BUL 2241 Business Law 1

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 Chapter 1: Creating Customer Relationships and Value through Marketing

 

1) In response to a growing interest in healthful, simple products among consumers, Chobani introduced

  1. A) an Italian-style ragù sauce.
  2. B) a Turkish-style cottage cheese.
  3. C) a French-style butter.
  4. D) a Greek-style yogurt.
  5. E) an Asian-style teriyaki sauce.

Answer:  D

Explanation:  Chobani introduced a Greek yogurt, a product that is higher in protein, lower in sugar, and thicker and creamier than typical American yogurt. The timing fit perfectly with the changing tastes of American consumers.

Topic:  Environmental Influences on Marketing

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

2) From its inception, Chobani wanted to place its yogurt where?

  1. A) in organic foods section of major grocery store chains
  2. B) in warehouse club stores like Sam’s Club or Costco
  3. C) in the dairy case of major grocery store chains
  4. D) in mass merchandise stores like Target
  5. E) in independent organic cooperatives, farmer’s markets, and major organic grocery stores like Whole Foods or Sprouts

Answer:  C

Explanation:  Chobani pushed for distribution in major grocery chains rather than smaller niche stores, and encouraged placement of the product in the main dairy cases of the stores, not in the specialty or health food sections. The thinking was that Americans would really like Greek yogurt if they tried it, and that they would try it if they had heard about it and could find it easily in their grocery store.

Topic:  The Four Ps

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

3) All of the following are marketing mix strategies that Chobani has used to sell its yogurt except which?

  1. A) sponsor U.S. Olympic and Paralympic teams
  2. B) price the Chobani yogurt line below its major competitors (Yoplait and Dannon) to increase sales and market share
  3. C) use Facebook, YouTube, and other social media to promote Chobani yogurt
  4. D) rely on word of mouth to reach new customers
  5. E) air a Super Bowl commercial featuring a large bear searching for a snack

Answer:  B

Explanation:  Marketers at Chobani did not price the Chobani yogurt line below its major competitors (Yoplait and Dannon) to increase sales and market share. There is no mention of Chobani’s pricing strategy or tactics in the chapter opener example of the textbook.

Topic:  The Four Ps

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

4) Which of the following statements about marketing is most accurate?

  1. A) Unless you take a marketing class, you will never truly know anything about marketing.
  2. B) Marketing is nothing more than common sense.
  3. C) Marketing requires an innate sense of creativity; you either have it or you don’t.
  4. D) You can call yourself a marketing expert only if you have sold something.
  5. E) You have significant marketing expertise since you make marketing-related decisions every day.

Answer:  E

Explanation:  You perform many marketing activities and make marketing-related decisions every day. Your experience in shopping gives you some expertise in marketing. As a consumer, you’ve been involved in thousands of marketing decisions, but mostly on the buying and not the selling side.

Topic:  Define Marketing

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

5) Elon Musk was involved in the inception of all of the following companies except which?

  1. A) SpaceX
  2. B) PayPal
  3. C) Tesla
  4. D) Facebook
  5. E) SolarCity

Answer:  D

Explanation:  Elon Musk has been involved in a variety of innovative business ventures, including PayPal, SpaceX, Tesla, and Solar City. He was not a part of Facebook’s inception.

Topic:  Define Marketing

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

6) Marketing refers to

  1. A) the production of products or services that will generate the highest return on investment.
  2. B) the strategies used in the advertising and promotion of products and services to customers around the globe.
  3. C) the process of identifying target market segments for a product or service and using selling tactics to reach them.
  4. D) the activity involved in getting a product or service from the manufacturer to ultimate consumers and organizational buyers.
  5. E) 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.

Answer:  E

Explanation:  Key term definition—marketing.

Topic:  Define Marketing

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

7) 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 is referred to as

  1. A) manufacturing.
  2. B) advertising.
  3. C) marketing.
  4. D) selling.
  5. E) promotion.

Answer:  C

Explanation:  Key term definition—marketing.

Topic:  Define Marketing

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

8) All of the following are true about marketing except which?

  1. A) Marketing is a broader activity than advertising.
  2. B) Marketing stresses the importance of delivering genuine benefits in the offerings of goods, services, and ideas sold to customers.
  3. C) Successful marketing usually results in one “winner” and one or more “losers.”
  4. D) When an organization engages in marketing, it should also create value for its partners and society.
  5. E) Marketing is a broader activity than personal selling.

Answer:  C

Explanation:  Marketing is defined as the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large. Marketing is a far broader activity than simply advertising or personal selling. It stresses the importance of delivering genuine benefits in the offerings of goods, services, and ideas marketed to customers. Also, notice that an organization’s marketing activities should create value for its partners and for society.

Topic:  Define Marketing

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

9) An organization’s stockholders, its suppliers, its employees, its customers, and society at large all share what in common with regard to an organization?

  1. A) All should benefit from the marketing of an organization’s offering.
  2. B) Everyone has a say in the ultimate design of a product.
  3. C) Everyone is legally culpable if something goes wrong with a product.
  4. D) All have to make some type of direct financial investment in the organization so it can profitably sell its products.
  5. E) All use the products and/or services marketed by the organization.

Answer:  A

Explanation:  Marketing is defined as the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large. It stresses the importance of delivering genuine benefits in the offerings of goods, services, and ideas marketed to customers. Also, an organization’s marketing activities should create value for its partners and for society.

Topic:  Define Marketing

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

10) Mizuno designs and sells high quality baseball gloves. Who benefits from the firm’s marketing activities for its gloves?

  1. A) a baseball or softball player who purchases a new Mizuno glove
  2. B) the Dick’s Sporting Goods salesperson who sells a customer a Mizuno glove
  3. C) the supplier who provided the leather to Mizuno
  4. D) the shareholder of Mizuno that designs and manufactures the gloves
  5. E) All stakeholders should benefit from Mizuno’s marketing efforts, even society at large.

Answer:  E

Explanation:  Marketing is defined as the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large. It stresses the importance of delivering genuine benefits in the offerings of goods, services, and ideas marketed to customers. Also, notice that an organization’s marketing activities should create value for its partners and for society.

Difficulty: 3 Hard

Topic:  Define Marketing

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

11) To serve both buyers and sellers, marketing seeks to ________ and satisfy the needs and wants of prospective customers.

  1. A) change
  2. B) create
  3. C) manipulate
  4. D) discover
  5. E) measure

Answer:  D

Explanation:  To serve both buyers and sellers, marketing seeks (1) to discover the needs and wants of prospective customers and (2) to satisfy them.

Topic:  Define Marketing

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

12) To serve both buyers and sellers, marketing seeks to discover and ________ the needs and wants of prospective customers.

  1. A) change
  2. B) satisfy
  3. C) create
  4. D) manipulate
  5. E) preserve

Answer:  B

Explanation:  To serve both buyers and sellers, marketing seeks (1) to discover the needs and wants of prospective customers and (2) to satisfy them.

Topic:  Define Marketing

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

13) Whether an individual is considering a purchase for personal or household use, or an organization is buying for its own use or for resale, the individual or organization would be considered

  1. A) a prospective customer.
  2. B) a dual-purpose marketing decision maker.
  3. C) a potential distributor.
  4. D) an informed buyer.
  5. E) an end user.

Answer:  A

Explanation:  Prospective customers include both individuals, buying for themselves and their households, and organizations that buy for their own use (such as manufacturers) or for resale (such as wholesalers and retailers).

Topic:  Consumer Needs and Wants

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

14) A student wants to buy a smartphone so she can share pictures with her friends. An insurance claims adjuster wants to buy a smartphone to document accidents (take pictures, write a report, etc.). If they both purchase the same model smartphone, such as an Apple iPhone, which statement is most accurate?

  1. A) The adjuster is a prospective customer because the smartphone will be used for work; the student is only a secondary user since the purpose of the smartphone is just for entertainment.
  2. B) Both the adjuster and the student are potential customers because in their own way, they both benefit from the smartphone.
  3. C) Neither the adjuster nor the student is a prospective customer since the company will pay for the adjuster’s smartphone and the student’s parents will pay for hers.
  4. D) The student is the prospective customer since there are more students buying smartphones for personal use than there are insurance adjusters buying smartphones for business use.
  5. E) Only a person who has bought a smartphone previously is a prospective customer because only previous owners of smartphones benefit from buying new ones.

Answer:  B

Explanation:  Prospective customers include both individuals, buying for themselves and their households, and organizations that buy for their own use (such as manufacturers) or for resale (such as wholesalers and retailers). A prospective customer includes anyone who could benefit from owning a product, whether previously owning one or not.

Difficulty: 3 Hard

Topic:  Consumer Needs and Wants

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

15) The Terrafugia Transition is a 19-foot, two-seater, road-drivable, light-sport aircraft with an anticipated price of $279,000. The most likely prospective customers for this flying car would include

  1. A) students who attend college at least 500 miles away from home.
  2. B) retired seniors receiving Social Security.
  3. C) executives for whom time is extremely important.
  4. D) teens who like to try new things.
  5. E) families in need of a second vehicle.

Answer:  C

Explanation:  A prospective customer includes anyone who would benefit from owning a product. However, the most likely prospective customer in this case would be an executive for whom time is extremely important. Both the benefits of the Terrafugia Transition and the willingness and ability to pay for it are needed for prospective customers to become actual customers.

Difficulty: 3 Hard

Topic:  Consumer Needs and Wants

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

16) In marketing, the idea of exchange refers to

  1. A) the negotiation phase between the manufacturer and the seller.
  2. B) the financial remuneration (monetary payment) for a product or service.
  3. C) the trade of things of value between buyer and seller so that each is better off after the trade.
  4. D) the bartering of products and services between nongovernmental organizations or individuals.
  5. E) the practice of swapping products and services for other products and services rather than for money.

Answer:  C

Explanation:  Key term definition—exchange.

Topic:  Product Value Creation

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

17) The trade of things of value between buyer and seller so that each is better off after the trade is referred to as

  1. A) financial remuneration.
  2. B) exchange.
  3. C) countertrade.
  4. D) barter.
  5. E) marketing.

Answer:  B

Explanation:  Key term definition—exchange.

Topic:  Product Value Creation

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

18) The American Red Cross creates advertisements to encourage people to donate blood. After viewing one, Amanda decided to donate a pint of blood. After she did, Amanda felt happy that she had performed a good deed. Did an exchange occur in a marketing sense?

  1. A) Yes, because the blood was donated to the Red Cross based on an advertisement, a marketing activity.
  2. B) Yes, because the donated blood was exchanged for a feeling of satisfaction.
  3. C) No, because the Red Cross is a nonprofit organization.
  4. D) No, because no money changed hands.
  5. E) No, because the Red Cross, a service organization, did not provide Amanda with a product.

Answer:  B

Explanation:  Exchange is the trade of things of value between buyer and seller so that each benefits. An exchange occurred when Amanda exchanged her donated blood for a feeling of satisfaction, which she valued. The Red Cross received the donated blood to serve the needs of society in times of accident or disaster.

