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A Framework for Marketing Management, 5e (Kotler)
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 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
3) 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
4) 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
5) 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
6) The internal records system supplies results data, but the marketing intelligence system
supplies ________ data.
A) internal
B) revenue
C) thematic
D) happenings
E) process
7) 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
8) 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
9) 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.
10) 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
11) A ________ is "unpredictable, short-lived, and without social, economic, and political
significance."
A) fad
B) fashion
C) trend
D) megatrend
E) style
12) 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
13) 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.
14) 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
15) 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
16) ________ 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
17) 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
18) 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
19) 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
20) 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
21) 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
22) 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
23) 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
24) ________ 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
25) 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
26) 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
27) 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
28) 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
29) 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.
30) 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 equipments.
E) Government restricts unfair trade practices to promote international trade.
31) 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
32) 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
33) 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
34) 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
35) The ________ market is the set of consumers who are buying the company's product.
A) potential
B) available
C) target
D) penetrated
E) reserve
36) 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
37) 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
