Deck 19: Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Question 1

Monopolistic competition may result in high costs,and therefore it does not do a good job of serving consumers the way they want to be served.

Answer 1

False
Explanation: Monopolistic competition is sometimes accompanied by high prices for new products.But consumers have choices.They don't have to buy the new product unless they think it is a better value.The old products are still available,and their prices usually drop to meet the new competition.

Question 2

There are many reasons for business failures,including products that do not create value in the eyes of the customer,improperly identifying the target market,and lack of innovative thinking.

Answer 2

True
Explanation: Factors that lead to business failures are products that don't create value in the eyes of the customer,an inability of firms to identify new target markets,and a lack of innovative ideas.

Question 3

When evaluating marketing,it is best to evaluate micro-marketing and macro-marketing separately.

Answer 3

True
Explanation: When evaluating marketing,we must treat each of these levels (micro-marketing and macro-marketing)separately.

Question 4

Consumer satisfaction at the micro level cannot be measured because firms cannot determine how well their products satisfy customers.

Question 5

A firm that fails to offer a new marketing mix stands to bear the high cost of missed opportunities.

Question 6

Evaluating marketing effectiveness is impossible.

Question 7

Micro-marketing often costs too much because many firms improperly blend the Four Ps and misunderstand both their customers and the market environment that affects their operation.

Question 8

The fact that many firms are too production-oriented and inefficient is one reason so many new products fail.

Question 9

Making sure that the benefits a customer receives from a marketing mix exceed the customer's costs of obtaining those benefits is one way to gain a competitive advantage.

Question 10

Micro-marketing efforts help the economy grow by stimulating innovation.

Question 11

Looking at the "average" satisfaction of a whole society does not provide a complete picture for evaluating macro-marketing effectiveness.

Question 12

Advertising is probably the most criticized of all micro-marketing activities.

Question 13

At the macro level,consumer satisfaction is difficult to measure and interpret,so any evaluation is in part subjective.

Question 14

At the macro level,consumer satisfaction can easily and objectively be measured using practical economic methods.

Question 15

Evaluating marketing effectiveness of an individual firm is difficult,but not impossible.

Question 16

In the United States,the basic objective of our market-directed economic system has been to satisfy consumer needs as they,the consumers,see them.

Question 17

Thanks to much publicity,the marketing concept is now practiced by all firms.

Question 18

The American Customer Satisfaction Index makes it possible to track changes in consumer satisfaction measures over time and even allows comparison among countries.

Question 19

According to the text,micro-marketing does not cost too much in the United States,but macro-marketing often does cost too much.

Question 20

In the United States,the aim of the economic system has been to satisfy consumers' needs as they-the consumers-see them.

Question 21

Advertising can increase demand for a product,resulting in economies of scale in manufacturing,distribution,and sales.

Question 22

The text argues that international competition will actually improve macro-marketing systems worldwide.

Question 23

Good marketing managers put themselves in the customer's position.

Question 24

A good marketing plan will work well throughout the different stages of the product life cycle.

Question 25

Careful analysis helps a manager focus on a strategy that takes advantages of the firm's opportunities and strengths while avoiding its weaknesses and threats to its success.

Question 26

The Four Ps must be creatively blended so that each decision must work well with all the others to make a logical whole.

Question 27

People have always been materialistic,even in the most primitive societies.

Question 28

A marketing manager who is willing to spend enough on persuasive promotion can usually get consumers to buy anything the company chooses to produce.

Question 29

The job of integrating the Four Ps strategy decisions is the responsibility of the company controller,since the money to do so must be available.

Question 30

S.W.O.T.analysis is based on the idea that one of the best ways to develop a strategy is to identify and copy the marketing "strategies,weapons,outlook,and tactics" of the firm's most effective competitor.

Question 31

A marketing plan should contain specific information like costs and sales forecasts,but not background information about customers,competitors,or the company's resources.

Question 32

The letters in "S.W.O.T.analysis" are an abbreviation for the first letters of the words in "special weapons or tactics."

Question 33

The letters in "S.W.O.T.analysis" are an abbreviation for the first letters of the words "strengths,weaknesses,opportunities,and threats."

Question 34

The text argues that the plight of the homeless is a result of the forces of market competition in our market-directed economies.

Question 35

According to the text,the proper function of marketing is to persuade consumers to buy what firms want to sell.

Question 36

Firms can manipulate consumers to buy anything the company chooses to produce.

Question 37

A firm usually has more different strategy possibilities than it can pursue,so it must use screening criteria to help eliminate those strategies not well-suited to the firm.

Question 38

A marketing plan usually spells out the time schedule for a marketing strategy as well as the time-related details.

Question 39

A good business manager should adhere to the idea "if it ain't broke,don't fix it."

Question 40

A S.W.O.T.analysis identifies the "special weapons or tactics" used by the competitor in a product-market that has the most profitable marketing mix.

Question 41

According to a survey of workers,almost half admit to taking some type of unethical or illegal action in the recent past.

