Deck 1: Marketing: Creating Customer Value and Engagement

Question 1

Which of the following is NOT an accurate description of modern marketing?

A) Marketing is the creation of value for customers.
B) Marketing involves managing profitable customer relationships.
C) Marketing emphasizes selling and advertising exclusively.
D) Marketing involves satisfying customers' needs.
E) Marketing is building value-laden exchange relationships with customers.

Answer 1

C

Question 2

Market offerings are limited to physical products.

Answer 2

False

Question 3

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

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

Answer 3

B

Question 4

When backed by buying power, wants become ________.

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

Question 5

Marketing is managing profitable customer relationships.

Question 6

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

A) market
B) control group
C) subsidiary
D) focus group
E) audience

Question 7

Human needs are shaped by culture and individual personality.

Question 8

________ is the act of obtaining a desired object from someone by offering something in return.

A) Valuation
B) Exchange
C) Market offering
D) Confiscation
E) Donation

Question 9

Refer to the scenario below to answer the following question(s).
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."
Seagull Terrace offers its customers good accommodations, local delicacies, and amazing seaside views. The overall experience provided at the motel is a part of its ________.

A) market offering
B) target market
C) market segment
D) product positioning
E) marketing mix

Question 10

A ________ is some combination of products, services, information, or experiences provided to consumers to satisfy a need or want.

A) market offering
B) value proposition
C) brand positioning
D) market segment
E) market mix

Question 11

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

A) positioning
B) marketing
C) outsourcing
D) production
E) logistics

Question 12

Which of the following terms refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs?

A) vendor lock-in
B) social loafing
C) value proposition
D) marketing myopia
E) conspicuous consumption

Question 13

When marketers set low expectations for a market offering, they run the risk of ________.

A) disappointing loyal customers
B) having to use an outside-in rather than an inside-out perspective
C) failing to attract enough customers
D) failing to understand their customers' needs
E) incorrectly identifying a target market

Question 14

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

A) maximize profits of the company
B) emphasize customer wants and not customer needs
C) make selling unnecessary
D) fulfill unrealistic customer expectations
E) sell products

Question 15

When backed by buying power, needs become wants.

Question 16

According to the five-step model of the marketing process, which of the following is the final step in creating value for customers?

A) designing a customer-driven marketing strategy
B) understanding the marketplace and customer needs
C) constructing an integrated marketing program that delivers superior value
D) building profitable relationships and creating customer delight
E) capturing value from customers to create profit and customer equity

Question 17

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

A) determine how to deliver superior value to customers
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 an integrated marketing program

Question 18

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

Question 19

Greg Williams now has the buying power to purchase the desktop computer that he has wanted for the last six months. Greg's want now has become a(n) ________.

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

Question 20

Marketing is defined as a social and managerial process by which individuals and organizations obtain what they need and want through ________.

A) research and development
B) innovation and creativity
C) manufacturing efficiencies
D) value creation and exchange
E) sales and revenue creation

Question 21

You are a manufacturer of tents, sleeping bags, and outdoor cooking equipment. How might you go about creating brand experiences for your customers?

Question 22

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

Question 23

Which of the following is the aim of the product concept?

A) improve the marketing of a firm's 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) focus on making continuous product improvements
E) ensure that product promotion has the highest priority

Question 24

What should sellers consider if they wish to avoid marketing myopia?

Question 25

Which of the following refers to a set of benefits that a company promises to deliver to customers to satisfy their needs?

A) customer lock-in
B) a cartel
C) marketing mix
D) value proposition
E) market segmentation

Question 26

Briefly compare and contrast the concepts of needs, wants, and demands and provide examples to illustrate your answer. How do these three concepts relate to marketing practices?

Question 27

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 ________ concept.

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

Question 28

Which of the following marketing management concepts is most likely to lead to marketing myopia?

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

Question 29

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

A) market segmentation
B) positioning
C) customization
D) target marketing
E) differentiation

Question 30

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

A) marketing management
B) positioning
C) marketing mix
D) market offering
E) differentiation

Question 31

The ________ concept is aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer the most in quality, performance, and innovative features.

