Chapter 1 MAR 223

A ________ is characterized by the gearing up of manufacturing skills in order to expand production. A) marketing concept B) product concept C) selling concept D) production concept E) societal concept

D

Marketing myopia causes companies to focus on crucial changes in the marketplace as they look through the window rather than into the mirror.

False

Marketing-oriented companies try to persuade consumers to buy what the firm has already produced, regardless of whether those goods satisfy consumers' needs.

False

Most products do not have substitutes or similar products in the marketplace, so having a distinct benefit is usually unimportant for marketers.

False

Post-purchase benefits such as warranties and return policies are part of the place element of the marketing mix.

False

The Physicians Committee for Responsible Medicine targeted Burger King in television commercials that blame it for heart disease.

False

Antoine is in charge of customer acquisition and retention. He allocates more of his budget to customer retention than customer acquisition. Why does Antoine's decision make sense? A) Low customer turnover is correlated with higher profits. B) High customer turnover is correlated with higher profits. C) Low customer acquisition is correlated with higher profits. D) Low customer acquisition is correlated with higher employee satisfaction. E) High customer acquisition is correlated with higher employees satisfaction.

A

The production concept makes sense for a business when ________. A) consumers are more interested in product availability than in product variation B) consumers are interested in obtaining the product that offers them the highest quality, best performance, and most features C) consumers have changing needs and insist that those needs be satisfied D) consumers are unlikely to buy the product unless they are persuaded to do so E) consumers are not sensitive to price

A

Tracy licensed a new software product that enables her to figure out when the same person is accessing her company's website via a mobile phone, tablet, and/or computer so she can keep track of their behavior and target them accordingly. This is an example of ________. A) cross-screen marketing B) cyberstalking C) time shifting D) mobile advertising E) commercial blanketing

A

Tripp runs a product development division at a software company. His division was focused on producing a word processing software that performs better and has more features than any competitive product, so they added every feature that was technically feasible. However, they found that consumers were satisfied with fewer features and unwilling to pay more for the advanced software. Tripp and his team suffered from ________. A) marketing myopia B) over-segmentation C) target marketing D) technology devotion E) marketing vision

A

Which of the following determinants of customer satisfaction with online websites and merchants while shopping online is characterized by the customer's willingness to count on the merchant to successfully complete the purchase transaction and feeling the merchant is reliable and honest? A) trust B) engagement C) network D) interactivity E) adaptation

A

Which of the four disciplines that helps shape our understanding of consumer behavior is defined as the study of the human mind and the mental factors that impact behavior? A) psychology B) sociology C) anthropology D) communication E) economics

A

The example in the text notes San Francisco City Attorney sued ________ because the company chose to market caffeinated energy drinks to children despite alleged health risks. A) Monster Beverage Corp. B) Hansen's Natural Beverage Corp. C) The Coca-Cola Company D) Pepsico E) Red Bull GmbH

A. Monster

Cookies are used to track who is interested in what online and sold on exchanges like ________ to other companies who are interested in targeting people based on their interests. A) eXelate and BlueKai B) cheapair.com and Hilton C) Amazon.com D) informationex.com E) IdeaLog.com

A. eXelate and BlueKai

Gloria always uses Tide laundry detergent and stocks up whenever she sees a sale. As a result, she rarely pays full price for detergent. On the customer profitability pyramid, Gloria is most likely to fall into the ________ tier. A) gold B) lead C) silver D) iron E) platinum

A. gold

Of the four Ps of the marketing mix, price includes ________. A) payment methods B) public relations C) warranties D) distribution centers E) packaging

A. payment methods

In the CAR MINI CASE, Ford's business approach exhibited a ________. A) production orientation B) marketing orientation C) societal marketing orientation D) product orientation E) selling orientation

A. production orientation

Customer profitability-focused marketing ________. A) tracks costs and revenues of individual customers and then categorizes those consumers into tiers based on consumption behaviors that are specific to the company's offerings B) minimizes the cost of production in order to offer the product at the best price possible C) aggressively markets products to consumers who do not necessarily think that they need the product D) continually updates the product without regard to the needs of the consumer E) invests money in attracting customers that are very sensitive to price and are not loyal to any given brand

A. tracks costs and revenues of individual customers and then categorizes those consumers into tiers based on consumption behaviors that are specific to the company's offerings

An individual's perception of the performance of a product or service in relation to one's expectations is known as ________. A) market segmentation B) customer satisfaction C) market targeting D) product placement E) product promotion

B

In the RYAN'S RUNNERS MINI CASE, Ryan decides to focus his attention on that segment of the market that is interested in running. This selection of a specific market segment is known as ________. A) social marketing B) market targeting C) product placement D) market segmentation E) product positioning

