Deck 1: Marketing: Creating and Capturing Customer Value

Question 1

Which of the following concepts holds that consumers will favor products that are available and highly affordable?

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

Answer 1

E

Question 2

The ________ concept holds that consumers will favor goods and services that offer the most in quality,performance,and innovative features.

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

Answer 2

E

Question 3

According to the five-step model of the marketing process,the first step in marketing is ________.

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

Answer 3

D

Question 4

Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability.This most likely reflects the ________.

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

Question 5

________ are defined as states of felt deprivation.

A) Needs
B) Ideas
C) Demands
D) Values
E) Exchanges

Question 6

Marketers are said to suffer from marketing myopia when they ignore underlying consumer needs and focus excessively on ________.

A) consumers' brand experiences
B) competitors' threats
C) consumers' existing wants
D) competitors' strengths
E) consumers' future demands

Question 7

A brand's ________ is the set of benefits that it promises to deliver to consumers to satisfy their needs.

A) dominant effect
B) fringe benefit
C) perquisite
D) value proposition
E) dividend yield

Question 8

Which of the following is a difference between the marketing concept and the selling concept?

A) The marketing concept focuses on customer needs, whereas the selling concept focuses on existing products.
B) The marketing concept focuses on customer conquest, whereas the selling concept focuses on targeting the right customers.
C) The marketing concept takes an inside-out perspective, whereas the selling concept takes an outside-in perspective.
D) The marketing concept is product-centered, whereas the selling concept is production-centered.
E) The marketing concept focuses on short-term sales, whereas the selling concept strives to build long-term customer relationships.

Question 9

The selling concept is typically practiced with ________.

A) industrial products
B) unsought goods
C) specialty products
D) convenience products
E) essential goods

Question 10

The selling concept holds that ________.

A) consumers will not buy enough of a firm's products unless the firm undertakes large-scale persuasion and promotion efforts
B) a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests
C) consumers will only favor products that are available and highly affordable
D) achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
E) consumers will favor products that offer the most in quality, performance, and innovative features

Question 11

GT Grand,a manufacturer of ultra-luxury cars,supplies customized vehicles based on the specific demands of customers in affluent market segments.The company's approach is most likely referred to as ________.

A) mass distribution
B) cost leadership
C) consumer-generated marketing
D) target marketing
E) undifferentiated marketing

Question 12

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

A) Wants
B) Necessities
C) Services
D) Benefits
E) Risks

Question 13

Abel now has the buying power to purchase the computer that he wanted to buy six months ago.Abel's want has most likely become a(n)________.

A) need
B) value
C) demand
D) offering
E) desire

Question 14

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

A) Targeting
B) Segmentation
C) Differentiation
D) Exchange
E) Positioning

Question 15

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

A) process reengineering
B) brand synchronizing
C) mass customizing
D) target marketing
E) market positioning

Question 16

Dividing a market into several sections of customers is known as ________.

A) mass customization
B) market positioning
C) market segmentation
D) value engineering
E) undifferentiated marketing

Question 17

Voize,a leading mobile phone manufacturer,focuses on low labor costs and mass distribution to ensure the continuous availability of its products at reasonable prices.Voize most likely follows the ________.

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

Question 18

The production concept holds that ________.

A) consumers will not buy enough of a firm's products unless the firm undertakes a large-scale selling and promotion effort
B) a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests
C) consumers will favor products that are available and highly affordable
D) achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
E) consumers will favor products that offer the most in quality, performance, and innovative features

Question 19

When backed by buying power,wants become ________.

A) needs
B) demands
C) offerings
D) values
E) ideas

Question 20

According to the product concept,a company should ________.

A) make products that contribute to the long-term welfare of society
B) market only those products that have high customer appeal
C) focus on a target market and make products that meet those customers' demands
D) devote its energy to making continuous product improvements
E) make product promotion a top priority

Question 21

The concept of shared value focuses on ________.

A) creating economic value in a way that also creates value for society
B) maximizing profits to satisfy shareholders
C) creating sales transactions instead of long-term customer relationships
D) building strategic supplier partnerships to create more value for investors
E) providing more financial incentives to sales team members

Question 22

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) functional
E) product

Question 23

Some fast food restaurants offer tasty and convenient food at affordable prices,but in doing so they contribute to the soaring obesity rates and environmental problems.In this case,these fast-food restaurants have overlooked the ________ concept.

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

Question 24

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

A) Customer-driven
B) Mass
C) Sustainable
D) Customer-driving
E) Ambush

Question 25

The ________ concept 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) marketing
B) product
C) production
D) selling
E) societal marketing

Question 26

Sally purchased a newly introduced moisturizing lotion.By attempting to find out if the lotion's perceived performance matched her expectations,Sally was measuring her level of customer ________.

