Marketing CH 1 practice test

Study online at quizlet.com/_1i5c4j

1. 1) All of the following are accurate C) Selling and 5. According to the simple five-step model of D)
descriptions of modern marketing, advertising are the marketing process, a company needs to understand
EXCEPT which one? synonymous with ________ before designing a customer-driven the
marketing. marketing strategy. marketplace
A) Marketing is the creation of value A) determine how to deliver superior value and
for customers. B) build profitable relationships with customer
B) Marketing is managing profitable customers needs and
customer relationships. C) use customer relationship management to wants
C) Selling and advertising are create full partnerships with key customers
synonymous with marketing. D) understand the marketplace and customer
D) Marketing involves satisfying needs and wants
customers' needs. E) construct key components of a marketing
E) Marketing is used by for-profit and program
not-for-profit organizations.
6. Advertising Age, a magazine for advertising ...
2. According to management guru Peter C) make selling professionals, recently gave its Ad Agency of
Drucker, "The aim of marketing is to unnecessary the Year award to ________.
________." A) the consumer
A) create customer value B) on-line marketers
B) identify customer demands C) Frito-Lay
C) make selling unnecessary D) Coca-Cola
D) set realistic customer expectations E) YouTube
E) sell products Answer: A
Diff: 3 Page Ref: 20
3. According to the opening scenario, B) fostering
Skill: Concept
the Tide marketing team is MOST customers'
Objective: 1-4
concerned about which of the emotional
following? connections with 7. Afia, a team leader in charge of customer ...
A) maintaining its brand share their product relationship management, is planning
B) fostering customers' emotional strategies for improving the profitability of
connections with their product her firm's least profitable but loyal customers.
C) advertising their product's benefits She is also examining methods for "firing"
D) comparing the effectiveness of customers in this group who cannot be made
their product to other brands profitable. To which of the following customer
E) incorporating consumer-generated relationship groups do these customers
marketing in the marketing mix belong?
A) butterflies
4. ) According to the production E) available;
B) true friends
concept, consumers will favor affordable
C) strangers
products that are ________ and ________.
D) barnacles
A) satisfying; quality focused
E) short-term customers
B) advertised; affordable
Answer: D
C) in high demand; hard to find
Diff: 2 Page Ref: 24
D) segmented; convenient
AACSB: Reflective Thinking
E) available; affordable
Skill: Application
Objective: 1-4
8. Amazon.com leverages relationships with its ... 13. At Gina's Nails, the posted policy is "Without our ...
35 million customers by offering them music, customers, we don't exist." Gina and her staff aim to
videos, gifts, toys, consumer electronics, and delight each customer, and they are quick to offer
office products, among other items. Based discounts or extra services whenever a customer is
on previous purchase history, the company anything less than satisfied. Gina and her staff strive to
recommends related CDs, books, videos, or make every customer a repeat customer. It is most
other products that might interest a accurate to say that instead of focusing on each
customer. This most directly helps individual transaction, Gina and her staff put a priority
Amazon.com capture a greater ________. on ________.
A) customer lifetime value A) maintaining customer-perceived value
B) share of customer B) enlisting customer evangelists
C) profit margin C) attracting "butterflies"
D) share of market D) converting "strangers"
E) customer equity E) capturing customer lifetime value
Answer: B Answer: E
Diff: 2 Page Ref: 23 Diff: 3 Page Ref: 22
AACSB: Reflective Thinking AACSB: Reflective Thinking
Skill: Concept Skill: Application
Objective: 1-4 Objective: 1-4
9. Amy's law office has developed a new ... 14. Ben & Jerry's challenges all stakeholders, including ...
format and wording for wills. The staff employees, top management, and even ice cream
believes they offer the most in quality, scoopers in their stores, to consider individual and
performance, and innovative features. Her community welfare in their day-to-day decisions.
law office is practicing the production Actions such as this by companies seizing the
concept. opportunity to do well by doing good reflects ________.
Answer: FALSE A) environmentalism
Diff: 3 Page Ref: 10 B) social responsibility
AACSB: Reflective Thinking C) profit marketing
Skill: Application D) partnership management
Objective: 1-3 E) myopia
Answer: B
10. A(n) ________ is the set of actual and potential A) market
Diff: 1 Page Ref: 27
buyers of a product.
