Principals of Marketing Midterm Questions:

18. ________________ promote ethical behavior by reducing opportunities for unethical behavior; employees know what is expected of them and what kind of punishment follows if rules are violated. a. Codes of conduct b. Compensation plans c. Mission statements d. Corporate objectives e. Human resources policies

a. Codes of conduct

10. ​Long-term relationships with profitable customers is the key objective of a. Customer relationship management. b. ​e-marketing. c. distribution channels. d. ​production oriented firms. e.​personal selling.

a. Customer relationship management.

2) 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. a telephone survey. c. an on-site computer interview. d. crowdsourcing. e. a shopping mall intercept interview.

a. a focus-group interview.

3) An informed guess or assumption about a certain problem or set of circumstances is known as a. a hypothesis. b. a reliable guess. c. managerial intuition. d. good research design. e. a description of the situation.

a. a hypothesis.

19. Budweiser, Heineken, Sam Adams, Corona, Guinness, and Miller are examples of __________ competitors in the beverage industry. a. brand b. product c. generic d. total budget

a. brand

13) In the process of conducting marketing research, marketers should allow for a. continual evaluation of the data during the entire collection period. b. periodic review of data during the collection period. c. statistical analysis during the collection period. d. descriptive research to solve general problems. e. no data review during collection; instead, they should wait for later interpretation of research findings.

a. continual evaluation of the data during the entire collection period.

8. A market orientation is an organization-wide effort that includes all of the following activities except​ a. focusing on the marketing department only. b. being responsive to customers' ever-changing wants and needs. c. generating marketing intelligence for use in the organization. d. ​disseminating marketing intelligence across departments within the organization. e. ​researching customers' needs.

a. focusing on the marketing department only.

3. A physical product you can touch is a(n) a. good. b. ​idea. c. ​philosophy. d. service.

a. good.

17. Companies that incorporate ethics and social responsibility into their strategic plans are likely to experience a. improved marketing performance. b. negative publicity. c. reduced costs. d. increased lawsuits. e. disappointed shareholders.

a. improved marketing performance.

11. ​The process of putting marketing strategies into action is called a. marketing implementation. b. the marketing action plan. c. ​marketing control. d. ​marketing auditing. e. ​marketing action.

a. marketing implementation.

14. Marketers who attempt to influence and change the various environmental forces have a(n) ____ response to these forces. a. proactive b. inactive c. variable d. positive e. reactive

a. proactive

18. Marketing activities help to produce __________ without which a business cannot survive. The success of businesses tends to lead to job creation, a higher standard of living, and even money to go toward social causes. Therefore, marketing contributes to the ___________ of society. a. profits; well-being b. customer satisfaction; technology c. periods of prosperity; creation d. consumer well-being; economics e. stakeholders; happiness

a. profits; well-being

15) The main focus of a marketing information system is on a. the accurate maintenance of inventory levels. b. data storage and retrieval. c. gathering information on competitive activity. d. classifying data into the proper information categories.

b. data storage and retrieval.

8) Quota sampling is most commonly used in a. surveys. b. exploratory studies. c. descriptive research. d. population research. e. collecting primary data.

b. exploratory studies.

19. Performance standards are derived from _____________ that were set while developing the marketing strategy. a. marketing goals b. marketing objectives c. core competencies d. marketing costs e. market opportunities

b. marketing objectives

7. A business that contributes resources to the community to improve the quality of life is taking on a(n) ____ responsibility. a. economic b. philanthropic c. legal d. ethical e. cost

b. philanthropic

17) Which one of the following statements about marketing information technology is true? a. Social media is one type of a decision support system. b. The Internet is a good source for qualitative data but not quantitative data. c. Marketing information systems typically include databases. d. "Big Data" refers to the large numerical figures that can be stored in a database. e. Big data refers to financial data that includes large dollar amounts.

c. Marketing information systems typically include databases.

