Principles of Marketing

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 delight. D) Losing a customer hardly makes a difference to a company's sales. E) The aim of customer relationship management is to focus solely on customer satisfaction.

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

The ________ prohibits monopolies and activities (price-fixing, predatory pricing) that restrain trade or competition in interstate commerce. A) Sherman Antitrust Act B) Lanham Trademark Act C) Fair Packaging and Labeling Act D) CAN-SPAM Act E) Magnuson-Moss Warranty Act

A) Sherman Antitrust Act

Which of the following is true with regard to mail questionnaires? A) The response rate of mail questionnaires is often very low. B) Mail questionnaires are highly flexible. C) The researcher has maximum control over the mail questionnaire sample. D) Mail questionnaires are unsuitable for collecting large amounts of information about respondents. E) Respondents always provide honest answers to personal questions on mail questionnaires.

A) The response rate of mail questionnaires is often very low.

A company's broad mission leads it to develop all of the following EXCEPT ________. A) budget objectives B) business objectives C) sales objectives D) marketing objectives E) customer engagement objectives

A) budget objectives

A regional supermarket chain runs print, radio, and television advertisements announcing that 1 percent of its sales is donated to local after-school programs for underprivileged youth. This is an example of ________. A) cause-related marketing B) generational marketing C) sustainable marketing D) market segmentation E) product differentiation

A) cause-related marketing

In a simple random sample, ________. A) every member of the population has a known and equal chance of selection B) the population is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of the groups to interview C) the researcher selects the easiest population members from which to obtain information D) the population is divided into mutually exclusive groups and random samples are drawn from each group E) the researcher finds and interviews a prescribed number of people in each of several categories

A) every member of the population has a known and equal chance of selection

In the marketing mix, place includes ________. A) logistics B) discounts C) sales promotion D) advertising E) packaging

A) logistics

Sam has been directed to study the demographic, economic, political, and cultural forces that affect an organization. In this instance, Sam has been directed to study the ________ of the organization. A) macroenvironment B) microenvironment C) internal environment D) marketing mix E) marketing intermediaries

A) macroenvironment

Seagull Terrace offers its customers good accommodations, local delicacies, and amazing seaside views. The overall experience provided at the motel is a part of its ________. A) market offering B) target market C) market segment D) product positioning E) marketing mix

A) market offering

________ marketing is practiced by an organization that understands and anticipates customer needs even better than customers themselves do and creates products and services to meet current and future needs. A) Customer-driven B) Customer-driving C) Affinity D) Societal E) Ambush

B) Customer-driving

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) full partnerships B) basic relationships C) causal relationships D) club marketing programs E) inverse relationships

B) basic relationships

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

B) demands

Marketing plays a key role in the company's strategic planning in all of these ways EXCEPT ________. A) providing input to identify attractive market opportunities B) designing new products from scratch C) creating customer value and building profitable relationships with customer groups D) designing strategies for reaching a unit's objective E) providing a guiding philosophy

B) designing new products from scratch

Which of the following is the first step of business portfolio planning? A) shaping the future portfolio by developing strategies for growth and downsizing B) determining which businesses should receive more, less, or no investment C) identifying internal strengths and weaknesses D) identifying future opportunities E) determining short-term goals

B) determining which businesses should receive more, less, or no investment

Juanita Petino, a nutritionist, decided to test the effects of two breakfast cereals, Kinglo and Loopy, on different consumer groups. For the purpose of her study, she divided 20 volunteers into two groups and asked the members of one group to have Kinglo cereal and the members of the other group to have Loopy cereal for breakfast. She decided to compare the responses of the volunteers after a week to gain deeper insights into consumer attitude. In this instance, Juanita is using ________. A) niche marketing B) experimental research C) product differentiation D) ethnographic research E) viral marketing

B) experimental research

Lark Inc., an American electronics company, is currently reviewing new geographical markets to sell its highly popular televisions. By 2020, it plans to open new stores across all the major South Asian cities. Lark is most likely following a ________ strategy. A) local marketing B) market development C) diversification D) product adaptation E) product development

