mark ch. 1

56. As use of the Internet took off, car manufacturers were tempted to sell directly to consumers, but decided instead to continue to sell through their existing dealer networks. The car manufacturers considered switching from __________ to __________ marketing. A. B2C; B2B B. B2C; C2C C. B2B; B2C D. B2B; C2C E. C2C; B2C

C. B2B,B2C; The car manufacturers considered switching from B2B marketing (where they sell cars to dealers, who then sell them to consumers) to B2C marketing (where the car manufacturers would sell directly to consumers)

113. Marketing channel management is related to which of the four Ps? A. product B. price C. place D. promotion E. Production

C. place

52. Effective promotion enhances a product or service's A. supply chain management system. B. wholesaling capabilities. C. perceived value. D. design features. E. trialability.

C. perceived value; Effective promotion communicates value by attempting to ensure that customers understand the value being offered

46. The marketing goal of getting the right quantities to the right locations at the right time relates to A. communicating the value proposition. B. supply chain management. C. service marketing. D. capturing value. E. price and performance management.

B. supply chain management; The question describes the place component of the marketing mix, which involves managing the supply chain

41. Some discount stores put products in large bins and let consumers hunt and find bargains. The price these consumers pay includes A. only the actual price they pay at the register. B. the value of their time and energy. C. the excitement they experience in finding an item they desire. D. the savings to the store of not having to display the products neatly on shelves E. the time the product was full price and didn't sell. .

B. the value of their time and energy; Price includes everything the customer gives up to get the product

94. Marketing provides the critical function of __________ when companies expand globally. A. managing production efficiency B. understanding customers C. managing personnel D. forecasting economic growth E. evaluating government stability

B. understanding customers; Marketing is the part of the organization in the best position to understand customers in all situations

34. Marketing has traditionally been divided into a set of four interrelated decisions known as the marketing mix, or four Ps, including all of the following EXCEPT A. product B. place C. performance D. promotion E. Price

C. Performance; The four Ps are product, place, promotion, and price.

76. To become a more value-driven organization, Pokrah University is holding regular coffee-hour discussions with its students and surveying its graduates regarding students' educational needs and desires. Pokrah University is becoming more value driven through A. sharing information across the organization. B. balancing its customers' benefits and costs. C. evaluating strategic competitive partnerships. D. building relationships with customers. E. keeping the faculty members happy.

D. building relationships with customers; By communicating regularly with students and alumni, Pokrah University is working to build closer relationships with these groups

39. Four Winds Art Gallery recently began offering appraisals of customers' art collections, in addition to continuing to sell paintings. Four Winds is A. expanding from offering just services to also offering goods. B. implementing a market segmentation strategy. C. capturing value through multiple pricing strategies. D. expanding from offering just goods to also offering services. E. increasing customer value through inflated appraisal evaluations.

D. expanding from offering just goods to also offering services; The paintings are goods; appraisals are services.

120. Janine was tired of her winter coat, so she sold it to her friend, Marissa. This is an example of ________ marketing. A. B2B B. B2C C. C2B D. C2C E. BBC

D. C2C; Janine and Marissa are both consumers, so this is C2C marketing.

102. A(n)__________ is the trade of things of value between the buyer and the seller so that each is better off as a result. A. exchange B. market segment C. promotional plan D. transactional orientation E. relational orientation

A. exchange

55. Auction sites like eBay have increased opportunities for __________ marketing. A. B2B B. C2C C. D2C D. C2D E. B2G

B. C2C; Consumers can buy and sell from each other on sites like eBay, increasing the amount of consumer-to-consumer (C2C) marketing that takes place

27. Marketing involves all of the following EXCEPT A. conducting exchanges. B. satisfying customer needs and wants. C. creating value. D. efforts by individuals and organizations. E. production scheduling

E. Production scheduling; Production scheduling is the responsibility of manufacturing; all other activities are part of marketing.

97. Marketing enriches society by A. focusing solely on maximizing profits. B. sponsoring charitable events. C. recognizing that the firm can do very little by itself, so it should stay focused on its own core competencies. D. facilitating the smooth flow of goods through the supply chain. E. coordinating marketing functions with other functional areas in the company.

