384 test bank for basic marketing a marketing strategy planning approach 18th edition

384 Test Bank for Basic Marketing A
Marketing Strategy Planning Approach
18th Edition
Multiple Choice Questions - Page 1
Which of the following statements about the "universal functions
of marketing" is False?
1.

A. These functions do not have to be performed in all macro-marketing
systems.

2.

B. How the functions are performed may differ among nations and
economic systems.

3.

C. Who performs the functions may differ among nations and economic
systems.

4.

D. These functions help to overcome discrepancies of quantity and
assortment.

5.

E. None of the above.

Firms that specialize in providing marketing functions other than

buying or selling are known as:
1.

A. suppliers.

2.

B. intermediaries.

3.

C. consultants.

4.

D. agents.

5.

E. collaborators.

The "universal functions of marketing":
1.

2.

A. are usually performed in the same way and by the same types of
institutions in all MACRO-marketing systems.
B. can sometimes be eliminated--in very efficient macro-marketing systems.

3.

C. must be performed in both market-directed and command economies.

4.

D. must all be performed by every firm from a MICRO view.

5.

E. All of the above are true.

Which of the following is LEAST likely to be classified as a
marketing collaborator?
1.

A. Mayflower Transport Company.

2.

B. Internet Advertising, Inc.

3.

C. Wachovia Bank.

4.

D. Market Survey Research, Inc.

5.

E. Quality Coatings Company.

The "universal functions of marketing" can be performed by:
1.

A. producers.

2.

B. intermediaries and collaborators.

3.

C. consumers.

4.

D. All of the above.

5.

E. Only A and C above.

The standardization and grading function of marketing involves:
1.

A. Looking for and evaluating goods and services.

2.

B. Providing necessary cash and credit.

3.

C. Promoting the product.

4.

D. Sorting products according to size and quality.

5.

E. None of the above.

The universal functions of marketing
1.

A. are not all needed in market-directed economies.


2.
3.

B. are not all needed in command economies.
C. can be performed by producers, consumers, and a variety of marketing
specialists.

4.

D. All of the above are true.

5.

E. None of the above is true.

The buying function of marketing involves
1.

A. risk-taking.

2.

B. promoting the product.

3.

C. looking for and evaluating goods and services.

4.

D. the use of personal selling.

5.

E. sorting products according to size and quality.

In macro-marketing

1.
2.

A. no universal marketing function can be completely eliminated.
B. the objectives of the individual firm, rather than society, are most
important.

3.

C. functions should not be shifted or shared.

4.

D. intermediaries are unnecessary.

5.

E. the emphasis is on the activities of individual organizations.

Which of the universal functions of marketing deals most directly
with advertising a product in magazines?
1.

A. Transporting

2.

B. Selling

3.

C. Financing

4.

D. Risk-taking

5.

E. Market information


_______ refers to producers holding title to goods and services
that they themselves do not want to consume and consumers
wanting goods and services that they do not have.
1.

A. Discrepancies of assortment

2.

B. Separation of ownership

3.

C. Discrepancies of quantity

4.

D. Spatial separation

5.

E. Separation in time

Considering the universal functions of marketing,
1.

A. they may not be required in all macro-marketing systems.

2.

B. not every firm must perform all of the marketing functions.

3.

C. all goods and services require all the functions at every level of their
production.

4.

D. all of the above are true.

5.

E. none of the above is true.

Which of the following is NOT one of the "universal functions of
marketing"?
1.

A. Production

2.

B. Standardization

3.

C. Financing

4.

D. Buying

5.

E. Transporting

______________ involve(s) sorting products according to size
and quality.
1.

A. Transporting and storing

2.

B. Financing

3.

C. Standardization and grading

4.

D. Marketing

5.

E. Buying

The universal functions of marketing include buying, selling,
transporting, storing,
__________________________________________.
1.

A. standardization and weighing, financing, risk taking, and marketing
information

2.

B. standardization and grading, facilitating, risk taking, and marketing
information

3.

C. standardization and grading, financing, risk taking, and marketing
information

4.

D. standardization and grading, financing, risk taking, and merchandising
information

The "universal functions of marketing" do NOT include:
1.

A. financing and risk taking.

2.

