Chapter 20
A heavily promoted brand of flu medicine sells for much more than a virtually identical store-branded product. Critics would likely charge that promotion for the branded flu medicine adds only ________ to the product rather than functional value. A) consistency B) strength C) psychological value D) quality E) informational value
C
The overselling of private goods results in ________, such as cars causing traffic jams, air pollution, injuries, and deaths. A) cultural pollution B) misdirected funding C) social costs D) materialism E) opportunity costs
C
The philosophy of ________ holds that a company's marketing should support the best long-run performance of the marketing system. A) corporate social responsibility B) environmentalism C) the sustainable marketing concept D) the free enterprise system E) consumer-oriented marketing
C
When critics claim that insurance, real estate, and used cars are sold, not bought, they are making accusations of the use of ________. A) deceptive promotions B) excessive markups C) high-pressure selling D) shoddy products E) excessive materialism
C
When major chain retailers avoid placing stores in disadvantaged neighborhoods, they are likely to be accused of the discriminatory practice of ________. A) embargo B) licensing C) redlining D) puffery E) scrambling merchandise
C
________ is a management approach that involves developing strategies that both sustain the environment and produce profits for the company. A) Consumerism B) New clean technology C) Environmental sustainability D) Social responsibility E) Ethical decision making
C
________ products give both high immediate satisfaction and high long-run benefits. A) Deficient B) Pleasing C) Desirable D) Salutary E) Threatening
C
Dan's Drugstore sells consumers medicine for twenty dollars that only costs two dollars to make. The store is guilty of ________. A) deceptive promotion B) deceptive packaging C) false advertising D) excessive markups E) redlining
D
For cars, "social costs" include all of the following EXCEPT ________. A) traffic congestion B) air pollution C) gasoline shortages D) congestion tolls E) traffic accidents
D
Maytag's front-loading Neptune washer provides superior cleaning and energy efficiency. The Neptune washer is an example of a ________ product. A) deficient B) pleasing C) salutary D) desirable E) satisfying
D
Monica Carey is a conscientious marketing manager. Sometimes it is unclear what decisions to make when she and her staff are faced with moral dilemmas. Monica and other managers could create broad guidelines that everyone in the organization must follow in the form of ________. A) a company value statement B) a company mission statement C) a company vision statement D) corporate marketing ethics policies E) a financial statement
D
The American Marketing Association (AMA) has created a code of ethics that includes all of the following ethical values EXCEPT ________. A) honesty B) fairness C) openness D) competitiveness E) responsibility
D
The presence of ________ in low-income neighborhoods makes a big difference in keeping prices down. A) malls B) small stores C) redlining companies D) large national chain stores E) factory outlets
D
The success of the Tom Dennis Ford dealership has been built largely on return customers and word-of-mouth recommendations. The majority of sales are made to customers who have purchased a vehicle at the dealership before or who know someone who had a positive experience purchasing a vehicle there. The sales force at the Tom Dennis Ford dealership most likely knows that using high-pressure selling does not work if the dealership wants to ________. A) achieve short-term gains B) move last year's models C) obey local and federal law D) build long-term relationships with customers E) maintain a database
D
To restore the balance between private and public goods, producers could be required to bear the full ________ costs of their operations. A) promotional B) cultural C) environmental D) social E) safety
D
Which of the following advertising situations would LEAST likely be considered "puffery"? A) Mr. Clean coming to a housewife's rescue B) instantly toned thighs and legs as a result of using the Thigh Master for only 15 minutes C) children immediately growing into attractive adults as a result of drinking milk D) a retired couple drinking a vitamin and protein shake and then going bicycling E) a sleepy mom who wakes up to a gray day, drinks a cup of coffee, and then looks out her window to see golden sunshine, beautiful flowers blooming, songbirds singing, and a rainbow on the horizon
D
Xerox Corporation's Equipment Remanufacture and Parts Reuse Program converts end-of-life office equipment into new products and parts. This not only helps sustain the environment, but it is also highly profitable for the company. Such a practice is known as ________. A) pollution prevention B) green marketing C) a sustainability vision D) design for environment (DFE) E) new environmental technology
D
