Deck 11: Marketing: Building Profitable Customer Connections

Question 1

In today's relationship era of marketing, the emphasis is on finding ways to quickly reach new customers as it proves to be more cost­effective than retaining current customers.

Answer 1

False

Question 2

The marketing concept holds that delivering unmatched value to customers is the only effective way to achieve long­term profitability.

Answer 2

True

Question 3

Customer relationship management is the ongoing process of acquiring, maintaining, and growing profitable relationships by delivering unmatched value.

Answer 3

True

Question 4

According to the American Marketing Association, marketing provides offerings that have value only for an organization's customers.

Question 5

Form utility satisfies wants by smoothly transferring ownership of goods and services from seller to buyer.

Question 6

Companies use event marketing when they sponsor sporting, cultural, or charitable events.

Question 7

Escribo Marketing LLC. holds annual blood donation camps and conducts other similar charitable events in educational institutions. This is an example of people marketing.

Question 8

Stray Rescue is a nonprofit organization. Since the organization is not profit driven, it has no need to focus on marketing.

Question 9

Walt owns a local chain of auto repair shops in Northern Virginia. He tries to go the extra mile in pleasing his customers with comfortable and attractive waiting rooms, friendly service, and an exceptional warranty on all repair work. Walt's approach is consistent with the marketing concept.

Question 10

Siliconia Bank locates its ATMs in large grocery stores to provide customers with easy access to banking services. This scenario exemplifies the use of form utility.

Question 11

Marketers who actively gather data and pursue a connection with customers who initiate contact are pursuing limited relationships.

Question 12

Ownership utility satisfies wants by providing goods and services at a convenient place for customers.

Question 13

Businesses use customer relationship management (CRM) techniques to deliver value to customers while promoting customer loyalty.

Question 14

In the selling era, consumers didn't have the overwhelming number of choices that are available now. Hence, most products were purchased as soon as they were produced and distributed to consumers.

Question 15

Marketing is a set of processes for delivering and exchanging offerings that have value for customers, clients, partners, and society at large.

Question 16

Utility is the ability of goods and services to satisfy consumer "wants."

Question 17

People marketing involves drawing people to a particular place.

Question 18

Ideas such as "Don't drink and drive" and "Recycle" are examples of form marketing.

Question 19

The marketing concept was a business philosophy that arose in the era of mass production when it became necessary for firms to use "hard sell" techniques to convince customers to buy products that they didn't really want.

Question 20

The production era of marketing focused on finding ways to stimulate more demand for a company's output.

Question 21

When it comes to creating customer satisfaction, perceived value is just as important as actual value.

Question 22

Flip Floppy, a shoe­manufacturing company, created a marketing initiative in several countries called "free run" to increase the market for sneakers among adolescents. The company's marketing approach paid off with sales in the first half of 2013 growing nearly 20 percent. The "free run" marketing approach is an example of the consumer market segmentation known as demographic segmentation.

Question 23

Deadly Nightmare, a heavy metal band, is about to release its first music CD. It is important that Deadly Nightmare determine its target market in order to successfully distribute its music. The band knows adolescent urban males make up the largest portion of the heavy metal music market. Using this information to develop its target market is known as demographic segmentation.

Question 24

A business offers value when customers judge that its products deliver a better relationship between benefits and costs than its competitors' products.

Question 25

One benefit of achieving consumer loyalty is that consumers may be willing to forgive a company's mistakes.

Question 26

The process of dividing an overall market into groups of customers who are similar to each other but different from everyone else is known as market aggregation.

Question 27

XLent Computers has one line of computers designed to appeal to hard­core gamers, another line to appeal to people who like to work with video editing, and yet another designed for people who simply like to browse, chat, and e­ mail their friends. This attempt to separate the market according to interests and hobbies suggests that XLent is relying heavily on demographic segmentation.

Question 28

Overpromising is an effective way to generate a large base of highly satisfied customers, because it often results in consumers getting more from a product than they were led to expect.

Question 29

Customer loyalty is the payoff for delivering value and generating customer satisfaction.

Question 30

The first step in developing a marketing plan is to identify the individuals most likely to buy your products.

Question 31

Geographic segmentation involves dividing the market based on where consumers live.

Question 32

Andrew has spent a lot of time gathering information about his top two clients and has decided to have them participate in his latest product development project. Andrew is trying to establish a full partnership with these clients.

Question 33

Psychographic segmentation refers to dividing the market based on how people behave toward a product.

Question 34

Value is based on a customer's perception that a product has a better relationship between the cost and the benefits than its competitors.

Question 35

Target markets refer to small groups formed by dividing a market based on attitudes, lifestyles, and values exclusively.