B. standardization and grading.

3.

C. producing.

4.

D. transporting and storing.

5.

E. buying and selling.

A large advertising agency is planning a national promotion to
introduce a new type of MP3 player. Which of the universal
functions of marketing is it performing?
1.

A. Risk-taking.

2.

B. Financing.

3.

C. Buying.

4.

D. Selling.


5.

E. None of the above.

"Economies of scale" means that:
1.

A. as a company produces larger numbers of a particular product, the cost
of each unit of the product goes down.

2.

B. the more producers there are in an economy the greater the need for
intermediaries.

3.

C. larger countries enjoy more economic growth than smaller countries.

4.

5.

D. as a company produces larger numbers of a particular product, the total
cost of producing these products goes down.
E. All of the above are true.

The advantages of working with an intermediary usually increase
when there is
1.

A. difficulty communicating with customers.

2.

B. a greater number of customers.

3.

C. greater distance between customers.

4.

D. a larger number of competing products.

5.

E. all of the above.

Which of the following is MOST likely to be classified as a
marketing intermediary?
1.

A. Apex Manufacturing, Inc.

2.

B. Lillian's Mini-Market.

3.

C. McGraw Hill/Irwin.

4.

D. Kellogg.

Amazon.com and eBay.com are both considered
1.

A. Internet-based collaborators.

2.

B. Internet-based producers.


3.

C. Internet-based service providers.

4.

D. Internet-based intermediaries.

5.

E. Internet-based manufacturers.

Firms that specialize in providing marketing functions other than
buying and selling are known as:
1.

A. suppliers.

2.

B. intermediaries.

3.

C. advisors.

4.

D. collaborators.

5.

E. agents.

Concerning the "universal functions of marketing," which of the
following statements is FALSE?
1.

2.

A. These functions can be performed by producers, intermediaries,
collaborators, or consumers.
B. Responsibility for performing these functions can be shared and shifted.

3.

C. From a micro viewpoint, not every company must perform every
function.

4.

D. From a macro viewpoint, all these functions must be performed by
someone.

5.

E. None of the above is false.

Discrepancies of assortment happen when
1.

A. producers prefer to produce and sell in large numbers, but consumers
prefer to buy and consume in smaller numbers.

2.

B. consumers may not want to consume goods and services at the time
producers would prefer to produce them.

3.

C. consumers value goods and services in terms of costs and competitive
prices whereas producers value them in terms of satisfying needs and ability
to pay.


4.

D. producers specialize in producing a narrow range of goods and services
but consumers need a wide variety.

5.

E. producers hold title to goods and services that they themselves do not
want to consume.

Which of the following is NOT true about intermediaries?

1.

A. They save time for other participants in a transaction.

2.

B. They always increase total expenses for a product.

3.

C. They specialize in trade rather than production.

4.

D. All of the above.

5.

E. None of the above.

When a firm produces a large quantity of a product, the cost of
producing each individual unit usually goes down. This is known
as:
1.

A. discrepancies of quantity.

2.

B. exchange efficiency.

3.

C. economies of scale.

4.

D. macro-marketing.

5.

E. discrepancies of assortment.

After seeing a "sale" ad in a local newspaper, Ben Griffith went to
a local pet supply store and bought a year's supply of high protein
dog food. Which marketing functions--if any--did he perform?
1.

A. Financing and risk taking

2.

B. Buying, transporting, and storing

3.

C. Market information

4.

D. All of the above

5.

E. None of the above--only producers and intermediaries perform
marketing functions.


Marketing intermediaries and collaborators can often perform
marketing functions:
1.

A. better than producers or consumers can perform them.

2.

B. which leaves producers and consumers more time for production and
consumption.

3.

C. at a low cost--because of specialization, economies of scale, or ecommerce.

4.

D. all of the above are true.

5.

E. none of the above are true.

The "universal functions of marketing":
1.

A. must be performed in all MACRO-marketing systems.

2.

B. are performed differently in different economies.

3.

C. are performed by different parties in different economies.

4.

D. are needed to help overcome various separations and discrepancies.

5.

E. All of the above are true.

Which of the following types of firms are collaborators?
1.

A. Marketing research firms

2.

