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Multiple Choice Questions And Answers
FIRST Exam
‫النسخة المعدلة لعام‬
2016-2017
‫ابراهيم يوسف السلمان‬
Ibrahim Y Al-salman
Founder of Marketing House
‫ألقروب االكاديمي لقسم التسويق‬

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‫تتوفر نسخ السكند والفاينال بالمكتبات اطلبوها باسم " ابراهيم السلمان‬
Chapter 1—Customer-Driven Strategic Marketing

Chapter 1
1 When you go to the supermarket and purchase toothpaste produced by Procter & Gamble
(P&G), you are an
example of P&G's:
a. suppliers .
b. customers .
c. producers .
d. stockholders .
e. CRMs .
correct: b
feedback:. You are part of a group that is the focal point of all marketing activities (page 3).
2- When companies concentrate on satisfying a specific group of consumers, who are these
individuals?
a. Product center
b. Strategic mission
c. Target market
d. Focus group
e. Profit center
correct: c
feedback:. This is a specific group of customers on whom an organization focuses its marketing efforts
(page 4).
3 -A mixed-breed puppy that is available for adoption at a local animal shelter is an example of
that shelter's:
a. CRM .
b. target market .
c. goods .
d. services .
e. ideas
.correct: c
feedback:. A puppy is a physical entity you can touch (page 5
4- When Commerce Bank of St. Louis adds 20 ATM machines at key locations in the city to make it
easier for its customers to withdraw cash 24 hours a day, this is an example of Commerce Bank's:
a. service .
b. goods .
c. ideas .
d. marketing mix .
correct: a
feedback:. This is an example of an application of mechanical efforts to people to provide intangible
benefits to customers (page 5).
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5- When the national organization MADD (Mothers Against Drunk Driving) runs an ad in Sports
Illustrated to convey its concerns about the safety of driving and
drinking alcohol, this is an example of MADD's:
a. product .
b. service .
c. benchmark .
d. empowerment .
e. ideas
correct: e
feedback:. This is an example of a philosophy or an issue conveyed by MADD (page 5).
6- When Dell Computer sells more than 90 percent of its computers in the U.S. over the
Internet, the Internet represents which aspect of the marketing mix?
a. Product
b. Distribution
c. Price
d. Promotion
correct: b
feedback:. Dell is making its product available to its customers at the right time and place (page 6).
7- When Chrysler Corporation runs an ad in Business Week for its 300 Hemi sedan, this is an
example of which aspect of the marketing mix?
a. Price
b. Distribution
c. Product
d. Promotion
e. Profit
correct: d
feedback:. This aspect of the marketing mix is often used as a competitive tool (page 6).
8- A company's customers, suppliers, stockholders, employees, and local communities are all
examples of a company's:
a. stakeholders .
b. exchanges .
c. marketing mix .
d. CRM .
correct: a
feedback:. These are the constituents who have a claim in some aspect of the company (page 8).
9-When a company identifies key customers that it wants to keep as customers for a period of
several years, and then develops service programs designed to keep these customers loyal to
its products and services, this is an example of :
a. value .
b. the marketing environment .
c. an exchange .
d. relationship marketing .
e. the marketing mix .
correct: d
feedback:. The company is developing a long-term, mutually beneficial arrangement with its
customers (page 13).
10- When United Missouri Bank (UMB) of Missouri designs a customer service program in which
key customers are assigned to specific bank employees so that the bank can service these
customers accurately, this is an example of:
a. benchmarking .
b. value .
c. the marketing mix .
d. a performance standard .
e. CRM
correct: e
feedback:. UMB is focusing on customer information to create a marketing strategy that develops
and sustains a desirable customer relationship (page 13).
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1. Marketing is the process of
A) promoting products through personal selling and advertising to facilitate satisfying exchange relationships.
B) creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with
customers and develop and maintain stakeholder relationships in a dynamic environment.
C) delivering a standard of living to a society.
D) creating, distributing, promoting, and pricing goods, services, and ideas to facilitate the achievement of the
firm's objectives.
E) focusing on customers' needs.
Ans: B AACSB Outcomes: Communication
DF: M LO: 1 Page: 3 Type: KN
2. The focal point of all marketing activities is
A) products.
B) the marketing mix.
C) profits.
D) sales.
E) customers.
Ans: E AACSB Outcomes: Communication
DF: E LO: 1,3 Page: 3 Type: KN
3. A target market
A) involves a large number of customers.
B) is a specific group of customers on whom a company focuses its marketing efforts.
C) already has several competitors vying for customers' business.
D) is the same thing as a salesperson's prospective client list.
E) is a customer group classified as people with similar demographic characteristics.
DF: E LO: 1, 2 Page: 4 Type: KN
4. Coca-Cola is aiming its Diet Coke Plus (with vitamins and minerals) at health-conscious customers. These
health-conscious customers represent Coke’s
A) audience.
B) sales mix.
C) business group.
D) target market.
E) focus group.
Ans: D AACSB Outcomes: Analytical
DF: M LO: 1, 2 Page: 4 Type: AP
5. SunnyD is aimed at mothers with children under age twelve. These mothers represent SunnyD’s
A) target market.
B) consumer advocates.
C) marketing strategy.
D) marketing mix.
E) marketing tactic.
Ans: A AACSB Outcomes: Communication, Marketing Plan
DF: E LO: 1, 2 Page: 4 Type: AP
6. Marketing managers strive to develop a marketing mix that
A) minimizes marketing costs.
B) matches what competitors are offering.
C) best matches the abilities of the firm.
D) matches the needs of the target market.
E) generates the highest level sales.
DF: M LO: 1, 2 Page: 5 Type: KN
7. The product variable of the marketing mix can include all of the following except
A) creation of brand names.
B) consumer perception of the product price.
C) development of product packaging.
D) warranty issues.
E) repair services.
DF: D LO: 2 Page: 5-6 Type: KN
20. A physical product you can touch is a(n)
A) service.
B) good.
C) idea.
D) concept.
E) philosophy.
21. Mothers Against Drunk Driving (MADD) is a group that works to change attitudes and laws about driving under
the influence of alcohol. MADD primarily markets .
A) goods
B) ideas
C) services
D) political figures
E) applications
Ans: B AACSB Outcomes: Analytical
DF: E LO: 2 Page: 5-6 Type: AP
22. Which of the following organizations is the best example of a service marketer?
A) FedEx
B) Apple Computer
C) Abercrombie & Fitch
D) The Republican Party
E) General Electric
Ans: A AACSB Outcomes: Analytical, Reflective thinking
DF: M LO: 2 Page: 6 Type: AP
23. Boca Burger’s website features information about products, recipes, and nutrional values, but customers cannot
actually purchase products from the website. This website is most likely used primarily as a tool.
A) promotional
B) distributional
C) pricing
D) targeting
E) production
Ans: A AACSB Outcomes: Analytical
DF: E LO: 2 Page: 7 Type: AP
24. Which of the following scenarios involves the distribution element of the marketing mix?
A) Deciding whether a certain product should continue to be sold
B) Determining whether an advertising message would be more effective on television or in magazines
C) Choosing between a company jet or the airlines for executive travel
D) Deciding whether to have retail outlets in addition to a website
E) Developing a new warranty policy for an existing product
Ans: D AACSB Outcomes: Analytical, Reflective thinking
DF: M LO: 2 Page: 6–7 Type: AP
25. Consumers buying products online have dramatically affected the variable of the marketing mix.
A) product
B) price
C) distribution
D) research
E) promotion
Ans: C AACSB Outcomes: Analytical, Technology
26. When DuPont develops new carpet fibers that are highly stain-resistant and durable, it must educate consumers
about the product's benefits. This calls for activity in which of the following marketing mix variables?
A) Price
B) Promotion
C) Distribution
D) Product
E) Packaging
27. When Yoplait, a producer of dairy products, delayed the introduction of its new yogurt smoothies in order to
modify the package, its scheduled magazine advertisements announcing the new product needed to be revised.
In this case, a change in the variable caused changes in the variable of the marketing
mix.
A) distribution; promotion
B) distribution; product
C) product; price
D) product; promotion
E) promotion; price
28. Marketers sometimes speak of the “controllable” variables in the practice of marketing. Which of the following
is not considered one of the controllable variables?
A) Product
B) Price
C) Distribution
D) Competition
E) Promotion
Ans: D AACSB Outcomes: Communication
DF: E LO: 2 Page: 8 Type: KN
29. The concept of “exchange” is fundamental to the definition of marketing. What is the best description of
exchange?
A) Activities that are performed primarily by producers and manufacturers
B) Development of products, distribution channels, promotional strategies, and pricing objectives to satisfy
customer requirements
C) Transfer of products in return for monetary considerations
D) Provision or transfer of goods, services, or ideas in return for something of value
E) Transfer of products that takes place only between for-profit organizations
30. For an exchange to occur, four conditions must exist: first, two or more individuals, groups, or organizations
must participate, and each must possess “something of value” that the other desires; second, the exchange must
provide a benefit or satisfaction to both parties; third, each must have confidence in the promise of the
“something of value” held by the other; and fourth,
A) the parties must agree to participate in the trading of “something of value.”
B) to build trust, parties to the exchange must meet expectations.
C) both parties must participate in the trading of the “something of value.”
D) one party must be willing to compromise.
E) one party must have sufficient bank credit to finance the exchange.
Ans: B AACSB Outcomes: Analytical, Reflective thinking
DF: D LO: 2 Page: 7–8 Type: KN
31. Mark goes to a vending machine, deposits $1.00, and receives a Mountain Dew. Which one of the following
aspects of the definition of marketing is illustrated here?
A) Production conception
B) Satisfaction of organizational goals
C) Distribution of ideas
D) Product planning
E) Exchange
Ans: E AACSB Outcomes: Analytical
32. Marketing facilitates exchange relationships between buyers and sellers. What is marketing's intended outcome
for this relationship?
A) Profits for the seller
B) A good bargain on the product for the buyer
C) Reducing the seller's inventory
D) One party having to compromise in the exchange
E) Satisfaction for both the buyer and seller
DF: M LO: 2, 4 Page: 7-8 Type: KN
33. Marketing efforts are designed to
A) distribute “something of value” to buyers and sellers.
B) facilitate satisfying exchange relationships.
C) produce a product.
D) explore customer behavior.
E) promote a product.
DF: E LO: 2 Page: 7-8 Type: KN
34. Those constituents who have a "stake" in some aspect of an organization's products, operations, markets,
industry, and outcomes are known as
A) shareholders.
B) stakeholders.
C) customers.
D) target markets.
E) marketers.
35. Which of the following statements about marketing environment forces is not correct?
A) They influence customers by affecting their lifestyles, standards of living, and preferences and needs for
products.
B) They may influence customers' reactions to a firm's marketing mix.
C) They fluctuate slowly and thereby create threats to a firm's marketing mix.
D) They can fluctuate quickly and dramatically.
E) They help determine whether and how a marketing manager can perform certain marketing activities.
Ans: C AACSB Outcomes: Analytical
DF: E LO: 2 Page: 8–9 Type: CH
36. The forces of the marketing environment include
A) political, legal and regulatory, sociocultural, technological, economic, and competitive.
B) sociocultural, legal, regulatory, economic, and competitive.
C) legal, regulatory, political, and sociocultural.
D) competitive and noncompetitive forces that affect most lifestyles.
E) fairly static components.
Ans: A AACSB Outcomes: Communication
37. A marketing manager for a small computer manufacturer is analyzing the potential effects of political, legal,
sociocultural, and economic forces on the firm's operations. The marketing manager is examining the
that influence(s) the firm's strategy.
A) operating situation
B) marketing environment
C) surroundings
D) economic conditions
E) trends
38. A change in the minimum drinking age in any given state illustrates a change in the for Miller
Brewing.
A) marketing mix
B) marketing environment
C) marketing concept
D) marketing task
E) product concept
DF: D LO: 2 Page: 8–9 Type: AP
39. StarKist Tuna announced a dolphin-safe policy and stopped buying tuna from fishing vessels that net dolphins.
This decision indicates a response to concerns about
A) target market selection.
B) the marketing environment.
C) the reduction of marketing costs.
D) marketing mix decisions.
E) efficiency in marketing activities.
DF: E LO: 2, 6 Page: 8–9 Type: AP
40. Which of the following is essentially an uncontrollable factor in developing a marketing mix?
A) Product adaptations
B) Pricing strategies
C) Government regulations.
D) Advertising campaigns.
E) Retail locations.
Ans. C AACSB Outcomes: Analytical, Marketing plan
DF: E LO: 2 Page 8-9 Type: KN
41. The marketing environment is best described as being

