Section 1 Pool Items

8/9/2019 Section 1 Pool Items

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SECTION 1 POOL ITEMS

ANS: "According to the American arketing Association0 marketing is the activity0 set of institutions0 and processes for creating0 communicating0 delivering0 and e4changing offerings that have value forcustomers0 clients0 partners0 and society at large.

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5. is a key ingredient in the philosophy of marketing6 it occurs when people give up something inorder to receive something that they would rather have.a. "4change b. Synergyc. Transformationd. 7everaginge. !eciprocity

ANS: A TS: 1 !"#: $)2 %&': (1)1 T*": Def T%: AA+S& !eflective Thinking, T&-" odel roduct

8. 9n order for e4change to occur:a. a comple4 societal system must be involved b. organied marketing activities must also take placec. a profit)oriented organiation must be involved in the processd. money or other legal tender is re;uirede. each party must have something the other party considers to be valuable

ANS: ""4change involves the trade of items of value0 but does not necessarily involve formal organiations0 profit0 or money


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TS: 1 !"#: 2)5 %&': (1)/ T*": AppT%: AA+S& "thics, T&-" odel roduct

11. The concept of e4change is important to marketing because:

a. if all the conditions for an e4change are in place0 then the e4change will be completed b. e4change provides money to marketersc. marketing activities help to create e4changed. marketing activities are a re;uirement for e4change to take placee. money is the only medium of e4change for business marketers

ANS: +arketing activities help the e4change to take place0 but marketing can occur without an e4change.

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12. @hich of the following is N%T a marketing management philosophya. sales orientation b. societal marketing orientationc. market orientationd. profitability orientatione. production orientation

ANS: D TS: 1 !"#: 2)8 %&': (1)/ T*": Def T%: AA+S& !eflective Thinking, T&-" odel Strategy

15. #irms with a orientation focus on the internal capabilities of the firm rather than on the desires

and needs of the marketplace.a. sales b. productionc. marketd. customer e. customer)benefit

ANS: & TS: 1 !"#: 2)5 %&': (1)/ T*": Def T%: AA+S& !eflective Thinking, T&-" odel roduct

18. A company that sets its goals and strategies based on what its current e;uipment can produce0 what products engineering can design0 and what the company itself can do best0 has a>n? orientation.a. marketplace

b. salesc. marketd. e4changee. production

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1=. A firm with a production orientation is most likely to survive if:a. there are many small competitors in the marketplace


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b. demand for the product it produces e4ceeds supplyc. the needs of the marketplace are constantly shiftingd. supply for the product it produces e4ceeds demande. any of the above conditions e4ist

ANS: &

The production orientation can survive in the short term under a variety of conditions6 however0 ifmarket needs change0 long)term survival is difficult.

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/(. A firm that adopts a>n? orientation to marketing will fail to consider whether what the firm produces most efficiently also meets the needs of the marketplace.a. customer b. e4changec. productd. market

e. production

ANS: "The production orientation forces a company to build whatever it builds best0 that is0 whatever it hasthe e4perience and e4pertise in doing.

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//. The orientation assumes people will buy more if aggressive selling techni;ues are used.

a. market b. salesc. customer d. productione. e4change

ANS: &The sales orientation assumes aggressive selling is what is needed to increase demand.

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/$. A orientation assumes marketing means selling things and collecting money. 9t also assumes

people will buy more goods and services if aggressive marketing techni;ues are used.a. sales b. productionc. marketd. customer e. marketplace

ANS: A TS: 1 !"#: 5 %&': (1)/ T*": Def T%: AA+S& !eflective Thinking, T&-" odel +ustomer


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/5. 9f a company uses a sales orientation0 consumer complaints would most likely result in:a. a modification of the sales presentation b. product reinventionc. continuous market researchd. philanthropy

e. attempts to cut production costsANS: AThe sales orientation relies on aggressive sales techni;ues to fuel business.

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/=. +ompanies that rely on the marketing concept and that have implemented a market orientation strategyrecognie that:a. price is the most important variable for customers

b. sales depend predominantly on an aggressive sales forcec. what the customer thinks he or she is buying is what is importantd. a company has to apply scientific management techni;ues to survivee. selling and marketing are essentially the same thing

ANS: +The perceived product and perceived value are what the customer is buying0 and the marketingconcept and market orientation have endeavored to understand those perceptions.


$(. A company that has a market orientation and adheres to the marketing concept does N%T:a. integrate all the activities of the firm to satisfy customer wants b. focus on consumer needs and wantsc. differentiate the firm3s products from its competitor3s productsd. fuel sales growth through the application of aggressive sales techni;uese. concentrate on long)term goal achievement >such as profits and growth? for the firm

ANS: DAggressive sales techni;ues are part of the sales orientation and are not needed if a company ismeeting needs and wants of its customers.

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$1. The statement0 Barketing should be introduced at the beginning rather than the end of the productioncycle and integrated into each phase of the business0B is consistent with a>n? orientation.a. production b. marketc. retaild. salese. enterprise

ANS: &Cnderstanding the competitive arena and competitors3 strengths and weaknesses is a criticalcomponent of market orientation.


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$8. The marketing concept involves:a. focusing on customers3 wants so that the organiation can distinguish its product >or

products? from the competitors3 products b. satisfying management3s needs and wants with the idea of ma4imiing profits in the short

runc. selling as much product as possible under the assumption people will buy more goods and

services if aggressive selling techni;ues are usedd. selling as much as possible under the assumption consumers will buy more at lower pricese. focusing on production in order to increase product ;uality and lower prices

ANS: A TS: 1 !"#: 5)8 %&': (1)/ T*": Def T%: AA+S& !eflective Thinking, T&-" odel +ustomer

$. The marketing concept includes a goal orientation to remind managers that:a. achieving long)term organiational goals is as important as satisfying customers b. customers must be satisfied no matter what the long)term effect on the firmc. the only reason for any business to e4ist is to make a profitd. the obEective is to find a target market that differs from that of the competitione. functional integration of all departments is useful but not essential

ANS: AThe goal orientation refers to the company3s goals0 such as profit0 growth0 service0 and survival.

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$F. The marketing concept stresses that the social and economic Eustification for an organiation3se4istence is the satisfaction of customer needs and wants while:a. producing a good or service at the lowest possible cost b. improving the general standard of livingc. constantly increasing sales volumesd. applying scientific management techni;ues to improve efficiencye. simultaneously meeting organiation obEectives

ANS: "The marketing concept holds that the needs and wants of both the customer and the firm be served.


2(. An organiation with a>n? believes that it e4ists not only to satisfy customer wants and needsand to meet organiational obEectives but also to preserve or enhance individuals3 and society3s long)term best interests.a. sales orientation b. market orientationc. ethical business mission


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d. focused target market strategye. societal orientation

ANS: " TS: 1 !"#: 8 %&': (1)/ T*": Def T%: AA+S& Diversity, T&-" odel +ustomer

25. @hich of the following statements about the societal orientation is truea. +ompanies that protect the environment by using all)natural materials in their products are

showing a societal marketing orientation. b. arketers cannot deliver all benefits sought by customers because these benefits may not

be in the long)term best interests of the customers.c. The societal marketing concept is an important refinement of the market concept.d. %rganiations have both a social and economic Eustification for their e4istence.e. All of these statements about the societal orientation are true.

ANS: " TS: 1 !"#: 8 %&': (1)/ T*": +omp

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2F. %rganiations that sell products that are often unsought >such as life insurance and retirement plans?may find themselves adopting a orientation because the companies are marketing products thatmost people do not want.a. sales b. productionc. marketingd. producte. customer

ANS: AAggressive selling is sometimes used by companies that sell products their customers do not want to buy.

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5. gives customers the feeling their concerns are being addressed and at the same time givesemployees the feeling their e4pertise matters to management.a. anagement)employee synergy b. %rganiational entropyc. anagerial reciprocity

d. "mpowermente. Delegation

ANS: D TS: 1 !"#: = %&': (1)$ T*": Def T%: AA+S& !eflective Thinking, T&-" odel +ustomer

5F. arket)oriented firms primarily focus their efforts upon:a. improving the technological skills and competitive advantages of the firm b. satisfying the organiation3s needs for low overheadc. achieving the companyGs societal responsibilities ine4pensivelyd. distributing goods and servicese. satisfying the wants and needs of their customers


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ANS: "arket)oriented firms are focused outward toward their customers.

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5=. @hich of the following statements about a typical sales)oriented business is truea. The company develops its products to meet the needs of specific groups of people. b. The primary goal of the company is profit through customer satisfaction.c. The company invests the maEority of its resources in promoting its products and services.d. The company is in business to satisfy customers3 wants and needs and deliver superior

value.e. All of these statements about a typical sales)oriented business are true.

ANS: +See !eview 7earning %utcome $.

