Chapter One

Question 1

Customer Relationship Management (CRM)

Answer 1

A company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups.

Question 2

Customer Satisfaction

Answer 2

customers’ evaluation of a good or service in terms of whether it has met their needs and expectations.

Question 3

Customer Value

Answer 3

the relationship between benefits and the sacrifice necessary to obtain those benefits

Question 4

Exchange

Answer 4

people giving up something in order to receive something else they would rather have

Question 5

Marketing

Answer 5

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

Question 6

Marketing Concept

Answer 6

the idea that the social and economic justification for an organization’s existence is the satisfaction of customer wants and needs while meeting organizational objectives

Question 7

Market Orientation

Answer 7

a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer’s decision to purchase a product; it is synonymous with the marketing concept

Question 8

Production Orientation

Answer 8

a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace

Question 9

Relationship Marketing

Answer 9

a strategy that focuses on keeping and improving relationships with current customers

Question 10

Sales Orientation

Answer 10

the belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits

Question 11

Societal Marketing Orientation

Answer 11

the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals’ and society’s long-term best interests