B. sponsoring charitable events; Marketing techniques can be applied to social causes as well as to profit-making enterprises, and the firm's employees can support these causes as well

45. Yesenia, the new university course scheduling manager, is struggling with adjustments to the fall schedule. She is trying to determine how to offer the classes students need at the times when students need them. Yesenia is struggling with the marketing function of A. communicating the value proposition. B. supply chain management. C. creating value. D. capturing value. E. value co-creation.

B. supply chain management; Getting a product (in this case, a class) to customers when and where they want it describes the place component of the marketing mix, which involves managing the supply chain

58. The Got Milk advertising campaign, designed to increase consumption of milk, was intended to help market a(n) A. individual. B. firm. C. industry. D. organization. E. specific product.

C. industry; The Got Milk campaign advertised the dairy industry as a whole, not any particular brand of milk

80. One of the benefits of value-driven marketing is that attention to customer needs and wants will likely result in A. higher prices than the market leader charges. B. increased competition. C. long-term relationships. D. strong connections among competing firms in the marketplace. E. lower prices.

C. long-term relationships; Value-driven marketing is likely to lead to loyal customers through the relationships that are formed

68. During the __________ era, manufacturers and retailers began to focus on what consumers wanted and needed before they designed, made, or attempted to sell their products. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

C. market-oriented; The market-oriented era was when most companies first started thinking in terms of meeting customer needs

114. Marney bought a dress from a retail store. Which core aspect of marketing was Marney most directly participating in? A. Marketing helps create value. B. Marketing is about satisfying customer wants and needs. C. Marketing involves an exchange. D. Marketing can be performed by both individuals and organizations. E. Marketing occurs in many settings.

C. marketing involves an exchange; All of these activities were taking place at some level, but Marney was most directly participating in making an exchange—her money for the dress

103. Traditionally, marketing activities have been divided into product, price, place, and promotion. Select the term that best describes the four Ps. A. marketing mix B. marketing channel C. marketing plan D. marketing era E. marketing implementation

A. marketing mix

104. Internet sites, physical stores, and kiosks are most closely associated with which element of the marketing mix? A. place B. price C. product D. promotion E. Proximity

A. place; Place represents all the activities necessary to get the product to the right customer when the customer wants it

99. Many entrepreneurs are successful through marketing efforts designed to A. mimic existing products on the market. B. satisfy unfilled needs. C. raise social consciousness. D. gain monopoly power. E. push a new technology even if people aren't ready for it.

B. satisfy unfilled needs; Successful products address unsatisfied needs

89. Marketing was once an afterthought to A. accounting. B. economics. C. production. D. finance. E. none of these—marketing was never an afterthought.

C. production; In the production-oriented era, marketing was considered unnecessary; all that mattered was producing good products

108. The activity, set of institutions, and process for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large is called A. marketing. B. marketing research. C. market share analysis. D. market segmentation. E. market positioning.

A. marketing

61. Henry Ford's statement, "Customers can have any color they want so long as it's black," typified the __________ era of marketing. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

A. production-oriented; The production-oriented era of marketing dealt primarily with manufacturing processes and the design of a good product, but without concern for meeting specific customer needs

63. During the __________ era, firms had excess capacity and used personal selling and advertising to generate customers. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

B. sales-oriented; In the sales-oriented era, manufacturers had the capacity to produce more than customers really wanted or were able to buy. Firms found an answer to their overproduction in becoming sales oriented; they depended on heavy doses of personal selling and advertising

57. Many universities provide physical or electronic bulletin boards to facilitate ride-sharing and exchange of used books among students. These bulletin boards increase __________ marketing. A. B2C B. C2B C. B2B D. C2C E. Underground

D. C2C; These bulletin boards are designed to encourage consumer-to-consumer (C2C) marketing since they make it easier for consumers (students, in this case) to connect with each other

32. Whenever Valerie has a new massage therapy customer, she invites the person to be on her e-mail distribution list. In the process, in addition to exchanging her massage therapy service for payment, Valerie is gathering A. information. B. promotional capital. C. pricing data. D. value cocreation. E. feedback.

A. information; In this case, Valerie's customer receives a massage, and she receives both payment and information (in the form of the customer's email address) as part of the exchange process

105. The primary purpose of the __________ plan is to specify the marketing activities for a specific time. A. marketing B. business C. strategic D. organizational E. Resource

A. marketing; The marketing plan specifies the marketing activities for a specific period of time. A business plan is a formal statement of a set of business goals that are believed to be attainable

101. If a radio station holds an online contest in which you must log in to its website and submit personal details such as name, phone number, and email to participate, the radio station is A. offering an exchange. B. behaving unethically. C. hoping to receive feedback. D. implementing a CRM program. E. overstepping its role.

