Deck 11: Building Customer Relationships Through Effective Marketing

Question 1

The only kind of utility created by production is time utility,because the producer makes that product available to the customer at the time it is needed.

Answer 1

False

Question 2

The AMA defines marketing as "The activity,set of institutions,and process for creating,communicating,delivering,and exchanging offerings that have value for customers,clients,partners,and society at large."

Answer 2

True

Question 3

The marketing process involves eight major business functions.

Answer 3

True

Question 4

Form utility is created by making a product available at a location where customers wish to purchase it.

Question 5

One way to segment a market is according to whether the purchaser is a consumer or a business-to-business user.

Question 6

The evolution of customer orientation started with businesses having a strong sales orientation,followed by a production orientation,and finally a customer orientation.

Question 7

The four types of utility are time,place,form,and purpose.

Question 8

From the start of the Industrial Revolution until the early twentieth century,business had a strong production orientation.

Question 9

Marketing activities amount to about one-half of every dollar that consumers spend.

Question 10

Implementation of the marketing concept requires a firm to obtain information on what customers' needs are and how those needs are being met by products currently on the market.

Question 11

From time to time,some of the activities within the eight major functions of marketing are eliminated to provide for a more effective marketing process.

Question 12

The power of a good or service to satisfy a human need is called utility.

Question 13

The exchange function involves buying,selling,and transporting.

Question 14

The Whirlybird Vacuum Cleaner Company has a field sales team of 1,000 that goes door-to-door giving in-home demonstrations of the company's products.The product demonstrations often come with some high-pressure sales pitches.Whirlybird uses a strong sales orientation in moving its products.

Question 15

Time,place,and possession utility have no real value in terms of money.

Question 16

If you have always been committed and loyal to Hewlett-Packard technology products,your customer lifetime value to Hewlett-Packard would likely be quite high.

Question 17

An essential aspect of the marketing concept is ensuring that the firm has adequate production capabilities to satisfy future demand.

Question 18

Customer relationship management is a technology solution for increasing sales.

Question 19

CRM technology allows companies to make an investment in building long-term relationships with their customers.

Question 20

There are four kinds of utility: time,form,place,and price.

Question 21

Accurate and timely information is the foundation of effective marketing,especially of the marketing concept.

Question 22

Sales forecasts are used by managers in different divisions of an organization.

Question 23

Market segmentation means dividing consumers according to their wants,income,and geographic location.

Question 24

A firm's marketing activities are affected by external and generally uncontrollable forces.

Question 25

A marketing information system is computer-based and uses information from both internal and external sources.

Question 26

Examples of product ingredients of the marketing mix include design of the product and trade names,packaging,and warranties.

Question 27

Within a market,a group of individuals or firms that share one or more common characteristics is called a target group.

Question 28

A marketing plan specifies an organization's resources,objectives,marketing strategy,and implementation and control efforts to be used in marketing a specific product or product group.

Question 29

Reseller markets consist of intermediaries such as wholesalers that buy finished products and sell them for a profit.

Question 30

Long-range marketing plans typically cover two years.

Question 31

The pricing ingredient is concerned primarily with the producer's costs of design.

Question 32

A marketing plan is a written document that specifies an organization's resources,objectives,and strategy.

Question 33

Organizations usually use only one method for forecasting sales.

Question 34

Sales forecasts generally are not affected by the level of marketing effort planned for the forecast period.

Question 35

No product can be marketed successfully by using the undifferentiated approach.

Question 36

Sales are only forecasted in the long range,covering more than five years.

Question 37

The distribution ingredient is concerned only with transportation and storage.

Question 38

A firm should have no more than one market segment in its marketing strategy.

Question 39

The four elements of the marketing mix are product,price,distribution,and promotion.

Question 40

A marketing information system manages information from both internal and external sources.

Question 41

Marketing research,like a marketing information system,involves a continuous process.

Question 42

Consumers use different types of decision behaviors when buying different products.

