Deck 1: Marketing Creating and Capturing Customer Value

Question 1

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

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

Answer 1

B

Question 2

When backed by buying power,wants become ________.

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

Answer 2

B

Question 3

________ 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.

A)Value reengineering
B)Human resource management
C)Financing
D)Marketing
E)Root cause analysis

Answer 3

D

Question 4

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

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

Question 5

A brand's ________ is the set of benefits or values it promises to deliver to consumers to satisfy their needs.

A)dominant affect
B)fringe benefit
C)cardinality
D)value proposition
E)fundamental benefit

Question 6

Selecting particular segments of a population of customers to serve is called ________.

A)value reengineering
B)brand synchronizing
C)mass customizing
D)target marketing
E)selective administering

Question 7

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 ________.

A)customer-driving marketing concept
B)marketing concept
C)societal marketing concept
D)production concept
E)selling concept

Question 8

The ________ concept 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)marketing
B)product
C)production
D)selling
E)societal marketing

Question 9

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

A)the customer-driven marketing concept
B)the customer-driving marketing concept
C)the societal marketing concept
D)the selling concept
E)the production concept

Question 10

________ refers to the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products.

A)Buyer's remorse
B)Out-of-home advertising
C)Caveat emptor
D)Marketing myopia
E)Winner's curse

Question 11

The production concept holds that ________.

A)consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort
B)a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests
C)consumers will favor products that are available and highly affordable
D)achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
E)consumers will favor products that offer the most in quality, performance, and innovative features

Question 12

According to the product concept,a company should ________.

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

Question 13

________ are states of felt deprivation.

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

Question 14

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 else.

Question 15

Customer-driven marketing is most likely to work well when ________ and when customers ________.

A)a clear need exists; are difficult to identify
B)customers do not know what they want; have limited budgets
C)there are few competitors; are concerned about their long-run welfare
D)a clear need exists; know what they want
E)a want exists; cannot afford it

Question 16

The selling concept holds that ________.

A)consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort
B)a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests
C)consumers will favor products that are available and highly affordable
D)achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
E)consumers will favor products that offer the most in quality, performance, and innovative features

Question 17

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

A)marketing management
B)market capitalization
C)marketing liquidity
D)market buzz
E)marketing liberalization

Question 18

The BakeWay Bite is a popular cookie sandwich marketed by the Posco Division of Home Foods.It is famous for its white cream-filled center.Home Foods created a different version of these biscuits for consumers in Germany.To appeal to German consumers,Home Food created dark chocolate filling for the same cookie sandwiches.This is an example of ________.

A)bulk breaking
B)cost leadership
C)diversification
D)target marketing
E)vertical integration

Question 19

Abel now has the buying power to purchase the computer that he wanted for the last six months.Abel's want has now become a(n)________.

A)need
B)necessity
C)demand
D)exigency
E)desire

Question 20

The first step in the marketing process is ________.

A)capturing value from customers to create profits and customer equity
B)constructing an integrated marketing program that delivers superior value
C)building profitable relationships and creating customer delight
D)understanding the marketplace and customer needs and wants
E)designing a customer-driven marketing strategy

Question 21

The societal marketing concept holds that ________.

A)consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort
B)a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests
C)the society will favor products that are available and highly affordable
D)achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
E)consumers will favor products that offer the most in quality, performance, and innovative features

Question 22

Sally purchased the newly launched "Jolie" lotion.By attempting to find out if the lotion's perceived performance matches her expectations,Sally was measuring her level of customer ________.

A)perceived value
B)satisfaction
C)equity
D)engagement
E)lifetime value

Question 23

Companies can build customer relationships at many levels,depending on the nature of the target market.Hence,a company with few customers and high margins is most likely to seek to develop ________ with key customers.

A)full partnerships
B)basic relationships
C)selective relationships
D)categorical partnerships
E)community relationships

Question 24

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

A)consumer-generated
B)sustainable
C)customer club
D)differential
E)mass

Question 25

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

A)short-run costs
B)short-run benefits
C)long-run welfare
D)long-run costs
E)long-run reputation

Question 26

Some fast-food restaurants offer tasty and convenient food at affordable prices,but in doing so they contribute to the national obesity epidemic and environmental problems.These fast-food restaurants overlook the ________ concept.

