Deck 11: Building Customer Relationships Through Effective Marketing

Question 1

A marketing information system provides information for specific marketing projects.

Answer 1

False

Question 2

Market segmentation means dividing consumers according to their wants, income, and geographic location.

Answer 2

True

Question 3

Form utility is created by making a product available at a location where customers wish to purchase it.

Answer 3

False

Question 4

The four types of utility are time, place, form, and purpose.

Question 5

A firm should have no more than one market segment in its marketing strategy.

Question 6

Reseller markets consist of intermediaries such as wholesalers that buy finished products and sell them for a profit.

Question 7

The Whirlybird Vacuum Cleaner Company has a field sales team of 1,000 that goes door-to-door giving in-home demonstrations of the company's products. The product demonstrations often come with some high-pressure sales pitches. Whirlybird uses a strong sales orientation in moving its products.

Question 8

A marketing plan specifies an organization's resources, objectives, marketing strategy, and implementation and control efforts to be used in marketing a specific product or product group.

Question 9

Sales forecasts generally are not affected by the level of marketing effort planned for the forecast period.

Question 10

At Mattel, a marketing information system stores data on regional sales activities, promotional costs, and international inventory levels. These data are examples of external sources.

Question 11

The income an individual receives from all sources less the Social Security taxes that the individual must pay is called personal income.

Question 12

Consumers use different types of decision behaviors when buying different products.

Question 13

Long-range marketing plans typically cover two years.

Question 14

Within a market, a group of individuals or firms that share one or more common characteristics is called a target group.

Question 15

Sales are only forecasted in the long range, covering more than five years.

Question 16

The marketing process involves eight major business functions.

Question 17

No product can be marketed successfully by using the undifferentiated approach.

Question 18

A firm's marketing activities are affected by external and generally uncontrollable forces.

Question 19

The only kind of utility created by production is time utility, because the producer makes that product available to the customer at the time it is needed.

Question 20

Marketing activities amount to about one-half of every dollar that consumers spend.

Question 21

The evolution of customer orientation started with businesses having a strong sales orientation, followed by a production orientation, and finally a customer orientation.

Question 22

The AMA defines marketing as "The activity, set of institutions, and process for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large."

Question 23

Consumers are usually better informed than business buyers about the products they buy.

Question 24

The distribution ingredient is concerned only with transportation and storage.

Question 25

From the start of the Industrial Revolution until the early twentieth century, business had a strong production orientation.

Question 26

Customer relationship management is a technology solution for increasing sales.

Question 27

There are four kinds of utility: time, form, place, and price.

Question 28

CRM technology allows companies to make an investment in building long-term relationships with their customers.

Question 29

Implementation of the marketing concept requires a firm to obtain information on what customers' needs are and how those needs are being met by products currently on the market.

Question 30

Organizations usually use only one method for forecasting sales.

Question 31

A marketing information system manages information from both internal and external sources.

Question 32

The pricing ingredient is concerned primarily with the producer's costs of design.

Question 33

The exchange function involves buying, selling, and transporting.

Question 34

Buying behavior may be defined as the decisions and actions of people involved in buying and using products.

Question 35

A marketing plan is a written document that specifies an organization's resources, objectives, and strategy.

Question 36

A marketing information system is computer-based and uses information from both internal and external sources.

Question 37

Examples of product ingredients of the marketing mix include design of the product and trade names, packaging, and warranties.

Question 38

Marketing research, like a marketing information system, involves a continuous process.

Question 39

An essential aspect of the marketing concept is ensuring that the firm has adequate production capabilities to satisfy future demand.

Question 40

Sales forecasts are used by managers in different divisions of an organization.

Question 41

A consumer usually will go through all of the steps of the consumer buying decision process for every purchase.

Question 42

From time to time, some of the activities within the eight major functions of marketing are eliminated to provide for a more effective marketing process.

Question 43

The power of a good or service to satisfy a human need is called utility.

Question 44

Time, place, and possession utility have no real value in terms of money.

Question 45

The four elements of the marketing mix are product, price, distribution, and promotion.

Question 46

Accurate and timely information is the foundation of effective marketing, especially of the marketing concept.

Question 47

Greer, Inc. is developing a marketing information system to try to improve its marketing efforts. Internal sources of marketing data the company could incorporate in the MIS include all of the following except

A)sales forecasts.
B)economic conditions.
C)inventory levels.
D)purchase requests.
E)prices of products.

Question 48

Marketing managers are better able to predict consumer responses to marketing strategies and to develop a satisfying marketing mix if they are aware of the factors that

A)are controllable marketing forces.
B)are uncontrollable marketing forces.
C)affect buying behavior.
D)are used to segment the market.
E)are involved in the handling of consumer complaints.

Question 49

The Terminator Home Security Company markets its infrared alarm system to urban residents who are more likely to experience a theft than their rural counterparts. This is an example of ____ segmentation.

