MCQs on An Overview of Marketing PDF

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MCQs on Chapter ONE- An Overview of Marketing...

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Chapter 1—An Overview of Marketing MULTIPLE CHOICE 1. 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 ANS: D Marketing has two facets. First, it is a philosophy, an attitude, a perspective, or a management orientation that stresses customer satisfaction. Second, marketing is activities and processes used to implement this philosophy. 2. 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 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 ANS: B This description contains three of the four main activities included in the marketing function. The fourth main activity is communicating value. 3. Which of the following would be considered a stakeholder of Southwest Airlines? a. Southwest Airlines employees b. Southwest Airlines stockholders c. companies that supply parts to Southwest Airlines d. individuals who fly on Southwest Airlines e. All of these ANS: E Marketing entails an understanding that organizations have many connected stakeholder “partners,” including employees, suppliers, stockholders, distributors, and society at large. 4. 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. ANS: E 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. 5. Which of the following occurs when people give up something in order to receive something that they would rather have?

a. b. c. d. e.

Exchange Synergy Transformation Leveraging Reciprocity

ANS: A Exchange is people giving up something to receive something they would rather have. 6. 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 ANS: B Exchange can occur without a legal contract. 7. 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 ANS: A 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. 8. 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 ANS: C Marketing activities help the exchange to take place, but marketing can occur without an exchange. 9. Bob collects baseball cards and decides to sell a few of them on eBay. Some of the cards 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 card should have a certificate of authenticity. b. The opening bid must be lower than other cards 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 card and understand its qualities. ANS: E For an exchange to take place, 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.

10. A problem facing the timber industry is the absence of any effective way to prove that rain forest timber was legally harvested. In places like Indonesia as much as 80 percent of timber available for sale was 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. ANS: D 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 was illegally gotten, then it will not want to deal with the loggers. 11. Every cup of Dannon Yogurt contains a letter under the lid seal. Customers who collect lids and spell certain words win a prize if they send the letters and the official order form back to Dannon. Within 90 days, these customers will receive the prize of their choice. A(n) _____ will occur when a customer mails in his or her lid seals for a prize. a. synergy b. sublimation c. exchange d. entropy e. reciprocity ANS: C 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 Dannon is customer loyalty. The value for the customer is the yogurt and the prize. 12. 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 ANS: D The four marketing philosophies are commonly referred to as production, sales, market, and societal marketing orientations. 13. 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 ANS: C

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. 14. 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 ANS: B 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. 15. 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 ANS: E A production orientation focuses on the internal capabilities of the firm. 16. 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 ANS: B 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. 17. A newspaper ad for a hospital that states, “We have the most modern delivery rooms and state-of-the art medical equipment,” is an indication of which marketing management philosophy? a. Sales Orientation b. Customer Orientation c. Market Orientation d. Societal Marketing Orientation e. Production Orientation ANS: E A production orientation focuses on the internal capabilities of the firm. 18. A firm with a production orientation is more likely to survive if: a. there are many small competitors in the marketplace b. demand for the product it produces exceeds supply

c. the needs of the marketplace are constantly shifting d. supply for the product it produces exceeds demand e. any of these conditions exist 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. 19. A firm that adopts a(n) _____ orientation to marketing will fail to consider whether what the firm produces most efficiently also meets the needs of the marketplace. a. customer b. exchange c. product d. market e. production ANS: E The production orientation forces a company to build whatever it builds best, that is, whatever it has the experience and expertise in doing. 20. Toyota found that consumers wanted cars to last longer and be more environmentally friendly. GM, however, enjoyed being the top U.S. car producer, and focused more on how many cars and trucks it could manufacture and not on what customers wanted from a vehicle. GM had more of a _____ orientation. a. sales b. production c. market d. product e. customer 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. 21. The _____ orientation assumes people will buy more if aggressive selling techniques are used. a. market b. sales c. customer d. production e. exchange ANS: B The sales orientation assumes aggressive selling is what is needed to increase demand. 22. Mimi Couturier is a design company that specializes in formalwear for women. The company is known for challenging fashion mores. The company's fashion designers use computer-assisted design software to create what it thinks women should wear. The company regularly hires industry experts to examine its factories to find waste and inefficiencies that can be eliminated. The company has expanded the number of products it offers for sale many times. However, for the last two years Mimi Couturier has lost money, and it has had to lay off some of its work force. To avoid this occurrence in the future, Mimi Couturier should: a. hire more retail efficiency experts to trace down any production problems b. increase its sales force to find more potential customers for the firm c. have someone study its target market to see what needs and wants should be met by Mimi Couturier

d. cut prices so that its prices will be at least 10 percent below those of its competitors e. design more sophisticated products that use the latest computer-aided techniques ANS: C Mimi Couturier has been production-oriented. It should develop a market orientation, which means the firm will produce only those items needed by its target market. 23. Which marketing management philosophy is often adopted by organizations that sell unsought products such as life insurance, retirement plans, and pre-planned funeral services? a. Sales orientation b. Production orientation c. Marketing orientation d. Product orientation e. Customer orientation ANS: A Aggressive selling is sometimes used by companies that sell products their customers do not want to buy. 24. Which marketing orientation assumes people will buy more goods and services if aggressive marketing techniques are used? a. Sales b. Production c. Market d. Customer e. Marketplace ANS: A 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. 25. StoryBlox creates and markets handmade wooden toys, which it sells to retailers in the Midwest. The company’s management believes its retail customers will stock more toys if its salespeople use aggressive marketing techniques, so the company provides strong incentives for salespeople and promotional allowances to resellers to get distribution for its toys. In other words, the company has a _____ orientation. a. promotion b. production c. sales d. market e. customer ANS: C The sales orientation assumes aggressive sales techniques will sell more product, regardless of customer desires and needs. 26. If a company uses a sales orientation, consumer complaints would most likely result in: a. a modification of the sales presentation b. product reinvention c. continuous market research d. philanthropy e. attempts to cut production costs ANS: A The sales orientation relies on aggressive sales techniques to fuel business.

