Marketing Multiple choice questions Chapter 1

Dividing the market into various groups of customers that a company may serve is called ________. A. positioning B. target marketing C. differentiation D. customization E. market segmentation

E. market segmentation

An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious individuals, and people identified as trendsetters who try out new products in the market before others. These three groups are examples of ________. A. marketing mixes B. marketing intermediaries C. value propositions D. market offerings E. market segments

E. market segments

In consumer-generated marketing, marketers play a bigger role in shaping consumers' brand experiences and those of others. True or False

False

Market offerings are limited to physical products True or False

False

Social media sites with small audiences, such as Birdpost.com, can be as effective in creating customer engagement as sites with large audiences, such as Pinterest True or False

True

________ is the act of obtaining a desired object from someone by offering something in return A. Valuation B. Exchange C. Donation D. Market offering E. Confiscation

B. Exchange

Kao Corp., a deodorant manufacturer, invited teenage girls to make an ad that would encourage other girls to buy the product. This program is an example of ________. A. the production concept B. the selling concept C. consumer-generated marketing D. societal marketing E. partner relationship management

C. consumer-generated marketing

Consumer research, product development, communication, distribution, pricing, and service are all core ________ activities. A. production B. outsourcing C. marketing D. logistics E. positioning

C. marketing

Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain? A. marketing concept B. product concept C. societal marketing concept D. production concept E. selling concept

D. production concept

Needs include all of the following EXCEPT ________ A. food B. affection C. belonging D. the newest iPhone E. knowledge

D. the newest iPhone

Which of the following is a characteristic of customer-driven marketing? A. Customers are unaware of their needs. B. Companies understand customer needs even better than customers themselves do. C. Products are created that meet both existing and latent needs, now and in the future. D. Customers don't know what is possible. E. Customers know what they want.

E. Customers know what they want.

When backed by buying power, needs become wants. True or False

False

A market is the set of actual and potential buyers of a product or service True or False

True

An experience such as a vacation can be defined as a market offering True or False

True

Large-scale marketing approaches that foster two-way customer relationships are made possible by new communication technologies True or False

True

Which of the following refers to a set of benefits that a company promises to deliver to customers to satisfy their needs? A. value proposition B. a cartel C. marketing mix D. market segmentation E. customer lock-in

A. value proposition

Which of the following refers to the total combined customer lifetime value of all of the company's current and potential customers? A. target market B. share of customer C. customer-perceived value D. marketing mix E. customer equity

E. customer equity

Marketing is managing profitable customer relationships. True or False

True

Which of the following statements is true about creating customer loyalty and retention? A. Losing a customer means losing the entire stream of purchases that the customer would make over a lifetime of patronage. B. Customer delight creates a rational preference and not an emotional relationship with the brand. C. The aim of customer relationship management is to focus solely on customer satisfaction. D. The aim of customer relationship management is to focus solely on customer delight. E. Losing a customer hardly makes a difference to a company's sales

A. Losing a customer means losing the entire stream of purchases that the customer would make over a lifetime of patronage.

________ refers to socially and environmentally responsible marketing that meets the needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. A. Sustainable marketing B. Ambush marketing C. Database marketing D. Evangelism marketing E. Affinity marketing

A. Sustainable marketing

A financial services firm has several loyal customers who conduct business with them exclusively. However, the company has noticed that this customer group is the least profitable for the company, and in some cases, it increases their losses when engaging in business with this group. Which of the following customer groups is being referred to in this scenario? A. barnacles B. butterflies C. strangers D. cash cows E. true friends

A. barnacles

Hank is an assistant marketing director for a firm in a market with many low-margin customers. What type of relationship with these customers would be the most profitable for him? A. basic relationships B. causal relationships C. club marketing programs D. full partnerships E. inverse relationships

A. basic relationships

According to the five-step model of the marketing process, which of the following is the final step in creating value for customers? A. capturing value from customers to create profit and customer equity B. understanding the marketplace and customer needs C. building profitable relationships and creating customer delight D. constructing an integrated marketing program that delivers superior value E. designing a customer-driven marketing strategy

A. capturing value from customers to create profit and customer equity

When marketers set low expectations for a market offering, they run the risk of ________ A. failing to attract enough customers B. failing to understand their customers' needs C. disappointing loyal customers D. incorrectly identifying a target market E. having to use an outside-in rather than an inside-out perspective

