MC Marketing Test 1 (Chapters 1-4 and 6) – Flashcards
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True or False: The marketing concept states that the social and economic justification for an organization's existence is the satisfaction of customers' wants and needs while meeting organizational objectives.
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True
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A firm that wants to develop a deeper understanding of its customers may optimize profitabilty, revenue, and customer satisfaction by focusing on highly defined and precise customer groups. This is: a. Customer Relationship Management b. Customer Optimization c. Sales Orientation d. Sales Maximization e. All of these
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a. Customer Relationship Management
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Some market-oriented firms give employees expanded authority to solve customer problems on the spot. This is known as: a. Training b. Commissioning c. Deregulation d. Empowerment e. Mediating
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d. Empowerment
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True or False: Marketing is important to business, so marketing should be part of the job of everyone in the organization, not just those in marketing.
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True
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True or False: Marketing is defined as producing, promoting, and selling products.
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False
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_____ is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits. a. Customer Value b. Market Quantity c. Marketing Utility d. Satisfaction Percentage
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a. Customer Value
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_____ is a strategy that focuses on keeping and improving relationships with current customers. a. Commitment Selling b. Relationship Marketing c. Organization-Customer Strategy d. Market Engineering
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b. Relationship Marketing
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Robert could not afford to buy his principles of marketing textbook this semester if the bookstore did not accept credit cards. With his credit card, he was able to have the book for his marketing class. The credit card created _____ utility for Robert. a. Possession b. Place c. Form d. Time e. Price
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a. Possession
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All of the following are marketing management philosophies EXCEPT: a. Profitability Orientation b. Production Orientation c. Market Orientation d. Societal Marketing Orientation
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a. Profitability Orientation
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True or False: Unlike a production-oriented firm, a firm embracing a sales orientation focuses on customer wants and needs so it can develop the best product at the lowest cost that will require very little selling effort.
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False
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An advantage that cannot be copied by the competition is called a(n) _____ competitive advantage. a. Primary b. Monopolistic c. Sustainable d. Unique e. Dominant
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c. Sustainable
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Marketing plans should be written to do all of the following EXCEPT: a. create common goals for employees to work toward b. control the elements of the external marketing environment c. provide clearly stated activities d. all managers to enter the marketplace with an awareness of possibilities and problems e. compare actual and expected performance
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b. control the elements of the external marketing environment
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Walmart realizes a _____ using its relationships with suppliers to give customers low prices and good customer service. a. marketing competitive advantage b. cost comparative advantage c. brand name strategy d. synergistic competitive advantage e. niche competitive advantage
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b. cost comparative advantage
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The set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition is known as a(n): a. experience curve b. competitive advantage c. strategic business unit d. environmental advantage e. market segment
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b. competitive advantage
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Land O' Lakes makes a light butter with canola oil that has 60 percent less cholesterol and 50 percent less fat and calories than butter. This marketing gives the product a: a. mission statement b. tactical strength c. marketing mix d. competitive advantage e. strategic edge
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d. competitive advantage
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Tub King is a small company that refinishes antique claw foot bathtubs and antique sinks, and provides training for bathtub refinishing. The company's management is currently conducting a formal study of its current strengths and weaknesses by looking at the company's profit and sales histories and searching for opportunities and threats by studying consumer trends. Tub King is conducting a(n): a. marketing audit b. environmental scan c. market differentiation scan d. SWOT analysis e. strategic window search
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d. SWOT analysis
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True or False: A company that tries to appeal to multiple market segments rather than a single most likely does so because they feel their marketing strategy will be less expensive.
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False
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All of the following are characteristics of a good objective EXCEPT: a. Consistent b. Measurable c. Time Specific d. Realistic e. Profitable
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e. Profitable
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All of the following are elements of the marketing plan EXCEPT: a. situation analysis b. the marketing mix c. portfolio analysis d. the business mission statement e. the target market strategy
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c. portfolio analysis
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A written document that acts as a guidebook of marketing activities for the marketing manager is known as the: a. strategic plan b. mission statement c. strategy document d. vision statement e. marketing plan
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e. marketing plan
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True or False: The foundation for the pyramid of corporate social responsibility is philanthropic responsibility.
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False
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In order to combat US corporation use of illegal payments and bribes in international business dealings, Congress enacted: a. the Future Corporation Protection Act (FCPA) b. the Corporations Against Foreign Corruptions Act (CAFCA) c. the Foreign Anti-Bribery Act (FABA) d. the Foreign Corrupt Practices Act (FCPA) e. None of these. Congress cannot pass laws regarding foreign business practices
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d. the Foreign Corrupt Practices Act (FCPA)
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The pyramid of corporate social responsibilities contains all of the following components EXCEPT: a. legal responsibilities b. ethical responsibilities c. philanthropic responsibilities d. economic responsibilities e. cultural responsibilities
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e. cultural responsibilities
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Which of the following statements describes ethics? a. Ethical values are situation specific and time oriented. b. Ethics are the moral principles or values that generally govern the conduct of an individual. c. Ethics is the standard of behavior by which conduct is judged. d. Morals are a foundation for ethical behavior e. All of the statements describe ethics
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e. All of the statements describe ethics
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_____ is the concern of business for the long-range welfare of both the company and its relationships to the society within which it operates. a. Conventional morality b. Cultural sensitivity c. Environmental consideration d. Consumerism e. Corporate social responsibility
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e. Corporate social responsibility
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The fact that many people believe that businesses should focus on making a profit and leave social and environmental issues to nonprofit organizations is: a. forcing organizations to choose between stakeholders and the environments in which the stakeholders live b. creating a competitive disadvantage for larger corporations c. one of the arguments in support of social responsibility d. one of the arguments against social responsibility e. one of the reasons so many organizations have a sustainability plan
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d. one of the arguments against social responsibility
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True or False: Morals are rules people develop as a result of cultural values and norms.
