CHAPTER 1
CUSTOMER RELATIONSHIPS AND VALUE
1. Which of the following is an example of an ultimate consumer?
a. A woman buying a new car
b. A preschooler eating peanut butter
c. A retired steelworker taking a cruise
d. A doctor buying a piano
e. All of the above
ANSWER: E
2. Which of the following represents a prospective customer in the marketing process?
a. Alan, a bachelor who wants to buy a new computer
b. Michelle, a homemaker and mother of three shopping for groceries
c. IBM, which purchases office supplies
d. Kroger Foods, which works with many vendors to stock the shelves of their stores
e. All of the above
ANSWER: E
3. Which of the following benefits from effective marketing?
a.
b.
c.
d.
IBM, which purchases a large volume of office supplies
Juan, who likes to shop around for the best price in electronic equipment
The people of the United States, who can choose from a large selection of retailers
McDonalds, which must constantly make menu and price changes to keep up with its
competition
e. All of the above benefit from effective marketing
ANSWER: E
4. The first task of marketing is to discover consumer:
a. diversity.
b. ability to pay.
c. objectives.
d. needs.
e. synergy.
ANSWER: D
5. Which of the following statements best defines needs and wants?
a.
Needs occur when a person feels physiologically deprived of something, and wants are
determined by a person's knowledge, culture, or personality.
b. Wants are a subset of needs.
c. Wants occur when a person feels physiologically deprived of something, and needs are
determined by a person's knowledge, culture, or personality.
d. Needs affect marketing, but wants do not.
e. By definition, wants are more socially responsible than needs.
ANSWER: A
6. A television advertisement shows several teenagers searching through the refrigerator for
something to quench their thirst. The refrigerator offers the youngsters many alternatives—soft
drinks, fruit drinks, sport drinks and bottles of Sunny Delight drink. The ad, which shows the
teens happily selecting Sunny Delight over all the other product offerings, appeals to the
consumers' __________ for liquid and attempts to shape consumers' __________ for the
advertised product.
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a. wants; needs
b. wants; preferences
c. preferences; needs
d. needs; wants
e. needs; preferences
ANSWER: D
7. Which of the following groups would utilize marketing?
a. professionals such as doctors or lawyers
b. major corporations
c. nonprofit organizations
d. politicians
e. all of the above
ANSWER: E
8. The market for cosmetic dentistry (which can cost $15,000 for straightening and whitening) is:
a. children with crooked teeth.
b. all former smokers.
c. any adult who has the time, the money, and the desire to undergo the procedures.
d. anyone that has ever had any plastic surgery.
e. adults who rely on making a good first impression for job success.
ANSWER: C
9. The five major environmental factors in marketing are:
a. air, water, soil, mineral, and gas.
b. consumer, retailer, manufacturer, organization, and society as a whole.
c. product, price, promotion, place, and process.
d. social, technological, economic, competitive, and regulatory.
e. natural resources, weather, social awareness, economic factors, and regulation.
ANSWER: D
10. What are the four Ps of the marketing mix?
a.
b.
c.
d.
e.
Product, price, promotion, place
Product, price, popularity, profit
Product, principle, promotion, production
Principle, production, promotion, possibility
Principle, price, production, place
ANSWER: A
11. Which of the following situations would impact the marketing strategies of American Airlines?
a. Major price cuts of airfares offered by other airlines
b. New laws regulating the size and weight of carry-on baggage
c. Consumers preferring high quality coffee, such as Starbucks
d. Unemployment rates increasing by 5%
e. All of the above situations would impact their marketing strategies
ANSWER: E
12. Which of the following environmental factors could have caused Toyota to decide to build a
manufacturing plant in the United States instead of continuing to export their cars from Japan?
2
a.
b.
c.
d.
A growing trend in the United States to "Buy American"
The success of Honda in manufacturing Accords in Ohio
A decline in the value of the U.S. dollar relative to the Japanese yen
Increased pressure from U.S. auto makers on Washington for more restrictive quotas on
Japanese car imports
e. All of the above
ANSWER: E
13. Which of the following benefits from effective marketing?
a.
b.
c.
d.
