Deck 1: Marketing: Creating and Capturing Customer Value

Question 1

The Niketown running club that organizes twice weekly evening runs and follow- up meetings in the Nike Store is an example of which of the following?

A)a frequency marketing program
B)a structural benefit provided for top customers
C)a basic customer relationship
D)a partner relationship
E)a club marketing program

Answer 1

E

Question 2

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

A)social relationships
B)a societal marketing campaign
C)relationship marketing
D)loyalty
E)customer- perceived value

Answer 2

E

Question 3

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.

A)differentiated
B)social marketing
C)for- profit
D)ethical
E)consumer- generated

Answer 3

B

Question 4

Pete Sanchez,a recent graduate of business school,has a different approach than his marketing manager,who believes in keeping customers at arm's length and using mass media advertising.Pete knows that today few successful firms still practice true .

A)customer satisfaction
B)mass marketing
C)market segmentation
D)club marketing
E)frequency marketing

Question 5

According to the production concept,consumers will favor products that are and .

A)available;affordable
B)satisfying;quality focused
C)in high demand;hard to find
D)segmented;convenient
E)advertised;affordable

Question 6

Since the beginning of the Great Recession,marketers have been emphasizing the of their products more than ever.

A)value
B)uniqueness
C)image
D)safety
E)personality

Question 7

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)Best Buy distinguishes between its best customers,called angels,and its less profitable customers,called demons,stocking merchandise to appeal to separate groups of its angels.
C)Paige Premium Denim jeans provide a superior quality and a perfect fit.
D)Toyota develops a marketing presence on social networks and other online communities.
E)iRobot invites enthusiastic Roomba owners to develop and share their own programs and uses for the company's robotic vacuum.

Question 8

When backed by buying power,wants become .

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

Question 9

Afia,a team leader in charge of customer relationship management,is planning strategies for improving 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)barnacles
B)true friends
C)strangers
D)short- term customers
E)butterflies

Question 10

are human needs as shaped by individual personality and culture.

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

Question 11

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

A)production
B)exchange
C)marketing
D)customer relationship management
E)management

Question 12

Which of the following has been the most common consumer response to the economic downturn that began in 2008?

A)spending less but choosing products less carefully
B)saving more but spending more on credit cards
C)spending more on luxury items
D)discontinuing any spending on luxury items
E)spending less and choosing products more carefully

Question 13

The three areas of consideration that should be balanced in the societal marketing concept are consumer wants,society's interests,and .

A)short- run wants
B)want satisfaction
C)long- term needs
D)company profits
E)human welfare

Question 14

When marketers set low expectations for a market offering,the biggest risk they run is .

A)disappointing loyal customers
B)incorrectly identifying a target market
C)failing to attract enough customers
D)failing to understand their customers' needs
E)decreasing customer satisfaction

Question 15

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

A)Nike's Nike Plus running Web site
B)The Lexus Covenant aimed at creating customer delight
C)MasterCard's use of "Priceless" commercials shot by customers
D)Neiman Marcus's InCircle Rewards program for its best customers
E)Toyota's presence in online communities

Question 16

is defined as a social and managerial process by which individuals and organizations obtain what they need and want through value creation and exchange.

A)Negotiating
B)Bartering
C)Marketing
D)Selling
E)Advertising

Question 17

The marketing world is embracing because consumers can wield greater power and control in the marketplace through communication technologies.

A)market segmentation
B)customer- managed relationships
C)partner relationship management
D)supply chain management
E)target marketing

Question 18

Which of the following reflects the marketing concept?

A)"This is what I make;won't you please buy it?"
B)"Marketing should be viewed as foraging and not gardening."
C)"Customers need to be told where they want to go."
D)"The supplier is king."
E)"This is what I want;won't you please make it?"

Question 19

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

A)marketing mix
B)product mix
C)marketing effort
D)TQM
E)promotion mix

Question 20

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

A)basic customer relationship
B)structural benefit
C)partner relationship management technique
D)frequency marketing program
E)club marketing program

Question 21

"Build a better mousetrap and the world will beat a path to your door" reflects the _ concept.

