Deck 2: Creating Marketing Strategies for Customer-Centric Organizations

Question 1

Today's consumers have less power than those of the last decade.

Answer 1

False

Question 2

Customer-centricity is a strategic commitment to focus the firm's resources on serving and delighting all customers.

Answer 2

False

Question 3

Customer-centricity is a strategic commitment to focus the firm's resources on serving and delighting profitable customers.

Answer 3

True

Question 4

Value is the difference between what consumers give up for a product and the benefits they receive.

Question 5

Quality, often synonymous with value, is enough to sustain a competitive advantage in today's business environment.

Question 6

Other components of value, such as brand, image, price, and product features, can provide a competitive advantage in today's business environment.

Question 7

Marketing strategy involves the allocation of resources to develop and sell products or services that consumers will perceive to provide more value than competitive products or services.

Question 8

Marketing attempts to get consumers to buy new products are almost always successful.

Question 9

Most new products are successful.

Question 10

The average failure rate of new products launched in the market is about 39 percent.

Question 11

Consumer insight refers to the consumer's understanding of how companies market their products.

Question 12

A thorough market analysis includes an examination of current and potential competitors.

Question 13

Market segmentation is the process of identifying a group of people similar in one or more ways.

Question 14

A market segment is a group of consumers with similar needs and behavior that differ from those of the entire mass market.

Question 15

The ultimate goal of market segmentation is increased customer satisfaction and profitability.

Question 16

The less individualized the product and the larger the segment for which it is designed, the greater the likelihood that the costs to the marketer will increase.

Question 17

The opposite of market aggregation is mass marketing.

Question 18

Mass marketing is more appropriate in industrially advanced countries than in less advanced countries with developing economies.

Question 19

Mass customization is the customization of goods and services for individual customers in high volume and at relatively low costs.

Question 20

One disadvantage of market segmentation is that it always increases marketing expenses.

Question 21

The attractiveness of a market segment depends on a number of factors, including its size and accessibility.

Question 22

Product is the total bundle of utilities or benefits attained by consumers in the exchange process.

Question 23

Price is the total bundle of disutilities given up by consumers in exchange for a product.

Question 24

Having the lowest price is not as important as having the price fall in the range consumers expect to pay for the product.

Question 25

A successful brand strategy would provide an emotional connection between a firm and its customers.

Question 26

The difference in value created by a brand less the cost of creating the brand is known as brand equity.

Question 27

Research indicates that consumers perceive products with prices ending in round numbers and $.00 to be of lower quality.

Question 28

Excellent marketing strategy can overcome poor execution.

Question 29

Many firms in industrialized countries are focusing their attention on soliciting new customers rather than retaining their existing customers because it is usually cheaper to recruit new customers.

Question 30

It is generally more expensive to attract new customers than to hold on to present ones.

Question 31

Customer loyalty programs such as frequent flyer miles are intended to reward consumers for their "good behavior."

Question 32

A company should "fire" its unprofitable customers.

Question 33

The term "CLV"
stands for Company Lifetime Valuation.

Question 34

Most U.S. companies in the export business are large corporations.

Question 35

Cross-cultural analysis is the comparison of similarities and differences in behavioral and physical aspects of cultures.

Question 36

Cultural empathy refers to the ability to understand the inner logic and coherence of other ways of life and refrain from judging other value systems.

Question 37

Ethnographics refers to written representations of the lifestyles and social nuances of groups.

Question 38

Intermarket segmentation is the identification of groups of customers who transcend traditional market or geographic boundaries.

Question 39

Intermarket segmentation involves segmenting a market based on where people live.

Question 40

The primary challenge for international marketing programs is to build the core of the marketing strategy on the differences between countries.

Question 41

Global advertising campaigns focus on sending the same message to consumers around the world.

Question 42

Back-translation attempts to achieve conceptual equivalency between messages in two languages.

Question 43

Coined brand names such as Xerox and Exxon are very effective in a global market because of their ease of translation.

Question 44

A firm pursuing a customer-centric focus would be involved in all of the following except:

A) producing new or improved products
B) utilizing evolving marketing methods
C) focusing on new or changing target markets
D) improving financial efficiencies
E) All of the above are areas in which a customer-centric firm is involved.

Question 45

Having a customer-centric organization means that a firm has which of the following characteristics?

A) System-wide simultaneous training
B) Customer-based metrics
C) Cross-function integration
D) Shared vision and values
E) All of the above are characteristics of a customer-centric organization.

Question 46

Value is:

A) money
B) the difference between what consumers give up for a product and what they pay
C) the benefits consumers receive from the product
D) less than product quality
E) None of the above.

Question 47

____ involves the allocation of resources to develop and sell products or services that consumers will perceive to provide more value then competitive products or services.

A) Market analysis
B) Market segmentation
C) Marketing strategy
D) Market diversification
E) Implementation

Question 48

Marketing strategy is a process that involves which of the following areas of strategy formulation and implementation?

A) Brand strategy
B) Market analysis
C) Market segmentation
D) A and C
E) A, B, and C

Question 49

Consumer analysis should include all of the following except:

A) consumer trends
B) communication methods to reach target markets
C) global consumer markets
D) models to predict purchase and consumption patterns
E) It should include all of the above.

Question 50

Market analysis should include all of the following except:

A) the consumer
B) the company
C) competitors
D) the legal environment
E) It should include all of the above.

