Test Bank CH 1 Flashcards by Foziyah S

1) Which of the following is NOT an accurate description of modern marketing?
A) Marketing is the creation of value for customers.
B) Marketing involves managing profitable customer relationships.
C) Marketing emphasizes selling and advertising exclusively.
D) Marketing involves satisfying customers’ needs.
E) Marketing is building value-laden exchange relationships with customers.

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2) According to management guru Peter Drucker, “The aim of marketing is to ___________.”
A) maximize profits of the company
B) emphasize customer wants and not customer needs
C) make selling unnecessary
D) fulfill unrealistic customer expectations
E) sell products

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3) 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

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4) According to the five-step model of the marketing process, which of the following is the final step in creating value for customers ?
A) designing a customer-driven marketing strategy
B) understanding the marketplace and customers need
C) constructing an integrated marketing program that delivers superior value
D) building profitable relationships and creating customer delight
E) capturing value from customers to create profit and customer equity

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5) 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) understanding the marketplace and customer needs and wants
E) construct an integrated marketing program

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7) ___________ are human needs that are shaped by culture and individual personality.
A) Necessites
B) Wants
C) Demands
D) Values
E) Exchanges

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

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

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9) Needs include all of the following EXPECT________.
A) food
B) knowledge
C) affection
D) the newest iPhone
E) belonging

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10) Greg Williams now has the buying power to purchase the desktop computer that 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

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11) A __________ is some combination of products, services, information, or experiences provided to consumers to satisfy a need or want.
A) market offering
B) value proposition
C) brand positioning
D) market segment
E) market mix

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

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13) When marketers set low expectations for a market offering, they run the risk of __________.
A) disappointing loyal customers
B) having to use an outside-in rather than inside-out perspective
C) failing to attract enough customers
D) failing to understand their customers’ need
E) incorrectly identifying a target customer

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14) _________ is the act of obtaining a desired object from someone by offering something in return.
A) Valuation
B) Exchange
C) Market offering
D) Confiscation
E) Donation

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15) A(n) __________ is the set of actual and potential buyers of a product or service.
A) market
B) control group
C) subsidiary
D) focus group
E) audience

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

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17) When are sellers most effective?
A) when they focus more on their specific products and services
B) when they focus on the price of their products and services
C) when they focus more on the benefits and experiences produced by their products and services
D) when they focus more on where their products and services can be purchased
E) when they focus more on cost to produce the product or service

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18) The art and science of choosing target markets and building profitable relationships with them is called _________.
A) market management
B) positioning
C) marketing mix
D) market offering
E) differentiation

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

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20) Dividing the market into various of groups of customers that a company may serve is called ________.
A) market segmentation
B) positioning
C) customization
D) target marketing
E) differentiation

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21) Cathy’s Clothes is a small yet successful retail chain that sells women’s clothing and accessories with a focus on buyers who have relatively modest means. For this specific purpose, the firm has rolled out several marketing initiatives aimed at women of a specific demographic. This is an example of ________.
A) ambush marketing
B) social marketing
C) societal marketing
D) target marketing
E) cause marketing

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22) An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious individuals, and people identified as trendsetters who try out new products in the market before others. These three groups are examples of
________.
A) marketing mixes
B) market segments
C) value propositions
D) market offerings
E) marketing intermediaries

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23) Which of the following refers to a set of benefits that a company promises to deliver to customers to satisfy their needs?
A) customer lock-in
B) a cartel
C) marketing mix
D) value proposition
E) market segmentation

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24) Which of the following customer questions is answered by a company’s value proposition?
A) “Why should I buy your brand rather than a competitor’s?”
B) “What is your company’s estimated customer equity?”
C) “What are the costs involved in the production of your brand?”
D) “What is the budget allocated by your company for research and development?”
E) “What is the financial stability of your company?”

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25) 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) societal marketing concept

26) Which of the following marketing management concepts is most likely to lead to marketing myopia? A) customer-driven marketing concept B) customer-driving marketing concept C) societal marketing concept D) marketing concept E) product concept

27) 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.

