Deck 2: The Market in Marketing

Question 1

Which of the following are NOT part of a company's microenvironment?

A) suppliers
B) competitors
C) governments
D) customers
E) distributors

Answer 1

C

Question 2

Employees are part of a company's ________.

A) external environment
B) internal environment
C) political environment
D) macroenvironment
E) competitive environment

Answer 2

B

Question 3

Which of the following is the most likely result when average income levels do not keep pace with inflation?

A) Utility decreases.
B) Demand increases.
C) Demand decreases.
D) Demographic shifts occur.
E) Unemployment levels go down.

Answer 3

C

Question 4

A supplier with which of the following is likely able to exert the most power over a company?

A) low prices
B) high prices
C) many competitors
D) few or no competitors
E) many customers

Question 5

The ________ buyers that are available in a market, the ________ an individual buyer is to a business.

A) fewer; less important
B) fewer; more important
C) more; more important
D) more wealthy; less important
E) more diverse; more important

Question 6

Which of the following are NOT part of a company's external environment?

A) suppliers
B) customers
C) employees
D) media outlets
E) government regulations

Question 7

Porter's Five Forces of Competitive Position Model is used to determine where power exists in a company's ________.

A) internal environment
B) business market
C) consumer market
D) microenvironment
E) macroenvironment

Question 8

Which of the following terms is used to describe the set of forces that influence the ability of a business to create value and attract and serve customers?

A) the marketing environment
B) the cultural environment
C) Porter's Five Forces
D) the target market
E) the marketing mix

Question 9

A company would most likely use the Porter analysis for which of the following?

A) to determine whether or not to expand a brand into a new market segment
B) to assess employee understanding of and commitment to company values
C) to identify shifting cultural values relevant to the company's products
D) to identify lobbying efforts with the highest likelihood of success
E) to influence social movements relevant to the company's brands

Question 10

Income levels are average ________ used to approximate national earnings.

A) business revenues
B) business profits
C) consumer savings
D) consumer earnings
E) employment levels

Question 11

________ is an increase in the price of a collection of goods that represent the overall economy.

A) Income
B) Inflation
C) Deflation
D) Utility
E) Surplus

Question 12

Most businesses focus the majority of their marketing efforts toward managing the ________.

A) legal environment
B) internal environment
C) microenvironment
D) macroenvironment
E) economic environment

Question 13

The ________ environment consists of factors that affect consumer purchase ability and buying behavior.

A) cultural
B) political
C) technological
D) economic
E) legal

Question 14

The ________ of a business is made up of all the activities that occur within the organizational functions of the business.

A) marketing environment
B) internal environment
C) microenvironment
D) macroenvironment
E) external environment

Question 15

A firm's internal environment does NOT include ________.

A) its employees
B) its internal stakeholders
C) its financial capital
D) its brands
E) elements of the legal environment

Question 16

You are directed to study the actors close to the company, yet outside its internal environment, that affect its ability to serve its customers. What are you studying?

A) the macroenvironment
B) the microenvironment
C) the political environment
D) the social and cultural environment
E) the global environment

Question 17

The unemployment level is determined by the number of unemployed persons divided by the ________.

A) total population
B) adult population
C) aggregate labor force
D) total number of employees in the private sector
E) total number of employees in the public sector

Question 18

You are directed to study the cultural, economic, technological, political, and legal factors that are larger forces affecting your company. What are you studying?

A) the macroenvironment
B) the microenvironment
C) the business market
D) the marketing mix
E) the global environment

Question 19

Which of the following is NOT one of the forces in Porter's Five Forces of Competitive Position Model?

A) bargaining power of suppliers
B) threat of substitute products
C) bargaining power of customers
D) threat of relevant regulations
E) threat of new entrants

Question 20

The implementation of marketing practices directed outside the business to create value and to form productive customer relationships is called ________.

A) internal marketing
B) external marketing
C) relationship marketing
D) social marketing
E) business marketing

Question 21

By definition, a consumer's surplus occurs when ________.

