Marketing CH 1 practice test

1) All of the following are accurate descriptions of modern marketing, EXCEPT which one?

A) Marketing is the creation of value for customers.
B) Marketing is managing profitable customer relationships.
C) Selling and advertising are synonymous with marketing.
D) Marketing involves satisfying customers’ needs.
E) Marketing is used by for-profit and not-for-profit organizations.

C) Selling and advertising are synonymous with marketing.
According to the opening scenario, the Tide marketing team is MOST concerned about which of the following?
A) maintaining its brand share
B) fostering customers’ emotional connections with their product
C) advertising their product’s benefits
D) comparing the effectiveness of their product to other brands
E) incorporating consumer-generated marketing in the marketing mix
B) fostering customers’ emotional connections with their product
According to management guru Peter Drucker, “The aim of marketing is to ________.”
A) create customer value
B) identify customer demands
C) make selling unnecessary
D) set realistic customer expectations
E) sell products
C) make selling unnecessary
________ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through value creation and exchange.
A) Selling
B) Advertising
C) Bartering
D) Marketing
E) Negotiating
D) Marketing
Which steps of the five-step marketing process are about understanding customers, creating customer value, and building strong customer relationships?
A) the first two only
B) the first three only
C) the first four only
D) the last three only
E) the last four only
C) the first four only
According to the simple five-step model of the marketing process, a company needs to ________ before designing a customer-driven marketing strategy.
A) determine how to deliver superior value
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 key components of a marketing program
D) understand the marketplace and customer needs and wants
________ are human needs as shaped by individual personality and culture.
A) Needs
B) Wants
C) Demands
D) Values
E) Exchanges
B) Wants
When backed by buying power, wants become ________.
A) social needs
B) demands
C) physical needs
D) self-esteem needs
E) exchanges
B) demands
What do companies call a set of benefits that they promise to consumers to satisfy their needs?
A) market offering
B) value proposition
C) demand satisfaction
D) need proposition
E) evoked set
A) market offering
Which of the following refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs?
A) selling myopia
B) marketing management
C) value proposition
D) marketing myopia
E) the product concept
D) marketing myopia
When marketers set low expectations for a market offering, the biggest risk they run is ________.
A) disappointing loyal customers
B) decreasing customer satisfaction
C) failing to attract enough customers
D) failing to understand their customers’ needs
E) incorrectly identifying a target market
C) failing to attract enough customers
________ is the act of obtaining a desired object from someone by offering something in return.
A) A value proposition
B) Exchange
C) Bribery
D) Value creation
E) Donation
B) Exchange
A(n) ________ is the set of actual and potential buyers of a product.
A) market
B) audience
C) group
D) segment
E) exchange
A) market
Consumer research, product development, communication, distribution, pricing, and service are all core ________ activities.
A) exchange
B) marketing
C) management
D) production
E) customer relationship management
B) marketing
Which of the following is the most likely result of a marketing strategy that attempts to serve all potential customers?
A) All customers will be delighted.
B) Customer-perceived value will increase.
C) Customer evangelists will become unpaid salespersons for the service or product.
D) Not all customers will be satisfied.
E) The company will need to follow up with a demarketing campaign.
D) Not all customers will be satisfied.
In the case of excess demand, ________ may be required to reduce the number of customers or to shift demand temporarily or permanently.
A) marketing
B) demarketing
C) value marketing
D) surplusing
E) negotiating
B) demarketing
The art and science of choosing target markets and building profitable relationships with them is called ________.
A) marketing management
B) positioning
C) segmentation
D) selling
E) differentiation
A) marketing management
Selecting which segments of a population of customers to serve is called ________.
A) market segmentation
B) positioning
C) customization
D) target marketing
E) managing the marketing effort
D) target marketing
Which of the following is the set of benefits a company promises to deliver the customer to satisfy their needs?
A) a money-back guarantee
B) low pricing
C) good customer service
D) a value proposition
E) an attribute
D) a value proposition
Which customer question is answered by a company’s value proposition?
A) “Why should I buy your brand rather than a competitor’s?”
B) “How does your brand benefit me and society?”
C) “What are the costs and benefits of your brand?”
D) “What kind of experience will I have with products and services associated with this brand?”
