Marketing Midterm

Penetration pricing is one new-product pricing approach that provides the most flexible introductory price.

False

Brand competitors market products with similar features, benefits, and prices to the same customers.

True

Products can be goods, services, or ideas

True

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

True

The buyer's intent can determine whether an item is classified as a consumer or a business product.

True

The first step in launching a research study is problem or issue definition. The first sign of a problem is usually a departure from some normal function, such as a failure to attain objectives.

True

The strength of one's buying power depends partially on the state of the economy.

True

When assessing value, customers consider nonmonetary costs such as time and effort

True

When evaluating the alternatives, the buyer rates and eventually ranks the brands in the consideration set.

True

Charmin toilet paper would be classified as which type of product? A) Convenience B) Shopping C) Specialty D) Unsought E) Industrial service

A) Convenience

Which of the following products is most likely to have an inverted C-shaped demand curve? A) Visit to the dentist B) Eternity perfume C) Starbucks coffee D) Pillsbury cake mix E) Ford Escape

B) Eternity perfume

A physical product that you can touch is a(n): A) philosophy B)idea C) good D) concept E) Service

C) good

Demand is best determined by a top management committee.

False

A company sometimes defines a total market as its target market.

True

A product need not be a physical product.

True

The purpose of the pricing concept is to quantify and express the value of items in a market exchange.

True

The reputation and well-known brand name of Mercedes-Benz automobiles represents a ____ for Mercedes-Benz. A) competitive advantage B) core competency C) market opportunity D) strategic window E) pricing strategy

B) core competency

Which of the following statements about social responsibility is correct? A) Social responsibility dimensions do not include philanthropic concerns. B) Social responsibility does not deal with the total effect of all marketing decisions on society. C) Social responsibility refers to a company's obligation to maximize its positive impact and minimize its negative impact on society. D) Social responsibility dimensions do not include economic concerns. E) Social responsibility refers to principles and standards that define acceptable conduct in marketing as determined by various stakeholders.

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

When shopping for detergent, Dylan looks at Arm & Hammer, Gain, Method, and Cheer and chooses the one that is on sale. These four brands make up his ____ set. A) alternate B) purchase C) consideration D) problem E) imposed

C) consideration

When more information is needed about a problem and a tentative hypothesis needs to be made more specific, marketers usually conduct ____ research. A) descriptive B) experimental C) exploratory D) analytical statistical E) conclusive

C) exploratory

Marketing research is a process designed to gather information A) exclusively about a company's customers. B) from the company's database. C) not currently available to decision makers. D) about the needs and desires of employees. E) concerning the interpretation of the company's sales goals.

C) not currently available to decision makers

Advertisements for Suave shampoos emphasize that other shampoos may cost more but don't work any better than Suave. In this example, Suave is competing on the basis of A) product attributes. B) product performance. C) product price. D) available selection. E) product packaging.

C) product price.

Socially responsible business practices have provided all of the following benefits except A) creating goodwill toward the organization. B) attracting employees. C) reducing marketing costs. D) generating publicity for the firm. E) positively impacting local communities.

C) reducing marketing costs.

Most pricing objectives based on ____ are achieved by trial and error because not all cost and revenue data are available when prices are set. A) market share B) cash flow C) return on investment D) survival E) product quality

C) return on investment

Price is a key element in the marketing mix because it relates most directly to A) the size of the sales force. B) the speed of an exchange. C) quality controls. D) the generation of total revenue. E) brand image.

D) the generation of total revenue

Which of the following is a requirement for setting pricing objectives? A) The objectives should be short-term oriented. B) There should be only one pricing objective. C) An evaluation of competitors' prices should be made. D) The cost structure should be identified. E) The objectives should be explicitly stated.

E) The objectives should be explicitly stated

To find a target market, a firm can use one of these targeting strategies. A) Total market strategy and the undifferentiated strategy B) Product differentiation strategy and the customer differentiation strategy C) Demographic strategy and the psychographic strategy D) Socioeconomic strategy and the psychological strategy E) Undifferentiated strategy, the concentrated strategy, and the differentiated strategy

E) Undifferentiated strategy, the concentrated strategy, and the differentiated strategy

If Little Caesars wants to determine the impact of different coupon offers on pizza unit sales, it needs to conduct A) exploratory research. B) hypothesis development. C) survey research. D) stratified sampling. E) experimental research.

E) experimental research

Research that allows marketers to make causal inferences about relationships is called A) variable research. B) relationality. C) exploratory research. D) linkage research. E) experimental research.

E) experimental research

Marketers can influence consumers' evaluations by describing alternatives to products and their attributes in a certain manner, a practice known as A) selective distortion. B) selective retention. C) selective exposure. D) bracketing. E) framing.