________ is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers. A) Environmentalism B) The Bill of Rights C) Grassroots politics D) Consumerism E) The Human Relations Movement
D
A long-standing charge against intermediaries is that they mark up prices beyond the ________. A) value of their services B) delivery charges C) going market price D) promotion cost E) resale value
A
Companies emphasizing ________ are developing "green marketing" programs that develop ecologically safer products, recyclable and biodegradable packaging, more energy-efficient operations, and better pollution controls. A) pollution prevention B) product stewardship C) "beyond greening" D) new clean technology E) sustainability vision
A
Consumer advocates call for all of the following additional consumer rights EXCEPT ________. A) the right to be protected from unwanted marketing messages B) the right to be well informed about important product aspects C) the right to be protected against questionable products and marketing practices D) the right to influence marketing practices in ways that will improve the quality of life E) the right to influence products in ways that will improve the quality of life
A
Critics claim that mortgage lenders used ________. Instead of staying away from people in poor urban areas, they targeted and exploited them by steering them toward subprime loans even though many qualified for safer fixed-rate loans. A) reverse redlining B) redlining C) puffery D) licensing E) the push strategy
A
Critics have charged that the marketing system urges too much interest in ________. A) material possessions B) the push strategy C) meeting a quota D) new product invention E) entering the global market arena
A
Cultural pollution could be referred to as ________. A) commercial noise B) air pollution C) language barriers D) a marketer's inability to identify a target market E) zipping or zapping
A
Dove wanted to do more than just sell its beauty care products. The company was on a quest to discover "real beauty" and help women be happy just the way they are. As a result, the Dove Campaign for Real Beauty was successfully launched in 2004. Dove was practicing which type of marketing? A) sense-of-mission B) consumer-oriented C) customer-value D) innovative E) societal
A
Examples of pleasing products include ________. A) cigarettes and junk food B) dental services and medications C) seat belts and air bags D) fruits and vegetables E) bicycle helmets and elbow pads
A
Jacob Engineering Group views and organizes its marketing activities from the viewpoint of its buyers. Management works hard to sense, serve, and satisfy the needs of its well-defined group of buyers. What does Jacob Engineering Group practice? A) consumer-oriented marketing B) societal marketing C) sense-of-mission marketing D) customer-value marketing E) innovative marketing
A
McDonald's "Plan to Win" strategy has added healthy food options to its menu, phased out traditional artery-clogging trans fats, launched a major multifaceted education campaign, and addressed environmental issues. "Plan to Win" best exemplifies which concept? A) sustainable marketing concept B) marketing concept C) societal marketing concept D) strategic planning concept E) consumer business concept
A
Nike produces PVC-free shoes, recycles old sneakers, and educates young people about conservation, reuse, and recycling. Nike is using the most basic level of environmental sustainability known as ________. A) pollution prevention B) product stewardship C) new clean technology D) "beyond greening" E) redlining
A
Planned obsolescence might involve all of the following EXCEPT ________. A) the use of unsafe materials B) producers continually changing consumer styles C) the holding back of attractive functional features, then introducing them later to make older models obsolete D) the use of materials that will rust sooner than they should E) the use of components that will break soon after purchase
A
Ralph Nader is most closely associated with which of the following? A) the consumerism movement of the 1960s B) the environmentalism movement of the 1960s and 1970s C) the current wave of environmentalism D) enlightened marketing E) consumer-oriented marketing
A
The ________ in the United States came about because of concern for the loss of the atmosphere's ozone layer, toxic wastes, litter, and the damage caused by strip mining and forest depletion. A) first wave of modern environmentalism B) second wave of modern environmentalism C) current wave of environmentalism D) second wave of consumerism E) first wave of enlightened marketing
A
The challenge for makers of which type of product is to add some pleasing qualities so that it will become more desirable in the consumers' minds? A) salutary B) desirable C) pleasing D) durable E) aesthetic
A
The following quote best describes ________. "The marvels of modern technology include the development of a soda can which, when discarded, will last forever, and a...car, which when properly cared for, will rust out in two or three years." A) planned obsolescence B) product failure C) short-term planning D) nonfunctional warranty E) excessive markups
