Question 1

Michelin's __________ can be summed up as "providing safety-conscious parents greater security in tires at a premium price."
A)customer value proposition
B)protocol
C)mission statement
D)core values
E)marketing program

Accepted Answer

A customer value proposition is a statement that explains how a company's product or service solves a specific customer problem or meets a specific customer need in a unique way. Michelin's statement about "providing safety-conscious parents greater security in tires at a premium price" is a clear example of a customer value proposition.

Question 2

Which of the following statements about customer value is most accurate?
A)Target customers assess customer value in terms of the combination of benefits (quality, convenience, etc.), regardless of the price.
B)Loyal customers are less profitable to firms in the long run since they expect lower prices over time in order to remain loyal.
C)Research suggests that firms can be most successful by being all things to all consumers.
D)It is impossible to place a dollar value on a loyal, satisfied customer.
E)To create value for targeted buyers, firms must build long-term relationships with them.

Accepted Answer

Building long-term relationships with targeted buyers is essential to creating customer value. This allows firms to better understand their customers' needs and preferences and tailor their products or services accordingly, leading to increased customer satisfaction and loyalty. This ultimately translates to greater profitability for the firm over the long-term. Options A, B, C, and D are all incorrect as they either make generalizations that are not universally true or are outright false.

Question 3

The five major environmental forces in a marketing decision are
A)climate change, natural resources, pollution, natural disasters, and global conflict (war).
B)social, technological, economic, competitive, and regulatory.
C)corporate ownership, internal management, supplier partnerships, strategic alliances, and customer relationships.
D)product, price, promotion, place, and people.
E)ethics, sustainability, cultural awareness, diversity, and values.

Accepted Answer

The social, technological, economic, competitive, and regulatory forces are the five major environmental forces that impact marketing decisions. These forces influence consumer behavior, market conditions, and the overall business environment. Climate change, natural disasters, and pollution are environmental concerns, but they do not fall under the category of forces that impact marketing decisions. Corporate ownership, internal management, supplier partnerships, strategic alliances, and customer relationships are important aspects of business operations, but they are not necessarily environmental forces. Product, price, promotion, place, and people are elements of the marketing mix, but they do not represent environmental forces. Ethics, sustainability, cultural awareness, diversity, and values are important considerations in marketing, but they are not the major environmental forces that impact marketing decisions.

Question 4

Which of the following statements describes an environmental force?
A)Several states have legislation that requires people transporting children to use age- and height-appropriate car seats.
B)Tupperware has more than 200,000 independent dealers who market its entire product line.
C)A car battery comes with a lifetime guarantee.
D)An automobile dealer offers a $500 rebate during the month of July.
E)A major bottler offers a 10-cent refund on returnable bottles.

Accepted Answer

The statement describes a legislative environmental force, as it is a law that affects behavior and choices of individuals.

Question 5

Which of the following statements about relationship marketing is most accurate?
A)Relationship marketing has a short-term focus: increasing profits for the firm.
B)Relationship marketing begins before and ends after the sale.
C)Relationship marketing occurs when there is a personal, ongoing relationship between an organization and its customers.
D)Very few companies today are engaged in relationship marketing.
E)The Internet has allowed marketers to establish more personal relationships with customers.

Accepted Answer

Relationship marketing focuses on creating long-term relationships with customers, emphasizing ongoing engagement and interaction beyond individual transactions.

Question 6

The linking of the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit is referred to as
A)relationship marketing.
B)exclusive dealing.
C)loyalty marketing.
D)customer relationship management.
E)symbiotic marketing.

Accepted Answer

Relationship marketing is the practice of building long-term, mutually beneficial relationships with individual customers, employees, suppliers, and other partners. This approach focuses on understanding the needs and preferences of each individual and tailoring marketing efforts and communications to meet those needs. Relationship marketing can help organizations retain customers, improve customer satisfaction, and generate repeat business.

Question 7

According to the textbook, Target has been successful by offering consumers the best
A)experience.
B)products/services.
C)customer service.
D)availability.
E)price.

Accepted Answer

The answer of According to the textbook, Target has been...

Question 8

The ability to buy a soda from a vending machine demonstrates which element of the marketing mix?
A)product
B)price
C)promotion
D)place
E)process

Accepted Answer

Buying a soda from a vending machine involves the place element of the marketing mix. The vending machine is conveniently located in a specific place to make it easy for customers to purchase the product.

Question 9

The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and before- and after-sale service at a specific price is called
A)customer value.
B)target marketing.
C)benefit proposition.
D)value-based marketing.
E)a customer value proposition.

Accepted Answer

The answer of The unique combination of benefits received by...

Question 10

Environmental forces refer to
A)the internal strengths of a company that enable the firm to remain competitive.
B)the marketing manager's uncontrollable factors-product, price, promotion, and place-that can be used to solve marketing problems.
C)the unpredictable or uncontrollable availability of natural resources that can enhance or restrain a company's growth.
D)the marketing manager's uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces.
E)the marketing manager's controllable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces.

Accepted Answer

Environmental forces refer to the marketing manager's uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces. These forces cannot be controlled by the company, but can greatly impact the success of a marketing strategy.

Question 11

According to the textbook, Starbucks provides its customers with the best
A)branding.
B)products/services.
C)price.
D)customer service.
E)availability.

Accepted Answer

The textbook states that Starbucks provides its customers with the best products/services. This is evidenced by their focus on high-quality coffee beans, ethically sourced ingredients, and skilled baristas who are trained to craft specialized beverages. Customer service is also a strong aspect of their brand, but the main emphasis is on the quality of their products.