Difficulty: 3 Hard

Topic:  Product Value Creation

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

19) A church put advertisements in its weekly bulletins to encourage its members to participate in the services by telling a brief, positive story about how fellow members have helped them during times of need. Jack volunteered and shared his story during a service. Afterward, he felt joyous. Was this an exchange in a marketing sense?

  1. A) Yes, because the church ran an advertisement, a marketing activity.
  2. B) No, because the church is a nonprofit organization and these actions are expected without any expectation of “exchange.”
  3. C) No, because no money was exchanged.
  4. D) Yes, because sharing his story at a service was exchanged for a feeling of joy.
  5. E) No, because the church did not provide Jack with a tangible product or service.

Answer:  D

Explanation:  Exchange is the trade of things of value between buyer and seller so that each benefits. In this instance, Jack is a member or “customer” and the church is the “marketer.” An exchange occurred when Jack “exchanged” his story at the service for a feeling of joy. The rest of the church membership likely benefited from Jack’s story as well.

Difficulty: 3 Hard

Topic:  Product Value Creation

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

20) A local college of business offers an outstanding graduate business school education program. Marissa pays the tuition to attend and earns her MBA with a concentration in marketing management. Upon graduating, she is offered a high-paying, fulfilling position. Was this a marketing exchange?

  1. A) No, because the university earned a profit from Marissa’s tuition.
  2. B) No, because money was exchanged in the form of tuition and Marissa’s income will come from her employer, not the graduate school.
  3. C) No, because the school did not provide Marissa with a tangible product, only the potential of an education.
  4. D) Yes, because the university promised Marissa she would graduate on time, and she did.
  5. E) Yes, because paying tuition was exchanged for knowledge that directly led to Marissa’s high-paying, fulfilling new job.

Answer:  E

Explanation:  Exchange is the trade of things of value between buyer and seller so that each benefits. In this instance, Marissa is the customer and the college is the marketer. An exchange occurred when Marissa paid her tuition to the college and received the education required to earn a degree that resulted in the job offer.

Difficulty: 3 Hard

Topic:  Product Value Creation

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

21) A typical marketing department both shapes and ________ its relationship with internal and external groups.

  1. A) is shaped by
  2. B) organizes
  3. C) motivates
  4. D) determines
  5. E) dominates

Answer:  A

Explanation:  Figure 1-2 shows the key people, groups, and forces inside and outside the organization that influence its marketing activities. The marketing department is engaged in facilitating relationships, partnerships, and alliances with the organization’s customers, shareholders/owners (or often representatives of groups served by a nonprofit organization), suppliers, and other organizations. The marketing department interacts with these internal and external groups in a dynamic relationship (note the two-way arrows).

Topic:  Environmental Influences on Marketing

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

22) ________ is/are responsible for establishing the organization’s mission and objectives.

  1. A) Marketers
  2. B) Suppliers
  3. C) Customers
  4. D) Senior management
  5. E) Shareholders

Answer:  D

Explanation:  An organization’s mission and objectives determine what business it is in and what goals it seeks. Within the organization, management is responsible for establishing these goals. The marketing department works closely with a network of other departments and employees to help provide the customer-satisfying products required for the organization to survive and prosper.

Topic:  Environmental Influences on Marketing

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

23) One challenge faced by organizations is the need to focus on consumer needs while also ________ the interests of countless other people, groups, and forces that interact to shape the nature of its actions.

  1. A) resisting
  2. B) striking a balance among
  3. C) developing
  4. D) being responsible for
  5. E) minimizing

Answer:  B

Explanation:  Refer to Figure 1-2. The organization must strike a balance among the sometimes differing interests of stakeholder groups. For example, it is not possible to simultaneously provide the lowest-priced and highest-quality products to customers and pay the highest prices to suppliers, the highest wages to employees, and the maximum dividends to shareholders.

Topic:  Environmental Influences on Marketing

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

24) Which of the following statements about marketing activities is most accurate?

  1. A) Marketing is affected by society but rarely, if ever, affects society as a whole.
  2. B) The marketing department both shapes and is shaped by its relationship with internal and external groups.
  3. C) Marketing activities are the sole responsibility of the marketing department; other departments are involved only if there is an emergency (such as a product recall).
  4. D) Environmental forces do not affect marketing activities as long as a firm closely monitors its environment through rigorous market research.
  5. E) Marketing is essentially developing the right product and convincing potential customers that they “need” it, not just “want” it.

Answer:  B

Explanation:  A marketing department relates to many people, organizations, and forces. Note that the marketing department both shapes and is shaped by its relationship with these internal and external groups (see Figure 1-2). The marketing department works closely with a network of other departments and employees to help provide the customer-satisfying products required for the organization to survive and prosper.

Topic:  Environmental Influences on Marketing

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

25) All of the following are departments within a typical organization except which?

  1. A) finance
  2. B) manufacturing
  3. C) information systems
  4. D) human resources
  5. E) suppliers

Answer:  E

Explanation:  Figure 1-2 shows the key people, groups, and forces outside the organization that influence its marketing activities. The marketing department is one of several departments in a typical organization. Other departments include human resources, information systems, finance, manufacturing, and research and development (R&D). Suppliers exist outside the organization.

Topic:  Environmental Influences on Marketing

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

26) The ________ department of an organization is responsible for facilitating relationships, partnerships, and alliances with the organization’s customers, shareholders, suppliers, and other organizations.

  1. A) purchasing
  2. B) marketing
  3. C) human resources
  4. D) accounting
  5. E) information systems

Answer:  B

Explanation:  The marketing department is responsible for facilitating relationships, partnerships, and alliances with the organization’s customers, shareholders, suppliers, and other organizations. See Figure 1-2.

Topic:  Environmental Influences on Marketing

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

27) The marketing department of an organization is responsible for facilitating

  1. A) relationships, partnerships, and alliances with the organization’s customers, shareholders, suppliers, and other organizations.
  2. B) healthy competition with other product manufacturers.
  3. C) financial contracts with banks and other lending institutions.
  4. D) alliances with firms with noncompetitive products that target similar markets.
  5. E) the coordination between the various departments within the entire firm.

Answer:  A

Explanation:  The marketing department is responsible for facilitating relationships, partnerships, and alliances with the organization’s customers, shareholders, suppliers, and other organizations. See Figure 1-2.

Topic:  Environmental Influences on Marketing

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

28) Which of the following statements about marketing departments is most accurate?

  1. A) The marketing department typically works as an independent unit, mostly interacting with other parts of the business only to direct product promotion.
  2. B) The marketing department should suggest where a firm should invest its money based on its knowledge of the market and environmental forces.
  3. C) The marketing department is only responsible for two of the four Ps.
  4. D) The marketing department is only responsible for market research, supervision of product development, and product promotion.
  5. E) The marketing department must work closely with other departments and employees to help provide the customer-satisfying products required for the organization to survive and prosper.

Answer:  E

Explanation:  The marketing department works closely with a network of other departments, like R&d and manufacturing, to help provide the customer-satisfying products required for the organization to survive and prosper. See Figure 1-2.

Topic:  Environmental Influences on Marketing

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

29) All of the following are environmental forces that affect an organization except which?

  1. A) economic
  2. B) geographic
  3. C) social
  4. D) regulatory
  5. E) technological

Answer:  B

Explanation:  Environmental forces involving social, economic, technological, competitive, and regulatory considerations also shape an organization’s marketing actions. See Figure 1-2.

Topic:  Environmental Influences on Marketing

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

30) Which of the following is not an environmental force?

  1. A) economic
  2. B) regulatory
  3. C) social
  4. D) commercial
  5. E) technological

Answer:  D

Explanation:  Environmental forces involving social, economic, technological, competitive, and regulatory considerations also shape an organization’s marketing activities. See Figure 1-2.

Topic:  Environmental Influences on Marketing

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

31) Which of the following statements about marketing activities is most accurate?

  1. A) Marketing is affected by society but rarely, if ever, affects society as a whole.
  2. B) The marketing department works closely with other departments and employees to implement marketing activities.
  3. C) Marketing activities are the sole responsibility of the marketing department; other departments are involved only if there is an emergency (such as a product recall).
  4. D) Environmental forces do not affect marketing activities as long as a firm closely monitors its environment through rigorous market research.
  5. E) Marketing directs the activities of all other departments in a business.

Answer:  B

Explanation:  Although an organization’s marketing activity focuses on assessing and satisfying consumer needs, countless other people, groups, and forces interact to shape the nature of its activities. The marketing department works closely with a network of other departments and employees to help provide the customer-satisfying products required for the organization to survive and prosper. See Figure 1-2.

Topic:  Elements of the Marketing Plan

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

32) All of the following are factors required for marketing to occur except which?

  1. A) a desire and ability on the part of two or more parties (individuals or organizations) to be satisfied
  2. B) something to exchange between two or more parties (individuals or organizations)
  3. C) two or more parties (individuals or organizations) with the same wants
  4. D) two or more parties (individuals or organizations) with unsatisfied needs
  5. E) a way for the parties (individuals or organizations) to communicate

Answer:  C

Explanation:  Four factors are required for marketing to occur: (1) two or more parties (individuals or organizations) with unsatisfied needs; (2) a desire and ability on their part to be satisfied; (3) a way for the parties to communicate; and (4) something to exchange.

Topic:  Strategic Marketing Planning

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

33) Which of the following is a factor required for marketing to occur?

  1. A) a healthy competitive environment
  2. B) an affordable and actionable advertising campaign
  3. C) a sense of social responsibility
  4. D) an ability to see hidden potential within an environmental force
  5. E) a way for interested parties to communicate

Answer:  E

Explanation:  Four factors are required for marketing to occur: (1) two or more parties (individuals or organizations) with unsatisfied needs; (2) a desire and ability on their part to be satisfied; (3) a way for the parties to communicate; and (4) something to exchange.

Topic:  Strategic Marketing Planning

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

34) Which of the following conditions are necessary for marketing to occur?

  1. A) a changing environment, a method of assessing needs, a way to communicate, and an exchange location
  2. B) parties with cash or credit, a product, a reasonable price, and a place to make an exchange
  3. C) a quality product, a fair price, a clever method of promotion, and a place where a customer can buy the product
  4. D) two or more parties with unsatisfied needs, a desire and an ability to satisfy them, a way to communicate, and something to exchange
  5. E) an ability to see a trend within an environmental force, a product, and an affordable and actionable advertising campaign

Answer:  D

Explanation:  Four factors are required for marketing to occur: (1) two or more parties (individuals or organizations) with unsatisfied needs; (2) a desire and ability on their part to be satisfied; (3) a way for the parties to communicate; and (4) something to exchange.

Topic:  Strategic Marketing Planning

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

35) For marketing to occur, there must be two or more parties involved. Dr. Pepper Snapple Group distributes Country Time lemonade in cans through supermarkets at a price comparable to that of soft drinks. The most likely “second” party needed for marketing to occur would be

  1. A) people who are nostalgic about childhood lemonade stands they had during hot summers.
  2. B) people with a desire for a cool beverage other than soda or water.
  3. C) product demonstrators who offer samples of Country Time lemonade to shoppers at local supermarkets.
  4. D) a local distributor of alcoholic beverages.
  5. E) a nutritionist promoting the health benefits of adequate hydration.

