Test Bank For Marketing Real People, Real Choices, 12th Edition By Michael R. Solomon Greg W. Marsha by AnswerDone

Marketing: Real People, Real Choices, 12e (Solomon) Chapter 1 Welcome to Marketing in the Modern World 1) A ________ is the ultimate user of a good or service. A) stakeholder B) market C) target market D) marketer E) consumer Answer: E Difficulty: Easy LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing 2) ________ is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. A) Demand satisfaction B) Competitive advantage building C) Marketing D) Total quality management E) Value chain management Answer: C Difficulty: Easy LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Written and oral communication 3) The ________ consists of the tools an organization uses to create a desired response among a set of predefined consumers. A) sharing economy B) market position C) value proposition D) marketplace E) marketing mix Answer: E Difficulty: Easy LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing

4) The four Ps are discussed as separate parts of a firm's marketing strategy, but product, price, promotion, and place decisions are actually ________. A) contradictory B) interdependent C) unrelated D) disconnected E) singular Answer: B Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Written and oral communication 5) Which of the following is a true statement about the four Ps of the marketing mix? A) A decision about one of the Ps affects every other marketing-mix decision. B) Price is always the most important of the four Ps. C) Place is typically the least important of the four Ps. D) The four Ps have little effect on a product's market position. E) The four Ps are used to determine a product's target market. Answer: A Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Analytical thinking 6) Which of the following is part of the place element of the marketing mix? A) a quality discount B) a store coupon C) a newspaper advertisement D) a local retailer E) publicity releases Answer: D Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing 7) The customer's overall assessment of every interaction the customer has had with a business is known as ________. A) the customer experience B) customer engagement C) e-commerce D) the marketing mix E) collaborative consumption Answer: A Difficulty: Easy LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing 2 Copyright © 2025 Pearson Education, Inc.

8) ________ is the assignment of a product's value, or the amount the consumer must exchange to receive the offering. A) Promotion B) Price C) Benefit D) Need E) Utility Answer: B Difficulty: Easy LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing 9) Free delivery of a good is considered part of which element of the marketing mix? A) product B) place C) price D) distribution E) promotion Answer: A Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Written and oral communication 10) Marketing communication is also referred to as ________. A) production B) selling orientation C) societal marketing D) exchange E) promotion Answer: E Difficulty: Easy LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Written and oral communication 11) For an exchange to occur, ________. A) at least two people or organizations must be willing to make a trade, and each must have something the other wants B) there must be one winner and one loser C) someone must make a financial profit D) the item that is exchanged must be a tangible product E) time utility must be created for the purchaser Answer: A Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing 3 Copyright © 2025 Pearson Education, Inc.

12) ________ refers to the availability of the product to the customer at the desired location and time. A) production B) place C) price D) profit E) promotion Answer: B Difficulty: Easy LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Reflective thinking 13) ________ are intangible products that we pay for and use but never own. A) Consumer goods B) Services C) Industrial goods D) E-commerce products E) Value products Answer: B Difficulty: Easy LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing 14) Steel and other items purchased for further processing are considered ________. A) consumer services B) consumer goods C) value propositions D) utilities E) industrial goods Answer: E Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing 15) ________ marketing is the marketing of goods and services from one organization to another. A) Distributive B) Consumer C) E-commerce D) Business-to-business E) Target Answer: D Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing 4 Copyright © 2025 Pearson Education, Inc.

16) ________ are organizations with charitable, educational, community, and other public service goals that buy goods and services to support their functions and to attract and serve their members. A) Consumer organizations B) Public organizations C) Private organizations D) Nonprofit organizations E) For-profit organizations Answer: D Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing 17) Marketers first identify consumer needs and then provide products that satisfy those needs. This practice is referred to as ________. A) the stakeholder orientation B) the marketing concept C) total quality management D) collaborative consumption E) the marketing mix Answer: B Difficulty: Easy LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing 18) A customer is said to have a need when ________. A) their desire to satisfy requirements in a specific way is culturally influenced B) they receive a sought outcome through purchasing a product to satisfy a want C) there is a recognition of some difference between their actual state and some ideal or desired state D) they have a desire for product and the means to obtain it E) they have a desire for a product but are without the means to obtain it Answer: C Difficulty: Challenging LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing

19) A ________ is a desire for a particular product a consumer uses to satisfy a need in a specific way that is culturally and socially influenced. A) benefit B) demand C) value D) utility E) want Answer: E Difficulty: Easy LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing 20) A ________ delivered by a product is the outcome that motivates a customer's buying behavior. A) benefit B) demand C) value D) need E) want Answer: A Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing 21) Demand is defined to be customers' desires for products coupled with ________. A) social influences as to which products to procure B) cultural pressure to obtain particular products C) the resources needed to obtain them D) a location in which to conduct the transaction E) some difference between their actual state and some ideal or desired state Answer: C Difficulty: Challenging LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing 22) The usefulness or benefit that consumers receive from a product is ________. A) utility B) TQM C) ROI D) e-commerce E) value Answer: A Difficulty: Easy LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing

23) A glitzy shopping mall, a mail-order catalog, a television shopping network, and an ecommerce website are all examples of ________. A) marketing concepts B) value chains C) monopolies D) marketplaces E) strategic business units Answer: D Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing 24) A marketplace ________. A) must be a physical location B) cannot exist online C) is where an exchange occurs D) does not involve services E) only deals in physical products Answer: C Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing 25) All of the following are forms of utility created by marketing processes EXCEPT ________. A) form utility B) place utility C) time utility D) possession utility E) price utility Answer: E Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing 26) When a dress manufacturer combines silk, thread, and a zipper to create a bridesmaid's gown, ________ utility occurs. A) form B) place C) time D) possession E) price Answer: A Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing

27) Rent the Runway rents high-end designer dresses at one-tenth the retail cost, for four nights, shipping directly to the customer's doorstep. A prepaid envelope is provided for return shipping. This is an example of ________ utility. A) form B) place C) time D) possession E) price Answer: B Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Analytical thinking 28) ________ is the benefit marketing provides by storing products until they are needed. A) Form B) Place C) Time D) Possession E) Price Answer: C Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing 29) What are NGOs? A) nongovernmental organizations B) new growth orientations C) neo geographical opinions D) nonprofit organizations E) national green options Answer: A Difficulty: Easy LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing

30) When Tony rented a loft apartment where he would live for the summer, he acted as a ________. A) consumer B) shareholder C) producer D) marketer E) retailer Answer: A Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Analytical thinking 31) Chris just landed her dream job but realizes that her college wardrobe is not going to work for her new professional position. In this situation, Chris has a(n) ________. A) benefit B) exchange C) value D) need E) utility Answer: D Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Analytical thinking 32) After saving a portion of several paychecks, Greg Williams now has the buying power to purchase the computer system he has wanted for the last six months. Greg's want has become a(n) ________. A) need B) necessity C) demand D) exchange E) transaction Answer: C Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Analytical thinking

33) Ruth Terry is a realtor. In her ads, Terry offers the free use of a moving truck to every customer she helps either buy or sell a house. This free use of a moving truck is an example of ________. A) a benefit B) a demand C) business-to-business marketing D) a need E) a marketplace Answer: A Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Application of knowledge 34) Which of the following is the best example of a consumer good? A) the riding lawn mower purchased by the landscaping company B) the disposable diapers purchased by the new mother for her baby C) the paint purchased by the contractor D) the cookies purchased for the daycare center E) the art supplies purchased for the elementary school art center Answer: B Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Analytical thinking 35) Which of the following is the best example of a service? A) the medical examination Jonathon had yesterday B) the sheet music purchased by the piano teacher C) the software Monica purchased from the website D) the cleaning supplies purchased for the veterinarian's office E) the t-shirt you got for running in a 5K race Answer: A Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Application of knowledge

36) Alex paid for a(n) ________ when he took his car to the carwash to be washed and waxed. A) service B) industrial product C) consumer good D) commercial good E) business product Answer: A Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Analytical thinking 37) Which of the following is an example of a transaction that might occur in business-tobusiness marketing? A) Maurice buys a new razor on his way home from work. B) The amateur gardener buys a new wheelbarrow. C) The retail outlet buys athletic shoes to sell in its store. D) The professional chef bakes a birthday cake for her son. E) Robyn's mother hires a math tutor to help Robyn pass algebra. Answer: C Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Analytical thinking 38) Asad purchases air conditioners to provide HVAC systems for office buildings. He sells ________. A) distributive goods B) consumer services C) consumer goods D) industrial goods E) intangible goods Answer: D Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Analytical thinking

