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Test Bank For Mktg 8, 8th Edition

Test Bank For Mktg 8, 8th Edition offers everything you need for thorough exam preparation, including solved questions and MCQs.

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    1. Marketing is defined as producing, promoting, and selling products. a. True b. False ANSWER: False RATIONALE: Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.01 - 1-1 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Strategy OTHER: BLOOMS Level I Knowledge 2. According to the American Marketing Association, marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. a. True b. False ANSWER: True POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.01 - 1-1 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Strategy OTHER: BLOOMS Level II Comprehension 3. An exchange cannot take place unless each party in the exchange has something that the other party values. a. True b. False ANSWER: True POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.01 - 1-1 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Strategy OTHER: BLOOMS Level II Comprehension

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    4. Sara Lee Industries spent considerable money and time developing a crustless bread. Prior to the introduction, the company had not conducted market research among its customers, but it was confident that its science and technology department had produced a successful new product. Based on this example, Sara Lee is a good example of a production-oriented company. a. True b. False ANSWER: True POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.02 - 01-02 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Research OTHER: BLOOMS Level III Application 5. Unlike a production-orientated firm, a firm embracing a sales orientation focuses on customer wants and needs so it can develop the best product at the lowest cost that will require very little selling effort. a. True b. False ANSWER: False RATIONALE: A sales orientation is based on the ideas that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.02 - 01-02 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Strategy OTHER: BLOOMS Level II Comprehension 6. The focus of a production-oriented firm is on what it can make or do best. a. True b. False ANSWER: True POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.02 - 01-02 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Strategy OTHER: BLOOMS Level I Knowledge

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    7. The marketing concept states that the social and economic justification for an organization’s existence is the satisfaction of customers’ wants and needs while meeting organizational objectives. a. True b. False ANSWER: True POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.02 - 01-02 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Customer OTHER: BLOOMS Level II Comprehension 8. The ultimate goal of most market-oriented firms is profitability that results from satisfying the wants and needs of its consumers. a. True b. False ANSWER: True POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.02 - 01-02 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Customer OTHER: BLOOMS Level VI Evaluation 9. The societal marketing concept considers society’s longterm best interests along with the satisfaction of customers’ wants and needs. a. True b. False ANSWER: True POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.02 - 01-02 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Customer OTHER: BLOOMS Level II Comprehension 10. Increasingly well informed customers have shifted the power from manufacturers and retailers to consumers. a. True b. False ANSWER: True POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.02 - 01-02 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Strategy OTHER: BLOOMS Level I Knowledge

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    11. Personnel in salesoriented firms tend to be “outward looking,” focusing on selling what the market wants. a. True b. False ANSWER: False RATIONALE: Personnel in salesoriented firms tend to be “inward looking,” focusing on selling what the organization makes rather than making what the market wants. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.03 - 1-3 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Strategy OTHER: BLOOMS Level I Knowledge 12. Customer value is the relationship between company profits and company costs. a. True b. False ANSWER: False RATIONALE: Customer value is the relationship between benefits and the sacrifice necessary to obtain those benefits. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.03 - 1-3 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Customer OTHER: BLOOMS Level I Knowledge 13. The way to achieve customer satisfaction and value is to offer the lowest price. a. True b. False ANSWER: False RATIONALE: Marketers interested in customer value offer realistic prices and try to achieve customer satisfaction and value by ensuring customer expectations are met or exceeded. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.03 - 1-3 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Customer OTHER: BLOOMS Level II Comprehension

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    14. 3D Systems is a company that uses computers to generate new product prototypes. It has generated loyal business clients by providing the best customer support in the industry. The company also provides direct sales consultations that give its salespeople intimate knowledge about what exactly its customers want. This partnership between 3D Systems and its customers is relationship marketing. a. True b. False ANSWER: True POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.03 - 1-3 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Customer OTHER: BLOOMS Level III Application 15. Only a firm’s salespeople need to be customer oriented. a. True b. False ANSWER: False RATIONALE: All employees need to be customer oriented because in the customer’s eyes, the employee (regardless of the position held in the organization) is the firm and may be the only firm representative the customer ever sees. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.03 - 1-3 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Customer OTHER: BLOOMS Level VI Evaluation 16. Retailers who give their sales clerks the authority to handle customer complaints without having to get approval from a supervisor are using empowerment. a. True b. False ANSWER: True POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.03 - 1-3 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Customer OTHER: BLOOMS Level III Application