AACSB: Reflective Thinking
A) market
Skill: Application
B) audience
Objective: 1-5
C) group
D) segment 15. Beyond simply retaining good customers, marketers ...
E) exchange want to constantly increase their "share of customer."
What does this mean in marketing terms?
11. ________ are human needs as shaped by B) Wants
A) Marketers want to increase their market share.
individual personality and culture.
B) Marketers want to increase the share they get of the
A) Needs
customer's purchasing in their product categories.
B) Wants
C) Marketers want to increase the profit margin with
C) Demands
this target market.
D) Values
D) Marketers want to continuously increase their
E) Exchanges
customers' levels of satisfaction.
12. The art and science of choosing target A) marketing E) Marketers want to turn satisfied customers into
markets and building profitable relationships management delighted customers.
with them is called ________. Answer: B
A) marketing management Diff: 3 Page Ref: 22
B) positioning Skill: Concept
C) segmentation Objective: 1-4
D) selling
E) differentiation
16. "Build a better mousetrap and the world will D) product 21. Consumer-generated marketing, a relatively ...
beat a path to your door" reflects the ________ new phenomenon, has so far had little impact
concept. as a marketing force.
A) production Answer: FALSE
B) marketing Diff: 2 Page Ref: 19
C) selling AACSB: Communication
D) product Skill: Concept
E) target marketing Objective: 1-4
17. Building, keeping, and growing profitable C) customer 22. Consumer research, product development, B)
relationships by delivering customer value relationship communication, distribution, pricing, and marketing
and satisfaction is called ________. management service are all core ________ activities.
A) customer lifetime value A) exchange
B) customer perceived value B) marketing
C) customer relationship management C) management
D) database marketing D) production
E) societal marketing E) customer relationship management
18. Cathy's Clothes is a small retail chain ... 23. Customer-driven marketing usually works well D) a
successfully selling women's clothing and when ________ and when customers ________. clear
accessories with a profitable focus on A) a clear need exists; are difficult to identify need
buyers who have relatively modest means. B) customers know what they want; are loyal to exists;
This is an example of ________. the brand know
A) convenience C) a firm can deliver the goods desired; are what they
B) social marketing thoroughly researched want
C) market segmentation D) a clear need exists; know what they want
D) target marketing E) a need exists; don't know what they want
E) value packing
24. Customer-perceived value is defined as the ...
Answer: D
customer's evaluation of the perceived
Diff: 2 Page Ref: 8
difference between all the benefits and all the
AACSB: Reflective Thinking
costs of a marketing offer relative to those of
Skill: Application
competing offers.
Objective: 1-3
Answer: TRUE
19. A church targeting different demographic ... Diff: 1 Page Ref: 13
groups to increase attendance is an Skill: Concept
example of ________. Objective: 1-4
A) for-profit marketing
25. Customer-perceived value is determined by a ...
B) not-for-profit marketing
customer's ________ of the benefits and costs of
C) societal marketing
a market offering relative to those of
D) customer evangelism
competing offers.
E) caring capitalism
A) personal assessment
Answer: B
B) rational expectations
Diff: 2 Page Ref: 28
C) accurate assessment
AACSB: Reflective Thinking
D) objective evaluation
Skill: Application
E) emotional understanding
Objective: 1-5
Answer: A
20. The ________ concept is aligned with the A) product
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
26. Customers can be classified into four relationship ... 31. ) Fast Food, Inc. views marketing as the science ...
groups, according to their profitability and projected and art of finding, retaining, and growing
loyalty. Which type of customers have the highest profitable customers by providing them with the
profit potential and strong loyalty? food they want. Fast Food, Inc. practices societal
A) barnacles marketing.
B) strangers Answer: FALSE
C) butterflies Diff: 2 Page Ref: 11
D) true friends AACSB: Reflective Thinking
E) big fish Skill: Application
Answer: D Objective: 1-3
Diff: 2 Page Ref: 24
32. FedEx offers its customers fast and reliable ...
Skill: Concept
package delivery. When FedEx customers weigh
Objective: 1-4
these benefits against the monetary cost of using
27. Demarketing is a marketing philosophy focused upon ... FedEx along with any other costs of using the
product differentiation and positioning. service, they are acting upon ________.
