marketing chapter 1

Which customer question is answered by a company's value proposition?

"Why should I buy your brand rather than a competitor's?"

120. 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 ________. a. product concept b. production concept c. selling concept d. marketing concept e. societal marketing concept

(a; p. 10; Challenging) {AACSB: Analytic Thinking}

26. The ________ concept is aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer high quality, performance, and innovative features. a. product b. production c. customer d. marketing e. promotion

(a; p. 10; Moderate)

33. 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."

(a; p. 11; Moderate) {AACSB: Reflective Thinking}

41. Perhaps the most important concept of modern marketing is ________. a. customer relationship management b. e-mail advertising c. a quality Web site d. properly trained sales people e. low prices

(a; p. 13; Moderate) {AACSB: Communication}

43. 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 value perception b. approximated expectations c. accurate assessment d. objective evaluation e. emotional understanding

(a; p. 14; Moderate) {AACSB: Reflective Thinking}

52. Frequent flyer programs offered by airlines are an example of a ________. a. frequency marketing program b. basic customer relationship c. club marketing program d. consumer relationship management technique e. structural benefit provided for top customers

(a; p. 16; Easy)

58. 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. designing attractive websites d. customer equity e. all of the above

(a; p. 20; Moderate) {AACSB: Communication}

61. 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

(a; p. 22; Easy)

60. Through ________, many companies today are strengthening their connections to all partners, from providers of raw materials to components to final products that are carried to final buyers. a. supply chain management b. direct marketing c. partnership relationship marketing d. customized marketing e. deviated marketing

(a; p. 22; Easy) {AACSB: Communication}

66. The ultimate aim of customer relationship management is to produce ________. a. customer equity b. market share c. sales volume d. a reliable database e. profits

(a; p. 24; Moderate)

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

(b; p. 11; Moderate) {AACSB: Reflective Thinking}

49. 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

(b; p. 14; Easy) {AACSB: Communication}

46. Customers buy from stores and firms that offer the highest ________. a. value for the dollar b. customer perceived value c. level of customer satisfaction d. company image e. concern for society's interests

(b; p. 14; Moderate)

56. 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

(b; p. 19; Moderate) {AACSB: Communication}

63. 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 loyalty e. customer ownership

(b; p. 22; Easy) {AACSB: Reflective Thinking}

67. A highly profitable, short term customer is a ________. a. true friend b. butterfly c. stranger d. barnacle e. true believer

(b; p. 24; Moderate}

72. As part of the rapid globalization of today's economy, companies are selling more locally produced goods in international markets and ________. a. taking a local view of their industry b. purchasing more supplies abroad c. reducing competition within their industry d. downplaying concerns for social responsibility e. competing solely in traditional marketplaces

(b; p. 27; Moderate) {AACSB: Multicultural and Diversity}

70. 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

(b; p. 27; Moderate) {AACSB: Use of IT}

73. 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. ethics b. social responsibility c. profit marketing d. marketing e. myopia

(b; p. 28; Moderate) {AACSB: Ethical Reasoning}

74. A church targeting different demographic groups to increase attendance is an example of ________. a. for-profit marketing b. not-for-profit marketing c. mindless marketing d. ethics in marketing e. societal marketing

(b; p. 28; Moderate){AACSB: Communication}

32. A firm that uses the selling concept takes a(n) ________ approach. a. outside-in b. myopic c. inside-out d. marketing concept e. customer service

(c; p. 11; Moderate)

31. According to the authors of your text, ________ is viewed not as "hunting," but as "gardening." That is, a firm has to develop the right products for its customers. a. selling b. production c. marketing d. retailing e. advertising

(c; p. 11; Moderate) {AACSB: Communication}

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

(c; p. 12; Easy) {AACSB; Ethical Reasoning}

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

(c; p. 12; Moderate) {AACSB: Ethical Reasoning}

40. 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

(c; p. 13; Moderate)

42. Building, keeping, and growing profitable value-laden relationships with all customers of a company is called ________. a. customer lifetime value b. customer perceived value c. customer relationship management d. database marketing e. societal marketing

(c; p. 13; Moderate) {AACSB: Communication}

48. FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these aforementioned benefits against the monetary and psychic costs of using the service, they are acting upon _____. a. loyalty b. relationship marketing c. perceived customer value d. social relationships e. a societal marketing campaign

