Deck 11: Customer-Driven Marketing

Question 1

A buyer's market is one characterized by an abundance of goods and services.

Answer 1

True

Question 2

Marketing creates people, time, place, and ownership utility.

Answer 2

False

Question 3

The term marketing concept refers to a companywide customer focus with the goal of achieving long‐term success.

Answer 3

True

Question 4

Marketing strategies are not essential for not-for-profit organizations because they do not compete for dollars as commercial businesses do.

Question 5

Ownership utility is created by making a product available in a location and at a time convenient for customers.

Question 6

In the marketing era, businesses assumed that consumers would buy as a result of energetic sales efforts.

Question 7

When the Canadian Lung Association distributes pamphlets on the dangers of smoking, it is using marketing as an educational tool.

Question 8

The production era in marketing stressed that the customer was always right.

Question 9

In the exchange process, as long as one party offers something of value, perceived needs are met.

Question 10

The use of websites, magazine adds, and mail sent directly to consumers by companies to market their organizations is an example of organization marketing.

Question 11

Becky opened a sandwich stand near a row of corporate offices whose employees previously had to drive several miles to get their lunch. Becky is utilizing ownership utility.

Question 12

Marketing is a process that begins with meeting an unmet customer need.

Question 13

Marketing is basically a form of selling.

Question 14

The marketing concept refers to a companywide customer orientation with the objective of achieving long-term success.

Question 15

Chicago used place marketing with its "Come spend a day shopping on the magnificent mile" campaign.

Question 16

It is illegal for not-for-profit organizations to partner with profit companies since not-for-profits may NOT earn a profit.

Question 17

Throughout the marketing process, a successful organization focuses on building customer relationships.

Question 18

A company's production function creates form utility by converting raw materials, component parts, and other inputs into finished goods and services.

Question 19

Form utility refers to the location where product is conveniently available to the customers.

Question 20

An outdoor store sells rafting and camping permits for a close-by national park. The store is creating place utility.

Question 21

Secondary data refers to previously published data.

Question 22

The first element of a marketing strategy is to identify a target market.

Question 23

Pricing strategy includes decisions about package design, brand names, trademarks, warranties, product image, new‐product development, and customer service.

Question 24

Event marketing often leads to partnerships between not‐for‐profit and for‐profit organizations.

Question 25

Cause marketing refers to efforts that are designed to attract the attention, interest, and preference of a target market toward a person.

Question 26

A focus group is a type of survey method for collecting secondary data.

Question 27

A firm's marketing success depends on the individual strategies developed for each of the four elements of its marketing mix.

Question 28

Primary data refer to data collected firsthand through such methods as observation and surveys.

Question 29

Business products usually require adaptation since they tend to be culture dependent.

Question 30

Pricing strategy decisions include package design, brand names, trademarks, and product image.

Question 31

Mass customization attempts to blend unique features into standardized goods and services.

Question 32

One of the most difficult areas of marketing decision making is pricing because these decisions are often subject to government regulation and public scrutiny.

Question 33

Bon Appetit is a magazine geared toward readers who are interested in science and technology.

Question 34

Marketing segmentation is the group of potential customers toward whom an organization directs its marketing efforts.

Question 35

External data refer to data about other organizations.

Question 36

Consumer goods include products used in the production of other goods for resale.

Question 37

Products such as computers fall into the categories of consumer or business, but NEVER in both categories since they are end-user products.

Question 38

A possible concern with primary data is that the information isn't specific or current enough.

Question 39

Government statistics are examples of secondary data.

Question 40

The advantage of standardization in the marketing mix includes reliable marketing performance and low costs.

Question 41

Identifying skin care products for women of colour is an example of location segmentation.

Question 42

Personal and interpersonal influences are strongest in only the early steps of the consumer behaviour process.

Question 43

As its ultimate goal, relationship marketing seeks to achieve customer satisfaction.