14. Which of the following can help sustain interest in a product that has been around for a long time? a. Marketing concept b. Price c. Promotion d. Distribution e. Product

c. Promotion

6. According to the marketing concept, an organization should try to a. define its business as "making a product." b. view selling activities as the major means of increasing profits. c. provide products that satisfy customers' needs and allow the organization to achieve its goals. d. consider short-run objectives and cash flow needs before developing new products. e. put most of its emphasis on marketing activities and be less concerned with finance, accounting, and personnel.

c. provide products that satisfy customers' needs and allow the organization to achieve its goals.

20. From the company's perspective, there is a trade-off between increasing _______ for the customer and maximizing ________ from the transaction. a. satisfaction; value b. knowledge; revenue c. satisfaction; relationships d. value; profit e. relationships; utility

d. value; profit

11. Marketing activities a. and selling activities are basically the same. b. ​involve mainly distribution and promotion decisions. c. ​are aimed at persuading customers through advertising. d. ​help sell an organization's products and generate financial resources for the firm. e. ​are important only when a firm is developing new products or entering new markets.

d. ​help sell an organization's products and generate financial resources for the firm.

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

e. McDonald's reduces the labor costs to produce its sausage-egg biscuits.

8. The practice of linking a firm's product marketing to a particular social cause on an ongoing or short-term basis is known as a. economic responsibility. b. corporate benevolence. c. social responsibility. d. ethical marketing. e. cause-related marketing.

e. cause-related marketing.

7. An organization's business goals should be derived from its a. strategic plan. b. ​mission statement. c. ​strategic business plan. d. ​marketing plan. e. ​marketing strategy.

b. ​mission statement.

3. The accumulation of past income, natural resources, and financial resources is known as a. income. b. credit. c. wealth. d. savings. e. collected income.

c. wealth.

12. To monitor changes in the marketing environment effectively, marketers must engage in a. information collecting b. marketing research analysis c. economic scanning d. environmental scanning and analysis. e. self-regulatory analysis

d. environmental scanning and analysis.

16. Businesses that strive to determine what customers need or want and then develop products to satisfy those needs and wants are operating in a(n) ____ orientation. a. sales b. evolutionary c. disruptive d. production e. market

e. market

2) The primary psychological influences on consumer behavior are a. attitudes, perception, retention, exposure, roles, and lifestyles. b. perception, motives, reference groups, social class, and personality. c. lifestyles, personality, perception, motives, attitudes, and culture. d. attitudes, perception, social class, culture, and learning. e. perception, motives, learning, attitudes, personality, and lifestyles.

e. perception, motives, learning, attitudes, personality, and lifestyles.

4. When the right combination of circumstances occurs at the right time to allow an organization to take action toward a target market, the firm is faced with a a. market objective. b. ​market requirement. c. ​corporate objective. d. strategic market plan. e. ​market opportunity.

e. ​market opportunity.

3. A market opportunity results from a. an assessment of environmental forces. b. ​technological determinism. c. an increase in market share and profits. d. ​monitoring the firm's capabilities. e. ​the right combination of circumstances and timing that permits an organization to take action to reach a particular target market.

e. ​the right combination of circumstances and timing that permits an organization to take action to reach a particular target market.

1. Consumer confidence is at a low during periods of a. recession. b. recovery. c. slowdown. d.prosperity. e. depression.

e.depression.

20. A firm wants to build a subsidiary in the Middle East. However, it is apprehensive because of protests in some Middle Eastern countries and the violence in Syria. It does not know if it should take the risk of expanding. Which type of barrier does this situation represent? a. Legal and regulatory b. Competitive c. Political d. Sociocultural e. Economic

c. Political

9. Which of the following is not a component of a marketing plan? a. ​Environmental analysis b. ​Marketing strategies c. Product d.​Executive summary e. Marketing implementation

c. Product

11. Product testing for reliability and quality helps to ensure a consumer's right to a. performance. b. choose. c. be informed. d. safety. e. be heard.

d. safety.