B. Overnight delivery firms

3.

C. Advertising agencies

4.

D. Product-testing labs

5.

E. All of the above

Which of the following is a true statement?
1.

A. Since marketing is concerned with many thousands of different products,
there is no one set of marketing functions that applies to all products.

2.

B. Responsibility for performing marketing functions can be shifted and
shared, but no function can be completely eliminated.


3.

C. From a micro viewpoint, every firm must perform all of the marketing
functions.

4.

D. Marketing functions should be performed only by marketing
intermediaries or collaborators.

5.

E. Many marketing functions are not necessary in market-directed
economies.

The standardization and grading function of marketing involves:
1.

A. promoting goods and services.

2.

B. collection, analysis, and distribution of marketing information.

3.

C. sorting products according to size and quality.

4.

D. looking for and evaluating goods and services.

5.

E. movement of goods from one place to another.

The term "economies of scale" means that:
1.
2.

3.
4.

5.

A. The largest producers are always the most efficient.
B. The cost of a product goes down as a company produces larger
numbers of it.
C. The more one produces, the greater the profit.
D. It is more efficient for an economy to have a large number of
transactions.
E. None of the above.

Collaborators
1.

A. specialize in trade rather than production.

2.

B. usually have a production orientation.

3.

C. emerged in the marketing company era.

4.

D. are only used in a command economy.

5.

E. facilitate or provide one or more of the marketing functions other than
buying or selling.


An intermediary:
1.

A. is a wholesaler--not a retailer.

2.

B. usually increases the number of transactions required.

3.

C. tends to make the exchange process more difficult and costly.

4.

D. is someone who specializes in trade rather than production.

5.

E. none of the above.

Which of the following is LEAST likely to be classified as a
marketing collaborator?
1.

A. United Parcel Service (UPS).

2.

B. Public Warehouse Corporation.

3.

C. Broadband Communications Company.

4.

D. MeadowView Aluminum Company.

5.

E. Product Safety Testing Laboratories, Inc.

Market research firm BestOne sells reports about competitors,
products, and other areas to various clients in the software
industry. BestOne performs which universal marketing function:
1.

A. risk taking.

2.

B. market information.

3.

C. standardization and grading.

4.

D. social responsibility.

5.

E. financing.

The "universal functions of marketing":
1.

A. can be eliminated in advanced MACRO-marketing systems.

2.

B. are performed differently and by different parties in different economies.

3.

C. are never performed by consumers.

4.

5.

D. create various separations and discrepancies between producers and
consumers.
E. All of the above are true.

238 Free Test Bank for Basic Marketing A Marketing
Strategy Planning Approach 18th Edition by Perreault
Multiple Choice Questions - Page 2
In advanced economies:
1.

A. mass production with its economies of scale makes the cost of each
product higher.

2.

B. exchange is simplified by discrepancies of quantity and assortment.

3.

C. there is little need for marketing specialists.

4.

D. both supply and demand tend to be homogeneous in nature.

5.

E. producers and consumers experience a separation of values.

MACRO-marketing:
1.
2.

A. Emphasizes how the whole marketing system works.
B. Considers how marketing affects society, but not how society affects
marketing.

3.

C. Matches homogeneous supply and demand.

4.

D. Is mainly concerned with the activities of individual organizations.

5.

E. All of the above.

MACRO-marketing:
1.
2.

3.

A. is a social process.
B. tries to overcome "discrepancies of quantity" and "discrepancies of
assortment."
C. tries to effectively match supply and demand.


4.

5.

D. tries to overcome the many separations between producers and
consumers.
E. All of the above are true statements.

Marketing will not happen unless:
1.

A. e-commerce is flourishing.

2.

B. collaborators are present to simplify exchange.

3.

C. intermediaries are present to facilitate exchange.

4.

5.

D. two or more parties each have something they want to exchange for
something else.
E. an economy is market-directed rather than command.

Which of the following must occur for marketing to happen?
1.

A. Product

2.

B. Place

3.

C. Advertising

4.

D. Price

5.

E. Two or more parties exchange something of value for something else of
value.

In advanced economies:
1.

A. both supply and demand tend to be heterogeneous.

2.

