Marketing 380 Exam 1
Although Zappos was not legally bound to fulfill customer orders following its pricing snafu, failure to do so would have significantly lowered __________, which is based on a company's performance relative to the customers' expectations. a. customer-perceived value b. customer satisfaction c. customer engagement d. customer lifetime value e. customer demand
b. customer satisfaction
The act of obtaining a desired object from someone by offering something in return is known as which of the following? A. An exchange Your answer is correct. B. A sale C. A barter D. A trade E. An auction
A. An exchange
A SWOT is a part of which marketing management function? A. Analysis Your answer is correct. B. Implementation C. Planning D. Organization E. Control
A. Analysis
Which of the following is enhancing how marketers learn about and interact with customers? A. Big data and marketing analytics Your answer is correct. B. New digital devices C. Big data and social media D. Machine learning E. Social media analytics
A. Big data and marketing analytics
A local drama club wants to increase the membership and attendance at its performances. To do so, it hosts free shows, starts poetry-reading nights, and sends volunteers to the local high school. What is the drama club engaging in? A. Market exchange Your answer is correct. B. Building customer relationships C. Advertising D. Product placement E. Market research
A. Market exchange
________ is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate marketing strategies or mixes. A. Market segmentation Your answer is correct. B. Differentiation C. Positioning D. Marketing strategy E. Market targeting
A. Market segmentation
All of the following are aspects of sustainable marketing EXCEPT which one? A. Observe environmental legislation as it is instituted. Your answer is correct. B. Help protect the natural environment. C. Seek ways to profit by serving the long-run interests of customers and communities. D. Practice caring capitalism by being civic-minded and responsible. E. Deliver value in a socially and environmentally responsible way.
A. Observe environmental legislation as it is instituted.
The focus of which of the following processes not only sets the stage for planning in the firm, but also represents the maintenance and development of the organization's goals and capabilities and its changing marketing opportunities? A. Strategic planning Your answer is correct. B. Marketing planning C. Research and development planning D. Annual planning E. Long-range planning
A. Strategic planning
What is MOST likely to cause a variation in customer-perceived value? A. The customer's opinion of what constitutes value Your answer is correct. B. The cost of advertising to the target market C. The cost to produce a product D. The customer's satisfaction with a product E. The popularity of a product to the customer
A. The customer's opinion of what constitutes value
Which of the following scenarios BEST describes the societal marketing concept? A. Edward's Earthware attempts to make its pottery in a way that satisfies customers but is also environmentally friendly and sustainable over the long term. Your answer is correct. B. Amy's Apple Cart regularly asks its customers what kind of apples they want to buy. C. Robert's Rotors does everything to improve production and lower the cost of its rotors in order to gain customers. D. Tim's Tires constantly tries to improve on the tires it sells by placing all of its efforts into new design research. E. Wanda's Wedding Wear frequently promotes itself to customers through commercials, fliers, and other forms of advertising.
A. Edward's Earthware attempts to make its pottery in a way that satisfies customers but is also environmentally friendly and sustainable over the long term.
Which of the following correctly identifies the five core customer and marketplace concepts? A. Needs, wants, and demands; market offerings; value and satisfaction; exchanges and relationships; and markets Your answer is correct. B. Needs, wants, and demands; market offerings; value and satisfaction; competitors; and profits C. Needs wants, demands, market offerings, and markets D. Needs, wants, and demands; products; value; customers; and competitors E. Needs, wants, and demands; market offerings; value; satisfaction; and markets
A. Needs, wants, and demands; market offerings; value and satisfaction; exchanges and relationships; and markets
What is the correct sequence of the steps in the strategic planning process? A. Define the company mission, design the business portfolio, set company objectives and goals, and plan the market and other functional strategies B. Define the company mission, set company objectives and goals, design the business portfolio, and plan the market and other functional strategies Your answer is correct. C. Set company objectives and goals, define the company mission, design the business portfolio, and plan the market and other functional strategies D. Design the business portfolio, define the company mission, set company objectives and goals, and plan the market and other functional strategies E. Define the company mission, set company objectives and goals, plan the market and other functional strategies, and design the business portfolio
B. Define the company mission, set company objectives and goals, design the business portfolio, and plan the market and other functional strategies
Most standard portfolio analysis methods evaluate strategic business units (SBUs) on their performance in two important dimensions. What are these two dimensions? A. The attractiveness of the SBU's market or industry and the number of products the company produces B. The attractiveness of the SBU's market or industry and the strength of the SBU's position in that market or industry Your answer is correct. C. The number of SBUs the company identifies and the number of products it produces D. The type of market or industry in which the company competes and the strength of the SBU's position in that market or industry E. The number of products a company produces and the number of foreign countries in which the company competes
B. The attractiveness of the SBU's market or industry and the strength of the SBU's position in that market or industry
How does the new concept of marketing differ from the old concept of marketing ("telling and selling")? A. The new concept is more cost-efficient. B. The new concept focuses on customer needs. Your answer is correct. C. The new concept focuses on having a well-developed product. D. The new concept requires less work from marketing executives. E. The new concept focuses on making money.
