Deck 1: Marketing: Creating and Capturing Customer Value

Question 1

________ refers to sellers that pay more attention to their own products than to the benefits and experiences produced by these products.
Selling myopia
Marketing management
Value proposition
Marketing myopia
The product concept

Answer 1

Marketing myopia

Question 2

The art and science of choosing target markets and building profitable relationships with them is called ________.
marketing management
positioning
segmentation
selling
societal marketing

Answer 2

marketing management

Question 3

Which of the following is the most likely result of a marketing strategy that attempts to serve all customers?
All customers will be delighted.
Customer-perceived value will be increased.
Customer evangelists will become unpaid salespersons for the service or product.
Few customers will be satisfied.
The company will likely need to follow up with a demarketing campaign.

Answer 3

Few customers will be satisfied.

Question 4

According to the simple five-step model of the marketing process, a company needs to ________ before designing a customer-driven marketing strategy.
determine how to deliver superior value
build profitable relationships with customers
use customer relationship management to create full partnerships with key customers
understand the marketplace and customer needs and wants
construct key components of a marketing program

Question 5

________ is the set of actual and potential buyers of a product.
A market
An audience
A group
A segment
An exchange

Question 6

________ are human needs as shaped by individual personality and culture.
Deprivations
Wants
Demands
Values
Exchanges

Question 7

Which of the following is most essential to any definition of marketing?
demand management
the production concept
customer relationships
making a sale
making a profit

Question 8

In addition to attracting new customers and creating transactions, the goal of marketing is to ________ customers and grow the company's business.
encourage
entertain
retain
recognize
educate

Question 9

Which of the following best encompasses market offerings?
products
people, places, and ideas
products and information
products and experiences
persons, places, organizations, information, and ideas

Question 10

Dollarama stores focus on serving buyers who have relatively modest means.This is an example of ________.
convenience
value pricing
market segmentation
target marketing
value packing

Question 11

________ is the act of obtaining a desired object from someone by offering something in return.
A value proposition
Exchange
Bribery
Value
Donation

Question 12

When marketers set low expectations for a market offering, they are most likely to run the risk of which of the following?
disappointing loyal buyers
decreasing buyers satisfaction
failing to attract enough buyers
failing to understand their buyers' needs
incorrectly identifying a target market

Question 13

Selecting which segments of a population of customers to serve is called ________.
market segmentation
positioning
customization
target marketing
choosing a value proposition

Question 14

________ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others.
Selling
Advertising
Bartering
Marketing
Negotiating

Question 15

According to management guru Peter Drucker, "The aim of marketing is to ________."
create customer demands
identify customer demands
make selling unnecessary
set realistic customer expectations
sell products

Question 16

The ________ steps of the five-step marketing process are about understanding customers, creating customer value, and building strong customer relationships.
first two
first three
first four
last three
last four

Question 17

Which of the following is an accurate description of modern marketing today?
Marketing is the creation of products for customers.
Marketing is managing profitable customer relationships.
Selling and advertising are synonymous with marketing.
Marketing involves satisfying producers' needs first.
Marketing is used by for-profit organizations only.

Question 18

When it comes to communicating with customers, marketers have traditionally asked the question, "How can we reach our customers?" Because of new interactive media, effective marketers now ask:
"How can we apply the production concept?"
"How can we reach our customers and how should they reach us?"
"How can we apply the selling concept online?"
"How can we apply the selling concept using social media?"
"How can we apply the product concept online?"

Question 19

When backed by buying power, wants become ________.
social needs
demands
physical needs
self-esteem needs
exchanges

Question 20

Consumer research, product development, communication, distribution, pricing, and service are all most accurately described as core ________ activities.
exchange
marketing
management
production
customer relationship management

Question 21

The ________ concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do.
product
production
selling
equity
marketing

Question 22

"Build a better mousetrap and the world will beat a path to your door" reflects the ________ concept.
production
marketing
selling
product
target marketing

Question 23

The product concept says that a company should ________.
improve marketing of its best products
market only those products with high customer appeal
focus on the target market and make products that meet those customers' demands
devote its energy to making continuous product improvements
make promoting products the top priority

Question 24

Which of the following reflects the marketing concept philosophy?
"We don't have a marketing department, we have a customer department."
"We're in the business of making and selling superior products."
"We build them so you can buy them."
"When it's profits versus customers' needs, profits will always win out."
"You won't find a better deal anywhere."

Question 25

________ is the set of benefits a company promises to deliver to its consumers to satisfy their needs.
A money-back guarantee
Low pricing
Good customer service
A value proposition
An attribute

Question 26

When customers don't know what they want or don't even know what's possible, the most effective strategy is ________ marketing.
customer-driven
customer-driving
societal
production
product

Question 27

Customer-driven marketing is most likely to work well when ________ and when customers ________.
a clear need exists; are difficult to identify
customers do not know what they want; have limited budgets
there are few competitors; are concerned about their long-run welfare
a clear need exists; know what they want
a want exists; cannot afford it

Question 28

An effective value proposition answers the question _______________.
"Why should I buy your brand rather than a competitor's?"
"How does your brand benefit me and society?"
"What are the costs and benefits of your brand?"
"What kind of experience will I have with products and services associated with this brand?"
"What are the benefits of being a loyal consumer of your brand?"

