MKT351 Exam 1 Study Guide

_____ describes how people make purchase decisions and how they use and dispose of the purchased goods and services. a. Promotion adaptation b. Consumer service c. Consumer behavior d. Product adaptation

c. Consumer behavior

Studying marketing is important because: a. marketing contributes directly to a company's profits and growth. b. regardless of your major, it is important to have a basic understanding of all business areas. c. it allows students to become better informed citizens. d. marketers earn higher salaries than other business areas.

a, b, and c

Companies who seek a B Corp certification likely do so because: (Check all that apply) a. they believe companies have a responsibility to help address social issues. b. they know that social responsibility positively impacts companies. c. they want to focus on making a profit. d. of pressure from government and advocacy groups.

a, b, and d

Which of the following represents a business's concern for society's welfare? a. Corporate social responsibility b. Opportunism c. Preconventional morality d. Moral relativism

a. Corporate social responsibility

Which of the following is an example of a market segment? a. A group of individuals aged between 60 and 75 years b. A group of individuals with different product needs c. A group of business units belonging to the same organization d. A group of companies producing similar products

a. A group of individuals aged between 60 and 75 years

Which of the following statements is a difference between a production orientation and a sales orientation? a. A production orientation focuses on the internal capabilities of a firm, while a sales orientation focuses on increasing a firm's profits by using aggressive advertisements. b. A production orientation displays a lack of understanding of the marketplace, while a sales orientation has a good understanding of the needs and wants of the marketplace. c. A production orientation endorses marketing as a means of selling things and collecting money, while a sales orientation endorses marketing as a means of fulfilling a firm's short-term goals. d. A production orientation focuses on using aggressive techniques to gain customers, while a sales orientation focuses on a firm's resources to build a better product

a. A production orientation focuses on the internal capabilities of a firm, while a sales orientation focuses on increasing a firm's profits by using aggressive advertisements.

The sole purpose of the _____ is to protect the health and safety of consumers in and around their homes. a. Consumer Product Safety Commission b. Patient Protection and Affordable Care Act c. Consumer Privacy Protection Act d. Human Rights Commission

a. Consumer Product Safety Commission

The _____ is aimed primarily at children's products, which are defined as those used by individuals 12 years old or younger. a. Consumer Product Safety Improvement Act b. Sherman Commission c. Sarbanes-Oxley Act d. Human Rights Commission

a. Consumer Product Safety Improvement Act

_____ are people born between 1979 and 1994. a. Generation Y b. Generation X c. The Baby Boomer generation d. The silent generation

a. Generation Y

Which of the following is true about inflation? a. Inflation is an indicator of the decrease in the value of money. b. During periods of low inflation, businesses that seek to increase their profit margins can do so by increasing their prices significantly. c. Inflation is a period of economic activity characterized by negative growth. d. Inflation occurs when the gross domestic product falls for two consecutive quarters.

a. Inflation is an indicator of the decrease in the value of money.

Which of the following is true of social media marketing? a. It differs from culture to culture; and, hence, cultural differences should be kept in mind while marketing. b. It has decreased the product sales of majority of the companies that used social media platforms. c. It is free of the old brick-and-motor rules, regulations, and habits, thereby providing unlimited access. d. It separates the companies from the international marketplace.

a. It differs from culture to culture; and, hence, cultural differences should be kept in mind while marketing.

Which of the following defines the DISC of inshoring? a. It is the practice of returning production jobs to the United States. b. It is the strategy of using more capital than labor in a production process. c. It is the strategy of marketing standardized products all over the world. d. It is the practice of sending U.S. jobs abroad.

a. It is the practice of returning production jobs to the United States.

Which of the following statements is true of gross domestic product (GDP)? a. It is the total market value of all final goods and services produced in a country for a given time period. b. It is a measure of the income from a standard set of goods and services in different geographic areas. c. It is the number of goods produced multiplied by the number of goods consumed in an economy. d. It is a measure of the value of goods and services in an area, an industry, or a sector of an economy.

a. It is the total market value of all final goods and services produced in a country for a given time period.

Which of the following statements is true of culture? a. Technology has accelerated the rate of cultural change. b. Evolving environment has made culture lose its dynamic value. c. Culture is a natural phenomenon that does not require any learning. d. Cultural values and influences are non-pervasive.

a. Technology has accelerated the rate of cultural change.

Which of the following statements is true of a multidomestic strategy? a. It occurs when multinational firms enable individual subsidiaries to compete independently in local markets. b. It presumes that the markets throughout the world are becoming more alike. c. It achieves lower production and marketing costs and increased profits through uniform production. d. It encourages firms to produce globally standardized products to be sold the same way all over the world.

a. It occurs when multinational firms enable individual subsidiaries to compete independently in local markets.

According to traditional economic theory, which of the following statements is true of globalization? a. It relies on competition to drive down prices and to increase product and service quality. b. It lowers the productivity and living standards of people in countries that open themselves to the global marketplace. c. It increases poverty in countries that involve in global marketing. d. It provides limited access to foreign capital.

a. It relies on competition to drive down prices and to increase product and service quality.

_____ is the legal process whereby a firm allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge. a. Licensing b. Importing c. Contract manufacturing d. Exporting

a. Licensing

In the context of a sales orientation, which of the following statements is true of marketing? a. Marketing is concerned with selling things and collecting money. b. Marketing is concerned with focusing on customer relationship management. c. Marketing is concerned with achieving customer satisfaction using minimal advertising. d. Marketing is concerned with customer wants and needs while meeting organizational objectives.

a. Marketing is concerned with selling things and collecting money.