Answer: FALSE A) loyalty
Diff: 2 Page Ref: 9 B) relationship marketing
Skill: Concept C) customer-perceived value
Objective: 1-3 D) social relationships
E) a societal marketing campaign
28. The difference between human needs and wants is that ...
Answer: C
needs are not influenced by marketers.
Diff: 3 Page Ref: 13
Answer: TRUE
AACSB: Reflective Thinking
Diff: 2 Page Ref: 6
Skill: Application
Skill: Concept
Objective: 1-4
Objective: 1-2
33. The final step in the marketing process is ________. ...
29. Elisandra, a marketing manager at a regional chain ...
A) capturing value from customers
restaurant, has decided to sponsor a contest calling for
B) creating customer loyalty
customers to create commercials for the restaurant.
C) creating customer lifetime value
Winning entries will be posted on the organization's
D) understanding the marketplace
home page. Elisandra's plan is an example of ________.
E) designing a customer-driven marketing
A) consumer-generated marketing
strategy
B) partner relationship management
Answer: A
C) customer lifetime value
Diff: 1 Page Ref: 21
D) community development around a brand
Skill: Concept
E) selective relationship management
Objective: 1-4
Answer: A
Diff: 2 Page Ref: 19 34. A firm that uses the selling concept takes a(n) C)
AACSB: Reflective Thinking ________ approach. inside-
Skill: Application A) outside-in out
Objective: 1-4 B) myopic
C) inside-out
30. An experience such as a vacation can be defined as a ...
D) societal
market offering.
E) customer service
Answer: TRUE
Diff: 2 Page Ref: 6 35. For most marketers, customer relationship ...
AACSB: Reflective Thinking management (CRM) is exclusively a matter of
Skill: Application customer data management.
Objective: 1-2 Answer: FALSE
Diff: 2 Page Ref: 13
Skill: Concept
Objective: 1-
36. Governmental agencies are becoming more involved ... 40. ) Herb Kelleher of Southwest Airlines used A) outside-
in marketing as the years pass. When a local the marketing concept in his successful in
government advertises keeping the area's streams and organization. Having a customer department
water supply cleaner, it is involved in ________. rather than a marketing department, as
A) green marketing suggested by Kelleher, is an example of a(n)
B) social marketing campaigns ________ perspective.
C) demarketing A) outside-in
D) environmental marketing B) external
E) partnership marketing C) inside-out
Answer: B D) modern
Diff: 2 Page Ref: 29 E) traditional
Skill: Concept
41. Human needs are shaped by culture and ...
37. Greater consumer control means that companies must ... individual personality.
rely more on marketing by ________ than by ________. Answer: FALSE
A) interruption; involvement Diff: 2 Page Ref: 6
B) interaction; intrusion Skill: Concept
C) socialization; information Objective: 1-2
D) producing; selling
42. In the case of excess demand, ________ may B)
E) inspiration; competition
be required to reduce the number of demarketing
Answer: B
customers or to shift demand temporarily or
Diff: 2 Page Ref: 18
permanently.
AACSB: Communication
A) marketing
Skill: Concept
B) demarketing
Objective: 1-4
C) value marketing
38. Greg Williams now has the buying power to purchase ... D) surplusing
the computer system he has wanted for the last six E) negotiating
months. Greg's want now has become a(n) ________.
43. In today's world, marketing should be done ...
A) need
by ________ employees in an organization.
B) necessity
A) only marketing
C) demand
B) only marketing, sales, and customer-
D) exchange
support
E) transaction
C) only sales and technology
Answer: C
D) only management and marketing
Diff: 1 Page Ref: 6
E) all
AACSB: Reflective Thinking
Answer: E
Skill: Application
Diff: 1 Page Ref: 19
Objective: 1-2
Skill: Concept
39. Henry Ford's philosophy was to perfect the Model-T so ... Objective: 1-4
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
44. In which of the following situations has a ... 48. ) ________ is one of the best ways to increase ...
company most actively turned its consumers share of customer.
into marketing partners? A) Targeting new customers
A) American Airlines awards frequent flyer B) Using bait and switch
points to returning customers. C) Cross-selling
B) Paige Premium Denim jeans provide a D) Relationship selling
superior quality and a perfect fit. E) Partnership marketing
C) iRobot invites enthusiastic Roomba owners Answer: C
to develop and share their own programs and Diff: 2 Page Ref: 22
uses for the company's robotic vacuum. Skill: Concept
D) Best Buy distinguishes between its best Objective: 1-4
customers, called angels, and its less profitable
49. ________ is the act of obtaining a desired object B)
customers, called demons, stocking
from someone by offering something in return. Exchange
merchandise to appeal to separate groups of
A) A value proposition
its angels.