B

Of the four Ps of the marketing mix, promotion includes ________. A) payment methods B) public relations C) warranties D) discounts E) product size

B

Ryan runs a store that caters to athletes. He divides the athletic market into different subsets of shoe consumers, such as runners, basketball players, and golfers. Ryan decides to focus his attention on that segment of the market that is interested in running. This selection of a specific market segment is known as ________. A) social marketing B) market targeting C) product placement D) market segmentation E) product positioning

B

The focus of the ________ was to sell more of what the manufacturing department was able to produce. A) marketing concept B) selling concept C) product concept D) production concept E) market orientation

B

The key assumption underlying the marketing concept is that ________. A) if manufacturers make a product, consumers will buy it B) a company must determine the needs and wants of specific target markets and satisfy consumers' needs better than the competition C) the primary focus of a business should be producing as much as it can, in the cheapest way possible D) consumers are most interested in obtaining generic products at low prices E) consumers are unlikely to buy a product unless they are aggressively persuaded to do so

B

Transatlantic Airlines identifies the most profitable customers and offers them specific incentives, a practice known as ________. A) social marketing B) customer profitability-focused marketing C) market targeting D) market segmentation E) product positioning

B

When consumers use online sites to compare models and brands of products and click for more technical information, companies gain information about ________. A) competitors' prices B) product attributes that consumers consider the most important C) buying patterns D) market research E) self-reported data

B

Which of the following customer retention measurement methods is described: the percentage of customers at the beginning of the year that are still customers by the end of the year? A) customer valuation B) retention rate C) complaint analysis D) defection rate E) benchmark

B

Which of the following determinants of customer satisfaction with online websites and merchants while shopping online is characterized by an attractive site design; enjoyable shopping at the site; and an inviting, comfortable site? A) trust B) engagement C) network D) interactivity E) adaptation

B

Which of the following is NOT one of the benefits of retaining loyal customers? A) Loyal customers are more likely to purchase high margin supplemental products. B) Loyal customers are more price-sensitive. C) It is less expensive to service existing customers. D) Loyal customer refer other customers and engage in positive word-of-mouth. E) Loyal customers make employees' jobs easier and more satisfying.

B

Which of the four disciplines that helps shape our understanding of consumer behavior is defined as the study of the development, structure, functioning and problems of human society? A) psychology B) sociology C) anthropology D) communication E) economics

B

Which tier of customers is most likely to get "fired" by a firm? A) gold B) lead C) silver D) iron E) platinum

B

________ refers to the development of a distinct image for the product in the mind of the consumer. A) Targeting B) Positioning C) Placement D) Promotion E) Segmenting

B

Megan uses Bed Head hair products and enthusiastically recommends them to others any time she receives complements on her hair. With regard to hair products, Megan is best described as a(n) ________. A) ambivalent consumer B) apostle C) hostage D) terrorist E) mercenary

B. apostle

The actions that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs is known as ________. A) the production orientation B) consumer behavior C) narrowcasting D) positioning E) the marketing mix

B. consumer behavior

________ is defined as the ratio between the customer's perceived benefits and the resources used to obtain those benefits. A) Customer satisfaction B) Customer value C) Customer relationship management D) Consumer decision making E) Consumer marketing

B. cust value

Successful positioning focuses on communicating the ________. A) segments that the company views as prospective customers B) distinct benefits that the product provides C) retail shelf space the product should occupy D) competing offerings that are available E) product instructions for use

B.distinct benefits that the product provides

"Me too" products are ________. A) products that need to be bought along with the original product B) secondary products that customers need to be reminded to buy C) products that lack a unique image or benefit in the eyes of consumers D) products aimed at helping children learn to share with each other E) products that are included for free with the desired product

C

Emerging digital technologies are allowing consumers to have more power than ever before. This means that now customers ________. A) are required to buy goods and services from local vendors B) are limited in the time of day that they are able to buy products C) can locate the best prices for products or services D) are more limited in the range of products that they can purchase E) are forced to acquire used items through middlemen instead of directly from the original owner

C

In the CAR MINI CASE, which of the following elements of the marketing mix was central to Ford's business model? A) promotion B) product C) price D) placement E) production

C

Matt's Mobile Services has designed a cell phone plan especially for tech-savvy teens who are heavy cell-phone users and live in households earning over $150,000 per year. In tailoring the plan for a specific group of consumers based on their particular needs, Matt's Mobile Services has provided an example of ________. A) societal marketing B) broadcasting C) market targeting D) the selling orientation E) the product concept

