MARK 201 CHAPTER 4 - QUESTION AND ANSWERS TEST BANK INTRODUCTION TO MARKETING (CONCORDIA UNIVERSITY) 2023 A+ GRADER EXAM SOLUTION

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) calls for meeting the present needs of consumers and businesses while also preserving or 1) enhancing the ability of future generations to meet their needs. A) Innovation B) The sustainable marketing concept C) The strategic planning concept D) Consumerism E) Environmentalism 2) All of the following are concepts that define the needs of consumers and/or businesses EXCEPT? 2) A) Sustainable marketing concept B) Societal marketing concept C) Strategic planning concept D) Marketing concept E) Consumer business concept 3) The is specifically focused on future company needs only. 3) A) consumer business concept B) marketing concept C) sustainable marketing concept D) societal marketing concept E) strategic planning concept 4) The is specifically focused on the future welfare of consumers only. 4) A) marketing concept B) societal marketing concept C) consumer business concept D) sustainable marketing concept E) strategic planning concept 5) McDonald's "Balanced, Active Lifestyle" initiative has added healthy food options to its menu, 5) phased out traditional artery- clogging trans fats, launched a major multifaceted education campaign, and addressed environmental issues. "Balanced, Active Lifestyle" best exemplifies which concept? A) societal marketing concept B) consumer business concept C) sustainable marketing concept D) strategic planning concept E) marketing concept 1 6) Many critics charge that the marketing system causes to be higher than they would be 6) under more "sensible" systems. A) product safety measures B) imports C) exports D) employee morals E) prices 7) Critics charge that intermediaries _ _. 7) A) are too few in number B) underprice their services C) are too competitive D) are inefficient E) provide only necessary services 8) A long- standing charge against intermediaries is that they mark up prices beyond the . 8) A) resale value B) delivery charges C) promotion cost D) value of their services E) going market price 9) A heavily promoted brand of flu medicine sells for much more than a virtually identical 9) store- branded product. Critics would likely charge that promotion for the branded flu medicine adds only _ to the product rather than functional value. A) strength B) quality C) consistency D) informational value E) psychological value 10) Marketers respond to charges of high advertising and promotion costs that unnecessarily increase retail prices by arguing all of the following factors EXCEPT? A) Advertising and promotion adds quality to the product. B) Advertising and promotion adds value by informing potential buyers of the availability and merits of a brand. C) Advertising and promotion make consumers feel wealthy. D) Advertising and promotion make consumers feel attractive. E) Advertising and promotion is necessary for a firm to match competitors' efforts. 10) 11) Dan's Drugstore sells consumers medicine for twenty dollars that only costs two dollars to make. The store is guilty of . A) false advertising B) redlining C) deceptive promotion D) excessive markups E) deceptive packaging 11) 2 might have happened? A) Albatross misrepresented a product's features in an ad. B) Albatross used misleading labelling. C) Albatross refused to advertise sale prices in the local paper. D) Albatross lured customers to the store for a bargain that is out of stock. E) Albatross advertised a large price reduction from a phony high retail list price. 13) Hart's Department Store was accused of deceptive promotion. Which of the following best explains what might have happened? A) Hart's advertised a large price reduction from a phony high retail list price. B) Hart's refused to advertise sale prices in the local paper. C) Hart's lured customers to the store for a bargain that is out of stock. D) Hart's exaggerated its package contents through subtle design. E) Hart's used misleading labelling. 13) 14) Marketers claim that consumers often don't understand the reasons for high markups. All of the following are reasons a pharmaceutical company claims they must markup prices EXCEPT . A) to gain a profit B) to cover cost of distributing existing medicines C) to test new medicines D) to cover cost of promoting E) to cover cost of purchasing 14) 15) Deceptive practices fall into three groups: deceptive , deceptive , and deceptive . A) product; packaging; placement B) pricing; promotion; placement C) pricing; promotion; packaging D) packaging; product; promotion E) product; pricing; promotion 15) 16) Deceptive promotion differs from deceptive pricing in that deceptive promotion overstates the product's or _ _. A) design; features B) packaging; costs C) features; performance D) availability; package contents E) true price; performance 16) 17) When shady marketers take advantage of consumers, they should be reported to any of the following organizations, EXCEPT . A) the provincial Consumer Affairs Office B) Advertising Standards Canada C) Canadian Consumer Information Gateway D) the Canadian Marketing Association E) the Competition Bureau 17) 3 lOMoARcPSD| 18) Advertising "puffery" is a term for _. 