Results Reporter

Out of 10 questions, you answered 2 correctly with a final grade of 20%

2 correct
(20%)
8
incorrect
(80%)
0
unanswe
red (0%)

Your Results:

The correct answer for each question is indicated by a .

1
INCOR Which of the following activities is not part of the marketing process?
RECT

Analyzing the needs of potential customers

A)

Making goods or performing services

B)

Deciding how to advertise the product

C)

Identifying competitors that also produce the same product

D)

Estimating the prices potential customers are willing to pay for the product
E)

Feedback:
AACSB: Analytic
Level of Difficulty: 2 Medium
Learning Objective: 01-01
Blooms: Understand
Topic: MarketingWhat's It All About?
Making goods or performing services is not part of the marketing process.
These activities are part of the production process. Marketing provides
 needed direction for production and helps make sure that the right goods
and services are produced and find their way to consumers.

2
CORRE Which of the following is true of marketing?
CT

Marketing offers many exciting and rewarding career opportunities.

A)

Marketing deters innovationthe development and spread of new ideas, goods, and
B)services.

Marketing has a very small impact on the lives of consumers and their standard of
C)living.

Marketing fosters competition for consumers' money and this competition drives up
D)prices.

Marketing does not play a part in economic growth and development.

E)

Feedback:
AACSB: Analytic
Level of Difficulty: 2 Medium
Learning Objective: 01-01
Blooms: Understand
Topic: Marketing Is Important to You
A basic reason for studying marketing is that it offers many exciting and
rewarding career opportunities. Another reason for studying marketing is
that marketing plays a big part in economic growth and development. As
firms offer new and better ways of satisfying consumer needs, customers
have more choices among products and this fosters competition for
consumers' money. This competition drives down prices.

3
INCOR Which of the following statements is true of macro-marketing?
RECT

The emphasis with macro-marketing is on the activities of individual organizations.

A)

The emphasis with macro-marketing is on how the whole marketing system works.
B)
 A macro-marketing system does not take customers' needs into consideration when
C)delivering goods.

Macro-marketing works best and is most effective in an advanced economy.

D)

Macro-marketing applies only to nonprofit organizations and is not a social process.

E)

Feedback:
AACSB: Analytic
Level of Difficulty: 2 Medium
Learning Objective: 01-02
Blooms: Understand
Topic: Macro-Marketing
Macro-marketing is a social process that directs an economy's flow of goods
and services from producers to consumers in a way that effectively matches
supply and demand and accomplishes the objectives of society. The
emphasis with macro-marketing is not on the activities of individual
organizations. Instead, the emphasis is on how the whole marketing system
works. This includes looking at how marketing affects society and vice versa.

4
INCOR Among the universal functions of marketing, the _____ function is probably the most
RECT visible function of marketing.

buying
A)

transporting
B)

storing
C)

selling
D)

grading
E)

Feedback:
AACSB: Analytic
Level of Difficulty: 1 Easy
 Learning Objective: 01-03
Blooms: Remember
Topic: Macro-Marketing
The selling functioninvolves promoting the product. It includes the use of
personal selling, advertising, customer service, and other direct and mass
selling methods. This is probably the most visible function of marketing.

5
INCOR In the context of the universal functions of marketing, the storing function involves:
RECT

looking for and evaluating goods and services.

A)

moving goods from one place to another.

B)

holding goods until customers need them.

C)

sorting products according to their size and quality.

D)

promoting the product.

E)

Feedback:
AACSB: Analytic
Level of Difficulty: 2 Medium
Learning Objective: 01-03
Blooms: Understand
Topic: Macro-Marketing
The universal functions of marketing are buying, selling, transporting,
storing, standardization and grading, financing, risk taking, and market
information. The storing function involves holding goods until customers
need them.

6
INCOR In a command economy, _____.
RECT

producers have absolute freedom in deciding what goods and services to produce
A)

prices are set by the firm and are flexiblechanging according to supply and demand

B)
 government planning works best when the economy is complex and the variety of
C)goods is large

government officials decide what and how much is to be produced and distributed by
D)whom, when, to whom, and why

most of the attention is centered on activities such as market research, branding, and
E)advertising

Feedback:
AACSB: Analytic
Level of Difficulty: 3 Hard
Learning Objective: 01-04
Blooms: Understand
Topic: The Role of Marketing in Economic Systems
In a command economy, government officials decide what and how much is
to be produced and distributed by whom, when, to whom, and why.
Producers in a command economy generally have little choice about what
goods and services to produce. Their main task is to meet the production
quotas assigned in the plan. Prices are also set by government planners and
tend to be very rigidnot changing according to supply and demand.