C

The 4 Ps of the marketing mix are ________. A) product/service, price, place, people B) potential, price, place, people C) product/service, price, place, promotion D) product/service, promotion, potential, price E) price, purchase, placement, product/service

C

The process and tools used to study consumer behavior are characterized by the term ________. A) data analysis B) data collection C) consumer research D) marketing communication E) consumer complexes

C

The three distinct but interlocking steps of the consumer decision-making process are ________. A) input, analysis, and output B) environment, search, and evaluation C) input, process, and output D) analysis, decision making, and output E) analysis, process, and output

C

When advertising to teens, Matt's Mobile Services focuses its messaging on how its expansive network enables subscribers to stay connected with friends at all times, so subscribers are always accessible and "in the loop" on the latest social news. This is an example of ________. A) a unique social proposition B) societal marketing C) communicating the benefits the product provides D) product placement E) broadcasting

C

Which of the four disciplines that helps shape our understanding of consumer behavior compares human societies' culture and development? A) psychology B) sociology C) anthropology D) communication E) economics

C

________ is a process that links the consumer, customer and public to the marketer through information in order to identify marketing opportunities and problems, evaluate marketing actions, and evaluate marketing strategies' performances. A) Data analysis B) Data collection C) Market research D) Marketing communication E) Consumer complexes

C

When Samsung incorporated twitter comments about the iPhone into its advertising pitch, it was taking advantage of which facet of the interactive exchange? A) the ability to get instant reactions to marketers' messages B) one-way communications C) consumer-generated content D) scanner panel data E) technological innovations

C. consumer-generated content

Customers have different expectations when they purchase a Lexus than when they purchase a Hyundai. These expectations affect ________. A) market segmentation B) the value proposition C) customer satisfaction D) the corporate vision E) the market targeting

C. cust satisfaction

In the AIRLINE MINI CASE, when Transatlantic upgrades the seat assignment of especially loyal customers, the airline is attempting to increase ________. A) net revenue B) production capacity C) customer satisfaction D) social responsibility E) profit margins

C. cust satisfaction

An example of a company that applied the production concept in the early twentieth century is ________. A) Google B) Microsoft C) Ford D) General Motors E) Apple

C. ford

Norman dislikes the health insurance plan provided by his employer, but is unwilling to switch to a different health insurer because obtaining private health insurance would be significantly more expensive than the employer-subsidized plan in which he is currently enrolled. With regard to health insurance, Norman is best described as a(n) ________. A) loyalist B) apostle C) hostage D) terrorist E) mercenary

C. hostage

In the consumer decision-making process, the ________ stage influences the consumer's recognition of a product need. A) analysis B) evaluation C) input D) process E) output

C. input

In the RYAN'S RUNNERS MINI CASE, which of the following is most likely to represent the unique selling proposition at Ryan's Runners? A) Ryan's Runners offers the widest selection of athletic shoes in town. B) Ryan's Runners is the price leader in running gear. C) At Ryan's Runners, runners can find high quality products and get recommendations from employees who share their passion for running. D) Ryan's Runners is a place where all athletes can find all the equipment they need for the sport of their interest. E) all of the above

C. runners can find high quality products and get recommendations from employees who share their passion for running.

The selling concept focuses on the needs of the ________ and on existing products, while the marketing concept focuses on the needs of the ________. A) manufacturer; seller B) buyer; manufacturer C) seller; buyer D) seller; manufacturer E) buyer; seller

C. seller , buyer

As consumers spend more time online and have more technological tools that enable them to avoid exposure to TV ads, marketers are ________. A) investing in flashier television advertisements to attract attention to themselves B) buying more air time in an attempt to crowd out their competitors' advertisements C) lobbying for legislation that will prohibit the sale of devices that allow consumers to avoid advertising on the basis that such devices are anti-competitive D) shifting dollars from traditional display advertising to sites like Facebook that can deliver huge audiences E) blocking out any mention of brand names during regular programming

D

Based on the three criteria for successful customization, which of the following is least likely to be effectively customized? A) running shoes B) fountain pens C) sunglasses D) laundry detergent E) an automobile

D

During historical periods when demand exceeded supply, businesses adopted the ________ concept. A) marketing B) technology C) societal D) production E) product

D

In the AIRLINE MINI CASE, by tracking flight searches and developing services to better meet customers' unfulfilled needs, Transatlantic adheres to the ________. A) social marketing concept B) production concept C) selling concept D) marketing concept E) product concept

D

In the CAR MINI CASE, by offering a variety of cars to choose from, General Motors was able to differentiate itself from Ford by demonstrating to consumers that it could offer ________. A) organizational buying power B) compelling consumer research C) an effective marketing mix D) a unique selling proposition E) significantly lower prices