Which of the following is not true about cause-related marketing? a. Most cause-related marketing is done by small companies. b. The popularity of cause-related marketing is growing. c. Cause-related marketing is a marketing relationship, not just a donation. d. Cause-related marketing does not always target the company's customers.

a. Most cause-related marketing is done by small companies.

_____ are individuals who influence consumer buying decisions and are often the most informed, plugged-in, and vocal members of society. a. Opinion leaders b. Capitalists c. Decision makers d. Initiators

a. Opinion leaders

Which of the following factors leads to a product/service differentiation competitive advantage? a. Providing product with uniqueness b. Removing frills from products and services c. Incurring high overhead costs d. Providing low-quality products

a. Providing product with uniqueness

_____, an American value that strongly influences attitudes and lifestyles, states that every person should stand on his or her own feet. a. Self-sufficiency b. Individualism c. Achievement orientation d. Upward mobility

a. Self-sufficiency

Which of the following statements is an argument against corporate social responsibility? a. Some analysts believe that a business should focus on making a profit and not environmental issues. b. Recent research has found that being socially responsible leads to negative impact on the firm. c. Corporate social responsibility has shown a decrease in the number of its supporters. d. Corporate social responsibility produces an indirect profit and sometimes no profit at all.

a. Some analysts believe that a business should focus on making a profit and not environmental issues.

Which of the following statements is true of moral relativists? a. They emphasize the pressure of the moment and whether the pressure justifies the action taken. b. They believe that arson is always wrong. c. They compare a current ethical dilemma with examples of similar ethical dilemmas and their outcomes. d. They focus on adhering to absolute rules like law.

a. They emphasize the pressure of the moment and whether the pressure justifies the action taken

Which of the following statements is true of Asian Americans? a. They have the highest average family income of all groups. b. Their population is declining. c. They are older than all other ethnic groups. d. They are less educated compared to all other groups.

a. They have the highest average family income of all groups.

In the context of external environment, which of the following is true of natural resources? a. Vast differences in natural resources result in major shifts of wealth among countries. b. Steep declines in the price of oil had a positive impact on America's oil producers. c. The past decade has witnessed an abundance of natural resources. d. Petroleum is the only natural resource that affects international marketing.

a. Vast differences in natural resources result in major shifts of wealth among countries.

Asian Americans are sometimes called a marketer's dream because they a. are younger, better educated, and have higher incomes than average. b. tend to be more open-minded about relationships than their parents. c. tend to spend more on groceries and hair care products than on technology. d. are more likely to patronize convenience, drug, and dollar stores.

a. are younger, better educated, and have higher incomes than average.

In the context of the consumer decision journey, _____ streamlines journey steps. a. automation b. proactive personalization c. involvement d. contextual interaction

a. automation

The relationship between the benefits a consumer receives from a product or service and what they give up to obtain those benefits is known as: a. customer value. b. sacrifice. c. an exchange. d. customer satisfaction.

a. customer value.

CVS Health engaged in strategic planning when it: a. decided to no longer sell tobacco products in its stores. b. closed five locations for two days during Hurricane Irma. c. ran an advertisement in the Sunday paper which included a coupon. d. made a one-time donation to the Alzheimer's Foundation of America.

a. decided to no longer sell tobacco products in its stores.

According to Ansoff's strategic opportunity matrix, _____ is a strategy of increasing sales by introducing new products into new markets. a. diversification b. product development c. market penetration d. hedging

a. diversification

A production orientation philosophy a. does not consider whether the goods and services that a firm produces most efficiently meet the needs of the marketplace. b. does not apply to services. c. is based on the belief that people will buy more goods and services if aggressive sales techniques are used irrespective of their needs. d. overlooks the internal capabilities of an organization.

a. does not consider whether the goods and services that a firm produces most efficiently meet the needs of the marketplace.

In the context of the marketing mix, the goal of distribution strategies is to a. ensure that products arrive in usable condition at designated places when needed. b. determine appropriate prices for products taking into consideration the prices of competitors' products. c. identify market segments. d. advertise products or services.

a. ensure that products arrive in usable condition at designated places when needed.

The _____ is the way an individual would like to be perceived. a. ideal self-image b. real self-image c. personality d. lifestyle

a. ideal self-image

Consuming products that have a limited availability a. leads to more consumer enjoyment than if the items were always available. b. allows consumers to take their time in purchasing that product. c. promotes the items that are always available to a niche market. d. offers less customer satisfaction.

a. leads to more consumer enjoyment than if the items were always available.

In the context of the marketing mix, distribution strategies are concerned with a. making products available when and where customers want them. b. informing and educating target markets about products. c. what a buyer gives up in order to obtain a product. d. advertising and organization of a product in order to promote sales.

a. making products available when and where customers want them.

All of the following are conditions of an exchange except: a. money is the medium of exchange. b. each party has something that might be of value to the other party. c. at least two parties are required. d. each party is free to accept or reject the exchange offer.

a. money is the medium of exchange.

To provide insights into the needs and wants of divorced parents, lifelong singles, and childless couples, marketers should be aware of _____. a. nontraditional life cycles b. aspirational groups c. primary reference groups d. opinion leaders

a. nontraditional life cycles

The greater the _____, the more likely it is that marketers will recognize a problem as unethical. a. number of people affected by negative consequences b. disagreement among managerial peers that an action is unethical c. extent of ethical problems within an organization d. length of time between the action and the onset of negative consequences

a. number of people affected by negative consequences

In the context of global marketing, _____ can be taken to mean either creating a new product for a market or drastically changing an existing product. a. product invention b. product distribution c. promotion adaptation d. product adaptation

a. product invention

The _____ is the idea that an organization exists not only to satisfy customer wants and needs but also to preserve individuals' long-term best interests. a. societal marketing orientation b. sales orientation c. promotional orientation d. production orientation

a. societal marketing orientation

The pyramid of corporate social responsibility a. states that a business is expected to do what is right in addition to making profits. b. stresses that organizations should give more importance to charity than to achieving profits. c. implies that the legal responsibility of organizations is more important than any other responsibility. d. has four similar and interdependent components.

a. states that a business is expected to do what is right in addition to making profits.