A. offering an exchange; Marketing is about an exchange of things of value between buyer and seller so that each is better off. In this instance, the exchange is email/personal information for a chance to win a contest. CRM would imply closer tracking of customers than this simple exchange suggests

62. Melanie works for a small computer software company. Her boss is constantly improving its products but neglecting customers, billing, and promoting the company. Her boss is probably stuck in the __________ era of marketing. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

A. production-oriented; The production-oriented era of marketing dealt primarily with manufacturing processes and the design of a good product, but without concern for meeting specific customer needs

77. As owner of a retail franchise food store, Mary Gray purchases supplies based on specials advertised nationally throughout the franchise system. One Monday, she was surprised to find customers asking for specials she hadn't been informed of in advance. The franchise company failed to live up to the value-driven activity of A. sharing information across the organization. B. balancing customers' benefits and costs. C. evaluating strategic competitive partnerships. D. building relationships with customers. E. keeping prices below those charged by competitors.

A. sharing information across the organization; Apparently the national headquarters forgot to inform franchisees of the special, suggesting a failure of information sharing

47. Marketers involved in value-oriented marketing are constantly balancing A. promotional effectiveness with ethical advertising standards. B. the problem of price maximization with cost efficiency. C. customer benefits with costs of their offerings. D. the desire to achieve with the need for a stable source of supply. E. the goal of efficiency with the price charged by competitors.

C. customer benefits with costs of their offerings; Value-oriented marketers constantly measure the benefits that customers perceive against the cost of their offerings. They use available customer data to find opportunities to better satisfy their customers' needs, keep costs down, and develop long-term loyalties

73. In delivering value, marketing firms attempt to find the most desirable balance between A. the need for value and the perception of value. B. explicit versus implicit value. C. providing benefits to customers and keeping costs down. D. the desire to satisfy customers and the need to keep customers from running the company. E. the need for product improvement and the need for advertising.

C. providing benefits to customers and keeping costs down; The challenge for all firms is to provide the value customers expect while keeping costs low enough to allow the firm to be profitable

35. The four Ps make up the marketing mix, which is the __________ set of activities that the firm uses to respond to the wants and needs of its target markets. A. unpredictable B. external C. internal D. controllable E. Global

D. controllable; The four Ps represent controllable activities—in other words, the things the firm controls and manages

36. The fundamental goal of marketers when creating goods, services, or combinations of both, is to A. defeat the competition. B. serve all consumers. C. operate according to government regulations. D. stimulate short-term sales. E. create value.

E. Create value; While some of the other answers are things that marketers and their firms have to consider, the fundamental purpose of marketing activities is to create value for consumers

40. Marketers must determine the price of a product carefully, based on potential buyers' beliefs about A. its value. B. the environment. C. the cost to manufacture the product. D. the economic outlook. E. the product's new advertising campaign.

A. its value; Pricing based on buyers' perceptions of value ensures that buyers believe the product is worth its price. Some of the other answers include things that buyers might consider in arriving at a value perception, but they are incomplete answers

54. Retailers accumulate merchandise from producers in large amounts and sell to consumers in smaller amounts. Retailers function as A. market intermediaries. B. monopolists. C. regulators of consumer demand. D. wholesale specialists. E. intermediate promoters.

A. market intermediaries; Retailers make up one category of market intermediary, which refers to firms that assist in getting products from the manufacturer to the consumer

111. At one point in the evolution of marketing, the United States entered a buyer's market and the customer became king. Which era is being described? A. market-oriented B. sales-oriented C. production-oriented D. value-based marketing E. economics-oriented

A. market-oriented

110. Jeff opened a sporting apparel store and signed a lease on the property. He also signed an agreement with the manufacturer on the amount of merchandise he will sell and the promotions he will conduct. Based on this description, which aspect of the marketing mix does he still need to work on? A. price B. place C. promotion D. product E. Prototype

A. price; The answer is price, because this is the only part of the marketing mix missing from the question description

30. Xavier is analyzing potential market segments. He should carefully seek potential customers who have both an interest in his products and A. a thorough knowledge of his brand messages. B. the ability to buy them. C. knowledge of competing products. D. the ability to negotiate discounts. E. are removed from traditional marketing alternatives.

