Deck 1: Marketing: Creating and Capturing Customer Value

Question 1

Which of the following is NOT a basic core concept of marketing?

A)needs,wants and demands
B)revenue streams
C)market offerings
D)value,satisfaction and quality
E)None of the above.

Answer 1

B

Question 2

Marketing is an activity,set of institutions and processes for creating,communicating,delivering and exchanging offerings to customers,clients,partners and society at large while ensuring long-term __________ for the firm.

Answer 2

profitability

Question 3

Which of the following is an example of a type of market offering?

A)persons and ideas
B)information
C)experiences
D)All of the above.
E)A and B only.

Answer 3

D

Question 4

The twofold goal of marketing is to attract new customers by promising reasonable value and to keep current customers by delivering products and services.

Question 5

The elements of the extended marketing mix are price,place,promotion and product.

Question 6

________ is defined as an activity,a set of institutions and processes for creating,communicating,delivering and exchanging offerings that have value for customers,clients,partners and society at large.

A)Selling
B)Advertising
C)Bartering
D)Marketing
E)Negotiating

Question 7

According to the simple 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

Question 8

Demands are human wants that are backed up by buying power.

Question 9

The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction.

Question 10

If a product's performance falls short of the customer's expectations,the buyer will be dissatisfied.

Question 11

Which of the following is an example of a product?

A)a DVD or movie based on the life of a celebrity
B)a haircut
C)a day at Dream World theme park
D)an SUV or family sedan
E)All of the above.

Question 12

Human ________ are states of felt deprivation.

Question 13

________ refers to sellers being preoccupied with their own products and losing sight of underlying potential consumer and market needs.

A)Marketing management
B)Value proposition
C)Marketing myopia
D)The product concept
E)The production concept

Question 14

Which of the following are elements of a modern marketing system?

A)suppliers
B)company and competitors
C)marketing intermediaries
D)consumers and buyers
E)All of the above.

Question 15

The elements of the marketing mix are price,place,promotion and product.

Question 16

In many instances,marketing managers try to ensure that there is a sense of excitement (or enjoyment)associated with a market offering and the marketing communication used.Which of the following factors is a key to creating excitement?

A)experiential involvement
B)emotional involvement
C)interactivity
D)All of the above.
E)A and B only.

Question 17

All of the following are accurate descriptions of modern marketing today,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 organisations.

Question 18

The elements of the extended marketing mix are the 4 Ps plus people,process and physical evidence.

Question 19

Which of the following is most essential to any definition of marketing?

A)demand management
B)the production concept
C)customer relationships
D)making a sale
E)making a profit

Question 20

Which of the following statements is NOT correct?

A)It is always appropriate to create a sense of excitement from buying,using and experiencing products.
B)Marketing managers retain customers by ensuring that branded goods,services and experiences offer intrinsic value.
C)There are instances where creating excitement might be inappropriate.
D)All of the above.
E)None of the above.

Question 21

Consumer research,product development,communication,distribution,pricing,and service are all most accurately described as core ________ activities.

A)exchange
B)marketing
C)management
D)production
E)customer relationship management

Question 22

________ is the set of actual and potential buyers of a product.

A)A market
B)An audience
C)A group
D)A segment
E)An exchange

Question 23

When many customers share a strong need that cannot be satisfied by any existing products or services,this is known as ________.

A)full demand
B)unwholesome demand
C)latent demand
D)overfull demand
E)irregular demand

Question 24

A market offering is called a(n)________,defined as 'some combination of goods,services and experiences that can be offered to a market to satisfy a need or a want'.

Question 25

When backed by purchasing power,wants become ________.

A)social needs
B)demands
C)physical needs
D)self-esteem needs
E)exchanges

Question 26

________ 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
E)Donation

Question 27

A(n)________ is the set of all actual and potential buyers of a product.

Question 28

Human needs take the form of ________ as they are shaped by culture and individual personality.

Question 29

Market offerings can include products,services,information or experiences offered to a market to satisfy a need or want.

Question 30

When sellers focus on existing needs and lose sight of underlying customer wants,they suffer from marketing myopia.

Question 31

Lenovo computers dominate the Chinese market through low labour costs,high production efficiency and mass distribution.This is most indicative of the ________ concept.

A)production
B)product
C)customer
D)marketing
E)societal

Question 32

The Apex Corporation has sold the same product since its entry into the marketplace.Each time the sales of its product have slipped,the firm has responded by cutting prices and increasing promotions.In spite of its efforts,sales continued to decline.Apex's 'product-focused' response is evidence of ________.

A)a profit-maximisation philosophy
B)production myopia
C)maximisation myopia
D)marketing myopia
E)the marketing concept

Question 33

Market offerings are limited to physical products.

Question 34

Texas Instruments,one of the first producers of hand-held calculators,put a great deal of effort into expanding production of calculators to drive down the cost and thus expand the market.This is most indicative of the ________ concept.

A)production
B)product
C)customer
D)marketing
E)societal

Question 35

________ are human needs as shaped by individual personality and culture.

A)Deprivations
B)Wants
C)Demands
D)Values
E)Exchanges

Question 36

________ are human wants backed by buying power.

Question 37

Marketers should look beyond the attributes of the products and services that they sell in order to also create brand experiences for consumers.

Question 38

________ 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
E)Donation

Question 39

Human needs are shaped by culture and individual personality.

Question 40

If exchange is the core concept of marketing,then a(n)________ is marketing's core unit of measurement.

Question 41

The cost of attracting new customers is thought to be ________ than the cost of retaining existing customers.

A)two times higher
B)five times higher
C)ten times higher
D)twenty times higher
E)twenty-five times higher

Question 42

The marketing task known as demarketing involves ________.

