Test Bank For Basic Marketing: A Marketing Strategy Planning Approach, 18th Edition

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Chapter 01-Marketing's Value to Consumers, Firms, and Society1-1Chapter 01Marketing's Value to Consumers, Firms, and SocietyTrue / False Questions1.Marketing is basically selling and advertising.TrueFalse2.According to the text, marketing means "selling" or "advertising."TrueFalse3.Marketing, in the literal sense, means "selling" or "advertising."TrueFalse4.Marketing means "promotion and selling."TrueFalse5.Actually making goods or performing services is called marketing.TrueFalse6.Estimating what price consumers are willing to pay for a product and if the firm can make aprofit selling at that price, is an example of a production activity.TrueFalse

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Chapter 01-Marketing's Value to Consumers, Firms, and Society1-27.Marketing can provide needed direction for production and help make sure that the rightgoods and services find their way to interested consumers.TrueFalse8.Marketing plays an essential role in creating customer satisfaction.TrueFalse9.Customer satisfaction is the extent to which a firm fulfills a consumer's needs, desires, andexpectations.TrueFalse10.If a firm produces the right goods or services, marketing has little role to play in creatingcustomer satisfaction.TrueFalse11.It is estimated that marketing costs about 50 percent of each consumer's dollar.TrueFalse12.In advanced economies, marketing costs only about 10 percent of each consumer's dollar.TrueFalse13.Marketing encourages the development and spread of new ideas, goods, and services.TrueFalse14.Marketing discourages the development and spread of new ideas, goods, and services.TrueFalse

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Chapter 01-Marketing's Value to Consumers, Firms, and Society1-315.Marketing is both a set of activities performed by organizations and a social process.TrueFalse16.Marketing can be viewed as a set of activities performed by organizations, but not as asocial process.TrueFalse17.Marketing can be viewed as a social process, but not as a set of activities performed byorganizations.TrueFalse18.The micro view of marketing sees it as the performance of activities that seek toaccomplish an organization's objectives by anticipating customer or client needs and directinga flow of need-satisfying goods and services from producer to customer or client.TrueFalse19.Marketing is the performance of activities that seek to accomplish an organization'sobjectives by anticipating customer or client needs and directing a flow of need-satisfyinggoods and services from producer to customer or client.TrueFalse20.The micro view of marketing is mainly concerned with the activities performed byorganizations.TrueFalse21.From a micro view, marketing activities are performed only by profit-orientedorganizations.TrueFalse

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Chapter 01-Marketing's Value to Consumers, Firms, and Society1-422.Marketing only applies to profit organizations.TrueFalse23.Marketing only applies to for-profit organizations.TrueFalse24.Marketing activities should be of no interest to a nonprofit organization.TrueFalse25.Marketing activities should begin with potential customer needs, not with the productionprocess.TrueFalse26.Production, not marketing, should determine what products are to be made.TrueFalse27.Marketing should begin with the production process.TrueFalse28.Marketing does not occur unless there are two or more parties who want to exchangesomething for something else.TrueFalse29.Marketing does not occur unless two or more parties are willing to exchange somethingfor something else.TrueFalse

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Chapter 01-Marketing's Value to Consumers, Firms, and Society1-530.Marketing doesn't occur unless two or more parties are willing to exchange one item foranother.TrueFalse31.In a pure subsistence economy--when each family unit produces everything it consumes--no marketing is involved.TrueFalse32.A marketing exchange is a single transaction between a firm and a customer, nothingmore.TrueFalse33.Marketing is concerned with individual transactions rather than with building ongoingrelationships with customers because that is the job of people in the public relationsdepartment.TrueFalse34.Macro-marketing emphasizes how the whole marketing system works.TrueFalse35.Micro-marketing is a social process that directs an economy's flow of goods and servicesfrom producers to consumers in a way that effectively matches supply and demand andaccomplishes society's objectives.TrueFalse36.Macro-marketing is a set of activities that direct an economy's flow of goods and servicesfrom producers to consumers in a way which effectively matches supply and demand andaccomplishes the objectives of society.TrueFalse