A)demographic
B)brand-related
C)psychographic
D)geographic
E)behavioristic

Question 50

During the 1950s, the marketing concept began to develop as business managers recognized that they were not primarily producers or sellers but rather were in the business of

A)satisfying customers' needs.
B)researching new technologies.
C)developing human resources.
D)developing corporate cultures.
E)creating positive public relations.

Question 51

Dell Computer Corporation sells personal computers to colleges and universities, hospitals, civic clubs, charitable organizations, and foundations. This market is called a(n) ____ market.

A)consumer
B)producer
C)governmental
D)institutional
E)reseller

Question 52

Lynn walks into a local convenience store to buy chewing gum. She more than likely will employ ____ in deciding to make that purchase.

A)absolute response behavior
B)extensive decision making
C)limited decision making
D)routine response behavior
E)intensive decision making

Question 53

If you have always been committed and loyal to Hewlett-Packard technology products, your customer lifetime value to Hewlett-Packard would likely be quite high.

Question 54

IRI, a marketing research firm, has been contracted by T-Fal to evaluate the market performance of a new line of cookware. Which of the following is not likely to be a step in IRI's research process?

A)Interpreting the research data
B)Collecting data
C)Making decisions about whether or not the cookware's market performance is acceptable
D)Designing the research project
E)Reaching a conclusion

Question 55

Your Best, Inc.
Christie worked for a retail company and noticed there were many things it could do better. She shared some of her ideas with upper management, but it did not want to do things differently. When Christie went home to talk to her husband, they both realized that, given her passion, it would be better for Christie to open her own business. After a lot of consideration, she decided to open a sporting goods store called Your Best, Inc. She also knew just where to open the store⎯right next to her hous
Refer to Your Best, Inc. Marketing research involves

A)satisfying customers.
B)determining a target market.
C)creating a product mix.
D)interpreting information.
E)product promotion.

Question 56

Marketers are most interested in discretionary income because consumers have the most choice in spending it.

Question 57

When Pepsi decides to develop a new product, it creates the product itself, determines the price the new product will sell for, decides how to distribute the product to consumers, and develops a promotion campaign to inform the market of the new product. Pepsi has created a(n)

A)marketing strategy.
B)consumer market.
C)undifferentiated approach.
D)market segmentation.
E)marketing mix.

Question 58

One way to segment a market is according to whether the purchaser is a consumer or a business-to-business user.

Question 59

Which of the following is the most likely basis on which a market for boats can be segmented?

A)The end use of the product
B)The size of the product
C)The product's proximity to a retail outlet
D)Religion
E)The color of the product

Question 60

General Motors uses multiple marketing mixes for its various divisions and focuses these marketing mixes on various segments of the automobile-purchasing market. General Motors uses

A)concentrated market segmentation.
B)an undifferentiated approach.
C)differentiated market segmentation.
D)segmentation by function.
E)mixed market segmentation.

Question 61

The elements of the marketing mix are

A)product, price, merchandising, and promotion.
B)markets, goods, pricing, and transportation.
C)product, buyers, sellers, and price.
D)product, price, distribution, and promotion.
E)product, markets, buyers, and sellers.

Question 62

A(n)___, used for marketing research, collects information from e-mail, Web sites, downloadable files, news, databases, and research materials.​

A)​online information service
B)​advertising service
C)​neuroscience service
D)​brainwave study

Question 63

Caroline's Crafts 'N Things
Sarah works for a retail shop called Caroline's Crafts 'N Things. Sarah was often quite rude to customers when they annoyed her. One morning, her supervisor asked Sarah into her office and informed her that her behavior was unacceptabl
Over the next few months, Sarah began to help customers learn more about the different products in the store and often explained why the customer might want to purchase one product over another. In doing so, she realized the importance of her role in the retail shop and began to truly enjoy her job. She started to think about the future of the company. She even thought that the company could do very well if it were to sell its products on eBay. When she brought this idea to her boss, her boss thought it was excellent, and asked Sarah to look further into the pros and cons of her idea.
After evaluating Sarah's research, her boss decided to move forward with the idea, asking Sarah to head up this new venture for the company. Sarah then realized that retail is not just about making the sale; the customer should be the focus of all operations. Sarah now looks up to her boss, and is very glad that she was there to mentor her.
Refer to Caroline's Crafts 'N Things. When Sarah was brought into her boss's office, what was her manager trying to explain?

A)Customer motivation
B)Customer lifetime value
C)Disposable income
D)Marketing information system
E)Possession utility

Question 64

Leslie studies how individuals go about purchasing products for their personal consumption and what factors influence these decisions. Leslie studies

A)business buying behavior.
B)consumer buying behavior.
C)marketing psychology.
D)purchasing psychology.
E)marketing research.

Question 65

A computer-based system for continually gathering internal and external information is called

A)marketing research.
B)a marketing information system.
C)market segmentation.
D)market targeting.
E)market programming.

Question 66

The process of systematically gathering, recording, and analyzing data concerning a particular marketing problem is called

A)marketing research.
B)target marketing.
C)marketing segmentation.
D)market sampling.
E)decision research.