E) framing

To build long-term customer relationships, marketers are turning to: A) stakeholder analytics B) data analytics C) the marketing environment and a sales orientation D) marketing research E) marketing research and data analytics

E) marketing research and data analytics

Minerals, chemicals, timber, and agricultural products are considered A) process materials. B) accessory materials. C) MRO supplies. D) component parts. E) raw materials.

E) raw materials

Any constituent who has a claim in some aspect of a company's products, operations, markets, industry, or outcomes is known as a(n) A) shareholder. B) customer. C) employee. D) manager. E) stakeholder.

E) stakeholder

During the Industrial Revolution demand for manufactured goods were: A) mediocre B) declining C) weak D) non-existent E) strong

E) strong

An organization's obligation to maximize its positive impact and minimize its negative impact on society is known as social accountability.

False

An undifferentiated targeting strategy does not target a single market with one marketing mix.

False

At the most basic level of marketing citizenship, marketers have an obligation to contribute funds to philanthropic causes.

False

Cause-related marketing refers to the specific development, pricing, promotion, and distribution of products that do not harm the natural environment.

False

Consumers are reluctant to purchase substitute brands if a desired brand of a convenience product is unattainable.

False

Exploratory research is concerned with identifying the characteristics of markets or categorizing market activities.

False

Pure competition is a common competitive environment.

False

The actual act of purchase is the second stage of the consumer buying decision process.

False

The first step of the target market selection process is identifying the appropriate targeting strategy; the last step is evaluating relevant market segments.

False

The width of a product mix refers to the number of generic products offered by a company.

False

​A marketing objective need not be consistent with the firm's overall objectives.

False

​A marketing strategy is a written document that specifies the activities to be performed to implement and control a firm's marketing activities.

False

A market is a group of people who, as individuals, have needs for products in a product class and have the ability, willingness, and authority to purchase such products.

True

A marketer is usually in a better position to establish prices when it knows the prices charged for competing brands.

True

An example of a business market would be farmers.

True

Customer advisory boards are small groups of actual customers who serve as sounding boards for new product ideas and offer insights into their feelings and attitudes toward a firm's products, promotion, pricing, and other elements of marketing strategy

True

Customer advisory groups are often used as a type of exploratory research.

True

Customer relationship management is the use of information about customers to create marketing strategies that develop and sustain desirable customer relationships

True

Environmental analysis helps managers identify potential threats and opportunities linked to environmental changes.

True

Focus-group interviews are useful if the researcher is interested in observing group interaction.

True

Marketers' contributions of resources to community causes such as education, recreation, and others illustrate social responsibility on a community-relations level.

True

Marketing ethics refers to principles and standards that define acceptable conduct in marketing.

True

Marketing research can be used to test a hypothesis.

True

Monitoring the competitive environment guides marketers in developing competitive advantages.

True

One condition for effective segmentation is that at least one segment must have substantial profit potential.

True

Price competition is a very flexible marketing strategy.

True

Price is the most easily adjusted ingredient in the marketing mix.

True

Price is the value that is exchanged for products in a marketing transaction.

True

Pricing objectives should be considered overall goals to aid the organization in its long-range plans.

True

Problem recognition speed can vary from quite rapid to very slow.

True

Procter & Gamble has a wider product mix than does Baskin Robbins.

True

The key to locating and defining problems is to probe beneath the superficial symptoms.

True

Which of the following is always used to determine the classification of a good? A) Buyer's intent for using the product B) Amount of shopping required by the buyer to obtain the product C) Price of the product D) Specific product features E) Industry competitors

A) Buyer's intent for using the product

Which of the following is a characteristic of a marketing objective?: A) It is consistent with both business-unit and corporate strategy. B) It is a verbal agreement, not in writing. C) It is not written in measurable terms. D) It does not specify a time frame for its accomplishment. E) It clearly identifies how marketing strategy will be implemented.

A) It is consistent with both business-unit and corporate strategy

The Ethan Allen furniture company collects information about a wide variety of competitive, economic, political, legal and regulatory, technological, and sociocultural forces that affect its marketing activities. This process is called A) environmental scanning. B) survey of environment. C) environmental monitoring. D) environmental analysis. E) marketing information processing.

A) environmental scanning

At the breakeven point, A) the money a company brings in from selling products equals the amount spent producing the products. B) the total fixed costs are exactly equal to the total variable costs. C) profits are exactly equal to the difference between revenue and total variable costs. D) the marginal revenue of a product is exactly equal to the marginal cost of producing one more unit. E) the marginal cost curve and the average cost curve will be identical for a particular product.

A) the money a company brings in from selling products equals the amount spent producing the products.

If a product has an inelastic demand and the manufacturer raises its price, A) total revenue will increase. B) quantity demanded will decrease. C) the demand schedule will shift. D) the demand will become more inelastic. E) total revenue will decrease.

A) total revenue will increase.

​A market opportunity results from: 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)the right combination of circumstances and timing that permits an organization to take action to reach a particular target market.

