Deck 1: Marketing: Creating Superior Customer Value

Question 1

Which of the following statements about an effective value proposition is/are correct?

A) It should differentiate a brand from its competitors.
B) It will need to be changed periodically.
C) It is likely to be copied by competitors.
D) It should answer the question, "Why should a customer buy your brand rather than competitors' brands?"
E) All of the above are correct.

Answer 1

E

Question 2

Contemporary marketing is best described as which of the following?

A) meeting customer needs
B) communicating through advertising and promotion
C) selling goods and services to the most profitable customer segments
D) delivering customer value and managing profitable customer relationships
E) none of the above

Answer 2

D

Question 3

The marketing mix, or the set of marketing tools that are used to implement the marketing strategy, are traditionally seen as consisting of 4 Ps. Which of the following is NOT one of the traditional 4 Ps?

A) Promotion
B) Product
C) Price
D) Production
E) Place

Answer 3

D

Question 4

Which of the following is an example of a product?

A) a carton of eggs
B) a beauty treatment
C) a seminar on study skills
D) a screenplay based on the life of Apple's Steve Jobs
E) all of the above

Question 5

Select the words that BEST complete the following sentence. Traditional marketing science and practice have focused on attracting new customers and making a sale. Today, however, the emphasis is moving beyond attracting new customers. Today companies are going all out to current customers and build lasting customer .

A) identify; brand meanings
B) locate; value
C) identify, retention
D) attract, value
E) retain; relationships

Question 6

The process of dividing the total potential market into segments or groups of customers is known as:

A) market analysis.
B) target marketing.
C) market segmentation.
D) market positioning.
E) market profiling.

Question 7

In difficult economic conditions, characterised by decreased discretionary spending, sellers are BEST advised to adopt which of the following strategies?

A) increase advertising expenditures
B) emphasise value
C) slash prices
D) engage in deep discounting
E) all of the above

Question 8

The potential market for a product or service consists of which of the following?

A) the total population of a defined geographic region
B) current customers and latent customers
C) current customers and potential customers
D) potential customers and lapsed customers
E) none of the above

Question 9

An Australian university is attempting to estimate the market size for its various undergraduate award programmes for the following academic year. Which of the following groups should it consider as being in the market for degree programmes?

A) international students who have completed the equivalent of Year 12
B) students currently studying at private colleges, including English language colleges or those undertaking certificate or diploma programmes
C) undergraduates currently studying at other Australian universities
D) domestic school leavers (i.e. students who have completed Year 12 or its equivalent)
E) all of the above

Question 10

When Frank buys his own house, he would like to have a home theatre system and a spa bath. He plans to save enough money in the next three years so that he can purchase his dream home with these features. Frank's desire for the home theatre and spa bath is an example of a(n):

A) wish list.
B) need.
C) exchange.
D) demand.
E) want.

Question 11

Satisfied consumers are more likely to:

A) engage in repeat purchasing.
B) become loyal customers.
C) make positive brand recommendations.
D) all of the above

Question 12

At the heart of any marketing programme is the firm's _, its tangible offering to the market.

A) value
B) strategy
C) product
D) people
E) brand

Question 13

De- marketing is best described as which of the following?

A) a practise whereby some organisations do not engage in any form of paid advertising
B) the practise of using marketing principles to temporarily or permanently reduce demand for a product or service
C) an organisation that does not engage in marketing activities
D) a personal philosophical position or ideology that rejects marketing and its practises
E) none of the above

Question 14

A market is defined as:

A) the set of actual buyers.
B) a demographic segment of the population.
C) the set of potential buyers.
D) a target group of consumers with similar purchasing habits.
E) the set of actual and potential buyers.

Question 15

A local council is currently engaged in an intensive promotional and educational programme designed to encourage the local community to use less water. The Council is engaged in which marketing activity?

A) behavioural economics
B) not- for- profit marketing
C) de- marketing
D) social marketing
E) none of the above

Question 16

Which of the following statements BEST describes the process of marketing management?

A) The art and science of choosing target markets and building profitable relationships with them.
B) It focuses solely on attaining an organisation's sales goals in an efficient manner.
C) It is primarily concerned with the systematic gathering, recording, and analysis of data about target markets.
D) It focuses mostly on monitoring the profitability of a company's products and services.
E) It is defined as the field that deals with planning and managing a business at the highest level of profitability.

Question 17

Anything that can be offered to a market for attention, acquisition, use or consumption is best described as a(n):

A) product or service.
B) exchange satisfying object.
C) desire.
D) need.
E) want.

Question 18

Vesna has just purchased a new iPhone. On the way home, Vesna is sitting on the train, looking at her purchase, investigating its functionality and thinking about how she will use it. She is also reflecting on the amount of time she spent travelling into town, shopping around, comparing prices and generally learning more about the product prior to purchase. Vesna is engaged in assessing:

A) customer sacrifices.
B) relationships.
C) lifetime value.
D) satisfaction.
E) customer value.