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Chapter 01-Marketing's Value to Consumers, Firms, and Society1-637.Macro-marketing emphasizes how the whole system works, rather than the activities ofindividual organizations.TrueFalse38.Macro-marketing emphasizes the activities of individual organizations.TrueFalse39.Macro-marketing is concerned with examining the relationship of the entire productionand distribution system.TrueFalse40.An effective macro-marketing system matches heterogeneous supply with heterogeneousdemand.TrueFalse41.Effective marketing in an advanced economy is difficult because producers andconsumers are often separated in several levels.TrueFalse42.Achieving effective marketing in an advanced economy is simplified by the fact thatproducers are separated from consumers in only two ways: time and space.TrueFalse43."Economies of scale" means that as a company produces larger numbers of a particularproduct, the cost for each unit of the product goes down.TrueFalse

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Chapter 01-Marketing's Value to Consumers, Firms, and Society1-744."Economies of scale" prevent a company from taking advantage of mass production.TrueFalse45."Economies of scale" means that as a company produces more of a product the total costof production goes up.TrueFalse46."Economies of scale" means that as a company produces more of a product the cost ofeach unit produced goes down.TrueFalse47.In advanced societies, all goods and services can be produced with mass production andits economies of scale.TrueFalse48.Both mass production and effective marketing are needed to satisfy the economic needs ofan advanced economy.TrueFalse49.An effective macro-marketing system overcomes discrepancies of quantity anddiscrepancies of assortment by using the universal functions of marketing.TrueFalse50.The universal functions of marketing include buying, selling, transporting, storing,standardization and grading, financing, risk taking, and market information.TrueFalse

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Chapter 01-Marketing's Value to Consumers, Firms, and Society1-851.The "universal functions of marketing" consist only of buying, selling, transporting, andstoring.TrueFalse52.Buying, selling, transporting and storing are all universal marketing functions.TrueFalse53.The universal functions of marketing are performed in the same way in all nations andeconomic systems.TrueFalse54.Marketing functions are performed by producers, consumers, and a variety of marketingspecialists.TrueFalse55.Intermediaries specialize in trade and production.TrueFalse56.The advantages of working with intermediaries increase as the number of producers andcustomers, their distance apart, and the number and variety of competing products increase.TrueFalse57.While intermediaries facilitate exchange, their cost makes the whole macro-marketingsystem less efficient.TrueFalse

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Chapter 01-Marketing's Value to Consumers, Firms, and Society1-958.Marketing collaborators are any firms that provide the marketing functions of buying andselling.TrueFalse59.Marketing specialists such as intermediaries and collaborators hinder the exchangeprocess between producers and consumers.TrueFalse60.E-commerce refers to exchanges between individuals and organizations--and the activitiesthat facilitate those exchanges--based on applications of information technology.TrueFalse61.E-commerce refers to exchanges between organizations (not individuals) and the activitiesthat facilitate those exchanges.TrueFalse62.E-commerce refers to exchanges between organizations, but not exchanges betweenindividuals.TrueFalse63.E-commerce refers to exchanges between individuals, but not exchanges betweenorganizations.TrueFalse64.Compared to other innovations, firms have been relatively slow to adopt e-commerce.TrueFalse

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Chapter 01-Marketing's Value to Consumers, Firms, and Society1-1065.Marketing costs go down and customer satisfaction goes up in all exchanges handled by e-commerce.TrueFalse66.Responsibility for performing the marketing functions can be shifted and shared in avariety of ways, but no function can be completely eliminated.TrueFalse67.Not all societies need an economic system.TrueFalse68.An economic system is the way an economy organizes to use scarce resources to producegoods and services and distribute them for consumption among various people and groups inthe society.TrueFalse69.Only industrial nations need an economic system to decide what and how much is to beproduced and distributed by whom, when, to whom, and why.TrueFalse70.In a command economy, producers generally have little choice about what goods andservices to produce.TrueFalse71.In a command economy, the individual decisions of many producers and consumers makethe macro-level decisions for the whole economy.TrueFalse

