Test Bank For Contemporary Marketing, 16th Edition

Name: Test Bank For Contemporary Marketing, 16th Edition
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Author: Benjamin Fisher

Maximize your study time with Test Bank For Contemporary Marketing, 16th Edition, featuring a range of exam questions and answers for rapid review.

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Chapter 1: Marketing: The Art and Science of Satisfying Customers
TRUE/FALSE
1. Information technologies give organizations fast new ways to interact and develop long-term
relationships with their customers and suppliers.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic STA: DISC: Customer
TOP: A-Head: What Is Marketing? KEY: Bloom's: Knowledge
2. Production and marketing of goods and services are two basic functions that create utility.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic STA: DISC: Customer
TOP: A-Head: What Is Marketing? KEY: Bloom's: Knowledge
3. Form utility refers to conversion of raw materials and components into finished goods and services.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: What Is Marketing? KEY: Bloom's: Knowledge
4. An auto manufacturer creates ownership utility for its consumers by combining metal, rubber, plastic
and petroleum products.
ANS: F PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 1-1 NAT: BUSPROG: Reflective Thinking STA: DISC: Customer
TOP: A-Head: What Is Marketing? KEY: Bloom's: Application
5. 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.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: What Is Marketing? KEY: Bloom's: Knowledge
6. Buying an iPod generates ownership utility; however, buying a concert ticket does not.
ANS: F PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 1-1 NAT: BUSPROG: Reflective Thinking STA: DISC: Customer
TOP: A-Head: What Is Marketing? KEY: Bloom's: Application
7. Owen buys a car for himself. Owen has created ownership utility.
ANS: T PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 1-1 NAT: BUSPROG: Reflective thinking STA: DISC: Customer
TOP: A-Head: What Is Marketing? KEY: Bloom's: Application
8. An organization creates a customer through a three-step approach: identifying
needs in the marketplace, finding out which needs the organization can profitably serve, and
developing goods and services to convert potential buyers into customers.

ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: What Is Marketing? KEY: Bloom's: Knowledge
9. The expanded concept of marketing activities permeates all functions in businesses and not-for profit
organizations.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: What Is Marketing? KEY: Bloom's: Knowledge
10. Marketing is the organizational function that refers to all forms of selling from institutional sales to
personal selling.
ANS: F PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 1-1 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan
TOP: A-Head: What Is Marketing? KEY: Bloom's: Knowledge
11. Marketing of a product begins after it hits the shelf.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: What Is Marketing? KEY: Bloom's: Knowledge
12. The establishment of the WTO, the passage of NAFTA, and the creation of the Euro are examples of
protectionism on the part of nations concerned with increased globalization of the marketplace.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic
STA: DISC: International Perspective TOP: A-Head: What Is Marketing?
KEY: Bloom's: Knowledge
13. An exchange process is an activity in which two or more parties give something of value to each other
to satisfy perceived needs.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: What Is Marketing? KEY: Bloom's: Knowledge
14. Production orientation is a business philosophy that stresses on the importance of quantity of products
rather than the quality of products.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: What Is Marketing? KEY: Bloom's: Knowledge
15. In the sales era, firms attempted to match their output to the potential number of customers who would
want it.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: Customer
TOP: A-Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge

16. A seller’s market is one in which there are more goods and services than people willing to buy them.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge
17. The marketing era is the successive historical outcome of the production era.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge
18. The marketing era is defined by a shift in focus from products and sales to satisfying a consumer’s
needs.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: Customer
TOP: A-Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge
19. The emergence of the marketing concept can be linked to the shift from a seller’s market to a buyer’s
market.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: Customer
TOP: A-Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge
20. The advent of a strong buyer’s market created the need for consumer orientation by businesses.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge
21. The marketing concept focuses on the objective of achieving short-term profits instead of long-run
success during tough economic times.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge
22. 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.
ANS: T PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 1-2 NAT: BUSPROG: Reflective Thinking STA: DISC: Strategy
TOP: A-Head: Five Eras in the History of Marketing KEY: Bloom's: Application
23. While many firms claim to have adopted the marketing concept, there is little evidence that a strong
market orientation contributes to market success and overall performance.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: Strategy
TOP: A-Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge

