Question 1

When companies calculate the lifetime value of a customer they look at ________.
A) how much profit they expect to make from a particular customer, including each and every purchase she will make from them now and in the future
B) the positive word of mouth about the product that the customer can spread among her family, friends, and acquaintances
C) the lifetime expectancy of the product the customer purchased
D) the age of the customer to see whether she is likely to live long enough to utilize the product being sold
E) the career path of the customer to see if she may move to a different geographic area and no longer purchase from the company

Accepted Answer

When calculating the lifetime value of a customer, companies consider how much profit they expect to make from that particular customer, including each and every purchase she will make from them now and in the future. This takes into account repeat purchases and the potential for upselling or cross-selling to increase the customer's value over time.

Question 2

Today, it's most likely that companies selling unsought goods will use a selling orientation.

Accepted Answer

Companies selling unsought goods, such as life insurance or funeral services, usually have to use selling orientation to create awareness and persuade potential customers.

Question 3

Which of the following is LEAST likely to be of growing importance in marketing in the near future?
A) mobile marketing
B) corporate citizenship
C) big data
D) a selling orientation
E) user-generated content

Accepted Answer

The other options (A, B, C, and E) are all current trends that are expected to become even more important in marketing in the near future. However, a selling orientation (which prioritizes sales over building relationships with customers) is becoming less effective in today's market where customers are more informed and have access to a variety of options. Therefore, it is least likely to be of growing importance in marketing in the near future.

Question 4

Explain the concept of corporate citizenship and why it is important for companies today.

Accepted Answer

The answer of Explain the concept of corporate citizenship and...

Question 5

The second step in developing a competitive advantage is to turn a distinctive competency into a ________ that is important to customers.
A) target market
B) service
C) marketing mix
D) market position
E) differential benefit

Accepted Answer

A distinctive competency is a unique ability or strength that a company has in comparison to its competitors. To turn this competency into a competitive advantage, it must be translated into a differential benefit that is important to customers. This means that the company must use this competency to provide something that customers value more than what competitors are offering. Therefore, the best choice is E, differential benefit.

Question 6

Explain why and how a company would adopt a customer orientation.

Accepted Answer

The answer of Explain why and how a company would...

Question 7

A flour producer that identifies its mission as "the milling of fine flour in the most efficient manner possible" most likely has a ________ orientation.
A) customer
B) marketing
C) selling
D) production
E) new era

Accepted Answer

The mission statement focuses on the efficiency of the milling process, indicating a production orientation.

Question 8

Jolene's firm markets preplanning services for a mortician. She finds that most of her target market wants to avoid discussing future funeral needs, so she must somehow first get their attention. Jolene's firm most likely uses the ________.
A) production orientation
B) sustainability concept
C) selling orientation
D) customer orientation
E) societal marketing concept

Accepted Answer

Jolene's firm is using the selling orientation by focusing on aggressive sales techniques and persuasion to get their target market's attention, as opposed to focusing on the needs and wants of the customer.

Question 9

IBM manager Celia Moore coordinates IBM's long-standing "Reinventing Education" program that involves intensive research into how educational institutions can use the fruits of new technologies to transform what they do. In the process, the program is actually helping to shape a market of significant interest to IBM. "We see the program very much as an investment, rather than handing out money," says Moore. The existence of this program indicates that IBM has a(n) ________ orientation.
A) environmental
B) financial bottom line
C) selling
D) production
E) triple-bottom-line

Accepted Answer

The program's focus on transforming education through technology, while also shaping a market of interest to IBM, reflects a triple-bottom-line orientation. This approach considers social (educational transformation), environmental (through the use of new technologies), and financial (shaping a market for IBM) impacts, rather than focusing solely on financial gains.

Question 10

The acronym ROI stands for return on internet.

Accepted Answer

The acronym ROI stands for return on investment, which refers to the measure of the profit or loss generated on an investment in comparison to its cost.

Question 11

Interacting with consumers via portable technology such as smart phones, tablets, and wearable screens is referred to as ________.
A) mobile marketing
B) social marketing
C) societal marketing
D) user-generated marketing
E) branded marketing

Accepted Answer

The answer of Interacting with consumers via portable technology such...