10. A marketing plan document usually begins with a(n) a. situation analysis. b. ​introduction to the company's marketing objectives. c. opportunity and threat analysis. d. summary of current performance as compared with past performance. e. executive summary.

e. executive summary.

10. The four basic rights outlined in the consumer bill of rights include the right to safety, the right to be heard, the right to a. choose, and the right to be informed. b. redress, and the right to choose. c. inform, and the right to be chosen. d. honesty, and the right to redress. e. consumer education, and the right to honesty.

a. choose, and the right to be informed.

18) Which of the following issues is an ethical issue in marketing research? a. Rising cost of marketing research b. Confidentiality issues in marketing research c. Staffing the marketing research team appropriately d. Clogging consumers' email and mailboxes with promotional materials e. Using "big data" to sell products to consumers

b. Confidentiality issues in marketing research

9) Which of the following is the least flexible survey method? a. Observation b. Mail surveys c. Telephone surveys d. Personal interview surveys e. Focus-group interviews

b. Mail surveys

16) Which of the following is true about marketing research? a. Marketing research is being surpassed by marketing analytics. b. Marketing research can help develop marketing mixes that match customer needs. c. Marketing research is unrelated to a company's SWOT analysis. d. Marketing research no longer uses personal interviews as a survey method. e. Marketing research facilities the process of assessing a company's regulatory compliance.

b. Marketing research can help develop marketing mixes that match customer needs.

19. Which of the following is true about the marketing environment? a. Changing marketing environment forces are always advantageous for marketers. b. The effects of marketing environment forces can be difficult to predict. c. Marketing environment forces usually do not impact one another. d. Competitive marketing environment forces are the hardest to understand. e. Good marketers are able to anticipate all marketing environment forces before they arise.

b. The effects of marketing environment forces can be difficult to predict.

7. Which one of the following statements by a company president best reflects the marketing concept? a. We have organized an aggressive sales force in our company to promote our products. b. We have organized our business to make certain that customers get what they want. c. We try to produce only high-quality, technically efficient products. d. ​We believe that the marketing department must organize to sell what we produce. e. ​We try to encourage company growth.

b. We have organized our business to make certain that customers get what they want.

2. The focal point of all marketing activities a. are profits. b. are customers. c. are products. d. are sales. e. is the marketing mix.

b. are customers.

16. Marketers primarily focus their environmental analysis on ____ competitors. a. generic b. brand c. total budget d. product e. monopolistic

b. brand

5. A ____ is created when a company matches its core competency to opportunities it has discovered in the marketplace. a. strategic window b. competitive advantage c. market opportunity d. market requirement e. competitive opportunity

b. competitive advantage

9. Consumerism is a. President John F. Kennedy's consumer bill of rights. b. the efforts of independent individuals, groups, and organizations to protect the rights of consumers. c. marketers' efforts to contribute to the satisfaction and growth of the communities in which they operate. d. the right to be informed. e. the specific development, pricing, promotion, and distribution of products that do not harm the environment.

b. the efforts of independent individuals, groups, and organizations to protect the rights of consumers.

5. Which of the following is essentially an uncontrollable factor in developing a marketing mix? a. Pricing strategies b. ​Government regulations c. ​Product adaptations d. ​Advertising campaigns e. ​Retail locations

b. ​Government regulations

12. In a traditional organization, marketing decisions are likely to be a. very decentralized. b. ​centralized at the top levels of the organization. c. made by frontline managers. d. made by frontline employees. e. made only by the CEO.

b. ​centralized at the top levels of the organization.

2. The marketing plan is a. designed to specify not only marketing, but all other functional areas of business activities as well. b. a plan of all aspects of an organization's business strategy. c. a written document detailing activities to be performed to implement and control marketing actions. d. updated only periodically. e. written differently for each SBU.

c. a written document detailing activities to be performed to implement and control marketing actions.

16. Competitive growth strategies are based on a. the type of marketing mix chosen. b. a unit's market share and market growth. c. analyses of each product or business unit. d. the Boston Consulting Group's matrix. e. new types of target markets.

c. analyses of each product or business unit.