A) loyalty
B) satisfaction
C) equity
D) engagement
E) lifetime value

Question 27

Cylog,a leading provider of personal computer systems,began manufacturing tablet devices after predicting a future consumer need for portability.Which of the following was most likely implemented by Cylog?

A) the selling concept
B) customer-driving marketing
C) the product concept
D) sustainable marketing
E) the production concept

Question 28

Customer-driven marketing is most effective when ________.

A) a clear need exists among customers, but the need is difficult to identify
B) customers do not know what they want but are easily persuaded
C) customers seek new products and technological innovations
D) clear needs exist and customers know what their needs are
E) customers have wants but cannot afford them

Question 29

In which of the following circumstances is an organization likely to engage in full partnerships with key consumers?

A) when the market has few customers and high margins
B) when the market has a huge number of customers
C) when the firm has a frequency marketing program
D) when the firm has a large number of low-margin customers
E) when the firm has few marketing resources at its disposal

Question 30

Directing consumers toward products and services that meet their present and future needs is referred to as ________ marketing.

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

Question 31

Customer evangelists are those who ________.

A) use personal selling methods to market products and services
B) tell others about their good experiences with a brand or product
C) use their expertise to influence people about specific products
D) work with quality-assurance teams to improve product safety
E) evaluate newly launched products in the marketplace

Question 32

Fine Corp.,a consumer electronics manufacturer,targets a market with many low-margin customers.Which of the following types of associations would be most profitable for the firm to develop with these customers?

A) full partnerships
B) basic relationships
C) joint ventures
D) strategic alliances
E) business partnering

Question 33

Which of the following concepts calls for sustainable marketing?

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

Question 34

Which of the following terms refers to a customer's evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers?

A) customer-perceived value
B) customer equity
C) share of customer
D) customer profitability
E) customer lifetime value

Question 35

The societal marketing concept holds that ________.

A) consumers will not buy enough of a firm's products unless the firm undertakes a large-scale selling and promotion effort
B) a company's marketing decisions should focus on creating economic value in a way that also creates value for the surrounding environment
C) the society will only favor products that are available and highly affordable
D) achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
E) consumers will favor products that offer the most in quality, performance, and innovative features

Question 36

The overall process of dealing with all aspects of acquiring,keeping,and growing customers is referred to as ________.

A) perceived-value management
B) societal marketing
C) customer relationship management
D) partner relationship management
E) enterprise resource planning

Question 37

Raymond purchased a Honda Civic six months ago because he perceived Honda's superiority over the competition.Raymond has been more than satisfied with his purchase and now has an emotional relationship with the Honda brand.Raymond's relationship with Honda is best referred to as ________.

A) customer delight
B) customer lifetime value
C) customer equity
D) customer share
E) customer-perceived value

Question 38

Futuristic Designs Inc.,a furniture retail chain,understands and anticipates customer needs even better than customers themselves do and creates products and services to meet their existing and future needs.Which of the following has Futuristic Designs followed in this case?

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

Question 39

The Niketown running community organizes bimonthly athletic training programs for Nike buyers.This is an example of a ________.

A) business partnership program
B) joint venture
C) club marketing program
D) consumer-generated marketing program
E) strategic alliance

Question 40

Which of the following concepts is based on a customer-centered philosophy?

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

Question 41

________ refers to working closely with people inside and outside the company to jointly bring more value to customers.

A) Demand management
B) Customer-generated marketing
C) Integrated communication
D) Partner relationship management
E) Channel value proposition

Question 42

The ultimate aim of customer relationship management is to ________.

A) produce high customer equity
B) divide markets into distinct segments
C) evaluate customer lifetime value
D) turn "strangers" into "butterflies"
E) evaluate current sales share

Question 43

________ refers to the portion of the customer's purchase that a company gets in its product categories.

A) Value proposition
B) Share of customer
C) Brand equity
D) Customer lifetime value
E) Customer equity

Question 44

________ are customers who show low potential profitability and little projected loyalty.

A) True friends
B) Barnacles
C) Strangers
D) True believers
E) Butterflies

Question 45

A customer who is both loyal and profitable is referred to as a ________.

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

Question 46

Which of the following is true of mobile marketing?

A) Few American adults today own a smartphone.
B) A smartphone is a highly impersonal medium with a low scope for engagement.
C) Marketers use mobile channels to stimulate immediate buying.
D) Mobile marketing is a traditional marketing method.
E) Mobile marketing is the slowest-growing digital marketing platform.

Question 47

Greater consumer control means that companies must rely more on marketing by ________.

A) intrusion
B) attraction
C) competition
D) forceful persuasion
E) impersonal selling

Question 48

________ refers to a channel stretching from raw materials to components to final products that are carried to final buyers.