A
The two major movements to keep business in line are environmentalism and ________. A) consumerism B) protectionism C) antimonopoly legislation D) regulating interstate commerce E) innovation
A
What are deficient products? A) products that have neither immediate appeal nor long-run benefits B) products that give high immediate satisfaction but only hurt consumers in the long run C) products that have low appeal but may benefit consumers in the long run D) products that are either unsafe or inferior E) any product in the decline stage of the product life cycle
A
Which of the following is the best example of a desirable product? A) healthy and delicious breakfast food B) cigarettes C) effective but bad-tasting medicine D) junk food E) dental insurance
A
________ calls for meeting the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. A) The sustainable marketing concept B) Innovation C) Consumerism D) Environmentalism E) The strategic planning concept
A
A company that makes products that give high immediate satisfaction but may hurt consumers in the long run makes ________ products. A) deficient B) pleasing C) salutary D) desirable E) threatening
B
A company that produces and heavily markets cigarettes, with many promotions aimed at young (although legal age) nonsmokers, most likely follows which of the following as a guiding principle? A) the philosophy that companies should have a social conscience B) the philosophy that companies can do in good conscience whatever the market and legal systems allow C) the philosophy of environmentalism D) the philosophy of consumer-oriented marketing E) the philosophy of consumerism
B
A major step in regulating "unfair or deceptive business acts and practices" was the enactment of the ________ in 1938. A) Robinson-Patman Act B) Wheeler-Lea Act C) Interstate Commerce Commissions D) Taft-Hartley Act E) Stamp Act
B
Advertising "puffery" is a term for ________. A) a straightforward promotional message B) innocent exaggeration for effect C) emotional appeals to consumers D) subliminal appeals to consumers E) value-added promotions
B
After Sony and Microsoft kicked the Mario out of Nintendo's GameCube in the Video Game War of 2001, the smallest of the three game platform makers needed a new plan. The resulting Wii system, with its intuitive motion-sensitive controller and interactive games, appealed not only to teen boys but also to their sisters, moms, dads, and even grandparents. The system immediately outsold both the PlayStation 3 and Xbox 360. This is a successful example of ________ marketing. A) consumer-oriented B) innovative C) customer-value D) societal E) sense-of-mission
B
All of the following are components of "green marketing" EXCEPT ________. A) making safer products B) cradle-to-cradle practices C) recycling D) biodegradability E) pollution controls
B
All of the following are potential advantages of acquisition EXCEPT? A) The acquiring company can gain economies of scale. B) Acquisitions require little government oversight. C) An acquiring company may improve the efficiency of an acquired company. D) An industry might become more competitive after an acquisition. E) The acquisition may result in lower costs, leading to lower prices for consumers.
B
Bill Talen, also known as the Reverend Billy, leader of the Church of Stop Shopping, wants people to resist the temptation to shop. He annually leads a group of volunteers in his post-Thanksgiving Buy Nothing Parade in front of Macy's in Manhattan. Bill Talen is criticizing the American marketing system for creating ________. A) too few social goods B) environmental problems C) shoddy products D) false wants and too much materialism E) predatory competition
B
Critics charge that intermediaries ________. A) are too few in number B) are inefficient C) provide only necessary services D) underprice their services E) are too competitive
B
Critics of the American economic marketing system have charged that marketers have created a culture in which people are judged by what they ________. A) are B) own C) do D) eat E) avoid
B
Critics say marketing is seen as benefiting ________ more than ________. A) consumers; industry B) industry; consumers C) stores; manufacturers D) exporters; importers E) independent sellers; chain stores
B
Deceptive promotion differs from deceptive pricing in that deceptive promotion overstates the product's ________ or ________. A) true price; performance B) features; performance C) packaging; costs D) design; features E) availability; package contents
B
Hart's Department Store was accused of deceptive promotion. Which of the following best explains what might have happened? A) Hart's refused to advertise sale prices in the local paper. B) Hart's lured customers to the store for a bargain that is out of stock. C) Hart's advertised a large price reduction from a phony high retail list price. D) Hart's used misleading labeling. E) Hart's exaggerated its package contents through subtle design.
