intro to marketing chapter 1
customer lifetime value
"Losing a customer once means losing the entire stream of possible purchases that the customer would make over an extended period of patronage." The above statement specifically indicates loss in terms of ________.
According to the five-step model of the marketing process, which of the following is the final step in creating value for customers?
building profitable relationships and creating customer delight
According to management guru Peter Drucker, "The aim of marketing is to ________
make selling unnecessary
According to the five-step model of the marketing process, a company should ________ before designing a customer-driven marketing strategy.
understand the marketplace and customer needs and wants
consumer-generated marketing
Elisandra, a marketing manager at a regional chain restaurant, has decided to organize a contest calling for customers to create commercials for the restaurant. Winning entries will be posted on the organization's home page. Elisandra's plan is an example of ________.
customer-perceived value
FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these benefits against the monetary cost of using FedEx along with any other costs of using the service, they are acting upon ________.
value
Following the change in consumer values and consumption patterns after the Great Recession, marketers have changed their marketing strategies to emphasize the ________ of their products.
false
For most marketers, customer relationship management (CRM) is exclusively a matter of customer data management
social marketing campaigns
Government agencies design ________ to encourage energy conservation and discourage smoking, excessive drinking, and drug use.
marketing by intrusion
Greater consumer control means that companies can no longer rely on ________.
demand
Greg Williams now has the buying power to purchase the desktop computer that he has wanted for the last six months. Greg's want now has become a(n) ________.
basic relationships
Hank is an assistant marketing director for a firm in a market with many low-margin customers. What type of relationship with these customers would be the most profitable for him?
production
Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This reflects the ________ concept.
false
Human needs are shaped by culture and individual personality
social responsibility
Iceco Inc., an ice-cream manufacturing company, encourages all stakeholders, including the top management and employees at all levels in their stores, to consider individual and community welfare in their day-to-day decisions. This action undertaken by Iceco reflects ________.
butterfly
In the context of customer relationship groups, a potentially profitable and short-term customer is referred to as a ________.
iRobot invites enthusiastic Roomba owners to develop and share their own uses for the company's robotic vacuum cleaner.
In which of the following situations has a company most actively embraced customer-managed relationships?
perceived value
It is most accurate to say that when customers purchase products they act on ________ as they judge values and costs.
selling concept
Jolene's firm markets preplanning services for a mortician. She finds that most of her target market avoids discussing future funeral needs. She convinces people to invest in the firm's services through her large-scale promotional efforts. Jolene's firm most likely practices the ________.
consumer-generated marketing
Kao Corp., a deodorant-manufacturer, invited teenage girls to make an ad that would encourage other girls to buy the product. This program is an example of ________.
share of customer
Keith, a clothing store owner, offers product suggestions to customers based on their current purchases. Which of the following is Keith targeting to increase?
false
Market offerings are limited to physical products
false
Market segmentation is the process of seeking fewer customers and reduced demand for profit maximization only
________ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through value creation and exchange
Marketing
market offering
A ________ is some combination of products, services, information, or experiences provided to consumers to satisfy a need or want
not-for-profit marketing
A church targeting different demographic groups to increase attendance is an example of ________.
barnacles
A financial services firm has several loyal customers who conduct business with them exclusively. However, the company has noticed that this customer group is the least profitable for the company, and in some cases, it increases their losses when engaging in business with this group. Which of the following customer groups is being referred to in this scenario?
inside-out
A firm that uses the selling concept takes a(n) ________ approach.
a club marketing program
A gym equipment manufacturer encourages customers to become members of the firm's Web site. Membership provides customers with exercise tips as well as discounts on gym equipment and workout apparel. This is an example of ________.
true
A market is the set of actual and potential buyers of a product or service
a frequency marketing program
A room upgrade offered by a hotel to a guest who often stays in the hotel is an example of ________.
market
A(n) ________ is the set of actual and potential buyers of a product
market segments
An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious individuals, and people identified as trendsetters who try out new products in the market before others. These three groups are examples of ________.
customer-driving
An organization that understands and anticipates customer needs even better than customers themselves do and creates products and services to meet current and future needs is said to practice ________ marketing
false
An organization's department follows a customer-centered sense-and-respond philosophy. The department is most likely practicing the product concept
Marketers want to increase the share they get of the customer's purchasing in their product categories.
Apart from retaining good customers, most marketers want to constantly increase their "share of customer." What does this mean in marketing terms?
purchasing more supplies abroad
As part of the rapid globalization of today's economy, companies are selling more domestically produced goods in international markets and ________.
capturing customer lifetime value
At Gina's retail stores, the posted policy reads, "Without our customers, we don't exist." Gina and her staff aim to delight each customer, and they are quick to offer discounts or extra services whenever a customer is anything less than satisfied. Gina and her staff strive to make every customer a repeat customer. It is most accurate to say that instead of focusing on each individual transaction, Gina and her staff put a priority on ________.
Which of the following is NOT an accurate description of modern marketing?
