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Multiple Choice - Terminology/Concept
E c
1.
Which one of the following is NOT a part of the marketing environment?
a. Controllable factors
c. Interest rates
b. Uncontrollable factors
d. Adaptation
E c
2.
Which is a major uncontrollable factor to both the firm and its marketers?
a. Overall objectives
c. Competition
b. Role of other business functions
d. Line of business
E a
3.
A firm monitors uncontrollable factors and evaluates its strengths and
weaknesses in
a. feedback.
c. control.
b. adaptation.
d. differential advantage analysis.
E c
4.
In which part of the marketing environment does a firm monitor uncontrollable
factors and assess its strengths and weaknesses?
a. Adaptation
c. Feedback
b. Corporate culture
d. Target marketing
E d
5.
The part of the marketing environment in which an organization plans changes
in its marketing plan to reflect a new consumer trend is
a. corporate culture.
c. feedback.
b. strategic planning.
d. adaptation.
E b
6.
After studying its uncontrollable environment, a firm decides to change its
pricing strategy. This decision involves
a. feedback.
c. marketing myopia.
b. adaptation.
d. mass marketing.
D a
7.
Which of the following are parts of a marketer’s macroenvironment?
a. A firm’s societal environment
c. A firm’s distributors
b. The capabilities of the firm itself
d. A firm’s pricing strategy
E b
8.
The elements that are internally directed by a firm and its marketers are known
as
a. the marketing mix.
c. marketing strategies.
b. controllable factors.
d. marketing tactics.
D c
9.
Which of the following is NOT a controllable factor that is directed by top
management?
a. Role of marketing
c. Selection of a target market
b. Overall objectives
d. Line of business
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Chapter 2: The Environment in Which Marketing Operates
Multiple Choice - Terminology/Concept
D c
10.
Which of the following factors is NOT directed by top management?
a. Role of other business functions
b. Role of marketing
c. Determination of the target market
d. The firm’s corporate culture
E d
11.
When business managers outline a firm’s functions, geographic coverage, and
the specific business of the firm, they are detailing the firm’s
a. corporate culture.
c. marketing organization.
b. target market.
d. line of business.
D b
12.
An appliance retailer has decided to limit its business to marketing major
appliances in a size suitable for smaller apartments. This represents its
a. role of marketing.
c. corporate culture.
b. line of business.
d. overall objectives.
E d
13.
Marketing is given an important role in a company if
a. marketing functions are narrowly defined.
b. the firm invests heavily in distribution facilities.
c. marketing personnel have both short-term and long-term objectives.
d. marketing personnel have decision making authority and adequate resources
are provided.
E c
14.
A firm’s corporate culture refers to its
a. short- versus long-term focus.
b. degree of consumer orientation.
c. shared values, norms, and practices.
d. role of marketing in the firm.
D b
15.
Which of these factors is generally considered NOT to be controllable by
marketing personnel?
a. The marketing mix
c. The selection of a target market
b. Overall objectives
d. The marketing organization
D c
16.
A commonly used market segment would classify consumers on the basis of
a. perceived risk.
c. age group.
b. ownership.
d. risk tolerance.
E c
17.
The particular group of customers a firm proposes to serve with a particular
marketing program is its
a. unified segment.
c. target market.
b. benefit segment.
d. market segment.
22
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Multiple Choice - Terminology/Concept
E b
18.
The process of subdividing a market into clear subsets of customers that act in
the same way or have comparable needs is referred to as
a. demographic marketing.
c. lifestyle segmentation.
b. market segmentation.
d. target marketing.
D a
19.
Which of these is NOT a marketing objective?
a. To reduce dependence on a key supplier
b. To improve a company’s overall image
c. To increase a firm’s average purchase from its customers
d. To increase customer inquiries
D d
20.
Which of the following is an example of a marketing objective?
a. To maintain return on investment at 14 percent
b. To earn a 7-year payback period on a new plant
c. To double the current research and development budget
d. To increase market share to 15 percent
E b
21.
The unique features in a firm’s marketing program that cause consumers to
patronize the firm, and not competitors, is its
a. marketing mix.
c. corporate culture.
b. differential advantage.
d. technological mix.
D a
22.
A firm is a low-cost provider in an industry on the basis of cost economies due
to its high market share and key patents. This illustrates its
a. differential advantage.
c. target market.
b. marketing objective.
d. marketing mix.
E c
23.
