Marketing ethics:
a. refers to laws and regulations that govern marketing.
b. refers to principles and standards that define acceptable conduct in marketing.
c. maximizes an organization’s positive impact and minimizes its negative impact on
society.
d. is most important for advertising agencies.
e. refers to morals governing the management of a company.
Distribution, price, promotion, and product are all elements of:
a. marketing strategy.
b. the marketing mix.
c. a target market.
d. a consumer good.
e. a business strategy.
Unethical behavior in the research process is not a major problem in the reporting of
research findings.
a. True
b. False
Measuring the effect of advertising on sales is difficult.
a. True
b. False
Rent is usually a fixed cost.
a. True
b. False
What assumption does break-even analysis make that limits its overall usefulness?
a. It focuses on how to achieve a price objective.
b. It assumes a company wants to gain a certain market share.
c. It relies on demand for a product being inelastic.
d. It focuses only on competitive factors and not costs.
e. It assumes that demand is elastic for the product.
Reinforcement advertising is primarily targeted at:
a. new potential target markets.
b. users of competitors’ brands and products.
c. anyone who uses that type of product.
d. all the stakeholders of an organization.
e. the current users of a particular product.
When a firm’s management is making the final selection of specific target markets to
enter, it should consider whether the organization has the financial resources,
managerial skills, expertise, and facilities needed to effectively compete in the selected
segments.
a. True
b. False
Laggards are the last to adopt a new product and usually distrust new products.
a. True
b. False
Consumers’ buying decisions are not affected by other people.
a. True
b. False
Scenario 5.2
Use the following to answer the questions.
GE Transportation Corp produces locomotive engines for sale in countries around the
world. After looking at the total market for locomotive engines, the company found that
various rail lines wanted different types of engines. Major rail lines in the U.S. and
South America wanted engines to haul heavy freight. Rail lines in Sweden and
Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by
several Eastern European countries wanted locomotive engines for running short
distances between cities in their own country. GE Transportation is currently
manufacturing its GE 4400 for heavy freight, its Hybrid Eco-Engine, and its Dash 9,
suited for shortline transport.
Currently, GE uses several sales forecasting methods. One method is to sell the
different locomotive engines to buyers in different countries, and then measuring the
purchasing response in each. In this case, GE Transportation is using the method to
forecast future sales.
a. Delphi
b. market test
c. regression analysis
d. volume usage
e. trend analysis
When products are introduced into one nation from another, acceptance is far more
likely:
a. if prices are set very low.
b. when bribes are paid to local officials to aid distribution.
c. if there are many differences between the two cultures.
d. if the country of origin has a positive image in consumers’ minds.
e. when retailers are given incentives to push the products.
_______are people who gather information and organize content generated by critics
and creators.
a. Collectors
b. Spectators
c. Joiners
d. Creators
e. Critics
After an organization has determined which of the many segmentation variables it will
use, the next Step in the target market selection process is:
a. evaluating each of the relevant market segments.
b. selecting the specific target markets.
c. reviewing the appropriate marketing strategy.
d. analyzing the interaction between segmentation variables.
e. developing market segment profiles.
Brittany recently moved to a new city. She is looking for a mechanic to conduct a
maintenance check and repair on her car. She visits several car dealers to assess their
physical facility and also the cleanliness and grooming of the__________mechanics.
After evaluation, she finally chooses a mechanic. Brittany is trying to overcome the
services.
a. heterogeneity
b. perishability
c. customer contact
d. intangibility
e. inseparability
The marketing concept is a philosophy that states that an organization should try to
satisfy customers’ needs and also:
a. increase market share.
b. increase sales.
c. achieve the organization’s goals.
d. produce high-quality products.
e. coordinate its activities to increase production.