D

In the RYAN'S RUNNERS MINI CASE, by portraying his store as a one-stop-shop for all your running needs, Ryan has developed a distinct image for his store. This is an example of ________. A) segmentation B) targeting C) placement D) positioning E) social marketing

D

In the RYAN'S RUNNERS MINI CASE, the process of dividing the athletic market into different subsets of shoe consumers, such as runners, basketball players, and golfers, is known as ________. A) market targeting B) product placement C) product positioning D) market segmentation E) social marketing

D

Kevin's company owns a factory that can produce 1,000 widgets per week. His primary focus is on getting consumers to purchase as many widgets as possible to ensure that he is maximizing his sales relative to his production capacity. Kevin's business is exhibiting the ________. A) marketing concept B) product concept C) not-for-profit concept D) selling concept E) market orientation

D

Of the four Ps of the marketing mix, place includes ________. A) discounts B) public relations C) warranties D) distribution centers E) packaging

D

Once or twice a year, when Estee Lauder runs a particularly good promotion, Candace buys some new make-up. She typically only spends the minimum required to qualify for the promotion. On the customer profitability pyramid, Candace is most likely to fall into the ________ tier. A) gold B) lead C) silver D) iron E) platinum

D

Ryan runs a store that caters to athletes. He divides the athletic market into different subsets of shoe consumers, such as runners, basketball players, and golfers, which is known as ________. A) market targeting B) product placement C) product positioning D) market segmentation E) social marketing

D

Social media transformed ________ by giving companies a way to easily collect input and customers' preferences. A) photography B) television commercials C) market trust D) market research E) customer bias

D

Socially responsible activities can result in ________. A) improved corporate image among consumers B) improved corporate image among the financial community C) increased sales D) all of the above E) none of the above

D

The ________ concept in business assumes that consumers are mostly interested in product availability at low prices. A) marketing B) societal C) product D) production E) technology

D

The adoption of digital technologies has introduced drastic changes into the business environment, including which of the following? A) Customers are forced to deal with distribution outlets and middlemen in order to obtain goods. B) The exchange between marketers and customers is less interactive than in the past. C) Consumers face more barriers to accessing information. D) Marketers can offer more products and services than ever before. E) Market research has become significantly more difficult.

D

The process of dividing a market into subsets of consumers with common needs or characteristics is known as ________. A) market targeting B) ethical marketing C) product positioning D) market segmentation E) market stewardship

D

Which is NOT one of the benefits of highly satisfied customers? A) They keep purchasing the same products. B) They provide word-of-mouth to others. C) They become customers for life. D) They switch to competitors if offered a somewhat lower price. E) They repeatedly buy the same brand.

D

Which of the following describes Amazon's customers with high bonds and modest purchase levels? A) inertia-driven customers B) transactional customers C) loyal customers D) delighted customers E) fans

D

________ is turning individual consumer transactions into long-term customer relationships by making it in the best interests of customers to stay with the company rather than switch to another firm. A) Market segmentation B) Customer satisfaction C) Market targeting D) Customer retention E) Product promotion

D

Those in favor of socially responsible marketing call on marketers to adopt the societal marketing concept, which requires marketers to ________. A) minimize production costs in order to offer the product at the lowest price possible B) aggressively market all products to all segments of society C) track customer preferences via the Internet to improve customer research databases D) fulfill the needs of the target audience in ways that improve society as a whole, while fulfilling the objectives of the organization E) lobby for government regulation of their industries

D) fulfill the needs of the target audience in ways that improve society as a whole, while fulfilling the objectives of the organization

Walmart's use of Twitter chatter to inform their decision to sell cake pops is an example of social media's impact on ________. A) photography B) television commercials C) market trust D) market research E) customer bias

D. market research

Ryan runs a store that caters to athletes. He portrays his store as a one-stop-shop for all your running needs, so he has developed a distinct image for his store. This is an example of ________. A) segmentation B) targeting C) placement D) positioning E) social marketing

D. positioning

Disney gets its cast members to go out of their way to make people happy by valuing its employees like internal customers, which is also known as ________. A) termination costs B) internal manipulation C) customer gratitude D) customer gratuity E) internal marketing

E

In the CAR MINI CASE, Ford's business strategy focused on ________. A) targeting the market B) positioning its product C) developing a value proposition D) segmenting the market E) minimizing production costs

E

In the RYAN'S RUNNERS MINI CASE, which of the four elements of the marketing mix does Ryan use to differentiate his store in the marketplace? A) place B) positioning C) promotion D) price E) product/service

