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Test Bank For Contemporary Marketing, 16th Edition

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    Chapter 1: Marketing: The Art and Science of Satisfying Customers TRUE/FALSE 1. Information technologies give organizations fast new ways to interact and develop long - term relationships with their customers and suppliers. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 1 NAT: BUSPROG: Analytic STA: DISC: Customer TOP: A - Head: What Is Marketing? KEY: Bloom's: Knowledge 2. Production and marketing of goods and services are two basic functions that create utility. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 1 NAT: BUSPROG: Analytic STA: DISC: Customer TOP: A - Head: What Is Marketing? KEY: Bloom's: Knowledge 3. Form utility refers to conversion of raw materials and components into finished goods and services. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 1 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: What Is Marketing? KEY: Bloom's: Knowledge 4. An auto manufacturer creates ownership utility for its consumers by combining metal, rubber, plastic and petroleum products. ANS: F PTS: 1 DIF: Difficulty: Moderate OBJ: LO: 1 - 1 NAT: BUSPROG: Reflective Thinking STA: DISC: Customer TOP: A - Head: What Is Marketing? KEY: Bloom's: Application 5. Within a business environment, the marketing function is responsible for the creation of time, place, and ownership utility, whereas the production function creates form utility. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 1 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: What Is Marketing? KEY: Bloom's: Knowledge 6. Buying an iPod generates ownership utility; however, buying a concert ticket does not. ANS: F PTS: 1 DIF: Difficulty: Moderate OBJ: LO: 1 - 1 NAT: BUSPROG: Reflective Thinking STA: DISC: Customer TOP: A - Head: What Is Marketing? KEY: Bloom's: Application 7. Owen buys a car for himself. Owen has created ownership utility. ANS: T PTS: 1 DIF: Difficulty: Moderate OBJ: LO: 1 - 1 NAT: BUSPROG: Reflective thinking STA: DISC: Customer TOP: A - Head: What Is Marketing? KEY: Bloom's: Application 8. An organization creates a customer through a three - step approach: identifying needs in the marketplace, finding out which needs the organization can profitably serve, and developing goods and services to convert potential buyers into customers.

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    ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 1 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: What Is Marketing? KEY: Bloom's: Knowledge 9. The expanded concept of marketing activities permeates all functions in businesses and not - for profit organizations. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 1 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: What Is Marketing? KEY: Bloom's: Knowledge 10. Marketing is the organizational function that refers to all forms of selling from institutional sales to personal selling. ANS: F PTS: 1 DIF: Difficulty: Challenging OBJ: LO: 1 - 1 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan TOP: A - Head: What Is Marketing? KEY: Bloom's: Knowledge 11. Marketing of a product begins after it hits the shelf. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 1 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: What Is Marketing? KEY: Bloom's: Knowledge 12. The establishment of the WTO, the passage of NAFTA, and the creation of the Euro are examples of protectionism on the part of nations concerned with increased globalization of the marketplace. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 1 NAT: BUSPROG: Analytic STA: DISC: International Perspective TOP: A - Head: What Is Marketing? KEY: Bloom's: Knowledge 13. An exchange process is an activity in which two or more parties give something of value to each other to satisfy perceived needs. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 1 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: What Is Marketing? KEY: Bloom's: Knowledge 14. Production orientation is a business philosophy that stresses on the importance of quantity of products rather than the quality of products. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 1 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: What Is Marketing? KEY: Bloom's: Knowledge 15. In the sales era, firms attempted to match their output to the potential number of customers who would want it. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 2 NAT: BUSPROG: Analytic STA: DISC: Customer TOP: A - Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge

