TEST BANK for Marketing: Real People, Real Choices 11th Edition by Michael R. Solomon, Greg W. Marsh by digitaldownload87

Marketing: Real People, Real Choices, 11e (Solomon) Chapter 1 Welcome to the World of Marketing: Create and Deliver Value 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) Which of the following is NOT one of the four Ps of marketing? A) price B) profit C) product D) promotion E) place Answer: B 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 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 product element of the marketing mix? A) a quality discount B) a store coupon C) a newspaper advertisement D) the packaging 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 © 2022 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) The design and packaging of a good is included in 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 © 2022 Pearson Education, Inc.

12) Which element of the marketing mix is most closely associated with a company's channel of distribution? 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: 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) Items such as paper towels or sugar that are purchased for use by a family are considered ________. A) consumer services B) consumer goods C) value propositions D) utilities E) industrial goods Answer: B 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 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) Not-for-profit 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) When a gap exists between a consumer's actual state and some ideal or desired state, the consumer has a ________. A) benefit B) demand C) need D) value E) utility Answer: C Difficulty: Easy 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) A customer's desire for a product coupled with the buying power or resources to obtain that product is called ________. A) benefit B) demand C) need D) utility E) service Answer: B Difficulty: Easy LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed and the value of marketing 6 Copyright © 2022 Pearson Education, Inc.

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 e-commerce 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) Consumers rent all types of goods that they aren't using, from barbecue grills to Halloween costumes, to other consumers who need them for a limited time on sites like Craigslist. This reflects ________. A) the marketing mix B) value chains C) the attention economy D) collaborative consumption E) user-generated content Answer: D 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 7 Copyright © 2022 Pearson Education, Inc.

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) ________ utility is the benefit marketing provides by allowing the consumer to own, use, and enjoy a product. A) Form B) Place C) Time D) Possession E) Price Answer: D Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed and the value of marketing

29) Buyers, sellers, investors, and community residents are all considered ________ in a company. A) stakeholders B) shareholders C) consumers D) channel of distribution members E) collaborative consumers 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-to-business 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 not-for-profit 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) not-for-profit 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) not-for-profit 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) The principles of marketing apply only to goods and services. Answer: FALSE Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed and the value of marketing 14 Copyright © 2022 Pearson Education, Inc.

48) 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 49) 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 50) 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 51) 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 52) 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 53) 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

54) 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 55) 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 56) The price element of the marketing mix is the assignment of value. Answer: TRUE Difficulty: Moderate LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed and the value of marketing 57) 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 58) Place relates to a channel of distribution in the marketing mix. Answer: TRUE Difficulty: Easy LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed and the value of marketing 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 60) Ria, a college sophomore, has a YouTube channel and posts short videos that typically have over 50,000 viewers each week. Ria could be described as a microcelebrity. 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 © 2022 Pearson Education, Inc.

61) In terms of marketing, a celebrity is considered a product. 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 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 an ice cream vendor create the four types of utility? Answer: The ice cream vendor would create form utility by combining ingredients to make a milkshake or a sundae. Place utility would mean the ice cream is available where the customer wants it. Time utility would mean the ice cream is available when the customer wants it. Possession utility refers to the enjoyment consumers have eating the ice cream. Difficulty: Difficult 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 she feels 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 P's 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: Difficult LO: 1.1: Explain what marketing is, the marketing mix, what can be marketed and the value of marketing AACSB: Application of knowledge 67) Provide a brief explanation of what marketing is. Answer: Marketing 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. 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) Can a consumer of a product be a stakeholder in the company that markets the product? Briefly explain your answer. Answer: Yes. A consumer is one type of stakeholder. A stakeholder can be a buyer, seller, or investor in a company; a community resident; or a citizen of the nation where the company's goods or services are made or sold. A consumer is the ultimate user of a good or service. Therefore, a consumer could be a stakeholder who is also the ultimate consumer using the product. 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 70) Briefly describe the collaborative consumption trend. Answer: In a trend called collaborative consumption, consumers rent out their belongings—tools, cars, homes, etc.—when they are not using them. This appeals to many consumers, particularly younger consumers, who would prefer to rent products rather than purchase and own them. 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-to-business 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: Difficult LO: 1.2: Explain the evolution of the marketing concept 74) Companies that have a ________ orientation tend to be more successful at making one-time sales than at building repeat businesses. A) consumer B) marketing C) selling D) societal E) relationship Answer: C Difficulty: Moderate LO: 1.2: Explain the evolution of the marketing concept 75) A ________ orientation emphasizes the most efficient ways to manufacture and distribute products. A) customer B) promotion C) selling D) production E) quality Answer: D Difficulty: Easy LO: 1.2: Explain the evolution of the marketing concept 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 the marketing concept