7
INCOR Which of the following is the best example of management thinking during the
RECT "production era"?

"We need to make whatever products are easy to produce."

A)

"We need to find out what the customer wants."

B)

"The more salespeople we have, the more we can sell."

C)

"We need to work hard to sell the product to our customers."

D)

"If we produce a good product, customers will find us and buy it."
E)

Feedback:
AACSB: Reflective Thinking
 Level of Difficulty: 2 Medium
Learning Objective: 01-04
Blooms: Apply
Topic: Marketing's Role Has Changed a Lot over the Years
"If we can make it, it will sell" is management thinking characteristic of the
production era. Because of product shortages, many nationsincluding some
of the post-communist republics of Eastern Europe continue to operate
with production era approaches.

8
INCOR A firm with a marketing orientation is most likely to:
RECT

view advertising as an unnecessary expense.

A)

make whatever products are easy to produce.

B)

advertise how a product meets customers' needs.

C)

focus all its efforts in trying to get customers to buy whatever the firm has produced.
D)

believe that customers exist to buy the firm's output rather than the firm existing to
E)serve customers.

Feedback:
AACSB: Analytic
Level of Difficulty: 1 Easy
Learning Objective: 01-05
Blooms: Understand
Topic: What Does the Marketing Concept Mean?
A marketing-oriented firm tries to offer customers what they need instead of
just trying to get customers to buy what the firm has produced. Three basic
ideas are included in the definition of the marketing concept: (1) customer
satisfaction, (2) a total company effort, and (3) profitnot just salesas an
objective.

9
CORRE Which of the following is a difference between nonprofit organizations and other business
CT firms?

Nonprofit organizations do not measure "profit" in the same way as other firms do.
A)
 Nonprofit organizations, unlike other business firms, do not face competition for the
B)resources and support they need.

Nonprofit organizations, unlike other business firms, do not have to take in as much
C)money as they spend in order to survive.

Nonprofit organizations give less regard to the importance of the marketing concept
D)than other business firms.

Feedback:
AACSB: Analytic
Level of Difficulty: 2 Medium
Learning Objective: 01-06
Blooms: Understand
Topic: The Marketing Concept Applies in Nonprofit Organizations
As with a business, a nonprofit must take in as much money as it spends or it
won't survive. However, a nonprofit organization does not measure "profit"
in the same way as a firm. Moreover, its key measures of long-term success
are different.

10
INCOR The term "micro-macro dilemma" means that:
RECT

most people are both producers and consumers.

A)

marketers cannot agree on whether marketing should be viewed as activities or as a

B)social process.

macro-marketing is just a small part of a larger micro-marketing system.

C)

the micro view of marketing is concerned with the flow of goods and services from
D)producers to consumerswhile the macro view is not.

what is "good" for some producers and consumers may not be good for society as a
E)whole.

Feedback:
AACSB: Ethics
Level of Difficulty: 1 Easy
Learning Objective: 01-07
Blooms: Understand
 Topic: The Marketing Concept, Social Responsibility, and Marketing Ethics
Producers and consumers making free choices can cause conflicts and
difficulties. This is called the micro-macro dilemma. What is "good" for some
firms and consumers may not be good for society as a whole.

Results Reporter
Out of 10 questions, you answered 1 correctly with a final grade of 10%

1
correct
(10%)
9
incorre
ct
(90%)
0
unansw
ered
(0%)

Your Results:

The correct answer for each question is indicated by a .

1
INCORR The first step in the marketing management process is_____.
ECT

controlling
A)

planning
B)

directing
C)

coordinating
D)

implementing
E)

Feedback:
AACSB: Analytic
 Level of Difficulty: 1 Easy
Learning Objective: 02-01
Blooms: Remember
Topic: The Management Job in Marketing
The first step in the marketing management process is planning. The
marketing management process is the process of (1) planning marketing
activities, (2) directing the implementation of the plans, and (3) controlling
these plans.

2
INCORR Which of the following statements is true of a target market?
ECT

The target market is composed of a heterogeneous group of customers.

A)

The target market refers to the employees of a company who are involved in the
B)production of a product.

The target market refers to those consumers to whom a company wishes to

C)appeal.

The target market is not part of the marketing strategy.

D)

The target market and the marketing mix are not interrelated.
E)

Feedback:
AACSB: Analytic
Level of Difficulty: 2 Medium
Learning Objective: 02-02
Blooms: Understand
Topic: What Is a Marketing Strategy?
A target market is defined as a fairly homogeneous group of customers to
whom a company wishes to appeal.

3
INCORR Which of the following statements is true of mass marketing?
ECT

Mass marketing is a typical market-oriented approach.

A)

Mass marketing is limited to small market segments.