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    16. A seller’s market is one in which there are more goods and services than people willing to buy them. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge 17. The marketing era is the successive historical outcome of the production era. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge 18. The marketing era is defined by a shift in focus from products and sales to satisfying a consumer’s needs. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 2 NAT: BUSPROG: Analytic STA: DISC: Customer TOP: A - Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge 19. The emergence of the marketing concept can be linked to the shift from a seller’s market to a buyer’s market. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 2 NAT: BUSPROG: Analytic STA: DISC: Customer TOP: A - Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge 20. The advent of a strong buyer’s market created the need for consumer orientation by businesses. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge 21. The marketing concept focuses on the objective of achieving short - term profits instead of long - run success during tough economic times. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge 22. It can be said that Glen Inc., a woolen products manufacturing company based in Switzerland, is a firm that uses a market - driven strategy because it produces goods based on local customers’ experiences, needs, and preferences. ANS: T PTS: 1 DIF: Difficulty: Moderate OBJ: LO: 1 - 2 NAT: BUSPROG: Reflective Thinking STA: DISC: Strategy TOP: A - Head: Five Eras in the History of Marketing KEY: Bloom's: Application 23. While many firms claim to have adopted the marketing concept, there is little evidence that a strong market orientation contributes to market success and overall performance. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 2 NAT: BUSPROG: Analytic STA: DISC: Strategy TOP: A - Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge

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    24. A firm with a fully developed marketing concept is one with a company - wide consumer orientation with the objective of achieving long - term success. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 2 NAT: BUSPROG: Analytic STA: DISC: Customer TOP: A - Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge 25. The relationship era builds on the marketing era’s customer orientation by only focusing on maintaining relationships with customers. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 2 NAT: BUSPROG: Analytic STA: DISC: Customer TOP: A - Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge 26. Product - oriented rather than customer - oriented management endangers the future growth of an organization. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 3 NAT: BUSPROG: Analytic STA: DISC: Strategy TOP: A - Head: Avoiding Marketing Myopia KEY: Bloom's: Knowledge 27. Marketing myopia occurs when management fails to recognize the scope of its business. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 3 NAT: BUSPROG: Analytic STA: DISC: Strategy TOP: A - Head: Avoiding Marketing Myopia KEY: Bloom's: Knowledge 28. Wesley Pvt. Ltd., can avoid marketing myopia by finding innovative ways to reach new markets with existing goods and services. ANS: T PTS: 1 DIF: Difficulty: Moderate OBJ: LO: 1 - 3 NAT: BUSPROG: Reflective Thinking STA: DISC: Strategy TOP: A - Head: Avoiding Marketing Myopia KEY: Bloom's: Application 29. Firms that narrowly define their organizational goals can avoid the problem of marketing myopia. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 3 NAT: BUSPROG: Analytic STA: DISC: Strategy TOP: A - Head: Avoiding Marketing Myopia KEY: Bloom's: Knowledge 30. The private sector has an even greater array of not - for - profit organizations than the public sector. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 4 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Marketing in Not - for - Profit Organizations KEY: Bloom's: Knowledge 31. Not - for - profit organizations have numerous organizational objectives other than profitability due to their diversity. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 4 NAT: BUSPROG: Analytic STA: DISC: Strategy TOP: A - Head: Marketing in Not - for - Profit Organizations KEY: Bloom's: Knowledge 32. The financial bottom line refers to the limitations laid on the budgets of a firm.

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    ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 4 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Marketing in Not - for - Profit Organizations KEY: Bloom's: Knowledge 33. The main goal of not - for - profit organizations is to generate revenues above and beyond their costs to make money for all stakeholders involved. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 4 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Marketing in Not - for - Profit Organizations KEY: Bloom's: Knowledge 34. An important difference between not - for - profit and for - profit organizations is that, not - for - profit organizations cannot market tangible goods. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 4 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Marketing in Not - for - Profit Organizations KEY: Bloom's: Knowledge 35. Not - for - profit organizations are generally less concerned with the bottom line than for - profit organizations. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 4 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Marketing in Not - for - Profit Organizations KEY: Bloom's: Knowledge 36. A service user of a not - for - profit organization has more control over the organization’s destiny than customers of a profit - seeking firm. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 4 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Marketing in Not - for - Profit Organizations KEY: Bloom's: Knowledge 37. Not - for - profit organizations face complex decision - making issues about the correct markets to target as they often must market to multiple publics. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 4 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Marketing in Not - for - Profit Organizations KEY: Bloom's: Knowledge 38. On account of their unselfish goals of serving society, not - for - profit organizations are not required to have marketing objectives. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 4 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Marketing in Not - for - Profit Organizations KEY: Bloom's: Knowledge 39. The most obvious distinction between not - for - profit organizations and for - profit firms is the focus on generating revenues above and beyond the costs. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 4 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Marketing in Not - for - Profit Organizations KEY: Bloom's: Knowledge

