MKTG 2, Second Canadian Edition Test Bank

Name: MKTG 2, Second Canadian Edition Test Bank
Brand: Academic Documents Platform
Price: 25 USD
Availability: InStock
Author: Leo Bailey

MKTG 2, Second Canadian Edition Test Bank simplifies tough topics and provides all the necessary study resources for a stress-free exam.

Leo Bailey

Contributor

4.8

4 months ago

Preview (16 of 1052)

NETA ASSESSMENT
Test Bank
to accompany
Second Canadian Edition Test Bank prepared by
Beth Pett
Niagara College

iii
Table of Contents
PART 1 – Marketing—Let’s Get Started
1. An Overview of Marketing .................................................................................................... 1-1
2. The Marketing Environment, Social Responsibility, and Ethics ........................................... 2-1
3. Strategic Planning for Competitive Advantage...................................................................... 3-1
PART 2 – Analyzing Marketing Opportunities
4. Decision Support Systems and Market Research .................................................................. 4-1
5. Consumer Decision Making .................................................................................................. 5-1
6. Business Marketing ............................................................................................................... 6-1
7. Segmenting, Targeting, and Positioning ............................................................................... 7-1
8. Customer Relationship Management (CRM)......................................................................... 8-1
PART 3 – Product Decisions
9. Product Concepts ................................................................................................................... 9-1
10. Developing and Managing Products .................................................................................. 10-1
11. Services and Nonprofit Organization Marketing ............................................................... 11-1
PART 4 – Distribution Decisions
12. Marketing Channels and Supply Chain Management ........................................................ 12-1
13. Retailing ............................................................................................................................. 13-1
PART 5 – Promotion Decisions
14. Integrated Marketing Communications ............................................................................. 14-1
15. Advertising, Public Relations, and Direct Response ......................................................... 15-1
16. Social Media and Marketing .............................................................................................. 16-1
17. Sales Promotion and Personal Selling ............................................................................... 17-1
PART 6 – Pricing Decisions
18. Pricing Concepts ................................................................................................................ 18-1
19. Setting the Right Price ...................................................................................................... 19-1
PART 7 – Global Marketing
20. Developing a Global Vision............................................................................................... 20-1

1-1
Chapter 1—An Overview of Marketing
MULTIPLE CHOICE
1. What does the term marketing refer to?
a. new product concepts and improvements
b. selling
c. advertising and promotion activities
d. a philosophy that stresses customer satisfaction
ANS: D PTS: 1 REF: 3 OBJ: 01-1
TOP: AACSB Reflective Thinking| TB&E Model Strategy BLM: Remember
2. A business is concerned with many day-to-day activities. Some of the most important of these
activities are the planning and development of a product, its pricing policy, and the
distribution strategy. What are all these activities part of?
a. a control system
b. marketing
c. accounting
d. production
ANS: B
This description contains three of the four main activities included in the marketing function.
(Many students may mistakenly believe that marketing is concerned only with promotion.)
PTS: 1 REF: 3 OBJ: 01-1
TOP: AACSB Reflective Thinking| TB&E Model Pricing| TB&E Model Product| TB&E Model
Distribution BLM: Higher Order
3. Which of the following is a philosophy, an attitude, a perspective, or a management
orientation that stresses customer satisfaction?
a. planning strategy
b. customer management
c. marketing
d. reciprocity
ANS: C PTS: 1 REF: 3 OBJ: 01-1
TOP: AACSB Reflective Thinking| TB&E Model Product BLM: Remember
4. Which of the following best characterizes marketing?
a. promotional activities.
b. personal selling.
c. advertising.
d. customer satisfaction.
ANS: D PTS: 1 REF: 3 OBJ: 01-1
TOP: AACSB Reflective Thinking| TB&E Model Product BLM: Remember

