Marketing - CH1
118) 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
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. A) customer delight B) customer satisfaction C) customer equity D) customer value E) customer loyalty
A
14) ________ is the set of actual and potential buyers of a product. A) A market B) An audience C) A group D) A segment E) An exchange
A
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) societal marketing
A
24) Which of the following marketing management concepts is most closely 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
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 E) Donation
B
121) 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) societal D) donor E) none of the above
B
125) 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 ________. A) customer perceived value B) customer satisfaction C) exchange D) demand E) customer lifetime value
B
128) 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) club programs D) selective relationships E) community relationships
B
50) Greater consumer control means that companies must rely more on marketing by ________ than by ________. A) interruption; involvement B) attraction; intrusion C) socialization; information D) producing; selling E) inspiration; competition
B
8) When backed by buying power, wants become ________. A) social needs B) demands C) physical needs D) self-esteem needs E) exchanges
B
126) Tommy Gray attempts to deliver customer satisfaction every day in his Audio Expressions installation business. The key to this goal is to match the customer-perceived performance of his product with ________. A) company-perceived performance B) customer values C) customer expectations D) relationship levels E) company expectations
C
5) The ________ steps of the five-step marketing process are about understanding customers, creating customer value, and building strong customer relationships. A) first two B) first three C) first four D) last three E) last four
C
2) All of the following are accurate descriptions of modern marketing today, 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.
C) selling and advertising are synonyms of marketing
10) ________ 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
D
117) 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
122) 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
132) 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
D
26) "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
D
32) Customer-driven marketing is most likely to work well when ________ and when customers ________. A) a clear need exists; are difficult to identify B) customers do not know what they want; have limited budgets C) there are few competitors; are concerned about their long-run welfare D) a clear need exists; know what they want E) a want exists; cannot afford it
D
36) 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
D
23) Which of the following marketing management concepts is most likely to lead to marketing myopia? A) customer-driven marketing B) customer-driving marketing C) societal marketing D) selling E) product
E
41) 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
53) 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
9) Which of the following is an example of a type of market offering? A) persons B) ideas C) information D) experiences E) all of the above
E
100)t or f: Large-scale marketing approaches that foster two-way customer relationships are made possible by new communication technologies.
true
77) t or f: The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction.
true
79) t or f:The difference between human needs and wants is that needs are not influenced by marketers.
true
82)t or f: Market offerings can include products, services, information, or experiences offered to a market to satisfy a need or want.
true
97)t or f: 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.
true
102)t or f: ) Consumer-generated marketing, a relatively new phenomenon, has so far had little impact as a marketing force.
false
104)t or f: ) It is cheaper for a company to acquire new customers than to maintain relationships with current customers.
false
105)t or f: Unlike Web 1.0 and 2.0, Web 3.0 is about connecting people with information.
false
76) t or f: Selling is managing profitable customer relationships.
false
78)t or f: Human needs are shaped by culture and individual personality.
false
80)t or f: When backed by buying power, needs become wants.
false
81)t or f: ) Market offerings are limited to physical products.
false
83)t or f: When sellers focus on existing needs and lose sight of underlying customer wants, they suffer from marketing myopia.
false
85)t or f: Only sellers of products, services, and ideas practice marketing, whereas buyers do not.
false
86)t or f: ) Market segmentation is the process of seeking fewer customers and reduced demand for profit maximization.
false
87)t or f: ) Marketing management is interested in serving all customers in every way to remain competitive in today's markets.
false
90)t or f: 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.
false
92)t or f: 92) The major difference between customer-driving marketing and customer-driven marketing is that the customer-driving marketing considers only existing needs.
false
95)t or f: In its broadest sense, customer relationship management (CRM) is a customer data management activity.
false
98)t or f: Customer-perceived value depends on the product's perceived performance relative to a buyer's expectations.
false
123) The Niketown running club that organizes twice weekly evening runs for Nike customers is an example of a ________. A) frequency marketing program B) basic customer relationship C) club marketing program D) consumer-generated marketing program E) structural benefit provided for top customers
C
119) 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 ________. A) production concept B) marketing concept C) selling concept D) relationship concept E) social advertising campaign
C
1) Which of the following is most essential to any definition of marketing? A) demand management B) the production concept C) customer relationships D) making a sale E) making a profit
C
11) When marketers set low expectations for a market offering, they are most likely to run the risk of which of the following? 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
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
130) 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) customer profitability analysis B) customer-managed relationships C) a club marketing program D) partner relationship management E) supply chain management
A
131) 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 ________. A) consumer-generated marketing B) partner relationship management C) customer lifetime value D) community development around a brand E) share of customer
A
21) 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?"
