Name: Wilman Perez
Score: 223 / 225 points (99%)
BA140 – Marketing Final Exam Study Guide
True/False
Indicate whether the statement is true or false.
F
1.
Marketing is defined as producing, promoting, and selling products.
ANSWER:
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.
POINTS:
1 / 1
FEEDBACK:
REF:
3
T
2.
The societal marketing concept considers society’s long-term best interests along
with the satisfaction of customers’ wants and needs.
ANSWER:
T
POINTS:
1 / 1
FEEDBACK:
REF:
6
F
3.
Personnel in sales-oriented firms tend to be “outward looking,” focusing on
selling what the market wants.
ANSWER:
F
Personnel is sales-oriented firms tend to be “inward looking,”
focusing on selling what the organization makes rather than
making what the market wants.
POINTS:
1 / 1
FEEDBACK:
REF:
7
F
4.
Customer value is the relationship between company profits and company costs.
ANSWER:
F
Customer value is the relationship between benefits and the
sacrifice necessary to obtain those benefits.
POINTS:
1 / 1
FEEDBACK:
REF:
7
F
5.
Only a firm’s salespeople need to be customer-oriented.
ANSWER:
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.
POINTS:
1 / 1
FEEDBACK:
REF:
10
T
6.
The ultimate goal of most market-oriented firms is profitability that results from
satisfying the wants and needs of its consumers.
ANSWER:
T
POINTS:
1 / 1
FEEDBACK:
REF:
14
T
7.
A production costs analysis could be a part of a company’s SWOT analysis.
ANSWER:
T
POINTS:
1 / 1
FEEDBACK:
REF:
38
T
8.
Environmental scanning entails the collection and analysis of information about
factors that may affect the organization as well as the identification of market
opportunities and threats.
ANSWER:
T
POINTS:
1 / 1
FEEDBACK:
REF:
39
F
9.
To be useful, marketing objectives should meet four criteria: realistic,
measurable, time-specific, and based on sales.
ANSWER:
F
The four criteria for useful marketing objectives are: realistic,
measurable, time-specific, and compared to a benchmark. They
do not have to be based on sales.
POINTS:
1 / 1
FEEDBACK:
REF:
39
T
10.
A competitive advantage is the set of unique features of a company and its
products that are perceived by the target market as significant and superior to the
competition.
ANSWER:
T
POINTS:
1 / 1
FEEDBACK:
REF:
40
T
11.
Developing a cost competitive advantage can enable a firm to deliver superior
customer value.
ANSWER:
T
POINTS:
1 / 1
FEEDBACK:
REF:
41
F
12.
As marketers gain more experience in marketing a product, costs tend to
decrease, which is an example of the maturity effect.
ANSWER:
F
This is an example of the experience curve effect, which means
costs decline at a predictable rate as experience with a product
increases.
POINTS:
1 / 1
FEEDBACK:
REF:
41
T
13.
Niche competitive advantages are quite common.
ANSWER:
T
The text lists several examples of how companies have created
niche competitive advantages.
POINTS:
1 / 1
FEEDBACK:
REF:
42
F
14.
When the Internet auction company eBay opened a version of the company
called eBayfrance for the French market, that was an example of market
penetration.
ANSWER:
F
Market penetration is the strategy of selling more to the existing
customers. This is an example of a market development strategy,
which is attracting new customers to existing products.
POINTS:
1 / 1
FEEDBACK:
REF:
44
F
15.
A portfolio matrix is a tool for allocating resources among products or strategic
business units on the basis of relative market share and degree of innovation.
ANSWER:
F
A portfolio matrix is based on relative market share and market
growth rate.
POINTS:
1 / 1
FEEDBACK:
REF:
45
T
16.
Marketing strategy involves the activities of selecting and describing one or more
target markets and developing and maintaining a marketing mix that will produce
mutually satisfying exchanges with target markets.
ANSWER:
T
POINTS:
1 / 1
FEEDBACK:
REF:
46
F
17.
The four Ps of the marketing mix are product, planning, promotion, and price.
ANSWER:
F
The four Ps are product, place, promotion, and price
POINTS:
1 / 1
FEEDBACK:
REF:
47
F
18.
Strategic planning is most effective when managers view it as an annual exercise.
ANSWER:
F
Strategic planning requires creativity and an ongoing
commitment, not just going through the motions once a year.
POINTS:
1 / 1
FEEDBACK:
REF:
50
T
19.
The media is identified by the text as one of the six modes of social control in an
open and democratic society.
ANSWER:
T
POINTS:
1 / 1
FEEDBACK:
REF:
74
F
20.
The six modes of social control are less important today due to the globalization
of the world.
