Print Options

Card layout: ?

← Back to notecard set|Easy Notecards home page

Instructions for Side by Side Printing
  1. Print the notecards
  2. Fold each page in half along the solid vertical line
  3. Cut out the notecards by cutting along each horizontal dotted line
  4. Optional: Glue, tape or staple the ends of each notecard together
  1. Verify Front of pages is selected for Viewing and print the front of the notecards
  2. Select Back of pages for Viewing and print the back of the notecards
    NOTE: Since the back of the pages are printed in reverse order (last page is printed first), keep the pages in the same order as they were after Step 1. Also, be sure to feed the pages in the same direction as you did in Step 1.
  3. Cut out the notecards by cutting along each horizontal and vertical dotted line
To print: Ctrl+PPrint as a list

125 notecards = 32 pages (4 cards per page)

Viewing:

Marketing Management chapter 3 practice test

front 1

As the manager of an organization that is attempting to build a Marketing Information System (MIS), you have been informed that a MIS is built upon three fundamental information sources. The sources are ________, marketing intelligence activities, and marketing research.
A) external records and documents
B) databases found on the Internet
C) consultant reports
D) internal company records
E) secondary data from government sources such as the Better Business Bureau

Page: 69

back 1

D

front 2

As the manager of an organization that is attempting to build a Marketing Information System (MIS), you have been informed that a MIS is built upon three fundamental information sources. The sources are ________, marketing intelligence activities, and marketing research.
A) external records and documents
B) databases found on the Internet
C) consultant reports
D) internal company records
E) secondary data from government sources such as the Better Business Bureau

Page: 69

back 2

D

front 3

The heart of the internal records system is the ________.
A) pay-roll system
B) purchase order cycle
C) order-to-payment cycle
D) expense cycle
E) human resources system

Page: 70

back 3

C

front 4

The ________ begins with sales representatives and dealers sending orders to the firms and is followed by the sales department preparing invoices, and finally generating shipping and billing documents which are then sent to various departments.
A) payroll system
B) market research process
C) human resources system
D) expense cycle
E) order-to-payment cycle

Page: 70

back 4

E

front 5

By equipping its sales force with handheld devices with bar-code readers and Internet connections to speed inventory assessment, TaylorMade allows sales executives to have significantly more time to interact with their consumers. This is an example of the use of technology in improving ________.
A) sales information systems
B) payroll systems
C) cookies
D) cohort segmentation
E) competitive intelligence gathering

Page: 70

back 5

A

front 6

Companies can practice targeted marketing by using ________–records of Web site usage stored on personal browsers.
A) plug-ins
B) black swans
C) cookies
D) trolls
E) honey-pots

Page: 70

back 6

C

front 7

The internal records system supplies results data, but the marketing intelligence system supplies ________ data.
A) internal
B) revenue
C) thematic
D) happenings
E) process

Page: 71

back 7

D

front 8

A ________ is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment.
A) data warehousing system
B) viral marketing campaign
C) product management system
D) marketing intelligence system
E) sales information system

Page: 71

back 8

D

front 9

A company can take several steps to improve the quality of its marketing intelligence. Which of the following best describes the practice used by McDonald's when it sent pseudo customers to assess stores' internal speed standards?
A) training and motivating the sales force to spot and report new developments
B) motivating intermediaries to pass along important intelligence
C) networking externally
D) purchasing information from outside research firms and vendors
E) using the sales information system to get accurate sales reports

Page: 72

back 9

B

front 10

A company can take several steps to improve the quality of its marketing intelligence. If the company purchases competitive products for study, attends open houses and trade shows, and reads competitors' published reports and stockholder information, the company is using ________ to improve the quality of its marketing intelligence.
A) sales-force surrogates
B) intermediaries
C) external networks
D) advisory panels
E) customer feedback systems

Page: 72

back 10

C

front 11

When gathering marketing intelligence, companies often use the 2000 U.S. census, which provides an in-depth look at the population swings, demographic groups, regional migrations, and changing family structure of 281+ million people. Which of the following steps to improve the quality of a company marketing intelligence system would be most closely associated with this illustration?
A) A company can purchase information from outside suppliers.
B) A company can take advantage of government data sources.
C) A company can use online customer feedback systems to collect data.
D) A company can network externally.
E) A company can use its sales force to collect and report data.

