Question 1

A company's capabilities with respect to marketing, manufacturing, and distribution are components of its external marketing environment.

Accepted Answer

Marketing, manufacturing, and distribution are actually components of a company's internal environment, as they are all functions that are controlled and managed by the company itself. The external marketing environment is made up of factors outside of the company's control, such as economic conditions, competition, and regulatory policies.

Question 2

The selection of a target market should always precede market segmentation.

Accepted Answer

Market segmentation is the process of dividing a larger market into smaller groups with distinct needs and characteristics, and then selecting one or more of these segments as a target audience. Therefore, target market selection cannot precede market segmentation as it is the outcome of the segmentation process.

Question 3

Each component of marketing mix is controlled by the company, so that they are not affected by factors internal or external to the company.

Accepted Answer

While a company has control over its marketing mix, factors such as competition, economic conditions, and government regulations can still have an impact on it.

Question 4

Each element of marketing mix is impacted by decisions made for the other elements.

Accepted Answer

The marketing mix elements (product, price, promotion, and place/distribution) are interrelated and decisions made for one element can impact the overall effectiveness of the other elements. For example, if a company decides to lower the price of a product, it may need to adjust its promotion strategy to communicate the new price point and value proposition to customers. Similarly, changes to the product or distribution channels may require adjustments to pricing or promotion to align with the target market and competitive landscape.

Question 5

Customer segment pricing refers to charging different prices for different groups.

Accepted Answer

Customer segment pricing is a pricing strategy where different groups of customers are charged different prices based on factors such as their purchasing power, willingness to pay, and perceived value of the product or service being offered.

Question 6

An influencer of a buying center does not necessarily use the product or the service.

Accepted Answer

An influencer in a buying center is someone who may have significant input or influence over the purchasing decision, but they may not personally use or consume the product or service being considered. Their role may involve assessing needs, researching options, evaluating proposals, or providing recommendations to the ultimate decision-makers in the buying center.

Question 7

B2C customer experiences should not involve emotional connections.

Accepted Answer

B2C customer experiences should involve emotional connections as emotional connections can lead to a stronger relationship between the customer and the brand, resulting in increased loyalty and repeat business.

Question 8

The expectation of ethical and responsible behavior is implicit in the societal marketing concept.

Accepted Answer

The answer of The expectation of ethical and responsible behavior...

Question 9

A company's website is not a product.

Accepted Answer

A company's website can be considered a product because it is created to meet the needs of its users, involves design and development, requires maintenance, and delivers value by providing information, facilitating transactions, or offering services.

Question 10

B2B customers are people who buy for themselves.

Accepted Answer

B2B customers are not individuals who buy for themselves, but rather businesses or organizations who make purchases for their own operations or to resell to their own customers.

Question 11

Differentiation involves placing a brand in the consumer's mind in relation to other competing products, based on product traits and benefits that are relevant to the consumer.

Accepted Answer

The answer of Differentiation involves placing a brand in the...

Question 12

Focus groups are not likely to be chosen by small businesses because they are costly.

Accepted Answer

Focus groups can be expensive, making it unlikely for small businesses to choose them as a research method.

Question 13

The term 'product' cannot be used to refer to intangible services.

Accepted Answer

The term 'product' can be used to refer to intangible services, such as a software product or a consulting service.

Question 14

A target market is one or more segments that have been chosen as the focus for business operations.

Accepted Answer

A target market is a specific group of consumers identified as the intended audience for a product, service, or marketing campaign. It is a critical aspect of business strategy and helps companies focus their efforts on meeting the needs and preferences of the chosen market segment.

Question 15

A customer experience begins at the point of need awareness and ends at need extinction.

Accepted Answer

A customer experience starts when a customer becomes aware of a need and ends when that need is satisfied.

Question 16

All of the five stages of the consumer buying process take the same amount of time and effort.

Accepted Answer

The five stages of the consumer buying process (problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation) do not necessarily take the same amount of time and effort. Some stages, such as problem recognition and post-purchase evaluation, may require less time and effort than others, such as information search and evaluation of alternatives. The length and level of effort required in each stage may vary depending on the product or service being considered, the consumer's level of involvement and interest, and other individual factors.

Question 17

Customer value is the difference between perceived benefits and perceived costs.

Accepted Answer

Customer value is defined as the perceived benefits customers receive from a product or service, minus the perceived costs that they incur to obtain it. Therefore, the statement "Customer value is the difference between perceived benefits and perceived costs" is true.

Question 18

Small businesses are particularly vulnerable to changes in the external marketing environment because they do not have multiple product and service offerings and financial resources to insulate them.

Accepted Answer

Small businesses often have limited resources and rely heavily on a specific product or service, making them more susceptible to external changes such as economic downturns, new competitors, or shifting consumer demand.

Question 19

The customer and the consumer are always the same person.

Accepted Answer

The customer is the person who pays for the product or service, while the consumer is the person who uses or consumes the product or service. These two roles can be the same person, but they can also be different people. For example, a parent can be the customer who buys a toy for their child, but the child is the consumer who plays with the toy.

Question 20

In the context of a buying center, one person could play multiple roles and there could be multiple people in a single role.

Accepted Answer

In a buying center, an individual can play multiple roles such as influencer, decision maker, and user. Additionally, there can be multiple people in a single role such as multiple users or multiple gatekeepers.

Quiz 6: Marketing Basics