Answer:  B

Explanation:  Four factors are required for marketing to occur: (1) two or more parties (individuals or organizations) with unsatisfied needs; (2) a desire and ability on their part to be satisfied; (3) a way for the parties to communicate; and (4) something to exchange. In this example, consumers may want/need a new beverage alternative and Dr. Pepper Snapple Group wishes to sell them one—Country Time lemonade.

Difficulty: 3 Hard

Topic:  Strategic Marketing Planning

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

36) A business student is preparing for the Graduate Management Admission Test (GMAT) so he can get into a good graduate business school. He knows that any money he spends on a tutor will be worthwhile if he can improve his scores. He’s heard that there is a great tutor in his local community but has no idea who she is. Marketing does not occur in this situation because

  1. A) two or more parties have unsatisfied needs.
  2. B) there is no desire on the part of either party to satisfy its needs.
  3. C) neither of the involved parties has the ability to satisfy its needs.
  4. D) there is no way for each party to communicate with one another.
  5. E) there has been no assessment of consumer wants and needs.

Answer:  D

Explanation:  Four factors are required for marketing to occur: (1) two or more parties (individuals or organizations) with unsatisfied needs; (2) a desire and ability on their part to be satisfied; (3) a way for the parties to communicate; and (4) something to exchange. In this example, the student has been unable to communicate with the tutor he’d like to use.

Difficulty: 3 Hard

Topic:  Strategic Marketing Planning

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

37) A student would like to buy a cross-over SUV from a local dealer, but she thinks the payments will be too high. Marketing does not occur in this situation because

  1. A) two or more parties have unsatisfied needs.
  2. B) there is no desire on the part of either party to satisfy its needs.
  3. C) one of the involved parties does not have the ability to satisfy its needs.
  4. D) there is no way for each party to communicate with one another.
  5. E) there has been no assessment of consumer wants and needs.

Answer:  C

Explanation:  Four factors are required for marketing to occur: (1) two or more parties (individuals or organizations) with unsatisfied needs; (2) a desire and ability on their part to be satisfied; (3) a way for the parties to communicate; and (4) something to exchange. In this example, the student has the desire but not the ability—she lacks the funds—to buy the cross-over SUV.

Difficulty: 3 Hard

Topic:  Strategic Marketing Planning

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

38) A college student is taking a full course load, working 20 hours per week, and still has to take out a student loan to cover tuition. One day, he sees a classmate driving a new Lexus LFA sports coupe (price: $375,000) and feels he just has to have one for himself. What factor is most likely to prevent a successful marketing exchange between the student and the local Lexus dealer located in an affluent suburb about 20 miles from his university?

  1. A) The local Lexus dealer only has one Lexus LFA sports coupe in stock—red, which is the color he wants.
  2. B) The student does not have the resources to qualify for a $375,000 auto loan.
  3. C) Although the Lexus LFA sports coupe is a great car, there may be other cars with better gas mileage and resale value.
  4. D) He’s afraid that if someone at school sees him with the car, he might lose his student loan.
  5. E) His girlfriend wants him to drive a Kia Soul.

Answer:  B

Explanation:  Four factors are required for marketing to occur: (1) two or more parties (individuals or organizations) with unsatisfied needs; (2) a desire and ability on their part to be satisfied; (3) a way for the parties to communicate; and (4) something to exchange. In this example, the most likely factor preventing the student from engaging in a marketing transaction is that he does not have the resources to qualify for a loan to purchase the car.

Difficulty: 3 Hard

Topic:  Strategic Marketing Planning

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

39) A local candidate running for office would very much like to have your vote. She promises that she will “make the country better.” Because all candidates for public office say this, you doubt you’ll see real results and decide not to vote for her. Marketing will not occur in this situation because

  1. A) marketing doesn’t apply to the voting process.
  2. B) the desire and ability to satisfy needs is missing.
  3. C) there is no direct way for the parties to communicate.
  4. D) something to exchange is missing.
  5. E) there is only one party involved in this situation.

Answer:  D

Explanation:  Four factors are required for marketing to occur: (1) two or more parties (individuals or organizations) with unsatisfied needs; (2) a desire and ability on their part to be satisfied; (3) a way for the parties to communicate; and (4) something to exchange. In this example, your vote is the “something of value” that is exchanged. Here, you will not engage in the “exchange” process with this candidate because you doubt you will receive something of value in return.

Difficulty: 3 Hard

Topic:  Strategic Marketing Planning

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

40) The Arizona Biltmore in Phoenix is a resort hotel located less than a mile from the Biltmore Fashion Park, a large upscale shopping mall. The hotel wants to promote its proximity to the shopping center as well as its many other amenities to convention-goers from other states. Which of the following marketing actions would most likely help The Arizona Biltmore communicate with potential convention attendees?

  1. A) Place an ad in the in-flight magazines of all the major airlines targeting business/first-class fliers.
  2. B) Send a mass mailing to all local businesses.
  3. C) Set up information kiosks at several locations within the Biltmore Fashion Park.
  4. D) Offer free made-to-order breakfasts for guests staying at the hotel on business.
  5. E) Offer special discount rates to guests coming from the East Coast.

Answer:  A

Explanation:  Four factors are required for marketing to occur: (1) two or more parties (individuals or organizations) with unsatisfied needs; (2) a desire and ability on their part to be satisfied; (3) a way for the parties to communicate; and (4) something to exchange. The Arizona Biltmore needs to concentrate on “communication.”

Difficulty: 3 Hard

Topic:  Target Markets

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

41) A farmhand would like to buy a moped scooter to commute to his job at a nearby ranch. He doesn’t know how to find a dealer though, and he doesn’t have Internet access. Which of the following reasons explain why marketing fails to occur here?

  1. A) There are not two or more parties with unsatisfied needs.
  2. B) A desire to satisfy a need is missing.
  3. C) No assessments of consumer wants and needs have been made.
  4. D) There is no way for the parties involved to communicate.
  5. E) The ability to satisfy a need is missing.

Answer:  D

Explanation:  Four factors are required for marketing to occur: (1) two or more parties (individuals or organizations) with unsatisfied needs; (2) a desire and ability on their part to be satisfied; (3) a way for the parties to communicate; and (4) something to exchange. The farmhand is unable to communicate with those that would be willing to sell him a scooter, particularly those who use Internet-based “want ads” such as Craigslist.

Difficulty: 3 Hard

Topic:  Strategic Marketing Planning

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

42) Suppose you want a snack after taking this exam. Domino’s is located across the street from your College of Business classroom. Unfortunately, you forgot your wallet in the haste of getting to class on time to take the test. Therefore, you have no means to pay for the pizza. Which of the following reasons explain why marketing fails to occur here between you and Domino’s?

  1. A) There is only one party with unsatisfied needs.
  2. B) The ability to satisfy a need is missing.
  3. C) A desire to satisfy a need is missing.
  4. D) No assessments of consumer wants and needs have been made.
  5. E) There is no way for the parties involved to communicate.

Answer:  B

Explanation:  Four factors are required for marketing to occur: (1) two or more parties (individuals or organizations) with unsatisfied needs; (2) a desire and ability on their part to be satisfied; (3) a way for the parties to communicate; and (4) something to exchange. Because you have forgotten your wallet, there is no ability on your part to satisfy your need because you have no money (currency or credit card) to fulfill your part of the exchange process.

Difficulty: 3 Hard

Topic:  Define Marketing

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

43) Ryan receives a coupon on his iPhone advising him about the location of a Taco Bell store. This is an example of which requirement for marketing to occur?

  1. A) demonstrating an unmet need
  2. B) discovering a consumer need
  3. C) a foundation for brand loyalty
  4. D) a way for parties to communicate
  5. E) practicing ethics and sustainability

Answer:  D

Explanation:  Four factors are required for marketing to occur: (1) two or more parties (individuals or organizations) with unsatisfied needs; (2) a desire and ability on their part to be satisfied; (3) a way for the parties to communicate; and (4) something to exchange. When Ryan receives a coupon on his phone or drives by the Taco Bell store location, the communication barrier is overcome.

Difficulty: 3 Hard

Topic:  Strategic Marketing Planning

Learning Objective:  01-01 Define marketing and identify the diverse factors that influence marketing actions.

44) Conducting marketing research is an excellent way to address the first objective in marketing, which is to discover consumers’

  1. A) diversity of opinion to create persuasive advertising messages.
  2. B) income to determine the most lucrative price point for a product.
  3. C) lifetime value of an offering to the organization.
  4. D) characteristics that would be useful to segment markets.
  5. E) needs to create products that could satisfy them.

Answer:  E

Explanation:  The importance of discovering and satisfying consumer needs in order to develop and offer successful products is critical to understanding marketing.

Topic:  Consumer Needs and Wants

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

45) Marketers often discover consumer needs by

  1. A) implementing a marketing program.
  2. B) conducting effective marketing research.
  3. C) balancing the marketing mix elements—the four Ps of the marketing program.
  4. D) advertising to diverse groups of prospective buyers.
  5. E) copying the products and services of competitors.

Answer:  B

Explanation:  The first objective in marketing is discovering the needs of prospective customers. Marketers often use customer surveys, concept tests, and other forms of marketing research to better understand customer ideas.

Topic:  Consumer Needs and Wants

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

46) A factor that might doom a product in the marketplace is referred to as

  1. A) an albatross.
  2. B) a land mine.
  3. C) a pitfall.
  4. D) a showstopper.
  5. E) a wild card.

Answer:  D

Explanation:  Showstoppers are factors that might doom a product in the marketplace.

Topic:  New-Product Development

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

47) Showstoppers refer to

  1. A) creative or innovative members of a marketing team.
  2. B) unexpected alternative uses for a product that result in a sudden increase in sales.
  3. C) factors that might doom a product in the marketplace.
  4. D) a sudden loss of financial backing even though the item is in production.
  5. E) a situation when a competitor’s product suddenly beats a firm’s new product to the marketplace.

Answer:  C

Explanation:  Showstoppers are factors that might doom a product in the marketplace.

Topic:  New-Product Development

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

48) Crowdsourcing has been an important method of identifying consumer needs for which of these products?

  1. A) Amazon Echo
  2. B) Pepsi True
  3. C) LEGO Mars Curiosity Rover
  4. D) Google Glass
  5. E) ZipCar

Answer:  C

Explanation:  Many firms use “crowdsourcing” websites to solicit and evaluate ideas from customers. At LEGO Group, for example, ideas that receive 10,000 votes from site visitors are considered for possible addition to the product line. LEGO Group products that were discovered through the website include its Ghostbusters Ectomobile ambulance, its Mars Curiosity Rover, and a set based on the Minecraft video game.

