Marketing 2nd Edition By Shane Hunt – Test Bank

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Description Marketing 2nd Edition By Shane Hunt – Test Bank Sample Questions Instant Download With Answers Chapter03 Test Bank 1.The political, economic, demographic, sociocultural, technological, and legal factors that affect a company’s ability to meet its marketing goals are all part of 1. external environmental factors.

2. a company’s internal forces.

3. the organizational environment.

4. a company’s demographic characteristics.

5.

E. the marketing environment.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-01 Differentiate between direct and indirect competition.

Topic: Competitive Environment Feedback: The marketing environment consists of the outside factors and forces that affect a company’s ability to meet its marketing goals. Those forces include political, economic, demographic, sociocultural, technological, and legal factors.

2.A situation in which products that perform the same function compete against one another is referred to as 1. functional competition.

2. indirect competition.

3. primary competition.

4.

D. direct competition.

5. lateral competition.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-01 Differentiate between direct and indirect competition.

Topic: Competitive Environment Feedback: Also called category competition or brand competition, direct competition is where products that perform the same function compete against one another.

3.Compare the following product offerings. Which is the best example of direct competition?

1. carpet cleaning stores and hardware stores that rent carpet cleaners 2.

B. Crest and Colgate 3. the local pizzeria and a Kentucky Fried Chicken 4.

Coca-Cola and Arizona Iced Tea 5.

Burger King and Subway AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Learning Objective: 03-01 Differentiate between direct and indirect competition.

Topic: Competitive Environment Feedback: Crest and Colgate perform the same function in that they are both Internet search engines. This fits the definition of direct competition because the products perform the same function and compete against each other.

4.Direct competition is also known as 1. market competition.

2. in-house competition.

3. lateral competition.

4. substitute product competition.

5.

E. brand competition.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-01 Differentiate between direct and indirect competition.

Topic: Competitive Environment Feedback: Direct competition, in which products that perform the same function compete against one another, is also known as category competition or brand competition.

5.Karlee needed to pick up some toothpaste from the store. She was surprised to find that the store was out of her usual brand, Crest. Rather than go to another store, she decided to buy a tube of Colgate instead. In this example, Colgate represents 1. a disposable product.

2. indirect competition.

3. an unsought good.

4. lateral competition.

5.

E. a substitute product.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 03-01 Differentiate between direct and indirect competition.

Topic: Competitive Environment Feedback: Goods and services that perform very similar functions and can be used in place of one another, such as Crest and Colgate toothpaste, are considered substitute products.

6.Indirect competition occurs when

1. consumers purchase products that they did not intend to buy.

2. consumers choose between two products that perform the same function.

3. a company introduces a new product to its product line.

4. products are marketed to a new consumer segment.

5.

E. products provide alternate solutions to the same market.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-01 Differentiate between direct and indirect competition.

Topic: Competitive Environment Feedback: Indirect competition is a process in which products provide alternative solutions to the same market.

7.Compare the following product offerings. Which is an example of indirect competition?

1.

A. Burger King and Subway 2.

Crest and Colgate toothpaste 3.

Coca-Cola and Pepsi 4.

Sirius XM radio and Pandora 5.

Dunkin’ Donuts and Krispy Kreme Doughnuts AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Learning Objective: 03-01 Differentiate between direct and indirect competition.

Topic: Competitive Environment Feedback: Indirect competition occurs when products provide alternate solutions to the same market. In this example, both Burger King and Subway are part of the same fast food market, but they provide alternate choices within that market.

8.Monitoring developments outside of the firm’s control with the goal of detecting and responding to threats and opportunities is called 1. data mining.

2. competitive analysis.

3.

C. environmental scanning.

4. market assessment.

5. brand positioning.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: External Marketing Environment Feedback: The act of monitoring developments outside of the firm’s control with the goal of detecting and responding to threats and opportunities is a process known as environmental scanning.

9.A firm that is engaged in environmental scanning is monitoring developments outside of the firm’s control in order to detect and respond to

1.

A. threats and opportunities.

2. the strengths of the firm.

3. environmental issues associated with the firm’s operations.

4. the weaknesses of the firm.

5. market opportunities associated with environmental concerns.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: External Marketing Environment Feedback: Marketing does not occur in a vacuum. Unforeseen developments external to the firm can directly impact the success of its marketing strategy. For this reason, marketing professionals continually scan and analyze the external environment to detect and respond to threats and opportunities, a process known as environmental scanning.

10.The six major external factors that influence the marketing environment of a firm are economic, demographic, sociocultural, technological, legal, and 1. domestic.

2. financial.

3. environmental.

4.

D. 5. international.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: External Marketing Environment Feedback: There are six major external factors that influence the marketing environment of a firm.

They are economic, demographic, sociocultural, technological, legal, and political.

11.A sudden drop in the average consumer income would be an example of which external force affecting the marketing environment?

1. technological 2. legal 3. sociocultural 4.

D. economic 5. political AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Economic Environment Feedback: Economic conditions impact consumer willingness and ability to buy products. A sudden drop in the average consumer income would impact how much consumers will buy.

12.A measure of the market value of all officially recognized final goods and services produced within a country in a given period is referred to as 1. the currency exchange rate.

2.

B. gross domestic product.

3. purchasing power parity.

4. the balance of trade.

5. the consumer price index.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Economic Environment Feedback: Gross domestic product (GDP) paints a simple picture of the economic health of a nation.

It refers to the market value of all officially recognized final goods and services produced within a country in a given period.

13.Overall GDP is the most common gauge of 1. fluctuations in currency exchange rates.

2. the consumer price index and purchasing power parity.

3. unemployment and future job forecasting.

4.

D. the overall expansion or contraction of an economy.

5. the balance of trade between countries.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Economic Environment Feedback: Gross domestic product (GDP) paints a simple picture of the economic health of a nation.

Overall GDP is the most common gauge of the overall expansion or contraction of an economy.

14.Which of the following is the accurate cause of a recession?

1.

The consumer price index falls below the average yearly standard.

2.

Inflation rises for two or more consecutive quarters.

3.

The unemployment rate declines for two or more consecutive quarters.

4.

Inflation and unemployment both rise consecutively.

5.

E. GDP declines for two or more consecutive quarters.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Economic Environment Feedback: A recession occurs when GDP declines for two or more consecutive quarters.

15.Compare the following statements to determine which one accurately depicts how income is distributed across the U.S. population.

1.

Income for the middle class in the United States has consistently grown faster than any other wage-earning bracket.

2.

Over the past several decades, there has been little shift in any of the wageearning brackets of the U.S. population.

3.

Over the past several decades, there has been a robust shift in the lowest wage earners moving upward to the middle class.

4.

The top wage earners of the U.S. population are earning only a small percentage of the country’s adjusted gross income.

5.

E. Over the past several decades, income for the highest wage earners grew at a much quicker pace than for households in the bottom wage-earning bracket.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Economic Environment Feedback: Data show that while income for all household segments increased, income for the highest wage earners grew at a much quicker pace than for households in the bottom wage-earning bracket.

16.Which of the following is the correct definition of inflation?

1.

the rise in the amount of goods and services that can be purchased for a specific amount of money 2. a decline in gross domestic product for two or more consecutive quarters 3.

C. an increase in the general level of prices of products in an economy over a period of time 4. the rise in the rate of unemployment due to a slowing economy 5. a decline in consumer confidence about the overall state of the economy and their own personal finances AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Economic Environment Feedback: Inflation is an increase in the general level of prices of products in an economy over a period of time.

17.Daniel is looking to buy a hybrid vehicle because he is noticing that the price of gasoline continues to rise compared to years past. The rise in the price of gasoline is most likely a result of 1. deflation.

2. a recession.

3. a rise in GDP. 4.

D. 5. an increase in purchasing power.

AACSB: Knowledge Application

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Economic Environment Feedback: Inflation is an increase in the general level of prices of products in an economy over a period of time.

18.If the cost of groceries goes up by 10 percent this year, the amount of groceries you can buy for $50 decreases by that same 10 percent. This is an example of 1.

A. a decrease in purchasing power.

2. a recession.

3. a rise in GDP. 4. a decline in GDP. 5. deflation.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Economic Environment Feedback: Purchasing power is the amount of goods and services that can be purchased for a specific amount of money. When the cost of goods goes up, purchasing power declines.

19.A measure of how optimistic consumers are about the overall state of the economy and their own personal finances is referred to as 1. market confidence.

2. purchasing confidence.

3. consumer expectations.

4.

D. consumer confidence.

5. purchasing power.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Economic Environment Feedback: The amount consumers spend is often based on their confidence in the stability of their future income. As a result, consumer confidence can provide an effective measure of the health of the economy.

20.Which of the following is not considered to be a demographic characteristic?

1. age 2. education level 3.

C. consumer confidence 4. gender

5. ethnicity AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Demographic Environment Feedback: Demographics are the characteristics of human populations that can be used to identify consumer markets. A consumer market cannot be identified by the level of consumer confidence.

21.The description of human populations based on characteristics such as age, gender, ethnicity, and education level is referred to as 1. sociocultural analysis.

2.

B. 3. statistical analysis.

4. psychographics.

5. consumer group profiling.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Demographic Environment Feedback: Demographics are the characteristics of human populations that can be used to identify consumer markets. They include such things as age, gender, ethnicity, and education level.

22.Which of the following is the fastest growing demographic group in the United States?

1. teenagers 2.

B. seniors 3. middle-aged women 4. college-age males 5. young adults AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Demographic Environment Feedback: The percentage of Americans aged 65 and older is expected to almost double over the next 50 years, making seniors the fastest growing demographic group.

23.The generation of children born between 1946 and 1964 is retiring at a rate of 10,000 per day.

What is the name of this demographic group?

1.

2.

Millennials Generation X

3.

Generation Y 4.

D. baby boomers AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Demographic Environment Feedback: Baby boomers make up the demographic group born between 1946 and 1964.

24.Marketers are particularly interested in targeting baby boomers because they typically possess which two things that marketing professionals seek?

1. higher education levels and disposable income 2. higher paying jobs and greater interest in leisure activities 3.

C. disposable income and free time 4. greater purchasing power and more consumer confidence 5. higher paying jobs and higher education levels AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Demographic Environment Feedback: Baby boomers typically possess two things that marketing professionals seek: disposable income, which is the amount of spending money available to households after paying taxes (baby boomers represent the wealthiest generation in U.S. history), and the free time to spend it.