B. producers and consumers are often separated in several ways.

3.

C. exchange is hampered by discrepancies of quantity and assortment.

4.

D. All of the above are true.

5.

E. None of the above is true.

The fact that US car companies are located in the upper Midwest
while their customers are located throughout the U.S. is an
example of:


1.

A. separation in values.

2.

B. discrepancies of assortment.

3.

C. separation of information.

4.

D. spatial separation.

5.

E. separation in time.

MACRO-marketing:
1.

A. is concerned with the activities performed by individual business
organizations.

2.

B. tries to match heterogeneous supply capabilities with heterogeneous
demands for goods and services.

3.

C. is concerned with how effectively and fairly an individual business
organization performs.

4.

D. assumes that the effectiveness and fairness of all macro-marketing
systems must be evaluated in terms of the same social objectives.

5.

E. All of the above are true.

Viewing marketing as a social process focuses on
1.

A. marketing by nonprofit organizations.

2.

B. command economies.

3.

C. macro-marketing.

4.

D. micro-marketing.

5.

E. none of the above.

In a simple economy, one family may produce only cooking pots,

but many of them. Others may specialize in farming, making
clothing, and building shelters. This ....
1.
2.

A. shows why "discrepancies of assortment" occur.
B. is so simple that the universal functions of marketing don't have to be
done.


3.
4.

5.

C. cannot work without an intermediary.
D. is an example of "separation in values" since the different families
choose to produce different things.
E. All of the above are true.

Marketing is NOT needed in a ______________ economy.
1.

A. consumer-oriented

2.

B. command

3.

C. pure subsistence

4.

D. market-directed

5.

E. none of the above

Of the following headlines from a business magazine, which is
most likely to be about a MACRO-marketing topic?
1.

A. "Chinese Women Demand More Luxury Goods."

2.

B. "Girl Scouts Organize Nationwide Cookie Sale."

3.

C. "L'eggs Sells Direct in Brazil and Argentina."

4.

D. "Frito-Lay Offers New Low-Fat Products."

5.

E. "Coke Losing Beverage Sales in India to local brands."

Societies need a macro-marketing system
1.

A. to help match supply and demand.

2.

B. to create a gap between producers and consumers.

3.

C. to accomplish an organization's objectives only.

4.

D. to identify collaborators.

5.

E. to reduce the need for intermediaries.


_________ directs an economy's flow of goods and services from
producers to consumers in a way that effectively matches supply
and demand and accomplishes the society's objectives.
1.

A. Macro-marketing

2.

B. The transporting function

3.

C. Micro-marketing

4.

D. Standardization and grading

5.

E. Social responsibility

Macro-marketing:
1.

A. is not concerned with the flow of goods and services from producers to
consumers.

2.

B. seeks to match homogeneous supply capabilities with homogeneous
demands for goods and services.

3.

C. refers to a set of activities performed by both profit and nonprofit
organizations.

4.

D. focuses on the objectives of society.

5.

E. All of the above are true statements.

(p. 8-9) Of the following headlines from the WALL STREET
JOURNAL, which is most likely to be about a MACRO-marketing
topic?
1.

A. "Tupperware Has a New Strategy."

2.

B. "Thailand Has Unusually Large Number of Wholesalers."

3.

C. "Military Supplier Shifts to Selling Gas Masks to Private Citizens."

4.

D. "Coke Plans Beverage Line to Compete with Lipton's."

5.

E. "Dow Chemical Adds Shipping Safeguards."

American supermarket chain, FoodMart, purchases cheese from
five different manufacturers from around the world to assure its


customers can choose among different types of cheeses at
different prices. FoodMart facilitates the macro-marketing system
by helping to address:
1.

A. spatial separation.

2.

B. discrepancies of assortment.

3.

C. separation of values.

4.

D. all of the above.

5.

E. none of the above.

Marketing could NOT take place without:
1.

A. intermediaries.

2.

B. collaborators.

3.

C. two or more parties who are willing to exchange something for
something else.

4.

D. a high standard of living.

5.

E. all of the above.

Macro-marketing:
1.

A. tries to produce discrepancies of quantity and discrepancies of
assortment.

2.

B. focuses on the activities of individual organizations.

3.