39) Which of the following is an example of a nonprofit organization that would use marketing principles? A) a fast-food restaurant B) a manufacturer of bicycles C) a software developer D) a theme amusement park E) the local city zoo Answer: E Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Analytical thinking 40) A sign manufacturer who uses plastic, metal, and neon tubing to create a motel sign has performed the marketing benefit of creating ________ utility. A) form B) place C) possession D) time E) creation Answer: A Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Analytical thinking 41) Shane pulled her car into the gas station just as the fuel gauge dropped below empty. In this example, Shane benefited from the ________ utility offered by the gas station. A) creation B) place C) value D) marketing E) quality Answer: B Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Analytical thinking

42) Seth's mother didn't want to build a climbing wall as a permanent feature in her backyard, but it was certainly convenient to rent one from the company that catered Seth's 12th birthday party. The catering company created both ________ utility when it rented her the climbing wall. A) form and place B) place and creation C) possession and price D) time and place E) creation and possession Answer: D Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Analytical thinking 43) Kris traded Priya four hours of yardwork for a home-made dinner for four. This is an example of a(n) ________. A) differential benefit B) promotion C) exchange D) collaborative consumption E) virtual trade Answer: C Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Analytical thinking 44) Zappos has focused on the customer's ease of navigating their website, the quality of the customer service calls, the expedited shipping, and providing free returns. Zappos is paying particular attention to the ________. A) marketing mix B) people marketing C) collaborative consumption D) nonprofit marketing E) customer experience Answer: E Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Application of knowledge

45) Conveniently located vending machines around your college or university campus make it easy for you to buy a soda and a snack between classes. This is an example of the ________ element of the marketing mix. A) production B) place C) price D) profit E) promotion Answer: B Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Analytical thinking 46) Susannah owns a one-bedroom apartment in Manhattan that she posts for short-term weekend and summer rentals on Airbnb when she plans to be out of town. This is an example of ________. A) nonprofit marketing B) institutional marketing C) collaborative consumption D) people marketing E) consumer-generated marketing Answer: C Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Analytical thinking 47) First and foremost, marketing is about ________. A) prioritizing sellers' goals B) communicating one-to-one C) satisfying customer needs D) creating desire E) monetizing the exchange relationship Answer: C Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Analytical thinking

48) Of the four Ps in the marketing mix, ________ is far and away the most quickly and dramatically changing. A) promotion B) place C) price D) product E) priority Answer: A Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Analytical thinking 49) Today, service transactions contribute about ________ percent of the GDP in the U.S. and other developed countries. A) 10 B) 25 C) 40 D) 50 E) 80 Answer: E Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Analytical thinking 50) The term "marketing" is synonymous with the term "advertising." Answer: FALSE Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Written and oral communication 51) Marketers define a need as the difference between a consumer's actual state and some ideal or desired state. Answer: TRUE Difficulty: Easy LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing 52) Although having something to eat or drink may be a need, the desire for a specific brand name is referred to as a want. Answer: TRUE Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing 15 Copyright © 2025 Pearson Education, Inc.

53) The marketing mix is commonly referred to as the four Ms. Answer: FALSE Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing 54) Marketing doesn't just meet the needs of customers –it meets the needs of diverse stakeholders. Answer: TRUE Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing 55) For an exchange to occur, at least one party must agree on the value of the exchange and how it will be carried out. Answer: FALSE Difficulty: Easy LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing 56) Business-to-business marketing represents greater total sales than business-to-consumer marketing. Answer: TRUE Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing 57) E-commerce is the buying and selling of goods and services electronically. Answer: TRUE Difficulty: Easy LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing 58) The promotion element of the marketing mix includes the design of the product. Answer: FALSE Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Written and oral communication 59) The sharing economy has been referred to as collaborative consumption. Answer: TRUE Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Analytical thinking 16 Copyright © 2025 Pearson Education, Inc.

60) In terms of marketing, wants and needs are interchangeable. Answer: FALSE Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Analytical thinking 61) What is a microcelebrity? Answer: Everyday people like you "package" themselves when they create an appealing social media profile. And this person-marketing perspective is more valid than ever, now that almost everyone can find their "few minutes of fame" on a website or blog or in an Instagram post. Society has even coined a work for all this–microcelebrity–to describe those who are famous not necessarily to millions of people but certainly to hundreds or even thousands who follow their comings and goings on various social media outlets. Indeed, social media and the Internet churn out hundreds of temporarily famous people who probably won't be remembered for long. Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Analytical thinking 62) Discuss how the principles of marketing can be applied to people. Answer: The principles of marketing apply to people in the same way that they apply to products and services. People market, or "sell," themselves all of the time, whether they are applying for a job, hoping to gain a promotion, or participating in online dating. People package and promote themselves through the clothes and accessories they choose, the cars they drive, the music they listen to, the books they read, and much more. Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Application of knowledge 63) How would a jewelry designer selling products on Etsy create the four types of utility? Answer: The jewelry designer would create form utility by creating personalized products based on individual customer's preferences. Place utility would mean the customer is able to go online from home on a desktop computer, at work on a laptop, or anywhere out and about on their phone to order jewelry items. Time utility would mean the customer could use expedited shipping to get their items in a timely manner. Possession utility refers to the enjoyment consumers would get wearing and/or gifting their personalized jewelry purchases. Difficulty: Challenging LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Application of knowledge

64) What does the phrase "exchange relationship" mean in relation to marketing? Answer: An exchange occurs when something is obtained for something else in return. The buyer receives an object, service, or idea that satisfies a need, and the seller receives something they feel is of equivalent value. For an exchange to occur, at least two people or organizations must be willing to make a trade, and each must have something the other wants. Both parties must agree on the value of the exchange and how it will be carried out. Each party also must be free to accept or reject the other's terms for the exchange. An exchange is at the heart of every marketing act. Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Application of knowledge 65) What is the difference between consumer goods and consumer services? Give an example of each. Answer: Consumer goods are the tangible products that individual consumers purchase for personal or family use. Consumer services are intangible products that consumers pay for and use but never own. Examples will vary, but should reflect these definitions. Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Application of knowledge 66) Identify the four Ps in the following description: Rosa Alvarez markets 23 different varieties of salsa in 8-ounce and 12-ounce bottles at supermarkets in the southwestern United States. The 8-ounce bottle sells for $5.95, and the larger size sells for $7.95. Periodically, she sets up a table in one of the marketplaces that carries her salsa brand and offers customers a sample. She recently received considerable publicity for being the "Hispanic Entrepreneur of the Year." Answer: The four Ps are product, price, place, and promotion. Product: 23 different varieties of salsa in 8-ounce and 12-ounce bottles Price: $5.95 for smaller size and $7.95 for larger size Place: supermarkets in southwestern United States Promotion: sampling and publicity Difficulty: Challenging LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Application of knowledge

67) What are some downsides of using digital and social media in marketing? Answer: The exponential increase in available new-age digital and social media tools and applications has been of great benefit both to consumers and to marketers, who now have many very efficient and convenient ways to connect with you. However, like many technological innovations, the rise of digital and social media marketing has not come without challenges and downsides in this instance, often related to consumers' privacy and security concerns, as well as worry about usage impact on children. Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Analytical thinking 68) Select one actual company located in your community. Identify at least four different types of stakeholders in this company. Answer: Each student will present different information in responding to this question. Stakeholders should include the company's customers, the company's employees, investors in the company, and residents of the community. Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Application of knowledge 69) Define the term stakeholders. Answer: The term stakeholders refers to buyers, sellers, or investors in a company; community residents; and even citizens of the geographic areas where a firm's goods and services are made or sold—in other words, any person or organization that has a "stake" in the outcome of marketing's activities. In short, marketing is all about satisfying everyone involved in the marketing process. Difficulty: Challenging LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Application of knowledge 70) What are the four types of utility? Answer: The four types of utility are: form utility (transforming raw materials into a finished product), place utility (making products available when and where customers want them), time utility (storing products until they are needed), and possession utility (allowing customers to own, use, and enjoy the product). Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Analytical thinking