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

Question 22

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

A)set realistic customer expectations
B)make selling unnecessary
C)sell products
D)create customer value
E)identify customer demands

Question 23

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

A)Donation
B)Valuation
C)Value creation
D)Bribery
E)Exchange

Question 24

As part of the rapid globalization of today's economy,companies are selling more locally produced goods in international markets and .

A)purchasing more supplies abroad
B)downplaying concerns for social responsibility
C)taking a local view of their industry
D)reducing competition within their industry
E)competing solely in traditional marketplaces

Question 25

Though often criticized,the selling concept is particularly appropriate and effective with which of the following types of products?

A)specialty
B)convenience
C)unsought
D)demarketed
E)shopping

Question 26

At Gina's Nails,the posted policy is "Without our customers,we don't exist." Gina and her staff aim to delight each customer,and they are quick to offer discounts or extra services whenever a customer is anything less than satisfied.Gina and her staff strive to make every customer a repeat customer.It is most accurate to say that instead of focusing on each individual transaction,Gina and her staff put a priority on .

A)attracting "butterflies"
B)partner relationship management
C)capturing customer lifetime value
D)enlisting customer evangelists
E)converting "strangers"

Question 27

When an airline goes after a "share of travel" from its customers,it is attempting to increase .

A)partner equity
B)customer- managed relationships
C)customer ownership
D)profit margins
E)share of customer

Question 28

Which of the following is the term for customers who make repeat purchases and tell others about their positive experiences with a product or service?

A)full partners
B)barnacles
C)butterflies
D)social customers
E)customer evangelists

Question 29

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

A)attraction;intrusion
B)interruption;involvement
C)producing;selling
D)inspiration;competition
E)socialization;information

Question 30

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

A)Customer- perceived value will increase.
B)All customers will be delighted.
C)The company will need to follow up with a service campaign.
D)Not all customers will be satisfied.
E)Customer evangelists will become unpaid salespersons for the service or product.

Question 31

The key to delivering customer satisfaction is to match with _.

A)relationship building;performance tools
B)customer expectations;product performance
C)company performance;the competition's performance
D)company performance;unique products
E)company performance;competitive prices

Question 32

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 bluff overlooking the Maine coast,Seagull Terrace had attracted thousands of visits during the summer months,but then faced a tremendous downturn in business during the winter months."But,given the industry 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,then,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 delicious entrees,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 get- aways throughout winter."
Which of the following groups is specifically part of Seagull Terrace's target market?

A)young families
B)summer campers
C)seasonal business travelers
D)retirees
E)athletes

Question 33

Of the following,which is the most important concept of modern marketing?

A)mass marketing
B)e- mail advertising
C)low prices
D)customer relationship management
E)properly trained sales people

Question 34

Which of the following is the total combined customer lifetime values of all a company's current and potential customers?

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

Question 35

Which of the following strategies would a company most likely use to increase customer satisfaction?

A)"firing" unprofitable customers
B)limiting customer experiences with a brand
C)divesting
D)decreasing the variety of offered services
E)lowering prices

Question 36

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

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

Question 37

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

A)audience
B)market
C)segment
D)exchange
E)group

Question 38

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

A)customization
B)target marketing
C)managing the marketing effort
D)market segmentation
E)positioning

Question 39

Which of the following has NOT contributed to the deeper,more interactive nature of today's customer relationships?

A)e- mail
B)video sharing
C)traditional advertising
D)online social networks
E)Web sites

Question 40

Which of the following is most essential to any definition of marketing?

A)the production concept
B)making a profit
C)demand management
D)making a sale
E)customer relationships

Question 41

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

A)an attribute
B)a money- back guarantee
C)low pricing
D)customer service
E)a value proposition

Question 42

The final step in the marketing process is .

A)designing a customer- driven marketing strategy
B)creating customer lifetime value
C)capturing value from customers
D)understanding the marketplace
E)creating customer loyalty

Question 43

Stew Leonard,the owner of a highly successful regional supermarket chain,reacts adversely to losing a single customer sale.He feels that this amounts to losing the entire stream of future purchases that a customer is likely to make if she remains in the area.Stew Leonard's concern is an illustration of which of the following?