Question 43

Target has its own trucks that ship merchandise to its warehouses from the supplier for backstock purposes.Target is carrying out which of the following functions?

A) Contracting with suppliers
B) Standardizing and grading its facilities
C) Buying and selling
D) Risking obsolescence of its products
E) Transporting and storing

Question 44

At Mattel,a marketing information system stores data on regional sales activities,promotional costs,and international inventory levels.These data are examples of external sources.

Question 45

Your Wish,Inc.
Cindy worked for a retail company and noticed there were many things it could do better.She shared some of her ideas with upper management,but it did not want to do things differently.When Cindy went home to talk to her husband,they both realized that,given her passion,it would be better for Cindy to open her own business.After a lot of consideration,she decided to open a sporting goods store called Your Wish,Inc.She also knew just where to open the store⎯right next to her house.
To be certain to address all aspects of the business,Cindy hired a marketing research firm to determine the best location.Once all the research was compiled and analyzed,she realized that it would actually be better to open the store in a different area.She also realized that deciding where to locate the business was not the only major concern.More specifically,she would have to focus on the four elements of the marketing mix as well,creating a whole marketing plan.Her husband mentioned the possibility of using online information services to help with the business.With her husband's support and a good marketing plan,Cindy felt that she would be prepared to make the right decisions.
Refer to Your Wish,Inc.In preparing a marketing plan,Cindy should ensure that all of the following components are included except a(n)

A) executive summary.
B) SWOT analysis.
C) production schedule.
D) environmental analysis.
E) evaluation and control.

Question 46

Your Wish,Inc.
Cindy worked for a retail company and noticed there were many things it could do better.She shared some of her ideas with upper management,but it did not want to do things differently.When Cindy went home to talk to her husband,they both realized that,given her passion,it would be better for Cindy to open her own business.After a lot of consideration,she decided to open a sporting goods store called Your Wish,Inc.She also knew just where to open the store⎯right next to her house.
To be certain to address all aspects of the business,Cindy hired a marketing research firm to determine the best location.Once all the research was compiled and analyzed,she realized that it would actually be better to open the store in a different area.She also realized that deciding where to locate the business was not the only major concern.More specifically,she would have to focus on the four elements of the marketing mix as well,creating a whole marketing plan.Her husband mentioned the possibility of using online information services to help with the business.With her husband's support and a good marketing plan,Cindy felt that she would be prepared to make the right decisions.
Refer to Your Wish,Inc.If Cindy were to use information services available online,they would offer her access to which of the following?

A) Databases
B) Financial assistance
C) Physical location
D) Production materials
E) Disposable income

Question 47

Consumers are usually better informed than business buyers about the products they buy.

Question 48

Your Wish,Inc.
Cindy worked for a retail company and noticed there were many things it could do better.She shared some of her ideas with upper management,but it did not want to do things differently.When Cindy went home to talk to her husband,they both realized that,given her passion,it would be better for Cindy to open her own business.After a lot of consideration,she decided to open a sporting goods store called Your Wish,Inc.She also knew just where to open the store⎯right next to her house.
To be certain to address all aspects of the business,Cindy hired a marketing research firm to determine the best location.Once all the research was compiled and analyzed,she realized that it would actually be better to open the store in a different area.She also realized that deciding where to locate the business was not the only major concern.More specifically,she would have to focus on the four elements of the marketing mix as well,creating a whole marketing plan.Her husband mentioned the possibility of using online information services to help with the business.With her husband's support and a good marketing plan,Cindy felt that she would be prepared to make the right decisions.
Refer to Your Wish,Inc.Cindy thought about focusing on the four elements of the marketing mix.Which of the following is one of those elements?

A) Production
B) Price
C) Power
D) Possession
E) Personal income

Question 49

A consumer usually will go through all of the steps of the consumer buying decision process for every purchase.