E) “What are the benefits of being a loyal consumer of your brand?”
A) “Why should I buy your brand rather than a competitor’s?”
Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain?
A) production concept
B) product concept
C) selling concept
D) marketing concept
E) social marketing concept
A) production concept
Which of the following marketing management concepts is most likely to lead to marketing myopia?
A) customer-driven marketing
B) customer-driving marketing
C) social marketing
D) selling
E) production
E) production
The ________ concept is aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer the most in quality, performance, and innovative features.
A) product
B) production
C) customer
D) marketing
E) promotion
A) product
The product concept says that a company should do which of the following?
A) improve marketing of its best products
B) market only those products with high customer appeal
C) focus on the target market and make products that meet those customers’ demands
D) focus on making continuous product improvements
E) make promoting products the top priority
D) focus on making continuous product improvements
“Build a better mousetrap and the world will beat a path to your door” reflects the ________ concept.
A) production
B) marketing
C) selling
D) product
E) target marketing
D) product
Which concept calls for aggressive selling and focuses on generating transactions to obtain profitable sales?
A) marketing
B) production
C) product
D) selling
E) societal marketing
D) selling
Which concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do?
A) product
B) production
C) selling
D) marketing
E) equity
D) marketing
A firm that uses the selling concept takes a(n) ________ approach.
A) outside-in
B) myopic
C) inside-out
D) societal
E) customer service
C) inside-out
) According to the production concept, consumers will favor products that are ________ and ________.
A) satisfying; quality focused
B) advertised; affordable
C) in high demand; hard to find
D) segmented; convenient
E) available; affordable
E) available; affordable
) Herb Kelleher of Southwest Airlines used the marketing concept in his successful organization. Having a customer department rather than a marketing department, as suggested by Kelleher, is an example of a(n) ________ perspective.
A) outside-in
B) external
C) inside-out
D) modern
E) traditional
A) outside-in
Though often criticized, the selling concept is particularly appropriate and effective with which of the following types of products?
A) convenience
B) shopping
C) specialty
D) unsought
E) demarketed
D) unsought
Which of the following reflects the marketing concept philosophy?
A) “We don’t have a marketing department; we have a customer department.”
B) “We’re in the business of making and selling superior products.”
C) “We build them so you can buy them.”
D) “When it’s profits versus customers’ needs, profits will always win out.”
E) “You won’t find a better deal anywhere.”
A) “We don’t have a marketing department; we have a customer department.”
Customer-driven marketing usually works well when ________ and when customers ________.
A) a clear need exists; are difficult to identify
B) customers know what they want; are loyal to the brand
C) a firm can deliver the goods desired; are thoroughly researched
D) a clear need exists; know what they want
E) a need exists; don’t know what they want
D) a clear need exists; know what they want
Marie Ortiz enjoys her work at Futuristic Designs, Inc. Her organization understands and anticipates customer needs even better than customers themselves do and creates products and services to meet current and future wants and demands. Marie’s firm practices ________ marketing.
A) customer-driven
B) customer-driving
C) relationship
D) donor
E) social
B) customer-driving
When customers don’t know what they want or don’t even know what’s possible, the most effective strategy is ________ marketing.
A) customer-driven
B) customer-driving
C) societal
D) production
E) product
B) customer-driving
) The societal marketing concept seeks to establish a balance between consumer short-run wants and consumer ________.
A) short-run costs and profits
B) short-run ethics
C) long-run welfare
D) immediate health
E) value propositions
C) long-run welfare
Which concept holds that firms must strive to deliver value to customers in a way that maintains or improves the consumer’s and society’s well-being?
A) marketing
B) selling
C) product
D) societal marketing
E) equity
D) societal marketing
The three areas of consideration that should be balanced in the societal marketing concept are consumer wants, society’s interests, and ________.
A) human welfare
B) want satisfaction
C) company profits
D) short-run wants
E) long-term needs
C) company profits
The set of marketing tools a firm uses to implement its marketing strategy is called the ________.
A) promotion mix
B) product mix
C) marketing mix
D) TQM
E) marketing effort
C) marketing mix
Of the following, which is the most important concept of modern marketing?
