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Marketing , 5th Edition Test Bank

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    NETA TEST BANK to accompany Prepared by Michael Wade Seneca College of Applied Arts and Technology

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    iii Table of Contents Chapter 1 An Overview of Marketing................................................................................... 1-1 Chapter 2 Strategic Planning for Competitive Advantage ................................................... 2-1 Chapter 3 Ethics and the Marketing Environment ............................................................... 3-1 Chapter 4 Consumer Decision Making ................................................................................ 4-1 Chapter 5 Business Marketing .............................................................................................. 5-1 Chapter 6 Segmenting and Targeting Markets ..................................................................... 6-1 Chapter 7 Decision Support Systems and Marketing Research ........................................... 7-1 Chapter 8 Product Concepts ................................................................................................. 8-1 Chapter 9 Developing and Managing Products .................................................................... 9-1 Chapter 10 Services and Nonprofit Organization Marketing ............................................. 10-1 Chapter 11 Marketing Channels and Supply Chain Management ...................................... 11-1 Chapter 12 Retailing ........................................................................................................... 12-1 Chapter 13 Integrated Marketing Communications ........................................................... 13-1 Chapter 14 Advertising and Public Relations .................................................................... 14-1 Chapter 15 Sales Promotion and Personal Selling .............................................................. 15-1 Chapter 16 Pricing Concepts ............................................................................................... 16-1 Chapter 17 Setting the Right Price ..................................................................................... 17-1 Chapter 18 Customer Relationship Management (CRM) ................................................... 18-1 Chapter 19 Marketing on the Web ..................................................................................... 19-1

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    v Preface The Nelson Education Teaching Advantage (NETA) program is deliver research-based resources that promote student engagement and higher-order thinking and enable the success of Canadian students and educators. The primary NETA components are a Guide for Classroom Engagement and our Testing Advantage resources. NETA Test Bank Nelson Education Ltd. understands that a good quality multiple-choice test bank can provide the means to measure higher-level thinking skills as well as recall. Recognizing the importance of multiple-choice testing in today’s classroom, we have created the Nelson Education Testing Advantage program (NETA) to ensure the value of our high quality test banks. The test bank for Marketing , fifth Canadian edition, was prepared by Michael Wade, Seneca College of Applied Arts and Technology, and was developed through the NETA training by Ackroyd/ Macdonald/McCollum/Montague/Morante/Ogilvie/Venkateswaran. This test bank offers the Premium Nelson Education Testing Advantage. NETA was created in partnership with David DiBattista, a 3M National Teaching Fellow, professor of psychology at Brock University, and researcher in the area of multiple-choice testing. NETA ensures that subject-matter experts who author test banks have had training in two areas: avoiding common errors in test construction, and developing multiple-choice test questions that “get beyond remembering” to assess higher-level thinking. In addition, Professor DiBattista confirms the subject-matter expert’s understanding of and adherence to the NETA principles through a review. All Premium NETA test banks include David DiBattista’s guide for instructors, “Multiple Choice Tests: Getting Beyond Remembering.” This guide has been designed to assist you in using Nelson test banks to achieve your desired outcomes in your course. This test bank also contains over 3300 questions in multiple-choice, true/false, and essay type format. Answers (ANS) are provided along with text page references (REF); a rationale (RAT), if needed; Learning Objective (OBJ) tied to the text; difficulty type (DIF); a grading point (PTS); and the Bloom Taxonomy Category (BLM) for each question.

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    1-1 Chapter 1—An Overview of Marketing MULTIPLE CHOICE 1. What is the definition of marketing? a. planning sales campaigns b. selling c. advertising and promotion activities d. a philosophy that stresses customer satisfaction ANS: D PTS: 1 DIF: Definition REF: p. 4 OBJ: 1 BLM: Remember 2. A business is concerned with many day-to-day activities. Some of the most important are the planning and conception of the product or service, its pricing policy, and the distribution strategy. What are these activities part of? a. human resources b. production c. marketing d. accounting ANS: C This description contains three of the four main activities included in the marketing function. Many students may mistakenly believe that marketing is concerned only with promotion. PTS: 1 DIF: Comprehension REF: p. 4 OBJ: 1 BLM: Remember 3. Which of the following is a set of activities used to implement a management orientation that stresses customer satisfaction? a. a control system b. customer management c. planning strategy d. marketing ANS: D PTS: 1 DIF: Definition REF: p. 4 OBJ: 1 BLM: Remember 4. Marketing is an organizational function and a set of processes for creating, communicating, and delivering which one of the following to customers? a. sales b. benefits c. satisfaction d. value ANS: D PTS: 1 DIF: Definition REF: p. 4 OBJ: 1 BLM: Remember