A
22) 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) societal marketing concept
A
31) 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
38) Of the following, which is the most important concept of modern marketing? A) customer relationship management B) e-mail advertising C) mass marketing D) properly trained sales people E) low prices
A
40) Which of the following is determined by a customer's personal evaluation of the benefits and costs of a market offering relative to those of competing offers? A) customer-perceived value B) customer satisfaction C) customer-perceived performance D) customer relationship management E) market segmentation
A
46) 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-generated marketing program E) structural benefit provided for top customers
A
52) Partner relationship management focuses on working with ________ to bring more value to customers. A) partners inside and outside of the company B) competitors C) consumers D) interest groups E) all of the above
A
54) Through ________, many companies today are strengthening their connections to all partners, from providers of raw materials and components to final buyers who purchase final products. A) supply chain management B) direct marketing C) partnership relationship marketing D) customized marketing E) deviated marketing
A
55) 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
56) When the economy tightens, customer loyalty and customer retention become ________ for marketers. A) more important B) less important C) impossible D) long-term but not short-term goals E) short-term but not long-term goals
A
61) The ultimate aim of customer relationship management is to produce ________. A) high customer equity B) high current market share C) steady sales volume D) a reliable database E) satisfied customers
A
72) The social-responsibility and environmental movements are expected to ________ in the future. A) demand more from companies B) demand less from companies C) move away from sustainable marketing D) move toward partner relationship management E) move away from using social networking
A
135) 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 educational and professional, 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
B
15) Consumer research, product development, communication, distribution, pricing, and service are all most accurately described as core ________ activities. A) exchange B) marketing C) management D) production E) customer relationship management
B
33) 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
42) It is most accurate to say that a customer will buy from the company that offers 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
44) 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
58) When an airline goes after a "share of travel" from its customers, it is attempting to increase ________. A) its value proposition B) share of customer C) target markets D) customer variety E) customer ownership
B
62) A highly profitable, short-term customer is a ________. A) true friend B) butterfly C) stranger D) barnacle E) true believer
B
66) During the economic downturn, marketers have been emphasizing the ________ of their products more than ever. A) image B) value C) personality D) safety E) uniqueness
B
69) 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
7) ________ are human needs as shaped by individual personality and culture. A) Deprivations B) Wants C) Demands D) Values E) Exchanges
B
71) 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
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) virtual marketing B) social responsibility C) profit marketing D) marketing E) myopia
B
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
129) 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 this type of true ________ and are instead turning to selective relationship management. A) club marketing B) frequency marketing C) mass marketing D) customer satisfaction E) marketing segmenting
C
13) In addition to attracting new customers and creating transactions, the goal of marketing is to ________ customers and grow the company's business. A) encourage B) entertain C) retain D) recognize E) educate
C
29) According to the authors of your text, the ________ concept is a "sense and respond" philosophy rather than a "make and sell" philosophy. A) product B) production C) marketing D) retailing E) societal marketing
C
3) According to management guru Peter Drucker, "The aim of marketing is to ________." A) create customer demands B) identify customer demands C) make selling unnecessary D) set realistic customer expectations E) sell products
C
30) A firm that uses the selling concept takes a(n) ________ approach. A) outside-in B) customer-driven C) inside-out D) marketing concept E) customer service
C
34) 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
37) 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
39) Building and maintaining profitable value-laden relationships with 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
43) 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) customer-perceived value D) social relationships E) a societal marketing campaign
C
45) Which of the following strategies would a company most likely use to increase customer satisfaction? A) decreasing variety of services offered B) lengthening the supply chain C) lowering prices D) "firing" unprofitable customers E) limiting experiences with a brand
C
49) The marketing world is embracing ________ because consumers can wield greater power and control in the marketplace through communication technologies. A) partner relationship management B) supply chain management C) customer-managed relationships D) market segmentation E) target marketing
C
51) 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
59) 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) value proposition B) customer ownership C) share of customer D) social network E) customer base
C
60) ________ 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
64) Which of the following has been the most common consumer response to the economic downturn that began in 2008? A) spending more on luxury items B) discontinuing any spending on luxury items C) spending less and choosing products more carefully D) spending less but choosing products less carefully E) saving more but spending more on credit cards
C
67) Which of the following statements about the Internet is most accurate? A) Companies are hesitant to use 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 involved a less balanced approach to online marketing than the original dot-com boom did.