One way in which marketers can demonstrate social responsibility is through programs in sustainability. Which of the following is not included as a goal of sustainability? A) Long-term well-being of the natural environment B) Focusing primarily on the external environment of the company C) Considering individuals as part of the natural environment D) Adopting more eco-friendly business practices E) Improving technologies that protect the natural environment

B) Focusing primarily on the external environment of the company

When establishing prices, a marketer's first step is to A) determine demand. B) develop pricing objectives. C) select a pricing policy. D) evaluate competitors' prices. E) determine a pricing method.

B) develop pricing objectives

​____ strategy determines the means for utilizing resources in the functional areas of marketing, production, finance, research and development, and human resources to achieve the organization's goals. ​A) Corporate ​B) Business-unit ​C) Marketing ​D) Mission statement ​E) Marketing mix

A) Corporate

According to the textbook, a manager's duties in an environmental analysis include: A) checking information for accuracy, resolving inconsistencies, and assigning significance to the findings. B) observation and assessment. C) conducting research, assessment, and reporting. D) observation, market research, and fact finding. E) checking the company database, conducting research, and reporting.

A) checking information for accuracy, resolving inconsistencies, and assigning significance to the findings.

Marketing research is best defined as A) the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities. B) a framework for the day-to-day management and structuring of information gathered by marketers. C) the use of tools and methods to measure and interpret the effectiveness of a firm's marketing activities. D) the collecting of data from secondary sources and internal documents. E) an intuitive process for making decisions based on personal knowledge and experience to take advantage of market opportunities.

A) the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities

Which of the following is NOT a requirement or characteristic of a market? A) The ability to purchase a product B) A large number of people or organizations C) The authority to buy a product D) The willingness to use buying power E) The need for a specific product in a specific product category

B) A large number of people or organizations

Which type of business market tends to have the most complex buying procedures? A) Reseller B) Institutional C) Retailer D) Government E) Producer

D) Government

After Staples gathers information related to its marketing environment, it attempts to define current environmental changes and predict future changes. This determines possible opportunities and threats facing the company. It illustrates the process that is called A) environmental scanning. B) survey of environment. C) marketing. D) environmental analysis. E) marketing information processing.

D) environmental analysis

One way that Kia evaluates its product and service level is by how well it ranks on the J. D. Power & Associates Sales Satisfaction Survey. In doing so, Kia is: A) controlling marketing activities. B) taking corrective action. C) empowering its employees. D) evaluating actual performance. E) setting performance standards.

D) evaluating actual performance.

Which of the following is NOT an example of a producer market member? A) Buyers of raw materials B) Buyers of semifinished items used to make other products C) Buyers of finished items used to make other products D) Buyers of services used for their operations of their organizations E) Buyers of finished products that intend to resell them for a profit

E) Buyers of finished products that intend to resell them for a profit

Which of the following is NOT a business product? A) Oil to be refined into fuel B) Chips to be integrated into components for personal computers C) Paper, pens, and tape to be used in an office D) Marketing consulting services to aid a company in marketing a new product E) Calculators bought to help individuals complete their personal federal income tax forms

E) Calculators bought to help individuals complete their personal federal income tax forms

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

False

A product line is a particular version of a product that can be designated as a distinct offering on the organization's list of products.

False

A recession is characterized by extremely high unemployment, very low wages, minimal total disposable income, and lack of consumer confidence in the economy

False

Marketers have more difficulty adjusting their prices than they do any other marketing mix variable.

False

Marketing citizenship refers to an organization's obligation to maximize its positive impact and minimize its negative impact on society.

False

Marketing consists primarily of selling and advertising

False

Four dimensions of social responsibility are economic, legal, ethical, and philanthropic.

True

Some stores employ comparison shoppers to learn what prices their competitors are charging.

True

The marketing environment consists of external forces that directly or indirectly influence an organization's acquisition of inputs and generation of outputs.

True

The marketing plan provides a framework to stimulate thinking and provide strategic direction.

True

The number of firms that control the supply of a product may affect the strength of competition.

True

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

​A) consistency; flexibility

A marketing plan document usually begins with a(n): ​A) executive summary. ​B) introduction to the company's marketing objectives. ​C) summary of current performance as compared with past performance. ​D) situation analysis. ​E) opportunity and threat analysis.

​A) executive summary

Products are classified as being business or consumer products according to the A) number of buyers involved in the decision. B) buyer's intended use of the product. C) seller's intended use of the product. D) location of use. E) types of outlets from which they are purchased.

B) buyer's intended use of the product

In shopping for a new laptop computer for her master's degree program, Jolene has narrowed the alternatives to four brands. She is considering Dell, Lenovo, Acer, and HP. These four brands make up Jolene's A) awareness set. B) consideration set. C) framing set. D) external search. E) alternative set.