Question 12

Which of the following is not an environmental force?
A)technological
B)regulatory
C)ecological
D)competitive
E)economic

Accepted Answer

Ecological is not typically considered an environmental force in the context of business and marketing environments, where the focus is on technological, regulatory, competitive, and economic forces.

Question 13

Which of the following statements about environmental forces is most accurate?
A)Environmental forces are almost always controllable if the marketing department correctly scans them.
B)An organization that incorporates the marketing concept can exert just as much influence on environmental forces as they can exert on that organization.
C)Environmental forces consistently result in negative outcomes for an organization.
D)Some environmental forces can actually enhance a firm's marketing opportunities.
E)Environmental forces can almost always be predicted.

Accepted Answer

Some environmental forces can actually enhance a firm's marketing opportunities. For example, a trend of consumers becoming increasingly interested in organic and sustainable products can be viewed as an environmental force. If a company specializes in organic and sustainable products, this trend can actually enhance their marketing opportunities.

Question 14

The cluster of benefits that an organization promises customers to satisfy their needs is referred to as a
A)core benefit proposal.
B)product protocol.
C)marketing program.
D)marketing mix.
E)customer value proposition.

Accepted Answer

The term "customer value proposition" best describes the cluster of benefits that an organization promises customers to satisfy their needs. A customer value proposition outlines the unique value that a product or service provides to customers and differentiates it from competitors in the market. It defines a combination of tangible and intangible benefits that customers can expect to receive from a company's offering, including product features, quality, price, and other factors.

Question 15

A customer value proposition is
A)the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.
B)a statement that, before product development begins, identifies (1) a well-defined target market; (2) specific customers' needs, wants, and preferences; and (3) what the product will be and do to satisfy consumers.
C)a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation.
D)the characteristics of a product that make it superior to competitive substitutes.
E)the cluster of benefits that an organization promises customers to satisfy their needs.

Accepted Answer

A customer value proposition is the cluster of benefits that an organization promises customers to satisfy their needs. It is a statement that communicates the unique value that a product or service provides to its customers, and it is what sets it apart from the competition. It includes both tangible and intangible benefits that a customer receives when they purchase a product or service from a company.

Question 16

Relationship marketing refers to
A)the selection and the assignment of a firm's personnel for a specific product or product line to a group of current or prospective customers.
B)the belief that it is easier and less expensive to find new customers than to retain old ones.
C)the linking of the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits.
D)the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace.
E)exclusive legally binding contractual agreements between retailers and customers in order to create enhanced value for each party.

Accepted Answer

Relationship marketing refers to the linking of the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits. It emphasizes building and maintaining long-term relationships with customers rather than short-term sales transactions.

Question 17

If a bank is known for delivering customer value through its focus on taking care of customers, it is most likely focusing on providing its customers with the best
A)assortment.
B)products/services.
C)price.
D)customer service.
E)availability.

Accepted Answer

If a bank is known for delivering customer value through its focus on taking care of customers, it means that it is placing a strong emphasis on providing excellent customer service. As a result, the best choice would be customer service (option D) as it aligns with the bank's focus on taking care of customers.

Question 18

The uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces are referred to as
A)the 5 Fs of marketing.
B)environmental forces.
C)business conditions.
D)a marketing ecosystem.
E)a business sphere.

Accepted Answer

These forces are external factors that a marketer cannot control or predict, but must consider when making marketing decisions. They are often referred to as environmental forces or external factors.

Question 19

Those who have flown on Singapore Air have experienced firsthand the great food that is served during the flight, the friendliness of the flight attendants, and the comfortable seating. Singapore Air creates customer value by providing its customers with
A)the best airport experience.
B)the most convenient flight schedules.
C)the best price for the distance traveled.
D)the best in-flight service.
E)the greatest sense of personal safety.

Accepted Answer

The passage specifically mentions the great food, friendliness of the flight attendants, and comfortable seating as evidence of Singapore Air's creation of customer value through in-flight service. The other options (A, B, C, E) are not mentioned as factors contributing to customer value in the passage.

Question 20

Customer value refers to
A)the need of a customer to receive the highest quality product at the lowest possible price.
B)the least expensive product that will provide it with most of the basic benefits.
C)a statement that, before product development begins, identifies (1) a well-defined target market; (2) specific customers' needs, wants, and preferences; and (3) what the product will be and do to satisfy consumers.
D)the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.
E)the cluster of benefits that an organization promises customers to satisfy their needs.

Accepted Answer

Customer value is the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price. This definition emphasizes the importance of providing a tailored set of benefits to specific groups of customers to meet their needs and wants. A focuses too much on price, B is too general, C describes a product development process, and E is too vague.

Quiz 1: Creating Customer Relationships and Value Through Marketing

Michelin's __________ can be summed up as "providing safety-conscious parents greater security in tires at a premium price."

Which of the following statements about customer value is most accurate?

The five major environmental forces in a marketing decision are

Which of the following statements describes an environmental force?

Which of the following statements about relationship marketing is most accurate?

The linking of the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit is referred to as

According to the textbook, Target has been successful by offering consumers the best

The ability to buy a soda from a vending machine demonstrates which element of the marketing mix?

The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and before- and after-sale service at a specific price is called

Environmental forces refer to

According to the textbook, Starbucks provides its customers with the best

Which of the following is not an environmental force?

Which of the following statements about environmental forces is most accurate?

The cluster of benefits that an organization promises customers to satisfy their needs is referred to as a

A customer value proposition is

Relationship marketing refers to

If a bank is known for delivering customer value through its focus on taking care of customers, it is most likely focusing on providing its customers with the best

The uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces are referred to as

Those who have flown on Singapore Air have experienced firsthand the great food that is served during the flight, the friendliness of the flight attendants, and the comfortable seating. Singapore Air creates customer value by providing its customers with

Customer value refers to