B) Exchange
E) Toyota develops a marketing presence on
C) Bribery
social networks and other online communities.
D) Value creation
Answer: C
E) Donation
Diff: 2 Page Ref: 14
AACSB: Reflective Thinking 50. ) It is most accurate to say that customers buy ...
Skill: Concept from stores and firms that offer which of the
Objective: 1-4 following?
A) the highest value for the dollar
45. ) iRobot, the makers of Roomba, have involved ...
B) the highest customer-perceived value
their customers in product development,
C) the highest level of customer satisfaction
marketing, and technical support in an effort to
D) the most attractive company image
foster which of the following?
E) the most concern for society's interests
A) basic relationships
Answer: B
B) customer delight
C) selective relationship management 51. Large-scale marketing approaches that foster ...
D) customer-perceived value two-way customer relationships are made
E) frequency marketing programs possible by new communication technologies.
Answer: B Answer: TRUE
Diff: 3 Page Ref: 14-15 Diff: 1 Page Ref: 17
Skill: Concept AACSB: Use of IT
Objective: 1-4 Skill: Application
Objective: 1-4
46. ________ is defined as a social and managerial D)
process by which individuals and organizations Marketing 52. Marie Ortiz enjoys her work at Futuristic B)
obtain what they need and want through value Designs, Inc. Her organization understands and customer-
creation and exchange. anticipates customer needs even better than driving
A) Selling customers themselves do and creates products
B) Advertising and services to meet current and future wants
C) Bartering and demands. Marie's firm practices ________
D) Marketing marketing.
E) Negotiating A) customer-driven
B) customer-driving
47. ) ________ is defined as the customer's evaluation ...
C) relationship
of the differences between all the benefits
D) donor
and all the costs of a marketing offer relative
E) social
to those of competing offers.
A) Customer equity 53. The marketing mix includes production, price, ...
B) Customer satisfaction promotion, and packaging; this is known as the
C) Customer evangelism four Ps of marketing.
D) Customer-perceived value Answer: FALSE
E) Marketing myopia Diff: 2 Page Ref: 12
Answer: D Skill: Concept
Objective: 1-3
54. Market offerings are limited to physical ... 60. Pete Sanchez, a recent graduate of ...
products. business school, has a different approach
Answer: FALSE than his marketing manager, who believes
Diff: 2 Page Ref: 6 in keeping customers at arm's length and
Skill: Concept using mass media advertising. Pete knows
Objective: 1-2 that today few successful firms still
practice true ________ and are instead
55. Market segmentation is the process of ...
turning to selective relationship
seeking fewer customers and reduced
management.
demand for profit maximization only.
A) club marketing
Answer: FALSE
B) frequency marketing
Diff: 3 Page Ref: 9
C) mass marketing
Skill: Concept
D) customer satisfaction
Objective: 1-3
E) market segmentation
56. Members of the sales team at Dekko ... Answer: C
International visit only prospective customers Diff: 2 Page Ref: 16
who purchase a minimum of $50,000 of Skill: Concept
insulated wire per year. Dekko is using ________. Objective: 1-4
A) selective relationship management
61. A potentially highly profitable, short-term ...
B) a frequency marketing program
customer is a ________.
C) a club marketing program
A) true friend
D) demarketing
B) butterfly
E) a value proposition
C) stranger
Answer: A
D) barnacle
Diff: 2 Page Ref: 17
E) true believer
AACSB: Reflective Thinking
Answer: B
Skill: Application
Diff: 2 Page Ref: 24
Objective: 1-4
Skill: Concept
57. The Niketown running club that organizes ... Objective: 1-4
twice weekly evening runs and follow-up
62. The product concept says that a company D) focus on
meetings in the Nike Store is an example of
should do which of the following? making
which of the following?