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8(. is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.a. %pportunity cost b. arketing utilityc. arket ;ualityd. Satisfaction percentagee. +ustomer value

ANS: " TS: 1 !"#: 8 %&': (1)$ T*": Def T%: AA+S& !eflective Thinking, T&-" odel +ustomer

81. arketers interested in offering customer value can:a. offer products that perform b. give the consumer factsc. offer organiation)wide commitment to service and after)the)sale supportd. avoid unrealistic pricinge. do all of these

ANS: " TS: 1 !"#: 8) %&': (1)$ T*": +ompT%: AA+S& !eflective Thinking, T&-" odel ricing, T&-" odel roduct, T&-" odel+ustomer

82. @hen customer e4pectations regarding product ;uality0 service ;uality0 and value)based priceare met or e4ceeded0 is created.a. a value line b. a ;uality riftc. planning e4cellenced. customer satisfactione. e4pectation satisfaction

ANS: D TS: 1 !"#: %&': (1)$ T*": Def T%: AA+S& !eflective Thinking, T&-" odel ricing, T&-" odel roduct, T&-" odel+ustomer


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88. is a strategy that entails forging long)term partnerships with customers.a. +ommitment selling b. !elationship marketing

c. Transactional marketingd. arket engineeringe. %rganiation)customer synergy

ANS: & TS: 1 !"#: F %&': (1)$ T*": Def T%: AA+S& !eflective Thinking, T&-" odel +ustomer

1. @hich of the following measures would be the best indicator of whether your organiation3s personnelhave a customer orientationa. Ask each employee3s boss if that person is customer)oriented. b. Assess each employee3s impact on the profitability of the firm.

c. Survey customers on how oriented the organiation3s personnel are to customer needs anddesires.

d. Assess how well each employee has contributed to the marketing success of the firm bye4amining every financial statement created by the organiation.

e. Test employees on their knowledge of customer service techni;ues.

ANS: +The key to assessing how customer)oriented a firm3s personnel are is to ask the customer. %nly thecustomer can provide this type of information.

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$. Some market)oriented firms give employees e4panded authority to solve customer problems on thespot. This is known as:a. training b. deregulationc. empowermentd. commissioninge. mediating

ANS: + TS: 1 !"#: = %&': (1)$ T*": Def T%: AA+S& +ommunication, T&-" odel +ustomer

8. is the collaborative efforts of people to achieve common obEectives.a. "ffort training b. Teamwork c. "mpowermentd. %'T traininge. ediation

ANS: & TS: 1 !"#: = %&': (1)$ T*": Def T%: AA+S& !eflective Thinking, T&-" odel Strategy


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. Dofasco0 9nc. is a +anadian steel manufacturer. According to its +"%0 Beople can make a phenomenaldifference if you stop telling them to come to work0 put their brains in a bo40 and do whatever thesupervisor says. @e let our employees work in teams.B This ;uote implies that by using teamwork0Dofasco:

a. operates successfully using a production orientation b. provides its customer with a high level of satisfactionc. has a high employee turnover rated. does not deliver superior customer servicee. has a sales orientation

ANS: &Teamwork is one way a company with a market orientation creates customer satisfaction.

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F. Dofasco0 9nc. is a +anadian steel manufacturer. According to its +"%0 Beople can make a phenomenal

difference if you stop telling them to come to work0 put their brains in a bo40 and do whatever thesupervisor says. @e let our employees work in teams.B Teamwork would benefit Dofasco by:a. enhancing employee performance b. doing away with the need for empowermentc. creating managerial entropyd. refining the definition of customer valuee. doing all of these

ANS: A"nhanced employee performance leads to improved customer satisfaction.

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=. !edefining the business mission of a mattress manufacturer as Ba good night3s sleep0B rather thanstating the mission as Bthe manufacture of high);uality mattresses0B will:a. not stimulate an awareness of changes in consumer desires b. be too broad a statement to be of any real use in serving customersc. stifle creativity in discovering opportunities to serve customersd. help ensure the firm retains its focus on consumers and does not become preoccupied with

its products and internal needse. ensure the core products will be retained

ANS: DThe broader business mission of Ba good night sleepB will stimulate innovation and creativity because

not all sleep aids are mattresses. 9t will lead the company to further growth.

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F(. %ne of the reasons given for the decline of the passenger rail industry in the Cnited States is that theindustry defined its mission as trains and not as transportation sources. The railroad industry failed to:a. define its mission in terms of the benefits its customers seek b. ignore the marketing concept of serving customer needs and wantsc. realie Bcustomers only want what they knowBd. have a sales orientation


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e. empower the consumer

ANS: AA market)oriented firm defines its business in terms of the benefits its customers seek. &ecause of thelimited way the railroad industry defined its business0 it missed an opportunity to define itself in termsof the benefits customers were seeking.

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F1. @hen light bulbs were first introduced0 manufacturers offered one sie for all light fi4tures. Today youcan buy light bulbs in different shapes0 different wattages0 and different colors. They also differ as tohow much electricity they use and how many hours of illumination they will provide before failing.7ight bulb manufacturers:a. miss sales by not concentrating on the average customer b. recognie different customer groups have different needs and wantsc. are sales)oriented companiesd. are companies that would state they are in the business of selling bulbs

e. are aiming at a goal of profit through ma4imum sales volume

ANS: &%ne way to implement the marketing concept is to concentrate on the needs of specific groups ofcustomers.

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F/. %ne way to identify the orientation of a firm is to e4amine its primary goal. 9f a firm seeks to achieve profitability through sales volume0 it would probably be:a. promotion)oriented

b. price)orientedc. sales)orientedd. production)orientede. retail)oriented

ANS: + TS: 1 !"#: 5 , 11 %&': (1)$ T*": +ompT%: AA+S& !eflective Thinking, T&-" odel Strategy

F. is the primary tool used by a sales)oriented organiation to achieve its corporate goals.a. rice b. romotion

c. roduct designd. lace >distribution?e. roduction

ANS: &A sales)oriented organiation seeks to generate sales volume based upon intensive promotionalactivities.

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FF. #or a market)oriented organiation0 the primary tool used to achieve its goals is:


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a. a blend of product0 place0 promotion0 and pricing decisions b. pricec. product designd. place >distribution?e. promotion

ANS: AA market)oriented organiation seeks to generate sales volume based on serving customer needs andwants0 utiliing all of the elements of the marketing mi4 to do so.

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=2. @hat is the fundamental obEective of most businessesa. employee empowerment0 teamwork0 and relationship marketing

b. satisfied stakeholdersc. low costs and high ;ualityd. customer loyalty and retentione. survival0 profits0 and growth

ANS: "The use of marketing allows businesses to achieve this obEective.

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=5. @hich if the following is N%T a good reason to study marketing

a. arketing teaches businesses how to sell products that people do not need. b. arketing plays an important role in society0 coordinating the huge numbers oftransactions needed to provide goods and services.

c. arketing is a key function in business.d. arketing offers outstanding career opportunities.e. arketing affects your day)to)day life as a consumer.

ANS: AThat marketing enables companies to sell even bad and worthless goods is a myth.

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=8. @hich of the following statements contains one good reason for studying marketinga. arketing teaches businesses how to sell products that people do not need. b. arketing deals with transactions))not relationships.c. arketing has little impact on your day)to)day life.d. arketing offers outstanding career opportunities.e. The study of marketing helps you to better understand why the Eob market is shrinking.

ANS: Darketing plays an important role in society0 coordinating the huge numbers of transactions needed to provide goods and services. arketing affects your day)to)day life as a consumer.

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T%: AA+S& Analytic, T&-" odel Strategy


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Chapter 3

MULTIPLE CHOICE

1. is the concern of business for the long)range welfare of both the company and its relationships to thesociety within which it operates.

a. +onsumerism b. +orporate social responsibilityc. +ultural sensitivityd. +onventional moralitye. "nvironmental consideration

ANS: & TS: 1 !"#: /= %&': ($)1 T*": Def T%: AA+S& "thics, T&-" odel Strategy

$. +orporate social responsibility is defined as the:a. belief that the legal system defines ethical behavior b. development of inclusive codes of ethicsc. rules by which social rewards are attainedd. concern for social welfare by businessese. coordination of social programs for publicity purposes

ANS: D TS: 1 !"#: /= %&': ($)1 T*": Def T%: AA+S& "thics, T&-" odel Strategy

2. +orporate social responsibility:a. is mandated by federal law b. re;uires companies to sacrifice economic performance for the sake of their stakeholdersc. does not influence competitiond. may not always result in profit and growth

e. is unaffected by environmental changes

ANS: D TS: 1 !"#: /= %&': ($)1 T*": +ompT%: AA+S& "thics, T&-" odel Strategy

. is the idea that socially responsible companies will outperform their peers by focusing on theworld3s social problems and viewing them as opportunities to build profit and help the world at thesame time.a. Sustainability b. hilanthropyc. +ause marketingd. +reative ethicse. 9nternational ethics

ANS: A TS: 1 !"#: /= %&': ($)1 T*": Def T%: AA+S& "thics, T&-" odel Strategy

T%: AA+S& "thics, T&-" odel Strategy

=. The pyramid of corporate social responsibilities contains all of the following components "H+"T:a. economic responsibilities b. ethical responsibilities


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c. cultural responsibilitiesd. legal responsibilitiese. philanthropic responsibilities

ANS: +See !eview 7earning %utcome 1.