B) market development

Rob has been asked by his manager to identify a group of potential customers who would respond in a similar way to a given set of marketing efforts. In this instance, Rob has been asked to identify a ________. A) new product B) market segment C) marketing intermediary D) brand E) product line

B) market segment

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

B) marketing

In CRM, ________ techniques are used to sort through data and locate useful findings about customers. A) data warehousing B) marketing analytics C) niche marketing D) data conservancy E) mass marketing

B) marketing analytics

Rather than assuming that strategic options are bounded by the current environment, firms adopting a(n) ________ to the marketing environment develop strategies to change the environment. A) environmental stance B) proactive stance C) reactive stance D) relativist approach E) no-compromise approach

B) proactive stance

Which of the following generational groups is most likely to represent the present owners of cottages surrounding Witmer Lake? A) Baby Boomers B) Echo Boomers C) Gen Xers D) Lost Generation E) Millennials

C) Gen Xers

Which of the following actions should a marketer take in response to the new economy? A) Offer selected discounts. B) Cut marketing budgets. C) Hold the line on prices. D) Cut costs. E) Discontinue products.

C) Hold the line on prices.

Joe Kerry, owner of a small bakery, wants to obtain marketing insights to improve his business. Joe has a limited budget and would like to gather free secondary data. What is the best option for Joe? A) mail questionnaires B) focus group interviews C) Internet search engines D) personal interviews E) commercial online databases

C) Internet search engines

Which of the following is true with regard to a SWOT analysis? A) It classifies SBUs into four distinct categories. B) It measures customer response to a new product. C) It evaluates the company's overall strengths. D) It evaluates the growth potential of a market segment. E) It ignores the threats faced by a company while assessing its situation in the market.

C) It evaluates the company's overall strengths.

________ is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. A) Product marketing B) Strategic planning C) Marketing research D) Market segmentation E) Causal research

C) Marketing research

Which of the following is true with regard to strategic planning? A) At the corporate level, the company starts the strategic planning process by determining what portfolio of businesses and products is best for the company. B) A strategic plan deals with a company's short-term goals. C) The focus of strategic planning is to define a game plan for long-run survival and growth. D) The strategic plan is a statement of an organization's purpose. E) Strategic planning involves identifying segments of consumers with identical preferences.

C) The focus of strategic planning is to define a game plan for long-run survival and growth.

The single most important demographic trend in the United States is the ________. A) changing age structure of the population B) mobility of families C) changing family structure of the population D) increasing number of professional jobs E) increasing birth rate

C) changing family structure of the population

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

C) customer equity

Effective positioning begins with ________. A) pricing B) diversification C) differentiation D) promotion E) segmentation

C) differentiation

Amor, a successful brand of women's clothing, recently introduced a line of fitness equipment. This is an example of ________. A) mass customization B) niche marketing C) diversification D) prospecting E) product adaptation

C) diversification

Elmo Corp., a manufacturer of personal computers and printers, recently established an office furniture exporting business. This is an example of ________. A) niche marketing B) local marketing C) diversification D) product adaptation E) downsizing

C) diversification

Customer relationship management (CRM) helps ________. A) firms monitor and minimize employee turnover B) customers manage information about different sellers in the market C) firms manage customer touch points to maximize customer loyalty D) customers locate the best deals in the market E) firms create artificial demand in the market

C) firms manage customer touch points to maximize customer loyalty

The environmental sustainability movement encourages companies to ________. A) actively resist social change B) operate freely in the black market C) go beyond government regulations D) institute deregulation E) curb organizational anarchy

C) go beyond government regulations

Redrunners Inc., a manufacturer of sports merchandise, is gathering customer opinions about the firm's new sports shoe line. A team of researchers in the company invited eight regular customers to talk about the new line of shoes, asking why they chose to buy the shoe and what they disliked most about its design. A moderator was present to monitor the discussion. Which of the following types of contact methods is Redrunners using? A) individual interviewing B) mail questionnaire C) group interviewing D) mass survey E) mall intercept