The structural arrangement that directs marketing functions is outlined in the
a. marketing mix.
c. marketing organization.
b. firm’s objectives.
d. corporate culture.
D c
24.
In a functional form of marketing organization, responsibility is assigned on the
basis of
a. customer location.
b. customer size.
c. buying, selling, promotion, and distribution.
d. product category.
23
Chapter 2: The Environment in Which Marketing Operates
Multiple Choice - Terminology/Concept
E d
25.
In which marketing organization format does a firm use a single individual to
make packaging, advertising, distribution, and pricing decisions for each
individual brand?
a. Centralized
c. Market-oriented
b. Functional
d. Product-oriented
E c
26.
Managers are assigned on the basis of customer type and/or geographic market
in which marketing organization format?
a. Centralized
c. Market-oriented
b. Product-oriented
d. Functional
E c
27.
The specific combination of marketing elements used to achieve objectives and
satisfy the target market is the
a. differential advantage.
c. marketing mix.
b. marketing strategy.
d. marketing plan.
E b
28.
Which of the following is NOT a component in a firm’s marketing mix?
a. Pricing decisions
c. Product decisions
b. Feedback and adaptation
d. Distribution decisions
E b
29.
The marketing mix involves
a. planning, implementation, and control decisions.
b. product, distribution, promotion, and price decisions.
c. strengths, weaknesses, opportunities, and threats (SWOT) analysis.
d. product, packaging, personnel, and promotion decisions.
E b
30.
Decision making relating to supplier choice and what functions to assign to
others are part of
a. pricing decision making.
c. promotion decision making.
b. distribution decision making.
d. product decision making.
E a
31.
Which statement concerning uncontrollable factors is correct?
a. Uncontrollable factors cannot be fully directed by an organization and its
marketers.
b. While uncontrollable factors can be fully directed by top management, they
cannot be directed by its marketers.
c. Uncontrollable factors cannot be incorporated into a marketing plan.
d. Uncontrollable factors are not susceptible to contingency planning
techniques.
24
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Multiple Choice - Terminology/Concept
D a
32.
Which of these is an uncontrollable factor for both an organization and its
marketers?
a. The unemployment rate
b. The firm’s marketing organization
c. The role of marketing in the firm
d. The firm’s corporate culture
E b
33.
In which competitive structure does a firm have the most control over its
marketing plan?
a. Pure competition
c. Monopolistic competition
b. Monopoly
d. Oligopoly
D d
34.
In a monopoly situation, the firm’s key marketing task is to
a. differentiate its products on the basis of nonprice factors.
b. differentiate its products on any factors.
c. ensure a large product supply at low prices.
d. maintain its uniqueness and to prevent competitors from entering the
market.
E b
35.
In an oligopoly,
a. just one firm sells a particular good or service.
b. a few firms comprise most of an industry’s sales.
c. several firms, each with a unique marketing mix, exist in an industry.
d. many firms sell virtually identical goods or services.
E d
36.
In an oligopolistic competitive structure,
a. the market is often quite small.
b. there are no discernible consumer segments.
c. each firm has total control over its marketing plan.
d. firms like to engage in nonprice competition.
E a
37.
Which competitive structure most closely describes the bottled/canned soda
industry?
a. Oligopoly
c. Monopolistic competition
b. Monopoly
d. Pure competition
E a
38.
When an industry has several firms, each of which is striving to offer a unique
marketing mix, which competitive structure exists?
a. Monopolistic competition
c. Oligopolistic competition
b. Differentiated competition
d. Pure competition
25
Chapter 2: The Environment in Which Marketing Operates
Multiple Choice - Terminology/Concept
E b
39.
The most common competitive structure in the United States is
a. monopoly.
c. oligopoly.
b. monopolistic competition.
d. pure competition.
D a
40.
An important characteristic of monopolistic competition is that
a. startup costs are relatively low.
b. major firms have significant patent protection.
c. barriers to entry exist which reduce competition.
d. most firms sell identical products.
E d
41.
In which competitive structure are firms unable to create a long-run differential
advantage?
a. Oligopoly
c. Monopoly
b. Monopolistic competition
d. Pure competition
D a
42.
A firm that looks carefully at the marketing strategy of its indirect competitors
a. defines its competitors in generic terms.
b. is in a monopolistic competition competitive environment.
c. practices marketing myopia.
d. views competition in a narrow framework.
E b
43.