B. the ability to buy them; If Xavier selects customers with an interest in the kinds of products he offers and the ability to purchase, he can communicate the value his offerings provide and offer competitive comparisons as part of his marketing mix

67. During the market-oriented era, A. a good product would sell itself. B. the customer was king. C. marketing was more important than production. D. advertising and personal selling were emphasized to make the sale. E. firms focused on value.

B. the customer was king; The market-oriented era was when most companies first started thinking in terms of meeting customer needs. It was a buyer's market and the customer was king

83. Many firms with complex products have missionary salespeople who assist customers with problems and implementation programs. These salespeople rarely sell products but often become involved in and knowledgeable about specific customers' needs and wants. These salespeople focus on a(n) __________ orientation with their customers. A. transactional B. external C. relational D. internal E. Divisional

C. relational; A relational orientation refers to the building of relationships and the development of a better understanding of customers' needs and wants

107. When an accounting firm provides an online training module showcasing real-life decision lapses and their negative effect on the company, it is trying to encourage what type of behavior from its employees? A. ethical B. strategic C. formal D. casual E. Secretive

A. ethical; The question leads us to understand that the company has created an online training to ensure that the employees act ethically

74. Yolanda is the new restaurant manager in a major hotel. When considering changes in the restaurant that will increase value to customers, Yolanda will likely attempt to either provide the same quality at a lower cost or A. improve products and services at the same cost. B. increase prices to increase revenue. C. offset higher hotel rates with lower restaurant prices. D. reduce customer expectations through reduced service. E. lower the quality and the price.

A. improve products and services at the same cost; By improving products at the same cost, Yolanda would create additional value for her customers

109. Jeff is going to sell sporting apparel, which he has already purchased from manufacturers, and has signed a deal agreeing to the volume he will sell monthly. He has researched his competition, talked to some customers, and decided on prices he will charge. Jeff has also developed a plan for promoting his business. Based on this description, which element of the marketing mix does Jeff still need to work on? A. place B. product C. price D. promotion E. Planning

A. place; This question outlines each item of the marketing mix except for place, which represents all the activities necessary to get the product to the right customer when the customer wants it. Jeff needs to decide whether he will have a physical store (and if so, where), a website, and so on

Multiple Choice Questions 26. When a T-shirt manufacturer states, "We only sell it in black because that way we can buy plenty of black fabric and run our plant efficiently," its statement reflects the views that were popular in which era of the evolution of marketing? A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. economics-oriented

A. production-oriented

60. The idea that a good product will sell itself is associated with the __________ era of marketing. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

A. production-oriented; In the production-oriented era, the assumption was that if companies built good products, they would sell without any particular effort

87. Franco uses a database software system to remind him when his customers should be ready to reorder his industrial cleaning products. With this reminder system, Franco contacts his customers when they are most likely to be in the buying mode. Franco's system is part of A. C2C marketing. B. customer relationship management. C. a transactional marketing orientation. D. supply chain management. E. typical production era marketing practices.

B. customer relationship management; Franco's system is one element of a customer relationship management system, in that it tracks customers and seeks to meet their specific needs to build loyalty

93. After the previous sales representative in his territory infuriated an important customer, Benjamin visited the customer once a month, never asking for business but hoping to rebuild trust through listening and expressing concern. Finally, after more than two years, the customer gave Benjamin an order. Benjamin was providing the important marketing function of A. advising production on how much product to make. B. alerting the logistics department when to ship products. C. engaging customers and developing long-term relationships. D. identifying opportunities to expand. E. synthesizing and interpreting sales, accounting, and customer-profile data.

C. engaging customers and developing long-term relationships; Benjamin was involved in a relational orientation, hoping to rebuild the long-term relationship with this customer

86. The goal of customer relationship management is to A. manage every customer relationship differently. B. manage every customer relationship to maximum short-term profitability. C. eliminate customers who are profitable, but not highly profitable. D. identify and build loyalty among a firm's customers. E. generate relationships with all of a firm's customers.