Question 19

Price- cutting, as a means of delivering superior value, rarely delivers long-term value. Which of the following is NOT one of the disadvantages normally associated with price- cutting?

A) Price- cuts are easily imitated by competitors.
B) Price- cuts are too difficult to implement.
C) Price- cuts in the wrong places can damage customer relationships.
D) Price- cuts may not be sustainable in the long term.
E) Price- cuts can erode brand image.

Question 20

Which of the following types of organisations is NOT likely to practise marketing?

A) government departments
B) educational institutions
C) not- for- profit organisations
D) all of the above
E) none of the above (i.e. A- C are likely to practise marketing)

Question 21

The act of obtaining a desired object from someone by offering something of value in return is BEST defined as:

A) barter.
B) selling.
C) bargaining.
D) exchange.
E) negotiating.

Question 22

The benefits that a customer derives from having access to or owning and using a product minus the costs of acquiring that product is BEST defined as:

A) reciprocity.
B) market price.
C) latent costs.
D) customer value.
E) perceived price.

Question 23

The set of current and potential buyers of a product or service is known as:

A) the target market.
B) value segments.
C) the latent market potential.
D) the market.
E) a market segment.

Question 24

Each of the following is true about the Internet's impact on the way business is conducted today, EXCEPT one. Identify the exception.

A) It can be used as a powerful sales channel.
B) It has facilitated personalised customer communications.
C) It has facilitated mass marketing, but not the sale of customised products.
D) It enables marketers to use social media to advertise their products.
E) It has empowered consumers with easy access to information.

Question 25

Craig Tomlin has just accepted his political party's nomination to stand as a candidate in the forthcoming election. In marketing terms, Craig Tomlin is:

A) an agent.
B) a symbolic representative.
C) a product.
D) a spokesperson.
E) none of the above

Question 26

Consumers who develop artificially high expectations about a brand are more likely to:

A) experience dissatisfaction.
B) make positive brand recommendations.
C) become brand ambassadors.
D) be delighted.
E) become loyal to the brand.

Question 27

Companies address needs by putting forth a , a set of benefits that they offer to customers to satisfy their needs.

A) brand
B) demand
C) deal
D) marketing plan
E) value proposition

Question 28

Select the word that BEST completes the following sentence. The concept of value is a two- way street. The company creates value for customers. In turn the company captures value from customers in the form of customers who buy, and continue to buy the company's brands.

A) profitable
B) loyal
C) lifetime
D) valuable
E) none of the above

Question 29

Select the word that BEST completes the following sentence. It has been estimated that it usually costs times as much to attract a new customer as it does to keep a current customer satisfied.

A) five
B) one hundred
C) twenty
D) three
E) ten

Question 30

Which of the following is NOT a core marketing activity?

A) manufacturing
B) product development
C) marketing communications
D) consumer research
E) distribution

Question 31

Which of the following elements would NOT normally be included in a typical marketing plan?

A) an opportunity and threat analysis
B) a social responsibility audit
C) an analysis of the current marketing situation
D) a detailed marketing strategy
E) a list of specific marketing objectives

Question 32

Marketers who set expectations at a very low level are likely to find that:

A) their customers will engage in an increased incidence of positive word- of- mouth recommendations.
B) they may attract price- conscious segments.
C) their customers will exhibit increased levels of dissatisfaction.
D) they may fail to attract customers.
E) they may attract many customers.

Question 33

A want supported by buying power is known as:

A) products and services.
B) desire.
C) human motivations.
D) demand.
E) manifestation of greed.

Question 34

Which of the following statements about the current economic environment is FALSE?

A) Consumers have reined in retail spending.
B) Consumers spend more of their disposable income on discretionary items.
C) Consumers are more value- conscious.
D) Consumers save more of their disposable income.
E) None of the above is false.

Question 35

When Volvo runs advertising claiming that its cars are the safest that money can buy, it is trying to:

A) enter a new market.
B) segment the market.
C) differentiate its product.
D) provide a service.
E) develop brand loyalty.

Question 36

Jane and Henry produce artworks for use in landscape design and home gardens. They are debating a description of the potential customers for their artwork. Jane and Henry are debating:

A) the value proposition.
B) market segmentation.
C) customer satisfaction.
D) relationship marketing.
E) the target market.

Question 37

The ACTUAL size of a market for a given product depends on which of the following?

A) the number of people who have resources and authority to engage in exchange
B) the number of people who exhibit a need for the product
C) the number of people who are willing to offer resources in exchange for what they want
D) all of the above

Question 38

Which of the following statements BEST describes customer satisfaction?