Federal legislation affecting marketers can be divided into three major
categories: antitrust, discriminatory pricing, and unfair trade practices; industry
deregulation; and
a. natural resource conservation and protection.
b. consumer protection.
c. fraudulent business practices.
d. regulation of mergers and acquisitions.
D d
44.
The goal of legislation designed to maintain “a level playing field” is to
a. reduce price competition among competing firms.
b. protect consumers from unethical marketing practices.
c. make domestic firms more competitive with foreign firms.
d. protect smaller firms from anticompetitive activities of larger firms.
D d
45.
The major role of the Federal Trade Commission is to
a. ensure that consumers obtain low prices.
b. protect businesspeople from unfair competition from foreign-owned firms.
c. develop and enforce rules relating to consumer product safety.
d. enforce rules against unfair methods of competition and deceptive business
practices.
26
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Multiple Choice - Terminology/Concept
E b
46.
The annual value of goods and services produced in a country less net foreign
investment is a country’s
a. trade surplus.
c. balance of payments.
b. gross domestic product.
d. trade deficit.
D a
47.
Real income is the
a. income earned by a person adjusted by the rate of inflation.
b. income earned by a person after deducting all costs for luxuries.
c. actual dollar income earned by a person.
d. actual after-tax income earned by a person.
E c
48.
Technology refers to the development and use of
a. research and development.
b. major innovations.
c. machinery, products, and processes.
d. engineering resources.
D a
49.
A consumer survey conducted by an industrial marketer to determine the images
of its multiple brand is an illustration of which part of the marketing
environment?
a. Feedback
c. Objectives
b. Adaptation
d. Uncontrollable factors
E d
50.
In marketing myopia, a firm
a. defines its business in terms of broadly defined consumer needs.
b. acquires intermittent consumer feedback.
c. has an aggressive approach to marketing.
d. has a narrow-minded view of marketing and its environment.
Multiple Choice - Applied/Comprehensive/Integrative
E b
51.
In developing a marketing plan, a marketing manager must take into account
marketing factors that are uncontrollable by marketing personnel. These
variables include
a. pricing and distribution management.
b. consumers and competition.
c. marketing objectives and technology.
d. marketing organization and supplier prices.
27
Chapter 2: The Environment in Which Marketing Operates
Multiple Choice - Applied/Comprehensive/Integrative
D d
52.
When the top management of a computer manufacturer decides to purchase a
former supplier of computer cases, this decision has the greatest impact on the
company’s
a. overall objectives.
c. corporate culture.
b. marketing functions.
d. line of business.
D a
53.
A firm defines its line of business broadly to take advantage of potential
opportunities. For example, instead of classifying itself as a manufacturer of
high fidelity equipment, it views itself as an entertainment technology firm. The
firm
a. defines competition in generic terms.
b. practices marketing myopia.
c. practices mass marketing.
d. has a flexible corporate culture.
D c
54.
Which controllable factor is defined in broad terms for a conglomerate?
a. Corporate culture
c. Line of business
b. Overall objectives
d. Role of other business functions
E d
55.
In contrast to its overall objectives, a firm’s marketing objectives are more
frequently stated in terms of
a. long-term objectives.
c. return on investment.
b. profits.
d. consumer image.
D a
56.
The role of marketing is greatest in which competitive structure?
a. Monopolistic competition
c. Oligopoly
b. Pure competition
d. Monopoly
D d
57.
A firm calls its employees “associates,” prefers to promote from within, uses
participative management, and focuses on long-term (not short-term)
performance. These values reflect the firm’s
a. formality.
c. marketing orientation.
b. controllable factors.
d. corporate culture.
D c
58.
When the senior executives at a home improvement center communicate the
firm’s concern for high levels of customer service and for honesty in dealing
with customers (they should sell a $1 washer instead of a $100 faucet, if only
the washer is needed), the executives are communicating the firm’s
a. marketing mix.
c. corporate culture.
b. role of marketing.
d. line of business.
28
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Multiple Choice - Applied/Comprehensive/Integrative
D c
59.
A restaurant appeals to consumers who desire family-oriented meals. It offers an
informal dining atmosphere, family-size portions, and special menus for
children accompanied by family members. Most of its patrons live within 5
miles of the restaurant, have annual family incomes in excess of $50,000, and
dine with their children. These consumers comprise the restaurant’s
a. marketing target.
c. target market.
b. marketing mix.
d. customer base.
E b
60.