D. identify and build loyalty among a firm's customers; Some of the answers include CRM themes but are carried to an extreme—for example, although CRM seeks to customize the relationship to meet the customer's primary needs, it doesn't mean that every customer must be managed differently from every other. And not every customer wants a relationship (nor does the firm want a relationship with every customer). But CRM does concern itself with building loyalty in the customer base

59. The evolution of marketing progressed along the following continuum: A. sales, marketing, value-based marketing, production. B. marketing, value-based marketing, production, sales. C. value-based marketing, production, sales, marketing. D. production, sales, marketing, value-based marketing. E. sales, value-based marketing, marketing, production.

D. production, sales, marketing, value-based marketing; The production-oriented era was followed by the sales-oriented era, then the marketing-oriented era, and finally the value-based marketing era

116. Which element of the marketing mix is most relevant to the activity "capturing value"? A. promotion B. purchasing C. product D. price E. Place

D. price

79. Value-driven firms constantly measure the __________ that customers perceive, compared to the prices of their offerings. A. information B. benefits C. relationships D. rebates E. Merchandise

B. benefits; Value is the relationship between the benefits received and the cost (price) paid

53. By promoting perfume based on youth, style, and sex appeal, Calvin Klein is attempting to A. influence social norms regarding sexuality. B. encourage consumers to participate in product redesign. C. stimulate supply chain management cooperation. D. increase the perceived value of its products. E. demonstrate social responsibility.

D. increase the perceived value of its products; Promotion communicates value to consumers so that they will more easily see the value offered by the product

31. When referring to exchange, marketers are focusing on A. the location where products and services are traded. B. the price charged, adjusted for currency exchange rates. C. location-based tactics for creating value. D. promotional offers designed to stimulate barter. E. the trading of things of value.

E. the trading of things of value; Exchange refers to each of the parties involved giving something and getting something in return.

115. In the broadest terms, the marketplace refers to A. wholesale and retail environments. B. brick-and-mortar stores and the Internet. C. the four Ps. D. channels that are accessible to a given customer. E. the world of trade.

E. the world of trade

29. Julia is considering a career in marketing. She is concerned about the image of marketers as fast-talking, high-pressure people who only care about making a sale. When reading about the core aspects of marketing, Julia is relieved to see that in marketing A. all parties to an exchange should be satisfied. B. promotion is the most important consideration, followed by pricing decisions. C. decisions are made regarding how a product is designed. D. customers are not considered until the product is ready for sale. E. distribution is controlled by customers.

A. All parties to an exchange should be satisfied; If all parties to the exchange are satisfied, that indicates that marketers are considering customers' needs as well as the company's welfare. None of the other alternatives ensure that customers' needs are being satisfied.

28. Jami sells construction equipment. Whenever she calls on her building contractor customers, she asks whether they are having any problems. In doing so, Jami is addressing which of the following core aspects of marketing? A. Satisfying customer needs and wants B. The exchange function of marketing C. Product, place, promotion, and price decisions D. Decisions about the setting in which marketing takes place E. Creating value

A. Satisfying customer needs and wants; By asking about problems, Jami is asking what unmet needs the contractor might have. She hopes that her company may have products that will help to meet these needs

90. Many inventors struggle with the question, "I made it; now how do I get rid of it?" They have made the error of considering marketing as A. an afterthought. B. an integral part of a business plan. C. an accounting function. D. a profit center. E. important only for new products.

A. an afterthought; Marketing should be considered at every step of the conception, design, and manufacturing of a new product, and not treated as an afterthought once the product exists

106. The process of value __________, in which customers collaborate in product design, often provides additional value to the firm's customers. A. co-creation B. positioning C. delivery D. chain management E. based marketing

A. co-creation; Value co-creation is a process in which customers and the firm work together to customize products. Since the products typically meet more of the customer's needs, this can provide additional value

119. Which marketing activity is most directly served by the promotion element of the marketing mix? A. communicating value B. creating value C. capturing value D. delivering value E. producing value

A. communicating value

100. People who initiate, organize, operate, and assume the risk of a business venture are called A. entrepreneurs. B. leaders. C. managers. D. professionals. E. consultants.

A. entrepreneurs; Entrepreneurs are people who start new businesses and take major risks

78. In the past, manufacturers' representatives did not have up-to-minute data about the products they were selling. Today, manufacturers' representatives are often provided online access to inventory data for the companies they represent. These online inventory systems allow companies to become more value-driven by A. sharing information across the organization. B. balancing customers' benefits and costs. C. evaluating strategic competitive partnerships. D. building relationships with government regulators of marketing institutions. E. keeping prices below those charged by competitors.

