Ch 1 assignment

Which of the following institutions would be most likely to market an idea as their main product? a. A local dry cleaner b. Holiday Inn c. Taco Bell d. Greenpeace e. A travel agency

Greenpeace

Which of the following statements describes a benefit that marketing offers? a. It gets customers the best deals. b. It eliminates cultural barriers. c. It enhances consumer awareness. d. It offers heightened job security. e. It results in lower prices for customers

It enhances consumer awareness.

When McDonald's decided to eliminate artificial flavorings and preservatives from its vanilla ice cream, it was most likely responding to which of the following? a. Customer lifetime value b. Sales orientation c. Changes in the marketing mix d. Changing regulations e. Marketing environment forces

Marketing environment forces

Which of the following statements about the marketing environment is false? a. Marketing environment forces are uncontrollable, so marketers do not plan for them. b. The marketing environment influences customers by affecting their lifestyles, standards of living, and preferences and needs for products. c. Marketing environmental forces often shape a marketer's decisions and actions. d. The marketing mix variables are easier to control than the marketing environment. e. Marketing environment forces can fluctuate quickly and dramatically.

Marketing environment forces are uncontrollable, so marketers do not plan for them.

Which of the following marketing mix variables has Walmart generally emphasized in its marketing activities? a. Promotion b. Price c. Product d. Distribution e. Marketing concept

Price

The marketing environment includes _______, economic, political, legal and regulatory, technological, and _______ forces. a. community; ethical b. customer; cultural c. competitive; sociocultural d. monetary; sociocultural e. global; marketing

competitive; sociocultural

Apple is known for its innovation. It conducts in-depth marketing research to determine what customers want. Its electronic devices are constantly upgraded so customers can purchase the newest models. The company creates buzz around its product offerings by discussing the product months before it is launched. This anticipation builds up until the product is launched, resulting in wide-scale sales that often result in stores selling out of the newest product. Refer to Scenario 1.2. From the information provided about Apple and its marketing strategies, Apple most likely embraces a _______. a. production orientation b. marketing concept orientation c. market orientation d. promotion orientation e. sales orientation

market orientation

Denise works as a direct seller for Rodan + Fields. She is determined to sell as many products to as many people as possible. Although she generally has a good relationship with customers, she has been known to be overly aggressive in trying to sell products. She often convinces consumers to purchase more expensive products even after they say they are not interested. As a result of Denise's high sales, she has become a top performer. Recently, however, Denise's sponsor has been informed of complaints that customers have levied against Denise accusing her of "badgering" them into buying products. The sponsor meets with Denise and tells her it is unacceptable to pressure consumers into purchasing items they do not want. Refer to Scenario 1.1. Denise's sponsor tells her that it is important for her to determine her customer's needs and then find the product that best meets those needs, regardless of price. She recommends that Denise adopt the _______. In other words, Denise should move from a _______, where she is focused on using her aggressive direct selling talents to maximize profits, toward embracing the more customer-centric _______. a. marketing concept; production orientation; sales orientation b. marketing concept; sales orientation; market orientation c. relationship marketing model; production orientation; sales orientation d. relationship marketing model; market orientation; production orientation e. marketing concept; sales orientation; production orientation

marketing concept; sales orientation; market orientation

It is possible for a customer to have a negative lifetime value. a. True b. False

true

The Brandenburg family makes $7,000 per month. About $1,800 goes toward taxes and savings. They spend $5,200 on goods and services. Based upon the information in the text, about how much of their money goes toward marketing activities? a. $1,800 b. $1,300 c. $3,400 d. $2,600 e. $5,200

$2600

Which of the following statements is true about marketing? a. All types of organizations need marketing. b. It is the best paying job in management. c. It always creates value for the firm. d. Marketing activities are relatively stable over time. e. Marketing prevents the consumption of harmful products.

All types of organizations need marketing

Shannon is driving in downtown Santa Fe. She is not very familiar with the area and is running late for her appointment. She heads to a nearby paid parking lot and is told that it costs $20 to park. Shannon is irritated by the price. Although there are likely other paid parking lots that are less expensive, Shannon pays the price to park there. Different cost considerations impacted Shannon's decision, but clearly one stood out over all the others. Which cost exerted the most influence over Shannon's decision to park in the $20 parking lot? a. The non-monetary cost of risk b. The monetary cost of time c. The non-monetary cost of time d. The $20 monetary cost e. The monetary cost of the effort involved

The non-monetary cost of time

A Subaru representative has a solid relationship with Phil, a satisfied customer. Phil loves Subaru and will not accept anything else. The representative determines that if Phil continues to do business with Subaru every time he wants to purchase a new car, his total value to the company would be $350,000. This includes purchases made by customers who were referred to the firm by Phil. The Subaru representative has calculated Phil's _______. a. relationship marketing b. value of referrals c. monetary and nonmonetary benefits d. commitment e. customer lifetime value

customer lifetime values

What is the major focus of the marketing concept?