Question 29

Which of the following consumer products would likely be marketed using the selling concept?
laundry detergent
funeral services
chocolate bars
hair stylist services
computer tablets

Question 30

The set of marketing tools a firm uses to implement its marketing strategy is called the ________.
promotion mix
product mix
marketing mix
TQM
marketing effort

Question 31

If this is the only marketing management concept adopted, manufacturers can develop to marketing myopia?
customer-driven marketing
customer-driving marketing
societal marketing
selling
product

Question 32

The societal marketing concept seeks to establish a balance between consumer short-run wants and consumer ________.
short-run costs and profits
short-run ethics
long-run welfare
immediate health
value propositions

Question 33

The ________ concept calls for aggressive selling and promotion effort.
marketing
production
product
selling
societal marketing

Question 34

The authors of the text would argue that __________ is the most fundamental concept of modern marketing.
customer relationship management
social media
broadcast advertising
properly trained sales people
low prices

Question 35

According to the authors of your text, the ________ concept is a "sense and respond" philosophy rather than a "make and sell" philosophy.
product
production
marketing
retailing
societal marketing

Question 36

Which of the following marketing management concepts is most closely aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer high quality, performance, and innovative features?
product
production
customer
marketing
promotion

Question 37

The three areas of consideration that should be balanced in the societal marketing concept are consumer wants, society's interests, and ________.
human welfare
want satisfaction
company profits
short-run wants
long-term needs

Question 38

Building and maintaining profitable value-laden relationships with customers of a company is called ________.
customer lifetime value
customer perceived value
customer relationship management
database marketing
societal marketing

Question 39

Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain?
production concept
product concept
selling concept
marketing concept
societal marketing concept

Question 40

The ________ concept holds that firms must strive to deliver value to customers in a way that maintains or improves both the consumer's and society's well being.
marketing
selling
product
societal marketing
equity

Question 41

Stew Leonard, owner/operator of supermarkets, 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 he or she remains in the area.This is an illustration of ________.
share of customer
market share
profitability
customer lifetime value
market share maintenance

Question 42

When an airline goes after a "share of travel" from its customers, it is attempting to increase ________.
its value proposition
share of customer
target markets
customer variety
customer ownership

Question 43

Which of the following best explains why consumers have greater power and control in today's marketplace?
The production concept and competition have lowered prices.
Implementation of the product concept has resulted in continually improving products.
Customer-driving marketing creates products and services that meet customers' future needs.
More companies are implementing societal marketing and weighing long-run costs and benefits.
Through new communication technologies, customers have more access to information and more methods of sharing their opinions with other customers.

Question 44

The final step in the marketing process is ________.
capturing value from customers
creating customer loyalty
creating customer lifetime value
understanding the marketplace
designing a customer-driven marketing strategy

Question 45

FedEx offers its customers fast and reliable package delivery.When FedEx customers weigh these aforementioned benefits against the monetary and psychic costs of using the service, they are acting upon ________.
loyalty
relationship marketing
customer-perceived value
social relationships
a societal marketing campaign

Question 46

Frequent flyer programs offered by airlines are an example of a ________.
frequency marketing program
basic customer relationship
club marketing program
consumer-generated marketing program
structural benefit provided for top customers

Question 47

Through ________, many companies today are strengthening their connections to all partners, from providers of raw materials and components to final buyers who purchase final products.
supply chain management
direct marketing
partnership relationship marketing
customized marketing
deviated marketing

Question 48

Which of the following strategies would a company most likely use to increase customer satisfaction?
decreasing variety of services offered
lengthening the supply chain
lowering prices or increasing its services
"firing" unprofitable customers
limiting experiences with a brand

Question 49

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?
satisfied customers
customer evangelists
butterflies
full partners
social customers

Question 50

________ is the total combined customer lifetime values of all the company's current and potential customers.
Share of customer
Customer lifetime value
Customer equity
Profitability
Share of market

Question 51

According to the authors, a highly profitable, short-term customer is a ________.
true friend
butterfly
stranger
barnacle
true believer

Question 52

The marketing world is embracing ________ because consumers can wield greater power and control in the marketplace through communication technologies.
partner relationship management
supply chain management
customer-managed relationships
market segmentation
target marketing

Question 53

The authors of your text classify customers into four relationship groups, according to the customers' profitability and projected loyalty.________ are the customers with the highest profit potential and strong loyalty.
Barnacles
Strangers
Butterflies
True friends
Big fish

Question 54

The ultimate aim of customer relationship management is to produce ________.
customer delight
customer satisfaction
steady sales volume
a reliable database
sustainable business

