Marketing Management, 14e (Kotler/Keller)
Chapter 3 Collecting Information and Forecasting Demand
1) As the manager of an organization that is attempting to build a Marketing Information System
(MIS), you have been informed that a MIS is built upon three fundamental information sources.
The sources are ________, marketing intelligence activities, and marketing research.
A) external records and documents
B) databases found on the Internet
C) consultant reports
D) internal company records
E) secondary data from government sources such as the Better Business Bureau
2) The company’s marketing information system should be a mix of what managers think they
need, what managers really need, and ________.
A) what the marketing research department is able to do
B) what consumers are willing to consume
C) what the government policies allow
D) what is acceptable at the industry level
E) what is economically feasible
3) The heart of the internal records system is the ________.
A) pay-roll system
B) purchase order cycle
C) order-to-payment cycle
D) expense cycle
E) human resources system
4) The ________ begins with sales representatives and dealers sending orders to the firms and is
followed by the sales department preparing invoices, and finally generating shipping and billing
documents which are then sent to various departments.
A) payroll system
B) market research process
C) human resources system
D) expense cycle
E) order-to-payment cycle
5) By equipping its sales force with handheld devices with bar-code readers and Internet
connections to speed inventory assessment, TaylorMade allows sales executives to have
significantly more time to interact with their consumers. This is an example of the use of
technology in improving ________.
A) sales information systems
B) payroll systems
C) cookies
D) cohort segmentation
E) competitive intelligence gathering
6) Companies can practice targeted marketing by using ________–records of Web site usage
stored on personal browsers.
A) plug-ins
B) black swans
C) cookies
D) trolls
E) honey-pots
7) The internal records system supplies results data, but the marketing intelligence system
supplies ________ data.
A) internal
B) revenue
C) thematic
D) happenings
E) process
8) A ________ is a set of procedures and sources managers use to obtain everyday information
about developments in the marketing environment.
A) data warehousing system
B) viral marketing campaign
C) product management system
D) marketing intelligence system
E) sales information system
9) A company can take several steps to improve the quality of its marketing intelligence. Which
of the following best describes the practice used by McDonald’s when it sent pseudo customers
to assess stores’ internal speed standards?
A) training and motivating the sales force to spot and report new developments
B) motivating intermediaries to pass along important intelligence
C) networking externally
D) purchasing information from outside research firms and vendors
E) using the sales information system to get accurate sales reports
10) A company can take several steps to improve the quality of its marketing intelligence. If the
company purchases competitive products for study, attends open houses and trade shows, and
reads competitors’ published reports and stockholder information, the company is using
________ to improve the quality of its marketing intelligence.
A) sales-force surrogates
B) intermediaries
C) external networks
D) advisory panels
E) customer feedback systems
11) When gathering marketing intelligence, companies often use the 2000 U.S. census, which
provides an in-depth look at the population swings, demographic groups, regional migrations,
and changing family structure of 281+ million people. Which of the following steps to improve
the quality of a company marketing intelligence system would be most closely associated with
this illustration?
A) A company can purchase information from outside suppliers.
B) A company can take advantage of government data sources.
C) A company can use online customer feedback systems to collect data.
D) A company can network externally.
E) A company can use its sales force to collect and report data.
12) When a company acquires consumer-panel data from firms like A.C. Nielsen Company and
Information Resources Inc., which of the following steps to improve the quality of a company
marketing intelligence system is the company resorting to?
A) training and motivating the sales force to spot and report new developments
B) motivating distributors, retailers, and other intermediaries to pass along important intelligence
C) hiring external experts to collect intelligence
D) using external network
E) purchasing information from outside research firms and vendors
13) Elance.com is a service provider that allows contractors to describe their level of satisfaction
with subcontractors. This is an example of a(n) ________.
A) independent customer goods and service review forum
B) public blog
C) customer complaint site
D) combo site offering customer reviews and expert opinions
E) distributor or sales agent feedback site
14) The sites which offer positive or negative product or service reviews and are built by the
retailers of a particular product or service are called ________.
A) combo sites
B) distributor or sales agent feedback sites
C) public blogs
D) independent service review forums
E) customer complaint sites
15) A ________ is “unpredictable, short-lived, and without social, economic, and political
significance.”