A) composed of controllable variables.
B) composed of variables independent of one another.
C) an indirect influence on the performance of marketing activities.
D) dynamic and changing.
E) slow, with infrequent fluctuations.
Ans: D AACSB Outcomes: Communication, Reflective thinking
42. The marketing concept is best defined as

A) a second definition of marketing.
B) a philosophy stating that an organization should try to satisfy customers' needs through a coordinated set
of activities that allows the organization to achieve its goals.
C) the performance of business activities that direct the flow of goods and services from producer to
customer or user.
D) a philosophy stating that an organization should attempt to accomplish its goals with no regard for the
needs of customers.
E) the inclusion of marketing activities in the activities of an organization.
Ans: B AACSB Outcomes: Analytical, Communication
43. According to the marketing concept, an organization should try to
A) consider short-run objectives and cash flow needs before developing new products.
B) define its business as “making a product.”
C) provide products that satisfy customers' needs and allow the organization to achieve its goals.
D) put most of its emphasis on marketing activities and be less concerned with finance, accounting, and
personnel.
E) view selling activities as the major means of increasing profits.
Ans: C AACSB Outcomes: Communication
44. The marketing concept focuses on
A) achieving the goals of top executives.
B) creating maximum visibility for the firm.
C) maximizing sales.
D) maximizing market share.
E) satisfying customers' needs in a way that helps to achieve organizational objectives.
45. The marketing concept is a philosophy that states that an organization should try to satisfy customers' needs
and also
A) increase market share.
B) increase sales.
C) achieve the organization's goals.
D) produce high-quality products.
E) coordinate its activities to increase production.
46. Which one of the following statements by a company president best reflects the marketing concept?
A) We have organized our business to make certain that customers get what they want.
B) We believe that the marketing department must organize to sell what we produce.
C) We have organized in our company an aggressive sales force to promote our products.
D) We try to produce only high-quality, technically efficient products.
E) We try to encourage company growth.
Ans: A AACSB Outcomes: Analytical, Reflective thinking
47. When Campbell's introduced a line of low-sodium soups in response to customer demand, it was following
which one of the following philosophies?
A) Selling concept
B) Production concept
C) Customer concept
D) Marketing concept
E) Retailing concept
48. The Under Armor Company wants to adopt the marketing concept as a business philosophy. To be consistent
with this decision, it should adopt which of the following philosophies?
A) The customer is always right.
B) Making money is our business.
C) Sell, sell, sell.
D) Keep prices low.
E) Focus on today.
Ans: A AACSB Outcomes: Analytical
DF: E LO: 3 Page: 10–11 Type: AP
49. The marketing concept is
A) a management philosophy.
B) synonymous with exchange.
C) a component of the marketing mix.
D) a function of the marketing environment.
E) focused solely on satisfying customer objectives.
DF: D LO: 3 Page: 10 Type: KN
50. The marketing concept is a management philosophy that affects
A) only marketing activities.
B) all efforts of the organization.
C) mainly the efforts of sales personnel.
D) mainly customer relations.
E) only business organizations.
Ans: B AACSB Outcomes: Reflective thinking
DF: D LO: 3 Page: 10 Type: CH
51. As the Industrial Revolution came to the United States, most firms operated in a(n) orientation.
A) marketing
B) societal
C) sales
D) evolutionary
E) production
52. Businesspeople who believe personal selling, advertising, and distribution are the most important marketing
activities are operating in a(n) orientation.
A) marketing
B) societal
C) sales
D) evolutionary
E) production
53. U.S. Electric, the maker of a highly innovative xenon light bulb, finds that it has excess inventory. The firm
increases its advertising budget by 50 percent and doubles its sales staff. This company is operating as if it were
in which of the following orientations?
A) Production
B) Sales
C) Marketing
D) Customer
E) Societal
DF: D LO: 3 Page: 11 Type: AP
54. American Express implements a program of calling its current cardholders to find out what changes they would
like to see in the services provided. The firm is exhibiting characteristics associated with which of the following
orientations?
A) Production
B) Sales
C) Marketing
D) Social
E) Development
55. A marketing orientation is an organization-wide effort that includes all of the following activities except
A) researching customers' needs.
B) focusing on the marketing department only.
C) generating marketing intelligence for use in the organization.
D) being responsive to customers' ever-changing wants and needs.
E) disseminating marketing intelligence across departments within the organization.
Ans: B AACSB Outcomes: Communication, Reflective thinking
56. Todd Marshall, a mid-level manager, has tried for years to get his company to adopt a marketing orientation.
Although many in the company are receptive to Todd's ideas, it is unlikely that the company will ever truly
become marketing-oriented without
A) the support of competitors.
B) changes in government regulations.
C) increases in tariffs on foreign products.
D) the support of top-level management.
E) the consent of assembly-line workers.
57. Which of the following is not an example of the implementation of the marketing concept?
A) Jimmy Dean’s Sausage introduces turkey sausage patties for a healthier alternative to port.
B) Mar’s Candy asks customers to vote online for a new color for its M&M’s candy.
C) Burger King reduces the labor costs to prepare its sausage-egg biscuits.
D) Microsoft offers rewards for users who can find flaws in its new software.
E) Volkswagen introduces pop-up rollover bars in its convertibles to protect its consumers in the event of a
serious collision.
Ans: C AACSB Outcomes: Analytical, Reflective thinking
58. Health Care Systems, Inc. has rolled out an innovative nurse-on-call information system available on-line. The
product is not widely accepted because patients don't see the need for such a service. This situation represents a
failure in which aspect of implementing the marketing concept?
A) The customer information system
B) The organizational structure
C) Top-management commitment
D) Technological advancement
E) Scanning corporate capabilities
Ans: A AACSB Outcomes: Analytical, Technology
59. Today, establishing long-term, mutually satisfying buyer-seller relationships is known as
A) marketing synthesis.
B) relationship marketing.
C) a marketing orientation.
D) the marketing concept.
E) strategic marketing.
60. A junior marketing executive at MegaGrain Cereals suggests increasing the package size and price of its
best-selling brand without increasing the amount of cereal inside the box. Her superior warns that this might be
a bad idea because MegaGrain's long-term survival, like most companies, depends on
A) cost-cutting measures.
B) continually selling to new customers and markets.
C) creating and maintaining satisfying exchange relationships.
D) high-volume, low-margin sales.
E) increasing shelf space for their brands.
DF: E LO: 4 Page: 12-13 Type: AP
61. As a concept, customer relationship management (CRM) begins its focus on customers with
A) information.
B) product.
C) distribution.
D) communication.
E) price.
Ans: A AACSB Outcomes: Technology
62. Long-term relationships with customers is the key objective of
A) personal selling.
B) customer relationship management.
C) production oriented firms.
D) e-marketing.
E) distribution channels.
Ans: B AACSB Outcomes: Communication, Analytical
63. Customer relationship management focuses on using about customers to create marketing
strategies.
A) internal communication
B) information
C) purchasing power insights
D) marketing mix knowledge
E) implementation knowledge
64. is a customer's subjective assessment of benefits relative to costs in determining the worth of a
product.
A) Marketing orientation
B) Monetary price
C) Product assessment
D) Price assessment
E) Value
65. The equation a buyer applies to assess a product's value is
A) Value = monetary price – customer benefits.
B) Value = customer costs – customer benefits.
C) Value = customer benefits – customer costs.
D) Value = customer benefits – monetary price.
E) Value = customer benefits – time and effort.
66. Customer costs include anything the buyer must give up to obtain the benefits the product provides. The most
obvious customer cost is
A) risk.
B) time.
C) monetary price.
D) effort.
E) availability.
67. Which of the following would not be a customer cost considered in determination of product value?
A) Product's purchase price
B) Time spent purchasing the product
C) Effort spent purchasing the product
D) Benefits received in the exchange for the products
E) Risk of purchasing the product
Ans: D AACSB Outcomes: Reflective thinking
68. Scott, a buyer for a medium-sized company, is assessing the value of competing software products for use in his
firm. Which of the following would not be a customer benefit considered in his determination of this product's
value?
A) Speed of delivery
B) Ease of installation
C) Availability of technical support
D) Availability of training assistance
E) Monetary price
Ans: E AACSB Outcomes: Analytical, Reflective thinking
69. Taco Bell is introducing some of its products into supermarkets, vending machines, college campuses, and other
locations to increase its product availability and convenience. One reason Taco Bell is doing so is to
A) decrease customer benefits.
B) increase customer costs.
C) increase customer value.
D) increase distribution expenses.
E) decrease promotion expenses.
70. Marketing management is defined as a process of
A) maintaining an appropriate and efficient marketing mix for a target market.
B) establishing performance standards and evaluating actual performances against these standards.
C) providing products that satisfy customers' needs through a coordinated set of activities.
D) facilitating satisfying exchanges between an organization and its customers.
E) planning, organizing, implementing, and controlling marketing activities.
71. All of the following are marketing management tasks except
A) planning.
B) implementing.
C) organizing.
D) analyzing target markets.
E) controlling.
72. A systematic process of assessing opportunities and resources, determining marketing objectives, and
developing a marketing strategy and plans for implementation and control describes which of the following
marketing management activities?
A) Strategic planning
B) Marketing control
C) Implementation
D) Organizing
E) Planning
73. Developing the internal structure of a firm's marketing unit relates to which of the following marketing
management activities?
A) Marketing control
B) Implementation
C) Organizing
D) Planning
E) Managing
74. of marketing plans hinges on coordination of marketing activities, motivation of marketing
personnel, and effective communication within the marketing unit.
A) Implementation
B) Planning
C) Organizing
D) Marketing control
E) Strategic planning
Ans: A AACSB Outcomes: Communication, Analytical
75. If McDonald's runs a promotion advertising Big Macs for 99 cents, it must ensure that each of the company's
restaurants has sufficient staff and product on hand to handle expected demand. This relates to which of the
following marketing management activities?
A) Strategic planning
B) Planning
C) Organizing
D) Implementation
E) Marketing control
76. is the process of establishing performance standards, comparing actual performance with established
standards, and reducing the difference between desired and actual performance.
A) Internal control analysis
B) Marketing control
C) Market flow regulation
D) Environmental market analysis
E) External analysis
Ans: B AACSB Outcomes: Communication, Analytical
77. For most firms, the costs of marketing activities consume approximately what portion of the consumer's dollar?
A) One-half
B) One-fifth
C) One-fourth
D) One-third
E) One-sixth
78. In today's market environment, you might pay $20 for a t-shirt at your local discount store. Approximately how
much of that price goes to activities related to marketing (distribution, retailer expenses, profit margins)?
A) $1.70
B) $3.75
C) $5.50
D) $10.00
E) $12.75
79. An Apple iPod has average marketing costs and sells for $299. Approximately how many of a buyer's dollars go
toward marketing costs?
A) $50
B) $90
C) $150
D) $175
E) $199
80. Marketing activities are
A) used by all sizes of organizations including for-profit, nonprofit, and government agencies.
B) limited to use by larger for-profit and nonprofit organizations.
C) implemented only to increase profits for the organization and to expand the scope of its customer base.
D) used by all types and sizes of businesses but are not used by nonprofit organizations.
E) used by small businesses and small nonprofits the most.
81. Marketing activities
A) are aimed at persuading customers through advertising.
B) involve mainly distribution and promotion decisions.
C) and selling activities are basically the same.
D) are important only when a firm is developing new products or entering new markets.
E) help sell an organization's products and generate financial resources for the firm.
Ans: E AACSB Outcomes: Communication, Analytical
82. Marketing knowledge and skills
A) are not necessary for a nonprofit organization.
B) enhance consumer awareness and help provide people with satisfying goods and services.
C) constitute the marketing mix.
D) were most important during the production era.
E) are most valuable for advertising executives but less important for wholesalers and distributors.
83. Approximately what percentage of civilian workers in the United States perform marketing activities?
A) 25 to 33 percent
B) 81 to 92 percent
C) 42 to 50 percent
D) 64 to 76 percent
E) 10 to 20 percent
Use the following to answer questions 84-88:
Greensprings Cemetery in upstate New York, offers full-service funeral and burial that is non-toxic to the
environment. All materials used in the burial are natural and will decompose with no negative impact.
Greensprings’ service is relatively new in the United States, but Services of this type are common in Great
Britain. A typical burial in Greensprings’ cemetery includes a casket made from bamboo, wicker, paper, or other
natural material. There are no headstones of granite or concrete that will detract from the landscape, but trees
and plants as “markers” are allowed. The cost for a burial at Greensprings is approximately $3,000, compared to
about $6,000 at most traditional cemeteries. Although business was slow at first, Greensprings is now
experiencing an increase in the number of burials, due to referrals and a newly-developed website. The owners
of Greensprings were previously in the cemetery business, and are active conservationists. After conducting
research and finding that there were natural burial sites in Great Britain, they wanted to provide an alternative
to other environmentally-conscious Americans like themselves.
84. Referrals and a new website have helped Greensprings' business grow. These would come under which of the
following marketing mix variables?
A) Product
B) Price
C) Distribution
D) Promotion
E) Promotion and price
Ans: D AACSB Outcomes: Reflective thinking, Product, Price, Promotion, Distribution
85. Greenspring’s main competitive advantage over traditional cemeteries directors comes from its attention to
which element in the marketing mix?
A) Product
B) Price
C) Promotion
D) Distribution
E) Marketing research
Ans: B AACSB Outcomes: Reflective thinking, Strategy
86. Compared to Greensprings’ approach to funerals, traditional cemeteries are using the orientation.
A) marketing
B) sales
C) product
D) people
E) service
87. The owners of Greensprings Cemetery are apparently operating under which of the following orientations?
A) Sales orientation
B) Marketing orientation
C) Production orientation
D) Business orientation
E) Profit orientation
Ans: B AACSB Outcomes: Reflective thinking, Strategy
88. Greensprings’ competitors, the traditional cemeteries, focus on advertising and personal selling of their services.
This indicates a(n) orientation.
A) sales
B) marketing
C) production
D) environmental
E) marketing concept
Ans: A AACSB Outcomes: Reflective thinking, Strategy
Chapter 3 the marketing
environment .
‫االجابة في نهاية السؤال‬
1-When a manager collects information about a marketing situation, this is called:
a. environmental analysis.
b. environmental scanning.
c. consumerism.
d. green marketing.
e. none of the above.
correct: b
feedback:. It is the process of collecting information about forces in the marketing environment (page 50 .)
---------------------------------------------------------
2- The money that an individual has to spend after paying federal, state, and local taxes is called:
a. disposable income.
b. an ethical issue.
c. benchmarking.
d. discretionary income.
e. empowerment.
correct: a
feedback:. This money is the income that is used for spending or saving (page 54 .)
3-When a graduate student saves money to make a down payment on a used car, this is an example of :
a. disposable income.
b. a business cycle.
c. discretionary income.
d. social responsibility.
correct: c
feedback:. Income that is available for spending and saving after purchasing the basic necessities of food,
clothing, and shelter (page 54.)
--------------------------------------------------
4- Seeking out and purchasing gourmet cuisine while on your vacation to San Francisco is an example of your :
a. environmental scanning.
b. willingness to spend.
c. green marketing.
d. sociocultural forces.
correct: b
feedback:. An inclination to buy because of expected satisfaction that is influenced by the ability to buy
is a willingness to spend (page 54).
---------------------------------------------------------------
5- The U.S. federal agency that regulates false advertising, misleading pricing, and deceptive packaging
practices is the:
a. EPA.
b. FCC.
c. FTC.
d. DOD.
e. IRS.
correct: c
feedback:. See description of this regulatory agency (page 57.)
-----------------------------------------------------
6-When Nokia adds a feature to its cell phones so that owners can send and receive emails using their cell
phones, this is an example of the use of :
a. green marketing.
b. social responsibility.
c. a sociocultural force.
d. technology.
correct: d
feedback:. This is an example of a scientific advance (page 61).
-------------------------------------------------------
7- The great emphasis on dieting and "eating right" in the U.S. is an example of the impact of :
a. technology.
b. demographics.
c. social responsibility.
d. cause-related marketing.
e. sociocultural forces.
correct: e
feedback:. This is an influence that impacts people's attitudes, beliefs, norms,
customs, and lifestyles (page 63.)
8- The obligation that a company has to maximize its positive impact on society
and minimize its negative impact on society is called:
a. social responsibility.
b. cause-related marketing.
c. buying power.
d. consumerism.
correct: a
feedback:. Refer to the "Social Responsibility and Ethics in Marketing" section (page 65 .)
----------------------------------------------------------
9-When a company uses its resources to deal with key stakeholders' interests in order to accomplish social
benefits, this is called:
a. environmental analysis.
b. green marketing.
c. environmental scanning.
d. strategic philanthropy.
correct: d
feedback: . It is the synergistic use of organizational core competencies and resources (page 69).
----------------------------------------------------------------------------------
10- Honda's hybrid Civic automobile, which uses an electric motor to supplement its internal -combustion
engine, is an example of:
a. the business cycle.
b. cause-related marketing.
c. buying power.
d. green marketing.
correct: d
feedback: Honda is creating meaningful long-term relationships with customers while supporting and
enhancing the natural environment (page 69.)
‫االجابة في نهاية السؤال‬