24. A firm with a fully developed marketing concept is one with a company-wide consumer orientation
with the objective of achieving long-term success.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: Customer
TOP: A-Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge
25. The relationship era builds on the marketing era’s customer orientation by only focusing on
maintaining relationships with customers.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: Customer
TOP: A-Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge
26. Product-oriented rather than customer-oriented management endangers the future growth of an
organization.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-3 NAT: BUSPROG: Analytic STA: DISC: Strategy
TOP: A-Head: Avoiding Marketing Myopia KEY: Bloom's: Knowledge
27. Marketing myopia occurs when management fails to recognize the scope of its business.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-3 NAT: BUSPROG: Analytic STA: DISC: Strategy
TOP: A-Head: Avoiding Marketing Myopia KEY: Bloom's: Knowledge
28. Wesley Pvt. Ltd., can avoid marketing myopia by finding innovative ways to reach new markets with
existing goods and services.
ANS: T PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 1-3 NAT: BUSPROG: Reflective Thinking STA: DISC: Strategy
TOP: A-Head: Avoiding Marketing Myopia KEY: Bloom's: Application
29. Firms that narrowly define their organizational goals can avoid the problem of marketing myopia.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-3 NAT: BUSPROG: Analytic STA: DISC: Strategy
TOP: A-Head: Avoiding Marketing Myopia KEY: Bloom's: Knowledge
30. The private sector has an even greater array of not-for-profit organizations than the public sector.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-4 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Marketing in Not-for-Profit Organizations KEY: Bloom's: Knowledge
31. Not-for-profit organizations have numerous organizational objectives other than profitability due to
their diversity.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-4 NAT: BUSPROG: Analytic STA: DISC: Strategy
TOP: A-Head: Marketing in Not-for-Profit Organizations KEY: Bloom's: Knowledge
32. The financial bottom line refers to the limitations laid on the budgets of a firm.

ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-4 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Marketing in Not-for-Profit Organizations KEY: Bloom's: Knowledge
33. The main goal of not-for-profit organizations is to generate revenues above and beyond their costs to
make money for all stakeholders involved.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-4 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Marketing in Not-for-Profit Organizations KEY: Bloom's: Knowledge
34. An important difference between not-for-profit and for-profit organizations is that, not-for-profit
organizations cannot market tangible goods.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-4 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Marketing in Not-for-Profit Organizations KEY: Bloom's: Knowledge
35. Not-for-profit organizations are generally less concerned with the bottom line than for-profit
organizations.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-4 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Marketing in Not-for-Profit Organizations KEY: Bloom's: Knowledge
36. A service user of a not-for-profit organization has more control over the organization’s destiny than
customers of a profit-seeking firm.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-4 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Marketing in Not-for-Profit Organizations KEY: Bloom's: Knowledge
37. Not-for-profit organizations face complex decision-making issues about the correct markets to target
as they often must market to multiple publics.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-4 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Marketing in Not-for-Profit Organizations KEY: Bloom's: Knowledge
38. On account of their unselfish goals of serving society, not-for-profit organizations are not required to
have marketing objectives.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-4 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Marketing in Not-for-Profit Organizations KEY: Bloom's: Knowledge
39. The most obvious distinction between not-for-profit organizations and for-profit firms is the focus on
generating revenues above and beyond the costs.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-4 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Marketing in Not-for-Profit Organizations KEY: Bloom's: Knowledge

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40. For-profit organizations tend to focus more on their customers than not-for-profits do.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-4 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Marketing in Not-for-Profit Organizations KEY: Bloom's: Knowledge
41. Celebrities use person marketing as a way to increase their value in the marketplace.
ANS: T PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 1-5 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan
TOP: A-Head: Nontraditional Marketing KEY: Bloom's: Application
42. 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.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-5 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Nontraditional Marketing KEY: Bloom's: Knowledge
43. 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.
ANS: F PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 1-5 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan
TOP: A-Head: Nontraditional Marketing KEY: Bloom's: Application
44. A theater group promoting a performance to raise funds in the fight against cancer is an example of
both cause marketing and event marketing.
ANS: T PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 1-5 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan
TOP: A-Head: Nontraditional Marketing KEY: Bloom's: Application
45. Marketing of sporting, cultural, and recreational activities to selected target markets is known as cause
marketing.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-5 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Nontraditional Marketing KEY: Bloom's: Knowledge
46. Virtually all colleges and universities have alumni associations that publish magazines, hold reunions,
and try to raise funds. These activities constitute organization marketing.
ANS: T PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 1-5 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan
TOP: A-Head: Nontraditional Marketing KEY: Bloom's: Application
47. The traditional view of marketing can be described as transaction-based marketing.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-6 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: From Transaction-Based Marketing to Relationship Marketing
KEY: Bloom's: Knowledge