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    40. For - profit organizations tend to focus more on their customers than not - for - profits do. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 4 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Marketing in Not - for - Profit Organizations KEY: Bloom's: Knowledge 41. Celebrities use person marketing as a way to increase their value in the marketplace. ANS: T PTS: 1 DIF: Difficulty: Moderate OBJ: LO: 1 - 5 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan TOP: A - Head: Nontraditional Marketing KEY: Bloom's: Application 42. Promotional events designed to attract visitors to a particular area or to improve the image of a city, state, or nation would be examples of event marketing. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 5 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Nontraditional Marketing KEY: Bloom's: Knowledge 43. Branches of the U.S. military sometimes show recruitment advertisements in cinemas featuring movies that are most likely to attract viewers of military age. This is an example of place marketing. ANS: F PTS: 1 DIF: Difficulty: Challenging OBJ: LO: 1 - 5 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan TOP: A - Head: Nontraditional Marketing KEY: Bloom's: Application 44. A theater group promoting a performance to raise funds in the fight against cancer is an example of both cause marketing and event marketing. ANS: T PTS: 1 DIF: Difficulty: Moderate OBJ: LO: 1 - 5 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan TOP: A - Head: Nontraditional Marketing KEY: Bloom's: Application 45. Marketing of sporting, cultural, and recreational activities to selected target markets is known as cause marketing. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 5 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Nontraditional Marketing KEY: Bloom's: Knowledge 46. Virtually all colleges and universities have alumni associations that publish magazines, hold reunions, and try to raise funds. These activities constitute organization marketing. ANS: T PTS: 1 DIF: Difficulty: Moderate OBJ: LO: 1 - 5 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan TOP: A - Head: Nontraditional Marketing KEY: Bloom's: Application 47. The traditional view of marketing can be described as transaction - based marketing. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 6 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: From Transaction - Based Marketing to Relationship Marketing KEY: Bloom's: Knowledge

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    48. According to relationship marketing, the lifetime value of a customer should exceed the investment made by the firm to attract and keep the customer. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 6 NAT: BUSPROG: Analytic STA: DISC: Customer TOP: A - Head: From Transaction - Based Marketing to Relationship Marketing KEY: Bloom's: Knowledge 49. In relationship marketing, employees serve customers within an organization as well as outside it. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 6 NAT: BUSPROG: Analytic STA: DISC: Customer TOP: A - Head: From Transaction - Based Marketing to Relationship Marketing KEY: Bloom's: Knowledge 50. According to relationship marketing, firms must apply higher standards of customer satisfaction to external customer relationships over intradepartmental relationships. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 6 NAT: BUSPROG: Analytic STA: DISC: Customer TOP: A - Head: From Transaction - Based Marketing to Relationship Marketing KEY: Bloom's: Knowledge 51. Programs that improve customer service inside a company raise productivity and staff morale, resulting in better customer relationships outside the firm. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 6 NAT: BUSPROG: Analytic STA: DISC: Strategy TOP: A - Head: From Transaction - Based Marketing to Relationship Marketing KEY: Bloom's: Knowledge 52. Relationship marketing moves customers up a loyalty ladder — from new customers to regular purchasers, then to loyal supporters of the firm and its goods and services, and finally to advocates who not only buy its products but recommend them to others. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 6 NAT: BUSPROG: Analytic STA: DISC: Customer TOP: A - Head: From Transaction - Based Marketing to Relationship Marketing KEY: Bloom's: Knowledge 53. Relationship building in marketing starts with excellent customer service after purchase. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 6 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: From Transaction - Based Marketing to Relationship Marketing KEY: Bloom's: Knowledge 54. Relationship marketing tries to rebuild damaged relationships and rejuvenate unprofitable customers. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 6 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: From Transaction - Based Marketing to Relationship Marketing KEY: Bloom's: Knowledge