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

Question 32

Which of the following customer questions is answered by a company's value proposition?

A) "Why should I buy your brand rather than a competitor's?"
B) "What is your company's estimated customer equity?"
C) "What are the costs involved in the production of your brand?"
D) "What is the budget allocated by your company for research and development?"
E) "What is the financial stability of your company?"

Question 33

Cathy's Clothes is a small yet successful retail chain that sells women's clothing and accessories with a focus on buyers who have relatively modest means. For this specific purpose, the firm has rolled out several marketing initiatives aimed at women of a specific demographic. This is an example of ________.

A) ambush marketing
B) social marketing
C) societal marketing
D) target marketing
E) cause marketing

Question 34

A market is the set of actual and potential buyers of a product or service.

Question 35

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 36

An experience such as a vacation can be defined as a market offering.

Question 37

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

Question 38

Which of the following statements is true of the production concept?

A) It considers customer focus and value to be the paths to sales and profits.
B) It follows the customer-centered sense-and-respond philosophy.
C) It takes an outside-in perspective.
D) It calls for sustainable marketing.
E) It leads to companies focusing too narrowly on their own operations.

Question 39

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

Question 40

An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious individuals, and people identified as trendsetters who try out new products in the market before others. These three groups are examples of ________.

A) marketing mixes
B) market segments
C) value propositions
D) market offerings
E) marketing intermediaries

Question 41

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

A) Companies understand customer needs even better than customers themselves do.
B) Customers are unaware of their needs.
C) Products are created that meet both existing and latent needs, now and in the future.
D) Customers know what they want.
E) Customers don't know what is possible.

Question 42

The societal marketing concept seeks to establish a balance between ________.

A) customer lifetime value and customer equity
B) an inside-out perspective and an outside-in perspective
C) consumer short-run wants and consumer long-run welfare
D) marketing mixes and market offerings
E) customer-driven marketing and customer-driving marketing

Question 43

________ refers to socially and environmentally responsible marketing that meets the needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.

A) Ambush marketing
B) Evangelism marketing
C) Sustainable marketing
D) Database marketing
E) Affinity marketing

Question 44

________ marketing is practiced by an organization that understands and anticipates customer needs even better than customers themselves do and creates products and services to meet current and future needs.

A) Customer-driven
B) Customer-driving
C) Affinity
D) Societal
E) Ambush

Question 45

Which of the following marketing orientations calls for aggressive promotional efforts and focuses on creating transactions rather than long-term customer relationships?

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

Question 46

Market segmentation is the process of seeking fewer customers and reduced demand for profit maximization only.

Question 47

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.

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

Question 48

The selling concept holds that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort.

Question 49

The selling concept is typically practiced ________.

A) to balance consumers' wants, company's requirements, and the society's long-run interests
B) with products that offer the most in terms of quality, performance, and innovative features
C) when the company focuses on building long-term customer relationships
D) with goods that buyers normally do not think of buying
E) by customer-driven companies

Question 50

Which of the following statements is true of the selling concept?

A) It requires minimum promotion efforts.
B) It creates long-term, profitable customer relationships.
C) It takes an outside-in perspective.
D) It is typically practiced with unsought goods.
E) It follows the customer-centered sense-and-respond philosophy.

Question 51

Which of the following statements reflects the marketing concept?

A) Focus on making continuous product improvements.
B) Undertake a large-scale selling and promotion effort.
C) Emphasize an inside-out perspective.
D) Consider customer focus and value as the paths to sales and profits.
E) Focus on a product-centered make-and-sell philosophy.

Question 52

Which of the following marketing orientations holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do?

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

Question 53

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

A) All customers will be delighted.
B) Customer-perceived value will increase.
C) All customers will directly turn into customer evangelists.
D) Not all customers will be satisfied.
E) Customers will not show interest in any other company's products.

Question 54

Jolene's firm markets preplanning services for a mortician. She finds that most of her target market avoids discussing future funeral needs. She convinces people to invest in the firm's services through her large-scale promotional efforts. Jolene's firm most likely practices the ________.