IBM, which purchases a large volume of office supplies
Juan, who likes to shop around for the best price in electronic equipment
The people of the United States, who can choose from a large selection of retailers
McDonalds, which must constantly make menu and price changes to keep up with its
competition
e. All of the above benefit from effective marketing
ANSWER: E
CHAPTER 2
LINKING MARKETING AND CORPORATE STRATEGIES
1. Which statement describes the most significant difference between a business firm and a
nonprofit organization?
a.
b.
c.
d.
Business firms operate with larger budgets.
Not-for-profit organizations do not carry on economic activities and business firms do.
Not-for-profit organizations are publicly owned and business firms are not.
Both serve customers, but business firms seek a profit while not-for-profit organizations do
not.
e. All of the above are accurate statements.
ANSWER: D
2. Marketing activities tie into what organizational levels?
a. Corporate
b. Business unit
c. Functional
d. Departmental
e. All of the above
ANSWER: E
3. Which of the following represents an effective statement of a company’s business?
a. Toyota is in the automobile business.
b. Ben and Jerry’s is in the business of ice cream treats.
c. Nordstrom is a fashion apparel leader.
d. Medtronic is in the medical device business.
e. Medtronic is in the business of alleviating pain, restoring health, and extending life.
ANSWER: E
4. By understanding its business, an organization can take steps to define its __________, a
statement of the organization's scope. This statement often identifies its customers, markets,
products, technology, and values.
a.
benefit statement
3
b. business portfolio
c. functional philosophy
d. mission
e. corporate code
ANSWER: D
5. Which of the following statements about organizational goals is true?
a. The terms goal and objective can be used interchangeably.
b. In an organization, goals exist at the corporate, business, and functional levels.
c. All lower-level goals should contribute to the achievement of higher-level goals.
d. Goals convert an organization's mission into targeted levels of performance to be achieved.
e. All of the above statements accurately describe organizational goals.
ANSWER: E
6. Classic economic theory assumes a firm seeks to maximize its long-run __________, achieving
as high a financial return on its investment as possible.
a. profit
b. sales revenue
c. market share
d. quality
e. employee welfare
ANSWER: A
7. The ratio of the sales revenue of the firm to the total sales revenue of all firms in the industry,
including the firm itself, is known as:
a. sales quality.
b. market share.
c. industry potential.
d. contribution margin.
e. marginal revenue.
ANSWER: B
8. Which of the following statements about a competitive advantage is true?
a. The only way to create a competitive advantage is by improving quality.
b. To be successful, a competitive advantage does not have to be unique.
c. An innovation can be a source of a competitive advantage.
d. A company must ignore costs when establishing a competitive advantage.
e. All of the above statements about quality as a competitive advantage are true.
ANSWER: C
9. Solarcom is a 25-year-old information technology company that owns several subsidiaries. One
of its subsidiaries is Atlantix Global Systems, which is one of the leading wholesalers for
refurbished computer equipment, an industry that is growing worldwide. According to the BCG
portfolio matrix, Atlantix Global would most likely be classified as a:
a. dog.
b. cash cow.
c. question mark.
d. star.
e. bonanza.
ANSWER: D
10. __________ are SBUs that typically generate large amounts of cash, far more than they can
invest profitably in their own product line.
4
a. Dogs
b. Cash cows
c. Question marks
d. Stars
e. Bonanzas
ANSWER: B
11. __________ are SBUs with a low share of low-growth markets—they may generate enough cash
to sustain themselves, but they do not hold the promise of ever becoming real winners for the
firm.
a. Cash cows
b. Stars
c. Question marks
d. Dogs
e. Problem children
ANSWER: D
12. When a company invests more money into an SBU it is trying to __________ its share.
a. build
b. harvest
c. diversify
d. divest
e. hold
ANSWER: A
13. Which market-product strategy requires no change in the product line, but an increase in sales to
existing customers through innovative pricing, promotion, or distribution strategies?
a. Market development
b. Market penetration
c. Product development
d. Diversification
e. Product divestment
ANSWER: B
14. How could McDonalds’s engage in a market penetration strategy?
a.
b.
c.
d.
