Deck 1: Marketing: Creating and Capturing Customer Value

Question 1

In addition to attracting new customers and creating transactions, the goal of marketing is to ________ customers and grow the company's business.

A)reward loyal
B)sell more to
C)build relationships with
D)recognize loyal
E)educate new

Answer 1

C

Question 2

According to management guru Peter Drucker, "The aim of marketing is to ________."

A)create customer demands
B)identify customer demands
C)make selling unnecessary
D)set realistic customer expectations
E)sell products

Answer 2

C

Question 3

When it comes to communicating with customers, marketers have traditionally asked the question, "How can we influence our customers?" Effective marketers now ask, ________.

A)"How can we apply the production concept?"
B)"How can our customers influence us?"
C)"How can we apply the selling concept?"
D)"How can we apply the selling concept using social media?"
E)"How can we apply the product concept?"

Answer 3

B

Question 4

When marketers set low expectations for a market offering, they are most likely to run the risk of which of the following?

A)disappointing loyal buyers
B)decreasing buyers satisfaction
C)failing to attract enough buyers
D)failing to understand their buyers' needs
E)incorrectly identifying a target market

Question 5

Which of the following is most essential to even the simplest definition of marketing?

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

Question 6

________ refers to sellers that pay more attention to their own products than to the benefits and experiences produced by these products.

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

Question 7

Which of the following is an accurate description of modern marketing today?

A)Marketing is the creation of products for customers.
B)Marketing is managing profitable customer relationships.
C)Selling and advertising are synonymous with marketing.
D)Marketing involves satisfying producers' needs first.
E)Marketing is used by for-profit organizations only.

Question 8

________ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others.

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

Question 9

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

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

Question 10

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

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

Question 11

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

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

Question 12

________ 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 13

________ 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 14

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)Perhaps no customers will be satisfied.
E)The company will likely need to follow up with a demarketing campaign.

Question 15

The ________ steps of the five-step marketing process are about understanding customers, creating customer value, and building strong customer relationships.

A)first two
B)first three
C)first four
D)last three
E)last four

Question 16

Dollarama stores focus on serving buyers who have relatively modest means. This is an example of ________.

A)convenience
B)value pricing
C)market segmentation
D)target marketing
E)value packing

Question 17

According to the simple five-step 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 18

Which of the following best encompasses market offerings?

A)products
B)people, places, and ideas
C)products and information
D)products and experiences
E)persons, places, organizations, information, and ideas

Question 19

When backed by buying power, wants become ________.

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

Question 20

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 21

The set of marketing tools a firm uses to implement its marketing strategy is called the ________.

A)promotion mix
B)product mix
C)marketing mix
D)TQM
E)marketing effort

Question 22

The product concept says that a company should ________.

A)improve marketing of its 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)devote its energy to making continuous product improvements
E)make promoting products the top priority

Question 23

Which of the following marketing management concepts is most closely aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer high quality, performance, and innovative features?

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

Question 24

Which of the following reflects the marketing concept philosophy?

A)"We don't have a marketing department, we have a customer department."
B)"We're in the business of making and selling superior products."
C)"We build them so you can buy them."
D)"When it's profits versus customers' needs, profits will always win out."
E)"You won't find a better deal anywhere."

Question 25

According to the authors of your text, the ________ concept is a "sense and respond" philosophy rather than a "make and sell" philosophy.

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

Question 26

Customer-driven marketing is most likely to work well when ________ and when customers ________.

A)a clear need exists; are difficult to identify
B)customers do not know what they want; have limited budgets
C)there are few competitors; are concerned about their long-run welfare
D)a clear need exists; know what they want
E)a want exists; cannot afford it

Question 27

________ is the set of benefits or values a company promises to deliver to its consumers to satisfy their needs.

A)A money-back guarantee
B)Low pricing
C)Good customer service
D)A value proposition
E)An attribute

Question 28

The ________ concept calls for aggressive selling and promotion effort.

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

Question 29

Which of the following consumer products would likely be marketed using the selling concept?

A)laundry detergent
B)funeral services
C)chocolate bars
D)hair stylist services
E)computer tablets

Question 30

The authors of the text would argue that ________ is the most fundamental concept of modern marketing.

A)customer relationship management
B)social media
C)broadcast advertising
D)properly trained sales people
E)low prices

Question 31

Which one marketing management concept, if the only one adopted, can lead manufacturers to develop marketing myopia?

A)customer-driven marketing
B)customer-driving marketing
C)societal marketing
D)selling
E)product concept

Question 32

The three areas of consideration that should be balanced in the societal marketing concept are consumer wants, society's interests, and ________.

A)human welfare
B)want satisfaction
C)company profits
D)short-run wants
E)long-term needs

Question 33

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

Question 34

An effective value proposition answers the question ________.

