Download Chapter 1—An Overview of Marketing

SECTION 1 POOL ITEMS
Chapter 1—An Overview of
Marketing
MULTIPLE CHOICE
1. The term marketing refers to:
a. new product concepts and
improvements
b. selling
c. advertising and promotion
activities
d. a philosophy that stresses
customer satisfaction
e. planning sales campaigns
ANS: D PTS: 1 REF:3
OBJ: 01-1 TYPE: Def
TOP: AACSB Reflective
SECTION 1 POOL ITEMS
2. A business is concerned with
many day-to-day activities. Some
of the most important of these
activities are the planning and
development of a product, its
pricing policy, and the
distribution strategy. These
activities are all a part of:
a. a control system
b. marketing
c. accounting
d. production
e. human resources
ANS: B
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3. _____ is a philosophy, an
attitude, a perspective, or a
management orientation that
stresses customer satisfaction.
a. Planning strategy
b. Customer management
c. Marketing
d. A control system
e. Reciprocity
ANS: C PTS: 1 REF:3
OBJ: 01-1 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Product
SECTION 1 POOL ITEMS
4. The American Marketing
Association's definition of
marketing:
a. is limited to promotional
activities
b. focuses on the value of
empowerment, teamwork, and
customer value
c. shows how marketing benefits
the marketer
d. relies on the synergy created
by exchange
e. includes the processes
marketers use to establish and
maintain relationships with
customers
ANS: E
SECTION 1 POOL ITEMS
5. _____ is a key ingredient in the
philosophy of marketing; it occurs
when people give up something in
order to receive something that
they would rather have.
a. Exchange
b. Synergy
c. Transformation
d. Leveraging
e. Reciprocity
ANS: A PTS: 1 REF:3-4
OBJ: 01-1 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Product
SECTION 1 POOL ITEMS
6. In order for exchange to occur:
a. a complex societal system
must be involved
b. organized marketing
activities must also take
place
c. a profit-oriented
organization must be
involved in the process
d. money or other legal tender
is required
e. each party must have
something the other party
considers to be valuable
ANS: E
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9. For an exchange to take place:
a. there must be at least two
parties involved
b. money must be used in the
transaction
c. each party must feel
obligated to accept the offer
d. at least one party must have
something of value that the
other party desires
e. neither party must
communicate with the other
ANS: A
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10. Indonesian logging companies
harvest the rainforests for timber
and assume that a market exists
for their products. The typical
Indonesian logging company has
a(n) _____ orientation.
a. exchange
b. product
c. production
d. sales
e. environmental
ANS: C
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11. The concept of exchange is
important to marketing because:
a. if all the conditions for an
exchange are in place, then
the exchange will be
completed
b. exchange provides money to
marketers
c. marketing activities help to
create exchange
d. marketing activities are a
requirement for exchange to
take place
e. money is the only medium of
exchange for business
marketers
ANS: C
SECTION 1 POOL ITEMS
14. Which of the following is NOT
a marketing management
philosophy?
a. sales orientation
b. societal marketing
orientation
c. market orientation
d. profitability orientation
e. production orientation
ANS: D
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15. Firms with a _____ orientation
focus on the internal capabilities
of the firm rather than on the
desires and needs of the
marketplace.
a. sales
b. production
c. market
d. customer
e. customer-benefit
ANS: B
PTS: 1 REF:4-5
OBJ: 01-2 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Product
SECTION 1 POOL ITEMS
16. A company that sets its goals
and strategies based on what its
current equipment can produce,
what products engineering can
design, and what the company
itself can do best, has a(n) _____
orientation.
a. marketplace
b. sales
c. market
d. exchange
e. production
ANS: E
PTS: 1 REF:4-5
OBJ: 01-2 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Strategy|
TB&E Model Product
SECTION 1 POOL ITEMS
19. A firm with a production
orientation is most likely to
survive if:
a. there are many small
competitors in the
marketplace
b. demand for the product it
produces exceeds supply
c. the needs of the marketplace
are constantly shifting
d. supply for the product it
produces exceeds demand
e. any of the above conditions
exist
SECTION 1 POOL ITEMS
ANS: B
The production orientation can
survive in the short term under a
variety of conditions; however, if
market needs change, long-term
survival is difficult.
PTS: 1 REF: 4-5 OBJ: 01-2
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
20. A firm that adopts a(n) _____
orientation to marketing will fail
to consider whether what the firm
produces most efficiently also
meets the needs of the
marketplace.
a. customer
SECTION 1 POOL ITEMS
b.
c.
d.
e.
exchange
product
market
production
ANS: E
The production orientation forces
a company to build whatever it
builds best, that is, whatever it
has the experience and expertise
in doing.
PTS: 1 REF: 4-5 OBJ:
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
01-2
SECTION 1 POOL ITEMS
22. The _____ orientation assumes
people will buy more if aggressive
selling techniques are used.
a. market
b. sales
c. customer
d. production
e. exchange
ANS: B
The sales orientation assumes
aggressive selling is what is
needed to increase demand.
PTS: 1 REF: 5
TYPE: Def
OBJ:
01-2
SECTION 1 POOL ITEMS
TOP: AACSB Reflective
Thinking| TB&E Model Pricing
23. A _____ orientation assumes
marketing means selling things
and collecting money. It also
assumes people will buy more
goods and services if aggressive
marketing techniques are used.
a. sales
b. production
c. market
d. customer
e. marketplace
ANS: A PTS: 1 REF:5
OBJ: 01-2 TYPE: Def
TOP: AACSB Reflective
SECTION 1 POOL ITEMS
Thinking| TB&E Model
Customer
25. If a company uses a sales
orientation, consumer complaints
would most likely result in:
a. a modification of the sales
presentation
b. product reinvention
c. continuous market research
d. philanthropy
e. attempts to cut production
costs
ANS: A
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The sales orientation relies on
aggressive sales techniques to fuel
business.
PTS: 1 REF: 5
OBJ: 01-2
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
29. Companies that rely on the
marketing concept and that have
implemented a market orientation
strategy recognize that:
a. price is the most important
variable for customers
b. sales depend predominantly
on an aggressive sales force
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c.
d.
e.
what the customer thinks he
or she is buying is what is
important
a company has to apply
scientific management
techniques to survive
selling and marketing are
essentially the same thing
ANS: C
The perceived product and
perceived value are what the
customer is buying, and the
marketing concept and market
orientation have endeavored to
understand those perceptions.
PTS: 1 REF: 5-6 OBJ:
01-2
SECTION 1 POOL ITEMS
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
30. A company that has a market
orientation and adheres to the
marketing concept does NOT:
a. integrate all the activities of
the firm to satisfy customer
wants
b. focus on consumer needs
and wants
c. differentiate the firm's
products from its
competitor's products
d. fuel sales growth through
the application of aggressive
sales techniques
SECTION 1 POOL ITEMS
e.
concentrate on long-term
goal achievement (such as
profits and growth) for the
firm
ANS: D
Aggressive sales techniques are
part of the sales orientation and
are not needed if a company is
meeting needs and wants of its
customers.
PTS: 1 REF: 5
OBJ: 01-2
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Strategy|
TB&E Model Product
SECTION 1 POOL ITEMS
31. The statement, "Marketing
should be introduced at the
beginning rather than the end of
the production cycle and
integrated into each phase of the
business," is consistent with a(n)
_____ orientation.
a. production
b. market
c. retail
d. sales
e. enterprise
ANS: B
Understanding the competitive
arena and competitors' strengths
and weaknesses is a critical
component of market orientation.
SECTION 1 POOL ITEMS
PTS: 1 REF: 5-6 OBJ: 01-2
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Product
36. The marketing concept
involves:
a. focusing on customers'
wants so that the
organization can distinguish
its product (or products)
from the competitors'
products
b. satisfying management's
needs and wants with the
idea of maximizing profits in
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c.
d.
e.
the short run
selling as much product as
possible under the
assumption people will buy
more goods and services if
aggressive selling techniques
are used
selling as much as possible
under the assumption
consumers will buy more at
lower prices
focusing on production in
order to increase product
quality and lower prices
ANS: A PTS: 1 REF:5-6
OBJ: 01-2 TYPE: Def
TOP: AACSB Reflective
SECTION 1 POOL ITEMS
Thinking| TB&E Model
Customer
37. The marketing concept
includes a goal orientation to
remind managers that:
a. achieving long-term
organizational goals is as
important as satisfying
customers
b. customers must be satisfied
no matter what the longterm effect on the firm
c. the only reason for any
business to exist is to make a
profit
d. the objective is to find a
target market that differs
from that of the competition
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e.
functional integration of all
departments is useful but
not essential
ANS: A
The goal orientation refers to the
company's goals, such as profit,
growth, service, and survival.
PTS: 1 REF: 5-6 OBJ:
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
01-2
SECTION 1 POOL ITEMS
38. The marketing concept
stresses that the social and
economic justification for an
organization's existence is the
satisfaction of customer needs and
wants while:
a. producing a good or service
at the lowest possible cost
b. improving the general
standard of living
c. constantly increasing sales
volumes
d. applying scientific
management techniques to
improve efficiency
e. simultaneously meeting
organization objectives
SECTION 1 POOL ITEMS
ANS: E
The marketing concept holds that
the needs and wants of both the
customer and the firm be served.
PTS: 1 REF: 5-6 OBJ:
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
01-2
SECTION 1 POOL ITEMS
40. An organization with a(n)
_____ believes that it exists not
only to satisfy customer wants
and needs and to meet
organizational objectives but also
to preserve or enhance
individuals' and society's longterm best interests.
a. sales orientation
b. market orientation
c. ethical business mission
d. focused target market
strategy
e. societal orientation
ANS: E
PTS: 1 REF:6
OBJ: 01-2 TYPE: Def
TOP: AACSB Diversity| TB&E
SECTION 1 POOL ITEMS
Model Customer
45. Which of the following
statements about the societal
orientation is true?
a. Companies that protect the
environment by using allnatural materials in their
products are showing a
societal marketing
orientation.
b. Marketers cannot deliver all
benefits sought by
customers because these
benefits may not be in the
long-term best interests of
the customers.
SECTION 1 POOL ITEMS
c.
d.
e.
The societal marketing
concept is an important
refinement of the market
concept.
Organizations have both a
social and economic
justification for their
existence.
All of these statements about
the societal orientation are
true.
ANS: E
PTS: 1 REF:6
OBJ: 01-2 TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Research|
TB&E Model Customer
SECTION 1 POOL ITEMS
48. Organizations that sell
products that are often unsought
(such as life insurance and
retirement plans) may find
themselves adopting a _____
orientation because the companies
are marketing products that most
people do not want.
a. sales
b. production
c. marketing
d. product
e. customer
ANS: A
SECTION 1 POOL ITEMS
Aggressive selling is sometimes
used by companies that sell
products their customers do not
want to buy.
PTS: 1 REF: 5
OBJ:
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model
Promotion
01-2
57. _____ gives customers the
feeling their concerns are being
addressed and at the same time
gives employees the feeling their
expertise matters to management.
a. Management-employee
synergy
b. Organizational entropy
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c.
d.
e.
Managerial reciprocity
Empowerment
Delegation
ANS: D PTS: 1 REF:9
OBJ: 01-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
58. Market-oriented firms
primarily focus their efforts upon:
a. improving the technological
skills and competitive
advantages of the firm
b. satisfying the organization's
needs for low overhead
c. achieving the company’s
SECTION 1 POOL ITEMS
d.
e.
societal responsibilities
inexpensively
distributing goods and
services
satisfying the wants and
needs of their customers
ANS: E
Market-oriented firms are
focused outward toward their
customers.
PTS: 1 REF: 6
OBJ:
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
01-3
SECTION 1 POOL ITEMS
59. Which of the following
statements about a typical salesoriented business is true?
a. The company develops its
products to meet the needs
of specific groups of people.
b. The primary goal of the
company is profit through
customer satisfaction.
c. The company invests the
majority of its resources in
promoting its products and
services.
d. The company is in business
to satisfy customers' wants
and needs and deliver
superior value.
e. All of these statements about
a typical sales-oriented
SECTION 1 POOL ITEMS
business are true.
ANS: C
See Review Learning Outcome 3.
PTS: 1 REF: 6 | 10 OBJ: 01-3
TYPE: Comp
TOP: AACSB Analytic| TB&E
Model Customer
60. _____ is defined as the
relationship between benefits and
the sacrifice necessary to obtain
those benefits.
a. Opportunity cost
b. Marketing utility
c. Market quality
d. Satisfaction percentage
SECTION 1 POOL ITEMS
e.
Customer value
ANS: E
PTS: 1 REF:6
OBJ: 01-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
61. Marketers interested in
offering customer value can:
a. offer products that perform
b. give the consumer facts
c. offer organization-wide
commitment to service and
after-the-sale support
d. avoid unrealistic pricing
e. do all of these
SECTION 1 POOL ITEMS
ANS: E
PTS: 1 REF:6-7
OBJ: 01-3 TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Pricing|
TB&E Model Product| TB&E
Model Customer
64. When customer
expectations regarding product
quality, service quality, and valuebased price are met or exceeded,
_____ is created.
a. a value line
b. a quality rift
c. planning excellence
d. customer satisfaction
e. expectation satisfaction
SECTION 1 POOL ITEMS
ANS: D PTS: 1 REF:7
OBJ: 01-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Pricing|
TB&E Model Product| TB&E
Model Customer
66. _____ is a strategy that entails
forging long-term partnerships
with customers.
a. Commitment selling
b. Relationship marketing
c. Transactional marketing
d. Market engineering
e. Organization-customer
synergy
SECTION 1 POOL ITEMS
ANS: B
PTS: 1 REF:8
OBJ: 01-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
71. Which of the following
measures would be the best
indicator of whether your
organization's personnel have a
customer orientation?
a. Ask each employee's boss if
that person is customeroriented.
b. Assess each employee's
SECTION 1 POOL ITEMS
c.
d.
e.
impact on the profitability
of the firm.
Survey customers on how
oriented the organization's
personnel are to customer
needs and desires.
Assess how well each
employee has contributed to
the marketing success of the
firm by examining every
financial statement created
by the organization.
Test employees on their
knowledge of customer
service techniques.
ANS: C
SECTION 1 POOL ITEMS
The key to assessing how
customer-oriented a firm's
personnel are is to ask the
customer. Only the customer can
provide this type of information.
PTS: 1 REF: 8
OBJ:
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
01-3
73. Some market-oriented firms
give employees expanded
authority to solve customer
problems on the spot. This is
known as:
SECTION 1 POOL ITEMS
a.
b.
c.
d.
e.
training
deregulation
empowerment
commissioning
mediating
ANS: C PTS: 1 REF:9
OBJ: 01-3 TYPE: Def
TOP: AACSB Communication|
TB&E Model Customer
76. _____ is the collaborative
efforts of people to achieve
common objectives.
a. Effort training
b. Teamwork
SECTION 1 POOL ITEMS
c.
d.
e.
Empowerment
OJT training
Mediation
ANS: B
PTS: 1 REF:9
OBJ: 01-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
77. Dofasco, Inc. is a Canadian
steel manufacturer. According to
its CEO, "People can make a
phenomenal difference if you stop
telling them to come to work, put
their brains in a box, and do
whatever the supervisor says. We
let our employees work in teams."
This quote implies that by using
teamwork, Dofasco:
a. operates successfully using a
production orientation
b. provides its customer with a
high level of satisfaction
c. has a high employee
turnover rate
d. does not deliver superior
customer service
e. has a sales orientation
SECTION 1 POOL ITEMS
ANS: B
Teamwork is one way a company
with a market orientation creates
customer satisfaction.
PTS: 1 REF: 9
OBJ: 01-3
TYPE: App
TOP: AACSB Analytic| TB&E
Model Customer
SECTION 1 POOL ITEMS
78. Dofasco, Inc. is a Canadian
steel manufacturer. According to
its CEO, "People can make a
phenomenal difference if you stop
telling them to come to work, put
their brains in a box, and do
whatever the supervisor says. We
let our employees work in teams."
Teamwork would benefit Dofasco
by:
a. enhancing employee
performance
b. doing away with the need
for empowerment
c. creating managerial entropy
d. refining the definition of
customer value
e. doing all of these
SECTION 1 POOL ITEMS
ANS: A
Enhanced employee performance
leads to improved customer
satisfaction.
PTS: 1 REF: 9
OBJ: 01-3
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
79. Redefining the business
mission of a mattress
manufacturer as "a good night's
sleep," rather than stating the
mission as "the manufacture of
high-quality mattresses," will:
a. not stimulate an awareness
of changes in consumer
SECTION 1 POOL ITEMS
b.
c.
d.
e.
desires
be too broad a statement to
be of any real use in serving
customers
stifle creativity in
discovering opportunities to
serve customers
help ensure the firm retains
its focus on consumers and
does not become
preoccupied with its
products and internal needs
ensure the core products
will be retained
ANS: D
SECTION 1 POOL ITEMS
The broader business mission of
"a good night sleep" will
stimulate innovation and
creativity because not all sleep
aids are mattresses. It will lead
the company to further growth.