77) Companies placing a priority on sustainability are likely to have a ________ orientation. A) triple-bottom-line B) production C) selling D) customer E) TQM Answer: A Difficulty: Difficult LO: 1.2: Explain the evolution of the marketing concept AACSB: Ethical understanding and reasoning 78) What are the three components of the triple-bottom-line orientation? A) the financial bottom line, the social bottom line, and the environmental bottom line B) the financial bottom line, the social bottom line, and the political bottom line C) the financial bottom line, the cultural bottom line, and the business bottom line D) the value bottom line, the service bottom line, and the business bottom line E) the product bottom line, the service bottom line, and the relationship bottom line Answer: A Difficulty: Moderate LO: 1.2: Explain the evolution of the marketing concept 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 the marketing concept 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 the marketing concept AACSB: Ethical understanding and reasoning 21 Copyright © 2022 Pearson Education, Inc.

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 the marketing concept 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 the marketing concept 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: Difficult LO: 1.2: Explain the evolution of the marketing concept AACSB: Reflective thinking 84) Interacting with consumers via portable technology such as smart phones, tablets, and wearable screens is referred to as ________. A) mobile marketing B) social marketing C) societal marketing D) user-generated marketing E) branded marketing Answer: A Difficulty: Easy LO: 1.2: Explain the evolution of the marketing concept AACSB: Integration of real-world business experiences 22 Copyright © 2022 Pearson Education, Inc.

85) Which orientation works best in a seller's market when demand is greater than supply? A) customer B) marketing C) selling D) production E) new era Answer: D Difficulty: Moderate LO: 1.2: Explain the evolution of the marketing concept 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 the marketing concept 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 the marketing concept AACSB: Analytical thinking 88) 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 the marketing concept 89) Green marketing and sustainability are interchangeable terms describing the same concept. Answer: FALSE Difficulty: Moderate LO: 1.2: Explain the evolution of the marketing concept AACSB: Ethical understanding and reasoning 23 Copyright © 2022 Pearson Education, Inc.

90) The customer orientation prioritizes the satisfaction of customers' needs and wants. Answer: TRUE Difficulty: Moderate LO: 1.2: Explain the evolution of the marketing concept AACSB: Ethical understanding and reasoning 91) The direct financial impact of a firm's expenditure of a resource is referred to as ROI. Answer: TRUE Difficulty: Easy LO: 1.2: Explain the evolution of the marketing concept 92) Explain why and how a company would adopt a customer orientation. Answer: A company might adopt a customer orientation to better identify and satisfy the needs and wants of customers. In the competitive marketplace of today, a company has to go beyond the selling and production orientations and consider the customer's desires. Following a customer orientation, marketers would conduct research to understand the needs of different customers and tailor products to the needs of these various groups. Difficulty: Difficult LO: 1.2: Explain the evolution of the marketing concept AACSB: Application of knowledge 93) 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 the marketing concept AACSB: Ethical understanding and reasoning 94) 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: Difficult LO: 1.2: Explain the evolution of the marketing concept AACSB: Application of knowledge