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    1-2 5. The idea that people give up something in order to receive something that they would rather have is a key ingredient in marketing. What is this called? a. exchange b. synergy c. reciprocity d. promotion ANS: A PTS: 1 DIF: Definition REF: p. 4 OBJ: 1 BLM: Remember 6. What must happen in order for exchange to occur? a. Each party must have something of value to the other party. b. A profit-oriented organization must be involved. c. Organized marketing activities must also occur. d. Money or other legal tender is required. ANS: A Exchange involves the trade of items of value, but does not necessarily involve formal organizations, profit, or money/legal tender. PTS: 1 DIF: Comprehension REF: p. 4 OBJ: 1 BLM: Remember 7. For an exchange to take place, what must happen? a. At least one person must have something of value. b. Each party must feel obligated to accept the offer. c. Money must be present. d. There must be at least two parties. ANS: D PTS: 1 DIF: Comprehension REF: p. 4 OBJ: 1 BLM: Remember 8. Why is the concept of exchange important to marketing? a. Marketing activities help to create exchange. b. Money is the only medium of exchange for business marketers. c. Exchange provides money to marketers. d. Marketing activities are a requirement for exchange to take place. ANS: A Marketing activities help the exchange to take place, but marketing can occur without an exchange. PTS: 1 DIF: Comprehension REF: p. 4 OBJ: 1 BLM: Remember

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    1-3 9. Kurt Meyer wants to sell a Model T Ford that he inherited from his grandfather. A preliminary investigation has shown many people would be interested in this type of automobile. He has taken out an advertisement in his local auto trade paper and provided customers with a toll-free number to make an appointment to drive the car. He has also read in the auto trade papers that similar cars to the one that he owns are selling for about $4,000. Before selling his Model T, what else should Meyer find out? a. whether the car can meet the demands of potential customers b. how to promote the car to generate significant visibility for the ad c. where the car should be located to secure optimum drive-up business d. how to price the car so that customers will seek out his vehicle ANS: A For an exchange to take place, each party must have something the other values, the parties must be able to communicate, and each party must believe that it is appropriate to deal with the other. PTS: 1 DIF: Application REF: p. 4 OBJ: 1 BLM: Higher order 10. If the local chapter of the Canadian Diabetes Association (CDA) sponsors a free lifesaving course, city residents will not have to pay to take the class. Why will an exchange take place? a. The CDA does not have to communicate with class participants. b. People who take the course have to give nothing of value in return. c. Both the CDA and the people taking the course will trade something of value. d. People can decide the course has no value. ANS: C If the course has no value, then an exchange cannot occur. Without communication, the exchange of knowledge for time and energy cannot occur. In an exchange, each participant has something of value to the other. For an exchange to occur, each party must believe it is desirable. PTS: 1 DIF: Application REF: p. 4 OBJ: 1 BLM: Higher order 11. Four competing philosophies strongly influence the role of marketing and marketing activities within an organization. Which if the following is a marketing management philosophy? a. accounting orientation b. sales orientation c. profitability orientation d. social networking orientation ANS: B PTS: 1 DIF: Comprehension REF: p. 5 OBJ: 2 BLM: Remember