18) A) a straightforward promotional message B) innocent exaggeration for effect C) subliminal appeals to consumers D) value- added promotions E) emotional appeals to consumers 19) Which of the following advertising situations would LEAST likely be considered "puffery"? 19) A) Mr. Clean coming to a housewife's rescue B) children immediately growing into attractive adults as a result of drinking milk C) a retired couple drinking a vitamin and protein shake and then going bicycling D) instantly toned thighs and legs as a result of using the Thigh Master for only 15 minutes E) a sleepy mom who wakes up to a gray day, drinks a cup of coffee, and then looks out her window to see golden sunshine, beautiful flowers blooming, songbirds singing, and a rainbow on the horizon 20) When critics claim that insurance, real estate, and used cars are sold, not bought, they are making accusations of the use of . A) excessive materialism B) shoddy products C) high- pressure selling D) deceptive promotions E) excessive markups 20) 21) persuades people to buy goods they had no thought of buying. 21) A) Strategic marketing B) Redlining C) High pressure selling D) Reverse redlining E) Sustainable marketing 22) The success of the Tom Dennis Ford dealership has been built largely on return customers and word- of- mouth recommendations. The majority of sales are made to customers who have purchased a vehicle at the dealership before or who know someone who had a positive experience purchasing a vehicle there. The sales force at the Tom Dennis Ford dealership most likely knows that using high- pressure selling does not work if the dealership wants to . A) build long- term relationships with customers B) move last year's models C) achieve short- term gains D) obey local and federal law E) maintain a database 22) 23) Recently, a class- action lawsuit was brought against McDonald's, charging that its food has contributed to the nationwide obesity epidemic. The suit was eventually dismissed, but many critics continue to point out the health dangers of many "fast food" menu items. These critics are concerned that the fast food industry has used . A) high- pressure selling B) deceptive pricing C) deceptive packaging D) deceptive promotions E) harmful products 23) 4 lOMoARcPSD| 24) Consumers Union, the nonprofit testing and information organization, publishes to assist the consumer in choosing products and to encourage businesses to eliminate product flaws. A) Home & Garden B) Sports Illustrated C) Consumer Reports D) Buyers Weekly E) Consumer Digest 24) 25) All of the following would be considered hazards in tested products EXCEPT . 25) A) carbon monoxide poisoning from room heaters B) electrical dangers in appliances C) injury risks from lawn mowers D) sour- tasting medicine E) faulty automobile design 26) Critics have charged that some companies intentionally manufacture their products with materials or components that cause the product to need to be replaced before it actually should need replacement. What is this called? A) nonfunctional warranty B) expressed dissatisfaction C) product failure D) short- term planning E) planned obsolescence 26) 27) The following quote best describes . "The marvels of modern technology include the development of a soda can which, when discarded, will last forever, and a...car, which when properly cared for, will rust out in two or three years." A) product failure B) short- term planning C) planned obsolescence D) nonfunctional warranty E) excessive markups 27) 28) Planned obsolescence might involve all of the following EXCEPT . 28) A) the use of components that will break soon after purchase B) the holding back of attractive functional features, then introducing them later to make older models obsolete C) the use of materials that will rust sooner than they should D) producers continually changing consumer styles E) the use of unsafe materials 29) Marketers respond to charges of planned obsolescence with all of the following EXCEPT? 29) A) Consumers like change. B) Companies do not want to lose customers to other brands. C) The product will eventually wear out anyway. D) No one is forced to buy the new product. E) For most technical products, customers want the latest innovations. 