PTS: 1 REF: 9
OBJ:
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
01-3
SECTION 1 POOL ITEMS
80. One of the reasons given for
the decline of the passenger rail
industry in the United States is
that the industry defined its
mission as trains and not as
transportation sources. The
railroad industry failed to:
a. define its mission in terms of
the benefits its customers
seek
b. ignore the marketing
concept of serving customer
needs and wants
c. realize "customers only
want what they know"
d. have a sales orientation
e. empower the consumer
SECTION 1 POOL ITEMS
ANS: A
A market-oriented firm defines its
business in terms of the benefits
its customers seek. Because of the
limited way the railroad industry
defined its business, it missed an
opportunity to define itself in
terms of the benefits customers
were seeking.
PTS: 1 REF: 9-10 OBJ:
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
01-3
SECTION 1 POOL ITEMS
81. When light bulbs were first
introduced, manufacturers
offered one size for all light
fixtures. Today you can buy light
bulbs in different shapes,
different wattages, and different
colors. They also differ as to how
much electricity they use and how
many hours of illumination they
will provide before failing. Light
bulb manufacturers:
a. miss sales by not
concentrating on the
average customer
b. recognize different customer
groups have different needs
and wants
c. are sales-oriented companies
d. are companies that would
SECTION 1 POOL ITEMS
e.
state they are in the business
of selling bulbs
are aiming at a goal of profit
through maximum sales
volume
ANS: B
One way to implement the
marketing concept is to
concentrate on the needs of
specific groups of customers.
PTS: 1 REF: 5-6 OBJ: 01-3
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Product
SECTION 1 POOL ITEMS
82. One way to identify the
orientation of a firm is to examine
its primary goal. If a firm seeks to
achieve profitability through sales
volume, it would probably be:
a. promotion-oriented
b. price-oriented
c. sales-oriented
d. production-oriented
e. retail-oriented
ANS: C PTS: 1 REF:5 | 11
OBJ: 01-3 TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
87. _____ is the primary tool used
by a sales-oriented organization to
achieve its corporate goals.
a. Price
b. Promotion
c. Product design
d. Place (distribution)
e. Production
ANS: B
A sales-oriented organization
seeks to generate sales volume
based upon intensive promotional
activities.
PTS: 1 REF: 10 OBJ:
TYPE: Def
TOP: AACSB Reflective
01-3
SECTION 1 POOL ITEMS
Thinking| TB&E Model
Promotion
88. For a market-oriented
organization, the primary tool
used to achieve its goals is:
a. a blend of product, place,
promotion, and pricing
decisions
b. price
c. product design
d. place (distribution)
e. promotion
ANS: A
SECTION 1 POOL ITEMS
A market-oriented organization
seeks to generate sales volume
based on serving customer needs
and wants, utilizing all of the
elements of the marketing mix to
do so.
PTS: 1 REF: 10 OBJ: 01-3
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model
Distribution| TB&E Model
Pricing| TB&E Model Product|
TB&E Model Promotion
94. What is the fundamental
objective of most businesses?
SECTION 1 POOL ITEMS
a.
b.
c.
d.
e.
employee empowerment,
teamwork, and relationship
marketing
satisfied stakeholders
low costs and high quality
customer loyalty and
retention
survival, profits, and growth
ANS: E
The use of marketing allows
businesses to achieve this
objective.
PTS: 1 REF: 11 OBJ: 01-4
TYPE: Comp
TOP: AACSB Analytic| TB&E
Model Strategy
SECTION 1 POOL ITEMS
95. Which if the following is NOT
a good reason to study
marketing?
a. Marketing teaches
businesses how to sell
products that people do not
need.
b. Marketing plays an
important role in society,
coordinating the huge
numbers of transactions
needed to provide goods and
services.
c. Marketing is a key function
in business.
d. Marketing offers
outstanding career
opportunities.
SECTION 1 POOL ITEMS
e.
Marketing affects your dayto-day life as a consumer.
ANS: A
That marketing enables
companies to sell even bad and
worthless goods is a myth.
PTS: 1 REF: 11-12 OBJ: 01-4
TYPE: Comp
TOP: AACSB Analytic| TB&E
Model Strategy
96. Which of the following
statements contains one good
reason for studying marketing?
a. Marketing teaches
businesses how to sell
SECTION 1 POOL ITEMS
b.
c.
d.
e.
products that people do not
need.
Marketing deals with
transactions--not
relationships.
Marketing has little impact
on your day-to-day life.
Marketing offers
outstanding career
opportunities.
The study of marketing
helps you to better
understand why the job
market is shrinking.
ANS: D
SECTION 1 POOL ITEMS
Marketing plays an important
role in society, coordinating the
huge numbers of transactions
needed to provide goods and
services. Marketing affects your
day-to-day life as a consumer.
PTS: 1 REF: 11-12 OBJ: 01-4
TYPE: Comp
TOP: AACSB Analytic| TB&E
Model Strategy
SECTION 1 POOL ITEMS
Chapter 3
MULTIPLE CHOICE
1. _____ is the concern of business
for the long-range welfare of both
the company and its relationships
to the society within which it
operates.
a. Consumerism
b. Corporate social
responsibility
c. Cultural sensitivity
d. Conventional morality
e. Environmental
consideration
ANS: B
PTS: 1 REF:29
OBJ: 03-1 TYPE: Def
SECTION 1 POOL ITEMS
TOP: AACSB Ethics| TB&E
Model Strategy
3. Corporate social responsibility
is defined as the:
a. belief that the legal system
defines ethical behavior
b. development of inclusive
codes of ethics
c. rules by which social
rewards are attained
d. concern for social welfare by
businesses
e. coordination of social
programs for publicity
purposes
SECTION 1 POOL ITEMS
ANS: D PTS: 1 REF:29
OBJ: 03-1 TYPE: Def
TOP: AACSB Ethics| TB&E
Model Strategy
4. Corporate social
responsibility:
a. is mandated by federal law
b. requires companies to
sacrifice economic
performance for the sake of
their stakeholders
c. does not influence
competition
d. may not always result in
profit and growth
e. is unaffected by
environmental changes
SECTION 1 POOL ITEMS
ANS: D PTS: 1 REF:29
OBJ: 03-1 TYPE: Comp
TOP: AACSB Ethics| TB&E
Model Strategy
7. _____ is the idea that socially
responsible companies will
outperform their peers by
focusing on the world's social
problems and viewing them as
opportunities to build profit and
help the world at the same time.
a. Sustainability
b. Philanthropy
c. Cause marketing
d. Creative ethics
SECTION 1 POOL ITEMS
e.
International ethics
ANS: A PTS: 1 REF:29
OBJ: 03-1 TYPE: Def
TOP: AACSB Ethics| TB&E
Model Strategy
TOP: AACSB Ethics| TB&E
Model Strategy
9. The pyramid of corporate
social responsibilities contains all
of the following components
EXCEPT:
a. economic responsibilities
b. ethical responsibilities
c. cultural responsibilities
d. legal responsibilities
SECTION 1 POOL ITEMS
e.
philanthropic
responsibilities
ANS: C
See Review Learning Outcome 1.
PTS: 1 REF: 29-30 OBJ: 03-1
TYPE: Def
TOP: AACSB Ethics| TB&E
Model Strategy
15. The four components of the
pyramid of corporate social
responsibility are:
a. sustainability, creativity,
profit, and culture
b. organizational culture,
SECTION 1 POOL ITEMS
c.
d.
e.
creativity imagery,
economic performance, and
objectivity
organizational, financial,
social, and cultural
responsibilities
sustainability, legality,
creativity, and competition
economic, legal, ethical, and
philanthropic
responsibilities
ANS: E
PTS: 1 REF:29-30
OBJ: 03-1 TYPE: Def
TOP: AACSB Ethics| TB&E
Model Strategy
SECTION 1 POOL ITEMS
16. Which of the following
statements describes ethics?
a. Ethics are the moral
principles or values that
generally govern the
conduct of an individual.
b. Ethics is the standard of
behavior by which conduct
is judged.
c. Morals are a foundation for
ethical behavior.
d. Ethical values are situation
specific and time oriented.
e. All of the statements
describe ethics.
ANS: E
PTS: 1 REF:30
OBJ: 03-2 TYPE: Comp
SECTION 1 POOL ITEMS
TOP: AACSB Ethics| TB&E
Model Strategy
17. Which of the following sayings
best describes how people with
conventional morality act?
a. Don't put all of your eggs in
one basket.
b. When in Rome, do as the
Romans do.
c. Be wary of strangers
bearing gifts.
d. A rolling stone gathers no
moss.
e. Don't count your chickens
before they hatch.
ANS: B
PTS:
1 REF:31
SECTION 1 POOL ITEMS
OBJ: 03-2 TYPE: Comp
TOP: AACSB Ethics| TB&E
Model Strategy
20. The use of ethical decision
making:
a. can be influenced by top
managers
b. is influenced by the
probability of harmful
outcomes
c. depends on the number of
people to be affected
d. depends on the magnitude of
possible consequences
e. is accurately described by
all of the choices
SECTION 1 POOL ITEMS
ANS: E
PTS: 1 REF:31
OBJ: 03-2 TYPE: Comp
TOP: AACSB Ethics| TB&E
Model Strategy
22. Which of the following factors
does NOT tend to influence
ethical decision making and
judgments?
a. probability of a harmful
outcome
b. length of time between
decision and the onset of
consequences
c. level of multiculturalism
d. number of people to be
affected
SECTION 1 POOL ITEMS
e.
potential magnitude of the
consequences
ANS: C PTS: 1 REF:31
OBJ: 03-2 TYPE: Comp
TOP: AACSB Ethics| AACSB
Diversity| TB&E Model Strategy
24. A human resources manager is
creating a code of ethics for the
employees of the retirement home
she works for. Which of the
following is NOT an ethics
principle she should keep in mind
as she creates this code?
a. The principles should not
SECTION 1 POOL ITEMS
b.
c.
d.
e.
upset current retirement
home workers and future
job applicants.
Any decisions should be fair
to all concerned: retirement
home nurses, cleaning
personnel, and
administrative staff.
Input on the code should be
gained from other
knowledgeable individuals
or groups.
Principles can deviate from
common practices because
of the prestigious nature of
the facility.
She should not have to pull
rank or use coercion to
implement her ethics code.
SECTION 1 POOL ITEMS
ANS: D
An unethical code would presume
that the company is an exception
to a common practice in the
industry.
PTS: 1 REF: 31-32 OBJ: 03-2
TYPE: Comp
TOP: AACSB Ethics| TB&E
Model Strategy
25. A(n) _____ is a defined group
that managers feel is most likely
to buy a firm's product.
a. target market
b. buying center
c. aggregated unit
SECTION 1 POOL ITEMS
d.
e.
consumer cluster
demographic sample
ANS: A PTS: 1 REF:32
OBJ: 03-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
27. Which of the following
statements best describes the
typical target market?
a. A target market will remain
stable over time, with the
same group of consumers.
b. Target markets change over
time as consumers drop in
SECTION 1 POOL ITEMS
c.
d.
e.
or out of the market, and as
tastes change.
Target markets are not
strongly affected by changes
in the external environment.
Target markets only change
when the features and
benefits of the product
offering change.
Target markets cannot be
specifically defined
according to age, income, or
location because these
factors are continually
changing.
ANS: B
SECTION 1 POOL ITEMS
Target markets are defined and
described, but they are always
changing in response to
environmental changes.
PTS: 1 REF: 32 OBJ:
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
03-3
29. The external environment:
a. can be controlled in much
the same manner as the
internal marketing mix
b. cannot be influenced by
marketing managers
c. does not change over time
SECTION 1 POOL ITEMS
d.
e.
does not have an impact on
Fortune 500 companies
must be continually
monitored by marketing
managers
ANS: E
PTS: 1 REF:32
OBJ: 03-3 TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
30. The external environment is a
strong influence on a target
market and can be a source of
_____ for the marketing manager.
a. opportunities and threats
b. threats and strengths
c. environmental loopholes
SECTION 1 POOL ITEMS
d.
e.
opportunities and
weaknesses
product myopia
ANS: A
The external environment can
provide opportunities to serve
new and changing needs, as well
as warnings about changes that
could threaten the current
position of the firm. Students will
need to remember what a SWOT
analysis is to answer this question.
PTS: 1 REF: 32 OBJ:
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
03-3
SECTION 1 POOL ITEMS
Customer
31. Marketing managers cannot
control _____, but they can at
times influence it.
a. where advertising is placed
b. the external environment
c. the sales force
d. the distribution strategy
e. how products are priced
ANS: B
The external environment is
basically uncontrollable, but the
other four answers are part of the
marketing mix.
PTS: 1 REF: 32-33 OBJ: 03-3
SECTION 1 POOL ITEMS
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
33. What is apparently the most
difficult external variable for
marketing managers to forecast,
influence, or integrate into
marketing plans?
a. technology
b. social factors
c. demography
d. competition
e. economic conditions
ANS: B
SECTION 1 POOL ITEMS
Social factors and changes are
difficult to foresee, because they
are usually slow and/or small
changes. Also, it is very difficult
for one company to affect social
factors in any appreciable
manner.
PTS: 1 REF: 33 OBJ:
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Marketing Plan
03-4
SECTION 1 POOL ITEMS
35. When a company engages in
_____, it is implementing
strategies that attempt to shape
the external environment in which
it operates.
a. synergistic control
b. environmental management
c. transactional management
d. market control
e. reactive management
ANS: B
PTS: 1 REF:33
OBJ: 03-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
38. _____ factors are the
environmental factors concerned
with the changes in people's
values, lifestyles, and family roles.
a. Social
b. Economic
c. Political
d. Competitive
e. Demographic
ANS: A PTS: 1 REF:33
OBJ: 03-4 TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
SECTION 1 POOL ITEMS
43. Consumer preference for
low-carb diets has greatly
modified the way food is being
marketed. This concern with
health issues is an example of a(n)
_____ factor.
a. economic
b. political and legal
c. technological
d. demographic
e. social
ANS: E
PTS: 1 REF:33
OBJ: 03-4 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Product|
TB&E Model Customer
SECTION 1 POOL ITEMS
45. What do self-sufficiency,
upward mobility, and conformity
have in common?
a. These are no longer valued
attitudes.
b. They are attitudes that can
easily be changed.
c. These are three perceptions
that Americans have of the
Asian lifestyle.
d. These are three of the core
values that have influenced
lifestyles in the United
States.
e. They are the determinants
of a component lifestyle.
SECTION 1 POOL ITEMS
ANS: D
The fourth value is work ethic.
PTS: 1 REF: 33 OBJ:
TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
03-4
48. A(n) _____ is the practice of
choosing goods and services that
meet one's diverse needs and
interests rather than conforming
to a single, traditional lifestyle.
a. aggregated lifestyle
b. component lifestyle
c. psychographic mode of
living
SECTION 1 POOL ITEMS
d.
e.
demographically defined
lifestyle
targeted lifestyle
ANS: B
PTS: 1 REF:33-34
OBJ: 03-4 TYPE: Def
TOP: AACSB Diversity| TB&E
Model Product
55. The growth of dual-income
families has resulted in:
a. burnout
b. a sense of entitlement
c. decreased discretionary
income
d. decreased GNP
e. increased purchasing power
SECTION 1 POOL ITEMS
ANS: E
PTS: 1 REF:34
OBJ: 03-4 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
56. Which of the following events
has had a greater effect on
marketing than any other social
change?
a. the growing number of onechild families
b. the increasing number of
immigrants from Northern
Europe
c. the growing number of
people on the Internet
SECTION 1 POOL ITEMS
d.
e.
the increasing number of
working women
the growing number of
people of retirement age
who are continuing work
ANS: D PTS: 1 REF:34
OBJ: 03-4 TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
58. The study of people's vital
statistics, such as their ages,
births, deaths, and locations, is
called:
a. cultural sociology
SECTION 1 POOL ITEMS
b.
c.
d.
e.
psychometrics
ecology
ethnography
demography
ANS: E
PTS: 1 REF:34-35
OBJ: 03-5 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
59. Which of the following is NOT
a demographic characteristic of a
population?
a. income level
b. age
c. values
d. education
SECTION 1 POOL ITEMS
e.
birthrate
ANS: C
Values are a social factor.