B. The new concept focuses on customer needs.
What is the importance of selling and advertising in marketing? A. They work only with product placement and promotion. B. They work in tandem with building customer relationships. Your answer is correct. C. They emphasize the need for marketing myopia. D. They can substitute for a faulty product. E. They are not essential if the product is good.
B. They work in tandem with building customer relationships.
To design a winning marketing strategy, what are the two important questions a marketing manager must answer? A. How can we serve our customers best? How can we maximize profits? B. What customers will we serve? How can we serve these customers best? Your answer is correct. C. Who are our competitors? How can we beat our competitors? D. What markets should we enter? How do we maximize sales in those markets? E. What customers will we serve? How can we maximize profits?
B. What customers will we serve? How can we serve these customers best?
The ultimate goal of the marketing process is to do which of the following? A. Develop relationships with customers B. Evaluate customer needs C. Receive value from customers Your answer is correct. D. Create a quality product E. Determine a target market
C. Receive value from customers
Ethel and Jan have just started a new company, Jantel, Inc., and are having trouble deciding which marketing path to take to drive sales. Ethel believes they should follow a make-and-sell philosophy that focuses on improving their product, whereas Jan believes they should be more customer-oriented and find the right products for their customers. Which of the following BEST describes this situation? A. Should Jantel, Inc., follow a product or selling concept? B. Should Jantel, Inc., follow a production or selling concept? C. Should Jantel, Inc., follow a product or marketing concept? Your answer is correct. D. Should Jantel, Inc., follow a societal marketing or production concept? E. Should Jantel, Inc., follow a marketing concept or a societal marketing concept?
C. Should Jantel, Inc., follow a product or marketing concept?
How has the internet MOST affected companies and customers? A. The internet has increased the potential customer base. B. The internet has made advertising easier. C. The internet has allowed consumers to take marketing content and share it. Your answer is correct. D. The internet has lowered prices. E. The internet has made creating an image more important.
C. The internet has allowed consumers to take marketing content and share it.
Which marketing management orientation holds that a firm should have a customer focus to achieve sales and profits? A. The production concept B. The societal marketing concept C. The marketing concept Your answer is correct. D. The selling concept E. The product concept
C. The marketing concept
Which of the following is NOT one of the four P's of the marketing mix? a. Promotion b. Production c. Product d. Place e. Price
b. Production
Which of the following describes the current trend in businesses regarding relationships with customers? A. Maintain strong relationships with as many customers as possible. B. Gather as many customers as possible on a surface level. C. Hand-pick the most profitable customers and allow them more input. Your answer is correct. D. Avoid developing relationships with customers at all. E. Find a few customers and develop strong relationships with them.
