test 1 chap 2
_____ refers to the feelings that are experienced during consumption activities or associated with specific objects. a. Cognition b. Internalization c. Affect d. Value e. Utilitarian value
Affect
The approximate worth of a customer to a company in economic terms is known as _____. a. net present value (NPV) b. customer lifetime value (CLV) c. customer present value (CPV) d. customer future value (CFV) e. customer value (CV)
CLV
USAA is an insurance company that believes customers form relationships with companies as opposed to companies merely conducting individual transactions with customers. For this reason, USAA rewards loyal customers in the form of dividends at the end of each year. The longer a customer has been with the company, the greater the dividend received. USAA is implementing _____. a. consumer value management (CVM) b. hedonic value c. marketing relationship management (MRM) d. customer relationship management (CRM) e. relationship quality management (RQM)
CRM
Which orientation means each customer represents a potential stream of resources rather than just a single sale? a. product orientation b. CVF orientation c. hedonic orientation d. CRM orientation e. utilitarian orientation
CRM orientation
The _____ represents consumer behavior theory illustrating factors that shape consumption-related behaviors that ultimately determine the value associated with consumption. a. Consumer Behavior Framework (CBF) b. Consumer Value Framework (CVF) c. Consumption Process Framework (CPF) d. Customer Relationship Framework (CRF) e. Marketing-Consumer Framework (MCF)
CVF
Internal influences on the consumption process include factors such as service quality.
False
The Consumer Behavior Framework (CBF) represents consumer behavior theory illustrating factors that shape consumption-related behaviors and ultimately determine the value associated with consumption.
False
Learning, perception, memory, and attitudes are examples of elements comprising the personality of a consumer.
Fasle
_____ are things that go on inside of the mind and heart of the consumer and influence value. a. External influences b. Innate influences c. Internal influences d. Social influences e. Personal influences
Internal influences
A CRM system allows a firm to be more customer-focused.
True
A basic CRM premise is that customers form relationships with companies as opposed to companies conducting individual transactions with customers.
True
Atmospherics, time and timing, and conditions are situational influences on consumer
True
Every Disney employee is thought of and trained to be a host or hostess with the express goal of making sure all guests feel good when they are there. Which of the follow refers to the feelings visitors experience while they are there and long after they've left? a. affect b. cognition c. internalization d. environment e. satisfaction
affect
Over which factor depicted in the Consumer Value Framework does the marketer have the most control? a. motivation b. atmospherics c. social class d. lifestyles e. perception
atmospherics
Kyle purchased a Macbook Pro and an extended warranty. He also purchased one-on-one training to learn how to use the computer. This is an example of a(n) _____. a. augmented product b. complete product c. extended product d. total product e. segmented product
augmented
The actual physical product purchased plus any services such as installation and warranties necessary to use the product and obtain its benefits is called the _____. a. augmented product b. secondary product c. complete product d. enhanced product e. value proposition
augmented product
A automobile marketer is interested in the psychological influences on potential buyers of luxury automobiles. Which of the following would this researcher be interested in studying? a. lifestyles of luxury car buyers b. whether buyers are liberal or conservative c. stage in family lifecycle of luxury car buyers d. buyers' attitudes toward different brands e. all of the above
buyers attitude
Hannah believes that Mac computers are better than Windows-based computers because they are not as vulnerable to computer viruses. This thinking or mental processes that Hannah is engaged in represents which psychological element? a. personality b. affect c. lifestyle d. individual differences e. cognition
cognition
Which of the following refers to the thinking or mental processes that go on as we process and store things that can become knowledge? a. cognition b. schema c. affect d. synergy e. internalization
cognition
38. Which strategy deals with how the firm will be defined and sets general goals? a. corporate strategy b. marketing strategy c. tactical strategy d. top-level strategy e. meta-strategy
corporate strategy
All of the following are elements of consumer psychology EXCEPT _____. a. learning b. attitude c. culture d. information processing e. memory
culture
Samantha tracks detailed information about customers so more customer-oriented decisions can be made, hopefully leading to longer-lasting relationships with customers. Samantha is involved in _____. a. customer relationship management b. marketing management c. consumer value management d. quality management e. internal marketing management
customer relationship management
What do the x- and y-axes on a perceptual map represent? a. how competitors perform on the two most important attributes to consumers - price and quality b. the ideal combination of attributes and the actual combination of attributes of all competitors in the market c. dimensions used to separate competitors on a specific characteristic d. growth rate of the market and market shares of each competitor e. factors used to identify market segments
dimensions
All of the following are examples of benefits received from consumption EXCEPT _____. a. quality b. convenience c. prestige d. experience e. effort
effort
The degree to which a consumer is sensitive to changes in some product characteristic is known as _____. a. elasticity b. differentiation c. sensitivity d. segmentation e. positioning
elasticity
All of the following are examples of "What you give," or sacrifices, in the value equation EXCEPT _____. a. time b. opportunity c. emotions d. image e. experience
experience
A company would be foolish to turn away a customer.