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15. The four components of the pyramid of corporate social responsibility are:a. sustainability0 creativity0 profit0 and culture b. organiational culture0 creativity imagery0 economic performance0 and obEectivityc. organiational0 financial0 social0 and cultural responsibilitiesd. sustainability0 legality0 creativity0 and competitione. economic0 legal0 ethical0 and philanthropic responsibilities

ANS: " TS: 1 !"#: /=)$( %&': ($)1 T*": Def T%: AA+S& "thics, T&-" odel Strategy

18. @hich of the following statements describes ethicsa. "thics are the moral principles or values that generally govern the conduct of an

individual. b. "thics is the standard of behavior by which conduct is Eudged.c. orals are a foundation for ethical behavior.d. "thical values are situation specific and time oriented.e. All of the statements describe ethics.

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1. @hich of the following sayings best describes how people with conventional morality acta. Don3t put all of your eggs in one basket. b. @hen in !ome0 do as the !omans do.c. &e wary of strangers bearing gifts.d. A rolling stone gathers no moss.e. Don3t count your chickens before they hatch.

ANS: & TS: 1 !"#: $1 %&': ($)/ T*": +ompT%: AA+S& "thics, T&-" odel Strategy

/(. The use of ethical decision making:a. can be influenced by top managers b. is influenced by the probability of harmful outcomesc. depends on the number of people to be affectedd. depends on the magnitude of possible conse;uencese. is accurately described by all of the choices

ANS: " TS: 1 !"#: $1 %&': ($)/ T*": +ompT%: AA+S& "thics, T&-" odel Strategy

//. @hich of the following factors does N%T tend to influence ethical decision making and Eudgments


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a. probability of a harmful outcome b. length of time between decision and the onset of conse;uencesc. level of multiculturalismd. number of people to be affectede. potential magnitude of the conse;uences

ANS: + TS: 1 !"#: $1 %&': ($)/ T*": +ompT%: AA+S& "thics, AA+S& Diversity, T&-" odel Strategy

/2. A human resources manager is creating a code of ethics for the employees of the retirement home sheworks for. @hich of the following is N%T an ethics principle she should keep in mind as she createsthis codea. The principles should not upset current retirement home workers and future Eob applicants. b. Any decisions should be fair to all concerned: retirement home nurses0 cleaning personnel0

and administrative staff.c. 9nput on the code should be gained from other knowledgeable individuals or groups.d. rinciples can deviate from common practices because of the prestigious nature of the

facility.e. She should not have to pull rank or use coercion to implement her ethics code.

ANS: DAn unethical code would presume that the company is an e4ception to a common practice in theindustry.

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/5. A>n? is a defined group that managers feel is most likely to buy a firm3s product.a. target market

b. buying center c. aggregated unitd. consumer cluster e. demographic sample

ANS: A TS: 1 !"#: $/ %&': ($)$ T*": Def T%: AA+S& !eflective Thinking, T&-" odel +ustomer

/. @hich of the following statements best describes the typical target marketa. A target market will remain stable over time0 with the same group of consumers. b. Target markets change over time as consumers drop in or out of the market0 and as tastes

change.

c. Target markets are not strongly affected by changes in the e4ternal environment.d. Target markets only change when the features and benefits of the product offering change.e. Target markets cannot be specifically defined according to age0 income0 or location

because these factors are continually changing.

ANS: &Target markets are defined and described0 but they are always changing in response to environmentalchanges.

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/=. The e4ternal environment:a. can be controlled in much the same manner as the internal marketing mi4 b. cannot be influenced by marketing managersc. does not change over time

d. does not have an impact on Fortune 5(( companiese. must be continually monitored by marketing managers

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$(. The e4ternal environment is a strong influence on a target market and can be a source of for themarketing manager.a. opportunities and threats b. threats and strengthsc. environmental loopholesd. opportunities and weaknessese. product myopia

ANS: AThe e4ternal environment can provide opportunities to serve new and changing needs0 as well aswarnings about changes that could threaten the current position of the firm. Students will need toremember what a S@%T analysis is to answer this ;uestion.

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$1. arketing managers cannot control 0 but they can at times influence it.a. where advertising is placed b. the e4ternal environment

c. the sales forced. the distribution strategye. how products are priced

ANS: &The e4ternal environment is basically uncontrollable0 but the other four answers are part of themarketing mi4.

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$$. @hat is apparently the most difficult e4ternal variable for marketing managers to forecast0 influence0

or integrate into marketing plansa. technology b. social factorsc. demographyd. competitione. economic conditions

ANS: &Social factors and changes are difficult to foresee0 because they are usually slow and


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T%: AA+S& !eflective Thinking, T&-" odel arketing lan

$5. @hen a company engages in 0 it is implementing strategies that attempt to shape the e4ternalenvironment in which it operates.

a. synergistic control b. environmental managementc. transactional managementd. market controle. reactive management

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$F. factors are the environmental factors concerned with the changes in people3s values0 lifestyles0and family roles.

a. Social b. "conomicc. oliticald. +ompetitivee. Demographic

ANS: A TS: 1 !"#: $$ %&': ($)2 T*": +ompT%: AA+S& !eflective Thinking, T&-" odel +ustomer

2$. +onsumer preference for low)carb diets has greatly modified the way food is being marketed. Thisconcern with health issues is an e4ample of a>n? factor.

a. economic b. political and legalc. technologicald. demographice. social

ANS: " TS: 1 !"#: $$ %&': ($)2 T*": Def T%: AA+S& !eflective Thinking, T&-" odel roduct, T&-" odel +ustomer

25. @hat do self)sufficiency0 upward mobility0 and conformity have in commona. These are no longer valued attitudes. b. They are attitudes that can easily be changed.

c. These are three perceptions that Americans have of the Asian lifestyle.d. These are three of the core values that have influenced lifestyles in the Cnited States.e. They are the determinants of a component lifestyle.

ANS: DThe fourth value is work ethic.

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2F. A>n? is the practice of choosing goods and services that meet one3s diverse needs and interestsrather than conforming to a single0 traditional lifestyle.a. aggregated lifestyle b. component lifestylec. psychographic mode of living

d. demographically defined lifestylee. targeted lifestyle

ANS: & TS: 1 !"#: $$)$2 %&': ($)2 T*": Def T%: AA+S& Diversity, T&-" odel roduct

55. The growth of dual)income families has resulted in:a. burnout b. a sense of entitlementc. decreased discretionary incomed. decreased INe. increased purchasing power

ANS: " TS: 1 !"#: $2 %&': ($)2 T*": Def T%: AA+S& !eflective Thinking, T&-" odel +ustomer

58. @hich of the following events has had a greater effect on marketing than any other social changea. the growing number of one)child families b. the increasing number of immigrants from Northern "uropec. the growing number of people on the 9nternetd. the increasing number of working womene. the growing number of people of retirement age who are continuing work

ANS: D TS: 1 !"#: $2 %&': ($)2 T*": +ompT%: AA+S& !eflective Thinking, T&-" odel +ustomer

5F. The study of people3s vital statistics0 such as their ages0 births0 deaths0 and locations0 is called:a. cultural sociology b. psychometricsc. ecologyd. ethnographye. demography

ANS: " TS: 1 !"#: $2)$5 %&': ($)5 T*": Def T%: AA+S& !eflective Thinking, T&-" odel +ustomer

5=. @hich of the following is N%T a demographic characteristic of a populationa. income level b. agec. valuesd. educatione. birthrate

ANS: +Jalues are a social factor.

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8=.A multicultural society is characteried by:a. a population of recent immigrants that are closely related by custom and tradition b. a conglomeration of small and large ethnic groups that have little in commonc. even distribution of all ethnic groups in a geographic region

d. effective mass)marketing techni;uese. one large dominating racial or ethnic group in a geographic area

ANS: + TS: 1 !"#: $= %&': ($)8 T*": Def T%: AA+S& Diversity, T&-" odel Distribution, T&-" odel +ustomer

1. A furniture retailer that specialies in selling entire rooms of furniture has hired you to identify /5geographic target markets that can be described as multicultural societies. @hat types of locationsshould you offer this firma. cities that have historically had low immigration rates b. traditional test marketsc. regions that are dominated by one ethnic group and that have multiple smaller ethnic

groupsd. unindustrialied arease. locations in which all maEor ethnic groups in the area are e;ually represented

ANS: "ulticultural societies are not defined by geography0 history0 or products produced0 but by the racialand ethnic composition of the population.