95) 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 the marketing concept AACSB: Written and oral communication 96) When a consumer buys a pair of shoes, she considers 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 97) The ratio of benefits to costs is one way to think of ________. A) sustainability B) profits C) value D) competitive advantage E) distinctive competency Answer: C Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society 98) A national lumber yard has estimated the amount a customer will spend year after year and then subtracted what it will cost to gain the customer and to retain the relationship for the period of years they expect the customer to continue to buy from them. The lumber yard is calculating ________. A) customer lifetime value (CLV) B) MROI C) the differential advantage D) ROI E) brandfest Answer: A Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society

99) A firm's capability that is superior to that of its competition is referred to as a(n) ________. A) distinctive competency B) added value C) value proposition D) value chain E) social benefit Answer: A Difficulty: Easy LO: 1.3: Understand value from the perspectives of customers, producers, and society 100) The second step in developing a competitive advantage is to turn a distinctive competency into a ________ that is important to customers. A) target market B) service C) marketing mix D) market position E) differential benefit Answer: E Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society 101) A(n) ________ provides reasons for customers to pay a premium for a firm's products and exhibit a strong brand preference. A) exchange B) differential benefit C) industrial good D) value chain E) customer lifetime value Answer: B Difficulty: Moderate 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) In addition to marketing activities, the ________ includes business functions such as human resource management and technology development. A) value chain B) marketing mix C) utility function D) customer relationship management process E) market position Answer: A 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 phenomenon of ________ includes consumers creating their own ads and buying and selling products on eBay. A) the production orientation B) the triple-bottom-line orientation C) consumer-generated value D) socially responsible marketing E) the marketing concept Answer: C Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Integration of real-world business experiences 108) Social networking is an integral part of which of the following? A) the triple-bottom-line orientation B) lifetime value of a customer C) the value chain D) Web 2.0 E) Web 1.0 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) Web 2.0 ________. A) categorizes entries according to a strict taxonomy B) incorporates social networking and user interactivity via two-way communication between marketers and consumers C) is based on the open source model D) is based on the wisdom of crowds model E) improves as the number of users decreases 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) ________ is a classification system that relies on users rather than preestablished systems to sort contents. A) A social networking platform B) The Cloud C) The value chain D) Folksonomy E) The virtual marketplace Answer: D Difficulty: Moderate 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 113) The deliberate defacement of products is referred to as ________. A) bait-and-switch B) anticonsumption C) crowdsourcing D) shrinkage E) lifetime cost of a customer Answer: B Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Ethical understanding and reasoning 114) Product tampering and spray-painting graffiti on buildings are both examples of ________. A) folksonomy B) exploitative consumption C) addictive consumption D) shrinkage E) anticonsumption Answer: E 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 benefits 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) a brandfest Answer: A Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Analytical thinking 118) To calculate lifetime value, a company would estimate the amount of money a person would spend with the company over a lifetime and then subtract what it will cost the company to maintain this relationship. 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) A haul video is an example of brandfest. Answer: FALSE Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society 121) 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 122) 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 123) A value proposition includes just 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 124) Why might a company try to determine the lifetime value of a customer? What must a company do to determine this information? Answer: A company must look at how much a customer is really worth and how much profit it expects to make from a particular customer, including each and every purchase he will make from the company now and in the future. To calculate lifetime value, the company estimates the amount the person will spend and then subtracts what it will cost to maintain this relationship. Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Application of knowledge

125) What is a haul video and how is it used in marketing? Answer: Haul videos are videos consumers post on YouTube that detail the latest stuff they bought. These have caused marketers to adjust their thinking about customers and to begin thinking of them as a community that is motivated to participate in both the production and the consumption of what companies sell. Customers are part of the brand communication process as they create their own videos, provide product reviews, and participate in blogs. Difficulty: Difficult LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Application of knowledge 126) Why might a company invest in brandfests, and how is this related to the concept of lifetime value of a customer? Answer: A brandfest is an event, such as the Jeep Jamboree, sponsored by a company to thank customers for their loyalty and to build lasting partnerships with customers. Activities such as brandfests are aimed at increasing the lifetime value of each customer, or the profit the company expects to gain from each customer. This is in line with the notion that retaining current customers is less expensive than attracting new customers. Difficulty: Moderate LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Analytical thinking 127) 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 128) 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: Difficult LO: 1.3: Understand value from the perspectives of customers, producers, and society AACSB: Application of knowledge