A)market share
B)share of customer
C)market share maintenance
D)partner relationship management
E)customer lifetime value

Question 44

When the economy tightens,customer loyalty and customer retention become for marketers.

A)less important
B)short- term but not long- term goals
C)more important
D)impossible
E)long- term but not short- term goals

Question 45

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 bluff overlooking the Maine coast,Seagull Terrace had attracted thousands of visits during the summer months,but then faced a tremendous downturn in business during the winter months."But,given the industry 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,then,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 delicious entrees,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 get- aways throughout winter."
Carol Veldt has decided to ask selected guests to participate in an extensive survey about their experience at Seagull Terrace and about their most desired amenities and vacation experiences.By implementing the suggestions she receives from guests,Carol would be following the concept.

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

Question 46

Partner relationship management focuses on working with to bring more value to customers.

A)partners inside and outside of the company
B)competitors
C)interest groups
D)partners outside of the company only
E)consumers

Question 47

Which of the following is currently the fastest- growing form of marketing?

A)word- of- mouth marketing
B)consumer- generated marketing
C)societal marketing
D)online marketing
E)mass media marketing

Question 48

Marie Ortiz enjoys her work at Futuristic Designs,Inc.Her organization understands and anticipates customer needs even better than customers themselves do and creates products and services to meet current and future wants and demands.Marie's firm practices marketing.

A)relationship
B)social
C)customer- driven
D)customer- driving
E)societal

Question 49

A church targeting different demographic groups to increase attendance is an example of .

A)not- for- profit marketing
B)customer evangelism
C)caring capitalism
D)societal marketing
E)for- profit marketing

Question 50

A(n)is some combination of products,services,information,or experiences offered to consumers to satisfy a need or want.

A)market offering
B)value proposition
C)need proposition
D)evoked set
E)demand satisfaction

Question 51

Which marketing orientation calls for aggressive promotional efforts and focuses on generating transactions to obtain profitable sales?

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

Question 52

is one of the best ways to increase share of customer.

A)Divesting
B)Partnership marketing
C)Targeting new customers
D)Cross- selling
E)Using bait and switch

Question 53

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

A)Web 2.0 involves a less balanced approach to online marketing than the original dot- com boom did.
B)Companies are cautiously using the Internet to build closer relationships with customers and marketing partners alike.
C)After the dot- com meltdown of 2000,fewer consumers are buying products and services online.
D)Consumer e- commerce looks promising,but business- to- business e- commerce is declining.
E)The Internet makes it easy for consumers to view,interact with,and create marketing content.

Question 54

Railroads were once operated based on the thinking that users wanted trains rather than transportation,overlooking the challenge of other modes of transportation.This reflects the concept.

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

Question 55

Customers can be classified into four relationship groups,according to their profitability and projected loyalty.Which type of customers have the highest profit potential and strong loyalty?

A)butterflies
B)big fish
C)strangers
D)true friends
E)barnacles

Question 56

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

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

Question 57

Which of the following is a true statement about the Great Recession that began in 2008?

A)Consumers brought spending more in line with their incomes.
B)Consumers quickly regained confidence in the economy.
C)The average home value increased after the stock market plunge.
D)Decreasing energy prices provided consumers with unexpected savings.
E)The economic crisis caused a short- term change in consumers' spending habits.

Question 58

Which marketing orientation 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)production concept
B)product concept
C)selling concept
D)marketing concept
E)societal marketing concept

Question 59

According to the authors of your text,the concept is a "sense and respond" philosophy rather than a "make and sell" philosophy.

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

Question 60

Which of the following reflects the marketing concept philosophy?

A)"We don't have a marketing department;we have a customer department."
B)"When it's profits versus customers' needs,profits will always win out."
C)"We build them so you can buy them."
D)"We're in the business of making and selling superior products."
E)"You won't find a better deal anywhere."

Question 61

The societal marketing concept seeks to establish a balance between consumer short- run wants and consumer .