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True
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All of the following statements about the creation of a code of ethics are true EXCEPT: a. A code guarantees ethical behavior among a firm's employees. b. The process of formulating the code facilitates discussions that ultimately create better decisions. c. A written code helps employees avoid confusion when determining whether their decisions are ethical. d. A code helps employees identify what their firm recognizes to be acceptable business practices. e. A code can be an effective internal control on behavior.
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a. A code guarantees ethical behavior among a firm's employees.
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True or False: A code of ethics can be an effective internal control on behavior, which is more desirable than external controls such as government regulation.
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True
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At the most basic level, a firm must be profitable. What level of the pyramid of corporate social responsibility is this? a. Accountability b. Ethical c. Economic d. Social e. Legal
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c. Economic
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What do self-sufficiency, upward mobility, work ethic, and conformity have in common? a. They are attitudes that can easily be changed. b. These are three perceptions that Americans have of the Asian lifestyle. c. These are no longer valued attitudes. d. These are three of the core values that influence lifestyles in the United States. e. They are the determinants of a component lifestyle.
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d. These are three of the core values that influence lifestyles in the United States.
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The ___ is a governmental body that has the power to prescribe mandatory safety standards for almost all products consumers use. a. Federal Trade Commission b. Consumer Product Safety Commission c. Federal Communications Commission d. Food and Drug Administration e. Health and Welfare Agency
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b. Consumer Product Safety Commission
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True or False: Social change is perhaps the most difficult external variable for marketing managers to forecast, influence, or integrate into marketing plans.
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True
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_____ is measured by comparing income to the relative cost of a set standard of goods and services in different geographic areas. a. Purchasing power b. Relative pricing c. Gross individual profit d. Price escalation e. Net profit
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a. Purchasing power
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_____ factors are environmental factors that include our attitudes, values, and lifestyles. a. Competitive b. Social c. Economic d. Demographic e. Political
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b. Social
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Shabby Chic fashion boutique has responded to economic trends by placing an emphasis on improving the quality of merchandise it offers, improving customer service, and reducing its cost of goods sold because consumers are not shopping as much as they used to due to lower purchasing power. Shabby Chic is apparently dealing with which level of economic activity? a. Distension b. Stagnation c. Recession d. Inflation e. Stagflation
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c. Recession
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Zimmer-Centerpulse is the world's largest producer of replacement hips and knees for orthopedic surgery. They are particularly interested in marketing in the southwestern United States, where a large aging population lives. Which external environmental element most directly explains its continued growth? a. Political Conditions b. Culture c. Economic Conditions d. Demography e. Social Forces
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d. Demography
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Almost any product in India, from tap water to milk, has traces of toxins due to the overuse and misuse of insecticides by Indian farmers, but the government expects multinational corporations (MNCs) operating in India to produce food that is toxin free. In this way, both _____ factors influence the operating environment for foreign firms. a. economic and social b. technological and legal c. economic and legal d. social and technological e. technological and demographic
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b. technological and legal
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A period of economic activity characterized by negative growth, which reduces demand for goods and services is called a(n): a. recession b. parity c. price escalation d. inflation e. stagnation
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a. recession
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Commericial truck drivers have suffered financially as a result of increasing diesel fuel prices. As they look for ways to make their trucks perform more efficiently, manufacturers have created truck body designs that are more aerodynamically sound. This is an example of how _____ factors can help during recessionary periods. a. technological b. economic c. cultural d. demographic e. competitive
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a. technological
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Mary's mother read many reviews after purchasing a new top-of-the-line blender to make sure she made a good decision. This is an example of: a. reducing cognitive dissonance b. conducting an internal informational search c. product recall d. viral marketing
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a. reducing cognitive dissonance
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What is the role of family and consumer-decision making? a. Family is the cause of cognitive dissonance b. Family is an important social influence. c. Family is an evoked set. d. Family is a subculture.
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b. Family is an important social influence.
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The Italian automaker Ferrari exercises _____ by lending its famous name to a wide range of non-automotive products, including eyewear, clothing, perfume, bicycles, and laptop computers. a. brand extension b. extensive decision-making c. viral marketing d. brand protection
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a. brand extension
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After thorough research, Jack narrows his choice of a new car to a Honda, Toyota, and Accura. These three brands represent Jack's: a. consideration set b. decision set. c. limited set. d. evoked set.
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a. consideration set
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Arianna's _____ come into play when she refuses to purchase music by performers who write songs that she believes disrespect women. a. aesthetics b. values c. ethical fallacies d. culture
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b. values
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_____ occurs when consumers change information that conflicts with their feelings or beliefs. a. selective retention b. subliminal perception c. selected perception d. selected distortion
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d. selected distortion
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_____ is the first stage in the consumer decision-making process. a. Evaluation of alternatives b. Need recognition c. Information search d. Purchase
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b. Need recognition
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Before purchasing an expensive and complex item, people that their time and rely on a lot of information and then make a(n) _____ purchase. a. fully planned b. partially planned c. unplanned d. impulsive
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a. fully planned
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A reference group with which people interact regularly in an informal, face-to-face manner, such as family and friends is known as a(n) _____. a. formal membership group b. secondary membership group c. non-aspirational reference group d. primary membership group
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d. primary membership group
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Betty notices that her new printer is slow and often does not work properly. She realizes that a new printer would get the job done faster and easier. Betty is in the _____ stage of the consumer decision-making process. a. Information search b. Need recognition c. Purchase d. Evaluation of alternatives
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b. Need recognition