Question 50

Andrea works for a retail shop called Melody's Crafts 'N Things.Andrea was often quite rude to customers when they annoyed her.One morning,her supervisor asked Andrea into her office and informed her that her behavior was unacceptable.To be rude to one customer could cause several customers not to come back.Andrea's supervisor told her that retaining a customer is much cheaper than trying to get a new one.After their constructive discussion,Andrea's boss told her that she wanted her to go out on the floor that day and attempt to be more helpful to customers.
Over the next few months,Andrea began to help customers learn more about the different products in the store and often explained why the customer might want to purchase one product over another.In doing so,she realized the importance of her role in the retail shop and began to truly enjoy her job.She started to think about the future of the company.She even thought that the company could do very well if it were to sell its products on eBay.When she brought this idea to her boss,her boss thought it was excellent,and asked Andrea to look further into the pros and cons of her idea.
After evaluating Andrea's research,her boss decided to move forward with the idea,asking Andrea to head up this new venture for the company.Andrea then realized that retail is not just about making the sale;the customer should be the focus of all operations.Andrea now looks up to her boss,and is very glad that she was there to mentor her.
Refer to Melody's Crafts 'N Things.Melody's purchased its Thanksgiving products in June.However,in October,when the store finally displays the Thanksgiving products,which form of utility is being provided?

A) Possession
B) Place
C) Market
D) Time
E) Form

Question 51

A marketing information system provides information for specific marketing projects.

Question 52

Buying behavior may be defined as the decisions and actions of people involved in buying and using products.

Question 53

Marketers are most interested in discretionary income because consumers have the most choice in spending it.

Question 54

Your Wish,Inc.
Cindy worked for a retail company and noticed there were many things it could do better.She shared some of her ideas with upper management,but it did not want to do things differently.When Cindy went home to talk to her husband,they both realized that,given her passion,it would be better for Cindy to open her own business.After a lot of consideration,she decided to open a sporting goods store called Your Wish,Inc.She also knew just where to open the store⎯right next to her house.
To be certain to address all aspects of the business,Cindy hired a marketing research firm to determine the best location.Once all the research was compiled and analyzed,she realized that it would actually be better to open the store in a different area.She also realized that deciding where to locate the business was not the only major concern.More specifically,she would have to focus on the four elements of the marketing mix as well,creating a whole marketing plan.Her husband mentioned the possibility of using online information services to help with the business.With her husband's support and a good marketing plan,Cindy felt that she would be prepared to make the right decisions.
Refer to Your Wish,Inc.When Cindy's business gets going,her income less all additional personal taxes would be called her

A) business buying behavior.
B) disposable income.
C) IRS imposed income.
D) discretionary income.
E) total loss.

Question 55

The organizational function and set of processes for creating,communicating,and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders is

A) production.
B) the chain of command.
C) marketing.
D) distribution.
E) dispersion.

Question 56

Your Wish,Inc.
Cindy worked for a retail company and noticed there were many things it could do better.She shared some of her ideas with upper management,but it did not want to do things differently.When Cindy went home to talk to her husband,they both realized that,given her passion,it would be better for Cindy to open her own business.After a lot of consideration,she decided to open a sporting goods store called Your Wish,Inc.She also knew just where to open the store⎯right next to her house.
To be certain to address all aspects of the business,Cindy hired a marketing research firm to determine the best location.Once all the research was compiled and analyzed,she realized that it would actually be better to open the store in a different area.She also realized that deciding where to locate the business was not the only major concern.More specifically,she would have to focus on the four elements of the marketing mix as well,creating a whole marketing plan.Her husband mentioned the possibility of using online information services to help with the business.With her husband's support and a good marketing plan,Cindy felt that she would be prepared to make the right decisions.
Refer to Your Wish,Inc.Marketing research involves

A) satisfying customers.
B) determining a target market.
C) creating a product mix.
D) interpreting information.
E) product promotion.