To monitor changes in the marketing environment effectively, marketers must
engage in
a) environmental scanning and analysis.

b) economic scanning
c) self-regulatory analysis
d) marketing research analysis
e) information collecting
a
Collecting information from secondary sources such as business, government,

trade, and general-interest publications plays an important role in
a) environmental analysis.
b) competitive forces.
c) environmental scanning.
d) procompetitive legislation.
e) self-regulatory forces.
c
Three primary methods of collecting information for environmental scanning

are
a) marketing research, company records, and advance orders.

b) secondary sources, company records, and observation.
c) executive knowledge, media, and marketing research.
d) observation, secondary sources, and marketing research.
e) company database, executive knowledge, and research.
d
Environmental scanning means ___________ information about the marketing
environment, whereas environmental analysis is concerned with ___________
this information.
a) assessing; collecting
b) assessing; interpreting
c) collecting; assessing
d) interpreting; observing
e) gathering; observing
c
Marketers who attempt to influence and change the various environmental

forces have a(n) _____ response to these forces.
a) reactive
b) inactive
c) variable
d) positive
e) proactive
e
Marketers who view political forces as being beyond their control are taking a
___________ response toward these forces.
a) reactive
b) aggressive
c) proactive
d) competitive
e) liberal
a
The textbook suggests that the best approach a firm can take in responding to
marketing environmental forces is
a) reactive.
b) proactive.
c) inactive.
d) active.
e) variable.
e
When marketers define their target market, they establish a set of
a) technologies.
b) monopolies.
c) competitors.
d) government regulations.
e) sociocultural forces.
c
Companies that market products with similar features, benefits, and prices to
the same customer group are known as _________ competitors.
a) generic
b) product
c) brand
d) total budget
e) monopolistic
c
Which of the following would represent a brand competitor for Ford's Escape
Hybrid sport utility vehicle?
a) Honda Pilot
b) Toyota's Highlander Hybrid
c) Honda Civic Hybrid
d) Taxi ride
b
__________ competitors provide very different products that satisfy the same
basic customer need.
a) Brand
b) Generic
c) Total budget
d) Product
e) Marketing
b
___________ competitors are those that compete in the same product class,
but their products have different features, benefits, and prices.
a) Brand
b) Generic
c) Total budget
d) Product
e) price
d
Marketers primarily focus their environmental analysis on ____ competitors.
a) Brand
b) Generic
c) Total budget
d) Product
e) Monopolistic
a
In today's marketing environment, competitors can take on many forms. For

example, Diet Coke can be seen as a competitor to Wrigley's Double Mint
chewing gum. In this circumstance, these two products are described as
___________ competitors.
a) Pure
b) Generic
c) Total budget
d) Product
e) Monopolistic
c
Due to limited resources, a consumer decided to serve Hawaiian Punch to a

New Year's Eve party crowd instead of Korbel champagne. As a result of this
action, Korbel and Hawaiian Punch can be viewed as ___________
competitors.
a) Pure
b) Generic
c) Total budget
d) Product
e) Oligopolistic
b
Companies that compete for the same limited financial resources of the same
customers are known as _________ competitors.
a) Brand
b) Generic
c) Total budget
d) Product
e) Oligopolistic
c
___________ competitors are the most significant to marketers because

buyers see the different products of these firms as direct substitutes for each
other.
a) Brand
b) Generic
c) Total budget
d) Product
e) Oligopolistic
a
The four major competitive structures are
a) monopolies, oligopolies, oligopolistic monopolies, and pure competition.

b) pure competition, heavy competition, moderate competition, and light
competition.
c) brand, product, total budget, and generic.
d) oligopolies, monopolies, monopolistic competition, and pure competition.
e) monopolies, limited competition, oligopolistic competition, and pure
competition.
d
What type of competitive structure exists when a firm produces a product that
has no close substitutes?
a) Monopoly
b) Oligopoly
c) Monopolistic competition
d) Pure competition
e) Mixed competition
a
The type of competitive structure that exists in the case where there are
almost no substitutes for a product is a(n)
a) Monopoly
b) Oligopoly
c) Monopolistic competition
d) Pure competition
e) noncompetition
a
The American automobile industry used to be dominated by "The Big Three,"

including General Motors, Ford, and Chrysler. However, as many more foreign
competitors began influencing this market, the American companies had to
modify and differentiate their products. The automobile industry moved from
a(n) ______ structure to a(n) _______ structure.
a) monopolistic; oligopolistic
b) oligopolistic; pure competition
c) oligopolistic; monopolistic competition
d) monopolistic competition; pure competition
e) monopolistic; monopolistic competition
c
Which of the following firms would be most likely to have a monopoly for its
competitive environment?
a) TimeWarner Cable TV
b) Mitchell Trucking
c) Continental Airlines
d) Rogers Plumbing
e) Chemlawn Lawn Care
a
Most marketers operate in a competitive environment of either
a) oligopoly or monopoly.
b) oligopoly or monopolistic competition.
c) oligopoly or pure competition.
d) monopoly or pure competition.
e) pure competition or monopolistic competition.
b
When a firm has many potential competitors and tries to develop a marketing
strategy to differentiate its products from the competitors' products, a(n)
_______ structure exists in the competitive environment.
a) oligopoly
b) monopoly
c) pure competition
d) oligopolistic competition
e) monopolistic competition
e
What type of competitive structure exists when just a few sellers control a
large portion of the supply of a product?
a) oligopoly
b) monopoly
c) pure competition
d) mixed competition
a
If in an industry, none of the many sellers could influence the price of supply of
its products, this industry would be characterized as
a) oligopoly
b) monopoly
c) pure competition
c
J. Pitner Clothing is a medium-size specialty men's and women's clothing

store in a market with many other specialty stores, department stores, and
discounters. It has established a reputation for offering high-quality,
fashionable merchandise with quality service. J. Pitner's competitive
environment would best be characterized as
a) oligopoly
b) monopoly
c) pure competition
e
In general, which of the following competitive structures is an organization

least likely to operate?
a) oligopoly
b) monopoly
c) pure competition
c
The two least common competitive structures at the opposite ends of the
continuum are
a) monopolies and oligopolies.