Chapter 1 – An Overview of Marketing
1-2
5. Which of the following is a key ingredient in the philosophy of marketing that occurs when
people give up something in order to receive something that they would rather have?
a. exchange
b. synergy
c. leverage
d. reciprocity
ANS: A PTS: 1 REF: 3-4 OBJ: 01-1
TOP: AACSB Reflective Thinking| TB&E Model Product BLM: Remember
6. What must happen in order for exchange to occur?
a. Organized marketing activities must also take place.
b. A profit-oriented organization must be involved in the process.
c. Money or other legal tender is required.
d. Each party must have something the other party considers to be valuable.
ANS: D
Exchange involves the trade of items of value, but does not necessarily involve formal
organizations, profit, or money/legal tender.
PTS: 1 REF: 4 OBJ: 01-1
TOP: AACSB Reflective Thinking| TB&E Model Product BLM: Higher Order
7. A problem facing the timber industry is the absence of any effective way to prove that
rainforest timber was legally harvested. In places like Indonesia, as much as 80 percent of
timber available for sale was illegally cut. Companies such as The Home Depot do not want to
sell timber from illegally logged forests even though the demand is great for timber from
rainforests. Which of the following conditions required for an exchange to occur is missing
when a company tries to sell illegally acquired logs to The Home Depot?
a. There are more than two parties involved.
b. Each party has something of value to bring to the exchange.
c. One party is free to accept the exchange offer.
d. Each party believes it is appropriate to deal with the other party.
ANS: D
For an exchange to occur, two or more parties must be involved. Both parties are free to
accept or reject the exchange. If The Home Depot believes the timber was illegally obtained,
then it will not want to deal with the loggers.
PTS: 1 REF: 4 OBJ: 01-1
TOP: AACSB Ethics| TB&E Model Product BLM: Higher Order

Chapter 1 – An Overview of Marketing
1-3
8. Why is the concept of exchange important to marketing?
a. Money is the only medium of exchange for business marketers.
b. Exchange provides money to marketers.
c. Marketing activities help to create exchange.
d. Marketing activities are a requirement for exchange to take place.
ANS: C
Marketing activities help the exchange to take place, but marketing can occur without an
exchange.
PTS: 1 REF: 4 OBJ: 01-1
TOP: AACSB Reflective Thinking| TB&E Model Product BLM: Higher Order
9. Domino’s Pizza is offering racing fans a chance to earn points toward NASCAR-branded
merchandise via the NASCAR RacePoints loyalty program. Consumers who buy $20 worth of
Domino’s Pizza will receive 100 NASCAR RacePoints. NASCAR RacePoints will be
credited to members’ accounts. Racing fans can collect points to earn NASCAR merchandise,
including apparel and hats or one-of-a-kind experiences, such as driving a real race car. What
will occur when a NASCAR fan trades in his or her points for a mug autographed by a
favourite driver?
a. synergy
b. sublimation
c. exchange
d. reciprocity
ANS: C
For an exchange to occur, two or more parties must be involved. Both parties are free to
accept or reject the exchange. Furthermore, each party must have something that is of value to
the other party. In this case, the value for Domino’s is customer loyalty.
PTS: 1 REF: 4 OBJ: 01-1
TOP: AACSB Reflective Thinking| TB&E Model Customer BLM: Higher Order
10. What must occur for an exchange to take place?
a. There must be at least two parties involved.
b. Money must be used in the transaction.
c. Each party must feel obligated to accept the offer.
d. At least one party must have something of value that the other party desires.
ANS: A PTS: 1 REF: 4 OBJ: 01-1
TOP: AACSB Reflective Thinking| TB&E Model Customer BLM: Remember

Loading page 6...

Chapter 1 – An Overview of Marketing
1-4
11. For many years, Procter & Gamble (P&G) viewed its Ivory soap as just plain old soap—and
not as a cleansing product that could provide other benefits as well. When it came to Ivory
soap, P&G focused on how well it made the soap and not on what customers wanted from a
bar of soap. What type of orientation did the company have?
a. sales
b. production
c. market
d. customer
ANS: B
The production orientation forces a company to build whatever it builds best; that is, whatever
it has the experience and expertise in doing.
PTS: 1 REF: 4-5 OBJ: 01-2
TOP: AACSB Reflective Thinking| TB&E Model Distribution BLM: Higher Order
12. Andi Littleton has inherited a Featherlite brand horse trailer from her recently deceased
grandfather. A preliminary investigation has shown many people would be interested in
owning a Featherlite brand horse trailer. She is considering placing an advertisement in a
newspaper targeted to horse owners. She has been told similar horse trailers are selling for
about $14,000. Which of the following conditions is necessary for an exchange to occur
between Littleton and a buyer?
a. Her trailer should carry a low price.
b. The trailer should be on display somewhere that people will see it.
c. She needs to practise negotiating.
d. Littleton and her buyer must be able to walk away from the deal if desired.
ANS: D
For an exchange to take place, each party must have something the other values; the parties
must be able to communicate; each party must believe that it is appropriate to deal with the
other; and each party must be free to accept or reject the exchange offer.
PTS: 1 REF: 4 OBJ: 01-1
TOP: AACSB Analytic| TB&E Model Product| TB&E Model Customer
BLM: Higher Order

Loading page 7...