A) there are more buyers for a product than units of the product available for sale
B) there are more units of a product available for sale than buyers of the product
C) consumers purchase a product at a price greater than the utility of the product
D) consumers purchase a product at a price less than the utility of the product
E) consumers assign a lower utility to a product than marketers had expected

Question 22

In marketing terms, B2B stands for ________.

A) buyer-to-buyer
B) buyer-to-business
C) business-to-buyer
D) business-to-business
E) bank-to-business

Question 23

The U.S. Consumer Product Safety Commission and the Food and Drug Administration are most accurately characterized as part of the ________ environment.

A) economic
B) cultural
C) legal
D) technological
E) political

Question 24

The consumer market is made up of which of the following?

A) individuals who are actual or potential buyers of goods or services for personal consumption
B) households that are actual or potential buyers of goods or services for personal consumption
C) businesses that are actual or potential buyers of goods and services for use in the production of other products or services
D) A and B
E) all of the above

Question 25

By definition, the ________ environment focuses on scientific activities and innovations.

A) cultural
B) political
C) technological
D) competitive
E) legal

Question 26

By definition, a consumer product is intended to do which of the following?

A) fulfill a consumer desire
B) fulfill a business need
C) promote a brand
D) create a consumer's surplus
E) match a customer's perceived utility

Question 27

Your marketing department is currently researching the age, race, and household structures of your target market. Which environment is being researched?

A) social and cultural
B) competitive
C) economic
D) legal
E) political

Question 28

Percy Original caters to a market of individuals and households that are the end users of the company's products and services. Percy Original caters to a ________ market.

A) business
B) reseller
C) government
D) consumer
E) private

Question 29

Every consumer brand strives to be both ________ and ________.

A) widely available; low-cost
B) relevant; unique
C) unique; widely available
D) relevant; low-cost
E) low-utility; unique

Question 30

Members of which type of market buy goods and services that are used in, or in support of, the production of other products or services?

A) business
B) international
C) wholesale
D) consumer
E) retail

Question 31

As consumers age, which of the following generally happens?

A) consumption halts
B) life stages stabilize
C) income level increases
D) demand decreases
E) market diversity increases

Question 32

Which of the following is true about business marketers in comparison to consumer marketers?

A) They deal with far fewer but far larger buyers.
B) They deal with far more but far smaller buyers.
C) They deal with a less structured buying process.
D) They involve fewer individuals in the buying process.
E) They deal with the same decision buying process.

Question 33

Under which system of government is everything controlled by the government?

A) democracy
B) federal system
C) republic
D) dictatorship
E) social movement

Question 34

________ are characteristics of human population that are used to identify markets.

A) Needs
B) Demographics
C) Social movements
D) Demands
E) The Four Ps

Question 35

Marketers should be aware of laws and government regulations that influence or limit various organizations and individuals in a given society. This is most accurately described as the ________ environment.

A) legal
B) cultural
C) competitive
D) technological
E) economic

Question 36

Business legislation has been created for three basic reasons: to protect companies from each other, to protect consumers, and to ________.

A) protect the interests of society
B) regulate prices
C) increase world trade
D) regulate monopolies
E) promote social responsibility

Question 37

________ involves the sale of products and services from one business to another.

A) Distributive marketing
B) Consumer marketing
C) Customer marketing
D) Business-to-business
E) Demand marketing

Question 38

Which of the following best explains how consumers make purchase decisions in consumer markets?

A) by analyzing proposals
B) by qualifying potential sources
C) by assessing the utility of the offered product or service
D) by building relationships with suppliers
E) by searching for a consumer's surplus

Question 39

A consumer's surplus represents an advantage for ________.

A) producers
B) suppliers
C) consumers
D) marketers
E) business markets

Question 40

The ________ environment includes factors that relate to the nature, quantity, and potential actions of a company's competitors.