B)
 Mass marketing is limited to homogeneous market segments.
C)

Mass marketing considers everyone to be a potential customer.

D)

Mass marketing aims to tailor a marketing mix to fit some specific target
E)customers.

Feedback:
AACSB: Analytic
Level of Difficulty: 2 Medium
Learning Objective: 02-03
Blooms: Understand
Topic: Selecting a Market-Oriented Strategy Is Target Marketing
Target marketing says that a marketing mix is tailored to fit some specific
target customers. In contrast, mass marketingthe typical production-
oriented approachvaguely aims at "everyone" with the same marketing
mix. Mass marketing assumes that everyone is the sameand it considers
everyone to be a potential customer.

4
INCORR The difference between mass marketing and target marketing is that mass
ECT marketing:

is used for services, while target marketing is used for products.

A)

focuses on long-run objectives, while target marketing focuses on short-run

B)objectives.

is a typical production-oriented approach, while target marketing is a typical

C)marketing-oriented approach.

relies on e-commerce, while target marketing does not.

D)

aims at increased profits, while target marketing focuses on increased sales.

E)

Feedback:
AACSB: Analytic
Level of Difficulty: 2 Medium
 Learning Objective: 02-03
Blooms: Understand
Topic: Selecting a Market-Oriented Strategy Is Target Marketing
Refer to Exhibit 2-3. A production-oriented manager sees everyone as
basically similar and practices "mass marketing." A marketing-oriented
manager sees everyone as different and practices "target marketing." Target
marketing says that a marketing mix is tailored to fit some specific target
customers. In contrast, mass marketingthe typical production-oriented
approachvaguely aims at "everyone" with the same marketing mix.

5
INCORR _____ refers to the unpaid nonpersonal presentation of ideas, goods, or services,
ECT which includes getting favorable coverage in newspaper stories or on television.

Advertising
A)

Personal selling
B)

Mass selling
C)

Publicity
D)

Sales promotion
E)

Feedback:
AACSB: Analytic
Level of Difficulty: 1 Easy
Learning Objective: 02-04
Blooms: Remember
Topic: Developing Marketing Mixes for Target Markets
Publicityany unpaid form of nonpersonal presentation of ideas, goods, or
servicesincludes getting favorable coverage in newspaper stories or on
television. Publicity also involves creating web pages where a firm can tell
interested customers more about its product. The web page could be part of
a social media tool like Facebook, YouTube or Pinterest.

6
INCORR Putting marketing plans into operation is known as _____.
ECT
controlling

A)
 directing
B)

planning
C)

diversification
D)

implementation
E)

Feedback:
AACSB: Analytic
Level of Difficulty: 1 Easy
Learning Objective: 02-05
Blooms: Remember
Topic: The Marketing Plan Is a Guide to Implementation and Control
Putting marketing plans into operation is known as implementation.
Strategies work out as planned only when they are effectively implemented.
Many operational decisionsshort-run decisions to help implement
strategiesmay be needed.

7
CORREC Effective strategy planning:
T

significantly increases a firm's chances for success.

A)

involves huge risk and hampers a firm's functionality.

B)

focuses on mass marketing.

C)

is very expensive and therefore ideally avoided.

D)

gives competitors an edge over the firm.

E)
 Feedback:
AACSB: Analytic
Level of Difficulty: 1 Easy
Learning Objective: 02-06
Blooms: Understand
Topic: The Importance of Marketing Strategy Planning
Effective strategy planning significantly increases the chances for success.

8
INCORR A breakthrough opportunity:
ECT

allows a firm to gain insight into its competitors' offerings so that it can gain a
A)short-term competitive advantage.

can usually be achieved by copying the "best practices" of other firms that sell
B)similar products.

is one that helps an innovator develop a hard-to-copy marketing strategy that will
C)be very profitable for a long time.

is one that requires the firm to "break through" its current resource limitations to
D)obtain a new type of competitive advantage.

is usually achieved by making better operational decisions.

E)

Feedback:
AACSB: Analytic
Level of Difficulty: 2 Medium
Learning Objective: 02-07
Blooms: Understand
Topic: What Are Attractive Opportunities?
Breakthrough opportunities refer to those opportunities that help innovators
develop hard-to-copy marketing strategies that will be very profitable for a
long time. That's important because there are always imitators who want to
"share" the innovator's profitsif they can.

9
INCORR When the toothpaste brand, Dentoderm, encourages its current customers to brush
ECT more often by taking their toothbrush and toothpaste to work with them, which
market opportunity is it pursuing?