Which of the following are true of marketing? Check all that apply. a. It focuses solely on selling the goods, services, or ideas that the company produces. b. It involves building long-term, mutually beneficial relationships. c. It is a philosophy or perspective that stresses customer satisfaction. d. It entails processes that focus on delivering value and benefits to customers.

b, c, and d

How should an organization identify its most valuable customers? a. By picking a specific age group and catering to their demands b. By understanding what drives loyalty in customers c. By introducing the need for change in component lifestyles d. By changing their marketing mix every subsequent year

b. By understanding what drives loyalty in customers

In the context of marketing strategies, which of the following statements is true of low-involvement products? a. They are bought independent of any cultural, social, individual, and psychological factors. b. Consumers may not recognize their wants until they are in a store. c. As consumer buying decisions always occur in the closed environment of a store, in-store displays are ineffective. d. They can be marketed through the same strategies adopted for high-involvement products.

b. Consumers may not recognize their wants until they are in a store.

As we discussed in class, the Maslow's Hierarchy Scale of Needs accurately reflects that a person's need for love and belongness is consistently more important than their Physiological needs. a. True b. False

b. False

Modern advanced technologies are very important for many companies which either import or export products, because such technologies enabled the beginning of global trade. a. True b. False

b. False

When consumers' buy expensive things such as luxury cars, that they have long wanted and saved for, they do rely on logic and reasoning when making the purchase decision because of its significance in their lives. a. True b. False

b. False

The _____ was enacted because Congress was concerned about U.S. corporations' use of illegal payments and bribes in international business dealings. a. Corruption of Foreign Public Officials Act (CFPOA) b. Foreign Corrupt Practices Act (FCPA) c. Children's Online Privacy Protection Act (COPPA) d. Prevention of Corruption Act (PCA)

b. Foreign Corrupt Practices Act (FCPA)

_____ was the first generation of latchkey children—products of dual-career households or, in roughly half of the cases, of divorced or separated parents. a. Generation Z b. Generation X c. Baby Boom generation d. Generation Y

b. Generation X

According to Maslow's hierarchy of needs, which of the following needs is a social need? a. Sense of accomplishment b. Shelter c. Sense of belonging d. Security

c. Sense of belonging

Which of the following statements is true of ethics training? a. Ethics training helps employees commit unethical acts that are beneficial to the company. b. Giving employees a long list of dos and don'ts does not really help employees navigate the gray areas or adapt to a changing world market. c. According to the Ethics Resource Center's National Business Ethics Survey (NBES), ethics training programs do not yield effective results. d. A detailed code of ethics that is given as a part of ethics training programs causes confusion among employees.

b. Giving employees a long list of dos and don'ts does not really help employees navigate the gray areas or adapt to a changing world market.

_____ is a country's gross domestic product (GDP) together with its income received from other countries less similar payments made to other countries. a. Total personal income b. Gross national income c. Gross domestic income d. Per capita income

b. Gross national income

Which of the following is true of an organization's code of ethics? a. It excludes employees from the process of its formulation. b. It helps employees identify what their firm recognizes as acceptable business practices. c. It is unwritten and is developed by employees through their personal experiences. d. It is an effective external control of behavior.

b. It helps employees identify what their firm recognizes as acceptable business practices.

Which of the following statements is true of a competitive advantage based on product/service differentiation? a. It can be achieved by increasing production costs. b. It is relatively longer lasting than cost competitive advantages. c. It serves only a limited geographic market that is not crucial to other competitors. d. It is the only viable option for small companies with limited resources.

b. It is relatively longer lasting than cost competitive advantages.

Any company that would like to market its products globally, and have the greatest potential for profits, should: a. Focus on exporting their products due to the relatively low costs and low risks that are associated with exporting b. Make direct investments in foreign nations to ensure they have complete ownership and control of the business c. Form joint ventures with other firms in foreign nations, because each firm will have equal risks and rewards d. None of the above

b. Make direct investments in foreign nations to ensure they have complete ownership and control of the business

Tropical Horizons has opened spas in Thailand, Indonesia, and Malaysia and is aggressively expanding into countries around the Mediterranean. This illustrates which of the following strategies of Ansoff's strategic opportunity matrix? a. Market penetration b. Market development c. Product development d. Diversification

b. Market development

Which of the following statements is not true of marketing? a. Marketing focuses on practices that deliver value and benefits to customers. b. Marketing focuses primarily on selling goods, services, and/or ideas to customers. c. Marketing employs the combined use of communication, distribution, and pricing strategies. d. Marketing involves building long-term, mutually rewarding relationships with customers.

b. Marketing focuses primarily on selling goods, services, and/or ideas to customers.

Shelby is looking to purchase a new car. She knows from her marketing class, that she should research the different models she is interested in and evaluate the alternatives before making such a large purchase. This demonstrates which reason to study marketing? a. Marketing offers outstanding career opportunities b. Marketing is part of everyday life c. Marketing plays an important role in society d. Marketing is important to businesses

b. Marketing is part of everyday life

Which of the following refers to the rules people develop as a result of cultural values and norms? a. Self-regulations b. Morals c. Laws d. Social-regulations

b. Morals

Which of the following is a difference between outsourcing and inshoring? a. Outsourcing involves the sending of home country employees abroad, whereas inshoring involves the bringing of foreign employees into the home country. b. Outsourcing is the sending of home country jobs abroad, whereas inshoring is the returning of outsourced jobs to the home country. c. Outsourcing provides natural resources to a foreign firm, whereas inshoring acquires natural resources from a foreign firm. d. Outsourcing does not incur fuel and transportation costs, whereas inshoring is associated with increased fuel and transportation costs.

b. Outsourcing is the sending of home country jobs abroad, whereas inshoring is the returning of outsourced jobs to the home country.