71) What is a marketplace? Provide three examples of marketplaces. Answer: A marketplace is any location or medium used to conduct an exchange. Answers providing examples will vary. These may include face-to-face retailers, a phone app, mail-order catalogs or websites. Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Application of knowledge 72) Explain the concept of business-to-business marketing and give an example of a business-tobusiness transaction. Answer: Business-to-business marketing is the marketing of goods and services from one organization to another. Examples will vary, but should reflect this definition. Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed, and the value of marketing AACSB: Application of knowledge 73) In which kind of market would a production orientation be most successful? A) a buyer's market in which supply exceeds demand B) a market in which there are more sellers than buyers C) a seller's market in which demand is greater than supply D) a market that sells only intangible products E) an e-commerce market Answer: C Difficulty: Challenging LO: 1.2: Explain the evolution of marketing 74) Companies that employed a ________ orientation tended to encourage salespeople to aggressively sell products to customers. A) consumer B) marketing C) selling D) societal E) relationship Answer: C Difficulty: Moderate LO: 1.2: Explain the evolution of marketing

75) When product availability began to exceed customer demand, firms began pursuing ways to get out into the market and "push" products into the hands of potential buyers, thereby adopting a ________ orientation. A) triple-bottom-line B) customer C) production D) selling E) promotion Answer: D Difficulty: Easy LO: 1.2: Explain the evolution of marketing 76) The Zappos company-wide goal to "WOW" consumers is an example of which marketing orientation? A) customer B) selling C) production D) total quality management E) triple-bottom line Answer: A Difficulty: Easy LO: 1.2: Explain the evolution of marketing 77) The triple-bottom-line component that involves contributing to the communities in which the company operates is the ________ bottom line. A) social B) financial C) environmental D) quality E) customer Answer: A Difficulty: Challenging LO: 1.2: Explain the evolution of marketing AACSB: Ethical understanding and reasoning

78) What is TQM? A) a management philosophy focusing on the continuous quality improvement of products and services B) a holistic perspective involving financial, social, and environmental considerations C) a collection of sophisticated market research methods D) a societal marketing concept, combining customer satisfaction, profitability, and benefiting society E) a marketing strategy that creates an environmentally founded differential benefit in the minds of consumers Answer: A Difficulty: Moderate LO: 1.2: Explain the evolution of marketing AACSB: Ethical understanding and reasoning 79) ________ maintains that marketers must satisfy customers' needs in ways that also benefit society and are profitable to the firm. A) Value propositioning B) Collaborative consumption C) The societal marketing concept D) A sales orientation E) Green marketing Answer: C Difficulty: Easy LO: 1.2: Explain the evolution of marketing AACSB: Ethical understanding and reasoning 80) The Acme Company is concerned with meeting the unmet needs of its present customers without compromising the ability of future generations to meet their needs. This company focuses on ________. A) the selling orientation B) the production orientation C) total quality management D) sustainability E) return on investment Answer: D Difficulty: Moderate LO: 1.2: Explain the evolution of marketing AACSB: Ethical understanding and reasoning

81) Which of the following refers to marketing strategies that support environmental stewardship by establishing an environmentally founded differential benefit in the minds of consumers? A) collaborative consumption B) green marketing C) triple-bottom-line orientation D) societal marketing E) corporate citizenship Answer: B Difficulty: Easy LO: 1.2: Explain the evolution of marketing AACSB: Ethical understanding and reasoning 82) The direct financial impact of a firm's expenditure on marketing activities is called the ________. A) value chain B) value proposition C) differential benefit D) return on marketing investment (ROMI) E) utility function Answer: D Difficulty: Easy LO: 1.2: Explain the evolution of marketing 83) Which of the following grew in popularity shortly after WWII ended, prevailed in the 1950s but decreased because consumers did not like to be pushed? A) mobile marketing B) corporate citizenship C) big data D) a selling orientation E) user-generated content Answer: D Difficulty: Challenging LO: 1.2: Explain the evolution of marketing AACSB: Reflective thinking 84) "Doing well by doing good" is also known as ________. A) sustainability B) social marketing C) societal marketing D) user-generated marketing E) branded marketing Answer: A Difficulty: Easy LO: 1.2: Explain the evolution of marketing AACSB: Integration of real-world business experiences

85) Barbie was an overt coproduction between Mattel and Warner Bros, and the toy company was deeply involved in all the film's marketing and led all its partnerships. This is an example of ________. A) digital marketing B) artificial intelligence C) consumer-generated content D) branded content E) user-generated content Answer: D Difficulty: Moderate LO: 1.2: Explain the evolution of marketing AACSB: Analytical thinking 86) Jolene's firm markets preplanning services for a mortician. She finds that most of her target market wants to avoid discussing future funeral needs, so she must somehow first get their attention. Jolene's firm most likely uses the ________. A) production orientation B) sustainability concept C) selling orientation D) customer orientation E) societal marketing concept Answer: C Difficulty: Moderate LO: 1.2: Explain the evolution of marketing AACSB: Analytical thinking 87) Bombas donates one pair of socks to people without homes for every pair purchased. Bombas has helped to solve the problem of socks being the most requested item for people without homes. Bombas is an example of which concept? A) customer orientation B) sustainability concept C) societal marketing concept D) production orientation E) triple-bottom-line Answer: C Difficulty: Moderate LO: 1.2: Explain the evolution of marketing AACSB: Analytical thinking

88) Which term describes the process of using mathematical models of data to help a computer learn without direct instruction? A) artificial intelligence B) machine learning C) user-generated content D) voice-activated chatbots E) digital bottom line Answer: B Difficulty: Moderate LO: 1.2: Explain the evolution of marketing AACSB: Analytical thinking 89) What is the definition of a chatbot? A) the use of social media and digital marketing B) the capability of computer systems to perform complex tasks that historically only humans could C) a mathematical model of data to help a computer learn without direct instruction D) consumer engagement in marketing activities, such as creating advertisements E) a computer program that simulates and processes human conversation Answer: D Difficulty: Moderate LO: 1.2: Explain the evolution of marketing AACSB: Analytical thinking 90) Today, it's most likely that companies selling unsought goods will use a selling orientation. Answer: TRUE Difficulty: Moderate LO: 1.2: Explain the evolution of marketing 91) Green marketing and sustainability are interchangeable terms describing the same concept. Answer: FALSE Difficulty: Moderate LO: 1.2: Explain the evolution of marketing AACSB: Ethical understanding and reasoning 92) The customer orientation prioritizes the satisfaction of customers' needs and wants. Answer: TRUE Difficulty: Easy LO: 1.2: Explain the evolution of marketing AACSB: Ethical understanding and reasoning

93) How will marketing be affected by AI? Answer: Marketing is one of the business fields that will benefit greatly from advances in AI and machine learning. One easy example is the rapidly escalating improvements in the use of voice-activated chatbots to enhance and improve customer service experiences both online and inside actual brick- and-mortar stores (think: no need to search out a human store clerk!). Simply put, a chatbot is a computer program that simulates and processes human conversation (either written or spoken), allowing humans to interact with digital devices as if they were communicating with a real person. Difficulty: Challenging LO: 1.2: Explain the evolution of marketing AACSB: Application of knowledge 94) Describe the shift from a good-dominant logic to service-dominant logic. Answer: In the past, a goods-dominant logic that focused on building, exchanging, and destroying (through use) value was pervasive. Put completely bluntly, the concept was that raw materials, such as iron ore, that are pretty worthless in that raw state are processed and eventually become an automobile that is sold to a consumer who drives it until it will be sold for a lot less than its initial value or it finally stops operating and is junked. This logic takes into account no value for any service-focused component. Service revenue dominates our economy, so more and more of the transactions within our economy are service transactions. This reality requires that businesses of all kinds–even those with heavy goods as a core product line–move to the servicedominant logic that looks at the exchange of service components for additional value-added to the customer. A customer orientation is a business approach that prioritizes understanding customers' needs and wants and then works holistically and consistently to meet and exceed those needs and wants. Within the service-dominant logic, the necessity of a customer orientation concept is heightened as a central focus for organizational success. Difficulty: Challenging LO: 1.2: Explain the evolution of marketing AACSB: Application of knowledge 95) Explain the concept of corporate citizenship and why it is important for companies today. Answer: Corporate citizenship, also called corporate social responsibility, refers to a company's responsibility to the community in which it operates and to society in general. This concept of doing well by doing good is of growing importance, and is likely to continue to grow in importance, as more and more consumers reward companies who do "good" and punish those who are found to be irresponsible. Difficulty: Moderate LO: 1.2: Explain the evolution of marketing AACSB: Ethical understanding and reasoning 96) Explain why it is often difficult to measure the value of marketing activities. Answer: Marketing objectives are sometimes stated in vague terms, such as "increase product awareness." This lack of specificity in objectives makes it difficult to measure the impact of marketing. Difficulty: Challenging LO: 1.2: Explain the evolution of marketing AACSB: Application of knowledge 26 Copyright © 2025 Pearson Education, Inc.