b) pure competition and monopolies.
c) monopolistic competition and monopolies.
d) pure competition and no competition.
e) oligopolies and pure competition.
b
The best approach for a company to take when monitoring its competitors is
a) watching for increases and decreases in competitors' prices and match

them.
b) analyzing all information that is readily available about competitors.
c) sending employees to competitors' offices and factories to observe their
actions.
d) developing a system for gathering ongoing information about competitors.
e) reading important business publications such as The Wall Street Journal.
d
Which of the following attributes of a Toyota Scion would be most appropriate

to emphasize in television commercials during an economic recession?
a) Stereo system
b) Prestige
c) Durability
d) Leg room
c
Assuming that inflation is low, high buying power characterizes the _____
stage of the business cycle.
a) prosperity
b) depression
c) recovery
d) succession
e) recession
a
During which stage of the business cycle is unemployment low and total
income relatively high?
a) prosperity
b) depression
c) recovery
d) succession
e) recession
a
Total buying power declines during periods of economic
a) prosperity
b) uncertainty
c) recovery
d) expansion
e) recession
e
Although marketing theory supports the contrary, it is more probable that

marketing budgets will be cut during periods of economic
a) prosperity
b) uncertainty
c) recovery
d) expansion
e) recession
e
Consumers begin to become more price and value conscious during periods
of
a) prosperity
b) uncertainty
c) recovery
d) expansion
e) recession
e
Consumer confidence is at a low during periods of
a) recession.
b) prosperity.
c) recovery.
d) slowdown.
e) depression.
e
Consumer confidence and willingness to spend begins to increase during

periods of _____, and marketers must remain very flexible to make the
necessary adjustments.
a) recession.
b) prosperity.
c) recovery.
d) growth.
e) depression.
c
Why are marketers interested in consumers' levels of disposable income?
a) It accurately predicts future buying power.

b) It increases current buying power.
c) It is what is left after taxes and savings to buy luxuries with.
d) It is a ready source of buying power.
e) It is essential for forecasting future business trends.
d
The amount of money received through wages, rents, investments, pensions,

and subsidies is called
a) income.
b) wealth.
c) discretionary income.
d) prosperity.
e) credit.
a
Which category of income are marketers most interested in?
a) Wealth
b) Disposable income
c) Discretionary income
d) Total income
e) Extra income
b
What is the most important factor in distinguishing disposable income from

income?
a) Taxes
b) Housing
c) Employment levels
d) Consumer spending
e) Saving
d
A person's buying power is a function of
a) disposable income.
b) past income, natural resources, and financial resources.
c) wages, rents, and investments.
d) income, wealth, and credit.
e) discretionary income.
d
Discretionary income is associated with all of the following except
a) automobiles.
b) education.
C) pets.
d) furniture.
e) food.
e
Heidi decided to spend some of her saved money on tickets to a Cold Play
concert coming to town, and now she is planning on buying a new outfit for the
concert. What type of resources is Heidi making decisions about?
a) Disposable income
b) Wealth
c) Buying power
d) Discretionary income
e) Savings income
d
The accumulation of past income, natural resources, and financial resources is

known as
a) income
b) collected income
c) credit
d) wealth
e) savings
d
By offering credit and financing through its GMAC division, General Motors is
trying to help consumers
a) expand future buying power at the expense of current buying power.

b) expand disposable income at the expense of discretionary income.
c) expand current buying power at the expense of future buying power.
d) expand both disposable income and wealth.
e)decrease both disposable and discretionary income.
c
When using credit to make purchases, consumers are
a) decreasing current buying power and increasing future buying power.

b) increasing their present discretionary income to extend purchasing power.
c) putting themselves at significant risk of financial disaster.
d) forgoing the accumulation of wealth to increase current income.
e) increasing current buying power at the expense of future buying power.
e
Texas rice farmers wish to get their product into the Japanese market but are
hindered by a complex maze of regulations imposed by the Japanese
government. The farmers are most likely to attempt to influence which aspect
of the marketing environment?
a) Sociocultural
b) Technological
c) Competitive
d) Economic
e) Political
e
Which of the following is not a reason that marketers try to maintain good
relations with elected political officials?
a) Political officials can influence how much a government agency purchases

and from whom.
b) Political officials can play key roles in helping organizations secure foreign
markets.
c) Political officials well disposed toward particular firms or industries are less
likely to create or enforce laws and regulations unfavorable to these firms.
d) Political officials can accept direct corporate campaign contributions.
e) Political officials who believe that companies in a particular industry are
making honest efforts to control pollution are unlikely to create and enforce
highly restrictive pollution control laws over that industry.
d
One way for corporations to attempt to influence the political environment is

through
a) special benefits to employees.

b) direct contributions to candidates.
c) contributions to elected officials.
d) contributions to political action committees.
e) organizing political action committees.
e
Which of the following acts was enacted to prevent businesses from

restraining trade and monopolizing markets?
a) Sherman Antitrust Act

b) Clayton Act
c) Federal Trade Commission Act
d) Robinson-Patman
e) Act Wheeler-Lea Act
a
If all the gas stations in a city collaborated to determine what gas prices should
be charged, they would be violating the
a) Sherman Antitrust Act

b) Clayton Act
c) Federal Trade Commission Act
d) Robinson-Patman
e) Act Wheeler-Lea Act
a
Which of the following provides protection for and regulates brand names,
brand marks, trade names, and trademarks?
a) Sherman Act
b) Clayton Act
c) Robinson-Patman Act
d) Lanham Act
e) Celler-Kefauver Act
d
Procompetitive laws are those designed to
a) preserve competition.
b) protect the consumer.
c) ensure product safety.
d) reduce competition.
e) limit business lobbying of government officials.
a
International Office Supplies Wholesaler charges different prices to its various

customers without any legal justification. This company is in violation of the
a) Sherman Act
b) Clayton Act
d) Lanham Act
c
Price discrimination is prohibited by the ___________ Act.
a) Sherman Act
b) Clayton Act
d) Lanham Act
c
The 1990 Nutritional Labeling and Education Act directly prohibits
a) exaggerated claims made by health and fitness products.

b) putting the words "cholesterol-free" on any food package.
c) putting nutritional information on most food products.
d) exaggerated health claims on food packages.
e) the use of any health claim on food packaging.
d
Consumer protection legislation deals with all of the following legal concerns
except
a) consumer safety.
b) sale of hazardous products.
c) monopolistic practices.
d) information disclosure.
e) health claims on food packages.
c
Which of the following are the most frequently sentenced organizational

crimes?
a) False advertising and price discrimination

b) Price discrimination and fraud
c) Fraud and antitrust violations
d) Price fixing and antitrust violations
e) Fraud and price fixing
c
Of all the federal regulatory units, the ____________ most heavily influences
marketing activities.
a) Food and Drug Administration (FDA)

b) Federal Communications Commission (FCC)
c) Environmental Protection Agency (EPA)
d) Federal Trade Commission (FTC)
e) Federal Power Commission (FPC)
d
Which of the following agencies would most likely have jurisdiction over the
problem with lead in the paint of children's toys?
a) Consumer Product Safety Commission

b) Children's Online Protection Act
c) Food and Drug Administration
d) Environmental Protection Agency
e) National Advertising Review Board
a
The FTC can issue a cease-and-desist order, which is an injunction to
a) report to the FTC immediately.

b) stop doing whatever caused the complaint.
c) appear before the courts.
d) pay for damages caused by negligence of the firm.
e) close down the firm until further notice.
b
Which of the following agencies regulates marketing activities the most?
a) Food and Drug Administration

b) Federal Communications Commission
c) Environmental Protection Agency
d) Federal Trade Commission
e) Federal Power Commission
d
In its advertisements for Bud Light beer, Anheuser-Busch has decided to

include a statement saying "Know when to say when." This is an example of
which one of the following types of regulatory forces affecting marketing
efforts?
a) Federal regulation
b) State regulation
c) City regulation
d) Self-regulation
e) Social regulation
d
The Pharmaceutical Research and Manufacturers of America sets guidelines

for its member firms to follow regarding the use of unethical practices. Thus, it
is engaging in
a) legislation.
b) lobbying.
c) self-regulation.
d) environmental scanning.
e) trade restraint.
c
Jared Bledsoe hires a local landscape firm to plant trees and shrubs in his
yard. The firm plants mostly dead plants but refuses to return Jared's money
or replace the dead items. Jared's best course of action would be to contact
the
a) police.
b) Federal Trade Commission.
c) Sherman Commission.
d) Better Business Bureau.
e) federal district court.
d
The Better Business Bureau is probably the best-known
a) nongovernmental regulatory group.

b) state-operated enforcement agency.
c) national evaluator of advertisements.
d) federal regulatory group.
e) self-regulatory unit operating at the national level.
a
Which of the following statements about self-regulatory programs is false?
a) Self-regulatory programs are usually less expensive than governmental
regulatory programs.
b) Self-regulatory programs' guidelines generally are more realistic and
operational.
c) Nongovernmental self-regulatory programs have neither the tools nor the
authority to enforce guidelines.
d) Self-regulatory guidelines generally are stricter than governmental
regulatory programs.
e) When a trade association sets up industry guidelines, some firms that are in
the industry but not in the trade association do not follow the guidelines.
d
What national self-regulatory organization screens ads?
a) Federal Advertising Review Division

b) National Advertising Review Board
c) Federal Communications Commission
d) Consumer Federation of America
b
Technology is
a) the application of scientific knowledge to build products that customers

desire.
b) the application of knowledge and tools to solve problems and perform tasks
more efficiently.
c) applied sciences.
d) one of the weakest marketing environment forces.
e) the result of research performed primarily by universities.
b
The rapid adoption of the use of the Internet has resulted in rapid changes
such as the increase of distance learning, changing social networks, and
concerns such as copyright and privacy issues that the government is focusing
on. These effects of technology are collectively known as
a) reach.
b) the self-sustaining nature.
c) growth.
d) technological advancement.
e) dynamics.
e
Technology assessment is
a) measuring how much technology has been incorporated into an

organization.
b) trying to foresee the effects of new products and processes on the firm's
operation and on society in general.
c) assessing how much technology one wants to incorporate into a company
in the future.
d) judging how a firm's products affect society.
e) weighing the cost of new technology to determine whether a firm can afford
to use it.
b
When Cisco Systems attempts to anticipate the effect of new products and
processes on its own innovations, other business organizations, and society in
general, the firm is engaging in
a) product differentiation.
b) monopolistic competition.
c) technology assessment.
d) distinctive promotional methods.
e) innovative marketing.
c
Many health care companies are making adaptations to meet the needs of an
aging population as the demand for medical services and products such as
diabetes supplies increases. This change in marketing strategy is best
explained by a change in
a) demographics.
b) cultural values.
c) income levels.
d) consumerism.
e) subcultures.
a
Organizations that provide smoke-free environments or low-fat products are
responding to changes in
a) technology.
b) the legal environment.
c) demographics.
d) cultural values.
e) political forces.
d
Consumerism is a
a) diverse group of individuals and organizations opposed to foreign producers

that sell products in the United States that are much cheaper than those
produced by U.S. manufacturers.
b) social movement that is trying to encourage consumer satisfaction.
c) social movement that is reorganizing the Council of Better Business
Bureaus.
d) diverse group of individuals and organizations attempting to protect the
rights of consumers.
e) social movement that provides consumers with means for expressing
satisfaction and expressing their gratitude to producers.
d
‫ ق سم لا تس و يق‬/ ‫ اب ر اه ي م لا س لما ن‬-- Team.help-out.net – Fb.com/Ibraheem.ys
Chapter 5: Target market :