A) fad
B) fashion
C) trend
D) megatrend
E) style
16) A ________ is a direction or sequence of events that has some momentum and durability; it
reveals the shape of the future and can provide strategic direction.
A) fad
B) fashion
C) trend
D) megatrend
E) style
17) A ________ is a “large social, economic, political, and technological change that is slow to
form, and once in place, influences us for some time—between seven and ten years, or longer.”
A) fad
B) fashion
C) trend
D) megatrend
E) style
18) Which of the following is true about trends in worldwide population growth?
A) Birthrates are on the rise in developed countries.
B) Overall, the world population growth is declining.
C) Birthrates are on the rise in developing countries.
D) Death rates are rising in developing countries.
E) Population growth is highest in developing countries.
19) A growing population does not mean growing markets unless ________.
A) the people are under a democratic system of government
B) there is common ownership of all resources
C) people have sufficient purchasing power
D) there is adequate governmental intervention in the market
E) the government has a budget surplus
20) In the U.S., people born between the years ________ are called boomers.
A) 1978 and 2002
B) 1946 and 1964
C) 1925 and 1945
D) 1965 and 1985
E) 1920 and 1940
21) Firms find “reverse innovation” advantage by ________.
A) introducing a commodity in a developed country and then distributing it globally
B) introducing a commodity in a developing country and then distributing it in other developing
countries
C) introducing a commodity in a developing country and then distributing it globally
D) introducing a commodity in a developed country and then distributing it in developing
countries
E) introducing a commodity in a developed country and then distributing it in other developed
countries
22) ________ refer to groups of individuals who are born during the same time period and travel
through life together.
A) Cohorts
B) Populations
C) Clans
D) Societies
E) Ethnic groups
23) According to the 2000 Census, which of the following is the largest group in the United
States?
A) Whites
B) Hispanics
C) African Americans
D) Chinese Americans
E) Asian Indians
24) The three largest subgroups of the Hispanics in the U.S. are ________, ________, and
________.
A) Puerto Rican; Mexican; Chilean
B) Salvadoran; Cuban; Dominican
C) Mexican; Puerto Rican; Cuban
D) Brazilian; Mexican; Cuban
E) Salvadoran; Dominican; Columbian
25) Which of the following is true about the growth of the Hispanic population in the U.S.?
A) Hispanics made up 11 percent of all new workers in the past decade.
B) The disposable income of Hispanics has not grown as fast as that of the rest of the population.
C) Hispanics now outnumber African Americans in the U.S.
D) Family incomes of Hispanics have grown at a rate double that of the rest of the population.
E) Hispanics are the fastest growing consumer group in the U.S.
26) The traditional household consists of ________.
A) a husband, wife, and children (and sometimes grandparents)
B) a group of related persons living together
C) two or more families living together
D) a man and a woman living together (whether married or not)
E) related or unrelated persons who share living arrangements
27) By 2010, projections indicate that the largest category of households will be composed of
________.
A) childless married couples and empty nesters
B) single-parent families
C) single live-alones
D) singles living with nonrelatives
E) married couples with children
28) Which of the following is likely to occur during economic downturns?
A) People tend to spend more on luxury goods
B) Consumption of necessary goods decline
C) Long term credit is available at concessional rates of interest
D) The purchasing power of the people declines
E) The level of investment in the economy rises
29) Which of the following economies provide limited opportunities to international marketers to
develop product sales?
A) capitalist economies
B) subsistence economies
C) raw-materials-exporting economies
D) industrializing economies
E) industrialized economies
30) In response to the U.S. income distribution trend toward ________, Levi-Strauss introduced
premium Levi’s Capital E line to upscale retailers and the economy Levi Strauss Signature line to
mass-market retailers.
A) very low incomes
B) mostly low incomes
C) mostly high incomes
D) mostly medium incomes
E) low and high incomes
31) In the U.S., consumer expenditures on homes and big ticket items tend to slacken during
recessions because ________.
A) the consumers generally have a low debt-to-income ratio
B) of steady supply of loanable funds in the economy during recession
C) the consumers have a high debt-to-income ratio
D) consumer borrowing increases during recession
E) of stringent credit policies adopted by the Fed before the onset of recession
32) Which of the following elements of sociocultural environment can be associated with the
growing demand for “social surrogates” like social networking sites, television, etc?