B) consideration set

Apple has been successful by anticipating what consumers would want in new technological advances, convenience, and ease of use. The introduction of the iPad was an example of a _____ for Apple, something that an organization does extremely well and may give a company an advantage over its competition. A) benchmark B) sustainable competitive advantage C) core competency D)strategic vision E)marketing opportunity

C) core competency

Research that is conducted to clarify the characteristics of certain phenomena to solve a particular problem is called ____ research. A) primary B) experimental C) descriptive D) secondary E) exploratory

C) descriptive

Suppose that marketers at Unilever are trying to determine whether the use of free samples of Axe body spray was the reason for a sales increase in a particular store. The type of research conducted to answer this question is A) exploratory. B) descriptive. C) experimental. D) informal. E) qualitative.

C) experimental

The first step in the target market selection process is A) determining which segmentation variables to use. B) selecting specific target markets. C) identifying an appropriate targeting strategy. D) evaluating relevant market segments. E) developing market segment profiles.

C) identifying an appropriate targeting strategy

When Chaz realizes his liquor cabinet supply was devastated by last weekend's party, he first retrieves information from his memory about what types of liquor he and his friends like most and then asks the clerk at the liquor store what she would recommend. Chaz started with a(n) ____ search and then progressed to a(n) ____ search. A) consideration; evaluative B) focused; broad C) internal; external D) routinized; extended E) self; inclusive

C) internal; external

The four major competitive structures are A) monopolies, oligopolies, oligopolistic monopolies, and pure competition. B) pure competition, heavy competition, moderate competition, and light competition. C) brand, product, total budget, and generic. D) oligopolies, monopolies, monopolistic competition, and pure competition. E) monopolies, limited competition, oligopolistic competition, and pure competition.

D) oligopolies, monopolies, monopolistic competition, and pure competition.

Paperclips is an office supplies company that has just adjusted its price levels so that it can increase its sales volume to match its expenses. Paperclips is most likely employing a____ objective. A) product quality B) cash flow C) return on investment D) survival E) profit

D) survival

When Snapple takes the information collected through research and attempts to assess and interpret what it means for its beverage marketing efforts, Snapple is engaged in environmental: A) scanning. B) monitoring. C) management. D) assessment. E) analysis.

E) analysis

Dissatisfaction may occur shortly after a purchase; this is called cognitive dissatisfaction.

False

The evaluative criteria are objective but not subjective product characteristics that are important to a specific buyer when purchasing a product.

False

The four categories of consumer markets are producer, reseller, government, and institutional.

False

The marketing mix consists of three major variables: product, price, and distribution

False

The right to be informed means that consumers should be treated fairly when they complain to marketers about their products.

False

The role played by attitudes toward price in the overall evaluation of the marketing mix is a minor concern in identifying the target market.

False

The six stages of setting prices should always be followed if prices are to be set correctly.

False

The strategic planning process begins with a detailed analysis of the organization's strengths and weaknesses and the identification of opportunities and threats within the marketing environment.

False

The term business markets refers only to producer markets.

False

The use of market share as a pricing objective oversimplifies the value of price in contributing to profits.

False

There are four conditions that must be met before an exchange takes place. Once these conditions are met, an exchange will always take place

False

There are only two basic strategies for selecting target markets: the undifferentiated targeting strategy and the concentrated targeting strategy.

False

There is little or no difference between wholesalers' customers and retailers' customers.

False

Value= customer costs - customer benefits

False

A marketer's use of framing can make a product characteristic seem more important to a consumer and can facilitate its recall from memory.

True

When marketing activities deviate from accepted standards, the exchange process can break down, resulting in customer dissatisfaction, lack of trust, and lawsuits.

True

​A competitive advantage is created when a company matches its core competency to the opportunities it has discovered in the market.

True

During the evaluation of alternatives stage of the consumer buying decision process, the buyer selects the seller from whom he or she will purchase the product.

False

​Which of the following statements is incorrect?: A) Of the three levels of planning, corporate strategy is the broadest. ​B) Business-unit strategy should be consistent with the corporate strategy. ​C)Marketing strategy should be consistent with both the business-unit and corporate strategies. ​D)Strategic planning begins at the marketing level and proceeds through business-unit and corporate levels. ​E) Strategic planning begins at the corporate level and proceeds through business-unit and marketing levels.

​D)Strategic planning begins at the marketing level and proceeds through business-unit and corporate levels.

Price is seldom used as a competitive tool.

False

​A market is 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 these products.

True

​The Boston Consulting Group approach is based on a philosophy that a product's market growth rate and its market share relative to competition should be helpful in determining its marketing strategy.

True

Barter is the oldest form of exchange.