false
An act of consumption cannot provide both utilitarian and hedonic
false
Customer lifetime value is equal to sales attributed to particular customer minus the costs associated with satisfying that customer over the lifetime of that customer.
false
Ideal points on a perceptual map represent each marketer's product offering.
false
In the value equation, sacrifice includes things such as quality, prestige, opportunity, and image.
false
Individual differences have little effect on the value experienced by consumers and the reaction consumers have to consumption
false
Internal influences include the social and cultural aspects of life as a consumer
false
Marketing strategy deals with how the firm will be defined and sets general goals.
false
One conceptual difference between utilitarian value and hedonic value is that utilitarian value is an end in and of itself rather than a means to an end.
false
Price is the best indicator of value.
false
Sensitivity represents the degree to which a consumer is sensitive to changes in some product characteristic.
false
Target marketing is the separation of a market into groups based on the different demand curves associated with each group.
false
The best strategic focus should be centered on the products offered.
false
The most basic truth of economics is that as price increases, quantity demanded will decrease.
false
The presence of music in an environment is a social influence that may shape consumer behavior.
false
The segment or segments of a market that a company services is called the focal market
false
To deliver superior customer value, different business units within the firm must have the same marketing strategy.
false
Two types of value are primary value and secondary value.
false
Melanie and her daughter enjoy shopping together even if they do not purchase anything. For them, shopping is an end in and of itself, not just a means to an end. Which type of value are they experiencing? a. utilitarian value b. pleasure-seeking value c. hedonic value d. experiential value e. augmented value
hedonic
_____ value is the immediate gratification that comes from experiencing some activity. a. Hedonic b. Utilitarian c. End-state d. Process e. Experiential
hedonic
How do hedonic and utilitarian value differ? a. Utilitarian value is an end in and of itself rather than a means to an end. b. Hedonic value is very emotional and subjective in nature. c. When a consumer does something to obtain hedonic value, the action is usually very easy to explain objectively. d. Utilitarian value is immediate and hedonic value is delayed. e. Hedonic value is more positive and longer-lasting than utilitarian value.
hedonic value is very emotional and subjective in nature
Which of the following on a perceptual map represents the combination of product characteristics that provide the most value to an individual consumer or market segment? a. touch point b. maximum point c. optimum point d. ideal point e. slope intercept
ideal point
Characteristic traits of individuals, including personality and lifestyles, are known as _____. a. individual differences b. individual identifiers c. discriminators d. value enhancers e. exemplars
individual differences
Which of the following is an internal influence on consumer value? a. costs b. learning c. social class d. time/timing e. family
learning
Community Trust Bank is analyzing its customer data to determine if groups other than simply consumer and business customers can be identified. It is looking at the frequency of branch visits, use of ATMs, online banking activity, loan activity, and account balances for each customer. The bank has identified three groups of customers based on these factors and is considering offering different products to better meet the needs of each group. What marketing concept do these different groups of customers represent? a. target marketing b. market segmentation c. positioning d. marketing audit e. environmental scanning
market segmentation
_____ is the separation of a market into groups based on the different demand curves associated with each group. a. Market zoning b. Market augmentation c. Market positioning d. Market segmentation e. Market selection
market segmentation
A company that views itself in a product business, rather than in a value, or benefits producing business runs the risk of developing _____, which could cause the company to go out of business if technology makes the product obsolete. a. marketing myopia b. cognitive dissonance c. negative affect d. marketing dissonance e. marketing disconnect
myopia
Black & Decker is well known for power tools. However, if the company thinks of itself merely as a power tool company instead of a company that delivers the benefits users want, such as cut materials or holes in materials, it could be taking a short-sighted focus of its business. If a technologically-advanced device is developed that could replace the need for power tools to deliver those benefits, this company could go out of business. That is, Black & Decker could suffer from _____. a. brain drain b. cognitive dissonance c. marketing disconnect d. marketing myopia e. product devaluation
myopia
All of the following are considered part of a consumer's personality EXCEPT _____. a. traits b. values c. lifestyles d. motivation e. perception
perception
A cosmetic manufacturer was looking at a graphical display of how women perceived different brands of cosmetics and was dismayed to learn that its brand was clustered with brands that are targeted toward older women, not the younger women the marketer was trying to reach. The graphical depiction of the positioning of competing brands the marketer was using is called a(n) _____. a. perceptual map b. BCG matrix c. competitive matrix d. competitive array e. positioning plot
perceptual map
Which of the following is used to depict graphically the positioning of competing products? a. product map b. schema c. demand curve d. product map e. perceptual map
perceptual map
All of the following are elements of the marketing mix EXCEPT _____. a. price b. planning c. promotion d. distribution e. product
planning