Objectives relating to the time span between a customer’s ordering merchandise
and its receipt, and customer satisfaction ratings are examples of
a. overall objectives.
c. short-term objectives.
b. marketing objectives.
d. long-term objectives.
D a
61.
A hospital supply firm has a unique computer program which facilitates
reordering hospital supplies. Orders are placed directly to the wholesaler who
guarantees next day delivery. This program and order cycle time represent the
wholesaler’s
a. differential advantage.
c. marketing mix.
b. marketing philosophy.
d. target strategy.
E c
62.
Without a differential advantage, a company would have a
a. poorly integrated marketing plan.
b. limited target market.
c. “me-too” philosophy.
d. mass-market orientation.
D c
63.
Which statement about a differential advantage is correct?
a. It is most difficult to get and keep a differential advantage in a monopoly.
b. Only large firms can develop and maintain a differential advantage.
c. Individual firms can have no differential advantage in pure competition.
d. A firm can develop a differential advantage in pure competition through
nonprice marketing factors.
E d
64.
A personal computer manufacturer generates consumer loyalty through the use
of direct marketing, Web-based ordering, high levels of customer service, and
low prices due to its assuming wholesale and retail functions. These strategic
elements constitute its
a. marketing plan.
c. marketing mix.
b. market segmentation approach.
d. differential advantage.
29
Chapter 2: The Environment in Which Marketing Operates
Multiple Choice - Applied/Comprehensive/Integrative
D c
65.
A marketing organization
a. is usually headed by a product or sales manager.
b. is independent of a firm’s corporate culture.
c. should adapt to situational factors.
d. is not subject to the control of top management.
Questions 66 and 67 are linked to this scenario: As vice-president of marketing of a major
appliance manufacturer (that specializes in refrigerators and ranges), you are considering
various alternative organizational forms for the marketing function.
D d
66.
One alternative structure would be based upon satisfying two criteria: (1)
minimizing total personnel costs, and (2) having clear lines of authority and
responsibility. The most appropriate organization form on the basis of these
criteria is
a. market-oriented.
c. product-oriented.
b. mixed.
d. functional.
D c
67.
Another alternative organization design would be based upon best meeting the
needs of different market segments. For example, organizational consumers
(such as builders and property owners) often purchase major appliances on the
basis of cost, the availability and cost of replacement parts, and ease of repair.
Final consumers, on the other hand, typically purchase major appliances largely
on the basis of style and color preferences. The most appropriate organization
form for the firm is
a. product-oriented.
c. market-oriented.
b. mixed.
d. functional.
E b
68.
A tire manufacturer has different managers responsible for different channel
members (car manufacturers who buy direct versus final consumers who
purchase replacement tires from service stations, tire retailers, and mass
merchandisers like Wal-Mart), even though the tires are exactly the same for
each channel. This firm is using what type of marketing organization?
a. Matrix-oriented
c. Product-oriented
b. Market-oriented
d. A mixture
D c
69.
A plumbing parts manufacturer has distinct market segments (professional
versus do-it-yourself) that require different distribution channels. What type of
marketing organization should the firm use?
a. Matrix-oriented
c. Market-oriented
b. Product-oriented
d. A mixture
30
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Multiple Choice - Applied/Comprehensive/Integrative
D b
70.
A firm finds that its customers’ needs vary significantly by their industry focus.
The optimal marketing organization should be
a. functional.
c. product-oriented.
b. market-oriented.
d. matrix-oriented.
D d
71.
A company has these marketing executives: two brand managers, one market
research director, and three regional advertising managers. What marketing
organization format is it using?
a. Product-oriented
c. Functional
b. Decentralized
d. A mixture
D b
72.
An off-price retailer charges low prices for name-brand merchandise, does not
advertise, uses low-rent locations, and relies on self-service. Together, these
factors comprise the firm’s
a. differential advantage.
c. target market.
b. marketing mix.
d. corporate culture.
D d
73.
A maker of inexpensive computer software provides low-cost documentation
(that is available on the Web through a frequently asked questions and search
format), offers limited telephone support, and does not advertise. This strategy
enables the software provider to undercut competitors, while offering a highquality product. This marketing mix is
a. poorly integrated.
c. distinctive.
b. too expensive for the firm.
d. consistent.
E a
74.
Contingency plans are most often used with what type of factor?
a. Uncontrollable factor
b. Controllable factor
c. A factor controllable by marketing, but not top management
d. A factor controlled by top management, but not marketing
E c
75.