TS: 1 !"#: $= %&': ($)8 T*": AppT%: AA+S& Diversity, T&-" odel +ustomer

2. The higher your 0 the higher your purchasing power:a. gross income b. social classc. disposable incomed. cost of livinge. inflation inde4

ANS: +urchasing power is measured by comparing income to the relative cost of a set standard of goods anservices. 9t is a aligned with net income0 or income minus a standard set of e4penses. Assuming aconstant income0 the higher the cost of living >the e4penses?0 the lower the purchasing power.

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8. #actors0 such as interest rates0 inflation0 and consumer income that influence the marketingenvironment0 are called factors.a. economic b. socio)demographicc. politicald. governmente. consumption

ANS: A TS: 1 !"#: $= %&': ($) T*": Def


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. is measured by comparing the relative cost of a standard of goods and services in differentgeographic areas.a. Iross individual profit

b. urchasing power c. Net profitd. !elative pricinge. rice escalation

ANS: & TS: 1 !"#: $=)2( %&': ($) T*": Def T%: AA+S& !eflective Thinking, T&-" odel +ustomer

F. @hen income is high relative to the cost of living0 consumers .a. have more discretionary income b. begin anticipating a period of price decelerationc. stop buying lu4ury goods and servicesd. have significantly less disposable income

e. anticipate price escalation by stockpiling

ANS: A TS: 1 !"#: $=)2( %&': ($) T*": +ompT%: AA+S& !eflective Thinking, T&-" odel +ustomer

=. is the primary determinant of a person3s earnings.a. ulticulturalism b. 7ifestylec. "ducationd. The aging of the baby boomerse. Ilobal competition

ANS: + TS: 1 !"#: $= %&': ($) T*": Def


F(. is measure of the decrease in the value of money0 e4pressed as the percentage reduction in valuesince the previous year.a. 9nflation b. !ecessionc. Depressiond. +onsumer break)evene. rice escalation

ANS: A TS: 1 !"#: 2( %&': ($) T*": Def T%: AA+S& !eflective Thinking, T&-" odel ricing

F1. @hen planning marketing strategies during times of inflation0 marketers must be aware inflationcauses consumers to:a. purchase more goods and services to support their psychological selves0 such as

counseling and stress management training b. consume more meals away from homec. buy in small ;uantities until inflation is over d. decrease their brand loyalty to products they have traditionally usede. put more money into savings accounts because prices are too high

ANS: D9n times of inflation0 consumers are more price conscious and less brand)loyal.


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TS: 1 !"#: 2( %&': ($) T*": +ompT%: AA+S& !eflective Thinking, T&-" odel ricing

F/. A period of economic activity when income0 production0 and employment tend to fall0 reducing overall

demand0 is called:a. stagnation b. an inflationc. a recessiond. price escalatione. a depression

ANS: + TS: 1 !"#: 2( %&': ($) T*": Def T%: AA+S& !eflective Thinking, T&-" odel ricing

F5. @hich of the following strategies is appropriate for a marketer to use during a time of economicrecession

a. romote product value. b. aintain and improve customer services.c. "mphasie top)of)the)line products in promotions.d. %ffer products that are economical and efficient.e. Do all of these.

ANS: " TS: 1 !"#: 2()21 %&': ($) T*": +ompT%: AA+S& Technology, T&-" odel ricing

F8. @hich of the following is sometimes an effective weapon for fighting inflation and recessiona. technology b. line e4tensions

c. increased capital gains ta4esd. introducing product)line e4tensionse. reducing !-D e4penditures

ANS: A TS: 1 !"#: 2()21 %&': ($)F T*": Def T%: AA+S& !eflective Thinking, T&-" odel !esearch

F. !esearch that attempts to e4pand the frontiers of knowledge rather than solving a specific0 pragmatic problem is called:a. technical diversity b. reactive researchc. applied researchd. e4periential research

e. basic research

ANS: " TS: 1 !"#: 21 %&': ($)F T*": Def T%: AA+S& !eflective Thinking, T&-" odel !esearch

1((. 7aws and regulations of various governments and their ongoing development and change are ane4ample of factors and are part of all organiations3 e4ternal environment.a. economic investment b. political and legalc. research and developmentd. competitive


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e. demographic

ANS: & TS: 1 !"#: 2/ %&': ($)= T*": Def T%: AA+S& Technology, T&-" odel Strategy

1(1. The Act strengthened the +layton Act to prevent corporate ac;uisitions that reduce competition.

a. Kart)Scott)!odino b. 7anham)Scottc. +eller)Lefauver Antimerger d. !obinson)atmane. Sherman

ANS: +See "4hibit $./. The +eller)Lefauver Act bolstered the +layton Act3s provision dealing withinterlocking directorates and closed another loophole that had allowed corporate takeovers.

TS: 1 !"#: 2/ %&': ($)= T*": Def T%: AA+S& Analytic, T&-" odel Strategy

1(/.The Act re;uires large companies to notify the government of their intent to merge.a. Kart)Scott)!odino b. Shermanc. +eller)Lefauver Antimerger d. !obinson)atmane. 7anham

ANS: ASee "4hibit $./.

TS: 1 !"#: 2/ %&': ($)= T*": Def T%: AA+S& Analytic, T&-" odel Strategy

1($. The Iramm)7each)&liley Act and the Kealth 9nsurance ortability and Accountability Act are bothimportant laws designed to:a. protect the channels of commerce b. restrict alcohol and tobacco advertisingc. eliminate certain products from being advertised on childrenGs television programsd. protect consumers from identity thefte. penalie marketers selling merchandise with counterfeit brand names

ANS: D TS: 1 !"#: 2/ %&': ($)= T*": Def



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Chapter

$. Strategic plans re;uire:a. long)term resource commitments

b. a change in organiational structurec. the addition of new personneld. new product developmente. changes in prices

ANS: AStrategic plans are long)range plans that involve developing0 organiing0 and controlling marketingactivities.

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2. is the managerial process of creating and maintaining a fit between the organiation3s obEectives

and resources and evolving market opportunities.a. Tactical management b. The market auditc. #unctional planningd. "nvironmental scanninge. Strategic planning

ANS: " TS: 1 !"#: 15 %&': (/)1 T*": Def T%: AA+S& !eflective Thinking, T&-" odel Strategy

. @hich of the following statements about a marketing plan is true

a. arketing plans can e4ist as oral traditions. b. The marketing plan should be viewed as a series of se;uential steps.c. All marketing plans have basically the same content.d. A marketing plan is created so an organiation can meet its marketing obEectives.e. All of the statements about a marketing plan are true.

ANS: D&y definition0 marketing plans are written. Several steps of the marketing plan can be done at the sametime. The content of marketing plans varies.

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F. is the process of anticipating events and determining strategies to achieve organiationalobEectives.a. lanning b. ortfolio evaluationc. #orecastingd. 9mplementatione. "valuation

ANS: A TS: 1 !"#: 15 %&': (/)1 T*": Def T%: AA+S& !eflective Thinking, T&-" odel arketing lan


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1(. arketing plans should be written to do all of the following "H+"T:a. compare actual and e4pected performance b. provide clearly stated activitiesc. create common goals for employees to work toward

d. allow managers to enter the marketplace with an awareness of possibilities and problemse. control the elements of the e4ternal marketing environment

ANS: "arketing environment variables cannot be controlled.

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11. @hich of the following is one of the elements of the marketing plana. a business mission statement b. a situation analysisc. a target market strategy

d. the marketing mi4e. all of the choices

ANS: "See "4hibit /.1.

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1$. The answers the ;uestion0 B@hat business are we in0 and where are we goingBa. mission statement

b. financial statementc. situation analysisd. market strategye. strategic plan

ANS: A TS: 1 !"#: 1F %&': (/)/ T*": Def T%: AA+S& Analytic, T&-" odel Strategy

1. The focus of an organiation3s mission statement should be on:a. the products it wishes to sell b. the market it wishes to servec. its social responsibilities

d. the desires of government regulatorse. technologies it understands well

ANS: &The choice of the market to serve determines the product and technology decisions.

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/(. occurs when a business is defined in terms of goods and services rather than by the benefitscustomers seek from it.