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

Question 55

The marketing concept takes a(n) ________. It starts with a well-defined market, focuses on customer needs, and integrates all the marketing activities that affect customers.

A) outside-in perspective
B) product-centered make-and-sell philosophy
C) inside-out perspective
D) consumer-generated marketing approach
E) telling-and-selling approach

Question 56

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

A) customer-driven
B) customer-driving
C) societal
D) ambush
E) affinity

Question 57

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 58

A firm that uses the selling concept takes a(n) ________ approach.

A) outside-in
B) niche marketing
C) inside-out
D) societal marketing
E) customer-driven

Question 59

Which of the following uses a customer-centered "sense-and-respond" philosophy rather than a product-centered "make-and-sell" philosophy?

A) market segmentation
B) the production concept
C) the marketing concept
D) the inside-out perspective
E) marketing myopia

Question 60

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) market offering
E) marketing effort

Question 61

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

A) customer lifetime value
B) customer-perceived value
C) customer relationship management
D) partner relationship management
E) customer equity

Question 62

The production concept and the product concept are marketing management orientations that are more likely to lead to marketing myopia.

Question 63

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.

Question 64

The marketing team at Bead Beautiful, a jewelry brand targeted at preteen girls, is meeting to formulate the product's value proposition. What should team members consider as they define a value proposition for Bead Beautiful?

Question 65

Company X, a manufacturer of office supplies, follows the selling concept. Explain how the firm may lose sight of customer relationships with this marketing orientation.

Question 66

Fast Food, Inc. views marketing as the process of finding and retaining profitable customers by providing them with the food they want. Fast Food, Inc. practices societal marketing.

Question 67

Which of the following marketing strategies should marketing managers focus on to manage detailed information about individual customers and carefully manage customer touchpoints to maximize customer loyalty?

A) customer divestment
B) customer-managed relationships
C) the societal marketing concept
D) partner relationship management
E) customer relationship management

Question 68

The primary key to delivering customer satisfaction is to match product performance with ________.

A) the performance of competitive products
B) competitive prices
C) aggressive advertising
D) limited customer services
E) customer expectations

Question 69

Briefly explain the societal marketing concept. Give an example of an organization that has effectively used the societal marketing concept.

Question 70

In which of the following situations has a company most actively embraced customer-managed relationships?

A) American Airlines awards frequent flyer points to returning customers.
B) Paige Premium Denim jeans provide superior quality and perfect fit.
C) iRobot invites enthusiastic Roomba owners to develop and share their own uses for the company's robotic vacuum cleaner.
D) Best Buy distinguishes between its best customers and its less profitable customers, stocking merchandise to appeal to each group.
E) Toyota develops a marketing presence on social networks and other online communities.

Question 71

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

A) Losing a customer means losing the entire stream of purchases that the customer would make over a lifetime of patronage.
B) Customer delight creates a rational preference and not an emotional relationship with the brand.
C) The aim of customer relationship management is to focus solely on customer delight.
D) Losing a customer hardly makes a difference to a company's sales.
E) The aim of customer relationship management is to focus solely on customer satisfaction.

Question 72

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

A) brand loyalty
B) customer equity
C) customer-perceived value
D) customer lifetime value
E) a societal marketing campaign

Question 73

The marketing mix refers to the set of marketing tools the firm uses to implement its marketing strategy.

Question 74

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

Question 75

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

A) Customer-perceived value
B) Customer lifetime value
C) Share of customer
D) Customer-managed relationship
E) Brand value proposition

Question 76

It is most accurate to say that when customers purchase products they act on ________ as they judge values and costs.

A) objective value
B) perceived value
C) customer lifetime value
D) company image
E) society's interests

Question 77

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

Question 78

When demand for toys produced by Bean Toyz was at its highest, manufacturers purposefully maintained strong demand by limiting supply, which drove the price of Beanie Babies up. Compare the actions of these manufacturers to the production concept.

Question 79

Explain why electronics and pharmaceuticals manufacturers use customer-driving marketing.

Question 80

Compare the selling and marketing concepts, listing the key components of each philosophy.