, Chapter 01
Test Bank
1. Marketing is an activity that only large firms with specialized departments can execute.
FALSE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Define the role of marketing in organizations.
Topic: Define Marketing
Feedback: Marketing activities can be performed by organizations of all sizes and also by individuals.
2. The marketing plan is broken down into various components—how the product or service will be conceived or designed, how much it should cost,
where and how it will be promoted, and how it will get to the consumer.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Define the role of marketing in organizations.
Topic: Define Marketing
Feedback: The marketing plan is broken down into various components—how the product or service will be conceived or designed, how much it
should cost, where and how it will be promoted, and how it will get to the consumer.
3. Understanding the marketplace and a customer's needs and wants is fundamental to marketing success.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Define the role of marketing in organizations.
Topic: Define Marketing
Feedback: Understanding the marketplace, and especially the needs and wants of the customer, is fundamental to marketing success.
4. As Godiva and Hershey’s battle for chocolate lovers, they divide the population into a host of categories such as luxury versus cost-conscious and
service-oriented versus self-service.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Define the role of marketing in organizations.
Topic: Define Marketing
Feedback: As Godiva and Hershey’s battle for chocolate lovers, they divide the population into a host of categories: luxury versus cost-conscious,
service-oriented versus self-service, those who purchase chocolates for a quick energy-boosting snack versus those who purchase it as a reward for a
hard day’s work or as a gift for a friend or loved one, and those who prefer "Made in America” versus those who prefer the illusion that their
chocolates are made in Belgium (even though Godiva has manufacturing facilities in the U.S.).
5. The four Ps of the marketing mix include product, promotion, planning, and place.
FALSE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Define the role of marketing in organizations.
Topic: The Four Ps
Feedback: The four Ps of the marketing mix are product, price, place, and promotion.
6. Supply chain management is the set of approaches and techniques that firms employ to efficiently and effectively integrate their suppliers,
manufacturers, warehouses, stores, and other firms involved in the transaction into a seamless value chain in which merchandise is produced and
distributed in the right quantities, to the right locations, and at the right time.
1-1
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
,TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Define the role of marketing in organizations.
Topic: Define Marketing
Feedback: Supply chain management is the set of approaches and techniques that firms employ to efficiently and effectively integrate their suppliers,
manufacturers, warehouses, stores, and other firms involved in the transaction (e.g., transportation companies) into a seamless value chain in which
merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, while minimizing systemwide costs and
satisfying the service levels required by the customers.
7. Value is what you get for what you give.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Define the role of marketing in organizations.
Topic: Product Value Creation
Feedback: Value reflects the relationship of benefits to costs, or what you get for what you give.
8. In value cocreation, the customer participates in the creation of a good or service, which provides additional value to the customer.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Define the role of marketing in organizations.
Topic: Product Value Creation
Feedback: A creative way to provide value to customers is to engage in value cocreation. In this case, customers can act as collaborators to create the
product or service. When clients work with their investment advisers, they cocreate their investment portfolios; when Nike allows customers to
custom design their sneakers, they are cocreating.
9. Marketing advises production about how much of the company's product to make and then tells supply chain mangers when to ship it.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: Define Marketing
Feedback: Marketing advises production about how much of the company's product to make and then tells supply chain mangers when to ship it.
10. Entrepreneurs are people who organize, operate, and assume the risk of a business venture.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Understand why marketing is important both within and outside the firm.
Topic: Define Marketing
Feedback: Entrepreneurs are people who organize, operate, and assume the risk of a business venture.
11. When a manufacturer sells truck and car parts to Toyota, this is an example of B2C marketing.
FALSE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Define the role of marketing in organizations.
Topic: Buyer-seller Relationships
Feedback: This is an example of B2B (business-to-business) marketing. B2C marketing would involve selling cars or trucks to individual consumers.
1-2
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
, 12. The power adapters Dell sells with its computers are built by small companies that specialize in power-related accessories. When Dell purchases
its power adapters from these small companies, it is engaged in B2B marketing.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Define the role of marketing in organizations.