A) views of ourselves
B) views of organizations
C) views of others
D) views of nature
E) views of the universe
33) Today, corporations need to make sure that they are good corporate citizens and that their
consumer messages are honest in order to positively align themselves with consumers’
________.
A) views of others
B) views of organizations
C) views of themselves
D) views of the universe
E) views of society
34) People vary in their views of society and their consumption patterns often reflect their social
attitudes. ________ usually live more frugally, drive smaller cars, and wear simpler clothing.
A) Makers
B) Escapers
C) Seekers
D) Changers
E) Developers
35) People vary in their views of society and their consumption patterns often reflect their social
attitudes. ________ usually eat, dress, and live well.
A) Makers
B) Escapers
C) Seekers
D) Changers
E) Developers
36) People vary in their views of society and their consumption patterns often reflect their social
attitudes. ________ are a major market for movies, music, surfing, and camping.
A) Makers
B) Preservers
C) Escapers
D) Changers
E) Developers
37) ________ beliefs and values are passed from parents to children and reinforced by social
institutions—schools, churches, businesses, and governments; they are very difficult to change.
A) Transient
B) Secondary
C) Protected
D) Core
E) Variable
38) Which of the following would be the best illustration of a secondary belief or value?
A) belief in work
B) belief in giving to charity
C) belief in getting married
D) belief in getting married early
E) belief in being honest
39) Each society contains ________, groups with shared values emerging from their special life
experiences or circumstances.
A) stakeholders
B) cliques
C) consumer bundles
D) subcultures
E) behavioral niches
40) Which of the following is the largest contributor to global warming, contributing almost a
quarter of the carbon dioxide in the environment?
A) transportation
B) industrial production facilities
C) electrical power plants
D) aerosol cans
E) rural cooking fires
41) Which of the following is the second largest contributor to global warming, accounting for
roughly a fifth of carbon emissions?
A) transportation
B) primary metal production facilities
C) electrical power plants
D) aerosol cans
E) rural cooking fires
42) Firms whose products require ________ resources—oil, coal, platinum, zinc, silver—face
substantial cost increases as depletion approaches.
A) infinite
B) near finite
C) finite renewable
D) finite nonrenewable
E) perishable
43) Prestige LLC, a small company that manufactures specialty cereals and energy bars, wants to
launch a “green marketing” program in response to heightened consumer awareness about
environmental issues. What should the company do to maximize the program’s chances of being
successful?
A) demonstrate that the products will benefit both customers and the society in the long-term
B) emphasize benefits to the consumer rather than environmental benefits
C) focus on the efforts and costs incurred by the company to bring these “green” products to
consumers
D) engage in “greenwashing” to highlight the environmental benefits of the product
E) explain the rules and regulations laid out by governmental agencies to protect the environment
44) When a company is said to have engaged in “greenwashing,” it means that ________.
A) the company has significantly changed its business processes to incorporate a greener, more
environmentally friendly philosophy
B) the company has moved its production facilities to countries where environmental laws and
regulations are less rigorous
C) the company has changed its “green” image in order to appeal to a different, usually older,
demographic
D) the company’s products are not nearly as green and environmentally beneficial as its
marketing might suggest
E) the company has undertaken a campaign to lobby for tougher environmental regulations for
the industry
45) Which of the following consumer environmental segments cares a great deal about the
environment, but doesn’t seem to have the knowledge or resources to take action?
A) not me greens
B) business first greens
C) mean greens
D) go-with-the-flow greens
E) dream greens
46) The consumer environmental segment termed ________ holds the view that the environment
is not a huge concern and that business and industry is doing its part to help. This may explain
why they don’t feel the need to take action themselves—even as they cite lots of barriers to doing
so. They are also the largest consumer environmental segment.
A) not me greens
B) business first greens
C) mean greens
D) go-with-the-flow greens
E) dream greens
47) The consumer environmental segment termed ________ claims to be knowledgeable about
environmental issues, but does not express pro-green attitudes or behaviors. Indeed, it is
practically hostile toward pro-environmental ideas. This segment has chosen to reject prevailing
notions about environmental protection and may even be viewed as a potential threat to green
initiatives.