A) customer relationship management
B) societal marketing
C) consumer-generated marketing
D) properly trained salespeople
E) low prices
A) customer relationship
Building, keeping, and growing profitable relationships by delivering customer value and satisfaction is called ________.
A) customer lifetime value
B) customer perceived value
C) customer relationship management
D) database marketing
E) societal marketing
C) customer relationship management
Customer-perceived value is determined by a customer’s ________ of the benefits and costs of a market offering relative to those of competing offers.
A) personal assessment
B) rational expectations
C) accurate assessment
D) objective evaluation
E) emotional understanding
Answer: A
) It is most accurate to say that customers buy from stores and firms that offer which of the following?
A) the highest value for the dollar
B) the highest customer-perceived value
C) the highest level of customer satisfaction
D) the most attractive company image
E) the most concern for society’s interests
Answer: B
) ________ is defined as the customer’s evaluation of the differences between all the benefits and all the costs of a marketing offer relative to those of competing offers.
A) Customer equity
B) Customer satisfaction
C) Customer evangelism
D) Customer-perceived value
E) Marketing myopia
Answer: D
Which of the following is the term for customers who make repeat purchases and tell others about their positive experiences with a product or service?
A) satisfied customers
B) customer evangelists
C) butterflies
D) full partners
E) social customers
Answer: B
Diff: 2 Page Ref: 13
AACSB: Communication
Skill: Concept
Objective: 1-4
Which of the following strategies would a company most likely use to increase customer satisfaction?
A) decreasing the variety of offered services
B) demarketing
C) lowering prices
D) “firing” unprofitable customers
E) limiting customer experiences with a brand
Answer: C
Diff: 3 Page Ref: 16
Skill: Concept
Objective: 1-4
A room upgrade offered by a hotel to a guest who often stays in the hotel is an example of a ________.
A) frequency marketing program
B) basic customer relationship
C) club marketing program
D) partner relationship management technique
E) structural benefit
Answer: A
Diff: 2 Page Ref: 16
AACSB: Reflective Thinking
Skill: Concept
Objective: 1-4
) iRobot, the makers of Roomba, have involved their customers in product development, marketing, and technical support in an effort to foster which of the following?
A) basic relationships
B) customer delight
C) selective relationship management
D) customer-perceived value
E) frequency marketing programs
Answer: B
Diff: 3 Page Ref: 14-15
Skill: Concept
Objective: 1-4
In which of the following situations has a company most actively turned its consumers into marketing partners?
A) American Airlines awards frequent flyer points to returning customers.
B) Paige Premium Denim jeans provide a superior quality and a perfect fit.
C) iRobot invites enthusiastic Roomba owners to develop and share their own programs and uses for the company’s robotic vacuum.
D) Best Buy distinguishes between its best customers, called angels, and its less profitable customers, called demons, stocking merchandise to appeal to separate groups of its angels.
E) Toyota develops a marketing presence on social networks and other online communities.
Answer: C
Diff: 2 Page Ref: 14
AACSB: Reflective Thinking
Skill: Concept
Objective: 1-4
Using customer profitability analysis to weed out unprofitable customers and target winning ones for pampering is referred to as ________.
A) customer relationship management
B) positioning
C) database marketing
D) selective relationship management
E) marketing myopia
Answer: D
Diff: 2 Page Ref: 17
Skill: Concept
Objective: 1-4
Pete Sanchez, a recent graduate of business school, has a different approach than his marketing manager, who believes in keeping customers at arm’s length and using mass media advertising. Pete knows that today few successful firms still practice true ________ and are instead turning to selective relationship management.
A) club marketing
B) frequency marketing
C) mass marketing
D) customer satisfaction
E) market segmentation
Answer: C
Diff: 2 Page Ref: 16
Skill: Concept
Objective: 1-4
The Niketown running club that organizes twice weekly evening runs and follow-up meetings in the Nike Store is an example of which of the following?
A) a frequency marketing program
B) a basic customer relationship
C) a club marketing program
D) a partner relationship
E) a structural benefit provided for top customers
Answer: C
Diff: 2 Page Ref: 18
Skill: Concept
Objective: 1-4
Which of the following has NOT contributed to the deeper, more interactive nature of today’s customer relationships?
