MKT 350 EXAM 1.

Discuss how privacy concerns have become a current social issue. What technological invention has prompted the rise in concern over privacy.

The advent of the internet has created an explosion of accessibility to consumer information. Massive security breaches, like the one Target suffered in 2013, have more and more consumers worldwide sensing a loss of privacy. Every time a consumer surfs the web and clicks on a site, online marketers can place a cookie on that user's computer, showing them where he or she starts , proceeds, ends the online encounter - as well as what she or he buys, and does not. For many consumers, such close access to their behaviors is an unacceptable invasion of privacy.

A firm's macroenvironment includes all of the following except... (LO 5-2)(1) a. Competition b. Culture c. Demographics d. Economics e. Political/legal issues

a. Competition Competition is part of the immediate environment, not the macro-environment

For every consumer who purchases a pair of TOMS shoes for $55, the company promises that a needy child will receive a pair of shoes. TOMS shoes is actively engaging in...(LO 4-2)(1) a. Corporate social responsibility b. Business ethics c. Marketing ethics d. Environmental marketing e. Overpricing of its products

a. Corporate social responsibility

When Walmart issued new standards for livestock products that were raised on food without antibiotics or artificial growth hormones, it considered ____________, including the ranchers that supply the food, its customers, and animal welfare groups. (LO 4-1)(2) a. Stakeholders b. Investors c. Marketing executives d. Bankers e. Corporate shareholders

a. Stakeholders When Walmart issued new standards it considered multiple stakeholders...

CSR can be described as context-specific actions and policies, taking stakeholders' expectations into account, to achieve what is referred to as the triple bottom line. The triple bottom line includes _________ performance. (LO 4-2)(2) a. Economic, social, and environmental b. Economic, social, and political c. Financial, economic, and social d. Social, environmental and political e. Financial, social, and environmental

a. economic, social, and environmental

The _______________ for natural skin care company Burt's Bees is to "create natural, earth friendly personal care products formulated to help you maximize your well-being and that of the world around you. (LO 4-5)(2) a. Mission statement b. Market analysis c. Company description d. Financial plan e. Executive summary

a. mission statement Marketers can introduce conscious marketing at the beginning of the planning process by including statements in the firm's mission and vision statements.

The text lists five psychological factors that can influence purchase decisions. List and give an example of each.

a.Motives - the need for a Starbuck's coffee. Satisfies a psychological need by providing food and drink. Satisfies safety needs through healthier living by publishing calorie content. Satisfies love needs creating relationships with customers. Satisfies esteem needs by offering a safe, friendly environment. b.Attitudes - includes a cognitive, affective and behavioral component - example is the three stages of reviewing the movie Avengers. c.Perception - different needs of a couple looking for an apartment d.Learning - looking on the Internet for a new suit for a job interview e.Lifestyle - using North Face gear to hike a mountain, other use North Face gear because of the positive image it portrays

ABC Company knew that its customers were interested in environmentally friendly business practices, so it began marking all of its 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 term for this practice is ... (LO 5-4)(3) a. Deceptive advertising b. Green washing c. Environmental exploitation d. Virtual greening e. enviromarketing

b. Green washing The term for disingenuously marketing products as environmentally friendly when they are not is greenwashing

Generally, people buy one product or service instead of another because they ... (LO6-1)(2) a.Want to get the lowest price possible b.Perceive it to be the better value for them c.Prefer to avoid doing extended problem solving d.Have conducted a thorough internal search for information e.Are unaware of key determinant attributes

b. Perceive it to be the better value for them Generally, people buy product or service instead of another because they perceive it to be the better value for them; that is, the ratio of benefits to costs is higher for a particular product than for any other

Conscious marketing encompasses all of the following overriding principles EXCEPT... (LO 4-1)(1) a. Recognition of marketing's greater purpose b. Recognition of the company's bottom line c. The presence of corporate leadership, creating a corporate culture d. Consideration of stakeholders and their interdependence e. The understanding that decisions are ethically based.

b. Recognition of the company's bottom line Conscious marketing entails a sense of purpose for the firm that is higher than simply making a profit by selling products. It consists of four main principals: greater purpose, considering stakeholders, conscious leadership and culture, and ethics

The creation of CVS Health's mobile apps in connection with its onsite MinuteClinics is a response to a _________ trend that surrounds health and wellness concerns. (LO 5-4)(2) a. Marketing b. Social c. Media d. Technological e. Service

b. Social Health and wellness concerns have spurred a number of mobile apps, many of which help customers get or stay in shape by tracking exercise, calorie intake, and sleep cycles. CVS Health's apps help it consumers stay well.

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... (LO 4-6)(3) a. The need to identify possible ethical issues b. That unethical actions can impact stakeholders 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. That unethical actions can impact stakeholders beyond the corporation This action affected members of the community who formerly benefited from the work of the Heritage Foundation

Marketers particularly want their brands and products to be in consumers' ______sets. (LO 6-3)(2) a.Universal b.Retrieval c.Evoked d.Deterministic e.Behavioral

c. evoked The universal set represents all brands, regardless of whether or not the consumer is aware of them. The retrieval set represents all brands the consumer can recall. The evoked set represents all brands the consumer would consider buying. Marketers want their brands to be in evoked sets, since this gives those brands a serious chance of being selected for purchase.

Although the leaders of Enron Corporation were manipulating the company's finances for the personal benefit, the company continued to be a major donor to Houston area charities. Enron had unethical business practices... (LO 4-3)(2) a. But practiced ethical marketing b. And falsified the company's finances through charitable donations c. But created a local ethical business climate d. But demonstrated corporate social responsibility e. And manipulated the public sentiment for its own benefit

d. But demonstrated corporate social responsibility Enron exhibited unethical behavior through its financial manipulation, but at the same time demonstrated social responsibility through charitable donations.

In the immediate marketing environment, the first factor that affects the consumer is ... (LO 5- 1)(2) a. Demographics b. Cultural values c. Social trends d. The firm itself e. Technological advances

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

Marketers must consider the entire business process from the point of view of the ... (LO 5- 1)(1) a. Macroenvironment b. Corporate partners c. Immediate environment d. Competition e. Consumer

e. Consumer Because the consumer is the center of all marketing efforts, value-based marketing firms must consider the entire business process all from a consumer's point of view

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 ... (LO 5-4)(3) a. Offering an expanded menu of healthy options b. Making nutritional information readily available to consumers c. Using recycled paper in its food packaging d. Using solar power in its restaurants e. Creating an advertising campaign targeting elementary school children

e. Creating an advertising campaign targeting elementary school children Targeting preteens is related to demographic factors, not a social trend, and in fact would probably be considered to work against the social trend toward health and wellness, given that many McDonald's menu items are considered to be unhealthy

Consumer consider universal, retrieval, and evoked sets during which stage of the consumer decision process? (LO 6-3) (1) a.Need recognition b.Post-purchase evaluation c.Information search d.Situational analysis e.Evaluation of alternatives

e. Evaluation alternatives Different sets of alternatives are a factor during the third stage of the consumer decision process, evaluation of alternatives

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 ... (LO 5-2)(3) a. Regional culture b. Country culture c. Generational factors d. Social trends e. regulatory factors

f. Regional culture These types of language (vocabulary) differences are typical examples of regional culture differences.