28) 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) societal marketing D) marketing E) selling

29) Which of the following is the aim of the product concept? A) improve the marketing of a firm's 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) ensure that product promotion has the highest priority

30) 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

31) Railroads were operated based on the thinking that users wanted trains that would offer the most in quality, performance, and innovative features. The railroad managing companies overlooked the fact that there could be other modes of transportation. This reflects the _________ concept. A) product B) production C) selling D) marketing E) societal marketing

32) Which of the following statements is true of the selling concept? A) It requires minimum promotion efforts B) It create long-term, profitable customer relationships C) It takes an outside-in perspective D) It is typically practiced with unsought goods. E) It follows the customer-centered sense-and-respond philosophy

33) Which of the following marketing orientations calls for aggressive promotional efforts and focuses on creating transactions rather than long-term customer relationships? A) the marketing concept B) the production concept C) the product concept D) the selling product E) the societal marketing product

34) Jolene's firm markets preplanning services for a mortician. She finds that most of her target market avoids discussing future funeral needs. She convinces people to invest in the firm's services through her large-scale promotional efforts. Jolene's firm most likely practices the __________. A) production concept B) marketing concept C) selling concept D) product concept E) Societal marketing concept

35) The selling concept is typically practiced __________. A) to balance customers' want, company's requirements, and the society's long-run interest B) with product that offer the most in terms of quality, performance, and innovative features C) when the company focuses on building long-term customer relationships D) with goods that buyers normally do not think of buying E) by customer-driven companies

36) Which of the following marketing orientations 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) then product concept B) the production concept C) the selling concept D) the marketing concept E) the societal marketing concept

37) Which of the following uses a customer-centered "sense-and-respond" philosophy rather than a product-centered "make-and-sell" philosophy? A) market segmentation B) the production concept C) the marketing concept D) the inside-out perspective E) marketing myopia

38) A firm that uses the selling concept takes a(n) __________ approach. A) outside-in B) niche marketing C) inside-in D)societal marketing E) customer-driven

39) The marketing concept takes a(n) __________. It starts with a well-defined market, focuses on customer needs, and Integrates all the marketing activities that affect customers. A) outside-in perspective B) product-centered make-and-sell philosophy C) inside-out perspective D) consumer-generated marketing approach E) telling-and-selling approach

40) Which of the following is a characteristic of customer-driven marketing? A) Companies understand customer needs even better than customers themselves do. B) Customers are unaware of their needs C) Products are created that meet both existing and latent needs, now and in the future D) Customers know what they want. E) Customers don't know what is possible

41) ___________ marketing is practiced by an organization that understands 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-drivig C) Affinity D) Societal E) Ambush

42) When customers don't know what they want or don't even know what's possible, the most effective marketing strategy is _________ marketing. A) customer-driven B) customer-driving C) societal D) ambush E) affinity

52) The societal marketing concept seeks to establish a balance between _________. A) customer lifetime value and customer equity B) an inside-out perspective and an outside-in perspective C) consumer short-run wants and consumer long-run welfare D) marketing mixes and market offering E) customer-driven marketing and customer-driving marketing

44) _________ refers to socially and environmentally responsible marketing that meets the needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. A) Ambush marketing B) Evangelism marketing C) Sustainable marketing D) Database marketing E) Affinity marketing

45) 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

46) The set of marketing tools a firm uses to implement its marketing strategy is called the ________. A) production mix B) product mix C) marketing mix D) market offering E) marketing effort

47) 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) All customers will directly turn into customer evangelists D) Not all customers will be satisfied E) Customers will not show interest in any other company's products

48) Which of the following statements reflects the marketing concept? A) Focus on making continuous product improvement B) Undertake a large-scale selling and promotion effort C) Emphasize an inside-out perspective D) Consider customer focus and value as the paths to sales and profits E) Focus on a product-centered make-and-sell philosophy

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

50) When demand for athletic shoes produced by Nike and endorsed by Michael Jordan is high, Nike limits how many pairs of shoes are manufactured. This action maintains strong demand by limiting supply. This decision contradicts the philosophy of which marketing concept? A) marketing concept B) product concept C) production concept D) societal marketing concept E) selling concept

51) At a local farmers' market, Molly Malone sells mussels while shouting to passersby, "Fresh seafood, get your fresh seafood here!" What kind of perspective is Molly taking? A) customer-driving B) inside-out C) customer-driven D) outside-in E) niche marketing

52) In which of the following situations has a company most actively embraced customer- managed relationships? A) American Airlines awards frequent flyer points to returning customers. B) Paige Premium Denim jeans provide superior quality and perfect fit. C) iRobot invites enthusiastic Roomba owners to develop and share their own uses for the company's robotic vacuum cleaner. D) Best Buy distinguishes between its best customers and its less profitable customers, stocking merchandise to appeal to each group. E) Toyota develops a marketing presence on social networks and other online communities.

53) 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.

54) FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these benefits against the monetary cost of using FedEx along with other costs of using the service, they are acting upon ________. A) brand loyalty B) customer equity C) customer-perceived value D) customer lifetime value E) a societal marketing campaign

55) Customer satisfaction is a goal that companies strive to earn. Companies can achieve customer delight by ________. A) regularly putting products on sale B) promising only what they can deliver and then delivering more than they promise C) offering promotional deals such as "buy one and get one free" D) creating contests with exciting prizes E) using celebrities to advertise the products

56) Building and maintaining profitable customer relationships by delivering superior customer value and satisfaction is called ________. A) customer lifetime value B) customer-perceived value C) customer relationship management D) partner relationship management E) customer equity

57) Which of the following marketing strategies should marketing managers focus on to manage detailed information about individual customers and carefully manage customer touchpoints to maximize customer loyalty? A) customer divestment B) customer-managed relationships C) the societal marketing concept D) partner relationship management E) customer relationship management

58) ________ is determined by a customer's evaluation of the benefits and costs of a market offering relative to those of competing offers. A) Customer-perceived value B) Customer lifetime value C) Share of customer D) Customer-managed relationship E) Brand value proposition

59) Customer equity refers to ________. A) a firm's current sales B) the share a firm earns of a customer's purchasing in their product categories C) the amount a customer is spending each year on certain products D) the total combined customer lifetime value of all of the company's current and potential customers E) a firm's market share

60) It is most accurate to say that when customers purchase products they act on ________ as they judge values and costs. A) objective value B) perceived value C) customer lifetime value D) company image E) society's interests

61) The primary key to delivering customer satisfaction is to match product performance with ________. A) the performance of competitive products B) competitive prices C) aggressive advertising D) limited customer services E) customer expectations

62) Which of the following terms refers to customers who make repeat purchases and tell others about their positive experiences with a product or service? A) barnacles B) customer evangelists C) butterflies D) surrogate customers E) market mavens

63) Sally recently purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her expectations about Brand X lotion, Sally was measuring her level of ________. A) share of customer B) customer satisfaction C) customer equity D) customer-perceived value E) customer lifetime value

64) Which of the following strategies would a company most likely use to increase customer satisfaction? A) decreasing the variety of offered services B) divesting C) lowering prices D) "firing" unprofitable customers E) limiting customer experiences with a brand

65) 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

66) 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) a basic relationship C) a club marketing program D) partner relationship management E) sustainable marketing

67) A gym equipment manufacturer encourages customers to become members of the firm's Web site. Membership provides customers with exercise tips as well as discounts on gym equipment and workout apparel. This is an example of ________. A) a frequency marketing program B) a basic customer relationship C) a club marketing program D) the selling concept E) consumer-generated marketing

68) The marketing world is most likely embracing ________ because consumers wield greater power now with many platforms for airing and sharing their brand views with other consumers. A) partner relationship management B) supply chain management C) customer-managed relationships D) market segmentation E) consumer ethnocentrism

69) Greater consumer control means that companies can no longer rely on ________. A) promoting brand-consumer interaction B) marketing by intrusion C) creating market offerings and messages that involve consumers D) developing marketing concepts with an outside-in perspective E) marketing by attraction

70) Kao Corp., a deodorant manufacturer, invited teenage girls to make an ad that would encourage other girls to buy the product. This program is an example of ________. A) societal marketing B) the production concept C) the selling concept D) partner relationship management E) consumer-generated marketing

71) Elisandra, a marketing manager at a regional chain restaurant, has decided to organize 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) customer divestment

72) Through ________, companies today are strengthening their connections with all partners, from providers of raw materials and components to those involved in the delivery of final goods and services. A) supply chain management B) direct marketing C) customer relationship marketing D) customized marketing E) inventory management

73) The final step in the marketing process is ________. A) capturing value from customers B) creating customer delight C) creating customer lifetime value D) understanding the marketplace E) designing a customer-driven marketing strategy

74) "Losing a customer once means losing the entire stream of possible purchases that the customer would make over an extended period of patronage." This statement specifically indicates loss in terms of ________. A) customer-perceived value B) marketing offerings C) partner relationship management D) customer lifetime value E) value proposition

75) At Gina's retail stores, the posted policy reads, "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) managing partner relationships B) selling new products C) attracting "butterflies" D) converting "barnacles" to "strangers" E) capturing customer lifetime value

76) The portion of the customer's purchasing that a company gets in its product categories is known as ________. A) customer-perceived value B) share of customer C) customer insight D) consumption function E) induced consumption

77) Apart from retaining good customers, most 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 diversify their operations and customize their products to cater to the entire market. D) Marketers want to continuously increase their customers' levels of satisfaction. E) Marketers want to turn satisfied customers into delighted customers.