C. tries to effectively match supply and demand.

4.

D. all of the above.

5.

E. none of the above.

When an individual producer sets a price for its product to earn a
certain profit while consumers search for the product at the lowest
price available from any producer, this is an example of:
1.

A. separation in time.


2.

B. discrepancy of quantity.

3.

C. separation in values.

4.

D. discrepancy of assortment.

5.

E. spatial separation.

Which of the following statements is FALSE?
1.
2.

3.
4.

5.

A. Marketing is most important in a pure subsistence economy.
B. Marketing should provide direction for production, accounting, and
financial activities.
C. Marketing builds long-lasting relationships that benefit the selling firm.
D. Marketing doesn't occur unless two or more parties are willing to
exchange something for something else.
E. Marketing anticipates customer needs.

Macro-marketing
1.

A. emphasizes building a long-term relationship that benefits both the firm
and the customer.

2.

B. considers the marketing activities of corporations rather than individuals.

3.

C. emphasizes how the whole marketing system works.

4.

D. systems are only relevant to advanced economies.

5.

E. addresses discrepancies that emerge from homogeneous consumer
demand.

When consumers do not know where to buy a product or what it
costs and the product's producer does not know where its target
market is located, this is an example of:
1.

A. separation of information.

2.

B. discrepancy of quantity.

3.

C. separation of ownership.


4.

D. discrepancy of assortment.

5.

E. separation in time.

The following headlines are from Business Week magazine.
Which article is most likely to be reporting on a MACROmarketing topic?
1.

A. "Two-Person Engineering Firm Offers Unique Service."

2.

B. "Russia Increases Output of Consumer Goods."

3.

C. "Pepsi Sells in Japan."

4.

D. "Bank of America Offers New Internet Banking Services."

5.

E. "Donations to Tsunami Victims Fund Increase after TV Broadcast."

If the family units on a South Pacific-island nation made all the
products they consume, it would be a good example of:
1.

A. a pure subsistence economy.

2.

B. a market-directed economy.

3.

C. a micro-marketing system.

4.

D. a command economy.

5.

E. none of the above.

The fact that producers usually prefer to produce products in
large quantities, while most consumers prefer to buy in small

quantities, results in:
1.

A. discrepancies of quantity.

2.

B. separation of ownership.

3.

C. discrepancies of assortment.

4.

D. spatial separation.

5.

E. temporal separation.


Which of the following statements about marketing is FALSE?
1.

A. Marketing affects the products you buy.

2.

B. Marketing applies to nonprofit organizations too.

3.

C. Marketing affects the advertising you see and hear.

4.

D. Marketing offers many good job opportunities.

5.

E. Marketing can help with individual transactions but not in building
relationships with customers.

Looking at marketing as a social process focuses on
1.

A. macro-marketing.

2.

B. for-profit marketing.

3.

C. micro-marketing.

4.

D. nonprofit marketing.

5.

E. personalized marketing.

Exchange between producers and consumers is more difficult in
an advanced economy because of:
1.

A. separation in time.

2.

B. separation in values.

3.

C. spatial separation.

4.

D. separation of information.

5.

E. All of the above.

The following headlines are for articles from the WALL STREET
JOURNAL. Which article is most likely to be reporting a MACROmarketing topic?
1.

A. "Mercedes Goes after Luxury Sport Utility Buyers."

2.

B. "Adidas Jumps as Footwear Competition Heats Up."


3.

C. "Drugstore Chain Aims at Seniors."

4.

D. "Hardee's Fried Chicken Takes on KFC."

5.

E. "DVD Popularity Leads to More DVD Retailers."

In a pure subsistence economy,
1.

A. each family unit is self-sufficient.

2.

B. exchanges are not important.

3.

C. there is no need for intermediaries.

4.

D. All of the above are true.

5.

E. None of the above is true.

The primary purpose of the transporting and storing functions of
marketing is to overcome:
1.

A. the need for marketing specialists.

2.

B. separation of information.

3.

C. spatial separation.

4.

D. discrepancies of assortment.

5.

E. separation of values.

Macro-marketing
1.

A. is a social process.

2.

B. concerns the activities of individual managers.

3.

C. is what people have in mind when they talk about marketing in everyday
use.

4.