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    17. In the early 1920s, Ford promised its customers any color vehicle they wanted as long as it was black. Ford’s management assumed anyone buying a car would accept the color black, so it made products affordable by offering only one variety in large quantities. Ford is an example of a market-oriented firm. a. True b. False ANSWER: False RATIONALE: A market-oriented organization recognizes that different customers groups want different features or benefits. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.03 - 1-3 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Customer OTHER: BLOOMS Level III Application 18. While most marketing organizations rely on various forms of promotion to succeed, sales-oriented organizations make the most effective use of their entire marketing mix. a. True b. False ANSWER: False RATIONALE: Sales-oriented firms usually rely more heavily on promotion alone than do market-oriented firms. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.03 - 1-3 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Strategy OTHER: BLOOMS Level II Comprehension 19. A local grocer recently began grouping its customers into specific groups based on what they bought and when they shopped. The grocer then began to schedule shipments of specific items based on these customer segments and to offer different promotions to different shopper groups. This is an example of CRM. a. True b. False ANSWER: True POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.03 - 1-3 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Customer OTHER: BLOOMS Level III Application

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    20. Salespeople who work for market-oriented organizations are generally perceived by their customers as problem solvers and important links to supply sources and new products. a. True b. False ANSWER: True POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.03 - 1-3 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Customer OTHER: BLOOMS Level II Comprehension 21. Marketing is important to business, so marketing should be part of the job of everyone in the organization, not just those in marketing. a. True b. False ANSWER: True POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.04 - 1-4 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Strategy OTHER: BLOOMS Level VI Evaluation 22. One facet of marketing is that it is: a. an approach that focuses on maximizing sales b. a short-term oriented approach to profit maximization c. an approach that requires diversity d. a philosophy that stresses customer satisfaction e. independent of value creation ANSWER: d RATIONALE: Marketing has two facets. First, it is a philosophy, an attitude, a perspective, or a management orientation that stresses customer satisfaction. Second, marketing is an organization function and a set of processes used to implement this philosophy. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.01 - 1-1 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Strategy OTHER: BLOOMS Level II Comprehension

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    23. 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 ability to communicate value, 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 ANSWER: b RATIONALE: Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.01 - 1-1 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Distribution | CB&E Model Pricing | CB&E Model Product OTHER: BLOOMS Level IV Analysis 24. _____ is a set of activities used to implement a management orientation that stresses customer satisfaction. a. Planning strategy b. Customer management c. Marketing d. A control system e. Reciprocity ANSWER: c RATIONALE: This is the focus of marketing. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.01 - 1-1 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Product OTHER: BLOOMS Level II Comprehension

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    25. 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 creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. ANSWER: e RATIONALE: According to the American Marketing Association, marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.01 - 1-1 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Strategy OTHER: BLOOMS Level I Knowledge 26. Which of the following occurs when people give up something in order to receive something they would rather have? a. Exchange b. Synergy c. Transformation d. Leveraging e. Reciprocity ANSWER: a RATIONALE: Exchange is people giving up something to receive something they would rather have. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.01 - 1-1 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Product OTHER: BLOOMS Level I Knowledge

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    27. All of the following are necessary for exchange to occur EXCEPT: a. each party is capable of communication and delivery b. each party signs a contract before exchange occurs c. each party believes it is appropriate or desirable to deal with the others d. each party is free to accept or reject the exchange offer e. each party must have something the other party considers to be valuable ANSWER: b RATIONALE: Exchange can occur without a legal contract. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.01 - 1-1 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Customer OTHER: BLOOMS Level VI Evaluation 28. A problem facing the timber industry is the absence of any effective way to prove that rain forest timber has been legally harvested. In places like Indonesia, as much as 80 percent of timber available for sale is illegally cut. Companies like The Home Depot do not want to sell timber from illegally logged forests even though the demand is great for timber from rain forests. Which of the following conditions required for an exchange to occur is missing when a company tries to sell illegally acquired logs to The Home Depot? a. There are more than two parties involved. b. Each party has something of value to bring to the exchange. c. One party is free to accept the exchange offer. d. Each party believes it is appropriate to deal with the other party. e. Nobody sees the exchange as producing value. ANSWER: d RATIONALE: For an exchange to occur, two or more parties must be involved. Both parties are free to accept or reject the exchange. If The Home Depot believes the timber has been illegally harvested, then it will not want to deal with the loggers. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.01 - 1-1 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Customer OTHER: BLOOMS Level III Application