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

c. create a responsible approach to developing long-term relationships with customers and society.

14. The strategic planning process begins with a. analysis of target markets. b. development of marketing strategy. c. development of an organizational mission statement. d. development of a marketing plan. e. analysis of the marketing environment.

c. development of an organizational mission statement.

13. Three primary methods of collecting information for environmental scanning are a. secondary sources, company records, and observation. b. marketing research, company records, and advance orders. c. observation, secondary sources, and marketing research. d. company database, executive knowledge, and research. e. executive knowledge, media, and marketing research.

c. observation, secondary sources, and marketing research.

5) The two basic types of sampling that marketing researchers use are a. planned and spontaneous. b. even and odd. c. probability and nonprobability. d. stratified and quota. e. random and nonrandom.

c. probability and nonprobability.

5. 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. employee. c. stakeholder. d. customer. e. manager.

c. stakeholder.

4. ​Which of the following is most likely to be an idea marketer? a. Airline pilot b. Car salesperson c. ​Abuse counselor d. ​Orthodontist e. ​Attorney

c. ​Abuse counselor

2. Which category of income are marketers most interested in? a. Wealth b. Discretionary income c. Extra income d. Disposable income e. Total income

d. Disposable income

10) Which of the following can be effective in increasing mail survey response rates and developing panels of respondents who are interviewed regularly? a. Open-ended questions b. Crowdsourcing c. Samples d. Premiums e. Dichotomous questions

d. Premiums

7) In which type of sampling design is the final choice of respondents left up to the interviewer? a. Random b. Stratified c. Cluster d. Quota e. Area

d. Quota

13. To fully appreciate what an effective marketing concept means to the firm, the marketer must first understand that _______________ is the major focus of the marketing concept. This in turn should enable the firm to _______________. Ultimately, this all leads to _________________. a. selling products; earn long-term profits; organizational stability b. employee satisfaction; earn long-term profits; positive labor relations c. securing management; earn long-term profits; management continuity d. customer satisfaction; earn long-term profits; increased shareholder value e. regulatory compliance; earn long-term profits; reduced regulatory costs

d. customer satisfaction; earn long-term profits; increased shareholder value

6. ​Favorable conditions in the marketplace environment that could produce business rewards for the organization if acted upon properly are called a. strengths. b. threats. c. market strategies. d. opportunities. e. market niches.

d. opportunities.

14) In reporting marketing research findings, the researcher should a. write the report in an extremely technical and statistical style. b. give management the answers it wants. c. fit the problem to a favored statistical technique. d. provide explanations in language that those who use the report to make decisions can understand. e. not acknowledge any limitations associated with the study.

d. provide explanations in language that those who use the report to make decisions can understand.

15. Marketers who view political forces as being beyond their control are taking a(n) ____ response toward these forces. a. liberal b. aggressive c. competitive d. reactive e. proactive

d. reactive

6. Marketing ethics a. applies well-defined rules for appropriate marketing behavior. b. maximizes an organization's positive impact and minimizes its negative impact on society. c. refers to laws and regulations that govern marketing. d. refers to principles and standards that define acceptable conduct in marketing. e. is most important for advertising agencies.

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

15. The equation a buyer applies to assess a product's value is a. value = customer benefits − time and effort. b. value = customer costs − customer benefits. c. value = monetary price − customer benefits. d. value = customer benefits − customer costs. e. value = customer benefits − monetary price.

d. value = customer benefits − customer costs.

8. Which of the following statements is incorrect? a. Of the three levels of planning, corporate strategy is the broadest. b. Marketing strategy should be consistent with both the business-unit and corporate strategies. c. Strategic planning begins at the corporate level and proceeds through business-unit and marketing levels. d. Business-unit strategy should be consistent with the corporate strategy. e. Strategic planning begins at the marketing level and proceeds through business-unit and corporate levels.

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

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

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