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    1-4 12. Firms with which of the following orientations focus on the internal capabilities of the firm rather than on the desires and needs of the marketplace? a. production b. customer c. marketing d. sales ANS: A PTS: 1 DIF: Definition REF: p. 5 OBJ: 2 BLM: Remember 13. A company that sets its goals and strategies based on what the current plant equipment can produce, what products engineering can design, and what the company itself can do best, has which of the following types of orientation? a. exchange b. sales c. market d. production ANS: D PTS: 1 DIF: Definition REF: p. 5 OBJ: 2 BLM: Remember 14. Researchers at PPG Industries spent considerable time, effort, and money developing a bluish windshield that would let in filtered sunlight but block out heat. Little market research was done, but the scientists were convinced that this new product would be significantly better than existing windshields even though they were more expensive and of a different colour than the current models on the market. What type of orientation does PPG most likely have? a. sales b. customer c. production d. promotion ANS: C The questions asked before starting their new product were “What can we do best?” and “What can we make with the equipment we already own?” This is a production orientation. PTS: 1 DIF: Application REF: p. 5 OBJ: 2 BLM: Higher order 15. The owner of a company that produces copy paper once said, “People buy whatever copy paper is the cheapest, so I spend my time trying to find ways I can cut my price.” What kind of orientation toward marketing does this owner have? a. production b. sales c. discount d. customer ANS: A A focus on lowering costs and prices is typical of a production orientation. PTS: 1 DIF: Application REF: p. 5 OBJ: 2 BLM: Higher order

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    1-5 16. In which of the following situations is a firm with a production orientation most likely to survive? a. when supply for the product it produces exceeds demand b. when demand for the product it produces exceeds supply c. when there are many small competitors in the marketplace d. when needs of the marketplace are shifting 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 DIF: Comprehension REF: p. 5 OBJ: 2 BLM: Higher order 17. Which of the following orientations to marketing fails to consider whether what the firm produces most efficiently also meets the needs of the marketplace? a. customer b. production c. market d. product ANS: B 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 DIF: Comprehension REF: p. 5 OBJ: 2 BLM: Remember 18. Mimi Couturier is a design company that specializes in formalwear for women. The company’s fashion innovators use computer-assisted design software to create what they think women should wear. The company regularly hires industry experts to examine construction work areas to find waste and inefficiencies that can be eliminated. However, for the last two years Mimi Couturier has lost money, and it has had to lay off some of its work force. What should the company do to avoid this occurrence in future? a. increase its sales force to find more potential customers for the firm b. hire more retail efficiency experts to trace down any production problems c. have someone to study its target market to see what needs and wants should be met by Mimi Couturier d. cut prices so that its prices are at least 10 percent below those of its competitors ANS: C Mimi Couturier has been production oriented. It should develop a marketing orientation, which means the firm will produce only those items needed by its target market. PTS: 1 DIF: Application REF: p. 5 OBJ: 2 BLM: Higher order

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    1-6 19. Which orientation assumes that people are resistant to buying products that are not absolutely necessary? a. sales b. marketing c. customer d. production ANS: A The sales orientation assumes that aggressive selling is what is needed to increase demand. PTS: 1 DIF: Comprehension REF: p. 5 OBJ: 2 BLM: Remember 20. Which orientation of people will buy more goods and services if aggressive marketing techniques are used? a. sales b. production c. customer d. marketing ANS: A PTS: 1 DIF: Definition REF: p. 5 OBJ: 2 BLM: Remember 21. Lawler Landscaping Company sells all kinds of ornamental plants. Lawler’s management believes that its customers will buy more plants if its salespeople use aggressive marketing techniques because ornamental plants are nonessential items for most homeowners. What type of orientation does Lawler have? a. production b. marketing c. sales d. customer ANS: C Only the sales orientation assumes that aggressive sales techniques will sell more product, regardless of customer desires and needs. PTS: 1 DIF: Definition REF: p. 5 OBJ: 2 BLM: Higher order 22. If a company uses a sales orientation, what will consumer complaints most likely result in? a. attempts to cut production costs b. product reinvention c. continuous market research d. a modification of the sales presentation ANS: D The sales orientation relies on aggressive sales techniques to fuel business. PTS: 1 DIF: Comprehension REF: p. 5 OBJ: 2 BLM: Remember