A. failing to attract enough customers

The marketing concept takes a(n) ________. It starts with a well-defined market, focuses on customer needs, and integrates all the marketing activities that affect customers. A. outside-in perspective B. inside-out perspective C. telling-and-selling approach D. product-centered make-and-sell philosophy E. consumer-generated marketing approach

A. outside-in perspective

Marketing is defined as a social and managerial process by which individuals and organizations obtain what they need and want through ________. A. value creation and exchange B. manufacturing efficiencies C. innovation and creativity D. research and development E. sales and revenue creation

A. value creation and exchange

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

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

________ is determined by a customer's evaluation of the benefits and costs of a market offering relative to those of competing offers. A. Customer-managed relationship B. Customer-perceived value C. Share of customer D. Brand value proposition E. Customer lifetime value

B. Customer-perceived value

Which of the following is NOT an accurate description of modern marketing? A. Marketing involves satisfying customers' needs. B. Marketing emphasizes selling and advertising exclusively. C. Marketing is building value-laden exchange relationships with customers. D. Marketing involves managing profitable customer relationships. E. Marketing is the creation of value for customers.

B. Marketing emphasizes selling and advertising exclusively.

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

B. a few high-margin customers

A company should not always target all possible customers. Which kind of customer is not the most valuable to a company, but, can over time, contribute to the firm's success? A. true friends B. butterflies C. shooting stars D. barnacles E. strangers

B. butterflies

The final step in the marketing process is ________. A. understanding the marketplace B. capturing value from customers C. creating customer delight D. designing a customer-driven marketing strategy E. creating customer lifetime value

B. capturing value from customers

Which of the following terms refers to customers who make repeat purchases and tell others about their positive experiences with a product or service? A. surrogate customers B. customer evangelists C. market mavens D. butterflies E. barnacles

B. customer evangelists

A(n) ________ is the set of actual and potential buyers of a product or service A. audience B. market C. subsidiary D. focus group E. control group

B. market

The set of marketing tools a firm uses to implement its marketing strategy is called the ________. A. product mix B. marketing mix C. promotion mix D. market offering E. marketing effort

B. marketing mix

The ________ concept is aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer the most in quality, performance, and innovative features A. marketing B. product C. production D. selling E. societal marketing

B. product

When demand for athletic shoes produced by Nike and endorsed by Michael Jordan is high, Nike limits how many pairs of shoes are manufactured. This action maintains strong demand by limiting supply. This decision contradicts the philosophy of which marketing concept? A. societal marketing concept B. production concept C. marketing concept D. selling concept E. product concept

B. production concept

Customer equity refers to ________. A. the amount a customer is spending each year on certain products B. the total combined customer lifetime value of all of the company's current and potential customers C. a firm's current sales D. a firm's market share E. the share a firm earns of a customer's purchasing in their product categories

B. the total combined customer lifetime value of all of the company's current and potential customers

Which of the following statements is true of the selling concept? A. It takes an outside-in perspective. B. It follows the customer-centered sense-and-respond philosophy. C. It is typically practiced with unsought goods. D. It creates long-term, profitable customer relationships. E. It requires minimum promotion efforts

C. It is typically practiced with unsought goods.

Which of the following statements is true of the production concept? A. It takes an outside-in perspective. B. It calls for sustainable marketing. C. It leads to companies focusing too narrowly on their own operations. D. It considers customer focus and value to be the paths to sales and profits. E. It follows the customer-centered sense-and-respond philosophy

C. It leads to companies focusing too narrowly on their own operations.

Apart from retaining good customers, most marketers want to constantly increase their "share of customer." What does this mean in marketing terms? A. Marketers want to increase their market share. B. Marketers want to diversify their operations and customize their products to cater to the entire market. C. Marketers want to increase the share they get of the customer's purchasing in their product categories. D. Marketers want to continuously increase their customers' levels of satisfaction. E. Marketers want to turn satisfied customers into delighted customers

C. Marketers want to increase the share they get of the customer's purchasing in their product categories.

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

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

Which of the following marketing strategies should marketing managers focus on to manage detailed information about individual customers and carefully manage customer touchpoints to maximize customer loyalty? A. the societal marketing concept B. customer-managed relationships C. customer relationship management D. customer divestment E. partner relationship management

C. customer relationship management

The marketing world is most likely embracing ________ because consumers wield greater power now with many platforms for airing and sharing their brand views with other consumers. A. consumer ethnocentrism B. partner relationship management C. customer-managed relationships D. supply chain management E. market segmentation