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48. According to relationship marketing, the lifetime value of a customer should exceed the investment
made by the firm to attract and keep the customer.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-6 NAT: BUSPROG: Analytic STA: DISC: Customer
TOP: A-Head: From Transaction-Based Marketing to Relationship Marketing
KEY: Bloom's: Knowledge
49. In relationship marketing, employees serve customers within an organization as well as outside it.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-6 NAT: BUSPROG: Analytic STA: DISC: Customer
TOP: A-Head: From Transaction-Based Marketing to Relationship Marketing
KEY: Bloom's: Knowledge
50. According to relationship marketing, firms must apply higher standards of customer satisfaction to
external customer relationships over intradepartmental relationships.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-6 NAT: BUSPROG: Analytic STA: DISC: Customer
TOP: A-Head: From Transaction-Based Marketing to Relationship Marketing
KEY: Bloom's: Knowledge
51. Programs that improve customer service inside a company raise productivity and staff morale,
resulting in better customer relationships outside the firm.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-6 NAT: BUSPROG: Analytic STA: DISC: Strategy
TOP: A-Head: From Transaction-Based Marketing to Relationship Marketing
KEY: Bloom's: Knowledge
52. 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.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-6 NAT: BUSPROG: Analytic STA: DISC: Customer
TOP: A-Head: From Transaction-Based Marketing to Relationship Marketing
KEY: Bloom's: Knowledge
53. Relationship building in marketing starts with excellent customer service after purchase.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-6 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: From Transaction-Based Marketing to Relationship Marketing
KEY: Bloom's: Knowledge
54. Relationship marketing tries to rebuild damaged relationships and rejuvenate unprofitable customers.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-6 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: From Transaction-Based Marketing to Relationship Marketing
KEY: Bloom's: Knowledge

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55. Interactive marketing refers to buyer-seller communication in which the customer controls the amount
and type of information received from a marketer.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-6 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: From Transaction-Based Marketing to Relationship Marketing
KEY: Bloom's: Knowledge
56. Interactive promotions put customers in control because they can gain immediate access to key
product information when they want it.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-6 NAT: BUSPROG: Analytic STA: DISC: Promotion
TOP: A-Head: From Transaction-Based Marketing to Relationship Marketing
KEY: Bloom's: Knowledge
57. Mobile marketing is a term used to describe marketing messages sent via wireless technology.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-6 NAT: BUSPROG: Analytic STA: DISC: Promotion
TOP: A-Head: From Transaction-Based Marketing to Relationship Marketing
KEY: Bloom's: Knowledge
58. Interactive marketing allows marketers and consumers to customize their communication.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-6 NAT: BUSPROG: Analytic STA: DISC: Customer
TOP: A-Head: From Transaction-Based Marketing to Relationship Marketing
KEY: Bloom's: Knowledge
59. The cost of finding new customers is far less than the cost of maintaining existing ones.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-6 NAT: BUSPROG: Analytic STA: DISC: Customer
TOP: A-Head: From Transaction-Based Marketing to Relationship Marketing
KEY: Bloom's: Knowledge
60. Compared to transaction marketing, relationship marketing relies more heavily on information
technologies.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-6 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: From Transaction-Based Marketing to Relationship Marketing
KEY: Bloom's: Knowledge
61. Firms that make the most efficient use of buzz marketing claim that it is a “one-way” approach to
building customer relationships.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-6 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: From Transaction-Based Marketing to Relationship Marketing
KEY: Bloom's: Knowledge

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62. Information technology has enhanced the effectiveness of relationship marketing by leveraging mass-
marketing campaigns.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-6 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: From Transaction-Based Marketing to Relationship Marketing
KEY: Bloom's: Knowledge
63. Buzz marketing excludes visual aspects as it does not consist of a tangible expression of an issue or
position.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-6 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: From Transaction-Based Marketing to Relationship Marketing
KEY: Bloom's: Knowledge
64. A strategic alliance is defined as a partnership between a for-profit business and a not-for-profit
organization.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-6 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: From Transaction-Based Marketing to Relationship Marketing
KEY: Bloom's: Knowledge
65. The limitation of a strategic alliance is that it eliminates competitive advantage.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-6 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: From Transaction-Based Marketing to Relationship Marketing
KEY: Bloom's: Knowledge
66. In the past, firms have viewed their suppliers as adversaries against whom they must fiercely negotiate
prices, playing one off against the other.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-6 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: From Transaction-Based Marketing to Relationship Marketing
KEY: Bloom's: Knowledge
67. Company A provides a component to Company B, which then sells it under its own brand. This is an
example of a vertical alliance.
ANS: T PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 1-6 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan
TOP: A-Head: From Transaction-Based Marketing to Relationship Marketing
KEY: Bloom's: Application
68. Product development partnerships and vertical alliances are two examples of strategic alliances.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-6 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: From Transaction-Based Marketing to Relationship Marketing
KEY: Bloom's: Knowledge