A) e-mail
B) Web sites
C) online social networks
D) traditional advertising
E) video sharing
Answer: D
Diff: 2 Page Ref: 18
AACSB: Use of IT
Skill: Concept
Objective: 1-4
Which of the following best explains why consumers have greater power and control in today’s marketplace?
A) The production concept and competition have lowered prices.
B) Implementation of the product concept has resulted in continually improving products.
C) Customer-driven marketing creates products and services that meet customers’ future needs.
D) More companies are implementing social marketing and weighing long-term costs and benefits.
E) Through new communication technologies, customers have more access to information and more methods of sharing their opinions with other customers.
Answer: E
Diff: 3 Page Ref: 18
AACSB: Use of IT
Skill: Concept
Objective: 1-4
Greater consumer control means that companies must rely more on marketing by ________ than by ________.
A) interruption; involvement
B) interaction; intrusion
C) socialization; information
D) producing; selling
E) inspiration; competition
Answer: B
Diff: 2 Page Ref: 18
AACSB: Communication
Skill: Concept
Objective: 1-4
To create customer value and build strong customer relationships, marketers know they cannot go it alone; therefore, they practice ________.
A) partner relationship management
B) database marketing
C) attractive Web site design
D) customer equity
E) consumer-generated marketing
Answer: A
Diff: 1 Page Ref: 19
Skill: Concept
Objective: 1-4
In today’s world, marketing should be done by ________ employees in an organization.
A) only marketing
B) only marketing, sales, and customer-support
C) only sales and technology
D) only management and marketing
E) all
Answer: E
Diff: 1 Page Ref: 19
Skill: Concept
Objective: 1-4
Through ________, many companies today are strengthening their connections to all partners, from providers of raw materials to components to final products that are delivered to final buyers.
A) supply chain management
B) direct marketing
C) partnership relationship marketing
D) customized marketing
E) equity marketing
Answer: A
Diff: 2 Page Ref: 21
Skill: Concept
Objective: 1-4
Suzie Chan strengthens her company’s connections by treating suppliers of raw materials, vendors, and distributors as partners in delivering customer value. What type of management is she practicing?
A) outside partnering
B) inside partnering
C) marketing
D) supply chain
E) customer development
Answer: D
Diff: 2 Page Ref: 21
Skill: Concept
Objective: 1-4
The final step in the marketing process is ________.
A) capturing value from customers
B) creating customer loyalty
C) creating customer lifetime value
D) understanding the marketplace
E) designing a customer-driven marketing strategy
Answer: A
Diff: 1 Page Ref: 21
Skill: Concept
Objective: 1-4
Stew Leonard, the owner of a highly successful regional supermarket chain, reacts adversely to losing a single customer sale. He feels that this amounts to losing the entire stream of future purchases that a customer is likely to make if he or she remains in the area. Stew Leonard’s concern is an illustration of which of the following?
A) share of customer
B) market share
C) profitability
D) customer lifetime value
E) market share maintenance
Answer: D
Diff: 2 Page Ref: 22
AACSB: Reflective Thinking
Skill: Concept
Objective: 1-4
Advertising Age, a magazine for advertising professionals, recently gave its Ad Agency of the Year award to ________.
A) the consumer
B) on-line marketers
C) Frito-Lay
D) Coca-Cola
E) YouTube
Answer: A
Diff: 3 Page Ref: 20
Skill: Concept
Objective: 1-4
Which of the following is an example of consumer-generated marketing?
A) Toyota’s presence in online communities
B) Nike’s Nike Plus running Web site
C) MasterCard’s use of “Priceless” commercials shot by customers
D) Neiman Marcus’s InCircle Rewards program for its best customers
E) The Lexus Covenant aimed at creating customer delight
Answer: C
Diff: 2 Page Ref: 20
Skill: Concept
Objective: 1-4
When an airline goes after a “share of travel” from its customers, it is attempting to increase ________.
A) customer lifetime value
B) share of customer
C) total customer spending
D) customer satisfaction
E) customer ownership
Answer: B
Diff: 2 Page Ref: 22
AACSB: Reflective Thinking
Skill: Concept
Objective: 1-4
Beyond simply retaining good customers, marketers want to constantly increase their “share of customer.” What does this mean in marketing terms?
A) Marketers want to increase their market share.