Which of the following statements is a difference between preconventional morality and conventional morality? a. Preconventional morality represents the morality of a mature adult, while conventional morality is the most basic level of morality. b. Preconventional morality is based on what will be immediately punished or rewarded, while conventional morality is based on whether a proposed action is legal. c. Preconventional morality is more concerned with how a proposed action will be viewed by others, while conventional morality is more concerned about how people judge themselves. d. Preconventional morality moves from an egocentric viewpoint toward the expectations of society, while conventional morality is self-centered.

b. Preconventional morality is based on what will be immediately punished or rewarded, while conventional morality is based on whether a proposed action is legal.

Which of the following statements is a difference between preconventional morality and postconventional morality? a. Preconventional morality is concerned with how one judges oneself, while postconventional morality is concerned with whether a proposed action is legal. b. Preconventional morality represents the most basic level of morality, while postconventional morality is the morality of a mature adult. c. Preconventional morality is based on loyalty and obedience to the organization, while postconventional morality is based on whether a proposed action is legal. d. Preconventional morality moves from an egocentric viewpoint toward the expectations of society, while postconventional morality is self-centered.

b. Preconventional morality represents the most basic level of morality, while postconventional morality is the morality of a mature adult.

Which of the following statements is true of marketing strategies that can be adopted for high-involvement products? a. In-store promotion can be used as an important tool. b. Promotion to the target market should be extensive and informative. c. Marketing managers should focus on package design, so the products are eye-catching and easily recognized on store shelves. d. Marketing managers should link the products to a relatively low-involvement product.

b. Promotion to the target market should be extensive and informative.

SWOT analysis stands for: a. Skills, Wants, Objectives, Technologies b. Strengths, Weaknesses, Opportunities, Threats c. Strengths, Worries, Opinions, Target market d. Strategies, Weaknesses, Organization, Threats

b. Strengths, Weaknesses, Opportunities, Threats

Which of the following strategies should a company adopt to stimulate innovation? a. Limiting research to areas that they are already familiar with b. Talking to early adopters c. Discouraging employees from pursuing their personal projects d. Refraining from conducting basic research

b. Talking to early adopters

Which of the following is the definition of marketing? a. The practice of persuading or seeking to persuade a consumer or organization to purchase a product or service. b. The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. c. The methods employed by a firm to demonstrate to consumers a product or service's value. d. The process of communicating through various print and online media in order to notify the public about a firm's goods and services.

b. The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

In the context of competitive factors in the external business environment, which of the following statements is true? a. Global competition has been decreasing drastically. b. The availability of resources for businesses has declined. c. Competition is irrelevant to businesses in the field of technology. d. Marketers are now required to concentrate only on domestic competitors.

b. The availability of resources for businesses has declined.

When considering ethics in other countries, which of the following statements is true? a. Corruption seldom occurs in international business dealings. b. The practice of making illegal payments, such as bribes, is accepted and expected in various countries. c. Ethical beliefs vary widely from culture to culture. d. Prosecutions under the Foreign Corrupt Practices Act have significantly declined.

b. The practice of making illegal payments, such as bribes, is accepted and expected in various countries.

Which of the following statements is true regarding companies engaged in relationship marketing? a. They are focused on developing a competitive advantage. b. They are focused on improving rapport with current customers. c. They are focused on attracting new customers. d. They are focused on increasing sales volume.

b. They are focused on improving rapport with current customers.

Which of the following statements is true of opinion leaders? a. They cannot be created by marketers to promote products. b. They are the most influential and informed members of society. c. They demand that people must conform to certain norms of a particular group. d. They can easily span multiple diverse domains.

b. They are the most influential and informed members of society.

Which of the following is typically the least profitable method for a firm to market its products in foreign nations? a. To make a direct investment in a foreign nation to build and manage their own operations in that nation. b. To export their products into foreign markets c. To develop joint ventures with firms in foreign nations d. To contract the manufacturing of their products to firms in foreign markets

b. To export their products into foreign markets

A production orientation philosophy focuses on a. adopting aggressive pricing strategies for a firm's products. b. assessing the resources of a firm. c. choosing the best promotional strategy. d. advertising a product aggressively.

b. assessing the resources of a firm.

A company that suffers from marketing myopia: a. creates a single product targeted to a single market. b. defined their business in terms of goods and services rather than in terms of the benefits customers seek. c. has both low market attractiveness and low business position as illustrated by the GE model. d. expects to see an increase in profits immediately after pursing a strategic alternative, rather than after increasing their market share.

b. defined their business in terms of goods and services rather than in terms of the benefits customers seek.

When a business asks "What business are we in?" they are: a. writing a marketing plan. b. defining their business mission. c. determining how many SBUs to create. d. conducting an environmental analysis

b. defining their business mission.

Fresnas Cuisine, a restaurant chain, recently introduced fast food on its menu because management recognized that their customers are predominantly young people. This scenario illustrates how____ _____ influence marketing decisions. a. economic factors b. demographic factors c. legal factors d. ethical factors

b. demographic factors

Individualism, one of America's core values, asserts that a. no one should be treated differently from anybody else. b. each person is unique and special in their own way. c. every person should stand on his or her own two feet. d. individuals should exercise their rights to frugality.

b. each person is unique and special in their own way.

