Deck 10: Marketing: Building Profitable Customer Connections

Question 1

Throughout the social era of marketing, sales agents worked hard to visit many consumer households in order to market and sell their companies products.

Answer 1

False

Question 2

In recent years, marketing has focused on developing long-term relationships with customers.

Answer 2

True

Question 3

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.

Answer 3

False

Question 4

The evolution of marketing includes the production era and the selling era.

Question 5

The three basic types of utility are product utility, perception utility, and placement utility.

Question 6

Walt owns a local chain of auto repair shops in Northern Ontario. 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 7

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

Question 8

The use of marketing strategies is limited to the development, pricing, promotion, and distribution of goods and services.

Question 9

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

Question 10

Using Pinterest and LinkedIn to market products is a strategy used by businesses during the selling era of marketing.

Question 11

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

Question 12

In today's relationship era of marketing, the emphasis is on finding ways to quickly reach new customers.

Question 13

Starbucks aggressively opens conveniently located stores that provide customers with easy access to gourmet coffee beverages and pastries. This is an example of providing place utility.

Question 14

Using Facebook and Twitter to market products is a strategy used by businesses during the social era of marketing.

Question 15

Acquiring new customers can cost five times more than keeping an existing customer.

Question 16

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

Question 17

Marketing is an activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Question 18

Marketing has always focused on responding to the needs of customers quickly and completely.

Question 19

Henry Ford was committed to offering consumers the ability to purchase an automobile by using mass production. His perspective on marketing products was highlighted during the selling era.

Question 20

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

Question 21

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

Question 22

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

Question 23

Demographics are the mix of traits that define individuals.

Question 24

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

Question 25

Demographics are measurable characteristics such as age, gender, and income.

Question 26

Low cost creates high value.

Question 27

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 28

Business marketers direct their efforts to customers who buy products they use to produce other products.

Question 29

Today's businesses use customer relationship management to drive profits upward and provide unmatched value to the consumer.

Question 30

Value is based on a customer's perception of quality, appearance, and price.

Question 31

Businesses use CRM techniques to deliver value to customers while promoting customer loyalty.

Question 32

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

Question 33

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

Question 34

Underpromising 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 35

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

Question 36

Successful companies strive for customer satisfaction and develop marketing programs to encourage repeat business from existing customers.

Question 37

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

Question 38

Many firms develop a formal marketing plan to identify their target audience and how they will reach that audience.

Question 39

Today's businesses compete for customer loyalty, using marketing plans to define specific strategies.

Question 40

When it comes to creating customer satisfaction, actual value is more important than perceived value.

Question 41

Understanding consumer behaviour is a key to successful business-to-business relationships.

Question 42

Consumer behaviour specifically refers to how people act as they buy products for personal consumption.

Question 43

XLent Computers has one line of computers designed to appeal to hard-core 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 44

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

Question 45

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 46

Strategies about the best way to incorporate personal selling, public relations, and word-of-mouth promotion into the marketing of a good are part of the product strategy component of a firm's marketing mix.

Question 47

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

Question 48

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

Question 49

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

Question 50

Understanding consumer behaviour is not necessary to business survival.

Question 51

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

Question 52

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

Question 53

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

Question 54

Business leaders use target markets, which divide the market into smaller groups based on attitudes, interests, and values.

Question 55

Although both B2C and B2B marketers segment their markets, they use somewhat different categories.

Question 56

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

Question 57

Cognitive dissonance occurs when a consumer refuses to recognize problems or issues that arise from the purchase of a good or service.

Question 58

Market share is a key indicator of the conditions in a firm's competitive marketing environment.

Question 59

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 60

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

Question 61

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

Question 62

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

Question 63

A person's culture can have an impact on purchasing behaviour.

Question 64

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

Question 65

Whether they realize it or not, consumers go through all of the steps involved in the purchase decision process for every purchase they make.

Question 66

Marketing research is only important when making decisions about ways to improve the marketing mix.

Question 67

Consumers are most 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 68

Ricardo recently spent a lot of money buying 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 69

There is little a firm can do to reduce the cognitive dissonance experienced by their customers.

Question 70

Business will only use market research when promoting business-to-business products and services.

Question 71

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

Question 72

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

Question 73

Secondary data is existing data marketers gather about purchasing behaviour.

Question 74

Age, gender, and attitudes are major determinants of your social class.

Question 75

Primary data is new data gathered and compiled by marketers for the first time.

Question 76

There are many types of primary market research, but one thing they all have in common is that they involve a direct interaction with the research subject.

Question 77

One major disadvantage of primary data is that it is usually outdated even before the marketer receives it.

Question 78

Observation research involves talking to subjects being watched.

Question 79

Business buyer behaviour is actually quite similar to consumer purchase behaviour.

Question 80

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