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    1-7 23. Which of the following statements about a typical sales-oriented business is true? a. The company directs its products to specific groups of people. b. The company is in business to satisfy customers’ wants and needs and deliver superior value. c. The company invests the majority of its resources in promoting its products and services. d. The primary goal of the company is profit through customer satisfaction. ANS: C PTS: 1 DIF: Comprehension REF: p. 5 OBJ: 3 BLM: Remember 24. For many years, Procter & Gamble (P&G) viewed its Ivory soap as just plain old soap—and not as a cleansing product that could provide other benefits as well. When it came to Ivory soap, P&G focused on how well it made the soap and not on what customers wanted from a bar of soap. What sort of orientation did P&G have? a. customer b. product c. sales d. market ANS: C PTS: 1 DIF: Application REF: p. 5 OBJ: 2 BLM: Higher order 25. Because organizations that sell unsought products, such as cemetery plots, are marketing products that most people do not want, which sort of orientation might the companies adopt? a. product b. customer c. marketing d. sales ANS: D Aggressive selling is sometimes used by companies that sell products their customers do not want to buy. PTS: 1 DIF: Application REF: p. 5 OBJ: 2 BLM: Remember 26. For years, the slogan used in all the advertising done by British Airways was “Putting people first.” In this short phase, what did British Airways capture the idea of? a. the marketing concept b. the societal concept c. Maslow’s hierarchy of needs d. the sales orientation philosophy ANS: A The marketing concept justifies a company’s existence by its ability to satisfy customers. PTS: 1 DIF: Application REF: p. 6 OBJ: 2 BLM: Higher order

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    1-8 27. When a homeowner visited The Home Depot to buy what he thought he needed to fix a leaking toilet, he gathered up materials totalling almost $70. One his way to checkout, an employee asked him what was he trying to fix. After some discussion, the employee convinced the homeowner that a $5.99 replacement part would fix the problem better than the materials he thought he needed and with less trouble. This sort of discussion between employees and customers is commonplace at The Home Depot. What sort of orientation does the retail store have? a. market b. sales c. production d. product ANS: A PTS: 1 DIF: Application REF: p. 6 OBJ: 2 BLM: Higher order 28. World Wrestling Entertainment (formerly the World Wrestling Federation) is very focused on what its fans want in terms of product licensing and, more importantly, in terms of plot lines and character development. All of the company’s activities are integrated so that no employee ever loses sight of the company’s desire to satisfy its fans. What sort of orientation does World Wrestling Entertainment have? a. sales b. production c. product d. market ANS: D PTS: 1 DIF: Application REF: p. 6 OBJ: 2 BLM: Higher order 29. What does achieving a market orientation involve? a. implementing actions to provide satisfaction for employees b. determining how to deliver superior customer value c. doing research on suppliers and competitors d. establishing and maintaining mutually satisfying relationships with suppliers ANS: B PTS: 1 DIF: Comprehension REF: p. 6 OBJ: 2 BLM: Remember 30. Walmart has become the leading discount retailer in Canada and the world by focusing on the customer’s needs and wants. This philosophy is at the heart of which orientation? a. production b. market c. sales d. retail ANS: B PTS: 1 DIF: Application REF: p. 6 OBJ: 2 BLM: Remember

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    1-9 31. What do the marketing concept and market orientation recognize? a. Sales depend predominantly on an aggressive sales force. b. What the customer thinks he is buying is what is important. c. Price is the most important variable for customers. d. Selling and marketing are essentially the same thing. ANS: B The perceived product and perceived value are what the customer is buying, and the marketing concept and market orientation have attempted to understand those perceptions. PTS: 1 DIF: Comprehension REF: p. 6 OBJ: 2 BLM: Remember 32. What does a company do if it has a market orientation and adheres to the marketing concept? a. integrate all the activities of the firm to satisfy customer wants b. differentiate a firm’s current products from its past products c. focus on consumer complaints d. fuel sales growth through the application of aggressive sales techniques ANS: A Integrating all the firm’s activities around the marketing concept is essential to its success. PTS: 1 DIF: Comprehension REF: p. 6 OBJ: 2 BLM: Remember 33. 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 which orientation? a. market b. sales c. enterprise d. production ANS: A Understanding the competitive arena and competitors’ strengths and weaknesses is a critical component of market orientation. PTS: 1 DIF: Comprehension REF: p. 6 OBJ: 2 BLM: Higher order