Question 42

Marketers need to work harder and smarter at finding ways to satisfy consumer needs without sacrificing the environment.

Question 43

The legal environment sets the maximum standards of ethical behavior in a society.

Question 44

Measuring consumer satisfaction at the macro level

A)is actually easy-just add up all the marketing mixes.
B)is difficult because consumer satisfaction depends on the level of consumer aspiration.
C)must be done quantitatively.
D)uses MIS techniques.
E)None of these answers is correct.

Question 45

One of the disadvantages of a market-directed economic system is that it does not operate automatically and requires careful government oversight.

Question 46

Consumers have a responsibility to preserve an effective macro-marketing system.

Question 47

Consumers-as well as business firms-should behave in a more socially responsible manner to improve the performance of our macro-marketing system.

Question 48

A market-directed economic system implies that

A)society lacks both political and economic freedom.
B)people have political freedom,but economic objectives are determined by the government.
C)political freedom and economic freedom go hand in hand.
D)the needs of consumers are not part of marketing objectives.
E)very little importance is attached to customer satisfaction.

Question 49

The cost of environmental damage is now a measured cost of most firms that is passed along to consumers.

Question 50

What is the basic objective of the U.S.market-directed economic system?

A)providing everyday low prices
B)immediate delivery of products
C)offering easy financing
D)consumer satisfaction
E)making advertising memorable

Question 51

Given the nature of marketing-and the kinds of criticism it typically gets-marketing should be evaluated

A)at both the micro level and the macro level.
B)mainly at the macro level.
C)mainly at the micro level.
D)None of these answers is correct.

Question 52

In the United States,the basic objective of the market-directed economic system has been to

A)ensure the survival of business firms.
B)find a reasonable balance between consumer satisfaction and business profits.
C)reduce the cost of marketing activities.
D)satisfy consumer needs as the consumers themselves see them.
E)satisfy consumer needs as seen by marketing managers.

Question 53

When evaluating the effectiveness of the macro-marketing systems of different countries,

A)the evaluation should be limited to basic economic objectives,which are common across countries.
B)the best approach is to see if firms are making a profit.
C)it doesn't make sense to compare the effectiveness of systems for different nations that have different objectives.
D)the evaluation should be based on how well each system satisfies consumers' needs as they-the consumers-see them.
E)None of these answers is correct.

Question 54

One measure of overall consumer satisfaction in the United States,created by researchers at the University Michigan and called the ________,is based on the results of regular interviews with thousands of customers.

A)Index of Consumer Confidence
B)United States Customer Satisfaction Index
C)American Customer Satisfaction Index
D)Survey of Consumer Sentiment
E)Gallup Poll

Question 55

The legal environment sets the minimum standards of ethical behavior in a society.

Question 56

Given the U.S.economy's basic objective,the best measure of the effectiveness of the U.S.macro-marketing system is

A)GDP growth.
B)the equality of income distribution.
C)how efficiently resources are used.
D)how many new products are introduced.
E)the level of consumer satisfaction.

Question 57

In measuring consumer satisfaction,marketing managers should remember that

A)customer satisfaction is a highly personal concept.
B)consumer expectations and aspirations tend to remain the same over time.
C)looking at the average level of satisfaction for a whole society provides a precise description of macro-marketing effectiveness.
D)evaluations of macro-marketing effectiveness are purely objective,in that they are based on tabulated survey results.
E)All these answers are correct.

Question 58

The basic objective of the U.S.market-directed economic system is to

A)minimize inflation.
B)satisfy consumer needs as they-the consumers--see them.
C)provide each person with an equal share of the economic output.
D)achieve an annual growth rate of at least 10 percent.
E)make the most efficient use of the country's resources.

Question 59

Given the American economy's basic objective of meeting consumers' needs as they-the consumers-see them,it is sensible to evaluate our macro-marketing system in terms of

A)the level of consumer satisfaction.
B)how efficiently our resources are used.
C)the value of the inputs to the system.
D)our standard of living,as measured by GNI.
E)total business profits.

Question 60

Technology is making it harder to abuse consumers' rights to privacy.

Question 61

According to the text,

A)macro-marketing costs too much in the United States,given the current objective of the economy.
B)marketing never costs too much.
C)micro-marketing often costs too much.
D)micro-marketing always costs too much.
E)all macro-marketing systems cost too much.

Question 62

Which of the following does NOT support the idea that "micro-marketing often does cost too much"?

A)Many firms focus exclusively on their own internal problems.
B)Distribution channels may be selected on the basis of personal preferences.
C)Product planners frequently develop "me-too" products.
D)Many managers adopt the easiest strategy rather than seeking new ways to satisfy customers.
E)Many firms try to maximize profits.

Question 63

In a market-directed system,

A)the emphasis lies in optimizing the rate of production.
B)the government decides what products should be produced to meet the people's needs.
C)firms do not rely on customer satisfaction,as it is impossible to measure.
D)customer satisfaction has very little importance.
E)it is up to each customer to decide how effectively individual firms satisfy his or her needs.