25.The amount of spending money available to households after paying taxes is called 1. at-will income.

2. tax-free income.

3. discretionary income.

4.

D. disposable income.

5. unaccountable income.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Demographic Environment Feedback: Disposable income is the amount of spending money available to households after paying taxes.

26.A marketer that uses social media sites to engage potential customers is most likely targeting which demographic group?

1. baby Boomers 2. silent generation

3.

Generation X 4.

D. Millennials AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Demographic Environment Feedback: Millennials generally have the greatest familiarity with and most use for digital communication, social media, and other forms of technology. Marketers trying to reach this large consumer group increasingly deliver their messages using channels, like the Internet, that are most likely to be used by this market.

27.Currently, females account for what percentage of all consumer purchases in the United States?

1.

5 percent 2.

12 percent 3.

35 percent 4.

60 percent 5.

E. 85 percent AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Demographic Environment Feedback: Today women take on the role of decision maker across a large and expanding variety of products. Female consumers now account for 85 percent of all consumer purchases in the United States, including everything from cars to groceries to health care.

28.Compare the following statements and select the one that reflects your text’s assertion as to why educated consumers are prime targets for marketing strategies.

1.

Educated consumers are more willing to spend money than uneducated consumers.

2.

Educated consumers know that in order to keep the economy moving, people must spend money.

3.

Educated consumers typically have more access to various forms of media and therefore are easier to target as a consumer group.

4.

Educated consumers typically have less free time and therefore spend money on products that save them time and make their lives easier.

5.

E. Educated consumers are more likely to earn significantly more money throughout the course of their lifetime.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Demographic Environment

Feedback: Educated consumers are likely to earn significantly more money throughout the course of their lifetime and comprehend an advertiser’s message more readily, making them prime targets for marketing strategies.

29.Which ethnic group population in the United States is expected to almost double by the year 2050?

1.

A. Hispanics 2.

Asian Americans 3.

African Americans 4.

Pacific Islanders 5.

Eastern Europeans AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Demographic Environment Feedback: The ethnic composition of the U.S. population is changing rapidly. Projections indicate that by 2050 the Hispanic population in the United States will almost double to more than 127 million, representing 29 percent of the entire U.S. population.

30.The external marketing factor that refers to the combination of social and cultural factors that affect individual development is 1. human nature.

2. culturalism.

3. ethnicity.

4. demographics.

5.

E. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Sociocultural Influences Feedback: The society and culture we live in help to shape our beliefs, values, and norms, which, in turn, define our tastes and purchasing habits. Sociocultural factors are the combination of social and cultural factors that affect individual development.

31.According to your text, one of the biggest sociocultural changes in the United States over the past half century has been 1.

2.

the decline of females as the primary purchasers of products.

B. the shift from one-income families to two-income and single-parent households.

3. the gradual increase of college graduates in the workplace.

4. the increased use of the Internet for purchasing consumer products.

5. the immigration of Hispanics into the country.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Sociocultural Influences Feedback: One of the biggest sociocultural changes in the United States over the past half century has been the shift from a nation of primarily one-income families, in which one spouse stayed home to raise children, to one in which two-income families and single-parent households predominate.

32.What external marketing factor is at work when political action committees raise money to help elect individuals to promote a particular issue related to their industries?

1. economic 2. legal 3. sociocultural 4.

D. political 5. technological AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Political and Legal Environment Feedback: It has becoming increasingly possible for firms to impact politics. For example, the past two decades have seen a dramatic increase in the number and influence of political action committees (PACs). PACs have raised money to help elect individuals who regard their organization positively or to promote a particular issue related to their industry.

33.Which regulation was passed to eliminate monopolies and guarantee competition?

1.

A. the Sherman Antitrust Act (1890) 2. the Telephone Consumer Protection Act (1991) 3. the Fair Packaging and Labeling Act (1966) 4. the Robinson-Patman Act (1936) 5. the Wheeler-Lea Amendment (1938) AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Political and Legal Environment Feedback: The Sherman Antitrust Act (1890) combats anticompetitive practices, reduces market domination by individual corporations, and preserves unfettered competition as the rule of trade.

34.The consumer protection agency for the United States is the 1.

Consumer Protection Commission.

2.

B. Federal Trade Commission.

3.

Federal Communications Commission.

4.

Bureau of Consumer Financial Protection.

5.

Food and Drug Administration.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Political and Legal Environment Feedback: The Federal Trade Commission (FTC) serves as the consumer protection agency for the United States. The FTC collects complaints about organizations that violate regulations, which can lead to investigations and prosecutions.

35.What was the purpose of the Wheeler-Lea Act (1938)?

1.

A. It made deceptive and misleading advertising illegal.

2.

It eliminated monopolies and guaranteed competition.

3.

It banned unfair credit card rate increases.

4.

It guaranteed that product packages are labeled correctly.

5.

It established the Federal Trade Commission.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Political and Legal Environment Feedback: The Wheeler-Lea Act (1938) authorizes the Federal Trade Commission to restrict unfair or deceptive acts and broadened Federal Trade Commission powers to include protection of consumers from false advertising practices. It is also called the Advertising Act. 36.According to your text, of all the external factors that affect the marketing environment, which one represents the most significant challenges, as well as the most significant opportunities, for marketing professionals?

1. demographic 2. economic 3. political 4. sociocultural 5.

E. technological AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Technological Environment Feedback: Of all the external factors, rapidly evolving technology arguably represents one of the most significant challenges, as well as one of the most significant opportunities, for marketing

professionals. Technology influences how consumers satisfy their needs and wants, the basic concept underlying all marketing activities.

37.While shopping for back-to-school clothes, Josie uses apps on her smartphone to comparison shop, and to obtain coupons and fashion advice. What external factor affecting the marketing environment does this represent?

1. demographic 2. sociocultural 3. legal 4.

D. technological 5. economic AACSB: Technology Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Technological Environment Feedback: In addition to affecting how consumers use products, technology changes the way firms promote their products. The use of high quality smartphones makes it possible for marketers to know where a customer is and to communicate directly to him or her with an offer for that moment and location.

38.As described in your text, how did marketers at Disney utilize technology to provide a more hassle-free experience at their theme parks?

1.

A. by introducing wristbands with a radio-frequency identification device 2. by providing users with a park pass that could be used for their entire stay 3. by installing monitor screens showing wait times for various rides/attractions 4. by introducing a laser stamp that could be used instead of a park pass 5. by installing smartphone charging stations AACSB: Analytical Thinking AACSB: Technology Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Technological Environment Feedback: In 2013, Disney introduced MagicBands, which are wristbands enabled with a radiofrequency identification device (RFID) chip. MagicBands function as a room key and park entry pass for guests at its parks. The MagicBand can also be linked to a Walt Disney World Resort hotel guest’s hotel bill, making purchases within the parks easier and quicker.

39.Compare the following statements to determine which one is accurate regarding marketing on a global scale versus marketing domestically?

1.

The external marketing factors that are considered when marketing domestically do not apply when marketing products globally.

2.

There is no difference between how products are marketed globally versus domestically.

3.

Most U.S. firms do not need to consider the global marketing environment in any context.

4.

Small businesses are not affected by global trends like large corporations are.

5.

E. Environmental scanning on a global scale is more complex than it is in the domestic environment.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Learning Objective: 03-03 Extend the analysis of the marketing environment beyond the borders of the United States.

Topic: International Marketing Environment Feedback: In theory, the key external factors that impact a firm in the international space do not differ substantially from the domestic space. In practice, though, environmental scanning on a global scale often has added layers of complexity.

40.What term refers to how the value of one country’s currency changes in relation to the value of other currencies?

1. value fluctuation 2. currency expectation 3. currency exchange 4. value exchange 5.

E. currency fluctuation AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Extend the analysis of the marketing environment beyond the borders of the United States.

Topic: International Marketing Environment Feedback: Currency fluctuation refers to how the value of one country’s currency changes in relation to the value of other currencies. Currency fluctuation can impact how firms market products internationally.

41.The price of one country’s currency in terms of another country’s currency is referred to as 1.

A. the currency exchange rate.

2. the value fluctuation rate.

3. the currency fluctuation rate.

4. the currency expectation rate.

5. the value exchange rate.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Extend the analysis of the marketing environment beyond the borders of the United States.

Topic: International Marketing Environment

Feedback: The currency exchange rate refers to the price of one country’s currency in terms of another country’s currency.

42.Analyze the following statements to determine what would happen if the value of the euro appreciates relative to the dollar.

1.

The price of goods and services for European products would become evenly matched with American products.

2.

The spending power of both American and European consumers would increase.

3.

It would increase the spending power of American consumers seeking to buy European products.

4.

D. It would reduce the spending power of American consumers seeking to buy European products.

5.

It would reduce the spending power of European consumers seeking to buy American products.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Learning Objective: 03-03 Extend the analysis of the marketing environment beyond the borders of the United States.

Topic: International Marketing Environment Feedback: If the value of the euro appreciates relative to the dollar, it will reduce the spending power of American consumers seeking to buy European products and, in turn, American goods and services would become more affordable to European consumers.

43.What country has been criticized for undervaluing its currency?

1.

A. China 2.

United States 3.

Japan 4.

Great Britain 5.

Brazil AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Extend the analysis of the marketing environment beyond the borders of the United States.

Topic: International Marketing Environment Feedback: The world’s largest country in terms of population, China, has been criticized for undervaluing its currency, that is, pricing it lower than it is actually worth. Many nations believe this gives China an advantage in selling exports because it can price its products cheaper than other countries’ products.

44.Currency fluctuations can provide marketing opportunities 1.

2.

3.

4.

only only only only

if currency exchange rates remain stable. when a currency is appreciating. when a currency is depreciating. internationally, but not domestically.

5.

E. whether a currency is appreciating or depreciating.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-03 Extend the analysis of the marketing environment beyond the borders of the United States.

Topic: International Marketing Environment Feedback: Currency fluctuations can provide marketing opportunities whether a currency is appreciating or depreciating.

45.When marketers for Walt Disney World in Florida attract French and British families by advertising the resort’s new affordability for Europeans, what global marketing environment factor are they employing?