Topic: Buyer-seller Relationships
Feedback: Dell, a business, is purchasing supplies from another business, so this is an example of business-to-business (B2B) marketing.
13. Garage sales and online classified ads are examples of C2C marketing.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Define the role of marketing in organizations.
Topic: Buyer-seller Relationships
Feedback: These are C2C marketing scenarios, where consumers market to one another.
14. Key to the success of many entrepreneurs is that they launch ventures that aim to satisfy unfilled needs.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-03 Understand why marketing is important both within and outside the firm.
Topic: The Four Ps
Feedback: Whereas marketing plays a major role in the success of large corporations, it also is at the center of the successes of numerous new
ventures initiated by entrepreneurs, or people who organize, operate, and assume the risk of a business venture. Key to the success of many such
entrepreneurs is that they launch ventures that aim to satisfy unfilled needs.
15. HappyCow is an example of a location-based social media application.
TRUE
AACSB: Technology
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: Social Media as part of the Marketing Plan
Feedback: Several restaurant chains are exploiting location-based social media applications such as HappyCow, Yelp, Foodspotting, Foursquare,
OpenTable, and Seamless. By using location-based apps on their mobile phones, customers can use, for example, HappyCow to find nearby
vegetarian restaurants or Yelp to find restaurants that are well rated by users. The result is that users are driving the way brands and stores are
interacting with social media.
16. As it relates to marketing, the trade of things of value between the buyer and the seller so that each is better off as a result is known as an
exchange.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Define the role of marketing in organizations.
Topic: Define Marketing
Feedback: In a marketing exchange, sellers provide products or services, then communicate and facilitate the delivery of their offering to consumers.
Buyers complete the exchange by giving money and information to the seller.
17. Marketing's fundamental purpose is to create value by developing a variety of offerings that will earn income for the company.
FALSE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
1-3
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Test Bank
1. Marketing is an activity that only large firms with specialized departments can execute.
FALSE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Define the role of marketing in organizations.
Topic: Define Marketing
Feedback: Marketing activities can be performed by organizations of all sizes and also by individuals.
2. The marketing plan is broken down into various components—how the product or service will be conceived or designed, how much it should cost,
where and how it will be promoted, and how it will get to the consumer.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Define the role of marketing in organizations.
Topic: Define Marketing
Feedback: The marketing plan is broken down into various components—how the product or service will be conceived or designed, how much it
should cost, where and how it will be promoted, and how it will get to the consumer.
3. Understanding the marketplace and a customer's needs and wants is fundamental to marketing success.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Define the role of marketing in organizations.
Topic: Define Marketing
Feedback: Understanding the marketplace, and especially the needs and wants of the customer, is fundamental to marketing success.
4. As Godiva and Hershey’s battle for chocolate lovers, they divide the population into a host of categories such as luxury versus cost-conscious and
service-oriented versus self-service.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Define the role of marketing in organizations.
Topic: Define Marketing
Feedback: As Godiva and Hershey’s battle for chocolate lovers, they divide the population into a host of categories: luxury versus cost-conscious,
service-oriented versus self-service, those who purchase chocolates for a quick energy-boosting snack versus those who purchase it as a reward for a
hard day’s work or as a gift for a friend or loved one, and those who prefer "Made in America” versus those who prefer the illusion that their
chocolates are made in Belgium (even though Godiva has manufacturing facilities in the U.S.).
5. The four Ps of the marketing mix include product, promotion, planning, and place.
FALSE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Define the role of marketing in organizations.
Topic: The Four Ps
Feedback: The four Ps of the marketing mix are product, price, place, and promotion.
6. Supply chain management is the set of approaches and techniques that firms employ to efficiently and effectively integrate their suppliers,
manufacturers, warehouses, stores, and other firms involved in the transaction into a seamless value chain in which merchandise is produced and
distributed in the right quantities, to the right locations, and at the right time.