A) cultural
B) economic
C) legal
D) political
E) competitive

Question 41

________ for a product or service results from the demand for another product or service.

A) Cause-and-effect demand
B) Derived demand
C) Fixed demand
D) Fluctuating demand
E) Elastic demand

Question 42

In recent years, security regulations initiated by the federal government through the Transportation Safety Administration affected Southwest Airlines. These regulations are part of the ________ affecting this airline.

A) external environment
B) internal environment
C) competitive environment
D) brand strategies
E) microenvironment

Question 43

Which of the following is a consumer product?

A) salt and gravel used by cities to spread on icy roads
B) a bulk package of tissues to be separated and resold at a convenience store
C) a bag of potato chips to be eaten by an individual
D) a carton of tomatoes to be used at a restaurant
E) a set of cleaning supplies used at an office

Question 44

Worthington Farm raises chickens. For years, it has used wooden coops for hauling its poultry to market. The owner of the farm needs to buy some replacement coops and is considering buying plastic coops that are slightly more expensive than wooden ones but much easier to clean after use. This purchase of coops is an example of a ________.

A) modified rebuy
B) new task
C) straight rebuy
D) solution selling situation
E) value analysis

Question 45

Innovations is a producer of electronic circuits that power a variety of technological devices produced by other companies. Innovations sells its products to ________ markets.

A) business
B) government
C) consumer
D) internal
E) financial

Question 46

Empire Products has begun a process to find the best suppliers. Empire Products is actively engaged in which step of the buyer purchase process?

A) recognition of the problem or need
B) selection of an order routine
C) search for and qualification of potential sources
D) evaluation of proposals
E) performance feedback and evaluation

Question 47

Which of the following is NOT an example of external marketing?

A) using information from checkout scanner data to make marketing decisions
B) holding company values training sessions for employees
C) lobbying local and state governments for beneficial regulations
D) purchasing advertising in multiple media forms
E) distributing press releases about brands and company practices to media outlets

Question 48

In the generally accepted stages of the business buying process, the step following the description of the characteristics of the item and the quantity needed is the ________.

A) acquisitions of proposals
B) search for and qualification of potential sources
C) recognition of the organization's problem or need
D) determination of the characteristics of the needed item
E) selection of an order routine

Question 49

When deciding how to fulfill a purchasing need, a business would most likely find leasing the product to be the best option when ________.

A) the business has the capacity to produce the product
B) the product is expected to have rapid technological change
C) the business wants to retain a competitive uniqueness
D) the product is expected to need little servicing
E) the product is expected to undergo few changes

Question 50

You regularly purchase cleaning supplies for your custodial staff, using the same vendor and ordering relatively consistent amounts of the same products with each purchase. This is an example of a ________ situation.

A) modified rebuy
B) new task
C) straight rebuy
D) solution selling
E) value analysis

Question 51

The EPA has mandated that, in order to reduce local pollution, your printing plant switch from oil-based to water-based inks. This will require entirely new printing presses and a new printing plate technology. After carefully searching through numerous manufacturers' equipment descriptions and gathering opinions from all relevant parties related to the work, the printing plant's buying center will be ready to make this ________ purchase.

A) modified rebuy
B) new task
C) straight rebuy
D) straight task
E) situational analysis

Question 52

Which of the following is an example of a B2B transaction?

A) Maurice buys a new razor on his way home from work.
B) The amateur gardener buys a new wheelbarrow.
C) The retailer buys athletic shoes to sell in his store.
D) The professional chef bakes a birthday cake for her son.
E) Robyn's mother hires a math tutor to help Robyn pass algebra.

Question 53

Which of the following is NOT part of the business market?

A) Scott Sign Systems sells interior signs to an Alabama resort.
B) A municipal government buys chemicals for its city swimming pools.
C) Sue buys a gift for her mother.
D) A Canadian software company buys tickets to send a group of salespeople to make a presentation to a heavy equipment manufacturer in Japan.
E) Airmark sells a vinyl printing press to a manufacturer of plastic bags.

Question 54

When deciding how to fulfill a purchasing need, a business would most likely find making the product on on its own to be the best option when ________.

