89 test bank for m marketing 4th edition by grewa1

89 Test Bank for M Marketing 4th Edition by Grewal
Multiple Choice Questions - Page 1
The evolution of marketing progressed along the following
continuum:
1.

sales, marketing, value-based marketing, production.

2.

marketing, value-based marketing, production, sales.

3.

value-based marketing, production, sales, marketing.

4.

production, sales, marketing, value-based marketing.

5.

sales, value-based marketing, marketing, production.

Near the end of the model year, Move-Them-Out automobile
dealership had an unusually high inventory level. The manager
increased her advertising spending and gave extra incentives to its
salespeople. Move-Them-Out operates as if it were in the
__________ era.
1.

production-oriented

2.

sales-oriented

3.

market-oriented

4.

value-based marketing

5.

retailing-oriented

The idea that a good product will sell itself is associated with the
__________ era of marketing.
1.

production-oriented

2.

sales-oriented

3.

market-oriented

4.

value-based marketing

5.

retailing-oriented


Some discount stores put products in large bins and let consumers
hunt and find bargains. The price these consumers pay includes
1.

only the actual price they pay at the register.

2.

the value of their time and energy.

3.

the excitement they experience in finding an item they desire.

4.

5.

the savings to the store of not having to display the products neatly on

shelves.
the time the product was full price and didn't sell.

Many U.S. companies first discovered marketing during the
__________ era.
1.

production-oriented

2.

sales-oriented

3.

market-oriented

4.

value-based marketing

5.

retailing-oriented

The fundamental goal of marketers when creating goods, services,
or combinations of both, is to
1.

defeat the competition.

2.

serve all consumers.

3.

operate according to government regulations.

4.

stimulate short-term sales.

5.

create value.

Many universities provide physical or electronic bulletin boards to
facilitate ride-sharing and exchange of used books among students.
These bulletin boards increase __________ marketing.
1.

B2C


2.

C2B

3.

B2B

4.

C2C

5.

underground

The marketing goal of getting the right quantities to the right
locations at the right time relates to
1.

communicating the value proposition.

2.

supply chain management.

3.

service marketing.

4.

capturing value.

5.

price and performance management.

Which of the following is a core aspect of marketing?
1.

satisfying as many needs as possible

2.

creating a product that everyone will want to buy

3.

setting prices lower than all competitors

4.

making product, place, promotion, and price decisions

5.

increasing the company's profit

Henry Ford's statement, "Customers can have any color they want
so long as it's black," typified the __________ era of marketing.
1.

production-oriented

2.

sales-oriented

3.

market-oriented

4.

value-based marketing

5.

retailing-oriented


The four Ps make up the marketing mix, which is the __________
set of activities that the firm uses to respond to the wants and
needs of its target markets.
1.

unpredictable

2.

external

3.

internal

4.

controllable

5.

global

During the __________ era, firms had excess capacity and used
personal selling and advertising to generate customers.
1.

production-oriented

2.

sales-oriented

3.

market-oriented

4.

value-based marketing

5.

retailing-oriented

When a T-shirt manufacturer states, "We only sell it in black
because that way we can buy plenty of black fabric and run our
plant efficiently," its statement reflects the views that were popular
in which era of the evolution of marketing?
1.

production-oriented

2.

sales-oriented

3.

market-oriented

4.

value-based marketing

5.

economics-oriented

As use of the Internet took off, car manufacturers were tempted to
sell directly to consumers, but decided instead to continue to sell

through their existing dealer networks. The car manufacturers
considered switching from __________ to __________ marketing.
1.

B2C; B2B

2.

B2C; C2C

3.

B2B; B2C

4.

B2B; C2C

5.

C2C; B2C

Marketers must determine the price of a product carefully, based on
potential buyers' beliefs about
1.

its value.

2.

the environment.

3.

the cost to manufacture the product.

4.

the economic outlook.

5.

the product's new advertising campaign.

The importance of supply chain management is often overlooked in
the study of marketing because
1.

marketing has no responsibility for supply chain management.

2.

supply chain management doesn't add much value for customers.

3.

companies do not want customers to know anything about the supply chain.

4.

many of the activities take place behind the scenes.

5.

supply chain management is already transparent.