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a. A circle trap b. A market barrier entryc. A reactive focusd. Cnempowermente. arketing myopia

ANS: " TS: 1 !"#: 1F %&': (/)/ T*": Def T%: AA+S& !eflective Thinking, T&-" odel roduct

/1. A popular techni;ue for managing a large organiation with different technologies and markets is todivide it into:a. strategic business units b. different technologiesc. strategic target marketsd. design matricese. tactical segments

ANS: A TS: 1 !"#: 1F %&': (/)/ T*": Def


//. The acronym S&C refers to:a. stock in business units b. strategic business unitc. standard business utiliationd. strategic barter unitse. samples by units

ANS: & TS: 1 !"#: 1F %&': (/)/ T*": Def T%: AA+S& Analytic, T&-" odel Strategy

/5. An S&C:a. competes with the same companies as the other S&Cs in the parent organiation b. shares the same mission with all the other S&Cs in the parent organiationc. controls its business independent of other S&Cs in the organiationd. usually benefits from the combined corporate raw materials purchasese. still has strategic planning performed back at corporate head;uarters

ANS: +S&Cs have separate business functions from one another and have their own mission statements0markets0 and planning.

TS: 1 !"#: 1F %&': (/)/ T*": Def T%: AA+S& Analytic, T&-" odel Strategy

/. After management agrees on a mission statement0 it must set obEectives. @hich of the following is N%T a characteristic of a good obEectivea. profitable b. realisticc. measurabled. time)specifice. consistent


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ANS: AIood obEectives are not necessarily stated in terms of profit.

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/F.A is defined as a statement of what is to be accomplished through marketing activities.a. mission statement b. business planc. marketing obEectived. goal)driven directivee. marketing criteria

ANS: + TS: 1 !"#: 1F %&': (/)$ T*": Def T%: AA+S& !eflective Thinking, T&-" odel Strategy

$(. @hen an organiation creates a mission statement that is too narrow0 results.a. marketing synergy b. marketing myopiac. directional marketingd. an internal threate. sustainable competitive advantage

ANS: &arketing myopia defines a business in terms of goods and services rather than in terms of benefitscustomers seek. See !eview 7earning %utcome /.

TS: 1 !"#: 1F %&': (/)/ T*": Def T%: AA+S& !eflective Thinking, T&-" odel roduct

$5. #or marketing obEectives to be realied0 they must meet all of the following criteria "H+"T:a. be consistent with organiation obEectives b. be measurablec. be attainabled. be challenginge. be set within a one)year time frame

ANS: "There is no one)year time frame restriction for marketing obEectives although specifying a particulartime frame makes an obEective more clear and precise.

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$. A is a formal study conducted by an organiation to ascertain its current status and capabilitiesand its future e4pectations.


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a. situation analysis b. marketing auditc. trend analysisd. strategic alternative selectione. competitive advantage audit

ANS: A TS: 1 !"#: 1= %&': (/)2 T*": Def T%: AA+S& Analytic, T&-" odel !esearch

$=. The S@%T acronym refers to a firmGs analysis of its:a. sales0 width of product mi40 observations0 and technology b. situations0 wealth0 organiational strengths0 and target marketsc. strengths0 weaknesses0 opportunities0 and threatsd. service levels0 willingness to spend0 organiational culture0 and total revenuese. strategies0 willingness to change0 obEectives0 and trends

ANS: + TS: 1 !"#: 1= %&': (/)2 T*": Def T%: AA+S& !eflective Thinking, T&-" odel Strategy

2$. is defined as the collection and interpretation of information about forces0 events0 andrelationships that may affect the organiation.a. arket sampling b. An internal auditc. %pportunity analysisd. "nvironmental scanninge. Stakeholder analysis

ANS: D TS: 1 !"#: 1= %&': (/)2 T*": Def T%: AA+S& !eflective Thinking, T&-" odel !esearch

81. show costs declining at a predictable rate as e4perience with a product increases.a. 7i;uidity growth curves b. "%M graphsc. &reakeven analysesd. "4perience curvese. Supply


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8. @hich of the following is a type of strategic alternative that matches products and marketsa. vertical integration b. product penetration

c. divestmentd. horiontal integratione. market penetration

ANS: " TS: 1 !"#: // %&': (/)8 T*": Def T%: AA+S& !eflective Thinking, T&-" odel Strategy

8F. is a strategy of increasing market share for present products in e4isting markets.a. arket penetration b. roduct developmentc. arket developmentd. Diversificatione. roduct penetration

ANS: A TS: 1 !"#: // %&': (/)8 T*": Def T%: AA+S& !eflective Thinking, T&-" odel Strategy

(. is a strategy that attracts new customers to e4isting products.a. roduct development b. arket developmentc. arket penetrationd. roduct penetratione. Diversification

ANS: & TS: 1 !"#: // %&': (/)8 T*": Def T%: AA+S& !eflective Thinking, T&-" odel Strategy

5. is a strategy that creates new products for present markets.a. roduct penetration b. arket penetrationc. roduct developmentd. arket developmente. Diversification

ANS: + TS: 1 !"#: // %&': (/)8 T*": Def T%: AA+S& !eflective Thinking, T&-" odel Strategy

8. is the strategy of increasing sales by introducing new products into new markets.a. roduct penetration b. roduct developmentc. arket penetrationd. arket developmente. Diversification

ANS: " TS: 1 !"#: // %&': (/)8 T*": Def T%: AA+S& Diversity, T&-" odel Strategy, T&-" odel 9nternational erspective


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1(/. A>n? describes and estimates the sie and sales potential of market segments of interest to thefirm and assesses key competitors in these market segments.a. marketing orientation b. environmental scan

c. marketing mi4 auditd. target market strategye. market opportunity analysis

ANS: " TS: 1 !"#: /2 %&': (/) T*": Def T%: AA+S& !eflective Thinking, T&-" odel Strategy

1(5. The is the uni;ue blend of product0 distribution0 promotion0 and pricing strategies designed to produce mutually satisfying e4changes with a target market.a. internal environmental mi4 b. marketing mi4

c. product mi4d. product linee. market portfolio

ANS: & TS: 1 !"#: /5 %&': (/)F T*": Def T%: AA+S& !eflective Thinking, T&-" odel Strategy

1(8. The starting point of any firm3s marketing mi4 is the:a. analysis of what production e;uipment is available and owned by the company b. design of the promotion campaign to be used for the productc. selection of the places through which the good or service will be soldd. determination of the product3s price0 enabling future revenues and budgets to be estimated

e. development of the good or service to be soldANS: "The product is the starting point for any marketing mi4. @ithout it0 pricing0 distribution0 and promotion are irrelevant. The production capacity can be changed to fit the proposed product.

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1(=. aking sure products are available when and where customers want them is the Eob of which elementof the marketing mi4a. advertising strategies

b. production strategiesc. product strategiesd. promotion strategiese. distribution strategies

ANS: "Distribution strategies make products available when and where customers want them.TS: 1 !"#: /5)/8 %&': (/)F T*": Def T%: AA+S& !eflective Thinking, T&-" odel Distribution, T&-" odel roduct


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Chapter !

MULTIPLE CHOICE

1.9ndividuals and organiations utiliing a global vision to effectively market goods and services across

national boundaries are engaged in:a. developing international selling schemes b. implementing standard international marketingc. implementing global marketing standardiationd. supplementing their foreign visione. practicing global marketing

ANS: " TS: 1 !"#: 2 %&': (2)1 T*": Def T%: AA+S& !eflective Thinking, T&-" odel 9nternational erspective, T&-" odel roduct

$. @hich of the following statements about global marketing is truea. arketing to target markets throughout the world has become an imperative for business. b. %ften a C.S. firm3s toughest domestic competition comes from foreign companies.c. arketing managers must develop a global vision not only to recognie and react to

international marketing opportunities but also to remain competitive at home.d. Adopting a global vision can be lucrative for a company0 and global marketing can offset

weak domestic performance.e. All of these statements about global marketing are true.

ANS: " TS: 1 !"#: 2 %&': (2)1 T*": +ompT%: AA+S& !eflective Thinking, T&-" odel 9nternational erspective

8. @hich of the following statements about multinational firms is truea. ultinationals typically do not change their methods of reaching their global markets if

they are successful with their initial strategy. b. ultinationals are defined as companies heavily engaged in e4porting and importing.c. All multinationals must enter the fourth stage of globaliation before they are fully

internationalied.d. ultinationals often develop their global businesses in stages.e. The five stages of globaliation closely mirror the five stages of the product life cycle.

ANS: Dultinationals can go through up to four stages in their ;uest to globalie their business. Ienerally0only high)tech firms ever reach the fourth stage. ultinationals are companies that heavily engage in

international trade0 beyond e4porting and importing.

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. A>n? is a company that is heavily engaged in global trade and moves its resources0 goods0services0 and skills across national boundaries.a. international facilitator b. global trader c. multinational corporationd. e4porting companye. international merchant


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ANS: + TS: 1 !"#: 2=)5( %&': (2)/ T*": Def T%: AA+S& !eflective Thinking, T&-" odel 9nternational erspective, T&-" odelDistribution

1(. @hich of the following describes a common criticism of multinational companiesa. the transference of the wrong kind of technology to a developing nation b. e4cessive employment informationc. countertradingd. the transference of labor)intensive technologye. dumping

ANS: ATypically0 the technology needed to run operations in developing nations is capital)intensive and thusdoes not substantially increase employment.