A firm with patent protection can utilize which competitive structure?
a. Pure competition
c. Monopoly
b. Monopolistic competition
d. Oligopoly
D a
76.
When deregulation makes it easier for new firms to enter a market,
a. an oligopoly changes into monopolistic competition.
b. oligopolistic competitive structures change to monopolies.
c. pure competition competitive structures change to monopolistic competition.
d. a monopoly changes to an oligopoly.
31
Chapter 2: The Environment in Which Marketing Operates
Multiple Choice - Applied/Comprehensive/Integrative
E c
77.
In an oligopoly situation, a firm should seek to
a. attain differential advantages through marketing mixes that are both
different from competitors and desirable to consumers.
b. lower prices to drive competitors out of the market.
c. differentiate its products on the basis of nonprice factors.
d. maintain its unique status.
D d
78.
An important characteristic of monopolistic competition is that
a. a kinked demand curve faces all firms.
b. few firms exist.
c. each firm has total control over price.
d. each firm seeks a differential advantage through any marketing factor.
D d
79.
In the most common competitive structure in the United States, each firm seeks
a
a. high price for its products.
c. cost advantage.
b. price war.
d. differential advantage.
E b
80.
In which competitive structure does no single firm have any control over price?
a. Monopoly
c. Oligopoly
b. Pure competition
d. Monopolistic competition
D a
81.
Which competitive structure is most applicable to food products and
commodities?
a. Pure competition
c. Monopoly
b. Monopolistic competition
d. Oligopoly
E a
82.
A major credit card provider views any form of payment (including cash, debit
cards, and checks ) as competition. This firm is defining its competition
a. in generic terms.
c. in narrow terms.
b. from a marketing mix perspective.
d. from a strategic perspective.
D a
83.
When a firm views competition in generic terms, it
a. evaluates indirect competitors.
c. practices marketing myopia.
b. evaluates only direct competitors.
d. engages in long-term planning.
32
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Multiple Choice - Applied/Comprehensive/Integrative
E b
84.
A law limiting the price discounts that a manufacturer can legally provide to an
important large retailer has the impact of
a. allowing companies much greater flexibility in implementing their
marketing mixes.
b. “maintaining a level playing field” for all players.
c. protecting consumers from deceptive company practices.
d. raising prices for all customers in the long run.
E d
85.
A person’s annual income rises by 10 percent, while the rate of inflation is 2
percent. Which of the following statements most accurately portrays this
information?
a. The person’s money income declined.
b. The cost of living index decreased.
c. The person’s real income decreased.
d. The person’s real income increased.
E a
86.
The use of sales analysis to periodically evaluate a firm’s marketing efforts
through studying sales, profit margins, and costs by market target is an example
of
a. feedback.
c. adaptation.
b. control.
d. assessment review.
E a
87.
When a manufacturer of high-speed modems monitors customer satisfaction
through a mail survey of recent buyers, it deals with which part of the marketing
environment?
a. Feedback
c. Controllable factors
b. Adaptation
d. Uncontrollable factors
E c
88.
An independent supermarket operator has decided to now stock bulk packages
of paper towels (12 rolls to a package) in response to their successful sale in
membership warehouse clubs. The supermarket operator is dealing with which
part of the marketing environment?
a. Corporate culture
c. Adaptation
b. Line of business
d. Feedback
33
Chapter 2: The Environment in Which Marketing Operates
Multiple Choice - Applied/Comprehensive/Integrative
D c
89.
A manufacturer of battery-operated watches has decided to introduce a line of
manual winding watches based upon high levels of interest among a small, but
important group of customers. This definition of its line of business indicates
that the firm
a. has a poor concept of its business.
b. is not customer-oriented.
c. is avoiding marketing myopia.
d. is using market segmentation.
D d
90.
A firm produces one model exercise machine, which is very successful. It
believes this machine will continue to be popular for at least five years.
Therefore, no other products are being planned for introduction. The firm argues
that “if it isn’t broken, don’t fix it.” The firm is engaged in
a. market segmentation.
c. target marketing.
b. marketing strategy adaptation.
d. marketing myopia.
True-False - Terminology/Concept
E F
91.
The marketing environment consists of these five parts: controllable factors,
uncontrollable factors, feedback, control, and adaptation.
E T
92.