1- When you go to the supermarket and purchase a market basket of goods for your personal use or to be
consumed by members of your household, you are acting as a member of:
a. a Delphi market.
b. a business market.
c. a homogeneous market.
d. a trend market.
e. the consumer market.
correct: e
feedback:. You are part of a group of purchasers and household members who intend to consume or benefit
from the purchased products at the supermarket (page 103).
----------------------------------------------------------------------------------------------------------------------------------
2- When a University purchases desks from a furniture wholesaler, it is acting as part of:
a. the business market.
b. a cycle market.
c. a time series market.
d. the consumer market.
correct: a
feedback: . The University is a group/organization that purchases the furniture for use in its daily operations and for
all its members (page 103
.----------------------------------------------------------------------------------------------------------------------------- -----
3- Age is an example of what type of variable in market segmentation?

a. Psychographic
b. Demographic
c. Behavioristic
d. Benefit
correct: b
feedback:. Marketers rely on these characteristics because they are often closely linked to customers' needs and
purchasing behavior and can be readily measured (page 108).
----------------------------------------------------------------------------------------------------------------------------- -----
4- The number of potential customers within a square mile of a company is an example of:
a. geodemographic segmentation.
b. micromarketing.
c. market forecast.
d. market density.
correct: d
feedback:. The example refers the number of potential customers within a unit of land area (page 113).
----------------------------------------------------------------------------------------------------------------------------- -----
5- Which type of variable segments a market according to personality traits?
a. Psychographic
b. Demographic
c. Geographic
d. Behavioral
correct: a
feedback:. This type of variable can be used by itself to segment a market or can be combined with other types of
segmentation variables (page 114).
----------------------------------------------------------------------------------------------------------------------------- -----
6- Rate of use (heavy user, medium user, light user) is an example of what type of variable in market
segmentation?
a. Geographical
b. Demographic
c. Behavioristic
d. Psychographic
correct: c
feedback:. It refers to firms dividing a market according to some feature of consumer behavior toward a
product, commonly involving some aspect of product use (page 115-116).
----------------------------------------------------------------------------------------------------------------------------- -----
7- If Crest segments the market for toothpaste into cavity protection, whiter teeth, and breath freshener, this is
an example of what type of market segmentation?
a. Psychographic
b. Geographic
c. Demographic
d. Benefit
e. Behavioristic
correct: d
. feedback Crest is dividing its market according to benefits that consumers want from its
toothpaste (page 116)
.----------------------------------------------------------------------------------------------------------------------------- -----
8- When IBM divides the business market for its large computers into segments based on the annual sales
dollars of companies in the past year, this is an example of what type of segmentation variable?
a. Geographic location
b. Product use
c. Customer size
d. Type of organization
correct: c
feedback:. IBM is dividing its customers by how much they buy (page 117).
----------------------------------------------------------------------------------------------------------------------------- -----
9- In order to estimate the number of laptop computers that Dell Computer Co. expects to sell in the next three
years, Dell is first trying to estimate the ________ for the entire laptop computer industry.
a. executive judgment
b. sales forecast
c. trend analysis
d. market potential
correct: d
feedback:. Dell is trying to first estimate the total amount of the product for all firms in the industry that
customers will purchase within a specified period (page 118).
----------------------------------------------------------------------------------------------------------------------------------
10- When a market researcher attempts to track statistically how a set of independent variables are related to a
dependent variable, he or she is typically using:
a. the Delphi technique.
b. an experiment.
c. seasonal analysis.
d. a market test.
e. regression anaylsis.
correct: e
feedback:. He or she is seeking to find a relationship between the dependent variable and one or more
independent variables (page 121).
Chapter 5: Target market :
‫االجابة الصحيحة في نهاية السؤال‬

Any group of people who, as individuals or as organizations, have needs for
products in a product class and who have the ability, willingness, and authority
to buy such products is a(n)
a) business market.
b) market.
c) undifferentiated market
d) segmented market
e) market variable
b) market.
Which of the following is not a characteristic of a consumer market?

a) it consists of purchasers who intend to consume or benefit from the
purchased products
b) they do not buy products for the main purpose of making a profit
c) they are sometimes referred to as B2C markets
d) their purchasing decisions are always made by only one individual
e) each of us belongs to numerous markets of this type
d) their purchasing decisions are always made by only one individual
Which of these statements is not true about business markets?

a) the purchase may be made to resell the item
b) the purchase is always made by more than one individual
c) the purchase may be made to use in general daily operations
d) the purchase may be made to use in production of another product
e) they can also be referred to as organizational markets
b) the purchase is always made by more than one individual
Which of the following is not a requirement or characteristic of a market?

a) The ability to purchase a product
b) A large number of people or organizations
c) The authority to buy a product
d) The willingness to use buying power
e) The need for a specific product in a specific product category
b) A large number of people or organizations
In order to be considered a market, people do not have to have

a) a need or desire for a particular product.
b) the ability to purchase the product.
c) discretionary income to purchase the product.
d) the willingness to use their buying power.
e) the authority to buy the specific products.
c) discretionary income to purchase the product.
Consumers that do not own dogs are not likely to be in the market for dog food
because
a) they lack the authority to purchase the dog food.
b) they do not possess the buying power for purchasing dog food.
c) their ability to purchase the dog food is questionable.
d) they do not have the need or desire for dog food.
e) they are willing to use their buying power.
d) they do not have the need or desire for dog food.
The ability to purchase a product is a function of

a) buying power.
b) desire.
c) willingness.
d) authority.
e) needs.
a) buying power.
Adolescents are not considered part of the market for casinos because they
a) have very little buying power.
b) do not have the desire to gamble.
c) are not willing to spend their money on gambling.
d) cannot afford to gamble their savings.
e) do not have the authority to gamble.
e) do not have the authority to gamble.
Generally speaking, individuals who are unemployed would not be considered

a target market for Mercedes or other luxury European import sedans because
a) they would not desire such products.
b) they would not be willing to purchase such products.
c) they would not have the ability to purchase such products.
d) such markets are narrowly defined geographically.
e) they are not authorized to purchase such products.
c) they would not have the ability to purchase such products.
Sixteen-year-old high school students do not form a market for alcoholic

beverages because they
a) lack sufficient buying power to form a market.
b) lack the authority to purchase this type of product.
c) do not want to purchase this type of product.
d) do not have sufficient experience with this type of product.
e) lack the money to purchase this type of product.
b) lack the authority to purchase this type of product.
When marketing research shows that a group of people does not desire a
particular product, the people in that group
a) are a market.
b) do not have the ability to purchase the product.
c) do not have the authority to purchase the product.
d) are not a market for the product.
e) are a market but will not purchase the product.
d) are not a market for the product.
The first step in the target market selection process is

a) determining which segmentation variables to use.
b) selecting specific target markets.
c) identifying an appropriate targeting strategy.
d) evaluating relevant market segments.
e) developing market segment profiles.
c) identifying an appropriate targeting strategy.
To find a target market, a firm can use the

a) total market strategy and the undifferentiated strategy.
b) product differentiation strategy and the customer differentiation strategy.
c) demographic strategy and the psychographic strategy.
d) socioeconomic strategy and the psychological strategy.
e) undifferentiated strategy, the concentrated strategy, and the differentiated
strategy.
e) undifferentiated strategy, the concentrated strategy, and the differentiated
strategy.
Pillsbury defines all purchasers of flour as its target market. What targeting
strategy would be most appropriate in this case?
a) Concentrated
b) Differentiated
c) Wide appeal
d) Undifferentiated
e) Clustered
d) Undifferentiated
When a firm designs a single marketing mix and directs it at an entire market
for a particular product, the company is using a(n) _________ strategy.
a) concentrated targeting
b) differentiated
c) heterogeneous market
d) undifferentiated
e) single mix
d) undifferentiated
Why would a company use the undifferentiated strategy?

a) The needs of individual consumers are dissimilar, and distinctive marketing
mixes are required to satisfy them.
b) The undifferentiated strategy is the one strategy that provides maximum
satisfaction to the whole market.
c) The needs of individual consumers in the target market for a specific
product are similar, so the organization can satisfy most customers with a
single marketing mix.
d) The undifferentiated strategy is expensive to implement but tends to
produce the most sales.
e) The undifferentiated strategy requires less time and fewer resources
c) The needs of individual consumers in the target market for a specific product
are similar, so the organization can satisfy most customers with a single
marketing mix.
When the needs of individual consumers in a target market for a specific

product are similar and the organization can satisfy most customers with a
single marketing mix, the best approach to use may be the ___________
strategy.
a) undifferentiated
b) differentiated
c) segmented
d) concentrated
e) heterogeneous
a) undifferentiated
Which of the following statements about the undifferentiated targeting strategy

is false?
a) The undifferentiated targeting strategy should be used when the needs of
individual customers are similar.
b) The undifferentiated targeting strategy uses one promotional program
aimed at everyone in the target market.
c) The undifferentiated targeting strategy is good for use with staple items,
such as sugar and salt.
d) The undifferentiated targeting strategy uses multiple distribution systems to
best reach individuals in the target market.
e) The opposite of the undifferentiated targeting strategy is the differentiated
targeting strategy.
d) The undifferentiated targeting strategy uses multiple distribution systems to
best reach individuals in the target market.
The ProMark Company manufactures and sells only one type of ballpoint pen
at just one price. All its advertising is the same and is directed at the mass
market. What type of targeting strategy is the ProMark Company using?
a) Extensive
b) Undifferentiated
c) Concentrated
d) Intensive
e) Differentiated
b) Undifferentiated
Marketers for C & H Sugar believe that consumers have similar needs for the
product. C & H will most likely use a(n) ___________ approach in defining a
target market.
a) undifferentiated
b) differentiated
c) product strategy
d) cost-benefit
e) demographic
a) undifferentiated
If Morton Salt saw all table salt customers as pretty much alike and thus
offered only one marketing mix, it would be using the ___________ strategy.
a) directed
b) undifferentiated
c) segmented
d) differentiated
e) product-use
b) undifferentiated
A market in which a large proportion of customers have similar needs for a

