Deck 1: Marketing: Managing Profitable Customer Relationships

Question 1

According to the simple five-step model of the marketing process,a company needs to ________ before designing a customer-driven marketing strategy.

A) determine how to deliver superior value
B) build profitable relationships with customers
C) use customer relationship management to create full partnerships with key customers
D) understand the marketplace and customer needs and wants
E) construct key components of a marketing program

Answer 1

understand the marketplace and customer needs and wants

Question 2

Which of the following is the set of benefits a company promises to deliver to customers to satisfy their needs?

A) a money-back guarantee
B) low pricing
C) customer service
D) a value proposition
E) an attribute

Answer 2

a value proposition

Question 3

You are preparing a combination of products,services,information,and experiences to a market to satisfy needs and wants.What are you preparing?

A) value proposition
B) demand satisfaction
C) tactical plan
D) marketing offer
E) strategy

Answer 3

marketing offer

Question 4

________ is defined as is the process by which companies create value for customers and build strong customer relationships to capture value from customers in return.

A) Selling
B) Advertising
C) Bartering
D) Marketing
E) Negotiating

Question 5

Many sellers make the mistake of paying more attention to the specific products they offer than to the benefits and experiences produced by these products.These sellers suffer from ________.

A) selling myopia
B) marketing management
C) marketing myopia
D) value proposition
E) the product concept

Question 6

All of the following are accurate descriptions of modern marketing EXCEPT which one?

A) Marketing is the creation of value for customers.
B) Marketing is managing profitable customer relationships.
C) Selling and advertising are synonymous with marketing.
D) Marketing involves satisfying customers' needs.
E) Marketing is used by for-profit and not-for-profit organizations.

Question 7

According to the production concept,consumers will favor products that are ________ and ________.

A) satisfying; quality focused
B) advertised; affordable
C) in high demand; hard to find
D) segmented; convenient
E) available; affordable

Question 8

A(n)________ is the set of actual and potential buyers of a product.

A) market
B) audience
C) group
D) segment
E) exchange

Question 9

A(n)________ is some combination of products,services,information,or experiences offered to consumers to satisfy a need or want.

A) market offering
B) value proposition
C) demand satisfaction
D) need proposition
E) evoked set

Question 10

The art and science of choosing target markets and building profitable relationships with them is called ________.

A) marketing management
B) positioning
C) segmentation
D) selling
E) differentiation

Question 11

Consumer research,product development,communication,distribution,pricing,and service are all core ________ activities.

A) exchange
B) marketing
C) management
D) production
E) customer relationship management

Question 12

________ are human needs as shaped by individual personality and culture.

A) Needs
B) Wants
C) Demands
D) Values
E) Exchanges

Question 13

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

A) market segmentation
B) positioning
C) customization
D) target marketing
E) managing the marketing effort

Question 14

________ is the act of obtaining a desired object from someone by offering something in return.

A) Valuation
B) Exchange
C) Bribery
D) Value creation
E) Donation

Question 15

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 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?"

Question 16

Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain?

A) production concept
B) product concept
C) selling concept
D) marketing concept
E) societal marketing concept

Question 17

You have learned from this course that the most basic concept underlying marketing is that of ________.

A) selling and advertising
B) customer identification
C) retaining customers
D) human needs
E) fulfilling consumer wants

Question 18

Which of the following refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs?

A) selling myopia
B) marketing management
C) value proposition
D) marketing myopia
E) the product concept

Question 19

Which of the following marketing management concepts is most likely to lead to marketing myopia?

A) customer-driven marketing
B) customer-driving marketing
C) societal marketing
D) marketing
E) product

Question 20

When backed by buying power,wants become ________.

A) social needs
B) demands
C) physical needs
D) self-esteem needs
E) exchanges

Question 21

Which marketing orientation holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do?

A) product concept
B) production concept
C) selling concept
D) marketing concept
E) societal marketing concept

Question 22

According to the authors of your text,the ________ concept is a "sense and respond" philosophy rather than a "make and sell" philosophy.

A) product
B) production
C) marketing
D) retailing
E) societal marketing

Question 23

When customers don't know what they want or don't even know what's possible,the most effective strategy is ________ marketing.

A) customer-driven
B) customer-driving
C) societal
D) production
E) product

Question 24

The three areas of consideration that should be balanced in the societal marketing concept are consumer wants,society's interests,and ________.