97) Explain why branding is increasingly becoming a two-way communication between the brand and consumers. Answer: With the rise of user-generated content, such as online reviews and use of social media to discuss brands, it will be critical for brands to create more personalized and far-reaching brand communications. Difficulty: Moderate LO: 1.2: Explain the evolution of marketing AACSB: Written and oral communication 98) When a consumer buys a pair of shoes, they consider the price and other benefits that each competing pair of shoes provides. Marketers communicate these benefits to the customer in the form of a ________. A) product position B) market segment C) mass market D) value proposition E) target market Answer: D Difficulty: Easy LO: 1.3: Understand value from the perspectives of customers, producers, and society 99) The service-dominant logic suggests that customers ________. A) buy goods B) buy services C) do not want marketers to provide more creative solution opportunities D) buy offerings that provide services and create value E) want to buy goods in greater proportion and total dollar value than services Answer: D Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society 100) ________ occurs when a company and its customer(s) work together to jointly craft an offering to suit the customer's need. A) A value proposition B) Co-creation of value C) Competitive advantage D) A value chain E) A distinctive competency Answer: A Difficulty: Easy LO: 1.3: Understand value from the perspectives of customers, producers, and society

101) A differential benefit ________. A) means that the firm creates an offering that differs significantly from the offerings of competitors B) provides reasons for customers to pay a premium for a firm's products and exhibit a strong brand preference C) means the firm can produce a good or service at a lower cost than competitors and thus charge customers a lower price D) occurs when a company and its customer(s) work together to jointly create an offering to suit the customer's needs E) is a business approach that prioritizes understanding customers' needs and wants Answer: B Difficulty: Challenging LO: 1.3: Understand value from the perspectives of customers, producers, and society 102) A ________ can generally come from a cost advantage or a differential advantage. A) competitive advantage B) value proposition C) value chain D) production orientation E) market segment Answer: A Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society 103) A ________ is a series of activities involved in designing, producing, marketing, delivering, and supporting any product. A) value proposition B) production orientation C) value chain D) marketing concept E) market position Answer: C Difficulty: Easy LO: 1.3: Understand value from the perspectives of customers, producers, and society 104) The ________ concept reminds us that every product starts with raw materials, such as iron ore or crude oil, that are of relatively limited value to the end customer. A) co-creation of value B) value proposition C) utility function D) customer relationship management process E) value chain Answer: E Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society

105) The main activities of value chain members include all of the following EXCEPT ________. A) bringing in materials to make the product B) converting the materials into the final product C) providing customers with comparative information about competitors' products D) shipping out the final product E) servicing the product after purchase Answer: C Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society 106) In the value chain, the ________ activity involves bringing in materials or component parts necessary to make the product. A) inbound logistics B) outbound logistics C) operations D) marketing E) service Answer: A Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society 107) The operations activities of the value chain involve ________. A) bringing in materials of component parts necessary to make the product B) converting the materials into another form or the final product C) shipping out the final product D) promoting and selling the final product E) meeting the customer's needs by providing any additional support required Answer: B Difficulty: Challenging LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Integration of real-world business experiences 108) Social media platforms ________. A) improve as the number of users decreases B) are like static websites and books C) categorize entries according to taxonomy D) are version free and in perpetual beta E) are very distinct and share no characteristics with each other Answer: D Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Integration of real-world business experiences

109) ________ incorporates social networking and user interactivity via two-way communication between marketers and consumers. A) Web 1.0 B) Web 2.0 C) Web 3.0 D) Folksonomy E) Digital nativity Answer: B Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society 110) According to the theory of the wisdom of crowds, under the right circumstances, ________. A) a mass market approach is favorable to a target market approach B) a target market approach is favorable to a mass market approach C) groups are smarter than the smartest people in them D) companies can make money by giving their products away for free E) consumers can generate value Answer: C Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society 111) Folksonomy ________. A) is a platform on which a user posts a profile and provide and receive links to other members of the network to share input about common interests B) argues that under the right circumstances, groups are smarter than the smartest people in them C) creates value based on content produced by consumers themselves rather than via intra-firm sources such as the brand D) is a classification system that relies on users rather than preestablished systems to sort contents E) involves outsourcing marketing activities to a large group of people, often through a social networking community Answer: D Difficulty: Challenging LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Integration of real-world business experiences 112) Alcoholism and cigarette smoking are both examples of ________. A) anticonsumption behaviors B) "bait-and-switch" behaviors C) consumer addictions D) shrinkage E) consumer behaviors Answer: C Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Ethical understanding and reasoning 30 Copyright © 2025 Pearson Education, Inc.

113) Luring consumers into the store with promises of inexpensive products with the sole intent of getting them to change to higher-priced goods is known as ________. A) bait-and-switch B) anticonsumption C) addictive consumption D) shrinkage E) folksonomy Answer: A Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Ethical understanding and reasoning 114) Shopaholics and people who can't pull themselves away from their screens are both suffering from ________. A) consumer addiction B) baiting and switching C) crowdsourcing D) shrinkage E) anticonsumption Answer: A Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Ethical understanding and reasoning 115) A new shampoo advertisement on television identifies all of the wonderful effects the consumer will enjoy when using one company's shampoo as opposed to another company's shampoo. What is this company seeking to convey in this television commercial? A) the product's time utility B) the product's distinctive competency C) the company's production orientation D) the company's marketing segmentation process E) the product's differential benefits Answer: E Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Analytical thinking

116) Kao Corp., which makes Ban deodorant, invited teenage girls to create an ad that would encourage other girls to buy the product. This program is an example of ________. A) the wisdom of crowds B) the production concept C) the selling orientation D) folksonomy E) consumer-generated content Answer: E Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Analytical thinking 117) Terrible Tees is an online t-shirt company that invites consumers to enter their t-shirt designs in a monthly contest. All visitors to the site are invited to vote on their favorite design, and at the end of the month, the company produces and takes orders for the t-shirt design with the most votes. This is an example of ________. A) the wisdom of crowds B) the production concept C) the selling orientation D) a folksonomy E) market segmentation Answer: A Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Analytical thinking 118) Product tampering and spray painting graffiti on buildings and subways are both examples of anticonsumption. Answer: TRUE Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society 119) A firm has a competitive advantage when it is able to outperform the competition, providing customers with a desired benefit not provided by the competition. Answer: TRUE Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society 120) Crowdsourcing is a practice where firms outsource marketing activities to a community of users. Answer: TRUE Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society

121) Under the right circumstances, large numbers of consumers can predict successful products, according to the theory of the wisdom of crowds. Answer: TRUE Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Integration of real-world business experiences 122) A value proposition includes only the benefits of the product itself. Answer: FALSE Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Analytical thinking 123) Define and briefly discuss co-creation of value. Answer: Co-creation of value occurs when a company and its customer(s) work together to jointly create an offering to suit the customer's needs. Co-creation is a win-win option: companies have an opportunity to better understand customers' product desires and needs, and customers gain a new appreciation for the firm. Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Application of knowledge 124) Describe the differences between Web 1.0 and Web 2.0. Answer: In the 1990s, the Internet, Web 1.0, was typified by static content provided by a site's creator. Businesses and institutions permitted little consumer involvement on websites. These commercially and technically based organizations created sites that were crude, simple, and designed to accomplish one specific function. Later, Web 2.0 offered marketers two-way communication through social networking sites such as Facebook. People wrote blogs, and ecommerce expanded. Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Application of knowledge