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    55. Interactive marketing refers to buyer - seller communication in which the customer controls the amount and type of information received from a marketer. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 6 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: From Transaction - Based Marketing to Relationship Marketing KEY: Bloom's: Knowledge 56. Interactive promotions put customers in control because they can gain immediate access to key product information when they want it. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 6 NAT: BUSPROG: Analytic STA: DISC: Promotion TOP: A - Head: From Transaction - Based Marketing to Relationship Marketing KEY: Bloom's: Knowledge 57. Mobile marketing is a term used to describe marketing messages sent via wireless technology. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 6 NAT: BUSPROG: Analytic STA: DISC: Promotion TOP: A - Head: From Transaction - Based Marketing to Relationship Marketing KEY: Bloom's: Knowledge 58. Interactive marketing allows marketers and consumers to customize their communication. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 6 NAT: BUSPROG: Analytic STA: DISC: Customer TOP: A - Head: From Transaction - Based Marketing to Relationship Marketing KEY: Bloom's: Knowledge 59. The cost of finding new customers is far less than the cost of maintaining existing ones. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 6 NAT: BUSPROG: Analytic STA: DISC: Customer TOP: A - Head: From Transaction - Based Marketing to Relationship Marketing KEY: Bloom's: Knowledge 60. Compared to transaction marketing, relationship marketing relies more heavily on information technologies. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 6 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: From Transaction - Based Marketing to Relationship Marketing KEY: Bloom's: Knowledge 61. Firms that make the most efficient use of buzz marketing claim that it is a “one - way” approach to building customer relationships. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 6 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: From Transaction - Based Marketing to Relationship Marketing KEY: Bloom's: Knowledge

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    62. Information technology has enhanced the effectiveness of relationship marketing by leveraging mass - marketing campaigns. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 6 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: From Transaction - Based Marketing to Relationship Marketing KEY: Bloom's: Knowledge 63. Buzz marketing excludes visual aspects as it does not consist of a tangible expression of an issue or position. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 6 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: From Transaction - Based Marketing to Relationship Marketing KEY: Bloom's: Knowledge 64. A strategic alliance is defined as a partnership between a for - profit business and a not - for - profit organization. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 6 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: From Transaction - Based Marketing to Relationship Marketing KEY: Bloom's: Knowledge 65. The limitation of a strategic alliance is that it eliminates competitive advantage. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 6 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: From Transaction - Based Marketing to Relationship Marketing KEY: Bloom's: Knowledge 66. In the past, firms have viewed their suppliers as adversaries against whom they must fiercely negotiate prices, playing one off against the other. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 6 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: From Transaction - Based Marketing to Relationship Marketing KEY: Bloom's: Knowledge 67. Company A provides a component to Company B, which then sells it under its own brand. This is an example of a vertical alliance. ANS: T PTS: 1 DIF: Difficulty: Challenging OBJ: LO: 1 - 6 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan TOP: A - Head: From Transaction - Based Marketing to Relationship Marketing KEY: Bloom's: Application 68. Product development partnerships and vertical alliances are two examples of strategic alliances. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 6 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: From Transaction - Based Marketing to Relationship Marketing KEY: Bloom's: Knowledge

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    69. On average, marketing expenses account for half of the costs involved in a product. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 7 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Costs and Functions of Marketing KEY: Bloom's: Knowledge 70. Intermediaries that operate between producers and resellers are known as wholesalers. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 7 NAT: BUSPROG: Analytic STA: DISC: Distribution TOP: A - Head: Costs and Functions of Marketing KEY: Bloom's: Knowledge 71. Buying, selling, transporting, and storing are known as the facilitating functions of marketing because they represent the exchange and physical distribution functions. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 7 NAT: BUSPROG: Analytic STA: DISC: Distribution TOP: A - Head: Costs and Functions of Marketing KEY: Bloom's: Knowledge 72. The functions of marketing can be grouped into three major categories: exchange functions, physical distribution functions, and financing functions. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 7 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Costs and Functions of Marketing KEY: Bloom's: Knowledge 73. The physical distribution functions of marketing are related to advertising, personal selling, and sales promotion in the attempt to match products and services to consumer needs. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 7 NAT: BUSPROG: Analytic STA: DISC: Promotion TOP: A - Head: Costs and Functions of Marketing KEY: Bloom's: Knowledge 74. Manufacturers engage in risk taking when they create goods and services based on research and their belief that consumers need them. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 7 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Costs and Functions of Marketing KEY: Bloom's: Knowledge 75. Marketing is the indirect connection between a firm and its customers. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 7 NAT: BUSPROG: Analytic STA: DISC: Promotion TOP: A - Head: Costs and Functions of Marketing KEY: Bloom's: Knowledge 76. Social responsibility includes marketing philosophies, policies, procedures, and actions whose primary objective is to enhance society and protect the environment through sustainable products and practices. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 8 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: A - Head: Ethics and Social Responsibility: Doing Well by Doing Good KEY: Bloom's: Knowledge