E

Marketing and consumer behavior stem from the ________, which maintains that the essence of marketing is satisfying consumers' needs, creating value and retaining customers. A) production concept B) product concept C) selling concept D) societal concept E) marketing concept

E

Online companies create a ________: consumers gain information that turns them into sophisticated customers, opportunities to customize products easily, and entertainment content; marketers gain information about consumers that allows them to be more efficient and precise when marketing their products. A) value vacuum B) one-sided transaction C) click-to-buy culture D) divestment opportunity E) value exchange

E

Packaging and warranties are elements of which of the four Ps? A) price B) people C) promotion D) place E) product

E

Tanya and her marketing team at a fast food restaurant are breaking their company's target audience into groups that have shared needs that are different from the needs shared by other groups. They are engaged in ________. A) market targeting B) positioning C) placement D) promotion E) market segmentation

E

Technology enables marketers to do which of the following? A) customize offerings and promotional messages B) offer more effective pricing C) utilize shorter distribution channels D) build long-term relationships with customers E) all of the above

E

When Gary buys ice cream, he typically buys whichever brand is on sale that week. With regard to ice cream, Gary is best described as a(n) ________. A) brand advocate B) apostle C) hostage D) terrorist E) mercenary

E

Which of the following is an example of how the Internet affects prices and distribution? A) Consumers use smart phones to compare prices as they shop, leading to price matching guarantees from retailers. B) Apple distributes iBooks via its digital bookstore, reducing prices of high school textbooks by almost 90%. C) Marketers are using smartphone apps to target shoppers in stores who are looking for information about products. D) Amazon installed Amazon Lockers in grocery, convenience and drugstores that accept packages for customers to pick up later. E) all of the above

E

Which of the following is consistent with the societal marketing concept? A) Fast food restaurants develop offerings with less fat and more nutrients. B) Food marketers advertise foods to young people in a way that does not encourage overeating. C) Marketers do not use professional athletes in liquor or tobacco advertisements because they may serve as role models for young people. D) Marketers avoid featuring unreasonably slim females in their advertising campaigns because of the potential of such images to increase eating disorders. E) All of the above are consistent with the societal marketing concept.

E

Which of the following is considered an example of consumer behavior? A) Janice prefers to buy name-brand pain relievers like Tylenol and Advil, rather than the store brand. B) Javier generally gets gas on Monday mornings on his way to work. C) Jessica prefers to buy her produce from the farmer's market instead of the grocery store. D) Jeremy generally recycles his old newspapers and cardboard boxes. E) All of the above are examples of consumer behavior.

E All of the above are examples of consumer behavior.

Which of the following determinants of customer satisfaction with online websites and merchants while shopping online is characterized by the merchant's ability to match purchase recommendations to one's needs and customize products and advertisements so the customer feels unique and valued? A) trust B) engagement C) network D) interactivity E) adaptation

E. adaptation

The primary objective of providing value to customers continuously and more effectively than the competition is ________. A) to monopolize the market B) to produce a compelling advertising message C) to help recruit a dedicated workforce D) to avoid government regulation of the industry E) to create and to retain highly satisfied customers

E. to create and to retain highly satisfied customers

Companies that focus on understanding customers are able to continue to grow and remain leaders in their industries in spite of increased competition and changing business environments.

True

Consumer behavior includes the behavior that consumers display in searching for, purchasing, evaluating and disposing of products and services.

True

Implementing the marketing concept includes consumer research, market segmentation, a combination of the product, price, place and promotion strategies, providing value, and long-term customer satisfaction and retention.

True

Me-too products lack a unique image or benefit.

True

No matter where we are born, we all have the same biological needs: needs for food, nourishment, water, air and shelter from the environment's elements.

True

The production orientation makes sense in developing countries where the main objective is to make products available to the maximum number of consumers at the lowest prices.

True

The selling concept does not consider customer satisfaction because consumers who are aggressively induced to buy products they do not want or need will not buy them again.

True

The societal marketing concept requires marketers to fulfill the needs of the target audience in ways that improve, preserve and enhance society's well-being and meet business objectives.

True

Researchers have identified two interrelated forms of customer engagement with marketers: ________ and ________. A) customer satisfaction; commercial exchange B) social exchange; commercial exchange C) emotional bonds; customer satisfaction D) customer satisfaction; transaction-based relationships E) emotional bonds; transaction-based relationships

e. emotional bonds; transaction-based relationships

In the consumer decision-making process, the ________ stage focuses on how consumers make decisions. A) analysis B) evaluation C) input D) process E) output

e. output