

false

All members of an industry are bound to follow trade association guidelines.

customer lifetime value

Amazon Prime has one of the highest customer loyalty ratings in the entertainment industry with a significant percentage of current video streaming subscribers continuing to renew their subscription with Amazon on a yearly or month-to-month basis. In addition, many customers have cancelled their cable or satellite subscriptions and rely almost exclusively on streaming services such as Amazon Prime and Netflix for their entertainment. Amazon Prime video streaming is available as part of Amazon's $99/year Amazon Prime suite of offerings that includes free 2-day shipping on many Amazon.com orders. Customers can also choose to pay by the month for $12.99/month. If a significant percentage of subscribers continue their service on an annual basis, Amazon is able to build a stable revenue stream based on repeat purchasers. A quick snapshot of one customer revealed that the customer had subscribed to Prime for five years and generated over $700 in revenue to Amazon. Which of the following marketing terms best captures the importance of customer loyalty and its impact on Amazon?

false

An oligopoly exists when a firm offers a product that has no close substitutes, making the firm the sole source of supply.

Opportunity

Anika knows that her company has a formal code of conduct, but she does not see this code being equally and consistently applied to all employees. Anika believes that this sporadic enforcement of the formal code only enhances the ____ for committing unethical acts.

market

Businesses that strive to determine what customers need or want and then develop products to satisfy those needs and wants are operating in a(n) ____ orientation.

sales

Businesses that view sales as the major means of increasing profits are operating with a _____ orientation.

false

Changes in the marketing environment always hurt marketing efforts.

distribution

Changing the hours of operation for a service business involves the ____ component of the marketing mix.

environmental scanning

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

true

Credit increases current buying power at the expense of future buying power.

individual

Emily Ross is an administrative assistant for Erik Boseman, who is brand manager for a consumer products company. Erik works with a variety of suppliers and customers and is very busy. Erik has asked Emily to screen his calls to make sure that only those people with whom he is working are able to speak with him, advising her to say things like "I'm sorry, he's in a meeting" or "He just stepped out of the office and won't return until tomorrow." Emily is growing increasingly concerned about these practices and dislikes lying to people who call. She feels that Erik is being dishonest, and she'd rather be more transparent and honest with people when they call rather than making up a story that isn't true. Emily doesn't want to compromise her own personal values to be an effective administrative assistant. Emily's dilemma represents the ________ factor that influences the ethical decision-making process.

true

Employees who always do things in their own self-interest in spite of organizational policies or culture are often called "bad apples."

true

Financial controls information will most likely be found in the performance evaluation section of the marketing plan.

false

From its inception, Toms wanted to help those in developing countries. When Toms was developed, it adopted a one-for-one model in which it would donate one pair of shoes to a child in need for every pair of shoes it sold. This is an example of cause-related marketing. ​

flexibility

In a period of economic recovery, the best marketing strategy for UPS would be characterized by which of the following features?

first-mover; late-mover

In many cases, companies that enter a market after innovative products have been introduced can achieve long-term competitive advantages by continuing to develop a better mousetrap. For example, MicroPro was the first company to introduce a word processing program, but SSI cornered a large market share when it introduced the Word Perfect program. Today, however, Microsoft's Word is the dominant word-processing software program and has continued to endure due to the popularity of the Microsoft Office Suite of products. MicroPro's WordStar possessed a ___________ advantage while Microsoft enjoyed a ___________ advantage.

false

In marketing, a product can be a good or a service but not an idea.

false

Jo's Coffee Shop wants to increase customer satisfaction. Currently, only 75% of customers indicate they are satisfied with the services offered. In the next six months, it plans on implementing a number of changes to improve its services. Jo's Coffee plans to implement a survey at the end of the six-month period to determine whether customer satisfaction has improved. Jo's wants 90% of its customers to indicate they are satisfied with its service. This is an example of a ________________.

marketing objective

Jo's Coffee Shop wants to increase customer satisfaction. Currently, only 75% of customers indicate they are satisfied with the services offered. In the next six months, it plans on implementing a number of changes to improve its services. Jo's Coffee plans to implement a survey at the end of the six-month period to determine whether customer satisfaction has improved. Jo's wants 90% of its customers to indicate they are satisfied with its service. This is an example of a ________________.

marketing environment

Kraft made the announcement that it was eliminating artificial food additives. Which of the following most likely influenced Kraft's decision?

strategic planning

Managers at the Tycho Manufacturing are engaged in a complex process of revising their organization's mission and goals and developing corporate strategy, marketing objectives, marketing strategy, and, eventually, a marketing plan. This process is called

The negative effects of technology include concerns over privacy and intellectual property protection.

Marketers live in a world of constant change, and their ability to adapt to the pace of change will dictate the degree to which their marketing strategies are successful. Moreover, the changes can come in any or all of the different parts of the marketing environment. ​ Which one of the following statements is true?

false

Marketing strategies should be established before marketing objectives are decided.

false

Price is seldom used as a competitive tool.

false

Product competitors market products with similar features and benefits to the same customers at similar prices.

false

Question marks exist at a cost disadvantage and exhibit few opportunities for growth at a reasonable cost.

stakeholder orientation

Research suggests that a relationship exists between ______ and an organizational climate that supports marketing ethics and social responsibility.

false

The reason the marketing concept is named this way is that it pertains solely to marketing.

channel stuffing

The unethical practice of shipping surplus inventory to wholesalers and retailers at an excessive rate, typically before the end of a quarter, is called

true

Single people have quite different spending patterns than couples and families with children. They spend more heavily on convenience foods, restaurants, travel, entertainment, and recreation.

true

Social responsibility is an organization's obligation to maximize its positive impact and minimize its negative impact on society.