C) group interviewing

Primary data consist of ________. A) data that does not age B) data obtained from the public domain C) information collected for the specific purpose at hand D) information that already exists somewhere, having been collected for another purpose E) information that is the least expensive and the easiest to obtain

C) information collected for the specific purpose at hand

Maria works for Sigma Inc., a firm that helps companies target and promote their products to the right markets. Sigma is most likely a ________. A) financial intermediary B) physical distribution firm C) marketing services agency D) reseller E) wholesaler

C) marketing services agency

Companies and their products often create ________. A) new consumers B) new technologies C) new industries and their structures D) new advertising campaigns E) new manufacturing methods

C) new industries and their structures

Renovations of the guest rooms at the Seagull Terrace and plans to add an indoor pool area are examples of the ________ concept. A) selling B) marketing C) product D) production E) societal marketing

C) product

In a company, the job of a chief privacy officer is to ________. A) ensure timely product deliveries B) detect patent infringements and copyright violations C) safeguard the privacy of a firm's customers D) engage in niche marketing E) safeguard the privacy of senior executives

C) safeguard the privacy of a firm's customers

Customers can be grouped and served in various ways based on several factors. These include all of the following EXCEPT ________ factors. A) psychographic B) behavioral C) technological D) demographic E) geographic

C) technological

Which of the following is an accurate statement about the diversity of the American population? A) African Americans represent the largest non-white segment of the population. B) More than 20 percent of the people living in the United States were born in another country. C) By 2050, the Asian population is estimated to remain at 4.7 percent. D) By 2060, Hispanics are estimated to be 28 percent of the population. E) The United States has become more of a "melting pot" than a "salad bowl."

D) By 2060, Hispanics are estimated to be 28 percent of the population.

________ refers to the measurement of brain activity to learn how consumers feel and respond. A) Biometrics B) Demographics C) Sampling D) Neuromarketing E) Psychographics

D) Neuromarketing

A company's broad mission leads to ________. A) increasing profits and more customers B) increasing sales and decreasing costs C) a higher share price D) a hierarchy of objectives, including business objective and marketing objectives E) increased market share and increasing profitability

D) a hierarchy of objectives, including business objective and marketing objectives

Mission statements should ________ and be defined in terms of ________. A) be technology oriented; meeting the self-actualization needs of customers B) be product oriented; satisfying the esteem needs of customers C) embody the company's short-term plans; current opportunities D) be market oriented; satisfying basic customer needs E) address sales and profits; the net return on investments

D) be market oriented; satisfying basic customer needs

A pastor from Kansas believes that adultery is immoral. This refers to the pastor's ________. A) secondary belief B) acquired belief C) social identity D) core belief E) cultural orientation

D) core belief

Within a company, who is most likely to perform strategic planning? A) the president and vice presidents B) the accounting and finance departments C) the marketing and sales departments D) cross-functional teams of divisional managers close to their markets E) the manufacturing and production departments

D) cross-functional teams of divisional managers close to their markets

Cape Sky Inc., an international insurance and financial services company, is the primary sponsor of the annual New York City Marathon, which is attended by over one million fans and watched by approximately 300 million viewers worldwide. The Cape Sky logo and name are displayed throughout the racecourse. Cape Sky most likely sponsors this event in order to appeal to which of the following types of publics? A) financial publics B) citizen-action publics C) government publics D) general publics E) internal publics

D) general publics

Crocus, a gift store, specializes in serving customer segments that major competitors overlook and ignore. Which of the following best describes Crocus? A) market follower B) market challenger C) early adopter D) market nicher E) laggard

D) market nicher

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

D) marketing myopia

Bead Beautiful is a jewelry brand targeted at preteen girls. What needs do NOT fit with this audience, as the marketing team develops a value proposition for Bead Beautiful? A) variety of colors in products B) price C) quality of materials D) mature designs E) ease of availability