C. customer-managed relationships

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

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

The art and science of choosing target markets and building profitable relationships with them is called ________. A. positioning B. marketing mix C. marketing management D. differentiation E. market offering

C. marketing management

The portion of the customer's purchasing that a company gets in its product categories is known as ________. A. customer-perceived value B. induced consumption C. share of customer D. customer insight E. consumption function

C. share of customer

Through ________, companies today are strengthening their connections with all partners, from providers of raw materials and components to those involved in the delivery of final goods and services. A. direct marketing B. inventory management C. supply chain management D. customized marketing E. customer relationship marketing

C. supply chain management

Which of the following marketing orientations holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do? A. the product concept B. the selling concept C. the marketing concept D. the societal marketing concept E. the production concept

C. the marketing concept

Customers can be classified into four relationship groups based on their profitability and projected loyalty. Which customer type is associated with high profitability and long-term loyalty? A. butterflies B. cash cows C. true friends D. barnacles E. strangers

C. true friends

Elisandra, a marketing manager at a regional chain restaurant, has decided to organize 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. partner relationship management B. customer divestment C. community development around a brand D. consumer-generated marketing E. customer lifetime value

D. consumer-generated marketing

"Losing a customer once means losing the entire stream of possible purchases that the customer would make over an extended period of patronage." This statement specifically indicates loss in terms of ________. A. partner relationship management B. value proposition C. marketing offerings D. customer lifetime value E. customer-perceived value

D. customer lifetime value

Building and maintaining profitable customer relationships by delivering superior customer value and satisfaction is called ________. A. customer lifetime value B. customer-perceived value C. customer equity D. customer relationship management E. partner relationship management

D. customer relationship management

When backed by buying power, wants become ________ A. self-esteem needs B. exchanges C. social needs D. demands E. physical needs

D. demands

A firm that uses the selling concept takes a(n) ________ approach. A. outside-in B. niche marketing C. customer-driven D. inside-out E. societal marketing

D. inside-out

A seller pursues a basic relationship with what kind of customers? A. many customers regardless of profitability B. a few low-margin customers C. a few high-margin customers D. many low-margin customers E. many high-margin customers

D. many low-margin customers

It is most accurate to say that when customers purchase products they act on ________ as they judge values and costs. A. customer lifetime value B. society's interests C. objective value D. perceived value E. company image

D. perceived value

Railroads were once operated based on the thinking that users wanted trains that would offer the most in quality, performance, and innovative features. The railroad managing companies overlooked the fact that there could be other modes of transportation. This reflects the ________ concept. A. selling B. societal marketing C. production D. product E. marketing

D. product

Which of the following marketing management concepts is most likely to lead to marketing myopia? A. customer-driven marketing concept B. customer-driving marketing concept C. societal marketing concept D. product concept E. marketing concept

D. product concept

According to the five-step model of the marketing process, a company should ________ before designing a customer-driven marketing strategy A. build profitable relationships with customers B. use customer relationship management to create full partnerships with key customers C. determine how to deliver superior value to customers D. understand the marketplace and customer needs and wants E. construct an integrated marketing program

D. understand the marketplace and customer needs and wants

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

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

Digital technology allows companies to reach out to customers in numerous ways. Which of the following is NOT the purpose of a company reaching out using digital and social media? A. building customer relationships B. providing product information C. helping customers shop D. working with suppliers E. solving consumer problems

D. working with suppliers

Which of the following statements reflects the marketing concept? A. Focus on making continuous product improvements. B. Focus on a product-centered make-and-sell philosophy. C. Undertake a large-scale selling and promotion effort. D. Emphasize an inside-out perspective. E. Consider customer focus and value as the paths to sales and profits.

E. Consider customer focus and value as the paths to sales and profits.

Which of the following is the most likely result of a marketing strategy that attempts to serve all potential customers? A. All customers will be delighted. B. All customers will directly turn into customer evangelists. C. Customer-perceived value will increase. D. Customers will not show interest in any other company's products. E. Not all customers will be satisfied.

