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Indicate whether the statement is true or false.
1. On average, marketing expenses account for half of the costs involved in a product.
a. True
b. False
2. Production orientation is a business philosophy that stresses on the importance of quantity of products rather than the
quality of products.
a. True
b. False
3. Form utility refers to conversion of raw materials and components into finished goods and services.
a. True
b. False
4. Marketing of a product begins after it hits the shelf.
a. True
b. False
5. It can be said that Glen Inc., a woolen products manufacturing company based in Switzerland, is a firm that uses a
market-driven strategy because it produces goods based on local customers’ experiences, needs, and preferences.
a. True
b. False
6. Virtually all colleges and universities have alumni associations that publish magazines, hold reunions, and try to raise
funds. These activities constitute organization marketing.
a. True
b. False
7. In the sales era, firms attempted to match their output to the potential number of customers who would want it.
a. True
b. False
8. Promotional events designed to attract visitors to a particular area or to improve the image of a city, state, or nation
would be examples of event marketing.
a. True
b. False
9. Buying an iPod generates ownership utility; however, buying a concert ticket does not.
a. True
b. False
10. In modern terminology, Apple’s excellent sales and customer service, sleek design, innovative engineering, and
reliability all add up to a world-class “product.“
a. True
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b. False
11. The relationship era builds on the marketing era’s customer orientation by only focusing on maintaining relationships
with customers.
a. True
b. False
12. Manufacturers engage in risk taking when they create goods and services based on research and their belief that
consumers need them.
a. True
b. False
13. The advent of a strong buyer’s market created the need for consumer orientation by businesses.
a. True
b. False
14. Mary Kay Cosmetic’s long-time policy of rewarding top sales representatives with a “Mary Kay pink” Cadillac is an
example of integrated marketing communications.
a. True
b. False
15. When Dolly Parton promotes her theme park called Dollywood, it is both place and person marketing.
a. True
b. False
16. According to relationship marketing, the lifetime value of a customer should exceed the investment made by the firm
to attract and keep the customer.
a. True
b. False
17. Marketing of sporting, cultural, and recreational activities to selected target markets is known as cause marketing.
a. True
b. False
18. The emergence of the marketing concept can be linked to the shift from a seller’s market to a buyer’s market.
a. True
b. False
19. Celebrities use person marketing as a way to increase their value in the marketplace.
a. True
b. False
20. Marketing is the indirect connection between a firm and its customers.
a. True
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b. False
21. An auto manufacturer creates ownership utility for its consumers by combining metal, rubber, plastic, and petroleum
products.
a. True
b. False
22. Intermediaries that may be involved in a product’s movement from producer to final consumer are known as
wholesalers.
a. True
b. False
23. Owen buys a car for himself. Owen has created ownership utility.
a. True
b. False
24. Mobile marketing is a term used to describe marketing messages sent via wireless technology.
a. True
b. False
25. The marketing concept focuses on the objective of achieving short-term profits instead of long-run success during
tough economic times.
a. True
b. False
26. Branches of the U.S. military sometimes show recruitment advertisements in cinemas featuring movies that are most
likely to attract viewers of military age. This is an example of place marketing.
a. True
b. False
27. When bad weather damages crops such as wheat and corn, food manufacturers such as Kraft often have to pass the
additional cost of scarce supplies along to their customers in the form of higher prices.
a. True
b. False
28. A firm with a fully developed marketing concept is one with a company-wide consumer orientation with the objective
of achieving long-term success.
a. True
b. False
29. The marketing era is defined by a shift in focus from products and sales to satisfying a consumer’s needs.
a. True
b. False
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30. Relationship marketing moves customers up a loyalty ladder—from new customers to regular purchasers, then to loyal
supporters of the firm and its goods and services, and finally to advocates who not only buy its products but recommend
them to others.
a. True
b. False
31. Within a business environment, the marketing function is responsible for the creation of time, place, and ownership
utility, whereas the production function creates form utility.
a. True
b. False
32. In the history of marketing, the fourth era, known as the social era, has given way to the fifth era, called the
relationship era.
a. True
b. False
33. The marketing era is the successive historical outcome of the production era.
a. True
b. False
34. Relationship building in marketing starts with excellent customer service after purchase.
a. True
b. False
35. Used car lots, which rely heavily on flashy newspaper ads and loud commercials for their revenues, are still a great
example of the third era of marketing history.
a. True
b. False
36. Compared to transaction marketing, relationship marketing relies more heavily on information technologies.
a. True
b. False
37. The traditional view of marketing can be described as transaction-based marketing.
a. True
b. False
38. The cost of finding new customers is far less than the cost of maintaining existing ones.
a. True
b. False
39. A seller’s market is one in which there are more goods and services than people willing to buy them.
a. True
b. False
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40. A theater group promoting a performance to raise funds in the fight against cancer is an example of both cause
marketing and event marketing.