B) Marketers want to increase the share they get of the customer’s purchasing in their product categories.
C) Marketers want to increase the profit margin with this target market.
D) Marketers want to continuously increase their customers’ levels of satisfaction.
E) Marketers want to turn satisfied customers into delighted customers.
Answer: B
Diff: 3 Page Ref: 22
Skill: Concept
Objective: 1-4
) ________ is one of the best ways to increase share of customer.
A) Targeting new customers
B) Using bait and switch
C) Cross-selling
D) Relationship selling
E) Partnership marketing
Answer: C
Diff: 2 Page Ref: 22
Skill: Concept
Objective: 1-4
Amazon.com leverages relationships with its 35 million customers by offering them music, videos, gifts, toys, consumer electronics, and office products, among other items. Based on previous purchase history, the company recommends related CDs, books, videos, or other products that might interest a customer. This most directly helps Amazon.com capture a greater ________.
A) customer lifetime value
B) share of customer
C) profit margin
D) share of market
E) customer equity
Answer: B
Diff: 2 Page Ref: 23
AACSB: Reflective Thinking
Skill: Concept
Objective: 1-4
Which of the following is the total combined customer lifetime values of all a company’s current and potential customers?
A) share of customer
B) customer lifetime value
C) customer equity
D) profitability
E) share of market
Answer: C
Diff: 2 Page Ref: 23
Skill: Concept
Objective: 1-4
The ultimate aim of customer relationship management is to produce ________.
A) customer equity
B) market share
C) sales volume
D) a reliable database
E) higher profit margins
Answer: A
Diff: 3 Page Ref: 23
Skill: Concept
Objective: 1-4
A potentially highly profitable, short-term customer is a ________.
A) true friend
B) butterfly
C) stranger
D) barnacle
E) true believer
Answer: B
Diff: 2 Page Ref: 24
Skill: Concept
Objective: 1-4
Customers can be classified into four relationship groups, according to their profitability and projected loyalty. Which type of customers have the highest profit potential and strong loyalty?
A) barnacles
B) strangers
C) butterflies
D) true friends
E) big fish
Answer: D
Diff: 2 Page Ref: 24
Skill: Concept
Objective: 1-4
Which of the following statements about the Internet is most accurate?
A) Companies are cautiously using the Internet to build closer relationships with customers and marketing partners alike.
B) After the dot-com meltdown of 2000, fewer consumers are buying products and/or services online.
C) The Internet makes it easy for consumers to view, interact with, and create marketing content.
D) Consumer e-commerce looks promising, but business-to-business e-commerce is declining.
E) Web 2.0 involves a less balanced approach to online marketing than the original dot-com boom did.
Answer: C
Diff: 2 Page Ref: 26
AACSB: Use of IT
Skill: Concept
Objective: 1-5
) Which of the following is currently the fastest-growing form of marketing?
A) consumer-generated marketing
B) online marketing
C) mass media marketing
D) social marketing
E) word-of-mouth marketing
Answer: B
Diff: 3 Page Ref: 26
AACSB: Use of IT
Skill: Concept
Objective: 1-5
Today almost every company, small and large, is affected in some way by which of the following?
A) the societal marketing concept
B) not-for-profit marketing
C) global competition
D) customer-generated marketing
E) caring capitalism
Answer: C
Diff: 2 Page Ref: 26
Skill: Concept
Objective: 1-5
Governmental agencies are becoming more involved in marketing as the years pass. When a local government advertises keeping the area’s streams and water supply cleaner, it is involved in ________.
A) green marketing
B) social marketing campaigns
C) demarketing
D) environmental marketing
E) partnership marketing
Answer: B
Diff: 2 Page Ref: 29
Skill: Concept
Selling is managing profitable customer relationships.
Answer: FALSE
Diff: 1 Page Ref: 2
Skill: Concept
Objective: 1-1
Human needs are shaped by culture and individual personality.
Answer: FALSE
Diff: 2 Page Ref: 6
Skill: Concept
Objective: 1-2
The difference between human needs and wants is that needs are not influenced by marketers.
Answer: TRUE
Diff: 2 Page Ref: 6
Skill: Concept
Objective: 1-2
When backed by buying power, needs become demands.