27. Fujifilm Computer Products has improved the efficiency and productivity of its plant, which manufactures printing technology. For the new fiscal year, the company projects a production increase of 25 percent. It has instructed its sales force to aggressively distribute and promote its printers. The CEO is sure the market will absorb more product if the sales force is determined and assertive. Fujifilm appears to have a _____ orientation. a. market b. production c. sales d. customer e. marketplace ANS: C A sales orientation is based on the belief that people will buy more goods and services if aggressive sales techniques are used. 28. Which marketing management philosophy assumes that a sale does not depend on an aggressive sales force but rather on a customer’s decision to purchase a product? a. Sales Orientation b. Production Orientation c. Product Orientation d. Market Orientation e. Exchange Orientation ANS: D A market orientation states that the social and economic justification for an organization’s existence is the satisfaction of customer wants and needs while meeting organizational objectives. 29. Best Buy has become the nation's largest specialty retailer by focusing on the customer's needs and wants. This philosophy is at the heart of a(n) _____ orientation. a. sales b. market c. retail d. production e. exchange ANS: B A 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. 30. At www.mystarbucksidea.com customers are encouraged to share their ideas and thoughts about how Starbucks can better serve their customers. Starbucks customers told management that they wanted to be recognized for choosing Starbucks coffee. So Starbucks instituted the Starbucks Reward program with money saving benefits to their Starbuck card-holders. Starbucks is an example of a company with a _____-oriented philosophy. a. transactional b. sales c. production d. societal marketing e. market ANS: E A market-oriented philosophy is based on consumers’ wants and needs, and the organization will focus its activities on satisfying these customers by listening to them and revising strategies as necessary.

31. Companies that rely on the marketing concept and that have implemented a market orientation strategy recognize that: a. price is the most important variable for customers b. sales depend predominantly on an aggressive sales force c. what the customer thinks he or she is buying is what is important d. a company has to apply scientific management techniques to survive e. selling and marketing are essentially the same thing ANS: C The perceived product and perceived value are what the customer is buying, and the marketing concept and market orientation have endeavored to understand those perceptions. 32. The marketing concept involves: a. focusing on customers' wants and needs so that the organization can distinguish its product (or products) from competitors' products b. satisfying management's needs and wants with the idea of maximizing profits in the short run c. selling as much product as possible under the assumption people will buy more goods and services if aggressive selling techniques are used d. selling as much as possible under the assumption consumers will buy more at lower prices e. focusing on production in order to increase product quality and lower prices ANS: A 33. The marketing concept stresses that the social and economic justification for an organization's existence is the satisfaction of customer needs and wants while: a. producing a good or service at the lowest possible cost b. improving the general standard of living c. constantly increasing sales volumes d. applying scientific management techniques to improve efficiency e. simultaneously meeting organization objectives ANS: E The marketing concept holds that the needs and wants of both the customer and the firm be served. 34. After hearing his company criticized for its failure to respond to consumer needs, the CEO of a bank realized that his company needs to adhere to the marketing concept and implement a market-oriented strategy. Which of the following actions would be the best approach to achieving this goal? a. Reorganizing the company and making marketing its most important department b. Hiring new salespeople to find new customers c. Expanding the advertising budget to make potential customers more aware of its product offerings d. Creating cross-functional teams and instructing them to focus on creating greater customer value e. Hiring a new product development manager ANS: D Market-oriented companies are successful in getting all business functions working together to deliver customer value. 35. Jacques Torres Chocolate is a factory and retail store in Brooklyn. Its owner is willing to try to produce new products when his customers suggest them—such as chili-pepper-laced chocolate candy. His only condition is that when he adds new products, his customers have the final say on whether the product is of any value. According to Torres, "If something doesn't move, that's the last time you see it." By focusing on customers' wants, the chocolate company exhibits a(n)_____ orientation.

a. b. c. d. e.

exchange product production sales market

ANS: E Torres understands that a sale occurs because a customer makes a decision to buy. 36. SAP, the world’s largest business software company, has pledged to put the “customer at the center” of their universe. SAP has captured the idea of: a. the 80/20 rule b. Maslow's hierarchy of needs c. the marketing concept d. the sales orientation philosophy e. the societal concept ANS: C The marketing concept justifies a company's existence by its ability to satisfy customers. 37. A homeowner called Handyman Direct to replace a noisy bathroom exhaust fan. When the repairman arrived at the home and examined the fan, he convinced the homeowner that the fan simply needed to be cleaned and oiled rather than replaced. This would fix the problem better than replacing the fan— with less trouble and less expense. This sort of discussion between employees and customers is commonplace at Handyman Direct and indicates the business has a(n) _____ orientation. a. sales b. market c. product d. exchange e. production ANS: B The marketing concept, the foundation of a market orientation, holds that the needs and wants of both the customer and the firm be served. 38. At The Container Store every employee is trained t...