Chapter 1 – An Overview of Marketing
1-5
13. To increase interest in rodeos, the local chapter of the National Rodeo Cowboys Association
(NRCA) is offering free roping lessons to students in grades 6 and 7. Which of the following
best describes an exchange?
a. Students and their parents can decide for themselves if the lessons have any value.
b. The students want to take the lessons but are unaware that they are being offered
for free.
c. The parents of the students are unsure whether the NRCA is a legitimate
organization.
d. Both the NRCA and the students taking the lessons will trade something of value.
ANS: D
If the course has no value, then an exchange cannot occur. Without communication, the
exchange of knowledge for time and energy cannot occur. In an exchange, each participant
has something of value to the other. For an exchange to occur, each party must believe it is
desirable.
PTS: 1 REF: 4 OBJ: 01-1
TOP: AACSB Reflective Thinking| TB&E Model Strategy BLM: Higher Order
14. Which of the following is a marketing management philosophy?
a. sales promotion orientation
b. societal change orientation
c. market orientation
d. profitability orientation
ANS: C PTS: 1 REF: 4-5 OBJ: 01-2
TOP: AACSB Reflective Thinking| TB&E Model Strategy BLM: Remember
15. Indonesian logging companies harvest rainforests for timber and assume that a market exists
for their products. Which type of orientation does the typical Indonesian logging company
have?
a. exchange
b. environmental
c. production
d. sales
ANS: C
The logging companies do not focus on the needs and desires of the marketplace.
PTS: 1 REF: 4-5 OBJ: 01-2
TOP: AACSB Ethics| TB&E Model Product BLM: Higher Order

Loading page 8...

Chapter 1 – An Overview of Marketing
1-6
16. What type of orientation do firms have when they focus on the internal capabilities of the
firm, rather than on the desires and needs of the marketplace?
a. sales
b. production
c. market
d. customer
ANS: B PTS: 1 REF: 4-5 OBJ: 01-2
TOP: AACSB Reflective Thinking| TB&E Model Product BLM: Remember
17. What type of orientation does a company have when it sets its goals and strategies based on
what its current equipment can produce, what products engineering can design, and what the
company itself can do best?
a. marketplace
b. sales
c. production
d. exchange
ANS: C PTS: 1 REF: 4-5 OBJ: 01-2
TOP: AACSB Reflective Thinking| TB&E Model Strategy| TB&E Model Product
BLM: Remember
18. Researchers at PPG Industries spent considerable time, effort, and money developing a bluish
windshield that would let in filtered sunlight but block out the heat. Little market research was
done, but the scientists were convinced this new product would be significantly better than
existing windshields, even though it was more expensive and of a different colour than the
current models on the market. This scenario suggests PPG most likely has which type of
orientation?
a. exchange
b. production
c. sales
d. customer
ANS: B
The questions researchers apparently asked before developing their windshield were, “What
can we do best?” and “What can we make with the equipment we already own?” This is a
production orientation.
PTS: 1 REF: 4-5 OBJ: 01-2
TOP: AACSB Reflective Thinking| TB&E Model Research BLM: Higher Order

Loading page 9...

