Intro to Marketing Chapter 1 Marketing: Creating and Capturing Customer Value/ Creating Customer Value and Engagement
117) Which of the following reflects the marketing concept? A) "The supplier is king." B) "Marketing should be viewed as hunting and not gardening." C) "This is what I make; won't you please buy it?" D) "This is what I want; won't you please make it?" E) "Customers need to be told where they want to go."
Answer: D "This is what I want; won't you please make it?"
50) Which of the following is a characteristic of customer-driven marketing? A) Companies understand customer needs even better than customers themselves do. B) Customers are unaware of their needs. C) Products are created that meet both existing and latent needs, now and in the future. D) Customers know what they want. E) Customers don't know what is possible.
Answer: D Customers know what they want.
102) 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? A) butterflies B) true friends C) strangers D) barnacles E) cash cows
Answer: D barnacles
128) Afia, a team leader in charge of customer relationship management, is planning strategies for improving 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) short-term customers
Answer: D barnacles
93) "Losing a customer once means losing the entire stream of possible purchases that the customer would make over an extended period of patronage." This statement specifically indicates loss in terms of ________. A) customer-perceived value B) marketing offerings C) partner relationship management D) customer lifetime value E) value proposition
Answer: D customer lifetime value
24) The product concept says that a company should do which of the following? A) improve marketing of its best products B) market only those products with high customer appeal C) focus on the target market and make products that meet those customers' demands D) focus on making continuous product improvements E) make promoting products the top priority
Answer: D focus on making continuous product improvements
135) Carol Veldt has decided to ask selected guests to participate in an extensive survey about their experience at Seagull Terrace and about their most desired amenities and vacation experiences. By implementing the suggestions she receives from guests, Carol would be following the ________ concept. A) production B) product C) selling D) marketing E) societal
Answer: D marketing
11) Which of the following terms refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs? A) vendor lock-in B) social loafing C) value proposition D) marketing myopia E) conspicuous consumption
Answer: D marketing myopia
118) 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. A) marketing concept B) product concept C) production concept D) societal marketing concept E) selling concept
Answer: D societal marketing concept
113) Cathy's Clothes is a small retail chain successfully selling women's clothing and accessories with a profitable focus on buyers who have relatively modest means. This is an example of ________. A) convenience B) social marketing C) market segmentation D) target marketing E) value packing
Answer: D target marketing
18) Selecting which segments of a population of customers to serve is called ________. A) market segmentation B) positioning C) customization D) target marketing E) managing the marketing effort
Answer: D target marketing
71) Customers can be classified into four relationship groups, according to their profitability and projected loyalty. Which type of customers have the highest profit potential and strong loyalty? A) barnacles B) strangers C) butterflies D) true friends E) big fish
Answer: D true friends
101) 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? A) barnacles B) strangers C) butterflies D) true friends E) cash cows
Answer: D) true friends
127) At Gina's Nails, the posted policy is "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 ________. A) maintaining customer-perceived value B) enlisting customer evangelists C) attracting "butterflies" D) converting "strangers" E) capturing customer lifetime value
Answer: E capturing customer lifetime value
94) 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 ________. A) managing partner relationships B) selling new products C) attracting "butterflies" D) converting "barnacles" to "strangers" E) capturing customer lifetime value
Answer: E capturing customer lifetime value
89) 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 ________. A) societal marketing B) the production concept C) the selling concept D) partner relationship management E) consumer-generated marketing
Answer: E consumer-generated marketing
123) Tommy Gray attempts to deliver customer satisfaction every day in his Audio Expressions installation business. He is a smart operator who knows that the key to this goal is to match ________ with ________. A) company performance; competition B) company performance; competitive prices C) relationship building; performance tools D) company performance; unique products E) customer expectations; company performance
Answer: E customer expectations; company performance
120) You have just taken a new position in an organization and you're learning about the job functions of your new colleagues. You observe that your marketing manager is heavily involved in the process of building and maintaining profitable customer relationships. Your marketing manager frequently speaks about the need to deliver superior customer value and satisfaction. Your manager is concerned with which one of the following? A) database management B) Web site hits C) the societal marketing concept D) partner relationship management E) customer relationship management
Answer: E customer relationship management
103) Digital technology allows companies to reach out to customers in numerous ways. Which of the following is NOT the purpose of a company reaching out using digital and social media? A) solving consumer problems B) building customer relationships C) helping customers shop D) providing product information E) working with suppliers
Answer: E working with suppliers
19) When backed by buying power, needs become wants.
Answer: FALSE
61) An organization's department follows a customer-centered sense-and-respond philosophy. The department is most likely practicing the product concept.
Answer: FALSE
76) Selling is managing profitable customer relationships.
Answer: FALSE
77) Human needs are shaped by culture and individual personality.
Answer: FALSE
79) When backed by buying power, needs become demands.
Answer: FALSE
80) Market offerings are limited to physical products.
Answer: FALSE
82) When sellers focus on existing needs and lose sight of underlying customer wants, they suffer from marketing myopia.
Answer: FALSE
83) Only sellers of products, services, and ideas practice marketing; buyers do not.
Answer: FALSE
84) Market segmentation is the process of seeking fewer customers and reduced demand for profit maximization only.
Answer: FALSE
85) Demarketing is a marketing philosophy focused upon product differentiation and positioning.
Answer: FALSE
89) Amy's law office has developed a new format and wording for wills. The staff believes they offer the most in quality, performance, and innovative features. Her law office is practicing the production concept.