PTS: 1 REF: 34-35 OBJ: 03-5
TYPE: Comp
TOP: AACSB Diversity| TB&E
Model Customer
69. A multicultural society is
characterized by:
a. a population of recent
immigrants that are closely
related by custom and
tradition
SECTION 1 POOL ITEMS
b.
c.
d.
e.
a conglomeration of small
and large ethnic groups that
have little in common
even distribution of all
ethnic groups in a
geographic region
effective mass-marketing
techniques
one large dominating racial
or ethnic group in a
geographic area
ANS: C PTS: 1 REF:39
OBJ: 03-6 TYPE: Def
TOP: AACSB Diversity| TB&E
Model Distribution| TB&E Model
Customer
SECTION 1 POOL ITEMS
71. A furniture retailer that
specializes in selling entire rooms
of furniture has hired you to
identify 25 geographic target
markets that can be described as
multicultural societies. What
types of locations should you offer
this firm?
a. cities that have historically
had low immigration rates
b. traditional test markets
c. regions that are dominated
by one ethnic group and
that have multiple smaller
ethnic groups
d. unindustrialized areas
e. locations in which all major
ethnic groups in the area are
SECTION 1 POOL ITEMS
equally represented
ANS: E
Multicultural societies are not
defined by geography, history, or
products produced, but by the
racial and ethnic composition of
the population.
PTS: 1 REF: 39 OBJ: 03-6
TYPE: App
TOP: AACSB Diversity| TB&E
Model Customer
74. The higher your _____, the
higher your purchasing power:
SECTION 1 POOL ITEMS
a.
b.
c.
d.
e.
gross income
social class
disposable income
cost of living
inflation index
ANS: C
Purchasing power is measured by
comparing income to the relative
cost of a set standard of goods an
services. It is a aligned with net
income, or income minus a
standard set of expenses.
Assuming a constant income, the
higher the cost of living (the
expenses), the lower the
purchasing power.
SECTION 1 POOL ITEMS
PTS: 1 REF: 39-40 OBJ: 03-7
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
76. Factors, such as interest rates,
inflation, and consumer income
that influence the marketing
environment, are called _____
factors.
a. economic
b. socio-demographic
c. political
d. government
e. consumption
ANS: A
PTS:
1 REF:39
SECTION 1 POOL ITEMS
OBJ: 03-7 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
77. _____ is measured by
comparing the relative cost of a
standard of goods and services in
different geographic areas.
a. Gross individual profit
b. Purchasing power
c. Net profit
d. Relative pricing
e. Price escalation
ANS: B
PTS: 1 REF:39-40
OBJ: 03-7 TYPE: Def
TOP: AACSB Reflective
SECTION 1 POOL ITEMS
Thinking| TB&E Model
Customer
78. When income is high relative
to the cost of living, consumers
_____.
a. have more discretionary
income
b. begin anticipating a period
of price deceleration
c. stop buying luxury goods
and services
d. have significantly less
disposable income
e. anticipate price escalation
by stockpiling
ANS: A
PTS:
1 REF:39-40
SECTION 1 POOL ITEMS
OBJ: 03-7 TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
79. _____ is the primary
determinant of a person's
earnings.
a. Multiculturalism
b. Lifestyle
c. Education
d. The aging of the baby
boomers
e. Global competition
ANS: C PTS: 1 REF:39
OBJ: 03-7 TYPE: Def
TOP: AACSB Reflective
SECTION 1 POOL ITEMS
Thinking| TB&E Model
Customer
80. ____ is measure of the
decrease in the value of money,
expressed as the percentage
reduction in value since the
previous year.
a. Inflation
b. Recession
c. Depression
d. Consumer break-even
e. Price escalation
ANS: A PTS: 1 REF:40
OBJ: 03-7 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Pricing
SECTION 1 POOL ITEMS
81. When planning marketing
strategies during times of
inflation, marketers must be
aware inflation causes consumers
to:
a. purchase more goods and
services to support their
psychological selves, such as
counseling and stress
management training
b. consume more meals away
from home
c. buy in small quantities until
inflation is over
d. decrease their brand loyalty
to products they have
traditionally used
e. put more money into savings
SECTION 1 POOL ITEMS
accounts because prices are
too high
ANS: D
In times of inflation, consumers
are more price conscious and less
brand-loyal.
PTS: 1 REF: 40 OBJ: 03-7
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Pricing
82. A period of economic activity
when income, production, and
employment tend to fall, reducing
overall demand, is called:
a. stagnation
SECTION 1 POOL ITEMS
b.
c.
d.
e.
an inflation
a recession
price escalation
a depression
ANS: C PTS: 1 REF:40
OBJ: 03-7 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Pricing
85. Which of the following
strategies is appropriate for a
marketer to use during a time of
economic recession?
a. Promote product value.
b. Maintain and improve
customer services.
SECTION 1 POOL ITEMS
c.
d.
e.
Emphasize top-of-the-line
products in promotions.
Offer products that are
economical and efficient.
Do all of these.
ANS: E
PTS: 1 REF:40-41
OBJ: 03-7 TYPE: Comp
TOP: AACSB Technology|
TB&E Model Pricing
86. Which of the following is
sometimes an effective weapon for
fighting inflation and recession?
a. technology
b. line extensions
c. increased capital gains taxes
d. introducing product-line
SECTION 1 POOL ITEMS
e.
extensions
reducing R&D expenditures
ANS: A PTS: 1 REF:40-41
OBJ: 03-8 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Research
87. Research that attempts to
expand the frontiers of knowledge
rather than solving a specific,
pragmatic problem is called:
a. technical diversity
b. reactive research
c. applied research
d. experiential research
e. basic research
SECTION 1 POOL ITEMS
ANS: E
PTS: 1 REF:41
OBJ: 03-8 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Research
100. Laws and regulations of
various governments and their
ongoing development and change
are an example of _____ factors
and are part of all organizations'
external environment.
a. economic investment
b. political and legal
c. research and development
d. competitive
e. demographic
SECTION 1 POOL ITEMS
ANS: B
PTS: 1 REF:42
OBJ: 03-9 TYPE: Def
TOP: AACSB Technology|
TB&E Model Strategy
101. The _____ Act strengthened
the Clayton Act to prevent
corporate acquisitions that reduce
competition.
a. Hart-Scott-Rodino
b. Lanham-Scott
c. Celler-Kefauver Antimerger
d. Robinson-Patman
e. Sherman
ANS: C
SECTION 1 POOL ITEMS
See Exhibit 3.2. The CellerKefauver Act bolstered the
Clayton Act's provision dealing
with interlocking directorates and
closed another loophole that had
allowed corporate takeovers.
PTS: 1 REF: 42 OBJ: 03-9
TYPE: Def
TOP: AACSB Analytic| TB&E
Model Strategy
102. The _____ Act requires large
companies to notify the
government of their intent to
merge.
a. Hart-Scott-Rodino
SECTION 1 POOL ITEMS
b.
c.
d.
e.
Sherman
Celler-Kefauver Antimerger
Robinson-Patman
Lanham
ANS: A
See Exhibit 3.2.
PTS: 1 REF: 42 OBJ: 03-9
TYPE: Def
TOP: AACSB Analytic| TB&E
Model Strategy
103. The Gramm-Leach-Bliley
Act and the Health Insurance
Portability and Accountability
Act are both important laws
designed to:
SECTION 1 POOL ITEMS
a.
b.
c.
d.
e.
protect the channels of
commerce
restrict alcohol and tobacco
advertising
eliminate certain products
from being advertised on
children’s television
programs
protect consumers from
identity theft
penalize marketers selling
merchandise with
counterfeit brand names
ANS: D PTS: 1 REF:42
OBJ: 03-9 TYPE: Def
TOP: AACSB Analytic| TB&E
Model Strategy
SECTION 1 POOL ITEMS
SECTION 1 POOL ITEMS
Chapter 2
3. Strategic plans require:
a. long-term resource
commitments
b. a change in organizational
structure
c. the addition of new
personnel
d. new product development
e. changes in prices
ANS: A
Strategic plans are long-range
plans that involve developing,
organizing, and controlling
marketing activities.
SECTION 1 POOL ITEMS
PTS: 1 REF: 15 OBJ: 02-1
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
4. _____ is the managerial
process of creating and
maintaining a fit between the
organization's objectives and
resources and evolving market
opportunities.
a. Tactical management
b. The market audit
c. Functional planning
d. Environmental scanning
e. Strategic planning
SECTION 1 POOL ITEMS
ANS: E
PTS: 1 REF:15
OBJ: 02-1 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
7. Which of the following
statements about a marketing
plan is true?
a. Marketing plans can exist as
oral traditions.
b. The marketing plan should
be viewed as a series of
sequential steps.
c. All marketing plans have
basically the same content.
d. A marketing plan is created
so an organization can meet
its marketing objectives.
SECTION 1 POOL ITEMS
e.
All of the statements about a
marketing plan are true.
ANS: D
By definition, marketing plans are
written. Several steps of the
marketing plan can be done at the
same time. The content of
marketing plans varies.
PTS: 1 REF: 15 OBJ:
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Marketing Plan
02-1
SECTION 1 POOL ITEMS
8. _____ is the process of
anticipating events and
determining strategies to achieve
organizational objectives.
a. Planning
b. Portfolio evaluation
c. Forecasting
d. Implementation
e. Evaluation
ANS: A PTS: 1 REF:15
OBJ: 02-1 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Marketing Plan
SECTION 1 POOL ITEMS
10. Marketing plans should be
written to do all of the following
EXCEPT:
a. compare actual and
expected performance
b. provide clearly stated
activities
c. create common goals for
employees to work toward
d. allow managers to enter the
marketplace with an
awareness of possibilities
and problems
e. control the elements of the
external marketing
environment
ANS: E
SECTION 1 POOL ITEMS
Marketing environment variables
cannot be controlled.
PTS: 1 REF: 16 OBJ:
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Marketing Plan
02-1
11. Which of the following is one
of the elements of the marketing
plan?
a. a business mission statement
b. a situation analysis
c. a target market strategy
d. the marketing mix
e. all of the choices
SECTION 1 POOL ITEMS
ANS: E
See Exhibit 2.1.
PTS: 1 REF: 17 OBJ:
TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Marketing Plan
02-1
13. The _____ answers the
question, "What business are we
in, and where are we going?"
a. mission statement
b. financial statement
c. situation analysis
d. market strategy
e. strategic plan
SECTION 1 POOL ITEMS
ANS: A PTS: 1 REF:18
OBJ: 02-2 TYPE: Def
TOP: AACSB Analytic| TB&E
Model Strategy
17. The focus of an organization's
mission statement should be on:
a. the products it wishes to sell
b. the market it wishes to serve
c. its social responsibilities
d. the desires of government
regulators
e. technologies it understands
well
ANS: B
SECTION 1 POOL ITEMS
The choice of the market to serve
determines the product and
technology decisions.
PTS: 1 REF: 18 OBJ: 02-2
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
20. _____ occurs when a business
is defined in terms of goods and
services rather than by the
benefits customers seek from it.
a. A circle trap
b. A market barrier entry
c. A reactive focus
d. Unempowerment
e. Marketing myopia
SECTION 1 POOL ITEMS
ANS: E
PTS: 1 REF:18
OBJ: 02-2 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Product
21. A popular technique for
managing a large organization
with different technologies and
markets is to divide it into:
a. strategic business units
b. different technologies
c. strategic target markets
d. design matrices
e. tactical segments
ANS: A
PTS:
1 REF:18
SECTION 1 POOL ITEMS
OBJ: 02-2 TYPE: Def
TOP: AACSB Analytic| TB&E
Model Strategy
22. The acronym SBU refers to:
a. stock in business units
b. strategic business unit
c. standard business utilization
d. strategic barter units
e. samples by units
ANS: B
PTS: 1 REF:18
OBJ: 02-2 TYPE: Def
TOP: AACSB Analytic| TB&E
Model Strategy
SECTION 1 POOL ITEMS
25. An SBU:
a. competes with the same
companies as the other
SBUs in the parent
organization
b. shares the same mission
with all the other SBUs in
the parent organization
c. controls its business
independent of other SBUs
in the organization
d. usually benefits from the
combined corporate raw
materials purchases
e. still has strategic planning
performed back at
corporate headquarters
SECTION 1 POOL ITEMS
ANS: C
SBUs have separate business
functions from one another and
have their own mission
statements, markets, and
planning.
PTS: 1 REF: 18 OBJ: 02-2
TYPE: Def
TOP: AACSB Analytic| TB&E
Model Strategy
27. After management agrees on a
mission statement, it must set
objectives. Which of the following
is NOT a characteristic of a good
objective?
SECTION 1 POOL ITEMS
a.
b.
c.
d.
e.
profitable
realistic
measurable
time-specific
consistent
ANS: A
Good objectives are not
necessarily stated in terms of
profit.
PTS: 1 REF: 18 OBJ: 02-3
TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Pricing
SECTION 1 POOL ITEMS
28. A _____ is defined as a
statement of what is to be
accomplished through marketing
activities.
a. mission statement
b. business plan
c. marketing objective
d. goal-driven directive
e. marketing criteria
ANS: C PTS: 1 REF:18
OBJ: 02-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
30. When an organization creates
a mission statement that is too
narrow, _____ results.
a. marketing synergy
b. marketing myopia
c. directional marketing
d. an internal threat
e. sustainable competitive
advantage
ANS: B
Marketing myopia defines a
business in terms of goods and
services rather than in terms of
benefits customers seek. See
Review Learning Outcome 2.
PTS: 1 REF: 18
OBJ:
02-2
SECTION 1 POOL ITEMS
TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Product
35. For marketing objectives to be
realized, they must meet all of the
following criteria EXCEPT:
a. be consistent with
organization objectives
b. be measurable
c. be attainable
d. be challenging
e. be set within a one-year time
frame
ANS: E
SECTION 1 POOL ITEMS
There is no one-year time frame
restriction for marketing
objectives although specifying a
particular time frame makes an
objective more clear and precise.
PTS: 1 REF: 18 OBJ: 02-3
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
37. A _____ is a formal study
conducted by an organization to
ascertain its current status and
capabilities and its future
expectations.
a. situation analysis
SECTION 1 POOL ITEMS
b.
c.
d.
e.
marketing audit
trend analysis
strategic alternative
selection
competitive advantage audit
ANS: A PTS: 1 REF:19
OBJ: 02-4 TYPE: Def
TOP: AACSB Analytic| TB&E
Model Research
39. The SWOT acronym refers to
a firm’s analysis of its:
a. sales, width of product mix,
observations, and
technology
SECTION 1 POOL ITEMS
b.
c.
d.
e.
situations, wealth,
organizational strengths,
and target markets
strengths, weaknesses,
opportunities, and threats
service levels, willingness to
spend, organizational
culture, and total revenues
strategies, willingness to
change, objectives, and
trends
ANS: C PTS: 1 REF:19
OBJ: 02-4 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
43. _____ is defined as the
collection and interpretation of
information about forces, events,
and relationships that may affect
the organization.
a. Market sampling
b. An internal audit
c. Opportunity analysis
d. Environmental scanning
e. Stakeholder analysis
ANS: D PTS: 1 REF:19
OBJ: 02-4 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
61. _____ show costs declining at a
predictable rate as experience
with a product increases.
a. Liquidity growth curves
b. EOQ graphs
c. Breakeven analyses
d. Experience curves
e. Supply/demand curves
ANS: D PTS: 1 REF:20
OBJ: 02-5 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Product|
TB&E Model Pricing
62. Which of the following is NOT
a source of a cost competitive
advantage?