(c; p. 14; Challenging) {AACSB: Reflective Thinking}

50. Which of the following strategies might a company use to increase customer satisfaction? a. decreasing variety of services offered b. demarketing c. lowering prices d. "firing" unprofitable customers e. limiting experiences with a brand

(c; p. 16; Easy)

51. The Niketown running club that organizes twice weekly evening runs is an example of a ________. a. frequency marketing program b. basic customer relationship c. club marketing program d. consumer relationship management technique e. structural benefit provided for top customers

(c; p. 17; Easy) {AACSB; Reflective Thinking}

57. 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. BMW's use of brand-related consumer videos posted on video-sharing Web sites d. Neiman Marcus's InCircle Rewards program for its best customers e. The Lexus Covenant aimed at creating customer delight

(c; p. 19; Moderate) {AACSB: Use of IT}

64. Amazon.com leverages relationships with its 35 million customers by offering them music, videos, gifts, toys, consumer electronics, and office products, among other product items. Based on previous purchase history, the company recommends related CDs, books, or videos that might be of interest. This helps Amazon.com capture a greater _____. a. market share b. customer lifetime value c. share of customer d. profitability e. customer base

(c; p. 23; Moderate)

65. _____ is the total combined customer lifetime values of all the company's current and potential customers. a. Share of customer b. Customer lifetime value c. Customer equity d. Profitability e. Share of market

(c; p. 24; Easy) Sidebar item

69. 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. The Internet is still in its infancy with few consumers buying products and/or services online. c. The Internet allows anytime, anywhere connections to information, entertainment, and communication. 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.

(c; p. 26; Easy) {AACSB: Use of IT}

71. Today almost every company, small and large, is affected in some way by ________. a. the societal marketing concept b. customer relationship management c. global competition d. not-for-profit marketing e. customer-generated marketing

(c; p. 27; Moderate) {AACSB: Multicultural and Diversity}

75. The first four steps of the marketing process focus on ________. a. understanding the market b. delivering customer service c. creating value for the customers d. understanding customer demands and needs e. capturing value from customers

(c; p. 29; Moderate) {AACSB: Communication}

116. 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 ________. a. need b. necessity c. demand d. satisfier e. transaction

(c; p. 7; Easy) {AACSB: Reflective Thinking}

118. 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

(c; p. 9; Challenging) {AACSB: Reflective Thinking}

117. Shawn McCork has an interesting job. He is involved in getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. What is Shawn's job? a. general manager b. supervisor c. marketing manager d. sales manager e. top manager

(c; p. 9; Moderate) {AACSB: Reflective Thinking}

119. 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 ________. a. product concept b. marketing concept c. societal marketing concept d. production concept e. selling concept

(d; p. 10; Challenging) {AACSB: Analytic Thinking}

29. The ________ 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

(d; p. 10; Easy)

27. The product concept says that a company should ________. 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. devote its energy to making continuous product improvements e. make promoting products the top priority

(d; p. 10; Moderate)

28. "Build a better mousetrap and the world will beat a path to your door" reflects the ________. a. production concept b. marketing concept c. selling concept d. product concept e. target marketing

(d; p. 10; Moderate) {AACSB: Reflective Thinking}

34. Customer-driven marketing usually works well when ________ and when customers ________. a. a clear need exists; are easy to identify b. customers know what they want; can afford it c. a firm can deliver the goods desired; are thoroughly researched d. a clear need exists; know what they want e. a want exists; cannot afford it

(d; p. 11; Moderate) {AACSB: Communication}

37. The ________ concept holds that firms must strive to deliver value to customers in a way that maintains or improves both the consumer's and society's well being. a. marketing b. selling c. product d. societal marketing e. equity

(d; p. 12; Easy) {AACSB: Ethical Reasoning}

39. According to the authors of your text, 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

(d; p. 12; Moderate) {AACSB: Ethical Reasoning}

47. _____ is defined as the customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers. a. Customer relationship management b. Customer satisfaction c. Customer evangelism d. Customer perceived value e. Marketing myopia

(d; p. 14; Easy)

45. Delivering superior customer value and customer satisfaction is necessary for building lasting ________. a. customer satisfaction b. customer databases c. market share d. customer relationships e. profits