1. cultural fit 2.

B. currency fluctuation 3. lowered trade barriers 4. international economic cooperation 5. income distribution levels AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 03-03 Extend the analysis of the marketing environment beyond the borders of the United States.

Topic: International Marketing Environment Feedback: Currency fluctuations can provide marketing opportunities whether a currency is appreciating or depreciating. In this case, marketers are referring to appreciating rates for the euro.

46.According to your text, what provides the most reliable picture of a country’s purchasing power?

1. a high level of consumer confidence 2. a stable rate of currency fluctuation 3.

C. its income distribution 4. an appreciating currency value 5. its level of gross domestic product AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-03 Extend the analysis of the marketing environment beyond the borders of the United States.

Topic: International Marketing Environment Feedback: As noted in your text, income distribution often provides the most reliable picture of the purchasing power of a country.

47.A nation’s purchasing capability tends to increase when the proportion of 1.

2.

lower-income households increases. upper-income households increases.

3. top wage earners increases.

4. top wage earners decreases.

5.

E. middle-income households increases.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-03 Extend the analysis of the marketing environment beyond the borders of the United States.

Topic: International Marketing Environment Feedback: As noted in your text, marketers are particularly attracted to countries with a growing middle class, since a nation’s purchasing capability tends to increase as the proportion of middleincome households increases.

48.When it comes to income distribution, what income class is the marketing professional particularly attracted to?

1. the top wage earners 2. those below the poverty line 3.

C. middle-income households 4. upper-income households 5. lower-income households AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-03 Extend the analysis of the marketing environment beyond the borders of the United States.

Topic: International Marketing Environment Feedback: As noted in your text, marketers are particularly attracted to countries with a growing middle class, since a nation’s purchasing capability tends to increase as the proportion of middleincome households increases.

49.International trade agreements, monetary unions, and organizations can impact the environment in which a firm operates in all of the following ways except 1. they can facilitate the exchange of money and products across borders.

2.

B. they can make it easier to bypass regulations on economic activity.

3. they can affect how easy it is for firms to enter a foreign market.

4. they can affect what the currency exchange rate is between countries.

5. they can affect what competition firms will encounter in the domestic market.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-04 Identify the major trade agreements, monetary unions, and organizations that affect the international marketing environment.

Topic: Trade Agreements, Monetary Unions and International Organizations Feedback: Although international trade agreements, monetary unions, and organizations can impact the environment in which a firm operates in many positive ways, they cannot allow organizations to bypass regulations on economic activity.

50.NAFTA is a trade agreement between

1. the United States, Mexico, and Brazil.

2.

Brazil, China, and India.

3. the European Union and the United States.

4. the United States and China.

5.

E. the United States, Canada, and Mexico.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-04 Identify the major trade agreements, monetary unions, and organizations that affect the international marketing environment.

Topic: Trade Agreements, Monetary Unions and International Organizations Feedback: Perhaps the most familiar U.S. trade agreement is the North American Free Trade Agreement (NAFTA), which is an agreement between the United States, Canada, and Mexico.

51.The largest share of U.S. exports is to 1. the European Union.

2.

Canada and Japan.

3.

C. Canada and Mexico.

4.

China.

5.

Brazil and India.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-04 Identify the major trade agreements, monetary unions, and organizations that affect the international marketing environment.

Topic: Trade Agreements, Monetary Unions and International Organizations Feedback: Because NAFTA has made exchange among the United States, Canada and Mexico so easy, the largest share of U.S. exports is to Canada and Mexico.

52.Taxes on imports and exports between countries are called 1.

A. 2. import/export fees.

3. trade restrictions.

4. duties.

5. concessions.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-04 Identify the major trade agreements, monetary unions, and organizations that affect the international marketing environment.

Topic: Trade Agreements, Monetary Unions and International Organizations Feedback: Tariffs are taxes on imports and exports between countries.

53.What was one of the key goals of the North American Free Trade Agreement?

1.

the equalization of import/export fees

2. the establishment of trade sanctions 3.

C. the elimination of tariffs 4. the allowance of agricultural exports 5. the establishment of trade embargoes AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-04 Identify the major trade agreements, monetary unions, and organizations that affect the international marketing environment.

Topic: Trade Agreements, Monetary Unions and International Organizations Feedback: NAFTA’s implementation brought the immediate elimination of tariffs on more than onehalf of U.S. imports from Mexico and more than one-third of U.S. exports to Mexico. Within 10 years of implementation, all U.S.-Mexico tariffs were eliminated, except for some on U.S. agricultural exports to Mexico that were to be phased out within 15 years. Most U.S.-Canada trade was already free of tariffs.

54.CAFTA is a trade agreement for countries in 1.

A. Central America.

2.

Africa.

3.

Asia.

4.

Europe.

5.

North America.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-04 Identify the major trade agreements, monetary unions, and organizations that affect the international marketing environment.

Topic: Trade Agreements, Monetary Unions and International Organizations Feedback: CAFTA is a trade agreement between the Central American countries of Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua.

55.What country joined the Central America Free Trade Agreement in 2004?

1.

Mexico 2.

B. Dominican Republic 3.

Cuba 4.

United States 5.

Brazil AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-04 Identify the major trade agreements, monetary unions, and organizations that affect the international marketing environment.

Topic: Trade Agreements, Monetary Unions and International Organizations Feedback: In 2004, the Dominican Republic joined CAFTA, and the agreement was renamed Dominican Republic-Central America Free Trade Agreement (DR-CAFTA).

56.Which country belonging to the DR-CAFTA trade agreement has the largest economy?

1.

Honduras 2.

Costa Rica 3.

C. Dominican Republic 4.

El Salvador 5.

Nicaragua AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-04 Identify the major trade agreements, monetary unions, and organizations that affect the international marketing environment.

Topic: Trade Agreements, Monetary Unions and International Organizations Feedback: With the addition of the Dominican Republic, the trade group’s largest economy, the region covered by DR-CAFTA is the second-largest Latin American export market for U.S. producers behind Mexico.

57.Which of the following generated an estimated 25 percent share of the global gross domestic product, making it the largest economy in the world in 2014?

1. the Central American countries of DR-CAFTA 2. the United States 3.

C. the European Union 4.

China 5. the North American countries of NAFTA AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-04 Identify the major trade agreements, monetary unions, and organizations that affect the international marketing environment.

Topic: Trade Agreements, Monetary Unions and International Organizations Feedback: In 2014, the European Union generated an estimated 25 percent share of the global gross domestic product, making it the largest economy in the world. It is the largest exporter, the largest importer, and the biggest trading partner for several large countries, including China, India, and the United States.

58.Which of the following acronyms stands for the international organization that regulates trade among participating countries and helps importers and exporters conduct their business?

1.

NAFTA 2.

CAFTA 3.

NATO 4.

D. WTO 5.

IMF AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy

Learning Objective: 03-04 Identify the major trade agreements, monetary unions, and organizations that affect the international marketing environment.

Topic: Trade Agreements, Monetary Unions and International Organizations Feedback: The World Trade Organization (WTO) was formed in 1995 and is the only international organization dealing with the rules of trade between nations.

59.Which of the following organizations was formed in 1995, is headquartered in Geneva, Switzerland, and with its 162 members represents more than 97 percent of the world’s population?

1.

A. WTO 2.

UN 3.

NAFTA 4.

IMF 5.

NATO AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-04 Identify the major trade agreements, monetary unions, and organizations that affect the international marketing environment.

Topic: Trade Agreements, Monetary Unions and International Organizations Feedback: The World Trade Organization was officially formed on January 1, 1995. The WTO, headquartered in Geneva, Switzerland, has 162 members, representing more than 97 percent of the world’s population, and over 20 observer nations, most of which are seeking membership.

60.Consider the following activities to determine which one is not a function of the International Monetary Fund.

1.

A. regulate trade among participating countries 2. secure financial stability 3. foster international monetary cooperation 4. reduce poverty around the world 5. facilitate international trade AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Learning Objective: 03-04 Identify the major trade agreements, monetary unions, and organizations that affect the international marketing environment.

Topic: Trade Agreements, Monetary Unions and International Organizations Feedback: The IMF works to foster international monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. It is the job of the WTO to regulate trade among participating countries.

61.The International Monetary Fund was particularly important when it was first created because it helped stabilize the world’s economic system following 1.

2.

3.

4.

the breakup of the Soviet Union.

World War I. the creation of the European Union. the Great Depression.

5.

E. World War II. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-04 Identify the major trade agreements, monetary unions, and organizations that affect the international marketing environment.

Topic: International Marketing Environment Topic: Trade Agreements, Monetary Unions and International Organizations Feedback: The IMF was particularly important when it was first created because it helped stabilize the world’s economic system following World War II. 62.How many countries were members of the IMF? 1.

112 2.

210 3.

59 4.

86 5.

E. 188 AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-04 Identify the major trade agreements, monetary unions, and organizations that affect the international marketing environment.

Topic: Trade Agreements, Monetary Unions and International Organizations Feedback: Created in 1945, the IMF is governed by and accountable to the 188 countries that make up its near-global membership.

63.Which of the following represents how technology is being used in the global marketing environment?

1.

A. the use of translation programs, which allows customers to view websites in their own language 2. countries joining free trade agreements to facilitate the import and export of products 3. companies outsourcing various functions such as customer service call centers to other countries 4. corporations that directly invest in foreign countries by opening satellite facilities overseas 5. companies advertising in both domestic and international publications AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-04 Identify the major trade agreements, monetary unions, and organizations that affect the international marketing environment.

Topic: International Marketing Environment Feedback: Technology enables even small businesses to reach consumers across the globe. Tools such as Google Translate allow customers to view websites in their own language, making it easier to promote products in different countries.

64.If a domestic firm makes the mistake of believing that foreign consumers want exactly the same products that are sold in the United States, then that firm is most likely ignoring the importance of 1. consumer ethnocentrism.

2.

B. cultural fit.

3. consumer confidence.

4. environmental scanning.

5. demographics.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-04 Identify the major trade agreements, monetary unions, and organizations that affect the international marketing environment.

Topic: International Marketing Environment Feedback: A company must understand the cultural needs and wants of its foreign customers, in other words, its cultural fit. It is a mistake to assume that foreign consumers want exactly the same products that are sold in the United States.