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Chapter 01-Marketing's Value to Consumers, Firms, and Society1-1172.A market-directed economy is one in which government officials decide what and howmuch is to be produced and distributed by whom, when, to whom, and why.TrueFalse73.In a market-directed economy, government officials decide what and how much is to beproduced and distributed by whom, when, to whom, and why.TrueFalse74.In a market-directed economy, price is a rough measure of how society values particulargoods and services.TrueFalse75.Market-directed economies tend to provide consumers with greater freedom of choicethan command economies.TrueFalse76.In a market-directed economy, consumers enjoy complete freedom of choice.TrueFalse77.In a market-directed economy, profit is guaranteed.TrueFalse78.Most Western economies are completely market-directed.TrueFalse79.The American economy is entirely market-directed.TrueFalse

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Chapter 01-Marketing's Value to Consumers, Firms, and Society1-1280.The American economy and most other Western economies are completely market-directed.TrueFalse81.Whether a particular macro-marketing system is judged fair and effective depends on theobjectives of the society.TrueFalse82.The simple trade era was a time when families traded or sold their "surplus" output tolocal distributors who resold these goods to other consumers or distant distributors.TrueFalse83.During the "production era" a company focuses on production--because few products areavailable in the market.TrueFalse84.From the Industrial Revolution until the 1920s, most companies were in the productionera.TrueFalse85.During the "sales era," the firm tries to improve short-run marketing policy planning to tietogether its activities.TrueFalse86.Marketing departments are usually formed when firms go from the "production era" to the"sales era."TrueFalse

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Chapter 01-Marketing's Value to Consumers, Firms, and Society1-1387.The "marketing department era" is a time when all marketing activities are brought underthe control of one department.TrueFalse88.During the "marketing company era," the total company effort is guided by the idea thatcustomers exist to buy the firm's output.TrueFalse89.A company has moved into the "marketing company era" when, in addition to short-runmarketing planning, the total company effort is guided by the marketing concept.TrueFalse90.The marketing concept means that an organization aims all its efforts at satisfying itscustomers—at a profit.TrueFalse91.The marketing concept says that a firm should aim all its efforts at satisfying customers,even if this proves to be unprofitable.TrueFalse92.The "marketing concept" means that a firm emphasizes attracting new customers above allother objectives.TrueFalse93.A firm that adopts the "marketing concept" will aim all its efforts at satisfying customers,while trying to make a profit.TrueFalse

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Chapter 01-Marketing's Value to Consumers, Firms, and Society1-1494.A firm that makes products which are easy to produce and then tries to sell them has aproduction orientation.TrueFalse95.The term "marketing orientation" means making products that are easy to produce andthen trying to sell them.TrueFalse96.A marketing-oriented firm would try to produce what customers want, while a production-oriented firm would try to get customers to buy what the firm has produced.TrueFalse97.The three basic ideas in the marketing concept are 1) putting the marketing manager incharge of the whole firm, 2) a competitive orientation, and 3) an emphasis on profit.TrueFalse98.When a firm makes a total company effort to satisfy its customers, and profit--not justsales--is an objective of the firm, the company is practicing the "marketing concept."TrueFalse99.The three basic ideas included in the definition of the marketing concept are: customersatisfaction, a total company effort, and sales as an objective.TrueFalse100.The three basic ideas in the marketing concept are: 1) customer satisfaction; 2) confiningmarketing activities to marketing professionals; and 3) having profit as an objective.TrueFalse

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Chapter 01-Marketing's Value to Consumers, Firms, and Society1-15101.Adopting the marketing concept rarely requires any change in a firm's attitudes,organization structure, or management methods and procedures.TrueFalse102.Adopting the marketing concept requires that a business firm eliminate all functionaldepartments.TrueFalse103.There are no functional departments in a firm that has adopted the marketing concept.TrueFalse104.In a firm which practices the marketing concept, the efforts of each functionaldepartment are guided by what it does best.TrueFalse105.The marketing concept was very quickly accepted, especially among producers ofindustrial commodities like steel and glass.TrueFalse106.Producers who operate in a competitive environment are more likely to adopt themarketing concept.TrueFalse107.Adoption of the marketing concept is now universal.TrueFalse

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