A) improve marketing of its best products continuous
A) a frequency marketing program
B) market only those products with high product
B) a basic customer relationship
customer appeal improvements
C) a club marketing program
C) focus on the target market and make
D) a partner relationship
products that meet those customers'
E) a structural benefit provided for top
demands
customers
D) focus on making continuous product
Answer: C
improvements
Diff: 2 Page Ref: 18
E) make promoting products the top
Skill: Concept
priority
Objective: 1-4
63. The production concept and product ...
58. Of the following, which is the most important A)
concept are orientations that can lead to
concept of modern marketing? customer
marketing myopia.
A) customer relationship management relationship
Answer: TRUE
B) societal marketing
Diff: 3 Page Ref: 9-10
C) consumer-generated marketing
Skill: Concept
D) properly trained salespeople
Objective: 1-3
E) low prices
59. Only sellers of products, services, and ideas ...
practice marketing; buyers do not.
Answer: FALSE
Diff: 2 Page Ref: 8
Skill: Concept
Objective: 1-
64. Railroads were once operated based on the ... 68. The selling concept holds that consumers will ...
thinking that users wanted trains rather than not buy enough of the firm's products unless it
transportation, overlooking the challenge of undertakes a large-scale selling and promotion
other modes of transportation. This reflects the effort.
________ concept. Answer: TRUE
A) product Diff: 1 Page Ref: 10
B) production Skill: Concept
C) selling Objective: 1-3
D) marketing
69. Selling is managing profitable customer ...
E) societal marketing
relationships.
Answer: A
Answer: FALSE
Diff: 3 Page Ref: 10
Diff: 1 Page Ref: 2
AACSB: Reflective Thinking
Skill: Concept
Skill: Application
Objective: 1-1
65. A room upgrade offered by a hotel to a guest ...
70. The set of marketing tools a firm uses to C)
who often stays in the hotel is an example of a
implement its marketing strategy is called the marketing
________.
________. mix
A) frequency marketing program
A) promotion mix
B) basic customer relationship
B) product mix
C) club marketing program
C) marketing mix
D) partner relationship management technique
D) TQM
E) structural benefit
E) marketing effort
Answer: A
Diff: 2 Page Ref: 16 71. Shania works hard to foster an emotional ...
AACSB: Reflective Thinking relationship between her Internet customers
Skill: Concept and the beauty products and services that she
Objective: 1-4 and her staff sell. By promoting a company
culture that values exceptional value and
66. Sally purchased Brand X lotion. In comparing ...
service, Shania aims to create ________ by going
her perception of how the lotion made her skin
beyond the expected.
feel and look to her expectations for Brand X
A) customer delight
lotion, Sally was measuring her level of ________.
B) customer satisfaction
A) customer-perceived value
C) customer value
B) customer satisfaction
D) customer equity
C) customer equity
E) customer involvement
D) demand
Answer: A
E) customer lifetime value
Diff: 1 Page Ref: 13
Answer: B
AACSB: Reflective Thinking
Diff: 3 Page Ref: 13
Skill: Application
AACSB: Reflective Thinking
Objective: 1-4
Skill: Application
Objective: 1-4 72. The societal marketing concept calls on ...
marketers to balance consumer wants and
67. Selecting which segments of a population of D) target
desires, company profits, and society's
customers to serve is called ________. marketing
interests.
A) market segmentation
Answer: TRUE
B) positioning
Diff: 2 Page Ref: 11
C) customization
AACSB: Ethical Reasoning
D) target marketing
Skill: Concept
E) managing the marketing effort
Objective: 1-3
73. Some fast-food restaurants offer tasty and ... 77. Though often criticized, the selling concept is D)
convenient food at affordable prices, but in doing particularly appropriate and effective with unsought
so they contribute to a national obesity epidemic which of the following types of products?
and environmental problems. These fast-food A) convenience
restaurants overlook the ________ philosophy. B) shopping
A) marketing concept C) specialty
B) product concept D) unsought
C) production concept E) demarketed
D) societal marketing concept
78. The three areas of consideration that should be C)
E) selling concept
balanced in the societal marketing concept are company
Answer: D
consumer wants, society's interests, and ________. profits
Diff: 1 Page Ref: 11
A) human welfare
AACSB: Reflective Thinking
B) want satisfaction
Skill: Application
C) company profits
Objective: 1-3
D) short-run wants
74. Stew Leonard, the owner of a highly successful ... E) long-term needs
regional supermarket chain, reacts adversely to
79. Through ________, many companies today are ...
losing a single customer sale. He feels that this
strengthening their connections to all partners,
amounts to losing the entire stream of future
from providers of raw materials to components
purchases that a customer is likely to make if he
to final products that are delivered to final
or she remains in the area. Stew Leonard's
buyers.
concern is an illustration of which of the
A) supply chain management
following?