65.What U.S. corporation was criticized when it created an in-store ad for some European stores that showed a Hindu goddess atop a ham sandwich with the caption, A snack that is sacred?

1.

A. Burger King 2.

Subway 3.

McDonald’s 4.

Denny’s 5.

Wendy’s AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-04 Identify the major trade agreements, monetary unions, and organizations that affect the international marketing environment.

Topic: International Marketing Environment Feedback: Burger King was widely criticized when it created an in-store ad for some European stores that showed a Hindu goddess atop a ham sandwich with the caption, A snack that is sacred. Many of the nearly 1 billion Hindus throughout the world, most of whom are vegetarian, were offended and protested the use of the advertisement.

66.A belief by residents of a country that it is inappropriate or immoral to purchase foreign-made goods and services is known as 1. international protectionism.

2. cultural fit.

3. sociocultural bias.

4. xenophobia.

5.

E. consumer ethnocentrism.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-04 Identify the major trade agreements, monetary unions, and organizations that affect the international marketing environment.

Topic: International Marketing Environment Feedback: Consumer ethnocentrism is a belief by residents of a country that it is inappropriate or immoral to purchase foreign-made goods and services.

67.Consider the following statements to determine which one accurately describes the concept of consumer ethnocentrism.

1.

a belief that the world’s goods and services should be distributed fairly by all nations 2. a measure of how optimistic consumers are about the overall state of the economy and their own personal finances 3.

C. a belief by residents of a country that it is inappropriate or immoral to purchase foreign-made goods or services 4. a measure of the amount of goods and services that can be purchased based on the currency exchange rate 5. a belief by residents of a country that the goods and services they produce are superior to that of other countries AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Learning Objective: 03-04 Identify the major trade agreements, monetary unions, and organizations that affect the international marketing environment.

Topic: International Marketing Environment Feedback: Consumer ethnocentrism is a belief by residents of a country that it is inappropriate or immoral to purchase foreign-made goods and services.

68.In 2003, when France refused to join the U.S. military operation in Iraq, many U.S. consumers refused to eat french fries, so clever marketers renamed them freedom fries. What obstacle were these marketers trying to overcome?

1. foreign boycott 2. cultural fit 3. xenophobia 4. sociocultural bias 5.

E. consumer ethnocentrism AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 03-04 Identify the major trade agreements, monetary unions, and organizations that affect the international marketing environment.

Topic: International Marketing Environment Feedback: In 2003, following France’s refusal to join the U.S. military operation in Iraq, many U.S. consumers refused to eat french fries, even though there was nothing French about the product.

Proactive marketers across the country looked for a clever way to resolve the issue and, for a brief time, renamed their product freedom fries.

69.What are the three sources of funding that nonprofit organizations rely on?

1.

A. grants, special events, and individual donations

2. federal funds, state funds, and individual donations 3. special events, corporate sponsorships, and individual donations 4. grants, advertising revenue, and individual donations 5. grants, federal funds, and individual donations AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-05 Describe the emerging factors that influence the nonprofit marketing environment.

Topic: Nonprofit Marketing Environment Feedback: Nonprofits primarily rely on three sources of funding: grants, special events, and individual donations. Marketing generally plays an important role in securing each.

70.Which of the following accurately describes the nonprofit competitive environment?

1.

2.

3.

Nonprofits do not see a decline in donations during economic recessions.

Nonprofit marketers are not impacted by external marketing factors.

Because they do not operate for a profit, nonprofit organizations do not need to engage in environmental scanning.

4.

D. The competitive environment for nonprofit funding has increased dramatically in recent years.

5.

The competitive environment for nonprofit funding has decreased dramatically in recent years.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-05 Describe the emerging factors that influence the nonprofit marketing environment.

Topic: Nonprofit Marketing Environment Feedback: The competitive environment for nonprofit funding has increased dramatically in recent years. In 1995, there were only 600,000 nonprofits in the United States. Today, that number is over 1.8 million and growing rapidly.

71.During the economic recession that began in December of 2007, Americans reduced their overall charitable giving by approximately 1.

50 percent.

2.

2 percent.

3.

C. 20 percent.

4.

10 percent.

5.

70 percent.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-05 Describe the emerging factors that influence the nonprofit marketing environment.

Topic: Nonprofit Marketing Environment

Feedback: During the recession that began in December of 2007, Americans reduced their overall charitable giving by over 20 percent from levels prior to the recession. The decline was far sharper than in previous economic recessions.

72.As noted in your text, from a political standpoint, which of the following was hit particularly hard due to the recession that began in late 2007?

1. the entertainment industry 2. the banking industry 3.

C. public universities 4. auto manufacturing 5. the food service industry AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-05 Describe the emerging factors that influence the nonprofit marketing environment.

Topic: Nonprofit Marketing Environment Feedback: Public universities, which receive a substantial portion of their funding from their respective state legislatures, have been hit especially hard by the economic recession that began in late 2007.

73.When marketers use Facebook to increase awareness and enhance relationships with donors, they are responding to which type of external force in the marketing environment?

1. demographics 2. sociocultural 3. economic 4. legal 5.

E. technological AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-05 Describe the emerging factors that influence the nonprofit marketing environment.

Topic: Nonprofit Marketing Environment Feedback: Many nonprofit organizations utilize new technology to increase awareness and enhance relationships with donors. The rise of social media gives nonprofit organizations substantial advantages when it comes to organizing activists, conducting charity campaigns, or simply influencing communities and stakeholders.

74.Compare the following business offerings. Which is the best example of direct competition?

1.

Pepsi and Snapple 2.

David’s Bridal and Walmart 3.

Burger King and Olive Garden 4.

Chick-fil-A and In-and-Out Burger 5.

E. Chevron and Exxon AACSB: Reflective Thinking

Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Learning Objective: 03-01 Differentiate between direct and indirect competition.

Topic: Competitive Environment Feedback: Chevron and Exon perform the same function as they are both gas stations. They also offer similar products in their stores. This fits the definition of direct competition because the two businesses perform the same functions and compete against each other in the market.

75.A major factory closed in your area, which caused a drop in the average income for the city.

Which type of external force would this be considered in the marketing environment?

1. technological 2.

B. economic 3. political 4. legal 5. sociocultural AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Economic Environment Feedback: Economic conditions impact consumer willingness and ability to buy products. A sudden drop in the average consumer income would impact how much consumers will buy.

76.When Disney seeks to attract European families by advertising specially priced tourist packages, what global marketing environment factor are they using?

1. income distribution levels 2. international economic cooperation 3. cultural fit 4.

D. currency fluctuation 5. lowered trade barriers AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 03-03 Extend the analysis of the marketing environment beyond the borders of the United States.

Topic: Economic Environment Feedback: Currency fluctuations can provide marketing opportunities whether a currency is appreciating or depreciating. In this case, marketers are referring to appreciating rates for the euro.

77.If FedEx makes the mistake of assuming that foreign consumers participate in the same type of activities as those individuals in the United States and thus only offers the same products and services in the United States to these foreign consumers, then FedEx is making a mistake concerning 1.

consumer confidence.

2. consumer ethnocentrism.

3.

C. cultural fit.

4. environmental scanning.

5. demographics.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 3 Hard Learning Objective: 03-04 Identify the major trade agreements, monetary unions, and organizations that affect the international marketing environment.

Topic: International Marketing Environment Feedback: A company must understand the cultural needs and wants of its foreign customers, in other words, its cultural fit. It is a mistake to assume that foreign consumers want exactly the same products that are sold in the United States.

78.You are shopping with a good friend. While looking at a sweater, she comments that she never buys clothes produced in China because the use of cheap overseas labour is harmful to U.S. textile workers. This type of belief is known as 1. cultural fit.

2. xenophobia.

3.

C. consumer ethnocentrism.

4. sociocultural bias.

5. international protectionism.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-04 Identify the major trade agreements, monetary unions, and organizations that affect the international marketing environment.

Topic: International Marketing Environment Feedback: Consumer ethnocentrism is a belief by residents of a country that it is inappropriate or immoral to purchase foreign-made goods and services.

79.Since the most recent election, the members in Alex’s community have felt considerably more optimistic about the shape of the economy. As a result, the members of Alex’s community have purchased more. There has likely been the result of an increase in __________.

1.

Assassination 2.

Technology 3.

Gross Domestic Product 4.

Inflation 5.

E. Consumer Confidence AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Economic Environment Feedback: Consumer confidence measures how optimistic consumers are about the overall state of the economy and their own personal finances.

80.A local non-profit has shared a video on Facebook that promotes awareness of what their organization does to help inner city children grow up and escape gang violence. This is an example of a non-profit using _______ to their advantage: 1.

Political Factors 2.

B. Technology Factors 3.

Legal Factors 4.

Socioeconomic Factors 5.

Economic Factors AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Nonprofit Marketing Environment Feedback: Many non-profits utilize technology to increase awareness and enhance relationships with donors.

81.Jordan works for a business that specializes in developing social media smartphone apps aimed towards phone users who are incredibly tech-savvy. What type of age group would likely be the optimal choice for a target market?

1.

Baby-Boomers 2.

B. Millennials 3.

Generation X 4.

Generation Z 5.

Generation Y AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Technological Environment Feedback: Millennials generally have the greatest familiarity with and most use with digital communication, social media, and other forms of technology.

82.Federal, state, and local governments enact regulations to ensure businesses are fair to each other as well as: 1.

Make sure most businesses are well funded 2.

Ensure that no business dominates market share 3.

C. Ensure that businesses don’t take advantage of consumers 4.

Ensure that consumers can’t take advantage of businesses 5.

Create profits for themselves AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium

Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Political and Legal Environment Feedback: Federal, state, and local governments enact regulations for two main purposes: 1. To ensure that businesses are fair to each other and 2. To ensure businesses don’t take advantage of consumers.

83.What racial group are marketers now paying more attention to because they represent the highest income, best educated, and fastest growing racial group in the U.S.?

1.

Hispanics 2.

African Americans 3.

C. Asian Americans 4.

Pacific Islanders 5.

Latinos AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Sociocultural Influences Feedback: Asian Americans represent the highest income, best educated, and fastest growing racial group in the U.S. 84.In a competitive environment, the situation in which products that perform the same function compete against one another is referred to as ________ competition. direct AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-01 Differentiate between direct and indirect competition.