A)reducing demand,either temporarily or permanently
B)adopting a low price position for a product or brand
C)preventing competitors from imitating a product or brand
D)reducing the value embedded in a product or brand
E)eliminating the product from the offerings

Question 43

Selecting which segments of a population of customers to serve is called ________.

A)market segmentation
B)market positioning
C)customisation
D)target marketing
E)choosing a value proposition

Question 44

Product,price,place and promotion make up the elements of a firm's marketing mix.

Question 45

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?'

Question 46

The aim of ________ is not to completely destroy demand,but only to reduce or shift it to another time,or even another product.

Question 47

The key to creating excitement in a market offering,such as sport,is ________ and interactivity.

Question 48

The ________ concept holds that consumers will favour products that are available and highly affordable.

Question 49

Customer-driven marketing considers only existing needs for existing markets.

Question 50

The art and science of choosing target markets and building profitable relationships with them is called ________.

A)marketing management
B)market positioning
C)market segmentation
D)selling
E)societal marketing

Question 51

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.

Question 52

Which of the following is the most likely result of a marketing strategy that attempts to serve all customers?

A)All customers will be delighted.
B)Customer-perceived value will be increased.
C)Customer evangelists will become unpaid salespersons for the service or product.
D)The company may need to follow up with a demarketing campaign.
E)A and B only.

Question 53

Delighted customers,known as 'customer evangelists',are more likely to ________.

A)spread the word about their good experiences with a brand or product.
B)engage in repeat purchasing.
C)become willing brand partners.
D)All of the above.
E)None of the above.

Question 54

The societal marketing concept calls on marketers to balance consumer wants and desires,company profits and society's interest.

Question 55

The difference between human needs and wants is that needs are not influenced by marketers.

Question 56

There are occasions when a firm should legitimately practice demarketing in order to manage its demand levels.

Question 57

Amy's law office has developed a new format and wording for wills.Staff believe that they offer superior quality,performance and innovative features.Her law office is practicing the production concept.

Question 58

Two important questions underlying marketing strategy are: 'Who is our target market?' and 'What's our value proposition?'

Question 59

When backed by buying power,needs become wants.

Question 60

The production concept and product concept are orientations that can lead to marketing myopia.

Question 61

The ________ marketing concept questions whether the pure marketing concept is adequate in the age of environmental problems,resource shortages,rapid population growth,worldwide economic problems and neglected social services.

Question 62

The ________ concept holds that consumers won't buy enough of the organisation's products unless it undertakes a large-scale selling effort as part of its promotional program.

Question 63

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-driving marketing creates products and services that meet customers' future needs.
D)More companies are implementing societal marketing and weighing long-run costs and benefits.
E)Through new communication technologies,customers have more access to information and more methods of sharing their opinions with other customers.

Question 64

Customer satisfaction is said to occur when ________.

A)a product's performance falls short of customer expectations
B)a product's performance matches or exceeds customer expectations
C)a product's price was heavily discounted
D)the product was well designed
E)the customer's benefits outweighed the costs of purchasing the product

Question 65

A small business operator attempts to deliver customer satisfaction every day in his home entertainment installation business.The key to this goal is to match the customer-perceived performance of his products and their installation with the ________.

A)company-perceived performance
B)customer values
C)customer expectations
D)relationship levels
E)company expectations

Question 66

Of the following,which is the most important concept of modern marketing?

A)customer relationship management
B)e-mail advertising
C)mass marketing
D)properly trained sales people
E)low prices

Question 67

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 equity
D)customer value
E)customer loyalty

Question 68

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)None of the above.

Question 69

A recent graduate of business school has a different philosophical approach than his marketing manager,who believes in keeping customers at arm's length and using mass media advertising.He knows that today few successful firms still practice this type of true ________,and are instead turning to selective relationship management.

A)club marketing
B)frequency marketing
C)mass marketing
D)customer satisfaction
E)marketing segmenting

Question 70

You are an assistant marketing manager 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)club programs
D)selective relationships
E)community relationships

Question 71

The ________ concept holds that consumers will favour products that offer the most quality,performance and innovative features.

Question 72

A product manager 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

Question 73

You have just taken a new position in an organisation 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,and 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)website hits
C)the societal marketing concept
D)not-for-profit marketing
E)customer relationship management

Question 74

A CRM team leader aims to improve the overall firm profitability,and assesses her firm's most profitable and loyal customers.Which of the following customer relationship groups do these customers belong to?

A)butterflies
B)true friends
C)strangers
D)barnacles
E)None of the above.

Question 75

It is most accurate to say that a customer will buy from the company that offers the highest ________.

A)value for the dollar
B)customer-perceived value
C)level of customer satisfaction
D)company image
E)concern for society's interests

Question 76

Wendy purchased Brand X hand lotion.In comparing her perception of how the lotion performed to her expectations for such a lotion,she was measuring her level of ________.

A)customer perceived value
B)customer satisfaction
C)exchange
D)demand
E)customer lifetime value

Question 77

Which of the following is determined by a customer's personal evaluation of the benefits and costs of a market offering relative to those of competing offers?

A)customer-perceived value
B)customer satisfaction
C)customer-perceived performance
D)customer relationship management
E)market segmentation

Question 78

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)customer profitability analysis
B)customer-managed relationships
C)a club marketing program
D)partner relationship management
E)supply chain management

Question 79

Which of the following has NOT contributed to the deeper,more interactive nature of today's customer relationships?

A)e-mail
B)websites
C)online social networks
D)traditional advertising
E)social media

Question 80

The ________ concept holds that achieving organisational goals depends on determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitors.