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MKT 3013 Test 1

STUDY
PLAY
While working at 3M, Windorski and his team observed and questioned students about how they used their textbooks, took notes, wrote term papers, and reviewed for exams, primarily in order to
discover a potentially new way to satisfy student needs by creating a new product.
Which of the following statements about the study of marketing is most accurate?
You are already a marketing expert because as a consumer, you have already been involved in marketing decisions.
Marketing refers to
the activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders, and society at large.
Which of the following statements about stakeholders is most accurate?
The organization doing the marketing, suppliers, shareholders, employees, and consumers are all potential stakeholders. Ultimately all of society should benefit.
To serve both buyers and sellers, marketing seeks to __________ and satisfy the needs and wants of prospective customers.
discover
A student wants to buy a cell phone so she can share pictures with her friends, and an insurance claims adjuster wants to buy a cell phone to document accident reports. If they both purchase the same model phone, which statement is most accurate?
Both the adjuster and students are potential customers because in their own way, they both benefit from the product.
Marketing seeks to discover the needs and wants of prospective customers and satisfy them. Essential to this process is the idea of exchange. To marketing people exchange refers to the
trade of things of value between buyer and seller so that each is better off after the trade.
A local college of business offers an outstanding business school education. Cali pays the tuition to attend and earns her MBA with a concentration in Supply Chain Management. Upon graduating, she is offered a high paying, fulfilling position. Was this a marketing exchange?
Yes, because paying tuition was exchanged for knowledge that directly led to Cali's fulfilling, new job.
Which of the following statements about marketing departments is most accurate?
The marketing department must work closely with a network of other departments and employees to help provide the customer-satisfying products required for the organization to survive and prosper.
The two central concerns of marketing are
discovering and satisfying needs.
The first objective in marketing is to discover the __________ of prospective customers.
Needs
To avoid new-product failure, Robert M. McMath, a new-product expert, suggests
focusing on customer benefits and learning from the past.
A factor that might doom a product is referred to as a(n) __________.
showstopper
Which of the following statements best defines needs and wants?
Needs occur when a person feels physiologically deprived of something, and wants are determined by a person's knowledge, culture, or personality.
A want refers to
a felt need that is shaped by a person's knowledge, culture, or individual personality.
A __________ is a need that is shaped by a person's knowledge, culture, and personality.
want
Marketing discovers consumer needs by
using extensive preliminary research.
People with both the desire and ability to buy a specific offering are referred to as a __________.
market
The most likely market for cosmetic dentistry (which can cost $15,000 for straightening and whitening) is
anyone who has the time, the money, and the desire to undergo the procedures.
Marketing discovers consumer needs by
using extensive preliminary research.
Target market refers to
one or more specific groups of potential consumers toward which an organization directs its marketing program.
The element of the marketing mix that describes a good, service, or idea to satisfy the consumer's need is
product.
The element of the marketing mix that describes what is exchanged for a product is
price.
The element of the marketing mix that describes a means of communication between the seller and buyer is
Promotion
The element of the marketing mix that describes a means of getting the product to the consumer is
place.
The four Ps are commonly known as
the marketing mix or controllable factors.
The marketing manager's controllable factors-product, price, promotion, and place-that can be used to solve a marketing problem are referred to as the __________.
Market Mix
The marketing mix elements are called __________ because they are under the jurisdiction of the marketing department in an organization.
controllable factors
The uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces are referred to as __________.
environmental forces
Environmental forces refer to
the uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces.
The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price is called
customer value.
Which of the following statements about customer value is most accurate?
Quality, price, convenience, on-time delivery, and both before-sale and after-sale service are all elements used to create unique benefits to targeted buyers.
Wal-Mart, Southwest Airlines, and Costco have all been successful offering consumers the
the best price.
Marriott, Lands' End, and Home Depot deliver customer value by providing its customers with the __________ in the market.
best service
The linking of the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits is referred to as
relationship marketing.
Which of the following statements about relationship marketing is most accurate?
Relationship marketing is more effective when there is a personal, ongoing relationship between individuals in the selling and buying organizations.
A business traveler joined the Starwood Preferred Guest Program in order to earn points each time he stayed overnight in a Westin or Sheraton hotel. Once he has accumulated enough points, he can trade his points in for a free night's stay. As a member of this program, the traveler receives periodic updates on new hotels and learns of ways to earn additional points. The marketing term that best describes this scenario is
relationship marketing.
Marketing program refers to:
a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers
The purpose of the introduction of a 3M inventor's Post-it® Flag highlighter was to
capitalize on previous successes and extend the 3M product line.
In the life of a firm, the _________ era, covered the years from the 1920s to the 1960s.
sales
If you wanted a new pair of shoes during the Civil War (1861-1865), you traced the outline of your foot on a piece of paper and gave it to a shoemaker. There was no distinction between right and left foot because you wanted your shoes as quickly as possible, and the shoemaker knew that you would buy them even if they just "sort of" fit. This is an example of a transaction that would have occurred during the __________ era in U.S. business history.
Production
imagine a confectionary company has introduced a new nutty candy bar during the 1930s (the sales era in U.S. business history). Which of the following statements would you most likely expect management to make if sales of this new candy bar were much lower than expected?
Let's put more aggressive salespeople in the field.
In the 1960s, marketing became the motivating force among many American firms and the __________ dawned.
marketing concept era
Marketing concept refers to
the idea that an organization should strive to satisfy the needs of consumers, while also trying to achieve the organization's goals.