True

Which of the following statements about nonprice competition is false? A) Companies that use nonprice competition do not need to keep track of their competitor's prices. B) A company must be able to distinguish its brand through some unique feature in order to successfully engage in nonprice competition. C) A firm using nonprice competition can build loyalty to both its company and its products. D) When using nonprice competition, a company should promote the distinguishing characteristics of its brand. E) Buyers must view the distinguishing characteristics of a product offered through nonprice competition as being important.

A) Companies that use nonprice competition do not need to keep track of their competitor's prices.

If a marketing researcher is interested in observing group interaction during an informal, unstructured, and open-ended data collection process, he or she should use A) a focus-group interview. B) an on-site computer interview. C) a shopping mall intercept interview. D) a telephone survey. E) crowdsourcing.

A) a focus-group interview

When marketers emphasize price as an issue and match or beat the prices of other companies, they are using A) price competition. B) nonprice competition. C) comparative pricing strategies. D) demand-based pricing. E) supply-based pricing.

A) price competition

Which of the following companies is the BEST example of a service marketer? A) General Electric B) Sony C) The Democratic Party D) UPS E) American Eagle Outfitters

D) UPS

A service is intangible and is the result of the application of human or mechanical efforts to people or objects.

True

To monitor changes in the marketing environment effectively, marketers must engage in: A) environmental scanning and analysis. B) economic scanning and analysis. C) self-regulatory analysis. D) marketing research analysis. E) environmental monitoring.

A) environmental scanning and analysis.

In the consumer buying decision process, a buyer will search his or her memory for information about products that might solve the problem they have identified in the: A) internal search. B) external search. C) evoked search. D) purchase phase. E) postpurchase phase.

A) internal search

Forever 21 clothing stores sell primarily what type of products? A) Convenience B) Shopping C) Unsought D) Nondurable E) Specialty

B) Shopping

Which of the following is NOT a component of a marketing plan? A) Environmental analysis B) Marketing strategies C) Product specifications D) Executive summary E) Marketing implementation

C) Product specifications

One advantage of nonprice competition is that A) a firm can react quickly to competitive efforts. B) market share becomes less important. C) a firm can build customer loyalty. D) marketing efforts are completely eliminated. E) pricing is no longer a factor.

C) a firm can build customer loyalty

According to the text, a product is defined as A) anything the customer receives in an exchange. B) the physical object the customer receives in an exchange. C) the service that is rendered to a customer. D) the idea that the customer receives in an exchange. E) goods and services the customer receives in an exchange.

A) anything the customer receives in an exchange.

Maintaining or increasing market share A) can be achieved even if industry sales are flat or decreasing. B) is an infrequently used pricing objective in most industries. C) depends on the overall growth of the total industry. D) is a profit-related objective based on price. E) is directly tied to leading an industry in product quality.

A) can be achieved even if industry sales are flat or decreasing.

The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders is called A) marketing citizenship. B) social responsibility. C) stakeholders. D) cause-related marketing. E) strategic philanthropy.

A) marketing citizenship

United Airlines introduced a new "basic economy" seat category to better compete with discount airlines like Southwest and Spirit. Which of the following aspects of the marketing mix is United likely altering? A) price B) distribution C) target market D) product E) promotion

A) price

Products for which buyers are willing to spend much time comparing stores and brands for differences in prices, product features, and services are called ____ products. A) shopping B) specialty C) service D) convenience E) unsought

A) shopping

Honeybees are disappearing at an alarming rate, and since they pollinate about a third of all foods we eat, it is an important concern. That's why General Mills launched a #BringBacktheBees campaign, which included removing Buzz the bee from packages of Honey Nut Cheerios to increase the awareness of the issue. In addition, it gave away packets of wildflower seeds so that Cheerios lovers could grow flowers for bees. This example illustrates the positive consequences of A) social responsibility. B) corporate benevolence. C) green marketing. D) ethical responsibility. E) economic responsibility.

A) social responsibility

If Glad expresses concern that its plastic bags and storage products are having too great an impact on the pollution of groundwater under landfills, this concern is directly related to the firm's A) social responsibility. B) marketing concept. C) legal responsibility. D) ethical responsibility. E) corporate benevolence.

A) social responsibility

Which of these statements is NOT true about business markets? A) The purchase may be made to resell the item. B) The purchase is always made by more than one individual. C) The purchase may be made to use in general daily operations. D) The purchase may be made to use in production of another product. E) They can also be referred to as organizational markets.

B) The purchase is always made by more than one individual

Problem recognition occurs when a consumer A) searches for information to resolve a problem. B) becomes aware that there is a difference between a desired state and an actual condition. C) recognizes a need and evaluates information to resolve a problem. D) evaluates her or his purchase. E) is exposed to a television advertisement desired state and an actual condition.

B) becomes aware that there is a difference between a desired state and an actual condition.

Eighteen-year-old students do not form a market for alcoholic beverages because they A) lack sufficient buying power to form a market. B) lack the authority to purchase this type of product. C) do not want to purchase this type of product. D) do not have sufficient experience with this type of product. E) lack the money to purchase this type of product.