Question 64

Satisfaction with a firm's marketing efforts can be roughly measured by assessing

A)its profits.
B)the firm's impact on the macro-marketing system.
C)the size of its target markets.
D)its marketing mix.
E)None of these are good measurements.

Question 65

Comment cards are generally used to measure

A)customer satisfaction.
B)product perishability.
C)employee productivity.
D)advertisement TRPs.

Question 66

Marketing inefficiencies are due to all of the following EXCEPT

A)lack of interest in the customer.
B)improper blending of the Four Ps.
C)lack of understanding of the market environment.
D)listening too closely to the "voice of the customer."
E)lack of understanding of customers' sometimes fickle nature.

Question 67

The authors of the text contend that

A)both micro-marketing and macro-marketing cost too much.
B)neither micro-marketing nor macro-marketing cost too much.
C)micro-marketing often costs too much,but macro-marketing does not.
D)micro-marketing does not cost too much,but macro-marketing does.
E)None of these answers is correct.

Question 68

Micro-marketing effectiveness can be measured by assessing

A)the profits of business firms.
B)the opinions of intermediaries.
C)consumer complaints.
D)attitude research studies.
E)All of these are good measurements for micro-marketing.

Question 69

According to the text,

A)both micro-marketing and macro-marketing usually cost too much.
B)neither micro-marketing nor macro-marketing costs too much.
C)macro-marketing costs too much in the United States.
D)micro-marketing frequently costs too much.

Question 70

A study revealed that when consumers are dissatisfied with a product or an individual business,

A)most of their complaints are fully resolved-if they are just reported.
B)a majority of their complaints are never reported.
C)a marketing manager should just ignore most complaints because they are the result of dealing with consumers.
D)All these answers are correct.

Question 71

When evaluating macro-marketing,

A)the evaluation is necessarily subjective.
B)the best approach is to consider the profit generated by individual firms within the overall system.
C)one must determine how efficiently the society's resources are used.
D)one must consider each individual firm's role in the marketing system.
E)All these answers are correct.

Question 72

________ can be used as a rough measure of a firm's efficiency in satisfying customers.

A)Production
B)The marketing mix
C)Profits
D)Macro-marketing
E)Returns

Question 73

In the U.S.market-directed system,it is up to each ________ to decide how effectively individual firms satisfy the consumer's needs.

A)market research consultant
B)customer
C)manufacturer
D)advertising agency
E)salesperson

Question 74

Consumer satisfaction

A)is a highly reliable standard for evaluating macro-marketing effectiveness.
B)is easy to measure because it is a highly personal concept.
C)is the objective of all macro-marketing systems.
D)depends on consumers' level of expectation.
E)None of these answers is correct.

Question 75

Macro-marketing

A)is probably best evaluated by how individual consumer-citizens vote.
B)can be evaluated with quantitative measures of consumer satisfaction.
C)is concerned with how efficiently individual companies use their resources.
D)is easier to evaluate than micro-marketing.
E)None of these answers is correct.

Question 76

Which of the following statements is true?

A)Research shows that many customers are not satisfied and feel that some companies do not deliver on their promises.
B)Research shows that most customers are somewhat satisfied and feel that companies usually deliver on their promises.
C)Research shows that most customers are satisfied and feel that companies deliver on their promises.
D)None of these answers is correct.

Question 77

According to the text,micro-marketing may cost too much because too many managers

A)seize on whatever strategy seems easiest.
B)are slow and bureaucratic.
C)jump on the "what's new" bandwagon without a strategy that ensures customer satisfaction and company profits.
D)have the mentality of "that's not the way we do things."
E)All these answers are correct.

Question 78

Alia was satisfied with the old television that she had owned for years.But after watching a few shows on her friend's big,flat-screen,HD television,she felt that she should buy a newer model for herself.Which of the following limitations of measuring macro-marketing effectiveness does this illustrate?

A)Customer satisfaction is easy to measure by means of a survey or a poll.
B)Customer satisfaction depends on and is relative to individual aspirations.
C)Customer satisfaction remains unchanged even when levels of expectation rise.
D)The American Customer Satisfaction Index provides an accurate measure of satisfaction.
E)The average level of customer satisfaction provides a complete picture for evaluating macro-marketing effectiveness.

Question 79

A marketing manager should

A)know that most consumer complaints do not require a response because the consumer's dissatisfaction is beyond the control of the firm.
B)recognize that many consumers who complain are trouble makers and that not much can or should be done about their complaints.
C)assume that most customers who are dissatisfied will complain,but that people who are satisfied will be silent.
D)be concerned that many of the complaints that are reported are never resolved.
E)recognize that a "complaint" box isn't needed if the firm is really market-oriented in the first place.

Question 80

A national restaurant chain encourages its customers to use its website as a means of providing comments about their experiences at the chain's locations.This website is one way of measuring

A)macro-marketing effectiveness.
B)the effectiveness of competition.
C)employee empowerment.
D)micro-marketing effectiveness.
E)All these answers are correct.