ANSWER:
F
These six factors are more important today due to the increasing
complexity of the global economy.
POINTS:
1 / 1
FEEDBACK:
REF:
74
F
21.
Moral relativists believe in absolute rules.
ANSWER:
F
Moral relativists believe that ethical truths depend on the
individuals or groups holding them.
POINTS:
1 / 1
FEEDBACK:
REF:
76-77
T
22.
Morals are rules people develop as a result of cultural values and norms.
ANSWER:
T
POINTS:
1 / 1
FEEDBACK:
REF:
78
F
23.
Unfortunately, most businesspeople have not progressed beyond the self-centered
and manipulative actions of preconventional morality.
ANSWER:
F
Preconventional morality is childlike—calculating, self-centered,
and even selfish, based on what will be immediately punished or
rewarded. Fortunately, most businesspeople have progressed
beyond this behavior.
POINTS:
1 / 1
FEEDBACK:
REF:
79
T
24.
Top managers who behave ethically can influence others in an organization to
behave ethically.
ANSWER:
T
POINTS:
1 / 1
FEEDBACK:
REF:
79
T
25.
A code of ethics can be an effective internal control on behavior, which is more
desirable than external controls like government regulations.
ANSWER:
T
POINTS:
1 / 1
FEEDBACK:
REF:
80
F
26.
Because social responsibility has proven to have a limited return on investment,
the number of businesses opting to act socially responsible is declining.
ANSWER:
F
Social responsibility of business is growing around the
world. One study found that a one percent increase in the firm’s
social responsibility ratings led to a $17 million increase in
profits.
POINTS:
1 / 1
FEEDBACK:
REF:
89
T
27.
When Laurie uses her Target Visa card at the store, Target donates 1% of her
purchase to her children’s school. This is an example of cause-related marketing.
ANSWER:
T
POINTS:
1 / 1
FEEDBACK:
REF:
94-95
F
28.
Everyone agrees that cause-related marketing is beneficial.
ANSWER:
F
The text contains a section on the cause marketing controversy.
POINTS:
1 / 1
FEEDBACK:
REF:
95-96
F
29.
Marketers can control the external environment in which their organizations
operate.
ANSWER:
F
Although marketers can control the marketing mix and perhaps
influence the external environment, they cannot control the
external environment in which their organizations operate.
POINTS:
1 / 1
FEEDBACK:
REF:
103
F
30.
Champion Lyte is a sugar-free sports drink designed to replenish electrolytes lost
during activity or illness. Since the product was designed primarily for diabetics,
health care professionals who treat diabetics are its primary target market.
ANSWER:
F
The target market consists of the diabetics for whom the product
was designed.
POINTS:
1 / 1
FEEDBACK:
REF:
103
T
31.
The phenomenon of working women has had a greater effect on marketing than
has any other social change.
ANSWER:
T
POINTS:
1 / 1
FEEDBACK:
REF:
107
T
32.
Generation Y is the most ethnically diverse generation the nation has ever seen.
ANSWER:
T
POINTS:
1 / 1
FEEDBACK:
REF:
112
F
33.
Generation Y is the first generation of latchkey children—products of dual-career
and/or divorced households.
ANSWER:
F
Generation X was the first generation of latchkey children.
POINTS:
1 / 1
FEEDBACK:
REF:
112
F
34.
Almost half of all U.S. residents is a minority.
ANSWER:
F
About one in three U.S. residents is a minority.
POINTS:
1 / 1
FEEDBACK:
REF:
115
F
35.
Rising incomes mean a higher standard of living.
ANSWER:
F
Not necessarily. Increased standards of living are a function of
purchasing power, which is measured by comparing income to the
relative cost of a set standard of goods and services in different
geographic areas.
POINTS:
1 / 1
FEEDBACK:
REF:
122
T
36.
Basic research attempts to develop new or improved products.
ANSWER:
F
This is applied research. Basic research attempts to expand the
frontiers of knowledge but is not aimed at a specific, pragmatic
problem.
POINTS:
0 / 1
FEEDBACK:
REF:
125
F
37.
The Sherman Act of 1890 establishes protection for trademarks.
ANSWER:
F
The Lanham Act of 1946 establishes protection of trademarks.
POINTS:
1 / 1
FEEDBACK:
REF:
128
T
38.
Marketers need a thorough understanding of the laws established by the federal
government, state governments, and regulatory agencies.
ANSWER:
T
POINTS:
1 / 1
FEEDBACK:
REF:
128
F
39.
After Hal Li purchased and installed a woodburning stove to heat his family
home, the stove caught fire and damaged much of the house. He believes the
stove had inadequate insulation. Li should voice his concerns to the Federal
Trade Commission (FTC).