B) lack the authority to purchase this type of product

Marketers must take steps to make sure that the pricing objectives they set are consistent with the organization's ____ objectives and ____ objectives. A) advertising; marketing B) overall; marketing C) marketing; promotional D) overall; promotional E) overall; revenue

B) overall; marketing

Because retailers have to be concerned with product selection, price, and space, they often evaluate products on the basis of A) their markup. B) sales per square foot of selling area. C) how many of the product they can fit in a certain amount of space. D) profit per dollar of selling price. E) the reliability of the supplier.

B) sales per square foot of selling area.

During which stage of the consumer buying decision process does a consumer decide from which seller he or she will buy the product? A) Evaluation of alternatives B) Information search C) Source selection D) Purchase E) Problem recognition

D) Purchase

What type of pricing objective would an organization use if it were in a favorable position and desired nothing more? A) Return on investment B) Cash flow C) Profit D) Status quo E) Survival

D) Status quo

Which of the following is NOT a characteristic of a consumer market? A) It consists of purchasers who intend to consume or benefit from the purchased products. B) They do not buy products for the main purpose of making a profit. C) They are sometimes referred to as B2C markets. D) Their purchasing decisions are always made by only one individual. E) They may buy the product, but not use it themselves.

D) Their purchasing decisions are always made by only one individual

Aloft Hotels, Inc. has an objective of achieving a 25% return from its overall sales. This is an example of a ____ pricing objective. A) market share B) cash flow C) return on investment D) profit E) status quo

D) profit

Amos's Produce Stand buys produce from area farmers, marks the merchandise up to a price that includes some profit, and then sells the fruit and vegetables to the people in and around Plum Creek. Amos's would be classified as part of a ____ market. A) consumer B) producer C) government D) reseller E) wholesaler

D) reseller

Which of the following is NOT a factor cited in the text that affects the strategy for selecting a target market? A) Target market characteristics B) Product attributes C) Organizational resources D) Organizational objectives E) Organizational structure

E) Organizational structure

For most firms in the United States, demand curves are A) upward sloping to the right. B) completely horizontal. C) completely vertical. D) C-shaped. E) downward sloping to the right.

E) downward sloping to the right.

Institutional markets are A) intermediaries who resell goods to make a profit. B) federal and state government units. C) state or local government units. D) consumers who buy products for their own use. E) organizations that seek nonbusiness goals.

E) organizations that seek nonbusiness goals.

A friend of yours starts his own business. He would like to expand his client base to include the government, but he believes his small business would be ignored. Based on your knowledge from the text, you tell him A) that he's absolutely right, the government doesn't deal with small businesses. B) although the government will deal with small businesses, he will never make a profit off a government contract. C) that any government, federal, state, or local would laugh at the size of his business. D) the government rarely considers new suppliers when making purchasing decisions. E) the government buys products from all sizes of business, but there is some red tape.

E) the government buys products from all sizes of business, but there is some red tape

An information search, once completed, should identify for the buyer the one brand that he or she views as the best alternative

False

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

False

Experimental research is used to make tentative hypotheses more specific.

False

A product line includes a group of closely related product items that are considered to be a unit because of marketing, technical, or end-use considerations.

True

A target market is a specific group of customers on whom an organization focuses its marketing efforts

True

Buyers in producer markets purchase either raw materials, semifinished products, or finished products.

True

Buying behavior refers to the decision processes and actions of people involved in buying and using products.

True

Knowing the target market's evaluation of price allows the marketer to know how much emphasis to place on price and how to price a product relative to competition.

True

Lena is an award-winning fiction writer. She works out of her apartment. She recently purchased a new desk in which to store her manuscripts and for use when typing up stories for publication. Lena is part of the business market for the desk manufacturer.

True

Reseller markets consist of intermediaries that buy finished goods and resell them for profit.

True

Retailers purchase products and resell them to final consumers.

True

Sellers of farm produce would be likely to use an undifferentiated targeting strategy.

True

Total costs are influenced by quantities sold.

True

Purchasers who buy products for personal or household use and not for business purposes are called the A) ultimate consumers. B) end-use consumption group. C) business market. D) household purchasing group. E) organizational market

A) ultimate consumers

Marketing activities are: 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) used by small businesses and small nonprofit organizations the most D) implemented only to increase profits for the organization and to expand the scope of its customer base E) used by all types and sizes of businesses but are not used by nonprofit organizations

A) used by all sizes of organizations including for-profit, nonprofit, and government agencies

The five major stages of the consumer buying decision process, in order, are: A) information search, establishment of product criteria, evaluation of alternatives, purchase, and postpurchase evaluation. B) problem recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation. C) problem recognition, information search, evaluation of alternatives, postpurchase evaluation, and purchase. D) information search, evaluation of alternatives, purchase, trial adoption period, and postpurchase evaluation. E) problem recognition, purchase, evaluation of alternatives, postpurchase evaluation, and rebuy.