Topic: Competitive Environment Feedback: The competitive environment includes direct competitors and indirect competitors seeking to acquire market share and profits. The most commonly discussed form of competition is direct competition, in which products that perform the same function compete against one another.

85.The fact that Home Depot and Lowe’s both cater to the home improvement segment of the marketplace by selling similar products is an example of ________ competition. direct AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 03-01 Differentiate between direct and indirect competition.

Topic: Competitive Environment

Feedback: In direct competition, products that perform the same function compete against one another. Since Home Depot and Lowe’s cater to the same segment of the marketplace by offering similar or even identical products, they would be considered direct competitors.

86._______ products are goods and services that perform very similar functions and can be used in place of one another.

Substitute AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-01 Differentiate between direct and indirect competition.

Topic: Competitive Environment Feedback: Substitute products are defined as goods and services that perform very similar functions and can be used in place of one another.

87.Instead of watching movies on cable TV, Isabel has chosen instead to subscribe to Netflix. Netflix would be considered a _______ product because it performs a similar function to cable movie stations. substitute AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 03-01 Differentiate between direct and indirect competition.

Topic: Competitive Environment Feedback: Substitute products are defined as goods and services that perform very similar functions and can be used in place of one another.

88.When products provide alternate solutions to the same market, _______ competition has occurred. indirect AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-01 Differentiate between direct and indirect competition.

Topic: Competitive Environment Feedback: Indirect competition occurs when products provide alternative solutions to the same market.

89.In the fast food market, Subway would be considered a(n) ________ competitor to burger chains such as McDonald’s and Wendy’s. indirect AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply

Difficulty: 3 Hard Learning Objective: 03-01 Differentiate between direct and indirect competition.

Topic: Competitive Environment Feedback: Subway, McDonald’s, and Wendy’s are all part of the same fast food market. However, since Subway offers an alternative to burgers, it is considered to be an indirect competitor. Wendy’s and McDonald’s are direct competitors because both offer the same product.

90.When a company monitors developments outside the control of the firm with the goal of detecting and responding to threats and opportunities, it is engaged in _______ _______. environmental scanning AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: External Marketing Environment Feedback: Marketing does not occur in a vacuum. A firm must be aware of the developments taking place outside of the firm in order to be able to detect and respond to threats and opportunities. This process is called environmental scanning.

91.There are six types of major external factors that influence the marketing environment of a firm.

They are: sociocultural, demographic, technological, political, legal, and ________. economic AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: External Marketing Environment Feedback: The external factors that affect the marketing environment of a firm are: economic, demographic, technological, political, legal, and sociocultural.

92._____ _____ _____is a measure of the market value of all officially recognized final goods and services produced within a country in a given

Chapter 05 Test Bank 1.The organizational activity that links the consumer, customer, and public to the marketer through information is known as 1.

2.

3.

4.

5.

integrative marketing. marketing evaluation.

C. marketing research. market analysis. the scientific method.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-01 Explain the importance of marketing research to firms and individuals.

Topic: Marketing Research Feedback: Marketing research is an organizational activity that links the consumer, customer, and public to the marketer through information. The organization uses that information to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.

2.John works for a consumer products company. His job is to use information to identify and define marketing opportunities, evaluate marketing actions, and monitor marketing performance. John’s work involves 1. consumer behavior.

2.

B. marketing research.

3. product analysis.

4. demand analysis.

5. sales tracking.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-01 Explain the importance of marketing research to firms and individuals.

Topic: Marketing Research Feedback: Marketing research is an organizational activity that links the consumer, customer, and public to the marketer through information. The organization uses that information to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.

3.Organizations transform raw data into actionable intelligence through the systematic process of 1.

A. marketing research.

2. exploratory research.

3. sampling.

4. neuromarketing.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-01 Explain the importance of marketing research to firms and individuals.

Topic: Marketing Research Feedback: Even though many organizations in this information age are data rich, they still can miss useful insights due to the complexity of human behavior. It is through the systematic process of marketing research that organizations transform raw data into actionable intelligence.

4.What is used to estimate how much customer demand there is for a particular product and understand the factors that drive it?

1. expenditure control 2. advertising effectiveness studies 3.

C. demand analysis 4. sales tracking 5. sales forecasting AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-01 Explain the importance of marketing research to firms and individuals.

Topic: Marketing Research Feedback: Pricing requires analysis of the size of the potential market and the effects of price changes on demand. This information comes from demand analysis.

5.________ is based on research that estimates how much of a product will sell over a given period of time.

1.

Sales tracking 2.

Demand analysis 3.

Marketing effectiveness 4.

Promotion evaluation 5.

E. Sales forecasting AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-01 Explain the importance of marketing research to firms and individuals.

Topic: Sales Forecasting Feedback: This is the definition of sales forecasting.

6.Which tool would allow a manager to estimate how much of a product will sell in a three-month period?

1.

A. sales forecasting 2. sales tracking 3. demand analysis 4. promotion evaluation 5. advertising effectiveness study AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-01 Explain the importance of marketing research to firms and individuals.

Topic: Marketing Research

Feedback: Sales forecasting is a form of research that estimates how much of a product will sell over a given period of time.

7.Which studies measure how well an advertising campaign meets marketing objectives like increasing market share, generating consumer awareness of a product, or creating a favorable impression of the products?

1. sales forecasting 2.

B. advertising effectiveness 3. demand analysis 4. promotion evaluation 5. sales tracking AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-01 Explain the importance of marketing research to firms and individuals.

Topic: Marketing Research Feedback: Firms use advertising effectiveness studies to measure how well advertising campaigns are meeting marketing objectives.

8.Jason just completed an advertising campaign for a new dog shampoo, and he wants to know if it generated consumer awareness. What method should he use to evaluate it?

1. demand analysis 2. promotion evaluation 3.

C. advertising effectiveness study 4. sales forecasting AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-01 Explain the importance of marketing research to firms and individuals.

Topic: Marketing Research Feedback: Firms use advertising effectiveness studies to gauge how well advertising and promotional campaigns are working.

9.Which tool looks at changes in sales during and after promotional programs to see how the marketing efforts affected company sales?

1. promotion evaluation 2. advertising effectiveness 3. demand analysis 4. sales forecasting 5.

E. sales tracking AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy

Learning Objective: 05-01 Explain the importance of marketing research to firms and individuals.

Topic: Marketing Research Feedback: Sales tracking is a type of research that follows changes in sales during and after promotional programs to see how the marketing efforts affected company sales.

10.Which term describes both the growth in information that inundates businesses each day and the complex tools used to analyze the data and derive meaningful insights?

1. predictive modeling 2.

B. big data 3. data support system 4. information overload 5. marketing information system AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-02 Describe the various types of marketing information systems and the sources of their information.

Topic: Managing Market Information Feedback: Big data is a term that describes both the growth in information that inundates businesses each day and the complex tools used to analyze the data and derive meaningful insights.

11.According to your text, both structured and unstructured information is growing exponentially with regard to 1.

A. volume, velocity, and variety.

2. speed, structure, and sentiment.

3. delivery and directness.

4. quality and quantity.

AACSB: Technology Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-02 Describe the various types of marketing information systems and the sources of their information.

Topic: Managing Market Information Feedback: The lower costs associated with e-commerce have increased the overall volume of data to be managed; e-commerce have increased the velocity with which data enters organizations; and data management has been made more complex by the variety of data formats.

12.Collectively, the people, technologies, and procedures aimed at supplying an organization’s marketing information needs are called 1. a data support system.

2. a marketing database.

3.

C. a marketing information system.

4. an information capture system.

5. a data warehouse.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-02 Describe the various types of marketing information systems and the sources of their information.

Topic: Managing Market Information Feedback: This is the definition of a marketing information system.

13.In a marketing information system (MIS), data flows through the organization from internal company data, competitive intelligence, and 1.

A. marketing research.

2. mathematical modeling.

3. statistical models.

4. customer insights.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-02 Describe the various types of marketing information systems and the sources of their information.

Topic: Managing Market Information Feedback: MIS acts as a filter by systematically screening out desired information from the various streams of data that flow through the organization. These streams include: internal company data, competitive intelligence, and marketing research.

14.What is a DSS? 1. a dated statistical source 2. a delegated sampling system 3.

C. a decision support system 4. a desired sampling segmentation 5. a damaged sample situation AACSB: Technology Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-02 Describe the various types of marketing information systems and the sources of their information.

Topic: Managing Market Information Feedback: DSS stands for decision support system.

15.Which of the following would you use if you were tasked with reviewing company data in order to look for trends in sales, identify problems with elements of the marketing mix, and provide quick feedback to managers concerning proposed marketing plans?

1.

A. a decision support system 2. a behavioral targeting system 3. a demand analysis 4. ethnographic research 5. competitive intelligence AACSB: Technology

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-02 Describe the various types of marketing information systems and the sources of their information.

Topic: Managing Market Information Feedback: A decision support system (DSS) enables timely access and use of the information a company collects. A DSS enables marketers to manipulate and organize data in a useful way, look for trends in sales, identify problems with elements of the marketing mix, and provide quick feedback to managers concerning proposed marketing plans.

16.The use of statistical techniques and algorithms based on patterns of past behavior to predict future buying behavior is called 1. demand analysis.

2.

B. predictive modeling.

3. competitive intelligence.

4. ethnographic research.

5. machine learning.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-02 Describe the various types of marketing information systems and the sources of their information.

Topic: Managing Market Information Feedback: Predictive modeling uses statistical techniques and algorithms based on patterns of past behavior to predict future unknown events, such as future buying behavior.

17.Using science, statistics, and computer coding to make predictions based on patterns discovered in data is the idea behind 1. ethnographic research.

2.

B. machine learning.

3. competitive intelligence.

4. predictive modeling.

5. demand analysis.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-02 Describe the various types of marketing information systems and the sources of their information.

Topic: Managing Market Information Feedback: Machine learning is a discipline combining science, statistics, and computer coding to make predictions based on patterns discovered in data.

18.Which of the following has the ability to crunch large amounts of structured and unstructured data, taking the guesswork out of various marketing tasks in order to identify messages that are more likely to be well received?

1. ethnographic research 2. predictive modeling 3. competitive intelligence 4.

D. machine learning 5. demand analysis AACSB: Technology Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-02 Describe the various types of marketing information systems and the sources of their information.

