Chapter 1 quiz - QUIZZES PDF

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MKT3301

Chapter 1 Quiz

1. Which of the following activities is part of the production process? identifying competing companies determining how many people will want to purchase goods or services estimating the prices potential customers are willing to pay making goods or performing services deciding whether to sell goods directly to consumers or through retailers 2. Which of the following best describes marketing? Marketing is most effective when it takes over other company activities, such as production. Marketing should follow the lead of production, which determines which goods are produced. Marketing should guide production, accounting, and financial activities. Marketing is limited to the acts of selling and advertising. Marketing’s main focus is on completing individual transactions 3. Macro-marketing is not concerned with how marketing affects society. is concerned with the flow of need-satisfying goods and services from producer to consumer. seeks to match homogeneous supply capabilities with homogeneous demands for goods and services. applies to only nonprofit organizations—not profit organizations. places emphasis on the activities of individual organizations.

4.From the perspective of macro-marketing, the discrepancy between the small quantity of a product that individual consumers need and the large quantity that firms produce exists because firms seek to benefit from economies of scale. society has evolved past a subsistence economy. 1

it is necessary to achieve customer satisfaction. businesses prefer to store products for long periods. businesses can satisfy customers better when they have large inventory surpluses.

5.With regard to the universal functions of marketing, the transporting function involves promoting the product. moving goods from one place to another. bearing the uncertainties that are part of the marketing process. holding goods until customers need them. sorting products according to size and quality.

6.When a firm manufactures a product and is uncertain about whether customers will want to buy its products, that firm is experiencing the ______ function of marketing. risk taking intermediary grading selling market information 7. In the context of the universal functions of marketing, the _____ function of marketing involves holding goods until customers need them. transporting buying selling storing standardizing and grading

8. Firms that facilitate or provide one or more of the marketing functions other than buying or selling are known as collaborators. 2

suppliers. advisors. intermediaries. complementors.

9. Which of the following functions of marketing involves sorting products according to their size and quality, helping to reduce their need for inspection, and sampling? the standardization and grading function the storing function the buying function the market information function the risk taking function 10. In a command economy, producers get to decide what and how much is to be produced and distributed. producers have little choice about what goods and services to produce. activities such as market research, branding, and advertising are performed frequently. the prices set by government planners tend to be very flexible and change according to supply and demand. 11. Government planning in a command economy is least likely to work well when there is political instability. the variety of goods and services is limited. the economy is complex. there is drought. the economy is simple.

12. Which of the following is true of a market-directed economy? It only works well when the economy is simple and consumers are provided with a limited number of choices. Producers are expected to fill quotas predetermined and assigned by the government. 3

The cost of goods is set by the government with little regard for whether or not customers feel they are getting their money’s worth. Macro-level decisions for the whole economy are based on the individual decisions of the economy’s many producers and consumers. There is little to no government oversight, monopolies are common, and a “buyer beware” mentality rules the market. 13. Based on the following company statements, which company is most likely to be in the marketing company era? “Our long range plan—developed by our marketing manager—is to expand across regions so that we can profitably meet the long-term needs of our customers.” “The whole company is in good shape—demand exceeds what we can produce.” “Our sales force was able to sell to intermediaries more of our new product than they can resell in all of this year.” “Our new president previously led our marketing effort as vice president of sales.” “Our marketing manager is coordinating pricing, product decisions, promotion, and distribution to help us show a profit at the end of this year.”

14. Which of the following represents the basic goal of the marketing concept? satisfying customers at a profit getting customers to buy whatever a firm decides to produce making a profit at whatever cost producing the largest assortment of goods aligning with government goals

15. Which of the following statements best explains the “marketing concept”? A company’s chief executive should previously have been a marketing manager. All of a firm’s activities and resources should be focused on fulfilling the needs of its customers while making a profit. A firm’s main emphasis should be on the efficient utilization of its resources. A firm should always attempt to give customers what they need, regardless of the cost involved. Firms should spend more money on marketing than they have in the past. 4

16. As part of its plans for long-term success, a company that manufactures frozen dinners focuses specifically on making a profit while using sustainably farmed ingredients and compostable packaging that both employees and customers can feel good about. Which of the following best describes the guidelines this company is using to measure its long-term success? customer utilization production orientation government regulations a triple bottom line a production quota 17. Which of the following is not a reason why a restaurant may have low customer value? the cost of the dining experience is less than its perceived value the food is not flavorful the dining experience is not worth the long wait for a table the restaurant has an unfavorable location the restaurant’s customers perceive the prices to be too high 18. Which of the following is a difference between business firms and nonprofit firms with regard to the marketing concept? Nonprofit organizations, unlike other business firms, do not face competition for the resources and support they need. Nonprofit organizations receive support from their beneficiaries, as opposed to business firms. Nonprofit organizations’ key measures of long-term success differ from those of other business firms. Nonprofit organizations should put less emphasis on their marketing concepts than for-profit business firms do. Nonprofit organizations, unlike other business firms, do not need to take in as much money as they spend in order to survive. 19. Which of the following is not an example of the micro-macro dilemma? Nuclear power may reduce your fuel bill, but many people find it to be worrisome. 5

Some people like to smoke cigarettes, but the smell annoys many others. Aluminum soft-drink cans are convenient, but they are expensive to pick up along the highway. Having a dog or cat can teach a child responsibility, but a pet adds expenses to the family budget. Driving fast cars can be fun, but it is hazardous to other people. 20. The concept of social responsibility is challenging for marketers except when most consumers are unconcerned with a product’s benefits to society or the environment. the needs of consumers and the society can be served at a profit. the needs of society conflict with the needs of individual consumers. environmentally-minded product adjustments result in inferior products. costs related to social responsibility initiatives have a negative impact on profits.

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