Marketing, 14e (Kerin)
1) Ben & Jerry’s mission to make the world a better place is linked to various organizational and
marketing strategies, one of which is
A) supporting farmers who agree to use sustainable farming practices, implementing fair
working standards, and investing in local communities.
B) the intent of making modest profits without sacrificing high product quality standards.
C) ingredients that are all completely organic and are available only in Vermont to ensure
freshness and contribute to the local economy.
D) a commitment to donating a percentage of profits to Teach for America.
E) ingredients that come exclusively from developed countries promoting Fair Trade practices.
2) Ben & Jerry’s mission-driven approach led the company to successfully implement many
highly creative organizational and marketing strategies. One example includes
A) ISO 9000, promoting the quality concept through its commitment to making the finest ice
cream from the best ingredients.
B) “linked prosperity,” which encouraged the success of all constituents including employees.
C) Regeneration Nation, generating enough revenue for the firm to be a completely nonprofit
organization.
D) Give and Go, donating 10 percent of its net profits to local charitable causes and an additional
5 percent to support producers that practice sustainable farming.
E) PartnerShops, Ben & Jerry scoop shops that are independently owned and operated by
community-based nonprofit organizations.
3) Ben & Jerry’s has earned B-Corp certification, which means it has
A) reached the goal of generating enough revenue to be a completely nonprofit organization.
B) a sustainable financial basis of profitable growth, increasing value for stakeholders and
expanding opportunities for development and career growth for employees.
C) the goal of making profits for selected charitable organizations such as Fair Trade.
D) been recognized for its efforts to solve social and environmental problems.
E) been instrumental in expanding into international markets by creating dairies for developing
nations.
4) Which of the following statements regarding Ben & Jerry’s is most accurate?
A) Ben & Jerry’s is owned by Unilever, the market leader in the global ice cream industry.
B) Ben & Jerry’s is a privately owned ice cream producer.
C) Ben & Jerry’s prides itself on offering more ice cream flavors than its competitors.
D) Ben and Jerry are not real people; the names were a clever reference to Tom and Jerry cartoon
characters in order to capitalize on childhood nostalgia.
E) Ben & Jerry’s has only been in business for 20 years and is already the industry leader in
premium ice cream.
5) A(n) ________ is a legal entity that consists of people who share a common mission.
A) department
B) organization
C) SBU
D) industry
E) market
6) In marketing, an organization refers to
A) a legal entity that consists of people who share a common mission.
B) a group of people united through contractual or corporate ownership.
C) a legal entity engaged in business activities solely with the intent of making a profit.
D) a legal entity engaged in business activities solely with the intent of serving its employees
without the intent of making a profit.
E) a privately owned entity that serves its customers to earn a profit so that it can survive.
7) A(n) ________ is a good, service, or idea that creates value for both the organization and its
customers by satisfying their needs and wants.
A) organization
B) business firm
C) nonprofit
D) offering
E) industry
8) In marketing, an offering refers to
A) the formal designation of a publicly traded stock for a specific product, service, or idea.
B) a form of currency used by buyer and seller to minimize the tax burden for both parties.
C) a good, service, or idea that creates value for both the organization and its customers by
satisfying their needs and wants.
D) the manufacturer’s suggested retail price of a product or service to the general public or the
wholesale price to distributors and retailers.
E) the service suppliers and distributors provide to help manufacturers bring a product to market.
9) Today’s organizations can be divided into three groups, which are ________ organizations.
A) company, nonprofit, and cooperative
B) corporation, employee-owned, and interest
C) for-profit, nonprofit, and governmental
D) employee, distributor, and customer
E) public, private, and international
10) A(n) ________ is a privately owned organization that serves its customers to earn a profit so
that it can survive.
A) agency
B) for-profit organization
C) institution
D) nonprofit organization
E) cooperative
11) A for-profit organization refers to
A) a subsidiary, division, or unit of an organization that markets a set of related offerings to a
clearly defined group of customers.
B) a legal entity engaged in business activities solely with the intent of serving its employees
without the intent of making a profit.
C) a privately owned organization that serves its customers to earn a profit so that it can survive.
D) a group of people united through contractual or corporate ownership.
E) a publicly owned organization that serves the general population.
12) ________ the reward to a business firm for the risk it undertakes in marketing its offerings.
A) Shareholders’ equity is
B) Profit is
C) Assets are
D) Contribution margin is
E) Goodwill is
13) Profit refers to
A) the point at which a company’s assets equal its liabilities plus shareholder equity.
B) the difference between the list and final price of a product or service.
C) the money earned when the economic order quantity is minimized.
D) the money left over after a business firm’s total expenses are subtracted from its total
revenues.
E) the total amount of revenue accrued through product sales or service distribution.
14) A nonprofit organization is
A) a nongovernmental organization that serves its customers but does not have profit as an
organizational goal.
B) a legal entity engaged in business activities solely with the intent of serving its employees
without the intent of making a profit.
C) a publicly owned organization that serves the general population.
D) a group of people united through contractual or corporate ownership.
E) a privately owned organization that serves its customers to earn a profit so that it can survive.
15) A ________ is a nongovernmental organization that serves its customers but does not have
profit as an organizational goal.
A) business firm
B) subchapter S corporation
C) service agency
D) cooperative
E) nonprofit organization
16) A ________ is a federal, state, county, or city unit that provides a specific service to its
constituents.
A) business firm
B) subchapter S corporation
C) government agency
D) cooperative
E) nonprofit organization
17) Social entrepreneurs who start new ventures such as Teach for America and Swipe Out
Hunger are usually structured as ________ rather than business firms.