product is called a(n) _____ market.
a) undifferentiated
b) heterogeneous
c) homogenous
d) differentiated
e) concentrated
a) undifferentiated
The undifferentiated targeting strategy for finding a target market will likely not
be successful if
a) product positioning is needed.
b) the firm defines the total market as its target market.
c) people within the market have heterogeneous needs.
d) people within the market have homogeneous needs.
e) the firm is capable of developing a single marketing mix that satisfies all
people's needs.
c) people within the market have heterogeneous needs.
Most markets for products are made up of individuals or groups with diverse
needs for products and are called ________ markets.
a) undifferentiated
b) concentrated
c) homogenous
d) differentiated
e) heterogeneous
e) heterogeneous
Toyota has learned that some people want sports cars, while others want
vans, trucks, sedans, and economy cars. In this instance, Toyota has found its
markets to be
a) heterogeneous.
b) undifferentiated.
c) concentrated.
d) homogeneous.
e) focused.
a) heterogeneous.
Individuals, groups, or organizations with one or more similar characteristics

that cause them to have similar product needs are classified as
a) market segments.
b) heterogeneous markets.
c) concentrated markets.
d) demographic segments.
e) strategic segments.
a) market segments.
Mattel views the toy market as composed of four age groupings, each with
different needs and desires. Each of these groups are known as
a) an undifferentiated market.
b) heterogeneous.
c) a market segment.
d) a marketing mix.
e) a concentrated market.
c) a market segment.
The purpose of market segmentation is to

a) differentiate products.
b) divide a total market to enable a marketer to develop a more precise
marketing mix.
c) reduce the overall cost of marketing activities.
d) identify a single marketing mix that will be satisfactory for the general
market.
e) meet the needs of homogeneous markets.
b) divide a total market to enable a marketer to develop a more precise marketing
mix.
The process of dividing a total market into market groups because people
within each group have relatively similar product needs is called
a) segmentation.
b) diversification.
c) target marketing.
d) concentration.
e) customization.
a) segmentation.
Several conditions must exist for market segmentation to be successful. These

conditions include all of the following except
a) the total market should be divided so that segments can be compared on
sales potential, costs, and profits.
b) customers' needs for the product must be homogeneous.
c) the company must be able to reach the chosen segment with a particular
marketing mix.
d) segments must be identifiable and divisible.
e) at least one segment must have enough profit potential to justify developing
and maintaining a special marketing mix for that segment.
b) customers' needs for the product must be homogeneous.
A business advantage of the concentrated targeting strategy for any company

is that it
a) requires less market research and information.
b) requires less intensive analysis of customers' characteristics and needs.
c) allows a firm to utilize all of its production capacity.
d) maintains the firm's flexibility in moving into other market segments.
e) allows a firm to develop a special marketing mix for a single market
segment.
e) allows a firm to develop a special marketing mix for a single market segment.
A targeting strategy in which an organization targets a single market segment

using one marketing mix is called a(n) _____ strategy.
a) selective
b) focused
c) differentiated
d) concentrated
e) undifferentiated
d) concentrated
When markets are comprised of people with differing product needs, the
marketing manager should use a(n) ___________ strategy.
a) concentrated or differentiated targeting
b) market-intensive
c) integrated
d) product-oriented
e) undifferentiated
a) concentrated or differentiated targeting
A disadvantage of the concentrated targeting strategy is that

a) the firm's financial condition is tied to a single and specialized marketing
mix.
b) large sales volumes cannot be generated.
c) production costs may be higher than with other strategies.
d) marketing personnel may become dissatisfied with the limited opportunities
provided by this approach.
e) marketing costs are often higher than for other strategies.
the firm's financial condition is tied to a single and specialized marketing mix.
If Jaguar focused all its marketing efforts for the new Jaguar XKR on
professionals earning more than $250,000, it would be using a(n)
___________ strategy.
a) homogeneous
b) undifferentiated
c) multisegmented
d) concentrated
e) stratified
d) concentrated
Tiffany's markets its exclusive jewelry and gifts to high-income individuals

interested in high-quality products and a well-known brand name. It uses the
same marketing mix to reach this market. Tiffany's uses a(n) ______ strategy.
a) undifferentiated
b) differentiated targeting
c) exclusive targeting
d) heterogeneous
e) concentrated targeting
e) concentrated targeting
Interior Designs Inc. sells expensive custom-made draperies, bedding, and

accessories using a single marketing mix and is therefore most likely using
a(n) _____ targeting strategy.
a) concentrated
b) differentiated
c) exclusive
d) focused
e) undifferentiated
a) concentrated
The primary advantage of a concentrated targeting strategy is

a) it meets the needs of a wide range of consumers.
b) it allows a firm to specialize to meet specific customer needs.
c) it is more flexible than any other approach.
d) it is the least risky targeting approach.
e) its customers are the most willing to repurchase the same brands.
b) it allows a firm to specialize to meet specific customer needs.
Procter & Gamble markets Cheer detergent to young singles and couples and
Tide detergent to families. Procter & Gamble is using a(n) ___________
targeting strategy for laundry detergents.
a) multiuse
b) differentiated
c) stratified
d) undifferentiated
e) concentrated
b) differentiated
. Volkswagen markets its Routan to large families, its R32 racecar to men, and
its Jetta to young singles. What targeting approach is Volkswagen using?
a) Concentrated
b) Strategic
c) Differentiated
d) Undifferentiated
e) Multisegmented
c) Differentiated
A targeting strategy in which an organization directs its marketing efforts at

several segments is called a(n) ___________ targeting strategy.
a) differentiated
b) total market
c) concentrated
d) undifferentiated
e) integrated
a) differentiated
Which of the following products is most likely to be marketed, using an
undifferentiated approach?
a) bicycle
b) computer
c) notebook
d) seasoning salt
e) oscillating fan
d) seasoning salt
After a firm has identified an appropriate targeting strategy, the next step in the
target market selection process is
a) determining the demographic variables of the target market.
b) developing market segment profiles.
c) determining which segmentation variables to use.
d) selecting specific target markets.
e) evaluating relevant market segments.
c) determining which segmentation variables to use.
Characteristics of individuals, groups, or organizations that are used for

dividing a total market into smaller homogeneous groups are called
___________ variables.
a) marketing
b) classification
c) segmentation
d) stratification
e) dividing
c) segmentation
Age, rate of product use, location, and gender are all examples of common
a) demographic variables.
b) geographic characteristics.
c) targeting strategies.
d) psychographic variables.
e) segmentation variables.
e) segmentation variables.
Segmentation variables are usually grouped into four categories:

a) demographic, geographic, religion, and income.
b) geopolitical, income, behavioristic, and psychographic.
c) attitudes, lifestyles, behaviors, and gender.
d) geographic, demographic, psychographic, and attitudes.
e) demographic, geographic, psychographic, and behavioristic.
e) demographic, geographic, psychographic, and behavioristic.
Which of the following is not one of the major categories of consumer market
segmentation variables?
a) Demographic characteristics
b) Geographic variables
c) Psychographic dimensions
d) Situational variables
e) Behavioristic characteristics
d) Situational variables
Alpine Ski Shops U.S, is looking for new markets. Since their market is based
mainly on access to snow, they would most likely use which base for
segmentation?
a) behavioristic
b) demographic
c) psychographic
d) environmental
e) geographic
e) geographic
McDonald's uses a segmentation strategy for its sandwiches based on market

characteristics such as age, gender, or income. Which of the following
segmentation variables is McDonald's using?
a) Demographic
b) Geographic
c) Psychographic
d) Product-related
e) Education
a) Demographic
With its Venus razor, Gillette was the first marketer to offer a triple blade razor
specifically designed for women. This is an example of market segmentation
using ___________ variables.
a) demographic
b) psychographic
c) geographic
d) family life cycle
e) product use
a) demographic
Kelly's Kids is a home-based business that sells high-quality children's clothing

at premium prices using in-home parties. These in-home parties typically cater
to families with small children and middle- to upper-middle-class income.
Kelly's Kids is using _____ variables to segment its market.
a) demographic
b) psychographic
c) sociographic
d) behavioristic
e) geographic
a) demographic
Cosmopolitan magazine, Secret deodorant, and Eve cigarettes are all

products whose marketers have used segmentation based on
a) age.
b) education.
c) product use.
d) gender.
e) income.
d) gender.
A marketer that targets customers based on marital status and the presence
and age of children is using
a) behavioristic segmentation.
b) lifestyle variables.
c) psychographic variables.
d) family life cycle.
e) phase of life segmentation.
d) family life cycle.
Which of the following products is most likely to have its market segment
based on age?
a) Bass shoes
b) Lipton Iced Tea
c) Bic pens
d) Legos
e) Carpet
d) Legos
If Campbell were to offer single serving "Soup for One" packages to small
household markets, it would be using segmentation based on
a) income.
b) ethnicity.
c) taste.
d) geographic considerations.
e) family life cycle.
e) family life cycle.
Which of the following products is least likely to be segmented according to

stages in the family life cycle?
a) Single-family homes
b) Ford automobiles
c) European vacations
d) Diet Coke
e) General Electric appliances
d) Diet Coke
Family life cycle is most typically based on

a) income.
b) geographic location.
c) marital status and age of children.
d) occupation.
e) buying power.
c) marital status and age of children.
Population density and city size are _______ variables used for market
segmentation.
a) geographic
b) demographic
c) psychographic
d) environmental
e) geodemographic
a) geographic
Zerex markets its radiator liquid as a coolant in the South and an antifreeze in
the North. Which of the following segmentation variables is Zerex using?
a) Demographic
b) Psychographic
c) Life cycle
d) Geographic
e) Product use
d) Geographic
Many marketers are concerned about the number of potential customers within
a certain area of land because of the different requirements to serve dissimilar
areas. What is this segmentation variable called?
a) Micromarketing
b) Population
c) Market density
d) MSA
e) PMSA
c) Market density
Subaru is producing a new crossover van with all-wheel drive. Which of the
following would be a likely variable for segmenting the market for this new
model?
a) Religion
b) Geographic location
c) Income
d) Political views
e) Ethnicity
b) Geographic location
Systems such as PRIZM and Acorn provide companies with lifestyle and
demographic information about neighborhoods throughout the United States.
This information is used to aid
a) behavioristic segmentation.
b) geodemographic segmentation.
c) market density analysis.
d) demographic segmentation.
e) geographic segmentation.
b) geodemographic segmentation.
Justin Franklin's company is interested in locating areas where the average

income is high, the average age range is 25-35 years, and the lifestyles of the
people involve extreme adventures and dangerous leisure activities. His
company would most likely find possible markets through
a) U.S. Census Bureau information.
b) geographic segmentation variables.
c) geodemographic segmentation.
d) climate information.
e) psychographic segmentation.
c) geodemographic segmentation.
Micromarketing is
a) a market segmentation approach in which firms focus precise marketing
efforts on very small geographic markets.
b) developing a very specific marketing mix that will effectively meet the needs
of only a small segment of the market.
c) marketing efforts that are tightly controlled by high-level executives in the
organization.
d) a way to segment the market to meet the needs of individuals with the same
motives and personality attributes.
e) creating advertising that is so specific to a certain type of individual that few
people outside that micromarket will respond to the message.
a) a market segmentation approach in which firms focus precise marketing efforts
on very small geographic markets
Retail-site location analyses, unique product offerings, and special advertising

campaigns are all examples of the use of
a) market density.
b) demographic segmentation.
c) behavioristic segmentation.
d) environmental segmentation.
e) micromarketing.
e) micromarketing.
Which of the following is the biggest drawback to using psychographic

variables?
a) They are not strongly reflective of consumer behavior.
b) They are difficult to measure.
c) They give poor information about consumer needs.
d) They do not reflect socioeconomic characteristics of consumers.
e) The resulting segments are difficult to be reached.
b) They are difficult to measure.
The three most commonly used psychographic segmentation variables are