D) mature designs

A value marketer is most likely to ________. A) offer consumers superior quality of goods and services at a very high price B) offer consumers only those products that are associated with status and prestige C) offer consumers low quality goods and services at very low prices D) offer consumers a balanced combination of product quality at a fair price E) deny discounts to consumers to increase profits

D) offer consumers a balanced combination of product quality at a fair price

Which of the following is most likely an advantage of survey research? A) The flexibility of survey research is high; it can be used to obtain many different kinds of information in many different situations. 76) Which of the following contact methods is the most cost-effective? A) telephone interviews B) individual interviews C) in-depth interviews D) online surveys E) group interviews

D) online surveys

Of the 141 companies on the list, Jason chose to survey only 75 of them. He sent surveys to both small as well as large companies. If Jason selected survey recipients randomly from two mutually exclusive groups comprised of small and large companies respectively, he most likely used a ________. A) simple random sample B) judgment sample D) stratified random sample E) quota sample

D) stratified random sample

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

D) target marketing

Many firms today use RFID technology to ________. A) identify new target markets B) analyze threats and opportunities in the macroenvironment C) move toward environmental sustainability D) track products through various points in the distribution channel E) track patterns of online consumer behavior

D) track products through various points in the distribution channel

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

D) understand the marketplace and customer needs and wants

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

D) value creation and exchange

A good marketing information system balances the information users ________ to have against what they ________ and what is ________ to offer. A) request; want; affordable B) demand; should request; time-efficient C) want; are unaware of; the newest technology D) would like; need; feasible E) don't need; can afford; available

D) would like; need; feasible

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

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

Brad works with a reputable retailer and leads a team that collects market information from a wide variety of sources ranging from marketing research studies to monitoring online conversations where consumers discuss Brad's firm or its products. Brad's team uses this information to arrive at a better understanding of consumers' behavior and their buying motives. This, in turn, allows Brad's firm to successfully generate more value for consumers. Brad leads the ________ team. A) product development B) strategy implementation C) human resource D) customer relationship management E) customer insights

E) customer insights

In the context of geographical shifts in population, the migration toward ________ areas has resulted in a rapid increase in the number of people who telecommute. A) urban B) remote C) rural D) metropolitan E) micropolitan

E) micropolitan

A market segment consists of consumers who respond in different ways to a given set of marketing efforts. T/F

F

Fast Food, Inc. views marketing as the process of finding and retaining profitable customers by providing them with the food they want. Fast Food, Inc. practices societal marketing. T/F

F

On the BCG matrix, "question marks" are high-growth, high-share businesses or products. T/F

F

T/F An obvious disadvantage of using customer relationship management is its ineffectiveness in pinpointing high-value customers.

F

T/F Internal information is almost always sufficient for making marketing decisions.

F

T/F The goal of competitive marketing intelligence is to evaluate and prevent high employee turnover.

F

T/F The introduction of new technologies is equally beneficial to all industries.

F

T/F With the recent explosion of information technologies, companies are finding it difficult to generate marketing information in great quantities.

F

T/F Companies that watch variables such as income, cost of living, and interest rates, are more likely to be negatively affected by an economic change such as a recession or boom.

F

T/F Prior to the Great Recession of 2008/2009, American consumer spending was careful and restrained.

F

An experience such as a vacation can be defined as a market offering. T/F

T

Each department in a company can be thought of as a link in the company's internal value chain. T/F

T

T/F The most obvious advantages that Internet-based survey research offers over mail and personal interviewing approaches are high speed and low costs.

T

T/F Marketing success requires building relationships with other company departments, suppliers, marketing intermediaries, competitors, various publics, and customers, which combine to make up the company's value delivery network.

T

The difference between human needs and wants is that needs are not created by marketers. T/F

T

The four Cs concept adopts the buyer's view of the market T/F

T

The marketing mix refers to the set of marketing tools the firm uses to implement its marketing strategy. T/F

T

The purpose of strategic planning is to find ways in which your company can best use its strengths to take advantage of attractive opportunities in the environment. T/F

T

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. T/F

T

The single most important demographic trend in the United States that marketers should understand is the changing family structure of the population. T/F

T