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    77. Sustainable products are products that can be produced, used, and disposed of with minimal impact on the environment. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 8 NAT: BUSPROG: Analytic STA: DISC: Strategy TOP: A - Head: A - Head: Ethics and Social Responsibility: Doing Well by Doing Good KEY: Bloom's: Knowledge 78. ARC Inc., a waste management company, expands its scope of business to recycle liquids that can be turned into fuel - grade ethanol, demonstrating the socially responsible approach of the company. ANS: T PTS: 1 DIF: Difficulty: Moderate OBJ: LO: 1 - 8 NAT: BUSPROG: Analytic STA: DISC: Strategy TOP: A - Head: A - Head: Ethics and Social Responsibility: Doing Well by Doing Good KEY: Bloom's: Application 79. Electronic commerce and computer technologies have created unprecedented opportunities in business today. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 8 NAT: BUSPROG: Analytic STA: DISC: International Perspective TOP: A - Head: A - Head: Ethics and Social Responsibility: Doing Well by Doing Good KEY: Bloom's: Knowledge MULTIPLE CHOICE 1. Noel Pvt. Ltd. combines metal, rubber, and other components in the production of appliances. In doing so the company creates _____ utility. a. ownership b. form c. place d. time ANS: B PTS: 1 DIF: Difficulty: Moderate OBJ: LO: 1 - 1 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan TOP: A - Head: What Is Marketing? KEY: Bloom's: Application 2. The utility of a product or service is its: a. want - satisfying power. b. re - usability. c. function as a commodity. d. design quality. ANS: A PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 1 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: What Is Marketing? KEY: Bloom's: Knowledge 3. Fame - us is a talent hunt agency focusing on the youth looking to enter Hollywood. As part of their marketing strategy, Fame - us generate time and place utility by: a. creating a nationwide advertising campaign to attract applicants. b. launching roadshows across cities and conduct talent hunts at campuses during Thanksgiving. c. endorsing their services using famous celebrities from Hollywood.

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    d. opening a well - equipped studio with pre and post - production facilities. ANS: B PTS: 1 DIF: Difficulty: Challenging OBJ: LO: 1 - 1 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan TOP: A - Head: What Is Marketing? KEY: Bloom's: Application 4. The ability to transfer title to goods or services from marketer to buyer is described as: a. ownership utility. b. form utility. c. time utility. d. place utility. ANS: A PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 1 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: What Is Marketing? KEY: Bloom's: Knowledge 5. Availability of goods and services at convenient locations creates: a. form utility. b. time utility. c. place utility. d. ownership utility. ANS: C PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 1 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: What Is Marketing? KEY: Bloom's: Knowledge 6. Creating _____ utility is the responsibility of the production function. a. place b. form c. time d. ownership ANS: B PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 1 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: What Is Marketing? KEY: Bloom's: Knowledge 7. Banks have recently begun to install ATMs in supermarkets to address customers’ wants for instant cash when they go shopping. What type of utility are banks creating for customers? a. Form b. Possession c. Place d. Ownership ANS: C PTS: 1 DIF: Difficulty: Moderate OBJ: LO: 1 - 1 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan TOP: A - Head: What Is Marketing? KEY: Bloom's: Application 8. The organizational function and set of processes that creates, communicates, and delivers value to customers and manages customer relationships in ways that benefit the organization and its stakeholders is called _____. a. marketing b. financing c. operations d. administration ANS: A PTS: 1 DIF: Difficulty: Easy