The interaction of controllable and uncontrollable factors determines an
organization’s level of success or failure in reaching its goals.
D F
93.
During feedback, a firm changes its marketing plan so as to comply with the
uncontrollable environment.
E T
94.
Some controllable factors are directed by top management; these are not
controlled by marketers.
D T
95.
A firm’s line of business represents a definition of the business opportunities in
which the firm seeks to be involved.
E F
96.
A firm can determine its relative degree of success or failure by comparing its
overall objectives with its marketing objectives.
E F
97.
The role of marketing in an organization is high when marketing is equated with
sales.
34
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True-False - Terminology/Concept
E T
98.
A firm’s corporate culture provides management and employees with acceptable
standards of performance and behavior.
D F
99.
Different firms in the same industry usually have the same corporate culture.
D F 100.
A firm’s corporate culture has a weak influence on what marketing decisions are
acceptable.
E F 101.
A firm with multiple target markets requires one generalized marketing plan.
E F 102.
In general, a firm’s overall objectives are more customer-oriented than those set
by top management.
E T 103.
A firm’s set of unique marketing-related features that cause its customers to
patronize it and not its competitors makes up its differential advantage.
D T 104.
A firm’s ability to charge a higher-than-market price in a monopolistic
competition competitive environment is directly related to the size of its
differential advantage.
D T 105.
A differential advantage can involve any element of a firm’s marketing mix.
E F 106.
A functional marketing organization assigns responsibility on the basis of
geographic markets and customer types.
E T 107.
A firm’s marketing organization can be comprised of a combination of
functional, product-oriented, and market-oriented forms.
E F 108.
A firm’s marketing mix consists of four elements: product, packaging,
promotion, and price.
D T 109.
Through its marketing mix, a company seeks to appeal to its target market(s).
E F 110.
The organization of the marketing department is a component of the marketing
mix.
D T 111.
While selection of a target market is a controllable factor to marketers, the
overall characteristics of the population represent an uncontrollable factor.
D T 112.
As a patent expires, a firm’s competitive structure can change from a monopoly
to monopolistic competition.
35
Chapter 2: The Environment in Which Marketing Operates
True-False - Terminology/Concept
E F 113.
Oligopolies are characterized by ease of competitive entry.
E T 114.
With monopolistic competition, firms seek to establish and maintain differential
advantages through a distinctive marketing mix.
E F 115.
The most common form of competitive structure in the United States is
oligopoly.
D F 116.
The market for a commodity product (such as agricultural produce) most closely
resembles monopolistic competition.
E T 117.
Federal legislation affecting marketing practices can be classified as: antitrust,
discriminatory pricing, and unfair trade practices; consumer protection; and
deregulation.
E F 118.
The growth of a nation’s economy is generally measured through the consumer
price index.
D F 119.
A marketer focusing on changes in the cost of living over a 10-year period
should examine changes in money income.
D T 120.
While paid advertising is controllable, news stories about a company are
uncontrollable by the firm.
True-False - Applied/Comprehensive/Integrative
D F 121.
The use of sales call reports by a sales manager to assess customers’ attitudes
toward a new product is an example of adaptation.
D T 122.
The objectives of marketing, such as reducing lost sales, may conflict with a
finance department objective of minimizing the investment in inventory.
D T 123.
By clearly defining a company’s line of business, a large firm places restrictions
on potential acquisitions that the firm may seek.
D F 124.
A conglomerate has a very clear definition of its line of business.
E T 125.
When a wholesaler decides to become a general merchandise wholesaler, rather
than a specialty wholesaler, it is revising its line of business.
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Full file at http://testbankshop.eu/Marketing-Marketing-in-the-21st-Century-11th-Edition-Evans-TestBank
True-False - Applied/Comprehensive/Integrative
D T 126.
A company’s overall objective of increasing sales by 9 percent can be translated
into marketing objectives such as increasing the average purchase by customers
by 5 percent and increasing the number of loyal customers (who purchase goods
12 times a year or more) by 10 percent.
E T 127.
Because of a firm’s corporate culture, product managers may have to avoid risky
ventures and concentrate on products that have higher potential in the short
term.
D T 128.
A target market cannot consist of the mass market.
D T 129.
A firm’s differential advantage of being a low-cost provider may be appealing to
one target market (economical consumers who are concerned primarily with
price) but undesirable to another target market (status-conscious consumers who
are concerned with customer service and store atmosphere).
D T 130.