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

Question 27

Which of the following terms refers to a customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers?

A)customer-perceived value
B)customer-oriented brand equity
C)customer-perceived performance
D)customer-oriented promotional mix
E)customer-oriented price mix

Question 28

________ describes a longer channel,stretching from raw materials to components to final products that are carried to final buyers.

A)The supply chain
B)Direct marketing
C)Partnership relationship marketing
D)DSS
E)CRM

Question 29

Which of the following terms refers to the customers who make repeat purchases and tell others about their positive experiences with a product or service?

A)hyper-satisfied customers
B)customer evangelists
C)viral marketing
D)relationship partners
E)social customers

Question 30

Bill recently bought a BMW M3.Bill had several preconceived notions on the elegance and reliability of the car.After the purchase,he discovered that the car had a lot more attributes than he initially perceived.Hence,it created an emotional relationship with the car resulting in ________.

A)customer delight
B)customer satiety
C)customer equity
D)customer value
E)customer engagement

Question 31

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

A)Toyota's page on Facebook which provides information about its upcoming cars to its customers
B)Nike's Nike Plus Web site which helps its customers to customize their shoes
C)BMW's use of brand-related videos posted on video-sharing Web sites by its customers
D)Neiman Marcus's InCircle Rewards program for its best customers
E)the Lexus Covenant aimed at creating customer delight

Question 32

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction is called ________.

A)customer lifetime management
B)societal marketing
C)customer relationship management
D)database marketing
E)sustainable customer management

Question 33

________ marketing is socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.

A)Customer-driven
B)Mass
C)Sustainable
D)Customer-driving
E)Differential

Question 34

Ryan attempts to deliver customer satisfaction every day in his installation business,Audio Expressions.The key to achieving this goal is to match the customer-perceived performance of his product with ________.

A)company projections
B)customer values
C)customer expectations
D)customer relationship levels
E)company expectations

Question 35

Josie 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 existing and latent needs,now and in the future.Josie's firm practices ________ marketing.

A)product concept
B)customer-driving
C)societal
D)donor
E)production concept

Question 36

Nickson released a new range of watches that were titled after the famous mountaineer Adam Wills.These new watches were promoted through claims that the design is a favorite of Adam Wills who used a similar watch designed by Nickson for its high durability and quality on his expeditions.Such a measure to entice customers to buy one's products aims at creating ________.

A)customer equity
B)relationship marketing campaign
C)customer-perceived value
D)equitable relationship
E)societal marketing campaign

Question 37

The final step in the marketing process is ________.

A)capturing value from customers
B)constructing an integrated marketing program
C)building profitable relationships with the customers
D)understanding the marketplace
E)designing a customer-driven marketing strategy

Question 38

You are an assistant marketing director for a firm in a market with many low-margin customers.Which of the following types of relationships would be most profitable for you to develop with these customers?

A)full partnerships
B)basic relationships
C)categorical partnerships
D)selective relationships
E)community relationships

Question 39

The Niketown running club that organizes twice weekly evening runs for Nike customers is an example of a ________.

A)frequency marketing program
B)customer-driven marketing event
C)club marketing program
D)consumer-generated marketing program
E)sustainable marketing event

Question 40

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

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

Question 41

Market offerings are limited to physical products.

Question 42

The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction.

Question 43

When sellers pay less attention to the specific products they offer and more attention to the benefits and experiences produced by these products,they suffer from marketing myopia.

Question 44

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 more on leisure and travel
E)saving more and spending more on grocery items

Question 45

When backed by buying power,needs become wants.

Question 46

Marketing is managing profitable customer relationships.

Question 47

________ refers to the portion of the customer's purchase that a company gets in its product categories.

A)Value proposition
B)Share of customer
C)Brand equity
D)Customer ownership
E)Customer equity

Question 48

With its marketing strategy chosen,the company constructs an integrated marketing program consisting of a blend of marketing mix elements called the ________,that transforms the marketing strategy into real value for customers.