Market development
A)
 Product development
B)

Diversification
C)

Market penetration
D)

Feedback:
AACSB: Reflective Thinking
Level of Difficulty: 3 Hard
Learning Objective: 02-08
Blooms: Apply
Topic: Types of Opportunities to Pursue
Market penetration means trying to increase sales of a firm's present
products in its present markets, probably through a more aggressive
marketing mix.

10
INCORR Which of the following statements is true regarding international opportunities?
ECT

International marketing is attractive because it is always easier and cheaper to

A)learn foreign regulations.

Advances in e-commerce, transportation, and communications are making it more

B)difficult and expensive to reach international customers.

Risks are often much lower in foreign markets.

C)

International marketing is becoming increasingly difficult because most countries

D)have increased barriers, like taxes on imports.

When pursuing opportunities in a foreign country, it is important for a firm to

E)know that country's culture.

Feedback:
AACSB: Analytic
Level of Difficulty: 2 Medium
Learning Objective: 02-09
Blooms: Understand
Topic: International Opportunities Should Be Considered
 Marketing managers should consider international opportunities, but risks
are often higher in foreign markets. Many firms fail because they don't know
the foreign country's culture. Learning foreign regulations can be difficult
and costly. Political or social unrest make it difficult to operate in some
countries.

Results Reporter
Out of 10 questions, you answered 3 correctly with a final grade of 30%

3 correct
(30%)
7
incorrect
(70%)
0
unanswer
ed (0%)

Your Results:

The correct answer for each question is indicated by a .

1
INCORRECT Which of the following variables is associated with the external market
environment?

Company resources
A)

Customers
B)

Prospective competitors
C)

Economic conditions
D)

Organizational objectives
E)

Feedback:
AACSB: Analytic
Level of Difficulty: 1 Easy
Learning Objective: 03-01
Blooms: Remember
Topic: The Market Environment
The external market environment includes four major areas: the economic
environment, the technological environment, the political and legal
environment, and the cultural and social environment.
2
INCORRECT A(n) _____ sets out an organization's basic purpose for being.

guideline document
A)

audit report
B)

marketing collateral
C)

mission statement
D)

annual report
E)

Feedback:
AACSB: Analytic
Level of Difficulty: 1 Easy
Learning Objective: 03-02
Blooms: Remember
Topic: Objectives Should Set Firm's Course
Many firms develop a mission statement, which sets out the organization's
basic purpose for being. A good mission statement should focus on a few key
goals rather than embracing everything.

3
INCORRECT Which of the following would be an appropriate mission statement for an online
retailer?

Our mission is to generate one million page views each day.

A)

Our mission is to boost holiday sales by 10 percent.

B)

Our mission is to sell products.

C)

Our mission is to build a place where people can come to find anything they
might want to buy online.
D)

Our mission is to have an efficient supply chain aided by Internet

technologies.
E)

Feedback:
AACSB: Reflective Thinking
Level of Difficulty: 3 Hard
 Learning Objective: 03-02
Blooms: Apply
Topic: Objectives Should Set Firm's Course
In general terms, a mission statement sets out the organization's basic
purpose for being. In this example, the mission talks about a key goal rather
than specific objectives.

4
INCORRECT Which of the following statements is true of the competitive environment?

Marketing managers should choose strategies that allow their firms to

engage actively in head-on competition.
A)

Target marketers should offer a marketing mix better suited to meet target
customers' needs than their competitors' offerings.
B)
Marketing managers should actively seek a marketing mix that consumers
view as identical to a competitor's mixone that can be quickly or easily
C) copied.

A firm should adapt its marketing mix to meet those customer needs that
are already being well-served by the competition.
D)

Marketing managers should just adopt the same "good" marketing strategy
being used by other firms in order to gain a competitive advantage.
E)

Feedback:
AACSB: Analytic
Level of Difficulty: 2 Medium
Learning Objective: 03-04
Blooms: Understand
Topic: Analyzing Competitors and the Competitive Environment
Marketing managers can't just adopt the same "good" marketing strategy
being used by other firms. That leads to head-on competition and a
downward spiral in prices and profits. So target marketers try to offer a
marketing mix better suited to meet target customers' needs than their
competitors' offerings.

5 CORRECT
Which of the following pieces of advice about competitors should a marketing
manager not take?

"Choose opportunities that go head-to-head against the competition."

A)

"Analyze competitors to seek a competitive advantage."

B)

"Organize competitor analysis in a competitor matrix."

C)

"Narrow down the list of competitors to a set of competitive rivalsfirms

that will be the closest competitors."
D)
 "Be ethical when conducting a competitor analysis."
E)

Feedback:
AACSB: Reflective Thinking
Level of Difficulty: 2 Medium
Learning Objective: 03-04
Blooms: Apply
Topic: Analyzing Competitors and The Competitive Environment
Although marketing managers can't control the number and types of
competitors in the competitive environment, they should choose strategies
that avoid head-on competition. The best way for a marketing manager to
avoid head-on competition is to find new or better ways to satisfy customers'
needs and provide value.

