marketing 351 test 1

true

It is possible for a customer to have a negative lifetime value.

. customer lifetime value

A Toyota representative has a solid relationship with Phil, a satisfied customer. Phil loves Toyotas and will not accept anything else. The representative determines that if Phil continues to do business with Toyota every time he wants to purchase a new car, his total value to the company would be $350,000. This includes purchases made by customers who were referred to the firm by Phil. The Toyota representative has calculated Phil's _____________________.

market orientation

Apple is known for its innovation. It conducts in-depth marketing research to determine what customers want. Its electronic devices are constantly upgraded so customers can purchase the newest models. The company creates buzz around its product offerings by discussing the product months before it is launched. This anticipation builds up until the product is launched, resulting in wide-scale sales that often result in stores selling out of the newest product. Refer to Scenario 1.3. From the information provided about Apple and its marketing strategies, Apple most likely embraces a _______________.

false

Customers consciously calculate the value of a product in benefits and costs for most purchases.

marketing concept; sales orientation; market orientation

Denise works as a direct seller for Avon. She is determined to sell as many products to as many people as possible. Although she generally has a good relationship with customers, she has been known to be overly aggressive in trying to sell products. She often convinces consumers to purchase more expensive products even after they say they are not interested. As a result of Denise's high sales, she has become a top performer. Recently, however, Denise's sponsor has been informed of complaints that customers have levied against Denise accusing her of "badgering" them into buying products. The sponsor meets with Denise and tells her it is unacceptable to pressure consumers into purchasing items they do not want. Refer to Scenario 1.2. Denise's sponsor tells her that it is important for her to determine her customer's needs and then find the product that best meets those needs, regardless of price. She recommends that Denise adopt the ____________. In other words, Denise should move from a _____________, where she is focused on using her aggressive direct selling talents to maximize profits, toward embracing the more customer-centric ________________.

promotion

Denise works as a direct seller for Avon. She is determined to sell as many products to as many people as possible. Although she generally has a good relationship with customers, she has been known to be overly aggressive in trying to sell products. She often convinces consumers to purchase more expensive products even after they say they are not interested. As a result of Denise's high sales, she has become a top performer. Recently, however, Denise's sponsor has been informed of complaints that customers have levied against Denise accusing her of "badgering" them into buying products. The sponsor meets with Denise and tells her it is unacceptable to pressure consumers into purchasing items they do not want. Which variable of the marketing mix does this issue involve?

do to satisfy customers

Jameson manages a well-known cell phone company. This company has been voted as having the best cell-phone service. Consumers appreciate the fact that they can call from almost anywhere in the world and the service still gets through. Jameson knows that the company's product far surpasses that of the competition. One thing has been bothering him, though. In order to put so many resources into ensuring the best service, Jameson has cut back on employees at the firm's customer call center. Recently, consumers have begun complaining about long wait times when they call in with a problem or concern. Although its cell phone service is still considered one of the best, customer satisfaction with the firm's customer service has plummeted. Jameson does not understand why consumers are getting so upset. He believes the exceptional cell phone service more than makes up for long waiting periods and other issues with its customer service. "After all," he says, "They can't have it all. If I invest more in customer service, that means less investment on ensuring the quality of our product offering." Refer to Scenario 1.1. Jameson has asked you, a marketing consultant, to give him advice. He cannot understand how a cell-phone company with the best product offering in the cell-phone service industry could get such low satisfaction ratings simply because the customer service is not up to par. You suggest that Jameson has a narrowly defined view of the company's product offering. You tell Jameson that successful marketers should define their products as what they ___________________.

objective; subjective

Jameson manages a well-known cell phone company. This company has been voted as having the best cell-phone service. Consumers appreciate the fact that they can call from almost anywhere in the world and the service still gets through. Jameson knows that the company's product far surpasses that of the competition. One thing has been bothering him, though. In order to put so many resources into ensuring the best service, Jameson has cut back on employees at the firm's customer call center. Recently, consumers have begun complaining about long wait times when they call in with a problem or concern. Although its cell phone service is still considered one of the best, customer satisfaction with the firm's customer service has plummeted. Jameson does not understand why consumers are getting so upset. He believes the exceptional cell phone service more than makes up for long waiting periods and other issues with its customer service. "After all," he says, "They can't have it all. If I invest more in customer service, that means less investment on ensuring the quality of our product offering." Refer to Scenario 1.1. On your advice, Jameson decides to invest more in customer service training and hiring. Satisfaction increases, but not to the level Jameson thinks it should be. He conducts a marketing research study and found that while most consumers like the product, many would like to see additional services available. However, what type of service customers want tends to vary by customer. Jameson has come to believe that customers just do not know how to assess value correctly. Jameson appears to believe that determining value is a (n) _______________ process, while in reality the process of assessing value is highly ______________.

production

Jim manages a small factory that produces circuit boards. Jim operates from the belief that a good product creates demand. He focuses much of his energy on developing operational efficiencies and increasing output. The company's salesperson Darlene, however, views customer relationships and personal selling as being the highest priority. Between the two of them, the firm has become known for its quality products and excellent customer relationships.

false

Marketers have complete control over marketing mix variables.

risk

REI has a 100% satisfaction guarantee on its items. It allows customers to return products up to one year after purchase. This is an attempt by REI to reduce what type of cost?

the non-monetary cost of time

Shannon is driving in downtown Santa Fe. She is not very familiar with the area and is running late for her appointment. She heads to a nearby paid parking lot and is told that it costs $10 to park. Shannon is irritated by the price. Although there are likely other paid parking lots that are less expensive, Shannon pays the price to park there. Different cost considerations impacted Shannon's decision, but clearly one stood out over all the others. Which cost exerted the most influence over Shannon's decision to park in the $10 parking lot?

$1,300

The Brandenburg family makes $3,500 per month. About $900 goes toward taxes and savings. They spend $2,600 on goods and services. Based upon the information in the text, about how much of their money goes toward marketing activities?

competitive; sociocultural

The marketing environment includes ___________, economic, political, legal and regulatory, technological, and __________ forces.

customer satisfaction

What is the major focus of the marketing concept?

marketing environment forces

When Panera Bread decided to eliminate artificial flavorings and preservatives from its products, it was most likely responding to which of the following?

Greenpeace

Which of the following institutions would be most likely to market an idea as their main product?

price

Which of the following marketing mix variables has Walmart generally emphasized in its marketing activities?

Marketing environment forces are uncontrollable, so marketers do not plan for them.

Which of the following statements about the marketing environment is false?

It enhances consumer awareness.

Which of the following statements describes a benefit that marketing offers?

All types of organizations need marketing

Which of the following statements is true about marketing?

Green marketing

__________________ is a strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment.

relationship marketing

deepens the buyer's trust in the company, and as the customer's confidence grows, this, in turn, increases the firm's understanding of the customer's needs.

Refer to Scenario 1.3. Apple's emphasis on marketing research is used to enhance the variable of the marketing mix, while its skills at creating buzz for its newest product offering months before its release is an example of the variable.

pple is known for its innovation. It conducts in-depth marketing research to determine what customers want. Its electronic devices are constantly upgraded so customers can purchase the newest models. The company creates buzz around its product offerings by discussing the product months before it is launched. This anticipation builds up until the product is launched, resulting in wide-scale sales that often result in stores selling out of the newest product.