Deck 18: Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Question 1

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

Answer 1

True
Explanation: Although efforts to measure satisfaction are useful, any evaluation of macro-marketing effectiveness has to be in part subjective.

Question 2

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

Answer 2

True
Explanation: Innovative ideas lead to new investments, which contribute to economic growth and higher levels of national income and employment.

Question 3

Monopolistic competition is the result of control of markets by business, not consumer demands.

Answer 3

False
Explanation: In monopolistic competition, a number of different firms offer marketing mixes that at least some customers see as different. Consumers have choices and they exercise those choices.

Question 4

Evaluating marketing effectiveness is impossible.

Question 5

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, or lack of innovative thinking.

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 10

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 11

Using total quality management to implement marketing plans is one way to improve a marketing mix.

Question 12

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

Question 13

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

Question 14

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

Question 15

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

Question 16

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 17

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

Question 18

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

Question 19

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

Question 20

Monopolistic competition is caused by customer preferences, not business manipulation of markets.

Question 21

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

Question 22

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

Question 23

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 24

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

Question 25

A S.W.O.T. analysis is not necessary if the firm is considering entering an established market that is already served by competitors.

Question 26

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

Question 27

A good S.W.O.T. 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 28

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 29

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

Question 30

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.

Question 31

Blending the four Ps is easy since fully understanding the needs and attitudes of a target market is a straightforward process.

Question 32

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 33

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

Question 34

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

Question 35

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

Question 36

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 37

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

Question 38

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

Question 39

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 40

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 41

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 42

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

Question 43

The basic objective of the U.S. market-directed economic system is 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 44

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 try 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 alternatives is correct.

Question 45

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 46

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 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

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

Question 49

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

Question 50

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

Question 51

A 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 52

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

Question 53

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

Question 54

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

Question 55

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

Question 56

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

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

Question 57

Environmental problems pose a major hazard to society and they are a particular threat to many firms working in the environmental engineering and management industry.

Question 58

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

A) Providing everyday low prices.
B) Immediate delivery of products.
C) Offering easy financing.
D) Consumer satisfaction.
E) Making advertising memorable.

Question 59

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

Question 60

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

Question 61

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 alternatives is correct.

Question 62

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 alternatives is correct.

Question 63

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

A) too many managers seize on whatever strategy seems easiest.
B) too many managers are slow and bureaucratic.
C) too many managers jump on the "what's new" bandwagon without a strategy that ensures customer satisfaction and company profits.
D) too many managers have the mentality "that's not the way we do things."
E) All of these are reasons why micro-marketing may cost too much.

Question 64

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

A) its profit.
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

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 of these alternatives are correct.

Question 66

MICRO-marketing effectiveness can be measured by:

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 67

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 of these alternatives are correct.

Question 68

Marketing inefficiencies are due to all of the following reasons 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 the fickle customer.

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 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 71

MICRO-marketing effectiveness is ______________ to measure than MACRO-marketing effectiveness.

A) harder
B) not any easier or harder
C) easier

Question 72

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 of these alternatives are correct.

Question 73

The authors of the text contend that:

A) Both micro- and macro-marketing cost too much.
B) Neither micro- or macro-marketing costs too much.
C) Micro-marketing often does cost too much, but macro-marketing does not.
D) Micro-marketing does not cost too much, but macro-marketing does.
E) None of these alternatives is correct.

Question 74

_____ 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 75

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.

Question 76

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) Costly promotion may try to compensate for a weak marketing mix.
E) Many firms try to maximize profits.

Question 77

Measuring macro consumer satisfaction:

A) is 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 alternatives is correct.

Question 78

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 of these alternatives are correct.

Question 79

According to the text:

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

Question 80

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