B) direct marketing
A) share of customer
C) partnership relationship marketing
B) market share
D) customized marketing
C) profitability
E) equity marketing
D) customer lifetime value
Answer: A
E) market share maintenance
Diff: 2 Page Ref: 21
Answer: D
Skill: Concept
Diff: 2 Page Ref: 22
Objective: 1-4
AACSB: Reflective Thinking
Skill: Concept 80. To avoid traffic gridlock in large metro areas, a ...
Objective: 1-4 community might use ________ to discourage
travelers from driving during peak commuting
75. Suzie Chan strengthens her company's ...
hours.
connections by treating suppliers of raw
A) target marketing
materials, vendors, and distributors as partners in
B) market segmentation
delivering customer value. What type of
C) demarketing
management is she practicing?
D) marketing
A) outside partnering
E) the production concept
B) inside partnering
Answer: C
C) marketing
Diff: 1 Page Ref: 9
D) supply chain
AACSB: Reflective Thinking
E) customer development
Skill: Application
Answer: D
Objective: 1-3
Diff: 2 Page Ref: 21
Skill: Concept
Objective: 1-4
76. ) The societal marketing concept seeks to C)
establish a balance between consumer short-run long-
wants and consumer ________. run
A) short-run costs and profits welfare
B) short-run ethics
C) long-run welfare
D) immediate health
E) value propositions
81. To create customer value and build strong customer ... 86. Using customer profitability analysis to weed ...
relationships, marketers know they cannot go it alone; out unprofitable customers and target winning
therefore, they practice ________. ones for pampering is referred to as ________.
A) partner relationship management A) customer relationship management
B) database marketing B) positioning
C) attractive Web site design C) database marketing
D) customer equity D) selective relationship management
E) consumer-generated marketing E) marketing myopia
Answer: A Answer: D
Diff: 1 Page Ref: 19 Diff: 2 Page Ref: 17
Skill: Concept Skill: Concept
Objective: 1-4 Objective: 1-4
82. Today almost every company, small and large, is ... 87. ) Web 2.0 is distinguished by its poorly ...
affected in some way by which of the following? conceived e-tailers and Web start-ups.
A) the societal marketing concept Answer: FALSE
B) not-for-profit marketing Diff: 2 Page Ref: 26
C) global competition AACSB: Use of IT
D) customer-generated marketing Skill: Concept
E) caring capitalism Objective: 1-5
Answer: C
88. What do companies call a set of benefits that A)
Diff: 2 Page Ref: 26
they promise to consumers to satisfy their market
Skill: Concept
needs? offering
Objective: 1-5
A) market offering
83. To increase their "share of customer," a firm ... B) value proposition
concentrates on retaining as many customers as C) demand satisfaction
possible over their lifetimes. D) need proposition
Answer: FALSE E) evoked set
Diff: 3 Page Ref: 22
89. When an airline goes after a "share of travel" ...
Skill: Concept
from its customers, it is attempting to increase
Objective: 1-4
________.
84. Tommy Gray attempts to deliver customer satisfaction ... A) customer lifetime value
every day in his Audio Expressions installation B) share of customer
business. He is a smart operator who knows that the C) total customer spending
key to this goal is to match ________ with ________. D) customer satisfaction
A) company performance; competition E) customer ownership
B) company performance; competitive prices Answer: B
C) relationship building; performance tools Diff: 2 Page Ref: 22
D) company performance; unique products AACSB: Reflective Thinking
E) customer expectations; company performance Skill: Concept
Answer: E Objective: 1-4
Diff: 2 Page Ref: 13
90. When backed by buying power, needs become ...
AACSB: Analytic Skills
demands.