a. True
b. False
41. Production and marketing of goods and services are two basic functions that create utility.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
42. Creating _____ utility is the responsibility of the production function.
a. place
b. form
c. time
d. ownership
43. Kraft Foods has been very happy with the sales of its new olive oil-based mayonnaise, which is why it has decided to
start packaging it in branded single-serving packets for sale to restaurants, fast food chains, food trucks, and other eating
establishments. This tactic is part of the company’s:
a. product strategy.
b. pricing strategy.
c. distribution strategy.
d. promotion strategy.
44. Mobile marketing refers to:
a. running promotional campaigns on transport media such as trains and airplanes.
b. marketing messages transmitted via wireless technology.
c. promoting associated products or services alongside mobile technologies.
d. the use of online social media as a communications channel for marketing messages.
45. Which of the following factors contributed to the transition from the production era to the sales era?
a. Increased consumer demand
b. Sophisticated production techniques
c. Increase in urbanization
d. The Great Depression
46. Which of the following is true of relationship marketing?
a. It focuses on finding new customers.
b. It prefers not to maintain existing customers due to high costs.
c. It does not believe in generating repeat sales.
d. It believes in maintaining existing customers.
47. Many hotel chains offer free stays and other perks to repeat customers. This is an example of:
a. relationship marketing.
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b. transaction-based marketing.
c. interactive marketing.
d. social marketing.
48. Sally Myers, head of marketing at Sally’s Salon, serviced six new customers over the past two weeks. Through a
feedback form, Sally learned that all of them had acted upon the opinions of their friends and family members. What Sally
encountered is an example of:
a. transaction-based marketing.
b. sales orientation.
c. marketing myopia.
d. buzz marketing.
49. In the practice of relationship marketing, the definition of a customer is taken to another level. Which of the following
best illustrates how a company practicing relationship marketing is different from a traditional transaction-based
marketer?
a. The city pool allows kids 12 years and younger to swim for free on Fridays.
b. A local coffee shop distributes coupons for $.50 off each cup of coffee.
c. The purchasing department of a defense contractor invites its suppliers to attend an annual golf outing.
d. The heads of the financial departments meet with the Chief Financial Officer to discuss year-end financial
reporting.
50. Availability of goods and services at convenient locations creates:
a. form utility.
b. time utility.
c. place utility.
d. ownership utility.
51. Which of the following is an example of person marketing?
a. A firm creating awareness of the importance of using public transport.
b. A country promoting its sightseeing spots and cuisines.
c. A mall being inaugurated by a popular commercial actor.
d. A firm promoting an inter-state soccer match.
52. You are about to open a dog grooming business. Which of the following activities best represents your efforts to
secure market information?
a. Contacting leasing agents about potential locations for your business
b. Contacting all of the vets in the area to establish an estimated number of dogs in your town
c. Asking your closest friends for feedback on your logo design
d. Estimating your costs accurately so you can determine a fair pricing structure
53. During the most recent Thanksgiving holiday weekend in the United States, gasoline retailers increased the price of
gas an average of five cents a gallon. Which statement is most likely to be true about gasoline retailers’ pricing strategy?
a. Gasoline retailers must be greedy.
b. There was fierce competition among gasoline retailers.
c. The economy was strong, so gasoline retailers felt comfortable capitalizing on consumers’ willingness to pay
more for goods.
d. The economy was weak, and gasoline retailers needed to make up for shortfalls earlier in the year.
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54. Assume you want to increase the number of customers by applying the marketing concept. Which of the following
strategies would be most consistent with this approach?
a. Reduce product costs
b. Offer more product variety than competitors
c. Target markets
d. Employ inexpensive labor
55. What is the ultimate objective of relationship marketing?
a. Find new customers
b. Create regular purchasers
c. Turn customers into advocates
d. Turn customers into loyal supporters
56. Melissa is campaigning for Janet, her friend, who is contesting for the presidency of the student council at Riverdale
Junior College. Melissa’s effort is an example of _____ marketing.
a. cause
b. person
c. place
d. organization
57. The Mistletoe Christmas Tree Farm has been in your family for generations, and you’ve been running it for more than
20 years. Today you are _______, which is a good example of the universal function of buying.
a. studying sales records from the last five years to determine whether you need to import more trees from other
farms
b. placing ads in the local newspaper throughout November and December
c. hiring a designer to create a new website promoting Mistletoe Farm
d. planning family-friendly activities such as caroling, ornament making, and cookie decorating
58. In the context of marketing, which of the following is the best example of risk taking?
a. A restaurant owner creates a dish using fish purchased the day before.
b. An entrepreneur offers to sell products on credit to attract new customers.
c. A clothing retailer opens a store in a rundown neighborhood.
d. An inventor creates a new safety device for older adults living alone.