Page: 72

back 11

B

front 12

When a company acquires consumer-panel data from firms like A.C. Nielsen Company and Information Resources Inc., which of the following steps to improve the quality of a company marketing intelligence system is the company resorting to?
A) training and motivating the sales force to spot and report new developments
B) motivating distributors, retailers, and other intermediaries to pass along important intelligence
C) hiring external experts to collect intelligence
D) using external network
E) purchasing information from outside research firms and vendors

Page: 72

back 12

E

front 13

Elance.com is a service provider that allows contractors to describe their level of satisfaction with subcontractors. This is an example of a(n) ________.
A) independent customer goods and service review forum
B) public blog
C) customer complaint site
D) combo site offering customer reviews and expert opinions
E) distributor or sales agent feedback site

Page: 73

back 13

E

front 14

The sites which offer positive or negative product or service reviews and are built by the retailers of a particular product or service are called ________.
A) combo sites
B) distributor or sales agent feedback sites
C) public blogs
D) independent service review forums
E) customer complaint sites

Page: 73

back 14

B

front 15

A ________ is "unpredictable, short-lived, and without social, economic, and political significance."
A) fad
B) fashion
C) trend
D) megatrend
E) style

Page: 74

back 15

A

front 16

A ________ is a direction or sequence of events that has some momentum and durability; it reveals the shape of the future and can provide strategic direction.
A) fad
B) fashion
C) trend
D) megatrend
E) style

Page: 74

back 16

C

front 17

A ________ is a "large social, economic, political, and technological change that is slow to
form, and once in place, influences us for some time—between seven and ten years, or longer."
A) fad
B) fashion
C) trend
D) megatrend
E) style

Page: 74

back 17

D

front 18

Which of the following is true about trends in worldwide population growth?
A) Birthrates are on the rise in developed countries.
B) Overall, the world population growth is declining.
C) Birthrates are on the rise in developing countries.
D) Death rates are rising in developing countries.
E) Population growth is highest in developing countries.

Page: 75

back 18

E

front 19

A growing population does not mean growing markets unless ________.
A) the people are under a democratic system of government
B) there is common ownership of all resources
C) people have sufficient purchasing power
D) there is adequate governmental intervention in the market
E) the government has a budget surplus

Page: 75

back 19

C

front 20

In the U.S., people born between the years ________ are called boomers.
A) 1978 and 2002
B) 1946 and 1964
C) 1925 and 1945
D) 1965 and 1985
E) 1920 and 1940

Page: 75

back 20

B

front 21

Firms find "reverse innovation" advantage by ________.
A) introducing a commodity in a developed country and then distributing it globally
B) introducing a commodity in a developing country and then distributing it in other developing countries
C) introducing a commodity in a developing country and then distributing it globally
D) introducing a commodity in a developed country and then distributing it in developing countries
E) introducing a commodity in a developed country and then distributing it in other developed countries

Page: 76

back 21

C

front 22

________ refer to groups of individuals who are born during the same time period and travel through life together.
A) Cohorts
B) Populations
C) Clans
D) Societies
E) Ethnic groups

Page: 76

back 22

A

front 23

According to the 2000 Census, which of the following is the largest group in the United States?
A) Whites
B) Hispanics
C) African Americans
D) Chinese Americans
E) Asian Indians

Page: 76

back 23

A

front 24

The three largest subgroups of the Hispanics in the U.S. are ________, ________, and ________.
A) Puerto Rican; Mexican; Chilean
B) Salvadoran; Cuban; Dominican
C) Mexican; Puerto Rican; Cuban
D) Brazilian; Mexican; Cuban
E) Salvadoran; Dominican; Columbian

Page: 76

back 24

C

front 25

Which of the following is true about the growth of the Hispanic population in the U.S.?
A) Hispanics made up 11 percent of all new workers in the past decade.
B) The disposable income of Hispanics has not grown as fast as that of the rest of the population.
C) Hispanics now outnumber African Americans in the U.S.
D) Family incomes of Hispanics have grown at a rate double that of the rest of the population.
E) Hispanics are the fastest growing consumer group in the U.S.