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    29. Kellogg’s is offering free DVDs to consumers who collect five official Collection certificates from the back panels of specially marked packages of Kellogg’s cereals and then mail them with the official order form. Within 90 days, these consumers will receive the movie of their choice. A(n) _____ will occur when a movie fan mails in his or her certificates for a movie. a. synergy b. sublimation c. exchange d. entropy e. reciprocity ANSWER: c RATIONALE: For an exchange to occur, two or more parties must be involved. Both parties are free to accept or reject the exchange. Furthermore, each party must have something that is of value to the other party. Each party is capable of communication and delivery and believes it is desirable to do so. In this case, the value for Kellogg’s is customer loyalty. The value for the customer is the cereal and free movie. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.01 - 1-1 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Customer OTHER: BLOOMS Level III Application 30. 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 ANSWER: a RATIONALE: For exchange to occur, there must be at least two parties, each party has something that might be of value to the other party, each party is capable of communication and delivery, each party is free to accept or reject the exchange offer, and each party believes it is appropriate or desirable to deal with the other party. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.01 - 1-1 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Customer OTHER: BLOOMS Level II Comprehension

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    31. 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 ANSWER: c RATIONALE: Marketing activities help the exchange to take place, but marketing can occur without an exchange. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.01 - 1-1 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Customer OTHER: BLOOMS Level VI Evaluation 32. Barry collects antique watches and has decided to sell a few of them on eBay. Some of the watches he wants to sell are rare and very valuable. What condition is necessary for an exchange to occur between Barry and a buyer? a. His watch should have a certificate of authenticity. b. The opening bid must be lower than other watches being sold on the site. c. Buyers must provide payment before the item is shipped. d. Delivery must take place within 2 days of the purchase. e. Potential buyers must be able to see the watch and understand its qualities. ANSWER: e RATIONALE: For an exchange to take place, there must be at least two parties, each party must have something the other values, the parties must be able to communicate, each party must believe that it is appropriate to deal with the other, and each party must be free to accept or reject the exchange offer. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.01 - 1-1 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Customer OTHER: BLOOMS Level III Application

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    33. All of the following are marketing management philosophies EXCEPT: a. sales orientation b. societal marketing orientation c. market orientation d. profitability orientation e. production orientation ANSWER: d RATIONALE: The four marketing philosophies are commonly referred to as production, sales, market, and societal marketing orientations. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.02 - 01-02 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Strategy OTHER: BLOOMS Level VI Evaluation 34. Indonesian logging companies harvest the rain forests 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 ANSWER: c RATIONALE: A production orientation is a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.02 - 01-02 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Strategy OTHER: BLOOMS Level III Application

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    35. 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 ANSWER: b RATIONALE: A production orientation is a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.02 - 01-02 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Strategy OTHER: BLOOMS Level II Comprehension 36. 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 ANSWER: e RATIONALE: A production orientation focuses on the internal capabilities of the firm. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.02 - 01-02 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Strategy OTHER: BLOOMS Level II Comprehension

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    37. Researchers at PPG Industries spent considerable time, effort, and money developing a bluish windshield that would let in filtered sunlight but block out the heat. Little market research was done, but the scientists were convinced this new product would be significantly better than existing windshields even though it was more expensive and of a different color than the current models on the market. This scenario suggests PPG most likely has a(n) _____ orientation. a. exchange b. production c. sales d. promotion e. customer ANSWER: b RATIONALE: A production orientation is a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.02 - 01-02 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Strategy OTHER: BLOOMS Level III Application 38. A newspaper ad for a hospital that states, “We have the most modern delivery rooms and stateofthe art medical equipment,” is an indication of which marketing management philosophy? a. Sales b. Customer c. Market d. Societal e. Production ANSWER: e RATIONALE: A production orientation focuses on the internal capabilities of the firm. POINTS: 1 LEARNING OBJECTIVES: MKTG.LAMB.15.01.02 - 01-02 TOPICS: AACSB Reflective Thinking KEYWORDS: CB&E Model Promotion | CB&E Model Strategy OTHER: BLOOMS Level III Application

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