Marketing Ch. 1-3 Test #1 Study Guide

A market opportunity results from Question options: A) the right combination of circumstances and timing that permits an organization to take action to reach a particular target market. B) monitoring the firm's capabilities. C) an increase in market share and profits. D) an assessment of environmental forces. E) technological determinism.

A

A marketing manager decides what combination of variables is needed to satisfy customers' needs for a general type of product. What are the essential variables that the marketing manager combines? A) Product, price, distribution, and promotion variables B) Marketing environment variables C) Product and promotion variables D) Product, price, and customer variables

A

According to the Boston Consulting Group, question marks are characterized as products Question options: A) having a small share of a growing market and requiring large amounts of cash to build market share. B) generating more cash than is required to maintain share. C) encompassing the greatest number of products. D) existing at a cost disadvantage and revealing few opportunities for growth at a reasonable cost. E) having substantial reported profits but needing a lot of cash to finance the rate of growth.

A

All marketing mix decisions must have two characteristics: ____ and ____. Question options: A) consistency; flexibility B) consistency; rigidity C) formality; flexibility D) variability; flexibility E) formality; rigidity

A

An organization's business goals should be derived from its Question options: A) mission statement. B) strategic plan. C) strategic business plan. D) marketing plan. E) marketing strategy.

A

Changes Salon is part of the hair and personal care service industry. In what type of competitive environment is Changes Salon most likely operating? Question options: A) pure competition. B) a monopoly. C) monopolistic competition. D) oligopolistic competition. E) an oligopoly.

A

Marketing activities are Question options: A) used by all sizes of organizations including for-profit, nonprofit, and government agencies. B) limited to use by larger for-profit and nonprofit organizations. C) implemented only to increase profits for the organization and to expand the scope of its customer base. D) used by all types and sizes of businesses but are not used by nonprofit organizations. E) used by small businesses and small nonprofit organizations the most.

A

Which of the following companies is the best example of a service marketer? Question options: A) FedEx B) Sony C) Abercrombie & Fitch D) The Democratic Party E) General Electric

A

Which of the following statements about marketing environment forces is correct? Question options: A) They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products. B) They do not influence customers' reactions to a firm's marketing mix. C) They fluctuate slowly and thereby create threats to a firm's marketing mix. D) They never fluctuate quickly. E) They do not influence the way a marketing manager performs certain marketing activities.

A

​Scenario 3.2 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 3.2. 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: Question options: A) ​issue a cease-and-desist order B) ​order Bank of America to stop engaging in deceptive practices to avoid prosecution C) ​order Bank of America to refund consumers in order to settle or resolve the complaint D) ​order Bank of America to pay up to $10,000 per day for violating the law

A

According to the Boston Consulting Group, marketers may classify their products as all of the following except Question options: A) dogs. B) cash contributors. C) question marks. D) stars. E) cash cows.

B

Companies that compete for the same limited financial resources of the same customers are known as ____ competitors. Question options: A) oligopolic B) total budget C) generic D) product E) brand

B

Distribution, price, promotion, and product are all elements of Question options: A) marketing strategy. B) the marketing mix. C) a target market. D) a consumer good. E) a business strategy.

B

Marketing is the process of Question options: A) promoting products through personal selling and advertising to develop and maintain favorable relationships with customers and stakeholders. B) creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment. C) delivering a standard of living to a society. D) creating, distributing, promoting, and pricing goods, services, and ideas to facilitate the achievement of the firm's objectives. E) focusing on customers' needs.

B

The marketing concept affects Question options: A) just the marketing department. B) all organizational activities. C) only marketing and finance. D) only production and marketing. E) few decisions in an organization.

B

The two least common competitive structures are Question options: A) monopolies and oligopolies. B) pure competition and monopolies. C) monopolistic competition and monopolies. D) pure competition and no competition. E) oligopolies and pure competition.

B

Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as Question options: A) marketing synthesis. B) relationship marketing. C) a marketing orientation. D) the marketing concept. E) strategic marketing.

B

What national self-regulatory organization screens ads? Question options: A) Federal Advertising Review Division B) National Advertising Review Board C) Federal Communications Commission D) Consumer Federation of America E) Better Business Bureau

B

Which of the following is an advantage that self-regulatory agencies such as the BBB and the NARB have over governmental laws and regulatory agencies? Question options: A) Firms must strictly abide by the rulings of self-regulatory agencies. B) Establishment and implementation are usually less expensive. C) They have better tools to enforce their rulings. D) Guidelines are often stricter and create greater compliance from firms. E) Money is very rarely an issue in enforcing decisions of self-regulatory agencies.

B

Within a business organization, a profit center that is self-supporting in terms of sales, markets, production, and other resources is known as a Question options: A) profit entity. B) strategic business unit. C) marketing program. D) small business. E) diversified corporation.

B

Based on the work by the Boston Consulting Group, products with a dominant share of the market and good prospects for growth are Question options: A) dogs. B) cash cows. C) stars. D) question marks. E) pigs.

C

More than half of the research of technology created is paid for by Question options: A) corporations. B) state and local governments. C) the federal government. D) large universities. E) private investors.

C

The marketing concept is a philosophy that states that an organization should try to satisfy customers' needs and also Question options: A) increase market share. B) increase sales. C) achieve the organization's goals. D) produce high-quality products. E) coordinate its activities to increase production.