A) human welfare
B) want satisfaction
C) company profits
D) short-run wants
E) long-term needs

Question 25

Edmund Cheng of Wing Tai Garments used the marketing concept in his successful organization.His perspective of having a customer department in his G2000 outlets uses a(n)________ perspective..

A) customer-driven
B) external
C) inside-out
D) continuous improvement
E) traditional

Question 26

The product concept says that a company should do which of the following?

A) improve marketing of its best products
B) market only those products with high customer appeal
C) focus on the target market and make products that meet those customers' demands
D) focus on making continuous product improvements
E) make promoting products the top priority

Question 27

A firm that uses the selling concept takes a(n)________ approach.

A) outside-in
B) passive
C) inside-out
D) societal
E) customer service

Question 28

Which of the following reflects the marketing concept philosophy?

A) "We don't have a marketing department; we have a customer department."
B) "We're in the business of making and selling superior products."
C) "We build them so you can buy them."
D) "When it's profits versus customers' needs, profits will always win out."
E) "You won't find a better deal anywhere."

Question 29

The societal marketing concept seeks to establish a balance between consumer short-run wants and consumer ________.

A) short-run costs and profits
B) short-run ethics
C) long-run welfare
D) immediate health
E) value propositions

Question 30

"Build a better mousetrap and the world will beat a path to your door" reflects the ________ concept.

A) production
B) marketing
C) selling
D) product
E) target marketing

Question 31

Customer-driven marketing usually works well when ________ and when customers ________.

A) a clear need exists; are difficult to identify
B) customers know what they want; are loyal to the brand
C) a firm can deliver the goods desired; are thoroughly researched
D) a clear need exists; know what they want
E) a need exists; don't know what they want

Question 32

Which marketing orientation calls for aggressive promotional efforts and focuses on generating transactions to obtain profitable sales?

A) marketing concept
B) production concept
C) product concept
D) selling concept
E) societal marketing concept

Question 33

Which marketing orientation holds that firms must strive to deliver value to customers in a way that maintains or improves the consumer's and society's well-being?

A) marketing concept
B) selling concept
C) product concept
D) societal marketing concept
E) equity concept

Question 34

Of the following,which is the most important concept of modern marketing?

A) customer relationship management
B) e-mail advertising
C) mass marketing
D) properly trained sales people
E) low prices

Question 35

The ________ concept is aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer the most in quality,performance,and innovative features.

A) product
B) production
C) customer
D) marketing
E) promotion

Question 36

Though often criticized,the selling concept is particularly appropriate and effective with which of the following types of products?

A) convenience
B) shopping
C) specialty
D) unsought
E) demarketed

Question 37

The societal marketing concept seeks to establish a balance between consumer short-run wants and society's ________.

A) short-run costs and profits
B) short-run ethics
C) long-run welfare
D) health
E) value propositions

Question 38

Marie Ortiz enjoys her work at Futuristic Designs,Inc.Her organization understands and anticipates customer needs even better than customers themselves do and creates products and services to meet current and future wants and demands.Marie's firm practices ________ marketing.

A) customer-driven
B) customer-driving
C) relationship
D) societal
E) social

Question 39

Building,keeping,and growing profitable relationships by delivering customer value and satisfaction is called ________.

A) customer lifetime value
B) customer perceived value
C) customer relationship management
D) database marketing
E) societal marketing

Question 40

You have just taken a new position in an organization and you're learning about the job functions of your new colleagues.You observe that your marketing manager is heavily involved in the process of building and maintaining profitable customer relationships.Your marketing manager frequently speaks about the need to acquire,keep,and grow customers.Your manager is concerned with which one of the following?

A) customer divestment
B) customer-managed relationships
C) the societal marketing concept
D) partner relationship management
E) customer relationship management

Question 41

Which of the following strategies would a company most likely use to increase customer satisfaction?

A) decreasing the variety of offered services
B) divesting
C) lowering prices
D) "firing" unprofitable customers
E) limiting customer experiences with a brand

Question 42

Suzie Chan strengthens her company's connections by treating suppliers of raw materials,vendors,and distributors as partners in delivering customer value.What type of management is she practicing?

A) outside partnering
B) inside partnering
C) marketing
D) supply chain
E) customer development

Question 43

You are an assistant marketing director for a firm in a market with many low-margin customers.What type of relationship would be most profitable for you to develop with these customers?

A) full partnerships
B) basic relationships
C) basic partnerships
D) club programs
E) selective relationships

Question 44

Partner relationship management focuses on working with ________ to bring more value to customers.

