Marketing Ch 1-5 Test

James earns $3,000 per month. If his overall cost of living is $1,700, his purchasing power is _____.

$1,300

Which of the following a difference between a quota and a boycott?

A boycott is the exclusion of all products from certain countries or companies, whereas a quota is a means of protection from foreign competition.

Unlike Hispanic Americans, most:

Asian Americans are born outside the United States.

Which of the following statements is true of the incomes of baby boomers in the United States?

Baby boomers' current incomes are relatively low because many have retired.

Which of the following is a similarity between act utilitarianism and rule utilitarianism?

Both theories have flaws associated with predicting the future.

In the context of rule utilitarianism, which of the following statements is true?

Decisions must benefit the most people but through the fairest and most just means available.

Business gift giving is considered the most unacceptable business practice in China.

False

Cause-related marketing is a marketing relationship based on a straight donation.

False

Conventional morality is the most basic level of ethical development.

False

Global marketing is a one-way street whereby only U.S. companies sell their wares and services throughout the world.

False

In terms of effect strategic planning, managers should refrain from establishing new strategies.

False

In the context of distribution, ocean shipping is faster than airfreight.

False

Traditionally, marketing-oriented multinational corporations enable individual subsidiaries to compete independently in domestic markets.

False

Unlike an operating decision, a strategic decision probably will not have a big impact on the long-run profitability of a company.

False

The sales orientation extends the marketing concept by acknowledging that some products that customers want may not really be in their best interests or the best interests of society as a whole.

Fasle

Yuncen Foods is a food manufacturer based in Lumberne. It gets over half of its revenue from international sales. It has been consistently ranked as the best food manufacturer in the world. Given this information, which of the following statements is true of Yuncen Foods?

Geographic and political barriers are irrelevant to the company's business decisions.

Which of the following is a reason for practicing outsourcing in the United States?

Increased corporate growth

Which of the following statements is true of marketing?

It focuses on delivering value and benefits to customers.

Which of the following statements is true of customer relationship management?

It involves linking all processes of a company from its customers through its suppliers.

Which of the following statements is true of a company that is in the second stage of global business?

It sets up foreign subsidiaries to handle sales in one country.

Which of the following scenarios is an example of basic research?

Jeremy, a social activist, is researching ways to improve the quality of life of physically challenged people.

Which of the following should be the main focus of marketers in accordance with distribution strategies?

Physical locations of products

Which of the following companies is an advocate of green marketing?

Poldoid Inc., a manufacturer of plastic products, uses biodegradable plastics to reduce the generation of hazardous wastes.

In the context of a marketing mix, which of the following business activities is most closely related to distribution strategies?

Storage of raw materials

_____ was founded in 1945, one year after the creation of the World Bank, to promote trade through financial cooperation and eliminate trade barriers in the process.

The International Monetary Fund (IMF)

In the context of populations, which of the following statements is true of tweens in the United States?

They are an attractive market segment for mobile games.

Which of the following statements is true of the younger Millennials?

They are quick to change jobs if they are unsatisfied.

A group of individuals in the age group of 11 to 16 years who extensively use the Internet is an example of a market segment.

True

A target market is a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges.

True

The term Hispanic encompasses people of many different backgrounds.

True

Mark is a friend of Ryan, who has been accused of attempt to murder. Even after knowing that Ryan is guilty, Mark lies when the police interrogates him. Mark believes that his behavior will benefit his family and him, and hence he is not concerned about the legality of his behavior. In the context of ethical theories, Mark displays _____.

act utilitarianism

In the context of the innovation matrix, _____ are decisions designed to take company strengths into new markets.

adjacent innovations

A marketing mix typically involves:

distribution strategies

In the context of following up on a marketing plan, _____ entails gauging the extent to which marketing objectives have been achieved during the specified time period.

evaluation

A product/service differentiation competitive advantage can be achieved by:

having a strong dealer network.

Mark is the sales manager of a reputed firm. Over his tenure, he has witnessed numerous ethical misconducts. In this case, he will observe less ethical misconduct when:

his coworkers have a strong ethical culture.

Maria Apparel is a well-known apparel store. The owners of the store want the store to go global; hence, they have opened a Web site. In this scenario, opening a Web site:

immediately puts Maria Apparel in the international marketplace.