SECTION 1 POOL ITEMS
a.
b.
c.
d.
e.
reengineering
experience curves
break-even analyses
efficient labor
production innovation
ANS: C PTS: 1 REF:20-21
OBJ: 02-5 TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Pricing
67. Which of the following is a
type of strategic alternative that
matches products and markets?
a. vertical integration
b. product penetration
SECTION 1 POOL ITEMS
c.
d.
e.
divestment
horizontal integration
market penetration
ANS: E
PTS: 1 REF:22
OBJ: 02-6 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
68. _____ is a strategy of
increasing market share for
present products in existing
markets.
a. Market penetration
b. Product development
c. Market development
d. Diversification
e. Product penetration
SECTION 1 POOL ITEMS
ANS: A PTS: 1 REF:22
OBJ: 02-6 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
70. _____ is a strategy that
attracts new customers to existing
products.
a. Product development
b. Market development
c. Market penetration
d. Product penetration
e. Diversification
SECTION 1 POOL ITEMS
ANS: B
PTS: 1 REF:22
OBJ: 02-6 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
75. _____ is a strategy that creates
new products for present markets.
a. Product penetration
b. Market penetration
c. Product development
d. Market development
e. Diversification
ANS: C PTS: 1 REF:22
OBJ: 02-6 TYPE: Def
TOP: AACSB Reflective
SECTION 1 POOL ITEMS
Thinking| TB&E Model Strategy
76. _____ is the strategy of
increasing sales by introducing
new products into new markets.
a. Product penetration
b. Product development
c. Market penetration
d. Market development
e. Diversification
ANS: E
PTS: 1 REF:22
OBJ: 02-6 TYPE: Def
TOP: AACSB Diversity| TB&E
Model Strategy| TB&E Model
International Perspective
SECTION 1 POOL ITEMS
102. A(n) _____ describes and
estimates the size and sales
potential of market segments of
interest to the firm and assesses
key competitors in these market
segments.
a. marketing orientation
b. environmental scan
c. marketing mix audit
d. target market strategy
e. market opportunity analysis
ANS: E
PTS: 1 REF:24
OBJ: 02-7 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
105. The _____ is the unique
blend of product, distribution,
promotion, and pricing strategies
designed to produce mutually
satisfying exchanges with a target
market.
a. internal environmental mix
b. marketing mix
c. product mix
d. product line
e. market portfolio
ANS: B
PTS: 1 REF:25
OBJ: 02-8 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
106. The starting point of any
firm's marketing mix is the:
a. analysis of what production
equipment is available and
owned by the company
b. design of the promotion
campaign to be used for the
product
c. selection of the places
through which the good or
service will be sold
d. determination of the
product's price, enabling
future revenues and budgets
to be estimated
e. development of the good or
service to be sold
SECTION 1 POOL ITEMS
ANS: E
The product is the starting point
for any marketing mix. Without
it, pricing, distribution, and
promotion are irrelevant. The
production capacity can be
changed to fit the proposed
product.
PTS: 1 REF: 25 OBJ: 02-8
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
109. Making sure products are
available when and where
customers want them is the job of
which element of the marketing
mix?
a. advertising strategies
b. production strategies
c. product strategies
d. promotion strategies
e. distribution strategies
ANS: E
Distribution strategies make
products available when and
where customers want them.
PTS: 1 REF: 25-26 OBJ: 02-8
TYPE: Def
TOP: AACSB Reflective
SECTION 1 POOL ITEMS
Thinking| TB&E Model
Distribution| TB&E Model
Product
SECTION 1 POOL ITEMS
Chapter 4
MULTIPLE CHOICE
1. Individuals and organizations
utilizing a global vision to
effectively market goods and
services across national
boundaries are engaged in:
a. developing international
selling schemes
b. implementing standard
international marketing
c. implementing global
marketing standardization
d. supplementing their foreign
vision
e. practicing global marketing
SECTION 1 POOL ITEMS
ANS: E
PTS: 1 REF:47
OBJ: 04-1 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
International Perspective| TB&E
Model Product
3. Which of the following
statements about global
marketing is true?
a. Marketing to target markets
throughout the world has
become an imperative for
business.
b. Often a U.S. firm's toughest
domestic competition comes
SECTION 1 POOL ITEMS
c.
d.
e.
from foreign companies.
Marketing managers must
develop a global vision not
only to recognize and react
to international marketing
opportunities but also to
remain competitive at home.
Adopting a global vision can
be lucrative for a company,
and global marketing can
offset weak domestic
performance.
All of these statements about
global marketing are true.
ANS: E
PTS: 1 REF:47
OBJ: 04-1 TYPE: Comp
TOP: AACSB Reflective
SECTION 1 POOL ITEMS
Thinking| TB&E Model
International Perspective
6. Which of the following
statements about multinational
firms is true?
a. Multinationals typically do
not change their methods of
reaching their global
markets if they are
successful with their initial
strategy.
b. Multinationals are defined
as companies heavily
engaged in exporting and
importing.
c. All multinationals must
SECTION 1 POOL ITEMS
d.
e.
enter the fourth stage of
globalization before they are
fully internationalized.
Multinationals often develop
their global businesses in
stages.
The five stages of
globalization closely mirror
the five stages of the product
life cycle.
ANS: D
SECTION 1 POOL ITEMS
Multinationals can go through up
to four stages in their quest to
globalize their business.
Generally, only high-tech firms
ever reach the fourth stage.
Multinationals are companies that
heavily engage in international
trade, beyond exporting and
importing.
PTS: 1 REF: 49-50 OBJ: 04-2
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
International Perspective
SECTION 1 POOL ITEMS
7. A(n) _____ is a company that
is heavily engaged in global trade
and moves its resources, goods,
services, and skills across national
boundaries.
a. international facilitator
b. global trader
c. multinational corporation
d. exporting company
e. international merchant
ANS: C PTS: 1 REF:49-50
OBJ: 04-2 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
International Perspective| TB&E
Model Distribution
SECTION 1 POOL ITEMS
10. Which of the following
describes a common criticism of
multinational companies?
a. the transference of the
wrong kind of technology to
a developing nation
b. excessive employment
information
c. countertrading
d. the transference of laborintensive technology
e. dumping
ANS: A
SECTION 1 POOL ITEMS
Typically, the technology needed
to run operations in developing
nations is capital-intensive and
thus does not substantially
increase employment.
PTS: 1 REF: 50 OBJ:
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
International Perspective
04-2
11. A company that is capitalintensive:
a. has an altered fiscal strategy
for overseas operations
b. spends more on equipment
than on labor
c. makes better use of
SECTION 1 POOL ITEMS
d.
e.
benchmarking than other
types of business
creates employment
monopolies
must engage in
countertrading due to
restrictive foreign
legislature
ANS: B
PTS: 1 REF:50
OBJ: 04-2 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
International Perspective
13. With a _____, a firm produces
standardized products to be sold
the same way all over the world.
SECTION 1 POOL ITEMS
a.
b.
c.
d.
e.
traditional marketing
strategy
global marketing
standardization approach
product extension approach
culturally based marketing
strategy
synergistic approach to
marketing
ANS: B
PTS: 1 REF:50
OBJ: 04-2 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
International Perspective| TB&E
Model Product
SECTION 1 POOL ITEMS
14. Global marketing
standardization:
a. is becoming less popular
with the large
multinationals
b. encourages product,
packaging, and advertising
variations for each nation or
local market
c. actually raises production
costs
d. presumes markets
throughout the world are
becoming more alike
e. is more popular with
consumer products than
with industrial goods
SECTION 1 POOL ITEMS
ANS: D
With a global marketing
standardization approach, a firm
produces standardized products
to be sold the same way
worldwide. This approach
assumes all customers have the
same needs and wants.
PTS: 1 REF: 50 OBJ:
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
International Perspective
04-2
SECTION 1 POOL ITEMS
16. A business thinking of
expanding into global markets
needs to examine all of the
following external environments
EXCEPT:
a. culture
b. political structure and
actions
c. its marketing mix
d. natural resources
e. demographic makeup
ANS: C
The marketing mix is the
keystone of a company's internal
environment.
PTS: 1 REF: 50
OBJ:
04-3
SECTION 1 POOL ITEMS
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
International Perspective| TB&E
Model Strategy
SECTION 1 POOL ITEMS
17. Central to any society is a
common set of values shared by
its citizens that determines what is
socially acceptable. Marketers
refer to these values collectively as
a country's:
a. ethical system
b. culture
c. ethnocentricity
d. national personality
e. socialization
ANS: B
PTS: 1 REF:50-51
OBJ: 04-3 TYPE: Def
TOP: AACSB Diversity| TB&E
Model Customer
SECTION 1 POOL ITEMS
24. Which of the following is an
important cultural factor that
should be considered by global
marketers?
a. competitive synergy
b. language
c. natural resources
d. technology sensitivity
e. level of economic
development
ANS: B
PTS: 1 REF:51
OBJ: 04-3 TYPE: Comp
TOP: AACSB Diversity| TB&E
Model Strategy
SECTION 1 POOL ITEMS
26. Which of the following
statements about the political
environment is true?
a. A recession is part of the
political environment.
b. A country is either
socialistic or capitalistic, but
never both.
c. The countries with the least
across-the-board regulations
and political structures
foster the strongest
economies.
d. The European Union is
purely an economic
arrangement and has no
political impact on
marketing.
e. All of these statements about
SECTION 1 POOL ITEMS
the political environment
are true.
ANS: C
Recession is an economic factor.
Countries are a combination of
socialism and capitalism. The
European Union is a means for
the member nations to pursue an
economic, monetary, and political
union.
PTS: 1 REF: 51-52 OBJ: 04-3
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
31. A tax levied on the goods
entering a country is called a(n):
a. license
b. quota
c. boycott
d. exchange control
e. tariff
ANS: E
PTS: 1 REF:52
OBJ: 04-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Pricing|
TB&E Model Product
33. A(n) _____ is a limit on the
amount of a specific product that
can enter a country.
SECTION 1 POOL ITEMS
a.
b.
c.
d.
e.
quota
tariff
boycott
exchange control
transfer limit
ANS: A PTS: 1 REF:52
OBJ: 04-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Product
36. An exclusion of all products
from certain countries or
companies by a government or
group is called a(n):
a. expropriation
b. quota
SECTION 1 POOL ITEMS
c.
d.
e.
tariff
exchange control
boycott
ANS: E
PTS: 1 REF:52
OBJ: 04-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Product
39. A(n) _____ is a law that
compels a company earning
foreign currency from its exports
to sell it to a central bank rather
than sending the money out of the
country.
a. tariff
b. quota
SECTION 1 POOL ITEMS
c.
d.
e.
fiscal prerequisite
exchange control
transfer barrier
ANS: D PTS: 1 REF:52
OBJ: 04-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Pricing
40. _____ are trade alliances in
which several countries agree to
work together to form a common
trade area that enhances trade
opportunities among those
countries.
a. Boycotts
b. Regional unifications
c. Market groupings
SECTION 1 POOL ITEMS
d.
e.
Free trade nations
Expropriation members
ANS: C PTS: 1 REF:52
OBJ: 04-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
41. Negotiations (such as GATT or
the Uruguay Round) between
countries that are made to
stimulate global exchange and
remove barriers are called _____
agreements.
a. trade
b. joint venture
c. CRM
d. exchange
SECTION 1 POOL ITEMS
e.
licensing
ANS: A PTS: 1 REF:52
OBJ: 04-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
42. _____ is a trade agreement
that includes Argentina, Bolivia,
Brazil, Chile, Columbia, Ecuador,
Paraguay, Peru, and Uruguay.
This agreement eliminated the
tariffs among these trading
partners.
a. NAFTA
b. Maastricht
c. WTO
d. GATT
SECTION 1 POOL ITEMS
e.
Mercosur
ANS: E
PTS: 1 REF:52
OBJ: 04-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
43. The latest round of World
Trade Organization (WTO) talks
has been contentious. A major
goal of this _____ is to bolster the
developing economies of Africa,
Asia, and Latin America where
up to two-thirds of the population
works in agriculture.
a. Mercosur covenant
b. CAFTA Alliance
c. Doha Round
SECTION 1 POOL ITEMS
d.
e.
Uruguay Round
WTO Round
ANS: C PTS: 1 REF:52-53
OBJ: 04-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
International Perspective
44. The _____ of trade
negotiations created the _____,
which replaces GATT. This trade
agreement dramatically lowers
trade barriers worldwide.
a. Uruguay Round; World
Trade Organization
b. Doha Round; European
Union
SECTION 1 POOL ITEMS
c.
d.
e.
Doha Round; NAFTA
Paraguay Round; South
American Free Trade
Agreement
Mercosur; European Union
ANS: A
The Uruguay Round created the
WTO.
PTS: 1 REF: 53 OBJ: 04-3
TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
45. The _____ is the most
ambitious global trade agreement
ever negotiated; the agreement
has reduced tariffs by one-third
worldwide.
a. Uruguay Round
b. Mercosur
c. GATT
d. NAFTA
e. Maastricht Treaty
ANS: A PTS: 1 REF:52-53
OBJ: 04-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
46. The North American Free
Trade Agreement (NAFTA) did
NOT:
a. create the world's largest
free-trade zone including
Canada, the United States,
and Mexico
b. substantially reduce
economic growth in Mexico
c. allow U.S. and Canadian
financial-services companies
to own subsidiaries in
Mexico
d. remove many tariffs and
duties so that Mexico,
Canada, and the United
States can trade more freely
e. expand opportunities for
U.S. businesses in Mexico
SECTION 1 POOL ITEMS
ANS: B
Over the years, Mexico has made
economic gains due to NAFTA.
PTS: 1 REF: 53 OBJ:
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Distribution
04-3
48. The goal of the Central
America Free Trade Agreement
(CAFTA) is to:
a. create free-trade agreements
between the United States
and other industrialized
SECTION 1 POOL ITEMS
b.
c.
d.
e.
nations
eliminate all protectionism
raise prosperity levels in all
industrializing nations
establish a free trade
agreement between the
United States and certain
Latin American countries
make sure all nations
achieve the economic and
technological development
of a takeover economy or
better
ANS: D PTS: 1 REF:53
OBJ: 04-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
49. Which of the following
statements about the European
Union (EU) is true?
a. The EU creates a single
Europroduct for a generic
Euroconsumer.
b. The EU removes all internal
trade barriers and
standardizes regulations in
European countries for
easier trade.
c. The EU can correctly be
called the "United States of
Europe" because all
European voters have
agreed to these changes.
d. The existence of the EU
eliminates protectionist
SECTION 1 POOL ITEMS
e.
movements by United
Europe against the Japanese
and the United States.
None of these statements
about the EU is true.
ANS: E
Because of diverse languages and
cultures, no "United States of
Europe" or a generic
Euroconsumer results from
United Europe. There exists the
possibility of a protectionist
movement and increased
competition. It does not eliminate
all trade barriers.
PTS: 1 REF: 54
OBJ:
04-3
SECTION 1 POOL ITEMS
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
51. A multinational company that
makes a labor-intensive product
would be interested in the _____
makeup of countries. Factors such
as median age, gender, and
literacy rates would determine the
success of its global expansion.
a. demographic
b. lifestyle
c. natural
d. cultural
e. economic
ANS: A
SECTION 1 POOL ITEMS
Demographics include age and
educational levels as well as
ethnicity and gender.
PTS: 1 REF: 54-55 OBJ: 04-3
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model
International Perspective
SECTION 1 POOL ITEMS
54. Vast differences in natural
resources create all of the
following EXCEPT:
a. potential for military
intervention
b. shifts in wealth between
nations
c. inflation and recession
d. global dependencies
e. export opportunities for
countries with no natural
resources
ANS: E
SECTION 1 POOL ITEMS
While differences do create shifts
in wealth, dependencies, inflation,
recession, and the potential for
conflict, they only hinder
opportunities for the countries
that do not have resources.
PTS: 1 REF: 55 OBJ: 04-3
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
55. Which method of entering the
global marketplace would be
LEAST risky?
a. exporting
b. licensing
c. contract manufacturing
d. joint ventures
SECTION 1 POOL ITEMS
e.
direct investment
ANS: A
See Exhibit 4.1.
PTS: 1 REF: 55-56 OBJ: 04-4
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
63. A(n) _____ is a global
intermediary that operates
primarily in agriculture and raw
materials by bringing the buyer
and seller together.
a. buyer for export
b. export agent
SECTION 1 POOL ITEMS
c.
d.
e.
license agent
import agent
export broker
ANS: E
PTS: 1 REF:55
OBJ: 04-4 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
64. A cooperative of egg producers
believes a profitable market for
eggs exists overseas where people
are not as concerned about
cholesterol. If the cooperative
decides to export, it will most
likely use a(n):
a. commission merchant
b. drop shipper
SECTION 1 POOL ITEMS
c.
d.
e.
export broker
import agent
export agent
ANS: C
Export brokers typically handle
agriculture and raw materials.
PTS: 1 REF: 56 OBJ: 04-4
TYPE: App
TOP: AACSB Analytic| TB&E
Model Product
SECTION 1 POOL ITEMS
65. _____ are foreign sales agentsdistributors who live in a foreign
country and represent a domestic
company in sales situations. They
perform the same functions as
domestic manufacturers' agents
who help with financing and
shipping.
a. Export agents
b. Export brokers
c. Import broker
d. Buyers for export
e. Licensing agents
ANS: A PTS: 1 REF:56
OBJ: 04-4 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
66. The _____ is an intermediary
in the global market who assumes
all risks and sells globally for its
own account. The domestic
manufacturer usually treats it like
a domestic customer.
a. buyer for export
b. export agent
c. joint venturer
d. contract manufacturer
e. market group
ANS: A PTS: 1 REF:55
OBJ: 04-4 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
SECTION 1 POOL ITEMS
SECTION 1 POOL ITEMS
Chapter 8
MULTIPLE CHOICE
1. A(n) _____ is an interactive,
flexible information system that
enables managers to obtain and
manipulate information as they
are making decisions.
a. expert system
b. marketing information
system
c. artificial intelligence system
d. marketing decision support
system
e. database marketing system
ANS: D PTS: 1 REF:113
OBJ: 08-1 TYPE: Def
SECTION 1 POOL ITEMS
TOP: AACSB Technology|
TB&E Model Strategy
2. _____ is the creation of a large
computerized file of customers'
and potential customers' names,
profiles, and purchase patterns.
a. Electronic targeting
b. Sampling procedure
specification
c. Database marketing
d. Competitive data mining
e. Consumer behavior
marketing
ANS: C PTS: 1 REF:113
OBJ: 08-1 TYPE: Def
TOP: AACSB Technology|
SECTION 1 POOL ITEMS
TB&E Model Strategy
3. A true marketing decision
support systems (DSS) should be:
a. flexible
b. discovery-oriented
c. interactive
d. accessible
e. All of the choices describe
true marketing decision
support systems.