D. helps consumers that need a narrow assortment of products.

5.

E. applies only to nonprofit organizations.


238 Free Test Bank for Basic Marketing A Marketing
Strategy Planning Approach 18th Edition by Perreault
Multiple Choice Questions - Page 3
Effective marketing should begin with

1.

A. an effort to persuade unwilling customers to buy the firm's products.

2.

B. potential customer needs.

3.

C. a decision about what the firm can produce efficiently.

4.

D. evaluation of the effect of the firm's decisions on the MACRO-marketing
system.

5.

E. the marketing manager making important production, accounting, and
financial decisions for the firm.

Marketing should
1.

A. begin with the production process.

2.

B. make decisions about product design and packaging, prices or fees.

3.

C. not need to coordinate with production, accounting, and financial
activities.

4.

D. provide input, but let production determine what goods and services are
to be developed.

5.

E. focus on getting customers to make a final purchase.

Which of the following statements best describes the modern
view of marketing?
1.

A. The job of marketing is to get rid of whatever the company is producing.

2.

B. Marketing should take over production, accounting, and financial
services within a firm.

3.

C. Marketing is concerned with generating a single exchange between a
firm and a customer.

4.

D. Marketing begins with anticipating potential customer needs.


5.

E. Production, not marketing, should determine what goods and services
are to be developed.

Looking at marketing as a set of activities focuses on
1.

A. macro-marketing.

2.

B. for-profit marketing.

3.

C. micro-marketing.

4.

D. nonprofit marketing.

5.

E. personalized marketing.

All of the following should be determined by the marketing
department of a firm EXCEPT:
1.

A. storing the product.

2.

B. actually making the product.

3.

C. advertising the product.

4.

D. designing the packaging for the product.

5.

E. setting the price of the product.

Marketing:
1.

A. is concerned with need-satisfying goods, but not with services.

2.

B. involves an attempt to anticipate customer or client needs.

3.

C. is primarily concerned with efficient use of resources and fair allocation
of output.

4.

D. includes activities such as accounting, production, and financial
management.

5.

E. is the process of selling and distributing manufactured goods.

Marketing
1.

A. affects almost every aspect of our daily lives.


2.

B. offers many exciting and rewarding career opportunities.

3.

C. focuses an organization on what it takes to satisfy customers.

4.

D. all of the above.

5.

E. none of the above.

Which of the following statements about marketing is FALSE?
1.

A. Marketing concepts and techniques apply for nonprofit organizations--as
well as for profit-seeking organizations.

2.

B. Marketing offers many rewarding career opportunities.

3.

C. The cost of marketing is about 15 percent of the consumer's dollar.

4.

D. Marketing affects almost every part of your daily life.

5.

E. Marketing is vital for economic growth and development.

Marketing
1.

A. means "selling" or "advertising."

2.

B. provides direction for production.

3.

C. involves actually making goods or performing services.

4.

D. does not impact consumers' standard of living.

5.

E. is the development and spread new ideas, goods, and services.

Customer satisfaction is the extent to which a firm fulfills a
consumer's:
1.

A. needs.

2.

B. desires.

3.

C. expectations.

4.

D. only A and B above.

5.

E. all of the above.


Which of the following organizations would be least likely to need
marketing skills?
1.

A. An accountant

2.

B. An electronics retailer

3.

C. A toy manufacturer

4.

D. A financial advisor

5.

E. All of the above would need marketing skills.

Which of the following is NOT a reason for you to study
marketing?
1.

A. Marketing affects almost every aspect of daily life.

2.

B. Marketing will be important to your job.

3.

C. Marketing involves actually making the goods that people need.

4.

D. Marketing affects innovation and consumers' standard of living.

5.

E. Marketing plays a big part in economic growth and development.

The production of a new mountain bike model includes which of

the following activities?
1.

A. Determining how to get the new model to likely bike purchasers.

2.

B. Actually making the new mountain bikes.

3.

C. Predicting what types of bikes different types of bike riders will want.

4.

D. All of the above.

5.

E. None of the above.

From a micro view, marketing
1.

2.

A. applies to large corporations but not to a new venture started by one
person.
B. is an important social process.