Page: 77

back 25

E

front 26

The traditional household consists of ________.
A) a husband, wife, and children (and sometimes grandparents)
B) a group of related persons living together
C) two or more families living together
D) a man and a woman living together (whether married or not)
E) related or unrelated persons who share living arrangements

Page: 77

back 26

A

front 27

By 2010, projections indicate that the largest category of households will be composed of ________.
A) childless married couples and empty nesters
B) single-parent families
C) single live-alones
D) singles living with nonrelatives
E) married couples with children

Page: 77

back 27

A

front 28

Which of the following is likely to occur during economic downturns?
A) People tend to spend more on luxury goods
B) Consumption of necessary goods decline
C) Long term credit is available at concessional rates of interest
D) The purchasing power of the people declines
E) The level of investment in the economy rises

Page: 77

back 28

D

front 29

Which of the following economies provide limited opportunities to international marketers to develop product sales?
A) capitalist economies
B) subsistence economies
C) raw-materials-exporting economies
D) industrializing economies
E) industrialized economies

Page: 78

back 29

B

front 30

In response to the U.S. income distribution trend toward ________, Levi-Strauss introduced premium Levi's Capital E line to upscale retailers and the economy Levi Strauss Signature line to mass-market retailers.
A) very low incomes
B) mostly low incomes
C) mostly high incomes
D) mostly medium incomes
E) low and high incomes

Page: 78

back 30

E

front 31

In the U.S., consumer expenditures on homes and big ticket items tend to slacken during recessions because ________.
A) the consumers generally have a low debt-to-income ratio
B) of steady supply of loanable funds in the economy during recession
C) the consumers have a high debt-to-income ratio
D) consumer borrowing increases during recession
E) of stringent credit policies adopted by the Fed before the onset of recession

Page: 78

back 31

C

front 32

Which of the following elements of sociocultural environment can be associated with the growing demand for "social surrogates" like social networking sites, television, etc?
A) views of ourselves
B) views of organizations
C) views of others
D) views of nature
E) views of the universe

Page: 78

back 32

C

front 33

Today, corporations need to make sure that they are good corporate citizens and that their consumer messages are honest in order to positively align themselves with consumers' ________.
A) views of others
B) views of organizations
C) views of themselves
D) views of the universe
E) views of society

Page: 79

back 33

B

front 34

People vary in their views of society and their consumption patterns often reflect their social attitudes. ________ usually live more frugally, drive smaller cars, and wear simpler clothing.
A) Makers
B) Escapers
C) Seekers
D) Changers
E) Developers

Page: 79

back 34

D

front 35

People vary in their views of society and their consumption patterns often reflect their social attitudes. ________ usually eat, dress, and live well.
A) Makers
B) Escapers
C) Seekers
D) Changers
E) Developers

Page: 79

back 35

A

front 36

People vary in their views of society and their consumption patterns often reflect their social attitudes. ________ are a major market for movies, music, surfing, and camping.
A) Makers
B) Preservers
C) Escapers
D) Changers
E) Developers

Page: 79

back 36

C

front 37

________ beliefs and values are passed from parents to children and reinforced by social institutions—schools, churches, businesses, and governments; they are very difficult to change.
A) Transient
B) Secondary
C) Protected
D) Core
E) Variable

Page: 79

back 37

D

front 38

Which of the following would be the best illustration of a secondary belief or value?
A) belief in work
B) belief in giving to charity
C) belief in getting married
D) belief in getting married early
E) belief in being honest

Page: 79

back 38

D

front 39

Each society contains ________, groups with shared values emerging from their special life experiences or circumstances.
A) stakeholders
B) cliques
C) consumer bundles
D) subcultures
E) behavioral niches

Page: 80

back 39

D

front 40

Which of the following is the largest contributor to global warming, contributing almost a quarter of the carbon dioxide in the environment?
A) transportation
B) industrial production facilities
C) electrical power plants
D) aerosol cans
E) rural cooking fires

Page: 80

back 40

C

front 41

Which of the following is the second largest contributor to global warming, accounting for roughly a fifth of carbon emissions?
A) transportation
B) primary metal production facilities
C) electrical power plants
D) aerosol cans
E) rural cooking fires

Page: 80

back 41

A

front 42

Firms whose products require ________ resources—oil, coal, platinum, zinc, silver—face substantial cost increases as depletion approaches.
A) infinite
B) near finite
C) finite renewable
D) finite nonrenewable
E) perishable