ANS: E
PTS: 1 REF:113
OBJ: 08-1 TYPE: Comp
TOP: AACSB Technology|
TB&E Model Strategy
SECTION 1 POOL ITEMS
4. According to the text, a true
marketing decision support
system should be:
a. reactive
b. customer-oriented
c. interactive
d. rigorous
e. descriptive
ANS: C
A true DSS should be flexible,
interactive, discovery-oriented,
and accessible.
PTS: 1 REF: 113 OBJ: 08-1
TYPE: Def
TOP: AACSB Technology|
TB&E Model Strategy
SECTION 1 POOL ITEMS
5. To help understand why
attendance at the team’s games
was so poor, the Atlanta Falcons
used marketing research to gather
factual information. The
organization used in-game
surveys and end-of-season surveys
of ticket holders. The gathering of
factual statements is an example
of marketing research in its _____
role.
a. historical
b. descriptive
c. predictive
d. normative
e. objective
SECTION 1 POOL ITEMS
ANS: B
The data were gathered and
presented as factual statements.
PTS: 1 REF: 114 OBJ: 08-2
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
6. Through marketing research,
the Boston Symphony Orchestra
(BSO) learned it has an older
market and is not attracting
younger concertgoers. It next
conducted marketing research to
determine if an integrated
advertising campaign targeted to
the younger market would be
successful. In its second use of
research, BSO employed _____
marketing research.
a. historical
b. descriptive
c. predictive
d. normative
e. objective
SECTION 1 POOL ITEMS
ANS: C
The BSO used previously
gathered data to predict the
success of an advertising
campaign.
PTS: 1 REF: 114 OBJ: 08-2
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Research
7. _____ is the process of
planning, collecting, and
analyzing data relevant to
marketing decision making. The
results of this analysis are then
communicated to management.
a. Data collection
b. Artificial intelligence
SECTION 1 POOL ITEMS
c.
d.
e.
Decision support
Marketing research
Single-source research
ANS: D PTS: 1 REF:114
OBJ: 08-2 TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Research
8. A bowling alley operator could
use _____ to determine why
customers do not seem to like his
bowling alley's new location.
a. transactional marketing
b. public relations
c. an EDI system
d. market synergy
e. marketing research
SECTION 1 POOL ITEMS
ANS: E
Marketing research can be used
by management to trace problems
and their causes.
PTS: 1 REF: 114 OBJ: 08-2
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
9. Soon after the Harriet
Tubman Museum expanded its
hours and began charging a small
fee to pay for the extra help
needed to keep it open longer,
attendance decreased. To
determine why this decrease in
attendance occurred, the museum
staff could rely on:
a. a production audit
b. database marketing
c. marketing research
d. an internal marketing audit
e. secondary data
ANS: C
SECTION 1 POOL ITEMS
Marketing research could be used
to find out why attendance
declined.
PTS: 1 REF: 114 OBJ: 08-2
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Research
10. The publisher of a Canadian
business magazine wanted to
make several major changes in
the magazine's content and
format. To determine what
changes would be supported by its
subscribers and what changes
would not be welcomed, the
publisher should engage in:
a. advertising
SECTION 1 POOL ITEMS
b.
c.
d.
e.
database marketing
marketing research
a data retrieval system
secondary data
ANS: C
Marketing research would be
appropriate to use to determine
how the publisher could provide
greater customer satisfaction.
PTS: 1 REF: 114 OBJ: 08-2
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Research
11. Marketing managers can use
marketing research to:
SECTION 1 POOL ITEMS
a.
b.
c.
d.
e.
improve the quality of their
decision making
find out why a marketing
plan failed
learn how to more efficiently
retain customers
understand the everchanging marketplace
do all of these
ANS: E
PTS: 1 REF:114116 OBJ: 08-2 | 08-3 TYPE:
Comp
TOP: AACSB Reflective
Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
12. Marketing managers would
typically use marketing research
to:
a. eliminate any guesswork in
decision making
b. implement a sales
promotion
c. handle an individual
customer's complaint
d. determine why a new
product failed
e. do all of these
ANS: D
Marketing research is used to
determine why marketing plans
failed.
SECTION 1 POOL ITEMS
PTS: 1 REF: 114 OBJ: 08-2
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Research
13. Marketing research has three
functional roles. These roles are:
a. normative, descriptive, and
explanatory
b. predictive, normative, and
persuasive
c. descriptive, diagnostic, and
predictive
d. flexible, interactive, and
discovery-oriented
e. descriptive, explanatory,
and predictive
SECTION 1 POOL ITEMS
ANS: C PTS: 1 REF:114
OBJ: 08-2 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Research
14. A manufacturer of an allnatural fruit and veggie bar
targeted to people who want
nutritious snacks has asked for
marketing research to explain the
reasons for the recent failure of its
Apple-Broccoli bar. This type of
research is described as:
a. descriptive
b. predictive
c. diagnostic
d. normative
e. historical
SECTION 1 POOL ITEMS
ANS: C
One of the roles of marketing
research is to be diagnostic and to
explain what happened.
PTS: 1 REF: 114 OBJ: 08-2
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
15. Volkswagen developed an 18month-long project to gain a
better understanding of the
American culture so it could
develop cars more appealing to
this market. The research project
was called Moonraker.
Moonraker was intended to play
a(n) _____ role in Volkswagen's
marketing research.
a. diagnostic
b. descriptive
c. predictive
d. heuristical
e. demonstrative
ANS: B
SECTION 1 POOL ITEMS
One of the roles of marketing
research is the gathering of
descriptive data, which includes
reporting consumers’ attitude
toward products.
PTS: 1 REF: 114 OBJ: 08-2
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Research|
TB&E Model Customer
16. The first step in the marketing
research process is to:
a. specify the sampling plan
b. collect the data
c. analyze the marketplace
d. plan the research design
e. identify and formulate the
SECTION 1 POOL ITEMS
problem/opportunity to be
studied
ANS: E
PTS: 1 REF:114
OBJ: 08-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Research
17. There are five Major League
Baseball markets with more than
one team. So far this season, the
average combined attendance for
the Chicago Cubs and the
Chicago White Sox ranks lowest.
Before conducting any marketing
research to explain low
attendance figures, the teams will
need to:
SECTION 1 POOL ITEMS
a.
b.
c.
d.
e.
determine who will be most
likely to respond to a survey
select a market sample from
everyone in the population
define the problem to be
researched
develop a survey to find out
exactly what's wrong
enumerate the decision
factors
ANS: C
To respond to a symptom, one
should find out what the
underlying problem is. See
Exhibit 8.1.
PTS: 1 REF: 114-115
OBJ: 08-
SECTION 1 POOL ITEMS
3 TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Research
18. A small confectionary
company has noticed a 20 percent
decrease in the sale of its milk
chocolate candy over the last
three years. The company’s owner
wants to determine why the
decline has occurred and how to
reverse the trend. Once the owner
has identified the problem as a
consumer perception that dark
chocolate provides more health
benefits, its next step in the
marketing research process
should be to:
a. collect the data
SECTION 1 POOL ITEMS
b.
c.
d.
e.
recognize the marketing
problem
analyze the marketplace
plan the research design
specify the sampling plan
ANS: D
See Exhibit 8.1.
PTS: 1 REF: 116 OBJ: 08-3
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
19. Volkswagen lost more than $1
billion in its U.S. operations in
two recent years. In which step of
the marketing research project,
would the Volkswagen engineers
(who were raised in the nononsense cockpits of German
cars) realize the problem was that
they were not designing cars for
Americans who use their cars like
a second office?
a. the research design step
b. the data collection step
c. the data analysis step
d. the problem formulation
step
e. none of the choices
SECTION 1 POOL ITEMS
ANS: D
Defining (or in this case realizing)
the problem is the first step of the
marketing research process. The
research will not produce usable
results if this step is not done
correctly. See Exhibit 8.1.
PTS: 1 REF: 115 OBJ: 08-3
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Research|
TB&E Model Customer
SECTION 1 POOL ITEMS
20. Research by Morgan Stanley
revealed that 72 percent of the
U.S. residents are willing to try
flavored colas. Since the cola
industry is stagnant in most areas
of the country, this is important
information. Marketing research
on how best to use this
information will begin with the:
a. collection of the data
b. specification of the sampling
plan
c. implementation of employee
empowerment
d. research design
e. recognition of the marketing
opportunity
SECTION 1 POOL ITEMS
ANS: E
Marketing research can hone in
and clarify where the best
opportunities lie. See Exhibit 8.1.
PTS: 1 REF: 114 | 115 OBJ: 083 TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Research
21. The marketing research
problem:
a. is information oriented
b. involves determining what
resources will be used in
research efforts
c. is action driven
d. does not rely on managerial
experience
SECTION 1 POOL ITEMS
e.
is accurately described by
none of these choices
ANS: A PTS: 1 REF:114
OBJ: 08-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Research
22. In contrast to marketing
research problems, management
decision problems are:
a. action oriented
b. pervasive
c. narrower in scope
d. synergistic
e. information oriented
SECTION 1 POOL ITEMS
ANS: A PTS: 1 REF:115
OBJ: 08-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Research
23. Managers must combine
specific pieces of information
needed to identify the marketing
research problem. Their _____ is
to provide insightful decisionmaking information.
a. company-correlated goal
b. autonomous task
c. dichotomous goal
d. marketing research
objective
e. field service objective
SECTION 1 POOL ITEMS
ANS: D PTS: 1 REF:114 |
115 OBJ: 08-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
24. Post Properties is a company
that manages apartments in
various communities. It is
concerned with a glut of
apartments in Atlanta, Orlando,
and Dallas Its market researcher
begins by examining the rental
markets in the Southeast, the
history of apartment buildings,
local economies, competitive
rents, and ownership--all
information that was on hand and
did not require any new research
to locate. The market researcher
looked at:
a. a closed study
b. secondary data
c. primary data
d. a statistical analysis
SECTION 1 POOL ITEMS
e.
priority databases
ANS: B
PTS: 1 REF:115
OBJ: 08-3 TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Research
25. Data previously collected for
purposes other than the one at
hand are an important source of
information as the researcher
defines the problem. These data
are called _____ data.
a. single-source
b. secondary
c. primary
d. consensual
e. convenience
SECTION 1 POOL ITEMS
ANS: B
PTS: 1 REF:115
OBJ: 08-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Research
26. Market research firms,
commercial publications, and
government data can be used as
sources of:
a. secondary data
b. consensual information
c. primary data
d. artificial intelligence
e. marketing audits
ANS: A
SECTION 1 POOL ITEMS
Data previously collected for
purposes other than the one at
hand are an important source of
information known as secondary
data.
PTS: 1 REF: 115 OBJ: 08-3
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
27. So far this season, the average
combined attendance for the
Washington Nationals and
Baltimore Orioles ranks fourth of
the five major league markets
with more than one team.
Research done by the Washington
Post shows attendance in the
Baltimore-Washington region
trails Los Angeles, New York and
San Francisco-Oakland but is
slightly ahead of Chicago. Major
League Baseball would be using
_____ data if it used this research
to determine how competition
affects attendance figures.
a. convenience
b. primary
c. dichotomous
SECTION 1 POOL ITEMS
d.
e.
secondary
observation
ANS: D
Data previously collected for
purposes other than the one at
hand are an important source of
information known as secondary
data.
PTS: 1 REF: 115 OBJ: 08-3
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
28. A few years ago, TNT cable
channel began using the slogan
"TNT knows drama" to reflect a
change in its programming focus.
Now it wants to determine how its
viewership has changed since it
changed its focus. It has decided
to use secondary data to
determine if its viewers'
demographics have changed. A
potential disadvantage of this
research plan is:
a. the difficulty of holding
certain variables constant
while varying one factor of
interest
b. the high cost of collecting
secondary data
c. the length of time it takes to
SECTION 1 POOL ITEMS
d.
e.
collect secondary data
interviewer bias during the
collection process
the information not fitting
the needs of the research
problem
ANS: E
Secondary data have been
previously collected for some
other purpose and may not fit the
current research problem.
PTS: 1 REF: 115 OBJ: 08-3
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Research|
TB&E Model Marketing Plan
SECTION 1 POOL ITEMS
29. When assessing the quality of
secondary data, it is:
a. not necessary to know why
the data were collected in
the first place
b. important to be able to have
easy access to the data
c. important to know the
purpose for which the data
were originally collected
d. not important to know when
the data were collected
e. imperative to use the same
methods and procedures
when primary data are
collected
SECTION 1 POOL ITEMS
ANS: C
To assess the quality of the data, it
is important to know when,
where, why, and how the data
were originally collected.
PTS: 1 REF: 115 OBJ: 08-3
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
30. Research done by Morgan
Stanley revealed that 72 percent
of the U.S. residents are willing to
try flavored colas. The research
also showed which flavors were
most desired. Cola producers
using this information provided to
them by Morgan Stanley would
be using _____ data.
a. primary
b. secondary
c. dichotomous
d. observation
e. convenience
ANS: B
SECTION 1 POOL ITEMS
It is secondary data, which have
been previously collected for some
other purpose and may not fit the
current research problem.
PTS: 1 REF: 115 OBJ: 08-3
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Research
31. A(n) _____ is a company that
acquires, catalogs, reformats,
segments, and resells reports
already published by marketing
research firms.
a. information vendor
b. subject directory
c. market research aggregator
d. search engine
SECTION 1 POOL ITEMS
e.
Internet directory
ANS: C PTS: 1 REF:116
OBJ: 08-3 TYPE: Def
TOP: AACSB Technology|
TB&E Model Online/Computer
32. _____ specifies the research
questions to be answered, how
and when the data will be
gathered, and how the data will
be analyzed.
a. A secondary data use plan
b. The research collaborative
plan
c. An autonomous director
d. The research design
e. The sampling plan
SECTION 1 POOL ITEMS
ANS: D PTS: 1 REF:116
OBJ: 08-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Research
33. The research design specifies:
a. follow-up procedures for the
research
b. the information that will be
found
c. how the final report will be
written
d. how the information
gathered will be used to
predict external
environmental changes
e. the research questions to be
SECTION 1 POOL ITEMS
answered
ANS: E
PTS: 1 REF:116117 OBJ: 08-3 TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Research
34. Pulte Homes, a national home
builder, needs to control costs.
Research done by Pulte Homes
determined that 80 percent of its
homebuyers selected the same
countertops, floors, carpets, and
toilets. Pulte Homes used these
_____ data to cut its costs by
reducing the variety of options
offered without having any effect
on the majority of its buyers.
SECTION 1 POOL ITEMS
a.
b.
c.
d.
e.
primary
secondary
dichotomous
convenience
ethnographic
ANS: A
Primary data are information
that is gathered for the first time
for solving a particular problem.
PTS: 1 REF: 116 OBJ: 08-3
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Research|
TB&E Model Customer
SECTION 1 POOL ITEMS
35. An engineer of Volkswagen
America spent three and a half
hours on a Greyhound bus to
experience the vast distances
Americans travel in their
automobiles and to try to
understand why Americans treat
their automobiles as rolling
extensions of their living rooms.
What kind of data did the
engineer collect?
a. heuristic
b. primary
c. cohesive
d. random
e. secondary
ANS: B
SECTION 1 POOL ITEMS
Primary data are information
that is gathered for the first time
for solving a particular problem.