Question 36

Although both B2C and B2B marketers segment their markets, the difference between these two approaches lies in how the buyers will use the products.

Question 37

Business marketers only direct their efforts to people who purchase their products for personal use.

Question 38

A business segments a market in order to understand the similarities and differences in consumers' needs.

Question 39

Demographic market segmentation is based on measurable characteristics of potential customers, such as age, education, income, ethnicity, and gender.

Question 40

Many firms develop a formal marketing plan to identify their target audience and the best method to reach that audience.

Question 41

Consumer behavior specifically refers to how people act when they buy products for personal consumption.

Question 42

Attitudes are a person's lasting evaluations of objects or ideas.

Question 43

Ricardo recently spent a lot of money on the purchase of a new sports car. He thought he would really enjoy it, but soon after the purchase, he began to question whether it was a smart move. Ricardo's doubts are an example of cognitive dissonance.

Question 44

In B2B marketing, the most common strategies for segmenting a market are based on geography, customer characteristics, and product­use.

Question 45

To avoid ambushes and to uncover opportunities, a marketer must continuously monitor how only the dominant competitors handle each element of their marketing mix.

Question 46

Motivation and attitudes are major elements of the cultural influences on consumer decision making.

Question 47

Laws and regulations affecting marketing practices are a major part of the social/cultural marketing environment.

Question 48

Cultural, social, personal, and psychological factors influence a consumer's purchasing decisions.

Question 49

A firm's marketing mix refers to the array of different types of products it has developed to attract different types of customers.

Question 50

Cognitive dissonance is the part of postpurchase behavior that occurs when buyers have second thoughts after purchasing a product and begin to worry that they made a bad decision.

Question 51

Anticipating and responding to social and cultural trends is not important to the entertainment, fashion or technology industries because they change so rapidly.

Question 52

How much money you earn and what you do for a living are major determinants of your social class.

Question 53

Environmental scanning is the process of segmenting the market into individual responses to various products. This includes the benefits consumers seek from products and how consumers use products.

Question 54

The consumer decision­making process involves need recognition, the search for information, evaluation of alternatives, the purchase decision, and postpurchase behavior.

Question 55

Culture refers to the values, attitudes, and customs shared by members of a society.

Question 56

A person's social class can have an impact on purchasing behavior.

Question 57

Strategies about product, price, promotion, and distribution are all included in a firm's marketing mix.

Question 58

The product strategy a firm develops would include not only the physical product or specific service the firm offers but also its brand name, packaging, and customer service.

Question 59

Marina has opened a cupcake business and will be selling her cupcakes for personal consumption and to other businesses. Marina will only need to develop one marketing plan since consumers and businesses behave in the same manner when purchasing products or services.

Question 60

Strategies about the best way to incorporate personal selling, public relations, and word­of­mouth into the marketing of a product are part of the distribution strategy component of a firm's marketing mix.

Question 61

Market research involves gathering, interpreting, and applying information to uncover opportunities and challenges for business.

Question 62

The similarity between observation and survey categories of primary research is that they both involve a direct interaction with the research subject.

Question 63

Developing specific programs to help customers validate their purchase choices is one way marketers attempt to avoid cognitive dissonance.

Question 64

Secondary data is existing data that marketers gather about purchasing behavior.

Question 65

Businesses only use market research when promoting business­to­business products and services.

Question 66

Online questionnaires are an example of observation research.

Question 67

Primary data is new data gathered and compiled by marketers.

Question 68

Primary data is the first type of data that marketers obtain. They turn to secondary data only if the primary data alone is not sufficient.

Question 69

Business buyers rarely have purchasing training.

Question 70

The key advantage of survey research is that the researcher can secure information about what people are thinking and feeling, beyond what he or she can observe.

Question 71

An advantage of primary data is that it can be customized to meet a marketer's needs.

Question 72

Survey research involves an interaction between the researcher and the research subjects.

Question 73

Marketing research is used to monitor and predict customer behavior.

Question 74

Observation research and survey research are the two broad categories of primary research.

Question 75

Consumers are often likely to go through all steps of the purchase decision process when they are buying goods for which the financial or social implications are significant.

Question 76

Observation research involves talking to the subjects being watched.

Question 77

Ellie wants to conduct market research to uncover the attitudes and motivations that shape consumer choices. The best way to obtain this information would be to use observation research to obtain primary data.

Question 78

Social responsibility has become a marketing goal for companies in response to consumer demands for broader community support.

Question 79

An advantage of survey research is that it almost always yields highly accurate information because it is based on direct answers to specific questions.

Question 80

A major disadvantage of primary data is that it is usually outdated even before a marketer receives it.