Answer: FALSE
Diff: 2 Page Ref: 6
Skill: Concept
Objective: 1-2
Market offerings are limited to physical products.
Answer: FALSE
Diff: 2 Page Ref: 6
Skill: Concept
Objective: 1-2
An experience such as a vacation can be defined as a market offering.
Answer: TRUE
Diff: 2 Page Ref: 6
AACSB: Reflective Thinking
Skill: Application
Objective: 1-2
When sellers focus on existing needs and lose sight of underlying customer wants, they suffer from marketing myopia.
Answer: FALSE
Diff: 3 Page Ref: 6
Skill: Concept
Objective: 1-2
Only sellers of products, services, and ideas practice marketing; buyers do not.
Answer: FALSE
Diff: 2 Page Ref: 8
Skill: Concept
Objective: 1-
Market segmentation is the process of seeking fewer customers and reduced demand for profit maximization only.
Answer: FALSE
Diff: 3 Page Ref: 9
Skill: Concept
Objective: 1-3
Demarketing is a marketing philosophy focused upon product differentiation and positioning.
Answer: FALSE
Diff: 2 Page Ref: 9
Skill: Concept
Objective: 1-3
When it becomes necessary to reduce demand for a product or service, an organization may use demarketing to reduce or shift the number of customers.
Answer: TRUE
Diff: 1 Page Ref: 9
Skill: Concept
Objective: 1-3
The production concept and product concept are orientations that can lead to marketing myopia.
Answer: TRUE
Diff: 3 Page Ref: 9-10
Skill: Concept
Objective: 1-3
The selling concept holds that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort.
Answer: TRUE
Diff: 1 Page Ref: 10
Skill: Concept
Objective: 1-3
Amy’s law office has developed a new format and wording for wills. The staff believes they offer the most in quality, performance, and innovative features. Her law office is practicing the production concept.
Answer: FALSE
Diff: 3 Page Ref: 10
AACSB: Reflective Thinking
Skill: Application
Objective: 1-3
Your department holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do. Your department is practicing the selling concept.
Answer: FALSE
Diff: 2 Page Ref: 10
AACSB: Reflective Thinking
Skill: Application
Objective: 1-3
) Fast Food, Inc. views marketing as the science and art of finding, retaining, and growing profitable customers by providing them with the food they want. Fast Food, Inc. practices societal marketing.
Answer: FALSE
Diff: 2 Page Ref: 11
AACSB: Reflective Thinking
Skill: Application
Objective: 1-3
The societal marketing concept calls on marketers to balance consumer wants and desires, company profits, and society’s interests.
Answer: TRUE
Diff: 2 Page Ref: 11
AACSB: Ethical Reasoning
Skill: Concept
Objective: 1-3
For most marketers, customer relationship management (CRM) is exclusively a matter of customer data management.
Answer: FALSE
Diff: 2 Page Ref: 13
Skill: Concept
Objective: 1-
The marketing mix includes production, price, promotion, and packaging; this is known as the four Ps of marketing.
Answer: FALSE
Diff: 2 Page Ref: 12
Skill: Concept
Objective: 1-3
Customer-perceived value is defined as the customer’s evaluation of the perceived difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.
Answer: TRUE
Diff: 1 Page Ref: 13
Skill: Concept
Objective: 1-4
With selective relationship management, companies use customer profitability analysis to eliminate losing customers and target winning ones.
Answer: TRUE
Diff: 2 Page Ref: 17
Skill: Concept
Objective: 1-4
Large-scale marketing approaches that foster two-way customer relationships are made possible by new communication technologies.
Answer: TRUE
Diff: 1 Page Ref: 17
AACSB: Use of IT
Skill: Application
Objective: 1-4
Consumer-generated marketing, a relatively new phenomenon, has so far had little impact as a marketing force.
Answer: FALSE
Diff: 2 Page Ref: 19
AACSB: Communication
Skill: Concept
Objective: 1-4
To increase their “share of customer,” a firm concentrates on retaining as many customers as possible over their lifetimes.
Answer: FALSE
Diff: 3 Page Ref: 22
Skill: Concept
Objective: 1-4
) Web 2.0 is distinguished by its poorly conceived e-tailers and Web start-ups.