A) A supply chain
B) A marketing channel
C) A market segment
D) A demand chain
E) A marketing-mix channel

Question 49

The final step in the marketing process is ________.

A) capturing value from customers
B) constructing an integrated marketing program
C) building profitable relationships with the customers
D) understanding the marketplace
E) designing a customer-driven marketing strategy

Question 50

A consumer who is potentially profitable but shifts loyalty toward better deals is referred to as a ________.

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

Question 51

Which of the following transforms marketing strategies into real values for consumers?

A) share of customer
B) customer equity
C) the four Ps of marketing
D) a firm's value proposition
E) customer satisfaction surveys

Question 52

Carla,a team leader in charge of customer relationship management,is planning strategies to improve 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) innovators

Question 53

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

A) Share of customer
B) Value proposition
C) Customer equity
D) Market share
E) Customer-perceived value

Question 54

Ellis,a marketing manager at a regional chain restaurant,has decided to create a contest asking the public to create commercials for the restaurant.Winning entries will be posted on the organization's home page.Ellis' plan is an example of ________.

A) consumer-generated marketing
B) frequency marketing
C) customer-club marketing
D) sustainable marketing
E) multi-level marketing

Question 55

Customers who are classified as true believers ________.

A) are attracted to a company's competitor's deals and offers
B) have needs and wants that do not fit a company's offerings
C) are not very profitable for a company
D) tell others about their good experiences with a company
E) are projected to be less loyal to any brand

Question 56

The state department of health has allotted a significant amount of money for an advertising campaign that emphasizes the ill effects of smoking and spans radio,print,television,and online media.This is an example of ________ marketing.

A) ambush
B) social
C) for-profit
D) consumer-generated
E) multi-level

Question 57

At Ken's boutique,the policy statement posted in the reception states: "Without our customers,we don't exist." Ken and his staff aim to delight each customer and they are quick to offer discounts or extra services whenever a customer is anything less than satisfied.Instead of focusing on individual transactions,Ken and his staff are putting a priority on ________.

A) decreasing customer-perceived value
B) managing partner relationships
C) attracting "butterflies"
D) converting "strangers" into "butterflies"
E) capturing customer lifetime value

Question 58

Which of the following is most likely a consequence of the Great Recession of 2008 to 2009?

A) more free-spending on expensive products
B) more demand for credit and debit cards
C) more sensible and mindful consumption
D) less interest in frugality and value
E) less emphasis on sustainable marketing

Question 59

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

A) Cristal, a jewelry store, uses its page on Facebook to provide information about its upcoming products to its customers.
B) Figa, a leading provider of athletic shoes, helps its customers customize their shoes on its Web site and choose personalized settings.
C) Fun & Run, a local amusement park, promotes its services by allowing consumers to upload videos and write reviews about the park.
D) Barton's, a local pet supply store, rewards frequent buyers with vouchers and exclusive offers.
E) Energix, a manufacturer of soft drinks, attracts customers through televised advertisements.

Question 60

In which of the following customer relationship groups do organizations generally avoid investing?

A) barnacles
B) strangers
C) butterflies
D) true believers
E) true friends

Question 61

Marketing is managing profitable customer relationships.

Question 62

Club marketing programs reward customers who buy frequently or in large amounts.

Question 63

Customer relationship management focuses on retaining existing customers but not on acquiring new customers.

Question 64

Xenon Corp.releases frequent updates to improve its expensive software products.This marketing approach used by the firm is most likely based on the production concept.

Question 65

A market is a segment of potential consumers who share a common need or want.

Question 66

The more loyal a firm's profitable customers,the lower its customer equity.

Question 67

Customer-driving companies create products and services that serve only the existing needs of consumers.

Question 68

Market offerings include entities such as people,places,information,and ideas.

Question 69

Success at delivering customer value rests on how well a company's entire supply chain performs against competitors' supply chains.

Question 70

The process of dividing the market into segments of customers is known as market penetration.

Question 71

A greater focus on underlying customer needs than on existing customer wants leads to marketing myopia.

Question 72

When backed by buying power,wants become needs.

Question 73

In markets with few customers and high margins,sellers should try to develop basic relationships rather than full partnerships.

Question 74

When sellers pay less attention to the specific products they offer and more attention to the benefits and experiences produced by these products,they suffer from marketing myopia.

Question 75

Customer-perceived value is defined as a customer's evaluation of the perceived difference between all the benefits and all the costs of a market offering relative to those of competing offers.

Question 76

Organizations that follow the societal marketing concept most likely practice socially and environmentally responsible marketing.

Question 77

Through consumer-generated marketing,consumers themselves are playing a bigger role in shaping their own brand experiences and those of others.

Question 78

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

Question 79

A brand's value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs.

Question 80

The product concept holds that consumers will favor products that offer the most in quality,performance,and innovative features.