A local university offers business courses for a specific target market composed of people who currently work, who want to take refresher courses, or work towards a higher degree. Which of the following would be the most effective way to communicate with the target market, bearing in mind that communication must be both effective and economical?
Advertise in the local newspaper.
Which era of U.S. business history does the following statement best describe? "We are in the business of satisfying needs and wants of consumers."
The marketing concept era
Market orientation refers to
the orientation of an organization that focuses its efforts on (1) continuously collecting information about customers' needs, (2) sharing this information across departments, and (3) using it to create customer value.
An organization that focuses its efforts on continuously collecting information about customers' needs and competitors' capabilities, sharing this information across departments, and using the information to create customer values is said to
have a market orientation.
Today's __________ era is one in which firms seek continuously to satisfy the high expectations of customers.
customer relationship
Customer Relationship Management refers to
developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace primary encounters.
In marketing, an offering refers to
a product, service, or idea that creates value for both the organization and its customers by satisfying their needs and wants.
Business firm refers to
A privately owned organization that serves its customers to earn a profit so that it can survive.
Which of the following statements regarding environmental scanning is the most accurate?
Environmental scanning identifies and interprets potential trends.
Profits refer to
the money left over after a business firm's total expenses are subtracted from its total revenues and is the reward for the risk it undertakes in marketing its offerings.
5. Which statement best describes the most significant difference between a business firm and a nonprofit organization?
Both serve customers, but business firms seek a profit while nonprofit organizations do not
The term used to identify an organization's long-term course of action designed to deliver a unique customer experience while achieving its goals is referred to as
Strategy
Corporate executives and world leaders are increasingly asked to address the issue of __________, a term that refers to meeting present needs "without compromising the ability of future generations to meet their own needs."
Sustainable Development
Bill McDermott is President and CEO of SAP Americas and Asia Pacific Japan. SAP is a company that sells extremely expensive enterprise resource planning software to large and mid-sized companies. McDermott operates at the __________ level of his organization.
Corporate
In recent years, many large time have changed the title of the head of marketing from vice president of marketing to
Chief marketing officer
A subsidiary, division, or unit of an organization that directs overall strategy for the organization that markets a set of related products to a clearly defined group of customers is referred to as a
strategic business unit.
Which of the following statements regarding the strategic business unit level is most accurate?
The strategic direction is more specific at the strategic business unit level than at the corporate level
People in the finance and the human resources departments traditionally operate at what overall organizational level?
Functional level
A key role of the marketing department is to "look outward." This is accomplished by
listening to customers, developing and producing offerings, and implementing marketing program activities.
When developing marketing programs for new offerings, marketing may provide staff to serve as part of a(n) __________ of specialists from all the functional units who are mutually accountable to a common set of performance goals.
Cross-Functional Team
Today's organizations must be visionary—that is, they must
anticipate future events and respond quickly and effectively.
The clear, broad, underlying industry or market sector of an organization's offerings is referred to as __________.
Business
In marketing, the philosophical reason for a firm's existence is referred to as its organizational
Foundation
An organization's foundation can be broken into three key elements. They are
Core values, mission, and organizational culture.
The fundamental, passionate, and enduring principles of an organization that guide its conduct over time are referred to as __________.
Core Values
The term that links the employees, shareholders, board of directors, suppliers, distributors, creditors, unions, government, local communities, and customers of an organization is
Stakeholder
By understanding its business, an organization can take steps to define its __________, a statement of the organization's functions in society, often identifying its customers, markets, products, and technologies, often used interchangeably with vision.
Mission Statement
The ___________ for American Red Cross is "The American Red Cross, a humanitarian organization led by volunteers and guided by its Congressional Charter and the Fundamental Principles of the International Red Cross Movement, will provide relief to victims of disasters and help people prevent, prepare for, and respond to emergencies."
Mission Statement
Although companies have long used mission statements to guide them in business, in recent years many companies have altered their mission statements to include
a social element to reflect moral or ethical ideals.
George Zimmer, the CEO of Men's Wearhouse, is known to the public as the bearded company pitchman who sells suits and sport coats on TV declaring, "You'll like the way you look, I guarantee it!" He also says that to be successful, "You've got to have a company that starts with trust and fairness." He aims to keep his employees happy and loyal. His philosophy sets the
Organizational Culture
In terms of an organization's business, railroads may have lost market share in the 20th century because they
Defined their business too narrowly
Since its launch, Netflix has changed its "business model" in order to
Respond to changing consumer demand and the evolution of new technologies.
The term "goal" and "objective" are often used interchangeably; however, in both cases, which of the following statements would be most accurate?
All lower-level goals must contribute to achieving goals at the next, higher level.
The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself, is referred to as
Market Share
Xbox video game consoles were developed througha joint venture between Microsoft and the WWE. Complaints about the video game immediately after its introduction. These complaints ranged from missing parts to incorrect programming. It would seem obvious that the manufacturer of xbox video game consoles should adopt_____goals.
quality
Marketing dashboard refers to
The visual computer display on a single computer screen of the essential information related to achieving a marketing objective.
Marketing metric refers to
a measure of the quantitative value or trend of a marketing activity or result.
The primary purpose of a marketing metric is to
Measure the quantitative value of a marketing activity
Marketing plan refers to
a road map for the marketing activities of an organization for a specified future time period, such as one year or five years.
A road map for the marketing activities of an organization for a specified future time period, such as one year or five years is referred to as a __________.