ANSWER:
F
The Consumer Product Safety Commission is designed to protect
the health and safety of consumers.
POINTS:
1 / 1
FEEDBACK:
REF:
130
T
40.
The purchase of products like soft drinks, cleaning products, and gasoline
generally exemplify routine response behavior.
ANSWER:
T
POINTS:
1 / 1
FEEDBACK:
REF:
197
T
41.
Noah perceives the purchase of a tattoo to be a socially risky decision because he
thinks people will judge him unfairly if he has a tattoo. Hayley, however, does
not perceive getting a tattoo as particularly risky behavior. As far as social risk is
concerned, getting a tattoo will be a higher-involvement activity for Noah than
for Hayley.
ANSWER:
T
POINTS:
1 / 1
FEEDBACK:
REF:
198
F
42.
A newly hired employee at an advertising agency chose the clothes she
purchased for work by observing the clothes she saw worn in The Apprentice, a
popular television reality show. In this example, the women hoping to work for
Donald Trump served as primary reference groups.
ANSWER:
F
A primary reference group requires direct, face-to-face
membership, so a television show cannot serve as a primary
reference group.
POINTS:
1 / 1
FEEDBACK:
REF:
207
T
43.
Opinion leaders are often the first to try new products and services.
ANSWER:
T
POINTS:
1 / 1
FEEDBACK:
REF:
209
F
44.
While lifestyle research is useful for describing individual consumers, it is not
useful for segmenting consumer groups.
ANSWER:
F
Lifestyle analysis, unlike personality research, has proven
valuable in segmentation and targeting.
POINTS:
1 / 1
FEEDBACK:
REF:
214-215
F
45.
Selective exposure occurs when consumers change information that conflicts
with their feelings or beliefs.
ANSWER:
F
Selective distortion occurs when consumers change information
that conflicts with their feelings or beliefs.
POINTS:
1 / 1
FEEDBACK:
REF:
216
T
46.
Stimulus discrimination is a learned ability to differentiate among similar
products.
ANSWER:
T
POINTS:
1 / 1
FEEDBACK:
REF:
220
F
47.
An attitude is a physiological difference among consumers.
ANSWER:
F
An attitude is a learned tendency to respond consistently toward a
given object.
POINTS:
1 / 1
FEEDBACK:
REF:
220
T
48.
For a product to be called a business product, it must be used to manufacture
other products, become part of another product, or facilitate the normal
operations of a firm.
ANSWER:
T
POINTS:
1 / 1
FEEDBACK:
REF:
231
F
49.
The emergence of the Internet has made buying and selling in the business
market a process that is only efficient for the largest producer to pursue.
ANSWER:
F
Even the smallest businesses are finding they are able to compete
successfully with their largest competitors as a result of the
Internet. See Exhibit 7.1.
POINTS:
1 / 1
FEEDBACK:
REF:
232
T
50.
Any firm that purchases goods and services to make a profit by using them to
produce other goods is part of the producer segment of the business market.
ANSWER:
T
POINTS:
1 / 1
FEEDBACK:
REF:
237
F
51.
The government sector (federal, state and local) is a minor segment of the
business market
ANSWER:
F
The government is a major segment of the business market.
POINTS:
1 / 1
FEEDBACK:
REF:
238
F
52.
If DuPont runs advertisements encouraging people to buy clothing that contains
Lycra (a DuPont product), this would be an attempt to influence secondary
demand.
ANSWER:
F
This is an attempt to influence derived demand.
POINTS:
1 / 1
FEEDBACK:
REF:
241
T
53.
Unlike consumer product channels of distribution, which usually have one or
more intermediaries, channels of distribution for business products are often
direct.
ANSWER:
T
POINTS:
1 / 1
FEEDBACK:
REF:
242
T
54.
Most business marketers emphasize personal selling as their primary
communications tool.
ANSWER:
T
POINTS:
1 / 1
FEEDBACK:
REF:
244
F
55.
Individual producers of raw materials have great flexibility in pricing their
products.
ANSWER:
F
Prices of raw materials are set by the market, and individual
producers have little pricing flexibility.
POINTS:
1 / 1
FEEDBACK:
REF:
244
T
56.
Items that are ready for assembly and that retain their identities when
incorporated into another product are called component parts.
ANSWER:
T
POINTS:
1 / 1
FEEDBACK:
REF:
244
F
57.
Because formal committees are often established to purchase business products,
members of buying centers can be readily identified on formal organizational
charts.
F
Buying centers do not appear on formal organizational charts.
POINTS:
1 / 1
FEEDBACK:
REF:
246
ANSWER:
F
Business marketers are increasingly recognizing the importance
of customer service.
POINTS:
1 / 1
REF:
249