A firm would benefit from a production orientation when _____.

it produces exactly what the market wants

Business firms can stimulate innovation by:

letting employees know that they have the freedom to fail

A U.S. licensor will be most successful at maintaining effective control over licensees and preventing them from voiding the contract by:

locally registering patents and trademarks.

Khokho's Coffee House was the first company to introduce flavored coffee in the global market. It sells coffee in several different flavors, such as blueberry, cinnamon, and cranberry, based on the flavors each country prefers. In this scenario, Khokho's Coffee House is involved in _____.

product invention

The Federal Trade Commission's Bureau of Competition _____.

seeks out and challenges anti-competitive conduct in the marketplace

In the context of growing ethnic markets, African Americans in the United States:

spend more on store brands as compared to the general population.

The product in a marketing mix includes:

the company image

In the context of a marketing mix, the product includes:

the name of the brand.

Which of the following statements is true of the attitude of teens in the United States?

According to a survey taken by Piper Jaffary, teens continue to seek peer affirmation.

Which of the following can be considered demographic information of a person?

Age

Which of the following is a similarity between the deontological theory and moral relativism?

Both theories may lead to actions that are not ethically correct.

Which of the following actions is associated with a niche strategy?

Choosing a target market that is not crucial to the success of major competitors

Which of the following statements is true of a niche strategy?

Companies that adopt a niche strategy have only a small number of customers. Correct. For small companies with limited resources that potentially face giant competitors, niche targeting may be the only viable option. Many companies using a niche strategy serve only a limited geographic market.

_____ is a business's concern for the long-range welfare of both the company and its relationship to the society within which it operates.

Corporate social responsibility

Which of the following activities is carried out during implementation of a marketing plan?

Creating and managing a task force

A company's skills include patents, copyrights, and technology that are superior to those of the competition.

False

A firm's assets are functions—customer service and promotions—that the firm performs better than its competitors.

False

A market-oriented organization targets its products at "everybody" or "the average customer."

False

According to the General Electric model for strategic alternatives, conditions that have low overall attractiveness are the best candidates for investment.

False

An ethical decision is solely based on the number of people who are benefitted by the decision.

False

Millennials tend to be influenced more by traditional advertising, sales reps, and word-of-mouth recommendations than through digital media.

False

Preconventional morality moves from an egocentric viewpoint toward the expectations of society.

False

Relationship marketing assumes that many consumers and business customers prefer to switch continually among different organizations rather than continue relationship with just one provider.

False

The management of a firm has utmost control over the competitive environment confronting it.

False

The pyramid of corporate social responsibility portrays philanthropic performance as the foundation for the other responsibilities.

False

Jason was born in 1970. He spent most of his childhood without much adult guidance as both his parents were working professionals. In this case, which of the following is most likely to be true of Jason?

He is independent, resilient, adaptable, cautious, and skeptical.

In which of the following situations are marketers most likely to recognize a practice as unethical?

If the practice is very likely to result in a harmful outcome

Which of the following statements is true of a sales orientation?

Intermediaries are encouraged to push manufacturers' products aggressively.

The management of Irving Inc., an apparel company based in Letonia, decides to expand the company's operations to several other countries. Given this information, which of the following strategies can be adopted by the management to succeed in the foreign environment?

It can modify its Web site according to the foreign countries' cultures.

Which of the following statements is true of a production-oriented firm?

It can survive and even prosper when demand exceeds supply.

In the context of on-demand marketing, which of the following statements is true of a sales-oriented firm?

It extensively uses personal selling and advertising.

Which of the following statements is true of on-demand marketing?

It is aimed at enhancing customer relationships.

Which of the following statements is true of marketing?

It offers great career opportunities in business and nonbusiness organizations.

Which of the following statements is a characteristic of countertrade?

It refers to a form of trade in which all or part of the payment for goods or services is in the form of other goods or services.

Which of the following statements is true of the term quota?

It refers to a limit on the amount of a specific product that can enter a country.

Which of the following statements is true of the marketing concept?

It states that an organization should satisfy customer wants and needs while meeting organizational objectives.

Which of the following statements is true about the pyramid of corporate social responsibility?