A)three stars
B)customer values
C)four Ps
D)perceived attributes
E)five domains

Question 49

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

A)high customer equity
B)high current market share
C)steady sales volume
D)high customer payoff
E)profit maximization

Question 50

________ is the total combined customer lifetime values of all the company's current and potential customers.

A)Share of customer
B)Customer payoff
C)Customer equity
D)Customer cardinality
E)Customer perceived value

Question 51

The difference between human needs and wants is that needs are not influenced by marketers.

Question 52

Customers can be classified into four relationship groups,according to their profitability and projected loyalty.According to this classification,a highly profitable,short-term customer is known as a ________.

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

Question 53

Market offerings can include products,services,information,or experiences offered to a market to satisfy a need or want.

Question 54

Carla,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

Question 55

Your state's department of health has budgeted a significant amount of money for a radio,print,television,and online advertising campaign emphasizing the ill effects of smoking.This is an example of a(n)________ campaign.

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

Question 56

Customers can be classified into four relationship groups,according to their profitability and projected loyalty.Based on this classification,you should avoid ________ and shouldn't invest anything in them.

A)barnacles
B)strangers
C)butterflies
D)true believers
E)true friends

Question 57

Customers can be classified into four relationship groups,according to their profitability and projected loyalty.With reference to this classification,a firm should turn true friends into ________,who come back regularly and tell others about their good experiences with the company.

A)barnacles
B)butterflies
C)strangers
D)true believers
E)stars

Question 58

If marketers set consumer expectations too low,they may satisfy those who buy but fail to attract enough buyers.

Question 59

At Ken's boutique,the policy statement posted in the reception states that "Without our customers,we don't exist." Ken and his staff aim to delight each customer and they are quick to offer discounts or extra services whenever a customer is anything less than satisfied.Instead of focusing on each individual transaction,Ken and his staff are putting a priority on ________.

A)maintaining customer-perceived value
B)managing partner relationships
C)attracting "butterflies"
D)converting "strangers" into "butterflies"
E)capturing customer lifetime value

Question 60

Wants are the form human needs take as they are shaped by culture and individual personality.

Question 61

The process of dividing the market into segments of customers is known as market penetration.

Question 62

In markets with few customers and high margins,sellers should try to develop basic relationships rather than full partnerships.

Question 63

The societal marketing concept holds that a company's marketing decisions should consider consumers' wants,the company's requirements,consumers' long-run interests,and society's long-run interests.

Question 64

Club marketing programs reward customers who buy frequently or in large amounts.

Question 65

Success at delivering customer value rests on how well their entire supply chain performs against competitors' supply chains.

Question 66

In addition to being good at customer relationship management,marketers must also work closely with others inside and outside the company to jointly bring more value to customers.

Question 67

A brand's value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs.

Question 68

Customer value is defined as the customer's evaluation of the perceived difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.

Question 69

Customer-perceived value depends on the product's perceived performance relative to a buyer's expectations.

Question 70

Greater consumer control means that companies can no longer rely on marketing by attraction.

Question 71

In its broadest sense,customer relationship management (CRM)is a customer data management activity.

Question 72

Nickson Cameras has developed a new design for cameras that their staff believes will offer the most in terms of quality,performance,and innovative features.Nickson Cameras is practicing the production concept here.

Question 73

Through consumer-generated marketing,consumers themselves are playing a bigger role in shaping their own brand experiences and those of others.

Question 74

The major difference between customer-driving marketing and customer-driven marketing is that the customer-driving marketing considers only existing needs.

Question 75

To all consumers,value means sensible products at affordable prices.

Question 76

The selling concept holds that consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort.

Question 77

Customer equity is a measure of the past value of the company's customer base.

Question 78

Product,price,place,and promotion make up the elements of a firm's marketing mix.

Question 79

The production concept and product concept are orientations that can lead to marketing myopia.

Question 80

Marketing managers are interested in serving all customers in every way to remain competitive in today's markets.