129) 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 130) 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 131) ________ is a decision process in which marketing managers determine the strategies that will help the firm meet its long-term objectives and then execute those strategies using the tools they have at their disposal. A) Total quality management B) Sustainability C) Return on investment D) Marketing E) Crowdsourcing Answer: D Difficulty: Moderate LO: 1.4: Explain the basics of market planning 132) Many experts believe ________ is the only way to stay in business for the long term. A) disruptive marketing B) crowdsourcing C) green marketing D) collaborative consumption E) a sales orientation Answer: A Difficulty: Easy LO: 1.4: Explain the basics of market planning

133) The first phase of market planning is to ________. A) identify a target market B) calculate production costs C) develop a value chain D) determine a market position E) analyze the marketing environment Answer: E Difficulty: Moderate LO: 1.4: Explain the basics of market planning 134) ________ 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 135) A ________ consists of all possible customers in a market regardless of the differences in their specific needs and wants. A) popular culture B) value chain C) marketing mix D) marketing concept E) mass market Answer: E Difficulty: Easy LO: 1.4: Explain the basics of market planning 136) Which of these statements about mass marketing is true? A) A mass marketing strategy is always preferable to a target marketing strategy. B) The success of any organization's marketing efforts depends on its ability to engage in mass marketing. C) Mass marketing can be cost effective. D) Mass marketing allows marketers to develop products to satisfy the specific needs and wants of specific groups of customers. E) Automakers typically use a mass marketing strategy. Answer: C Difficulty: Moderate LO: 1.4: Explain the basics of market planning

137) A ________ is 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. A) market segment B) popular culture C) mass market D) market mix E) market position Answer: A Difficulty: Moderate LO: 1.4: Explain the basics of market planning 138) 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 139) Marketers develop positioning strategies to ________. A) limit the number of elements of the marketing mix used for one product B) identify the location where the organization will sell its products C) determine the specific means the organization uses to distribute its products D) create a desired perception of the product in consumers' minds in comparison to competitors' brands E) select metrics to determine the effectiveness of marketing planning Answer: D Difficulty: Moderate LO: 1.4: Explain the basics of market planning 140) 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

141) ________ is a process whereby marketers step "outside the box" to displace something well established. A) Disruptive marketing B) Crowdsourcing C) Mass marketing D) Social networking E) Societal marketing Answer: A Difficulty: Moderate LO: 1.4: Explain the basics of market planning 142) A catalog retailer has identified African-American professionals between the ages of thirty-five 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 143) 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

144) 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: Difficult LO: 1.4: Explain the basics of market planning AACSB: Analytical thinking 145) Disruptive marketing means maintaining the status quo in how customers think of your company and the industry. Answer: FALSE Difficulty: Moderate LO: 1.4: Explain the basics of market planning 146) A mass market is all possible customers in a market, regardless of their specific needs. Answer: TRUE Difficulty: Moderate LO: 1.4: Explain the basics of market planning AACSB: Application of knowledge 147) The terms "market segment" and "target market" represent the same concept. Answer: FALSE Difficulty: Moderate LO: 1.4: Explain the basics of market planning 148) 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 149) 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 37 Copyright © 2022 Pearson Education, Inc.