5 lOMoARcPSD| 30) Trendy Teens manufactures fashionable clothing and accessories for the tween and teen female markets. New merchandise with a very different look is rolled out each season and heavily promoted as the "must- have" style in a variety of media. Trendy Teens could most easily be criticized for which of the following? A) poor service to disadvantaged consumers B) planned obsolescence C) shoddy products D) deceptive promotions E) high- pressure selling 30) 31) Critics claim that companies in the industries introduce planned streams of new products that make older models obsolete, a form of planned obsolescence that harms consumers. A) car and truck B) financial and entertainment C) food and beverage D) housing and construction E) consumer electronics and computer 31) 32) Critics who believe that the marketing system poorly serves disadvantaged consumers claim that the pay more for inferior goods. A) rural poor B) uneducated C) urban poor D) wealthy E) elderly 32) 33) The presence of in low- income neighborhoods makes a big difference in keeping prices down. A) small stores B) redlining companies C) large national chain stores D) malls E) factory outlets 33) 34) When major chain retailers avoid placing stores in disadvantaged neighborhoods, they are likely to be accused of the discriminatory practice of . A) redlining B) licensing C) puffery D) embargo E) scrambling merchandise 34) 35) Critics claim that mortgage lenders used . Instead of staying away from people in poor urban areas, they targeted and exploited them by steering them toward subprime loans even though many qualified for safer fixed- rate loans. A) redlining B) puffery C) the push strategy D) reverse redlining E) licensing 35) 6 lOMoARcPSD| 36) Several companies, some of them operating through the Internet, offer "paycheck advances." Consumers are encouraged to take out a loan against a paycheck they expect to receive in the near future. These short- term loans with high- interest rates, and high penalties for late payments, are often marketed to consumers who do not have traditional bank accounts. These companies could most easily be criticized for which of the following? A) shoddy products B) excessive markups C) poor service to disadvantaged consumers D) high- pressure selling E) high advertising and promotion costs 36) 37) Critics have charged that the marketing system urges too much interest in . 37) A) the push strategy B) entering the global market arena C) material possessions D) new product invention E) meeting a quota 38) Critics of the North American economic marketing system have charged that marketers have created a culture in which people are judged by what they . A) eat B) are C) own D) do E) avoid 38) 39) Events like Buy Nothing Day, started in Vancouver in 1992 by cartoonist Ted Dave, now span the globe. Buy Nothing Day’s purpose is to criticize the marketing system for creating . A) predatory competition B) too few social goods C) false wants and too much materialism D) shoddy products E) environmental problems 39) 40) Organizations like Adbusters Media Foundation, have charged that the marketing system urges too much interest in material possessions and that North Americans’ love affair with worldly possessions is not . A) global B) sustainable C) avoidable D) profitable E) feasible 40) 41) Which of the following statements supports the criticism that marketers benefit from creating false wants. A) Advertisers use the mass media to create materialistic models of the good life. B) People have strong defences against advertising and other marketing tools. C) The high failure rate of new products shows that companies are not able to control demand. D) People seek information when making important purchases and often do not rely on a single source. E) Even minor purchases that may be affected by advertising messages lead to repeat purchases only if the product delivers the promised customer value. 41) 7 lOMoARcPSD| 42) On a deeper level, our wants and values are influenced not only by marketers but also by all of the following, EXCEPT . A) intermediaries B) religion C) family D) education E) cultural background 42) 43) The overselling of private goods results in , such as cars causing traffic jams, air pollution, injuries, and deaths. A) social costs B) opportunity costs C) materialism D) cultural pollution E) misdirected funding 43) 44) To restore the balance between private and public goods, producers could be required to bear the full costs of their operations. A) environmental B) social C) cultural D) promotional E) safety 44) 45) For cars, "social costs" include all of the following EXCEPT . 45) A) traffic congestion B) gasoline shortages C) traffic accidents D) congestion tolls E) air pollution 46) TerraPass is a company that offers consumers the opportunity to buy carbon offsets, which are contributions to projects that combat global warming by reducing carbon emissions. TerraPass offers contribution packages for driving, flying, and home energy use. Through TerraPass, consumers can pay some of the costs of their private goods and services. A) promotional B) safety C) social D) health E) distribution 46) 47) Cultural pollution could be referred to as . 47) A) air pollution B) commercial noise C) a marketer's inability to identify a target market D) language barriers E) zipping or zapping 8 lOMoARcPSD| 48) All of the following are examples of cultural pollution EXCEPT . 