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    1-10 34. The manufacturer of Rossignol brand skis has a market orientation and adheres to the marketing concept. What would the company most likely do first when reacting to consumer dissatisfaction? a. hire more salespeople b. increase the number of sporting goods stores that carry Rossignol skis c. increase its advertising to underserved markets d. conduct research to determine if its customers’ needs have changed ANS: D A marketing concept and market-oriented philosophy is based on the consumer’s wants and needs, and the organization will focus its activities on satisfying these customers by listening to them and revising strategies as necessary. PTS: 1 DIF: Comprehension REF: p. 6 OBJ: 2 BLM: Higher order 35. What does the marketing concept involve? a. selling as much product as possible under the assumption that people will buy more goods and services if aggressive selling techniques are used b. satisfying management’s needs and wants with the idea of maximizing profits in the short run c. focusing on customers’ wants so that the organization can distinguish its product (or products) from the competitors’ products d. selling as much as possible under the assumption that consumers will buy more at lower prices ANS: C PTS: 1 DIF: Definition REF: p. 6 OBJ: 2 BLM: Remember 36. What is the main focus of a marketing-oriented firm? a. outward upon the wants and needs of customers b. inward upon the abilities to deliver goods and services c. outward upon societal responsibilities d. inward upon the organization’s needs ANS: A Marketing-oriented firms are focused outward toward their customers. PTS: 1 DIF: Comprehension REF: p. 6 OBJ: 3 BLM: Remember 37. Which of the following is a viable method a company can use to become more marketing oriented? a. Implement employee-only meetings. b. Make sure all employees are customer oriented. c. Train employees to focus on profit maximization. d. Train employees in the latest aggressive selling techniques. ANS: B The marketing orientation relies on customer satisfaction rather than the latest sales techniques. PTS: 1 DIF: Comprehension REF: p. 6 OBJ: 3 BLM: Remember

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    1-11 38. Which of the following measures would be the best indicator of whether your organization’s personnel have a customer orientation? a. Test employees on their knowledge of customer service techniques. b. Assess each employee’s impact on the profitability of the firm. c. Ask each employee’s boss if that person is customer oriented. d. Survey customers on how oriented the organization’s personnel are to customer needs and desire. ANS: D 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 DIF: Comprehension REF: p. 6 OBJ: 3 BLM: Higher order 39. The marketing concept includes a goal orientation to remind managers of which of the following? a. The only reason for any business to exist is to make a profit. b. Achieving long-term organizational goals is as important as satisfying customers. c. The objective is to find a target market that differs from that of the competition. d. Customers must be satisfied no matter what the organizational costs. ANS: B The goal orientation refers to the company’s goals, such as profit, growth, service, and survival. PTS: 1 DIF: Comprehension REF: p. 6 OBJ: 2 BLM: Remember 40. The marketing concept stresses that the social and economic justification for an organization’s existence is the satisfaction of customer needs and wants while doing which of the following? a. simultaneously meeting organization objectives b. applying scientific management techniques to improve efficiency c. producing a good or service at the lowest possible cost d. constantly increasing sales volumes ANS: A The marketing concept holds that the needs and wants of both the customer and the firm must be served. PTS: 1 DIF: Comprehension REF: p. 6 OBJ: 2 BLM: Remember

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    1-12 41. You are in charge of the marketing program at Cedarstream, a manufacturer of recreational vehicles, and have been asked to create a company that acts in compliance with the marketing concept and has a market orientation. What will you most likely do as your first action? a. hire new salespeople to find new customers for Cedarstream vehicles b. create cross-functional entrepreneurial teams to overcome the difficulty of getting people from different functional areas to work together in developing new products. c. reorganize the company and make marketing the most important department d. expand the advertising budget so that potential customers will be more aware of Cedarstream’s products ANS: B Market-oriented companies are successful in getting all business functions working together to deliver customer value. PTS: 1 DIF: Application REF: p. 6 OBJ: 2 BLM: Higher order 42. Suppose an organization 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 long-term best interests. What type of orientation does it have? a. sales orientation b. marketing orientation c. focused target market strategy d. societal orientation ANS: D PTS: 1 DIF: Definition REF: p. 7 OBJ: 2 BLM: Remember 43. Most companies become sensitized to community issues after they’ve done enough damage to draw the locals’ anger. Dofasco, Inc., a highly successful steel company in Ontario, tries to get ahead of business and community issues by annually bringing together representatives from the local area and deciding what projects to improve the local environment will be implemented. What type of orientation does Dofasco have as indicated by this annual community-wide meeting? a. sales b. societal marketing c. production d. product ANS: B Societal marketing orientation is the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve individuals’ and society’s long-term best interest. PTS: 1 DIF: Application REF: p. 7 OBJ: 2 BLM: Higher order

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