Test Bank For
Marketing
4th Canadian Edition
Lamb, Hair, McDaniel, Faria, Wellington
,Chapter 1—An Overview of Marketing
MULTIPLE CHOICE
1. What is the definition of marketing?
a. planning sales campaigns
b. selling
c. advertising and promotion activities
d. a philosophy that stresses customer satisfaction
ANS: D PTS: 1 DIF: Definition REF: p. 4
OBJ: 1 BLM: Remember
2. A business is concerned with many day-to-day activities. Some of the most important are the
planning and conception of the product or service, its pricing policy, and the distribution strategy.
What are these activities part of?
a. human resources
b. production
c. marketing
d. accounting
ANS: C
This description contains three of the four main activities included in the marketing function.
Many students may mistakenly believe that marketing is concerned only with promotion.
3. Which of the following is a set of activities used to implement a management orientation that
stresses customer satisfaction?
a. a control system
b. customer management
c. planning strategy
d. marketing
ANS: D PTS: 1 DIF: Definition REF: p. 4
OBJ: 1 BLM: Remember
4. Marketing is an organizational function and a set of processes for creating, communicating, and
delivering which one of the following to customers?
a. sales
b. benefits
c. satisfaction
d. value
ANS: D PTS: 1 DIF: Definition REF: p. 4
OBJ: 1 BLM: Remember
1-1
,5. The idea that people give up something in order to receive something that they would rather have
is a key ingredient in marketing. What is this called?
a. exchange
b. synergy
c. reciprocity
d. promotion
ANS: A PTS: 1 DIF: Definition REF: p. 4
OBJ: 1 BLM: Remember
6. What must happen in order for exchange to occur?
a. Each party must have something of value to the other party.
b. A profit-oriented organization must be involved.
c. Organized marketing activities must also occur.
d. Money or other legal tender is required.
ANS: A
Exchange involves the trade of items of value, but does not necessarily involve formal
organizations, profit, or money/legal tender.
7. For an exchange to take place, what must happen?
a. At least one person must have something of value.
b. Each party must feel obligated to accept the offer.
c. Money must be present.
d. There must be at least two parties.
ANS: D PTS: 1 DIF: Comprehension
REF: p. 4 OBJ: 1 BLM: Remember
8. Why is the concept of exchange important to marketing?
a. Marketing activities help to create exchange.
b. Money is the only medium of exchange for business marketers.
c. Exchange provides money to marketers.
d. Marketing activities are a requirement for exchange to take place.
ANS: A
Marketing activities help the exchange to take place, but marketing can occur without an
exchange.
, 9. Kurt Meyer wants to sell a Model T Ford that he inherited from his grandfather. A preliminary
investigation has shown many people would be interested in this type of automobile. He has taken
out an advertisement in his local auto trade paper and provided customers with a toll-free number
to make an appointment to drive the car. He has also read in the auto trade papers that similar cars
to the one that he owns are selling for about $4,000. Before selling his Model T, what else should
Meyer find out?
a. whether the car can meet the demands of potential customers
b. how to promote the car to generate significant visibility for the ad
c. where the car should be located to secure optimum drive-up business
d. how to price the car so that customers will seek out his vehicle
ANS: A
For an exchange to take place, each party must have something the other values, the parties must
be able to communicate, and each party must believe that it is appropriate to deal with the other.
PTS: 1 DIF: Application REF: p. 4 OBJ: 1
BLM: Higher order
10. If the local chapter of the Canadian Diabetes Association (CDA) sponsors a free lifesaving course,
city residents will not have to pay to take the class. Why will an exchange take place?
a. The CDA does not have to communicate with class participants.
b. People who take the course have to give nothing of value in return.
c. Both the CDA and the people taking the course will trade something of value.
d. People can decide the course has no value.
ANS: C
If the course has no value, then an exchange cannot occur. Without communication, the exchange
of knowledge for time and energy cannot occur. In an exchange, each participant has something of
value to the other. For an exchange to occur, each party must believe it is desirable.
PTS: 1 DIF: Application REF: p. 4 OBJ: 1
BLM: Higher order
11. Four competing philosophies strongly influence the role of marketing and marketing activities
within an organization. Which if the following is a marketing management philosophy?
a. accounting orientation
b. sales orientation
c. profitability orientation
d. social networking orientation
ANS: B PTS: 1 DIF: Comprehension
REF: p. 5 OBJ: 2 BLM: Remember
1-3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller NEWTESTBANK. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $19.49. You're not tied to anything after your purchase.