Topic: Managing Market Information Feedback: Machine learning can help marketers in a variety of ways. For instance, one big challenge marketers face is how to personalize communications and promotional offers to individuals so that they resonate with the recipient. Machine-learning applications can take a great deal of the guesswork out of this task: They crunch large amounts of structured and unstructured data to identify messaging and offers that are more likely to be well received.

19.The largest source of information that flows through an organization comes from 1. predictive models.

2.

B. internal company data.

3. external company data.

4. competitive intelligence.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-02 Describe the various types of marketing information systems and the sources of their information.

Topic: Managing Market Information Feedback: Internal company data such as sales records, accounting and finance information, or sales force reports are perhaps the largest source of information flowing through any organization.

20.Company sales records, customer support records, and sales force reports are all forms of 1.

A. internal company data.

2. competitive intelligence.

3. external company data.

4. predictive models.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-02 Describe the various types of marketing information systems and the sources of their information.

Topic: Managing Market Information Feedback: Internal company data include company sales records, customer support records, accounting and finance information, sales force reports, and operation and supply chain management information.

21.Gathering data about what competitors are doing in the marketplace is 1. usage studies.

2. user research.

3. trending.

4. data mining.

5.

E. competitive intelligence.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-02 Describe the various types of marketing information systems and the sources of their information.

Topic: Competitive Intelligence Feedback: Competitive intelligence involves systematically gathering data about what strategies direct and indirect competitors are pursuing in terms of new product development and the marketing mix.

22.Breen wanted to know if her main rival in the personalized dog clothing business was increasing its prices. She talked to her rival’s distributors, her suppliers, and some of her customers to get this information. Breen was engaging in 1.

A. competitive intelligence.

2. trending.

3. user research.

4. data mining.

5. usage studies.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-02 Describe the various types of marketing information systems and the sources of their information.

Topic: Competitive Intelligence Feedback: Breen was engaging in competitive intelligence by gathering data about what strategies her competition might be engaging in.

23.There are many ways in which a company can obtain information about its competitors. Which of the following is not one of them?

1. talking to distributors and suppliers 2.

B. using neuromarketing techniques on its employees 3. attending conferences or trade shows 4. viewing competitors’ social media sites 5. analyzing data on government agency websites AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-02 Describe the various types of marketing information systems and the sources of their information.

Topic: Competitive Intelligence Feedback: Neuromarketing seeks to understand consumer responses to different kinds of marketing stimuli. It is not a technique used to gain competitor information.

24.Hiring people to tap phone lines or place surveillance cameras on the premises of rival companies are examples of ___________ competitive intelligence practices.

1.

A. unethical 2. acceptable 3. practical 4. borderline 5. standard AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-02 Describe the various types of marketing information systems and the sources of their information.

Topic: Competitive Intelligence Feedback: These are unethical and illegal practices.

25.The first step in the marketing research process is 1. data analysis.

2. data collection.

3. taking action.

4. plan development.

5.

E. problem definition.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: A systematic approach to marketing research follows a five-step process: (1) problem definition, (2) plan development, (3) data collection, (4) data analysis, and (5) taking action.

26.Which step in the marketing research process includes setting specific, measurable research objectives?

1. data collection 2. plan development 3. taking action 4. data analysis 5.

E. problem definition AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium

Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: The problem definition step includes setting research objectives that represent what the firm seeks to gain by conducting the research.

27.Research plan development is also sometimes called 1. objective development.

2.

B. research design.

3. goal development.

4. strategic path.

5. situation analysis.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: Research plan development, sometimes called research design, involves specifying what information is needed, determining what type of research techniques may be used to acquire it, and presenting this research plan to management.

28.Which type of research seeks to discover new insights that will help the firm better understand the problem or consumer thoughts, needs, and behavior?

1. analytic 2. causal 3. predictive 4. descriptive 5.

E. exploratory AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: This is the definition of exploratory research.

29.The owner of Tools by Joe has hired a company to help him find out whether customers and potential customers would prefer to shop in his store or online. What type of research would this company be conducting?

1. analytic 2. exploratory 3. predictive 4.

D. descriptive 5. causal AACSB: Knowledge Application Accessibility: Keyboard Navigation

Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: Descriptive research seeks to understand consumer behavior by answering the questions who, what, when, where, and how. Asking about customers’ preferences for where they prefer to shop would be descriptive research.

30.To find out what scent consumers prefer for a new floor cleaner, the researcher conducts a focus group and exposes the participants to several scents, asking them which one they would buy. Select the type of research being conducted.

1. analytic 2. predictive 3.

C. causal 4. exploratory 5. descriptive AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: Causal research is used to understand the cause-and-effect relationships among variables.

31.The generic term used to describe a measurement device such as a survey, test, or questionnaire is the 1. research plan.

2.

B. research instrument.

3. research objective.

4. data mechanism.

5. data outline.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: The research instrument is a generic term used to describe a measurement device such as a survey, test, or questionnaire.

32.When designing a research study, what two things do marketing researchers hope their measures achieve?

1.

2.

3.

variety and subjectivity objectivity and simplicity quantity and quality

4.

D. reliability and validity AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: In designing studies, marketing researchers try to ensure that the selected measures exhibit adequate reliability and validity.

33.Carla decided to pretest her survey questions to make sure they would be interpreted by the participants in the way she wanted. Carla was concerned with 1. consistency.

2.

B. 3. accuracy.

4. targeting.

5. reliability.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: Validity concerns how well the data measure what the researcher intended to measure. It can be of concern when questions are poorly worded.

34.In order to develop a plan for marketing his new vitamin water, Rashid decides to conduct focus groups with members of fitness centers. This type of research is considered to be 1. secondary data.

2. user data.

3. target data.

4.

D. primary data.

5. demographic data.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Primary Data Feedback: Primary data are collected specifically for the research problem at hand.

35.Information collected for alternative purposes prior to the study is referred to as 1.

2.

3.

4.

primary data.

B. secondary data. target data. specific data.

5. alternative data.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Secondary Data Feedback: Secondary data are information collected for alternative purposes prior to the study.

36.Which of the following would be considered secondary data for research on how to improve the sales of an existing product?

1. product sales figures 2. interviews with prospective users about the product 3. recent survey results about how consumers use the product 4. feedback from sales reps on the product 5.

E. data from the Census Bureau website AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Secondary Data Feedback: Secondary data are collected for purposes other than answering the specific research questions. In this case, only the Census Bureau information would qualify as secondary data.

37.A group of consumers is given various types of cleaning products and is asked to use the product for six months. During that time, the consumers are to record in a journal their level of satisfaction with each product, noting what they liked and/or disliked about each. This is an example of 1. scanner data.

2. focus data.

3.

C. panel data.

4. target research.

5. observation research.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Secondary Data Feedback: Panel data are information gathered from a group (or panel) of consumers over a period of time. In return for payment, the panelists may be asked to do things like keep a diary of recent purchases or rate the level of their satisfaction with various retail and service providers.

38.Data obtained from UPC codes at check-out counters is what type of data?

1.

panel data

2.

B. scanner data 3. big data 4. focus data 5. field data AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Secondary Data Feedback: Scanner data are obtained from scanner readings of UPC codes at check-out counters.

39.Which of the following is not a qualitative method for data collection?

1. depth interviews 2. ethnographic research 3. focus groups 4. observation research 5.

E. experiments AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Primary Data Feedback: Qualitative methods include focus groups, depth interviews, ethnographic research, and observation research. Quantitative methods include surveys and experiments.

40.GM wanted to know what features were used the most in their new cars, so they invited 10 people who owned GM cars to sit in a room with a moderator and answer questions. This is an example of 1.

A. a focus group.

2. an interview.

3. secondary research.

4. an experiment.

5. snowballing.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Primary Data Feedback: A focus group is a form of primary data collection in which a moderator conducts a discussion with 8–12 people on a topic.

41.Review the following and choose the one that is NOT a characteristic of an interview.

1.

2.

3.

one participant at a time one person asking questions C. quantitative method

4. time-consuming 5. open-ended questions AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Primary Data Feedback: Interviews are categorized as a qualitativemethod, not a quantitativemethod.

42.Which data collection method uses techniques from the field of anthropology in order to study consumer behavior?

1.

A. ethnographic research 2. neuromarketing 3. causal research 4. exploratory research 5. depth interviews AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Primary Data Feedback: Ethnographic research is a data collection method that sends trained observers to watch and interact with a subject population in their natural environment. Ethnographic research draws on techniques from the field of anthropology.

43.What is the term for observing the behavior of online communities that have been organized around a particular consumer interest?

1. creeping 2. digital anthropology 3. e-watch D.netnography 1.

I-observation AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Primary Data Feedback: This is the definition of a form of qualitative research called netnography.

44.What allows researchers to see how people behave and record behaviors that are relevant to the research objective?

1.

2.

a focus group secondary research

3. a survey 4.

D. observation research 5. an interview AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Primary Data Feedback: Observation research involves watching how people behave.

45.Jayla and Stuart are trained researchers. They visit restaurants posing as customers in order to assess the level of service, quality of food, and competence of the wait staff. Jayla and Stuart are called 1. mobile researchers.

2. casual observers.

3. focus groups.

4.

D. mystery shoppers.

5. behavioral targets.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Primary Data Feedback: Mystery shoppers are trained researchers hired to pose as customers in order to gather information about the physical appearance or customer-service attributes of a store. A mystery shopper might report on the neatness of the shelves, cleanliness of bathrooms, and amount of time it takes to receive service.

46.”Cookies” that are placed on consumers’ browsers in order to trace which websites they visited are a form of 1. panel data.

2. snowball sampling.

C.behavioral targeting.

1. scanner data.

2. mystery shopping.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Primary Data Feedback: Behavioral targeting is a data collection method that utilizes a variety of technologies to anonymously track and compile individual consumer behaviors. Cookies placed on consumers’ browsers are a type of behavioral targeting.

47.Which of the following is a form of quantitative research that can be used to measure consumer attitudes, intended behavior, and the motivations behind behavior?

1. mathematical models 2. experiments 3. focus groups 4.

D. surveys 5. observational studies AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-02 Describe the various types of marketing information systems and the sources of their information.