Topic:  New-Product Development

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

49) Concerns about privacy might have been a reason for lackluster sales of which of these products?

  1. A) Amazon Prime
  2. B) Google Glass
  3. C) Apple Newton MessagePad
  4. D) YoYo car subscriptions
  5. E) AirBnB rentals

Answer:  B

Explanation:  Google Glass was introduced in 2014 as a wearable computer. While the product was popular among technology enthusiasts it did not attract a mass market. Show stoppers included its $1500 price tag, a general perception that it looked “nerdy,” and concerns that wearing the device might violate privacy rights.

Topic:  New-Product Development

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

50) Pepsi True is a new cola from Pepsi-Cola that is sweetened with a combination of sugar and stevia leaf extract, resulting in a soft drink with the same flavor of Pepsi but only 60 calories. A potential showstopper for this product is likely to be

  1. A) a lack of advertising on television.
  2. B) that mid-calorie soft drinks such as Pepsi Next (2012) have not been successful in the past.
  3. C) a lower profit margin due to the added costs of expensive ingredients.
  4. D) cannibalization of the company’s existing sodas.
  5. E) the use of a combination of sugar and stevia leaf extract.

Answer:  B

Explanation:  Pepsi True is offered in the United States through Amazon.com and in grocery stores, and will be introduced in Great Britain where it will compete with Coca-Cola’s Coca-Cola Life. A potential showstopper: In the past, mid-calorie soft drinks such as Pepsi Next (2012), Pepsi Edge (2004), and Pepsi XL (1995) have not been successful as “transition” sodas from regular to diet.

Topic:  New-Product Development

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

51) A ________ occurs when a person feels deprived of basic necessities such as food, clothing, and shelter.

  1. A) desire
  2. B) need
  3. C) utility
  4. D) want
  5. E) craving

Answer:  B

Explanation:  Key term definition—need.

Topic:  Consumer Needs and Wants

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

52) A want is ________ that is shaped by a person’s knowledge, culture, and personality.

  1. A) a desire
  2. B) a need
  3. C) a utility
  4. D) a demand
  5. E) an option

Answer:  B

Explanation:  Key term definition—want.

Topic:  Consumer Needs and Wants

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

53) A need that has been shaped by a person’s knowledge, culture, and personality results in a

  1. A) standard
  2. B) want
  3. C) utility
  4. D) demand
  5. E) preference

Answer:  B

Explanation:  Key term definition—want.

Topic:  Consumer Needs and Wants

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

54) Steve wants to eat a Cool Mint Chocolate Clif Bar because, based on his past experience, he knows it will satisfy his hunger

  1. A) preference.
  2. B) need.
  3. C) utility.
  4. D) want.
  5. E) expression.

Answer:  B

Explanation:  A need occurs when a person feels deprived of basic necessities such as food, clothing, and shelter. A want is a need that is shaped by a person’s knowledge, culture, and personality. So if Steve feels hungry, he has developed a basic need and desire to eat something. Let’s say he then wants to eat a Cool Mint Chocolate Clif Bar because, based on his past experience, he knows it will satisfy his hunger need.

Topic:  Consumer Needs and Wants

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

55) A need refers to

  1. A) a sense of personal inadequacy based upon observations by others around you.
  2. B) a sense of urgency, which causes a person to take action.
  3. C) a feeling that is shaped by a person’s knowledge, culture, or personality.
  4. D) a feeling of vague lacking, but not fully understanding what may be required.
  5. E) a feeling of deprivation of basic necessities such as food, clothing, and shelter.

Answer:  E

Explanation:  Key term definition—need.

Topic:  Consumer Needs and Wants

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

56) All of the following are examples of products or services that satisfy a consumer need except which?

  1. A) a pair of jeans
  2. B) an apple
  3. C) a student dormitory
  4. D) a sales tax
  5. E) a jacket

Answer:  D

Explanation:  Needs occur when a person feels deprived of basic necessities such as clothes, food, or shelter. Only a sales tax offers no satisfaction of a basic need.

Topic:  Consumer Needs and Wants

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

57) Which of the following statements best distinguishes between consumer needs and wants?

  1. A) Needs are far more influential than wants with respect to marketing decision making.
  2. B) Wants affect marketing decisions primarily for planned purchases while needs affect marketing decisions primarily for impulse purchases.
  3. C) Wants occur when a person feels deprived of luxury items while needs are solely possessions required to maintain relationships.
  4. D) Needs and wants are psychologically the same, but needs are those that a consumer can be guaranteed to satisfy.
  5. E) Needs occur when a person feels deprived of basic necessities such as food, clothing, and shelter while wants are determined by a person’s knowledge, culture, or personality.

Answer:  E

Explanation:  Needs occur when a person feels deprived of basic necessities such as food, clothing, and shelter. A want is a felt need that is shaped by a person’s knowledge, culture, or personality.

Topic:  Consumer Needs and Wants

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

58) A want refers to

  1. A) a sense of personal inadequacy based upon observations by others around you.
  2. B) a powerful desire that causes a person to take action.
  3. C) a need that is shaped by a person’s knowledge, culture, or personality.
  4. D) a feeling of being deprived of something, but not fully understanding what it may be.
  5. E) a feeling of deprivation of basic necessities such as food, clothing, and shelter.

Answer:  C

Explanation:  Key term definition—want.

Topic:  Consumer Needs and Wants

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

59) A television advertisement shows several teenagers searching through the pantry for something to satisfy their hunger. The pantry offers the teenagers many alternatives—cereal, chips, cookies, and some Cool Mint Chocolate Clif Bars. The ad, which shows the teens happily selecting the Clif Bars, appeals to the consumers’ ________ for sustenance to satisfy their hunger and attempts to shape their ________ for the advertised product.

  1. A) needs; wants
  2. B) requirements; needs
  3. C) wants; preferences
  4. D) demands; needs
  5. E) needs; preferences

Answer:  A

Explanation:  A need occurs when a person feels deprived of basic necessities (i.e., food, water, clothing, and shelter). A want is a need that is shaped by a person’s knowledge, culture, or personality. Hunger represents the consumer’s need, while consuming Cool Mint Chocolate Clif Bars is a way to satisfy one’s hunger based on wants.

Difficulty: 3 Hard

Topic:  Consumer Needs and Wants

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

60) In a marketing context, a market refers to

  1. A) people with a similar want for a particular product or service.
  2. B) people with both the desire and ability to buy a specific offering.
  3. C) the central location for all buying and selling of products and services.
  4. D) an open space or covered building where vendors convene to sell their offerings.
  5. E) the free operation of supply and demand.

Answer:  B

Explanation:  Key term definition—market.

Topic:  Consumer Needs and Wants

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

61) People with both the desire and ability to buy a specific offering are referred to as

  1. A) shoppers.
  2. B) a customer base.
  3. C) a market.
  4. D) qualified prospects.
  5. E) candidates.

Answer:  C

Explanation:  Key term definition—market.

Topic:  Consumer Needs and Wants

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

62) All markets ultimately are composed of

  1. A) people.
  2. B) brands.
  3. C) products.
  4. D) organizations.
  5. E) locations.

Answer:  A

Explanation:  Key term definition—market.

Topic:  Target Markets

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

63) The best description of the market for cosmetic dentistry, where costs can be as much as $15,000 for teeth straightening and whitening, is

  1. A) toddlers with crooked baby teeth, when crooked teeth run in the family.
  2. B) all former smokers who have been smoke-free for at least one year.
  3. C) anyone who has the time, the money, and the desire to undergo the procedures.
  4. D) anyone who has dental insurance.
  5. E) adults who want to make a good first impression for an event.

Answer:  C

Explanation:  Potential customers make up a market, which consists of people with both the desire and the ability to buy a specific product. In this case, it is anyone who has the time, the money, and the desire to undergo cosmetic dentistry procedures.

Difficulty: 3 Hard

Topic:  Target Markets

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

Figure 1-3

 

64) In Figure 1-3, “A” represents ________ and “B” represents ________.

  1. A) decisions by management; purchases by customers
  2. B) employees efforts; stakeholder rewards
  3. C) sales department; manufacturing department
  4. D) suppliers; distributors
  5. E) discovering consumer needs; satisfying consumer needs

Answer:  E

Explanation:  A principal activity of a firm’s marketing department is to scrutinize its consumers through effective research to understand what they need and want and the forces that shape those needs and wants. It then seeks to satisfy those needs by successfully implementing a marketing program possessing the right combination of the marketing mix—the four Ps. See Figure 1-3.

Topic:  Needs and Wants

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

65) Discovering consumer needs leads directly to

  1. A) purchases by customers.
  2. B) stakeholder rewards.
  3. C) sales and manufacturing department outcomes.
  4. D) supplier and distributor outcomes.
  5. E) concepts for new products.

Answer:  E

Explanation:  A principal activity of a firm’s marketing department is to scrutinize its consumers through effective research to understand what they need and want and the forces that shape those needs and wants. It then seeks to satisfy those needs by successfully implementing a marketing program possessing the right combination of the marketing mix—the four Ps. See Figure 1-3.

Topic:  Consumer Needs and Wants

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

66) Satisfying consumer needs is accomplished by

  1. A) designing a marketing program.
  2. B) conducting marketing research.
  3. C) discovering consumer needs.
  4. D) developing a distribution strategy.
  5. E) identifying target markets.

Answer:  A

Explanation:  A principal activity of a firm’s marketing department is to scrutinize its consumers through effective research to understand what they need and want and the forces that shape those needs and wants. It then seeks to satisfy those needs by successfully implementing a marketing program possessing the right combination of the marketing mix—the four Ps. See Figure 1-3.

Topic:  Consumer Needs and Wants

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

67) Product, price, promotion, and place are all components of

  1. A) the firm’s required ongoing activities.
  2. B) the marketing mix.
  3. C) factors used to examine competitors’ products.
  4. D) the cluster of benefits that an organization develops to satisfy consumers’ needs.
  5. E) people with both the desire and the ability to buy a specific offering.

Answer:  B

Explanation:  Key term definition—marketing mix.

Topic:  Target Markets

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

68) A target market refers to

  1. A) customers who have already purchased a firm’s product at least once, have been satisfied, and are likely to be repeat purchasers.
  2. B) both existing and potential customers who have used a competitor’s product, are dissatisfied, and who now seek a different product or service to satisfy their needs.
  3. C) a specific group of current consumers toward which an organization directs its advertising.
  4. D) existing or potential consumers who are seeking a product for which there are no current substitutes.
  5. E) one or more specific groups of potential consumers toward which an organization directs its marketing program.

Answer:  E

Explanation:  Key term definition—target market.

Topic:  Target Markets

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

69) One or more specific groups of potential consumers toward which an organization directs its marketing program is referred to as a

  1. A) mass market.
  2. B) base market.
  3. C) potential market.
  4. D) target market.
  5. E) promotional market.

Answer:  D

Explanation:  Key term definition—target market.