C

The percentage of a market which actually buys a specific product from a specific company is referred to as that product's Question options: A) strategic segment B) target market C) market share D) market cut E) market position

C

Total buying power declines during periods of economic Question options: A) recovery. B) prosperity. C) recession. D) uncertainty. E) expansion.

C

Which of the following are the most frequently sentenced organizational crimes? Question options: A) False advertising and price discrimination B) Price discrimination and fraud C) Fraud and antitrust violations D) Price fixing and antitrust violations E) Fraud and price fixing

C

​The successful marketer understands that the key to her success is the relationships her firm is able to develop with current customers and potential customers. Moreover, her goal is to achieve the full potential of each of these relationships for the benefit of the firm. ​ This marketer clearly understands Question options: A) ​that the only way for the firm to increase profits is to constantly acquire new customers. B) ​that customers' needs, desires and habits are homogeneous. C) ​that customer loyalty leads to increasing long-term profitability for the firm. D) ​that data is of limited use in helping the firm understand the needs of customers. E) ​that customer lifetime value only includes the value of what customers purchase from the firm.

C

According to the text, a market is defined as Question options: A) a place to buy products. B) the buyers of the products that a company develops, promotes, prices, and distributes. C) the specific group of customers on whom an organization focuses its marketing efforts. D) a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products. E) the percentage of a group of customers that actually buys a specific product from a specific company.

D

Consumerism is a Question options: A) diverse group of individuals and organizations opposed to foreign producers that sell products in the United States that are much cheaper than those produced by U.S. manufacturers. B) social movement that is trying to encourage consumer satisfaction. C) social movement that is reorganizing the Council of Better Business Bureaus. D) diverse group of individuals and organizations attempting to protect the rights of consumers. E) social movement that provides consumers with means for expressing satisfaction and expressing their gratitude to producers.

D

Of all the federal regulatory units, the ____ most heavily influences marketing activities. Question options: A) Food and Drug Administration (FDA) B) Federal Communications Commission (FCC) C) Environmental Protection Agency (EPA) D) Federal Trade Commission (FTC) E) Federal Power Commission (FPC)

D

The 1990 Nutrition Labeling and Education Act directly prohibits Question options: A) exaggerated claims made by health and fitness products. B) putting the words "cholesterol-free" on any food package. C) putting nutritional information on most food products. D) exaggerated health claims on food packages. E) the use of any health claim on food packaging.

D

The marketing environment is best described as being Question options: A) composed of controllable variables. B) composed of variables independent of one another. C) an indirect influence on the performance of marketing activities. D) dynamic and changing. E) slow, with infrequent fluctuations.

D

The tobacco industry in the United States is dominated by three large companies. When any one of these companies changes its price on tobacco products, the other two companies quickly adjust their prices to match it. From these characteristics, the tobacco industry could best be described as Question options: A) price sensitive. B) opportunistic. C) monopolistic competition. D) an oligopoly. E) a monopoly.

D

Which of the following regulatory groups is a system of nongovernmental, independent, local regulatory agencies supported by local businesses? Question options: A) The Chamber of Commerce B) The National Advertising Review Board C) The National Advertising Division D) The Better Business Bureau E) American Marketing Association

D

Which of the following would not be a customer cost considered in determination of product value? Question options: A) Product's purchase price B) Time spent purchasing the product C) Effort spent purchasing the product D) Benefits received in the exchange for the products E) Risk of purchasing the product

D

Why are marketers interested in consumers' levels of disposable income? Question options: A) It accurately predicts future buying power. B) It increases current buying power. C) It is what is left after taxes and savings to buy luxuries with. D) It is a ready source of buying power. E) It is essential for forecasting future business trends.

D

Discretionary income is associated with all of the following except Question options: A) automobiles. B) education. C) pets. D) furniture. E) food.

E

In managing customer relationships, the three primary ways profits can be obtained are by Question options: A) acquiring new customers, enhancing the profitability of new customers, and shortening the duration of relationships with existing customers. B) enhancing the profitability of existing customers, eliminating customers who provide smaller profits, and finding new customers. C) extending the length of relationships with customers, cutting organizational costs, and enhancing the profitability of new customers. D) eliminating long-term customers who have decreased purchases, finding new customers, and increasing sales to existing customers. E) enhancing the profitability of existing customers, extending the duration of relationships with customers, and obtaining new customers.

E

Making modifications to packaging or brand names involves the ____ component of the marketing mix. A) price B) promotion C) market D) distribution E) product

E

The marketing concept focuses on Question options: A) achieving the goals of top executives. B) creating maximum visibility for the firm. C) maximizing sales in a way that helps to achieve organizational objectives. D) maximizing market share in a way that helps to achieve organizational objectives. E) satisfying customers' needs in a way that helps to achieve organizational objectives.

E

The public is becoming more aware of how marketers' activities affect the welfare of consumers and society. As a result, more firms are working to Question options: A) raise prices in order to increase their profits so that they can contribute to philanthropic causes. B) reduce the quality of their products in order to save money and provide less expensive products to their consumers. C) reduce their profits by donating more time and money to improve social welfare and environmental conditions. D) enact laws requiring companies to work toward the welfare of customers and society. E) create a responsible approach to developing long-term relationships with customers and society.

E

Which of the following is not a purpose of the marketing plan? Question options: A) Communicate internally with employees B) Assign tasks and responsibilities for implementation C) Specify the allocation of resources D) Monitor the performance of a marketing strategy E) Serve as a contract with the customer

E