PTS: 1 REF: 116 OBJ: 08-3
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Research
36. Information collected for the
first time for the purpose of
solving a particular problem
under investigation is called _____
data.
a. primary
b. secondary
c. dichotomous
d. observation
e. convenience
SECTION 1 POOL ITEMS
ANS: A PTS: 1 REF:116
OBJ: 08-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Research
37. To determine new product
opportunities, British Colombia's
Sun-Rype Products conducted
focus groups in which it learned
Canadians are having trouble
getting their required servings of
fruits and vegetables each day-especially the vegetables. It
gathered _____ data.
a. heuristic
b. primary
c. consensual
SECTION 1 POOL ITEMS
d.
e.
random
collaborative
ANS: B
PTS: 1 REF:117
OBJ: 08-3 TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
38. Stair Specialist, Inc. builds
customized circular staircases for
homes in southern California. Its
sales have plateaued. Nothing it
does seems to change its sales
picture. Its owner has asked you
to advise the company on what it
should do to increase its sales.
Which of the following is an
example of primary data that
could be used for examining this
marketing research problem?
a. data from a study of new
home start-ups in southern
California
b. an article in a construction
trade journal predicting
fewer housing starts during
the next decade
SECTION 1 POOL ITEMS
c.
d.
e.
industry predictions that the
number of new homes built
in the Southwest will
increase by 15 percent
information from the Los
Angeles Yellow Pages
showing the number of
building contractors has
declined over the past five
years
none of the choices
ANS: E
SECTION 1 POOL ITEMS
Information collected for the first
time for the purpose of solving a
particular problem under
investigation is called primary
data. All of these data are
examples of secondary data.
PTS: 1 REF: 116 OBJ: 08-3
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
39. Mel and Mimi is the name of
an upscale boutique that has
outgrown the building it has been
located in for the last two decades.
Its owners want to know how its
customers will react to a move
and if the addition of new product
lines will make the new location
more attractive to its loyal
customers. The store's owners
have surveyed several of their
customers to gauge their reaction
to various potential locations and
changes in product lines. The
survey results are an example of
_____ data.
a. primary
b. secondary
c. dichotomous
SECTION 1 POOL ITEMS
d.
e.
observation
collaborative
ANS: A
Information that is collected for
the first time for the purpose of
solving a particular problem
under investigation is called
primary data.
PTS: 1 REF: 116 OBJ: 08-3
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Research|
TB&E Model Customer
40. What is the chief advantage of
primary data?
SECTION 1 POOL ITEMS
a.
b.
c.
d.
e.
low cost compared to
secondary data
relevance to the problem at
hand
availability to any interested
party for use
accessibility through
computerized databases
avoiding interviewer biases
ANS: B
Primary data are information
collected for the first time for the
purpose of solving a particular
problem under investigation.
PTS: 1 REF: 116 OBJ:
TYPE: Comp
08-3
SECTION 1 POOL ITEMS
TOP: AACSB Reflective
Thinking| TB&E Model Research
SECTION 1 POOL ITEMS
Chapter 7
MULTIPLE CHOICE
1. A _____ is a group of people or
organizations that has wants and
needs that can be satisfied by
particular product categories, has
the ability to purchase these
products, and is willing to
exchange resources for the
products.
a. firm
b. buyer
c. market
d. consumer
e. target
ANS: C
PTS:
1 REF:97
SECTION 1 POOL ITEMS
OBJ: 07-1 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
2. A group of middle school
students stop by a sporting goods
store. The store has just received
a new shipment of high-end
racing bicycles. The bicycles
range in price from $1,200 to
$3,000. All of the students want
one of these new bikes, but none
has the means to buy one. Is this
group of consumers a potential
market for the expensive bikes?
a. Yes, they are a potential
market since they are all
about the same age.
SECTION 1 POOL ITEMS
b.
c.
d.
e.
No, they do not have the
ability to purchase at this
time.
No, to qualify as a market,
they must need the product.
Yes, they are a market
because this product could
satisfy their consumer wants
and desires.
Yes, they are a market
because this group shares
relatively similar product
needs and purchasing
characteristics.
ANS: B
SECTION 1 POOL ITEMS
A market is a group of people or
organizations that has wants and
needs that can be satisfied by
particular product categories, has
the ability to purchase these
products, and is willing to
exchange resources for the
products. There is no suggestion
of ability in this case.
PTS: 1 REF: 97 OBJ:
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
07-1
3. A market is people or
organizations that have:
a. the ability, willingness, and
SECTION 1 POOL ITEMS
b.
c.
d.
e.
power to buy
a medium of exchange and
products they desire
needs and wants and an
ability and willingness to
buy
unmet needs or wants and
products or services that
satisfy those unmet needs or
wants
communication, financial,
and capital resources
ANS: C
SECTION 1 POOL ITEMS
A market is defined as having
four imperative characteristics:
people or organizations, needs
and wants, ability, and willingness
to buy.
PTS: 1 REF: 97 OBJ:
TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
07-1
4. A(n) _____ is a subgroup of
individuals or organizations
sharing one or more
characteristics that cause them to
have relatively similar product
needs.
a. market universe
SECTION 1 POOL ITEMS
b.
c.
d.
e.
market segment
aggregated market
segmentation base
population sample
ANS: B
PTS: 1 REF:97
OBJ: 07-1 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
5. _____ is the process of dividing
a market into meaningful groups
that are relatively similar and
identifiable.
a. Perceptual mapping
b. Positioning
c. Micromarketing
SECTION 1 POOL ITEMS
d.
e.
Market sampling
Market segmentation
ANS: E
PTS: 1 REF:97
OBJ: 07-1 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
6. E&V Bridal Studios is a
wedding consulting business
designed to appeal to East Asians.
At one time it used the same
marketing mix for all of its
customers, but it has discovered
that it needs a different marketing
mix to appeal to its ethnic
customers. For example, Chinese
brides want elaborate red gowns,
and Vietnamese brides wear a
brocaded gown with long sleeves
and a Mandarin collar. E&V
Bridal Studios uses a procedure
called _____ to divide its large
market.
a. micromarketing
b. positioning
c. market segmentation
SECTION 1 POOL ITEMS
d.
e.
cannibalization
perceptual mapping
ANS: C
Dividing one large market into
divisions based on a variable such
as size is called market
segmentation.
PTS: 1 REF: 97 OBJ: 07-1
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
7. The purpose of market
segmentation is to:
a. reduce the market down to a
specific size that the firm
SECTION 1 POOL ITEMS
b.
c.
d.
e.
can handle
divide the market into equal
size and profit regions for
sales territories
group a large number of
markets together enabling a
company to serve them
simultaneously
develop a generalized
definition of the market as a
whole
enable the marketer to tailor
marketing mixes to meet the
needs of one or more
specific groups
ANS: E
SECTION 1 POOL ITEMS
The purpose of segmentation is to
group similar consumers and to
serve their needs with a
specialized marketing mix.
PTS: 1 REF: 97-98 OBJ: 07-1
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
8. Hildy Webb and LaTishe
Brown own Creative Catering
and would like to improve
customer satisfaction and increase
repeat business. When you ask
them to describe a typical
customer, they say it is impossible
and explain that with corporate
functions, family affairs, and
fund-raisers, they do not have a
typical customer. You suggest it is
time for market segmentation
because:
a. it will enable them to build
an accurate description of
customer needs by group
and to design a marketing
mix to fit each segment
b. Creative Catering needs to
SECTION 1 POOL ITEMS
c.
d.
e.
reduce the size of the
market it serves
Creative Catering needs to
learn how to group these
markets together into one
market to serve all of them
adequately
it will help develop a
generalized definition of the
market as a whole and
reveal the optimal
marketing mix for this
market
this will position the
company in the minds of its
consumers as compared to
its competitors
SECTION 1 POOL ITEMS
ANS: A
The purpose of segmentation is to
group similar consumers and to
serve their needs with a
specialized marketing mix.
PTS: 1 REF: 97 OBJ:
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
07-1
9. Market segmentation can
assist marketers to do all of the
following EXCEPT:
a. develop more precise
definitions of customer
needs and wants
b. identify which variable base
SECTION 1 POOL ITEMS
c.
d.
e.
should be used for
segmenting
more accurately define
marketing objectives
improve resource allocation
evaluate performance
ANS: B
Market segmentation itself does
not signal which base should be
used, but it will define needs and
wants, and help marketers define
marketing objectives, improve
resource allocation, and evaluate
performance.
PTS: 1 REF: 97-98 OBJ: 07-1
TYPE: Comp
SECTION 1 POOL ITEMS
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
10. The process of market
segmentation involves breaking
down a heterogeneous market
into homogeneous and identifiable
segments. If this process is carried
to its extreme, then one could say
that:
a. this is the reason
segmentation cannot be used
by small firms
b. all individuals have the same
needs in spite of cultural
differences
c. everyone belongs to the
same segment
d. segmentation controls the
SECTION 1 POOL ITEMS
e.
demand for products
every individual in the
world is a market segment
ANS: E
The ultimate segmentation would
have each individual occupying
his or her own segment, because
everyone has somewhat different
needs.
PTS: 1 REF: 97-98 OBJ: 07-1
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
SECTION 1 POOL ITEMS
11. ProtecTV is a product that
selectively mutes words and
phrases some people find
objectionable. It can be connected
to a television, VCR, DVD player,
or a satellite TV system. The
manufacturer of ProtecTV
targeted parents who did not
want their children exposed to
what they consider to be offensive
language. The primary market
segment for ProtecTV is:
a. all parents
b. educators
c. children under the age of 12
d. parents with preteens in
their households
e. all those interested in
screening out offensive
SECTION 1 POOL ITEMS
language
ANS: D PTS: 1 REF:97
OBJ: 07-1 TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
12. Market segmentation helps
businesses to:
a. define customer needs and
wants more precisely
b. more accurately define
marketing objectives
c. more efficiently allocate
resources
d. better evaluate their
performances
SECTION 1 POOL ITEMS
e.
do all of these things
ANS: E
PTS: 1 REF:97-98
OBJ: 07-2 TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
13. Which of the following is NOT
one of the four criteria identified
in the text for successful market
segmentation?
a. substantiality
b. identifiability and
measurability
c. accountability
d. accessibility
e. responsiveness
SECTION 1 POOL ITEMS
ANS: C
The four criteria are
substantiality, identifiability and
measurability, accessibility, and
responsiveness.
PTS: 1 REF: 98 OBJ: 07-3
TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
14. To be useful, a segmentation
scheme must produce segments
that meet four basic criteria. The
criteria are:
a. segmentable, targetable,
reliable, and homogeneous
b. tangibility, flexibility,
SECTION 1 POOL ITEMS
c.
d.
e.
causality, and accessibility
substantiality, identifiability
and measurability,
accessibility, and
responsiveness
reliability, flexibility,
tangibility, and accessibility
responsiveness, reliability,
homogeneity, and causality
ANS: C PTS: 1 REF:98
OBJ: 07-3 TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
15. A manufacturer of lenses used
in microscopes, binoculars, and
telescopes has segmented its
market into scientific equipment
manufacturers, sporting
equipment manufacturers, and
retailers who sell replacement
lenses. In order for this
segmentation scheme to be
successful, all of the following
criteria must be met EXCEPT:
a. substantiality
b. accessibility
c. identifiability and
measurability
d. complexity
e. responsiveness
SECTION 1 POOL ITEMS
ANS: D
Complexity is not a criterion;
simplicity would be preferred.
PTS: 1 REF: 98 OBJ: 07-3
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
16. According to the criterion of
_____ a selected segment must be
large enough to warrant
developing and maintaining a
special marketing mix. Serving
the specific needs of this segment
must be commercially viable, even
if the number of potential
customers is small.
a. causality
SECTION 1 POOL ITEMS
b.
c.
d.
e.
accountability
responsiveness
accessibility
substantiality
ANS: E
PTS: 1 REF:98
OBJ: 07-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
17. The marketing researcher for
Chickadee, a manufacturer of
designer clothing for infants and
toddlers, has submitted a report
on potential segments for
expansion of its marketing efforts.
She noted an increase of
professional women over the age
of 35 who are leaving their jobs to
have their first babies. She
described this segment as having
substantiality. This means it:
a. has enough special stores,
magazines, and other outlets
that it will be possible to
direct advertisements at this
group
b. is large enough to permit a
profitable market effort
SECTION 1 POOL ITEMS
c.
d.
e.
toward its members
exhibits a response rate to
marketing variables
different from the rates of
other segments
is too large and needs to be
reduced to a more easily
identifiable and measurable
size
will be difficult to develop a
product to match this group
of buyers
ANS: B
SECTION 1 POOL ITEMS
Substantiality means the selected
segment will be large enough to
warrant developing and
maintaining a special marketing
mix. Serving the specific needs of
this segment must be
commercially viable, even if the
number of potential customers is
small.
PTS: 1 REF: 98 OBJ:
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
07-3
SECTION 1 POOL ITEMS
18. DCS Corporation makes
barbecue grills. It has expanded
into high-priced, multi-purpose
grills for people who want to be
able to cook all their food outside.
Facing little competition, DCS
designed an excellent line of
specialty grills, had good
distribution, used effective
promotion with this market, and
within four years had a
respectable market share. Yet
financial losses every year have
caused DCS to decide to drop this
line. The reason could be that this
market segment, relative to the
resources devoted to it, lacked:
a. reliability
b. identifiability and
SECTION 1 POOL ITEMS
c.
d.
e.
measurability
substantiality
accessibility
causality
ANS: C
Substantiality means the selected
segment is large enough to
warrant developing and
maintaining a special marketing
mix. Serving the specific needs of
this segment must be
commercially viable. Based on
four years of losses, this one
apparently was not.
PTS: 1 REF: 98
TYPE: App
OBJ:
07-3
SECTION 1 POOL ITEMS
TOP: AACSB Reflective
Thinking| TB&E Model Product
19. United Social Service Agency
wants to identify segments by
their readiness to participate in a
drug and alcohol program or in
prenatal care. The agency will
need to gauge whether there are
enough people to justify setting up
the service. The FIRST
segmentation criterion problem
that would greet this proposal is:
a. responsiveness
b. identifiability and
measurability
c. accessibility
d. substantiality
e. responsibility
SECTION 1 POOL ITEMS
ANS: B
Identifiability and measurability
is the first problem: how many
people who are willing,
indifferent, or unwilling to
participate are there? The agency
needs this number to gauge if
there are enough of them. If there
were enough of them, they would
probably be responsive to a
special program.
PTS: 1 REF: 98 OBJ:
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
07-3
SECTION 1 POOL ITEMS
20. The city of Blossom Valley has
a job training program for the
homeless but has had a difficult
time reaching this group with
information about the program
even though radio and television
stations have provided public
service advertisements free of
charge. This illustrates a
segmentation problem with:
a. substantiality
b. identifiability and
measurability
c. responsiveness
d. accessibility
e. accountability
SECTION 1 POOL ITEMS
ANS: D
Accessibility is the ability to
communicate information about
the product offering to the
segment.
PTS: 1 REF: 98 OBJ: 07-3
TYPE: App
TOP: AACSB Reflective
Thinking| AACSB
Communication| TB&E Model
Promotion
SECTION 1 POOL ITEMS
21. Market researchers estimate
thousands of Americans have high
blood pressure and do not know it
because they do not have annual
medical exams. A pharmaceutical
company that has developed a
medicine to reduce blood pressure
should not count on this group to
be a good target market because
the group lacks:
a. both accessibility and
responsiveness
b. accountability
c. both accessibility and
substantiality
d. substantiality,
identifiability, and
measurability
e. reliability and
SECTION 1 POOL ITEMS
responsiveness
ANS: A
Marketers cannot reach someone
who does not know he or she has a
problem and if he or she is
reached, there will be no response.
PTS: 1 REF: 98 OBJ:
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
07-3
SECTION 1 POOL ITEMS
22. SRD Research Firm has
conducted marketing research on
the market for concrete siding for
homes. The research firm has
determined there are thousands of
homeowners who want the
security, safety, warmth, and
stability provided by concrete
siding. These homeowners are
generally married and between 25
and 54 years of age. They tend to
live in suburban neighborhoods
and most subscribe to lifestyle
magazines. If you were
interpreting these results, you
might suggest that SRD:
a. conduct additional research
because it has no idea about
the measurability of its
SECTION 1 POOL ITEMS
b.
c.
d.
e.
segments
examine the research report
again to see if it can
determine segment
accessibility
conduct a follow-up analysis
to determine if the segments
it might choose would
respond differently from
other segments to its
marketing strategy
not segment the concrete
siding market because the
only market for siding is
contractors who build the
homes
segment the concrete siding
market based on the
information provided and
SECTION 1 POOL ITEMS
concentrate its efforts on
suburban homeowners
between 25 and 54 who read
lifestyle magazines
ANS: C
The only criterion SRD has not
determined is market
responsiveness.
PTS: 1 REF: 98 OBJ: 07-3
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
23. Every six months or so, some
manufacturer introduces a new
shape or color for the boxes that
house the hardware to run PCs.
These companies contend beige is
boring, and people are ready for
"something fun." These
manufacturers ignore the fact
most Americans like their
technology in plain wrappers.