Marketing Plan
Taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's plans and the external factors and trends affecting it is referred to as
Situation Analysis
An effective technique a firm can use to appraise in detail its internal strengths and weaknesses and external opportunities and threats is referred to as
SWOT analysis
In the 1980s, a lapse in production quality and increase in Japanese imports drove the Harley-Davidson motorcycle company to the brink of bankruptcy. The company's share of the U.S. super-heavy-weight market—motorcycles with engine capacity of 850 cubic centimeters or more—collapsed from more than 40 percent in the mid 1970s to 23 percent in 1983. However, by 1989, Harley-Davidson controlled some 65 percent of the U.S. market; and both in the U.S. and overseas markets, the company won't be able to meet demand for years. From a marketing perspective, what was the most likely first step in Harley-Davidson's resurgence?
Performing a SWOT analysis
The consumer products industry is one with several large competitors, soaring raw materials prices, and strong demands from powerful retailers for lower prices. As a result Colgate-Palmolive Co. and Unilever Group, the makers of products such as Colgate toothpaste and Ben & Jerry's ice cream both reduced their earnings forecasts. Yet Procter & Gamble, another consumer products company did not. At P & G, innovation is a key attribute, allowing the company to update all 200 of their brands and to invent products such as Crest Whitestrips that consumers crave. P & G has also used its marketing know-how to develop unique product placements on television shows that highlight its brands. A SWOT analysis for P & G of this information would indicate that the overall industry situation is a __________ while the innovation taking place at P & G is a __________.
Threat; Strength
The purpose of the introduction of a 3M inventor's Post-it Flag highlighter was to
Capitalize on previous successes and extend the 3M product line.
Aggregating prospective buyers into groups or segment that 1) have common needs and 2) will respond similarly to a marketing action is referred to as
Market Segmentation
Market segmentation refers to
Aggregating prospective buyers into groups or segments that have common needs and will respond similarly to a marketing action.
Imagine a confectionary company has introduced a new nutty candy bar during the 1930s (the sales era in U.S. business history). Which of the following statements would you most likely expect management to make if sales of this new candy bar were much lower than expected?
Let's put more aggressive salespeople in the field.
Designing a car is expensive and time-consuming even with the use of computers because until recently there was no way for all the varied departments that are involved in new car development to work together. Daimler-Chrysler created a unique central Web-based system that cuts the design and production process by at least two years, thus providing value to the customer. This is an example of a(n)
Competency
A unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation is referred to as
Competitive Advantage
Although now a part of Sears, Lands' End was primarily known as a catalog retailer. This means that traditional department stores, mass merchandisers, specialty shops, and other catalog retailers are considered to be
Lands' End's competition
A technique that managers use to quantify performance measures and growth targets to analyze its clients' strategic business units (SBUs) as though they were a collection of separate investments is referred to as
Business Portfolio Analysis
The Boston Consulting Group (BCG) uses ______to quantify performance measures and growth targets to analyze its clients' SBUs as though they were a collection of separate investments
Business Portfolio Analysis
The Boston Consulting Group (BCG) uses Business Portfolio Analysis to quantify performance measures and growth targets to analyze its clients' strategic business units
As if each were a separate investment
SBUs with a high share of high-growth markets that may not generate enough cash to support their own demanding needs for future growth are referred to as
Stars
SBUs with a low share of slow-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 are referred to as ___
Dogs
Several years ago, Black & Decker purchased General Electric's small appliances product line. Black & Decker purchased the line because it needed the cash infusion from a product line that had a dominant market share. The small appliance industry is a slow-growth one. The small appliances product line is most likely a __________ for Black & Decker
Cash Cow
In its business portfolio analysis, an organization's SBUs often start as __________ and then become __________.
Question marks; stars
In 2007, Kodak's ink-jet printer could be considered a question mark because the market dramatically changed as consumers shifted from single-purpose to multi-function machines designed to print photos, make copies, scan images, and send faxes. Today Kodak now offers only multi-function ones. If Kodak can double or triple unit sales soon, this SBU star could become a __________, if online printing and sharing steal market share, the SBU could become a __________.
Star; Dog
In 2003, Kodak's traditional film sales were an $8 billion dollar cash cow. In 2008, the revenue generated dropped below $500 million. The film SBU became a dog primarily due to
the advent of digital photography popularity
One of the strengths inherent in the use of the BCG portfolio analysis is the fact that it
forces firms to assess their SBUs in terms of relative market share and industry growth rate.
The key steps of planning, implementation, and evaluation are part of what is referred to as
Strategic marketing process
The marketing strategy to increase sales of current product in existing markets is referred to as
Market Penetration
The marketing strategy to sell existing products to new markets is referred to as __________.
correct market development
Two major ways for a company to benefit from taking a market penetration approach would be
sell more product at the same price or sell the same amount of product at a higher price.
The first step in the strategic marketing process is
Situation Analysis
The second phase of the strategic marketing process is the
Implementation Phase
The phase of the strategic marketing process when a firm obtains resources, designs the marketing organization, develops schedules, and actually executes the marketing program occurs during the
Implementation Phase
The four major elements of the implementation phase of the strategic marketing process include (1) obtaining resources, (2) designing the marketing organization, (3) developing schedules, and (4) __________.
Executing the marketing program designed in the planning phase
A marketing strategy is the means by which a marketing goal is to be achieved. Two factors that usually characterize a marketing strategy are
A specified target market and a marketing program to reach it
Marketing strategy refers to
the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it.
The detailed day-to-day operational decisions essential to the overall success of marketing
...
The two major aspects of the evaluation phase of the strategic marketing process are
identifying deviations from goals and acting on the deviations.