Topic:  Target Markets

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

70) Kraft produces Lunchables, a prepackaged meal usually consisting of several crackers, small slices of meat, and small slices of cheese. Other items in the product line contain small bottles of Chiquita Strawberry Banana Fruit smoothie, Capri-Sun juice, or Kool-Aid. The box is bright yellow and the quantity of food contained within it is small. The target market for Kraft Lunchables is most likely

  1. A) moms with school-age children who pack a simple healthy lunch for them.
  2. B) businesspeople looking for a fulfilling breakfast at the office.
  3. C) business travelers on the run.
  4. D) teenagers who are hungry for an after-school snack.
  5. E) baby boomers who are trying to lose weight.

Answer:  A

Explanation:  Although anyone can enjoy Lunchables, a target market is a specific group of potential consumers toward which an organization directs its marketing program. In this case, Lunchables’ smaller portions and bright packaging are targeted toward moms with school-age children.

Difficulty: 3 Hard

Topic:  Target Markets

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

71) Which of the following people would most likely be the best target market for tickets to the home games of the Indianapolis Colts professional football team?

  1. A) all people with an interest in professional football
  2. B) all people in the Midwest who have an interest in sports
  3. C) all men who played on a varsity football team in high school
  4. D) all people in the Indianapolis and surrounding areas interested in football
  5. E) all people in Indiana who watch football on TV

Answer:  D

Explanation:  Football fans nearby are the Indianapolis Colts’ target market—people with both the desire and ability to easily attend home games in Indianapolis.

Difficulty: 3 Hard

Topic:  Target Markets

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

72) Which of the following groups would be the least likely target market for a company producing canned food in single-serving sizes?

  1. A) single adults
  2. B) school kitchens
  3. C) campers
  4. D) senior citizens
  5. E) vending machine owners

Answer:  B

Explanation:  Of the possible markets listed above, single-serving cans meet a special need for singles, campers, senior citizens, and vending machines. School kitchens traditionally serve large quantities of food; the time it would take to open single-serving cans for hundreds of children makes the product impractical and therefore would not satisfy a specific need.

Difficulty: 3 Hard

Topic:  Target Markets

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

73) TUMI brand briefcases are very expensive, high-end briefcases that are generally sold in specialty luggage shops. Which of the following groups of people would be the most likely target market for TUMI briefcases?

  1. A) police officers
  2. B) executives
  3. C) construction workers
  4. D) postal workers
  5. E) students

Answer:  B

Explanation:  Any of these people could use a briefcase. However, as a group, executives would include the greatest number with the greatest need for and ability to purchase a TUMI briefcase.

Difficulty: 3 Hard

Topic:  Target Markets

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

74) The United States Army was both praised and criticized for its use of a popular video game, America’s Army, which was designed to reach potential recruits. The game’s creator, Colonel Casey Wardynski, wanted to provide a sense of the training and teamwork one could find in the Army’s military environment. The game was designed for “boys 14 years or older,” which represent the Army’s

  1. A) mass market.
  2. B) actual recruits.
  3. C) restricted market.
  4. D) target market.
  5. E) untapped market.

Answer:  D

Explanation:  A target market consists of one or more specific groups of potential consumers toward which an organization directs its marketing program. In this case, although 14-year-old boys cannot serve in the military, a positive attitude or association with the game and its content now can lead to potential recruits in the future—the Army’s target market.

Difficulty: 3 Hard

Topic:  Target Markets

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

75) A local university offers business courses for a target market of people who currently work and want to take refresher courses for certification in their business field (marketing, accounting, etc.). Which of the following would be the most effective way to communicate with the target market, bearing in mind that communication must be both effective and economical?

  1. A) Put announcements on campus bulletin boards.
  2. B) Distribute promotional materials during classes.
  3. C) Advertise on national television.
  4. D) Advertise on local hip-hop radio shows.
  5. E) Advertise on LinkedIn, a social media network for professionals.

Answer:  E

Explanation:  LinkedIn is the most effective and economical of the alternatives to communicate with this target market.

Difficulty: 3 Hard

Topic:  Target Markets

Learning Objective:  01-02 Explain how marketing discovers and satisfies consumer needs.

76) The marketing manager’s controllable factors—product, price, promotion, and place—that can be used to solve a marketing problem are referred to as

  1. A) the marketing concept.
  2. B) the marketing mix.
  3. C) the marketing program.
  4. D) environmental forces.
  5. E) the marketing toolbox.

Answer:  B

Explanation:  Key term definition—marketing mix.

Topic:  The Four Ps

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

77) The marketing mix refers to

  1. A) the selection of product benefits and attributes that are to be added to or subtracted from a given product to create variations within a product line.
  2. B) the specific ratio within a budget that divides resources between advertising, sales promotion, and personal selling.
  3. C) the marketing manager’s controllable factors—product, price, promotion, and place—that can be used to solve a marketing problem.
  4. D) the allocation of resources within a firm toward individual marketing programs.
  5. E) the environmental forces—social, economic, technological, competitive, and regulatory—that impact the marketing decisions for a particular product at any given time.

Answer:  C

Explanation:  Key term definition—marketing mix.

Topic:  The Four Ps

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

78) Which of the following would a marketer use as a synonym for the marketing mix?

  1. A) the four Ps of marketing
  2. B) environmental forces
  3. C) macromarketing forces
  4. D) marketing management factors
  5. E) micromarketing factors

Answer:  A

Explanation:  Key term definition—marketing mix.

Topic:  The Four Ps

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

79) The four Ps of the marketing mix are

  1. A) priorities, personnel, placement, and profits.
  2. B) prediction, production, price, and promotion.
  3. C) product, price, production, and place.
  4. D) product, price, promotion, and place.
  5. E) prediction, production, packaging, and persuasion.

Answer:  D

Explanation:  The four Ps are the marketing manager’s controllable factors—product, price, promotion, and place—that can be used to solve a marketing problem.

Topic:  The Four Ps

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

80) All of the following constitute the four Ps of the marketing mix except which?

  1. A) promotion
  2. B) profitability
  3. C) price
  4. D) place
  5. E) product

Answer:  B

Explanation:  The four Ps are the marketing manager’s controllable factors—product, price, promotion, and place—that can be used to solve a marketing problem.

Topic:  The Four Ps

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

81) The four Ps are commonly known as

  1. A) the environmental or uncontrollable forces.
  2. B) the environmental or controllable factors.
  3. C) the marketing mix or controllable factors.
  4. D) the marketing mix or uncontrollable forces.
  5. E) environmental factors, both controllable and uncontrollable.

Answer:  C

Explanation:  The four Ps are the marketing manager’s controllable factors—product, price, promotion, and place—that can be used to solve a marketing problem.

Topic:  The Four Ps

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

82) The marketing mix elements are called ________ because they are the responsibility of the marketing department in an organization.

  1. A) administrative forces
  2. B) profitability factors
  3. C) stakeholder value generators
  4. D) target market segments
  5. E) controllable factors

Answer:  E

Explanation:  Key term definition—controllable factors.

Topic:  The Four Ps

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

83) Jakubowski Farms Gourmet Bread Base is the brand name for a mix designed for use in bread making machines. The mixes are sold in 2-pound canisters for $14.99 plus shipping. People learn about the product through word-of-mouth and bread machine demonstrations the company’s founder gives to groups in Wisconsin, where she lives. The products are only available through the mail. This is a description of the company’s

  1. A) action plan.
  2. B) market segmentation strategy.
  3. C) mission statement.
  4. D) marketing mix.
  5. E) target market.

Answer:  D

Explanation:  The bread mix is the product. The price is $14.99 plus shipping. The promotion is word-of-mouth and public demonstrations. The place is through the mail. These four elements are the marketing mix—product, price, promotion, and place.

Difficulty: 3 Hard

Topic:  The Four Ps

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

84) The element of the marketing mix that describes a good, service, or idea to satisfy consumers’ needs is known as

  1. A) a product.
  2. B) the price.
  3. C) promotion.
  4. D) the place or distribution.
  5. E) a market segment.

Answer:  A

Explanation:  Key term definition—product.

Topic:  The Four Ps

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

85) The owners of Old School Brand Authentic Antique Foods researched Civil War records to come up with recipes used for the old-fashioned cookies the company produces and markets. The cookies are which part of the company’s marketing mix?

  1. A) process
  2. B) price
  3. C) product
  4. D) place
  5. E) people

Answer:  C

Explanation:  A product is a good, service, or idea to satisfy consumers’ needs, so a cookie is an example of a product.

Difficulty: 3 Hard

Topic:  The Four Ps

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

86) The element of the marketing mix that describes what is exchanged for a product is known as

  1. A) a product.
  2. B) the price.
  3. C) promotion.
  4. D) the place or distribution.
  5. E) productivity.

Answer:  B

Explanation:  Key term definition—price.

Topic:  The Four Ps

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

87) Which element of the marketing mix is affected when the Mandarin Oriental hotel in New York increases its weekend rates to $795 per night?

  1. A) product
  2. B) price
  3. C) promotion
  4. D) place
  5. E) production

Answer:  B

Explanation:  The price is what is exchanged for the product; in this case, rate change increases the price of the product.

Difficulty: 3 Hard

Topic:  The Four Ps

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

88) The element of the marketing mix demonstrated when an art gallery suggests a $2 donation at the door is

  1. A) philanthropy.
  2. B) place.
  3. C) product.
  4. D) promotion.
  5. E) price.

Answer:  E

Explanation:  Price is what is exchanged for the product; in this case, access to an art gallery.

Difficulty: 3 Hard

Topic:  The Four Ps

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

89) To attend a winter concert presented by the community chorus, every person had to donate one unwrapped toy at the concert hall door. The donation is most closely related to the ________ element of the marketing mix.

  1. A) product
  2. B) philanthropy
  3. C) price
  4. D) place
  5. E) promotion

Answer:  C

Explanation:  Price is what is exchanged for the product; in this case, access to the concert. The toy donation was exchanged for the privilege of listening to the music.

Difficulty: 3 Hard

Topic:  The Four Ps

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

90) The element of the marketing mix that describes a means of communication between the seller and buyer is known as

  1. A) a product.
  2. B) promotion.
  3. C) the price.
  4. D) the place or distribution.
  5. E) advertising.

Answer:  B

Explanation:  Key term definition—promotion.

Topic:  The Four Ps

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

91) The owners of Old School Brand Authentic Antique Foods researched Civil War records to come up with recipes for the heritage products they market. An offer to be featured in an upcoming edition of Taste of Home magazine would be considered part of the ________ element of the marketing mix.

  1. A) product
  2. B) price
  3. C) production
  4. D) promotion
  5. E) place

Answer:  D

Explanation:  Promotion is a means of communication between the seller and buyer. Taste of Home magazine would be likely to communicate to the target market for old-fashioned food products.

Difficulty: 3 Hard

Topic:  The Four Ps

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

92) The ________ element of the marketing mix is demonstrated when a company places an ad on a highway billboard.

  1. A) product
  2. B) price
  3. C) promotion
  4. D) place
  5. E) process

Answer:  C

Explanation:  Promotion is a means of communication between the seller and buyer, such as billboard advertising.