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 35

The societal marketing concept seeks to establish a balance between consumer short-run wants and consumer ________.

A)short-run costs and profits
B)short-run ethics
C)long-run welfare
D)immediate health
E)value propositions

Question 36

"Build a better mousetrap and the world will beat a path to your door" reflects the ________ concept.

A)production
B)marketing
C)selling
D)product
E)target marketing

Question 37

The ________ concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do.

A)product
B)production
C)selling
D)equity
E)marketing

Question 38

The ________ concept holds that firms must strive to deliver value to customers in a way that maintains or improves both the consumer's and society's well being.

A)marketing
B)selling
C)product
D)societal marketing
E)equity

Question 39

Building and maintaining profitable value-laden relationships with satisfied customers of a company is called ________.

A)customer lifetime value
B)customer perceived value
C)customer relationship management
D)database marketing
E)societal marketing

Question 40

When customers don't know what they want or don't even know what's possible, the most effective strategy is ________ marketing.

A)customer-driven
B)customer-driving
C)societal
D)production
E)product

Question 41

Through ________, many companies today are strengthening their connections to all partners, from providers of raw materials and components to final buyers who purchase final products.

A)supply chain management
B)direct marketing
C)partnership relationship marketing
D)customized marketing
E)deviated marketing

Question 42

When the economy tightens, customer loyalty and customer retention become ________ for marketers.

A)even more important
B)less important
C)impossible
D)long-term but not short-term goals
E)short-term but not long-term goals

Question 43

According to the authors, a highly profitable, short-term customer is a ________.

A)true friend
B)butterfly
C)stranger
D)barnacle
E)true believer

Question 44

________ is the total combined customer lifetime values of all the company's current and potential customers.

A)Share of customer
B)Customer lifetime value
C)Customer equity
D)Profitability
E)Share of market

Question 45

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 46

Which of the following is the term for customers who make repeat purchases and tell others about their positive experiences with a product or service?

A)satisfied customers
B)customer evangelists
C)butterflies
D)full partners
E)social customers

Question 47

The marketing world is embracing ________ because consumers can wield greater power and control in the marketplace through communication technologies.

A)partner relationship management
B)supply chain management
C)customer-managed relationships
D)market segmentation
E)target marketing

Question 48

Phil just started a new habit of eating once a week at Mr. Sub restaurants. On average, he spends about $10 per meal. Phil says, "I'm 20 years old and I plan on eating at Mr. Sub until I am 50 years old." Phil's lifetime value at Mr. Sub could be best estimated by which calculation?

A)$10 × 50
B)$10 × 20
C)$10 × 52 × 50
D)$10 × 52 × 30
E)$10 × 52 × 20

Question 49

The final step in the marketing process is ________.

A)capturing value from customers
B)creating customer loyalty
C)creating customer lifetime value
D)understanding the marketplace
E)designing a customer-driven marketing strategy

Question 50

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 51

Which of the following strategies would a company most likely use to increase customer satisfaction?

A)decreasing variety of services offered
B)lengthening the supply chain
C)lowering prices or increasing its services
D)"firing" unprofitable customers
E)limiting experiences with a brand

Question 52

Which of the following is an example of consumer-generated marketing?

A)Toyota's presence in online communities
B)Nike's Nike Plus running Web site
C)H) J. Heinz's use of brand-related consumer videos posted on video-sharing websites
D)Neiman Marcus's InCircle Rewards program for its best customers
E)The Lexus Covenant aimed at creating customer delight

Question 53

When an airline goes after a "share of travel" from its customers, it is attempting to increase ________.

A)its value proposition
B)share of customer
C)target markets
D)customer variety
E)customer ownership

Question 54

Amazon.com leverages relationships with its 35 million customers by offering them music, videos, gifts, toys, consumer electronics, and office products, among other product items. Based on previous purchase history, the company recommends related CDs, books, or videos that might be of interest. This helps Amazon.com capture a greater ________.

A)value proposition
B)customer ownership
C)share of customer
D)social network
E)customer base

Question 55

FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these aforementioned benefits against the monetary and psychic costs of using the service, they are acting upon ________.

A)loyalty
B)relationship marketing
C)customer-perceived value
D)social relationships
E)a societal marketing campaign

Question 56

The ultimate aim of customer relationship management is to produce ________.

A)customer delight
B)customer satisfaction
C)steady sales volume
D)a reliable database
E)sustainable business

Question 57

The authors of your text classify customers into four relationship groups, according to the customers' profitability and projected loyalty. ________ are the customers with the highest profit potential and strong loyalty.