Topic: Marketing Research Process Feedback: Surveys are a data collection tool that poses a sequence of questions to respondents to help determine consumer attitudes, intended behavior, and the motivations behind behavior.

48.An experiment that is performed in a natural setting, like a mall or someone’s home, is called 1. informal research.

2. a passive experiment.

3. neuromarketing.

4. formal research.

5.

E. a field experiment.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Primary Data Feedback: Field experiments are studies that examine the impact of an intervention in the real world.

Researchers perform field experiments in natural settings like stores or malls.

49.Jane wants to know what percentage of freshmen at her college purchase clothing with college logos. She decides to randomly interview 10 people from each of the dorms and ask them. These people are her 1.

A. 2. bases.

3. targets.

4. quotas.

5. dependent variables.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process

Feedback: A sample is a representative subset of the larger population (in this case, freshmen at her school).

50.What type of sampling occurs when every person in the target population has a chance of being selected, and the probability of each person being selected is known?

1. quota 2. preferred 3. nonprobability 4.

D. probability 5. snowball AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: This is the definition of probability sampling.

51.Bart wanted to know how often freshman boys at his school drank alcohol, but he couldn’t survey every one of them. Bart decided that in order to give all freshman boys an equal chance of being selected to participate in his mini-study, he would visit the dorms at dinnertime and ask them to choose numbers out of a hat. The ones with the number 5 were given a quick three-question survey.

Bart is demonstrating 1. nonprobability sampling.

2. biased sampling.

3. equal opportunity sampling.

4.

D. simple random sampling.

5. snowball sampling.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: Simple random sampling is a type of sampling in which everyone in the target population has an equal chance of being selected.

52.Quota sampling is a type of ________ sampling.

1. preferred 2. random 3. probability 4. snowball 5.

E. nonprobability AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium

Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: In quota sampling, a firm chooses participants based on certain selection criteria. This is a form of nonprobability sampling.

53.Select the scenario that is using snowball sampling.

1.

All of the students taking American Government were asked how they were going to vote.

2.

Jason ran an ad in the local newspaper asking for people to participate in marketing research.

3.

C. After Sasha completed the survey, she recommended her friend to the surveyor because they both liked the same cereal.

4.

Maria stopped every other person coming out of the store and asked them to complete a questionnaire.

5.

A firm decides to poll people in the mall who are between the ages of 25 and 45 to ask about their cell phone usage.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: Snowball sampling involves selecting participants based on the referral of other participants who know they have some knowledge of the subject in question.

54.Nadine is sitting outside the grocery store and recording what people do with their shopping carts after emptying them. She is gathering information on customer behaviors in order to determine how to make it easier for them to shop at this particular store. Nadine is in which step of the marketing research process?

1. taking action 2.

B. data collection 3. plan development 4. problem definition 5. data analysis AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: The third step of the marketing research process is data collection, which Nadine is doing.

55.When a marketing researcher converts the information obtained from qualitative research, such as focus groups and surveys, into a form that can be used to solve a marketing problem, what step in the marketing research process is taking place?

1. reporting 2. taking action 3. data collection 4. problem solving 5.

E. data analysis AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: Data analysis occurs in step 4 of the marketing research process, and converts data into information the firm can use to solve the marketing problem originally identified.

56.All of the following are reasons qualitative data analysis can be challenging and misleading except 1.

A. responses to closed-ended questions can include subtleties that a marketer might miss.

2. interviews can be directed in a way that takes participants away from what they were thinking and toward what the researcher wants to hear.

3. sample sizes can be small and therefore may not represent the general population of the target market.

4. marketers could misunderstand the feedback of respondents.

5. researchers may allow their own bias to influence their interpretation.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: Responses to open-ended questions can include subtleties that a marketer might miss.

57.The fifth and final step of the marketing research process is 1. peer review.

2. implementation.

3. analyzing outcomes.

4. evaluation.

5.

E. taking action.

AACSB: Communication Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: The marketing research process ends with taking action, including a written summary and recommendations.

58.Nick is summarizing his research findings and writing a report to share with his team. What step in the marketing research process is Nick in?

1.

A. taking action 2. peer review 3. implementation 4. analyzing outcomes 5. evaluation AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: Nick is in the fifth stage of the process, called taking action.

59.Written reports of research findings should include ________, such as an inadequate sample size.

1. mistakes 2. outliers 3. disclaimers 4. caveats 5.

E. limitations AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: Limitations could include a variety of things, including inadequate sample sizes and samples that do not adequately represent the population under study.

60.According to the text, the marketing research report should allow the marketing manager to 1. finalize the research and move on to the next product.

2. determine what additional research is needed.

3.

C. solve the marketing problem.

4. move on to the next step in the marketing research process.

5. demonstrate professionalism and competency.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: Solving the marketing problem is the ultimate goal of the marketing research.

61.What technique is being employed when data and research results are presented in a pictorial or graphical format?

1.

A. data visualization 2. predictive modeling 3. data optimization 4. heat mapping AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: Data visualization is the presentation of data and research results in pictorial or graphical format.

62.Which of the following statements about Chinese consumers is generally true?

1.

Chinese consumers tend to not buy luxury products 2.

Chinese consumers are not price sensitive 3.

C. Chinese consumers tend to be very conscientious about saving money 4.

Chinese consumers prefer to pay by credit card 5.

Chinese consumers are more willing to pay more for products that are consumed in private than in public AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-04 Explain the importance of research to firms marketing products globally.

Topic: Global Marketing Research Feedback: Chinese consumers are typically very conscientious about saving money.

63.A good way for most U.S. companies to learn about consumer behavior in other regions of the world is to 1.

A. use local marketing research companies in other countries.

2. generalize from U.S. marketing research.

3. take advantage of the wealth of secondary data that are available.

4. conduct global marketing research in the United States.

5. visit the country and get to know its people.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-04 Explain the importance of research to firms marketing products globally.

Topic: Global Marketing Research Feedback: Not all firms are familiar with international data sources and may not be equipped to use them even if they are aware of them. The absence of good secondary data in foreign countries increases the difficulties facing global marketing researchers. A good way for a company to learn

about consumer behavior in other regions is to use local marketing research companies, where available.

64.When doing international research, secondary data 1.

A. should be managed by local marketing research companies.

2. takes precedence over primary data.

3. is readily available on the Internet.

4. is best conducted in the home country of the company to ensure accuracy.

5. should be avoided.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-04 Explain the importance of research to firms marketing products globally.

Topic: Global Marketing Research Feedback: Local marketing research companies can assist in collecting secondary data from sources that may be unfamiliar to a foreign company.

65.In global marketing research, what kind of information is best acquired from secondary data?

1. sales of a company’s own products in a foreign country 2. information about products being sold by a competitor 3.

C. restrictions on the importing of products such as quotas or tariffs 4. prices being charged for a product by a competitor 5. promotional activities of competitors AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-04 Explain the importance of research to firms marketing products globally.

Topic: Global Marketing Research Feedback: Restrictions on the importing of products, such as quotas or tariffs, may be obtained through secondary sources, such as trade reports and websites, specific to the country being researched.

66.The largest change in online research over the last decade has come from 1.

Internet-related neuromarketing techniques.

2.

B. user-generated content associated with social media.

3. company-sponsored websites.

4. traditional sources of secondary data found online.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-05 Describe the latest trends in marketing research, including the use of social media for research, mobile marketing research, and neuromarketing techniques.

Topic: Trends in Marketing Research Feedback: Over the last decade, the largest change in online research has come from the everincreasing volume of user-generated content associated with social media.

67.Which of the following techniques focuses on listening to customers rather than asking them questions?

1. heat mapping 2. data visualization 3. bee swarming 4.

D. blog mining AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-05 Describe the latest trends in marketing research, including the use of social media for research, mobile marketing research, and neuromarketing techniques.

Topic: Trends in Marketing Research Feedback: Blog mining involves using automated tools to find and extract information found on the web about a brand and then using specialized software to analyze and make sense of these large amounts of text-based data. Blog mining techniques listen to customers rather than ask them questions.

68.The form of mobile marketing research in which participants allow applications on their mobile devices to gather information about them is referred to as 1. snowball sampling.

2. blog mining.

3. machine learning.

4.

D. passive data collection.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-05 Describe the latest trends in marketing research, including the use of social media for research, mobile marketing research, and neuromarketing techniques.

Topic: Trends in Marketing Research Feedback: When participants allow applications on their mobile devices to gather information about them or their environment, it is referred to as passive data collection.

69.Which neuromarketing technique looks for active areas in the brain by measuring the amount of oxygenated blood flowing through the body?

1.

EEG 2.

B. fMRI 3. eye tracking 4. heat mapping AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-05 Describe the latest trends in marketing research, including the use of social media for research, mobile marketing research, and neuromarketing techniques.

Topic: Trends in Marketing Research Feedback: fMRI works on the principle that the more active an area is in the brain, the more energy it consumes. fMRI machines measure the amount of oxygenated blood flowing through the body.

70.Consider the following statements to determine which is not true regarding electroencephalography (EEG) scans.

1.

There is no temporal delay in EEG response.

2.

EEG scans look for patterns of electrical activity in the cortex region of the brain.

3.

EEG scans have the ability to match up data from other sensors.

4.

EEG scans are much less expensive than fMRI scans.

5.

E. EEG scans measure the amount of oxygenated blood flowing through the brain.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Learning Objective: 05-05 Describe the latest trends in marketing research, including the use of social media for research, mobile marketing research, and neuromarketing techniques.

Topic: Trends in Marketing Research Feedback: fMRI machines measure the amount of oxygenated blood flowing through the body; EEG scans study electrical activity in the brain.

71.By using infrared/near-infrared light, which technology allows researchers to directly measure how consumers allocate their attention to various marketing and nonmarketing stimuli in their environment?

1. fMRI scans 2.

B. eye tracking 3.

EEG scans 4. facial coding AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-05 Describe the latest trends in marketing research, including the use of social media for research, mobile marketing research, and neuromarketing techniques.

Topic: Trends in Marketing Research Feedback: Eye-tracking technologies enable researchers to directly measure how consumers allocate their attention to various marketing and nonmarketing stimuli in their environment. The most commonly used approaches to tracking eye movement work by emitting infrared/near-infrared (IR/NIR) light toward the subject’s face.

72.Heat maps and bee swarms are associated with which neuromarketing technique?