a) personality, perception, and learning.
b) personality, perception, and behavior.
c) motives, attitudes, and lifestyles.
d) attitudes, personality, and perception.
e) personality, motives, and lifestyles.
e) personality, motives, and lifestyles.
When research indicated that Bluetooth's products were not reaching the
correct target market, marketers of Bluetooth decided to change from
demographic segmentation to psychographic segmentation. Which group of
new segmentation variables will Bluetooth now be using?
a) Geographic location of customers
b) Age, sex, and socioeconomic characteristics
c) Social class variables
d) Personality characteristics, motives, and lifestyles
e) Family life cycle, social class, and religion
d) Personality characteristics, motives, and lifestyles
When using personality characteristics as a market segmentation variable,

marketers generally
a) conduct personality assessments of their potential target market to
determine which personality characteristics they possess.
b) use research developed by clinical psychologists to determine which
personality characteristics consumers using their products are most likely to
have.
c) use generic characteristics that all members of the population have.
d) use a positively viewed characteristic they assume much of their target
market has or would like to have.
e) conduct a series of focus groups to determine both the positive and
negative characteristics members of their target market are perceived to have.
d) use a positively viewed characteristic they assume much of their target market
has or would like to have.
The psychographic variable that includes numerous characteristics related to

people's activities, interests, and opinion is
a) motive.
b) social class.
c) personality.
d) stage in family life cycle.
e) lifestyle.
e) lifestyle.
If a company segments its market on the basis of their reasons for purchasing
a particular product, the primary segmentation variable in use is
a) lifestyle.
b) motives.
c) personality.
d) benefit expectations.
e) personality attributes.
b) motives.
Demographic variables such as income and occupation, as well as how people

spend their time and the importance of things in their surroundings, are all
factors considered in ______ segmentation.
a) psychographic
b) social class
c) lifestyle
d) personality
e) family life cycle
c) lifestyle
A widely used system for classifying individuals on the basis of lifestyle is

a) VALS.
b) PRIZM.
c) CMSA.
d) LIFO.
e) Prospect Zone.
a) VALS.
Which of the following is an example of a behavioristic segmentation variable?

a) Family size
b) Climate
c) Age
d) Usage rate
e) Personality characteristics
d) Usage rate
Budweiser may choose to segment its market based on heavy, moderate, and
light drinkers of its alcoholic beverages. This is an example of market
segmentation based on
a) behavioristic variables.
b) benefits.
c) lifestyles.
d) psychographic variables.
e) demographic variables.
a) behavioristic variables.
End use, price sensitivity, and brand loyalty are all _____ variables that can be
used in market segmentation.
a) psychographic
b) usage
c) demographic
d) geodemographic
e) behavioristic
e) behavioristic
Alli segments its diet pills based on those who have morning cravings, those
who tend to overeat near the end of the day, those who need all day long
appetite suppression, and those who want appetite control and more energy.
This is an example of market segmentation based on variables of
a) demographics.
b) lifestyles.
c) psychographics.
d) behavior.
e) personality characteristics.
d) behavior.
The division of a market according to what benefits consumers want from the
product is called ______ segmentation.
a) behavioristic
b) product usage
c) benefit
d) end-purpose
e) advantage
c) benefit
Variables such as geographic location, type of organization, customer size,

and type of product usage are used to segment ___________ markets.
a) consumer
b) business
c) government
d) international
e) most target
b) business
Dell segments its business markets into small business, corporate,

government agencies, K-12 schools, and higher education institutions. The
primary segmentation variable used in this example is
a) geographic location.
b) type of organization.
c) secondary product use.
d) customer size.
e) market potential.
b) type of organization.
Which of the following variables would most likely be used to segment a

business market?
a) An attitude of the company's CEO
b) The geographic location of the company
c) The lifestyle of the company's buying agent
d) Net income generated by the company
e) Common opinions of the company's employees
b) The geographic location of the company
Through marketing newsprint to newspaper publishers and glass

manufacturers that use it in packing, International Paper segments its market
based on
a) customer size.
b) psychographics.
c) demographics.
d) use of product.
e) geographic location.
d) use of product.
Bethlehem Steel provides steel for a variety of uses to its various customers.
Customers have different needs for the steel and thus Bethlehem has to
prepare the raw steel differently depending on how customers will use it in
their production processes. The primary business segmentation variable in this
example is
a) geographic location.
b) customer size.
c) product use.
d) customer importance.
e) organization classification.
c) product use.
After an organization has determined which of the many segmentation

variables it will use, the next step in the target market selection process is
a) evaluating each of the relevant market segments.
b) selecting the specific target markets.
c) reviewing the appropriate marketing strategy.
d) analyzing the interaction between segmentation variables.
__________ describe the similarities among potential customers within a

market segment and explain the differences among people in different market
segments.
a) Market segmentation variables
b) Market segment profiles
c) Segmentation grids
d) Market differentiation indexes
e) Market concentrations
b) Market segment profiles
Yvonne and Garret are looking at information about how their organization's
products could fit potential customers' needs. This information deals with
demographic characteristics, product benefits sought, lifestyles, geographic
factors, brand preferences, and usage rates. They are most likely looking at
a) the sales force survey results.
b) the results of sales forecasting.
c) a market trend analysis.
d) a market segmentation discrimination analysis.
e) a market segment profile.
e) a market segment profile.
The total volume of a product, for all firms in an industry, that would be
purchased by specific customer groups within a specified time period at a
given level of industry-wide marketing activity, is the
a) competitor sales potential.
b) sales objective.
c) forecasted sales.
d) company sales potential.
The maximum percentage of market potential that an individual firm can

expect to obtain for a specific product is the
a) sales forecast.
b) market potential.
c) company sales potential.
d) company sales objective.
e) market share goal.
c) company sales potential.
General Electric calculates that the total number of light bulbs sold to
consumers in the next year by all light bulb producers is 1 billion, given
anticipated marketing efforts by the firms involved. This figure represents the
industry's
a) sales potential.
c) target growth rate.
d) sales forecast.
e) sales objective.
If Baskin-Robbins calculates that it could sell up to 25 percent of all ice cream

cones sold in the United States, this percentage would represent the ice cream
marketer's
a) target growth rate.
b) sales forecast.
c) sales objective.
Using the breakdown approach to sales potential, estimates are made

a) by referring to specific geographic factors.
b) by establishing levels of marketing effort that will be required to achieve
specific levels of sales.
c) without reference to industry marketing efforts.
d) without reference to general economic conditions.
e) by starting with general economic conditions.
e) by starting with general economic conditions.
The manager at a local recreational vehicle store, Off-Road Rage, believes the
next two years will be difficult because of an economic recession. Using this
forecast, he determines the effect on the industry's market potential and then
estimates how his company's potential sales will look based on this outlook.
This manager is using a _________ approach to estimating sales potential.
a) breakdown
b) recessionary
c) buildup
d) pyramid
e) dimensional
a) breakdown
Alex Wren of Owens Corning Fiberglass talks to Terry Jones, a homebuilder,

to find out how much fiberglass insulation he intends to use in building homes
during the next year. Albert then multiplies that number by the total number of
builders in the territory. He is using a ___________ approach to measure
sales potential.
a) multivariable
b) use of product
c) breakdown
d) regression
e) buildup
e) buildup
The buildup approach measure of sales potential

a) starts with broad estimates of general economic activity.
b) ends with an estimate of a single firm's sales of a specific product.
c) starts with forecasts about demand for a specific product within a relatively
small area.
d) does not use sales estimates.
e) is seldom employed by industrial firms.
c) starts with forecasts about demand for a specific product within a relatively
small area.
When evaluating market segments, assessment of competitors is important

because
a) it is difficult to segment a market when it has multiple competitors.
b) an absence of competitors usually creates difficulties in accurately
measuring segment sales potential.
c) sales estimates may cause a segment to appear to be lucrative, but there
may be several competitors that together have a large share of that segment.
d) a competitive analysis may lead to confusion as to who are the key
competitors.
e) competition is generally not a major problem as long as a marketer is aware
of it.
c) sales estimates may cause a segment to appear to be lucrative, but there may
be several competitors that together have a large share of that segment.
Estimating the cost of entering a market and focusing on a specific target

segment is important because
a) cost estimates are crucial to estimating sales potential accurately.
b) higher costs will keep other potential competitors from entering that
particular segment.
c) customers are more likely to be attracted to marketers that invest heavily in
the target segment.
d) the organization's marketers need to know if they can reach the segment at
costs equal to or below competitors' costs.
e) higher cost generally ensures long-term success.
d) the organization's marketers need to know if they can reach the segment at
costs equal to or below competitors' costs.
The final step in the target market selection process is

a) implementing the appropriate marketing mix for the target market.
b) evaluating relative market segments.
c) eliminating market segments that are cost prohibitive.
e) revising the final segmentation variables based on target selection.
Frito-Lay Snack Foods is currently conducting market segmentation studies.

For several segments, they have completed competitive assessments and
cost estimates. The next major step they must take is to
a) determine which segmentation variables to use.
b) develop market segment profiles.
c) identify the appropriate targeting strategy.
d) select specific target markets.
e) develop sales forecasts.
d) select specific target markets.
When a marketer is engaged in the target market selection process and has
assessed relevant market segments by considering such factors as sales
estimates, competition, and estimated costs, the marketer is ready for the next
step, which is to
a) identify the appropriate targeting strategy.
b) determine which segmentation variables to use.
c) develop market segment profiles.
d) evaluate relevant market segments.
e) select specific target markets.
e) select specific target markets.
When selecting specific target markets, a firm should

a) revert to an undifferentiated approach if the market is deemed
heterogeneous.
b) choose the segments most in line with the firm's objectives and long-term
growth.
c) choose all segments that are determined to be profitable for the
organization.
d) choose the minimum number of segments necessary to achieve company
sales potential.
e) pick the segments with the best sales forecasts for the upcoming period of
time.
b) choose the segments most in line with the firm's objectives and long-term
growth.
. Evaluating and making product positioning decisions is important for

a) new products only.
b) existing products only.
c) new and existing products.
d) product deletions only.
e) new products and product deletions.
c) new and existing products.
Product positioning refers to

a) the area in retail stores in which the manufacturer strives to position its
products.
b) product price but not to product image.
c) product image but not to product price.
d) the decisions and activities intended to create and maintain a certain
concept of the firm's product in customers' minds.
e) the length of time a product has survived in the market.
d) the decisions and activities intended to create and maintain a certain concept
of the firm's product in customers' minds.
All of the following statements about product positioning are true except
a) product positioning decisions are not only for new products.
b) product positioning is the customer's absolute perception of a product's
attributes.
c) effective product positioning helps serve a specific market segment by
creating an appropriate concept in the minds of customers in that market
segment.
d) product positioning is concerned with creating and maintaining a certain
concept of the firm's product in customers' minds.
e) when marketers position a product, they try to position it so that it seems to
possess the characteristics the target market desires.
b) product positioning is the customer's absolute perception of a product's
attributes.
Pepsi wants to know where its Sierra Mist soft drink fits in with other drinks in
the mind of the consumer. Marketers question a sample of consumers about
Sierra Mist and other drinks on two different dimensions. They will most likely
put this information into a _____ to show Sierra Mist's position.
a) perceptual map
b) ideal cluster
c) product position chart
d) market graph
e) product matrix
a) perceptual map
If PepsiCo and Coca-Cola use celebrities to challenge the taste of the other
firm's cola, this is referred to as ___________ positioning.
a) direct
b) focused
c) head-to-head
d) avoidance
e) parallel
c) head-to-head
Positioning a product to avoid competition may be best when the
a) competing products are priced higher than or at least equal to the new
product.
b) company has an established reputation with the consumers of that
particular market.
c) market is characterized by consumers who are not sensitive to price or
value.
d) market is characterized by consumers who are price conscious and brand
specific.
e) product's performance characteristics are not significantly different from
those of competing brands.
e) product's performance characteristics are not significantly different from those
of competing brands.
When a company is introducing a new brand in a market where it already has