By opening the first McDonald's in China
By developing a line of McDonald's toys to be sold through Toys R Us stores
By adding a line of new deli sandwiches to the menu of existing McDonald's stores
By running a promotion based on the Monopoly game, whereby customers have a chance to
win prizes with each purchase
e. By removing slow-moving products from its menus
ANSWER: D
15. Mall of America hopes to increase traffic in the shopping center by offering free lunches to
children in Mall restaurants on Tuesdays. This promotion is directed to families who currently do
not shop at the mall. This is an example of the implementation of a __________ strategy.
a. market penetration
b. market development
c. product development
d. diversification
e. market divestiture
ANSWER: B
16. Matsura Industries distributes candy and coffee through its vending machines in Tokyo. The
5
addition of sandwich vending machines to the same market is an example of a __________
strategy.
a. market penetration
b. market development
c. product development
d. diversification
e. divestment
ANSWER: C
17. Which market-product strategy requires a company to both develop new products and seek out
new markets?
a. Market penetration
b. Market development
c. Product development
d. Diversification
e. Divestment
ANSWER: D
18. Which market-product strategies do NOT require product changes?
a. Market development and market penetration
b. Market development and diversification
c. Market penetration and product development
d. Diversification and market penetration
e. Diversification and product development
ANSWER: A
19. An effective technique a firm can use to appraise in detail its internal strengths and weaknesses
and external opportunities and threats is called:
a. SWOT analysis.
b. strategic management.
c. market segmentation.
d. market programming.
e. marginal analysis.
ANSWER: A
20. In the early months of 2002, strikes throughout Nigeria almost led to the country's financial ruin.
For a company trying to do business in Nigeria during those months, the strikes would be an
example of a(n):
a.
b.
c.
d.
e.
strength.
weakness.
threat.
opportunity.
challenge.
ANSWER: C
21. Xbox video game consoles were developed through a joint venture between Microsoft and the WWF
(World Wrestling Federation) and first marketed in the fall of 2001. Complaints about the video
game began immediately after its introduction. These complaints ranged from missing parts to
incorrect programming. This example suggests that the manufacturer of Xbox video game
consoles should adopt __________ goals.
6
a. profit
b. sales revenue
c. market share
d. quality
e. employee welfare
ANSWER: D
22. Pfizer Pharmaceuticals is offering low-income senior citizens some of its most widely used
prescriptions for $15 each a month—much below the regular costs for these drugs. This program
to better serve senior citizens likely grew out of a __________ goal.
a. profit
b. unit sales
c. sales revenue
d. market share
e. social responsibility
ANSWER: E.
23. An example of a private organization that does not seek profit is:
a. the Food and Drug Administration.
b. FedEx.
c. the Baltimore Ravens.
d. the Atlanta Symphony Orchestra.
e. all of the above.
ANSWER: D
24. For several years, advertisements for Arm & Hammer baking soda have prompted consumers to place
an opened box of the product in the refrigerator to lessen food odor and to replace that box
monthly. The same ads advise customers to pour the used box down their kitchen sinks to
freshen drains. Arm & Hammer employed a __________ strategy in its attempt to sell more
baking soda.
a. market penetration
b. market development
c. product development
d. diversification
e. product penetration
ANSWER: A
25. __________ would be used to group consumers for soda on the basis of whether they wanted sugarfree and caffeine-free, caffeine-free but with sugar, or regular with sugar and caffeine.
a. Aggregation marketing
b. Market segmentation
c. Market clustering
d. Profiling
e. Mass marketing
ANSWER: B
CHAPTER 3
7
SCANNING THE MARKETING ENVIRONMENT
1. A marketing manager for United Way reads in a business journal that despite the Internet and
television, Americans are actively engaged in their communities. Fifty-four percent have
performed volunteer work and 78 percent have donated money to charities. She asks research
and development personnel to identify possible new ad campaigns that will encourage this high
level of community-connectedness to continue. This ad campaign change is the result of the
managerial activity called:
a. ecological/technological forecasting.
b. environmental scanning.
c. macroeconomic analysis.
d. strategic planning.
e. futuristic marketing.