Chapter 1 – An Overview of Marketing
1-7
19. When is a firm with a production orientation most likely to survive?
a. if there are many small competitors in the marketplace
b. if demand for the product it produces exceeds supply
c. if the needs of the marketplace are constantly shifting
d. if supply for the product it produces exceeds demand
ANS: B
The production orientation can survive in the short term under a variety of conditions;
however, if market needs change, long-term survival is difficult.
PTS: 1 REF: 4-5 OBJ: 01-2
TOP: AACSB Reflective Thinking| TB&E Model Strategy BLM: Higher Order
20. What type of orientation to marketing does a firm have if it fails to consider whether what the
firm - manufactures most efficiently also meets the needs of the marketplace?
a. customer
b. product
c. market
d. production
ANS: D
The production orientation forces a company to build whatever it builds best; that is, whatever
it has the experience and expertise in doing.
PTS: 1 REF: 4-5 OBJ: 01-2
TOP: AACSB Reflective Thinking| TB&E Model Customer BLM: Higher Order
21. Mimi Couturier’s fashion designers use computer-assisted design software to create what it
thinks women should wear. The company regularly hires industry experts to examine its
factories to find waste and inefficiencies that can be eliminated. The company has expanded
the number of products it offers for sale many times. However, for the last two years Mimi
Couturier has lost money, and it has had to lay off some of its workforce. To avoid this
occurrence in the future, what should the company do?
a. hire more retail efficiency experts to trace down any production problems
b. increase its sales force to find more potential customers for the firm
c. have someone study its target market to see what needs and wants should be met
by Mimi Couturier
d. cut prices so that its prices will be at least 10 percent below those of its
competitors
ANS: C
Mimi Couturier has been production oriented. It should develop a market orientation, which
means the firm will produce only those items needed by its target market.
PTS: 1 REF: 4-5 OBJ: 01-2
TOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Product
BLM: Higher Order

Loading page 10...

Chapter 1 – An Overview of Marketing
1-8
22. Organizations that sell products that are often unsought (such as life insurance and retirement
plans) may find themselves adopting which type of orientation?
a. sales
b. production
c. marketing
d. customer
ANS: A
Aggressive selling is sometimes used by companies that sell products their customers do not
want to buy, or do not think they need.
PTS: 1 REF: 5 OBJ: 01-2
TOP: AACSB Reflective Thinking| TB&E Model Promotion BLM: Higher Order
23. For years, Richard Branson, founder of the Virgin Group has believed in customer service.
He believes that good customer service stems from an environment that is founded on “a
chain , one that is consistent from beginning to end? ” Which idea has - Virgin Group
captured in this short phrase?
a. the societal concept
b. Maslow’s hierarchy of needs
c. the marketing concept
d. the sales orientation philosophy
ANS: C
The marketing concept justifies a company’s existence by its ability to satisfy customers.
PTS: 1 REF: 8 OBJ: 01-2
TOP: AACSB Reflective Thinking| TB&E Model Promotion BLM: Higher Order
24. Which orientation assumes people will buy more if aggressive selling techniques are used?
a. market
b. sales
c. customer
d. production
ANS: B
The sales orientation assumes aggressive selling is needed to increase demand.
PTS: 1 REF: 5 OBJ: 01-2
TOP: AACSB Reflective Thinking| TB&E Model Pricing BLM: Remember

Loading page 11...

Chapter 1 – An Overview of Marketing
1-9
25. Innovative Silversmiths creates and markets silver and turquoise jewellery, which it sells to
retailers. The company’s management believes its retail customers will stock more jewellery
if its salespeople use aggressive marketing techniques. Which type of orientation does the
company have?
a. customer
b. production
c. sales
d. market
ANS: C
Only the sales orientation assumes aggressive sales techniques will sell more product,
regardless of customer desires and needs.
PTS: 1 REF: 5 OBJ: 01-2
TOP: AACSB Reflective Thinking| TB&E Model Customer BLM: Remember
26. If a company uses a sales orientation, what would consumer complaints most likely result in?
a. a modification of the sales presentation
b. product reinvention
c. continuous market research
d. attempts to cut production costs
ANS: A
The sales orientation relies on aggressive sales techniques to fuel business.
PTS: 1 REF: 5 OBJ: 01-2
TOP: AACSB Reflective Thinking| TB&E Model Strategy BLM: Higher Order
27. Which of the following is done by a company that has a market orientation and adheres to the
marketing concept?
a. integrates all the activities of the firm to satisfy customer wants
b. focuses on company needs and wants
c. differentiates the firm’s products from its other products
d. fuels sales growth through the application of aggressive sales techniques
ANS: A
Aggressive sales techniques are part of the sales orientation and are not needed if a company
is meeting needs and wants of its customers.
PTS: 1 REF: 5-6 OBJ: 01-2
TOP: AACSB Reflective Thinking| TB&E Model Strategy| TB&E Model Product
BLM: Higher Order

Loading page 12...

