Question 1

After World War II, consumers were able to make purchase decisions based more on their wants and desires than necessity. As a result, more companies discovered the benefits of
A)personal selling.
B)economies of scale.
C)marketing.
D)mass customization.
E)online shopping.

Accepted Answer

With consumers having a choice to make purchase decisions based on their wants and desires rather than just necessity, companies had to start promoting their products in ways that would appeal to these desires. This is where marketing comes in, as companies can create campaigns that generate interest and desire for their products, thus increasing sales. Personal selling and economies of scale were important before and after World War II, but marketing became more essential in the post-war period. Mass customization and online shopping are more recent developments that were not significant during the post-war boom.

Question 2

Value cocreation refers to
A)outsourcing component parts for production processes.
B)using multiple media sources in a promotional campaign.
C)customers acting as collaborators on a product.
D)relying on fewer products to create a profit.
E)the lifelong relationship between customer and company.

Accepted Answer

Value cocreation refers to collaborating with customers to create value through joint activities such as product design, development, and service delivery. This approach involves engaging customers as collaborators rather than just passive consumers.

Question 3

The business philosophy that relies on a set of strategies, programs, and systems that focus on identifying and building loyalty among a firm's most valued customers is called
A)GDP.
B)OEM.
C)GNI.
D)4Ps
E)CRM.

Accepted Answer

The given description matches the concept of Customer Relationship Management (CRM) which focuses on identifying and building long-term relationships with the most valued customers of a firm. GDP (A) stands for Gross Domestic Product and is a measure of a country's economic performance. OEM (B) stands for Original Equipment Manufacturer and refers to a company that produces components or parts that are used in another company's product. GNI (C) stands for Gross National Income and is a measure of the income earned by a country's residents and businesses. 4Ps (D) stands for Product, Price, Promotion, and Place, which are the key elements of a firm's marketing mix strategy.

Question 4

Joya is the new restaurant manager in a major hotel. When considering which changes would most likely increase the restaurant's value to customers, Joya should provide her customers the menu items that they want and the quality service that they deserve, as well as,
A)a better dining experience than what her competitors can give.
B)increase prices to increase revenue.
C)offset higher hotel rates with lower restaurant prices.
D)reduce customer expectations through reduced service.
E)minimize menu items but increase the price of popular entrees.

Accepted Answer

Providing a better dining experience than competitors can give would be the best choice to increase the restaurant's value to customers. This could include improving the ambiance and decor, offering unique menu items, and providing exceptional customer service. Increasing prices or reducing service would likely have negative impacts on customer satisfaction and loyalty. Offsetting hotel rates with lower restaurant prices or minimizing menu items but increasing prices could also have negative effects on customer perception and value.

Question 5

During the ________ era, manufacturers and retailers recognized they needed to give their customers greater value than their competitors did.
A)production-oriented
B)sales-oriented
C)market-oriented
D)value-based marketing
E)retailing-oriented

Accepted Answer

During the value-based marketing era, manufacturers and retailers recognized the importance of offering their customers greater value than their competitors, focusing on customer satisfaction and building relationships based on value.

Question 6

Which statement reflects the philosophy of the market-oriented era?
A)A good product will sell itself.
B)The customer is king.
C)Firms should take advantage of a seller's market.
D)Advertising and personal selling should be emphasized in order to make the sale.
E)Firms should focus on value.

Accepted Answer

The philosophy of the market-oriented era focused on satisfying customer needs and wants, making the customer the center of the marketing process. This is reflected in the statement "The customer is king."

Question 7

Jonni has just started with a travel agency and has been offering clients and prospective clients a range of packaged tours. She is concerned because the commissions she is earning on her sales are lower than she had hoped. Her colleague Andrew, who has been with the agency for several years, is having a great deal of success by working closely with the clients, seeking their ideas, and building customized tour packages for each one based on their suggestions. Andrew's approach is based on
A)transaction-oriented marketing.
B)premium pricing.
C)economies of scale.
D)special incentives from tour operators.
E)value cocreation.

Accepted Answer

Andrew's approach is based on value cocreation, where he involves the clients in the process of creating their own tour packages based on their suggestions and preferences. This approach leads to customized and unique experiences for each client, which can justify higher prices and ultimately result in greater commissions for the travel agency.