1-1
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
,TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Define the role of marketing in organizations.
Topic: Define Marketing
Feedback: Supply chain management is the set of approaches and techniques that firms employ to efficiently and effectively integrate their suppliers,
manufacturers, warehouses, stores, and other firms involved in the transaction (e.g., transportation companies) into a seamless value chain in which
merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, while minimizing systemwide costs and
satisfying the service levels required by the customers.
7. Value is what you get for what you give.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Define the role of marketing in organizations.
Topic: Product Value Creation
Feedback: Value reflects the relationship of benefits to costs, or what you get for what you give.
8. In value cocreation, the customer participates in the creation of a good or service, which provides additional value to the customer.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Define the role of marketing in organizations.
Topic: Product Value Creation
Feedback: A creative way to provide value to customers is to engage in value cocreation. In this case, customers can act as collaborators to create the
product or service. When clients work with their investment advisers, they cocreate their investment portfolios; when Nike allows customers to
custom design their sneakers, they are cocreating.
9. Marketing advises production about how much of the company's product to make and then tells supply chain mangers when to ship it.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: Define Marketing
Feedback: Marketing advises production about how much of the company's product to make and then tells supply chain mangers when to ship it.
10. Entrepreneurs are people who organize, operate, and assume the risk of a business venture.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Understand why marketing is important both within and outside the firm.
Topic: Define Marketing
Feedback: Entrepreneurs are people who organize, operate, and assume the risk of a business venture.
11. When a manufacturer sells truck and car parts to Toyota, this is an example of B2C marketing.
FALSE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Define the role of marketing in organizations.
Topic: Buyer-seller Relationships
Feedback: This is an example of B2B (business-to-business) marketing. B2C marketing would involve selling cars or trucks to individual consumers.
1-2
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
, 12. The power adapters Dell sells with its computers are built by small companies that specialize in power-related accessories. When Dell purchases
its power adapters from these small companies, it is engaged in B2B marketing.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Define the role of marketing in organizations.
Topic: Buyer-seller Relationships
Feedback: Dell, a business, is purchasing supplies from another business, so this is an example of business-to-business (B2B) marketing.
13. Garage sales and online classified ads are examples of C2C marketing.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Define the role of marketing in organizations.
Topic: Buyer-seller Relationships
Feedback: These are C2C marketing scenarios, where consumers market to one another.
14. Key to the success of many entrepreneurs is that they launch ventures that aim to satisfy unfilled needs.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-03 Understand why marketing is important both within and outside the firm.
Topic: The Four Ps
Feedback: Whereas marketing plays a major role in the success of large corporations, it also is at the center of the successes of numerous new
ventures initiated by entrepreneurs, or people who organize, operate, and assume the risk of a business venture. Key to the success of many such
entrepreneurs is that they launch ventures that aim to satisfy unfilled needs.
15. HappyCow is an example of a location-based social media application.
TRUE
AACSB: Technology
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 01-02 Describe how marketers create value for a product or service.
Topic: Social Media as part of the Marketing Plan
Feedback: Several restaurant chains are exploiting location-based social media applications such as HappyCow, Yelp, Foodspotting, Foursquare,
OpenTable, and Seamless. By using location-based apps on their mobile phones, customers can use, for example, HappyCow to find nearby
vegetarian restaurants or Yelp to find restaurants that are well rated by users. The result is that users are driving the way brands and stores are
interacting with social media.
16. As it relates to marketing, the trade of things of value between the buyer and the seller so that each is better off as a result is known as an
exchange.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Define the role of marketing in organizations.
Topic: Define Marketing
Feedback: In a marketing exchange, sellers provide products or services, then communicate and facilitate the delivery of their offering to consumers.
Buyers complete the exchange by giving money and information to the seller.
17. Marketing's fundamental purpose is to create value by developing a variety of offerings that will earn income for the company.
FALSE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
1-3
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