78) ________ is one of the best ways to increase share of customer. A) Targeting new customers B) Using bait and switch C) Cross-selling D) Divesting E) Partnership marketing

79) Keith, a clothing store owner, offers product suggestions to customers based on their current purchases. Which of the following is Keith trying to increase? A) shared value B) share of customer C) social responsibility D) customer-generated marketing E) customer loyalty

80) 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

81) In the context of customer relationship groups, a potentially profitable and short-term customer is referred to as a ________. A) true friend B) butterfly C) stranger D) barnacle E) market maven

82) Customers can be classified into four relationship groups based on their profitability and projected loyalty. Which customer type is associated with high profitability and long-term loyalty? A) barnacles B) strangers C) butterflies D) true friends E) cash cows

83) A company should not always target all possible customers. Which kind of customer is not the most valuable to a company, but, can over time, contribute to the firm's success? A) butterflies B) shooting stars C) barnacles D) true friends E) strangers

84) A financial services firm has several loyal customers who conduct business with them exclusively. However, the company has noticed that this customer group is the least profitable for the company, and in some cases, it increases their losses when engaging in business with this group. Which of the following customer groups is being referred to in this scenario? A) butterflies B) true friends C) strangers D) barnacles E) cash cows

85) Digital technology allows companies to reach out to customers in numerous ways. Which of the following is NOT the purpose of a company reaching out using digital and social media? A) solving consumer problems B) building customer relationships C) helping customers shop D) providing product information E) working with suppliers

86) A seller pursues a basic relationship with what kind of customers? A) many customers regardless of profitability B) many high-margin customers C) many low-margin customers D) a few high-margin customers E) a few low-margin customers

87) A seller pursues a full partnership with what kind of customers? A) many customers regardless of profitability B) many high-margin customers C) many low-margin customers D) a few high-margin customers E) a few low-margin customers

88) A marketer wants to increase its "share of customer." It can do this by offering a greater variety to customers, or by ________. A) decreasing prices B) increasing discounts and coupons C) sending samples directly to customers D) introducing customers to "brand evangelists" E) creating programs to cross-sell and up-sell to market more products and service to existing customers

89) Marketers use mobile channels for several purposes. Which of the following is LEAST likely to be one of those purposes? A) Enrich the brand experience. B) Send billing statement. C) Stimulate immediate buying. D) Make shopping easier. E) Boost sampling.

90) Marketers set up company and brand Web sites that provide information and promote the company's products. Social media is a significant part of today's marketing strategy. Which of these tools is NOT part of the growth in digital technology? A) blogs B) e-mail C) telemarketing calls D) mobile apps E) videos

91) Following the change in consumer values and consumption patterns after the Great Recession, marketers have changed their marketing strategies to emphasize the ________ of their products. A) image B) value C) durability D) safety E) uniqueness

92) 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.

93) Government agencies design ________ to encourage energy conservation and discourage smoking, excessive drinking, and drug use. A) club marketing programs B) social marketing campaigns C) consumer-generated marketing campaigns D) ambush marketing campaigns E) frequency marketing programs

94) As part of the rapid globalization of today's economy, companies are selling more domestically produced goods in international markets and ________. A) taking a local view of their industry B) purchasing more supplies abroad C) reducing competition within their industry D) downplaying concerns for social responsibility E) competing solely in traditional marketplaces

95) Iceco Inc., an ice cream manufacturing company, encourages all stakeholders, including the top management and all employees, to consider individual and community welfare in their day-to-day decisions. This action undertaken by Iceco reflects ________. A) environmentalism B) social responsibility C) the selling concept D) partner relationship management E) marketing myopia

96) Marketing in the non-profit sector is applied in all but which of these ways? A) to enhance their images B) to attract memberships C) to publicize the organization's supporters D) to design social marketing campaigns for specific causes E) to encourage donor support

97) A church targeting different demographic groups to increase attendance is an example of ________. A) affinity marketing B) not-for-profit marketing C) societal marketing D) evangelism marketing E) affiliate marketing

98) 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) ambush marketing B) social marketing C) inbound marketing D) consumer-generated marketing E) affiliate marketing

99) Many organizations use multiple social media, such as Facebook, Twitter, Instagram, and YouTube. What is the primary reason a company would use multiple social media? A) entice customers to one of the social media sites B) present a carefully integrated message to fans and customers C) improve its "hit" count D) appeal to new customers E) increase its prices because it is more well-known

Test Bank CH 1 Flashcards

CH1