A. sharing information across the organization; The online systems discussed help members of the supply chain share information about inventory levels

50. UPS, FedEx, DHL, and other shipping companies support other firms' __________ marketing goals. A. supply chain management B. value communication C. value capture D. retail management E. Promotion

A. supply chain management; Supply chain management includes the shipment/delivery of products, so these companies can be an important part of the supply chain

44. Marketing efforts designed to get the product or service to the right customer, when that customer wants it, are called A. supply chain management. B. a transactional orientation. C. wholesaling. D. value cocreation. E. endless chain marketing.

A. supply chain management; The question describes the place component of the marketing mix, which involves managing the supply chain

85. After hurricanes like Katrina, many small building contractors will flock to the damaged area, charging whatever customers will pay for temporary repairs to roofs and other parts of damaged homes. These contractors are engaged in a(n) __________ marketing orientation. A. transactional B. external C. relational D. internal E. value driven

A. transactional; This behavior demonstrates a transactional orientation, where the seller seeks to make a quick profit and is not concerned about long-term relationships

42. Henriette offers financial counseling and management on a fee-only basis. She has found that different customers are willing to pay different rates for her services. This shows that her pricing decisions should depend primarily on A. choosing an average price that she will charge all her clients. B. changes in technology allowing consumers to manage their own affairs. C. how different customers perceive the value of her services. D. changes in the economy. E. how much her competitors charge for similar services.

Although the other factors might need to be considered in pricing, the primary consideration should be perceived value—and the reason different customers are willing to pay different rates is because they perceive the value differently

82. A relational orientation is based on the philosophy that buyers and sellers develop A. a complete understanding of each other's needs. B. a long-term relationship. C. a price-value comparison matrix. D. supply chain synergy. E. a marketing value transaction focus.

B. a long-term relationship; A relational orientation expects a relationship to develop over the long term

91. Georgia, the outside sales rep for a major building supply company, reads a report stating that building permits are down dramatically in her sales territory. She had noticed that things were slowing down, but now she has data confirming her impression. Based on this information, one important function Georgia should provide is A. pushing her customers to buy products whether they need them or not. B. advising the production and purchasing departments to produce or order smaller quantities of products. C. assisting customers in product recall confirmations. D. avoiding contact with competing firms to maximize value-driven marketing. E. estimating profit per sale to determine whether the firm can survive the slowdown.

B. advising the production and purchasing departments to produce or order smaller quantities of products; Georgia should share what she has learned with the production and purchasing departments so that they can plan accordingly. She should not push her customers to buy things they don't need—this will damage her firm's reputation and will come back to haunt her when the downturn ends. Estimating profit isn't Georgia's responsibility, but someone in the firm should look at the impact of the slowdown if enough sales territories are affected

92. Jenny, the delivery and sales representative for a beer distributor, is calling on a retailer and sees the shelves are almost empty. An unexpected sporting event held nearby resulted in a huge increase in sales. She calls her company's distribution manager and requests a special delivery for her customer. Jenny is providing the important marketing function of A. advising production on how much product to make. B. alerting the logistics department when to ship products. C. advising the customer about new products and markets. D. identifying opportunities to expand. E. synthesizing and interpreting sales, accounting, and customer-profile data.

B. alerting the logistics department when to ship products; Jenny is arranging for a shipment through the distribution manager, who handles the logistics function

38. The basic difference between a good and a service is that a good A. provides intangible benefits. B. can be physically touched. C. is always less expensive than a corresponding service. D. generates greater interest among consumers. E. is more quickly forgotten by consumers.

B. can be physical touched; Goods are tangible things that can be touched; services are intangible. The remaining answers could be true in some cases, but untrue in others

112. Supply chain management is also referred to as A. delivery management. B. marketing channel management. C. production management. D. retail management. E. value proposition management.

B. marketing channel management

96. Greenbelt Construction has been a successful small home-building firm for years. The owner pays subcontractors slightly more than the usual rate for different tasks, reducing the company's gross margin. Greenbelt rarely changes subcontractors, has relatively few complaints from home buyers, and is able to get quick responses from subcontractors when buyers do have problems. Greenbelt is engaged in A. a traditional transactional orientation. B. C2C value-driven marketing. C. effective supply chain management. D. value cocreation. E. a virtual monopoly.