B
In societal marketing, the ideal goal for companies is to turn all of their products into ________ ones. A) salutary ones B) desirable ones C) pleasing ones D) durable ones E) serviceable ones
B
Karl Lagaros, a marketing critic, is concerned about the pervasiveness about marketing. He points to advertising messages everywhere, from Web sites and e-mails to unwanted direct mail and catalogs to television commercials and product tie-ins to billboards and store signage. Karl is concerned about ________. A) high advertising and promotion costs B) cultural pollution C) deceptive practices D) false wants and too much materialism E) the balance between private goods and social goods
B
Several companies, some of them operating through the Internet, offer "paycheck advances." Consumers are encouraged to take out a loan against a paycheck they expect to receive in the near future. These short-term loans with high-interest rates, and high penalties for late payments, are often marketed to consumers who do not have traditional bank accounts. These companies could most easily be criticized for which of the following? A) shoddy products B) poor service to disadvantaged consumers C) high-pressure selling D) high advertising and promotion costs E) excessive markups
B
Some firms define their purpose in narrow product terms. Others that define their purpose in broad social terms follow ________. A) societal marketing B) sense-of-mission marketing C) consumer-oriented marketing D) customer-value marketing E) consumerism
B
The ________ is specifically focused on future company needs only. A) societal marketing concept B) strategic planning concept C) sustainable marketing concept D) marketing concept E) consumer business concept
B
When a company makes marketing decisions by considering consumers' wants and interests, the company's requirements, and society's long-run interests, it is practicing ________ marketing. A) value B) societal C) sense-of-mission D) consumer-oriented E) customer-value
B
Which sustainable marketing principle requires that a company seek real product and marketing improvements? A) consumer-oriented B) innovative C) customer-value D) sense-of-mission E) market-oriented
B
________ involves thinking ahead in the design stage to create products that are easier to reuse, recycle, or recover. A) Pollution control B) Design for environment (DFE) C) Consumerism D) Societal marketing E) Strategic planning
B
________ is an organized movement of concerned citizens and government agencies to protect and improve people's living environment. A) Consumerism B) Environmentalism C) Social responsibility D) Enlightened marketing E) Sense-of-mission marketing
B
________ persuades people to buy goods they had no thought of buying. A) Sustainable marketing B) High pressure selling C) Strategic marketing D) Redlining E) Reverse redlining
B
ABC, Inc. is currently designing a new product line with the goal of making each product easy to recover, reuse, or recycle. ABC, Inc. hopes to recover many of these products when they reach the end of their lifecycle and reuse components in new products. ABC, Inc. is in the ________ stage of environmental sustainability. A) pollution prevention B) new clean technology C) product stewardship D) beyond greening E) sustainability vision
C
Albatross Enterprises was accused of deceptive pricing. Which of the following explains what might have happened? A) Albatross refused to advertise sale prices in the local paper. B) Albatross lured customers to the store for a bargain that is out of stock. C) Albatross advertised a large price reduction from a phony high retail list price. D) Albatross misrepresented a product's features in an ad. E) Albatross used misleading labeling.
C
All of the following are components of both internal and external "greening" and "beyond greening" activities EXCEPT ________. A) pollution prevention B) product stewardship C) environmentalism D) new clean technology E) sustainability vision
C
All of the following are examples of cultural pollution EXCEPT ________. A) commercials during serious programs B) ads in magazines C) street signs in an urban area D) billboards marring beautiful scenery E) spam in an e-mail inbox
C
All of the following are traditional sellers' rights EXCEPT ________. A) the right to charge any price for the product B) the right to spend any amount to promote the product C) the right to promote any product to any audience D) the right to use any buying incentive programs E) the right to introduce any product in any size and style
C
Baker Enterprises produces several new products that have low appeal but may benefit consumers in the long run. What is the most accurate classification of these products? A) deficient B) pleasing C) salutary D) desirable E) unpleasing
C
Businesses hire ________ firms to use mass media to create materialistic models of the good life. A) Hollywood B) Broadway C) Madison Avenue D) Fifth Avenue E) Michigan Avenue
C
Companies must decide what principle they should use as a guide on issues of ethics and social responsibility. All of the following are common philosophies to accomplish this end EXCEPT? A) Let the free market decide. B) Let the legal system decide. C) Let society decide. D) Let individual managers decide. E) Let individual companies decide.