Question 67

A market is a group of individuals and/or organizations that have needs for products in a given category and have the ability, willingness, and ____ to purchase such products.

A)utility
B)credit
C)desire
D)money
E)authority

Question 68

Federated Insurance wants to expand its line of life insurance products by introducing a new policy. In keeping with the marketing concept, it likely will research all of the following except

A)what price level is acceptable to customers.
B)what features potential customers are most interested in.
C)who the major competitor's most recent buyers are.
D)what promotional activities will best illustrate the new product's benefits.
E)where the product should be distributed.

Question 69

Caroline's Crafts 'N Things
Sarah works for a retail shop called Caroline's Crafts 'N Things. Sarah was often quite rude to customers when they annoyed her. One morning, her supervisor asked Sarah into her office and informed her that her behavior was unacceptabl
Over the next few months, Sarah began to help customers learn more about the different products in the store and often explained why the customer might want to purchase one product over another. In doing so, she realized the importance of her role in the retail shop and began to truly enjoy her job. She started to think about the future of the company. She even thought that the company could do very well if it were to sell its products on eBay. When she brought this idea to her boss, her boss thought it was excellent, and asked Sarah to look further into the pros and cons of her idea.
After evaluating Sarah's research, her boss decided to move forward with the idea, asking Sarah to head up this new venture for the company. Sarah then realized that retail is not just about making the sale; the customer should be the focus of all operations. Sarah now looks up to her boss, and is very glad that she was there to mentor her.
Refer to Caroline's Crafts 'N Things. Doing business on eBay allows an entrepreneur to

A)develop a business-to-business selling model.
B)develop form utility.
C)create place utility.
D)find out what works, fast.
E)explore producer markets.

Question 70

General Mills is setting up a marketing information system to keep track of marketing trends. External sources of marketing data include all of the following except

A)raw material suppliers.
B)forecasts about general economic conditions.
C)the company's historical sales data.
D)customers.
E)competitors' activities.

Question 71

Walmart has its own trucks that ship merchandise to its warehouses from the supplier for backstock purposes. Walmart is carrying out which of the following functions?

A)Contracting with suppliers
B)Standardizing and grading its facilities
C)Buying and selling
D)Risking obsolescence of its products
E)Transporting and storing

Question 72

The elements of the marketing mix are combined to

A)demonstrate the expertise of the marketing staff.
B)meet product display requirements.
C)encourage in-house support for marketing.
D)fulfill trade show and other promotional commitments.
E)satisfy the target market.

Question 73

Car dealers are financed by automobile manufacturers, and Walmart receives financing from its wholesalers and manufacturers. What marketing functions do such activities perform?

A)Physical distribution
B)Standardization
C)Marketing information
D)Financing
E)Storage

Question 74

Using information about customers to create marketing strategies that develop and sustain desirable long-term customer relationships is known as

A)computer resource management.
B)customer resource management.
C)customer relationship management.
D)customer research management.
E)e-marketing.

Question 75

Your Best, Inc.
Christie worked for a retail company and noticed there were many things it could do better. She shared some of her ideas with upper management, but it did not want to do things differently. When Christie went home to talk to her husband, they both realized that, given her passion, it would be better for Christie to open her own business. After a lot of consideration, she decided to open a sporting goods store called Your Best, Inc. She also knew just where to open the store⎯right next to her hous
Refer to Your Best, Inc. Christie thought about focusing on the four elements of the marketing mix. Which of the following is one of those elements?

A)Production
B)Price
C)Power
D)Possession
E)Personal income

Question 76

A fairly recent technology-related tool that many companies use to solicit feedback from customers about the company's existing or upcoming products is

A)social media.
B)sales forecasts.
C)consumer buying behavior.
D)market segmenting.
E)customer relationship management.

Question 77

When a company collects external marketing data, it looks at information about

A)its own sales figures.
B)activities of its sales force.
C)its customers.
D)its product and marketing costs.
E)its inventory levels.

Question 78

Sue Wallace is getting married on Saturday. She purchases flowers for the church ceremony early Saturday morning from a local flower shop. Which of the following types of utility is not created by this activity?

A)Form
B)Place
C)Time
D)Possession
E)Ownership

Question 79

Your Best, Inc.
Christie worked for a retail company and noticed there were many things it could do better. She shared some of her ideas with upper management, but it did not want to do things differently. When Christie went home to talk to her husband, they both realized that, given her passion, it would be better for Christie to open her own business. After a lot of consideration, she decided to open a sporting goods store called Your Best, Inc. She also knew just where to open the store⎯right next to her hous
Refer to Your Best, Inc. If Christie were to use information services available online, they would offer her access to which of the following?

A)Databases
B)Financial assistance
C)Physical location
D)Production materials
E)Disposable income

Question 80

Furs Unlimited is using a combination of advertising and personal selling to increase the sales of its fur coats. This activity involves the ____ ingredient of the marketing mix.

A)distribution
B)promotion
C)pricing
D)timing
E)product