Principles of Marketing questions

Question # 00002740 Posted By: neil2103 Updated on: 10/25/2013 01:44 PM Due on: 10/29/2013
Subject Marketing Topic Marketing Tutorials:
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1)All of the following are accurate descriptions of modern marketing EXCEPT which one? A) Marketing is the creation of value for customers.

B) Marketing is managing profitable customer relationships. C) Selling and advertising are synonymous with marketing. D) Marketing involves satisfying customers' needs.

E) Marketing is used by for-profit and not-for-profit organizations.

2)According to management guru Peter Drucker, "The aim of marketing is to ________." A) create customer value

B) identify customer demands C) make selling unnecessary

D) set realistic customer expectations E) sell products

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





E)Negotiating 1

4) Which steps of the five-step marketing process are about understanding customers, creating customer value, and building strong customer relationships?

A)the first two only

B)the first three only

C)the first four only

D)the last three only

E)the last four only

5) According to the simple five-step model of the marketing process, a company needs to

________ before designing a customer-driven marketing strategy.

A)determine how to deliver superior value

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 key components of a marketing program

6) ________ are human needs as shaped by individual personality and culture.






7) When backed by buying power, wants become ________.

A)social needs


C)physical needs

D)self-esteem needs


8) 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)demand satisfaction

D)need proposition

E)evoked set

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

A)selling myopia

B)marketing management

C)value proposition

D)marketing myopia

E)the product concept

Answer: D

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


A)disappointing loyal customers

B)decreasing customer satisfaction

C)failing to attract enough customers

D)failing to understand their customers' needs

E)incorrectly identifying a target market

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




D)Value creation


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






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





E)customer relationship management

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

A)marketing management





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

A)market segmentation



D)target marketing

E)managing the marketing effort

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

A)a money-back guarantee

B)low pricing

C)customer service

D)a value proposition

E)an attribute

17) Which customer question is answered by a company's value proposition?

A)"Why should I buy your brand rather than a competitor's?"

B)"How does your brand benefit society?"

C)"What are the costs and benefits of your brand?"

D)"What kind of experience will I have with products and services associated with this brand?"

E)"What are the benefits of being a loyal consumer of your brand?"

18) 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

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

A)customer-driven marketing

B)customer-driving marketing

C)societal marketing



20) According to the production concept, consumers will favor products that are ________ and


A)satisfying; quality focused

B)advertised; affordable

C)in high demand; hard to find

D)segmented; convenient

E)available; affordable

21) 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.






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

A)improve marketing of its 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)make promoting products the top priority

23) "Build a better mousetrap and the world will beat a path to your door" reflects the ________






E)target marketing

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

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

E) societal marketing concept

25)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) product concept B) production concept C) selling concept

D) marketing concept

E) societal marketing concept Answer: D

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

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

E) societal marketing

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





E)customer service

28)Herb Kelleher of Southwest Airlines used the marketing concept in his successful organization. Having a customer department rather than a marketing department, as suggested by Kelleher, is an example of a(n) ________ perspective.

A) outside-inB) external C) inside-out

D) continuous improvement E) traditional

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

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

30)Which of the following reflects the marketing concept philosophy?

A)"We don't have a marketing department; we have a customer department."

B)"We're in the business of making and selling superior products."

C)"We build them so you can buy them."

D)"When it's profits versus customers' needs, profits will always win out."

E)"You won't find a better deal anywhere."

31) Customer-driven marketing usually works well when ________ and when customers


A)a clear need exists; are difficult to identify

B)customers know what they want; are loyal to the brand

C)a firm can deliver the goods desired; are thoroughly researched

D)a clear need exists; know what they want

E)a need exists; don't know what they want

32)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 ________


A) customer-drivenB) customer-drivingC) relationship

D) societal E) social

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

A) customer-drivenB) customer-drivingC) societal

D) production E) product

34)The societal marketing concept seeks to establish a balance between consumer short-runwants and consumer ________.

A) short-run costs and profits B) short-run ethics

C) long-run welfare D) immediate health E) value propositions

35)Which marketing orientation holds that firms must strive to deliver value to customers in a way that maintains or improves the consumer's and society's well-being?

A) marketing concept B) selling concept C) product concept

D) societal marketing concept E) equity concept

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

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

37)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) TQM

E) marketing effort

38)Building, keeping, and growing profitable relationships by delivering customer value and satisfaction is called ________.

A) customer lifetime value B) customer perceived value

C) customer relationship management D) database marketing

E) societal marketing

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

A)customer relationship management

B)e-mail advertising

C)mass marketing

D)properly trained sales people

E)low prices

40) You have just taken a new position in an organization and you're learning about the job functions of your new colleagues. You observe that your marketing manager is heavily involved in the process of building and maintaining profitable customer relationships. Your marketing manager frequently speaks about the need to acquire, keep, and grow customers. Your manager is concerned with which one of the following?