A company that produces running shoes specifically for customers with low arches, utilizes a market-orientation approach and likely: a. uses personal selling as a primary means of generating sales. b. employs customer relationship management strategies. c. defines its business in terms of the goods and services it offers. d. focuses on selling what the company makes rather than making what the market wants.

b. employs customer relationship management strategies.

Collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan is called: a. SWOT analysis. b. environmental scanning. c. competitive advantage. d. cost competitive advantage.

b. environmental scanning.

When thinking about modes of social control, acceptance of standards established by advocacy groups and trade associations: a. causes unnecessary pressure on companies. b. is voluntary self-regulation by companies who wish to act ethically. c. is recommended for companies that wish to obey the law. d. is required for companies to be considered ethical.

b. is voluntary self-regulation by companies who wish to act ethically.

Business firms can stimulate innovation by: a. hiring employees who have a low tolerance for risk. b. letting employees know that they have the freedom to fail. c. using micromanagement techniques. d. talking to late adopters.

b. letting employees know that they have the freedom to fail.

A _____ is referred to as the driving force that causes a person to take action to satisfy specific needs. a. value b. motive c. belief d. norm

b. motive

Equality, one of America's core values, is a value that means a. hard work, dedication to family, and frugality are moral and right. b. no one should expect to be treated differently from anybody else. c. success would come to anyone who has an education and who worked hard. d. every person should stand on his or her own feet regardless of their background

b. no one should expect to be treated differently from anybody else.

If a target market is international, _____. a. it should be approached with a marketing mix similar to the local culture b. political structures affecting the market plan should be described c. marketing mix should be independent of cultural influences d. psychographics of the target market need not be assessed

b. political structures affecting the market plan should be described

The _____ classifies each strategic business unit (SBU) by its present or forecast growth and market share. a. opportunity matrix b. portfolio matrix c. General Electric model d. SWOT analysis model

b. portfolio matrix

At the level of _____, people are less concerned about how others might see them and more concerned about how they see and judge themselves over the long run. a. ethnocentric morality b. postconventional morality c. preconventional morality d. conventional morality

b. postconventional morality

In the context of the marketing mix, _____ is often the most flexible of the four Ps—the quickest element to change. a. promotion b. price c. product d. place

b. price

The Foreign Corrupt Practices Act (FCPA) has been criticized for: a. allowing U.S. corporations to make illegal payments to foreign governments to obtain business rights. b. putting U.S. corporations at a competitive disadvantage in international trade. c. stopping U.S. corporations from making any long-term international business deals. d. inhibiting foreign governments from luring U.S. corporations into establishing businesses in foreign lands.

b. putting U.S. corporations at a competitive disadvantage in international trade.

Both large and small firms have embraced social media marketing because a. countertrade is possible only through social media and the Internet. b. sites such as Facebook, YouTube, and other social media are successful and are popular around the world. c. opening an e-commerce site results in a low chance of being involved in lawsuits and other legal affairs. d. the promise of "borderless commerce" and the global "Internet economy" is no longer restrained by the old brick-and-mortar rules, regulations, and habits.

b. sites such as Facebook, YouTube, and other social media are successful and are popular around the world.

The price of one country's currency in terms of another country's currency is called _____. a. a denomination b. the exchange rate c. the face value d. an exchange control

b. the exchange rate

Marketers are more likely to recognize a problem as unethical when: a. it affects a small number of people. b. there is greater consensus that the action is harmful. c. it is less likely to result in a damaging outcome. d. there are more ethical problems within their organization.

b. there is greater consensus that the action is harmful.

Which of the following is a difference between a code of ethics and morals? a. A code of ethics is governed by legal norms, while morals are governed by social norms. b. A code of ethics is developed as a result of cultural values, while morals are written guidelines that are used by marketing professionals for decision making. c. A code of ethics is a culmination of principles that help in making the decision of what is good or bad, while morals are the beliefs of the individual or group as to what is right or wrong. d. A code of ethics is different for different people, while morals are structured uniformly.

c. A code of ethics is a culmination of principles that help in making the decision of what is good or bad, while morals are the beliefs of the individual or group as to what is right or wrong.

As we discussed in class, the major part of the cost to clean up the "Great Pacific Garbage Patch" should be paid by: a. The firms which produce things such as plastic that are in the patch b. The firms, such as Coca-Cola, which market products such as bottled and canned beverages, of which many bottles and cans end up in the ocean c. All entities, including consumers, firms that produce the products which are in the patch, firms that market products such as fish nets that are in the garbage patch, governments throughout the world, and many others d. Governments worldwide because they have the financial ability to pay for the cleaning up of the garbage patch

c. All entities, including consumers, firms that produce the products which are in the patch, firms that market products such as fish nets that are in the garbage patch, governments throughout the world, and many others

Which of the following is an example of cause-related marketing? a. CVS Stores provide free bottled water to those affected by Hurricane Irma. b. Walmart makes a one-time charitable donation to the Ronald McDonald House. c. Aveda donates $4 for each specially-branded hand crème with pink cap to the Breast Cancer Research Foundation. d. Nationwide Insurance's sponsorship of NASCAR driver Dale Earnhardt Jr.

c. Aveda donates $4 for each specially-branded hand crème with pink cap to the Breast Cancer Research Foundation.

Which of the following is true of the factors that affect consumer decision making? a. Cultural values are static and do not affect the purchase behavior of consumers. b. Psychological factors include gender, age, family life cycle stage, personality, self-concept, and lifestyle. c. Cultural factors exert the broadest and the deepest impact on consumer behavior. d. Social, individual, and psychological factors do not affect a decision-making process.

c. Cultural factors exert the broadest and the deepest impact on consumer behavior.