These bright colors and odd
shapes have failed because the
market segment to which they are
targeted lacks:
a. substantiality
b. identifiability and
measurability
c. responsiveness
d. reliability
SECTION 1 POOL ITEMS
e.
accessibility
ANS: C
It is not difficult to locate the
large market for PCs—they are
readily identifiable and accessible
for other computer products.
They are just not responsive to
the oddball designs and colors.
PTS: 1 REF: 98 OBJ:
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
07-3
24. The requirement for a market
segment to be responsive means:
SECTION 1 POOL ITEMS
a.
b.
c.
d.
e.
over half of the consumers
in the identified segment will
be actively interested in the
product
all the segments identified
by a marketer should
respond to the marketing
mix
all the segments identified
by a marketer should not
respond to the marketing
mix
the segments identified by a
marketer should not differ
in the level of their
responsiveness to the
marketing mix
the segment identified by a
marketer should differ in
SECTION 1 POOL ITEMS
how it responds to the
marketing mix when
compared to another
segment confronted with the
same mix
ANS: E
The target segment should
respond differently to the market
mix compared to other segments.
PTS: 1 REF: 98 OBJ: 07-3
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
25. If a market segment is
especially motivated by coupons
in newspapers, which
segmentation success criterion is
most influential in the success of
this program?
a. responsiveness
b. identifiability and
measurability
c. substantiality
d. accessibility
e. functionality
ANS: A
SECTION 1 POOL ITEMS
Responsiveness is in force when a
target segment responds
differently (hopefully more
positively) to the marketing mix
than other segments.
PTS: 1 REF: 98 OBJ: 07-3
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Strategy|
TB&E Model Promotion
SECTION 1 POOL ITEMS
26. The Middleton Health Club
has a new fitness program for
expectant mothers. After fliers
were placed at the offices of area
obstetricians, Middleton's class
filled up within two days. Which
segmentation success criterion
was most influential in the success
of this promotion?
a. substantiality
b. identifiability
c. measurability
d. causality
e. responsiveness
ANS: E
SECTION 1 POOL ITEMS
Responsiveness is in force when a
target segment responds
differently (hopefully more
positively) to the marketing mix
than other segments.
PTS: 1 REF: 98 OBJ:
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model
Promotion
07-3
27. _____ are characteristics of
individuals, groups, or
organizations that marketers use
to divide a total market into
segments.
a. Differentiation guides
b. Segmentation bases
SECTION 1 POOL ITEMS
c.
d.
e.
Perceptual maps
Responsiveness quotients
Accessibility quotients
ANS: B
PTS: 1 REF:98
OBJ: 07-4 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
SECTION 1 POOL ITEMS
28. E&V Bridal Studios is a
wedding consulting business
targeted to East Asians. It
accommodates the various
cultures by providing services to
appeal to Koreans, Vietnamese,
Chinese, and Japanese customers.
E&V Bridal Studios markets its
services to its customers by using
ethnicity to divide its customers
into segments. Ethnicity is its
primary:
a. perceived image
b. accessibility quotient
c. environmental control
d. segmentation base
e. differentiation guide
SECTION 1 POOL ITEMS
ANS: D
A segmentation base is the
characteristic used to segment the
market.
PTS: 1 REF: 98 OBJ:
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model
Promotion
07-4
SECTION 1 POOL ITEMS
29. Listerine Essential Care
toothpaste is designed to reduce
plaque and to prevent gingivitis.
Its ads state, "After age 35, 3 out
of 4 adults have some form of
gum disease." The toothpaste is
targeted to the market segment
over the age of 35. This age
variable that has been used to
distinguish the market for this
toothpaste is an example of a(n):
a. perceived variable
b. accessibility quotient
c. mass market
d. segmentation base
e. differentiation guide
ANS: D
SECTION 1 POOL ITEMS
A segmentation base is the
characteristic used to segment the
market.
PTS: 1 REF: 98 OBJ: 07-4
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Product
SECTION 1 POOL ITEMS
30. Military Spouses is the only
publication in the world that
targets readers who "are married
to the military." Its content
reflects the unique set of
challenges, hardships, and
rewards to those whose spouses
are in the military. The marital
status that has been used to
distinguish the market for this
magazine is an example of a(n):
a. perceived variable
b. accessibility quotient
c. mass market
d. segmentation base
e. differentiation guide
ANS: D
SECTION 1 POOL ITEMS
A segmentation base is the
characteristic used to segment the
market.
PTS: 1 REF: 98 OBJ: 07-4
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Product
SECTION 1 POOL ITEMS
Chapter 5
MULTIPLE CHOICE
1. The processes individuals use
when making a purchase decision
are called _____. This is also the
reason individuals recognize and
respond to the distinctive lettering
used on Coca-Cola cans, the shape
of the Nike swoosh, and the color
of a can of Campbell soup.
a. consumer behavior
b. marketing
c. consumerism
d. perceptual mapping
e. database mining
ANS: A
SECTION 1 POOL ITEMS
Consumer behavior describes
how consumers make purchase
decisions.
PTS: 1 REF: 63 OBJ: 05-1
TYPE: Def
TOP: AACSB Analytic| TB&E
Model Customer
2. Marketers often study _____,
the processes used and the factors
that influence the consumer when
making purchase decisions.
a. psychographics
b. business buying behavior
c. consumerism
d. consumer behavior
e. perceptual mapping
SECTION 1 POOL ITEMS
ANS: D PTS: 1 REF:63
OBJ: 05-1 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
3. The steps of the consumer
decision-making process in order
are:
a. need recognition, alternative
aggregation, reevaluation,
purchase decision,
postpurchase behavior
b. need positioning, stimulus
response reactions,
evaluation of alternatives,
purchase decision,
postpurchase behavior
SECTION 1 POOL ITEMS
c.
d.
e.
need positioning, alternative
aggregation and divestment,
purchase decision,
postpurchase evaluation
information search, need
positioning, evaluation of
alternatives, product trial,
purchase decision,
postpurchase satisfaction
need recognition,
information search,
evaluation of alternatives,
purchase, and postpurchase
evaluation
ANS: E
PTS: 1 REF:63
OBJ: 05-2 TYPE: Def
TOP: AACSB Reflective
SECTION 1 POOL ITEMS
Thinking| TB&E Model
Customer
4. As a result of hearing the
adventures of returning soldiers,
Monroe decided to enlist in the
U.S. Army. These stories he heard
from the soldiers acted as:
a. affective states
b. external stimuli
c. internal stimuli
d. purchase outcomes
e. a dissonance creator
ANS: B
The adventures he heard were
stimuli that were not
physiological.
SECTION 1 POOL ITEMS
PTS: 1 REF: 64 OBJ:
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model
International Perspective
05-2
5. Hector loves cola and is always
on a diet. He will only drink Diet
Coke. When offered a Diet Pepsi
one afternoon as an alternative,
he refused to even consider it as
part of his evoked set even though
he generally drinks a soft drink
about the time of day the offer
was made. This illustrates that
Hector:
a. is satisfying a want
b. is satisfying a need
SECTION 1 POOL ITEMS
c.
d.
e.
is satisfying a belief
has a physiological drive
has a need motivator
ANS: A
A want is often brand specific,
whereas a need is something an
individual depends on to function
efficiently. A person may need
food but wants specific brands.
PTS: 1 REF: 64 OBJ: 05-2
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model
Customer| TB&E Model Product
SECTION 1 POOL ITEMS
6. Which of the following is the
BEST example of an internal
stimulus that would create need
recognition?
a. a friend comments on how
shabby your coat looks
b. a radio station runs an ad
for a new video game rental
store
c. a headache
d. an invitation to a graduation
for which you need a gift
e. a billboard promoting a new
national Internet service
provider
ANS: C
SECTION 1 POOL ITEMS
Aches and pains are generated
internally by your body without
outside inputs from anything or
anyone.
PTS: 1 REF: 64 OBJ:
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
05-2
7. After a need or want is
recognized, a consumer may be
motivated to clarify the options
available and generate an evoked
set of brands. This occurs during
which part of the consumer
decision-making process?
a. evaluation of alternatives
SECTION 1 POOL ITEMS
b.
c.
d.
e.
information search
cognitive dissonance
consideration stage
product identification
ANS: B
PTS: 1 REF:64
OBJ: 05-2 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
SECTION 1 POOL ITEMS
8. While Martin was looking at
the DVDs at Wal-Mart, he was
trying to remember the name of
the horror movie he saw that
starred Bruce Campbell so he
could buy the DVD. This is likely
to occur during which part of the
consumer decision-making
process?
a. antecedent state
b. need recognition
c. external information search
d. alternative evaluation
e. internal information search
ANS: E
SECTION 1 POOL ITEMS
After a need or want is
recognized, a consumer may be
motivated to search for
information. In this case, the
information was already stored in
his memory.
PTS: 1 REF: 64 OBJ:
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
05-2
9. The types of products people
purchase using only an internal
search are typically:
a. frequently purchased, lowcost items
b. frequently purchased, high-
SECTION 1 POOL ITEMS
c.
d.
e.
cost items
infrequently purchased,
low-cost items
infrequently purchased,
high-cost items
all types of items, regardless
of price or frequency of
purchase
ANS: A
Information about frequently
purchased, low-cost items is
stored in an individual's memory
and is sufficient knowledge for the
purchase decision.
PTS: 1 REF: 64-65 OBJ: 05-2
TYPE: Comp
SECTION 1 POOL ITEMS
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
10. Which of the following
products would most likely
require the purchaser to use only
an internal information search?
a. a veterinarian for a new
puppy
b. a day-care facility for a twomonth-old infant
c. a wedding gown
d. a tube of toothpaste
e. an anniversary gift
ANS: D
SECTION 1 POOL ITEMS
Internal information search is
used with frequently purchased,
low-cost items; the only item on
the list that meets this criterion is
the toothpaste.
PTS: 1 REF: 64 OBJ:
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
05-2
11. An external information
search is especially important
when:
a. there is a great deal of past
experience
b. there are high cost
associated with making an
SECTION 1 POOL ITEMS
c.
d.
e.
incorrect decision
the cost of gathering
information is high
buying frequently
purchased, low-cost items
there is little risk of making
an incorrect decision
ANS: B
If a consumer perceives a
purchase to involve high risk
(financial, social, etc.), an external
search will lower the risk by
providing more information.
PTS: 1 REF: 64-65 OBJ: 05-2
TYPE: Comp
TOP: AACSB Reflective
SECTION 1 POOL ITEMS
Thinking| TB&E Model
Customer
12. For which of the following
products is the purchaser most
likely to rely on an external
information source?
a. a toothbrush
b. a copy of People magazine
c. a Big Mac
d. a new prescription
e. a box of tissues
ANS: D PTS: 1 REF:64-65
OBJ: 05-2 TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
13. Pregnant Niceae has been
shopping for a baby crib. She has
visited several sites on the
Internet that provide information
about cribs and has consulted a
book on how to keep her baby
safe by a consumer group. Niceae
has also asked several new
mothers for recommendations. In
her decision-making process,
Niceae has been using:
a. marketing-controlled
information sources
b. demographic information
sources
c. nonmarketing-controlled
information sources
d. secondary data sources
e. internal search sources
SECTION 1 POOL ITEMS
ANS: C
Public sources of information,
such as Web sites and consumer
groups, are known as
nonmarketing-controlled
information sources.
PTS: 1 REF: 64-65 OBJ: 05-2
TYPE: App
TOP: AACSB Technology|
TB&E Model Product| TB&E
Model Online/Computer
14. Which of the following is NOT
an example of a marketingcontrolled information system?
a. a television ad for Geico
SECTION 1 POOL ITEMS
b.
c.
d.
e.
insurance
a NASCAR automobile
sponsored by the U.S. Army
a $1-off coupon for
Campbell’s soup
an article in Bicycling
magazine about the newest
Shimano brand shoes
a real estate agent
ANS: D
The article in Bicycling would
NOT have originated with the
Shimano organization.
PTS: 1 REF: 65 OBJ: 05-2
TYPE: App
TOP: AACSB Technology|
SECTION 1 POOL ITEMS
TB&E Model Online/Computer
15. While Robinson was looking at
the CDs at Wal-Mart, he was
trying to remember the name of
the group that sang the song he
liked on last night's episode of
Smallville, so he could buy it.
Since recording companies pay to
have their CDs promoted on
television shows that air on the
WB, the source of information
Robinson is trying to recall is:
a. a fortuitously evoked set
b. marketing-controlled
c. nonmarketing-controlled
d. unitary data
e. a credible consideration set
SECTION 1 POOL ITEMS
ANS: B
PTS: 1 REF:65
OBJ: 05-2 TYPE: App
TOP: AACSB Technology|
TB&E Model Customer
SECTION 1 POOL ITEMS
16. Warren loves to go to the
beach on his vacation but hates to
have to worry about the
possibility of hurricanes. As
Warren looked for where he
should go on vacation this
summer, he consulted a
publication called Smart Money
and learned the islands of Aruba,
Bonaire and Curacao are not in
the hurricane belt. Now he will
only consider these island resorts
as possible vacation destinations.
This group of resort islands is
called Warren’s:
a. involvement set
b. evaluative set
c. evolved set
d. evoked set
SECTION 1 POOL ITEMS
e.
intuitive set
ANS: D
An evoked set is the set of brands
a consumer recalls and would
consider as possible purchase
choices.
PTS: 1 REF: 65 OBJ: 05-2
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Product
SECTION 1 POOL ITEMS
17. Melyssa has been given a horse
and needs to buy a new Western
saddle. She has narrowed the
brands of saddles she is
considering down to Dale Chavez,
Abetta, and Big Horn. These
three brands of Western saddles
represent Melyssa's:
a. evaluative criteria
b. dissonance suppressors
c. discretionary discriminators
d. discriminatory set
e. evoked set
ANS: E
PTS: 1 REF:65
OBJ: 05-2 TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Product
SECTION 1 POOL ITEMS
18. Zoran wants to buy a pair of
sunglasses he can wear when he is
riding his bicycle in competitions.
He wants sunglasses with a
rubberized nose piece, built-in
anti-fogging technology, and the
ability to block light from all
angles. The criteria for his
decision appear to be based on:
a. marketing-controlled
information sources
b. evoked set finalists
c. routine response behavior
d. attitudes of others
e. product attributes
ANS: E
SECTION 1 POOL ITEMS
Physical characteristics and traits
used in decision making are called
product attributes.
PTS: 1 REF: 65 OBJ: 05-2
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Product
19. Another name for evoked set
is:
a. called array
b. reminder assortment
c. induced memory
d. consideration set
e. reminder induction
ANS: D
PTS:
1 REF:65
SECTION 1 POOL ITEMS
OBJ: 05-2 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
20. People tend to be more
satisfied with a purchase if:
a. they obtain additional
information that reinforces
their decision
b. they feel less competent in
their daily lives
c. cognitive dissonance
develops
d. there is inconsistency among
opinions and values
e. there is no further contact
with the seller
SECTION 1 POOL ITEMS
ANS: A
New information that reinforces
positive ideas about the purchase
tends to reduce cognitive
dissonance and increases
satisfaction.
PTS: 1 REF: 66 OBJ: 05-2
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Customer| TB&E Model Product
SECTION 1 POOL ITEMS
21. Cecelia is a receptionist and
just spent $347 on a new riding
saddle for her boyfriend Claude, a
weekend cowboy. When she got
home with the saddle, she
experienced a high level of anxiety
about whether she has made the
right purchase decision. Cecelia
experienced:
a. selective dissatisfaction
b. temporal distortion
c. perceptual disharmony
d. cognitive dissonance
e. self-actualization
involvement
ANS: D
SECTION 1 POOL ITEMS
Cognitive dissonance is the term
for postpurchase tension and
anxiety.
PTS: 1 REF: 66 OBJ: 05-2
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model Pricing|
TB&E Model Product
SECTION 1 POOL ITEMS
22. Miller has just purchased a
new Allez A1 Specialized bicycle
for $1,000. Miller realizes that the
Allez A1 costs more than most
bikes, and even at that price it
doesn't come with a set of pedals.
Even though other brands of
bicycles cost much less than the
Allez A1, Miller tells himself that
the Allez A1 is more comfortable
and has greater durability than
most road bikes. As Miller
wonders if he made the right
purchase decision, he is
experiencing:
a. attribute remorse
b. cognitive dissonance
c. evaluation distortion
d. consumer cognition
SECTION 1 POOL ITEMS
e.
perceptual disharmony
ANS: B
Cognitive dissonance involves the
realization of the advantages and
disadvantages of the purchased
product.