48) A) street signs in an urban area B) commercials during serious programs C) ads in magazines D) spam in an e- mail inbox E) billboards marring beautiful scenery 49) Karl Lagaros, a marketing critic, is concerned about the pervasiveness of marketing. He points to advertising messages everywhere, from Web sites and e- mails to unwanted direct mail and catalogues to television commercials and product tie- ins to billboards and store signage. Karl is concerned about _ . A) high advertising and promotion costs B) false wants and too much materialism C) cultural pollution D) the balance between private goods and social goods E) deceptive practices 49) 50) In response to charges of , marketers point out that advertising makes much of television and radio free to users and also keeps down the cost of magazines and newspapers. A) creating false wants B) high promotion costs C) creating too much materialism D) too few social goods E) cultural pollution 50) 51) Cultural pollution continually pollutes people's minds with all of the following messages EXCEPT . A) power B) sex C) religion D) materialism E) status 51) 52) Large marketing companies can use patents and heavy promotion spending to . 52) A) acquire smaller companies B) achieve economies of scale C) set up barriers for others wanting to enter the industry D) bear the social costs of their operations E) offset cultural pollution 53) All of the following are potential advantages of acquisition EXCEPT? 53) A) Acquisitions require little government oversight. B) An industry might become more competitive after an acquisition. C) The acquiring company can gain economies of scale. D) An acquiring company may improve the efficiency of an acquired company. E) The acquisition may result in lower costs, leading to lower prices for consumers. 9 purchase of a competitor's products are all examples of . A) excessive materialism B) barriers to entering a market C) predatory competition D) acquisitions E) routine competition 55) The two major movements to keep business in line are environmentalism and . 55) A) consumerism B) antimonopoly legislation C) protectionism D) innovation E) regulating interstate commerce 56) The first organized consumer movement took place in the early 1900s. It was fueled by all of the following conditions EXCEPT _ . A) rising prices B) unsafe merchandise C) scandals in the drug industry D) conditions in the meat industry E) Upton Sinclair's writing 56) 57) Ralph Nader is most closely associated with which of the following? 57) A) the current wave of environmentalism B) the environmentalism movement of the 1960s and 1970s C) the consumerism movement of the 1960s D) enlightened marketing E) consumer- oriented marketing 58) is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers. A) The Bill of Rights B) The Human Relations Movement C) Grassroots politics D) Environmentalism E) Consumerism 58) 59) All of the following are traditional sellers' rights EXCEPT . 59) A) the right to promote any product to any audience B) the right to charge any price for the product C) the right to use any buying incentive programs D) the right to spend any amount to promote the product E) the right to introduce any product in any size and style 60) Consumer advocates call for all of the following additional consumer rights EXCEPT . 60) A) the right to be protected from unwanted marketing messages B) the right to be protected against questionable products and marketing practices C) the right to influence products in ways that will improve the quality of life D) the right to influence marketing practices in ways that will improve the quality of life E) the right to be well informed about important product aspects 10 into certain products and packaging as well as reducing the level of advertising "noise." A) be well informed about important aspects of the product B) expect the product to perform as claimed C) be protected against questionable marketing practices D) not buy a product that is offered for sale E) influence products and marketing practices in ways that will improve the "quality of life" 62) Proposals related to the consumer's right to be informed including knowing all of the following EXCEPT _ . A) product safety B) product freshness (open dating) C) unit pricing D) nutritional labeling E) ingredient labeling 62) 63) Proposals include promoting the use of sustainable ingredients, recycling and reducing solid wastes, and managing energy consumption. A) related to the right to charge any price for the product B) related to consumer protection C) related to the right to be informed D) relating to quality of life E) for preserving the world for future consumption 63) 64) is an organized movement of concerned citizens and government agencies to protect and improve people's living environment. A) Environmentalism B) Sense- of- mission marketing C) Social responsibility D) Consumerism E) Enlightened marketing 64) 65) The in North America came about because of concern for the loss of the atmosphere's ozone layer, toxic wastes, litter, and the damage caused by strip mining and forest depletion. A) second wave of