A retailer with a strong differential advantage can attract customers from greater
distances than a retailer with a “me-too” philosophy.
D T 131.
A functional marketing organization is the best form of organization for a firm
seeking to develop staff specialists.
E F 132.
A firm realizes that both domestic and international consumers are important
segments, with each requiring a separate marketing plan. The most appropriate
marketing organization for this firm is functional.
E F 133.
A travel magazine has five regional sales offices for advertising throughout the
United States. Its sales organization is organized in a product-oriented format.
D T 134.
A disadvantage of all marketing organizations except functional is the need for
separate marketing staffs for each decentralized organizational unit.
D T 135.
A dry cleaner charges a 10 percent premium over traditional market rates on the
basis of its high traffic and convenient location near a major train station, its
same-day service, and its providing simple tailoring services for free (such as
replacing missing or cracked buttons on shirts) on all cleaning services. The
firm’s total marketing program is well integrated.
E F 136.
Contingency plans help a firm plan for controllable factors.
D T 137.
A tire manufacturer needs a contingency plan to reflect a possible product recall.
37
Chapter 2: The Environment in Which Marketing Operates
True-False - Applied/Comprehensive/Integrative
D T 138.
An appliance manufacturer that imports significant quantities of merchandise
from a foreign country needs a contingency plan in the event the value of the
U.S. dollar drops relative to the country where the appliances are imported from.
E T 139.
While a real-estate firm specializing in housing for senior citizens can define its
target market as retired adults over 75 years old that live within a 25-mile radius
of its facilities, it cannot control the number of retired adults or their purchase
behavior.
D F 140.
When a patent for a drug product expires, the competitive structure for the drug
changes from monopolistic competition to pure competition.
D T 141.
Through deregulation, a firm’s competitive structure can be changed from
oligopoly to monopolistic competition.
D T 142.
A firm in a pure competition competitive structure can reposition itself as being
in a monopolistic competition competitive structure through a differential
advantage.
E F 143.
A firm that defines its competition in generic terms is more likely to practice
marketing myopia than a firm that defines its competition narrowly.
D T 144.
In inflationary times, real income provides a better measure of a consumer’s
spending ability than actual income.
D T 145.
The change in a person’s standard of living between two time periods can be
best studied through evaluating his/her real income in each period.
D F 146.
A person’s annual earnings rise from $100,000 to $125,000, while the inflation
rate rises by 3 percent. As a result, his/her real income increases by 25 percent.
E T 147.
After they accept an advertisement, independent media represent a controllable
factor.
E T 148.
Consumer complaint letters are a good source of feedback for a marketingoriented firm.
D F 149.
A firm can effectively implement its marketing plan through high feedback but
little or no adaptation.
E F 150.
A firm practicing marketing myopia defines its line of business too broadly to
have a distinct competitive advantage.
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Full file at http://testbankshop.eu/Marketing-Marketing-in-the-21st-Century-11th-Edition-Evans-TestBank
Essay
151.
Describe the marketing environment for a supermarket chain located in a major
city that seeks to appeal to consumers seeking appealing ready-to-heat meal
solutions, as well as those consumers wanting organic fruits and vegetables. Be
complete in your answer.
152.
What factors are controllable by top management but not by marketers? What is
the significance of this for marketers?
153.
Discuss the line of business for each of the following:
a. Your college/university store.
c. Your local library.
b. A local pizza shop.
d. McDonald’s.
154.
How should the corporate culture of an electric utility change as a result of
deregulation?
155.
Define the term “differential advantage.” What differential advantages could a
local mechanic have in contrast to a quick-change oil and lube franchise?
156.
Describe the advantages and disadvantages of each of the following marketing
organizational forms:
a. Functional.
b. Product-oriented.
c. Market-oriented.
157.
a. Describe the marketing mix for a retailer specializing in catering parties held
at consumers’ home location.
b. Describe the marketing mix for a used car dealer specializing in low mileage
compact cars.
158.
From the perspective of an individual firm, distinguish between pure
competition and monopolistic competition on the basis of the number of firms,
the control over the marketing plan, the ease of entry, differential advantages,
and the key marketing task.
159.
Are marketers more interested in aggregate money income data or in real
income data by market segment (such as geographic area)? Explain the value of
each type of data.
160.
a. Describe the concept of marketing myopia.
b. How can a major manufacturer of commercial grade central air-conditioning
equipment avoid marketing myopia?
39