Marketing Chapter 1

A market is a segment of potential consumers who share a common need or want.

True

Which of the following transforms marketing strategies into real values for consumers? A) share of customer B) customer equity C) the four Ps of marketing D) a firm's value proposition E) customer satisfaction surveys

c. the four p's of marketing

Marketers are said to suffer from marketing myopia when they ignore underlying consumer needs and focus excessively on ________. A) consumers' brand experiences B) competitors' threats C) consumers' existing wants D) competitors' strengths E) consumers' future demands

C. consumers' existing wants

________ is the total combined customer lifetime values of all the company's current and potential customers. A) Share of customer B) Value proposition C) Customer equity D) Market share E) Customer-perceived value

C. customer equity

________ companies research customers deeply to learn about their desires, gather new product ideas, and test product improvements. A) Production-oriented B) Customer-driving C) Customer-driven D) Functional E) Societal

C. customer-driven

The "Stop the Texts. Stop the Wrecks." campaign co-sponsored by the Ad Council and the National Highway Traffic Safety Administration is an example of a marketing offering for a(n) ________. A) product B) person C) idea D) place E) organization

C. idea

Dividing a market into several sections of customers is known as ________. A) mass customization B) market positioning C) market segmentation D) value engineering E) undifferentiated marketing

C. market segmentation

________ marketing is perhaps the fastest-growing marketing platform. A) Online B) Social media C) Mobile D) Web site E) Blog

C. mobile

Which of the following is most likely a consequence of the Great Recession of 2008 to 2009? A) more free-spending on expensive products B) more demand for credit and debit cards C) more sensible and mindful consumption D) less interest in frugality and value E) less emphasis on sustainable marketing

C. more sensible and mindful consumption

A customer who is both loyal and profitable is referred to as a ________. A) barnacle B) stranger C) true believer D) laggard E) butterfly

C. true believer

________ are defined as states of felt deprivation. A) Needs B) Ideas C) Demands D) Values E) Exchanges

A. Needs

(T/F) Companies like Coca-Cola and Facebook deliver customer satisfaction by spreading happiness and connecting individuals through shared experiences.

TRUE

Which of the following is a difference between the marketing concept and the selling concept? A) The marketing concept focuses on customer needs, whereas the selling concept focuses on existing products. B) The marketing concept focuses on customer conquest, whereas the selling concept focuses on targeting the right customers. C) The marketing concept takes an inside-out perspective, whereas the selling concept takes an outside-in perspective. D) The marketing concept is product-centered, whereas the selling concept is production-centered. E) The marketing concept focuses on short-term sales, whereas the selling concept strives to build long-term customer relationships.

A) The marketing concept focuses on customer needs, whereas the selling concept focuses on existing products

) ________ are the form human needs take as they are shaped by culture and individual personality. A) Wants B) Necessities C) Services D) Benefits E) Risks

A. Wants

________ refers to a channel stretching from raw materials to components to final products that are carried to final buyers. A) A supply chain B) A marketing channel C) A market segment D) A demand chain E) A marketing-mix channel

A. a supply chain

The final step in the marketing process is ________. A) capturing value from customers B) constructing an integrated marketing program C) building profitable relationships with the customers D) understanding the marketplace E) designing a customer-driven marketing strategy

A. capturing value from customers

For the past nine years, PepsiCo's Doritos brand has held a "Crash the Super Bowl" contest in which it invites 30-second ads from consumers and runs the best ones during the game. This is an example of ________. A) consumer-generated marketing B) frequency marketing C) customer-club marketing D) sustainable marketing E) multi-level marketing

A. consumer-generated marketing

The selling concept holds that ________. A) consumers will not buy enough of a firm's products unless the firm undertakes large-scale persuasion and promotion efforts B) a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests C) consumers will only favor products that are available and highly affordable D) achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do E) consumers will favor products that offer the most in quality, performance, and innovative features

A. consumers will not buy enough of a firm's products unless the firm undertakes large-scale persuasion and promotion efforts