A)customer divestment

B)customer-managed relationships

C)the societal marketing concept

D)partner relationship management

E)customer relationship management Answer: E

41)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) rational expectations C) accurate assessment D) objective evaluation

E) emotional understanding

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

A) the highest value for the dollar

B) the highest customer-perceived value C) the highest level of customer satisfaction D) the most attractive company image

E) the most concern for society's interests

43)The key to delivering customer satisfaction is to match ________ with ________.

A)company performance; the competition's performance

B)company performance; competitive prices

C)relationship building; performance tools

D)company performance; unique products

E)customer expectations; product performance

44)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) barnacles

B) customer evangelists C) butterflies

D) full partners

E) social customers

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

A) decreasing the variety of offered services B) divesting

C) lowering prices

D) "firing" unprofitable customers

E) limiting customer experiences with a brand Answer: C

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

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

E) selective relationships

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


A) frequency marketing program B) basic customer relationship C) club marketing program

D) partner relationship management technique E) structural benefit

48)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) club marketing

B) frequency marketing C) mass marketing

D) customer satisfaction E) market segmentation

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

A) e-mail B) Web sites

C) online social networks D) traditional advertising E) video sharing

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

A) The production concept and competition have lowered prices.

B) Implementation of the product concept has resulted in continually improving products.

C) Customer-driven marketing creates products and services that meet customers' future needs. D) More companies are implementing societal marketing and weighing long-term costs and benefits.

E) Through new communication technologies, customers have more access to information and more methods of sharing their opinions with other customers.

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

A) partner relationship management B) supply chain management

C) customer-managed relationships D) market segmentation

E) target marketing

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

than by ________.

A) interruption; involvement B) attraction; intrusion

C) socialization; information D) producing; selling

E) inspiration; competition

53)Which of the following is an example of consumer-generated marketing? A) Toyota's presence in online communities

B) Nike's Nike Plus running Web site

C) MasterCard's use of "Priceless" commercials shot by customers D) Neiman Marcus's InCircle Rewards program for its best customers E) The Lexus Covenant aimed at creating customer delight

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

A) partners inside and outside of the company B) competitors

C) consumers

D) interest groups

E) partners outside of the company only

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

A)only marketing

B)only marketing, sales, and customer-support

C)only sales and technology

D)only management and marketing


56) Through ________, many companies today are strengthening their connections to all partners, from providers of raw materials to components to final products that are delivered to final buyers.

A)supply chain management

B)direct marketing

C)partnership relationship marketing

D)customized marketing

E)equity marketing

57)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) outside partnering B) inside partnering C) marketing

D) supply chain

E) customer development Answer: D

58)The final step in the marketing process is ________.

A)capturing value from customers

B)creating customer loyalty

C)creating customer lifetime value

D)understanding the marketplace

E)designing a customer-driven marketing strategy

59) 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)share of customer

B)market share

C)partner relationship management

D)customer lifetime value

E)market share maintenance

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


A) partner equity B) share of customer C) profit margins

D) customer-managed relationships E) customer ownership

61)Beyond simply retaining good customers, marketers want to constantly increase their "share of customer." What does this mean in marketing terms?

A) Marketers want to increase their market share.

B) Marketers want to increase the share they get of the customer's purchasing in their product categories.

C) Marketers want to increase the profit margin with this target market.

D) Marketers want to continuously increase their customers' levels of satisfaction. E) Marketers want to turn satisfied customers into delighted customers.

62)________ is one of the best ways to increase share of customer.

A)Targeting new customers

B)Using bait and switch



E)Partnership marketing

63) leverages relationships with its 35 million customers by offering them music, videos, gifts, toys, consumer electronics, and office products, among other items. Based on previous purchase history, the company recommends related CDs, books, videos, or other products that might interest a customer. This most directly helps capture a greater


A) partner value

B) share of customer C) profit margin

D) social network E) customer loyalty 64)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) customer equity

D) profitability E) share of market

65)The ultimate aim of customer relationship management is to produce ________.

A)customer equity

B)market share

C)sales volume

D)a reliable database

E)higher profit margins

66)A potentially highly profitable, short-term customer is a ________. A) true friend

B) butterfly C) stranger D) barnacle

E) true believer

67)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) barnacles

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

68)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) butterflies B) true friends C) strangers D) barnacles

E) short-term customers

69)Since the beginning of the Great Recession, marketers have been emphasizing the ________

of their products more than ever. A) image

B) value

C) personality D) safety

E) uniqueness

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

A) spending more on luxury items

B) discontinuing any spending on luxury items

C) spending less and choosing products more carefully D) spending less but choosing products less carefully E) saving more but spending more on credit cards

71)Which of the following is a true statement about the Great Recession that began in 2008? A) The economic crisis caused a short-term change in consumers' spending habits.