_____ refers to the way a product is perceived by a consumer. a. Product differentiation b. Product augmentation c. Product positioning d. Product segmentation e. Product perception
positioning
Consumers do not view all soft drinks as identical to one another. Some prefer Coca-Cola, while others will only drink Pepsi-Cola. Still others will not drink either cola and drink only non-caffeinated soft drinks. This marketplace condition in which consumers do not view all competing products as identical to one another is called _____. a. product differentiation b. product variation c. market segmentation d. perceptual differentiation e. selective perception
product differentiation
_____ refers to a marketplace condition in which consumers do not view all competing products as identical to one another. a. Product positioning b. Product differentiation c. Marketing positioning d. Competitive advantage e. Market differentiation
product differentiation
Which of the following is an external influence on consumer value? a. personal values b. lifestyles c. needs d. perception e. reference groups
reference groups
When a consumer realizes high value from an exchange with a company, _____ improves. a. relationship quality b. internalization c. emotional attachment d. augmented quality e. elasticity
relationship quality
_____ reflects the connectedness between a consumer and a retailer, a brand, or service provider. a. Hedonic value b. Interconnectivity c. Synergy d. Consumption e. Relationship quality
relationship quality
All of the following are examples of marketing tactics EXCEPT _____. a. determining the quality level of the product b. setting the price of a product or service c. creating advertising for a service d. distributing through discount stores e. setting the company sales goal
sales goal
It's the day before Christmas and Mark has not even started shopping for gifts for his family. He rushes to the mall and buys the first things he sees. Which of the following is most likely having the greatest impact on Mark's behavior? a. social influences b. situational influences c. socio-environmental factors d. hedonic factors e. perceptional influences
situational
Things unique to a time or place that can affect consumer decision making and the value received from consumption are known as _____. a. situational influences b. temporal factors c. social influences d. internal factors e. socio-environmental factors
situational influences
Which environment includes the people and groups who help shape a consumer's everyday experiences? a. emotional environment b. internal environment c. social environment d. macro environment e. micro environment
social
Haley is a member of a sorority. She uses certain brands because they are popular with the others in her sorority. Her sorority sisters are part of the _____ that influences Haley's everyday experiences. a. internal environment b. value network c. relationship network d. emotional environment e. social environment
social environment
A product with backward sloping demand _____ a. displays a negative price-quantity demanded relationship b. means consumers are more sensitive to price than to other product factors c. displays a neutral price-quantity demanded relationship d. displays a positive price-quantity demanded relationship e. displays a positive price-quality relationship
splays a positive price quantity demanded relationship
A company has formed a team to decide the direction the organization should take over the next five years. The focus of this team is to come up with a plan that will better position the company to take advantage of opportunities and avoid threats in the changing environment. This team is involved in developing the _____ for the organization. a. mission b. focus c. tactics d. blueprint e. strategy
strategy
A planned way of doing something is known as a(n) _____. a. objective b. mission c. goal d. utilization e. strategy
strategy
A university realizes it needs to increase revenue in the face of severe budget cuts due to the weak economy. The school decides to pursue students who have some college but have not completed their degrees. To do this, the university is offering online degree programs, charges extra fees for these students, offers a wide selection of online courses each semester, and advertises on billboards, on radio, on television, and in newspapers throughout the state. The school also sends direct mail letters to students who were previously enrolled at the school but did not complete their degree. The courses, the tuition, online delivery, and promotion are examples of _____. a. corporate strategy b. value enhancement c. marketing tactics d. marketing augmentation e. task implementation
tactics
The market segment a company will serve with a specific marketing mix is referred to as the _____. a. target market b. primary market c. segmented market d. selected market e. potential market
target market
Vann's is a company that manufactures and markets shoes for serious skateboarders. These consumers are predominantly males, 10-25 years old. This market segment that Vann's serves with a specific marketing mix is called its _____. a. preferred market b. optimum market c. target market d. selected market e. segmented market
target market
Customer lifetime value is equal to the net present value of the stream of profits over a customer's lifetime plus _____. a. the costs associated with satisfying that customer b. the costs associated with keeping that customer for more than 10 years c. the retention rate for all customers d. opportunity cost saved from having loyal customers e. the worth attributed to the equity a good customer can bring
the worst attributed to the equity a good customer can bring
The business practice wherein companies operate with the understanding that products provide value in multiple ways is called the _____. a. augmented product concept b. total value concept c. marketing concept d. product concept e. multifaceted product concept
total value
21. Utilitarian value is derived from a product that helps the consumer solve problems and accomplish tasks that are a part of being a consumer.