consumerism B) first wave of enlightened marketing C) current wave of environmentalism D) first wave of modern environmentalism E) second wave of modern environmentalism 65) 66) is a management approach that involves developing strategies that both sustain the environment and produce profits for the company. A) Environmental sustainability B) New clean technology C) Consumerism D) Social responsibility E) Ethical decision making 66) 11 lOMoARcPSD| 67) Companies emphasizing are developing "green marketing" programs that develop ecologically safer products, recyclable and biodegradable packaging, more energy- efficient operations, and better pollution controls. A) pollution prevention B) product stewardship C) "beyond greening" D) sustainability vision E) new clean technology 67) 68) All of the following are components of both internal and external "greening" and "beyond greening" activities EXCEPT . A) pollution prevention B) product stewardship C) new clean technology D) sustainability vision E) environmentalism 68) 69) Nike produces PVC- free shoes, recycles old sneakers, and educates young people about conservation, reuse, and recycling. Nike is using the most basic level of environmental sustainability known as _ . A) "beyond greening" B) product stewardship C) redlining D) pollution prevention E) new clean technology 69) 70) All of the following are components of "green marketing" EXCEPT . 70) A) making safer products B) cradle- to- cradle practices C) biodegradability D) pollution controls E) recycling 71) Minimizing pollution from production and all environmental impacts throughout the full product life cycle is called . A) pollution prevention B) design for environment (DFE) C) environmental sustainability D) green marketing E) product stewardship 71) 72) ABC, Inc. is currently designing a new product line with the goal of making each product easy to recover, reuse, or recycle. ABC, Inc. hopes to recover many of these products when they reach the end of their lifecycle and reuse components in new products. ABC, Inc. is in the stage of environmental sustainability. A) pollution prevention B) new clean technology C) sustainability vision D) beyond greening E) product stewardship 72) 12 lOMoARcPSD| 73) involves thinking ahead in the design stage to create products that are easier to reuse, recycle, or recover. A) Pollution control B) Societal marketing C) Strategic planning D) Consumerism E) Design for environment (DFE) 73) 74) Xerox Corporation's Equipment Remanufacture and Parts Reuse Program converts end- of- life office equipment into new products and parts. This not only helps sustain the environment, but it is also highly profitable for the company. Such a practice is known as . A) a sustainability vision B) design for environment (DFE) C) pollution prevention D) green marketing E) new environmental technology 74) 75) Companies can develop , which serves as a guide to the future. It shows how the company's products and services, processes, and policies must evolve and what new technologies must be developed to get there. A) pollution prevention B) product stewardship C) cradle- to- cradle practices D) new clean technology E) a sustainability vision 75) 76) As international trade barriers come down and global markets expand, environmental issues are having impact on international trade. A) a greater B) a decreased C) a neutral D) a positive E) more impact on cultural differences and less 76) 77) The philosophy of holds that a company's marketing should support the best long- run performance of the marketing system. A) corporate social responsibility B) the free enterprise system C) consumer- oriented marketing D) the sustainable marketing concept E) environmentalism 77) 78) All of the following are sustainable marketing principles EXCEPT . 78) A) innovative marketing B) customer- value marketing C) societal marketing D) value marketing E) consumer- oriented marketing 13 lOMoARcPSD| 79) Jacob Engineering Group views and organizes its marketing activities from the viewpoint of its buyers. Management works hard to sense, serve, and satisfy the needs of its well- defined group of buyers. What does Jacob Engineering Group practice? A) sense- of- mission marketing B) societal marketing C) consumer- oriented marketing D) innovative marketing E) customer- value marketing 79) 80) Which sustainable marketing principle requires that a company seek real product and marketing improvements? A) market- oriented B) consumer- oriented C) sense- of- mission D) innovative E) customer- value 80) 81) After Sony and Microsoft soundly beat and outsold Nintendo's GameCube in the Video Game War of 2001, the smallest of the three game platform makers needed a new plan. The resulting Wii system, with its intuitive motion- sensitive controller and interactive games, appealed not only to teen boys but also to their sisters, moms, dads, and even grandparents. The system immediately outsold both the PlayStation 3 and Xbox 360. This is a successful example of marketing.