6
INCORRECT Which of the following statements is true of the economic environment?

Interest rates usually decrease during periods of inflation.

A)

Changes in the economy are often accompanied by changes in the interest

rate.
B)

A change in the economy of one country has no effect on the economies of

other countries.
C)

New domestic competition decreases as foreign products gain a competitive

edge with lower prices.
D)

A country's whole economic system is not affected if the balance of imports

and exports shifts.
E)

Feedback:
AACSB: Analytic
Level of Difficulty: 2 Medium
Learning Objective: 03-05
Blooms: Understand
Topic: The Economic Environment
Changes in the economy are often accompanied by changes in the interest
ratethe charge for borrowing money. Interest rates directly affect the total
price borrowers must pay for products. So the interest rate affects when, and
if, they will buy. This is an especially important factor in some business
markets.

7 CORRECT
American legislative and economic thinking is based on the idea that:

competition among many small firms helps the economy.

A)
 firms must have their prices approved by the Federal Trade Commission.
B)

the free enterprise system is dying.

C)

laws are needed to prevent firms from competing with similar ("me-too")
products.
D)

government officials are needed to run the economy.

E)

Feedback:
AACSB: Analytic
Level of Difficulty: 1 Easy
Learning Objective: 03-06
Blooms: Remember
Topic: The Legal Environment
American economic and legislative thinking is based on the idea that
competition among many small firms helps the economy.

8 CORRECT
Gross domestic product (GDP):

is affected by economic conditions and the productivity of workers in the

country.
A)

usually rises when economic conditions are bad.

B)

is the amount of new capital invested in businesses in a year.

C)

is the total cost of producing all goods and services in a year.

D)

is the total market value of goods and services consumed in an economy in

a year.
E)

Feedback:
AACSB: Analytic
Level of Difficulty: 2 Medium
Learning Objective: 03-07
Blooms: Understand
Topic: The Cultural and Social Environment
GDP is the total market value of all goods and services provided in a
country's economy in a year by both residents and nonresidents of that
country. Thus, it is affected by economic conditions and the productivity of
workers in the country.

9
INCORRECT Which of the following population groups are "digital natives"?

Millennials
A)

Generation X
B)

Baby boomers
C)

Generation Y
D)

Generation Z
E)

Feedback:
AACSB: Diversity
Level of Difficulty: 1 Easy
Learning Objective: 03-07
Blooms: Remember
Topic: Generation ZMore Cautious
Generation Z refers to those born since 1995. This group is still young, so
ideas about its emerging values are speculative. These "digital natives" were
born into a world that already used text messaging, cell phones, and the
Internet.

10
INCORRECT Which of the following is true of General Electric's strategic planning grid?

It uses ROI and market share as two axes.

A)

It is also known as a stoplight evaluation method.

B)

It is objective in its nature of study.

C)

It uses a single-factor approach to strategic projects.

D)

It uses oversimplified single-number criteria.

E)

Feedback:
AACSB: Analytic
Level of Difficulty: 2 Medium
Learning Objective: 03-08
Blooms: Understand
Topic: Planning Grids Help Evaluate a Portfolio of Opportunities
 GE's "stoplight" evaluation method is a subjective, multiple-factor approach.
It avoids the traps and possible errors of trying to use oversimplified, single-
number criterialike ROI or market share. Instead, top managers review
detailed written summaries of many different screening criteria that help
them make summary judgments. This approach helps everyone understand
why the company supports some new opportunities and not others.

Results Reporter
Out of 10 questions, you answered 1 correctly with a final grade of 10%

1
correct
(10%)
9
incorrec
t (90%)
0
unansw
ered
(0%)

Your Results:

The correct answer for each question is indicated by a .

1
CORREC Which of the following describes a generic market instead of a product-market?
T

Sports enthusiast market

A)

Tennis equipment market

B)

Hiking shoes market

C)

Sports video games market

D)

Whitewater excursion market

E)
 Feedback:
AACSB: Reflective Thinking
Level of Difficulty: 2 Medium
Learning Objective: 04-01
Blooms: Understand
Topic: Search for Opportunities Can Begin by Understanding Markets
The generic market in the list is "sports enthusiast market." The other
options are product-market identifiers. Unlike the labeling of product
markets, the labeling of generic markets doesn't include any product-type
terms. This emphasizes that any product type that satisfies the customer's
needs can compete in a generic market. A generic market is a market with
broadly similar needsand sellers offering various, often diverse, ways of
satisfying those needs.

