Question 1

The act of obtaining a desired object from someone by offering something of value in return is BEST defined as:
A) barter.
B) selling.
C) bargaining.
D) exchange.
E) negotiating.

Accepted Answer

The act of obtaining a desired object from someone by offering something of value in return is known as an exchange. It involves negotiations, bargaining, selling, and possibly bartering. However, exchange is the most accurate term because it encompasses all aspects of the transaction.

Question 2

The benefits that a customer derives from having access to or owning and using a product minus the costs of acquiring that product is BEST defined as:
A) reciprocity.
B) market price.
C) latent costs.
D) customer value.
E) perceived price.

Accepted Answer

Customer value refers to the benefits that a customer gets from owning and using a product minus the cost of acquiring that product. It takes into account both tangible and intangible benefits and is one of the most important variables that influence customer purchasing decisions.

Question 3

The set of current and potential buyers of a product or service is known as:
A) the target market.
B) value segments.
C) the latent market potential.
D) the market.
E) a market segment.

Accepted Answer

The set of current and potential buyers of a product or service is broadly referred to as "the market." This encompasses everyone who might be interested in purchasing the product or service, regardless of whether they are currently customers or not.

Question 4

Each of the following is true about the Internet's impact on the way business is conducted today, EXCEPT one. Identify the exception.
A) It can be used as a powerful sales channel.
B) It has facilitated personalised customer communications.
C) It has facilitated mass marketing, but not the sale of customised products.
D) It enables marketers to use social media to advertise their products.
E) It has empowered consumers with easy access to information.

Accepted Answer

The statement "It has facilitated mass marketing, but not the sale of customised products" is not entirely true. The internet has also enabled businesses to offer personalised products and services through various methods such as e-commerce platforms, online configurators, and targeted advertising based on user data.

Question 5

Craig Tomlin has just accepted his political party's nomination to stand as a candidate in the forthcoming election. In marketing terms, Craig Tomlin is:
A) an agent.
B) a symbolic representative.
C) a product.
D) a spokesperson.
E) none of the above

Accepted Answer

Craig Tomlin is being marketed as a product, as his political party is positioning him as their offering to the electorate.

Question 6

Consumers who develop artificially high expectations about a brand are more likely to:
A) experience dissatisfaction.
B) make positive brand recommendations.
C) become brand ambassadors.
D) be delighted.
E) become loyal to the brand.

Accepted Answer

Consumers who develop artificially high expectations about a brand are likely to experience dissatisfaction because the brand may not be able to meet these unrealistic expectations. This could lead to disappointment and negative feelings towards the brand.

Question 7

Companies address needs by putting forth a________ , a set of benefits that they offer to customers to satisfy their needs.
A) brand
B) demand
C) deal
D) marketing plan
E) value proposition

Accepted Answer

A value proposition is a statement that explains what benefits a company provides to its customers to meet their needs.

Question 8

Select the word that BEST completes the following sentence. The concept of value is a two- way street. The company creates value for customers. In turn the company captures value from customers in the form of________ customers who buy, and continue to buy the company's brands.
A) profitable
B) loyal
C) lifetime
D) valuable
E) none of the above

Accepted Answer

The sentence suggests that the company is able to capture value from customers who continue to buy its brands, which indicates that the customers are loyal. The other options may also be applicable in certain contexts, but "loyal" is the best fit based on the given sentence.

Question 9

Select the word that BEST completes the following sentence. It has been estimated that it usually costs________ times as much to attract a new customer as it does to keep a current customer satisfied.
A) five
B) one hundred
C) twenty
D) three
E) ten

Accepted Answer

It is commonly estimated in business that attracting a new customer can cost about five times as much as retaining an existing one.

Question 10

Which of the following is NOT a core marketing activity?
A) manufacturing
B) product development
C) marketing communications
D) consumer research
E) distribution

Accepted Answer

Manufacturing is not a core marketing activity. It falls under the category of operations or production. Core marketing activities include product development, marketing communications, consumer research, and distribution.

Question 11

Which of the following elements would NOT normally be included in a typical marketing plan?
A) an opportunity and threat analysis
B) a social responsibility audit
C) an analysis of the current marketing situation
D) a detailed marketing strategy
E) a list of specific marketing objectives

Accepted Answer

While social responsibility is an important consideration for businesses, it is typically not included in a typical marketing plan. The other elements listed (opportunity and threat analysis, analysis of the current marketing situation, detailed marketing strategy, list of specific marketing objectives) are commonly found in a marketing plan.

Question 12

Marketers who set expectations at a very low level are likely to find that:
A) their customers will engage in an increased incidence of positive word- of- mouth recommendations.
B) they may attract price- conscious segments.
C) their customers will exhibit increased levels of dissatisfaction.
D) they may fail to attract customers.
E) they may attract many customers.

Accepted Answer

Setting expectations too low can make a product or service seem unattractive, leading to a failure to attract customers.

Question 13

A want supported by buying power is known as:
A) products and services.
B) desire.
C) human motivations.
D) demand.
E) manifestation of greed.

Accepted Answer

Demand is the want or desire for a product or service backed by the ability to pay for it. This is supported by buying power, meaning that customers are willing and able to spend money on the product or service. Option A refers to the actual goods and services being sold, option B refers to a simple want or desire without the ability to purchase, option C refers to the underlying psychological factors driving consumer behavior, and option E is a subjective and negative characterization of the situation.