Answer: FALSE
Diff: 2 Page Ref: 26
AACSB: Use of IT
Skill: Concept
Objective: 1-5
Greg Williams now has the buying power to purchase the computer system he has wanted for the last six months. Greg’s want now has become a(n) ________.
A) need
B) necessity
C) demand
D) exchange
E) transaction
Answer: C
Diff: 1 Page Ref: 6
AACSB: Reflective Thinking
Skill: Application
Objective: 1-2
To avoid traffic gridlock in large metro areas, a community might use ________ to discourage travelers from driving during peak commuting hours.
A) target marketing
B) market segmentation
C) demarketing
D) marketing
E) the production concept
Answer: C
Diff: 1 Page Ref: 9
AACSB: Reflective Thinking
Skill: Application
Objective: 1-3
Cathy’s Clothes is a small retail chain successfully selling women’s clothing and accessories with a profitable focus on buyers who have relatively modest means. This is an example of ________.
A) convenience
B) social marketing
C) market segmentation
D) target marketing
E) value packing
Answer: D
Diff: 2 Page Ref: 8
AACSB: Reflective Thinking
Skill: Application
Objective: 1-3
Cathy’s Clothes is a small retail chain successfully selling women’s clothing and accessories with a profitable focus on buyers who have relatively modest means. This is an example of ________.
A) convenience
B) social marketing
C) market segmentation
D) target marketing
E) value packing
Answer: D
Diff: 2 Page Ref: 8
AACSB: Reflective Thinking
Skill: Application
Objective: 1-3
Henry Ford’s philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This reflects the ________ concept.
A) product
B) production
C) selling
D) marketing
E) societal marketing
Answer: B
Diff: 2 Page Ref: 9
AACSB: Reflective Thinking
Skill: Application
Objective: 1-3
Railroads were once operated based on the thinking that users wanted trains rather than transportation, overlooking the challenge of other modes of transportation. This reflects the ________ concept.
A) product
B) production
C) selling
D) marketing
E) societal marketing
Answer: A
Diff: 3 Page Ref: 10
AACSB: Reflective Thinking
Skill: Application
Which of the following reflects the marketing concept?
A) “The supplier is king.”
B) “Marketing should be viewed as hunting and not gardening.”
C) “This is what I make; won’t you please buy it?”
D) “This is what I want; won’t you please make it?”
E) “Customers need to be told where they want to go.”
Answer: D
Diff: 3 Page Ref: 10
AACSB: Reflective Thinking
Skill: Application
Objective: 1-3
Some fast-food restaurants offer tasty and convenient food at affordable prices, but in doing so they contribute to a national obesity epidemic and environmental problems. These fast-food restaurants overlook the ________ philosophy.
A) marketing concept
B) product concept
C) production concept
D) societal marketing concept
E) selling concept
Answer: D
Diff: 1 Page Ref: 11
AACSB: Reflective Thinking
Skill: Application
Objective: 1-3
Members of the sales team at Dekko International visit only prospective customers who purchase a minimum of $50,000 of insulated wire per year. Dekko is using ________.
A) selective relationship management
B) a frequency marketing program
C) a club marketing program
D) demarketing
E) a value proposition
Answer: A
Diff: 2 Page Ref: 17
AACSB: Reflective Thinking
Skill: Application
Objective: 1-4
You have just taken a new position in an organization and you’re learning about the job functions of your new colleagues. You observe that your marketing manager is heavily involved in the process of building and maintaining profitable customer relationships. Your marketing manager frequently speaks about the need to deliver superior customer value and satisfaction. Your manager is concerned with which one of the following?
A) database management
B) Web site hits
C) the societal marketing concept
D) partner relationship management
E) customer relationship management
Answer: E
Diff: 1 Page Ref: 13
AACSB: Reflective Thinking
Skill: Application
Objective: 1-4
Sally purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her expectations for Brand X lotion, Sally was measuring her level of ________.
A) customer-perceived value
B) customer satisfaction
C) customer equity
D) demand
E) customer lifetime value
Answer: B
Diff: 3 Page Ref: 13
AACSB: Reflective Thinking
Skill: Application
Objective: 1-4
FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these benefits against the monetary cost of using FedEx along with any other costs of using the service, they are acting upon ________.
