Marketing Final Exam Ch. 1

Which of the following customer questions is answered by a company's value proposition? A) "Why should I buy your brand rather than a competitor's?" B) "What is your company's estimated customer equity?" C) "What are the costs involved in the production of your brand?" D) "What is the budget allocated by your company for research and development?" E) "What is the financial stability of your company?"

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

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

A. market offering

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

A. product

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

B. basic relationships

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

B. market segments

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

B. production

Customer satisfaction is a goal that companies strive to earn. Companies can achieve customer delight by ________. A) regularly putting products on sale B) promising only what they can deliver and then delivering more than they promise C) offering promotional deals such as "buy one and get one free" D) creating contests with exciting prizes E) using celebrities to advertise the products

B. promising only what they can deliver and then delivering more than they promise

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

B. share of customer

The technology that involves machines that think and learn like humans is known as A) big data B) analytics C) artificial intelligence D) the Internet of things E) digital thinking

C. artificial intelligence

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

C. demand

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

C. failing to attract enough costumers

In which of the following situations has a company most actively embraced customer-managed relationships? A) American Airlines awards frequent flyer points to returning customers. B) Paige Premium Denim jeans provide superior quality and perfect fit. C) iRobot invites enthusiastic Roomba owners to develop and share their own uses for the company's robotic vacuum cleaner. D) Best Buy distinguishes between its best customers and its less profitable customers, stocking merchandise to appeal to each group. E) Toyota develops a marketing presence on social networks and other online communities.

C. iRobot invites enthusiastic Roomba owners to develop and share their own uses for the company's robotic vacuum cleaner.

When are sellers most effective? A) when they focus more on their specific products and services B) when they focus more on the price of their products and services C) when they focus more on the benefits and experiences produced by their products and services D) when they focus more on where their products and services can be purchased E) when they focus more on cost to produce the product or service

C. when they focus more on the benefits and experiences produced by their products and services

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.

D. Not all customers will be satisfied.

A seller pursues a full partnership with what kind of customers? A) many customers regardless of profitability B) many high-margin customers C) many low-margin customers D) a few high-margin customers E) a few low-margin customers

D. a few high-margin customers

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

D. building profitable relationships and creating customer delight

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

D. marketing myopia

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. societal marketing concept

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

D. understand the marketplace and customer needs/wants

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

E. capturing customer lifetime value

A marketer wants to increase its "share of customer." It can do this by offering a greater variety to customers, or by ________. A) decreasing prices B) increasing discounts and coupons C) sending samples directly to customers D) introducing customers to "brand evangelists" E) creating programs to cross-sell and up-sell to market more products and service to existing customers

E. creating programs to cross-sell and up-sell to market more products and service to existing customers

Company X, a manufacturer of office supplies, follows the selling concept. Explain how the firm may lose sight of customer relationships with this marketing orientation.

The selling concept of Company X focuses on selling its office supplies rather than making what the market wants; such a strategy creates sales transactions but not long-term customer relationships. The company would most likely have a faulty assumption that customers who are persuaded to buy the product will like it or that they will buy the product again later even if they weren't really initially satisfied. Company X will not foster customer loyalty with this approach.

Discuss the challenges and advantages of new communication technologies for marketers as they work to build relationships with their customers.

Through the internet and related technologies such as e-mail, blogs, websites, online communities, and online social networks, today's marketers incorporate interactive approaches that help build targeted, two way customer relationships.

Explain how and why marketers go beyond selling a product or service to create brand experiences.

because consumers want a brand they can connect and feel towards.

What should sellers consider if they wish to avoid marketing myopia?

the particular benefits and experiences desired by their customers, and not just pay attention to the specific products they offer.