Answer: FALSE
90) Your department holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do. Your department is practicing the selling concept.
Answer: FALSE
91) Fast Food, Inc. views marketing as the science and art of finding, retaining, and growing profitable customers by providing them with the food they want. Fast Food, Inc. practices societal marketing.
Answer: FALSE
93) For most marketers, customer relationship management (CRM) is exclusively a matter of customer data management.
Answer: FALSE
94) The marketing mix includes production, price, promotion, and packaging; this is known as the four Ps of marketing.
Answer: FALSE
98) Consumer-generated marketing, a relatively new phenomenon, has so far had little impact as a marketing force.
Answer: FALSE
18) The difference between human needs and wants is that needs are not created by marketers.
Answer: TRUE
23) A market is the set of actual and potential buyers of a product or service.
Answer: TRUE
60) 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.
Answer: TRUE
62) The production concept and the product concept are marketing management orientations that are more likely to lead to marketing myopia.
Answer: TRUE
63) The societal marketing concept calls on marketers to balance consumer wants and desires, company profits, and society's interests.
Answer: TRUE
78) The difference between human needs and wants is that needs are not influenced by marketers.
Answer: TRUE
81) An experience such as a vacation can be defined as a market offering.
Answer: TRUE
86) When it becomes necessary to reduce demand for a product or service, an organization may use demarketing to reduce or shift the number of customers.
Answer: TRUE
87) The production concept and product concept are orientations that can lead to marketing myopia.
Answer: TRUE
88) The selling concept holds that consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort.
Answer: TRUE
92) The societal marketing concept calls on marketers to balance consumer wants and desires, company profits, and society's interests.
Answer: TRUE
95) Customer-perceived value is defined as the customer's evaluation of the perceived difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.
Answer: TRUE
96) With selective relationship management, companies use customer profitability analysis to eliminate losing customers and target winning ones.
Answer: TRUE
78) ________ is determined by a customer's evaluation of the benefits and costs of a market offering relative to those of competing offers. A) Customer-perceived value B) Customer lifetime value C) Share of customer D) Customer-managed relationship E) Brand value proposition
Answer: A Customer-perceived value
85) A room upgrade offered by a hotel to a guest who often stays in the hotel is an example of ________. A) a frequency marketing program B) a basic relationship C) a club marketing program D) partner relationship management E) sustainable marketing
Answer: A a frequency marketing program
133) Carol Veldt's use of "promotional gimmicks" is an example of the ________ concept. A) selling B) marketing C) product D) production E) societal marketing
Answer: A selling
81) Which of the following terms refers to customers who make repeat purchases and tell others about their positive experiences with a product or service? A) barnacles B) customer evangelists C) butterflies D) surrogate customers E) market mavens
Answer: B
82) 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 ________. A) share of customer B) customer satisfaction C) customer equity D) customer-perceived value E) customer lifetime value
Answer: B customer satisfaction
16) In the case of excess demand, ________ may be required to reduce the number of customers or to shift demand temporarily or permanently. A) marketing B) demarketing C) value marketing D) surplusing E) negotiating
Answer: B demarketing
14) Consumer research, product development, communication, distribution, pricing, and service are all core ________ activities. A) exchange B) marketing C) management D) production E) customer relationship management
Answer: B marketing
86) 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 ________. A) a frequency marketing program B) a basic customer relationship C) a club marketing program D) the selling concept E) consumer-generated marketing
Answer: C
111) Greg Williams now has the buying power to purchase the computer system he has wanted for the last six months. Greg's want now has become a(n) ________. A) need B) necessity C) demand D) exchange E) transaction
Answer: C demand
77) 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? A) customer divestment B) customer-managed relationships C) the societal marketing concept D) partner relationship management E) customer relationship management
Answer: E
100) Web 2.0 is distinguished by its poorly conceived e-tailers and Web start-ups.
Answer: FALSE
99) To increase their "share of customer," a firm concentrates on retaining as many customers as possible over their lifetimes.
Answer: FALSE
65) The marketing mix refers to the set of marketing tools the firm uses to implement its marketing strategy.
Answer: TRUE
97) Large-scale marketing approaches that foster two-way customer relationships are made possible by new communication technologies.
Answer: TRUE
74) Which of the following statements is true about creating customer loyalty and retention? A) Losing a customer means losing the entire stream of purchases that the customer would make over a lifetime of patronage. B) Customer delight creates a rational preference and not an emotional relationship with the brand. C) The aim of customer relationship management is to focus solely on customer delight. D) Losing a customer hardly makes a difference to a company's sales. E) The aim of customer relationship management is to focus solely on customer satisfaction.