150) What is a market segment? Explain how an automaker might appeal to different market segments. Answer: A market segment is a distinct 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. An automaker offers different car models—sedans, sports cars, SUVs, station wagons, minivans, etc.—to appeal to different segments of the car-buying market. Difficulty: Moderate LO: 1.4: Explain the basics of market planning AACSB: Application of knowledge 151) What is disruptive marketing? Provide an example. Answer: Disruptive marketing is a process whereby marketers, by understanding customer needs and identifying what is missing, step "outside the box" to displace something well established, such as filling a need with a totally new product. Examples will vary, but should include the elements of the definition. Difficulty: Moderate LO: 1.4: Explain the basics of market planning AACSB: Application of knowledge

Marketing: Real People, Real Choices, 11e (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) ________ 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 3) Which of the following is the first step a firm should take when deciding whether or not to go global? A) Develop marketing mix strategies for foreign markets. B) Analyze whether it is in the firm's best interest to focus on the domestic market or to expand to international markets. C) Identify the most attractive global markets for the firm's products. D) Select a market-entry strategy that fits the firm's desired level of commitment. E) Identify potential partners in international markets. Answer: B Difficulty: Moderate LO: 2.1: Understand the big picture of international marketing and the decisions firms must make when they consider globalization

4) 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 5) 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 6) 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 7) 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

8) The result of the addition of carbon dioxide into our atmosphere while at the same time cutting down the rain forests (reducing oxygen) creates the greenhouse effect. Answer: TRUE Difficulty: Moderate LO: 2.1: Understand the big picture of international marketing and the decisions firms must make when they consider globalization 9) 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 10) 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 11) 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 a glut of unsafe products—many of which came from China. 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

12) ________ is the international treaty that reduced import tax levels and trade restrictions. A) GATT B) WTO C) Brexit D) The World Bank E) IMFs Answer: A 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 13) 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 14) When a government adopts a policy of ________, it enforces rules on foreign firms in order to give home companies an advantage. A) gray marketing B) countertrade C) monopolistic competition D) economic sanctions E) protectionism Answer: E 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

15) A(n) ________ is an extreme quota that completely prohibits commerce and trade with a specific country. A) tariff B) embargo C) economic community D) perfect monopoly E) forex rate 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 16) ________ 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 17) 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

18) Which of the following countries is NOT a member of MERCOSUR? A) Brazil B) Paraguay C) Bolivia D) Uruguay E) Venezuela 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 19) 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 20) Which of the following countries is a member of ASEAN? A) Singapore B) Venezuela C) Mexico D) France E) Canada 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

21) USMCA is a(n) ________. A) South American economic community B) common market for eastern and southern Africa C) economic community that includes Peru, Brazil, and China D) trade agreement that includes Canada, Mexico, and the United States E) eastern European economic community that competes with the EU 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 22) 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 23) 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

24) 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 25) 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 26) 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

27) The goal of the World Bank is to improve economies and support sustainable development in order to reduce poverty and improve 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 28) The WTO member nations account for approximately 98 percent of world trade. 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 29) Governments use tariffs to give domestic competitors an advantage in the marketplace by making foreign competitors' goods more expensive. 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 30) The International Monetary Fund controls fluctuations in exchange rates in order to 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 AACSB: Ethical understanding and reasoning 31) Stabilizing exchange rates can help prevent severe balance of payments problems. 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

32) The only member countries of the USMCA are the United States, Canada, and Mexico. 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 33) 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 34) 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: Difficult 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 35) What is protectionism and why might a government adopt it as a policy? Explain how three examples of protectionism function. 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: Difficult 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

36) 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 37) 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 38) 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: Difficult 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

39) 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 40) Which of the following is NOT a key element of the external environment? A) sustainable environment B) economic environment C) competitive environment D) technological environment E) sociocultural environment 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 41) 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 42) Which of the following measures is often a good indicator of a country's economic health because it is adjusted for the population size of each country? A) per capita GDP B) GDP C) purchasing power parity D) standard of living E) inflation rate 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

43) Which of the following is NOT considered part of the firm's sociocultural environment? A) human rights issues B) demographics C) social norms D) ethnocentrism E) values 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 44) The quality of a country's distribution, financial, and communication systems is referred to as the country's ________. 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 45) 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 46) 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

47) In most cases, which of the following is true about a least developed country (LDC)? A) It has an economy based on agriculture. B) It is landlocked. C) It has a viable middle class. D) It has high literacy levels. E) It has an advanced economic infrastructure. 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) 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 49) 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 50) Which of the following best 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 14 Copyright © 2022 Pearson Education, Inc.