customer satisfaction

Jameson manages a well-known cell phone company. This company has been voted as having the best cell phone service. Consumers appreciate the fact that they can call from almost anywhere in the world and the service still gets through. Jameson knows that the company's product far surpasses that of the competition. One thing has been bothering him, though. In order to put so many resources into ensuring the best service, Jameson has cut back on employees at the firm's customer call center. Recently, consumers have begun complaining about long wait times when they call in with a problem or concern. Although its cell phone service is still considered one of the best, customer satisfaction with the firm's customer service has plummeted. Jameson does not understand why consumers are getting so upset. He believes the exceptional cell phone service more than makes up for long waiting periods and other issues with its customer service. "After all," he says, "They can't have it all. If I invest more in customer service, that means less investment on ensuring the quality of our product offering."Refer to Scenario 1.3. Jameson has asked you, a marketing consultant, to give him advice. He cannot understand how a cell phone company with the best product offering in the cell phone service industry could get such low satisfaction ratings simply because the customer service is not up to par. You suggest that Jameson has a narrowly defined view of the company's product offering. You tell Jameson that successful marketers should define their products as what they _______. a. do to satisfy customers b. make c. produce d. cost customers e. deliver

do to satisfy customers

Customers consciously calculate the value of a product in benefits and costs for most purchases. a. True b. False

false

Marketers have complete control over marketing mix variables. a. True b. False

false

Valerie works at a pharmaceutical firm that develops medicines for rare diseases. The company develops a new medication for a disease that very few people have. In fact, less than 100 people are said to have this disease in the entire country. As a result, the drug will be priced high, but the firm will work closely with insurance companies to get the medicine to the right people without sacrificing much revenue. Her friend Rick, who is taking business classes, tells her that this is too small to be a target market. Is Rick's statement true? a. True b. False

false

_______ is a strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment. a. Global marketing b. Relationship marketing c. The marketing concept d. Socially responsible marketing e. Green marketing

green marketing

Jameson manages a well-known cell phone company. This company has been voted as having the best cell phone service. Consumers appreciate the fact that they can call from almost anywhere in the world and the service still gets through. Jameson knows that the company's product far surpasses that of the competition. One thing has been bothering him, though. In order to put so many resources into ensuring the best service, Jameson has cut back on employees at the firm's customer call center. Recently, consumers have begun complaining about long wait times when they call in with a problem or concern. Although its cell phone service is still considered one of the best, customer satisfaction with the firm's customer service has plummeted. Jameson does not understand why consumers are getting so upset. He believes the exceptional cell phone service more than makes up for long waiting periods and other issues with its customer service. "After all," he says, "They can't have it all. If I invest more in customer service, that means less investment on ensuring the quality of our product offering."Refer to Scenario 1.3. On your advice, Jameson decides to invest more in customer service training and hiring. Satisfaction increases, but not to the level Jameson thinks it should be. He conducts a marketing research study and found that while most consumers like the product, many would like to see additional services available. However, what type of service customers want tends to vary by customer. Jameson has come to believe that customers just do not know how to assess value correctly. Jameson appears to believe that determining value is a(n) _______ process, while in reality the process of assessing value is highly _______. a. rational; irrational b. complex; simple c. objective; subjective d. irrational; rational e. subjective; objective

objective; subjective

Apple is known for its innovation. It conducts in-depth marketing research to determine what customers want. Its electronic devices are constantly upgraded so customers can purchase the newest models. The company creates buzz around its product offerings by discussing the product months before it is launched. This anticipation builds up until the product is launched, resulting in wide-scale sales that often result in stores selling out of the newest product. Refer to Scenario 1.2. Apple's emphasis on marketing research is used to enhance the __________ variable of the marketing mix, while its skills at creating buzz for its newest product offering months before its release is an example of __________variable.

product, promotion

Jim manages a small factory that produces circuit boards. Jim operates from the belief that a good product creates demand. He focuses much of his energy on developing operational efficiencies and increasing output. The company's salesperson Darlene, however, views customer relationships and personal selling as being the highest priority. Between the two of them, the firm has become known for its quality products and excellent customer relationships. Refer to Scenario 1.4. What type of orientation has Jim adopted? a. Production b. Sales c. Customer d. Marketing concept e. Market

production

Denise works as a direct seller for Rodan + Fields. She is determined to sell as many products to as many people as possible. Although she generally has a good relationship with customers, she has been known to be overly aggressive in trying to sell products. She often convinces consumers to purchase more expensive products even after they say they are not interested. As a result of Denise's high sales, she has become a top performer. Recently, however, Denise's sponsor has been informed of complaints that customers have levied against Denise accusing her of "badgering" them into buying products. The sponsor meets with Denise and tells her it is unacceptable to pressure consumers into purchasing items they do not want. Refer to Scenario 1.1. Which variable of the marketing mix does this issue involve?

promotion

______________ deepens the buyer's trust in the company, and as the customer's confidence grows, this, in turn, increases the firm's understanding of the customer's needs.

relationship marketing

REI has a 100% satisfaction guarantee on its items. It allows customers to return products up to one year after purchase. This is an attempt by REI to reduce what type of cost? a. Risk b. Effort c. Quality d. Time e. Monetary

risk

Jim manages a small factory that produces circuit boards. Jim operates from the belief that a good product creates demand. He focuses much of his energy on developing operational efficiencies and increasing output. The company's salesperson Darlene, however, views customer relationships and personal selling as being the highest priority. Between the two of them, the firm has become known for its quality products and excellent customer relationships. Refer to Scenario 1.4. Recently, Darlene has found that they have begun to reach market saturation. She is having trouble finding new customers. One solution would be to increase the company's reach, perhaps by opening up locations in other areas. However, she knows this will be expensive. After noticing that many of their customers are planning on expanding and purchasing bigger facilities, Darlene feels that the best option is to increase the company's _______. a. share of customer b. customer lifetime value c. promotional efforts d. product output e. market share

share of customer