59. Which one of the following statements about marketing is false?
a. Mobile marketing refers to marketing messages transmitted via wireless technology.
b. Effective relationship marketing relies heavily on data and computer databases.
c. The lifetime value of a customer consists of the revenues and intangible benefits derived from the firm’s
relationship with the customer.
d. Buzz marketing involves using airplanes to “buzz” outdoor events with flying banners.
e. Interactive marketing gives more control to the customer.
60. A company with a _____ orientation assumes that customers will resist purchasing nonessential goods and services
and that the task of personal selling and advertising is to persuade them to buy.
a. production
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b. marketing
c. sales
d. relationship
61. DHL has developed a reputation as an international business specialist enabling companies that produce or distribute
products to economically ship finished goods to customers. Which function of marketing does DHL provide to
companies?
a. Transporting
b. Selling
c. Risk taking
d. Storing
62. The Today Show partnered with the U.S. National Parks in 2016 to celebrate 100 years of national parks. Various
Today Show regulars such as Al Roker were featured visiting the parks. This campaign is an example of _____
marketing, a type of nontraditional marketing.
a. place
b. person
c. event
d. cause
63. The variables in the marketing mix include:
a. product, price, distribution, and promotion.
b. product, price, and promotion.
c. promotion, distribution, and price.
d. price, promotion, place, and people.
64. Some Florida drivers have license plates that say “Save the Manatee.” This is an example of _____ marketing.
a. organization
b. cause
c. place
d. event
65. The emergence of the marketing concept can best be explained by:
a. higher production levels.
b. greater sophistication in the production of goods.
c. the shift from a seller’s market to a buyer’s market.
d. a focus on product quality.
66. Banks have recently begun to install ATMs in supermarkets to address customers’ wants for instant cash when they go
shopping. What type of utility are banks creating for customers?
a. Form
b. Possession
c. Place
d. Ownership
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67. According to the text, once a company’s customers have become “loyal supporters,” the company should seek to
further the relationship with those customers so that they become _______.
a. advocates
b. referral generators
c. clients
d. repeat purchasers
68. The process for creating, communicating, and delivering value to the customer is called _____.
a. marketing
b. financing
c. operations
d. administration
69. The _____ is a companywide consumer orientation with the objective of achieving long-run success.
a. marketing myopia
b. exchange process
c. marketing concept
d. seller’s market
70. Of the following actions, which one is most likely to be part of the new promotion strategy at Panera Bread?
a. To change the menu seasonally to reflect the use of fresh, local ingredients
b. To offer a cookie or pastry for $1 with the purchase of any meal combo
c. To offer a free $10 gift card with the purchase of at least $50 in gift cards throughout December
d. To set up Panera branded kiosks in grocery stores
71. You’ve certainly got your customers’ paper needs covered! Not only do you sell copier paper for businesses of all
sizes, you will retrieve paper files for either storage or destruction (shredding). Of the following activities, which would
you say best represents the function of storing in your business?
a. Holding at least four tons of unsold copier paper in your warehouse
b. Holding at least six tons of your customers’ paper files in your warehouse
c. Delivering an average of 100 pounds of paper to your customers daily
d. Shredding an average of 300 pounds of paper weekly
72. To increase revenues, Gorilla Glue is planning to launch a new distribution strategy by:
a. positioning Gorilla Glue as a premium product priced 5% higher than similar products.
b. starting to produce packing tape made with Gorilla Glue adhesive.
c. creating a special package, available for a limited time, that bundles a glue stick with a 6-oz bottle of Gorilla
Glue.
d. targeting crafters through availability at Michael’s and Hobby Lobby stores.
73. Your marketing instructor has asked you to put together a very detailed description of Starbuck’s target market. Which
of the following category of information would you NOT include?
a. Food and drink preferences
b. Social values
c. Financial status
d. Racial background
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74. The basic objective of place marketing is to:
a. attract visitors or new businesses to a particular area.
b. influence others to accept the goals of the sponsoring organization.
c. convince people to attend a sporting or cultural event.
d. bring to the attention of the public some charitable issue.