Page: 81

back 42

D

front 43

Prestige LLC, a small company that manufactures specialty cereals and energy bars, wants to launch a "green marketing" program in response to heightened consumer awareness about environmental issues. What should the company do to maximize the program's chances of being successful?
A) demonstrate that the products will benefit both customers and the society in the long-term
B) emphasize benefits to the consumer rather than environmental benefits
C) focus on the efforts and costs incurred by the company to bring these "green" products to consumers
D) engage in "greenwashing" to highlight the environmental benefits of the product
E) explain the rules and regulations laid out by governmental agencies to protect the environment

Page: 82

back 43

A

front 44

When a company is said to have engaged in "greenwashing," it means that ________.
A) the company has significantly changed its business processes to incorporate a greener, more environmentally friendly philosophy
B) the company has moved its production facilities to countries where environmental laws and regulations are less rigorous
C) the company has changed its "green" image in order to appeal to a different, usually older, demographic
D) the company's products are not nearly as green and environmentally beneficial as its marketing might suggest
E) the company has undertaken a campaign to lobby for tougher environmental regulations for the industry

Page: 82

back 44

D

front 45

Which of the following consumer environmental segments cares a great deal about the environment, but doesn't seem to have the knowledge or resources to take action?
A) not me greens
B) business first greens
C) mean greens
D) go-with-the-flow greens
E) dream greens

Page: 82

back 45

E

front 46

The consumer environmental segment termed ________ holds the view that the environment is not a huge concern and that business and industry is doing its part to help. This may explain why they don't feel the need to take action themselves—even as they cite lots of barriers to doing so. They are also the largest consumer environmental segment.
A) not me greens
B) business first greens
C) mean greens
D) go-with-the-flow greens
E) dream greens

Page: 82

back 46

B

front 47

The consumer environmental segment termed ________ claims to be knowledgeable about environmental issues, but does not express pro-green attitudes or behaviors. Indeed, it is practically hostile toward pro-environmental ideas. This segment has chosen to reject prevailing notions about environmental protection and may even be viewed as a potential threat to green initiatives.
A) not me greens
B) business first greens
C) mean greens
D) go-with-the-flow greens
E) dream greens

Page: 82

back 47

C

front 48

Which of the following is true about the technology trends that marketers should monitor?
A) A growing portion of U.S. R&D expenditures are going toward the research side as opposed to the development side.
B) Today, the time between idea and implementation is expanding.
C) More single companies rather than consortiums are directing research efforts toward major breakthroughs.
D) The pace of change is accelerating today.
E) The government has decreased regulation of technological change.

Page: 83-84

back 48

D

front 49

Mandatory recycling laws have boosted the recycling industry and launched dozens of new companies making new products from recycled materials. Which of the following most closely resembles the situation discussed above?
A) Government makes reforestation mandatory for lumbering firms leading to a rise in timber production.
B) Government restricts industries from purchasing farmland thereby increasing agricultural produce.
C) Government subsidizes export of beef to promote production of beef cattle.
D) Government pollution control norms increase the production of pollution control equipment.
E) Government restricts unfair trade practices to promote international trade.

Page: 84

back 49

D

front 50

An unintended effect of business legislation is ________.
A) restricting fair competition in the market
B) encouraging unbridled business behavior
C) reducing the social cost of producing a particular commodity
D) exposing consumers to unfair trade practices
E) slowing economic growth

Page: 84

back 50

E

front 51

An important force affecting business is the ________ movement, a movement of citizens and government organized to strengthen the rights and powers of buyers in relation to sellers.
A) human rights
B) consumerist
C) environmental
D) self-determination
E) materialistic

Page: 84

back 51

B

front 52

Companies can prepare as many as ________ different types of demand estimates.
A) 6
B) 30
C) 60
D) 90
E) 150

Page: 85

back 52

D

front 53

The demand estimates of an organization comprise of five space levels. They are world, country, region, territory, and ________.
A) zone
B) organization
C) customer
D) product
E) input

Page: 85

back 53

C

front 54

The ________ market is the set of consumers with an adequate interest, income, and access to a particular offer.
A) potential
B) available
C) target
D) penetrated
E) reserve

Page: 85

back 54

B

front 55

The ________ market is the part of the qualified available market the company decides to pursue.
A) potential
B) available
C) target
D) penetrated
E) reserve

Page: 85

back 55

C

front 56

The ________ market is the set of consumers who are buying the company's product.
A) potential
B) available
C) target
D) penetrated
E) reserve