125) What characteristics of social media platforms are important for marketers? Answer: 1. They improve as the number of users increases. For example, Amazon's ability to recommend books, movies, concerts, and other items for sale to you, a process that uses AI and recommendation engines, is based on what other people with similar interests have bought. The recommendations get better as it tracks more and more people who enter search queries. 2. Their currency is number of views. Google makes its money by charging advertisers according to the number of people who see its ads after they type in a search term. 3. They are version free and in perpetual beta. Unlike static websites or books, content is always a work in progress. Enthusiastic users who serve as volunteer editors constantly update Wikipedia, the online encyclopedia, and "correct" others' errors. 4. They categorize entries according to folksonomy rather than "taxonomy." In other words, sites rely on users rather than preestablished systems to sort content. Listeners at Pandora create their own "radio stations" that play songs by artists they choose as well as other similar artists. Difficulty: Challenging LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Application of knowledge 126) Why should a firm be aware of its competitors' distinctive competencies? Answer: A distinctive competency is a firm's capability that is superior to the competition. A company must be aware of its competitors' distinctive competencies in order to successfully compete in the marketplace, shaping its own distinctive competencies into differential benefits that customers desire more than they desire the benefits offered by competitors. Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Application of knowledge 127) What are two competitive advantages a customer may benefit from when buying a bottle of soda from a local corner convenience store versus a chain supermarket? Answer: Answers may vary, but include the following. The customer may be able to park his car close to the door of the convenience store and make the purchase in only a few minutes. The parking lot of the chain store may require the customer to walk a distance before entering the store. The volume of customers in the supermarket may cause the purchase to take longer than the purchase at the convenience store. Difficulty: Challenging LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Application of knowledge 128) Explain how addictive consumption is a dimension of the "dark side" of marketing. Answer: Consumer addiction is a physiological or psychological dependency on products or services. Many companies profit by providing addictive products or by selling solutions. Consumers can use any product or service to relieve some problem to the point that reliance on it becomes extreme. Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Application of knowledge

129) Briefly explain how the value chain is related to competitive advantage. Answer: Every link, or activity, in the value chain is an opportunity to either remove value from or add value to the product the consumer eventually buys. A successful company creates a competitive advantage by performing one or more of the value chain activities better than its competitors. Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Application of knowledge 130) According to the AMA official definition, marketing ________. A) is aptly summed up with the phrase "one and done" B) is a one-shot operation C) involves iterative processes D) is actually impossible to define E) is completed before the product is released Answer: C Difficulty: Challenging LO: 1.4: Explain the basics of market planning 131) Marketers use ________ to create a desired perception of the product in consumers' minds in comparison to competitors' brands. A) marketing plans B) positioning strategies C) segmentation approaches D) crowdsourcing E) value propositions Answer: B Difficulty: Easy LO: 1.4: Explain the basics of market planning 132) Analyzing the marketing environment is the ________ phase of market planning. A) first B) second C) third D) fourth E) fifth Answer: A Difficulty: Easy LO: 1.4: Explain the basics of market planning

133) ________ is the process of thinking strategically about the big picture and where the firm and its products fit within it. A) Crowdsourcing B) Total quality management C) Market planning D) Customer relationship management E) Value proposition creation Answer: C Difficulty: Moderate LO: 1.4: Explain the basics of market planning 134) A mass market ________. A) consists of all possible customers in a market regardless of the differences in their specific needs and wants B) is a distinct group of customers within a larger market who are similar to one another in some way C) is a subsection of customers whose needs differ from those in the larger market D) is the segment(s) on which an organization focuses its marketing plan and toward which it directs its marketing efforts E) consists of customers selected by the firm because it believes its offerings are most likely to win those customers Answer: A Difficulty: Challenging LO: 1.4: Explain the basics of market planning 135) Which of these statements about mass marketing is NOT true? A) It consists of all possible customers in a market regardless of the differences in their specific needs and wants. B) It involves reaching as many customers as possible. C) It is prohibitively expensive. D) It means developing a basic product for everyone. E) It uses a single strategy to reach everyone. Answer: C Difficulty: Moderate LO: 1.4: Explain the basics of market planning

136) A market segment is ________. A) a distinctive group of customers within a larger market who are similar to one another in some way and whose needs differ from other customers in the larger market B) all possible customers in a market regardless of the differences in their specific needs and wants C) the group of customers on which an organization focuses its marketing plan and toward which it directs its marketing efforts D) the set of consumers who are turned off by an organization's marketing efforts E) stakeholders who are not the audience for a product but are impacted by its success or failure Answer: A Difficulty: Challenging LO: 1.4: Explain the basics of market planning 137) A ________ is defined as a market segment on which an organization focuses its marketing plan and toward which it directs its marketing efforts. A) social network B) mass market C) marketplace D) value chain E) target market Answer: E Difficulty: Moderate LO: 1.4: Explain the basics of market planning 138) The field of marketing has ________. A) been static and fixed since its inception B) changed dramatically in the last two decades but has now entered a period of stasis C) changed over the course of its history and will continue to do so D) just ended a period of relative status quo and is on the verge of major changes E) exerted great effort to avoid disruptions and changes Answer: C Difficulty: Moderate LO: 1.4: Explain the basics of market planning 139) When a firm analyzes the marketing environment, it is LEAST likely to look at which of the following? A) the firm's current strengths B) the firm's current weaknesses C) the actions of competitors D) the state of the economy E) the firm's ideas for developing a new product Answer: E Difficulty: Moderate LO: 1.4: Explain the basics of market planning

140) ________ involves understanding the firm's current strengths and weaknesses by assessing factors that might help or hinder the development and marketing of products. A) Marketing environment analysis B) Market segmentation C) Mass marketing D) Machine learning E) Societal marketing Answer: A Difficulty: Moderate LO: 1.4: Explain the basics of market planning 141) A catalog retailer has identified African-American professionals between the ages of thirtyfive and forty-five as the group of customers within the larger market that is a potential market for its products. The retailer plans to direct its marketing efforts toward this group of consumers. The retailer has identified a ________. A) target market B) marketing mix C) product mix D) mass market E) social network Answer: A Difficulty: Moderate LO: 1.4: Explain the basics of market planning AACSB: Analytical thinking 142) An organic farmer has identified three distinct groups who might be interested in his products: vegetarians, people who are concerned about chemicals in their foods, and people who consider themselves innovators and trendsetters. These three groups are examples of ________. A) marketing mixes B) market segments C) product mixes D) mass markets E) market positions Answer: B Difficulty: Moderate LO: 1.4: Explain the basics of market planning AACSB: Analytical thinking

143) There are several different sports watches for cyclists. When compared to its competitors, the Bike Nashbar watch is the least expensive. The Acumen Basic is the only one designed for older cyclists who prefer a larger display. Sports Instrument is the most comfortable of all the available watches. This describes the ________ of the three sports watches. A) marketing mixes B) mass marketing strategies C) positioning D) consumer orientations E) selling orientations Answer: C Difficulty: Challenging LO: 1.4: Explain the basics of market planning AACSB: Analytical thinking 144) Analyzing the marketing environment involves consideration of the actions of competitors, cultural and technological changes, and the economy. Answer: TRUE Difficulty: Moderate LO: 1.4: Explain the basics of market planning 145) A target market is all possible customers in a market, regardless of their specific needs. Answer: FALSE Difficulty: Moderate LO: 1.4: Explain the basics of market planning AACSB: Application of knowledge 146) A mass market is the segment(s) on which an organization focuses its marketing plan and toward which it directs its marketing efforts. Answer: FALSE Difficulty: Moderate LO: 1.4: Explain the basics of market planning 147) By selecting a mass market, a firm risks losing potential customers to competitors who instead try to meet the needs of specific target markets. Answer: TRUE Difficulty: Moderate LO: 1.4: Explain the basics of market planning AACSB: Application of knowledge

148) Write two questions that a firm would be likely to consider during the market planning stage. Answer: Answers will vary, but should reflect an understanding of the "big picture" nature of market planning. Examples: What product benefits will our customers want in the near future? What sets our firm apart from competitors? How will legal and regulatory issues affect our business? Difficulty: Moderate LO: 1.4: Explain the basics of market planning AACSB: Application of knowledge 149) What are positioning strategies? Explain how an automaker might use them. Answer: Marketers develop positioning strategies to create a desired perception of the product in consumers' minds in comparison to competitors' brands. An automaker could position their car models as the safer, child-friendly option for families. Conversely, an automaker could position their models as the sleeker, sexier choice, with top-of-the-line options. Difficulty: Moderate LO: 1.4: Explain the basics of market planning AACSB: Application of knowledge 150) What should be taken into account when analyzing the marketing environment? Answer: The first phase of market planning is to analyze the marketing environment. This means understanding the firm's current strengths and weaknesses by assessing factors that might help or hinder the development and marketing of products. The analysis must also take into account the opportunities and threats the firm will encounter in the marketplace, such as the actions of competitors, cultural and technological changes, and the economy. Difficulty: Moderate LO: 1.4: Explain the basics of market planning AACSB: Application of knowledge