The prevailing marketing strategy of the __________ era was to
find customers for inventories that went unsold.
1.

production-oriented

2.

sales-oriented


3.

market-oriented

4.

value-based marketing

5.

retailing-oriented

Marketing has traditionally been divided into a set of four

interrelated decisions known as the marketing mix, or four Ps,
including all of the following EXCEPT
1.

product

2.

place

3.

performance

4.

promotion

5.

price

During the market-oriented era,
1.

a good product would sell itself.

2.

the customer was king.

3.

marketing was more important than production.

4.

advertising and personal selling were emphasized to make the sale.

5.

firms focused on value.

During the __________ era, manufacturers and retailers recognized
they needed to give their customers greater value than their
competitors did.
1.

production-oriented

2.

sales-oriented

3.

market-oriented

4.

value-based marketing

5.

retailing-oriented


Henriette offers financial counseling and management on a fee-only
basis. She has found that different customers are willing to pay
different rates for her services. This shows that her pricing
decisions should depend primarily on
1.

choosing an average price that she will charge all her clients.

2.

changes in technology allowing consumers to manage their own affairs.

3.

how different customers perceive the value of her services.

4.

changes in the economy.

5.

how much her competitors charge for similar services.

Jami sells construction equipment. Whenever she calls on her
building contractor customers, she asks whether they are having
any problems. In doing so, Jami is addressing which of the following
core aspects of marketing?
1.

Satisfying customer needs and wants

2.

The exchange function of marketing

3.

Product, place, promotion, and price decisions

4.

Decisions about the setting in which marketing takes place

5.

Creating value

Effective promotion enhances a product or service's
1.

supply chain management system.

2.

wholesaling capabilities.

3.

perceived value.

4.

design features.

5.

trialability.

Whenever Valerie has a new massage therapy customer, she
invites the person to be on her e-mail distribution list. In the


process, in addition to exchanging her massage therapy service for
payment, Valerie is gathering
1.

information.

2.

promotional capital.

3.

pricing data.

4.

value cocreation.

5.

feedback.

Four Winds Art Gallery recently began offering appraisals of
customers' art collections, in addition to continuing to sell paintings.
Four Winds is
1.

expanding from offering just services to also offering goods.

2.

implementing a market segmentation strategy.

3.

capturing value through multiple pricing strategies.

4.

expanding from offering just goods to also offering services.

5.

increasing customer value through inflated appraisal evaluations.

When considering career choices in marketing, many students
overlook supply chain management because
1.

it is considered too quantitative.

2.

marketing has no responsibility for supply chain management.

3.

companies generally outsource these activities, so there are rarely supply
chain jobs available.

4.

it only takes place in large, urban areas.

5.

many of the activities take place behind the scenes.

The Got Milk advertising campaign, designed to increase
consumption of milk, was intended to help market a(n)

1.

individual.


2.

firm.

3.

industry.

4.

organization.

5.

specific product.

UPS, FedEx, DHL, and other shipping companies support other
firms' __________ marketing goals.
1.

supply chain management

2.

value communication

3.

value capture

4.

retail management

5.

promotion

During the __________ era, manufacturers and retailers began to
focus on what consumers wanted and needed before they
designed, made, or attempted to sell their products.
1.

production-oriented

2.

sales-oriented

3.

market-oriented

4.

value-based marketing

5.

retailing-oriented

Marketers involved in value-oriented marketing are constantly
balancing
1.

promotional effectiveness with ethical advertising standards.

2.

the problem of price maximization with cost efficiency.

3.

customer benefits with costs of their offerings.

4.

the desire to achieve with the need for a stable source of supply.


5.

the goal of efficiency with the price charged by competitors.

Auction sites like eBay have increased opportunities for

__________ marketing.
1.

B2B

2.

C2C

3.

D2C

4.

C2D

5.

B2G

The basic difference between a good and a service is that a good
1.

provides intangible benefits.

2.

can be physically touched.

3.

is always less expensive than a corresponding service.

4.

generates greater interest among consumers.

5.

is more quickly forgotten by consumers.

Brian is struggling with the choice of publishing his new book, How
to Cook Polish Barbeque, as an e-book or a paperback. Brian is
addressing which core marketing aspect?
1.

developing a promotional plan

2.

managing the exchange function of marketing

3.

making product decisions

4.

deciding where and how to sell the product

5.

pricing the product

Marketing channel management is also known as
1.

endless chain marketing.

2.

a transactional orientation.


3.

wholesaling.

4.

product design.

5.

supply chain management.

When referring to exchange, marketers are focusing on
1.

the location where products and services are traded.