Chapter 1 – An Overview of Marketing
1-10
28. Which of the following statements best describes a sales-oriented business?
a. The company develops its products to meet the needs of specific groups of people.
b. The company’s primary goal is profit through customer satisfaction.
c. The company invests the majority of its resources in promoting its products and
services.
d. The company is in business to satisfy customers’ wants and needs and deliver
superior value.
ANS: C
See Review Learning Outcome 3.
PTS: 1 REF: 7 OBJ: 01-3
TOP: AACSB Analytic| TB&E Model Customer BLM: Higher Order
29. One way to identify the orientation of a firm is to examine its primary goal. What type of
marketing management philosophy does a firm practice that seeks to achieve profitability
through sales volume?
a. societal marketing orientation
b. market orientation
c. sales orientation
d. production orientation
ANS: C PTS: 1 REF: 4-6 OBJ: 01-3
TOP: AACSB Reflective Thinking| TB&E Model Strategy BLM: Higher Order
30. Canon Computer Products has improved the efficiency and productivity of its plant, which
manufactures printing technology. For the new fiscal year, the company projects a production
increase of 25 percent, and has instructed its sales force to aggressively distribute the product.
What type of marketing management philosophy is Canon practicing?
a. sales orientation
b. production orientation
c. market orientation
d. societal marketing orientation
ANS: B
Canon has a sales orientation.
PTS: 1 REF: 4-6 OBJ: 01-3
TOP: AACSB Reflective Thinking| TB&E Model Promotion BLM: Higher Order
Jacques Torres Chocolate is a factory and retail store. Its owner is willing to try to produce
new products when his customers suggest them—such as chili-pepper-laced chocolate candy.
His only condition is that when he adds new products, his customers have the final say on
whether the product is of any value. According to Torres, “If something doesn’t move, that’s
the last time you see it.”

Loading page 13...

Chapter 1 – An Overview of Marketing
1-11
31. How does Jacques Torres Chocolate keep its customers coming back?
a. directs its chocolates to the “average customer”
b. seeks its goals primarily through the use of intensive promotion
c. has an inward focus on the organization’s needs
d. profits through customer satisfaction
ANS: D
Jacques Torres Chocolate has a market orientation.
PTS: 1 REF: 8 OBJ: 01-3
TOP: AACSB Reflective Thinking| TB&E Model Customer BLM: Higher Order
32. The manufacturer of Country Kitchen Art bowls, spoons, and cutting boards knows marketing
can make his company a success. He wants to rely solely on promotion as the technique for
attracting customers. He advertises extensively in cooking magazines, offers coupons, and
provides retailers who carry his product with attractive displays. From this information, what
sort of orientation does Country Kitchen Art have?
a. market
b. societal
c. production
d. sales
ANS: D
A sales-oriented organization views promotions as the primary tool used to achieve its goals.
PTS: 1 REF: 5 OBJ: 01-3
TOP: AACSB Reflective Thinking| TB&E Model Promotion BLM: Higher Order
33. Canon Computer Products has improved the efficiency and productivity of its plant, which
manufactures printing technology. For the new fiscal year, the company projects a production
increase of 25 percent. It has instructed its sales force to aggressively distribute and promote
its printers. The CEO is sure the market will absorb more product if the sales force is
determined and assertive. What sort of orientation does Canon appear to have?
a. market
b. production
c. sales
d. customer
ANS: C
A sales orientation is based on the belief that people will buy more goods and services if
aggressive sales techniques are used.
PTS: 1 REF: 5 OBJ: 01-2
TOP: AACSB Reflective Thinking| TB&E Model Strategy| TB&E Model Product
BLM: Higher Order

Loading page 14...