C
Critics have charged that some companies intentionally manufacture their products with materials or components that cause the product to need to be replaced before it actually should need replacement. What is this called? A) product failure B) short-term planning C) planned obsolescence D) nonfunctional warranty E) expressed dissatisfaction
C
Critics who believe that the American marketing system poorly serves disadvantaged consumers claim that the ________ pay more for inferior goods. A) wealthy B) uneducated C) urban poor D) rural poor E) elderly
C
Deceptive practices fall into three groups: deceptive ________, deceptive ________, and deceptive ________. A) product; pricing; promotion B) pricing; promotion; placement C) pricing; promotion; packaging D) packaging; product; promotion E) product; packaging; placement Answer: C
C
Large marketing companies can use patents and heavy promotion spending to ________. A) acquire smaller companies B) bear the social costs of their operations C) set up barriers for others wanting to enter the industry D) achieve economies of scale E) offset cultural pollution
C
Many critics charge that the American marketing system causes ________ to be higher than they would be under more "sensible" systems. A) imports B) exports C) prices D) product safety measures E) employee morals
C
Marketers respond to charges of high advertising and promotion costs that unnecessarily increase retail prices by arguing all of the following factors EXCEPT? A) Advertising and promotion make consumers feel wealthy. B) Advertising and promotion make consumers feel attractive. C) Advertising and promotion adds quality to the product. D) Advertising and promotion adds value by informing potential buyers of the availability and merits of a brand. E) Advertising and promotion is necessary for a firm to match competitors' efforts.
C
Marketers respond to charges of planned obsolescence with all of the following EXCEPT? A) Consumers like change. B) No one is forced to buy the new product. C) The product will eventually wear out anyway. D) For most technical products, customers want the latest innovations. E) Companies do not want to lose customers to other brands.
C
Minimizing pollution from production and all environmental impacts throughout the full product life cycle is called ________. A) green marketing B) design for environment (DFE) C) product stewardship D) environmental sustainability E) pollution prevention
C
Proposals ________ include promoting the use of sustainable ingredients, recycling and reducing solid wastes, and managing energy consumption. A) related to the right to be informed B) related to consumer protection C) for preserving the world for future consumption D) relating to quality of life E) related to the right to charge any price for the product
C
Setting prices below cost, threatening to cut off business with suppliers, and discouraging the purchase of a competitor's products are all examples of ________. A) routine competition B) excessive materialism C) predatory competition D) acquisitions E) barriers to entering a market
C
The ________ is specifically focused on the future welfare of consumers only. A) strategic planning concept B) sustainable marketing concept C) societal marketing concept D) consumer business concept E) marketing concept
C
The challenge for makers of which type of product is to add long-run benefits without reducing the product's pleasing qualities? A) salutary B) desirable C) pleasing D) durable E) deficient
C
The first organized consumer movement in the United States took place in the early 1900s. It was fueled by all of the following conditions EXCEPT ________. A) rising prices B) conditions in the meat industry C) unsafe merchandise D) scandals in the drug industry E) Upton Sinclair's writing
C
All of the following are sustainable marketing principles EXCEPT ________. A) consumer-oriented marketing B) customer-value marketing C) innovative marketing D) value marketing E) societal marketing
D
As international trade barriers come down and global markets expand, environmental issues are having ________ impact on international trade. A) a neutral B) a positive C) a decreased D) a greater E) more impact on cultural differences and less
D
Consumers Union, the nonprofit testing and information organization, publishes ________ to assist the consumer in choosing products and to encourage businesses to eliminate product flaws. A) Consumer Digest B) Buyers Weekly C) Home & Garden D) Consumer Reports E) Sports Illustrated
D
Critics claim that companies in the ________ industries introduce planned streams of new products that make older models obsolete, a form of planned obsolescence that harms consumers. A) car and truck B) housing and construction C) food and beverage D) consumer electronics and computer E) financial and entertainment