(d; p. 14; Easy) {AACSB: Communication}

53. 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. prospecting

(d; p. 17; Easy)

54. 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

(d; p. 18; Moderate) {AACSB: Use of IT}

62. Stew Leonard, owner/operator of supermarkets, 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/she remains in the area. This is an illustration of ________. a. share of customer b. market share c. profitability d. customer lifetime value e. market share maintenance

(d; p. 22; Moderate) {AACSB: Reflective Thinking}

68. The authors of your text classify customers into four relationship groups, according to the customers' profitability and projected loyalty. _____ are the customers with the highest profit potential and strong loyalty. a. Barnacles b. Strangers c. Butterflies d. True friends e. Big fish

(d; p. 25; Easy)

30. The ________ concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do. a. product b. production c. selling d. equity e. marketing

(e; p. 11; Easy) {AACSB: Communication}

44. To capture the full essence of customer relationship management, which of the following should a marketing manager take into consideration? a. owning customers for life b. capturing a customer's lifetime value c. building overall customer equity d. creating a sense of community surrounding a brand e. all of the above

(e; p. 14; Moderate) {AACSB: Communication}

55. 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-driving marketing creates products and services that meet customers' future needs. d. More companies are implementing societal 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.

(e; p. 18; Moderate) {AACSB: Use of IT}

59. In today's world, marketing should be done by ________ employees in an organization. a. marketing b. marketing, sales, and customer-support c. sales and technology d. management e. all

(e; p.21; Easy)

_____ is the set of actual and potential buyers of a product.

A market

_____ is the set of benefits a company promises to deliver its consumers to satisfy their needs.

A value proposition

_____ is the act of obtaining a desired object from someone by offering something in return.

Exchange

Which of the following is a likely result of a marketing strategy that attempts to serve all customers?

Few customers will be satisfied.

All of the following are accurate descriptions of modern marketing today, except which one?

Selling and advertising are synonymous with marketing.

Which of the following phrases reflects the marketing concept?

This is what I want, won't you please make it?

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?

barnacles

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?

basic relationships

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. Instead of focusing on each individual transaction, Gina and her staff put a priority on ________.

capturing customer lifetime value

Elisandra, a marketing manager at a regional chain restaurant, has decided to create 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 ________.

consumer-generated marketing

127. 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.

customer delight

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 ________.

customer expectations; company performance

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?

customer relationship management

Which of the following is central to any definition of marketing?"

customer relationships

Sally purchased Brand X lotion. In comparing her perception of how the lotion performed to her expectations for Brand X lotion, Sally was measuring her level of ________.

customer satisfaction

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.

customer-driving

When backed by buying power, wants become ________.

demands

In the case of excess demand, ________ may be required to reduce the number of customers or to shift demand temporarily or permanently.

demarketing

When marketers set low expectations for a market offering, they run the risk of ________.

failing to attract enough customers

The ________ steps of the five-step marketing process are about understanding customers, creating customer value, and building strong customer relationships.

first four

According to management guru Peter Drucker, "The aim of marketing is to ________."

make selling unnecessary

At home, at school, at work, and at the local supermarket, Americans see ________ almost everywhere they go.

marketing

Consumer research, product development, communication, distribution, pricing, and service are all core ________ activities.

marketing

_____ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through value creation and exchange.

marketing

The art and science of choosing target markets and building profitable relationships with them is called ________.

marketing managemen

_____ refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs.

marketing myopia

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.

mass marketing

Which of the following is an example of a type of market offering?

persons, ideas, information, experiences

Which of the following marketing management concepts is most likely to lead to marketing myopia?

production

Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain?

production concept

In addition to attracting new customers and creating transactions, the goal of marketing is to ________ customers and grow their business.

retain

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 ________.

selective relationship management

Jolene's firm believes that consumers will not buy enough of its products unless the firm undertakes a large-scale selling and promotion effort. Jolene's firm is practicing the ________.

selling concept

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.

social marketing

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?

supply chain

Family Dollar stores profitably focusing on buyers who have relatively modest means is an example of ________.

target marketing

Selecting which segments of a population of customers to serve is called ________.

target marketing

According to the simple five-step model of the marketing process, a company needs to ________ before

understand the marketplace and customer needs and wants

_____ are human needs as shaped by individual personality and culture.

wants