Question 57

Andrea works for a retail shop called Melody's Crafts 'N Things.Andrea was often quite rude to customers when they annoyed her.One morning,her supervisor asked Andrea into her office and informed her that her behavior was unacceptable.To be rude to one customer could cause several customers not to come back.Andrea's supervisor told her that retaining a customer is much cheaper than trying to get a new one.After their constructive discussion,Andrea's boss told her that she wanted her to go out on the floor that day and attempt to be more helpful to customers.
Over the next few months,Andrea began to help customers learn more about the different products in the store and often explained why the customer might want to purchase one product over another.In doing so,she realized the importance of her role in the retail shop and began to truly enjoy her job.She started to think about the future of the company.She even thought that the company could do very well if it were to sell its products on eBay.When she brought this idea to her boss,her boss thought it was excellent,and asked Andrea to look further into the pros and cons of her idea.
After evaluating Andrea's research,her boss decided to move forward with the idea,asking Andrea to head up this new venture for the company.Andrea then realized that retail is not just about making the sale;the customer should be the focus of all operations.Andrea now looks up to her boss,and is very glad that she was there to mentor her.
Refer to Melody's Crafts 'N Things.Andrea should understand that all of the following are different types of utilities except

A) form.
B) time.
C) possession.
D) place.
E) market.

Question 58

Andrea works for a retail shop called Melody's Crafts 'N Things.Andrea was often quite rude to customers when they annoyed her.One morning,her supervisor asked Andrea into her office and informed her that her behavior was unacceptable.To be rude to one customer could cause several customers not to come back.Andrea's supervisor told her that retaining a customer is much cheaper than trying to get a new one.After their constructive discussion,Andrea's boss told her that she wanted her to go out on the floor that day and attempt to be more helpful to customers.
Over the next few months,Andrea began to help customers learn more about the different products in the store and often explained why the customer might want to purchase one product over another.In doing so,she realized the importance of her role in the retail shop and began to truly enjoy her job.She started to think about the future of the company.She even thought that the company could do very well if it were to sell its products on eBay.When she brought this idea to her boss,her boss thought it was excellent,and asked Andrea to look further into the pros and cons of her idea.
After evaluating Andrea's research,her boss decided to move forward with the idea,asking Andrea to head up this new venture for the company.Andrea then realized that retail is not just about making the sale;the customer should be the focus of all operations.Andrea now looks up to her boss,and is very glad that she was there to mentor her.
Refer to Melody's Crafts 'N Things.When Andrea was brought into her boss's office,what was her manager trying to explain?

A) Customer motivation
B) Customer lifetime value
C) Disposable income
D) Marketing information system
E) Possession utility

Question 59

The income an individual receives from all sources less the Social Security taxes that the individual must pay is called personal income.

Question 60

Andrea works for a retail shop called Melody's Crafts 'N Things.Andrea was often quite rude to customers when they annoyed her.One morning,her supervisor asked Andrea into her office and informed her that her behavior was unacceptable.To be rude to one customer could cause several customers not to come back.Andrea's supervisor told her that retaining a customer is much cheaper than trying to get a new one.After their constructive discussion,Andrea's boss told her that she wanted her to go out on the floor that day and attempt to be more helpful to customers.
Over the next few months,Andrea began to help customers learn more about the different products in the store and often explained why the customer might want to purchase one product over another.In doing so,she realized the importance of her role in the retail shop and began to truly enjoy her job.She started to think about the future of the company.She even thought that the company could do very well if it were to sell its products on eBay.When she brought this idea to her boss,her boss thought it was excellent,and asked Andrea to look further into the pros and cons of her idea.
After evaluating Andrea's research,her boss decided to move forward with the idea,asking Andrea to head up this new venture for the company.Andrea then realized that retail is not just about making the sale;the customer should be the focus of all operations.Andrea now looks up to her boss,and is very glad that she was there to mentor her.
Refer to Melody's Crafts 'N Things.Doing business on eBay allows an entrepreneur to

A) develop a business-to-business selling model.
B) develop form utility.
C) create place utility.
D) find out what works,fast.
E) explore producer markets.