C
68) Which version of the Internet has introduced small, fast, and customizable applications that can be accessed through multifunction mobile devices? A) Web 1.0 B) Web 2.0 C) Web 3.0 D) Web 4.0 E) Web 5.0
C
70) It is most accurate to say that today almost every company, small and large, is affected in some way by which of the following? A) the societal marketing concept B) customer relationship management C) global competition D) not-for-profit marketing E) customer-generated marketing
C
75) The first four steps of the marketing process focus on ________. A) understanding the market B) delivering customer service C) creating value for customers D) understanding customer demands and needs E) capturing value from customers
C
120) Which of the following phrases 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) none of the above
D
134) 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
D
16) Which of the following is the most likely result of a marketing strategy that attempts to serve all customers? A) All customers will be delighted. B) Customer-perceived value will be increased. C) Customer evangelists will become unpaid salespersons for the service or product. D) Few customers will be satisfied. E) The company will likely need to follow up with a demarketing campaign.
D
18) Selecting which segments of a population of customers to serve is called ________. A) market segmentation B) positioning C) customization D) target marketing E) choosing a value proposition
D
19) Family Dollar stores profitably focusing on buyers who have relatively modest means is an example of ________. A) convenience B) value pricing C) market segmentation D) target marketing E) value packing
D
20) ________ is the set of benefits a company promises to deliver to its consumers to satisfy their needs. A) A money-back guarantee B) Low pricing C) Good customer service D) A value proposition E) An attribute
D
25) 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
27) 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
35) 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
4) ________ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others. A) Selling B) Advertising C) Bartering D) Marketing E) Negotiating
D
47) 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
57) 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 or 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
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
D
63) 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
65) Which of the following is a true statement about the economic crisis that began in 2008? A) The economic crisis caused a short-term change in consumers' spending habits. B) The average home value increased after the stock market plunge. C) Decreasing energy prices provided consumers with unexpected savings. D) Disposable incomes decreased. E) Consumers quickly regained confidence in the economy.
D
124) 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) not-for-profit marketing E) customer relationship management
E
133) 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 ________. A) maintaining customer-perceived value B) managing partner relationships C) attracting "butterflies" D) converting "strangers" E) capturing customer lifetime value
E
28) 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
48) 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-run 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
99)t or f: A customer-centered organization seeks to maximize customer satisfaction.
false
101)t or f: New communication technologies create challenges as well as advantages for marketers.
true
103)t or f: Every functional area of an organization, not only a marketing department, can and should interact with customers.
true
84)t or f: Marketers should look beyond the attributes of the products and services they sell to also create brand experiences for consumers.
true
88)t or f: Two important questions underlying marketing strategy are "Who is our target market?" and "What's our value proposition?"
true
89)t or f: The production concept and product concept are orientations that can lead to marketing myopia.
true
91)t or f: 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.
true
93)t or f: The societal marketing concept calls on marketers to balance consumer wants and desires, company profits, and society's interest.
true
94)t or f: Product, price, place, and promotion make up the elements of a firm's marketing mix.
true
96)t or f: Delivering superior customer value and customer satisfaction are the two keys to building lasting customer relationships.
true