Answer: A
92) The final step in the marketing process is ________. A) capturing value from customers B) creating customer delight C) creating customer lifetime value D) understanding the marketplace E) designing a customer-driven marketing strategy
Answer: A capturing value from customers
126) Elisandra, a marketing manager at a regional chain restaurant, has decided to sponsor 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 ________. A) consumer-generated marketing B) partner relationship management C) customer lifetime value D) community development around a brand E) selective relationship management
Answer: A consumer-generated marketing
90) 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 ________. A) consumer-generated marketing B) partner relationship management C) customer lifetime value D) community development around a brand E) customer divestment
Answer: A consumer-generated marketing
124) Shania works hard to foster an emotional relationship between her Internet customers and the beauty products and services that she and her staff sell. By promoting a company culture that values exceptional value and service, Shania aims to create ________ by going beyond the expected. A) customer delight B) customer satisfaction C) customer value D) customer equity E) customer involvement
Answer: A customer delight
69) The ultimate aim of customer relationship management is to produce ________. A) customer equity B) market share C) sales volume D) a reliable database E) higher profit margins
Answer: A customer equity
16) 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 ________. A) market offering B) target market C) market segment D) product positioning E) marketing mix
Answer: A market offering
49) The marketing concept takes a(n) ________. It starts with a well-defined market, focuses on customer needs, and integrates all the marketing activities that affect customers. A) outside-in perspective B) product-centered make-and-sell philosophy C) inside-out perspective D) consumer-generated marketing approach E) telling-and-selling approach
Answer: A outside-in perspective
116) Railroads were once operated based on the thinking that users wanted trains rather than transportation, overlooking the challenge of other modes of transportation. This reflects the ________ concept. A) product B) production C) selling D) marketing E) societal marketing
Answer: A product
132) Which of the following groups is specifically part of Seagull Terrace's target market? A) seasonal business travelers B) young families C) retirees D) summer campers E) athletes
Answer: A seasonal business travelers
119) Members of the sales team at Dekko International visit only prospective customers who purchase a minimum of $50,000 of insulated wire per year. Dekko is using ________. A) selective relationship management B) a frequency marketing program C) a club marketing program D) demarketing E) a value proposition
Answer: A selective relationship management
91) 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. A) supply chain management B) direct marketing C) customer relationship marketing D) customized marketing E) inventory management
Answer: A supply chain management
96) Apart from retaining good customers, most marketers want to constantly increase their "share of customer." What does this mean in marketing terms? A) Marketers want to increase their market share. B) Marketers want to increase the share they get of the customer's purchasing in their product categories. C) Marketers want to diversify their operations and customize their products to cater to the entire market. D) Marketers want to continuously increase their customers' levels of satisfaction. E) Marketers want to turn satisfied customers into delighted customers.
Answer: B Marketers want to increase the share they get of the customer's purchasing in their product categories.
84) 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? A) full partnerships B) basic relationships C) causal relationships D) club marketing programs E) inverse relationships
Answer: B basic relationships
100) In the context of customer relationship groups, a potentially profitable and short-term customer is referred to as a ________. A) true friend B) butterfly C) stranger D) barnacle E) market maven
Answer: B butterfly
70) A potentially highly profitable, short-term customer is a ________. A) true friend B) butterfly C) stranger D) barnacle E) true believer
Answer: B butterfly
121) Sally purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her expectations for Brand X lotion, Sally was measuring her level of ________. A) customer-perceived value B) customer satisfaction C) customer equity D) demand E) customer lifetime value
Answer: B customer satisfaction
125) You are an assistant marketing director for a firm in a market with many low-margin customers. What type of relationship would it be most profitable for you to develop with these customers? A) full partnerships B) basic relationships C) basic partnerships D) club programs E) selective relationships
Answer: B customer satisfaction
88) Greater consumer control means that companies can no longer rely on ________. A) promoting brand-consumer interaction B) marketing by intrusion C) creating market offerings and messages that involve consumers D) developing marketing concepts with an outside-in perspective E) marketing by attraction
Answer: B marketing by intrusion
129) A church targeting different demographic groups to increase attendance is an example of ________. A) for-profit marketing B) not-for-profit marketing C) societal marketing D) customer evangelism E) caring capitalism
Answer: B not-for-profit marketing
73) Which of the following is currently the fastest-growing form of marketing? A) consumer-generated marketing B) online marketing C) mass media marketing D) social marketing E) word-of-mouth marketing
Answer: B online marketing
79) It is most accurate to say that when customers purchase products they act on ________ as they judge values and costs. A) objective value B) perceived value C) customer lifetime value D) company image E) society's interests
Answer: B perceived value
115) 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. A) product B) production C) selling D) marketing E) societal marketing
Answer: B production
95) The portion of the customer's purchasing that a company gets in its product categories is known as ________. A) customer-perceived value B) share of customer C) customer insight D) consumption function E) induced consumption
Answer: B share of customer
98) Keith, a clothing store owner, offers product suggestions to customers based on their current purchases. Which of the following is Keith trying to increase? A) shared value B) share of customer C) social responsibility D) customer-generated marketing E) customer loyalty
Answer: B share of customer
131) 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. A) ethical B) social marketing C) for-profit D) consumer-generated E) differentiated
Answer: B social marketing
75) Governmental agencies are becoming more involved in marketing as the years pass. When a local government advertises keeping the area's streams and water supply cleaner, it is involved in ________. A) green marketing B) social marketing campaigns C) demarketing D) environmental marketing E) partnership marketing
Answer: B social marketing campaigns
130) Ben & Jerry's challenges all stakeholders, including employees, top management, and even ice cream scoopers in their stores, to consider individual and community welfare in their day-to-day decisions. Actions such as this by companies seizing the opportunity to do well by doing good reflects ________. A) environmentalism B) social responsibility C) profit marketing D) partnership management E) myopia
Answer: B social responsibility
66) ________ is one of the best ways to increase share of customer. A) Targeting new customers B) Using bait and switch C) Cross-selling D) Relationship selling E) Partnership marketing
Answer: C Cross-selling
97) ________ is one of the best ways to increase share of customer. A) Targeting new customers B) Using bait and switch C) Cross-selling D) Divesting E) Partnership marketing
Answer: C Cross-selling
72) Which of the following statements about the Internet is most accurate? A) Companies are cautiously using the Internet to build closer relationships with customers and marketing partners alike. B) After the dot-com meltdown of 2000, fewer consumers are buying products and/or services online. C) The Internet makes it easy for consumers to view, interact with, and create marketing content. D) Consumer e-commerce looks promising, but business-to-business e-commerce is declining. E) Web 2.0 involves a less balanced approach to online marketing than the original dot-com boom did.
