Marketing Chpt 1

(C) Customer lifetime value

A Subaru representative has a solid relationship with Phil, a satisfied customer. Phil loves Subaru and will not accept anything else. The representative determines that if Phil continues to do business with Subaru 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 Subaru representative has calculated Phil's _______. (A) Value of referrals (B) Commitment (C) Customer lifetime value (D) Monetary and nonmonetary benefits (E) Relationship marketing

(A) Customer lifetime value

Anthony works at a local electronics retailer. He has two customers in particular that he sees regularly. One customer, Mr. Johnson, comes in frequently asking about new deals. However, he rarely buys anything, and when he does buy something it is usually small. The other customer, Mr. Montoya, comes in a little less frequently. He does not purchase products all the time, but when he does the products are expensive. Anthony recognizes that Mr. Montoya is a more valuable customer over time than Mr. Johnson. He has therefore worked hard to develop a strong relationship with Mr. Montoya. What marketing method is Anthony most likely using to direct his actions? (A) Customer lifetime value (B) A sales orientation (C) Customer feedback (D) A customer loyalty program (E) The marketing concept

(B) Sales orientation

Charlotte loves her mom's edible cookie dough recipe, and she assumes everyone else will too. She starts a cookie dough business. Charlotte views promotion, such as advertising and personal selling, as the most important activities needed to sell her product. She figures that consumers only have to learn about her product before becoming loyal and steadfast customers. What type of orientation does Charlotte seem to embrace? (A) Promotion orientation (B) Sales orientation (C) Market orientation (D) Production orientation (E) Exchange orientation

(D) Target market

Kroger decided to introduce a new product that appeals to Hispanic consumers. While the product is highly successful among Hispanic consumers, other ethnic groups seem to like the product as well. For this product, Hispanic consumers comprise Kroger's _______. (A) Community (B) Exchange (C) Marketing mix (D) Target market (E) Marketing environment

(C) Interdependent

Marketing environmental forces are often _______. (A) Controllable (B) Non-influential (C) Interdependent (D) Stable (E) Easy to predict

(D) 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 $20 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 $20 parking lot? (A) The non-monetary cost of risk (B) The monetary cost of time (C) The monetary cost of the effort involved (D) The non-monetary cost of time (E) The $20 monetary cost

(B) controllable; uncontrollable

Subaru developed a new luxury car model, but, after performing some market tests, it realized that it was pricing its vehicles too high, even for the luxury market. Subaru had to make some changes in its marketing mix. Unfortunately, it made the mistake of launching its product right when a recession hit. As unemployment rose, sales of luxury products such as Subaru's new luxury vehicle tend to decrease. In this case, the pricing of its vehicle is a(n) _______ force for Subaru, while the economic downturn is a(n) _______ factor. (A) stable; unstable (B) controllable; uncontrollable (C) unpredictable; predictable (D) predictable; unpredictable (E) uncontrollable; controllable

(C) Exchanges

The essence of marketing is to develop satisfying _______ from which both customers and marketers benefit. (A) Marketing mixes (B) Target markets (C) Exchanges (D) Values (E) Environmental factors

(E) Market orientation

The marketing concept is based upon the idea that an organization should try to provide products that satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals. During which orientation (time period) are marketers most likely to adopt the marketing concept? (A) Exchange orientation (B) Production orientation (C) Promotion orientation (D) Sales orientation (E) Market orientation

(B) Establish an information system to discover customers' real needs

What is the first step for marketers in implementing the marketing concept? (A) Engage in personal selling or advertising to promote products that customers desire (B) Establish an information system to discover customers' real needs (C) Modify existing products to meet customer needs more effectively (D) Modify a communication system that allows information to be disseminated throughout the organization (E) Develop a feedback system so customers can describe their thoughts about a product

(B) Customer value = customer benefits - customer costs

Which of the following equations describes customer value? (A) Customer value = customer costs - customer benefits (B) Customer value = customer benefits - customer costs (C) Customer value = customer benefits - price (D) Customer value = customer benefits - opportunity costs (E) Customer value = income - price

(E) It requires four conditions to take place

Which of the following statements is true about a marketing exchange? (A) An exchange only needs to provide a benefit to one party (B) An exchange will always take place if four conditions are met (C) Products in an exchange must be traded for money (D) Seeing an advertisement is an example of an exchange (E) It requires four conditions to take place

(D) Customers

Which stakeholders are the focal point of all marketing activities? (A) Suppliers (B) Communities (C) Regulators (D) Customers (E) Employees

(A) Use inexpensive digital marketing tools to inform the community about an upcoming fundraising event

You are advising a local nonprofit on strategy. The nonprofit supports cancer research and relies entirely on donations. You recommend that the nonprofit engage in marketing activities. The executive director tells you that because it is a nonprofit that does not engage in selling activities and has a small budget, the nonprofit has no use for marketing. You disagree and explain that marketing is not just for for-profit organizations. You explain the different ways the nonprofit can engage in marketing without changing its practices or the mission. Which of the following marketing activities would be most feasible for this nonprofit? (A) Use inexpensive digital marketing tools to inform the community about an upcoming fundraising event (B) Purchase an advertisement in a state newspaper that is popular in the local community about the nonprofit (C) Engage in extensive marketing research to determine what its contributors want (D) Send out coupons for the organization's products in the local bulletin (E) Get volunteers to sell t-shirts and other items at the nonprofit's major events