Marketing emphasizes selling and advertising exclusively
True
Marketing is managing profitable customer relationships.
true
Marketing mix refers to the set of marketing tools the firm uses to implement its marketing strategy.
product
Railroads were once operated based on the thinking that users wanted trains that would offer the most in quality, performance, and innovative features. The railroad managing companies overlooked the fact that there could be other modes of transportation. This reflects the ________ concept
product
Renovations of the guest rooms at the Seagull Terrace and plans to add an indoor pool area are examples of the ________ concept
customer satisfaction
Sally recently purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her expectations about Brand X lotion, Sally was measuring her level of ________.
market offering
Seagull Terrace offers its customers good accommodations, local delicacies, and amazing seaside views. The overall experience provided at the motel is a part of its ________.
target marketing
Selecting which segments of a population to serve is called ________
societal marketing concept
Some fast-food restaurants offer tasty and convenient food at affordable prices, but in doing so they contribute to a national obesity epidemic and environmental problems. These fast-food restaurants overlook the ________ philosophy
product
The ________ concept is aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer the most in quality, performance, and innovative features
marketing management
The art and science of choosing target markets and building profitable relationships with them is called ________
true
The difference between human needs and wants is that needs are not created by marketers.
capturing value from customers
The final step in the marketing process is ________.
outside-in perspective
The marketing concept that starts with a well-defined market, focuses on customer needs, and integrates all the marketing activities that affect customers takes a(n) ________.
customer-managed relationships
The marketing world is most likely embracing ________ because consumers wield greater power nowadays with a wealth of platforms for airing and sharing their brand views with other consumers.
share of customer
The portion of the customer's purchasing that a company gets in its product categories is known as ________.
customer expectations
The primary key to delivering customer satisfaction is to match product performance with ________.
true
The selling concept holds that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort
with goods that buyers normally do not think of buying
The selling concept is typically practiced ________.
marketing mix
The set of marketing tools a firm uses to implement its marketing strategy is called the ________.
true
The societal marketing concept calls on marketers to balance consumer wants and desires, company profits, and society's interests.
consumer short-run wants and consumer long-run welfare
The societal marketing concept seeks to establish a balance between ________.
supply chain management
Through ________, companies today are strengthening their connections with all partners, from providers of raw materials and components to those involved in the delivery of final goods and services.
________ are human needs that are shaped by culture and individual personality.
Wants
false
When backed by buying power, needs become wants.
demands
When backed by buying power, wants become ________
customer-driving
When customers don't know what they want or don't even know what's possible, the most effective marketing strategy is ________ marketing
failing to attract enough customers
When marketers set low expectations for a market offering, they run the risk of ________.
false
When sellers focus on existing needs and lose sight of underlying customer wants, they suffer from marketing myopia
"Why should I buy your brand rather than a competitor's?"
Which of the following customer questions is answered by a company's value proposition?
the marketing concept
Which of the following follows a customer-centered "sense-and-respond" philosophy rather than a product-centered "make-and-sell" philosophy?
Customers know what they want.
Which of the following is a characteristic of customer-driven marketing?
focus on making continuous product improvements
Which of the following is the aim of the product concept?
Not all customers will be satisfied.
Which of the following is the most likely result of a marketing strategy that attempts to serve all potential customers?
product concept
Which of the following marketing management concepts is most likely to lead to marketing myopia?
production concept
Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain?
the selling concept
Which of the following marketing orientations calls for aggressive promotional efforts and focuses on creating transactions rather than long-term customer relationships?
the marketing concept
Which of the following marketing orientations holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do?
customer relationship management
Which of the following marketing strategies should marketing managers focus on to manage detailed information about individual customers and carefully manage customer touchpoints to maximize customer loyalty?
value proposition
Which of the following refers to a set of benefits that a company promises to deliver to customers to satisfy their needs?
customer equity
Which of the following refers to the total combined customer lifetime value of all of the company's current and potential customers?
The Internet makes it easy for consumers to view, respond to, and create marketing content
Which of the following statements about the Internet is most accurate?
Losing a customer means losing the entire stream of purchases that the customer would make over a lifetime of patronage.
Which of the following statements is true about creating customer loyalty and retention?
Consumers brought spending more in line with their incomes.
Which of the following statements is true about the recession that began in 2008?
It leads to companies focusing too narrowly on their own operations.
Which of the following statements is true of the production concept?
It is typically practiced with unsought goods.
Which of the following statements is true of the selling concept?
considering customer focus and value as the paths to sales and profits
Which of the following statements reflects the marketing concept?
lowering prices
Which of the following strategies would a company most likely use to increase customer satisfaction?
customer evangelists
Which of the following terms refer to customers who make repeat purchases and tell others about their positive experiences with a product or service?
marketing myopia
Which of the following terms refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs?
social marketing
Your state's department of education has budgeted a significant amount of money for a radio, print, television, and online advertising campaign emphasizing the long-term benefits, both educationally and professionally, of reading every day. This is an example of a(n) ________ campaign.
Cross-selling
________ is one of the best ways to increase share of customer
Exchange
________ is the act of obtaining a desired object from someone by offering something in return
Sustainable marketing
________ refers to socially and environmentally responsible marketing that meets the needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.
customer relationship management
Building and maintaining profitable customer relationships by delivering superior customer value and satisfaction is called ________.
marketing
Carol Veldt has decided to ask selected guests to participate in an extensive survey about their experience at Seagull Terrace and about their requirements in terms of amenities and cuisines. By implementing the suggestions she receives from guests, Carol would be following the ________ concept
selling
Carol Veldt's plan also involves a seasonal promotional gimmick which she wants to promote aggressively. This is an example of the ________ concept
target marketing
Cathy's Clothes is a small yet successful retail chain that sells women's clothing and accessories with a focus on buyers who have relatively modest means. For this specific purpose, the firm has rolled out several marketing initiatives aimed at women of a specific demographic. This is an example of ________.
marketing
Consumer research, product development, communication, distribution, pricing, and service are all core ________ activities
true
Customer-perceived value is defined as the customer's evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers.
true friends
Customers can be classified into four relationship groups based on their profitability and projected loyalty. Which customer type is associated with high profitability and long-term loyalty?
Customer-perceived value
) ________ is determined by a customer's evaluation of the benefits and costs of a market offering relative to those of competing offers.