TS: 1 !"#: 5( %&': (2)/ T*": +omp

T%: AA+S& !eflective Thinking, T&-" odel 9nternational erspective

11. A company that is capital)intensive:a. has an altered fiscal strategy for overseas operations b. spends more on e;uipment than on labor c. makes better use of benchmarking than other types of businessd. creates employment monopoliese. must engage in countertrading due to restrictive foreign legislature

ANS: & TS: 1 !"#: 5( %&': (2)/ T*": Def T%: AA+S& !eflective Thinking, T&-" odel 9nternational erspective

1$. @ith a 0 a firm produces standardied products to be sold the same way all over the world.

a. traditional marketing strategy b. global marketing standardiation approachc. product e4tension approachd. culturally based marketing strategye. synergistic approach to marketing

ANS: & TS: 1 !"#: 5( %&': (2)/ T*": Def T%: AA+S& !eflective Thinking, T&-" odel 9nternational erspective, T&-" odel roduct

12. Ilobal marketing standardiation:a. is becoming less popular with the large multinationals b. encourages product0 packaging0 and advertising variations for each nation or local market

c. actually raises production costsd. presumes markets throughout the world are becoming more alikee. is more popular with consumer products than with industrial goods

ANS: D@ith a global marketing standardiation approach0 a firm produces standardied products to be soldthe same way worldwide. This approach assumes all customers have the same needs and wants.

TS: 1 !"#: 5( %&': (2)/ T*": +ompT%: AA+S& !eflective Thinking, T&-" odel 9nternational erspective


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18. A business thinking of e4panding into global markets needs to e4amine all of the following e4ternalenvironments "H+"T:a. culture b. political structure and actionsc. its marketing mi4

d. natural resourcese. demographic makeup

ANS: +The marketing mi4 is the keystone of a company3s internal environment.

TS: 1 !"#: 5( %&': (2)$ T*": +ompT%: AA+S& !eflective Thinking, T&-" odel 9nternational erspective, T&-" odel Strategy


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1.+entral to any society is a common set of values shared by its citiens that determines what is sociallyacceptable. arketers refer to these values collectively as a country3s:a. ethical system b. culturec. ethnocentricity

d. national personalitye. socialiation

ANS: & TS: 1 !"#: 5()51 %&': (2)$ T*": Def T%: AA+S& Diversity, T&-" odel +ustomer

/2. @hich of the following is an important cultural factor that should be considered by global marketersa. competitive synergy b. languagec. natural resourcesd. technology sensitivitye. level of economic development

ANS: & TS: 1 !"#: 51 %&': (2)$ T*": +ompT%: AA+S& Diversity, T&-" odel Strategy

/8. @hich of the following statements about the political environment is truea. A recession is part of the political environment. b. A country is either socialistic or capitalistic0 but never both.c. The countries with the least across)the)board regulations and political structures foster the

strongest economies.d. The "uropean Cnion is purely an economic arrangement and has no political impact on

marketing.

e. All of these statements about the political environment are true.ANS: +!ecession is an economic factor. +ountries are a combination of socialism and capitalism. The"uropean Cnion is a means for the member nations to pursue an economic0 monetary0 and politicalunion.

TS: 1 !"#: 51)5/ %&': (2)$ T*": +ompT%: AA+S& !eflective Thinking, T&-" odel Strategy

$1. A ta4 levied on the goods entering a country is called a>n?:a. license

b. ;uotac. boycottd. e4change controle. tariff

ANS: " TS: 1 !"#: 5/ %&': (2)$ T*": Def T%: AA+S& !eflective Thinking, T&-" odel ricing, T&-" odel roduct

$$. A>n? is a limit on the amount of a specific product that can enter a country.a. ;uota b. tariff


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c. boycottd. e4change controle. transfer limit

ANS: A TS: 1 !"#: 5/ %&': (2)$ T*": Def T%: AA+S& !eflective Thinking, T&-" odel roduct

$8. An e4clusion of all products from certain countries or companies by a government or group is calleda>n?:a. e4propriation b. ;uotac. tariff d. e4change controle. boycott

ANS: " TS: 1 !"#: 5/ %&': (2)$ T*": Def T%: AA+S& !eflective Thinking, T&-" odel roduct

$=. A>n? is a law that compels a company earning foreign currency from its e4ports to sell it to acentral bank rather than sending the money out of the country.a. tariff b. ;uotac. fiscal prere;uisited. e4change controle. transfer barrier

ANS: D TS: 1 !"#: 5/ %&': (2)$ T*": Def T%: AA+S& !eflective Thinking, T&-" odel ricing

2(. are trade alliances in which several countries agree to work together to form a common tradearea that enhances trade opportunities among those countries.a. &oycotts b. !egional unificationsc. arket groupingsd. #ree trade nationse. "4propriation members

ANS: + TS: 1 !"#: 5/ %&': (2)$ T*": Def T%: AA+S& !eflective Thinking, T&-" odel Strategy

21. Negotiations >such as IATT or the Cruguay !ound? between countries that are made to stimulate

global e4change and remove barriers are called agreements.a. trade b. Eoint venturec. +!d. e4changee. licensing

ANS: A TS: 1 !"#: 5/ %&': (2)$ T*": Def T%: AA+S& !eflective Thinking, T&-" odel Strategy

2/. is a trade agreement that includes Argentina0 &olivia0 &rail0 +hile0 +olumbia0 "cuador0araguay0 eru0 and Cruguay. This agreement eliminated the tariffs among these trading partners.


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a. NA#TA b. aastrichtc. @T%d. IATTe. ercosur

ANS: " TS: 1 !"#: 5/ %&': (2)$ T*": Def T%: AA+S& !eflective Thinking, T&-" odel Strategy

2$. The latest round of @orld Trade %rganiation >@T%? talks has been contentious. A maEor goal of this is to bolster the developing economies of Africa0 Asia0 and 7atin America where up to two)thirds of the population works in agriculture.a. ercosur covenant b. +A#TA Alliancec. Doha !oundd. Cruguay !ounde. @T% !ound

ANS: + TS: 1 !"#: 5/)5$ %&': (2)$ T*": Def T%: AA+S& !eflective Thinking, T&-" odel 9nternational erspective

22. The of trade negotiations created the 0 which replaces IATT. This trade agreementdramatically lowers trade barriers worldwide.a. Cruguay !ound6 @orld Trade %rganiation b. Doha !ound6 "uropean Cnionc. Doha !ound6 NA#TAd. araguay !ound6 South American #ree Trade Agreemente. ercosur6 "uropean Cnion

ANS: AThe Cruguay !ound created the @T%.

TS: 1 !"#: 5$ %&': (2)$ T*": Def T%: AA+S& !eflective Thinking, T&-" odel Strategy

25. The is the most ambitious global trade agreement ever negotiated6 the agreement has reducedtariffs by one)third worldwide.a. Cruguay !ound b. ercosur c. IATTd. NA#TAe. aastricht Treaty

ANS: A TS: 1 !"#: 5/)5$ %&': (2)$ T*": Def T%: AA+S& !eflective Thinking, T&-" odel Strategy

28. The North American #ree Trade Agreement >NA#TA? did N%T:a. create the world3s largest free)trade one including +anada0 the Cnited States0 and e4ico b. substantially reduce economic growth in e4icoc. allow C.S. and +anadian financial)services companies to own subsidiaries in e4icod. remove many tariffs and duties so that e4ico0 +anada0 and the Cnited States can trade

more freelye. e4pand opportunities for C.S. businesses in e4ico

ANS: &


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%ver the years0 e4ico has made economic gains due to NA#TA.

TS: 1 !"#: 5$ %&': (2)$ T*": +ompT%: AA+S& !eflective Thinking, T&-" odel Distribution

2F. The goal of the +entral America #ree Trade Agreement >+A#TA? is to:a. create free)trade agreements between the Cnited States and other industrialied nations b. eliminate all protectionismc. raise prosperity levels in all industrialiing nationsd. establish a free trade agreement between the Cnited States and certain 7atin American

countriese. make sure all nations achieve the economic and technological development of a takeover

economy or better

ANS: D TS: 1 !"#: 5$ %&': (2)$ T*": Def T%: AA+S& !eflective Thinking, T&-" odel Strategy


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2=. @hich of the following statements about the "uropean Cnion >"C? is truea. The "C creates a single "uroproduct for a generic "uroconsumer. b. The "C removes all internal trade barriers and standardies regulations in "uropean

countries for easier trade.

c. The "C can correctly be called the BCnited States of "uropeB because all "uropean votershave agreed to these changes.d. The e4istence of the "C eliminates protectionist movements by Cnited "urope against the

'apanese and the Cnited States.

e. None of these statements about the "C is true.