C. effective supply chain management; By maintaining good relationships with subcontractors, Greenbelt Construction gains the benefit of receiving good service from these subcontractors for itself and for its home buyers. This is a key benefit of effective supply chain management

37. Brian is struggling with the choice of publishing his new book, How to Cook Polish Barbeque, as an e-book or a paperback. Brian is addressing which core marketing aspect? A. developing a promotional plan B. managing the exchange function n of marketing C. making product decisions D. deciding where and how to sell the product E. pricing the product

C. making product decisions; Since Brian is making decisions about the form his book will take, he is making product decisions. If he were deciding whether to sell it online, in bookstores, or both, it would be a "where and how" (place) decision

66. Many U.S. companies first discovered marketing during the __________ era. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

C. market-oriented; The market-oriented era was when most companies first started thinking in terms of meeting customer wants and needs

118. Which element of the marketing mix is most relevant to the activity "creating value"? A. promotion B. purchasing C. product D. price E. Place

C. product

95. Leah is the marketing manager for an electronics company. While on vacation in Ecuador, she visited electronics stores in the major malls in Quito, the capital city. Most of her company's products were available, except for smart phones. When she returned to work, she mentioned this observation to her international sales manager. Leah was providing the important marketing function of A. advising production on how much product to make. B. alerting the logistics department when to ship products. C. engaging customers, developing long-term relationships. D. identifying opportunities to expand. E. synthesizing and interpreting sales, accounting, and customer-profile data.

D. identifying opportunities to expand; Leah was identifying a potential opportunity—the absence of the firm's smartphones from stores in Ecuador

84. After major hurricanes like Katrina, many ethical home repair and building supply businesses continue to charge pre-hurricane prices to their customers, even though due to the huge increase in demand they could charge much more. These firms probably recognize that A. they can make more money from government contracts than from sales to customers. B. a transactional orientation is the key to long-term profitability. C. none of their competitors would be raising prices. D. lifetime profitability of relationships matters more than profits from a particular transaction. E. if they raised prices they would be in violation of Commerce Department regulations.

D. lifetime profitability of relationships matters more than profits from a particular transaction; By not raising prices when they could, the firms were resisting the temptation to make a quick profit and were instead demonstrating the value they placed on long-term relationships with their customers

33. Which of the following is a core aspect of marketing? A. satisfying as many needs as possible B. creating a product that everyone will want to buy C. setting prices lower than all competitors D. making product, place, promotion, and price decisions E. increasing the company's profit

D. making product, place, promotion, and price decisions; Most of these answers are too broad. Marketers don't generally try to sell to everyone, and they don't necessarily strive to have the lowest price. Instead, they select customers they can successfully serve and design a marketing mix (product, place, promotion, and price) to meet those needs

48. The importance of supply chain management is often overlooked in the study of marketing because A. marketing has no responsibility for supply chain management. B. supply chain management doesn't add much value for customers. C. companies do not want customers to know anything about the supply chain. D. many of the activities take place behind the scenes. E. supply chain management is already transparent.

D. many of the activities take place behind the scenes; Supply chain management is extremely important—without it, customers would not be able to obtain products—but most of the activities take place in the background

81. Even though they operate from out-of-the-way airports and offer few extra services, discount, no-frill airlines like Ryanair and EasyJet have been successful. Consumers obviously consider A. the schedules these airlines offer to be the most convenient in the industry. B. the long-term relationships established by these airlines to be a critical benefit. C. the prices to be slightly lower, but not low enough to have much influence. D. the benefit of lower prices to be greater than the cost of reduced services and less convenience. E. the major airlines to be worthless.