2
INCORR A basic difference between a "generic market" and a "product-market" is:
ECT

whether or not sellers in the market rely on e-commerce.

A)

how similar the competing sellers' products are.

B)

whether customer needs are similar or different.

C)

whether the market includes only buyersor both buyers and sellers.
D)

there is no differenceboth the terms mean the same thing.

E)

Feedback:
AACSB: Analytic
Level of Difficulty: 2 Medium
Learning Objective: 04-01
Blooms: Understand
Topic: Search for Opportunities Can Begin by Understanding Markets
A generic market is a market with broadly similar needsand sellers offering
various, often diverse, ways of satisfying those needs. In contrast, a
product-market is a market with very similar needs and sellers offering
various close substitute ways of satisfying those needs.

3
INCORR In the market segmentation process, the next step after naming broad product-
ECT markets would be:

deciding the new products to be developed.

A)

looking for differences in customer needs.

B)

evaluating the strengths and weaknesses of competitors.

C)

defining narrow generic markets within the broad product-markets.

D)

segmenting the product-markets in order to select target markets.

E)

Feedback:
AACSB: Analytic
Level of Difficulty: 1 Easy
Learning Objective: 04-02
Blooms: Understand
Topic: Market Segmentation Defines Possible Target Markets
Market segmentation is a two-step process of (1) naming broad product-
markets and (2) segmenting these broad product-markets in order to select
target markets and develop suitable marketing mixes.

4
INCORR Which of the following is an advantage of the combined target market approach?
ECT

It considers each submarket as a separate target market.

A)

It involves looking at various submarkets for differences rather than similarities.

B)

It tries to satisfy some customers very well instead of many just fairly well.
C)

It involves developing a different marketing mix for each market segment.

D)
 It helps achieve some economies of scale.
E)

Feedback:
AACSB: Analytic
Level of Difficulty: 2 Medium
Learning Objective: 04-03
Blooms: Understand
Topic: Market Segmentation Defines Possible Target Markets
A combined target market approach may help achieve some economies of
scale. It may also require less investment than developing different
marketing mixes for different segmentsmaking it especially attractive for
firms with limited resources.

5
INCORR What is the trade-off for a "combiner" who seeks to offer one marketing mix to two or
ECT more submarkets at the same time?

The combined target market is smaller than the individual segments alone, but the
A)marketing mix can be fine-tuned to meet very specific needs.

The combined target market is larger than the individual segments alone, but the
B)marketing mix is not as effective at meeting specific needs.

The marketing mix is far more expensive to develop, but the combined target
C)market is larger.

The marketer can satisfy fewer customers very well instead of many just fairly well,
D)but the combined target market is highly heterogeneous.

The combined target market is operational, but the segment ceases to be

E)substantial.

Feedback:
AACSB: Analytic
Level of Difficulty: 2 Medium
Learning Objective: 04-03
Blooms: Understand
Topic: Market Segmentation Defines Possible Target Markets
Combiners try to increase the size of their target markets by combining two
or more segments. A combiner doesn't try to fine-tune each element of the
marketing mix to appeal to each of the smaller submarkets. Rather, the
marketing mix is selected to work "fairly well" with each segment.

6
INCORR Centbev, a leading coffee brand, offers Centbev Insta for those on the go, Centbev
ECT Filter Mix for the aged, and Centbev Mild for young adults. These variants of the brand
have different packaging, advertising, pricing, and promotional tactics. Because of its
multiple target market approach, Centbev will be considered a _____.

direct marketer
A)

combiner
B)

mass marketer
C)

segmenter
D)

mass producer
E)

Feedback:
AACSB: Reflective Thinking
Level of Difficulty: 3 Hard
Learning Objective: 04-03
Blooms: Apply
Topic: Market Segmentation Defines Possible Target Markets
In this context, Centbev is a segmenter. Instead of assuming that the whole
market consists of a fairly similar set of customers (like the mass marketer
does) or merging various submarkets together (like the combiner),
segmenters believe that aiming at one, or some, of these smaller markets
makes it possible to provide superior value and satisfy them better.

7
INCORR In the context of market segmentation, which of the following is a demographic
ECT dimension?

Information required
A)

Brand familiarity
B)

Family life cycle

C)

Benefits sought
 D)

Size of city
E)

Feedback:
AACSB: Analytic
Level of Difficulty: 1 Easy
Learning Objective: 04-04
Blooms: Remember
Topic: What Dimensions Are Used to Segment Markets?
Demographic dimensions include age, sex, income, location, family lifecycle,
and family size.