ANSWER: B
2. You are the director of marketing for Littleton Hospital. You are doing an environmental scan to
help create a five-year marketing plan for the hospital. Which of the following environmental
trends should you consider the most important?
a.
The number of people in your geographic area who are 50 years or older will increase by 23
percent during the next five years.
b. By the year 2007, baby boomers will control more than 50 percent of all consumer
expenditures.
c. The community has seen a rise in dual-income couples who bring with them larger
disposable incomes.
d. By the year 2010, robotics will play a major role in American society.
e. By 2005, Latinos will be the largest U.S. minority.
ANSWER: A
3. In the 1990s, the major geographical shift in the U.S. population was to:
a. eastern urban areas.
b. the west coast.
c. western and Sun Belt states.
d. midwestern states.
e. the northeast seaboard.
ANSWER: C
4. In 2001, the number of people who attended music concerts, plays, and other live entertainment
declined significantly, because many people did not believe they had the __________ income to
enjoy such events.
a. gross
b. disposable
c. proprietary
d. discretionary
e. flexible
ANSWER: D
5. Cisco Systems, the computer networking equipment giant, uses its __________ to communicate
with its distributors, resellers, and customers.
a.
b.
c.
intranet
partnering software
extranets
8
d. Internet servers
e. Web presence
ANSWER: C
6. Office Depot has developed wireless, handheld computers for its staff. When customers inquire
about a product, a computer equipped sales associate can pull detailed information on it right out
of the corporate database. Employees at one store can contact employees at another store for
advice or information. This is an example of how __________ can be used to enhance marketing.
a. intranets
b. partnering software
c. extranets
d. Internet servers
e. electronic data interchangeable browsers
ANSWER: A
7. Distribution (in the sense of shipping products) is particularly important to which form of
competition?
a. Cross-market competition
b. Pure competition
c. Oligopoly
d. Monopolistic competition
e. Monopoly
ANSWER: B
8. Since ___________ is regulated by the state or federal government, marketing plays a small role
in this setting.
a. pure competition
b. cross-market competition
c. an oligopoly
d. monopolistic competition
e. a monopoly
ANSWER: E
9. In 1998, F. Hoffman-LaRoche Ltd. and BASF AG, two international pharmaceutical companies,
were ordered to pay $725 million in fines for plotting to raise and fix prices of vitamins used in
virtually every home in the U.S. This is an example of how __________ forces affect the
marketing environment.
a. economic
b. ecological
c. technological
d. social
e. regulatory
ANSWER: E
10. Which of the following trends describes the current U.S. environment?
a.
b.
c.
d.
e.
There is a growing number of older Americans.
Per capita income in the U.S. has increased.
There is a growing focus in the U.S. on the Internet.
U.S. business is experiencing more international competition from emerging countries.
All of the above trends describe the current U.S. environment.
ANSWER: E
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11. An ad on the back of a women's magazine for Cover Girl cosmetics shows Queen Latifah (an
African American) and Faith Hill (a Caucasian) endorsing its products as good for their skin.
This is an example of an ad with a __________ focus, because it shows product users of different
ethnic backgrounds.
a. cultural
b. behavioral
c. occupational
d. demographic
e. psychographic
ANSWER: D
12. The Better Business Bureau:
a.
is the best-known federal agency involved in monitoring self-regulation of competing
businesses.
b. has a great deal of legal power to force a company to comply with regulations.
c. is not involved with Internet commerce.
d. is a voluntary alliance of companies whose goal is to help maintain fair practices.
e. oversees the content of television shows and advertising that runs on those programs.