E. Not all customers will be satisfied.

The primary key to delivering customer satisfaction is to match product performance with ________. A. competitive prices B. the performance of competitive products C. aggressive advertising D. limited customer services E. customer expectations

E. customer expectations

FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these benefits against the monetary cost of using FedEx along with other costs of using the service, they are acting upon ________. A. customer lifetime value B. customer equity C. a societal marketing campaign D. brand loyalty E. customer-perceived value

E. customer-perceived value

Which of the following is the aim of the product concept? A. improve the marketing of a firm's best products B. focus on the target market and make products that meet those customers' demands C. market only those products with high customer appeal D. ensure that product promotion has the highest priority E. focus on making continuous product improvements

E. focus on making continuous product improvements

At a local farmers' market, Molly Malone sells mussels while shouting to passersby, "Fresh seafood, get your fresh seafood here!" What kind of perspective is Molly taking? A. niche marketing B. customer-driven C. outside-in D. customer-driving E. inside-out

E. inside-out

Which of the following strategies would a company most likely use to increase customer satisfaction? A. divesting B. decreasing the variety of offered services C. "firing" unprofitable customers D. limiting customer experiences with a brand E. lowering prices

E. lowering prices

A ________ is some combination of products, services, information, or experiences provided to consumers to satisfy a need or want. A. brand positioning B. market segment C. value proposition D. market mix E. market offering

E. market offering

Which of the following terms refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs? A. value proposition B. vendor lock-in C. conspicuous consumption D. social loafing E. marketing myopia

E. marketing myopia

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

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

Keith, a clothing store owner, offers product suggestions to customers based on their current purchases. Which of the following is Keith trying to increase? A. customer-generated marketing B. shared value C. social responsibility D. customer loyalty E. share of customer

E. share of customer

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. production concept B. product concept C. selling concept D. marketing concept E. societal marketing concept

E. societal marketing concept

Selecting which segments of a population to serve is called ________. A. market segmentation B. customization C. positioning D. differentiation E. target marketing

E. target marketing

Which of the following uses a customer-centered "sense-and-respond" philosophy rather than a product-centered "make- and-sell" philosophy? A. the inside-out perspective B. marketing myopia C. the production concept D. market segmentation E. the marketing concept

E. the marketing concept

Which of the following marketing orientations calls for aggressive promotional efforts and focuses on creating transactions rather than long-term customer relationships? A. the marketing concept B. the production concept C. the product concept D. the societal marketing concept E. the selling concept

E. the selling concept

A company can create customer delight by meeting customer expectations through offering good products that do what is promised True or False

False

An organization's department follows a customer-centered sense-and-respond philosophy. The department is most likely practicing the product concept True or False

False

Companies that do not target individual consumers do not benefit from using social media tools to appeal to their business customers True or False

False

Customer-managed relationships are marketing relationships that are controlled by customers, therefore, they are of no significance to marketers. True or False

False

For most marketers, customer relationship management is exclusively a matter of customer data management True or False

False

Human needs are shaped by culture and individual personality. True or False

False

Market segmentation is the process of seeking fewer customers and reduced demand for profit maximization only. True or False

False

Organizations choose to use only a few of the available online and social media. Using multiple social media results in confused fans True or False

False

The Internet of Things is a new product created by multiple companies working together. True or False

False

The meaning of value is perceived identically by all consumers. True or False

False

To increase its "share of customer," a firm concentrates on retaining as many customers as possible over its lifetime True or False

False

When sellers focus on existing needs and lose sight of underlying customer wants, they suffer from marketing myopia True or False

False

Customer-perceived value is defined as the customer's evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers True or False

True

The difference between human needs and wants is that needs are not created by marketers. True or False

True

The marketing mix refers to the set of marketing tools the firm uses to implement its marketing strategy. True or False

True

The production concept and the product concept are marketing management orientations that are more likely to lead to marketing myopia True or False

True

The selling concept holds that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort. True or False

True

The societal marketing concept calls on marketers to balance consumer wants and desires, company profits, and society's interests. True or False

True

________ are human needs that are shaped by culture and individual personality A. Wants B. Exchanges C. Necessities D. Values E. Demands

A. Wants

In the context of customer relationship groups, a potentially profitable and short-term customer is referred to as a ________. A. true friend B. market maven C. barnacle D. stranger E. butterfly

E. butterfly

The selling concept is typically practiced ________. A. with products that offer the most in terms of quality, performance, and innovative features B. by customer-driven companies C. when the company focuses on building long-term customer relationships D. to balance consumers' wants, company's requirements, and the society's long-run interests E. with goods that buyers normally do not think of buying

E. with goods that buyers normally do not think of buying