A) the business does not have the capacity to produce the product
B) the product is expected to have rapid technological change
C) the business wants to retain a competitive uniqueness
D) the product is expected to need frequent servicing
E) the product is expected to undergo rapid changes

Question 55

Large business purchasers usually call for detailed product specifications, written purchase orders, careful supplier searches, and formal approval. These are all examples of how the business buying process is more ________ than the consumer buying process.

A) formalized
B) creative
C) opinion-based
D) independent
E) concentrated

Question 56

The first step of the business buying process is ________.

A) general need description
B) evaluations of proposals
C) problem or need recognition
D) selection of an order routine
E) performance feedback

Question 57

In the generally accepted stages of the business buying process, the step following the recognition of the organizational problem or need is the ________.

A) acquisition and analysis of proposals
B) search for and qualification of potential sources
C) description of the characteristics of the item and quantity needed
D) determination of the characteristics of the item and quantity needed
E) performance feedback and evaluation

Question 58

A business buyer who is considering a change in product specifications, terms, and possibly suppliers is most likely in a ________ situation.

A) modified rebuy
B) new task
C) straight rebuy
D) solution selling
E) value analysis

Question 59

The group of people in an organization who participate in the procurement process is referred to as the ________.

A) buyer institution
B) buyclass
C) buying center
D) purchasing hierarchy
E) purchasing office

Question 60

Which of the following is the best example of a consumer market that is saturated with brands?

A) the gluten-free baked goods market
B) the hybrid automobile market
C) the luxury RV market
D) the hearing aid market
E) the laundry detergent market

Question 61

The threat of substitutes can reduce the power of a business.

Question 62

The microenvironment and the macroenvironment are both part of a company's external environment.

Question 63

The microenvironment consists of larger societal forces that affect a company, such as economic, political, and cultural forces.

Question 64

In general, companies are placing less emphasis on internal marketing than they have in the past.

Question 65

Marketers must increasingly consider the needs of traditional married households because this segment of the population is growing more rapidly than single-family households.

Question 66

A trucking company is considering purchasing new trucks that are powered by ethanol instead of diesel fuel. In terms of the buying center, the truck drivers who must make sure that the trucks' fuel tanks do not run out of fuel are the ________.

A) initiators
B) deciders
C) buyers
D) users
E) gatekeepers

Question 67

Consumer organizations such as environmental and minority groups that may question a company's marketing decisions are part of the political environment.

Question 68

More than one-third of the American consumer buying power comes from California, Texas, New York, and Florida.

Question 69

Refer to the scenario below to answer the following questions.
Casey Brickly opened The Landing on the north shore of Witmer Lake in 1962. With a sandwich counter on one side and a bait shop and grocery on the other, The Landing was an immediate hit with weekend lake visitors and local residents alike. In the summer, boaters parked at the piers and bought all their lake needs rods and reels, bait, fishing licenses, snacks, soft drinks at The Landing. Even during the winter months, snowmobilers and ice fishermen were lured to The Landing for a snack and hot coffee or hot chocolate.
As time passed, the business changed and grew tremendously. What was formerly a weekend tourist area gradually became a year-round residential area. Many of the houses, which were built as cottages in the 1950s and 1960s, were remodeled into year-round homes. By the end of the 1970s, the days of small motor boats and 10 mile-per-hour speed limits were gone; skiing and speed boats became all the rage. For some time, The Landing continued to attract flocks of patrons.
In the 1980s, however, Casey started to realize that the grocery area in The Landing could not compete with larger local retailers. He eventually enlarged the sandwich counter, transforming the bait shop and grocery into a restaurant with a full menu typical of any diner.
"Getting rid of the bait shop was hard to do," Casey admitted. "I still had a summer crowd that relied on us for their fishing needs, but we couldn't survive a whole year on four months of profit."
By 2005, the atmosphere of Witmer Lake and the neighboring lakes had become upscale. "I could see that people were spending more on their speed boats than what they had originally paid for their cottages!" Casey exclaimed. Many of the cottages were being inherited by children and grandchildren of the original owners. Once again, the scene started to change as many of the lake houses were used only as weekend lake homes. Unlike the previous generation, a vast number of the current owners could afford to live closer to their jobs while maintaining lake homes. "At this point, business wasn't growing," Casey said.
As local competition continued to increase, Casey converted the diner atmosphere of The Landing into a bar with a lounge area. "The change might have been too drastic," Casey said, "but it was the only way we could maintain a strong, year-round business in spite of the population shifts and competitive forces."
Which of the following macroenvironmental forces has had the greatest effect on The Landing?