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    OBJ: LO: 1 - 1 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: What Is Marketing? KEY: Bloom's: Knowledge 9. Which of the following is true regarding marketing? a. The marketing concept emphasizes creating and maintaining short - term successful relationships with customers and suppliers. b. Marketing encompasses such a broad scope of activities and ideas that settling on one definition is often difficult. c. Marketing refers to an activity in which two or more parties give something of value to each other to satisfy perceived needs. d. The marketing concept is a belief that consumers will resist purchasing nonessential goods and services. ANS: B PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 1 NAT: BUSPROG: Analytic STA: DISC: International Perspective TOP: A - Head: What Is Marketing? KEY: Bloom's: Knowledge 10. Which of the following statements concerning the global marketplace is true? a. The global marketplace is diminishing because of Internet technology. b. The global marketplace is growing because of trade agreements. c. The global marketplace is growing due to the threat of the ability of a single nation to manufacture, supply, and consume all that it produces. d. The global marketplace is growing owing to the talent shortage in the home countries of national companies. ANS: B PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 1 NAT: BUSPROG: Analytic STA: DISC: International Perspective TOP: A - Head: What Is Marketing? KEY: Bloom's: Knowledge 11. The marketing philosophy summarized by the phrase “a high - quality product will sell itself” is a characteristic of the _____ era. a. production b. sales c. marketing d. relationship ANS: A PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge 12. Which of the following factors contributed to the transition from the production era to the sales era? a. Increased consumer demand b. Sophisticated production techniques c. Increase in urbanization d. The Great Depression ANS: B PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge 13. A company produces a high - quality product, with a maximum monthly output of 10,000 units. Production levels are constant and the company relies on its marketing department to find customers for its output. This approach is consistent with which era in marketing history?

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    a. Production era b. Relationship era c. Marketing era d. Sales era ANS: D PTS: 1 DIF: Difficulty: Moderate OBJ: LO: 1 - 2 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan TOP: A - Head: Five Eras in the History of Marketing KEY: Bloom's: Application 14. A company with a _____ orientation assumes that customers will resist purchasing nonessential goods and services and that the task of personal selling and advertising is to persuade them to buy. a. production b. marketing c. sales d. relationship ANS: C PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge 15. A market in which there are more buyers for fewer goods and services is known as a: a. seller’s market. b. monopoly. c. buyer’s market. d. oligopoly. ANS: A PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge 16. Which of the following statements regarding the marketing era is true? a. Marketing and selling would no longer be considered synonymous terms. b. Marketing was relegated to a supplemental role performed after the production process. c. The marketing concept was linked to a shift from a buyer’s market to a seller’s market. d. Business success often was defined solely in terms of production successes. ANS: A PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge 17. A buyer’s market is characterized by: a. more goods and services than buyers to buy them. b. a small number of firms dominating the production of goods offered. c. practically no competition in the marketplace. d. a single firm producing a major share of the products or services offered. ANS: A PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge 18. The emergence of the marketing concept can best be explained by: a. higher production levels. b. greater sophistication in the production of goods. c. the shift from a seller’s market to a buyer’s market. d. a focus on product quality.

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    ANS: C PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge 19. Assume you want to increase the number of customers by applying the marketing concept. Which of the following strategies would be most consistent with this approach? a. Reduce product costs b. Offer more product variety than competitors c. Target markets d. Employ inexpensive labor ANS: C PTS: 1 DIF: Difficulty: Challenging OBJ: LO: 1 - 2 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan TOP: A - Head: Five Eras in the History of Marketing KEY: Bloom's: Application 20. Indigo Ltd. wanted to increase its customers by applying the marketing concept. Which of the following would be an appropriate way to apply this approach? a. Maximize production of goods b. Focus on meeting the needs of the consumers c. Offer more product variety than competitors d. Produce high quality goods ANS: B PTS: 1 DIF: Difficulty: Challenging OBJ: LO: 1 - 2 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan TOP: A - Head: Five Eras in the History of Marketing KEY: Bloom's: Application 21. Which of the following is true of a company with strong market orientation? a. It designs products with advantages and levels of quality compatible with its competitors. b. It assumes that customers will resist purchasing nonessential goods. c. It stresses on efficiency in producing a quality product, with the attitude toward marketing that “a good product will sell itself.” d. It has a focus on new - product development and the introduction of innovative products. ANS: D PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge 22. The business philosophy incorporating the marketing concept that emphasizes first determining unmet consumer needs and then designing a system for satisfying them is known as: a. customer persuasion. b. consumer orientation. c. aggressive marketing. d. sales orientation. ANS: B PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1 - 2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan TOP: A - Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge 23. The _____ is a companywide consumer orientation with the objective of achieving long - run success. a. marketing myopia b. exchange process c. marketing concept d. seller’s market ANS: C PTS: 1 DIF: Difficulty: Easy

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