Question 8

The prevailing marketing strategy of the ________ era was to find customers for inventories that went unsold.
A)production-oriented
B)sales-oriented
C)market-oriented
D)value-based marketing
E)retailing-oriented

Accepted Answer

During the sales-oriented era, the focus was on selling products that were already made, rather than making products based on what the market wanted. This approach often involved finding customers for inventories that went unsold, emphasizing aggressive sales techniques.

Question 9

Eleanor works for a small computer software company. Her boss is constantly improving the company's products but neglects customers, billing, and promoting the company. Her boss's actions are indicative of the ________ era of marketing.
A)production-oriented
B)sales-oriented
C)market-oriented
D)value-based marketing
E)retailing-oriented

Accepted Answer

In the production-oriented era of marketing, the focus is on improving the quality of the product and increasing its availability while neglecting the needs and desires of customers, as seen in Eleanor's boss's actions.

Question 10

From a customer's perspective, value reflects
A)the need for value and the perception of value.
B)explicit versus implicit value.
C)the relationship of benefits to costs.
D)the balance between needs and wants.
E)the need for product improvement.

Accepted Answer

Value, from a customer's perspective, is determined by the relationship between the benefits they receive from a product or service and the cost they pay for it. This means that they weigh the perceived benefits against the perceived costs, and decide whether or not the product or service is worth the price. Therefore, choice C is the best answer.

Question 11

During the ________ era, firms had excess production capacity and used personal selling and advertising to generate customers.
A)production-oriented
B)sales-oriented
C)market-oriented
D)value-based marketing
E)retailing-oriented

Accepted Answer

During the sales-oriented era, firms faced excess production capacity and used personal selling and advertising to generate customers. The main focus was on aggressive sales techniques and high-pressure tactics to persuade customers to buy the products.

Question 12

What is the focus of a firm that develops a relational orientation with its customers?
A)relating product knowledge to customers' interests
B)gaining profit from each customer transaction
C)generating profits quickly before customers shop elsewhere
D)working with competitors to simplify product offerings for customers
E)gaining lifetime profitability from customer relationships

Accepted Answer

A relational orientation focuses on building long-term relationships with customers in order to gain their loyalty and lifetime profitability. This means that the focus is not just on one transaction or immediate profits, but on cultivating a relationship that will lead to sustained business over time. Relating product knowledge to customers' interests may be a part of this strategy, but the ultimate goal is to build trust and loyalty with customers. Gaining profit from each customer transaction and generating profits quickly are short-term strategies, while working with competitors may not necessarily be a focus for a firm with a relational orientation.

Question 13

Near the end of the model year, the Luxury for Less automobile dealership had an unusually high inventory level. The manager increased her advertising spending and gave extra incentives to the sales staff. These actions are similar to those in which marketing era?
A)production-oriented
B)sales-oriented
C)market-oriented
D)value-based marketing
E)retailing-oriented

Accepted Answer

The actions of increasing advertising spending and giving extra incentives to sales staff indicate a sales-oriented approach, which focuses on selling existing inventory rather than developing customer needs and preferences.

Question 14

A local art gallery keeps information on its customers' artist and art style preferences. The gallery uses this information to inform the customers when new pieces arrive from their favorite artists and targets them with special promotions. In this way, the gallery is using ________ to build loyalty among its customers.
A)value cocreation
B)customer relationship management
C)transactional marketing
D)B2B marketing
E)the supply chain

Accepted Answer

The gallery is using customer relationship management (CRM) by collecting and utilizing customer preference data to create a personalized experience and build loyalty. This approach focuses on building long-term relationships with customers by understanding their needs and preferences.

Question 15

If a firm adopts a CRM business philosophy, it most likely has a(n)________ orientation with its customers.
A)transactional
B)external
C)relational
D)internal
E)divisional

Accepted Answer

A CRM (Customer Relationship Management) business philosophy is focused on building and maintaining long-term relationships with customers, rather than simply completing individual transactions. Therefore, a firm that adopts a CRM business philosophy would have a relational orientation with its customers.

Question 16

Carter sells consumer electronics. He knows his customers weigh the costs versus the benefits associated with the different options available. He decides which products to offer and what prices to charge based on the way his customers think. Carter operates as if he were in the ________ era.
A)production-oriented
B)sales-oriented
C)market-oriented
D)value-based marketing
E)retailing-oriented

Accepted Answer

Carter's approach of deciding which products to offer and what prices to charge based on customer perceptions of value and their cost-benefit analysis aligns with the principles of value-based marketing. This era focuses on creating more value for customers than the competitors and using that value as the key selling point and pricing basis.