Question 14

Which of the following statements about the current economic environment is FALSE?
A) Consumers have reined in retail spending.
B) Consumers spend more of their disposable income on discretionary items.
C) Consumers are more value- conscious.
D) Consumers save more of their disposable income.
E) None of the above is false.

Accepted Answer

The statement that consumers spend more of their disposable income on discretionary items is false. In the current economic environment, consumers are actually more budget-conscious and are cutting down on nonessential expenses. They are prioritizing essential items over discretionary ones.

Question 15

When Volvo runs advertising claiming that its cars are the safest that money can buy, it is trying to:
A) enter a new market.
B) segment the market.
C) differentiate its product.
D) provide a service.
E) develop brand loyalty.

Accepted Answer

Volvo is differentiating its product from its competitors by highlighting safety as its unique selling point.

Question 16

Jane and Henry produce artworks for use in landscape design and home gardens. They are debating a description of the potential customers for their artwork. Jane and Henry are debating:
A) the value proposition.
B) market segmentation.
C) customer satisfaction.
D) relationship marketing.
E) the target market.

Accepted Answer

Jane and Henry are discussing the specific group of customers they should be targeting with their artwork. This relates to the concept of target market, or the specific group of consumers that a business targets with its products or services.

Question 17

The ACTUAL size of a market for a given product depends on which of the following?
A) the number of people who have resources and authority to engage in exchange
B) the number of people who exhibit a need for the product
C) the number of people who are willing to offer resources in exchange for what they want
D) all of the above

Accepted Answer

The size of a market for a given product depends on all the factors mentioned in options A, B, and C. The number of people who have resources and authority to engage in exchange (option A), the number of people who exhibit a need for the product (option B), and the number of people who are willing to offer resources in exchange for what they want (option C) all factor into the overall size of the market. Therefore, option D is the correct answer.

Question 18

Which of the following statements BEST describes customer satisfaction?
A) the benefits delivered by a product or service weighed against the costs or sacrifices made to acquire the product
B) a product or service's ability to meet a set of objective criteria, such as those specified by Australian Standards
C) the customer's conscious evaluation of a product or service feature, or of the product or service itself
D) a measure of the customer's delight with a product or service

Accepted Answer

Customer satisfaction is the result of the customer's evaluation of a product or service feature or of the product or service itself. It is a subjective measure and varies from customer to customer. Factors that influence customer satisfaction include product quality, price, customer service, and convenience.

Question 19

Select the phrase that BEST completes the following sentence. ________is now the fastest growing form of marketing.
A) Online marketing
B) Social marketing
C) Services marketing
D) Food marketing
E) Marketing of durables

Accepted Answer

The sentence is asking for the fastest growing form of marketing, and the term "online marketing" implies the use of digital technologies, which are currently experiencing rapid growth and innovation. The other options do not necessarily have the same level of growth or relevance in today's market.

Question 20

Which of the following is NOT one of the five steps in the model of creating customer value and building customer relationships?
A) design a customer- driven marketing strategy
B) understand the marketplace and customer needs and wants
C) identify the most profitable customers as the target market
D) build profitable relationships and create customer delight
E) construct an integrated marketing programme that delivers superior customer value

Accepted Answer

The correct step is to identify the needs and wants of the target market, not necessarily the most profitable customers. While profitability is important, it is not the sole criterion for identifying the target market. The target market should be based on a combination of factors such as needs, wants, demographics, behavior, and profitability.

Quiz 1: Marketing: Creating Superior Customer Value

The act of obtaining a desired object from someone by offering something of value in return is BEST defined as:

The benefits that a customer derives from having access to or owning and using a product minus the costs of acquiring that product is BEST defined as:

The set of current and potential buyers of a product or service is known as:

Each of the following is true about the Internet's impact on the way business is conducted today, EXCEPT one. Identify the exception.

Craig Tomlin has just accepted his political party's nomination to stand as a candidate in the forthcoming election. In marketing terms, Craig Tomlin is:

Consumers who develop artificially high expectations about a brand are more likely to:

Companies address needs by putting forth a________ , a set of benefits that they offer to customers to satisfy their needs.

Select the word that BEST completes the following sentence. The concept of value is a two- way street. The company creates value for customers. In turn the company captures value from customers in the form of________ customers who buy, and continue to buy the company's brands.

Select the word that BEST completes the following sentence. It has been estimated that it usually costs________ times as much to attract a new customer as it does to keep a current customer satisfied.

Which of the following is NOT a core marketing activity?

Which of the following elements would NOT normally be included in a typical marketing plan?

Marketers who set expectations at a very low level are likely to find that:

A want supported by buying power is known as:

Which of the following statements about the current economic environment is FALSE?

When Volvo runs advertising claiming that its cars are the safest that money can buy, it is trying to:

Jane and Henry produce artworks for use in landscape design and home gardens. They are debating a description of the potential customers for their artwork. Jane and Henry are debating:

The ACTUAL size of a market for a given product depends on which of the following?

Which of the following statements BEST describes customer satisfaction?

Select the phrase that BEST completes the following sentence. ________is now the fastest growing form of marketing.

Which of the following is NOT one of the five steps in the model of creating customer value and building customer relationships?