A) the social and cultural environment
B) the technological environment
C) the sustainable environment
D) the political environment
E) the social responsibility environment

Question 70

Refer to the scenario below to answer the following questions.
Casey Brickly opened The Landing on the north shore of Witmer Lake in 1962. With a sandwich counter on one side and a bait shop and grocery on the other, The Landing was an immediate hit with weekend lake visitors and local residents alike. In the summer, boaters parked at the piers and bought all their lake needs rods and reels, bait, fishing licenses, snacks, soft drinks at The Landing. Even during the winter months, snowmobilers and ice fishermen were lured to The Landing for a snack and hot coffee or hot chocolate.
As time passed, the business changed and grew tremendously. What was formerly a weekend tourist area gradually became a year-round residential area. Many of the houses, which were built as cottages in the 1950s and 1960s, were remodeled into year-round homes. By the end of the 1970s, the days of small motor boats and 10 mile-per-hour speed limits were gone; skiing and speed boats became all the rage. For some time, The Landing continued to attract flocks of patrons.
In the 1980s, however, Casey started to realize that the grocery area in The Landing could not compete with larger local retailers. He eventually enlarged the sandwich counter, transforming the bait shop and grocery into a restaurant with a full menu typical of any diner.
"Getting rid of the bait shop was hard to do," Casey admitted. "I still had a summer crowd that relied on us for their fishing needs, but we couldn't survive a whole year on four months of profit."
By 2005, the atmosphere of Witmer Lake and the neighboring lakes had become upscale. "I could see that people were spending more on their speed boats than what they had originally paid for their cottages!" Casey exclaimed. Many of the cottages were being inherited by children and grandchildren of the original owners. Once again, the scene started to change as many of the lake houses were used only as weekend lake homes. Unlike the previous generation, a vast number of the current owners could afford to live closer to their jobs while maintaining lake homes. "At this point, business wasn't growing," Casey said.
As local competition continued to increase, Casey converted the diner atmosphere of The Landing into a bar with a lounge area. "The change might have been too drastic," Casey said, "but it was the only way we could maintain a strong, year-round business in spite of the population shifts and competitive forces."
Which microenvironment factors have affected The Landing the most?

A) competitors
B) suppliers
C) government agencies
D) natural environment
E) economic environment

Question 71

A business marketer normally deals with far fewer buyers than a consumer marketer does.

Question 72

Business marketers often alert customers to potential problems and then show how their products provide solutions. These marketers are hoping to influence which stage of the business purchase process?

A) description of the characteristics of the needed item
B) evaluation of proposals
C) recognition of a problem or need
D) selection of an order routine
E) performance feedback

Question 73

An increase in the unemployment level generally increases the ability of individuals to purchase products and services.

Question 74

Any change in the status of a competitor will affect the power a business is able to exert in its market and industry.

Question 75

Consumer markets are, by definition, very large.

Question 76

Marketing can influence consumers' perceptions of a product's utility.

Question 77

A consumer product may be intended for individual or business use.

Question 78

Don Brady is responsible for obtaining price quotations from various vendors. After reviewing the vendors' proposals, Don then determines whether or not to send each vendor a contract. Don apparently plays two roles in the buying center, that of ________ and ________.

A) user; buyer
B) buyer; gatekeeper
C) initiator; user
D) decider; buyer
E) gatekeeper; influencer

Question 79

The macroenvironment consists of the factors close to but not within the company that affect its ability to serve its customers.

Question 80

Marketing practices implemented within a company are considered internal marketing.