Page: 85

back 56

D

front 57

When the government of any country restricts the sale of a particular commodity to certain groups—for example, restricting sales of alcohol to individuals above the age of 21—the eligible consumers who have income, interest, access and qualification constitute the ________.
A) accessible market
B) target market
C) potential market
D) qualified potential market
E) qualified available market

Page: 85

back 57

E

front 58

Jeanine would like to own a Mercedes but is unable to afford one at this time. Jeanine is part of the ________ for this product.
A) potential market
B) available market
C) target market
D) projected market
E) penetrated market

Page: 85

back 58

A

front 59

________ for a product is the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program.
A) Company demand
B) Area market potential
C) Market demand
D) Company sales potential
E) Total market potential

Page: 86

back 59

C

front 60

With an increase in marketing expenditure, market demand ________.
A) continues to increase at an increasing rate
B) initially increases and then declines
C) increases first at an increasing rate, then at a decreasing rate
D) decreases first and then spikes
E) continues to increase at a decreasing rate.

Page: 86

back 60

C

front 61

The base sales of an organization that takes place even without any demand-stimulating expenditures is called ________.
A) primary demand
B) market potential
C) market minimum
D) optimum demand
E) market demand

Page: 86

back 61

C

front 62

The distance between the market minimum and the market potential shows the overall ________.
A) marketing sensitivity of demand
B) market share of the firm
C) market forecast of the firm
D) product-penetration percentage
E) sales quota

Page: 86

back 62

A

front 63

A low market-penetration index indicates ________.
A) it will be expensive for the firms to attract the few remaining prospects
B) substantial growth potential for all firms
C) the rival firms try to capture greater market share by lowering their product price
D) the profit margins of the firms decline
E) the firms cannot raise demand substantially by raising its market expenditure

Page: 86

back 63

B

front 64

Only one level of industry marketing expenditure will actually occur. The market demand corresponding to this level is called the ________.
A) market minimum
B) market share
C) market forecast
D) market potential
E) company demand

Page: 87

back 64

C

front 65

A company can expect to expand its market share to a large extent when ________.
A) it has a high market-penetration index
B) its share-penetration index is low
C) its share-penetration index is high
D) its product-penetration percentage is high
E) it has a low market potential

Page: 87

back 65

B

front 66

During recession, the market demand curve which is a function of marketing expenditure ________.
A) shifts upward
B) becomes vertical
C) remains unaffected
D) shifts downward
E) slopes downward

Page: 87

back 66

D

front 67

The sales goal set for a product line, company division, or sales representative of an organization is called ________.
A) sales budget
B) company sales forecast
C) sales quota
D) company sales potential
E) market potential

Page: 87

back 67

C

front 68

A ________ is a conservative estimate of the expected volume of sales, primarily for making
current purchasing, production, and cash flow decisions.
A) sales budget
B) company sales forecast
C) sales quota
D) company sales potential
E) market potential

Page: 87

back 68

A

front 69

________ is the limit approached by market demand as industry marketing expenditures approach infinity for a given marketing environment.
A) Sales budget
B) Company sales forecast
C) Sales quota
D) Company sales potential
E) Market potential

Page: 87

back 69

E

front 70

________ is the company's estimated share of market demand at alternative levels of company marketing effort in a given time period.
A) Sales budget
B) Market demand
C) Company demand
D) Company sales potential
E) Market potential

Page: 87

back 70

C

front 71

________ is the sales limit approached by company demand as company marketing effort increases relative to that of competitors.
A) Sales budget
B) Market demand
C) Company demand
D) Company sales potential
E) Market potential

Page: 87

back 71

D

front 72

A company's sales potential would be equal to market potential if ________.
A) the marketing expenditure of the company is reduced to zero
B) industry marketing expenditures approach infinity for a given marketing environment
C) the market is non-expandable
D) market minimum is equal to market potential
E) the company gets 100 percent share of the market

Page: 87

back 72

E

front 73

________ is the maximum sales available to all firms in an industry during a given period, under a given level of industry marketing effort and environmental conditions.
A) Company demand
B) Market demand
C) Company sales potential
D) Sales quota
E) Total market potential

Page: 88

back 73

E

front 74

Suppose an individual buyer purchases three pairs of shoes each year at $50 each pair and that there are 50 million such consumers in the economy. Compute the total market potential for shoes.
A) $6,500 million
B) $5,000 million
C) $75 billion
D) $7,500 million
E) $10,000 million