Marketing: Real People, Real Choices, 12e (Solomon) Chapter 2 Global, Ethical, and Sustainable Marketing 1) ________ refers to the total value of all the exports and imports of the world's nations. A) Countertrade B) International marketing C) Gross national product D) Gross domestic product E) World trade Answer: E Difficulty: Easy LO: 2.1: Understand the big picture of international marketing and the decisions firms must make when they consider globalization 2) ________ currency cannot be spent or exchanged outside its country's borders. A) Non-convertible B) Countertrade C) Competitive advantage D) Gross domestic product E) World trade Answer: A Difficulty: Easy LO: 2.1: Understand the big picture of international marketing and the decisions firms must make when they consider globalization 3) ________ occurs when goods are paid for with other items instead of cash. A) Protectionism B) Competitive intelligence C) Gray marketing D) Countertrade E) Inflation Answer: D Difficulty: Easy LO: 2.1: Understand the big picture of international marketing and the decisions firms must make when they consider globalization 4) What is the first step in the decision process to enter global markets? A) Deciding whether to go global at all B) Determining which markets to enter C) Analyzing the appropriate level of commitment D) Designing marketing mix strategies E) Identifying the firm's competitive advantage Answer: A Difficulty: Moderate LO: 2.1: Understand the big picture of international marketing and the decisions firms must make when they consider globalization 1 Copyright © 2025 Pearson Education, Inc.

5) Analyzing the appropriate level of commitment is part of ________ of the decision process to enter global markets. A) Step 1 B) Step 2 C) Step 3 D) Step 4 E) Step 5 Answer: A Difficulty: Moderate LO: 2.1: Understand the big picture of international marketing and the decisions firms must make when they consider globalization 6) Exporting products overseas is an example of ________. A) countertrade B) a market-entry strategy C) a marketing mix strategy D) fair trade E) a convertible trade Answer: B Difficulty: Moderate LO: 2.1: Understand the big picture of international marketing and the decisions firms must make when they consider globalization 7) Azerbaijan imported wheat from Romania in exchange for crude oil, and Vietnam exchanged rice for Philippine fertilizer and coconuts. Both scenarios are examples of which of the following? A) convertible trade B) tariffs C) quotas D) protectionism E) countertrade Answer: E Difficulty: Moderate LO: 2.1: Understand the big picture of international marketing and the decisions firms must make when they consider globalization AACSB: Analytical thinking

8) The Teddy Bear Company is determining whether to build and run manufacturing facilities in other countries will result in a payoff worth the extra risk. In which stage of the international marketing process is the Teddy Bear Company? A) deciding whether to go global B) deciding which global markets are most attractive C) deciding which market-entry strategy is best D) deciding on the marketing mix strategies for foreign markets E) deciding on the global marketing organization Answer: C Difficulty: Moderate LO: 2.1: Understand the big picture of international marketing and the decisions firms must make when they consider globalization AACSB: Analytical thinking 9) From 2009 to 2022, ________. A) world exports of merchandise increased by almost $13 trillion B) the world suffered a global economic crisis that resulted in dramatic decreases in worldwide exports C) declining commodity prices and changing exchange rates caused a steep decline in trade volume D) worldwide exports decreased from $25 trillion to about $12 trillion E) worldwide exports increased by nearly $25 trillion Answer: A Difficulty: Challenging LO: 2.1: Understand the big picture of international marketing and the decisions firms must make when they consider globalization AACSB: Analytical thinking 10) The increase in greenhouse gases causes the Earth to get warmer, resulting in climate change. Answer: TRUE Difficulty: Moderate LO: 2.1: Understand the big picture of international marketing and the decisions firms must make when they consider globalization 11) The glaring inequities revealed during the COVID-19 pandemic gave a clear message that more must be done to help the poorest nations. Answer: TRUE Difficulty: Moderate LO: 2.1: Understand the big picture of international marketing and the decisions firms must make when they consider globalization

12) A country that barters for imported products rather than paying in cash likely does so because its currency is convertible. Answer: TRUE Difficulty: Moderate LO: 2.1: Understand the big picture of international marketing and the decisions firms must make when they consider globalization AACSB: Application of knowledge 13) Describe the four steps a firm should take when it is considering going global. Answer: Management first needs to examine whether it is in the firm's best interest to focus exclusively on the home market or to move out into foreign markets. This is a "go" or "no go" decision. The second step, if the decision is "go," is to determine which global markets are most attractive for the firm. Some countries will hold greater opportunities than others. After attractive markets are identified, the third step is to determine which market-entry strategy, and thus which level of commitment, is best for the firm. Finally, management must consider marketing mix strategies for foreign markets, determining what mixture of standardization and localization will most benefit the firm. Difficulty: Moderate LO: 2.1: Understand the big picture of international marketing and the decisions firms must make when they consider globalization AACSB: Analytical thinking 14) What is a dark side to having increasing access to products in the global marketplace? Answer: Our ever-increasing access to products from around the world does have a dark side: The growth in world trade in recent years has been accompanied by a glut of unsafe products— toys with lead paint, toothpaste containing poisonous diethylene glycol, and, more recently, crayons laced with cancer-causing asbestos. Today, firms engaging in world trade must also consider and deal with climate change and the devastation caused by the floods and fires it creates, increasing hostility between some nations, and the fear of the use of nuclear weapons, all of which cost governments and their citizens billions of dollars. Difficulty: Moderate LO: 2.1: Understand the big picture of international marketing and the decisions firms must make when they consider globalization AACSB: Reflective thinking

15) Discuss how climate change causes some leaders to desire a single marketplace. Answer: Climate change may threaten the future of the planet. Most experts agree that factories and automobiles and a host of other modern "necessities" continue to pump more and more carbon dioxide into our atmosphere while at the same time we cut down the rain forests and reduce the amount of oxygen the trees add to the atmosphere. This increase in greenhouse gases causes the Earth to get warmer, just like a greenhouse provides a warm place for tender plants. The result, many believe, is climate change, a warming of the Earth, which has had and continues to have disastrous effects on the planet. These fears have caused many to demand international agreements that would force industries and governments to develop and adhere to the same environmental standards to protect the future of the planet. Difficulty: Challenging LO: 2.1: Understand the big picture of international marketing and the decisions firms must make when they consider globalization AACSB: Reflective thinking 16) How should competitive advantage be considered in the context of deciding whether to go global? Answer: Creating competitive advantage is tough enough to accomplish in a firm's home country, but when firms enter a global marketplace the challenge of creating competitive advantage becomes even more complex versus domestic markets. There are more players involved, and typically local firms have a "home-court advantage." If a firm wants to go global, it needs to examine the competitive advantage that makes it successful in its home country. Will this leg up "travel" well to other countries? If the answer is yes, then a firm is probably wise to consider globalization more seriously. Difficulty: Challenging LO: 2.1: Understand the big picture of international marketing and the decisions firms must make when they consider globalization AACSB: Reflective thinking 17) GATT ________. A) is an international lending institution B) is the only international organization that deals with the global rules of trade C) is international legislation aimed at stamping out pirating and protecting intellectual property D) seeks to reduce poverty by improving economies and promoting sustainable development E) ensures the stability of the international monetary exchange by controlling fluctuations in foreign exchange rates Answer: B Difficulty: Easy LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization AACSB: Ethical understanding and reasoning