Competitive advantage

The Buddhas Brew Kombucha has become highly efficient in developing and manufacturing new kombucha products for the market. It far surpasses its competitors in these areas. Recently, major medical journals have started describing how kombucha can be highly advantageous for consumer health. This is likely to give Buddhas Brew Kombucha a ______________ because it is able to match its skills with opportunities in the marketplace.

issue a cease-and-desist order.

The Consumer Financial Protection Bureau settled a claim with the Bank of America for deceiving customers and unfairly billing them for services such as credit monitoring and identity theft protection. Bank of America agreed to provide refunds to 2.9 million people and pay $45 million in fines for their illegal credit card practices. Their deceptive practices dated to 2000 where they had billed customers for products such as "Privacy Guard" or "Privacy Assist" without first obtaining authorization for the products. The $45 million in fines includes $25 million as a civil penalty that will be paid to the Office of the Comptroller of the Currency and $20 million to the Consumer Financial Protection Bureau. The Bureau also claims that Bank of America deceived about 1.4 million customers into making about $268 million in payments by, among other things, improperly telling them the first 30 days of coverage were free or the benefits were greater than existed. Refer to Scenario 3.3. If the Consumer Financial Protection Bureau decides to contact the Federal Trade Commission (FTC) to investigate Bank of America and its practices regarding deceptive billing practices, and if the FTC believes that Bank of America has violated a law, the FTC would first

legal and regulatory

The Consumer Financial Protection Bureau settled a claim with the Bank of America for deceiving customers and unfairly billing them for services such as credit monitoring and identity theft protection. Bank of America agreed to provide refunds to 2.9 million people and pay $45 million in fines for their illegal credit card practices. Their deceptive practices dated to 2000 where they had billed customers for products such as "Privacy Guard" or "Privacy Assist" without first obtaining authorization for the products. The $45 million in fines includes $25 million as a civil penalty that will be paid to the Office of the Comptroller of the Currency and $20 million to the Consumer Financial Protection Bureau. The Bureau also claims that Bank of America deceived about 1.4 million customers into making about $268 million in payments by, among other things, improperly telling them the first 30 days of coverage were free or the benefits were greater than existed. Refer to Scenario 3.3. Which environmental force is Bank of America responding to by agreeing to pay fines and refunds to consumers?

false

The broadest and simplest definition of marketing states that it is the development and efficient distribution of products for consumer segments.

to develop satisfying exchanges from which both customers and marketers benefit.

The essence of marketing is

false

The long-term health of the firm depends solely on having products that generate cash and provide acceptable reported profits.

false

The major forces that make up the consumerism movement are consumer organizations and business organizations.

false

The marketing concept directly affects marketing activities but should have negligible impact on other organizational activities.

a written document detailing activities to be performed to implement and control marketing actions.

The marketing plan is

true

The more a person is exposed to unethical activity in the organizational environment, the more likely it is that he or she will behave unethically.

true

To resolve a social responsibility issue, it is helpful to check with concerned consumer groups and industry or specific company policy regarding the activity.

true

Wealth is an accumulation of past income, natural resources, and financial resources.

Social responsibility deals with the total effect of marketing decisions on society, whereas marketing ethics relates to individual and group evaluations in marketing situations.

What is the major difference between social responsibility and marketing ethics?

Social responsibility refers to a company's obligation to maximize its positive impact and minimize its negative impact on society.

Which of the following statements about social responsibility is correct?

strategic business unit

Within a business organization, a profit center that is self-supporting in terms of sales, markets, production, and other resources is known as a​

sales analysis

Yoshi Ramen restaurant opened in 2017 and struggled to build a customer base for lunch, dinner, or event catering options. When the owners were planning the restaurant, they had projected they would sell 60 to 80 bowls daily with an average lunch price of $8.00 They believed that dinner sales could generate between 100 and 120 bowls per day at $12 per customer. However, the actual daily lunch and dinner totals were much less and the owners were barely breaking even and wondered if they should close the business. However, Yoshi Ramen began an aggressive promotion effort, offered lunch and dinner specials and promoted the restaurant as a family-friendly place where everyone could enjoy fresh, ramen dishes. As a result of their marketing efforts, the restaurant is selling out of its product almost daily and has built a takeaway business as well. They are selling 100 lunches daily with an average price of $10 and approximately 200 dinner plates at $15. The owners are pleased with the revenue stream they're generating from the restaurant and considering opening a second location or adding space to accommodate more customers at the existing location. Using the data regarding number of bowls sold and the average order amount generated, what kind of analysis can the owners of the restaurant perform to assist them in understanding their business opportunities?

false

monopoly exists when a firm with many potential competitors attempts to develop a marketing strategy to differentiate its products.