Answer: C The Internet makes it easy for consumers to view, interact with, and create marketing content.
68) Which of the following is the total combined customer lifetime values of all a company's current and potential customers? A) share of customer B) customer lifetime value C) customer equity D) profitability E) share of market
Answer: C customer equity
99) Which of the following refers to the total combined customer lifetime value of all of the company's current and potential customers? A) share of customer B) marketing mix C) customer equity D) target market E) customer-perceived value
Answer: C customer equity
76) Building and maintaining profitable customer relationships by delivering superior customer value and satisfaction is called ________. A) customer lifetime value B) customer-perceived value C) customer relationship management D) partner relationship management E) customer equity
Answer: C customer relationship management
87) The marketing world is most likely embracing ________ because consumers wield greater power now with many platforms for airing and sharing their brand views with other consumers. A) partner relationship management B) supply chain management C) customer-managed relationships D) market segmentation E) consumer ethnocentrism
Answer: C customer-managed relationships
122) 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 ________. A) loyalty B) relationship marketing C) customer-perceived value D) social relationships E) a societal marketing campaign
Answer: C customer-perceived value
112) To avoid traffic gridlock in large metro areas, a community might use ________ to discourage travelers from driving during peak commuting hours. A) target marketing B) market segmentation C) demarketing D) marketing E) the production concept
Answer: C demarketing
74) Today almost every company, small and large, is affected in some way by which of the following? A) the societal marketing concept B) not-for-profit marketing C) global competition D) customer-generated marketing E) caring capitalism
Answer: C global competition
83) Which of the following strategies would a company most likely use to increase customer satisfaction? A) decreasing the variety of offered services B) divesting C) lowering prices D) "firing" unprofitable customers E) limiting customer experiences with a brand
Answer: C lowering prices
134) Renovations of the guest rooms at the Seagull Terrace and plans to add an indoor pool area are examples of the ________ concept. A) selling B) marketing C) product D) production E) societal marketing
Answer: C product
114) Jolene's firm markets preplanning services for a mortician. She finds that most of her target market wants to avoid discussing their future funeral needs, and she must somehow first get their attention. Jolene's firm is most likely practicing the ________. A) production concept B) marketing concept C) selling concept D) relationship concept E) societal marketing concept
Answer: C selling concept
Refer to the scenario below to answer the following questions. Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small, seaside motel to a thriving year-round resort in just a few years. Atop a bluff overlooking the Maine coast, Seagull Terrace had attracted thousands of visits during the summer months, but then faced a tremendous downturn in business during the winter months. "But, given the industry in the nearby towns, very little year-round competition, and our close proximity to Portland," Carol added, "I couldn't understand why seasonality had to hit Seagull Terrace so hard!" So Carol spent her first winter devising a new marketing plan. She put together a promotional package designed to attract business travelers year-round. Carol's plan, then, involved a seasonal promotional gimmickto be implemented from early winter to late spring-that would attract the same numbers as the large summer crowd. Her idea worked! During her second winter, Carol greeted numerous business travelers-both satisfied repeat guests as well as new guests who had been snagged by her promotional appeals. "We still have a long way to go," Carol admitted. "Our delicatessen offers delicious entrees, but we'd like to expand that. We provide health club privileges off-site, but we'd like to eventually provide our own. These are goals I hope to achieve in a few years. Our first project, however, included a renovation of our guest rooms and I'm quite proud of the results." Carol then added, "Actually there are so many possibilities! With an indoor pool area, I will eventually offer weekend get-aways throughout winter."
Refer to the scenario below to answer the following question(s). Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small, seaside motel to a thriving year-round resort in just a few years. Atop a cliff overlooking the Maine coast, Seagull Terrace had attracted thousands of visitors during summer, but then faced a tremendous downturn in business during winter. "But, given the established industries in the nearby towns, very little year-round competition, and our close proximity to Portland," Carol added, "I couldn't understand why seasonality had to hit Seagull Terrace so hard!" So Carol spent her first winter devising a new marketing plan. She put together a promotional package designed to attract business travelers year-round. Carol's plan also involved a seasonal promotional gimmick—to be implemented from early winter to late spring—that would attract the same numbers as the large summer crowd. Her idea worked! During her second winter, Carol greeted numerous business travelers—both satisfied repeat guests as well as new guests who had been snagged by her promotional appeals. "We still have a long way to go," Carol admitted. "Our delicatessen offers entrees that are a part of the local cuisine, but we'd like to expand that. We provide health club privileges off-site, but we'd like to eventually provide our own. These are goals I hope to achieve in a few years. Our first project, however, included a renovation of our guest rooms and I'm quite proud of the results." Carol then added, "Actually there are so many possibilities. With an indoor pool area, I will eventually offer weekend getaways throughout winter."