75. When a company pays a market research firm to conduct a marketing research project, it is engaging in which one of
the Eight Universal Marketing Functions?
a. Buying
b. Selling
c. Securing information
d. Risk-taking
76. Which of the following actions is part of the new product strategy at Martin’s Knitted Hosiery?
a. To start selling their socks and knitwear through drugstores as well as department stores
b. To justify raising the price of their socks by promoting their durability
c. To start manufacturing knitted hats, scarves, and mittens
d. To hold a buy-two-get-one-pair-free special during the month of August
77. The ability to transfer title to goods or services from marketer to buyer is described as:
a. ownership utility.
b. form utility.
c. time utility.
d. place utility.
78. Billboards for the city’s national football league team are positioned within 5 miles of the stadium. This is an example
of _____.
a. form utility creation
b. place marketing
c. organization utility
d. sports marketing
79. Knowing that gift certificates are a big contributor to winter revenues, Nonny’s Nail Salon is offering a holiday special
of $15 off the purchase of every mani/pedi gift certificate. It’s a key component of the business’s _______ every year.
a. product strategy
b. pricing strategy
c. distribution strategy
d. promotion strategy
80. Phoebe was asked to bring a can of food for the local food bank as the “price of admission” for a certain ceremony.
This is an example of _____.
a. person marketing
b. organization marketing
c. ownership utility
d. cause marketing
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81. A market in which there are more buyers for fewer goods and services is known as a:
a. seller’s market.
b. monopoly.
c. buyer’s market.
d. oligopoly.
82. The application of relationship marketing requires attention to levels of customer loyalty. Which of the following is
the highest level as defined by this type of marketing?
a. Loyal supporter of the company and its goods and services.
b. Advocate who not only buys the products but recommends them to others.
c. Regular purchaser of the company’s products.
d. Stockholder who literally buys into the organization and its mission.
83. Red Robin Gourmet Burgers and Brews offers a tower of onion rings, a foot-high, vertical stack of about a dozen
crispy onion rings served on a custom-made stand. This is an example of the company’s:
a. package design.
b. customer service.
c. brand name.
d. trademark.
84. There’s a new pricing strategy at Big Apple Bagel Bakery, which means they’re going:
a. to offer one free bagel with the purchase of six and three free bagels with the purchase of a dozen.
b. to start selling cream cheese and lox in their stores.
c. to issue a coupon on all social media platforms for a free tub of cream cheese with the purchase of three or more
bagels.
d. to package bagels by the half-dozen to sell in local supermarkets.
85. A company produces a high-quality product, with a maximum monthly output of 10,000 units. Production levels are
constant, and the company relies on its marketing department to find customers for its output. This approach is consistent
with which era in marketing history?
a. Production era
b. Relationship era
c. Marketing era
d. Sales era
86. At the local farmer’s market, you sell one-pound bags of organically grown and naturally dried beans. In your
business, standardizing and grading is a common function, as exemplified by which of the following?
a. Redesigning your packaging so your bags, labels, business cards, and website have the same look and feel
b. Narrowing your product offering to six different kinds of beans
c. Adding labels that explain the criteria for being an “organic” farmer
d. Removing as many bad beans as possible before bagging
87. Forever 21 is a popular fashion clothing company for women and often attracts customers to its website or retail stores
by posting pictures to its Facebook and Instagram accounts. Forever 21 has over 10 million followers on Instagram and
over 13 million on Facebook. What marketing era best describes Forever 21 and its approach to marketing activities?
a. Social
b. Marketing
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c. Sales
d. Production
88. Indigo Ltd. wanted to increase its customers by applying the marketing concept. Which of the following would be an
appropriate way to apply this approach?
a. Maximize production of goods
b. Focus on meeting the needs of the consumers
c. Offer more product variety than competitors
d. Produce high-quality goods
89. Nations Bank has engaged in extensive marketing research to learn more about its customers – especially those in the
18 to 30 age group. The research identified that these consumers do not enjoy visiting a bank branch location and prefer
to manage their banking via their smart phone, tablet, or computer. The bank has invested in sophisticated applications
that enable consumers to deposit checks, check their balances, pay bills, and transfer funds. Nations Bank believes this
investment in research to understand consumer needs enables them to develop the right array of services that will lead to
improved market success and overall performance. This is an example of a(n):
a. marketing concept
b. consumer listening
c. marketing advocation
d. sales orientation
90. Austin, Texas is host to a popular festival, South by Southwest (SXSW), which recently celebrated its 30th
anniversary. It has released dates for the new year and invites participants for the unique music, film, and interactive
events or sessions from March 10th through 19th. Which category of nontraditional marketing would best characterize
the marketing activities to attract attendees for the multi-day festival?