1.

EEG scans 2.

B. eye tracking 3. fMRI scans 4. facial coding AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-05 Describe the latest trends in marketing research, including the use of social media for research, mobile marketing research, and neuromarketing techniques.

Topic: Trends in Marketing Research Feedback: Eye-tracking results are visualized through the use of heat maps and bee swarms.

73.As part of his work, Dr. Paul Ekman developed a program that would allow trained psychologists and law-enforcement, military, and national security personnel to detect deception by focusing on changes in facial 1. large body movements.

2. language variations.

C.microexpressions.

1. verbal responses.

2. action codes.

AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-05 Describe the latest trends in marketing research, including the use of social media for research, mobile marketing research, and neuromarketing techniques.

Topic: Trends in Marketing Research Feedback: Microexpressions are small, split-second changes in facial muscle movements that allow trained professionals to detect deception.

74.One concern about using social media, like Twitter, to compile marketing research data is 1. bias.

2. high cost.

3. lack of availability.

4.

D. consumer privacy.

5. lack of accuracy.

AACSB: Ethics Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-06 Discuss the main ethical issues in conducting marketing research.

Topic: Ethical Issues in Marketing Research Feedback: There is enough concern in the marketing industry about consumer privacy that many companies now have chief privacy officers who serve as watchdogs, guarding against unethical practices in their collection of consumer data.

75.What federal agency is evaluating mobile tracking technology as part of its ongoing mission to protect consumer privacy?

1.

Federal Consumer Commission 2.

Consumer Protection Bureau 3.

Federal Consumer Protection Agency 4.

D. Federal Trade Commission 5.

Bureau of Consumer Financial Protection AACSB: Ethics Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-06 Discuss the main ethical issues in conducting marketing research.

Topic: Ethical Issues in Marketing Research Feedback: The agency is the FTC (Federal Trade Commission). It is trying to determine how far a company can go in tracking personal information before it invades customer privacy and becomes unethical.

76.The American Marketing Association has established these to ensure that marketing firms do not return findings favorable to the client or arrive at a conclusion predetermined by the client.

1.

A. ethical standards 2. penalties 3. minimum expectations 4. rules and regulations 5. laws AACSB: Ethics Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-06 Discuss the main ethical issues in conducting marketing research.

Topic: Ethical Issues in Marketing Research Feedback: The American Marketing Association and other organizations have established ethical standards for conducting research.

77.Ethical standards are important to the marketing research industry because they help gain the trust of consumers. Without that trust, 1. the cost of research will increase.

2. the cost of research will decrease.

3. research results will be suspect.

4. companies will cease to do research.

5.

E. individuals will be less willing to participate in research.

AACSB: Ethics Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-06 Discuss the main ethical issues in conducting marketing research.

Topic: Ethical Issues in Marketing Research Feedback: If ethical guidelines are not established and followed, it will be very difficult to find people to participate in research studies.

78.Jenny works for the Baltimore Orioles in the ticket sales department. Her company currently uses a database to store information on individual customers’ past purchase. She is presently working with this data to build a projection of Oriole ticket sales for the upcoming season. Jenny is currently using what type of statistical analysis?

1. ethnographic research.

2. competitive intelligence.

3. demand analysis.

4.

D. predictive modeling.

5. machine learning.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-02 Describe the various types of marketing information systems and the sources of their information.

Topic: Managing Market Information Feedback: Predictive modeling uses statistical techniques and algorithms based on patterns of past behavior to predict future unknown events, such as future buying behavior.

79.Hannah is a new sales representative within your company and has asked you for help. She wants to know what a customer has ordered in the past to help here customize her sales proposal.

Where would you recommend she look?

1. customer support records.

2. accounting and finance information.

3. operations information.

4. supply chain information.

5.

E. a company’s sales records.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-02 Describe the various types of marketing information systems and the sources of their information.

Topic: Managing Market Information Feedback: A company’s sales records: details on consumer characteristics, what they ordered, how much they ordered, when they ordered, whether they used coupons, and so forth.

80.Avery works for Proctor and Gamble as a market researcher in the United States. P&G is interested in launching a new line of shampoo in India and has asked her to look into doing research to support this decision. Since Avery is not familiar with the language or the culture, what should she do?

1.

2.

3.

access the company’s big data. collect secondary data.

C. hire a local market research firm.

4. perform a demand analysis.

5. perform causal research.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-04 Explain the importance of research to firms marketing products globally.

Topic: Global Marketing Research Feedback: A good way for a company to learn about consumer behavior in other regions is to use local marketing research companies, where available. These firms recognize potential problems with collecting primary data, such as higher costs, potential language barriers, and the lack of a technical infrastructure (e.g., working phone numbers or valid e-mail addresses) to reach respondents.

81.Steve is conducting market research for a large pharmaceutical company. During discussions with study participants they are concerned about who will see their response. What should Steve discuss with the participants in order to help ease their concerns?

1. companies will cease to do research.

2. how the company performs data visualization.

3.

C. the company’s ethical guidelines.

4. individuals will be less willing to participate in research.

5. research results will be suspect.

AACSB: Ethics Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-06 Discuss the main ethical issues in conducting marketing research.

Topic: Ethical Issues in Marketing Research Feedback: If ethical guidelines are not established and followed, it will be very difficult to find people to participate in research studies.

82.Elliott is a consultant working on a research project for a client. His research has uncovered findings that are counter to what his customer was expecting. These ethical dilemma could potentially lead Elliott to do what?

1. perform quantitative analysis.

2. realize the research results are suspect.

3.

C. fail to report his findings.

4. review the company’s ethical guidelines.

5. perform qualitative analysis.

AACSB: Ethics Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-06 Discuss the main ethical issues in conducting marketing research.

Topic: Ethical Issues in Marketing Research Feedback: Another ethical issue in marketing research is the misuse of research methods and findings. Marketing research firms may be compelled by their clients to return findings favorable to the client or to arrive at a conclusion predetermined by the client.

83.You work for a marketing research company and have been assigned to lead a new research project. Your team has specified the main objectives of the research project and has identified potentially relevant contextual factors. What else do you and your colleagues need to do before developing a research plan?

1. conduct a pretest 2.

B. define the consumer population of interest 3. determine the best research design 4. gather primary data 5. determine the hypotheses AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: The first step of the research process, defining the problem, has three components: 1.

Specify the research objectives: What questions will the research seek to answer? 2. Define the consumer population of interest: What characteristics define the consumer population(s) of interest?

3. Identify relevant contextual factors: What features of the organization’s internal or external environment potentially influence the situation? (p. 153-154).

84.Your company wants to conduct an exploratory study to gain new insights into some product changes you are considering. Which type of research method would be most appropriate for this exploratory study?

1.

A. conducting a focus group 2. using eye tracking technology 3. creating a causal model 4. running an experiment 5. collecting a survey AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: For exploratory studies that seek to discover new insights, qualitative research techniques are typically utilized. Focus group was the only qualitative technique listed.

85.Greg is conducting a survey regarding consumer social media usage. He wants to make sure that he has respondents from all generations (i.e. Baby Boomers, Millennials) to compare his results.

Which sampling method would ensure he receives the right number of participants from each generation?

1.

2.

3.

4.

simple random sampling probability sampling C. quota sampling snowball sampling

5. generic sampling AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: Quota sampling is a form of nonprobability sampling in which the firm chooses a certain number of participants based on selection criteria such as demographics (e.g., race, age, or gender).

86.When visualizing eye tracking results through heat maps, which of the following is true: 1.

A. warmer colors show where there are higher levels of attention 2. larger clusters of dots indicate greater importance 3. bright colors show where the most important information is located 4. cool colors show where there are higher levels of attention 5. white space on the ad shows where attention levels are high AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-05 Describe the latest trends in marketing research, including the use of social media for research, mobile marketing research, and neuromarketing techniques.

Topic: Trends in Marketing Research Feedback: Heat maps are colored regions overlaid on an image that are the most frequently offered eye- tracking output. The maps are usually color-coded so that the warmer the color, the higher the levels of attention to that area.

87.______ ______ is an organizational activity that links the consumer, customer, and public to the marketer through information.

Marketing research AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-01 Explain the importance of marketing research to firms and individuals.

Topic: Marketing Research Feedback: The organizational activity that links the consumer, customer, and public to the marketer through information is marketing research.

88.The four Ps of marketing are product, price, place, and ______. promotion AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy

Learning Objective: 05-01 Explain the importance of marketing research to firms and individuals.

Topic: Marketing Research Feedback: Marketing research clearly impacts a business in terms of the four Ps: product, price, place, and promotion.

89.Sales ______ follows changes in sales during and after promotional programs to see how the marketing efforts affected the sales of the product. tracking AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-01 Explain the importance of marketing research to firms and individuals.

Topic: Marketing Research Feedback: This is sales tracking. Marketing professionals use the results of this research to adjust where and how they apply promotional efforts.

90.Volume, velocity, and variety are three elements associated with ______ ______. big data AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-02 Describe the various types of marketing information systems and the sources of their information.

Topic: Managing Market Information Feedback: Big data is a term that describes both the growth in information that inundates businesses each day and the complex tools used to analyze the data and derive meaningful insights. Three aspects of big data are volume, velocity, and variety.

91.One of the hottest forms of predictive analysis seeks to determine which individuals would be most likely to be positively persuaded by a campaign. This model is called ______ modeling. uplift or persuasion AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-02 Describe the various types of marketing information systems and the sources of their information.

Topic: Managing Market Information Feedback: Uplift modeling, or persuasion modeling, is one of the hottest forms of predictive analytics. It creates models that predict which individuals will most likely be positively persuaded by a campaign.

92.One benefit of ______ ______is that it can provide a firm with foreknowledge of a competitor’s upcoming promotions or products, allowing it to respond in a way that blunts the effects of these actions.

competitive intelligence AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-02 Describe the various types of marketing information systems and the sources of their information.

Topic: Competitive Intelligence Feedback: This is a benefit of competitive intelligence.

93.If a company wanted to determine whether people preferred to shop in person or online, it would need to conduct ________ research. descriptive AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-03 Describe the five-step marketing research process, including types of data produced and research methods used.

Topic: Marketing Research Process Feedback: Descriptive research seeks to understand consumer behavior by answering the questions who, what, when, where, and how.