51) What are the terms the UN adopted reflecting the "levels of economic development" in countries? 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 52) The United States, the United Kingdom, Canada, France, Italy, Germany, and Japan are all members of ________. A) the BRICS countries B) the G7 C) the EU D) NAFTA E) MERCOSUR 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 53) What term refers to the overall patterns of change in the economy that affect consumer and business purchasing power? 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

54) Which of the following occurs when prices and the cost of living rise while money loses its purchasing power? 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 55) 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 56) ________ 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 57) Through ________ competition, competitors offer different goods and services that attempt to satisfy the same consumers' needs and wants. A) perfect B) product C) brand D) monopolistic E) oligopolistic 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 16 Copyright © 2022 Pearson Education, Inc.

58) Planet Fitness and Gold's Gym engage in ________ competition when they both try to attract customers to buy their fitness center services. 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 59) The seller is "the only game in town" and feels little pressure to keep prices low or to produce quality goods or services in a(n) ________ structure. A) monopoly B) oligopoly C) monopolistic competition D) perfect competition E) natural competition 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 60) 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

61) 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 62) In a(n) ________ structure, there are many small sellers, each offering similar products, and each unable to have a significant impact on the quality, price, or supply of a product. 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 63) The use of drones or unmanned aerial vehicles to deliver packages to consumers' homes would represent a change in the ________. A) sociocultural environment B) economic environment C) legal environment D) technological environment E) microenvironment 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 AACSB: Integration of real-world business experiences

64) ________ is the legislation developed to eliminate monopolies and to guarantee free competition. A) The Sherman Antitrust Act B) The Federal Trade Commission Act C) The Robinson-Patman Act D) The USA Freedom Act E) The Lanham Trademark Act 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 AACSB: Ethical understanding and reasoning 65) Expropriation occurs when a government ________. A) seizes a foreign-owned asset, normally with some compensation (often not for the full value) B) reimburses a foreign company that has lost facilities due to natural causes C) refuses to allow its businesses to engage in exporting D) takes over a foreign operation and provides the seized operation with no reimbursement E) imports more than it exports 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 AACSB: Ethical understanding and reasoning 66) Nationalization occurs when a government ________. A) reimburses a foreign company for its assets after taking over the company B) reimburses a foreign company that has lost facilities due to natural causes C) refuses to allow its businesses to engage in exporting D) takes over a business enterprise, natural resource, or other asset and justifies this action as being in the best interest of the country (reimbursement not required) E) imports more than it exports 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 AACSB: Ethical understanding and reasoning

67) The ________ revised the FTC Act and made deceptive and misleading advertising illegal. A) Sherman Antitrust Act B) Consumer Credit Protection Act C) Robinson-Patman Act D) Wheeler-Lea Amendment E) Lanham Trademark Act 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 AACSB: Ethical understanding and reasoning 68) The ________ was established by the Federal Trade Commission in 2003 to allow consumers to limit the number of telemarketing calls they receive. A) National Do Not Call Registry B) Child Protection Act C) Federal Communications Commission D) Consumer Products Safety Commission Act E) USA Freedom Act 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 AACSB: Ethical understanding and reasoning 69) The ________, a U.S. regulatory agency, regulates telephone, radio, television, and the use of the Internet. A) Consumer Product Safety Commission B) Environmental Protection Agency C) Federal Communications Commission D) Federal Trade Commission E) Interstate Commerce Commission 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 AACSB: Ethical understanding and reasoning