18) Which of the following statements about the World Trade Organization (WTO) is true? A) The WTO is a branch of the U.S. government. B) An essential function of the WTO is stabilizing international money exchange rates. C) Only developed nations are granted membership into the WTO. D) The WTO's main function is to help the least developed countries grow their economies. E) The WTO is the only international organization that deals with the global rules of trade between nations. Answer: E Difficulty: Moderate LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization AACSB: Ethical understanding and reasoning 19) When a government enacts a policy of protectionism, it ________. A) enforces rules on foreign firms to give home companies an advantage B) ensures the stability of international monetary exchange by controlling fluctuations in forex C) reduces or eliminates tariffs D) lifts or increases import quotas E) states how much trade a country has going out compared to how much it has coming in Answer: A Difficulty: Challenging LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization AACSB: Ethical understanding and reasoning 20) ________ are voluntary quotas that countries place on their own exports to partner nations. A) GATT B) VERs C) Embargoes D) Tariffs E) Balance of payments Answer: B Difficulty: Easy LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization AACSB: Ethical understanding and reasoning

21) ________ is the pricing of imports below production cost. A) An embargo B) A tariff C) Protectionism D) Dumping E) Forex Answer: D Difficulty: Easy LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization AACSB: Ethical understanding and reasoning 22) The purpose of a government-imposed ________ is to give domestic competitors an advantage in the marketplace by making foreign competitors' goods more expensive than domestic goods. A) monopoly B) quota C) tariff D) countertrade E) embargo Answer: C Difficulty: Easy LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization AACSB: Ethical understanding and reasoning 23) ________ are applied through the use of quality or content control requirements placed on imported goods. A) Voluntary export restraints B) Hidden import quotas C) Embargoes D) Forex rates E) GATTs Answer: B Difficulty: Moderate LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization

24) A(n) ________ is a group of countries that have agreed to coordinate trade policies and ease restrictions on the flow of products and capital across members' borders. A) monopoly B) free trade zone C) economic community D) oligopoly E) economic infrastructure Answer: C Difficulty: Easy LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization 25) Which is a member country of COMESA? A) Bolivia B) Malaysia C) Egypt D) Slovakia E) Argentina Answer: C Difficulty: Moderate LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization 26) MERCOSUR is ________. A) the trade alliance comprised of Argentina, Brazil, Paraguay, Uruguay, and Venezuela B) the common market for eastern and southern Africa C) the economic community that includes Malta, Czechia, and Slovenia D) the renegotiated trade agreement between the U.S., Canada, and Mexico E) the name for the United Kingdom's withdrawal from the European Union Answer: D Difficulty: Moderate LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization

27) The exit of the United Kingdom from the EU is referred to as ________. A) NAFTA B) MERCOSUR C) Brexit D) the WTO E) GATT Answer: C Difficulty: Moderate LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization 28) U.S. sugar import quotas have existed for more than 50 years and preserve about half of the U.S. sugar market for domestic producers. These quotas are examples of ________. A) embargoes B) nationalization C) protectionism D) pirating E) balance of payments Answer: C Difficulty: Moderate LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization AACSB: Analytical thinking 29) U.S. sugar import quotas have existed for more than 50 years and preserve more than half of the U.S. sugar market for domestic producers. Why might the United States continue to have these quotas? A) to reduce competition for its domestic sugar industry B) to increase the cost of sugar C) to control the supply and demand for sugar D) to support a mass market for sugar E) to improve the promotion of sugar Answer: A Difficulty: Moderate LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization AACSB: Application of knowledge

30) In 2018, the United States imposed a tax on imported steel and aluminum in an effort to protect U.S. jobs in these industries. Another name for this levied tax is a(n) ________. A) embargo B) gray tax C) tariff D) import quota E) boycott Answer: C Difficulty: Moderate LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization AACSB: Analytical thinking 31) Trusted Wholesalers is a company that purchases products produced in Mexico and sells them to companies based in the United States and Canada. Management at Trusted Wholesalers would most likely be interested in becoming experts in the agreements made by ________. A) the EU B) USMCA C) COMESA D) SAARC E) MERCOSUR Answer: B Difficulty: Moderate LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization AACSB: Application of knowledge 32) The purpose of the International Monetary Fund is to ensure the stability of the international monetary exchange by controlling fluctuations in foreign exchange rates. Answer: TRUE Difficulty: Moderate LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization AACSB: Ethical understanding and reasoning 33) The World Bank lends about $72 billion a year to development projects to reduce poverty and better people's lives. Answer: TRUE Difficulty: Moderate LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization AACSB: Ethical understanding and reasoning 10 Copyright © 2025 Pearson Education, Inc.

34) Governments use protectionism practices to make good less expensive for its citizens. Answer: FALSE Difficulty: Moderate LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization AACSB: Ethical understanding and reasoning 35) An embargo is an extreme quota that prohibits commerce and trade with a specified country altogether. Answer: TRUE Difficulty: Moderate LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization AACSB: Ethical understanding and reasoning 36) Stabilizing exchange rates can help prevent severe balance of payments problems. Answer: TRUE Difficulty: Moderate LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization 37) Bolivia, Colombia, Ecuador, and Peru are members of SAARC. Answer: FALSE Difficulty: Moderate LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization AACSB: Analytical thinking 38) Describe the function of the World Trade Organization (WTO) and explain how it originated. Answer: The objective of the WTO is to help world trade flow as smoothly, freely, and predictably as possible. It accounts for about 98 percent of world trade and has moved toward creating a single open world market. Many negotiations in recent years have focused on issues related to economic development. It was created in 1984 during the Uruguay Round of the General Agreement on Tariffs and Trade (GATT), which was established in the aftermath of World War II. Difficulty: Challenging LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization AACSB: Analytical thinking

39) Define embargo and give an example. Answer: An embargo is an extreme quota that prohibits commerce and trade with a specified country altogether. For over 60 years, hard-core cigar smokers in the United States have had to do without because the U.S. government prohibited the import of Cuban cigars as well as rum and other products because of political differences with its island neighbor. In recent years, the U.S. government has moved toward the normalization of relations between the two countries, meaning Americans may again enjoy these uniquely Cuban products. Difficulty: Challenging LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization AACSB: Analytical thinking 40) What is protectionism and why might a government adopt it as a policy? Explain three examples of protectionism. Answer: A country that has a policy of protectionism enforces rules on foreign firms in order to give home companies an advantage. Examples of protectionism include tariffs, embargoes, and import quotas. Import quotas are set on foreign goods in order to reduce competition for domestic industries. This can make goods more expensive within a country because the absence of cheaper foreign goods reduces pressure on domestic firms to lower prices. An embargo is an extreme quota that completely prohibits trade with a specified country. Tariffs are taxes on imported goods, making foreign goods more expensive and giving domestic goods a price advantage. Difficulty: Challenging LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization AACSB: Application of knowledge 41) Describe the function of an economic community and explain how its policies can be advantageous to marketers. Give two examples of important economic communities. Answer: When countries band together to promote trade among themselves and make it easier for member nations to compete elsewhere, they form an economic community. These communities of countries coordinate trade policies and ease restrictions on the flow of products and capital across their borders. Economic communities are important to marketers because they set policies in such areas as product, package labeling, and advertising regulations that influence strategic decisions for marketers in these regions. The European Union (EU) and the United Sates-Mexico-Canada Agreement (USMCA) are two of the most powerful economic communities. Difficulty: Moderate LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization AACSB: Application of knowledge

42) How might a nation's strict import quotas on particular products negatively affect consumers in that country? Answer: Import quotas are designed to reduce competition for domestic industries. With reduced competition and the absence of less expensive foreign products, domestic industries may feel less pressure to lower their prices and consumers may have to pay more than if foreign competition were a larger part of the market. Difficulty: Moderate LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization AACSB: Analytical thinking 43) The U.S. government proposed a tariff on some Chinese textiles and clothing when the trade deficit with China reached $103 billion. Explain what the United States was trying to achieve through this action. Answer: Governments use tariffs on imported goods to give domestic competitors an advantage in the marketplace by making foreign competitors' goods more expensive than their own goods. By placing a tariff on certain items imported from China, the U.S. government was trying to give U.S. consumers a financial incentive for buying products made within the United States. Difficulty: Challenging LO: 2.2: Explain how international organizations such as the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF), economic communities, and individual country regulations facilitate and limit a firm's opportunities for globalization AACSB: Application of knowledge 44) Marketers need to understand the ________ environment of a country from two perspectives: the overall level of development of a country and the current stage of its business cycle. A) political and legal B) sociocultural C) economic D) technological E) natural Answer: C Difficulty: Moderate LO: 2.3: Understand how factors in a firm's external business environment influence marketing strategies and outcomes in both domestic and global markets