Which of the following is the first step in creating a global marketing mix? a. Analyzing the effects of product and promotion on international consumers b. Identifying local suppliers and distributers c. Developing a thorough understanding of the international target market d. Gathering information about current product prices

c. Developing a thorough understanding of the international target market

Which of the following statements is true of individual characteristics of a person? a. People are compelled to spend more money if they want to change their lifestyles. b. Individual characteristics change drastically with a person's age due to the change in personality. c. Individual characteristics are generally stable over the course of people's lives. d. People are more willing to try different lifestyles instead of sticking to one.

c. Individual characteristics are generally stable over the course of people's lives.

Which of the following is true of an international joint venture? a. Joint ventures are rarely permitted by a government as a mode of entry into its country. b. The firm that initiated the joint venture owns the title of the goods produced. c. It enables a local firm to acquire managerial skills and new technology. d. It tends to be relatively less risky than exporting and franchising.

c. It enables a local firm to acquire managerial skills and new technology.

Which of the following statements is true of the pyramid of corporate social responsibility? a. It portrays philanthropic performance as the foundation for the other three responsibilities. b. It states that even if companies do not make profits, other responsibilities have to be fulfilled. c. It has four components that are distinct but together constitute the whole. d. It states that governments have more social responsibility than nongovernment organizations.

c. It has four components that are distinct but together constitute the whole.

Which of the following statements is true of a secondary membership group? a. It influences consumers' behavior when they try to maintain distance from it. b. It includes groups with which people interact regularly in an informal manner. c. It includes groups with which people interact in a less consistent and formal manner. d. It is a direct reference group.

c. It includes groups with which people interact in a less consistent and formal manner.

Which of the following statements is true of a company in the first stage of global business development? a. It sets up foreign subsidiaries to handle sales in one country. b. It diversifies its business in another country. c. It operates in its home country and sells its products in another country. d. It establishes its core corporate functions in different countries.

c. It operates in its home country and sells its products in another country.

In the context of Ansoff's strategic opportunity matrix, which of the following statements is true of the market penetration alternative? a. It is riskier than other alternatives in Ansoff's strategic opportunity matrix. b. It decreases product quality to offer products at low prices. c. It tries increase market share among existing customers. d. It creates new uses for old products manufactured by an organization.

c. It tries increase market share among existing customers.

Typically, Marketing requires understanding consumers': a. Physiological needs b. Ability to pay for products c. Psychological values d. Demographics

c. Psychological values

_____ states that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of the firm's operation. a. Rule utilitarianism b. Act utilitarianism c. Stakeholder theory d. Stakeholder principle

c. Stakeholder theory

Which of the following does Dr. Broyles view as the best example of a firm which succeeded because of its ability to take advantage of various environmental issues: a. Johnson & Johnson b. Coca-Cola Company c. Standard Oil d. Microsoft

c. Standard Oil

Which of the following is not true about effective strategic planning? a. Effective strategic planning requires the support and participation of top management. b. Constant monitoring of the firm's environment is helpful in effective strategic planning. c. Strategic planning should be done on a yearly basis. d. Strategic planning is effective when it is based on creativity.

c. Strategic planning should be done on a yearly basis.

Which of the following statements is true of production-oriented firms? a. These firms consider whether the goods produced meet the needs of the marketplace. b. These firms fail in a market where demand exceeds supply. c. These firms survive and prosper where competition is weak. d. These firms predominantly focus on the needs of customers.

c. These firms survive and prosper where competition is weak.

Which of the following statements is true of firms that succeed in competitive markets? a. They believe that using aggressive sales techniques are sufficient to gain high profits. b. They hope that the product they produce is something that customers want. c. They first determine what customers want and then produce it. d. They focus on what the management thinks should be produced.

c. They first determine what customers want and then produce it.

As I discussed in class, many Millennials are beginning to purchase homes because: a. They realize that owning a home is a good investment b. They want their own home instead of living with their parents c. They want a home, so their pets will have more space to play and live d. All of the above

c. They want a home, so their pets will have more space to play and live

Which of the following statements is true of consumer decision making? a. Consumer decision making occurs independent of any external factor. b. Cultural, social, individual, and psychological factors do not influence the postpurchase behavior. c. Underlying cultural, social, individual, and psychological factors strongly influence the decision process. d. Consumers use routine response behavior for buying high-involvement products.

c. Underlying cultural, social, individual, and psychological factors strongly influence the decision process.

Carefully stated objectives serve all of the following functions except: a. serve as a motivator for employees to work towards. b. serve as the basis for control to which managers will measure objective performance. c. allow managers to set ambiguous goals with room for adjustment. d. communicate the firm's overall philosophies and objectives.

c. allow managers to set ambiguous goals with room for adjustment.

African Americans in the United States a. comprise the largest percentage of population among different minority groups in the United States. b. are inclined to spend less on groceries and hair care products as compared to other cohorts. c. are more likely to patronize convenience, drug, and dollar stores than other groups. d. acculturate into mainstream America forgetting their cultural heritage.

c. are more likely to patronize convenience, drug, and dollar stores than other groups

According to Ansoff's strategic opportunity matrix, a product development strategy entails a. attracting new customers to existing products. b. introducing new products to new markets. c. creating new products for present markets. d. attracting present customers to existing products.

c. creating new products for present markets.

