Test Bank for Marketing 12th Edition by Lamb
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Test Bank for Marketing 12th Edition by Lamb
Chapter 1—An Overview of Marketing
TRUE/FALSE
- Marketing is defined as producing, promoting, and selling products.
ANS: F
Marketing means more than just producing, promoting, and selling products. It is a philosophy that stresses customer relationships as well as benefiting the organization and its stakeholders.
PTS: 1 REF: 2 OBJ: 01-1 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Level I Knowledge
- 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.
ANS: T PTS: 1 REF: 3 OBJ: 01-1
TOP: AACSB Reflective Thinking KEY: CB&E Model Strategy
MSC: BLOOMS Level I Knowledge
- An exchange cannot take place unless each party in the exchange has something that the other party values.
ANS: T PTS: 1 REF: 3 OBJ: 01-1
TOP: AACSB Reflective Thinking KEY: CB&E Model Strategy
MSC: BLOOMS Level II Comprehension
- Otis places an ad in the local newspaper stating that his used Chevrolet is for sale for $4000. Unfortunately, no one purchased Otis’s used car. Therefore, he did not engage in marketing.
ANS: F
Marketing can occur even if an exchange does not occur. Otis engaged in marketing by advertsing in the local newspaper, even though no one bought his used car.
PTS: 1 REF: 4 OBJ: 01-1 TOP: AACSB Reflective Thinking
KEY: CB&E Model Research MSC: BLOOMS Level III Application
- Unlike a production orientated firm, a firm embracing a sales orientation focuses on customer wants and needs so it can develop the best product at the lowest cost that will require very little selling effort.
ANS: F
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.
PTS: 1 REF: 5 OBJ: 01-2 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Level II Comprehension
- The marketing concept states that the social and economic justification for an organization’s existence is the satisfaction of customers’ wants and needs while meeting organizational objectives.
ANS: T PTS: 1 REF: 5 OBJ: 01-2
TOP: AACSB Reflective Thinking KEY: CB&E Model Customer
MSC: BLOOMS Level II Comprehension
- A market orientation assumes that sales depend on aggressive sales techniques.
ANS: F
Market orientation is a philosophy that assumes that a sale depends on a customer’s decision to purchase a product, not on an aggressive sales force.
PTS: 1 REF: 5 OBJ: 01-2 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Level I Knowledge
- The fundamental problem with a sales orientation is a lack of understanding of customers’ needs and wants.
ANS: T PTS: 1 REF: 5 OBJ: 01-2
TOP: AACSB Reflective Thinking KEY: CB&E Model Customer
MSC: BLOOMS Level I Knowledge
- The societal marketing concept considers society’s long-term best interests along with the satisfaction of customers’ wants and needs.
ANS: T PTS: 1 REF: 6 OBJ: 01-2
TOP: AACSB Reflective Thinking KEY: CB&E Model Customer
MSC: BLOOMS Level II Comprehension
- Current trends indicate that more customers are becoming concerned about the environment each year and are trying to buy environmentally friendly products.
ANS: T PTS: 1 REF: 7 OBJ: 01-2
TOP: AACSB Reflective Thinking KEY: CB&E Model Customer
MSC: BLOOMS Level I Knowledge
- Customer value is the relationship between company profits and company costs.
ANS: F
Customer value is the relationship between benefits and the sacrifice necessary to obtain those benefits.
PTS: 1 REF: 9 OBJ: 01-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Customer MSC: BLOOMS Level I Knowledge
- The way to achieve customer satisfaction and value is to offer the lowest price.
ANS: F
Marketers interested in customer value offer realistic prices and try to achieve customer satisfaction and value by ensuring customer expectations are met or exceeded.
PTS: 1 REF: 10 OBJ: 01-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Customer MSC: BLOOMS Level VI Evaluation
- Sales-oriented firms tend to focus on long-term relationships, whereas market-oriented firms focus primarily on short-term relationships.
ANS: F
The reverse is true.
PTS: 1 REF: 10 OBJ: 01-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Customer MSC: BLOOMS Level VI Evaluation
- 3D Systems is a company that uses computers to generate new product prototypes. It has generated loyal business clients by providing the best customer support in the industry. The company also provides direct sales consultations that gives its salespeople intimate knowledge about what exactly its customers want. This partnership between 3D Systems and its customers entails relationship marketing.
ANS: T PTS: 1 REF: 10-11 OBJ: 01-3
TOP: AACSB Reflective Thinking KEY: CB&E Model Customer
MSC: BLOOMS Level III Application
- Only a firm’s salespeople need to be customer-oriented.
ANS: F
All employees need to be customer-oriented because in the customer’s eyes, the employee (regardless of the position held in the organization) is the firm and may be the only firm representative the customer ever sees.
PTS: 1 REF: 11 OBJ: 01-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Customer MSC: BLOOMS Level VI Evaluation
- Retailers who give their sales clerks the authority to handle customer complaints without having to get approval from a supervisor are using empowerment.