2.

the price charged, adjusted for currency exchange rates.

3.

location-based tactics for creating value.

4.

promotional offers designed to stimulate barter.

5.

the trading of things of value.

Marketing involves all of the following EXCEPT
1.

conducting exchanges.

2.

satisfying customer needs and wants.

3.

creating value.

4.

efforts by individuals and organizations.

5.

production scheduling.

Julia is considering a career in marketing. She is concerned about
the image of marketers as fast-talking, high-pressure people who
only care about making a sale. When reading about the core
aspects of marketing, Julia is relieved to see that in marketing
1.

all parties to an exchange should be satisfied.

2.

promotion is the most important consideration, followed by pricing decisions.

3.

decisions are made regarding how a product is designed.

4.

customers are not considered until the product is ready for sale.

5.

distribution is controlled by customers.


Marketing efforts designed to get the product or service to the right
customer, when that customer wants it, are called
1.

supply chain management.

2.

a transactional orientation.

3.

wholesaling.

4.

value cocreation.

5.

endless chain marketing.

Xavier is analyzing potential market segments. He should carefully
seek potential customers who have both an interest in his products
and a thorough knowledge of his brand messages.
1.

the ability to buy them.

2.

knowledge of competing products.

3.

the ability to negotiate discounts.

4.

are removed from traditional marketing alternatives.

Retailers accumulate merchandise from producers in large amounts
and sell to consumers in smaller amounts. Retailers function as
1.

market intermediaries.

2.

monopolists.

3.

regulators of consumer demand.

4.

wholesale specialists.

5.

intermediate promoters.

By promoting perfume based on youth, style, and sex appeal,
Calvin Klein is attempting to
1.

influence social norms regarding sexuality.

2.

encourage consumers to participate in product redesign.


3.

stimulate supply chain management cooperation.

4.

increase the perceived value of its products.

5.

demonstrate social responsibility.

__________ is communication by a marketer that informs,
persuades, or reminds potential customers about a product.
1.

Pricing

2.

Promotion

3.

Placement

4.

A relational orientation

5.

Value co-creation

Yesenia, the new university course scheduling manager, is
struggling with adjustments to the fall schedule. She is trying to
determine how to offer the classes students need at the times when
students need them. Yesenia is struggling with the marketing
function of
1.

communicating the value proposition.

2.

supply chain management.

3.

creating value.

4.

capturing value.

5.

value co-creation.

Melanie works for a small computer software company. Her boss is
constantly improving its products but neglecting customers, billing,
and promoting the company. Her boss is probably stuck in the
__________ era of marketing.
1.

production-oriented

2.

sales-oriented

3.

market-oriented


4.

value-based marketing

5.

retailing-oriented

89 Free Test Bank for M Marketing 4th Edition by
Grewal Multiple Choice Questions - Page 2
Leah is the marketing manager for an electronics company. While
on vacation in Ecuador, she visited electronics stores in the major
malls in Quito, the capital city. Most of her company's products
were available, except for smart phones. When she returned to
work, she mentioned this observation to her international sales
manager. Leah was providing the important marketing function of
1.

advising production on how much product to make.

2.

alerting the logistics department when to ship products.

3.

engaging customers, developing long-term relationships.

4.

identifying opportunities to expand.

5.

synthesizing and interpreting sales, accounting, and customer-profile data.

Marketing enriches society by
1.

focusing solely on maximizing profits.

2.

sponsoring charitable events.

3.

recognizing that the firm can do very little by itself, so it should stay focused
on its own core competencies.

4.

facilitating the smooth flow of goods through the supply chain.

5.

coordinating marketing functions with other functional areas in the company.

Marketing provides the critical function of __________ when
companies expand globally.
1.

managing production efficiency

2.

understanding customers


3.

managing personnel

4.

forecasting economic growth

5.

evaluating government stability

Many firms with complex products have missionary salespeople
who assist customers with problems and implementation programs.
These salespeople rarely sell products but often become involved in
and knowledgeable about specific customers' needs and wants.
These salespeople focus on a(n) __________ orientation with their

customers.
1.

transactional

2.

external

3.

relational

4.

internal

5.

divisional

In the past, manufacturers' representatives did not have up-tominute data about the products they were selling. Today,
manufacturers' representatives are often provided online access to
inventory data for the companies they represent. These online
inventory systems allow companies to become more value-driven
by
1.

sharing information across the organization.