A) not me greens
B) business first greens
C) mean greens
D) go-with-the-flow greens
E) dream greens
48) Which of the following is true about the technology trends that marketers should monitor?
A) A growing portion of U.S. R&D expenditures are going toward the research side as opposed
to the development side.
B) Today, the time between idea and implementation is expanding.
C) More single companies rather than consortiums are directing research efforts toward major
breakthroughs.
D) The pace of change is accelerating today.
E) The government has decreased regulation of technological change.
49) Mandatory recycling laws have boosted the recycling industry and launched dozens of new
companies making new products from recycled materials. Which of the following most closely
resembles the situation discussed above?
A) Government makes reforestation mandatory for lumbering firms leading to a rise in timber
production.
B) Government restricts industries from purchasing farmland thereby increasing agricultural
produce.
C) Government subsidizes export of beef to promote production of beef cattle.
D) Government pollution control norms increase the production of pollution control equipment.
E) Government restricts unfair trade practices to promote international trade.
50) An unintended effect of business legislation is ________.
A) restricting fair competition in the market
B) encouraging unbridled business behavior
C) reducing the social cost of producing a particular commodity
D) exposing consumers to unfair trade practices
E) slowing economic growth
51) An important force affecting business is the ________ movement, a movement of citizens
and government organized to strengthen the rights and powers of buyers in relation to sellers.
A) human rights
B) consumerist
C) environmental
D) self-determination
E) materialistic
52) Companies can prepare as many as ________ different types of demand estimates.
A) 6
B) 30
C) 60
D) 90
E) 150
53) The demand estimates of an organization comprise of five space levels. They are world,
country, region, territory, and ________.
A) zone
B) organization
C) customer
D) product
E) input
54) The ________ market is the set of consumers with an adequate interest, income, and access
to a particular offer.
A) potential
B) available
C) target
D) penetrated
E) reserve
55) The ________ market is the part of the qualified available market the company decides to
pursue.
A) potential
B) available
C) target
D) penetrated
E) reserve
56) The ________ market is the set of consumers who are buying the company’s product.
A) potential
B) available
C) target
D) penetrated
E) reserve
57) When the government of any country restricts the sale of a particular commodity to certain
groups—for example, restricting sales of alcohol to individuals above the age of 21—the eligible
consumers who have income, interest, access and qualification constitute the ________.
A) accessible market
B) target market
C) potential market
D) qualified potential market
E) qualified available market
58) Jeanine would like to own a Mercedes but is unable to afford one at this time. Jeanine is part
of the ________ for this product.
A) potential market
B) available market
C) target market
D) projected market
E) penetrated market
59) ________ for a product is the total volume that would be bought by a defined customer
group in a defined geographical area in a defined time period in a defined marketing
environment under a defined marketing program.
A) Company demand
B) Area market potential
C) Market demand
D) Company sales potential
E) Total market potential
60) With an increase in marketing expenditure, market demand ________.
A) continues to increase at an increasing rate
B) initially increases and then declines
C) increases first at an increasing rate, then at a decreasing rate
D) decreases first and then spikes
E) continues to increase at a decreasing rate.
61) The base sales of an organization that takes place even without any demand-stimulating
expenditures is called ________.
A) primary demand
B) market potential
C) market minimum
D) optimum demand
E) market demand
62) The distance between the market minimum and the market potential shows the overall
________.
A) marketing sensitivity of demand
B) market share of the firm
C) market forecast of the firm
D) product-penetration percentage
E) sales quota
63) A low market-penetration index indicates ________.
A) it will be expensive for the firms to attract the few remaining prospects
B) substantial growth potential for all firms
C) the rival firms try to capture greater market share by lowering their product price
D) the profit margins of the firms decline
E) the firms cannot raise demand substantially by raising its market expenditure
64) Only one level of industry marketing expenditure will actually occur. The market demand
corresponding to this level is called the ________.
A) market minimum
B) market share
C) market forecast
D) market potential
E) company demand
65) A company can expect to expand its market share to a large extent when ________.
A) it has a high market-penetration index
B) its share-penetration index is low
C) its share-penetration index is high
D) its product-penetration percentage is high
E) it has a low market potential
66) During recession, the market demand curve which is a function of marketing expenditure
________.
A) shifts upward
B) becomes vertical
C) remains unaffected
D) shifts downward
E) slopes downward