Question 61

Car dealers are financed by automobile manufacturers,and Target receives financing from its wholesalers and manufacturers.What marketing functions do such activities perform?

A) Physical distribution
B) Standardization
C) Marketing information
D) Financing
E) Storage

Question 62

The utility created by transferring ownership of a product to a buyer is called ____ utility.

A) form
B) place
C) time
D) possession
E) ownership

Question 63

By selling Christmas trees from late November through December,Home Improvement is providing ____ utility.

A) form
B) possession
C) place
D) time
E) marketing

Question 64

A Corvette,a dinner at the Olive Garden,and an overnight stay at a Hilton Hotel all satisfy human needs.Therefore,each

A) is a service.
B) is a convenience product.
C) possesses utility.
D) is unique.
E) is created for an unsegmented market.

Question 65

What focuses on using information about customers to create marketing strategies that develop and sustain desirable customer relationships?

A) Customer relationship management
B) Electronic data interchange
C) Business-to-consumer marketing
D) Strategic partnerships
E) The marketing concept

Question 66

Burlington Coat Factory manufactures its winter jackets in April but does not display them in its stores until early September.Burlington recognizes the importance of ____ utility.

A) form
B) time
C) production
D) space
E) possession

Question 67

____ utility is the only type of utility created by the production process.

A) Form
B) Time
C) Production
D) Place
E) Possession

Question 68

When Jeff returned a shirt he had purchased at Macy's for a refund,he essentially reversed the effect of which type of utility?

A) Form
B) Possession
C) Time
D) Transfer
E) Place

Question 69

Using information about customers to create marketing strategies that develop and sustain desirable long-term customer relationships is known as

A) computer resource management.
B) customer resource management.
C) customer relationship management.
D) customer research management.
E) e-marketing.

Question 70

The utility created by making a product available at a location where customers wish to purchase it is called ____ utility.

A) form
B) time
C) production
D) place
E) possession

Question 71

The utility created by making a product available when customers wish to purchase it is called ____ utility.

A) form
B) time
C) production
D) place
E) possession

Question 72

New Seasons Market,a locally owned and operated one-stop grocery store based in Portland,Oregon is committed to providing local products for its particular customer base.New Seasons strives to deepen customer trust and loyalty by keeping close and regular connection with customers in a quest to better understand the customers' needs and desires.New Seasons Market is creating a model for

A) form utility.
B) customer relationship management.
C) relationship marketing..
D) customer research management.
E) market segmentation.

Question 73

When Food Tiger grocery stores offer milk and eggs at all of its locations,it is providing customers with ____ utility.

A) time
B) place
C) form
D) marketing
E) possession

Question 74

Which of the following is not one of the four commonly recognized forms of utility?

A) Form
B) Time
C) Production
D) Place
E) Possession

Question 75

Between the 1920s and the 1950s,business had a strong ____ orientation,in which emphasis was placed on increased advertising,enlarged sales forces,and occasionally high-pressure selling techniques.

A) production
B) sales
C) marketing
D) customer
E) organizational

Question 76

The process of shipping fresh flowers from California to Texas gives ____ utility to the flowers.

A) form
B) time
C) place
D) possession
E) very little

Question 77

The utility created by converting production inputs into finished products is called ____ utility.

A) form
B) time
C) production
D) place
E) possession

Question 78

The marketing activities associated with time,place,and possession utility account for about ____ of every consumer dollar spent.

A) ten cents
B) one-fourth
C) one-third
D) one-half
E) three-fourths

Question 79

Kristy Martin is getting married on Saturday.She purchases flowers for the church ceremony early Saturday morning from a local flower shop.Which of the following types of utility is not created by this activity?

A) Form
B) Place
C) Time
D) Possession
E) Ownership

Question 80

Mattel,Inc.selects suppliers and obtains raw materials to make toys.The company is engaged in which function of marketing?

A) Selling
B) Buying
C) Storing
D) Financing
E) Risk taking