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69. On average, marketing expenses account for half of the costs involved in a product.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-7 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Costs and Functions of Marketing KEY: Bloom's: Knowledge
70. Intermediaries that operate between producers and resellers are known as wholesalers.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-7 NAT: BUSPROG: Analytic STA: DISC: Distribution
TOP: A-Head: Costs and Functions of Marketing KEY: Bloom's: Knowledge
71. Buying, selling, transporting, and storing are known as the facilitating functions of marketing because
they represent the exchange and physical distribution functions.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-7 NAT: BUSPROG: Analytic STA: DISC: Distribution
TOP: A-Head: Costs and Functions of Marketing KEY: Bloom's: Knowledge
72. The functions of marketing can be grouped into three major categories: exchange functions, physical
distribution functions, and financing functions.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-7 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Costs and Functions of Marketing KEY: Bloom's: Knowledge
73. The physical distribution functions of marketing are related to advertising, personal selling, and sales
promotion in the attempt to match products and services to consumer needs.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-7 NAT: BUSPROG: Analytic STA: DISC: Promotion
TOP: A-Head: Costs and Functions of Marketing KEY: Bloom's: Knowledge
74. Manufacturers engage in risk taking when they create goods and services based on research and their
belief that consumers need them.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-7 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Costs and Functions of Marketing KEY: Bloom's: Knowledge
75. Marketing is the indirect connection between a firm and its customers.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-7 NAT: BUSPROG: Analytic STA: DISC: Promotion
TOP: A-Head: Costs and Functions of Marketing KEY: Bloom's: Knowledge
76. Social responsibility includes marketing philosophies, policies, procedures, and actions whose primary
objective is to enhance society and protect the environment through sustainable products and practices.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-8 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: A-Head: Ethics and Social Responsibility: Doing Well by Doing Good
KEY: Bloom's: Knowledge

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77. Sustainable products are products that can be produced, used, and disposed of with minimal impact on
the environment.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-8 NAT: BUSPROG: Analytic STA: DISC: Strategy
TOP: A-Head: A-Head: Ethics and Social Responsibility: Doing Well by Doing Good
KEY: Bloom's: Knowledge
78. ARC Inc., a waste management company, expands its scope of business to recycle liquids that can be
turned into fuel-grade ethanol, demonstrating the socially responsible approach of the company.
ANS: T PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 1-8 NAT: BUSPROG: Analytic STA: DISC: Strategy
TOP: A-Head: A-Head: Ethics and Social Responsibility: Doing Well by Doing Good
KEY: Bloom's: Application
79. Electronic commerce and computer technologies have created unprecedented opportunities in business
today.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-8 NAT: BUSPROG: Analytic
STA: DISC: International Perspective
TOP: A-Head: A-Head: Ethics and Social Responsibility: Doing Well by Doing Good
KEY: Bloom's: Knowledge
MULTIPLE CHOICE
1. Noel Pvt. Ltd. combines metal, rubber, and other components in the production of appliances. In doing
so the company creates _____ utility.
a. ownership
b. form
c. place
d. time
ANS: B PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 1-1 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan
TOP: A-Head: What Is Marketing? KEY: Bloom's: Application
2. The utility of a product or service is its:
a. want-satisfying power.
b. re-usability.
c. function as a commodity.
d. design quality.
ANS: A PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: What Is Marketing? KEY: Bloom's: Knowledge
3. Fame-us is a talent hunt agency focusing on the youth looking to enter Hollywood. As part of their
marketing strategy, Fame-us generate time and place utility by:
a. creating a nationwide advertising campaign to attract applicants.
b. launching roadshows across cities and conduct talent hunts at campuses during
Thanksgiving.
c. endorsing their services using famous celebrities from Hollywood.