2.

balancing customers' benefits and costs.

3.

evaluating strategic competitive partnerships.

4.

building relationships with government regulators of marketing institutions.

5.

keeping prices below those charged by competitors.

A friend of yours comments, "I'm starting my own business. I have a
perfect product that no one else can touch, but I have no use for
marketing. That's just for the mega-corporations." Which of the


following arguments would you NOT use in talking about
marketing?
1.

Marketing helps new ventures organize, operate, and assess risk.

2.

Marketers help address unmet customer needs, regardless of the size of the

firm.

3.

Marketing focuses on the product, but only as one element. Three other areas
are Promotion, Price, and Place.

4.

Marketers are skilled at communicating the value of the product to potential
customers.

5.

Marketing isn't essential now, but it will be in a year or two when the product
takes off.

Even though they operate from out-of-the-way airports and offer few
extra services, discount, no-frill airlines like Ryanair and EasyJet
have been successful. Consumers obviously consider
1.
2.

3.
4.

5.

the schedules these airlines offer to be the most convenient in the industry.
the long-term relationships established by these airlines to be a critical

benefit.
the prices to be slightly lower, but not low enough to have much influence.
the benefit of lower prices to be greater than the cost of reduced services and
less convenience.
the major airlines to be worthless.

The goal of customer relationship management is to manage every
customer relationship differently.
1.

manage every customer relationship to maximum short-term profitability.

2.

eliminate customers who are profitable, but not highly profitable.

3.

identify and build loyalty among a firm's customers.

4.

generate relationships with all of a firm's customers.


Janine was tired of her winter coat, so she sold it to her friend,
Marissa. This is an example of ________ marketing.
1.

B2B

2.

B2C

3.

C2B

4.

C2C

5.

BBC

Yolanda is the new restaurant manager in a major hotel. When
considering changes in the restaurant that will increase value to
customers, Yolanda will likely attempt to either provide the same
quality at a lower cost or
1.

improve products and services at the same cost.

2.

increase prices to increase revenue.

3.

offset higher hotel rates with lower restaurant prices.

4.

reduce customer expectations through reduced service.

5.

lower the quality and the price.

Internet sites, physical stores, and kiosks are most closely
associated with which element of the marketing mix?
1.

place

2.

price

3.

product

4.

promotion

5.

proximity

As owner of a retail franchise food store, Mary Gray purchases
supplies based on specials advertised nationally throughout the
franchise system. One Monday, she was surprised to find


customers asking for specials she hadn't been informed of in
advance. The franchise company failed to live up to the valuedriven activity of
1.

sharing information across the organization.

2.

balancing customers' benefits and costs.

3.

evaluating strategic competitive partnerships.

4.

building relationships with customers.

5.

keeping prices below those charged by competitors.

One of the benefits of value-driven marketing is that attention to
customer needs and wants will likely result in
1.

higher prices than the market leader charges.

2.

increased competition.

3.

long-term relationships.

4.

strong connections among competing firms in the marketplace.

5.

lower prices.

Many inventors struggle with the question, "I made it; now how do I
get rid of it?" They have made the error of considering marketing
as
1.

an afterthought.

2.

an integral part of a business plan.

3.

an accounting function.

4.

a profit center.

5.

important only for new products.

When an accounting firm provides an online training module
showcasing real-life decision lapses and their negative effect on the


company, it is trying to encourage what type of behavior from its
employees?
1.

ethical

2.

strategic

3.

formal

4.

casual

5.

secretive

To become a more value-driven organization, Pokrah University is
holding regular coffee-hour discussions with its students and
surveying its graduates regarding students' educational needs and
desires. Pokrah University is becoming more value driven through
1.

sharing information across the organization.

2.

balancing its customers' benefits and costs.

3.

evaluating strategic competitive partnerships.

4.

building relationships with customers.

5.

keeping the faculty members happy.

If a radio station holds an online contest in which you must log in to
its website and submit personal details such as name, phone
number, and email to participate, the radio station is
1.

offering an exchange.

2.

behaving unethically.

3.

hoping to receive feedback.

4.

implementing a CRM program.

5.

overstepping its role.

Marketing was once an afterthought to
1.

accounting.


2.

economics.

3.

production.

4.

finance.

5.

none of these—marketing was never an afterthought.