C. Hand-pick the most profitable customers and allow them more input.
Which of the following represent market offerings? A. Products, services, needs, and exchanges B.mNeeds, wants, products, and advertisements C. Products, services, information, and experiences Your answer is correct. D. Value, satisfaction, sales, and profits E. Products, services, needs, and wants
C. Products, services, information, and experiences
Bertram's Beer structures its company in such a way as to encourage its most profitable older customers to remain loyal while also targeting a new generation of customers. What is Bertram's Beer attempting to build? A. Share of customer B. Customer lifetime value C. Partner relationships D. Customer equity Your answer is correct. E. Customer loyalty
D. Customer equity
Asher Airlines instituted a marketing program whose intent is to create a relationship with customers with seat upgrades and free miles for their continued patronage. What customer relationship tool is Asher Airlines using? A. Customer-perceived value B. Consumer-generated marketing C. Direct marketing D. Frequency marketing program Your answer is correct. E. Mass-media marketing
D. Frequency marketing program
When a company chooses a group of customers to serve, it is engaging in which of the following? A. Differentiation B. Societal marketing C. Market segmentation D. Target marketing Your answer is correct. E. Demand management
D. Target marketing
What is the ultimate aim of customer relationship management? A. To increase share of customer B. To produce high customer profitability C. To maintain high customer loyalty D. To produce high customer equity Your answer is correct. E. To establish brand equity
D. To produce high customer equity
The key to learn about and engage with individual customers is to blend the new digital technologies and approaches with traditional marketing to create _______________________. A. customer-focused digital applications B. superior social media, mobile apps, and television advertising C. comprehensive marketing plans D. a smoothly integrated marketing strategy and mix Your answer is correct. E. promotions with wide customer appeal
D. a smoothly integrated marketing strategy and mix
A company rarely gets 100 percent of a customer's purchases for a product category. The share it does get of the customer's purchasing in its product categories is called ________. A. customer defections B. share of market C. customer lifetime value D. share of customer Your answer is correct. E. customer equity
D. share of customer
Selling and advertising are part of a larger set of marketing tools that work together to satisfy customer needs and build customer relationships known as ________. A. customer-engagement marketing B. market offerings C. customer equity D. the marketing mix Your answer is correct. E. the marketing concept
D. the marketing mix
The first step of the marketing process is to ___________________. A. capture value from customers to create profits and customer equity B. build profitable relationships C. design a customer-driven marketing strategy D. understand the marketplace, which includes customer needs and wants Your answer is correct. E. construct an integrated marketing program that delivers superior value
D. understand the marketplace, which includes customer needs and wants
What are the five marketing management functions used to manage the marketing process? A. Writing an executive summary, conducting a situation analysis, planning, setting budgets, and outlining controls B. Product development, pricing, customer service, promotion, and cost control C. Planning, segmenting, targeting, positioning, and implementing D. Analysis, planning, implementation, organization, and control Your answer is correct. E. Segmenting, targeting, positioning, differentiation, and control
D. Analysis, planning, implementation, organization, and control
What are the variables in a company's marketing mix? A. Product, partners, profits, and place B. Profits, product, partners, and people C. Product, price, profits, and people D. Product, price, place, and promotion Your answer is correct. E. Product, price, promotion, and people
D. Product, price, place, and promotion
Scott Frost has been coming to Aldwin's Diner for 20 years and refuses to go anywhere else. Joseph, the owner of Aldwin's, loves Scott's loyalty but admits he purchases only a cup of coffee at each visit. Scott would BEST be described as which of the following? A. True friend B. Stranger C. Butterfly D. True believer E. Barnacle
E. Barnacle
Which of the following enhances how marketers learn about and interact with customers? A. Big data and social media B. Social media analytics C. Machine learning D. New digital devices E. Big data and marketing analytics
E. Big data and marketing analytics
Which of the following is included in a broad definition of marketing? A. Creating customer value, building customer relationships, and having a strong selling orientation B. Advertising, selling, and developing quality products C. Selling, advertising, and promoting D. Satisfying customers, beating competitors, and maximizing profits E. Creating customer value, building customer relationships, and engaging customers
E. Creating customer value, building customer relationships, and engaging customers
Julie's Jump Rope Emporium is a new company. From a marketing standpoint, what is the FIRST thing Julie's Jump Rope Emporium needs to do? A. Develop a plan to sell as many jump ropes as possible B. Develop relationships with the customers who come to purchase jump ropes C. Advertise the company as a location in which to purchase jump ropes D. Develop the best jump rope possible E. Determine who in the community wants or needs a jump rope
E. Determine who in the community wants or needs a jump rope
The product/market expansion grid is a tool that allows marketers to identify growth opportunities. Of the following, which represent the four components of the product/market expansion grid? A. Global expansion, domestic expansion, customer expansion, and product expansion B. Product growth, market growth, customer growth, and profitable growth C. Product penetration, product development, diversification, and global expansion D. Product development, diversification, domestic expansion, and global expansion E. Market penetration, market development, product development, and diversification
E. Market penetration, market development, product development, and diversification
How do market demands relate to needs and wants? A. Wants and demands are equivalent, and both satisfy needs at the same rate. B. Demands result in customers needing and wanting a particular product. C. Needs wants, and demands all describe the same state in the customer. D. Needs and wants outweigh demands in the customer's mind. E. Needs are satisfied by wants, and buying power converts wants into demand.