Planning gap refers to
The difference between the projection of the path to reach a new goal and the projection of the path of the results of a plan already in place.
Evergreen Air Center is the world's largest parking lot for unwanted commercial aircraft. Airlines pay from $750 to $5,000 monthly for the storage services provided by Evergreen. Prior to September 2001, the company had 140 discarded airplanes at its Arizona facilities and was growing at a rate of about six planes monthly with about two a month sold for parts and/or scrap metal. After calamity struck the airline industry in September 2001, the airlines have retired over a thousand planes—many of which found their way to Evergreen. Now the actual number of planes stored at Evergreen differs significantly from the prediction based on previous behavior. This difference is referred to as
The planning Gap.
After examining a planning gap, firms typically attempt to
Exploit a positive deviation and correct a negative deviation.
1. There were four steps in the GPS revolution. First new technologies were developed and became readily available; second, __________; third, competitive forces developed new products and services; and finally consumer changed becoming "geo-enthusiasts."
Regulatory changes were made allowing cell phone frequencies and former military technologies available for commercial use
2. Environmental scanning refers to
continually acquiring information on events occurring outside the organization to identify and interpret potential threats.
3. Which of the following statements regarding environmental scanning is the most accurate
Environmental scanning identifies and interprets potential trends.
4. 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 to be the most important?
The number of baby boomers in your geographic area will increase during the next five years
5. The social forces of the environment include the __________ of the population and its values. Changes in these forces can have a dramatic impact on marketing strategy.
Demographic Characteristics
6. Environmental scanning identifies and interprets potential trends.
The description of a population according to selected characteristics such as age, gender, ethnicity, and income.
7. Studies of the __________ characteristics of the U.S. population suggest several important trends. Generally, the population is becoming larger, older, and more diverse. Marketers are developing products that will appeal to these target markets.
Demographic
8. Why is it likely that the word "minority" as it is used today will have different implications in the future?
The size of most ethnic groups will double during the next two decades.
9. Which of the following statements regarding baby boomers is most accurate
Baby boomers are important to the consumer market because of their increased earnings and participation in the workforce.
10. Generation X is the label often given to
Persons born between 1965 and 1976
11. This generation is known as a savvy and demanding group of consumers who feel personally responsible for making a difference in the world. They also have an extraordinary optimism about their potential for fame and fortune
Members of Generation Y
12. A major regional shift in the U.S. population toward __________ states is under way
Western and Southern States
13. Minority racial and ethnic groups (excluding Caucasians) are concentrated in geographic regions of the United States. Native American groups are heavily concentrated in
Arizona
14. HSBC Bank International Ltd. (Europe's largest bank) selected its advertising agency because that agency was "always sensitive to the possibility that something might not translate well or may offend superstitions about colors or numbers." Its advertising agency was responsive to
Racial and Ethical diversity
15. Combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races are referred to as
Multicultural marketing programs
16. Culture refers to
the set of values, ideas, and attitudes that are learned and shared among the members of a group.
17. Culture includes values, which vary with age. Consumers between the ages of 30-to-39 years old rank __________ as the third most important cultural value
Health and Fitness
18. Wal-Mart has set a goal to reduce packaging on the products it carries. This change is an example of how they are responding to trends in customer values to
Preserve the Environment
19. Many consumers are committed to brands with a strong link to social action. An example of this would be
Brita's "Filter for Good" campaign
20. Geek Squad set out to provide timely and effective help with all computing needs regardless of the make, model, or place of purchase. Employees were called "agents" and wore uniforms with a Geek Squad logo to create a "humble" attitude that was not threatening to customers. Agents drove a black-and-white
Volkswagen Beetle
21. Economy refers to
the income, expenditures, and resources that affect the cost of running a business and household
22. Policy makers at the Federal Reserve in the United States level believe it takes a far bigger swing in unemployment to affect inflation than it did 25 years ago. Now, when inflation fluctuates, they are more likely to blame other factors such as the price of oil. This is an example of a(n) __________ environmental force.
Economic
23. In an inflationary economy, the cost to produce and buy products and services ________ as prices______.
Escalates; increase
24. A sudden drop in the average consumer income would bean example of which environmental factor
Economic
25. Components of a consumers' income include
Gross, disposable, and discretionary incomes.
26. Gross income refers to
The total amount of money made in one year by a person, household or family unit.
27. Disposable income refers to
The money a consumer has left after paying taxes to use for food, shelter, clothing, and transportation.
28. If taxes rise at a faster rate than income does, consumers most likely
Feel the pinch of less disposable income and try to economize
29. Discretionary income refers to
The money that remains after paying for taxes and necessities
30. Emily had an excellent year as a saleswoman in 2010. She earned $97,000. She paid $17,000 for "necessities" such as mortgage, food, and clothing. She was given a six-week all expenses paid vacation by the company for her sales performance that had a value of $9,000. Her state and federal income taxes totaled $24,000. What was her discretionary income?
$56,000
31. Last year the Parker family used to eat at nice restaurants almost four times a week. Even though Mr. Parker got a 5% raise, the cost of living increase this year was 7%. As a result the family eats most of their meals at home, dining out only four times a month. This reflects
A reactions to a loss of discretionary income
32. Technology refers to
The inventions or innovations from applied science or engineering research.
33. Technological advances are difficult to predict, however, four new technologies that are expected to have impact on marketing within the next few years include.
Nanotechnology, biotechnology, cloud computing and wireless power.
34. Medication sensors have been developed that can dispense medicines by circulating within the arteries of the body and sensing when the medication is needed. This is an example of how __________ help(s) to improve or replace existing products and companies.