32) Which of the following reflects the marketing concept philosophy? A) "We don't have a marketing department; we have a customer department." B) "We're in the business of making and selling superior products." C) "We build them so you can buy them." D) "When it's profits versus customers' needs, profits will always win out." E) "You won't find a better deal anywhere."
Answer: A "We don't have a marketing department; we have a customer department."
20) Which customer question is answered by a company's value proposition? A) "Why should I buy your brand rather than a competitor's?" B) "How does your brand benefit me and society?" C) "What are the costs and benefits of your brand?" D) "What kind of experience will I have with products and services associated with this brand?" E) "What are the benefits of being a loyal consumer of your brand?"
Answer: A "Why should I buy your brand rather than a competitor's?"
60) The final step in the marketing process is ________. A) capturing value from customers B) creating customer loyalty C) creating customer lifetime value D) understanding the marketplace E) designing a customer-driven marketing strategy
Answer: A capturing value from customers
40) Of the following, which is the most important concept of modern marketing? A) customer relationship management B) societal marketing C) consumer-generated marketing D) properly trained salespeople E) low prices
Answer: A customer relationship management
47) A room upgrade offered by a hotel to a guest who often stays in the hotel is an example of a ________. A) frequency marketing program B) basic customer relationship C) club marketing program D) partner relationship management technique E) structural benefit
Answer: A frequency marketing program
13) A(n) ________ is the set of actual and potential buyers of a product. A) market B) audience C) group D) segment E) exchange
Answer: A market
10) A ________ is some combination of products, services, information, or experiences provided to consumers to satisfy a need or want. A) market offering B) value proposition C) brand positioning D) market segment E) market mix
Answer: A market offering
9) What do companies call a set of benefits that they promise to consumers to satisfy their needs? A) market offering B) value proposition C) demand satisfaction D) need proposition E) evoked set
Answer: A market offering
17) The art and science of choosing target markets and building profitable relationships with them is called ________. A) marketing management B) positioning C) segmentation D) selling E) differentiation
Answer: A marketing management
30) Herb Kelleher of Southwest Airlines used the marketing concept in his successful organization. Having a customer department rather than a marketing department, as suggested by Kelleher, is an example of a(n) ________ perspective. A) outside-in B) external C) inside-out D) modern E) traditional
Answer: A outside-in
56) To create customer value and build strong customer relationships, marketers know they cannot go it alone; therefore, they practice ________. A) partner relationship management B) database marketing C) attractive Web site design D) customer equity E) consumer-generated marketing
Answer: A partner relationship management
42) Customer-perceived value is determined by a customer's ________ of the benefits and costs of a market offering relative to those of competing offers. A) personal assessment B) rational expectations C) accurate assessment D) objective evaluation E) emotional understanding
Answer: A personal assessment
23) 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. A) product B) production C) customer D) marketing E) promotion
Answer: A product
41) 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. A) product B) production C) selling D) marketing E) societal marketing
Answer: A product
21) Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain? A) production concept B) product concept C) selling concept D) marketing concept E) social marketing concept
Answer: A production concept
104) Carol Veldt's plan also involves a seasonal promotional gimmick that she wants to promote aggressively. This is an example of the ________ concept. A) selling B) marketing C) product D) production E) societal marketing
Answer: A selling
58) Through ________, many companies today are strengthening their connections to all partners, from providers of raw materials to components to final products that are delivered to final buyers. A) supply chain management B) direct marketing C) partnership relationship marketing D) customized marketing E) equity marketing
Answer: A supply chain management
62) Advertising Age, a magazine for advertising professionals, recently gave its Ad Agency of the Year award to ________. A) the consumer B) on-line marketers C) Frito-Lay D) Coca-Cola E) YouTube
Answer: A the consumer
12) ________ is the act of obtaining a desired object from someone by offering something in return. A) A value proposition B) Exchange C) Bribery D) Value creation E) Donation
Answer: B Exchange
65) Beyond simply retaining good customers, marketers want to constantly increase their "share of customer." What does this mean in marketing terms? A) Marketers want to increase their market share. B) Marketers want to increase the share they get of the customer's purchasing in their product categories. C) Marketers want to increase the profit margin with this target market. D) Marketers want to continuously increase their customers' levels of satisfaction. E) Marketers want to turn satisfied customers into delighted customers.
Answer: B Marketers want to increase the share they get of the customer's purchasing in their product categories.