E. Needs are satisfied by wants, and buying power converts wants into demand.
Which marketing philosophy holds that consumers will favor products that offer the most in quality, performance, and innovative features? A. Societal marketing concept B. Selling concept C. Production concept D. Marketing concept E. Product concept
E. Product concept
What are the two keys to building lasting customer relationships? A. Value and customer service B. Satisfaction and sales promotions C. Innovative products and low prices D. Customer service and quality products E. Superior customer value and satisfaction
E. Superior customer value and satisfaction
What is the main problem that sellers suffering from marketing myopia face? A. They focus on customer wants instead of demands. B. They focus more on the customer's experience than on the product itself. C. They focus on brand image to the detriment of quality. D. They focus more on profit than on the customer's benefit. E. They focus more on products than on the customer's underlying need.
E. They focus more on products than on the customer's underlying need.
Why is good marketing management critical? A. To ensure that products are promoted well enough to encourage a large flow of customers B. To ensure that the company is always on the cutting edge of product development C. To ensure that investments are properly spent in order to maximize profits D. To ensure that the company has a positive image in the eyes of the community E. To ensure that the company serves as many customers as it can and as well as it can
E. To ensure that the company serves as many customers as it can and as well as it can
Marketing provides a guiding philosophy for a company's strategic planning. This philosophy, known as __________, focuses on creating customer value and building profitable relationships with important consumer groups. A. customer relationship management B. partner relationship management C. the value network D. value chain management E. the marketing concept
E. the marketing concept
Vaughn's Video has suffered because more people are subscribing to online streaming sites such as Netflix, YouTube, iTunes, Amazon, and Hulu. Which of the following marketing trends has NOT affected Vaughn's Video? A. The changing economic environment B. The digital age C. Rapid globalization D. Sustainable marketability E. Not-for-profit marketing
E. Not-for-profit marketing
_______________ compose a company's external value delivery network A. Suppliers, distributors, and other company departments B. Suppliers, customers, and other company departments C. Other company departments, customers, and competitors D. Customers, competitors, and suppliers E. Suppliers, distributors, and customers
E. Suppliers, distributors, and customers
Many of Zappos' more traditional rivals focus greater attention on the attributes of the products and services they sell rather than on the benefits and experiences produced by their market offerings. This trap is sometimes referred to as __________. a. product myopia b. marketing paranoia c. marketing malpractice d. marketing myopia e. marketing management
d. marketing myopia
Zappos creates __________ for its customers by offering a wide selection, higher levels of service, and customer-friendly return policies. a. exchanges b. satisfaction c. equity d. value e. demands
d. value
While Zappos' pricing snafu cost the company nearly $1.6 million dollars, the company chose to fulfill all the orders because it realized the long-term loss of patronage from these customers could be even more expensive. A key metric that measures the long-term profitability of individual customers or groups of customers is known as __________. a. customer relationship value b. customer retention c. ROI d. customer satisfaction e. customer lifetime value
e. customer lifetime value
Zappos offers customers wide selection, excellent service, and customer-friendly return policies. In return, customers are willing to pay more for the company's offerings. This act of obtaining a desired object from someone by offering something in return is known as __________. a. satisfaction b. engagement c. valued. marketing e. exchange
e. exchange