A) the benefits delivered by a product or service weighed against the costs or sacrifices made to acquire the product
B) a product or service's ability to meet a set of objective criteria, such as those specified by Australian Standards
C) the customer's conscious evaluation of a product or service feature, or of the product or service itself
D) a measure of the customer's delight with a product or service

Question 39

Select the phrase that BEST completes the following sentence. is now the fastest growing form of marketing.

A) Online marketing
B) Social marketing
C) Services marketing
D) Food marketing
E) Marketing of durables

Question 40

Which of the following is NOT one of the five steps in the model of creating customer value and building customer relationships?

A) design a customer- driven marketing strategy
B) understand the marketplace and customer needs and wants
C) identify the most profitable customers as the target market
D) build profitable relationships and create customer delight
E) construct an integrated marketing programme that delivers superior customer value

Question 41

Vesna has just purchased a new iPhone. After she arrives home, she quickly tests the product and its features, comparing her expectations about its functions with observations from her initial tests. Vesna also reflects on how much she expected to pay for the phone. Vesna is engaged in assessing:

A) customer value.
B) satisfaction.
C) lifetime value.
D) relationships.
E) customer sacrifices.

Question 42

Two central questions for marketing managers are (a) "What consumers will we serve?" and (b) "How can we best serve those consumers?"

Question 43

The set of marketing tools that transforms marketing strategy into action is known as the marketing mix.

Question 44

Identify and discuss the main actors and forces in a modern marketing system.

Question 45

are basic human requirements, while are the ways in which those requirements are satisfied.

A) Wants; needs
B) Demands; needs
C) Needs; demands
D) Needs; wants
E) Demands; wants

Question 46

Sellers who focus on goods or services rather than the benefits or experiences these products deliver are said to be suffering from:

A) marketing myopia.
B) marketing dyslexia.
C) marketing dyspepsia.
D) marketing hyperopia.
E) none of the above

Question 47

Marketing's primary concern is to attract new customers.

Question 48

Demands are wants for specific products backed by an ability to pay.

Question 49

A student friend has just finished what could only be described as a difficult semester in which he has regularly been absent from class due to part- time work commitments and social engagements. He failed to complete all the subject requirements including non- completion of a mid- semester test and non- completion of a compulsory oral class presentation. Not surprisingly, his final result is a failing grade. Now, your friend plans to throw himself on the mercy of the subject co- ordinator with the argument that he NEEDS to pass the unit of study so that he can return to his home country and take up a teaching position. Using concepts of needs, wants and customer value, explain to your friend, why his "needs" argument is unlikely to resonate with the subject
co- ordinator.

Question 50

While most marketers seek to satisfy existing wants, truly exceptional marketers create new needs.

Question 51

A short definition of marketing is "meeting needs profitably."

Question 52

Wants are basic human requirements, such as food and shelter.

Question 53

A customer who consciously evaluates a product or service feature is reflecting on his or her satisfaction.

Question 54

The abundance of product information available on the Internet has made it more difficult for consumers to compare product features and prices.

Question 55

The form taken by human needs, as they are shaped by culture and individual personality, is known as:

A) demand.
B) products and services.
C) human wants.
D) exchange.
E) human motivations.

Question 56

Phil Jones traded his car to a friend for a boat. In this transaction, no money was involved; therefore, it cannot be considered to constitute an exchange.

Question 57

A satisfied customer is more likely to make positive word- of- mouth recommendations to friends or relatives.

Question 58

The term "product" is correctly applied to tangible goods.

Question 59

Social marketing refers to which of the following?

A) a situation involving an organisation's existing customer giving positive recommendations to his or her relatives and friends
B) the practice of cultivating customer relationships via social networks such as Facebook and Twitter
C) the practice of using events and social gatherings to stimulate public relations and customer relationships
D) the application of commercial marketing technologies to the analysis, planning, execution, and evaluation of programmes designed to influence the voluntary behaviour of target audiences, especially as practised by not- for- profit organisations
E) none of the above

Question 60

The value of an entire stream of purchases that the customer would make over a lifetime of patronage is known as:

A) customer cash flow.
B) customer revenue expectancy.
C) customer lifetime value.
D) customer re- purchase propensity.
E) none of the above

Question 61

Discuss the marketer's argument for why an organisation should embrace the marketing concept.

Question 62

Define and describe the marketing management concept.

Question 63

The Internet has given modern companies a new set of capabilities. Among those capabilities is the ability to operate a new information channel. Describe how information can be used by the marketer in this new channel.

Question 64

Is non- profit marketing an oxymoron? Explain.

Question 65

Identify and discuss the major forces now changing the marketing landscape and challenging marketing strategy.

Question 66

"Marketing encourages materialism, over- consumption and contributes to all manner of social problems". Discuss.