Chapter 1 – An Overview of Marketing
1-12
34. When light bulbs were first introduced, manufacturers offered one size for all light fixtures.
Today you can buy light bulbs in different shapes, wattages, and colours. Light bulbs also
differ as to how much electricity they use and how many hours of illumination they will
provide before failing. Which of the following demonstrates how light bulb manufacturers
practice the marketing concept?
a. They target only the largest customers.
b. They recognize different customer groups have different needs and wants.
c. They are sales-oriented companies instead of production-oriented companies.
d. They are companies that would state they are in the business of selling all light
bulbs.
ANS: B
One way to implement the marketing concept is to concentrate on the needs of specific groups
of customers.
PTS: 1 REF: 5-6 OBJ: 01-3
TOP: AACSB Reflective Thinking| TB&E Model Product BLM: Higher Order
35. Lululemon has become one of the nation’s largest specialty retailers by focusing on the
customer’s needs and wants. This philosophy is at the heart of which type of orientation?
a. sales
b. market
c. retail
d. production
ANS: B
A market-oriented philosophy is based on the consumer’s wants and needs, and the
organization will focus its activities on satisfying these customers by listening to them and
revising strategies as necessary.
PTS: 1 REF: 5-6 OBJ: 01-2
TOP: AACSB Reflective Thinking| TB&E Model Strategy BLM: Higher Order
36. As it evolves from a credit-card company to one with greater emphasis on electronic
payments, Visa is launching its first major rebranding campaign in 20 years. The company’s
new promotional slogan is “Life Takes Visa.” Through the use of this slogan, Visa shows how
much it wants to become an integral part of its customers’ everyday lives. Which type of
orientation is Visa using?
a. market
b. sales
c. product
d. societal
ANS: A
A market-oriented philosophy is based on consumers’ wants and needs, and the organization
will focus its activities on satisfying these customers by listening to them and revising
strategies as necessary.
PTS: 1 REF: 5-6 OBJ: 01-2
TOP: AACSB Reflective Thinking| TB&E Model Promotion BLM: Higher Order

Loading page 15...

Chapter 1 – An Overview of Marketing
1-13
37. What do companies that rely on the marketing concept and that have implemented a market
orientation strategy recognize?
a. Price is the most important variable for customers.
b. Sales depend predominantly on an aggressive sales force.
c. What the customer thinks he or she is buying is what is important.
d. Selling and marketing are essentially the same thing.
ANS: C
The perceived product and perceived value are what the customer is buying, and the
marketing concept and market orientation have endeavoured to understand those perceptions.
PTS: 1 REF: 5-6 OBJ: 01-2
TOP: AACSB Reflective Thinking| TB&E Model Customer BLM: Higher Order
38. The statement “Marketing should be introduced at the beginning rather than the end of the
production cycle and integrated into each phase of the business,” is consistent with which type
of orientation?
a. production
b. market
c. retail
d. sales
ANS: B
Understanding the competitive arena and competitors’ strengths and weaknesses is a critical
component of market orientation.
PTS: 1 REF: 5-6 OBJ: 01-2
TOP: AACSB Reflective Thinking| TB&E Model Product BLM: Higher Order
39. Minor League Baseball suffers from sluggish attendance. To attract more fans to their games,
owners often resort to gimmicks—free hot dog nights, events designed to get into the
Guinness Book of Records, and celebrity visits. Salesmen for the teams and sports store
owners try to push the sales of tickets onto local softball teams, what type of marketing
management philosophy are they practicing?
a. sales orientation
b. market orientation
c. production orientation
d. societal marketing orientation
ANS: A
The marketing concept and a market-oriented philosophy is based on the consumer’s wants
and needs, and the organization will focus its activities on satisfying these customers by
listening to them and revising strategies as necessary. They are not doing this rather they are
pushing the tickets onto customers which is a sales orientation.
PTS: 1 REF: 4-6 OBJ: 01-2
TOP: AACSB Reflective Thinking| TB&E Model Customer| TB&E Model Product
BLM: Higher Order

Loading page 16...

13 more pages available. Scroll down to load them.

Preview Mode

100%

Study Now!

XY-Copilot AI

Unlimited Access

Secure Payment

Instant Access

24/7 Support

Document Chat

Document Details

Subject

Marketing

MKTG 2, Second Canadian Edition Test Bank

Study Now!

Document Details

Related Documents

Analyzing Market Differences

Creating Good Advertising 4 Rules to Attract, Inte

Key Questions for Managing Stakeholder Relationshi

Comparing Daiso and Miniso A Comprehensive Analysi

HP Sauce vs

Comparative Analysis of Food Lion and Walmart Pric

J.crew.edited 2.edited

New Product Launch Marketing Plan

Marketting Plan For Organic Vally

Marketing Research Final Exam

Company

Explore

Study Tools