Chapter 1 quiz

​If a family spends $2,000 a month on goods and services, how much of that $2,000 goes for marketing activities?

​$1,000

According to the marketing concept, an organization should try to

​provide products that satisfy customers' needs and allow the organization to achieve its goals.

Amazon Prime has one of the highest customer loyalty ratings in the entertainment with subscribers continuing to renew their subscription and many customers have cancelled their cable or satellite subscriptions and rely almost exclusively on streaming services. Amazon Prime video streaming is available as part of Amazon's $99/year Amazon Prime suite of offerings that includes free 2-day shipping on many Amazon.com orders. Customers can also choose to pay by the month for $12.99/month. If a significant percentage of subscribers continue their service on an annual basis, Amazon is able to build a stable revenue stream based on repeat purchasers. A quick snapshot of one customer revealed that the customer had subscribed to Prime for five years and generated over $700 in revenue to Amazon. Which of the following marketing terms best captures the importance of customer loyalty and its impact on Amazon?

Customer lifetime value

​Marketing efforts do not involve the design and development of products.

False

​The actual physical production of goods is a marketing activity.

False

​Value = customer costs−customer benefits.

False

Kraft made the announcement that it was eliminating artificial food additives. Which of the following most likely influenced Kraft's decision?

Marketing environment

Which of the following is NOT an example of the implementation of the marketing concept?

McDonald's reduces the labor costs to produce its sausage-egg biscuits.

United Airlines introduced a new "basic economy" seat category to better compete with discount airlines like Southwest and Spirit. Which of the following aspects of the marketing mix is United likely altering?

Price

Which of the following statements about marketing environment forces is NOT true?

They do not influence customers' reactions to a firm's marketing mix.

It is a good idea to consider parents as part of the target market when marketing new children's lunchboxes that stay colder longer.

True

​The marketing mix is built around the

customer

Ace Manufacturing Company is not attracting sufficient customers. It has long defined itself as being a maker of shelving products. To improve its sales and long-term viability, it should perhaps consider redefining itself as

helping potential customers satisfy their needs with Ace shelving products.

Dunkin' is introducing some of its products into supermarkets, vending machines, college campuses, and other locations to increase its product availability and convenience. One reason Dunkin' is doing so is to

increase customer value

Deciding to add gel insoles to its running shoes would be a change in the ____ element of the marketing mix for Nike.

product

A company's customers, employees, shareholders, suppliers, governments, communities, and competitors comprise its

stakeholders.

Special K cereal is aimed at people concerned about their weight. These people represent the Special K

target market.

Coca-Cola has in recent years developed or acquired new non-cola products to appeal to changing consumer preferences for less sugar in their products. The most likely factor in this change is changes in

the sociocultural forces of the marketing environment