Difficulty: 3 Hard

Topic:  The Four Ps

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

93) When a company uses advertising on Instagram, the action is a tactic of the ________ element of the marketing mix.

  1. A) product
  2. B) price
  3. C) promotion
  4. D) place
  5. E) process

Answer:  C

Explanation:  Promotion is a means of communication between the seller and buyer, such as Instagram advertising.

Difficulty: 3 Hard

Topic:  The Four Ps

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

94) The element of the marketing mix that describes a means of getting the product to the consumer is known as

  1. A) a product.
  2. B) the price.
  3. C) promotion.
  4. D) the place.
  5. E) the process.

Answer:  D

Explanation:  Key term definition—place.

Topic:  The Four Ps

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

95) The ________ element of the marketing mix is demonstrated when Amazon delivers packages to a customer’s front porch via the U.S. Postal Service.

  1. A) place
  2. B) product
  3. C) price
  4. D) promotion
  5. E) procurement

Answer:  A

Explanation:  Place refers to the means of getting the product to the consumer. Here, carriers distribute the packages by “placing” them on the customer’s front porch.

Difficulty: 3 Hard

Topic:  The Four Ps

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

96) The ability to buy a soda from a vending machine demonstrates which element of the marketing mix?

  1. A) product
  2. B) price
  3. C) promotion
  4. D) place
  5. E) process

Answer:  D

Explanation:  Place refers to the means of getting the product to the consumer.

Difficulty: 3 Hard

Topic:  The Four Ps

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

97) The cluster of benefits that an organization promises customers to satisfy their needs is referred to as a

  1. A) core benefit proposal.
  2. B) product protocol.
  3. C) marketing program.
  4. D) marketing mix.
  5. E) customer value proposition.

Answer:  E

Explanation:  Key term definition—customer value proposition.

Topic:  Product Value Creation

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

98) A customer value proposition is

  1. A) the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.
  2. B) a statement that, before product development begins, identifies (1) a well-defined target market; (2) specific customers’ needs, wants, and preferences; and (3) what the product will be and do to satisfy consumers.
  3. C) a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation.
  4. D) the characteristics of a product that make it superior to competitive substitutes.
  5. E) the cluster of benefits that an organization promises customers to satisfy their needs.

Answer:  E

Explanation:  Key term definition—customer value proposition.

Topic:  Product Value Creation

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

99) Michelin’s ________ can be summed up as “providing safety-conscious parents greater security in tires at a premium price.”

  1. A) customer value proposition
  2. B) protocol
  3. C) mission statement
  4. D) core values
  5. E) marketing program

Answer:  A

Explanation:  A customer value proposition is the cluster of benefits that an organization promises customers to satisfy their needs. Usually, these include aspects of an offering’s marketing mix. Michelin’s customer value proposition can be summed up as “providing safety-conscious parents greater security in tires at a premium price.”

Topic:  Product Value Creation

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

100) The uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces are referred to as

  1. A) the 5 Fs of marketing.
  2. B) environmental forces.
  3. C) business conditions.
  4. D) a marketing ecosystem.
  5. E) a business sphere.

Answer:  B

Explanation:  Key term definition—environmental forces.

Topic:  Environmental Influences on Marketing

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

101) Which of the following is not an environmental force?

  1. A) technological
  2. B) regulatory
  3. C) administrative
  4. D) competitive
  5. E) economic

Answer:  C

Explanation:  Key term definition—environmental forces.

Topic:  Environmental Influences on Marketing

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

102) Environmental forces refer to

  1. A) the internal strengths of a company that enable the firm to remain competitive.
  2. B) the marketing manager’s uncontrollable factors—product, price, promotion, and place—that can be used to solve marketing problems.
  3. C) the unpredictable or uncontrollable availability of natural resources that can enhance or restrain a company’s growth.
  4. D) the marketing manager’s uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces.
  5. E) the marketing manager’s controllable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces.

Answer:  D

Explanation:  Key term definition—environmental forces.

Topic:  Environmental Influences on Marketing

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

103) The five major environmental forces in a marketing decision are

  1. A) climate change, natural resources, pollution, natural disasters, and global conflict.
  2. B) social, technological, economic, competitive, and regulatory.
  3. C) corporate ownership, internal management, supplier partnerships, strategic alliances, and customer relationships.
  4. D) product, price, promotion, place, and people.
  5. E) ethics, sustainability, cultural awareness, diversity, and values.

Answer:  B

Explanation:  Key term definition—environmental forces.

Topic:  Environmental Influences on Marketing

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

104) Which of the following statements about environmental forces is most accurate?

  1. A) Environmental forces are almost always controllable if the marketing department correctly scans them.
  2. B) An organization that incorporates the marketing concept can exert just as much influence on environmental forces as they can exert on that organization.
  3. C) Environmental forces consistently result in negative outcomes for an organization.
  4. D) Some environmental forces can actually enhance a firm’s marketing opportunities.
  5. E) Environmental forces can almost always be predicted.

Answer:  D

Explanation:  The five environmental forces may serve as accelerators or brakes on marketing, sometimes expanding an organization’s marketing opportunities and at other times restricting them.

Topic:  Environmental Influences on Marketing

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

105) Which of the following statements describes an environmental force?

  1. A) Several states have legislation that requires people transporting children to use age- and height-appropriate car seats.
  2. B) Tupperware has more than 200,000 independent dealers who market its entire product line.
  3. C) A car battery comes with a lifetime guarantee.
  4. D) An automobile dealer offers a $500 rebate during the month of July.
  5. E) A major bottler offers a 10-cent refund on returnable bottles.

Answer:  A

Explanation:  Legislation for car seats describes a regulatory environmental force. The other alternatives are marketing program decisions.

Difficulty: 3 Hard

Topic:  Environmental Influences on Marketing

Learning Objective:  01-03 Distinguish between marketing mix factors and environmental forces.

106) The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and before- and after-sale service at a specific price is called

  1. A) customer value.
  2. B) target marketing.
  3. C) benefit proposition.
  4. D) value-based marketing.
  5. E) a customer value proposition.

Answer:  A

Explanation:  Key term definition—customer value.

Topic:  Product Value Creation

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

107) Customer value refers to

  1. A) the need of a customer to receive the highest quality product at the lowest possible price.
  2. B) the least expensive product that will provide customers with most of the basic benefits.
  3. C) a statement that, before product development begins, identifies (1) a well-defined target market; (2) specific customers’ needs, wants, and preferences; and (3) what the product will be and do to satisfy consumers.
  4. D) the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.
  5. E) the cluster of benefits that an organization promises customers to satisfy their needs.

Answer:  D

Explanation:  Key term definition—customer value.

Topic:  Product Value Creation

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

108) Which of the following statements about customer value is most accurate?

  1. A) Target customers assess customer value in terms of the combination of benefits (quality, convenience, etc.), regardless of the price.
  2. B) Loyal customers are less profitable to firms in the long run since they expect lower prices over time in order to remain loyal.
  3. C) Research suggests that firms can be most successful by being all things to all consumers.
  4. D) It is impossible to place a dollar value on a loyal, satisfied customer.
  5. E) By providing unique value for targeted buyers, firms can build long-term relationships with them.

Answer:  E

Explanation:  Customer value is the unique combination of benefits received by targeted buyers that includes quality, price, convenience, on-time delivery, and both before-sale and after-sale service at a specified price. Firms gain loyal customers by providing unique value, the essence of successful marketing.

Topic:  Product Value Creation

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

109) According to the text, Target has been successful by offering consumers the best

  1. A) experience.
  2. B) products/services.
  3. C) customer service.
  4. D) availability.
  5. E) price.

Answer:  E

Explanation:  Outstanding customer value is delivered through the implementation of one of three value strategies—best price, best product, or best service. Target has been successful by offering consumers the best price.

Topic:  Product Value Creation

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

110) According to the tex, Starbucks provides its customers with the best

  1. A) branding.
  2. B) products/services.
  3. C) price.
  4. D) customer service.
  5. E) availability.

Answer:  B

Explanation:  Outstanding customer value is delivered through the implementation of one of three value strategies—best price, best product, or best service. Starbucks provides its customers with the best products (or services).

Difficulty: 3 Hard

Topic:  Product Value Creation

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

111) If a bank is known for delivering customer value through its focus on taking great care of customers, it is most likely focusing on providing its customers with the best

  1. A) assortment.
  2. B) products/services.
  3. C) price.
  4. D) customer service.
  5. E) availability.

Answer:  D

Explanation:  Outstanding customer value is delivered through the implementation of one of three value strategies—best price, best product, or best service. The bank delivers customer value by providing its customers with the best customer service.

Difficulty: 3 Hard

Topic:  Customer value

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

112) Those who have flown on Singapore Air have experienced firsthand the great food that is served during the flight, the friendliness of the flight attendants, and the comfortable seating. Singapore Air creates customer value by providing its customers with

  1. A) the best airport experience.
  2. B) the most convenient flight schedules.
  3. C) the best price for the distance traveled.
  4. D) the best in-flight service.
  5. E) the greatest sense of personal safety.

Answer:  D

Explanation:  Outstanding customer value is delivered through the implementation of one of three value strategies—best price, best product, or best service. Price and flight schedule are not considered here.

Difficulty: 3 Hard

Topic:  Product Value Creation

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

113) Relationship marketing refers to

  1. A) the selection and the assignment of a firm’s personnel for a specific product or product line to a group of current or prospective customers.
  2. B) the belief that it is easier and less expensive to find new customers than to retain old ones.
  3. C) the linking of the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits.
  4. D) the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace.
  5. E) exclusive legally binding contractual agreements between retailers and customers in order to create enhanced value for each party.

Answer:  C

Explanation:  Key term definition—relationship marketing.

Topic:  CRM

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

114) The linking of the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit is referred to as

  1. A) relationship marketing.
  2. B) exclusive dealing.
  3. C) loyalty marketing.
  4. D) customer relationship management.
  5. E) symbiotic marketing.

Answer:  A

Explanation:  Key term definition—relationship marketing.

Topic:  CRM

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

115) Which of the following statements about relationship marketing is most accurate?

  1. A) Relationship marketing has a short-term focus: increasing profits for the firm.
  2. B) Relationship marketing prevents the need to offer unique value to customers.
  3. C) Relationship marketing provides benefits for both customers and the organization.
  4. D) Very few companies today are engaged in relationship marketing.
  5. E) The Internet almost always has a negative impact on a firm’s personal relationships with customers.

Answer:  C

Explanation:  Relationship marketing involves a personal, ongoing relationship between the organization and its individual customers that begins before and continues after the sale. It links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit. Many companies use it, and the Internet can be used to gain customer insights that nurture better relationships.

Topic:  CRM

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

116) In the performing arts world, Tessitura uses box office technology to track every patron transaction, including ticket purchases, fund-raising, volunteering, and gift shop purchases, in one database. The information can help symphonies, operas, and theaters develop customer profiles to tailor sales messages to specific individuals. Tessitura will allow arts groups to engage in

  1. A) market aggregation.
  2. B) relationship marketing.
  3. C) societal marketing.
  4. D) market mining.
  5. E) mainstream marketing.