Page: 88

back 74

D

front 75

The ________ method of determining area market potential calls for identifying all the potential buyers in each market and estimating their potential purchases.
A) group-discussion
B) market-test
C) market-buildup
D) brand development index
E) multiple-factor index

Page: 88

back 75

C

front 76

An efficient method of estimating area market potentials makes use of the ________, developed by the U.S. Bureau of the Census in conjunction with the Canadian and Mexican governments. It classifies all manufacturing into 20 major industry sectors and further breaks each sector into a six-digit, hierarchical structure.
A) Thomson Reuters Business Classification
B) Global Industrial Classification Standard
C) North American Product Classification System
D) Industry Classification Benchmark
E) North American Industry Classification System

Page: 88

back 76

E

front 77

Which of the following organizations is likely to use the multiple-factor index method to estimate the market potential?
A) a firm that manufactures auto parts
B) a firm that provides facility management services to large offices
C) a company that provides Web site development services for small businesses
D) a company that manufactures diagnostic machines for hospitals
E) a firm that manufactures fashionable clothes for teenagers

Page: 88

back 77

E

front 78

Which of the following is true of the various elements of the multi-factor index method of estimating area market potentials?
A) Zip+4 code centers generally have stable boundaries and a population of about 4000.
B) The weights in the buying-power index are somewhat arbitrary.
C) Normally, the lower the BDI, the less room there is to grow the brand.
D) Census tracts are a little larger than neighborhoods.
E) This method is primarily used by business marketers.

Page: 89

back 78

B

front 79

Suppose Concrete Express, a cement manufacturing firm, finds that its sales have increased by 3 percent this year, while industry sales have increased by 5 percent. This implies that ________.
A) Concrete Express has acquired additional market share in relation to the cement industry
B) Concrete Express is losing its relative standing in the cement industry
C) other players in the industry are losing market share
D) the absolute market share of Concrete Express has declined
E) Concrete Express's position in relation to the industry has remain unchanged

Page: 90

back 79

B

front 80

For which of the following categories of products will demand forecasting be easiest?
A) commodities which are in the initial stage of their product life cycles
B) products which have many close substitutes in the market
C) goods which are produced in an oligopoly market
D) products whose sales fluctuate widely
E) products whose consumers are highly sensitive to change in price

Page: 90

back 80

C

front 81

Novamalt Inc., a manufacturer of health drinks, plans to introduce its new range of woman health drinks into the market. It involves a specialized marketing research firm to forecast the sales of this product. The research firm analyzes past buying behavior of customers and uses time-series analysis for making the sales forecasts. Which of the following information bases is being used by the research firm in this scenario?
A) what people say
B) what people do
C) what people have done
D) what people will do
E) what people speculate

Page: 90

back 81

C

front 82

Timeseries analysis method of forecasting sales breaks past time series into four components- trend, cycle, seasonal, and ________.
A) regular
B) annual
C) erratic
D) recurring
E) periodic

Page: 91

back 82

C

front 83

________ projects the next period's sales by combining an average of past sales and the most recent sales, giving more weight to the latter.
A) Timeseries analysis
B) Statistical demand analysis
C) Econometric analysis
D) Cost effectiveness analysis
E) Exponential smoothing

Page: 91

back 83

E

front 84

________ measures the impact of a set of causal factors (such as income, marketing expenditures, and price) on the sales level.
A) Timeseries analysis
B) Statistical demand analysis
C) Econometric analysis
D) Cost effectiveness analysis
E) Exponential smoothing

Page: 91

back 84

B

front 85

The sales forecasting method of ________ builds sets of equations that describe a system and statistically derives the different parameters that make up the equations statistically.
A) timeseries analysis
B) statistical demand analysis
C) econometric analysis
D) cost effectiveness analysis
E) exponential smoothing

Page: 91

back 85

C

front 86

Marketers have little information about how consumption patterns vary across and within countries.

Page: 68

back 86

false

front 87

Companies with superior information enjoy a competitive advantage.

Page: 69

back 87

true

front 88

Many firms use the Internet and extranets to improve the speed, accuracy, and efficiency of the order-to-payment cycle.

Page: 70

back 88

true

front 89

Few consumers actually delete cookies frequently. When customers do not delete cookies, they expect customized marketing appeals and deals.

Page: 70

back 89

true

front 90

Mailing of a new offer to a handful of selected customers instead of all customers reduces the response rate to the offer.