Question 51

To gain a competitive advantage in today's environment, a firm should develop and communicate which of the following components to consumers?

A) Brand
B) Price
C) Product features
D) A and B
E) A, B, and C

Question 52

For a new product to avoid failure in today's market and be successful it must:

A) satisfy the needs, wants, and objectives of the management team.
B) satisfy the objectives of the company's shareholders.
C) perform in a manner that is comparable to existing products on the market.
D) provide the consumer with all of the benefits and product characteristics offered by the leading competitive brand.
E) None of the above.

Question 53

____ is an understanding of consumers' expressed and unspoken needs.

A) Consumer analysis
B) Consumer focus
C) Consumer intuition
D) Consumer insight
E) None of the above.

Question 54

When marketers study the consumer environment, they would look at all of the following except:

A) demographic trends
B) personal and group influences
C) knowledge, attitudes, and motivations
D) They would look at all of the above.

Question 55

Firms should anticipate which of the following from their competitors?

A) Product giveaways
B) Advertising blitzes
C) Price cuts
D) B and C
E) All of the above.

Question 56

The process of identifying a group of people similar in one or more ways is called:

A) Market research
B) Target marketing
C) Market analysis
D) Market segmentation
E) None of the above.

Question 57

A group of consumers with similar needs and behavior that differs from those of the entire mass market is called a:

A) Market niche
B) Market segment
C) Mass market
D) Market unit
E) Target market

Question 58

____ occurs when an organization chooses to market and sell the same product and service to all consumers.

A) Niche marketing
B) Market aggregation
C) Market consolidation
D) Mass market customization
E) Target marketing

Question 59

Factors leading to the demise of mass marketing include:

A) consumer affluence
B) manufacturing technology
C) multiple distribution channels
D) Only A and B
E) All of the above are factors.

Question 60

Which of the following is not a variable used for segmenting consumer markets?

A) Demographics
B) Psychographics
C) Purchase behavior
D) Geographical characteristics
E) All of the above are variables used for segmenting consumer markets.

Question 61

Customizing goods or services for individual customers in high volumes and at relatively low costs is known as:

A) target marketing
B) niche marketing
C) mass marketing
D) mass customization
E) niche customization

Question 62

Which is not a factor in determining the attractiveness of a market segment?

A) Measurability
B) Marketability
C) Accessibility
D) Substantiality
E) Congruency

Question 63

The ability to obtain information about the size nature and behavior of the market segment refers to:

A) Measurability
B) Marketability
C) Accessibility
D) Substantiality
E) Congruency

Question 64

The degree to which a market can be reached is called:

A) Measurability
B) Marketability
C) Accessibility
D) Substantiality
E) Congruency

Question 65

The size of the market refers to:

A) Measurability
B) Marketability
C) Accessibility
D) Substantiality
E) Congruency

Question 66

How similar members are to each other refers to:

A) Measurability
B) Marketability
C) Accessibility
D) Substantiality
E) Congruency

Question 67

The total bundle of utilities obtained by consumers in the exchange process is called the:

A) Price
B) Promotion
C) Product
D) Prestige
E) Place

Question 68

In the 4 P's that comprise the marketing mix, product refers to:

A) goods
B) services
C) tangible and intangible attributes
D) A and B
E) A, B, and C

Question 69

In the 4 P's that comprise the marketing mix, ____ is when the firm decides on the most effective outlets through which to sell their products and how best to get them there.

A) position
B) promotion
C) product
D) place
E) location

Question 70

The total bundle of disutilities given up by consumers in exchange for a product is the:

A) Price
B) Promotion
C) Product
D) Prestige
E) Place

Question 71

In the 4 P's that comprise the marketing mix, price refers to the disutilities given up by consumers. These disutilities include:

A) cash or credit card debt.
B) time or inconvenience.
C) psychological risk.
D) A and B only
E) A, B, and C

Question 72

According to consumer research, which of the following prices would be most likely to evoke perceptions of high quality?

A) $30.00
B) $29.98
C) $25.50
D) $29.75
E) $27.99

Question 73

In the 4 P's that comprise the marketing mix, promotion refers to:

A) advertising and public relations.
B) sales promotion.
C) price.
D) A and B
E) A, B and C

Question 74

Which of the following cannot be viewed as a brand?

A) Firms
B) Institutions
C) People
D) Service
E) All of the above can be viewed as a brand.

Question 75

The functional elements of a brand does not include:

A) Quality
B) Performance
C) Logistics
D) Service
E) All of the above are functional elements of a brand.

Question 76

The emotional elements of a brand includes:

A) Image
B) Personality
C) Style
D) Evoked feelings
E) All of the above.

Question 77

Which is not one of the seven R's of the marketing mix?

A) Resources
B) Reliability
C) Rate
D) Retailer
E) Repetitiveness

Question 78

Of the seven R's, which one is concerned with dependency on the supply chain?

A) Resources
B) Reliability
C) Rate
D) Retailer
E) Repetitiveness

Question 79

Of the seven R's, which one is concerned with speed to market?

A) Resources
B) Reliability
C) Rate
D) Retailer
E) Repetitiveness

Question 80

Which of the following would not strengthen customer loyalty?

A) Instituting a total quality control policy
B) Building realistic expectations
C) Providing guarantees
D) Soliciting customer feedback
E) All of the above should strengthen customer loyalty.