A) partners inside and outside of the company
B) competitors
C) consumers
D) interest groups
E) partners outside of the company only

Question 45

Customer-perceived value is determined by a customer's ________ of the benefits and costs of a market offering relative to those of competing offers.

A) personal evaluation
B) rational expectations
C) accurate assessment
D) objective evaluation
E) emotional understanding

Question 46

It is most accurate to say that customers buy from stores and firms that offer which of the following?

A) the highest value for the dollar
B) the highest customer-perceived value
C) the highest level of customer satisfaction
D) the most attractive company image
E) the most concern for society's interests

Question 47

Through ________,many companies today are strengthening their connections to all partners,from providers of raw materials to components to final products that are delivered to final buyers.

A) supply chain management
B) direct marketing
C) partnership relationship marketing
D) customized marketing
E) equity marketing

Question 48

Lexus estimates that a single satisfied and loyal customer is worth $600,000 in lifetime
sales.Lexus' concern is an illustration of which of the following?

A) share of customer
B) market share
C) partner relationship management
D) customer lifetime value
E) market share maintenance

Question 49

When an airline goes after a "share of travel" from its customers,it is attempting to increase ________.

A) partner equity
B) share of customer
C) profit margins
D) customer-managed relationships
E) customer ownership

Question 50

Which of the following is the term for customers who make repeat purchases and tell others about their positive experiences with a product or service?

A) barnacles
B) true friends
C) butterflies
D) full partners
E) social customers

Question 51

Which of the following has contributed to the deeper,more interactive nature of today's customer relationships?

A) catalogues
B) billboards
C) social networks
D) traditional advertising
E) direct mailers

Question 52

The key to delivering customer satisfaction is to match ________ with ________.

A) company performance; the competition's performance
B) company performance; competitive prices
C) relationship building; performance tools
D) company performance; unique products
E) customer expectations; product performance

Question 53

Greater consumer control means that companies must rely more on marketing by ________ than by ________.

A) interruption; involvement
B) attraction; intrusion
C) socialization; information
D) producing; selling
E) inspiration; competition

Question 54

Pete Lim,a recent graduate of business school,has a different approach than his marketing manager,who believes in keeping customers at arm's length and using mass media advertising.Pete knows that today successful firms practice ________.

A) club marketing
B) frequency marketing
C) mass marketing
D) customer satisfaction
E) market segmentation

Question 55

Which of the following is an example of consumer-generated marketing?

A) Toyota's presence in online communities
B) Nike's Nike Plus running Web site
C) MasterCard's use of "Priceless" commercials shot by customers
D) Cathay Pacific's Asia Miles Rewards program for its best customers
E) The Mitsubishi Fast-Lane aimed at creating customer delight

Question 56

Which of the following best explains why consumers have greater power and control in today's marketplace?

A) The production concept and competition have lowered prices.
B) Implementation of the product concept has resulted in continually improving products.
C) Customer-driven marketing creates products and services that meet customers' future needs.
D) More companies are implementing societal marketing and weighing long-term costs and benefits.
E) Through new communication technologies, customers have more access to information and more methods of sharing their opinions with other customers.

Question 57

The final step in the marketing process is ________.

A) capturing value from customers
B) creating customer loyalty
C) creating customer lifetime value
D) understanding the marketplace
E) designing a customer-driven marketing strategy

Question 58

The marketing world is embracing ________ because consumers can wield greater power and control in the marketplace through communication technologies.

A) partner relationship management
B) supply chain management
C) customer relationship management
D) market segmentation
E) target marketing

Question 59

In today's world,marketing should be done by ________ employees in an organization.

A) only marketing
B) only marketing, sales, and customer-support
C) only sales and technology
D) only management and marketing
E) all

Question 60

A room upgrade offered by a hotel to a guest who often stays in the hotel is an example of a ________.

A) frequency marketing program
B) basic customer relationship
C) club marketing program
D) partner relationship management technique
E) structural benefit

Question 61

As part of the rapid globalization of today's economy,companies are selling more locally produced goods in international markets and ________.

A) taking a local view of their industry
B) purchasing more supplies abroad
C) reducing competition within their industry
D) downplaying concerns for social responsibility
E) competing solely in traditional marketplaces

Question 62

Beyond simply retaining good customers,marketers want to constantly increase their "share of customer." What does this mean in marketing terms?

A) Marketers want to increase their market share.
B) Marketers want to increase the share they get of the customer's purchasing in their product categories.
C) Marketers want to increase the profit margin with this target market.
D) Marketers want to continuously increase their customers' levels of satisfaction.
E) Marketers want to turn satisfied customers into delighted customers.