After the previous sales representative in his territory infuriated an
important customer, Benjamin visited the customer once a month,
never asking for business but hoping to rebuild trust through
listening and expressing concern. Finally, after more than two
years, the customer gave Benjamin an order. Benjamin was
providing the important marketing function of
1.

advising production on how much product to make.

2.

alerting the logistics department when to ship products.

3.

engaging customers and developing long-term relationships.

4.

identifying opportunities to expand.

5.

synthesizing and interpreting sales, accounting, and customer-profile data.

Many entrepreneurs are successful through marketing efforts
designed to
1.

mimic existing products on the market.

2.

satisfy unfilled needs.

3.

raise social consciousness.

4.

gain monopoly power.

5.

push a new technology even if people aren't ready for it.

Which element of the marketing mix is most relevant to the activity
"capturing value"?
1.

promotion

2.

purchasing


3.

product

4.

price

5.

place

Traditionally, marketing activities have been divided into product,
price, place, and promotion. Select the term that best describes the
four Ps.
1.

marketing mix

2.

marketing channel

3.

marketing plan

4.

marketing era

5.

marketing implementation

Marney bought a dress from a retail store. Which core aspect of
marketing was Marney most directly participating in?
1.

Marketing helps create value.

2.

Marketing is about satisfying customer wants and needs.

3.

Marketing involves an exchange.

4.

Marketing can be performed by both individuals and organizations.

5.

Marketing occurs in many settings.

Which marketing activity is most directly served by the promotion
element of the marketing mix?
1.

communicating value

2.

creating value

3.

capturing value

4.

delivering value

5.

producing value


At one point in the evolution of marketing, the United States entered
a buyer's market and the customer became king. Which era is
being described?
1.

market-oriented

2.

sales-oriented

3.

production-oriented

4.

value-based marketing

5.

economics-oriented

Franco uses a database software system to remind him when his
customers should be ready to reorder his industrial cleaning
products. With this reminder system, Franco contacts his customers
when they are most likely to be in the buying mode. Franco's
system is part of
1.

C2C marketing.

2.

customer relationship management.

3.

a transactional marketing orientation.

4.

supply chain management.

5.

typical production era marketing practices.

Jeff opened a sporting apparel store and signed a lease on the
property. He also signed an agreement with the manufacturer on
the amount of merchandise he will sell and the promotions he will

conduct. Based on this description, which aspect of the marketing
mix does he still need to work on?
1.

price

2.

place

3.

promotion

4.

product


5.

prototype

After hurricanes like Katrina, many small building contractors will
flock to the damaged area, charging whatever customers will pay
for temporary repairs to roofs and other parts of damaged homes.
These contractors are engaged in a(n) __________ marketing
orientation.
1.

transactional

2.

external

3.

relational

4.

internal

5.

value driven

Value-driven firms constantly measure the __________ that
customers perceive, compared to the prices of their offerings.
1.

information

2.

benefits

3.

relationships

4.

rebates

5.

merchandise

Supply chain management is also referred to as
1.

delivery management.

2.

marketing channel management.

3.

production management.

4.

retail management.

5.

value proposition management.

The primary purpose of the __________ plan is to specify the
marketing activities for a specific time.


1.

marketing

2.

business

3.

strategic

4.

organizational

5.

resource

Serena studies her customer profiles, market research data,
complaints, and other information, attempting to better understand
what her customers want. Serena operates in the __________ era
of marketing.
1.

production-oriented

2.

sales-oriented

3.

market-oriented

4.

value-based

5.

retailing-oriented

People who initiate, organize, operate, and assume the risk of a
business venture are called
1.

entrepreneurs.

2.

leaders.

3.

managers.

4.

professionals.

5.

consultants.

A(n)__________ is the trade of things of value between the buyer
and the seller so that each is better off as a result.
1.

exchange

2.

market segment

3.

promotional plan


4.

transactional orientation

5.

relational orientation

In the broadest terms, the marketplace refers to
1.

wholesale and retail environments.

2.

brick-and-mortar stores and the Internet.

3.

the four Ps.

4.

channels that are accessible to a given customer.

5.

the world of trade.

Which element of the marketing mix is most relevant to the activity
"creating value"?
1.

promotion

2.

purchasing

3.

product

4.

price

5.

place

Which element of the marketing mix is most relevant to the activity
"delivering value"?
1.

promotion

2.

purchasing

3.

product

4.

price

5.

place

Many catalog companies create special-run issues based on what
customers have purchased in the past. For example, customers
who frequently order bedding items like sheets and pillows receive