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d. opening a well-equipped studio with pre and post-production facilities.
ANS: B PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 1-1 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan
TOP: A-Head: What Is Marketing? KEY: Bloom's: Application
4. 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.
ANS: A PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: What Is Marketing? KEY: Bloom's: Knowledge
5. Availability of goods and services at convenient locations creates:
a. form utility.
b. time utility.
c. place utility.
d. ownership utility.
ANS: C PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: What Is Marketing? KEY: Bloom's: Knowledge
6. Creating _____ utility is the responsibility of the production function.
a. place
b. form
c. time
d. ownership
ANS: B PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: What Is Marketing? KEY: Bloom's: Knowledge
7. 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
ANS: C PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 1-1 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan
TOP: A-Head: What Is Marketing? KEY: Bloom's: Application
8. The organizational function and set of processes that creates, communicates, and delivers value to
customers and manages customer relationships in ways that benefit the organization and its
stakeholders is called _____.
a. marketing
b. financing
c. operations
d. administration
ANS: A PTS: 1 DIF: Difficulty: Easy

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OBJ: LO: 1-1 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: What Is Marketing? KEY: Bloom's: Knowledge
9. Which of the following is true regarding marketing?
a. The marketing concept emphasizes creating and maintaining short-term successful
relationships with customers and suppliers.
b. Marketing encompasses such a broad scope of activities and ideas that settling on one
definition is often difficult.
c. Marketing refers to an activity in which two or more parties give something of value to
each other to satisfy perceived needs.
d. The marketing concept is a belief that consumers will resist purchasing nonessential goods
and services.
ANS: B PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic
STA: DISC: International Perspective TOP: A-Head: What Is Marketing?
KEY: Bloom's: Knowledge
10. Which of the following statements concerning the global marketplace is true?
a. The global marketplace is diminishing because of Internet technology.
b. The global marketplace is growing because of trade agreements.
c. The global marketplace is growing due to the threat of the ability of a single nation to
manufacture, supply, and consume all that it produces.
d. The global marketplace is growing owing to the talent shortage in the home countries of
national companies.
ANS: B PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic
STA: DISC: International Perspective TOP: A-Head: What Is Marketing?
KEY: Bloom's: Knowledge
11. The marketing philosophy summarized by the phrase “a high-quality product will sell itself” is a
characteristic of the _____ era.
a. production
b. sales
c. marketing
d. relationship
ANS: A PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge
12. 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
ANS: B PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge
13. 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?

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a. Production era
b. Relationship era
c. Marketing era
d. Sales era
ANS: D PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 1-2 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan
TOP: A-Head: Five Eras in the History of Marketing KEY: Bloom's: Application
14. 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
b. marketing
c. sales
d. relationship
ANS: C PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge
15. 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.
ANS: A PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge
16. Which of the following statements regarding the marketing era is true?
a. Marketing and selling would no longer be considered synonymous terms.
b. Marketing was relegated to a supplemental role performed after the production process.
c. The marketing concept was linked to a shift from a buyer’s market to a seller’s market.
d. Business success often was defined solely in terms of production successes.
ANS: A PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge
17. A buyer’s market is characterized by:
a. more goods and services than buyers to buy them.
b. a small number of firms dominating the production of goods offered.
c. practically no competition in the marketplace.
d. a single firm producing a major share of the products or services offered.
ANS: A PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge
18. 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.

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ANS: C PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge
19. 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
ANS: C PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 1-2 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan
TOP: A-Head: Five Eras in the History of Marketing KEY: Bloom's: Application
20. 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
ANS: B PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 1-2 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan
TOP: A-Head: Five Eras in the History of Marketing KEY: Bloom's: Application
21. Which of the following is true of a company with strong market orientation?
a. It designs products with advantages and levels of quality compatible with its competitors.
b. It assumes that customers will resist purchasing nonessential goods.
c. It stresses on efficiency in producing a quality product, with the attitude toward marketing
that “a good product will sell itself.”
d. It has a focus on new-product development and the introduction of innovative products.
ANS: D PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge
22. The business philosophy incorporating the marketing concept that emphasizes first determining unmet
consumer needs and then designing a system for satisfying them is known as:
a. customer persuasion.
b. consumer orientation.
c. aggressive marketing.
d. sales orientation.
ANS: B PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-2 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
TOP: A-Head: Five Eras in the History of Marketing KEY: Bloom's: Knowledge
23. 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
ANS: C PTS: 1 DIF: Difficulty: Easy

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Test Bank For Contemporary Marketing, 16th Edition

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