The company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups is called ______. a. customer orientation b. customer value c. customer relationship management d. customer satisfaction

c. customer relationship management

Active ownership of a foreign company, of overseas manufacturing, or of marketing facilities is called _____. a. joint venture b. contract manufacturing c. direct foreign investment d. licensing

c. direct foreign investment

Rather than salmon, salad chain, Sweetgreen, features steelhead trout on their menu because it is farmed in more sustainable ways. This is an example of: a. social sustainability. b. economic sustainability c. environmental sustainability. d. green marketing.

c. environmental sustainability.

A consumer's information search should yield a group of brands, sometimes called the buyer's _____ set, which are the consumer's most preferred alternatives. a. intersection b. union c. evoked d. equivalence

c. evoked

In a(n) _____ information search, a person recalls information stored in the memory. a. external b. marketing-controlled c. internal d. nonmarketing-controlled

c. internal

Strategic planning: a. requires managers to set short-term goals to increase market share. b. involves integrating all of the promotional and marketing tools the firm plans to use to market their products and services. c. is the process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities. d. evaluates a firm's marketing activities and strategies using metrics and compares results with the goals or standards set for the market activities.

c. is the process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities.

An important part of evaluating satisfaction with a purchase is reducing any lingering doubts. To reduce cognitive dissonance, a consumer could do all of the following except: a. look for favorable reviews of the product online. b. seek positive opinions about the products from friends and family. c. look for unfavorable reviews of the product online to confirm their doubts. d. return the product.

c. look for unfavorable reviews of the product online to confirm their doubts.

According to Ansoff's strategic opportunity matrix, _____ means attracting new customers to existing products. a. diversification b. product development c. market development d. market penetration

c. market development

The ethical theory that does not believe in absolute rules and states that during an ethical dilemma, the most appropriate decision is made by considering all the alternatives and choosing the lesser of the evils as the resolution is a. rule utilitarianism. b. casuist ethical theory. c. moral relativism. d. act utilitarianism.

c. moral relativism.

In the context of the buying behavior of a family, _____ are those members of a family who actually exchange money for a product. a. initiators b. influencers c. purchasers d. consumers

c. purchasers

In the context of marketing management philosophies, a sales orientation aims at a. understanding the needs and wants of the marketplace. b. assessing the internal capabilities of a firm. c. pushing manufacturers' products more aggressively to achieve high profits. d. integrating all organizational activities to satisfy customer wants.

c. pushing manufacturers' products more aggressively to achieve high profits.

Remembering only information that supports personal feelings or beliefs is called _____. a. cognitive dissonance b. subliminal perception c. selective retention d. self-actualization

c. selective retention

A(n) _____is a group of people who are considered nearly equal in status or community esteem, who regularly socialize among themselves, and who share behavioral norms. a. ethnic group b. family c. social class d. aspirational group

c. social class

Learning to differentiate among similar products is known as _____. a. selective perception b. stimulus generalization c. stimulus discrimination d. selective distortion

c. stimulus discrimination

_____ is measured by comparing income to the relative cost of a standard set of goods and services in different geographic areas. a. Final consumption expenditure b. Household debt c. Disposable income d. Purchasing power

d. Purchasing power

In the context of the marketing mix, which of the following statements is true of promotion? a. It ensures that products arrive in usable condition at designated places when needed. b. It encompasses pricing strategies for the products that are promoted. c. It works independently of the other Ps of the marketing mix. d. It includes advertising, public relations, and personal selling.

d. It includes advertising, public relations, and personal selling.

Which of the following statements is a difference between a buyer for export and an export broker? a. A buyer for export operates as domestic manufacturers' agent in a foreign country, while an export broker operates as a domestic customer and sells internationally. b. A buyer for export operates only in his/her home country, while an export broker operates in foreign markets. c. A buyer for export acts as a hired distributor for foreign customers, while an export broker is usually treated like a domestic customer. d. A buyer for export sells internationally for its own account, while an export broker brings the buyer and seller together.

d. A buyer for export sells internationally for its own account, while an export broker brings the buyer and seller together.

Which of the following is true about joint ventures? a. A joint venture is a risky way of entering a global market. b. Joint ventures are usually the only way a government will allow a foreign company to enter its country. c. Joint ventures enable the local firm or government to acquire managerial skills and new technology. d. All of these are correct

d. All of these are correct

_____ are people born between 1946 and 1964. a. Generation Y b. Millennials c. Generation X d. Baby Boomers

d. Baby Boomers

_________ is the private label manufacturing by a foreign company. a. Direct foreign investment b. Licensing c. Joint venture d. Contract manufacturing

d. Contract manufacturing

__________ provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines. a. Marketing audit b. Evaluation c. Implementation d. Control

d. Control

LG, a South Korean electronics company, has four divisions: Home Entertainment, Mobile Communications, Home Appliance & Air Solution, and Vehicle Components. In order for each of these divisions to be considered strategic business units, which of the following must be true? a. The divisions share the same competitors. b. LG corporate determines resources allotted to each division. c. They share a single mission and target the same consumers. d. Each division plans independently of the others.

d. Each division plans independently of the others.

The _____ is a federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce. a. Consumer Financial Protection Bureau b. Federal Trade and Development Agency c. U.S. Securities and Exchange Commission d. Federal Trade Commission

d. Federal Trade Commission

Which of the following is a benefit of outsourcing for the developing countries? a. Declining standards of living b. Crushing competition c. Shrinking development d. Global export markets and advanced technology

d. Global export markets and advanced technology

Which of the following is a reason for firms to adopt a societal marketing orientation? a. Low profits from sustainable development b. The urge to earn more profits c. The increased use of green marketing d. Growing environmental concerns

d. Growing environmental concerns

Which of the following is NOT a factor of external environment? a. Culture of a country b. Global economy c. Demographics d. Human resources of the organization

d. Human resources of the organization

Which of the following activities is not correct about the marketing concept? a. Satisfying customer wants and needs legally and responsibly. b. Focusing on internal capabilities rather than on customer wants and needs. c. Integrating all the organization's activities to satisfy customer wants. d. Implementing effective and high-quality sales techniques to sell goods and services.

d. Implementing effective and high-quality sales techniques to sell goods and services.