Skill: Application
Answer: FALSE
Objective: 1-4
Diff: 2 Page Ref: 6
85. The ultimate aim of customer relationship management ... Skill: Concept
is to produce ________. Objective: 1-2
A) customer equity
91. When backed by buying power, wants become B)
B) market share
________. demands
C) sales volume
A) social needs
D) a reliable database
B) demands
E) higher profit margins
C) physical needs
Answer: A
D) self-esteem needs
Diff: 3 Page Ref: 23
E) exchanges
Skill: Concept
Objective: 1-4
92. When customers don't know what they want or B) 98. Which concept holds that firms must D) societal
don't even know what's possible, the most customer- strive to deliver value to customers in a marketing
effective strategy is ________ marketing. driving way that maintains or improves the
A) customer-driven consumer's and society's well-being?
B) customer-driving A) marketing
C) societal B) selling
D) production C) product
E) product D) societal marketing
E) equity
93. When it becomes necessary to reduce ...
demand for a product or service, an 99. Which customer question is answered by A) "Why
organization may use demarketing to reduce a company's value proposition? should I buy
or shift the number of customers. A) "Why should I buy your brand rather your brand
Answer: TRUE than a competitor's?" rather than a
Diff: 1 Page Ref: 9 B) "How does your brand benefit me and competitor's?"
Skill: Concept society?"
Objective: 1-3 C) "What are the costs and benefits of
your brand?"
94. When marketers set low expectations for a C) failing
D) "What kind of experience will I have
market offering, the biggest risk they run is to attract
with products and services associated
________. enough
with this brand?"
A) disappointing loyal customers customers
E) "What are the benefits of being a loyal
B) decreasing customer satisfaction
consumer of your brand?"
C) failing to attract enough customers
D) failing to understand their customers' needs 100. Which of the following best explains why ...
E) incorrectly identifying a target market consumers have greater power and
control in today's marketplace?
95. When sellers focus on existing needs and lose ...
A) The production concept and
sight of underlying customer wants, they
competition have lowered prices.
suffer from marketing myopia.
B) Implementation of the product
Answer: FALSE
concept has resulted in continually
Diff: 3 Page Ref: 6
improving products.
Skill: Concept
C) Customer-driven marketing creates
Objective: 1-2
products and services that meet
96. Which concept calls for aggressive selling and D) selling customers' future needs.
focuses on generating transactions to obtain D) More companies are implementing
profitable sales? social marketing and weighing long-term
A) marketing costs and benefits.
B) production E) Through new communication
C) product technologies, customers have more
D) selling access to information and more methods
E) societal marketing of sharing their opinions with other
97. Which concept holds that achieving D) customers.
organizational goals depends on knowing the marketing Answer: E
needs and wants of target markets and Diff: 3 Page Ref: 18
delivering the desired satisfactions better than AACSB: Use of IT
competitors do? Skill: Concept
A) product Objective: 1-4
B) production
C) selling
D) marketing
E) equity
101. Which of the following has NOT contributed ... 105. Which of the following is the set of benefits a D) a value
to the deeper, more interactive nature of company promises to deliver the customer to proposition
today's customer relationships? satisfy their needs?
A) e-mail A) a money-back guarantee
B) Web sites B) low pricing
C) online social networks C) good customer service
D) traditional advertising D) a value proposition
E) video sharing E) an attribute
Answer: D
106. Which of the following is the term for ...
Diff: 2 Page Ref: 18
customers who make repeat purchases and
AACSB: Use of IT
tell others about their positive experiences
Skill: Concept
with a product or service?
Objective: 1-4
A) satisfied customers
102. Which of the following is an example of ... B) customer evangelists
consumer-generated marketing? C) butterflies
A) Toyota's presence in online communities D) full partners
B) Nike's Nike Plus running Web site E) social customers
C) MasterCard's use of "Priceless" Answer: B
commercials shot by customers Diff: 2 Page Ref: 13
D) Neiman Marcus's InCircle Rewards AACSB: Communication
program for its best customers Skill: Concept
E) The Lexus Covenant aimed at creating Objective: 1-4
customer delight
107. Which of the following is the total combined ...
Answer: C
customer lifetime values of all a company's
Diff: 2 Page Ref: 20
current and potential customers?