PTS: 1 REF: 66 OBJ: 05-2
TYPE: App
TOP: AACSB Analytic| TB&E
Model Product
23. _____ is the amount of time
and effort a buyer invests in the
search, evaluation, and decision
processes of consumer behavior.
a. Economic value
SECTION 1 POOL ITEMS
b.
c.
d.
e.
Involvement
Opportunity cost
Temporal cost
Perceived level of personal
risk
ANS: B
PTS: 1 REF:67
OBJ: 05-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
24. When the secretary restocks
office supplies each month, he
places an order for paper, pens,
folders, and printer cartridges.
Each month the order is the same.
This type of buying behavior is
called:
SECTION 1 POOL ITEMS
a.
b.
c.
d.
e.
buyer's harmony
situational convenience
routine response behavior
limited decision making
consistent decision making
ANS: C
The buying of frequently
purchased, low-cost goods is
typically routine response
behavior.
PTS: 1 REF: 67 OBJ:
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
05-3
SECTION 1 POOL ITEMS
25. Which of the following
activities is most likely to be an
example of routine response
behavior?
a. the purchase of a three-week
vacation cruise
b. a homeowner’s purchase of
a new grill for $6,000
c. the first-time purchase of a
copy machine for your home
office
d. the purchase of toilet paper
e. the purchase of a infant car
seat
ANS: D
SECTION 1 POOL ITEMS
Only the toilet paper is an
example of a low-involvement
purchase.
PTS: 1 REF: 67 OBJ:
TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
05-3
26. _____ is characterized by low
involvement, a short time frame,
an internal-only information
search, and low costs.
a. Limited decision making
b. Routine response behavior
c. Emotional buying
d. Intensive decision making
e. Temporally-limited
SECTION 1 POOL ITEMS
behavior
ANS: B
See Exhibit 5.2.
PTS: 1 REF: 67 OBJ:
TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
05-3
SECTION 1 POOL ITEMS
27. Jackson has moved to a new
community and can no longer
attend his old church. He is
currently visiting churches to
make a decision about which one
best serves his needs. In making
his decision, Jackson will engage
in _____ consumer decision
making.
a. limited
b. extended
c. habitual
d. classical
e. routine
ANS: A
SECTION 1 POOL ITEMS
Jackson is familiar with churches
and the services they provide, but
he is unfamiliar with the ones in
his new community.
PTS: 1 REF: 67 OBJ: 05-3
TYPE: App
TOP: AACSB Analytic| TB&E
Model Customer
SECTION 1 POOL ITEMS
28. The electricity for lighting
outdoor billboards is powered by
transformers. The operator of a
company that installs and
manages billboards has
purchased many such
transformers. Today he plans to
buy a replacement for one that
was destroyed by a recent
hurricane. Before making this
purchase, he will look at cost and
also see if he can find one that is
more weatherproof. He wants to
make sure he buys the best
transformer for the job and that
he does not pay more money than
he should. In other words, he will
engage in _____ decision making.
a. limited
SECTION 1 POOL ITEMS
b.
c.
d.
e.
extended
habitual
classical
routine
ANS: A
The billboard operator is familiar
with the product, but he is not
immediately knowledgeable about
the products currently on the
market.
PTS: 1 REF: 67 OBJ: 05-3
TYPE: App
TOP: AACSB Analytic| TB&E
Model Customer
SECTION 1 POOL ITEMS
29. When a consumer is
purchasing an unfamiliar or
expensive product, the consumer
often uses the _____ process.
a. extensive decision making
b. cognitive harmonizing
c. limited problem solving
d. strategic behavior
e. stimulus discrimination
ANS: A PTS: 1 REF:67-68
OBJ: 05-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Customer| TB&E Model Product
SECTION 1 POOL ITEMS
Chapter 19
MULTIPLE CHOICE
1. _____ is a company-wide business
strategy designed to optimize
profitability, revenue, and
customer satisfaction by focusing
on highly defined and precise
customer segments.
a. Organizational optimization
b. Consumer relationship
marketing (CRM)
c. Total quality management
(TQM)
d. Customer relationship
management (CRM)
e. Market aggregation
SECTION 1 POOL ITEMS
ANS: D PTS: 1 REF:293
OBJ: 19-1 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Customer| TB&E Model Strategy
5. Customer relationship
management:
a. is often described as a
closed-loop system
b. only involves personnel in
marketing and management
departments
c. organizes the company
around functional
departments
d. is a very simplistic method
of encouraging customer
SECTION 1 POOL ITEMS
e.
satisfaction
is only a theory and has not
been proven successful in
any practical way
ANS: A
CRM is a company-wide business
strategy designed to optimize
profitability, revenue, and
customer satisfaction by focusing
on highly defined and precise
customer segments.
PTS: 1 REF: 293 OBJ: 19-1
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Customer| TB&E Model Strategy
SECTION 1 POOL ITEMS
6. To initiate the CRM cycle, a
company must first:
a. establish marketing
objectives
b. decide on a segmentation
strategy
c. establish customer
relationships with the
organization
d. determine the level of
interaction customers have
with the organization
e. acquire and capture
customer data for product
categories
ANS: C
PTS:
1 REF:293
SECTION 1 POOL ITEMS
OBJ: 19-1 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Customer| TB&E Model Strategy
8. Which of the following
statements about the CRM cycle
is true?
a. The letters CRM are an
acronym for consumer
relationship marketing.
b. The CRM cycle does not
affect employees outside the
marketing and management
functional areas.
c. The CRM cycle is
continuous and circular
with no predefined start or
SECTION 1 POOL ITEMS
d.
e.
end point.
The CRM cycle takes a
simplistic perspective on
customers.
All of these statements about
the CRM cycle are true.
ANS: C
CRM stands for customer
relationship management.
PTS: 1 REF: 293 OBJ: 19-1
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Customer| TB&E Model Strategy
SECTION 1 POOL ITEMS
9. A company that has a(n) _____
customizes its product offerings
based on data generated through
interaction between the customer
and the company.
a. ethnocentric perspective
b. supply-based focus
c. sales orientation
d. supply-based focus
e. customer-centric focus
ANS: E
A customer-centric focus is
represented by adherence to the
marketing concept.
PTS: 1 REF: 295 OBJ:
TYPE: Def
19-2
SECTION 1 POOL ITEMS
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
12. Customer-centric is an
internal management philosophy
similar to:
a. utilitarianism
b. Herzberg's theory of
motivation
c. the equity theory
d. the marketing concept
e. consumerism
ANS: D PTS: 1 REF:295
OBJ: 19-2 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
SECTION 1 POOL ITEMS
Customer
TOP: AACSB Reflective
Thinking| TB&E Model
Customer| TB&E Model Product
14. In a CRM environment, _____
is defined as the informal process
of collecting customer information
through customer contacts and
feedback on product
performance.
a. corporate modification
b. attitude adjustment
c. organizational perception
d. stimulus/response research
e. learning
SECTION 1 POOL ITEMS
ANS: E
PTS: 1 REF:295296 OBJ: 19-2 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
15. _____ is the process by which
learned information from
customers is centralized and
shared in order to enhance the
relationship between customers
and the organization.
a. Knowledge management
b. Learning
c. Database marketing
d. Interactive marketing
e. Information marketing
SECTION 1 POOL ITEMS
ANS: A PTS: 1 REF:295
OBJ: 19-2 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
17. _____ refers to the latitude
organizations bestow on their
representatives to negotiate
mutually satisfying commitments
with customers.
a. Consumer learning
b. Customerization
c. Empowerment
d. Autonomy
e. Interaction
SECTION 1 POOL ITEMS
ANS: C PTS: 1 REF:296
OBJ: 19-2 TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
19. A(n) _____ is the point at
which a customer and a company
representative exchange
information and develop learning
relationships.
a. social contact
b. interaction
c. empowering moment
d. equilibrium point
e. transactional dyad
SECTION 1 POOL ITEMS
ANS: B
PTS: 1 REF:296
OBJ: 19-2 TYPE: App
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
23. Which of the following
statements about touch points is
true?
a. Data gathered at external
touch points, once
interpreted, provide
information that affects
internal touch points.
b. A customer applying for a
credit card is an example of
a touch point.
SECTION 1 POOL ITEMS
c.
d.
e.
Companies are publicizing
their Web sites as the first
touch point for customer
interactions.
A customer complaint is an
example of an external touch
point.
All of these statements about
touch points are true.
ANS: E
PTS: 1 REF:297
OBJ: 19-3 TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Customer| TB&E Model Strategy
SECTION 1 POOL ITEMS
24. In a CRM system, _____ are
all areas of the business where
customers have contact with the
company and data may be
gathered and used to guide and
direct the decision making within
that business unit.
a. touch points
b. focus areas
c. data mining
d. information search periods
e. observational points
ANS: A PTS: 1 REF:297
OBJ: 19-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
TOP: AACSB Technology|
AACSB Reflective Thinking|
TB&E Model Online/Computer|
TB&E Model Customer
28. _____ interactions occur when
customers buy products in a store.
a. Point-of-sale
b. Relationship-based
c. Cost-based
d. Retail-centric
e. Distribution-focused
ANS: A PTS: 1 REF:297
OBJ: 19-3 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
SECTION 1 POOL ITEMS
29. Which of the following is a
guideline for a successful CRM
system?
a. Customer information is not
retained past the initial
contact with the customer.
b. Intuition and experience
must define the products
provided by the
organization.
c. The product takes center
stage in the organization.
d. Customer information is
kept in a centralized
repository.
e. All of these are guidelines
for a successful CRM
system.
SECTION 1 POOL ITEMS
ANS: D
Customer information is retained
past the initial contact with the
customer. Customer data should
be accumulated over the
customer's entire life span with
the organization.Customers must
define the products provided by
the organization. The customer
takes center stage in the
organization.
PTS: 1 REF: 298-299 OBJ: 195 TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Customer| TB&E Model Strategy
SECTION 1 POOL ITEMS
30. The traditional approach for
acquiring data from customers is
through:
a. encoding devices
b. media
c. feedback mechanisms
d. channel interactions
e. public relations
ANS: D PTS: 1 REF:298
OBJ: 19-4 TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
31. Which of the following is an
example of a channel through
which customer data are
traditionally gathered?
a. store visits
b. conversations with
salespeople
c. interactions via the Web
d. phone conversations
e. all of these
ANS: E
PTS: 1 REF:298
OBJ: 19-4 TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
SECTION 1 POOL ITEMS
32. An organization should view
every transaction as:
a. simply a financial exchange
b. deleterious to customer
relationship management
c. the opportunity to collect
vast amounts of data about
the customer
d. the creation of customerorganization multiplicity
e. the closing of a channel
ANS: C PTS: 1 REF:298
OBJ: 19-4 TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
SECTION 1 POOL ITEMS
33. When viewed as an interaction
between the organization and the
customer, a transaction can
produce all of the following
customer data EXCEPT:
a. name, address, and phone
number
b. information about the
customer's relationship with
other customers
c. past purchase history
d. information about the
customer's relationship with
the organization
e. average amount spent on
purchases
ANS: B
PTS:
1 REF:298
SECTION 1 POOL ITEMS
OBJ: 19-4 TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
34. A(n) _____ is a central
repository for data from various
functional areas of the
organization. These data can be
shared by all of the organization's
departments.
a. information mine
b. knowledge distribution
center
c. information extraction unit
d. information intermediary
e. data warehouse
SECTION 1 POOL ITEMS
ANS: E
PTS: 1 REF:298299 OBJ: 19-5 TYPE: Def
TOP: AACSB Technology|
TB&E Model Online/Computer
37. The core of the data
warehouse is:
a. empowered employees
b. transaction channels of
communication
c. point-of-sale interactions
d. the database
e. a compiled list
ANS: D PTS: 1 REF:298
OBJ: 19-5 TYPE: Def
TOP: AACSB Technology|
SECTION 1 POOL ITEMS
TB&E Model Online/Computer
40. A _____ is essentially a very
large, corporate-wide database,
culled from a number of separate
systems, such as billing,
accounting, order fulfillment,
distribution, customer service,
and marketing and sales, already
in place within an organization.
a. data mart
b. customer information
system
c. data warehouse
d. decision support system
e. data cluster
SECTION 1 POOL ITEMS
ANS: C PTS: 1 REF:298299 OBJ: 19-5 TYPE: Def
TOP: AACSB Technology|
TB&E Model Online/Computer
45. A(n) _____ list generally
includes names and addresses
gleaned from directories or
membership rosters.
a. predictive
b. compiled
c. response
d. actionable
e. disintegrated
ANS: B
PTS: 1 REF:299
OBJ: 19-5 TYPE: Def
SECTION 1 POOL ITEMS
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
47. _____ is the addition of
information to customer or
prospect records for the purpose
of better describing or better
determining the responsiveness of
customers or prospects.
a. Information formatting
b. Database enhancement
c. Data mining
d. Data shading
e. Predictive modeling
ANS: B
PTS:
1 REF:299
SECTION 1 POOL ITEMS
OBJ: 19-5 TYPE: Def
TOP: AACSB Technology||
TB&E Model Online/Computer
SECTION 1 POOL ITEMS
49. Which of the following
statements about a CRM system is
true?
a. A critical component of a
CRM system is the use of
the appropriate technology
to store and integrate
customer data.
b. A CRM system operates on
the theory that all customers
are equally important.
c. Due to privacy laws, a CRM
system only disseminates
customer information to
those who are actually in
day-to-day contact with
customers.
d. A company using a CRM
system must view its
SECTION 1 POOL ITEMS
e.
customers as bits of data.
All of these statements about
a CRM system are true.
ANS: A
The CRM system allows
companies to make use of the
80/20 rule. Customers should be
viewed comprehensively.
PTS: 1 REF: 300 OBJ: 19-1
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model
Customer| TB&E Model Strategy
SECTION 1 POOL ITEMS
50. _____ is the process of finding
hidden patterns and relationships
in the customer data stored in the
data warehouse.
a. Customer information
management (CIS)
b. Data feedback
c. Information retrieval
d. Information extraction
e. Data mining
ANS: E
PTS: 1 REF:300
OBJ: 19-6 TYPE: Def
TOP: AACSB Technology|
TB&E Model Online/Computer
SECTION 1 POOL ITEMS
57. Which of the following
techniques used to analyze
marketing databases considers
whether a customer has made a
purchase recently as well as how
often that customer makes a
purchase?
a. recency-frequencymonetary analysis (RFM)
b. predictive modeling
c. customer valuation
d. data mining
e. lifetime value analysis
ANS: A PTS: 1 REF:300
OBJ: 19-6 TYPE: Def
TOP: AACSB Technology|
TB&E Model Customer
SECTION 1 POOL ITEMS
58. The basic assumption of _____
is that marketing to repeat
customers is more profitable than
marketing to first-time buyers.
a. customer segmentation
b. predictive modeling
c. customer valuation
d. data manipulation
e. lifetime value analysis
ANS: E
SECTION 1 POOL ITEMS
Lifetime value analysis is a data
manipulation technique that
projects the future value of the
customer over a period of years
using the assumption that
marketing to repeat customers is
more profitable than marketing to
first-time buyers.
PTS: 1 REF: 300 OBJ: 19-6
TYPE: Comp
TOP: AACSB Reflective
Thinking| TB&E Model Strategy
SECTION 1 POOL ITEMS
59. Designer Linens Outlet uses
CRM to track visitors to its Web
site. This tracking allows the
retailer to confidently project the
value of its repeat customers
through its application of:
a. customer segmentation
b. predictive modeling
c. customer valuation
d. data manipulation
e. lifetime value analysis
ANS: E
SECTION 1 POOL ITEMS
Lifetime value analysis is a data
manipulation technique that
projects the future value of the
customer over a period of years
using the assumption that
marketing to repeat customers is
more profitable than marketing to
first-time buyers.
PTS: 1 REF: 300 OBJ: 19-6
TYPE: App
TOP: AACSB Technology|
TB&E Model Customer| TB&E
Model Online/Computer
SECTION 1 POOL ITEMS
60. _____ uses a past set of
occurrences to predict the
likelihood that some other
occurrence, such as a response or
purchase, will take place in the
future.
a. Customer manipulation
b. Predictive modeling
c. Data mining
d. Lifetime value analysis
e. Causal research
ANS: B
PTS: 1 REF:301
OBJ: 19-6 TYPE: Def
TOP: AACSB Technology|
TB&E Model Strategy
SECTION 1 POOL ITEMS
65. _____ involves developing
product offerings customized for
the appropriate customer segment
and then pricing and
communicating these offerings for
the purpose of enhancing
customer relationships.
a. Transaction management
b. Campaign management
c. Data mining
d. Consumerism
e. Knowledge management
ANS: B
PTS: 1 REF:302
OBJ: 19-7 TYPE: Def
TOP: AACSB Reflective
Thinking| TB&E Model
Customer
SECTION 1 POOL ITEMS