ANSWER: D
13. Some cereal manufacturers are selling cereals in plastic bags rather than cardboard boxes with
cellophane inserts. Cereal packed in bags requires less packing material than cereal packaged in
traditional boxes. This example reflects the use of:
a. green marketing.
b. the green initiative.
c. recycling.
d. pre-recycling.
e. precycling.
ANSWER: E
CHAPTER 4
CONSUMER BEHAVIOR
1. __________ describes the actions a person takes in purchasing and using products and services.
a. Marketing
b. Market research
c. Consumer behavior
d. Consumer management
e. Purchase development
ANSWER: C
2. When the marketing student said, “It's really hard for me to get to class on time without a car,”
she was entering which stage of the consumer decision process?
a.
b.
c.
d.
Purchase decision
Alternative evaluation
Information search
Problem recognition
10
e. Postpurchase behavior
ANSWER: D
3. An external search for product information is especially important when:
a. the cost of gathering information is low.
b. review of past experience provides adequate information.
c. the risk of making a wrong purchase decision is low.
d. the item is frequently purchased.
e. any of the above conditions exist.
ANSWER: A
4. An example of a public source of information for an external information search is:
a. advertising.
b. Consumer Reports magazine.
c. sales personnel.
d. friends and relatives.
e. point of purchase displays.
ANSWER: B
5. The group of brands a consumer would consider acceptable from among all the brands in the
product class of which he or she is aware is the:
a. evaluative set.
b. evolved set.
c. evoked set.
d. alternative selection group.
e. aspiration group.
ANSWER: C
6. Maria has just told her supervisor, “I'm so glad I bought the Motorola P280 phone rather than
those other models I was looking at. I have really enjoyed the fact that its stream service gives
me an always-on connection to the Internet. I haven't seen another phone with that feature.”
Which stage of the consumer purchase decision process is demonstrated by Maria's conversation?
a. Problem recognition
b. Information search
c. Alternative evaluation
d. Purchase decision
e. Postpurchase behavior
ANSWER: E
7. A consumer's __________ refers to the personal, social, and economic significance of a purchase
to the consumer.
a. involvement
b. aspiration
c. acculturative response
d. motivation
e. selective perception
ANSWER: A
8. Between classes, many college students stop at conveniently located vending machines for their
favorite candy bar and soft drink. Their choices are generally made quickly and with little or no
effort to consider alternative product offerings. The college students are involved in:
a.
b.
limited problem solving situations.
routine problem solving situations.
11
c. extensive problem solving situations.
d. intensive problem solving situations.
e. unlimited problem solving situations.
ANSWER: B
9. Elizabeth has decided to purchase a radar detector and plans to call several friends for
information about alternative brands. She is NOT concerned about where she buys it, as long as
she receives a very liberal return policy should anything go wrong. In making her decision
Elizabeth will engage in which of the following problem solving methods?
a. Limited
b. Extended
c. Habitual
d. Classical
e. Routine
ANSWER: A
10. The purchase task, social surroundings, physical surroundings, temporal effects, and antecedent
states are all examples of __________, which affect the purchase decision process.
a. marketing mix influences
b. psychological influences
c. situational influences
d. sociocultural influences
e. evaluative criteria
ANSWER: C
11. Those needs that are represented by the need for achievement, status, prestige, and self-respect
are __________ needs.
a. physiological
b. safety
c. social
d. personal
e. self actualization
ANSWER: D
12. __________ is the way people see themselves and the way they believe others see them.
a. Self-evaluation
b. Self-concept
c. Aspirational concept
d. Individualized perception
e. Personal perception
ANSWER: B
13. Because Marla is so strongly committed to a fat-free diet, she did not see a recent report by the
New England Journal of Medicine that suggested that some fat in our diet is healthy. The report
was contained in the newspaper that Marla reads daily, but the reason Marla did not see it is
probably the result of:
a. selective retention.
b. selective comprehension.
c. selective exposure.
d. selective perception.
e. stimulus discrimination.