Ritz-Carlton is fervently dedicated to anticipating customers' slightest needs. Without ever asking, they seem to know when customers want a king-size bed, non-allergenic pillow, extra body gel or the blinds open upon arrival. An amazing 95 percent of departing guests report that their stay has been a truly memorable experience. This is an example of ________. A) customer delight B) customer lifetime value C) customer equity D) customer share E) customer-perceived value

A. customer delight

Which of the following terms refers to a customer's evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers? A) customer-perceived value B) customer equity C) share of customer D) customer profitability E) customer lifetime value

A. customer-perceived value

Imaginative Web sites, smartphone apps, and social media allow marketers to deliver messages that are direct and personal so consumers can ________. A) live the brand B) sustain the brand C) deliver the brand D) enhance the brand E) establish the brand

A. live the brand

The ________ concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. A) marketing B) product C) production D) selling E) societal marketing

A. marketing

The ultimate aim of customer relationship management is to ________. A) produce high customer equity B) divide markets into distinct segments C) evaluate customer lifetime value D) turn "strangers" into "butterflies" E) evaluate current sales share

A. produce high customer equity

Which of the following concepts calls for sustainable marketing? A) the societal marketing concept B) the marketing concept C) the selling concept D) the production concept E) the product concept

A. the societal marketing concept

JetBlue's promise to put "You Above All" by "bringing humanity back to travel" is their ________. A) value proposition B) segmentation strategy C) market offering D) selling concept E) production concept

A. value proposition

In which of the following circumstances is an organization likely to engage in full partnerships with key consumers? A) when the market has few customers and high margins B) when the market has a huge number of customers C) when the firm has a frequency marketing program D) when the firm has a large number of low-margin customers E) when the firm has few marketing resources at its disposal

A. when the market has few customers with high margins

________ is the art and science of choosing target markets and building profitable relationships with them. A) Differentiation B) Marketing management C) Positioning D) Segmentation E) Value engineering

B. Marketing management

Various government agencies have launched campaigns to encourage energy conservation and concern for the environment as well as discourage smoking, illegal drug use, and obesity. This illustrates ________ marketing. A) ambush B) social C) for-profit D) consumer-generated E) multi-level

B. Social

The Amazon Prime program strives to convert casual shoppers into loyal customers. An Amazon Prime customer can be classified as a ________. A) barnacle B) true believer C) stranger D) laggard E) butterfly

B. True believer

The societal marketing concept holds that ________. A) consumers will not buy enough of a firm's products unless the firm undertakes a large-scale selling and promotion effort B) a company's marketing decisions should focus on creating economic value in a way that also creates value for the surrounding environment C) the society will only favor products that are available and highly affordable D) achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do E) consumers will favor products that offer the most in quality, performance, and innovative features

B. a company's marketing decisions should focus on creating economic value in a way that also creates value for the surrounding environment

Companies that practice marketing by ________ create offerings and messages that engage consumers rather than interrupt them. A) intrusion B) attraction C) competition D) forceful persuasion E) impersonal selling

B. attraction

Procter & Gamble's Tide detergent does not phone or call on all of its consumers to get to know them personally. Instead, Tide creates engagement and relationships through brand-building advertising, Web sites, and social media presence. Which of the following types of associations would be most profitable for the firm to develop with these customers? A) full partnerships B) basic relationships C) joint ventures D) strategic alliances E) business partnering

B. basic relationships

A consumer who is potentially profitable but not loyal to a firm's offerings is referred to as a ________. A) true friend B) butterfly C) stranger D) barnacle E) true believer

B. butterfly

Cylog, a leading provider of personal computer systems, began manufacturing tablet devices after predicting a future consumer need for portability. Which of the following was most likely implemented by Cylog? A) the selling concept B) customer-driving marketing C) the product concept D) sustainable marketing E) the production concept

B. customer-driven marketing

Sally purchased a newly introduced moisturizing lotion. By attempting to find out if the lotion's perceived performance matched her expectations, Sally was measuring her level of customer ________. A) loyalty B) satisfaction C) equity D) engagement E) lifetime value

B. satisfaction

________ refers to the portion of the customer's purchase that a company gets in its product categories. A) Value proposition B) Share of customer C) Brand equity D) Customer lifetime value E) Customer equity

