Test Bank For Basic Marketing A Strategic Marketing Planning Approach 19th Edition by Perreault

Chapter 01 Marketing's Value to Consumers, Firms, and Society True / False Questions 1. Marketing is basically selling and advertising. True False 2. Marketing, in the literal sense, means "selling" or "advertising." True False 3. Marketing means "promotion and selling." True False 4. Actually making goods or performing services is called marketing. True False 5. Estimating what price consumers are willing to pay for a product and if the firm can make a profit selling at that price, is an example of a production activity. True False 6. Marketing can provide needed direction for production and help make sure that the right goods and services find their way to interested consumers. True False 7. Marketing plays an essential role in creating customer satisfaction. True False 1-1 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 8. Customer satisfaction is the extent to which a firm fulfills a consumer's needs, desires, and expectations. True False 9. If a firm produces the right goods or services, marketing has little role to play in creating customer satisfaction. True False 10. It is estimated that marketing costs about 50 percent of each consumer's dollar. True False 11. In advanced economies, marketing costs only about 10 percent of each consumer's dollar. True False 12. Marketing encourages the development and spread of new ideas, goods, and services. True False 13. According to the text, marketing means "selling" or "advertising." True False 14. Marketing discourages the development and spread of new ideas, goods, and services. True False 15. Marketing is both a set of activities performed by organizations and a social process. True False 16. Marketing can be viewed as a set of activities performed by organizations, but not as a social process. True False 17. Marketing can be viewed as a social process, but not as a set of activities performed by organizations. True False 1-2 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 18. The micro view of marketing sees it as the performance of activities that seek to accomplish an organization's objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client. True False 19. Marketing is the performance of activities that seek to accomplish an organization's objectives by anticipating customer or client needs and directing a flow of need- satisfying goods and services from producer to customer or client. True False 20. The micro view of marketing is mainly concerned with the activities performed by organizations. True False 21. From a micro view, marketing activities are performed only by profit-oriented organizations. True False 22. Marketing only applies to profit organizations. True False 23. Marketing only applies to for-profit organizations. True False 24. Marketing activities should be of no interest to a nonprofit organization. True False 25. Marketing activities should begin with potential customer needs, not with the production process. True False 26. Production, not marketing, should determine what products are to be made. True False 27. Marketing should begin with the production process. True False 1-3 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 28. Marketing does not occur unless there are two or more parties who want to exchange something for something else. True False 29. Marketing does not occur unless two or more parties are willing to exchange something for something else. True False 30. Marketing doesn't occur unless two or more parties are willing to exchange one item for another. True False 31. In a pure subsistence economy—when each family unit produces everything it consumes—no marketing is involved. True False 32. A marketing exchange is a single transaction between a firm and a customer, nothing more. True False 33. Marketing is concerned with individual transactions rather than with building ongoing relationships with customers because that is the job of people in the public relations department. True False 34. Macro-marketing emphasizes how the whole marketing system works. True False 35. Micro-marketing is a social process that directs an economy's flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes society's objectives. True False 36. Macro-marketing is a set of activities that direct an economy's flow of goods and services from producers to consumers in a way which effectively matches supply and demand and accomplishes the objectives of society. True False 1-4 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 37. Macro-marketing emphasizes how the whole system works, rather than the activities of individual organizations. True False 38. Macro-marketing emphasizes the activities of individual organizations. True False 39. Macro-marketing is concerned with examining the relationship of the entire production and distribution system. True False 40. An effective macro-marketing system matches heterogeneous supply with heterogeneous demand. True False 41. Effective marketing in an advanced economy is difficult because producers and consumers are often separated in several levels. True False 42. Achieving effective marketing in an advanced economy is simplified by the fact that producers are separated from consumers in only two ways: time and space. True False 43. "Economies of scale" means that as a company produces larger numbers of a particular product, the cost for each unit of the product goes down. True False 44. "Economies of scale" prevent a company from taking advantage of mass production. True False 45. "Economies of scale" means that as a company produces more of a product, the total cost of production goes up. True False 46. "Economies of scale" means that as a company produces more of a product, the cost of each unit produced goes down. True False 1-5 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 47. In advanced societies, all goods and services can be produced with mass production and its economies of scale. True False 48. Both mass production and effective marketing are needed to satisfy the economic needs of an advanced economy. True False 49. An effective macro-marketing system overcomes discrepancies of quantity and discrepancies of assortment by using the universal functions of marketing. True False 50. The universal functions of marketing include buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information. True False 51. The "universal functions of marketing" consist only of buying, selling, transporting, and storing. True False 52. Buying, selling, transporting and storing are all universal marketing functions. True False 53. The universal functions of marketing are performed in the same way in all nations and economic systems. True False 54. Marketing functions are performed by producers, consumers, and a variety of