ANS: "&ecause of diverse languages and cultures0 no BCnited States of "uropeB or a generic "uroconsumerresults from Cnited "urope. There e4ists the possibility of a protectionist movement and increasedcompetition. 9t does not eliminate all trade barriers.

TS: 1 !"#: 52 %&': (2)$ T*": +omp

T%: AA+S& !eflective Thinking, T&-" odel Strategy

51. A multinational company that makes a labor)intensive product would be interested in the makeup of countries. #actors such as median age0 gender0 and literacy rates would determine thesuccess of its global e4pansion.a. demographic b. lifestylec. naturald. culturale. economic

ANS: ADemographics include age and educational levels as well as ethnicity and gender.

TS: 1 !"#: 52)55 %&': (2)$ T*": AppT%: AA+S& !eflective Thinking, T&-" odel 9nternational erspective


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52. Jast differences in natural resources create all of the following "H+"T:a. potential for military intervention b. shifts in wealth between nationsc. inflation and recession

d. global dependenciese. e4port opportunities for countries with no natural resources

ANS: "@hile differences do create shifts in wealth0 dependencies0 inflation0 recession0 and the potential forconflict0 they only hinder opportunities for the countries that do not have resources.

TS: 1 !"#: 55 %&': (2)$ T*": +ompT%: AA+S& !eflective Thinking, T&-" odel Strategy

55. @hich method of entering the global marketplace would be 7"AST riskya. e4porting b. licensing

c. contract manufacturingd. Eoint venturese. direct investment

ANS: ASee "4hibit 2.1.

TS: 1 !"#: 55)58 %&': (2)2 T*": +ompT%: AA+S& !eflective Thinking, T&-" odel Strategy

8$. A>n? is a global intermediary that operates primarily in agriculture and raw materials by

bringing the buyer and seller together.a. buyer for e4port b. e4port agentc. license agentd. import agente. e4port broker

ANS: " TS: 1 !"#: 55 %&': (2)2 T*": Def T%: AA+S& !eflective Thinking, T&-" odel Strategy

82. A cooperative of egg producers believes a profitable market for eggs e4ists overseas where people arenot as concerned about cholesterol. 9f the cooperative decides to e4port0 it will most likely use a>n?:a. commission merchant b. drop shipper c. e4port broker d. import agente. e4port agent

ANS: +"4port brokers typically handle agriculture and raw materials.

TS: 1 !"#: 58 %&': (2)2 T*": AppT%: AA+S& Analytic, T&-" odel roduct


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85. are foreign sales agents)distributors who live in a foreign country and represent a domesticcompany in sales situations. They perform the same functions as domestic manufacturers3 agents whohelp with financing and shipping.a. "4port agents b. "4port brokers

c. 9mport broker d. &uyers for e4porte. 7icensing agents

ANS: A TS: 1 !"#: 58 %&': (2)2 T*": Def T%: AA+S& !eflective Thinking, T&-" odel Strategy

88. The is an intermediary in the global market who assumes all risks and sells globally for its ownaccount. The domestic manufacturer usually treats it like a domestic customer.a. buyer for e4port b. e4port agentc. Eoint venturer d. contract manufacturer

e. market group

ANS: A TS: 1 !"#: 55 %&': (2)2 T*": Def T%: AA+S& !eflective Thinking, T&-" odel +ustomer


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Chapter "MULTIPLE CHOICE

1. A>n? is an interactive0 fle4ible information system that enables managers to obtain andmanipulate information as they are making decisions.

a. e4pert system b. marketing information systemc. artificial intelligence systemd. marketing decision support systeme. database marketing system

ANS: D TS: 1 !"#: 11$ %&': (F)1 T*": Def T%: AA+S& Technology, T&-" odel Strategy

/. is the creation of a large computeried file of customers3 and potential customers3 names0 profiles0 and purchase patterns.a. "lectronic targeting b. Sampling procedure specification

c. Database marketingd. +ompetitive data mininge. +onsumer behavior marketing

ANS: + TS: 1 !"#: 11$ %&': (F)1 T*": Def T%: AA+S& Technology, T&-" odel Strategy

$. A true marketing decision support systems >DSS? should be:a. fle4ible b. discovery)orientedc. interactived. accessible

e. All of the choices describe true marketing decision support systems.

ANS: " TS: 1 !"#: 11$ %&': (F)1 T*": +ompT%: AA+S& Technology, T&-" odel Strategy

2. According to the te4t0 a true marketing decision support system should be:a. reactive b. customer)orientedc. interactived. rigorouse. descriptive

ANS: +

A true DSS should be fle4ible0 interactive0 discovery)oriented0 and accessible.

TS: 1 !"#: 11$ %&': (F)1 T*": Def T%: AA+S& Technology, T&-" odel Strategy

5. To help understand why attendance at the teamGs games was so poor0 the Atlanta #alcons usedmarketing research to gather factual information. The organiation used in)game surveys and end)of)season surveys of ticket holders. The gathering of factual statements is an e4ample of marketingresearch in its role.a. historical b. descriptive


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c. predictived. normativee. obEective

ANS: &The data were gathered and presented as factual statements.

TS: 1 !"#: 112 %&': (F)/ T*": AppT%: AA+S& !eflective Thinking, T&-" odel !esearch

8. Through marketing research0 the &oston Symphony %rchestra >&S%? learned it has an older marketand is not attracting younger concertgoers. 9t ne4t conducted marketing research to determine if anintegrated advertising campaign targeted to the younger market would be successful. 9n its second useof research0 &S% employed marketing research.a. historical b. descriptivec. predictived. normative

e. obEective

ANS: +The &S% used previously gathered data to predict the success of an advertising campaign.


. is the process of planning0 collecting0 and analying data relevant to marketing decisionmaking. The results of this analysis are then communicated to management.a. Data collection b. Artificial intelligence

c. Decision supportd. arketing researche. Single)source research

ANS: D TS: 1 !"#: 112 %&': (F)/ T*": +ompT%: AA+S& !eflective Thinking, T&-" odel !esearch

F. A bowling alley operator could use to determine why customers do not seem to like his bowlingalley3s new location.a. transactional marketing b. public relationsc. an "D9 systemd. market synergy

e. marketing research

ANS: "arketing research can be used by management to trace problems and their causes.


=. Soon after the Karriet Tubman useum e4panded its hours and began charging a small fee to pay forthe e4tra help needed to keep it open longer0 attendance decreased. To determine why this decrease inattendance occurred0 the museum staff could rely on:a. a production audit


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b. database marketingc. marketing researchd. an internal marketing audite. secondary data

ANS: +

arketing research could be used to find out why attendance declined.


1(. The publisher of a +anadian business magaine wanted to make several maEor changes in themagaine3s content and format. To determine what changes would be supported by its subscribers andwhat changes would not be welcomed0 the publisher should engage in:a. advertising b. database marketingc. marketing researchd. a data retrieval system

e. secondary data

ANS: +arketing research would be appropriate to use to determine how the publisher could provide greatercustomer satisfaction.


11. arketing managers can use marketing research to:a. improve the ;uality of their decision making b. find out why a marketing plan failed

c. learn how to more efficiently retain customersd. understand the ever)changing marketplacee. do all of these

ANS: " TS: 1 !"#: 112)118 %&': (F)/ , (F)$ T*": +ompT%: AA+S& !eflective Thinking, T&-" odel !esearch

1/. arketing managers would typically use marketing research to:a. eliminate any guesswork in decision making b. implement a sales promotionc. handle an individual customer3s complaintd. determine why a new product failede. do all of these

ANS: Darketing research is used to determine why marketing plans failed.

TS: 1 !"#: 112 %&': (F)/ T*": +ompT%: AA+S& !eflective Thinking, T&-" odel !esearch

1$. arketing research has three functional roles. These roles are:a. normative0 descriptive0 and e4planatory b. predictive0 normative0 and persuasivec. descriptive0 diagnostic0 and predictived. fle4ible0 interactive0 and discovery)oriented


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e. descriptive0 e4planatory0 and predictive

ANS: + TS: 1 !"#: 112 %&': (F)/ T*": Def T%: AA+S& !eflective Thinking, T&-" odel !esearch

12. A manufacturer of an all)natural fruit and veggie bar targeted to people who want nutritious snacks has

asked for marketing research to e4plain the reasons for the recent failure of its Apple)&roccoli bar.This type of research is described as:a. descriptive b. predictivec. diagnosticd. normativee. historical

ANS: +%ne of the roles of marketing research is to be diagnostic and to e4plain what happened.