Technology
35. Any activity that uses some form of electronic communication in the inventory, exchange, advertisement, distribution, and payment of goods and services is referred to as
Electronic Commerce
36. The Geek Squad wants to ____by setting up locations in FedEx and Office Depot
Create customer value
37. Competition refers to
alternative firms that could provide a product to satisfy a specific market's needs
38.
...
39. In marketing, the four basic forms of competition refer to
pure competition, monopolistic competition, oligopoly, and pure monopoly.
40. The form of competition in which ever company has a similar product is referred to as
Pure Competition
41. Paul Avery is a salesperson at the only Ford automobile dealership in Wausau, Wisconsin. However, there are several other auto dealerships in town, offering both domestic and foreign cars and trucks. Paul works hard to keep his customers satisfied because he knows that if his customers are unhappy, they can simply buy a car from one of the many other comparable dealers in Wausau. This is an example of
Monopolistic Competition
42. During the Christmas season, many catalog retailers offer buyers price reductions, coupons, two-for-one buying opportunities and/or free delivery. This is because these catalog retailers operate in a(n) __________ environment
Monopolistic Competition
43. The major retailers of online music include iTunes Store, Napster, e-Music, Zune Marketplace, Rhapsody, Yahoo Music Unlimited, and Wal-Mart.com. The on-line music industry is an example of a(n)
Oligopoly
44. Boeing, United Technologies, and Lockheed Martin control the U.S. defense contractor industry. The defense contractor industry is an example of a(n)
Oligopoly
45. In marketing, the form of competition that occurs when only one firm sells the product is referred to as
Pure monopoly
46. Small businesses generate __________ of all new jobs annually and __________ of the gross domestic product (GDP).
60 to 80 percent; 50 percent
47. Regulation refers to
the restrictions that state and federal laws place on business with regard to the conduct of its activities
48. Which of the following laws has the purpose of encouraging competition
Sherman Antitrust Act
49. The first major federal legislation passed to prevent contracts, combinations, or conspiracies in restraint of trade in the United States was the
Sherman Antitrust Act
50. The purpose of the Clayton Act is to
forbid actions that are likely to lessen competition although no actual harm has yet occurred.
51. The __________ makes it unlawful to discriminate in prices charged to different purchasers of the same product, where the effect may substantially lessen competition or help to create a monopoly.
Robinson-Patman Act
52. The purpose of patent law is to
Give inventors the right to exclude others from making, using, or selling products that infringe the patented inventions.
53. The purpose of copyright law is to
Give an author of a literary, dramatic, musical, or artistic work the exclusive right to print, perform, or otherwise copy that work.
54. The Infant Formula Act (1980), the Nutritional Labeling and Education Act (1990), and the Fair Packaging and Labeling Act (1966) are all examples of
Consumer-oriented federal laws.
55. Consumerism refers to
the grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions.
56. Coca-Cola hired brand police to make sure that the Coca-Cola brand name and logo are not used without written permission. Why is Coca-Cola so rigorous in protecting its trademark?
In order to maintain the use of its widely recognizable trademark, Coca-Cola must prevent the name from becoming generic.
57. The Madrid Protocol is
a treaty that facilitates the protection of U.S. trademark rights throughout the world.
1. The Consumer Awareness and Education Department was established within Anheuser-Busch to
promote responsible drinking and deter underage drinking and alcohol abuse.
2. The Family Talk About Drinking guidebook developed by Anheuser-Busch to help parents address the topic of underage drinking is an example of
Ethical behavior in marketing
3. Anheuser-Busch's commitment to saving the environment indicates that it would act in accordance with __________, the view that an organization should discover and satisfy the needs of its consumers in a way that provides for society's well-being.
Social Responsibility
4. Ethics refer to the
Moral principles and values that govern the actions and decisions of an individual or group
5. Laws refer to
Society's value and standards that are enforceable in the courts
6. Which of the following statements accurately distinguishes between laws and ethics?
Ethics deal with personal and moral principles whereas laws are society's values and are enforceable in the courts.
7. More than 70 percent of the physicians in the Maricopa County (Arizona) Medical Society agreed to establish a maximum fee schedule for health services to curb rising medical costs. All physicians were required to adhere to this schedule as a condition for membership in the society. The U.S. Supreme Court ruled that this agreement violated the Sherman Act and represented price fixing. This example illustrates that the physician's actions were
ethical but illegal.
8. When the owner of a small publishing company allowed a friend who was starting a machine embroidery business to load the publishing company's copy of Microsoft WORD on the new business's computer, it was an example of
An activity that is illegal and unethical
9. Enron's Chief Financial Officer Andrew Fastow was indicted and then pleaded guilty on charges of securities fraud in the Enron case and was accused of enriching himself and his family at the company's expense. He ordered an employee to fake financing to fool an adviser to the California Public Employees' Retirement System. The employee resisted, but Fastow, in his tenure with Enron, was acting
Unethically and illegally
10. China is the world's largest tobacco-producing country and has 300 million smokers. Approximately 700,000 Chinese die annually from smoking-related illnesses. This figure is expected to rise to more than 2 million by 2025. China restricts tobacco imports. U.S. trade negotiators advocate free trade, thus allowing U.S. tobacco companies to market their products in China. The U.S. trade negotiators are acting
Unethically but legally
11. The current low perception of ethical business behavior can be explained by a number of reasons including the increased pressure on business people to make decisions in a society with diverse value systems, a growing tendency for business decisions to be judged publicly by groups with different values and interests, an increase in the public's expectations of ethical business behavior, and
The decline of ethical business behavior
12. In marketing, the set of values, ideas, and attitudes that are learned and shared among members of a group is referred to as __________.