ANS: T PTS: 1 REF: 12 OBJ: 01-3
TOP: AACSB Reflective Thinking KEY: CB&E Model Customer
MSC: BLOOMS Level III Application
- In the early 1920s, Ford promised its customers any color vehicle they wanted as long as it was black. Ford’s management assumed anyone buying a car would accept the color black, so it made products affordable by offering only one variety in large quantities. Ford is an example of a market-oriented firm.
ANS: F
A market-oriented organization recognizes that different customers groups want different features or benefits.
PTS: 1 REF: 14 OBJ: 01-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Customer MSC: BLOOMS Level III Application
- The ultimate goal of most market-oriented firms is profitability that results from satisfying the wants and needs of its consumers.
ANS: T PTS: 1 REF: 15 OBJ: 01-3
TOP: AACSB Reflective Thinking KEY: CB&E Model Customer
MSC: BLOOMS Level VI Evaluation
- Sales-oriented firms usually rely more heavily on promotion alone than do market-oriented firms.
ANS: T PTS: 1 REF: 15 OBJ: 01-3
TOP: AACSB Reflective Thinking KEY: CB&E Model Strategy
MSC: BLOOMS Level II Comprehension
- Salespeople who work for market-oriented organizations are generally perceived by their customers as problem solvers and important links to supply sources and new products.
ANS: T PTS: 1 REF: 15 OBJ: 01-3
TOP: AACSB Reflective Thinking KEY: CB&E Model Customer
MSC: BLOOMS Level II Comprehension
- Marketing is important to business, so marketing should be part of the job of everyone in the organization, not just those in marketing.
ANS: T PTS: 1 REF: 16 OBJ: 01-4
TOP: AACSB Reflective Thinking KEY: CB&E Model Strategy
MSC: BLOOMS Level VI Evaluation
- The fundamental objectives of most businesses are survival, profits, and growth.
ANS: T PTS: 1 REF: 16 OBJ: 01-4
TOP: AACSB Reflective Thinking KEY: CB&E Model Strategy
MSC: BLOOMS Level I Knowledge
- Career opportunities in marketing exist only in for-profit organizations.
ANS: F
Marketing career opportunities exist in a variety of non-business organizations, including hospitals, museums, universities, the armed forces, and various government and social service agencies.
PTS: 1 REF: 16 OBJ: 01-4 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Level VI Evaluation
MULTIPLE CHOICE
- 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.
PTS: 1 REF: 2 OBJ: 01-1 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Level II Comprehension
- 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.
PTS: 1 REF: 3 OBJ: 01-1 TOP: AACSB Reflective Thinking
KEY: CB&E Model Pricing | CB&E Model Product | CB&E Model Distribution
MSC: BLOOMS Level IV Analysis
- 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.
PTS: 1 REF: 3 OBJ: 01-1 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Level II Comprehension
- 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.
PTS: 1 REF: 3 OBJ: 01-1 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Level I Knowledge
- Which of the following occurs when people give up something in order to receive something that they would rather have?
| a. | Exchange |
| b. | Synergy |
| c. | Transformation |
| d. | Leveraging |
| e. | Reciprocity |
ANS: A
Exchange is people giving up something to receive something they would rather have.
PTS: 1 REF: 3 OBJ: 01-1 TOP: AACSB Reflective Thinking
KEY: CB&E Model Product MSC: BLOOMS Level I Knowledge
- 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.
PTS: 1 REF: 3-4 OBJ: 01-1 TOP: AACSB Reflective Thinking
KEY: CB&E Model Customer MSC: BLOOMS Level VI Evaluation
- 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.
PTS: 1 REF: 3 OBJ: 01-1 TOP: AACSB Reflective Thinking
KEY: CB&E Model Customer MSC: BLOOMS Level II Comprehension
- 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.
PTS: 1 REF: 3-4 OBJ: 01-1 TOP: AACSB Reflective Thinking
KEY: CB&E Model Customer MSC: BLOOMS Level VI Evaluation
- 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.
PTS: 1 REF: 3-4 OBJ: 01-1 TOP: AACSB Reflective Thinking
KEY: CB&E Model Customer MSC: BLOOMS Level III Application
- 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.
PTS: 1 REF: 4 OBJ: 01-1 TOP: AACSB Reflective Thinking
KEY: CB&E Model Customer MSC: BLOOMS Level III Application
- 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.
PTS: 1 REF: 4 OBJ: 01-1 TOP: AACSB Reflective Thinking
KEY: CB&E Model Customer MSC: BLOOMS Level III Application
- 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.
PTS: 1 REF: 4 OBJ: 01-2 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Level VI Evaluation
- 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.
PTS: 1 REF: 4 OBJ: 01-2 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Level III Application
- 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.
PTS: 1 REF: 4 OBJ: 01-2 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Level II Comprehension
- 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.
PTS: 1 REF: 4 OBJ: 01-2 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Level III Application
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