Question 44

The 80/20 principle states that 80 percent of a product's revenue comes from only about 20 percent of its users.

Question 45

Psychographic studies are used to evaluate motivations for purchases of hundreds of goods and services, ranging from soft drinks to healthcare services.

Question 46

The first step in the consumer behaviour process is the recognition of a problem or opportunity.

Question 47

Personal factors that influence consumer behaviour include cultural, social, and family influences.

Question 48

When business buyers need to make a purchase, they have to deal with their own preferences, which may NOT be their firm's preference.

Question 49

Demographic segmentation divides consumer markets into groups with similar values and lifestyles.

Question 50

Brand loyalty refers to the degree to which consumers recognize, prefer, and insist on a particular brand.

Question 51

Business buyers face a variety of organizational influences in addition to their own preferences.

Question 52

Data mining is a customer database that allows managers to combine data from several different organizational functions.

Question 53

Market segmentation attempts to isolate the traits that distinguish a certain group of consumers from the overall market.

Question 54

Family factors have been shown to influence consumer car-buying decisions. This is an example of a personal influence on consumer behaviour.

Question 55

Market segmentation is the process of dividing a total market into several relatively diverse groups.

Question 56

Perceptions are an important component of the interpersonal determinants of consumer behaviour process.

Question 57

End-use segmentation focuses on the precise way a consumer will use a product.

Question 58

The goal of completing transactions is to build long-term relationships between sellers and their customers.

Question 59

Attitudes and opinions are psychographic characteristics.

Question 60

Both personal and interpersonal factors influence the way buyers behave.

Question 61

The era in marketing history characterized by the notion that the customer is always right is known as the ______ era.

A) production
B) sales
C) marketing
D) relationship

Question 62

An example of an affinity program would be credit card customers who apply for cards affiliated with their favourite charity.

Question 63

Co-branding is when a company develops a product for two or more of its customers.

Question 64

A convenience store offers ______ utility by being open 24 hours each day.

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

Question 65

A sporting goods store that sells fishing licences at the start of each sport fishing season is creating ______ utility.

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

Question 66

Philippe owns a store that sells lampshades. The process of receiving money in return for lamp shades is ______.

A) marketing
B) place utility
C) exchange
D) time utility

Question 67

______ is an organizational function and a 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.

A) Marketing
B) Market segmentation
C) Consumer behaviour
D) Marketing research

Question 68

The marketing function creates all of the following types of utility EXCEPT ______ utility.

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

Question 69

The era in marketing history characterized by the notion that a good product will sell itself is known as the ______ era.

A) production
B) sales
C) marketing
D) relationship

Question 70

Businesses that create solid relationships with suppliers and customers protect themselves against competitors.

Question 71

Frequency marketing is a marketing effort sponsored by an organization that targets people who share common interests and activities.

Question 72

______ utility is created when the business firm converts raw materials into finished goods and services.

A) Place
B) Exchange
C) Ownership
D) Form

Question 73

What is 'utility'?

A) a service such as water or electricity
B) usefulness of a good
C) system of basing the price of a good
D) marketability of a good

Question 74

Which of these is NOT a type of utility?

A) time utility
B) place utility
C) form utility
D) price utility

Question 75

The location of a coffee shop franchise in a mall creates ______ utility.

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

Question 76

Place utility is created ______.

A) when arrangements for the transfer of title from seller to buyer are made
B) by having the good or service available at a convenient location when the consumer wants to buy it
C) when the product is made available to the consumer at a time the consumer wants to buy it
D) when the business firm converts raw materials into finished products

Question 77

The era in marketing history characterized by the notion that creative advertising would convince consumers to buy a product is known as the ______ era.

A) relationship
B) marketing
C) production
D) sales

Question 78

The Internet is considered a direct method for connecting with customers.

Question 79

Building long-term relationships with a few suppliers can actually lower production costs.

Question 80

The utility that is created when a salesperson at a car dealership completes the sales contract is ______ utility.

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