Answer:  B

Explanation:  Relationship marketing links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits.

Difficulty: 3 Hard

Topic:  CRM

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

117) Publix Supermarkets and The Little Clinic signed an exclusive agreement, placing small walk-in health clinics inside selected stores. Publix customers can have simple medical needs addressed in a convenient and familiar environment seven days a week and pick up their prescriptions from the pharmacy without leaving the store. This is an example of

  1. A) supplier management.
  2. B) customer valuation.
  3. C) societal marketing.
  4. D) market aggregation.
  5. E) relationship marketing.

Answer:  E

Explanation:  Relationship marketing links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits.

Difficulty: 3 Hard

Topic:  CRM

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

118) A business traveler joined the Starwood Preferred Guest Program in order to earn points each time he stayed overnight in a Westin or Sheraton hotel. Once he has accumulated enough points, he can trade his points in for a free night’s stay. As a member of this program, the traveler receives periodic updates on new hotels and learns of ways to earn additional points. The marketing term that best describes this scenario is

  1. A) relationship marketing.
  2. B) customer satisfaction promotion.
  3. C) customer relationship management.
  4. D) customer valuation.
  5. E) supplier-consumer partnership.

Answer:  A

Explanation:  Relationship marketing links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits.

Difficulty: 3 Hard

Topic:  CRM

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

119) A marketing program refers to

  1. A) a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.
  2. B) the selection of product benefits and attributes that are added to or subtracted from a given product to create variations within a product line.
  3. C) the marketing manager’s controllable factors—product, price, promotion, and place—that can be used to solve a marketing problem.
  4. D) the specific ratio within a marketing budget that divides resources between advertising, promotions, and personal selling.
  5. E) the allocation of resources within a firm toward individual marketing mix elements.

Answer:  A

Explanation:  Key term definition-marketing program.

Topic:  Elements of the Marketing Plan

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

120) A ________ is a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.

  1. A) marketing strategy
  2. B) marketing program
  3. C) macromarketing tactic
  4. D) micromarketing tactic
  5. E) customer relationship management

Answer:  B

Explanation:  Key term definition—marketing program.

Topic:  Elements of the Marketing Plan

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

121) After an assessment of needs, a marketing manager must translate ideas from consumers into concepts for products that a firm may develop. The concepts must then be converted into a tangible

  1. A) marketing strategy.
  2. B) macromarketing agenda.
  3. C) micromarketing agenda.
  4. D) marketing program.
  5. E) marketing concept.

Answer:  D

Explanation:  Effective relationship marketing strategies help marketing managers discover what prospective customers need. They must translate this information into some concepts for products the firm might develop. These concepts must then be converted into a tangible marketing program.

Topic:  Elements of the Marketing Plan

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

122) Market segments refer to

  1. A) the relatively heterogeneous groups of prospective buyers that result from the market segmentation process.
  2. B) all buyers of a product or service who have previously purchased a particular firm’s products or services and who intend to repeat that purchase sometime in the future.
  3. C) the smallest number of buyers that have similar needs but do not react similarly in a buying situation.
  4. D) the relatively homogenous groups of prospective buyers that have common needs and will respond similarly to a marketing action.
  5. E) all potential buyers of a product or service who intend to purchase a firm’s products or services but who have not yet done so.

Answer:  D

Explanation:  Key term definition—market segments.

Topic:  Target Markets

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

123) In marketing, each ________ consists of people who are relatively similar to each other in terms of their consumption behavior.

  1. A) market segment
  2. B) demographic cluster
  3. C) organizational buyer group
  4. D) ultimate consumer group
  5. E) qualified prospect group

Answer:  A

Explanation:  Market segments are the relatively homogenous groups of prospective buyers that (1) have common needs and (2) will respond similarly to a marketing action. Thus members of the segment are relatively similar to each other in terms of their consumption behavior.

Topic:  Target Markets

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

124) An inventor for 3M, David Windorski, and a team of four college students, questioned dozens of students about how they study. They told the research team

  1. A) that Scotch tape had outgrown its usefulness to students.
  2. B) to make new products that were more environmentally friendly.
  3. C) that the average backpack was already too heavy.
  4. D) that it would be reasonable to put Post-it Flags together with a highlighter.
  5. E) to determine the ratio of sales of 3M products to those of competitors’ study aid products.

Answer:  D

Explanation:  Windorski had to first discover students’ studying needs. To answer this question, Windorski worked with a team of four college students. Their task was to observe and question dozens of students about their study behavior, such as how they used their textbooks, took notes, wrote term papers, and reviewed for exams. Often, they watched students highlight a passage and then mark the page with a Post-it Note or the smaller Post-it Flag. Windorski realized there was an opportunity to merge the functions of two products into one to help students study.

Topic:  Consumer Needs and Wants

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

125) The purpose of the introduction of 3M Post-it Flag Highlighters was to

  1. A) stay ahead of trends and focus its marketing program on only one segment.
  2. B) stay ahead of trends and focus its marketing program on expanding distribution.
  3. C) increase production economies of scale by reducing manufacturing and marketing costs for Post-it Flags and Post-it Notes.
  4. D) preempt a competitive move by Sanford’s Sharpie to introduce a similar product.
  5. E) help college students with their studying.

Answer:  E

Explanation:  The purpose of the introduction of the Post-it Flag Highlighter was to help college students with their studying.

Topic:  Consumer Needs and Wants

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

126) Which of the following statements about 3M’s marketing program for Post-it Flag Highlighters and Post-it Flag Pens is most accurate?

  1. A) In his first attempt, David Windorski, a 3M inventor, designed the Post-it Flag Highlighter in exactly the right way to appeal to its target market.
  2. B) Paralegals were initially the intended target market for the Post-it Flag Highlighter.
  3. C) David Windorski, a 3M inventor, developed the Post-it Flag Pen for the office worker segment.
  4. D) The Post-it Flag Highlighter was not successful and was deleted from the Post-it Flag product line.
  5. E) In development of the Post-it Flag Highlighter, David Windorski examined similar products of 3M’s major competitors and simply made changes that would provide the “wow” factor.

Answer:  C

Explanation:  David Windorski developed the Post-it Flag Pen for the office worker segment.

Topic:  Consumer Needs and Wants

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

127) The pricing strategy for 3M’s Post-it Flag Highlighters was to

  1. A) match its principal competitors’ highlighters’ prices.
  2. B) charge a price that would provide genuine value to the target customer segment.
  3. C) set an initially low price with the intent of bringing down the price even further later if sales were less than anticipated.
  4. D) place the product in discount office supply retailers to make it easier to purchase.
  5. E) use the same pricing strategy as its 3M’s Post-it Flag and Post-it Note offerings.

Answer:  B

Explanation:  The company charged a price to distributors that it hoped would provide value to students and an acceptable profit to distributors and 3M. In this case, the price of $3.99 to $4.99 for a single Post-it Flag Highlighter or $5.99 to $7.99 for a three-pack are the specified prices at which targeted buyers and distributors receive their respective value and profits. See Figure 1-4.

Topic:  The Four Ps

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

128) The 3M Post-it Flag Highlighter and Pen marketing programs were designed for what primary objective?

  1. A) the initial launch of two new 3M products
  2. B) specific promotions to be used for long-range strategies
  3. C) segmenting the market into 12 specific target market segments
  4. D) marketing 3M products to foreign markets
  5. E) positioning the products relative to major competitors

Answer:  A

Explanation:  The marketing programs for the initial introduction of two new 3M Post-it brand products (Post-it Flag Highlighters and Post-it Flag Pens) targeted two distinctly different customer segments: college students and office workers. See Figure 1-4.

Topic:  Target Markets

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

129) The place strategy in 3M’s marketing program made it convenient for ________ to buy Post-it Flag Highlighters and Post-it Flag Pens.

  1. A) external salespeople only
  2. B) college students only
  3. C) office workers only
  4. D) college students and office workers
  5. E) teachers only

Answer:  D

Explanation:  The Post-it Flag Highlighter and the Post-it Flag Pens were distributed in locations to make it easy for the target markets (college students and office workers) to buy, such as college bookstores and office retailers, respectively. See Figure 1-4.

Topic:  Target Markets

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

130) Based on the marketing program 3M developed for its Post-it Flag Highlighters and Post-it Flag Pens, one can conclude that

  1. A) the market segments for Post-it Flag Highlighters and Post-it Flag Pens are identical.
  2. B) the market segments for Post-it Flag Highlighters and Post-it Flag Pens are not realistic.
  3. C) the Post-it Flag Highlighters and Post-it Flag Pens are priced unreasonably for the target markets.
  4. D) the prices for 3M’s Post-it Flag Highlighters and Post-it Flag Pens are set to maximize 3M’s profits, not its distributors’ profits.
  5. E) the promotion strategy is designed to increase awareness among potential users.

Answer:  E

Explanation:  3M’s promotional strategy is to increase awareness among potential users. See Figure 1-4.

Topic:  Target Markets

Learning Objective:  01-04 Explain how organizations build strong customer relationships and customer value through marketing.

Figure 1-5

 

131) With respect to the history of American business, the ________ era covered the early years of the United States up until the 1920s.

  1. A) sales
  2. B) marketing concept
  3. C) customer relationship
  4. D) market orientation
  5. E) production

Answer:  E

Explanation:  Key term definition—production era. See Figure 1-5.

Topic:  Marketing Eras

Learning Objective:  01-05 Describe how today’s customer relationship era differs from prior eras.

132) If you wanted a new pair of shoes during the Civil War, you traced the outline of your foot on a piece of paper and gave it to a shoemaker. There was no distinction between the right and left foot because you wanted your shoes as quickly as possible, and the shoemaker knew that you would buy them even if they just “sort of” fit. This is an example of a transaction that would have occurred during the ________ era in U.S. business history.

  1. A) marketing concept
  2. B) sales
  3. C) production
  4. D) social entrepreneurship
  5. E) market orientation

Answer:  C

Explanation:  In the production era, goods were scarce and buyers were willing to accept virtually any goods that were available and make do with them.

Difficulty: 3 Hard

Topic:  Marketing Eras

Learning Objective:  01-05 Describe how today’s customer relationship era differs from prior eras.

133) With respect to the history of American business, the ________ era covered the years from the 1920s to the 1960s.

  1. A) production
  2. B) sales
  3. C) marketing concept
  4. D) customer relationship
  5. E) market orientation

Answer:  B

Explanation:  Key term definition—sales era. See Figure 1-5.

Topic:  Marketing Eras

Learning Objective:  01-05 Describe how today’s customer relationship era differs from prior eras.

134) The period of American business history when firms could produce more goods than they could sell and the focus was on hiring more salespeople to seek out new customers is referred to as the ________ era.