B) problem recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation.

A marketing plan: A) is characteristic of production-oriented firms and other mass producers. B) provides a framework for implementing and evaluating marketing activities. C) always increases the marketing manager's operating costs. D) produces plans that are short term in orientation. E) restricts the marketing manager's future options.

B) provides a framework for implementing and evaluating marketing activities.

Which of the following is NOT a dimension of social responsibility and marketing citizenship? A) Economic B) Ethical C) Legal D) Technological E) Philanthropic

D) Technological

Research designed to verify insights through an objective procedure to help marketers make decisions is called ____ research. A) primary B) secondary C) exploratory D) conclusive E) hypothetical

D) conclusive

Three primary methods of collecting information for environmental scanning are A) marketing research, company records, and advance orders. B) secondary sources, company records, and observation. C) executive knowledge, media, and marketing research. D) observation, secondary sources, and marketing research. E) company database, executive knowledge, and research.

D) observation, secondary sources, and marketing research.

Companies that are considered to be good corporate citizens and consider the diverse perspectives of different groups affected by their operations are said to have a ____ orientation. A) marketing B) sales C) production D) stakeholder E) citizen

D) stakeholder

When a firm designs a single marketing mix and directs it at an entire market for a particular product, the company is using a(n) ____ strategy. A) concentrated targeting B) differentiated C) heterogeneous market D) undifferentiated E) single mix

D) undifferentiated

Retailers like Staples and PetSmart are considered to be members of which business market? A) Reseller B) Customer C) Producer D) Institutional E) Government

A) Reseller

Which of the following is NOT an example of the implementation of the marketing concept? A) Ford asks customers to vote online for a new color for next year's Ford Focus B) Jimmy Dean's Sausage introduces turkey sausage patties for a healthier alternative to pork C) Volkswagen introduces pop-up rollover bars in its convertibles to protect its consumers in the event of a serious collision D) Linx offers rewards for users who can find flaws in its new software E) McDonald's reduces the labor costs to produce its sausage-egg biscuits

B) Jimmy Dean's Sausage introduces turkey sausage patties for a healthier alternative to pork

​Marketing is the process of: A) creating, distributing, promoting, and pricing goods, services, and ideas to facilitate the achievement of the firm's objectives. 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) ​promoting products through personal selling and advertising to develop and maintain favorable relationships with customers and stakeholders. E)focusing on customers' needs.

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.

What does the demand curve for a prestige product look like? A) It is a straight line where the quantity sold continues to increase as the price of each product increases. B) It is a curve where the highest and the lowest prices yield the greatest quantity sold and mid-range prices produce the fewest sales. C) It forms a curve where the greatest quantity sold comes at a medium price, and the quantities fall as the price increases or decreases. D) It forms a straight vertical line because of the prestige of the product, and quantity sold will remain stable regardless of the price. E) It slopes from left to right at a very mild slope; that is, as quantity increases, price decreases slowly.

C) It forms a curve where the greatest quantity sold comes at a medium price, and the quantities fall as the price increases or decreases.

When Liv goes to the first class of her Operations Management course, she finds out that in addition to the textbook she already purchased, she also needs a specific type of calculator. With regards to the calculator, at which stage of the consumer buying decision process is Liv? A) Purchase B) Evaluation of alternatives C) Problem recognition D) Information search E) Prepurchase evaluation

C) Problem recognition

_____ data yields information that can be communicated through numbers or metrics. A) Exploratory B) Qualitative C) Quantitative D) Conclusive E) Experimental

C) Quantitative

To meet federal gas mileage regulations, Ford has developed aluminum vehicle bodies that are light enough to help conserve fuel. What kind of response is this to environmental forces? A) Proactive B) Regulatory active C) Reactive D) Inactive E) Counteractive

C) Reactive

When the city of Portland buys iPads for its restaurant inspectors to use during their visits, the purchase from Apple would be considered A) a regulatory sale. B) a reseller purchase. C) a government purchase. D) a producer purchase. E) an institutional sale.

C) a government purchase

Collecting information from secondary sources such as business, government, trade, and general-interest publications plays an important role in A) environmental analysis. B) competitive forces. C) environmental scanning. D) competitive analysis. E) environmental monitoring.

C) environmental scanning

A target market: A) already has several competitors vying for customers' business B) Involves a large number of customers C) is a specific group of customers on whom an organization focuses its marketing efforts D) is a customer group classified as people with similar demographic characteristics E) is the same as a salesperson's prospective client list

C) is a specific group of customers on whom an organization focuses its marketing efforts

The three purposes for which individuals or groups can use products in order for it to be considered a business market are A) use in daily operations, end consumption, and resale. B) direct use in producing other products, company travel, and end consumption. C) resale, use in daily operations, and direct use in producing other products. D) governmental, institutional, and reseller purposes. E) making other products, selling to other businesses, making component parts.