a. Event
b. Cause
c. Organization
d. Place
91. State bureaus of tourism and conventions typically engage in _____ marketing.
a. organization
b. person
c. place
d. cause
92. Edward Don & Company maintains over 12,000 food service and supply items for the hospitality industry as well as
any organization that provides food service such as hospitals, schools, or prisons. Customers enjoy the opportunity to
streamline their transactions by purchasing a large number of items from a single company. Customers may place orders
online or order from their Edward Don sales representative. Edward Don purchases their items directly from the
manufacturer and provides them to the business customer. What business function does Edward Don & Company
provide?
a. Wholesaling
b. Financing
c. Risk taking
d. Storing
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93. The business philosophy incorporating the marketing concept where the focus is on satisfying the needs and wants of
consumers rather than simply producing and selling products is known as:
a. customer persuasion.
b. consumer orientation.
c. aggressive marketing.
d. sales orientation.
94. To encourage more purchases of their products with their _______, Curlie Girl’s curl-enhancing shampoos and
conditioners are sold in two formats: as individual bottles or as shampoo/conditioner sets priced 10% lower than two
individual bottles.
a. product strategy
b. pricing strategy
c. distribution strategy
d. promotion strategy
95. Fred Foods Inc. provides free cereals and biscuits to support a program that aims to end hunger in various emerging
nations. This is an example of _____ marketing.
a. organization
b. person
c. cause
d. place
96. The makers of Advil have designed machines that automatically move plastic bottles along conveyor belts until each
bottle is filled with a precise number of tablets or gelcaps. This is an example of which of the Eight Universal Marketing
Functions?
a. Transporting
b. Standardizing and grading
c. Securing information
d. Selling
97. Netflix has become a popular media streaming company and provides consumers with the opportunity to view
programming at their leisure whenever it’s convenient for them. In addition, consumers can stream programming on smart
TVs, tablets, computers, or smartphones. What type of utility is Netflix offering?
a. Time
b. Convenience
c. Form
d. Ownership
98. At the health food product manufacturer where you work, your boss, the Chief Marketing Officer, has just asked you
to develop a strategic plan for introducing a new high-energy protein bar. You’ve just come up with a great idea: to give
away free samples on college campuses, which are loaded with busy people on the go who need more energy. If they like
the product, it’s guaranteed that this market segment will talk about your product on social media, thus creating a buzz. In
which section of your strategic plan does your idea belong?
a. Product strategy
b. Pricing strategy
c. Promotion strategy
d. Distribution strategy
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99. Many Audis come equipped with high-end Bose sound systems built in at the factory. In this context, Audi is part of
Bose’s:
a. promotions.
b. product line.
c. pricing strategy.
d. distribution channel.
100. You are a style-conscious shopper, even though you live on a tight budget. That’s why you buy most of your clothes
at Target. However, for the past several months, you’ve been hearing that the economy is slowing and is predicted to
continue to do so in the months ahead. In looking at your options for future clothes purchases, you will most likely:
a. stay true to Target’s good value.
b. look for stores offering cheaper alternatives, such as Ross Dress for Less and Wal-Mart.
c. start shopping at higher-end stores for better quality clothing that will last longer.
d. vow to not buy any new clothes for the next three years.
101. As an official sponsor of the Olympics, The Coca-Cola Company engages in _____ marketing.
a. place
b. event
c. person
d. organization
102. In the context of marketing, which of the following is the best example of selling?
a. An app designer making her services available to clients
b. A food truck owner acquiring hamburger and lunch meat for his sandwiches
c. A custom furniture maker purchasing an old oak tree to make a dining table
d. A bakery owner hiring a marketing firm to promote her new cupcakes
103. You and your partners are investing millions in creating a small chain of five-star boutique hotels in six of the finest
cities in the world. Which of the following tactics fits best with your premium pricing strategy?
a. Set room prices comparable to other high-end, boutique hotel chains
b. Bundle spa services in with the room rates
c. Advertise in magazines catering to wealthy, travel-minded consumers
d. Design branding that reflects the elegant, luxurious sensibility of the chain
104. The Parker & Frank brand is synonymous with the fine quality and exceptional styling of its leather handbags, shoes,
luggage, belts, and other accessories. Earlier this year the company introduced a new direction in the company’s
________: a branded line of furniture manufactured by one of the top furniture makers in the country.
a. product strategy
b. pricing strategy
c. distribution strategy
d. promotion strategy
105. You are the marketing director for Ladybug, a boutique girl’s clothing manufacturer, and you love brainstorming
growth ideas with the rest of the executive team. As a group, you’ve been focused on product strategy lately, specifically
expanding your product line. Which of the following ideas do you think will work best for achieving your goals?
a. Enhance your e-commerce site with personalized product recommendations