marketing specialists. True False 55. Intermediaries specialize in trade and production. True False 56. The advantages of working with intermediaries increase as the number of producers and customers, their distance apart, and the number and variety of competing products increase. True False 1-6 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 57. While intermediaries facilitate exchange, their cost makes the whole macro-marketing system less efficient. True False 58. Marketing collaborators are any firms that provide the marketing functions of buying and selling. True False 59. Marketing specialists such as intermediaries and collaborators hinder the exchange process between producers and consumers. True False 60. E-commerce refers to exchanges between individuals and organizations—and the activities that facilitate those exchanges—based on applications of information technology. True False 61. E-commerce refers to exchanges between organizations (not individuals) and the activities that facilitate those exchanges. True False 62. E-commerce refers to exchanges between organizations, but not exchanges between individuals. True False 63. E-commerce refers to exchanges between individuals, but not exchanges between organizations. True False 64. Compared to other innovations, firms have been relatively slow to adopt e- commerce. True False 65. Marketing costs go down and customer satisfaction goes up in all exchanges handled by e-commerce. True False 1-7 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 66. Responsibility for performing the marketing functions can be shifted and shared in a variety of ways, but no function can be completely eliminated. True False 67. Not all societies need an economic system. True False 68. An economic system is the way an economy organizes to use scarce resources to produce goods and services and distribute them for consumption among various people and groups in the society. True False 69. Only industrial nations need an economic system to decide what and how much is to be produced and distributed by whom, when, to whom, and why. True False 70. In a command economy, producers generally have little choice about what goods and services to produce. True False 71. In a command economy, the individual decisions of many producers and consumers make the macro-level decisions for the whole economy. True False 72. A market-directed economy is one in which government officials decide what and how much is to be produced and distributed by whom, when, to whom, and why. True False 73. In a market-directed economy, government officials decide what and how much is to be produced and distributed by whom, when, to whom, and why. True False 74. In a market-directed economy, price is a rough measure of how society values particular goods and services. True False 1-8 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 75. Market-directed economies tend to provide consumers with greater freedom of choice than command economies. True False 76. In a market-directed economy, consumers enjoy complete freedom of choice. True False 77. In a market-directed economy, profit is guaranteed. True False 78. Most Western economies are completely market-directed. True False 79. The American economy is entirely market-directed. True False 80. The American economy and most other Western economies are completely market- directed. True False 81. Whether a particular macro-marketing system is judged fair and effective depends on the objectives of the society. True False 82. The simple trade era was a time when families traded or sold their "surplus" output to local distributors who resold these goods to other consumers or distant distributors. True False 83. The marketing concept applies to nonprofit organizations as well as to businesses. True False 84. Because they don't try to earn a profit, the marketing concept is not very useful for nonprofit organizations. True False 1-9 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 85. The marketing concept cannot be applied to nonprofit organizations because they are not profit-oriented. True False 86. In nonprofit organizations, support may not come directly from satisfied customers. True False 87. As with any business, a nonprofit organization must take in as much money as it spends or it won't survive. True False 88. A nonprofit organization does not measure profit in the same way as a firm. True False 89. During the "production era" a company focuses on production—because few products are available in the market. True False 90. From the Industrial Revolution until the 1920s, most companies were in the production era. True False 91. During the "sales era," the firm tries to improve short-run marketing policy planning to tie together its activities. True False 92. Marketing departments are usually formed when firms go from the "production era" to the "sales era." True False 93. The "marketing department era" is a time when all marketing activities are brought under the control of one department. True False 94. During the "marketing company era," the total company effort is guided by the idea that customers exist to buy the firm's output. True False 1-10 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 95. A company has moved into the "marketing company era" when, in addition to short- run marketing planning, the total company effort is guided by the marketing concept. True False 96. The marketing concept means that an organization aims all its efforts at satisfying its customers—at a profit. True False 97. The marketing concept says that a firm should aim all its efforts at satisfying customers, even if this proves to be unprofitable. True False 98. The "marketing concept" means that a firm emphasizes attracting new customers above all other objectives. True False 99. A firm that adopts the "marketing concept" will aim all its efforts at satisfying customers, while trying to make a profit. True False 100A firm that makes products which are easy to produce and then tries to sell them has . a production orientation. True False 101The term "marketing orientation" means making products that are easy to produce . and then trying to sell them. True False 102A marketing-oriented firm would try to produce what customers want, while a . production-oriented firm would try to get customers to buy what the firm has produced. True False 103The three basic ideas in the marketing concept are 1) putting the marketing manager . in charge of the whole firm, 2) a competitive orientation, and 3) an emphasis on profit. True False 1-11 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 104When a firm makes a total company effort to satisfy its customers, and profit—not . just sales—is an objective of the firm, the company is practicing the "marketing concept." True False 105The three basic ideas