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