7) ________ are human needs as shaped by individual personality and culture. A) Needs B) Wants C) Demands D) Values E) Exchanges
Answer: B Wants
7) ________ are human needs that are shaped by culture and individual personality. A) Necessities B) Wants C) Demands D) Values E) Exchanges
Answer: B Wants
48) iRobot, the makers of Roomba, have involved their customers in product development, marketing, and technical support in an effort to foster which of the following? A) basic relationships B) customer delight C) selective relationship management D) customer-perceived value E) frequency marketing programs
Answer: B customer delight
45) Which of the following is the term for customers who make repeat purchases and tell others about their positive experiences with a product or service? A) satisfied customers B) customer evangelists C) butterflies D) full partners E) social customers
Answer: B customer evangelists
41) Building, keeping, and growing profitable relationships by delivering customer value and satisfaction is called ________. A) customer lifetime value B) customer perceived value C) customer relationship management D) database marketing E) societal marketing
Answer: C customer relationship management
34) Marie Ortiz enjoys her work at Futuristic Designs, Inc. Her organization understands and anticipates customer needs even better than customers themselves do and creates products and services to meet current and future wants and demands. Marie's firm practices ________ marketing. A) customer-driven B) customer-driving C) relationship D) donor E) social
Answer: B customer-driving
35) When customers don't know what they want or don't even know what's possible, the most effective strategy is ________ marketing. A) customer-driven B) customer-driving C) societal D) production E) product
Answer: B customer-driving
52) When customers don't know what they want or don't even know what's possible, the most effective marketing strategy is ________ marketing. A) customer-driven B) customer-driving C) societal D) ambush E) affinity
Answer: B customer-driving
8) When backed by buying power, wants become ________. A) social needs B) demands C) physical needs D) self-esteem needs E) exchanges
Answer: B demands
2) According to the opening scenario, the Tide marketing team is MOST concerned about which of the following? A) maintaining its brand share B) fostering customers' emotional connections with their product C) advertising their product's benefits D) comparing the effectiveness of their product to other brands E) incorporating consumer-generated marketing in the marketing mix
Answer: B fostering customers' emotional connections with their product
55) Greater consumer control means that companies must rely more on marketing by ________ than by ________. A) interruption; involvement B) interaction; intrusion C) socialization; information D) producing; selling E) inspiration; competition
Answer: B interaction; intrusion
32) 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 ________. A) marketing mixes B) market segments C) value propositions D) market offerings E) marketing intermediaries
Answer: B market segments
40) 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. A) product B) production C) selling D) marketing E) societal marketing
Answer: B production
64) When an airline goes after a "share of travel" from its customers, it is attempting to increase ________. A) customer lifetime value B) share of customer C) total customer spending D) customer satisfaction E) customer ownership
Answer: B share of customer
67) Amazon.com leverages relationships with its 35 million customers by offering them music, videos, gifts, toys, consumer electronics, and office products, among other items. Based on previous purchase history, the company recommends related CDs, books, videos, or other products that might interest a customer. This most directly helps Amazon.com capture a greater ________. A) customer lifetime value B) share of customer C) profit margin D) share of market E) customer equity
Answer: B share of customer
43) It is most accurate to say that customers buy from stores and firms that offer which of the following? A) the highest value for the dollar B) the highest customer-perceived value C) the highest level of customer satisfaction D) the most attractive company image E) the most concern for society's interests
Answer: B the highest customer-perceived value
1) Which of the following is NOT an accurate description of modern marketing? A) Marketing is the creation of value for customers. B) Marketing involves managing profitable customer relationships. C) Marketing emphasizes selling and advertising exclusively. D) Marketing involves satisfying customers' needs. E) Marketing is building value-laden exchange relationships with customers.
Answer: C Marketing emphasizes selling and advertising exclusively.
63) Which of the following is an example of consumer-generated marketing? A) Toyota's presence in online communities B) Nike's Nike Plus running Web site C) MasterCard's use of "Priceless" commercials shot by customers D) Neiman Marcus's InCircle Rewards program for its best customers E) The Lexus Covenant aimed at creating customer delight
Answer: C MasterCard's use of "Priceless" commercials shot by customers
1) All of the following are accurate descriptions of modern marketing, EXCEPT which one? A) Marketing is the creation of value for customers. B) Marketing is managing profitable customer relationships. C) Selling and advertising are synonymous with marketing. D) Marketing involves satisfying customers' needs. E) Marketing is used by for-profit and not-for-profit organizations.
Answer: C Selling and advertising are synonymous with marketing.
54) ________ 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. A) Ambush marketing B) Evangelism marketing C) Sustainable marketing D) Database marketing E) Affinity marketing
Answer: C Sustainable marketing
52) The Niketown running club that organizes twice weekly evening runs and follow-up meetings in the Nike Store is an example of which of the following? A) a frequency marketing program B) a basic customer relationship C) a club marketing program D) a partner relationship E) a structural benefit provided for top customers
Answer: C a club marketing program
38) The three areas of consideration that should be balanced in the societal marketing concept are consumer wants, society's interests, and ________. A) human welfare B) want satisfaction C) company profits D) short-run wants E) long-term needs
Answer: C company profits
53) The societal marketing concept seeks to establish a balance between ________. A) customer lifetime value and customer equity B) an inside-out perspective and an outside-in perspective C) consumer short-run wants and consumer long-run welfare D) marketing mixes and market offerings E) customer-driven marketing and customer-driving marketing
Answer: C consumer short-run wants and consumer long-run welfare
9) 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) ________. A) need B) necessity C) demand D) exchange E) transaction
Answer: C demand
11) When marketers set low expectations for a market offering, the biggest risk they run is ________. A) disappointing loyal customers B) decreasing customer satisfaction C) failing to attract enough customers D) failing to understand their customers' needs E) incorrectly identifying a target market
Answer: C failing to attract enough customers
12) When marketers set low expectations for a market offering, they run the risk of ________. A) disappointing loyal customers B) having to use an outside-in rather than an inside-out perspective C) failing to attract enough customers D) failing to understand their customers' needs E) incorrectly identifying a target market
Answer: C failing to attract enough customers
49) In which of the following situations has a company most actively turned its consumers into marketing partners? A) American Airlines awards frequent flyer points to returning customers. B) Paige Premium Denim jeans provide a superior quality and a perfect fit. C) iRobot invites enthusiastic Roomba owners to develop and share their own programs and uses for the company's robotic vacuum. D) Best Buy distinguishes between its best customers, called angels, and its less profitable customers, called demons, stocking merchandise to appeal to separate groups of its angels. E) Toyota develops a marketing presence on social networks and other online communities.