Culture
13. Culture refers to the set of values, ideas, and attitudes that are learned and shared among members of a group. Culture also serves as a socializing force that dictates what is morally right and just. The important thing to remember is
Moral standards are relative to particular societies.
14. Factors influencing personal, moral, philosophy, and ethical behavior include societal culture and norms, business culture and industry practices, and
corporate culture and expectations
15. The unauthorized use of intellectual property can severely affect the owners of that property; it can also
Have a negative impact on the economy through the loss of jobs, wages, or tax revenue
16. In marketing, the effective rules of the game, the boundaries between competitive and unethical behavior, and the codes of conduct in business dealings are referred to as
Business Culture
17. Investors should understand that when purchasing stock the principle of __________ is in effect. It benefits the investor to do research on the company so that they will make a wise purchase.
Caveat emptor
18. The Consumer Bill of Rights refers to
a law that codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard.
19. In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers. These were the right (1) to be safe, (2) to be informed, (3) to choose, and (4) to
Be heard
20. Inc. learned that the lithium-ion batteries in its notebook computers posed a fire hazard to consumers. The company recalled 2.7 million batteries and gave consumers a replacement before any personal injuries resulted. Dell was most likely concerned with consumers'
right to safety.
21. When shopping on the Internet, most consumers assume the personal information they give out is confidential. Subscribers to America Online (AOL) were upset when AOL proposed giving member information to partners without telling the subscribers. This is related most directly to the consumer's
Right to be informed
22. The right to be heard means that
consumers should have access to public-policy makers regarding complaints about products and services.
23. Business culture affects ethical behavior in competition. Two kinds of unethical behavior are most common
Economic espionage and bribery
24. Economic espionage includes such activities as illegal trespassing, theft, fraud, misrepresentation, wiretapping, __________, and violations of written and implicit employment agreements with noncompete clause.
Searching through a competitor's trash
25. Economic espionage is most likely to occur in which types of industries
High tech electronics and aerospace
26. Bribery is most likely to occur when
The industry is experiencing little competition
27. Two laws specifically intended to curb economic espionage and bribery in international marketing are the
Economic espionage act and Foreign corrupt practices act.
28. Corporate culture manifests itself in many different ways: the ethical behavior of top management, expectations for ethical behavior present in formal codes of ethics, and
The dress codes, team work, and sayings of its employees
29. firm's formal statement of ethical principles and rules of conduct is called a
Code of Ethics
30. formal statement of ethical principles and rules of conduct is referred to as a(n)
code of ethics.
31. Which of the following is one of the major reasons for the violation of ethics code
Lack of specificity of the ethics code.
32. Recently, six executives of Tyson Foods, one of the world's largest poultry, beef, and pork processors, were arrested for illegal smuggling of undocumented foreign workers into the U.S. to work at Tyson plants. Tyson's violations are the result of __________, one of the major reasons why some companies fail to establish ethical behavior.
Top management's behavior
33. Whistle-blowers refer to
Employees who report unethical or illegal actions of their employers.
34. Which of the following statements describes a whistleblower?
An employee tells the Consumer Product Safety Commission his company falsified safety reports on a child's car seat
35. Ultimately, ethical choices are based on
the personal moral philosophy of the decision maker
36. Moral idealism refers to
A moral philosophy that considers individual rights or duties as universal, regardless of the outcome.
37. The 3M company stopped production of a chemical they had manufactured for nearly 40 years when tests showed the chemical could be harmful in large doses; even thought the products in which it was used had no known harmful health of environmental effect. This is an example of
Moral idealism
38. A personal moral philosophy that focuses on "the greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior is referred to as
Utilitarianism
39. Recently a project team for Cosco, the world's largest children's products company, developed a high chair that could be used as an infant feeding seat, a youth chair, a play chair, a booster chair, and it could be reclined to make an infant bed. Its design could be made and sold for $49. Cosco rushed the chair into production to beat its competition before it was properly safety tested and when some children were injured as a result of this chair, Cosco denied culpability by saying that only a few consumers had had any trouble with the chair. These consumers had not read the instructions that came with the chair and had assembled it improperly. Cosco's actions exemplify which of the following philosophies?
Utilitarianism
40. Profitability is viewed as essential to the future success of corporations such as Starbucks. According to Starbucks' Mission Statement and Guiding principles, which of the following alternatives correctly identifies the placement of profitability?
customers, partners, diversity, coffee, community and environment, and profitability
41. Social responsibility refers to
the view that organizations are part of a larger society and are accountable to that society for their actions.
42. In 2006, Gap Inc. ended their relationship with 23 production facilities due to code violations. Several closings occurred because of the use of child labor. In response to these events the Gap created a large team whose purpose is to travel worldwide to ensure compliance with their Code of Vendor Conduct. This is an example of
social responsibility.
43. The residents of Alaska and people throughout the world were outraged when the Exxon Valdez crashed into a shoal and dumped millions of gallons of crude oil into the pristine waters of Prince William Sound. People were upset with Exxon's response to the disaster. The company was slow to admit its mistake and even slower to implement cleanup activities. Exxon was criticized for acting in a manner which would benefit the organization but would not benefit society in general. In short, Exxon did not demonstrate
Social Responsibility
44. The group primarily served by a firm exhibiting profit responsibility include
owners and stockholders
45. Source Perrier S.A., the supplier of Perrier bottled water, exercised __________ when it recalled 160 million bottles of water after traces of a toxic chemical were found in 13 bottles. The recall cost the company $35 million and $40 million more was lost in sales. Even though the chemical was not harmful to humans, the president of the company believed it was his duty to remove "the least doubt, as minimal as it might be, to weigh on the image of the quality and purity of our product."