45) The key elements of the ________ environment are the economic environment, competitive environment, technological environment, political and legal environment, and sociocultural environment. A) internal B) external C) marketing D) visible E) global Answer: B Difficulty: Moderate LO: 2.3: Understand how factors in a firm's external business environment influence marketing strategies and outcomes in both domestic and global markets 46) The most commonly used measure of a country's economic health is the country's ________. A) gross domestic product (GDP) B) gross national product (GNP) C) foreign exchange rate D) cost of living E) purchasing power parity (PPP) Answer: A Difficulty: Easy LO: 2.3: Understand how factors in a firm's external business environment influence marketing strategies and outcomes in both domestic and global markets 47) Per capita GDP is often a better indicator of a country's economic health than GDP because ________. A) it is adjusted for the population size of each country B) it is adjusted for the country's level of economic development C) it includes data on goods and services the country produces outside its borders D) it excludes data on goods and services the country produces inside its borders E) it includes the goods but not the services a country produces within its borders Answer: A Difficulty: Moderate LO: 2.3: Understand how factors in a firm's external business environment influence marketing strategies and outcomes in both domestic and global markets 48) Which element is considered part of an organization's political/legal environment? A) human rights issues B) social norms C) values D) ethnocentrism E) demographics Answer: A Difficulty: Moderate LO: 2.3: Understand how factors in a firm's external business environment influence marketing strategies and outcomes in both domestic and global markets 14 Copyright © 2025 Pearson Education, Inc.

49) A country's ________ refers to the availability of transportation, distribution networks, financial institutions, energy networks, and other resources that make doing business in a country possible. A) level of economic development B) standard of living C) gross domestic product (GDP) D) economic infrastructure E) business cycle Answer: D Difficulty: Easy LO: 2.3: Understand how factors in a firm's external business environment influence marketing strategies and outcomes in both domestic and global markets 50) The ________ is the price of a nation's currency in terms of another currency. A) gross domestic product (GDP) B) inflation rate C) import quota D) purchasing power parity E) foreign exchange rate Answer: E Difficulty: Easy LO: 2.3: Understand how factors in a firm's external business environment influence marketing strategies and outcomes in both domestic and global markets 51) A country's ________ indicates the average quality and quantity of goods and services consumed within the country. A) economic infrastructure B) standard of living C) gross domestic product (GDP) D) gross national product (GNP) E) business cycle Answer: B Difficulty: Easy LO: 2.3: Understand how factors in a firm's external business environment influence marketing strategies and outcomes in both domestic and global markets 52) More than 80 percent of consumers live in ________. A) developing countries B) LDCs C) BOPs D) BRICS countries E) developed countries Answer: A Difficulty: Moderate LO: 2.3: Understand how factors in a firm's external business environment influence marketing strategies and outcomes in both domestic and global markets 15 Copyright © 2025 Pearson Education, Inc.

53) When determining a country's ________, economists look at how the country is attempting to reduce poverty, inequality, and unemployment in addition to considering the country's GDP. A) forex rate B) competitive environment C) economic infrastructure D) level of economic development E) purchasing power parity Answer: D Difficulty: Moderate LO: 2.3: Understand how factors in a firm's external business environment influence marketing strategies and outcomes in both domestic and global markets 54) The collective name for the group of more than 4 billion consumers throughout the world who live on less than $2 a day is ________. A) the bottom of the pyramid B) developing countries C) the BRICS countries D) the Group of 7 E) GSP Answer: A Difficulty: Easy LO: 2.3: Understand how factors in a firm's external business environment influence marketing strategies and outcomes in both domestic and global markets 55) Which of the following explains why marketers are attracted to the BRICS countries? A) These countries have long-established upper classes that form a strong market for luxury goods. B) These countries are quickly moving from being least developed to developing countries. C) These countries have masses of consumers who are not yet wealthy but are quickly moving to economic prosperity. D) These countries offer large markets with no language or cultural barriers. E) These countries wield the most power in the G7. Answer: C Difficulty: Moderate LO: 2.3: Understand how factors in a firm's external business environment influence marketing strategies and outcomes in both domestic and global markets

56) Which terms does the text use to refer to the differing levels of economic development among world nations? A) preindustrial, agricultural, and post-industrial countries B) least developed, developing, and developed countries C) low income, middle income, and high income countries D) industrial developed, emerging market, and frontier market countries E) emerging market, transition economy, and fully developed economy countries Answer: B Difficulty: Moderate LO: 2.3: Understand how factors in a firm's external business environment influence marketing strategies and outcomes in both domestic and global markets 57) The United States, the United Kingdom, Argentina, France, Italy, Saudi Arabia, and Japan are all members of ________. A) the BRICS countries B) the G7 C) the EU D) the G20 E) MERCOSUR Answer: D Difficulty: Moderate LO: 2.3: Understand how factors in a firm's external business environment influence marketing strategies and outcomes in both domestic and global markets 58) What term refers to the overall patterns of change in an economy? A) the microenvironment B) the business cycle C) the technological environment D) the legal environment E) social norms Answer: B Difficulty: Easy LO: 2.3: Understand how factors in a firm's external business environment influence marketing strategies and outcomes in both domestic and global markets 59) Which term describes a period characterized by high levels of demand, employment, and income in an economy? A) prosperity B) recovery C) inflation D) deflation E) depression Answer: C Difficulty: Moderate LO: 2.3: Understand how factors in a firm's external business environment influence marketing strategies and outcomes in both domestic and global markets 17 Copyright © 2025 Pearson Education, Inc.

60) Through ________ activities, a firm gathers and analyzes publicly available information about rivals. A) economic infrastructure B) competitive intelligence C) demographic D) perfect competition E) business cycle Answer: B Difficulty: Easy LO: 2.3: Understand how factors in a firm's external business environment influence marketing strategies and outcomes in both domestic and global markets 61) ________ income is the amount of money an individual has left to spend after paying for necessities such as housing, utilities, food, and clothing. A) Discretionary B) Gross product C) Standard of living D) Inflationary E) Per capita Answer: A Difficulty: Easy LO: 2.3: Understand how factors in a firm's external business environment influence marketing strategies and outcomes in both domestic and global markets 62) Through ________ competition, competitors offer similar goods or services. A) perfect B) product C) brand D) monopolistic E) oligopolistic Answer: C Difficulty: Easy LO: 2.3: Understand how factors in a firm's external business environment influence marketing strategies and outcomes in both domestic and global markets 63) Planet Fitness and Soloflex engage in ________ competition when each vies to earn a consumer's dollars budgeted for getting into shape, the former by a gym membership and the latter by an exercise machine. A) discretionary income B) product C) brand D) monopolistic E) oligopolistic Answer: C Difficulty: Moderate LO: 2.3: Understand how factors in a firm's external business environment influence marketing strategies and outcomes in both domestic and global markets 18 Copyright © 2025 Pearson Education, Inc.

64) In a monopoly, ________. A) one seller controls a market B) there are a relatively small number of sellers C) many sellers compete for buyers in a market, offering slightly different products D) many smaller sellers offer basically the same good or service E) the actions of each seller directly affect the others Answer: A Difficulty: Easy LO: 2.3: Understand how factors in a firm's external business environment influence marketing strategies and outcomes in both domestic and global markets 65) Which industry structure most often exists in an industry that requires substantial investments in equipment or technology to produce a product? A) monopoly B) oligopoly C) monopolistic competition D) perfect competition E) natural competition Answer: B Difficulty: Moderate LO: 2.3: Understand how factors in a firm's external business environment influence marketing strategies and outcomes in both domestic and global markets 66) In a(n) ________ structure, there are many sellers, each offering slightly different products and each having only a small share of the market. A) monopoly B) oligopoly C) monopolistic competition D) perfect competition E) natural competition Answer: C Difficulty: Moderate LO: 2.3: Understand how factors in a firm's external business environment influence marketing strategies and outcomes in both domestic and global markets 67) Agricultural markets, in which there are many individual farmers, each producing the same corn or red peppers, come closest to the state of ________. A) monopoly B) oligopoly C) monopolistic competition D) perfect competition E) natural competition Answer: D Difficulty: Easy LO: 2.3: Understand how factors in a firm's external business environment influence marketing strategies and outcomes in both domestic and global markets 19 Copyright © 2025 Pearson Education, Inc.