Question 17

To build relationships, firms focus on the lifetime ________ of the relationship, not how much money is made during each transaction.
A)cost
B)profitability
C)investment
D)expense
E)worth

Accepted Answer

Firms focus on the lifetime profitability of the relationship, which means how much money can be made from the customer over the course of their entire relationship with the firm, not just from one transaction. This approach emphasizes the importance of repeat business and customer loyalty in generating revenue.

Question 18

After major storms, many ethical home repair and building supply businesses continue to charge pre-storm prices to their customers, even though they know they can charge more due to the huge increase in demand for their services and products. These firms probably recognize that
A)they can make more money from government contracts than from sales to customers.
B)a transactional orientation is the key to long-term profitability.
C)none of their competitors would be raising prices.
D)lifetime profitability of relationships matters more than profits from a particular transaction.
E)if they raised prices they would be in violation of Commerce Department regulations.

Accepted Answer

Ethical home repair and building supply businesses recognize that maintaining long-term relationships with their customers is more important than making a quick profit from a particular transaction, and therefore choose not to raise prices after major storms. They understand that by charging fair prices, they can build trust and loyalty with their customers, which will result in repeat business and positive word-of-mouth advertising. This approach is more sustainable and profitable in the long run than charging inflated prices for short-term gain.

Question 19

Seraphina studies her customer profiles, marketing research data, complaints, and other information for the primary purpose of discovering her customers' wants and needs. Seraphina's actions are indicative of the ________ era.
A)production-oriented
B)sales-oriented
C)market-oriented
D)value-based marketing
E)retailing-oriented

Accepted Answer

Seraphina's focus on understanding her customers' wants and needs indicates that she is operating in a market-oriented era, where the customer is at the center of marketing activities. The production-oriented era was focused on maximizing production efficiency, the sales-oriented era emphasized aggressive sales techniques, and value-based marketing is a newer approach that focuses on creating customer value and building relationships. The term "retailing-oriented" is not a recognized era of marketing.

Question 20

A relational orientation is based on the philosophy that buyers and sellers develop
A)a complete understanding of one another's needs.
B)a long-term relationship.
C)a price-value comparison matrix.
D)supply chain synergy.
E)a marketing value transaction focus.

Accepted Answer

A relational orientation is based on the belief that buyers and sellers develop a long-term relationship, rather than just a transactional one. This means that both parties work toward mutual trust and respect, and may involve things like open communication, personalized service, and cooperation in problem-solving.

Quiz 1: Overview of Marketing

After World War II, consumers were able to make purchase decisions based more on their wants and desires than necessity. As a result, more companies discovered the benefits of

Value cocreation refers to

The business philosophy that relies on a set of strategies, programs, and systems that focus on identifying and building loyalty among a firm's most valued customers is called

Joya is the new restaurant manager in a major hotel. When considering which changes would most likely increase the restaurant's value to customers, Joya should provide her customers the menu items that they want and the quality service that they deserve, as well as,

During the ________ era, manufacturers and retailers recognized they needed to give their customers greater value than their competitors did.

Which statement reflects the philosophy of the market-oriented era?

The prevailing marketing strategy of the ________ era was to find customers for inventories that went unsold.

Eleanor works for a small computer software company. Her boss is constantly improving the company's products but neglects customers, billing, and promoting the company. Her boss's actions are indicative of the ________ era of marketing.

From a customer's perspective, value reflects

During the ________ era, firms had excess production capacity and used personal selling and advertising to generate customers.

What is the focus of a firm that develops a relational orientation with its customers?

Near the end of the model year, the Luxury for Less automobile dealership had an unusually high inventory level. The manager increased her advertising spending and gave extra incentives to the sales staff. These actions are similar to those in which marketing era?

If a firm adopts a CRM business philosophy, it most likely has a(n) ________ orientation with its customers.

Carter sells consumer electronics. He knows his customers weigh the costs versus the benefits associated with the different options available. He decides which products to offer and what prices to charge based on the way his customers think. Carter operates as if he were in the ________ era.

To build relationships, firms focus on the lifetime ________ of the relationship, not how much money is made during each transaction.

After major storms, many ethical home repair and building supply businesses continue to charge pre-storm prices to their customers, even though they know they can charge more due to the huge increase in demand for their services and products. These firms probably recognize that

Seraphina studies her customer profiles, marketing research data, complaints, and other information for the primary purpose of discovering her customers' wants and needs. Seraphina's actions are indicative of the ________ era.

A relational orientation is based on the philosophy that buyers and sellers develop