ANSWER: C
14. For which of the following products is perceived risk likely to be the greatest for a female who
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has just taken her first job after college graduation?
a. A magazine subscription to Glamour
b. A cell phone
c. Flowers to decorate her new apartment
d. A new outfit for her first day at work
e. A pair of jeans to wear on weekends
ANSWER: D
15. Another name for the analysis of consumer lifestyle is:
a.
b.
c.
d.
e.
demographics.
psychographics.
social statistics.
physiological needs.
sociographics.
ANSWER: B
16. High-involvement purchases tend to:
a. be expensive.
b. have serious personal consequences.
c. reflect one’s social image.
d. be characterized by all of the above.
e. be characterized by none of the above.
ANSWER: D
17. Which problem solving variation would normally be used to purchase such items as toothpaste,
soda, or chewing gum?
a. Routine problem solving
b. Limited problem solving
c. Extended problem solving
d. Simulated selection
e. Integrated problem solving
ANSWER: A
18. Because the average consumer operates in a complex information-rich environment, the human
brain attempts to organize and interpret information with a process called:
a. selective retention.
b. selective attention.
c. selective exposure.
d. selective perception.
e. stimulus discrimination.
ANSWER: D
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Chapter 6
ORGANIZATIONAL MARKETS AND BUYER BEHAVIOR
1. Organizational buyers include all of the following EXCEPT:
a.
b.
c.
d.
e.
retailers.
government.
manufacturers.
wholesalers.
ultimate consumers.
2. __________ reprocess a product or service they buy before selling it again to the next buyer.
a.
b.
c.
d.
e.
Industrial firms
Reseller firms
Government agencies
Wholesalers
Retail firms
3. Wholesalers and retailers that buy physical products and resell them again without any
reprocessing are:
a.
b.
c.
d.
e.
industrial firms.
resellers.
nonintermediaries.
facilitators.
facilitating markets.
4. Purchases by Procter & Gamble of sodium fluoride for use in Crest toothpaste would be an
example of __________demand.
a.
b.
c.
d.
e.
derived
unitized
binary
applied
consumer
5. Firms selling consumer goods or services often try to reach thousands or millions of individuals
or households. Firms selling to organizations are often:
a.
b.
c.
d.
e.
inclined to try to reach tens of millions.
restricted to far fewer buyers.
hoping to obtain similar numbers of nonconsumer customers.
restricted by government regulations to only a few industrial categories.
confused by the effect of duties and tariffs.
6. __________ involves the deliberate effort by organizational buyers to build relationships that
shape suppliers' products, services, and capabilities to fit a buyer's needs and those of its
customers.
a.
b.
Relationship marketing
Reverse marketing
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c.
d.
e.
Cooperative marketing
Vertical integration
Reciprocity
7. In an effort to make better and more efficient purchase decisions, the Ford Motor Company forms
loosely organized groups of people who work together on purchase decisions. The people
included in these groups change depending on the purchase situation and may include key
personnel from various departments, including research and development, finance, marketing,
shipping, and sales. Such a loosely organized group of people within an organization who are
involved in the purchase decision is correctly called an organizational:
a.
b.
c.
d.
e.
selling committee.
functional unit.
purchasing unit.
buying center.
decision-making unit.
8. A straight rebuy is a (n) __________ while a modified rebuy is a (n) __________.
a.
b.
c.
d.
e.
exchange; resale
reorder; exchange
first-time order; reorder
change; first-time order
reorder; change
9. Business-to-business electronic commerce over the Internet:
a.
b.
c.
d.
e.
is not nearly as prevalent as consumer electronic commerce when measured by the total
dollar value of all Internet transactions.
is approximately four times greater than consumer electronic commerce when measured by
the total dollar value of all Internet transactions.
has dramatically decreased since face-to-face time is so important.
is impossible to estimate since companies will not share information.
has decreased since timely information is unavailable.
1.E
2.A
3.B
4.A
5.B
6.B
7.D
8.E
9.B
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