A)Barnacles
B)Strangers
C)Butterflies
D)True friends
E)Big fish

Question 58

Frequent flyer programs offered by airlines are an example of a ________.

A)frequency marketing program
B)basic customer relationship
C)club marketing program
D)consumer-generated marketing program
E)structural benefit provided for top customers

Question 59

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 60

Stew Leonard, owner/operator of supermarkets, reacts adversely to losing a single customer sale. He feels that this amounts to losing the entire stream of future purchases that a customer is likely to make if he or she remains in the area. This is an illustration of ________.

A)share of customer
B)market share
C)profitability
D)customer lifetime value
E)market share maintenance

Question 61

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

Question 62

It is most accurate to say that today almost every company, small and large, is affected in some way by which of the following?

A)the societal marketing concept
B)customer relationship management
C)global competition
D)not-for-profit marketing
E)customer-generated marketing

Question 63

A church targeting different demographic groups to increase attendance is an example of ________.

A)for-profit marketing
B)not-for-profit marketing
C)mindless marketing
D)ethics in marketing
E)societal marketing

Question 64

The first four steps of the marketing process focus on ________.

A)understanding the market
B)delivering customer service
C)creating value for customers
D)understanding customer demands and needs
E)finding value from customers

Question 65

Which of the following trends is part of the changing marketing landscape?

A)decline in not-for-profit marketing
B)a halt in globalization
C)growing conspicuous consumption
D)consumer desire for more sustainable marketing practices
E)decline in digital/online marketing

Question 66

Marie Ortiz enjoys her work at Futuristic Designs, Inc. Her organization understands and anticipates customer needs even better than customers themselves do and creates products and services to meet current and future wants and demands. Marie's firm practices ________ marketing.

A)shared value
B)customer-driven
C)societal
D)donor
E)product

Question 67

The social-responsibility and environmental movements are expected to ________ in the future.

A)demand more from companies
B)demand less from companies
C)move away from sustainable marketing
D)move toward partner relationship management
E)move away from using social networking

Question 68

Which of the following has contributed to the deeper, more interactive nature of today's customer relationships?

A)digital technologies
B)television advertising
C)newspaper ads
D)radio advertising
E)outdoor ads

Question 69

As part of the rapid globalization of today's economy, companies are selling more locally 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

Question 70

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 ________.

A)product concept
B)marketing concept
C)societal marketing concept
D)production concept
E)selling concept

Question 71

The Niketown running club that organizes twice weekly evening runs for Nike customers is an example of a ________.

A)frequency marketing program
B)basic customer relationship
C)club marketing program
D)consumer-generated marketing program
E)structural benefit provided for top customers

Question 72

Greg Williams now has the buying power to purchase the computer system he has wanted for the last six months. Greg's want now has become a ________.

A)need
B)necessity
C)demand
D)satisfier
E)transaction

Question 73

Railroads were once operated based on the thinking that users wanted trains rather than transportation, overlooking the challenge of other modes of transportation. This reflects the ________.

A)product concept
B)production concept
C)selling concept
D)marketing concept
E)societal marketing concept

Question 74

Which of the following is currently the fastest growing form of marketing?

A)consumer-generated marketing
B)mobile marketing
C)mass media marketing
D)promotional sampling
E)word-of-mouth marketing

Question 75

As the economy emerges from the recent recession and heads into the post-recession era, one dominant consumer trend that has taken shape is ________.

A)ultra-spending
B)sensible consumption
C)purchase reticence
D)"keeping up with the Jones'" consumption
E)conspicuous consumption

Question 76

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

Question 77

Which of the following statements is true about social media as a marketing tool?

A)Social media is a clumsy way to collect consumer research.
B)Social media is a relatively inexpensive way to collect market research.
C)Social media is a challenging tool to engage with customers.
D)Social media usage is declining.
E)Social media cannot be employed by government organizations, and non-profit organizations.

Question 78

Jolene's firm believes that consumers will not buy enough of its products unless the firm undertakes a large-scale selling and promotion effort. Jolene's firm is practicing the ________.

A)production concept
B)marketing concept
C)selling concept
D)relationship concept
E)social advertising campaign

Question 79

Ben & Jerry's challenges all stakeholders, including employees, top management, and even ice cream scoopers in their stores, to consider individual and community welfare in their day-to-day decisions. Actions such as this by companies seizing the opportunity to do well by doing good reflects ________.

A)virtual marketing
B)caring capitalism
C)profit marketing
D)sustainable marketing
E)myopia

Question 80

Which of the following phrases reflects the marketing concept?

A)The supplier is king.
B)Marketing should be viewed as hunting and not gardening.
C)This is what I make, won't you please buy it?
D)This is what I want, won't you please make it?
E)This is better than the competition, won't you please buy it?