8
INCORR A company that produces printer ink offers the product in different quantities and at
ECT different prices based on how often customers purchase and use the product. In this
scenario, the company is most likely segmenting the market based on _____.

brand familiarity.
A)

education.
B)

rate of use.
C)

ethnicity.
D)

purpose of use.
E)

Feedback:
AACSB: Reflective Thinking
Level of Difficulty: 2 Medium
Learning Objective: 04-04
Blooms: Apply
Topic: What Dimensions Are Used to Segment Markets?
The company is primarily segmenting the market based on rate of use
(heavy, medium, light, and nonusers).

9
INCORR Which of the following statements is true of clustering as a means to segmenting?
ECT
 Clustering tries to find contrasting patterns within sets of data.
A)

Clustering groups customers who differ on segmenting dimensions.

B)

Clustering usually requires a computer.

C)

Clustering usually tries to find differences rather than similarities between

D)customers.

Clustering involves combining two or more market segments with heterogeneous

E)needs.

Feedback:
AACSB: Analytic
Level of Difficulty: 1 Easy
Learning Objective: 04-05
Blooms: Remember
Topic: More Sophisticated Techniques May Help in Segmenting
Clustering approaches use computers to do what previously was done with
much intuition and judgment. The computer searches all the data for
homogeneous groups of people. When it finds them, marketers study the
dimensions of the people in the groups to see why the computer clustered
them together.

10
INCORR Sometimes marketing managers use a positioning statement to provide focus for a
ECT marketing mix. Which of the following is not included in a positioning statement?

The firm's desired target market

A)

The product's primary benefit or point of differentiation

B)

A list of competitors' strengths

C)

The main reasons a buyer should believe the firm's claims

D)
 The product type
E)

Feedback:
AACSB: Analytic
Level of Difficulty: 1 Easy
Learning Objective: 04-06
Blooms: Remember
Topic: Differentiation and Positioning Take the Customer Point of View
A positioning statement concisely identifies the firm's desired target market,
product type, primary benefit or point of differentiation, and the main
reasons a buyer should believe the firm's claims.

Results Reporter
Out of 10 questions, you answered 2 correctly with a final grade of 20%

2
correct
(20%)
8
incorrec
t (80%)
0
unansw
ered
(0%)

Your Results:

The correct answer for each question is indicated by a .

1
INCORRECT Together Carla and John earn $7000 each month. After paying taxes of $1000,
the two pay $4000 toward necessities (like food, rent, insurance, and
transportation). This leaves them how much in discretionary income?

$7000
A)

$3000
B)

$6000
C)

$2000
D)
 This cannot be determined from the information provided.
E)

Feedback:
AACSB: Reflective Thinking
Level of Difficulty: 2 Medium
Learning Objective: 05-01
Blooms: Apply
Topic: Economic Needs Affect Most Buying Decisions
Discretionary income is what is left of income after paying taxes and paying
for necessities. In this case, from the total income of $7000, $1000 is paid
toward taxes and $4000 is paid for necessities. That leaves a sum of $2000
as the discretionary income.

2
INCORRECT According to most marketing managers, the economic-buyer theory:

says that most consumers are unaware of the economic value of products
they purchase.
A)

accurately explains why people behave the way they do.

B)

includes psychological variables and social influences.

C)

is too simplistic to explain consumer behavior.

D)

is based on the assumption that consumers always buy the lowest price
alternative.
E)

Feedback:
AACSB: Analytic
Level of Difficulty: 2 Medium
Learning Objective: 05-01
Blooms: Understand
Topic: Economic Needs Affect Most Buying Decisions
Most marketing managers think that buyer behavior is not as simple as the
economic-buyer model suggests.

3
INCORRECT Luxury Care, a chain of personal care products and spas, boasts of its dedication
to natural cosmetic products developed without the use of animal testing or
unfair labor practices. This appeal is designed to meet customers':

physiological needs.
A)

safety needs.
B)
 economic needs.
C)

personal needs.
D)

esteem needs.
E)

Feedback:
AACSB: Reflective Thinking
Level of Difficulty: 2 Medium
Learning Objective: 05-02
Blooms: Apply
Topic: Psychological Influences within an Individual
Marketing appeals that make claims about the social and environmental
benefits of products are attempting to meet customers' personal needs.
Examples of personal needs include accomplishment, fun, freedom, and
relaxationas well as a desire to make the world a better place. Many people
make food choices that enable them to achieve a healthier balance in their
livesthis is another example of a personal need.

4
INCORRECT Carmela Sanchez is planning to buy a pair of running shoes. Recently, she has
been noticing more Adidas advertising in magazines. This is an example of:

a physiological need.
A)

dissonance.
B)

need satisfaction.
C)

selective exposure.
D)

a consumer expectation.
E)

Feedback:
AACSB: Reflective Thinking
Level of Difficulty: 2 Medium
Learning Objective: 05-02
Blooms: Apply
Topic: Psychological Influences within an Individual
Selective exposure is when our eyes and minds seek out and notice only
information that interests us.

5
INCORRECT When a popular tacos outlet shows a large close-up of a chicken taco in a
television ad, it is:

encouraging selective retention.

A)

hoping to encourage extensive problem solving by the audience.

B)

appealing to the social needs of the audience.

C)

appealing to the economic needs of the audience.

D)

using a cue to encourage a particular response to the hunger drive.

E)

Feedback:
AACSB: Reflective Thinking
Level of Difficulty: 2 Medium
Learning Objective: 05-02
Blooms: Apply
Topic: Psychological Influences within an Individual
Depending on the cues (products, signs, ads, and other stimuli in the
environment), an individual chooses some specific response to satisfy a
drive.

6 CORRECT
Which of the following is true of reinforcement of the learning process?

It occurs when a person's response is followed by satisfaction.

A)

It occurs when there is increase in an individual's drive.

B)

Repeated reinforcement makes an individual's decision process less

routinized.
C)

Repeated reinforcement leads to development of dissonance.

D)

Reinforcement weakens the relationship between a cue and a response.

E)

Feedback:
AACSB: Analytic
Level of Difficulty: 2 Medium
Learning Objective: 05-03
Blooms: Understand
Topic: Psychological Influences within an Individual
 Reinforcement of the learning process occurs when the response is followed
by satisfactionthat is, reduction in drive. Reinforcement strengthens the
relationship between the cue and the response. And it may lead to a similar
response the next time the drive occurs. Repeated reinforcement leads to
development of a habitmaking the individual's decision process routine.

7
INCORRECT Reference group influence would be weakest for determining which particular
_____ a person buys.

watch
A)

cell phone
B)

luxury perfume
C)

laundry soap
D)

car
E)

Feedback:
AACSB: Reflective Thinking
Level of Difficulty: 2 Medium
Learning Objective: 05-03
Blooms: Apply
Topic: Social Influences Affect Consumer Behavior
Reference influence is stronger for products that others "see" and which
relate to status in the group. In this case, laundry soap is more of a low-
involvement product that does not relate to status.

8
INCORRECT Which of the following is true of ethnicity and consumer behavior in the United
States?

The number of ethnic consumers in the United States id in decline.

A)

The median age of Asian Americans, African Americans, and Hispanics is

much higher than that of whites.
B)

Hispanics face the most dwindling numbers as ethnic groups.

C)

The buying power of ethnic submarkets is increasing rapidly.

D)
 African Americans have the highest median family income of the major
ethnic groups.
E)

Feedback:
AACSB: Analytic
Level of Difficulty: 2 Medium
Learning Objective: 05-03
Blooms: Understand
Topic: Culture, Ethnicity, and Consumer Behavior
The buying power of ethnic submarkets is increasing rapidly. Estimates
indicate that Hispanics and African Americans each spend more than $1
trillion a year and Asian Americans over $500 billion a year. It's also
important to marketers that much of this buying power is concentrated in
certain cities and states, which makes targeted promotion and distribution
more efficient.

9
INCORRECT Outdoor merchandiser Bass Pro Shops creates a giant retail store filled with
hunting and fishing exhibits to attract customers, entertain them, and keep
them in stores for long periods of time. This retailing strategy is based on the
idea that:

economic needs influence the buyer decision process more than social
needs.
A)

family life cycles affect a person's consumer decisions.

B)

characteristics of the purchase situation influence consumer behavior.

C)

unmarried individuals are more willing to try new brands.

D)

customers are motivated by their physiological needs.

E)

Feedback:
AACSB: Reflective Thinking
Level of Difficulty: 3 Hard
Learning Objective: 05-04
Blooms: Apply
Topic: Individuals Are Affected by the Purchase Situation
Surroundings can affect buying behavior. For example, the excitement at an
on-site auction may stimulate impulse buying. Checking out an auction
online might lead to a different response. Bass Pro Shops places exciting
outdoor-adventure exhibits in stores to attract consumers and stimulate
purchases.

10
CORRECT Consumers go through six steps when deciding to accept or reject a new idea. In
this adoption process, the:
 confirmation step follows the decision step.
A)

evaluation step follows the trial step.

B)

awareness step follows the interest step.

C)

trial step follows the decision step.

D)

final result is dissonance.

E)

Feedback:
AACSB: Analytic
Level of Difficulty: 2 Medium
Learning Objective: 05-05
Blooms: Understand
Topic: The Consumer Decision Process
In the adoption process, an individual moves through some fairly definite
steps: awareness, interest, evaluation, trial, decision, and confirmation.