Stakeholder Responsibility
46. Triple-Bottom line refers to
The recognition of the need for organizations to improve the state of people, the planet and profit simultaneously.
47. Green marketing refers to
The marketing efforts to produce, promote, and reclaim environmentally sensitive products.
48. Chrysler recycles thousands of tons of wooden pallets, cardboard, and paper annually. The Chrysler car itself is 75 percent recyclable. Chrysler's programs to recycle waste are examples of
Green Marketing
49. When charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products, it is referred to as
Cause marketing
50. Spiegel Inc. sold Christmas cards on page two of its holiday retail catalog. Spiegel designed and printed the cards. Proceeds from the sales of the Christmas cards purchased through the catalog went to benefit the Starlight Children's Foundation and the National Center for Missing and Exploited Children. In marketing, this is an example of
Cause Marketing
51. American Express Company pioneered cause marketing when it sponsored the renovation of
State of Liberty
52. Social audit refers to
a systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility.
53. Sustainable development refers to
Conducting business in a way that protects the natural environment while making economic progress.
54. Starbucks has built a company that balances __________ with a social conscience.
Profitability
55. Starbucks' social responsibility report is focused on several topical areas such as their partners, coffee, customers, community and environment, profitability, and __________.
Diversity
56. Consumers have an obligation to __________ in the exchange process and in the use and disposition of products.
Act ethically and responsibility
57. Practices that include filing warranty claims after the claim period, misredeeming coupons, making fraudulent returns of merchandise, providing inaccurate information on credit applications, tampering with utility meters, tapping cable TV lines, duplicating copyrighted music and software, and submitting phony insurance claims are examples of
Unethical practices of consumers
58. Although research shows consumers are sensitive to ecological issues, they may not be willing to purchase a given product or service solely on the basis of its environmental claims. They may be unwilling to sacrifice convenience and pay higher prices to protect the environment and
They may be confused about which product are truly "environmentally safe" given that many marketers clain to produce "green products" even if they aren't
59. The practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice is referred to as __________.
Greenwashing
60. Greenwashing refers to
the practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice.
1.A consumer's purchases are often influenced by the views, opinions, or behavior of others. Two important aspects of personal influence are
opinion leadership and word-of-mouth activity
Amy is an avid mystery reader and decided to purchase a mystery book for her best friend. Since the 2 friends enjoy the same types of mysteries. Amy knows exactly which book her friend would like. When amy was scanning her memory various mystery book options, she was engaged in
an internal search (process when consumers scan their memory for previous experiences with products or brands is called internal search)
A(n) __________ for information is needed when past experience or knowledge is insufficient, the risk of making a wrong purchase decision is high, and the cost of gathering information is low.
External search
When past experience is insufficient, the risk of making a wrong decision is high, and the cost of gathering information is low, a consumer is more likely to use __________ for information.
an external search
Relatives and friends whom the consumer trusts, are known as __________ of external information.
...
...
personal sources
There are various non-profit publications dedicated to assist in consumer education and decision making. Examples of these public sources of information for an external information search include __________, government agencies, and T.V. "consumer programs."
...
...
Consumer Reports magazine
An example of a marketer-dominated source of information for an external information search is
...
...
advertising.
Evaluative criteria refer to
the objective and subjective attributes of a brand consumers use to compare different products
When purchasing a computer, factors the consumer considers prior to purchase are called __________, which represent both the objective attributes of a brand and the subjective ones used to compare different products and brands.
evaluative criteria
There are five stages in the purchase decision process. The fourth stage is __________.
purchase decision
15.Once a consumer has completed the alternative evaluation stage of the consumer purchase decision process two choices remain:
from whom to buy and when to buy.
At the __________ of the purchase decision process, a consumer compares the product with his or her expectations and is either satisfied or dissatisfied.
postpurchase stage
After buying a product a consumer compares it with his or her expectations and is either satisfied or dissatisfied. The consumer may attempt to reduce cognitive dissonance by reinforcing the belief that he or she made the right choice. This occurs at the
postpurchase stage.
Cognitive dissonance refers to
the feeling of postpurchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives.
Customer satisfaction is an important focus for marketers because
over time, the financial value of a retained customer can be significant.
Involvement refers to
the personal, social, and economic significance of the purchase to the consumer.
High involvement purchases typically have which of the following characteristics?
the item is expensive, can have serious personal consequences, or could reflect on one's social image
Robin wants to find the perfect gift for her grandparents' 50th wedding anniversary. She started looking for the gift last month and expects to spend another couple of months if needed to find a gift they both will like. Robin is engaging in
extended problem solving Extended problem solving makes use of each stage of the consumer purchase decision process including considerable time and effort on external information search and in identifying and evaluating alternatives.
Which problem solving variation would likely be used for clothing, sheets and towels, or electric can openers?
limited problem solving
Which problem solving variation would normally be used to purchase items such as cereal or laundry detergent?
routine problem solving
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 described here are most likely involved in
routine problem solving situations.
The purchase of a bottle of water is a low-involvement purchase. How can a marketer convince people to buy a market challenger, Dasani brand water, instead of one of the numerous other brands displayed on retailers' shelves?
offer coupons for Dasani bottled water.