A) business agencies
B) nonprofit organizations
C) government agencies
D) cooperatives
E) social service agencies
18) Which statement best describes the most significant difference between a for-profit
organization or a business firm and a nonprofit organization?
A) Business firms earn a profit each year while nonprofits operate at a deficit annually.
B) Nonprofit organizations do not carry on economic activities while business firms do.
C) Nonprofit organizations are concerned with social issues and business firms are not.
D) Both serve customers, but business firms seek a profit while nonprofit organizations do not.
E) Nonprofit organizations are publicly owned and business firms are privately owned.
19) An example of a nonprofit organization is
A) the Food and Drug Administration.
B) CVS Pharmacies.
C) the medical technology company Medtronic, Inc.
D) the pharmaceutical company Pfizer, Inc.
E) the American Red Cross.
20) Cree markets LED (light-emitting diode) bulbs that replace the traditional incandescent bulb.
A Cree LED bulb consumes 85 percent less energy and lasts for 25,000 hours. Cree is an
example of
A) a cooperative.
B) an industry.
C) a nonprofit organization.
D) a business firm.
E) a government agency.
21) Swipe Out Hunger is an organization that encourages college students to donate unused meal
points to help feed community members in need. With chapters on 23 campuses, it has
distributed more than 1.2 million meals. Swipe Out Hunger is an example of
A) a cooperative.
B) an industry.
C) a nonprofit organization.
D) a business firm.
E) a government agency.
22) ________ starts new ventures that address important social needs and issues. These new
enterprises are often organized as nonprofit organizations.
A) Corporate welfare
B) A social entrepreneur
C) Sustainable development
D) Cause marketing
E) Societal capitalism
23) Social entrepreneurs’ ventures are usually structured as
A) business firms.
B) subchapter S corporations.
C) nonprofit organizations.
D) governmental agencies.
E) 501(c)(3) for-profit organizations.
24) Teach for America works to solve which societal problem?
A) It provides new college graduates as teachers in urban and rural public schools in the United
States.
B) It works to end corneal blindness worldwide by training doctors to do corneal surgeries,
finding cornea donors and creating tissue banks.
C) It provides education, training, and small business loans to women in impoverished areas so
that they can help themselves.
D) It offers free access to graduate education for injured U.S. veterans returning from overseas
conflict.
E) It offers tax credits to small businesses to employ at-risk youth in their communities.
25) Teach for America is an example of
A) an entrepreneurial business firm.
B) a subchapter S corporation.
C) a nonprofit organization.
D) a public value agency.
E) a 501(c)(3) for-profit organization.
26) According to the textbook, the terms firm, company, and organization
A) refer to for-profits, nonprofits, and government agencies, respectively.
B) refer to nonprofits, government agencies, and for-profits, respectively.
C) refer to government agencies, for-profits, and nonprofits, respectively.
D) refer to for-profits, government agencies, and nonprofits, respectively.
E) can be used interchangeably to cover both profit and nonprofit organizations.
27) Organizations that develop similar offerings, when grouped together, create
A) a conglomerate.
B) a merger.
C) an industry.
D) a sector.
E) a monopoly.
28) An industry refers to
A) organizations that develop similar offerings.
B) organizations that manufacture identical products to meet ISO 9000 specifications.
C) companies that are active in the production of materials used in finished products.
D) a group of people or firms united through strategic alliances.
E) the economic activity concerned with the selling of finished products to wholesalers and
retailers.
29) Which of the following is not an example of an industry?
A) the computer industry
B) the automobile industry
C) the landscaping industry
D) the government industry
E) the cable television industry
30) The term used to identify an organization’s long-term course of action designed to deliver a
unique customer experience while achieving its goals is referred to as a
A) marketing strategy.
B) policy.
C) strategy.
D) plan.
E) tactic.
31) Strategy refers to
A) an organization’s long-term course of action designed to deliver a unique customer experience
while achieving its goals.
B) an organization’s corporate tactical or action plan.
C) statement of an accomplishment of a task to be achieved by a certain time.
D) a statement of the organization’s function in society, often identifying its customers, markets,
product, and technologies.
E) a road map for the entire organization for a specified future period of time, such as one or five
years.
32) Which of the following statements about strategy is most accurate?
A) An organization can be all things to all people because it has access to all the resources it
needs to discover and satisfy the needs and wants of its target markets.
B) The marketing department helps to both set an organization’s direction and move it there.
C) The American Marketing Association (AMA) recently has established the definition of
strategy.
D) Strategy is an organization’s short-term course of action designed to deliver a specific
customer experience while achieving its internal standards.
E) Only start-up organizations must develop strategies to help them raise capital as well as focus
and direct their efforts to accomplish their goals.
33) Large organizations are extremely complex, and usually consist of ________ organizational
levels whose strategies are linked to marketing.
A) two
B) three
C) five
D) six
E) seven or more
34) In Figure 2-1 above, Box A represents the ________ that oversees the three levels of strategy
in an organization.
A) functional level
B) board of directors
C) corporate level
D) CEO
E) strategic business unit level
35) In Figure 2-1 above, B represents the ________, the highest of the three levels of strategy in
an organization.
A) functional level
B) board of directors
C) corporate level
D) CEO
E) strategic business unit level
36) In Figure 2-1 above, C represents the ________ of an organization.
A) strategic business unit level
B) board of directors
C) corporate level
D) functional level
E) CMO
37) In Figure 2-1 above, D represents the ________ of an organization that is comprised of
individual departments.
A) strategic business unit level
B) board of directors
C) corporate level
D) functional level
E) CMO
38) In Figure 2-1 above, E represents the ________ that make up the functional level of an
organization.
A) board of directors
B) executives level
C) hourly employees
D) production personnel
E) departments