B) The average home value increased after the stock market plunge.

C) Decreasing energy prices provided consumers with unexpected savings. D) Consumers brought spending more in line with their incomes.

E) Consumers quickly regained confidence in the economy.

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

A)Companies are cautiously using the Internet to build closer relationships with customers and marketing partners alike.

B)After the dot-com meltdown of 2000, fewer consumers are buying products and services online.

C)The Internet makes it easy for consumers to view, interact with, and create marketing content.

D)Consumer e-commerce looks promising, but business-to-business e-commerce is declining.

E)Web 2.0 involves a less balanced approach to online marketing than the original dot-comboom did.

73)Which version of the Web has introduced small, fast, and customizable applications that can be accessed through multifunction mobile devices?

A) Web 1.0 B) Web 2.0 C) Web 3.0 D) Web 4.0 E) Web 5.0

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

A)consumer-generated marketing

B)online marketing

C)mass media marketing

D)societal marketing

E)word-of-mouth marketing

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

A) taking a local view of their industry B) purchasing more supplies abroad

C) reducing competition within their industry

D) downplaying concerns for social responsibility E) competing solely in traditional marketplaces

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

A)demand management

B)the production concept

C)customer relationships

D)making a sale

E)making a profit

77) 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) ________.






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



B)social marketing

C)societal marketing

D)target marketing

E)value packing

79) 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)marketing mixes

B)market segments

C)value propositions

D)mass markets

E)marketing intermediaries

80) 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)production concept

B)marketing concept

C)selling concept

D)social marketing concept

E)societal marketing concept

81) 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.





E)societal marketing

82)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) product

B) production C) selling

D) marketing

E) societal marketing

83)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-foodrestaurants overlook the ________ philosophy.

A) marketing concept B) product concept C) production concept

D) societal marketing concept E) selling concept

84)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) loyalty

B) relationship marketing C)customer-perceived value D) social relationships

E) a societal marketing campaign

85)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) share of customer B) customer satisfaction C) customer equity

D) demand

E) customer lifetime value

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

A) a frequency marketing program B) a basic customer relationship C) a club marketing program

D) a partner relationship

E) a structural benefit provided for top customers

87)Elisandra, a marketing manager at a regional chain restaurant, has decided to sponsor a contest calling for customers to create commercials for the restaurant. Winning entries will be posted on the organization's home page. Elisandra's plan is an example of ________.

A) consumer-generated marketing B) partner relationship management C) customer lifetime value

D) community development around a brand E) customer divestment

88)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) societal marketing

B) the production concept C) the selling orientation

D) partner relationship management E)consumer-generated content

89)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) partner relationship management B) enlisting customer evangelists C) attracting "butterflies"

D) converting "strangers"

E) capturing customer lifetime value

90)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) environmentalism B) social responsibility C) profit marketing

D) partnership management E) myopia

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


A) for-profit marketing

B) not-for-profit marketing C) societal marketing

D) customer evangelism E) caring capitalism

92)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) ethical

B) social marketing C) for-profit

D) consumer-generatedE) differentiated

93) 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)Customer evangelists will become unpaid salespersons for the service or product.

D)Not all customers will be satisfied.

E)The company will need to follow up with a service campaign.

94)Which of the following reflects the marketing concept? A) "The supplier is king."

B) "Marketing should be viewed as foraging and not gardening." C) "This is what I make; won't you please buy it?"

D) "This is what I want; won't you please make it?" E) "Customers need to be told where they want to go."

95)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 a superior quality and a perfect fit.

C) iRobot invites enthusiastic Roomba owners to develop and share their own programs and uses for the company's robotic vacuum.

D) 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. E) Toyota develops a marketing presence on social networks and other online communities.

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

A)more important

B)less important


D)long-term but not short-term goals

E)short-term but not long-term goals

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-roundcompetition, 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 promotionalgimmick-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 businesstravelers-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-awaysthroughout winter."

97) Which of the following groups is specifically part of Seagull Terrace's target market?

A)seasonal business travelers

B)young families


D)summer campers


98)Carol Veldt's use of "promotional gimmicks" is an example of the ________ concept. A) selling

B) marketing C) product D) production

E) societal marketing Answer: A

99)Renovations of the guest rooms at the Seagull Terrace and plans to add an indoor pool area are examples of the ________ concept.

A) selling B) marketing C) product

D) production

E) societal marketing

100)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) selling

D) marketing E) societal

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