Question 63

Marketing has also become a major part of the strategies of many _____________ organizations,such as colleges,hospitals,museums,zoos,symphony orchestras,and even churches.

A) luxury brand
B) profit driven
C) not-for-profit
D) socially responsible
E) government

Question 64

An organic farmer has identified three distinct groups who might be interested in his products: vegetarians,people who are concerned about chemicals in their foods,and people who consider themselves innovators and trendsetters.These three groups are examples of ________.

A) marketing mixes
B) market segments
C) value propositions
D) mass markets
E) marketing intermediaries

Question 65

Which of the following is most essential to any definition of marketing?

A) demand management
B) the production concept
C) customer relationships
D) making a sale
E) making a profit

Question 66

________ is one of the best ways to increase share of customer.

A) Targeting new customers
B) Using bait and switch
C) Cross-selling
D) Divesting
E) Partnership marketing

Question 67

Since the global economic downturn in 2008,marketers have been emphasizing the ________ of their products more than ever.

A) image
B) value
C) personality
D) safety
E) uniqueness

Question 68

Alfia,a team leader in charge of customer relationship management,is planning strategies for improving the profitability of her firm's least profitable but loyal customers.She is also examining methods for "firing" customers in this group who cannot be made profitable.To which of the following customer relationship groups do these customers belong?

A) butterflies
B) true friends
C) strangers
D) barnacles
E) short-term customers

Question 69

Customers can be classified into four relationship groups,according to their profitability and projected loyalty.Which type of customers have the highest profit potential and strong loyalty?

A) barnacles
B) strangers
C) butterflies
D) true friends
E) big fish

Question 70

Greg Williams now has the buying power to purchase the computer system he has wanted for the last six months.Greg's want now has become a(n)________.

A) need
B) necessity
C) demand
D) exchange
E) transaction

Question 71

Jolene's firm markets preplanning services for a mortician.She finds that most of her target market wants to avoid discussing their future funeral needs,and she must somehow first get their attention.Jolene's firm most likely practices the ________.

A) production concept
B) marketing concept
C) selling concept
D) social marketing concept
E) societal marketing concept

Question 72

Which of the following statements about the Internet is most accurate?

A) Companies are cautiously using the Internet to build closer relationships with customers and marketing partners alike.
B) After the dot-com meltdown of 2000, fewer consumers are buying products and services online.
C) The Internet makes it easy for consumers to view, interact with, and create marketing content.
D) Consumer e-commerce looks promising, but business-to-business e-commerce is declining.
E) Web 2.0 involves a less balanced approach to online marketing than the original dot-com boom did.

Question 73

In building customer and partner relationships,companies must harness marketing technology,take advantage of global opportunities,and ensure that they act in __________________________________.

A) an economically conscious way
B) a customer friendly way
C) a way that decreases energy usage
D) an ethical and socially responsible way
E) a way that quickly regains customer confidence

Question 74

A potentially highly profitable,short-term customer is a ________.

A) true friend
B) butterfly
C) stranger
D) barnacle
E) true believer

Question 75

Which of the following is the total combined customer lifetime values of all a company's current and potential customers?

A) share of customer
B) customer lifetime value
C) customer equity
D) profitability
E) share of market

Question 76

Which of the following is currently growing at a healthy rate?

A) consumer-generated marketing
B) online consumer buying
C) mass media marketing
D) societal marketing
E) word-of-mouth marketing

Question 77

Cathy's Clothes is a small retail chain successfully selling women's clothing and accessories with a profitable focus on buyers who have relatively modest means.This is an example of ________.

A) convenience
B) social marketing
C) societal marketing
D) target marketing
E) value packing

Question 78

The ultimate aim of customer relationship management is to produce ________.

A) customer equity
B) market share
C) sales volume
D) a reliable database
E) higher profit margins

Question 79

Amazon.com leverages relationships with its 35 million customers by offering them music,videos,gifts,toys,consumer electronics,and office products,among other items.Based on previous purchase history,the company recommends related CDs,books,videos,or other products that might interest a customer.This most directly helps Amazon.com capture a greater ________.

A) partner value
B) share of customer
C) profit margin
D) social network
E) customer loyalty

Question 80

These days most traditional "brick-and-mortar" companies have become __________
companies.

A) "click"
B) online purchase
C) technology based
D) "mortar"
E) information based