D
Cultural pollution continually pollutes people's minds with all of the following messages EXCEPT ________. A) materialism B) sex C) power D) religion E) status
D
Dales Drugstore sells cough medicine that is sour and ineffective. This is an example of a ________ product. A) societal B) pleasing C) salutary D) deficient E) desirable
D
All of the following are concepts that define the needs of consumers and/or businesses EXCEPT? A) Marketing concept B) Societal marketing concept C) Strategic planning concept D) Sustainable marketing concept E) Consumer business concept
E
All of the following would be considered hazards in tested products EXCEPT ________. A) electrical dangers in appliances B) carbon monoxide poisoning from room heaters C) injury risks from lawn mowers D) faulty automobile design E) sour-tasting medicine
E
Companies can develop ________, which serves as a guide to the future. It shows how the company's products and services, processes, and policies must evolve and what new technologies must be developed to get there. A) new clean technology B) cradle-to-cradle practices C) pollution prevention D) product stewardship E) a sustainability vision
E
In response to charges of ________, marketers point out that advertising makes much of television and radio free to users and also keeps down the cost of magazines and newspapers. A) too few social goods B) creating false wants C) creating too much materialism D) high promotion costs E) cultural pollution
E
Marketers claim that consumers often don't understand the reasons for high markups. All of the following are reasons a pharmaceutical company claims they must markup prices EXCEPT ________. A) to cover cost of purchasing B) to cover cost of promoting C) to cover cost of distributing existing medicines D) to test new medicines E) to gain a profit
E
Our wants and values are LEAST influenced by which of the following? A) family B) education C) religion D) cultural background E) intermediaries
E
Proposals related to the consumer's right to ________ include controlling the ingredients that go into certain products and packaging as well as reducing the level of advertising "noise." A) not buy a product that is offered for sale B) expect the product to perform as claimed C) be well informed about important aspects of the product D) be protected against questionable marketing practices E) influence products and marketing practices in ways that will improve the "quality of life"
E
Proposals related to the consumer's right to be informed including knowing all of the following EXCEPT ________. A) unit pricing B) ingredient labeling C) nutritional labeling D) product freshness (open dating) E) product safety
E
Recently, a class-action lawsuit was brought against McDonald's, charging that its food has contributed to the nationwide obesity epidemic. The suit was eventually dismissed, but many critics continue to point out the health dangers of many "fast food" menu items. These critics are concerned that the fast food industry has used ________. A) high-pressure selling B) deceptive promotions C) deceptive pricing D) deceptive packaging E) harmful products
E
TerraPass is a company that offers consumers the opportunity to buy carbon offsets, which are contributions to projects that combat global warming by reducing carbon emissions. TerraPass offers contribution packages for driving, flying, and home energy use. Through TerraPass, consumers can pay some of the ________ costs of their private goods and services. A) promotional B) safety C) health D) distribution E) social
E
Timberland employees get 40 hours paid leave each year to pursue volunteer projects. The company runs a service day that hosts projects in 25 countries, and it supports a nonprofit that brings young people into public service for a year. CEO Jeffrey Swartz sees such service as a powerful differentiator for Timberland with its current and potential customers. Timberland could be most accurately described as practicing ________. A) consumerism B) environmental sustainability C) sustainability vision D) innovative marketing E) sense-of-mission marketing
E
Trendy Teens manufactures fashionable clothing and accessories for the tween and teen female markets. New merchandise with a very different look is rolled out each season and heavily promoted as the "must-have" style in a variety of media. Trendy Teens could most easily be criticized for which of the following? A) deceptive promotions B) shoddy products C) high-pressure selling D) poor service to disadvantaged consumers E) planned obsolescence
E