Answer: C iRobot invites enthusiastic Roomba owners to develop and share their own programs and uses for the company's robotic vacuum.
28) A firm that uses the selling concept takes a(n) ________ approach. A) outside-in B) myopic C) inside-out D) societal E) customer service
Answer: C inside-out
48) A firm that uses the selling concept takes a(n) ________ approach. A) outside-in B) niche marketing C) inside-out D) societal marketing E) customer-driven
Answer: C inside-out
36) The societal marketing concept seeks to establish a balance between consumer short-run wants and consumer ________. A) short-run costs and profits B) short-run ethics C) long-run welfare D) immediate health E) value propositions
Answer: C long-run welfare
46) Which of the following strategies would a company most likely use to increase customer satisfaction? A) decreasing the variety of offered services B) demarketing C) lowering prices D) "firing" unprofitable customers E) limiting customer experiences with a brand
Answer: C lowering prices
3) According to management guru Peter Drucker, "The aim of marketing is to ________." A) create customer value B) identify customer demands C) make selling unnecessary D) set realistic customer expectations E) sell products
Answer: C make selling unnecessary
39) The set of marketing tools a firm uses to implement its marketing strategy is called the ________. A) promotion mix B) product mix C) marketing mix D) TQM E) marketing effort
Answer: C marketing mix
56) The set of marketing tools a firm uses to implement its marketing strategy is called the ________. A) promotion mix B) product mix C) marketing mix D) market offering E) marketing effort
Answer: C marketing mix
51) Pete Sanchez, a recent graduate of business school, has a different approach than his marketing manager, who believes in keeping customers at arm's length and using mass media advertising. Pete knows that today few successful firms still practice true ________ and are instead turning to selective relationship management. A) club marketing B) frequency marketing C) mass marketing D) customer satisfaction E) market segmentation
Answer: C mass marketing
44) 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 ________. A) production concept B) marketing concept C) selling concept D) product concept E) societal marketing concept
Answer: C selling concept
5) Which steps of the five-step marketing process are about understanding customers, creating customer value, and building strong customer relationships? A) the first two only B) the first three only C) the first four only D) the last three only E) the last four only
Answer: C the first four
47) Which of the following uses a customer-centered "sense-and-respond" philosophy rather than a product-centered "make-and-sell" philosophy? A) market segmentation B) the production concept C) the marketing concept D) the inside-out perspective E) marketing myopia
Answer: C the marketing concept
46) 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? A) the product concept B) the production concept C) the selling concept D) the marketing concept E) the societal marketing concept
Answer: D
45) The selling concept is typically practiced ________. A) to balance consumers' wants, company's requirements, and the society's long-run interests B) with products that offer the most in terms of quality, performance, and innovative features C) when the company focuses on building long-term customer relationships D) with goods that buyers normally do not think of buying E) by customer-driven companies
Answer: D ) with goods that buyers normally do not think of buying
58) Which of the following statements reflects the marketing concept? A) Focus on making continuous product improvements. B) Undertake a large-scale selling and promotion effort. C) Emphasize an inside-out perspective. D) Consider customer focus and value as the paths to sales and profits. E) Focus on a product-centered make-and-sell philosophy.
Answer: D Consider customer focus and value as the paths to sales and profits.
44) ________ is defined as the customer's evaluation of the differences between all the benefits and all the costs of a marketing offer relative to those of competing offers. A) Customer equity B) Customer satisfaction C) Customer evangelism D) Customer-perceived value E) Marketing myopia
Answer: D Customer-perceived value
42) Which of the following statements is true of the selling concept? A) It requires minimum promotion efforts. B) It creates long-term, profitable customer relationships. C) It takes an outside-in perspective. D) It is typically practiced with unsought goods. E) It follows the customer-centered sense-and-respond philosophy.
Answer: D It is typically practiced with unsought goods.
4) ________ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through value creation and exchange. A) Selling B) Advertising C) Bartering D) Marketing E) Negotiating
Answer: D Marketing
15) Which of the following is the most likely result of a marketing strategy that attempts to serve all potential customers? A) All customers will be delighted. B) Customer-perceived value will increase. C) Customer evangelists will become unpaid salespersons for the service or product. D) Not all customers will be satisfied. E) The company will need to follow up with a demarketing campaign.
Answer: D Not all customers will be satisfied.
57) Which of the following is the most likely result of a marketing strategy that attempts to serve all potential customers? A) All customers will be delighted. B) Customer-perceived value will increase. C) All customers will directly turn into customer evangelists. D) Not all customers will be satisfied. E) Customers will not show interest in any other company's products.
Answer: D Not all customers will be satisfied.