C) resale, use in daily operations, and direct use in producing other products

Running a big sale in order to generate enough cash to pay creditors can occur in a situation in which a firm's primary pricing objective is A) keeping the status quo. B) profit. C) survival. D) market share. E) product quality.

C) survival.

Generally speaking, individuals who are unemployed would NOT be considered a target market for lawn care services because A) they would not desire such products. B) they would not be willing to purchase such products. C) they would not have the ability to purchase such products. D) such markets are narrowly defined geographically. E) they would not be authorized to purchase such products.

C) they would not have the ability to purchase such products.

Henry went skiing one weekend with several of his friends. While on the slope, he injured his leg and needed to see a doctor. Henry is likely going to view solutions to his problem as A) specialty products. B) installations. C) unsought products. D) shopping products. E) convenience products.

C) unsought products

What percent of all civilian workers in the United States perform marketing activities? A)50% B)25-49% C)25-33% D) 51-75% E)100%

C)25-33%

Which employees are ideally positioned to understand customers' needs and wants and thus a vital component in the chain of communications? A) Top executives B) Marketing managers C) Operations managers D) Manufacturing employees E) Customer-contact employees

E) Customer-contact employees

Analisa understands that even small businesses like her local catering business have certain responsibilities to society. She knows that she must abide by the laws that apply to her business and try to make a profit. What are the other obligations Analisa should know about? A) Ethical and moral B) Economic and ethical C) Philanthropic and legal D) Environmental and ethical E) Ethical and philanthropic

E) Ethical and philanthropic

When Bahama Breeze Ceiling Fans buys electrical wire for use in producing its ceiling fans, Bahama Breeze is part of what type of market for electrical wire? A) Resale B) Wholesale C) Customer D) Consumer E) Producer

E) Producer

A light bulb can be all of the following except A) a consumer product. B) a business product. C) either a consumer product or a business product. D) a business product if it is used to light an assembly line in a factory. E) a consumer product if it is used to light the office of the board of directors.

E) a consumer product if it is used to light the office of the board of directors

A market share objective A) is not recommended when sales for the total industry are declining. B) is not especially useful when sales for the total industry are increasing. C) is not especially useful when sales for the total industry are flat. D) is useful primarily in an industry where total sales are increasing. E) can be used effectively whether total industry sales are rising or falling.

E) can be used effectively whether total industry sales are rising or falling

You are shopping for a laptop or tablet to use for taking notes, research, and studying. In this case, you belong to a(n) A) concentrated market. B) business market. C) B2B market. D) industrial market. E) consumer market.

E) consumer market

PepsiCo introduced the "Customizer," a new freestanding soft drink dispenser where consumers can choose from over 120 different types of soft drinks and customize their drinks. Customizers would take the place of typical dispensers where there are only a few different types of soft drink brands available. To develop the new dispenser, PepsiCo collected information on the soft drink consumption habits of individuals in several different age groups, as well as information about new technologies for dispensing liquids from vending machines and the sales of its "fountain" syrup for national restaurant chains to use in their soft drink machines. PepsiCo's collection of this information is an example of _____ while the assessment of its impact on the potential for the new "Customizer" is an example of A) strategic management; environmental scanning. B) an environmental force; environmental scanning. C) environmental analysis; environmental strategy. D) strategizing; environmental scanning. E) environmental scanning; environmental analysis.

E) environmental scanning; environmental analysis

Grocery stores and supermarkets are a part of producer markets.

False

Marketing strategies should be established before marketing objectives are decided

False

Nonprice competition does not permit unique product features, higher product quality, and customer service.

False

Once initiated, the consumer buying decision process always leads to a purchase.

False

Price should be defined in terms of money only.

False

Product mix refers to a related group of products in the product line.

False

Products can be part of only the business or consumer market, depending on their end use.

False

Wholesalers sell primarily to ultimate consumers.

False

Descriptive research can be used to better understand the characteristics of certain phenomena to solve a particular problem.

True

The atmosphere and décor of a retail store, the variety and depth of product choices, the customer support, even the sounds and smells all contribute to the experiential element of its total product.

True

The four requirements of a market are that the individuals in the market must have a need for the product and the ability, willingness, and authority to buy it.

True

The importance of price depends on the type of product, the type of target market, and the purchase situation.

True

The market concept stresses that an organization can best achieve its objectives by being customer-oriented

True

The objective of profit maximization is rarely operational because its achievement is difficult to measure

True

The owner of a trucking business, who buys diesel fuel from the nearby service station for the company trucks, is a part of a business market.

True

The purpose of marketing research is to inform an organization about customers' needs and desires, marketing opportunities for particular goods and services, and changing attitudes and purchase patterns of customers.

True