Exam 1: Marketing: Creating and Capturing Customer Value

Railroads were once 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.

Which of the following statements is true about creating customer loyalty and retention?

Refer to the scenario below to answer the following questions. Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small, seaside motel to a thriving year-round resort in just a few years. Atop a cliff overlooking the Maine coast, Seagull Terrace had attracted thousands of visitors during summer, but then faced a tremendous downturn in business during winter. "But, given the established industries in the nearby towns, very little year-round competition, and our close proximity to Portland," Carol added, "I couldn't understand why seasonality had to hit Seagull Terrace so hard!" So Carol spent her first winter devising a new marketing plan. She put together a promotional package designed to attract business travelers year-round. Carol's plan also involved a seasonal promotional gimmick-to be implemented from early winter to late spring-that would attract the same numbers as the large summer crowd. Her idea worked! During her second winter, Carol greeted numerous business travelers-both satisfied repeat guests as well as new guests who had been snagged by her promotional appeals. "We still have a long way to go," Carol admitted. "Our delicatessen offers entrees that are a part of the local cuisine, but we'd like to expand that. We provide health club privileges off-site, but we'd like to eventually provide our own. These are goals I hope to achieve in a few years. Our first project, however, included a renovation of our guest rooms and I'm quite proud of the results." Carol then added, "Actually there are so many possibilities. With an indoor pool area, I will eventually offer weekend getaways throughout winter." -Renovations of the guest rooms at the Seagull Terrace and plans to add an indoor pool area are examples of the ________ concept.

Which of the following refers to the total combined customer lifetime value of all of the company's current and potential customers?

Building and maintaining profitable customer relationships by delivering superior customer value and satisfaction is called ________.

Customer-managed relationships are marketing relationships that are controlled by customers, therefore, they are of no significance to marketers.

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

How do suppliers help companies like Walmart maintain consistently low prices?

In nineteenth-century Dublin, Molly Malone sold mussels at a market while shouting to passersby, "alive-alive-oh." Was Molly taking an outside-in or inside-out perspective? Explain.

According to the five-step model of the marketing process, a company should ________ before designing a customer-driven marketing strategy.

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

When backed by buying power, wants become ________.

Explain how and why marketers go beyond selling a product or service to create brand experiences.

A room upgrade offered by a hotel to a guest who often stays in the hotel is an example of ________.

Which of the following is a characteristic of customer-driven marketing?

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.

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

________ is determined by a customer's evaluation of the benefits and costs of a market offering relative to those of competing offers.

An organization's department follows a customer-centered sense-and-respond philosophy. The department is most likely practicing the product concept.

Which of the following statements about the Internet is most accurate?