TS: 1 !"#: 112 %&': (F)/ T*": App

T%: AA+S& !eflective Thinking, T&-" odel !esearch

15. Jolkswagen developed an 1F)month)long proEect to gain a better understanding of the Americanculture so it could develop cars more appealing to this market. The research proEect was calledoonraker. oonraker was intended to play a>n? role in Jolkswagen3s marketing research.a. diagnostic b. descriptivec. predictived. heuristicale. demonstrative

ANS: &%ne of the roles of marketing research is the gathering of descriptive data0 which includes reportingconsumersG attitude toward products.

TS: 1 !"#: 112 %&': (F)/ T*": AppT%: AA+S& !eflective Thinking, T&-" odel !esearch, T&-" odel +ustomer

18. The first step in the marketing research process is to:a. specify the sampling plan b. collect the datac. analye the marketplaced. plan the research designe. identify and formulate the problem


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ANS: +To respond to a symptom0 one should find out what the underlying problem is. See "4hibit F.1.

TS: 1 !"#: 112)115 %&': (F)$ T*": AppT%: AA+S& !eflective Thinking, T&-" odel !esearch

1F. A small confectionary company has noticed a /( percent decrease in the sale of its milk chocolatecandy over the last three years. The companyGs owner wants to determine why the decline has occurredand how to reverse the trend. %nce the owner has identified the problem as a consumer perception thatdark chocolate provides more health benefits0 its ne4t step in the marketing research process should beto:a. collect the data b. recognie the marketing problemc. analye the marketplaced. plan the research designe. specify the sampling plan

ANS: D

See "4hibit F.1.

TS: 1 !"#: 118 %&': (F)$ T*": AppT%: AA+S& !eflective Thinking, T&-" odel !esearch

1=. Jolkswagen lost more than 1 billion in its C.S. operations in two recent years. 9n which step of themarketing research proEect0 would the Jolkswagen engineers >who were raised in the no)nonsensecockpits of Ierman cars? realie the problem was that they were not designing cars for Americans whouse their cars like a second officea. the research design step b. the data collection stepc. the data analysis step

d. the problem formulation stepe. none of the choices

ANS: DDefining >or in this case realiing? the problem is the first step of the marketing research process. Theresearch will not produce usable results if this step is not done correctly. See "4hibit F.1.

TS: 1 !"#: 115 %&': (F)$ T*": AppT%: AA+S& !eflective Thinking, T&-" odel !esearch, T&-" odel +ustomer

/(. !esearch by organ Stanley revealed that / percent of the C.S. residents are willing to try flavoredcolas. Since the cola industry is stagnant in most areas of the country0 this is important information.

arketing research on how best to use this information will begin with the:a. collection of the data b. specification of the sampling planc. implementation of employee empowermentd. research designe. recognition of the marketing opportunity

ANS: "arketing research can hone in and clarify where the best opportunities lie. See "4hibit F.1.

TS: 1 !"#: 112 , 115 %&': (F)$ T*": AppT%: AA+S& !eflective Thinking, T&-" odel !esearch


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/1. The marketing research problem:a. is information oriented b. involves determining what resources will be used in research effortsc. is action driven

d. does not rely on managerial e4periencee. is accurately described by none of these choices

ANS: A TS: 1 !"#: 112 %&': (F)$ T*": Def T%: AA+S& !eflective Thinking, T&-" odel !esearch

//. 9n contrast to marketing research problems0 management decision problems are:a. action oriented b. pervasivec. narrower in scoped. synergistice. information oriented

ANS: A TS: 1 !"#: 115 %&': (F)$ T*": Def T%: AA+S& !eflective Thinking, T&-" odel !esearch

/$. anagers must combine specific pieces of information needed to identify the marketing research problem. Their is to provide insightful decision)making information.a. company)correlated goal b. autonomous task c. dichotomous goald. marketing research obEectivee. field service obEective

ANS: D TS: 1 !"#: 112 , 115 %&': (F)$ T*": Def T%: AA+S& !eflective Thinking, T&-" odel !esearch

/2. ost roperties is a company that manages apartments in various communities. 9t is concerned with aglut of apartments in Atlanta0 %rlando0 and Dallas 9ts market researcher begins by e4amining the rentalmarkets in the Southeast0 the history of apartment buildings0 local economies0 competitive rents0 andownership))all information that was on hand and did not re;uire any new research to locate. Themarket researcher looked at:a. a closed study b. secondary datac. primary datad. a statistical analysise. priority databases

ANS: & TS: 1 !"#: 115 %&': (F)$ T*": AppT%: AA+S& !eflective Thinking, T&-" odel !esearch

/5. Data previously collected for purposes other than the one at hand are an important source ofinformation as the researcher defines the problem. These data are called data.a. single)source b. secondaryc. primaryd. consensuale. convenience

ANS: & TS: 1 !"#: 115 %&': (F)$ T*": Def


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T%: AA+S& !eflective Thinking, T&-" odel !esearch

/8. arket research firms0 commercial publications0 and government data can be used as sources of:a. secondary data b. consensual information

c. primary datad. artificial intelligencee. marketing audits

ANS: AData previously collected for purposes other than the one at hand are an important source ofinformation known as secondary data.

TS: 1 !"#: 115 %&': (F)$ T*": +ompT%: AA+S& !eflective Thinking, T&-" odel !esearch

/. So far this season0 the average combined attendance for the @ashington Nationals and &altimore%rioles ranks fourth of the five maEor league markets with more than one team. !esearch done by the

Washington Post shows attendance in the &altimore)@ashington region trails 7os Angeles0 New *orkand San #rancisco)%akland but is slightly ahead of +hicago. aEor 7eague &aseball would be using data if it used this research to determine how competition affects attendance figures.a. convenience b. primaryc. dichotomousd. secondarye. observation

ANS: DData previously collected for purposes other than the one at hand are an important source ofinformation known as secondary data.


/F. A few years ago0 TNT cable channel began using the slogan BTNT knows dramaB to reflect a change inits programming focus. Now it wants to determine how its viewership has changed since it changed itsfocus. 9t has decided to use secondary data to determine if its viewers3 demographics have changed. A potential disadvantage of this research plan is:a. the difficulty of holding certain variables constant while varying one factor of interest b. the high cost of collecting secondary datac. the length of time it takes to collect secondary datad. interviewer bias during the collection process

e. the information not fitting the needs of the research problemANS: "Secondary data have been previously collected for some other purpose and may not fit the currentresearch problem.

TS: 1 !"#: 115 %&': (F)$ T*": AppT%: AA+S& !eflective Thinking, T&-" odel !esearch, T&-" odel arketing lan

/=. @hen assessing the ;uality of secondary data0 it is:a. not necessary to know why the data were collected in the first place b. important to be able to have easy access to the data


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c. important to know the purpose for which the data were originally collectedd. not important to know when the data were collectede. imperative to use the same methods and procedures when primary data are collected

ANS: +To assess the ;uality of the data0 it is important to know when0 where0 why0 and how the data were

originally collected.

TS: 1 !"#: 115 %&': (F)$ T*": +ompT%: AA+S& !eflective Thinking, T&-" odel !esearch

$(. !esearch done by organ Stanley revealed that / percent of the C.S. residents are willing to tryflavored colas. The research also showed which flavors were most desired. +ola producers using thisinformation provided to them by organ Stanley would be using data.a. primary b. secondaryc. dichotomousd. observation

e. convenience

ANS: &9t is secondary data0 which have been previously collected for some other purpose and may not fit thecurrent research problem.


$1. A>n? is a company that ac;uires0 catalogs0 reformats0 segments0 and resells reports already published by marketing research firms.a. information vendor

b. subEect directoryc. market research aggregator d. search enginee. 9nternet directory

ANS: + TS: 1 !"#: 118 %&': (F)$ T*": Def T%: AA+S& Technology, T&-" odel %nline


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ANS: " TS: 1 !"#: 118)11 %&': (F)$ T*": +ompT%: AA+S& !eflective Thinking, T&-" odel !esearch

$2. ulte Komes0 a national home builder0 needs to control costs. !esearch done by ulte Komesdetermined that F( percent of its homebuyers selected the same countertops0 floors0 carpets0 and

toilets. ulte Komes used these data to cut its costs by reducing the variety of options offeredwithout having any effect on the maEority of its buyers.a. primary b. secondaryc. dichotomousd. conveniencee. ethnographic

ANS: Arimary data are information that is gathered for the first time for solving a particular problem.

TS: 1 !"#: 118 %&': (F)$ T*": App

T%: AA+S& !eflective Thinking, T&-" odel !esearch, T&-" odel +ustomer

$5. An engineer of Jolkswagen America spent three and a half hours on a Ireyhound bus to e4periencethe vast distances Americans travel in their automobiles and to try to understand why Americans treattheir automobiles as rolling e4tensions of their living rooms. @hat kind of data did the engineercollecta. heuristic b. primaryc. cohesived. randome. secondary

ANS: &rimary data are information that is gathered for the first time for s

Documents

Section 1 Pool Items