B. share of customer

Customer evangelists are those who ________. A) use personal selling methods to market products and services B) spread the word about their good experiences with a brand or product C) use their expertise to influence people about specific products D) work with quality-assurance teams to improve product safety E) evaluate newly launched products in the marketplace

B. spread the word about their good experiences with a brand or product

In which of the following customer relationship groups do organizations generally avoid investing? A) barnacles B) strangers C) butterflies D) true believers E) true friends

B. strangers

Which of the following concepts is based on a customer-centered philosophy? A) the product concept B) the marketing concept C) the production concept D) the selling concept E) the distribution concept

B. the marketing concept

Many leading business and marketing thinkers are now preaching the concept of "shared value" which recognizes that ________ needs, not just economic needs, define markets. A) functional B) marketing C) individual D) societal E) physical

D. societal

Abel now has the buying power to purchase the computer that he wanted to buy six months ago. Abel's want has most likely become a ________. A) need B) value C) demand D) market offering E) desire

C. Demand

Which of the following is an example of consumer-generated marketing? A) Cristal, a jewelry store, uses its page on Facebook to provide information about its upcoming products to its customers. B) Figa, a leading provider of athletic shoes, helps its customers customize their shoes on its Web site and choose personalized settings. C) Fun & Run, a local amusement park, promotes its services by allowing consumers to upload videos and write reviews about the park. D) Barton's, a local pet supply store, rewards frequent buyers with vouchers and exclusive offers. E) Energix, a manufacturer of soft drinks, attracts customers through televised advertisements.

C. Fun & Run, a local amusement park, promotes its services by allowing consumers to upload videos and write reviews about the park.

Apple encourages customers to form local Apple user groups. This is an example of a ________. A) business partnership program B) joint venture C) club marketing program D) consumer-generated marketing program E) strategic alliance

C. club marketing program

Dollar General profitably appeals to families with more modest means. The retailer's approach is most likely referred to as ________. A) mass distribution B) cost leadership C) consumer-generated marketing D) target marketing E) undifferentiated marketing

D. target marketing

Customer-driven marketing is most effective when ________. A) a clear need exists among customers, but the need is difficult to identify B) customers do not know what they want but are easily persuaded C) customers seek new products and technological innovations D) clear needs exist and customers know what they want E) customers have wants but cannot afford them

D) clear needs exist and customers know what they want

________ is the act of obtaining a desired object from someone by offering something in return. A) Targeting B) Segmentation C) Differentiation D) Exchange E) Positioning

D. Exchange

Carla, a team leader in charge of customer relationship management, is planning strategies to improve the profitability of her firm's least profitable but loyal customers. She is also examining methods for "firing" customers in this group who cannot be made profitable. To which of the following customer relationship groups do these customers belong? A) butterflies B) true friends C) strangers D) barnacles E) innovators

D. barnacles

Consumers' needs and wants are fulfilled through ________. A) value B) demand C) desire D) market offerings E) ideas

D. market offerings

________ refers to working closely with people inside and outside the company to jointly bring more value to customers. A) Demand management B) Customer-generated marketing C) Integrated communication D) Partner relationship management E) Channel value proposition

D. partner relationship management

Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This most likely reflects the ________. A) customer-driving marketing concept B) marketing concept C) societal marketing concept D) production concept E) selling concept

D. production concept

PC manufacturer, Lenovo, focuses on low labor costs and mass distribution to ensure the continuous availability of its products at reasonable prices. Lenovo most likely follows the ________. A) customer-driving marketing concept B) marketing concept C) societal marketing concept D) production concept E) selling concept

D. production concept

Cosmetic retailer Lush knows that doing what's right benefits both customers and the company. Their premium beauty products are made by hand from the freshest possible natural ingredients. This is an example of the ________ concept. A) marketing B) product C) production D) societal marketing E) selling

D. societal marketing

Customers who are classified as true believers ________. A) are attracted to a company's competitor's deals and offers B) have needs and wants that do not fit a company's offerings C) are not very profitable for a company D) tell others about their good experiences with a company E) are projected to be less loyal to any brand