Page: 71

back 90

false

front 91

Competitive intelligence gathering is inherently illegal and unethical.

Page: 72

back 91

false

front 92

If a company were pursuing a policy of networking externally to gather marketing intelligence, it might collect competitors' ads or look up news stories about competitors.

Page: 72

back 92

true

front 93

One of the ways to find relevant online information on competitors' strengths and weaknesses might be to frequent distributor or sales agent feedback sites.

Page: 73

back 93

true

front 94

The competitive intelligence function works best when it is closely coordinated with the decision-making process.

Page: 73

back 94

true

front 95

A fad is more predictable and durable than a trend.

Page: 74

back 95

false

front 96

A new market opportunity generally guarantees success, if the new product is technically feasible.

Page: 74

back 96

false

front 97

Demographic developments are often unpredictable.

Page: 75

back 97

false

front 98

Population growth is highest in countries and communities that can least afford it.

Page: 75

back 98

true

front 99

There is a global trend toward an aging population.

Page: 75

back 99

true

front 100

The basis of cohort segmentation is that the experiences of key defining moments during the time when an individual becomes an adult can influence his or her values, preferences, and buying behaviors for the rest of his or her life.

Page: 76

back 100

true

front 101

Marketing strategies of firms should not consider the ethnic and racial diversity existing in their markets.

Page: 77

back 101

false

front 102

Consumers belonging to the same ethnic group have identical tastes and preferences.

Page: 77

back 102

false

front 103

Of all illiterate adults in the world, two-thirds are women.

Page: 77

back 103

true

front 104

Households comprising of single, separated, widowed, and divorced individuals generally demand larger apartments, and expensive appliances, furniture, and furnishings.

Page: 77

back 104

false

front 105

The available purchasing power in an economy depends on current income, prices, savings, debt, and credit availability.

Page: 77

back 105

true

front 106

Industrial economies provide limited marketing opportunities for luxurious goods.

Page: 78

back 106

false

front 107

Markets with a segment of very wealthy consumers, but high income disparity, present few opportunities to marketers.

Page: 78

back 107

false

front 108

Business has responded to increased awareness of nature's fragility and finiteness by producing wider varieties of camping, hiking, boating, and fishing gear such as boots, tents, backpacks, and accessories.

Page: 79

back 108

true

front 109

Secondary beliefs and values are passed on from parents to children and reinforced by major social institutions, making them very difficult to change by marketers.

Page: 79

back 109

false

front 110

Environmental regulations enforced by the government adversely affect automobile and steel manufacturing companies.

Page: 80

back 110

true

front 111

Corporate environmentalism recognizes the need to integrate environmental issues into the firm's strategic plans.

Page: 81

back 111

true

front 112

Firms that can develop substitute materials for finite nonrenewable resources have an excellent opportunity.

Page: 81

back 112

true

front 113

The time between introduction of products and peak production is shrinking.

Page: 83

back 113

true

front 114

A growing portion of U.S. R&D expenditures goes to the development as opposed to the research side.

Page: 84

back 114

true

front 115

Regulation of technological changes has been relaxed by the U.S. government over recent years.

Page: 84

back 115

false

front 116

Environmental laws imposed by the government may at times create new business opportunities.

Page: 84

back 116

true

front 117

Demand estimates prepared by companies are based on four different time periods.

Page: 85

back 117

false

front 118

The penetrated market is the set of consumers who have an interest in a market offer but do not have the accessibility.

Page: 85

back 118

false

front 119

Market demand for a product is the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program.

Page: 86

back 119

true

front 120

An expansible market is unlikely to be affected by the level of industry marketing expenditures.

Page: 86

back 120

false

front 121

The market forecast shows expected market demand, not maximum market demand.

Page: 87

back 121

true

front 122

Companies assume that the lower the product-penetration percentage, the lower will be the market potential.

Page: 87

back 122

false

front 123

In order to estimate future demand, companies commonly prepare a company sales forecast first, followed by an industry forecast, and finally a macroeconomic forecast.

Page: 90

back 123

false

front 124

Forecasting is the art of anticipating what buyers are likely to do under a given set of conditions.

Page: 91

back 124

true

front 125

Sales reps might have better insight into developing trends than any other group, and forecasting might give them greater confidence in their sales quotas and more incentive to achieve them.

Page: 91

back 125

true