included in the definition of the marketing concept are: . customer satisfaction, a total company effort, and sales as an objective. True False 106The three basic ideas in the marketing concept are: 1) customer satisfaction; 2) . confining marketing activities to marketing professionals; and 3) having profit as an objective. True False 107Adopting the marketing concept rarely requires any change in a firm's attitudes, . organization structure, or management methods and procedures. True False 108Adopting the marketing concept requires that a business firm eliminate all functional . departments. True False 109Companies that consider the triple bottom line measure economic, social, and . political outcomes. True False 110Organizations guided by a triple bottom line consider economic, social, and . environmental outcomes as measures of long-term success. True False 111The marketing concept was very quickly accepted, especially among producers of . industrial commodities like steel and glass. True False 112Producers who operate in a competitive environment are more likely to adopt the . marketing concept. True False 1-12 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 113Adoption of the marketing concept is now universal. . True False 114A manager who follows a production concept views customer satisfaction as the path . to profit. True False 115Customer value is the difference that a customer sees between the benefits of a . firm's offering and the costs of obtaining those benefits. True False 116Customer value is the difference between the benefits a customer sees from a market . offering and the costs of obtaining those benefits. True False 117Customer value is just another term for customer satisfaction. . True False 118A good or service that doesn't meet a consumer's needs results in low customer . value. True False 119Setting a low price for a firm's offering is a sure way of creating high customer value. . True False 120Low price and high customer value is one and the same thing. . True False 121When it comes to customer value, it is the customer's view that matters, not the view . of the marketing manager. True False 122In marketing, it is the manager's viewpoint that matters, not the customer's. . True False 123Offering superior customer value is especially important when competition is intense. . True False 1-13 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 124Often the best way for a firm to beat the competition is to be first to satisfy a need . that others have not even considered. True False 125Firms that embrace the marketing concept seek ways to build a profitable long-term . relationship with each customer. True False 126It is more costly for firms to try and attract new customers than it is to build a strong . relationship with existing customers. True False 127To develop lasting relationships with customers, marketing-oriented firms need to . focus on customer satisfaction both before and after each sale. True False 128When trying to build relationships with customers, salespeople must be particularly . well-trained because they are usually the only employees whose actions influence customers directly. True False 129The text credits L.L. Bean's success to its focus on customer satisfaction and good . customer value. True False 130The text credits L.L. Bean's marketing success to its great location. . True False 131L.L. Bean has achieved success because its customers typically view the benefits of . buying its products as greater than the costs. True False 132The text credits Chipotle's marketing success to its great price. . True False 133Chipotle has achieved success because its customers typically view the benefits of . buying its products as greater than the costs. True False 1-14 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 134The text credits Chipotle's success to its offering good customer value. . True False 135Sometimes micro-macro dilemmas arise because what is "good" for some producers . and consumers may not be "good" for society as a whole. True False 136Gun control is an example of a micro-macro dilemma. . True False 137The micro-macro dilemma occurs when a firm focuses its efforts on satisfying some . consumers to achieve its objectives, possibly causing negative societal outcomes. True False 138A firm's obligation to improve its positive effects on society and reduce its negative . effects is called fiscal responsibility. True False 139The marketing concept says that it is a firm's obligation to improve its positive effects . on society and reduce its negative effects. True False 140Organizations that adopt the marketing concept should be concerned about . marketing ethics as well as broader issues of social responsibility. True False 141Marketing ethics are the moral standards that guide marketing decisions and actions. . True False 142The moral standards that guide marketing decisions and actions are called marketing . ethics. True False 143Moral standards often vary from one person to another, from one society to another, . and among different groups within a society, so there is likely to be disagreement about what opinion is correct when it comes to marketing ethics. True False 1-15 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 144A manager shouldn't be criticized for making an unethical marketing decision unless . the ethical breach was intentional. True False 145The American Marketing Association has adopted a statement of ethics that sets . specific ethical standards for many aspects of the management job in marketing. True False 146The American Marketing Association's statement of ethics sets specific ethical . standards for many aspects of marketing. True False Multiple Choice Questions 147According to the text, marketing means: . A. much more than selling and advertising. B. sellin g. C. producing and selling. D. advertisin g. E. selling and advertising. 1-16 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 148The following activities are rightly considered marketing except: . A. advertising the grand opening of a new furniture store. B. researching which furniture designs are popular with consumers. C. determining how many pieces of furniture can be sold at different price points. D. building a facility to make furniture. E. selling furniture to customers in a furniture showroom. 149A marketing manager planning to launch a successful new product should begin by: . A. obtaining financing for the venture. B. designing products that interest him or her. C. identifying a product or service that customers need. D. choosing a business partner. E. establishing a legal corporation. 150Which of the following would not engage in the process of marketing? . A. The United Way B. United States Postal Service C. Outback Steakhouse D. JFK International Airport E. Sam's Club members