Skill: Concept
A) share of customer
Objective: 1-4
B) customer lifetime value
103. ) Which of the following is currently the ... C) customer equity
fastest-growing form of marketing? D) profitability
A) consumer-generated marketing E) share of market
B) online marketing Answer: C
C) mass media marketing Diff: 2 Page Ref: 23
D) social marketing Skill: Concept
E) word-of-mouth marketing Objective: 1-4
Answer: B
108. Which of the following marketing E)
Diff: 3 Page Ref: 26
management concepts is most likely to lead production
AACSB: Use of IT
to marketing myopia?
Skill: Concept
A) customer-driven marketing
Objective: 1-5
B) customer-driving marketing
104. Which of the following is the most likely D) Not all C) social marketing
result of a marketing strategy that attempts customers D) selling
to serve all potential customers? will be E) production
A) All customers will be delighted. satisfied.
109. Which of the following marketing A)
B) Customer-perceived value will increase.
management orientations focuses primarily production
C) Customer evangelists will become unpaid
on improving efficiencies along the supply concept
salespersons for the service or product.
chain?
D) Not all customers will be satisfied.
A) production concept
E) The company will need to follow up with
B) product concept
a demarketing campaign.
C) selling concept
D) marketing concept
E) social marketing concept
110. Which of the following refers to D) marketing 113. Which of the following statements about the ...
sellers being preoccupied with their myopia Internet is most accurate?
own products and losing sight of A) Companies are cautiously using the Internet to
underlying consumer needs? build closer relationships with customers and
A) selling myopia marketing partners alike.
B) marketing management B) After the dot-com meltdown of 2000, fewer
C) value proposition consumers are buying products and/or services
D) marketing myopia online.
E) the product concept C) The Internet makes it easy for consumers to
view, interact with, and create marketing content.
111. Which of the following reflects the ...
D) Consumer e-commerce looks promising, but
marketing concept?
business-to-business e-commerce is declining.
A) "The supplier is king."
E) Web 2.0 involves a less balanced approach to
B) "Marketing should be viewed as
online marketing than the original dot-com boom
hunting and not gardening."
did.
C) "This is what I make; won't you
Answer: C
please buy it?"
Diff: 2 Page Ref: 26
D) "This is what I want; won't you
AACSB: Use of IT
please make it?"
Skill: Concept
E) "Customers need to be told where
Objective: 1-5
they want to go."
Answer: D 114. Which of the following strategies would a company ...
Diff: 3 Page Ref: 10 most likely use to increase customer satisfaction?
AACSB: Reflective Thinking A) decreasing the variety of offered services
Skill: Application B) demarketing
Objective: 1-3 C) lowering prices
D) "firing" unprofitable customers
112. Which of the following reflects the A) "We don't have a
E) limiting customer experiences with a brand
marketing concept philosophy? marketing
Answer: C
A) "We don't have a marketing department; we
Diff: 3 Page Ref: 16
department; we have a customer have a customer
Skill: Concept
department." department."
Objective: 1-4
B) "We're in the business of making
and selling superior products." 115. Which steps of the five-step marketing process are C)
C) "We build them so you can buy about understanding customers, creating customer the
them." value, and building strong customer relationships? first
D) "When it's profits versus A) the first two only four
customers' needs, profits will always B) the first three only only
win out." C) the first four only
E) "You won't find a better deal D) the last three only
anywhere." E) the last four only
116. 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
117. You are an assistant marketing director for a firm in a ... 120. Your state's department of education has budgeted a ...
market with many low-margin customers. What type of significant amount of money for a radio, print,
relationship would it be most profitable for you to television, and online advertising campaign
develop with these customers? emphasizing the long-term benefits, both
A) full partnerships educationally and professionally, of reading every
B) basic relationships day. This is an example of a(n) ________ campaign.
C) basic partnerships A) ethical
D) club programs B) social marketing
E) selective relationships C) for-profit
Answer: B D) consumer-generated
Diff: 2 Page Ref: 16 E) differentiated
AACSB: Reflective Thinking Answer: B
Skill: Application Diff: 3 Page Ref: 29
Objective: 1-4 AACSB: Reflective Thinking
Skill: Application
118. You have just taken a new position in an organization ...
Objective: 1-5
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
119. 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