The five aspects of the purchase situation that impact the consumer's purchase decision process are: (1) purchase task, (2) social surroundings, (3) physical surroundings, (4) temporal effects, and (5) antecedent states. These five aspects are referred to as
situational influences.
Five situational influences have an impact on a consumer's purchase decision process: temporal effects, physical surroundings, antecedent states, social surroundings, and __________.
purchase task
Three teen-aged girls spent hours at the store trying on various outfits, looking at possible combinations, and asking each other, "How do you think this outfit looks?" This situation is most closely related to which of the following situational influences?
Social surroundings (other people present when a purchase decision is made)
The crowded aisles in retail stores at holiday time may cause shoppers to lose patience and decide on their purchase with far less thought than they otherwise would, because they are uncomfortable. This situation is most closely related to which of the following situational influences?
??
Consumers with credit cards
purchase more than those who purchase with cash or debit cards.
Sociocultural influences which affects the consumer purchase decision process, include all of the following except family, reference groups, personal influences, culture and subculture.
values, beliefs, and attitudes
The energizing force that stimulates behavior to satisfy a need is referred to as
motivation
Those needs which are basic to survival and which must be satisfied first are
physiological needs.
Which of the following lists the hierarchy of needs in its correct order beginning with the most basic?
physiological, safety, social, personal, and self-actualization
In the hierarchy of needs, a burglar alarm would satisfy a __________ need.
safety
Those needs that are concerned with love and friendship are referred to as __________needs.
Social
the long-running U.S army recruiting program that invited enlistees to "Be all You Can Be" appeals to which of the hierarchy of needs?
Self-actualization needs (involve personal fulfillment)
Personality refers to
a person's consistent behaviors or responses to recurring situations.
Self-concept refers to
the way people see themselves and the way they believe others see them.
The process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world is referred to as __________.
perception
If you read this chapter the night before this test and still cannot remember the correct marketing term to answer this question, it may very well be the result of
selective retention.
Retailers can reduce problems associated with selective retention by
providing brochures for consumers to take home.
The anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences is referred to as
perceived risk.
Those behaviors that result from (1) repeated experience and (2) reasoning, is referred to as
learning.
One evening while watching TV, your stomach growls (cue). You see an ad for Subway. You walk to the Subway shop and buy a sandwich (response), which tastes great. In terms of behavioral learning your hunger is a(n) marketing example of a __________.
drive
Four variables are central to how consumers learn from repeated experience: drive, cue, response, and reinforcement. Your hunger is a drive, the need that motivates you to action
...
A __________ is the action taken by a consumer to satisfy a drive.
Drive
Consumers' ability to perceive taste differences in chocolate bars is an example of
stimulus discrimination
Comparative advertising in which one brand is compared to another is intended to cause consumers to perceive differences between the products featured in the advertising. Marketers who use comparative advertising are trying to use __________ to make consumers believe that its product is better than the other one.
stimulus discrimination (a person's ability to perceive differences in stimuli—in this case two different brands)
A favorable attitude toward and consistent purchase of a single brand over time is referred to as
brand loyalty
Brand loyalty refers to
a favorable attitude toward and consistent purchase of a single brand over time
If you hold a personal value of being thrifty, then you will probably have a positive __________ toward automobiles with good fuel economy.
attitude
Beliefs refer to
a consumer's subjective perception of how a product or brand performs on different attributes.
Marketers use three approaches to try to change consumer attitudes toward products and brands: (1) changing beliefs about the extent to which a brand has certain attributes; (2) changing the perceived importance of attributes; and (3) __________.
adding new attributes to a product. \
Marketers use three approaches to try to change consumer attitudes toward products and brands:
(1) changing beliefs about the extent to which a brand has certain attributes, (2) changing the perceived importance of attributes, (3) adding new attributes to the product.
Most people already know TUMS, a popular antacid, contains calcium. Today, TUMS antacid stresses both the benefits of calcium itself and the fact that TUMS can be used as a calcium supplement. The new promotion is changing attitudes toward TUMS by
changing the perceived importance of a specific attribute.
Another name for the analysis of consumer lifestyle is __________.
psychographics
The Values and Lifestyle (VALS) program
creates profiles of people based on their primary motivation and resources.
A consumer's purchases are often influenced by the views, opinions, or behaviors of others. Two aspects of personal influence that are important to marketing __________ and word-of-mouth activity.
opinion leadership
Individuals who exert direct or indirect social influence over others are referred to as....
Opinion leaders
BzzAgent has a goal of
capturing honest word of mouth testimonials from satisfied customers who will promote new products or services. ////BzzAgent harnesses the power of word of mouth with a goal of capturing honest word of mouth and building a network that turns passionate customers into brand evangelists.
The influencing of people during conversation is referred to as
word of mouth activity.
Word of mouth refers to
the influencing of people during conversation.
People to whom an individual looks as a basis for self-appraisal or as a source of personal standards are referred to as
reference groups.
A reference group to which a person actually belongs is referred to as a(n) __________ group.
membership
An aspiration group is a group
that a person wishes to be a member of or wishes to be identified with.
The American Express advertising claim that "membership has its privileges" creates which type of reference group?
aspiration group
The distinct phases a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors are referred to as
family life cycle.
Family life cycle refers to
the distinct phases a family progresses through, from formation to retirement, each phase bringing with it identifiable purchasing behaviors
The family life cycle concept describes the distinct phases a family progresses through, from __________, each phase bringing with it identifiable purchasing behaviors.
formation to retirement
The set of values, ideas, and attitudes that are learned and shared among the members of a group is referred to as __________.
culture