D. the benefit of lower prices to be greater than the cost of reduced services and less convenience; People flying discount airlines have decided to bear some inconvenience in return for lower prices. The benefits are lower, but so is the cost, so the offering can have value despite the inconvenience

69. During the __________ era, manufacturers and retailers recognized they needed to give their customers greater value than their competitors did. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

D. value-based marketing; In the value-based marketing era, firms began to recognize that value creation was the key to success for most firms

71. Trey sells consumer electronics. He knows his customers weigh the costs versus the benefits associated with the different options available. He decides which products to offer and what prices to charge based on the way his customers think. Trey operates as if he were in the __________ era. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

D. value-based marketing; Trey is thinking in terms of the value his customers perceive (benefits minus costs), and thus is thinking about value-based marketing

72. Serena studies her customer profiles, market research data, complaints, and other information, attempting to better understand what her customers want. Serena operates in the __________ era of marketing. A. production-oriented B. sales-oriented C. market-oriented D. value-based E. retailing-oriented

D. value-based; Serena is attempting to understand her customers' perceptions of value

98. A friend of yours comments, "I'm starting my own business. I have a perfect product that no one else can touch, but I have no use for marketing. That's just for the mega-corporations." Which of the following arguments would you NOT use in talking about marketing? A. Marketing helps new ventures organize, operate, and assess risk. B. Marketers help address unmet customer needs, regardless of the size of the firm. C. Marketing focuses on the product, but only as one element. Three other areas are Promotion, Price, and Place. D. Marketers are skilled at communicating the value of the product to potential customers. E. Marketing isn't essential now, but it will be in a year or two when the product takes off.

E. Marketing isn't essential now, but it will be in a year or two when the product takes off; Marketing is necessary at all stages of a firm's life

49. When considering career choices in marketing, many students overlook supply chain management because A. it is considered too quantitative. B. marketing has no responsibility for supply chain management. C. companies generally outsource these activities, so there are rarely supply chain jobs available. D. it only takes place in large, urban areas. E. many of the activities take place behind the scenes.

E. many of the activities take place behind the scenes; Supply chain management is extremely important—without it, customers would not be able to obtain products—but most of the activities take place in the background

117. Which element of the marketing mix is most relevant to the activity "delivering value"? A. promotion B. purchasing C. product D. price E. Place

E. place

43. Marketing channel management is also known as A. endless chain marketing. B. a transactional orientation. C. wholesaling. D. product design. E. supply chain management.

E. supply chain management; Marketing channel management, also known as supply chain management, is the set of approaches and techniques that firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and other firms involved in the transaction into a seamless value chain in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, while minimizing system-wide costs and satisfying the service levels required by the customers

75. Christie has just started with a travel agency, and she has been offering clients and prospective clients a range of packaged tours. She is concerned, because the commissions she is earning on her sales are lower than she had hoped. Her colleague Peter, who has been with the agency for several years, is having a great deal of success by working closely with the clients, seeking their ideas, and building customized tour packages for each one based on their suggestions. Peter's approach is based on A. transaction-oriented marketing. B. premium pricing. C. his seniority at the firm. D. special incentives from tour operators. E. value co-creation.

E. value co-creation; Peter is collaborating with his clients to build custom packages, which is an example of value co-creation

70. Value is A. the lowest cost option. B. represented by brand names. C. the highest priced alternative. D. everyday low prices. E. what you get for what you give.

E. what you get for what you give; Value is the benefits received minus the costs of acquiring a product, or what you get in return for what you give

88. Many catalog companies create special-run issues based on what customers have purchased in the past. For example, customers who frequently order bedding items like sheets and pillows receive a catalog with a larger section of bedding items than do customers who mostly order kitchen tools. This is an example of A. C2C marketing. B. customer relationship management. C. a transactional marketing orientation. D. supply chain management. E. typical production-oriented era marketing practices.

B. customer relationship management; The catalog is customized based on what is known about the customer's needs and habits. This is a typical element of a customer relationship management program

51. __________ is communication by a marketer that informs, persuades, or reminds potential customers about a product. A. Pricing B. Promotion C. Placement D. A relational orientation E. Value co-creation

B. promotion

64. The prevailing marketing strategy of the __________ era was to find customers for inventories that went unsold. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

B. sales-oriented; In the sales-oriented era, manufacturers had the capacity to produce more than customers really wanted or were able to buy. Firms found an answer to their overproduction in becoming sales oriented; they depended on heavy doses of personal selling and advertising

65. Near the end of the model year, Move-Them-Out automobile dealership had an unusually high inventory level. The manager increased her advertising spending and gave extra incentives to its salespeople. Move-Them-Out operates as if it were in the __________ era. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

B. sales-oriented; In the sales-oriented era, manufacturers had the capacity to produce more than customers really wanted or were able to buy. Firms found an answer to their overproduction in becoming sales oriented; they depended on heavy doses of personal selling and advertising