D. tell others about their good experiences with a company

According to the five-step model of the marketing process, the first step in marketing is ________. A) capturing value from customers to create profits and customer equity B) constructing an integrated marketing program that delivers superior value C) engaging customers, building profitable relationships, and creating customer delight D) understanding the marketplace and customer needs and wants E) designing a customer-driven marketing strategy

D. understanding the marketplace and customer needs and wants

A brand's ________ is the set of benefits that it promises to deliver to consumers to satisfy their needs. A) dominant effect B) fringe benefit C) perquisite D) value proposition E) dividend yield

D. value proposition

Mattel's American Girl Doll creates special ________ between the dolls and the girls who adore them. A) service offerings B) benefits C) wants D) values E) brand experiences

E. brand experiences

Efforts to convert ________ into loyal customers are rarely successful. A) barnacles B) strangers C) true believers D) laggards E) butterflies

E. butterflies

Stew Leonard's has created what has been the "Disneyland of Dairy Stores," complete with costumed characters, scheduled entertainment, and a petting zoo. It's built 30 additions onto the original store, which now serves more than 300,000 customers each week. This legion of loyal shoppers is largely a result of the store's passionate approach to customer service. Instead of focusing on individual transactions, Stew and his staff are putting a priority on ________. A) decreasing customer-perceived value B) managing partner relationships C) attracting "butterflies" D) converting "strangers" into "butterflies" E) capturing customer lifetime value

E. capturing customers lifetime values

The ________ concept holds that consumers will favor goods and services that offer the most in quality, performance, and innovative features. A) societal marketing B) marketing C) selling D) production E) product

E. product

(T/F) Barnacles are customers who are potentially profitable but not loyal.

FALSE

(T/F) Customer relationship management focuses on retaining existing customers but not on acquiring new customers.

FALSE

(T/F) Market offerings are limited to physical products.

FALSE

(T/F) Marketing is primarily concerned with engaging customers and secondarily with managing profitable customer relationships.

FALSE

(T/F) When backed by buying power, wants become needs.

FALSE

(T/F) Club marketing programs reward customers who buy frequently or in large amounts.

False

(T/F) Customer equity is a measure of the past value of a company's customer base.

False

(T/F) In markets with few customers and high margins, sellers should try to develop basic relationships rather than full partnerships.

False

(T/F) Since less than ten percent of smartphone owners use their phones for shopping-related activities, mobile marketing is a slow growing digital marketing platform.

False

(T/F) The more loyal a firm's profitable customers, the lower its customer equity.

False

(T/F) When sellers pay less attention to the specific products they offer and more attention to the benefits and experiences produced by these products, they suffer from marketing myopia.

False

(T/F) Xenon Corp. releases frequent updates to improve its expensive software products. This marketing approach used by the firm is most likely based on the production concept.

False

A greater focus on underlying customer needs than on existing customer wants leads to marketing myopia.

False

(T/F) A brand's value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs.

True

(T/F) Customer-perceived value is defined as a customer's evaluation of the perceived difference between all the benefits and all the costs of a market offering relative to those of competing offers.

True

(T/F) In the final step of a marketing process, a company reaps the rewards of its strong customer relationships by capturing value from customers.

True

(T/F) Market offerings include entities such as people, places, information, and ideas.

True

(T/F) Organizations that follow the societal marketing concept most likely practice socially and environmentally responsible marketing.

True

(T/F) Success at delivering customer value rests on how well a company's entire supply chain performs against competitors' supply chains.

True

(T/F) The marketing concept is a customer-centered, sense-and-respond philosophy.

True

(T/F) The product concept holds that consumers will favor products that offer the most in quality, performance, and innovative features.

True

(T/F) Through consumer-generated marketing, consumers themselves are playing a bigger role in shaping their own brand experiences and those of others.

True

Product, price, place, and promotion make up the elements of a firm's marketing mix.

True

________ are customers who show low potential profitability and little projected loyalty. A) True friends B) Barnacles C) Strangers D) True believers E) Butterflies

c. strangers

________ marketing is defined as socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. A) Customer-driven B) Mass C) Sustainable D) Customer-driving E) Ambush

c. sustainable