Question 55

Which of the following is determined by a customer's personal evaluation of the benefits and costs of a market offering relative to those of competing offers?
customer-perceived value
customer satisfaction
customer-perceived performance
customer relationship management
market segmentation

Question 56

Phil just started a new habit of eating once a week at Mr.Sub restaurants.On average, he spends about $10 per meal.Phil says, "I'm 20 years old and I plan on eating at Mr.Sub until I am 50 years old." Phil's lifetime value at Mr.Sub could be best estimated by which calculation?
$10 x 50
$10 x 20
$10 x 52 x 50
$10 x 52 x 30
$10 x 52 x 20

Question 57

Which of the following is an example of consumer-generated marketing?
Toyota's presence in online communities
Nike's Nike Plus running Web site
H.J.Heinz's use of brand-related consumer videos posted on video-sharing websites
Neiman Marcus's InCircle Rewards program for its best customers
The Lexus Covenant aimed at creating customer delight

Question 58

It is most accurate to say that a customer will buy from the company that offers the highest ________.
value for the dollar
customer-perceived value
level of customer satisfaction
company image
concern for society's interests

Question 59

Amazon.com leverages relationships with its 35 million customers by offering them music, videos, gifts, toys, consumer electronics, and office products, among other product items.Based on previous purchase history, the company recommends related CDs, books, or videos that might be of interest.This helps Amazon.com capture a greater ________.
value proposition
customer ownership
share of customer
social network
customer base

Question 60

When the economy tightens, customer loyalty and customer retention become ________ for marketers.
even more important
less important
impossible
long-term but not short-term goals
short-term but not long-term goals

Question 61

The first four steps of the marketing process focus on ________.
understanding the market
delivering customer service
creating value for customers
understanding customer demands and needs
capturing value from customers

Question 62

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.
shared value
customer-driving
societal
donor
none of the above

Question 63

Which of the following has contributed to the deeper, more interactive nature of today's customer relationships?
digital technologies
television advertising
newspaper ads
radio advertising
outdoor ads

Question 64

A church targeting different demographic groups to increase attendance is an example of ________.
for-profit marketing
not-for-profit marketing
mindless marketing
ethics in marketing
societal marketing

Question 65

As part of the rapid globalization of today's economy, companies are selling more locally produced goods in international markets and ________.
taking a local view of their industry
purchasing more supplies abroad
reducing competition within their industry
downplaying concerns for social responsibility
competing solely in traditional marketplaces

Question 66

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 ________.
need
necessity
demand
satisfier
transaction

Question 67

Which of the following is currently the fastest growing form of marketing?
consumer-generated marketing
online marketing
mass media marketing
promotional sampling
word-of-mouth marketing

Question 68

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 ________.
product concept
production concept
selling concept
marketing concept
societal marketing concept

Question 69

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-food restaurants overlook the ________ philosophy.
marketing concept
product concept
production concept
societal marketing concept
selling concept

Question 70

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 ________.
product concept
marketing concept
societal marketing concept
production concept
selling concept

Question 71

It is most accurate to say that today almost every company, small and large, is affected in some way by which of the following?
the societal marketing concept
customer relationship management
global competition
not-for-profit marketing
customer-generated marketing

Question 72

Which of the following trends is not part of the changing marketing landscape?
growing not-for-profit marketing
a surge in globalization
conspicuous consumption
consumer desire for more sustainable marketing practices
growth in digital/online marketing

Question 73

Which of the following phrases reflects the marketing concept?
The supplier is king.
Marketing should be viewed as hunting and not gardening.
This is what I make, won't you please buy it?
This is what I want, won't you please make it?
none of the above

Question 74

The Niketown running club that organizes twice weekly evening runs for Nike customers is an example of a ________.
frequency marketing program
basic customer relationship
club marketing program
consumer-generated marketing program
structural benefit provided for top customers

Question 75

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 deliver superior customer value and satisfaction.Your manager is concerned with which one of the following?
database management
website hits
the societal marketing concept
not-for-profit marketing
customer relationship management

Question 76

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 ________.
virtual marketing
social responsibility
profit marketing
marketing
myopia

Question 77

The social-responsibility and environmental movements are expected to ________ in the future.
demand more from companies
demand less from companies
move away from sustainable marketing
move toward partner relationship management
move away from using social networking

Question 78

Jolene's firm believes that consumers will not buy enough of its products unless the firm undertakes a large-scale selling and promotion effort.Jolene's firm is practicing the ________.
production concept
marketing concept
selling concept
relationship concept
social advertising campaign

Question 79

Which of the following statements is not true about social media as a marketing tool?
Social media is a fast way to collect consumer research.
Social media is a relatively inexpensive way to collect market research.
Social media can be a highly interactive tool to engage with customers.
Social media usage is declining.
Social media can be employed by for-profits firms, government organizations, and non-profit organizations.

Question 80

As the economy emerges from the recent recession and heads into the post-recession era, one dominant consumer trend that has taken shape is _________.
ultra-frugality
sensible consumption
purchase reticence
"keeping up with the Jones'" consumption
conspicuous consumption