true
A positioning map is used to depict graphically the positioning of competing products
true
A strategy is a planned way of doing something.
true
Both consumers and marketers enter exchanges seeking value.
true
Cognition refers to the thinking or mental processes that go on as we process and store things that can become knowledge.
true
Companies embracing the total value concept demonstrate an understanding that products provide value in multiple ways.
true
Consumer segments exist because different consumers do not value different alternatives the same way.
true
Consumers play a role in the creation of the value offered by marketers.
true
Customer lifetime value (CLV) represents the approximate worth of a customer to a company in economic terms
true
Hedonic value is the immediate gratification that comes from experiencing some activity
true
Individual differences are characteristic traits of individuals, including personality and lifestyle.
true
Marketing tactics are ways marketing management is implemented.
true
Marketing tactics include price, promotion, product, and distribution decisions
true
People and groups who help shape a consumer's everyday experiences are part of the social environment.
true
Positioning refers to the way a product is perceived by a consumer.
true
Product differentiation is a marketplace condition in which consumers do not view all competing products as identical to one anther.
true
Products are multifaceted and can provide value in many ways.
true
Purchasing a satellite radio for your car and the satellite radio service necessary to use the radio is an example of an augmented product.
true
Relationship quality is function of a consumer's perceived value of the relationship.
true
Relationship quality reflects the connectedness between a consumer and a retailer, brand, or service provider.
true
Strategies exist at more than one level in an organization.
true
The core concept of consumer behavior is value
true
The market for any product is the sum of the demand existing in individual groups or segments of consumers.
true
The marketing mix is the combination of product, pricing, promotion, and distribution strategies used to position some product offering or brand in the marketplace
true
Value equals what you get minus what you give.
true
Value is a personal assessment of the net worth obtained from an activity.
true
Josh needed new soccer cleats, so he visited several stores to find the right ones. He purchased a pair from Soccer Locker and was satisfied that his needs were met. Which of the following best describes the type of value Josh received? a. end-state value b. hedonic value c. terminal value d. utilitarian value e. purchase value
utilitarian
_____ value is derived from a product that helps a consumer solve problems and accomplish tasks. a. Utilitarian b. Functional c. Terminal d. Purchase e. End-state
utilitarian
Two main types of value are _____. a. internal and external b. utilitarian and hedonic c. personal and social d. primary and secondary e. temporal and stable
utilitarian and hedonic
Which concept is at the heart of the Consumer Value Framework and the focus of marketing efforts? a. value b. consumption c. personality d. culture e. quality
value
_____ is a personal assessment of the net worth obtained from an activity. a. Value b. Customer lifetime value c. Prestige d. Quality e. Effort
value
The realization that a consumer is necessary and must play a part in order to produce value is the major premise underlying the concept of _____. a. synergy b. value integration c. value internalization d. value co-creation e. dyadic valuation
value co creation
Which of the following represents the value equation? a. Value = What you get/What you give b. Value = What you give/What you get c. Value = What you get - What you give d. Value = What you give - What you get e. Value = What you give + What you get
what you get - what you give