A) loyalty
B) relationship marketing
C) customer-perceived value
D) social relationships
E) a societal marketing campaign
Answer: C
Diff: 3 Page Ref: 13
AACSB: Reflective Thinking
Skill: Application
Objective: 1-4
Tommy Gray attempts to deliver customer satisfaction every day in his Audio Expressions installation business. He is a smart operator who knows that the key to this goal is to match ________ with ________.
A) company performance; competition
B) company performance; competitive prices
C) relationship building; performance tools
D) company performance; unique products
E) customer expectations; company performance
Answer: E
Diff: 2 Page Ref: 13
AACSB: Analytic Skills
Skill: Application
Objective: 1-4
Shania works hard to foster an emotional relationship between her Internet customers and the beauty products and services that she and her staff sell. By promoting a company culture that values exceptional value and service, Shania aims to create ________ by going beyond the expected.
A) customer delight
B) customer satisfaction
C) customer value
D) customer equity
E) customer involvement
Answer: A
Diff: 1 Page Ref: 13
AACSB: Reflective Thinking
Skill: Application
Objective: 1-4
You are an assistant marketing director for a firm in a market with many low-margin customers. What type of relationship would it be most profitable for you to develop with these customers?
A) full partnerships
B) basic relationships
C) basic partnerships
D) club programs
E) selective relationships
Answer: B
Diff: 2 Page Ref: 16
AACSB: Reflective Thinking
Skill: Application
Objective: 1-4
Elisandra, a marketing manager at a regional chain restaurant, has decided to sponsor a contest calling for customers to create commercials for the restaurant. Winning entries will be posted on the organization’s home page. Elisandra’s plan is an example of ________.
A) consumer-generated marketing
B) partner relationship management
C) customer lifetime value
D) community development around a brand
E) selective relationship management
Answer: A
Diff: 2 Page Ref: 19
AACSB: Reflective Thinking
Skill: Application
Objective: 1-4
At Gina’s Nails, the posted policy is “Without our customers, we don’t exist.” Gina and her staff aim to delight each customer, and they are quick to offer discounts or extra services whenever a customer is anything less than satisfied. Gina and her staff strive to make every customer a repeat customer. It is most accurate to say that instead of focusing on each individual transaction, Gina and her staff put a priority on ________.
A) maintaining customer-perceived value
B) enlisting customer evangelists
C) attracting “butterflies”
D) converting “strangers”
E) capturing customer lifetime value
Answer: E
Diff: 3 Page Ref: 22
AACSB: Reflective Thinking
Skill: Application
Objective: 1-4
Afia, a team leader in charge of customer relationship management, is planning strategies for improving the profitability of her firm’s least profitable but loyal customers. She is also examining methods for “firing” customers in this group who cannot be made profitable. To which of the following customer relationship groups do these customers belong?
A) butterflies
B) true friends
C) strangers
D) barnacles
E) short-term customers
Answer: D
Diff: 2 Page Ref: 24
AACSB: Reflective Thinking
Skill: Application
Objective: 1-4
A church targeting different demographic groups to increase attendance is an example of ________.
A) for-profit marketing
B) not-for-profit marketing
C) societal marketing
D) customer evangelism
E) caring capitalism
Answer: B
Diff: 2 Page Ref: 28
AACSB: Reflective Thinking
Skill: Application
Objective: 1-5
Ben & Jerry’s challenges all stakeholders, including employees, top management, and even ice cream scoopers in their stores, to consider individual and community welfare in their day-to-day decisions. Actions such as this by companies seizing the opportunity to do well by doing good reflects ________.
A) environmentalism
B) social responsibility
C) profit marketing
D) partnership management
E) myopia
Answer: B
Diff: 1 Page Ref: 27
AACSB: Reflective Thinking
Skill: Application
Objective: 1-5
Your state’s department of education has budgeted a significant amount of money for a radio, print, television, and online advertising campaign emphasizing the long-term benefits, both educationally and professionally, of reading every day. This is an example of a(n) ________ campaign.
A) ethical
B) social marketing
C) for-profit
D) consumer-generated
E) differentiated
Answer: B
Diff: 3 Page Ref: 29
AACSB: Reflective Thinking
Skill: Application
Objective: 1-5