33) Customer-driven marketing usually works well when ________ and when customers ________. A) a clear need exists; are difficult to identify B) customers know what they want; are loyal to the brand C) a firm can deliver the goods desired; are thoroughly researched D) a clear need exists; know what they want E) a need exists; don't know what they want
Answer: D a clear need exists; know what they want
19) Which of the following is the set of benefits a company promises to deliver the customer to satisfy their needs? A) a money-back guarantee B) low pricing C) good customer service D) a value proposition E) an attribute
Answer: D a value proposition
4) According to the five-step model of the marketing process, which of the following is the final step in creating value for customers? A) designing a customer-driven marketing strategy B) understanding the marketplace and customer needs C) constructing an integrated marketing program that delivers superior value D) building profitable relationships and creating customer delight E) capturing value from customers to create profit and customer equity
Answer: D building profitable relationships and creating customer delight
61) Stew Leonard, the owner of a highly successful regional supermarket chain, reacts adversely to losing a single customer sale. He feels that this amounts to losing the entire stream of future purchases that a customer is likely to make if he or she remains in the area. Stew Leonard's concern is an illustration of which of the following? A) share of customer B) market share C) profitability D) customer lifetime value E) market share maintenance
Answer: D customer lifetime value
39) Which of the following is the aim of the product concept? A) improve the marketing of a firm's best products B) market only those products with high customer appeal C) focus on the target market and make products that meet those customers' demands D) focus on making continuous product improvements E) ensure that product promotion has the highest priority
Answer: D focus on making continuous product improvements
27) Which 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) product B) production C) selling D) marketing E) equity
Answer: D marketing
10) Which of the following refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs? A) selling myopia B) marketing management C) value proposition D) marketing myopia E) the product concept
Answer: D marketing myopia
25) "Build a better mousetrap and the world will beat a path to your door" reflects the ________ concept. A) production B) marketing C) selling D) product E) target marketing
Answer: D product
50) Using customer profitability analysis to weed out unprofitable customers and target winning ones for pampering is referred to as ________. A) customer relationship management B) positioning C) database marketing D) selective relationship management E) marketing myopia
Answer: D selective relationship management
26) Which concept calls for aggressive selling and focuses on generating transactions to obtain profitable sales? A) marketing B) production C) product D) selling E) societal marketing
Answer: D selling
37) Which concept holds that firms must strive to deliver value to customers in a way that maintains or improves the consumer's and society's well-being? A) marketing B) selling C) product D) societal marketing E) equity
Answer: D societal marketing
59) Suzie Chan strengthens her company's connections by treating suppliers of raw materials, vendors, and distributors as partners in delivering customer value. What type of management is she practicing? A) outside partnering B) inside partnering C) marketing D) supply chain E) customer development
Answer: D supply chain
31) 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 ________. A) ambush marketing B) social marketing C) societal marketing D) target marketing E) cause marketing
Answer: D target marketing
43) Which of the following marketing orientations calls for aggressive promotional efforts and focuses on creating transactions rather than long-term customer relationships? A) the marketing concept B) the production concept C) the product concept D) the selling concept E) the societal marketing concept
Answer: D the selling concept
53) Which of the following has NOT contributed to the deeper, more interactive nature of today's customer relationships? A) e-mail B) Web sites C) online social networks D) traditional advertising E) video sharing
Answer: D traditional advertising
5) According to the five-step model of the marketing process, a company should ________ before designing a customer-driven marketing strategy. A) determine how to deliver superior value to customers B) build profitable relationships with customers C) use customer relationship management to create full partnerships with key customers D) understand the marketplace and customer needs and wants E) construct an integrated marketing program
Answer: D understand the marketplace and customer needs and wants
6) According to the simple five-step model of the marketing process, a company needs to ________ before designing a customer-driven marketing strategy. A) determine how to deliver superior value B) build profitable relationships with customers C) use customer relationship management to create full partnerships with key customers D) understand the marketplace and customer needs and wants E) construct key components of a marketing program
Answer: D understand the marketplace and customer needs and wants
31) Though often criticized, the selling concept is particularly appropriate and effective with which of the following types of products? A) convenience B) shopping C) specialty D) unsought E) demarketed
Answer: D unsought
3) Marketing is defined as a social and managerial process by which individuals and organizations obtain what they need and want through ________. A) research and development B) innovation and creativity C) manufacturing efficiencies D) value creation and exchange E) sales and revenue creation
Answer: D value creation and exchange
55) 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. A) marketing concept B) product concept C) production concept D) societal marketing concept E) selling concept
Answer: D) societal marketing concept
54) Which of the following best explains why consumers have greater power and control in today's marketplace? A) The production concept and competition have lowered prices. B) Implementation of the product concept has resulted in continually improving products. C) Customer-driven marketing creates products and services that meet customers' future needs. D) More companies are implementing social marketing and weighing long-term costs and benefits. E) Through new communication technologies, customers have more access to information and more methods of sharing their opinions with other customers.
Answer: E Through new communication technologies, customers have more access to information and more methods of sharing their opinions with other customers
57) In today's world, marketing should be done by ________ employees in an organization. A) only marketing B) only marketing, sales, and customer-support C) only sales and technology D) only management and marketing E) all
Answer: E all
22) Which of the following marketing management concepts is most likely to lead to marketing myopia? A) customer-driven marketing B) customer-driving marketing C) social marketing D) selling E) production
Answer: E production
29) According to the production concept, consumers will favor products that are ________ and ________. A) satisfying; quality focused B) advertised; affordable C) in high demand; hard to find D) segmented; convenient E) available; affordable
Answer: E vailable; affordable
37) Which of the following statements is true of the production concept? A) It considers customer focus and value to be the paths to sales and profits. B) It follows the customer-centered sense-and-respond philosophy. C) It takes an outside-in perspective. D) It calls for sustainable marketing. E) It leads to companies focusing too narrowly on their own operations.
Answer: E) It leads to companies focusing too narrowly on their own operations.
6) Marketing is managing profitable customer relationships.
Answer: TRUE