one or more brands, which type of product positioning is most likely to be
used?
a) Positioning to avoid competition
b) Head-to-head competition
c) Parallel positioning
d) Segmented positioning
e) Counter positioning
a) Positioning to avoid competition
If a company extends a line of products by introducing a new product to the

market, and the firm does not distinctly position this product (i.e., separately
from the other products in the line), the result could be
a) poor product positioning.
b) product deletion.
c) product repositioning.
d) cannibalization.
e) new-product development.
d) cannibalization.
In the context of marketing, cannibalization means

a) one company eating up another company's market share.
b) sales of a new product hurts sales of the company's existing products.
c) a product is past its prime and should be deleted from the product mix.
d) a company illegally uses copyrights and patents from another company.
e) sales of a new product may exceed sales of an older, more established
product.
b) sales of a new product hurts sales of the company's existing products.
Guess? will be spending $22 million on marketing activities next year and
expects to sell 30 million pairs of jeans. These 30 million pairs represent the
company's
a) sales potential.
c) sales forecast.
d) market sales.
e) selected market.
c) sales forecast.
The amount of product a company expects to sell during a specific period at a

specified level of marketing activity is called the
a) company sales potential.
b) revenue estimate.
c) company sales prediction.
d) market potential.
e) sales forecast.
e) sales forecast.
All of the following are categories of common forecasting techniques for

business except
a) surveys.
b) time series analysis.
c) customer determined.
d) executive judgment.
e) market tests.
c) customer determined.
Relying on executive judgment for forecasting may be adequate when

a) levels of marketing efforts put forth by competitors vary considerably.
b) recent events give the executive specific impressions of product demand.
c) product demand is erratic.
d) the executive conducts surveys.
e) the executive has considerable experience and product demand is relatively
stable.
e) the executive has considerable experience and product demand is relatively
stable.
Intuition and expediency are primary characteristics of which of the following
sales forecasting methods?
a) Surveys
b) Executive judgment
c) Cycle analysis
d) Market tests
e) Industry indicators
Company sales forecasts are least likely to be based on

a) executive judgment.
b) customer surveys or sales force surveys.
c) time series analysis.
d) market tests.
e) single-variable segmentation.
e) single-variable segmentation.
When a business has a relatively small number of customers, a preferred

method of forecasting is
a) regression analysis.
b) trend analysis.
c) the Delphi technique.
d) a market test.
e) a customer forecasting survey.
e) a customer forecasting survey.
The most important reason that a firm might use a sales force forecasting
survey to determine its sales forecast is
a) salespeople are generally optimistic about the future and will provide
excellent forecast targets.
b) most salespeople tend to have a pessimistic outlook, which is more likely to
result in an achievable sales forecast.
c) this tends to be the fastest way to determine a good sales forecast for the
upcoming period.
d) the averaging and other statistical techniques applied to these forecasts
result in extremely accurate numbers.
e) the sales staff is closer to the actual customers on a regular basis than
anyone else in the organization.
e) the sales staff is closer to the actual customers on a regular basis than anyone
else in the organization.
When a company has its sales forecasts prepared by management
consultants, economists, or college professors, it is using a(n)
a) expert forecasting survey.
b) Delphi technique.
c) random factor analysis.
d) external judgment survey.
e) market test.
a) expert forecasting survey.
Often, the Delphi technique is used in conjunction with an expert forecasting

survey. The major objective is to
a) allow an opportunity to obtain diverse expert opinions.
b) allow experts to work separately to reach a consensus as to their forecasts.
c) reach an accurate sales forecast through the use of multiple sales
forecasting techniques.
d) determine if the expert forecasting survey is superior to regression analysis.
e) assess the extent to which this year's sales forecast is more accurate than
that of previous years.
b) allow experts to work separately to reach a consensus as to their forecasts.
The forecasting techniques that assume past sales patterns will continue into
the future are all variations of
b) random factor analysis.
c) seasonal analysis.
d) time series analysis.
e) past sales forecasting surveys.
d) time series analysis.
A forecasting method that predicts sales based on relationships between past

sales and other variables is called
b) customer forecasting surveys.
c) the Delphi technique.
d) random factor analysis.
e) time series analysis.
While developing a company sales forecast at Safeway, Barb Herrington

discovered a pattern in sales volume over the past five years. She likely used
which sales forecasting technique?
a) Surveys
c) Time series analysis
d) Market tests
e) Regression analysis
Katy Ramirez is a marketer for a golf equipment manufacturer. When

forecasting company sales, she finds a direct association between past sales
and per capita income. Which sales forecasting technique is Katy using?
a) Surveys
d) Market tests
The sales prediction technique based on the correlation between sales and
other factors—such as population density, per capita income, or family size—
is
a) executive judgment.
b) time series analysis.
c) regression analysis.
d) a market test.
e) an expert survey.
c) regression analysis.
The Sara Lee Company is attempting to forecast sales for a new ice cream
cake. To come up with an accurate forecast, Sara Lee places the product in
Atlanta supermarkets for a period of four months. In this instance, Sara Lee is
using which forecasting method?
a) Time series analysis
b) Market test
c) Executive judgment
d) Regression analysis
e) Survey
b) Market test
The sales forecasting method that consists of making a product available to
buyers in one or more locations and measuring purchase response is
a) a market test.
b) regression analysis.
c) trend analysis.
d) a survey.
e) the Delphi technique.
a) a market test.
The forecasting method that utilizes a firm's historical sales data to find
patterns in the firm's sales volume over time is
a) the regression method.
b) customer forecasting.
c) a market test.
d) sales force forecasting.
In an effort to forecast his firm's sales for the coming year, Henry Thompson
takes sales for the last three years and calculates a growth trend. Henry is
employing which forecasting method?
bExecutive judgment
c) Surveys
d) Regression analysis
e) Market tests
Which of the following sales forecasting techniques would generally be most

suitable for estimating sales of a new product?
a) Executive judgment
b) Customer surveys
d) Market tests
e) Regression methods
d) Market tests
Which of the following forecasting methods is least dependent on historical

sales data?
a) Regression analysis
b) Trend analysis
d) Cycle analysis
e) A market test
e) A market test
What is the main problem with using a market test as a forecasting tool?
a) Difficult to interpret
b) Expensive
c) Inaccurate
d) Unacceptable to consumers
e) Overused
b) Expensive
T F A market is a group of people who, as individuals, have needs for products

in a product class and have the ability, willingness, and authority to purchase
such products.
t
T F Individuals' ability to buy depends on the amount of their buying power.

t
T F The four requirements of a market are that the individuals in the market
must have a need for the product and the ability, willingness, and authority to
buy it.
t
T F A person who has buying power also has the authority to buy.
f
T F The five-step process usually used for target market selection includes
identifying the appropriate targeting strategy, determining which segmentation
variables to use, developing market segment profiles, evaluating relevant
market segments, and deciding which targeting strategy to use.
f
T F There are only two basic strategies for selecting target markets: the
undifferentiated targeting strategy and the concentrated targeting strategy.
f
T F A company sometimes defines a total market as its target market.

t
T F One condition for effective segmentation is that at least one segment must
have substantial profit potential.
t
T F A firm using a concentrated targeting strategy aims its marketing activities

at one segment of a market.
t
T F The undifferentiated strategy can be effective for an organization that has

a homogeneous market and can develop and maintain a single marketing mix.
t
T F An undifferentiated targeting strategy does not target a single market with

one marketing mix.
f
T F The concentrated targeting strategy is one in which an organization directs

its marketing efforts toward a single market segment through one marketing
mix.
t
T F A differentiated targeting strategy is when the organization targets two or

more markets by developing a single marketing mix.
f
T F Only one variable can be used to segment a market.

f
T F Segmentation variables are characteristics of individuals, groups, or

organizations in a total market.
t
T F A segmentation variable is used to group smaller markets into one larger
market.
f
T F Demographic characteristics are commonly used to segment a market

because they are closely related to consumers' product needs and purchasing
behavior.
t
T F Family life cycle is a psychological dimension used for segmenting

markets.
‫في حال وجود مشاكل دراسية يرجى التواصل‬

BY : Ibrahim Yousef ALsalman
MOB. 0785059665
Facebook.com/Ibraheem.ys
‫القروب االكاديمي‬.
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Multiple Choice Questions And Answers

‫ألقروب االكاديمي لقسم التسويق‬

‫مالحظة هامة جدا‬

Chapter 1—Customer-Driven Strategic Marketing

41. The marketing environment is best described as being

42. The marketing concept is best defined as

Use the following to answer questions 84-88:

‫االجابة في نهاية السؤال‬

a) environmental scanning and analysis.

Collecting information from secondary sources such as business, government,

Three primary methods of collecting information for environmental scanning

a) marketing research, company records, and advance orders.

Marketers who attempt to influence and change the various environmental

When marketers define their target market, they establish a set of

Marketers primarily focus their environmental analysis on ____ competitors.

In today's marketing environment, competitors can take on many forms. For

Due to limited resources, a consumer decided to serve Hawaiian Punch to a

___________ competitors are the most significant to marketers because

The four major competitive structures are

a) monopolies, oligopolies, oligopolistic monopolies, and pure competition.

The American automobile industry used to be dominated by "The Big Three,"

Most marketers operate in a competitive environment of either

J. Pitner Clothing is a medium-size specialty men's and women's clothing

In general, which of the following competitive structures is an organization

a) monopolies and oligopolies.

a) watching for increases and decreases in competitors' prices and match

Which of the following attributes of a Toyota Scion would be most appropriate

Total buying power declines during periods of economic

Although marketing theory supports the contrary, it is more probable that

Consumer confidence is at a low during periods of

Consumer confidence and willingness to spend begins to increase during

Why are marketers interested in consumers' levels of disposable income?

a) It accurately predicts future buying power.

The amount of money received through wages, rents, investments, pensions,

Which category of income are marketers most interested in?

What is the most important factor in distinguishing disposable income from

A person's buying power is a function of

Discretionary income is associated with all of the following except

The accumulation of past income, natural resources, and financial resources is

a) expand future buying power at the expense of current buying power.

When using credit to make purchases, consumers are

a) decreasing current buying power and increasing future buying power.

a) Political officials can influence how much a government agency purchases

One way for corporations to attempt to influence the political environment is

a) special benefits to employees.

Which of the following acts was enacted to prevent businesses from

a) Sherman Antitrust Act

a) Sherman Antitrust Act

Procompetitive laws are those designed to

International Office Supplies Wholesaler charges different prices to its various

Price discrimination is prohibited by the ___________ Act.

The 1990 Nutritional Labeling and Education Act directly prohibits

a) exaggerated claims made by health and fitness products.

Which of the following are the most frequently sentenced organizational

a) False advertising and price discrimination

a) Food and Drug Administration (FDA)

a) Consumer Product Safety Commission

The FTC can issue a cease-and-desist order, which is an injunction to

a) report to the FTC immediately.

Which of the following agencies regulates marketing activities the most?

a) Food and Drug Administration

In its advertisements for Bud Light beer, Anheuser-Busch has decided to

The Pharmaceutical Research and Manufacturers of America sets guidelines