Question 12

The direct financial impact of a firm's expenditure on marketing activities is called the ________.
A) value chain
B) value proposition
C) differential benefit
D) return on marketing investment (ROMI)
E) utility function

Accepted Answer

The direct financial impact of a firm's expenditure on marketing activities is called the return on marketing investment (ROMI).

Question 13

Explain why branding is increasingly becoming a two-way communication between the brand and consumers.

Accepted Answer

The answer of Explain why branding is increasingly becoming a...

Question 14

Which of the following refers to marketing strategies that support environmental stewardship by establishing an environmentally founded differential benefit in the minds of consumers?
A) collaborative consumption
B) green marketing
C) triple-bottom-line orientation
D) societal marketing
E) corporate citizenship

Accepted Answer

Green marketing is the marketing strategy that supports environmental stewardship by establishing an environmentally founded differential benefit in the minds of consumers. It is aimed at promoting sustainable production and consumption of goods and services.

Question 15

The ratio of benefits to costs is one way to think of ________.
A) sustainability
B) profits
C) value
D) competitive advantage
E) distinctive competency

Accepted Answer

The ratio of benefits to costs is a measure of value, meaning how much benefit (or utility) a customer receives for their money. This value proposition is a key driver of competitive advantage and can help a company establish a distinctive competency. However, it is not the same as sustainability or profits.

Question 16

A ________ is a marketplace offering that fairly and accurately sums up the value that will be realized if the good or service is purchased.
A) product position
B) market segment
C) mass market
D) value proposition
E) target market

Accepted Answer

A value proposition is a statement that summarizes the unique benefit that a product or service provides to its customers. It communicates the value that the customer will receive in exchange for their money. A good value proposition accurately outlines what the customer can expect to receive and is a critical component of a successful marketing strategy.

Question 17

A firm's capability that is superior to that of its competition is referred to as a(n) ________.
A) distinctive competency
B) added value
C) value proposition
D) value chain
E) social benefit

Accepted Answer

A distinctive competency is a capability or skill that a company possesses that is superior to its competition.

Question 18

Green marketing and sustainability are interchangeable terms describing the same concept.

Accepted Answer

Green marketing specifically refers to the promotion of products or services based on their environmental benefits, while sustainability is a broader concept that includes economic, social, and environmental development goals to meet present needs without compromising the ability of future generations to meet their own needs.

Question 19

The customer orientation maintains that marketers must satisfy customers' needs in ways that also benefit society.

Accepted Answer

The answer of The customer orientation maintains that marketers must...

Question 20

Explain why it is often difficult to measure the value of marketing activities.

Accepted Answer

The answer of Explain why it is often difficult to...

Quiz 1: Welcome to the World of Marketing: Create and Deliver Value

When companies calculate the lifetime value of a customer they look at ________.

Today, it's most likely that companies selling unsought goods will use a selling orientation.

Which of the following is LEAST likely to be of growing importance in marketing in the near future?

Explain the concept of corporate citizenship and why it is important for companies today.

The second step in developing a competitive advantage is to turn a distinctive competency into a ________ that is important to customers.

Explain why and how a company would adopt a customer orientation.

A flour producer that identifies its mission as "the milling of fine flour in the most efficient manner possible" most likely has a ________ orientation.

Jolene's firm markets preplanning services for a mortician. She finds that most of her target market wants to avoid discussing future funeral needs, so she must somehow first get their attention. Jolene's firm most likely uses the ________.

The acronym ROI stands for return on internet.

Interacting with consumers via portable technology such as smart phones, tablets, and wearable screens is referred to as ________.

The direct financial impact of a firm's expenditure on marketing activities is called the ________.

Explain why branding is increasingly becoming a two-way communication between the brand and consumers.

Which of the following refers to marketing strategies that support environmental stewardship by establishing an environmentally founded differential benefit in the minds of consumers?

The ratio of benefits to costs is one way to think of ________.

A ________ is a marketplace offering that fairly and accurately sums up the value that will be realized if the good or service is purchased.

A firm's capability that is superior to that of its competition is referred to as a(n) ________.

Green marketing and sustainability are interchangeable terms describing the same concept.

The customer orientation maintains that marketers must satisfy customers' needs in ways that also benefit society.

Explain why it is often difficult to measure the value of marketing activities.