  1. A) sales
  2. B) marketing concept
  3. C) production
  4. D) goods
  5. E) market orientation

Answer:  A

Explanation:  In the sales era from the 1920s to the 1960s, manufacturers found they could produce more goods than buyers could consume. Competition grew. The usual solution was to hire more salespeople to find new buyers. See Figure 1-5.

Topic:  Marketing Eras

Learning Objective:  01-05 Describe how today’s customer relationship era differs from prior eras.

135) Shortly after World War II, John Jackson developed an idea for a machine lubricant that was superior to anything currently on the market. He persuaded friends to help him begin producing it for sale. While demand kept up with production at first, he soon found that he had to hire a sales force to sell excess product to manufacturing companies in the area. He decided this was primarily because of several strong competitors that had recently come into the industry. This is an example of marketing behavior that would occur during the ________ era of U.S. business history.

  1. A) marketing concept
  2. B) production
  3. C) goods
  4. D) sales
  5. E) social entrepreneurship

Answer:  D

Explanation:  In the sales era from the 1920s to the 1960s, manufacturers found they could produce more goods than buyers could consume. Competition grew. The usual solution was to hire more salespeople to find new buyers. See Figure 1-5.

Difficulty: 3 Hard

Topic:  Marketing Eras

Learning Objective:  01-05 Describe how today’s customer relationship era differs from prior eras.

136) In the movie Tin Men, two rival salesmen engaged in a variety of dishonest and unethical practices in order to sell aluminum siding to homeowners in 1963. Their job was difficult, in part, because the supply of aluminum siding surpassed the demand for the product and competition was intense. This situation is indicative of the ________ era of U.S. business history.

  1. A) goods
  2. B) sales
  3. C) production
  4. D) market orientation
  5. E) societal marketing

Answer:  B

Explanation:  In the sales era from the 1920s to the 1960s, manufacturers found they could produce more goods than buyers could consume. Competition grew. The usual solution was to hire more salespeople to find new buyers. See Figure 1-5.

Difficulty: 3 Hard

Topic:  Marketing Eras

Learning Objective:  01-05 Describe how today’s customer relationship era differs from prior eras.

137) Imagine a confectionary company has introduced a new nutty candy bar during the 1930s (the sales era in U.S. business history). Which of the following statements would you most likely expect management to make if sales of this new candy bar were much lower than expected?

  1. A) “We’d better do some market testing to determine why people are dissatisfied.”
  2. B) “Perhaps we should make candy bars with raisins.”
  3. C) “Let’s put more aggressive salespeople in the field.”
  4. D) “Let’s lower the price and change the name.”
  5. E) “Don’t worry about it; we’re the largest candy manufacturer in the area. Sooner or later they’ll get hungry enough that they’ll come to us.”

Answer:  C

Explanation:  In the sales era from the 1920s to the 1960s, manufacturers found they could produce more goods than buyers could consume. Competition grew. The usual solution was to hire more salespeople to find new buyers. See Figure 1-5.

Difficulty: 3 Hard

Topic:  Marketing Eras

Learning Objective:  01-05 Describe how today’s customer relationship era differs from prior eras.

138) In U.S. business history, the marketing concept era began in

  1. A) the early years of the Civil War.
  2. B) the 1920s.
  3. C) the 1950s.
  4. D) the mid-1980s.
  5. E) the first few years of the 21st century.

Answer:  C

Explanation:  Marketing became the motivating force among many American firms in the 1950s, which led to the marketing concept—the idea that an organization should (1) strive to satisfy the needs of consumers while also (2) trying to achieve the organization’s goals.

Topic:  Marketing Eras

Learning Objective:  01-05 Describe how today’s customer relationship era differs from prior eras.

139) The ________ concept means that an organization strives to satisfy consumer needs while achieving its goals.

  1. A) marketing
  2. B) sales
  3. C) production
  4. D) societal benefit
  5. E) customer relationship

Answer:  A

Explanation:  Starting in the late 1950s, marketing became the motivating force among many American firms. The marketing concept is the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization’s goals.

Topic:  Marketing Eras

Learning Objective:  01-05 Describe how today’s customer relationship era differs from prior eras.

140) Which of the following statements about the marketing concept is most accurate?

  1. A) The marketing concept can trace its roots to early Greek culture.
  2. B) In using the marketing concept, both companies and consumers are able to satisfy needs simultaneously.
  3. C) In using the marketing concept, companies focus on sales and advertising.
  4. D) The marketing concept is most effective when production is limited and the product will sell itself.
  5. E) All U.S. firms are now operating with a marketing concept philosophy.

Answer:  B

Explanation:  Starting in the late 1950s, marketing became the motivating force among many American firms. The marketing concept is the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization’s goals.

Topic:  Marketing Eras

Learning Objective:  01-05 Describe how today’s customer relationship era differs from prior eras.

141) The idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization’s goals reflects the

  1. A) concept of synergy.
  2. B) marketing concept.
  3. C) principle of customer relationship management.
  4. D) societal marketing concept.
  5. E) consumerism concept.

Answer:  B

Explanation:  Key term definition—marketing concept.

Topic:  Marketing Eras

Learning Objective:  01-05 Describe how today’s customer relationship era differs from prior eras.

142) The marketing concept refers to

  1. A) the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large.
  2. B) the belief that an organization should continuously collect information about customers’ needs, share this information across departments, and use it to create customer value.
  3. C) the view that organizations should satisfy the needs of consumers in a way that provides for society’s well-being.
  4. D) the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace.
  5. E) the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization’s goals.

Answer:  E

Explanation:  Key term definition—marketing concept.

Topic:  Marketing Eras

Learning Objective:  01-05 Describe how today’s customer relationship era differs from prior eras.

143) Which of the following terms best describes the marketing concept?

  1. A) consumer-oriented
  2. B) production-oriented
  3. C) sales-oriented
  4. D) society-oriented
  5. E) competition-oriented

Answer:  A

Explanation:  The marketing concept is the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization’s goals.

Topic:  Marketing Eras

Learning Objective:  01-05 Describe how today’s customer relationship era differs from prior eras.

144) In 1952, General Electric’s annual report stated, “The concept introduces…marketing…at the beginning rather than the end of the production cycle and integrates marketing into each phase of the business.” This is a brief statement of what has come to be known as the

  1. A) sustainability perspective.
  2. B) age of consumerism.
  3. C) sales concept.
  4. D) marketing concept.
  5. E) customer relationship management concept.

Answer:  D

Explanation:  The statement of a firm’s commitment to satisfying consumer wants and needs that probably launched the marketing concept appeared in General Electric’s 1952 annual report.

Topic:  Marketing Eras

Learning Objective:  01-05 Describe how today’s customer relationship era differs from prior eras.

145) Firms such as General Electric, Marriott, and Facebook have achieved great success by putting a huge effort into implementing the marketing concept, giving their firms a

  1. A) production orientation.
  2. B) sales orientation.
  3. C) customer relationship orientation.
  4. D) service orientation.
  5. E) market orientation.

Answer:  E

Explanation:  Firms such as General Electric, Marriott, and Facebook have achieved great success by putting huge effort into implementing the marketing concept, resulting in a market orientation that results in delivering customer value based upon current customer needs.

Topic:  Marketing Eras

Learning Objective:  01-05 Describe how today’s customer relationship era differs from prior eras.

146) Many companies subscribe to being “green” because they feel that consumers value this. Yet, in many of these same firms, office computers are left on 24 hours a day and office paper is not recycled. This example indicates it is not always easy for firms to act in accordance with the

  1. A) marketing concept.
  2. B) customer relationship management concept.
  3. C) consumerism.
  4. D) social entrepreneurship.
  5. E) cause marketing.

Answer:  A

Explanation:  The marketing concept is the idea that an organization should (1) strive to satisfy the wants of consumers (2) while also trying to achieve the organization’s goals. In this example, the organization would like consumers to view it as green, yet it is unable to carryout policies that will help it achieve that organizational goal.

Difficulty: 3 Hard

Topic:  Marketing Eras

Learning Objective:  01-05 Describe how today’s customer relationship era differs from prior eras.

147) An organization with a market orientation

  1. A) focuses its efforts on continuously collecting information about the environment, keeping abreast of competitors’ actions, and using this information to create product innovation.
  2. B) identifies prospective buyers, understands them intimately, and develops favorable long-term perceptions of the organization and its offerings so that they will choose it in the marketplace.
  3. C) strives to satisfy the needs of consumers while also trying to achieve its goals.
  4. D) satisfies the needs of consumers in a way that provides for society’s well-being.
  5. E) focuses its efforts on continuously collecting information about customers’ needs, sharing this information across departments, and using it to create customer value.

Answer:  E

Explanation:  Key term definition—market orientation.

Topic:  Marketing Eras

Learning Objective:  01-05 Describe how today’s customer relationship era differs from prior eras.

148) An organization that focuses its efforts on continuously collecting information about customers’ needs, sharing this information across departments, and using it to create customer value is said to have a(n)

  1. A) product orientation.
  2. B) macroeconomic orientation.
  3. C) market orientation.
  4. D) industry orientation.
  5. E) societal marketing orientation.

Answer:  C

Explanation:  Key term definition—market orientation.

Topic:  Marketing Eras

Learning Objective:  01-05 Describe how today’s customer relationship era differs from prior eras.

149) With respect to the history of American business, today’s firms operate in the ________ era as they must continuously seek to satisfy the high expectations of customers.

  1. A) production
  2. B) sales
  3. C) marketing concept
  4. D) customer relationship
  5. E) societal marketing

Answer:  D

Explanation:  Key term definition—customer relationship era. See Figure 1-5.

Topic:  Marketing Eras

Learning Objective:  01-05 Describe how today’s customer relationship era differs from prior eras.

Figure 1-5

 

150) In Figure 1-5 above, “A” represents which era in U.S. business history?

  1. A) sales era
  2. B) consumerism era
  3. C) marketing concept era
  4. D) customer relationship era
  5. E) production era

Answer:  E

Explanation:  The production era covers the early years of the United States from the 1860s until the 1920s. See Figure 1-5.

Topic:  Marketing Eras

Learning Objective:  01-05 Describe how today’s customer relationship era differs from prior eras.

151) In Figure 1-5 above, “B” represents which era in U.S. business history?

  1. A) sales era
  2. B) production era
  3. C) consumerism era
  4. D) marketing concept era
  5. E) customer relationship era

Answer:  A

Explanation:  The sales era covers the period from the 1920s to the 1960s. See Figure 1-5.

Topic:  Marketing Eras

Learning Objective:  01-05 Describe how today’s customer relationship era differs from prior eras.

152) In Figure 1-5 above, “C” represents which era in U.S. business history?

  1. A) sales era
  2. B) production era
  3. C) consumerism era
  4. D) marketing concept era
  5. E) customer relationship era

Answer:  D

Explanation:  The marketing concept era covers the period from the late 1950s to the late 1990s. See Figure 1-5.

Topic:  Marketing Eras

Learning Objective:  01-05 Describe how today’s customer relationship era differs from prior eras.

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