It states that if a company does not make a profit, then the other responsibilities are moot.

Nessca Motors, a well-known company based in Nebolina, manufactures engines. Its management recently signed a joint venture with Singletone Inc., a company based in Trinitia. Given this information, which of the following statements will most likely be true?

Nessca Motors may buy a part of Singletone Inc.

Which of the following is used in customer relationship management?

On-demand marketing

The owners of Fashion Spell, an apparel store based in the town of Lumberne, want to expand the store's business all over the world. In this case, which of the following strategies can help the owners of Fashion Spell achieve their objectives?

Opening an e-commerce site

In the context of a marketing mix, which of the following is an element of promotion?

Personal selling

Hallie has a tendency to be egocentric. She follows the rules of her company mainly to avoid punishment and to gain respect. When making decisions, she always focuses on what immediate benefits she will gain from an alternative. Which of the following levels of ethical development is illustrated by Hallie?

Preconventional morality

_____ is a trade agreement that has dramatically lowered trade barriers worldwide. It led to the creation of the World Trade Organization.

The Uruguay Round

In the context of a marketing mix, which of the following statements is true of a product?

The heart of a marketing mix is the product offering and product strategy.

Which of the following statements is true of market-oriented firms?

They create the benefits their customers seek.

Which of the following statements is true of market-oriented personnel?

They derive their profits from an external focus.

Which of the following statements is true of production-oriented firms?

They do not understand the needs and wants of the marketplace.

Which of the following statements is true of firms that adopt relationship marketing strategies?

They encourage teamwork among employees.

In the context of marketing, which of the following statements is true of nonprofit organizations?

They exist to achieve goals other than business-related goals.

A task force is a tightly organized unit under the direction of a manager who, usually, has broad authority.

True

Average family incomes are higher in more developed countries than in less developed countries. false

True

By manipulating elements of the marketing mix, marketing managers can fine-tune the customer offering and achieve competitive success.

True

Environmental scanning refers to the process of collecting and interpreting information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan.

True

In the context of marketing, an exchange refers to people giving up something in order to receive something else they would rather have.

True

Marketing objectives must be consistent with and indicate the priorities of an organization.

True

Marketing strategy involves the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.

True

Middle-class customers are increasingly unwilling to spend their money on household staples with extra features because of lower income.

True

Teamwork entails collaborative efforts of people to accomplish common objectives.

True

The Bureau of Competition provides information and holds conferences and workshops for consumers, businesses, and policy makers on competition issues for market analysis.

True

The best marketing tactic is to protect existing market share by reinvesting earnings in product improvement, better distribution, more promotion, and production efficiency.

True

The creation and implementation of a marketing plan will allow the organization to achieve marketing objectives and succeed.

True

Which of the following statements is true of third-stage multinational companies?

Which of the following statements is true of third-stage multinational companies?

Peter is conducting research that is aimed at formulating a combustion process that could be used in commercial vehicles so that vehicles could run on water. Peter's research is an example of _____.

applied research

In the context of populations in the United States, Millennials:

are now more in number than baby boomers.

Stakeholder theory of corporate social responsibility:

considers the management of an organization as one of the stakeholders.

Aztic Inc., a manufacturer of sports goods, plans to expand its operations to various other countries. After market research, it avoids countries where the dominant population is mostly rural. In this case, Aztic Inc. is assessing the _____ of the countries.

demographic makeup

Quasio Foods Inc. is a large food manufacturing corporation that earns more profits than its competitors. The company uses only organically grown grains and fruits. It also promotes organic farming and helps nonprofit agencies who focus on food and nutrition causes. The company has now decided to use a third-party recycling logo. In this scenario, Quasio Foods is most likely to have adopted the concept of _____.

green marketing

The basic goal of _____ is to increase short-term cash return without increased concern for long-run impact.

harvesting

In the context of a marketing mix, promotion includes:

public relations activities.

Critics of Ansoff's matrix mention that the matrix does not:

reflect the reality of how businesses grow.

A company can gain a cost competitive advantage by:

reorganizing functional departments into cross-disciplinary teams.

In the context of the determinants of a civil society, _____ involves the voluntary acceptance of standards established by nongovernmental entities.

self-regulation

A code of ethics:

should be in written form to avoid confusion.