Question 1

The cost of attracting new customers is thought to be ________ than the cost of retaining existing customers.
A)two times higher
B)five times higher
C)ten times higher
D)twenty times higher
E)twenty-five times higher

Accepted Answer

The cost of attracting new customers is generally thought to be five times higher than the cost of retaining existing customers. This is a widely accepted marketing principle, emphasizing the importance of customer retention strategies.

Question 2

The marketing task known as demarketing involves ________.
A)reducing demand,either temporarily or permanently
B)adopting a low price position for a product or brand
C)preventing competitors from imitating a product or brand
D)reducing the value embedded in a product or brand
E)eliminating the product from the offerings

Accepted Answer

Demarketing involves reducing demand for a product or service, either temporarily or permanently. This may be done in order to prevent overconsumption or to target a specific audience.

Question 3

Selecting which segments of a population of customers to serve is called ________.
A)market segmentation
B)market positioning
C)customisation
D)target marketing
E)choosing a value proposition

Accepted Answer

Target marketing involves selecting specific segments of a population to focus marketing efforts on. Market segmentation is the process of breaking a larger market into smaller groups with similar needs or characteristics. Market positioning is the process of creating a unique identity for a brand. Customisation involves tailoring products or services to the specific needs of individual customers. Choosing a value proposition involves identifying and communicating the unique benefits a product or service offers to customers. Of these options, target marketing is the most closely related to selecting which segments to serve.

Question 4

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

Accepted Answer

This is a true statement. The four Ps of marketing mix are product, price, place, and promotion, which are the essential elements of a firm's marketing strategy.

Question 5

Which customer question is answered by a company's value proposition?
A)'Why should I buy your brand rather than a competitor's?'
B)'How does your brand benefit me and society?'
C)'What are the costs and benefits of your brand?'
D)'What kind of experience will I have with products and services associated with this brand?'
E)'What are the benefits of being a loyal consumer of your brand?'

Accepted Answer

A company's value proposition typically outlines the unique benefits and advantages of their brand compared to competitors, directly addressing the question of why a customer should choose their brand over others.

Other choices such as B, C, D, and E may also be important considerations for customers, but they do not specifically address the question of why a customer should choose one brand over another.

Question 6

The aim of ________ is not to completely destroy demand,but only to reduce or shift it to another time,or even another product.

Accepted Answer

The answer of The aim of ________ is not to...

Question 7

The key to creating excitement in a market offering,such as sport,is ________ and interactivity.

Accepted Answer

The answer of The key to creating excitement in a...

Question 8

The ________ concept holds that consumers will favour products that are available and highly affordable.

Accepted Answer

The answer of The ________ concept holds that consumers will...

Question 9

Customer-driven marketing considers only existing needs for existing markets.

Accepted Answer

Customer-driven marketing not only considers existing needs for existing markets, but also anticipates and creates new needs and markets. It focuses on understanding and fulfilling the needs and wants of customers, whether they currently exist or not.

Question 10

The art and science of choosing target markets and building profitable relationships with them is called ________.
A)marketing management
B)market positioning
C)market segmentation
D)selling
E)societal marketing

Accepted Answer

Marketing management involves the process of identifying potential markets, selecting target markets, and developing strategies to cultivate profitable relationships with those chosen segments.

Question 11

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.

Accepted Answer

The selling concept is based on the assumption that consumers will not buy enough of a firm's products without a significant promotional effort. This approach focuses on aggressive selling and advertising to convince customers to make a purchase.

Question 12

Which of the following is the most likely result of a marketing strategy that attempts to serve all customers?
A)All customers will be delighted.
B)Customer-perceived value will be increased.
C)Customer evangelists will become unpaid salespersons for the service or product.
D)The company may need to follow up with a demarketing campaign.
E)A and B only.

Accepted Answer

Attempting to serve all customers may lead to overextending resources and not being able to provide a high level of satisfaction to any particular segment. As a result, the company may need to follow up with a demarketing campaign to focus on specific segments that are more profitable or easier to serve effectively. All customers being delighted or becoming evangelists is unlikely, as different customers often have different needs and preferences that cannot all be met with a one-size-fits-all approach. Increasing customer-perceived value is also unlikely, as attempting to serve all customers may lead to offering too many features and benefits that are not relevant to all customers and may not add value.

Question 13

Delighted customers,known as 'customer evangelists',are more likely to ________.
A)spread the word about their good experiences with a brand or product.
B)engage in repeat purchasing.
C)become willing brand partners.
D)All of the above.
E)None of the above.

Accepted Answer

Delighted customers who are also known as 'customer evangelists' are more likely to spread the word about their good experiences with a brand or product, engage in repeat purchasing, and become willing brand partners. Hence, all of the above options are correct.

Question 14

The societal marketing concept calls on marketers to balance consumer wants and desires,company profits and society's interest.

Accepted Answer

The societal marketing concept emphasizes that a company's marketing strategy should not only focus on fulfilling the consumer's wants and needs but it should also take into account the long-term well-being of the society as well as the company's profits.

Question 15

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

Accepted Answer

Human needs are basic necessities such as food, shelter, and clothing that are required for survival and are not influenced by marketers. Wants, on the other hand, are desires or preferences for specific products or services that may be influenced by marketing and advertising campaigns.

Question 16

There are occasions when a firm should legitimately practice demarketing in order to manage its demand levels.

Accepted Answer

Demarketing is a strategy used by firms to reduce their demand levels, either in the short-term or long-term. This can be done for a number of reasons, such as to manage capacity constraints, to control costs, or to maintain exclusivity or scarcity of a product or service. Therefore, there are occasions when a firm should legitimately practice demarketing in order to manage its demand levels.

Question 17

Amy's law office has developed a new format and wording for wills.Staff believe that they offer superior quality,performance and innovative features.Her law office is practicing the production concept.

Accepted Answer

Amy's law office is practicing the product concept, which focuses on improving and innovating products to attract customers, rather than the production concept, which emphasizes efficiency and wide availability.

Question 18

Two important questions underlying marketing strategy are: 'Who is our target market?' and 'What's our value proposition?'

Accepted Answer

These are indeed two important questions that determine the success of a marketing strategy. Identifying a target market allows a company to tailor its marketing efforts towards a specific group of consumers, while developing a strong value proposition helps differentiate the company's products or services from competitors in the minds of consumers.

Question 19

When backed by buying power,needs become wants.

Accepted Answer

The answer of When backed by buying power,needs become wants....

Question 20

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

Accepted Answer

Both the production concept and product concept focus on the company's own product or production efficiency rather than the needs and wants of customers. This narrow focus may lead to marketing myopia, which is a lack of foresight about what customers may need or want in the future.

Quiz 1: Marketing: Creating and Capturing Customer Value

The cost of attracting new customers is thought to be ________ than the cost of retaining existing customers.

The marketing task known as demarketing involves ________.

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