_____ is a measure of the decrease in the value of money, generally expressed as the percentage reduction in value since the previous year. a. Recession b. Disposable income c. Cost of living d. Inflation

d. Inflation

Which of the following statements is true of a strategic business unit (SBU)? a. It does not have competitors in its market. b. It has a generic mission and universal target market. c. Its plans are dependent on other SBUs. d. It has control over its resources.

d. It has control over its resources.

Which of the following statements is true of globalization? a. It raises the standard of living of high-wage families. b. It increases the restrictions on free trade. c. It encourages the monopoly of protected domestic traders. d. It increases the productivity and growth of businesses

d. It increases the productivity and growth of businesses

Which of the following statements is true of corporate social responsibility (CSR)? a. It refers to the legal duties that corporations must follow in order to avoid lawsuits. b. It refers to the exclusive duties of nonprofit organizations to deal with environmental and social issues. c. It is typically directed at employees and shareholders instead of the outer environment. d. It is demonstrated by companies that consider their relationship to the society in which they operate.

d. It is demonstrated by companies that consider their relationship to the society in which they operate.

Which of the following statements is true of a market opportunity analysis? a. It is limited to analyzing the pricing strategies of a company. b. It excludes information about competitors operating in the market. c. It provides an assessment of the internal environment of a firm. d. It is used to identify the market segments a company needs to focus on.

d. It is used to identify the market segments a company needs to focus on.

In the context of relationship marketing, which of the following statements is true of empowerment? a. It refers to getting trained in customer service as an employee of a firm. b. It refers to the innate ability of building relationships with customers. c. It refers to working together as cooperators instead of competitors. d. It refers to having the authority to solve customer problems on the spot.

d. It refers to having the authority to solve customer problems on the spot.

Which of the following is an individual fact or unique to consumers that influences their buying decisions? a. External stimulus b. Subculture c. Social class d. Lifestyle

d. Lifestyle

Which of the following factors is not associated with the others: a. The culture in which a person was born and lives b. The social group of which a person is a member c. The psychological foundation of a person's mind d. None of the above

d. None of the above

Which of the following statements refers to the target market strategy? a. Objectives can be inconsistent as long as they summarize the target market strategy. b. Managers should develop target market objectives that exceed the company's ability to achieve them. c. Target markets should not be selected by appealing to multiple market segments. d. Target markets can be selected by appealing to the entire market with one marketing mix.

d. Target markets can be selected by appealing to the entire market with one marketing mix.

Which of the following is a problem associated with conducting global market research to create a marketing mix? a. There is often too much data available to draw the samples. b. The type of marketing research used for global marketing is completely different from the ones used in domestic market. c. A global market research cannot be conducted in a real environment. d. The questions a marketer can ask may differ between cultures.

d. The questions a marketer can ask may differ between cultures.

n the context of relationship marketing, which of the following statements is true of employees who are empowered? a. They refrain from dealing directly with customers. b. They tend to take less risks. c. They lack the power of solving customer problems. d. They develop ownership attitudes.

d. They develop ownership attitudes.

When someone gives up something in order to receive something else they would rather have, it is called: a. a substitute. b. a transaction. c. a purchase. d. an exchange.

d. an exchange.

A way firms are keeping customers in the loyalty loop is by using _____. a. routine response behavior b. motivation c. contextual interaction d. automated reordering

d. automated reordering

Some manufacturers are developing costly buffer stocks in order to a. guarantee product adaptation and invention. b. break the price and promotion barriers that exist in manufacturing companies. c. shift to expensive but less dependable modes of transport. d. avoid shutting down production lines and failing to make timely deliveries.

d. avoid shutting down production lines and failing to make timely deliveries.

To avoid cultural problems in international marketing, _____. a. the websites of the home country can be used irrespective of the location of subsidiaries b. firms can follow global marketing standardization c. free software can be solely relied on for translating languages d. firms require a thorough understanding of a country's culture

d. firms require a thorough understanding of a country's culture

When a company develops a single product and follows the same means of promotion all over the world, it is said to be involved in _____. a. promotion specialization b. global marketing localization c. product decentralization d. global marketing standardization

d. global marketing standardization

In a direct foreign investment, direct investors a. possess the lowest potential reward. b. oppose any controlling interest. c. have low minority interest in a foreign firm. d. have the highest potential risk.

d. have the highest potential risk.

According to Ansoff's strategic opportunity matrix, a company is most likely to be using a market development strategy when a. it introduces a new product to its customers. b. it increases the prices of all its products. c. it sells its business units to other companies. d. it sells existing products to new and existing buyers.

d. it sells existing products to new and existing buyers.

All of the following are reasons for failing to achieve a marketing objective except: a. poor implementation. b. unrealistic marketing objectives. c. changes in the environment. d. objectives were too specific.

d. objectives were too specific.

When a firm provides something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition, a _____ exists. a. cost/revenue competitive advantage b. niche competitive advantage c. production competitive advantage d. product/service differentiation competitive advantage

d. product/service differentiation competitive advantage

A(n) _____ is a period of economic activity characterized by negative growth. a. inflation b. stagflation c. income boom d. recession

d. recession

A _____ is a homogeneous group of people divided on the basis of demographic characteristics, geographic regions, national and ethnic background, political beliefs, and religious beliefs. a. social class b. reference group c. popular culture d. subculture

d. subculture