A)short- run costs and profits
B)immediate health
C)short- run ethics
D)value propositions
E)long- run welfare

Question 62

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

A)build profitable relationships with customers
B)use customer relationship management to create full partnerships with key customers
C)construct key components of a marketing program
D)determine how to deliver superior value
E)understand the marketplace and customer needs and wants

Question 63

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 bluff overlooking the Maine coast,Seagull Terrace had attracted thousands of visits during the summer months,but then faced a tremendous downturn in business during the winter months."But,given the industry 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,then,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 delicious entrees,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 get- aways throughout winter."
Carol Veldt's use of "promotional gimmicks" is an example of the _ concept.

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

Question 64

Ben & Jerry's challenges all stakeholders,including employees,top management,and even ice cream scoopers in their stores,to consider individual and community welfare in their day- to- day decisions.Actions such as this by companies seizing the opportunity to do well by doing good reflects .

A)profit marketing
B)myopia
C)social responsibility
D)environmentalism
E)partnership management

Question 65

Sally purchased Brand X lotion.In comparing her perception of how the lotion made her skin feel and look to her expectations for Brand X lotion,Sally was measuring her level of _ .

A)customer equity
B)customer satisfaction
C)customer lifetime value
D)share of customer
E)demand

Question 66

Suzie Chan strengthens her company's connections by treating suppliers of raw materials,vendors,and distributors as partners in delivering customer value.What type of management is she practicing?

A)inside partnering
B)outside partnering
C)customer development
D)supply chain
E)marketing

Question 67

You are an assistant marketing director for a firm in a market with many low- margin customers.What type of relationship would be most profitable for you to develop with these customers?

A)club programs
B)basic partnerships
C)basic relationships
D)full partnerships
E)selective relationships

Question 68

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 bluff overlooking the Maine coast,Seagull Terrace had attracted thousands of visits during the summer months,but then faced a tremendous downturn in business during the winter months."But,given the industry 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,then,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 delicious entrees,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 get- aways throughout winter."
Renovations of the guest rooms at the Seagull Terrace and plans to add an indoor pool area are examples of the _ concept.

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

Question 69

The product concept says that a company should do which of the following?

A)make promoting products the top priority
B)focus on making continuous product improvements
C)market only those products with high customer appeal
D)improve marketing of its best products
E)focus on the target market and make products that meet those customers' demands

Question 70

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)production
B)marketing
C)promotion
D)product
E)customer

Question 71

Kao Corp. ,which makes Ban deodorant,invited teenage girls to make an ad that would encourage other girls to buy the product.This program is an example of .

A)the selling orientation
B)the production concept
C)partner relationship management
D)societal marketing
E)consumer- generated content

Question 72

A potentially highly profitable,short- term customer is a .

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

Question 73

Customer- perceived value is determined by a customer's of the benefits and costs of a market offering relative to those of competing offers.

A)personal assessment
B)objective evaluation
C)emotional understanding
D)rational expectations
E)accurate assessment

Question 74

An organic farmer has identified three distinct groups who might be interested in his products: vegetarians,people who are concerned about chemicals in their foods,and people who consider themselves innovators and trendsetters.These three groups are examples of .

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

Question 75

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

Question 76

Which of the following best explains why consumers have greater power and control in today's marketplace?

A)Through new communication technologies,customers have more access to information and more methods of sharing their opinions with other customers.
B)More companies are implementing societal marketing and weighing long- term costs and benefits.
C)Customer- driven marketing creates products and services that meet customers' future needs.
D)The production concept and competition have lowered prices.
E)Implementation of the product concept has resulted in continually improving products.

Question 77

Jolene's firm markets preplanning services for a mortician.She finds that most of her target market wants to avoid discussing their future funeral needs,and she must somehow first get their attention.Jolene's firm most likely practices the .

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

Question 78

Cathy's Clothes is a small retail chain successfully selling women's clothing and accessories with a profitable focus on buyers who have relatively modest means.This is an example of _ .

A)target marketing
B)societal marketing
C)convenience
D)value packing
E)social marketing

Question 79

In today's world,marketing should be done by employees in an organization.

A)only management and marketing
B)all
C)only marketing
D)only sales and technology
E)only marketing,sales,and customer- support

Question 80

It is most accurate to say that customers buy from stores and firms that offer which of the following?

A)the most attractive company image
B)the highest customer- perceived value
C)the most concern for society's interests
D)the highest level of customer satisfaction
E)the highest value for the dollar