Question 1

Customer costs include anything the buyer must give up in order to obtain the benefits the product provides. The most obvious customer cost is
A) risk.
B) time.
C) monetary price.
D) effort.
E) availability.

Accepted Answer

The monetary price is the amount of money that the customer must pay to acquire the product, making it the most obvious cost to the buyer.

Question 2

If a family spends $2,000 a month on goods and services, how much of that $2,000 goes for marketing activities?
A) $2,000
B) $1,500
C) $1,000
D) $500
E) $0

Accepted Answer

Marketing costs typically account for about 50% of the retail price of goods and services, so if a family spends $2,000, approximately $1,000 of that would go towards marketing activities.

Question 3

Wonder introduced a new bread made with light whole wheat and packaged in smaller loaves as a response to the number of health-conscious customers who live alone. In this case, Wonder was most likely following the ________.
A) selling concept
B) production concept
C) marketing concept
D) customer concept
E) retailing concept

Accepted Answer

The marketing concept focuses on meeting the needs and wants of customers, and it seems that Wonder developed the new bread in response to the demand of health-conscious customers who live alone.

Question 4

Scott, a buyer for a medium-sized company, is assessing the value of competing software products for use in his firm. Which of the following would not be a customer benefit considered in his determination of this product's value?
A) Speed of delivery
B) Ease of installation
C) Availability of technical support
D) Availability of training assistance
E) Monetary price

Accepted Answer

Monetary price is not a customer benefit, but rather a cost. The other options listed - speed of delivery, ease of installation, availability of technical support, and availability of training assistance - are all potential benefits for the customer.

Question 5

Health Care Systems, Inc. rolls out an innovative nurse-on-call information system available online. The product is not widely accepted because patients don't see the need for such a service. This situation represents a failure in which aspect of implementing the marketing concept? Technological advancement
A) An information system to determine customer needs
B) The organizational structure
C) Top-management commitment
D) Technological advancement
E) Scanning corporate capabilities

Accepted Answer

This situation represents a failure in implementing the marketing concept of developing an information system to determine customer needs. The product was not widely accepted because patients did not see the need for it. This suggests that the company did not fully understand their target market's needs and preferences before developing and launching the product.

Question 6

Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as
A) marketing synthesis.
B) relationship marketing.
C) a marketing orientation.
D) the marketing concept.
E) strategic marketing.

Accepted Answer

Relationship marketing is all about building long-term relationships between buyers and sellers. In this approach, the emphasis is on creating value for all parties involved through the establishment of mutually beneficial exchanges. The goal is to create a loyal customer base that will continue doing business with the seller over time, resulting in increased revenue and profitability for both parties. This approach is different from the traditional transactional approach, where the focus is on maximizing short-term profits through individual transactions.

Question 7

Which of the following would not be a customer cost considered in determination of product value?
A) Product's purchase price
B) Time spent purchasing the product
C) Effort spent purchasing the product
D) Benefits received in the exchange for the products
E) Risk of purchasing the product

Accepted Answer

Benefits received in the exchange for the products are not considered a customer cost but rather a benefit received in exchange for the customer's purchase. The other options are all potential customer costs that can affect the perceived value of a product.

Question 8

The equation a buyer applies to assess a product's value is
A) value = monetary price − customer benefits.
B) value = customer costs − customer benefits.
C) value = customer benefits − customer costs.
D) value = customer benefits − monetary price.
E) value = customer benefits − time and effort.

Accepted Answer

Customers assess a product's value by comparing the benefits they receive from the product with the costs they have to pay for it. The costs include monetary costs, time, and effort whereas the benefits include functional benefits, emotional benefits, and social benefits. The formula for value is therefore: value = customer benefits - customer costs.

Question 9

Long-term relationships with profitable customers is the key objective of
A) personal selling.
B) customer relationship management.
C) production-oriented firms.
D) e-marketing.
E) distribution channels.

Accepted Answer

Customer relationship management (CRM) aims to create and maintain long-term relationships with profitable customers through various strategies such as personalized communication, tailored offerings, after-sales support, and loyalty programs. CRM helps businesses to enhance customer satisfaction, retention, and loyalty, and ultimately drive profitability and growth. Personal selling, production-oriented firms, e-marketing, and distribution channels may also contribute to customer retention, but they do not provide a holistic and integrated approach to managing customer relationships as CRM does.

Question 10

T-Mobile implements a program of texting its current customers to find out what changes they would like to see in the services provided. The firm is exhibiting characteristics associated with which of the following orientations?
A) Production
B) Sales
C) Market
D) Social
E) Development

Accepted Answer

T-Mobile is exhibiting characteristics of market orientation. Market-oriented companies focus on the needs and wants of the customers and develop products and services to satisfy those needs. By texting its current customers to find out what changes they would like to see in the services provided, T-Mobile is collecting information to better serve their customers and stay ahead of their competitors.

Question 11

A junior marketing executive at MegaGrain Cereals suggests increasing the package size and price of its best-selling brand without increasing the amount of cereal inside the box. Her superior warns that this might be a bad idea because MegaGrain's long-term survival, like most companies, depends on
A) cost-cutting measures.
B) continually selling to new customers and markets.
C) creating and maintaining satisfying exchange relationships.
D) high-volume, low-margin sales.
E) increasing shelf space for their brands.

Accepted Answer

MegaGrain's long-term survival depends on creating and maintaining satisfying exchange relationships with its customers. Increasing package size and price without increasing the amount of cereal inside might lead to customer dissatisfaction and harm the exchange relationship. Continually selling to new customers and markets may also be important, but creating and maintaining satisfying exchange relationships is the key to a company's long-term survival. The other options, such as cost-cutting measures, high-volume low-margin sales, and increasing shelf space, may offer short-term benefits but do not guarantee long-term survival.

Question 12

____ is a customer's subjective assessment of benefits relative to costs in determining the worth of a product.
A) Marketing orientation
B) Monetary price
C) Product assessment
D) Price assessment
E) Value

Accepted Answer

The definition provided perfectly matches the concept of value, which refers to the perception of the customer regarding the benefits that a product or service provides compared to its cost. The other options are not suitable answers because they either do not address the customer's perspective directly (marketing orientation, product assessment, price assessment) or focus exclusively on the price component of the value equation (monetary price).

Question 13

Taco Bell is introducing some of its products into supermarkets, vending machines, college campuses, and other locations to increase its product availability and convenience. One reason Taco Bell is doing so is to
A) decrease customer benefits.
B) increase customer costs.
C) increase customer value.
D) increase distribution expenses.
E) decrease promotion expenses.

Accepted Answer

Taco Bell is introducing its products into various locations to increase customer value by offering greater convenience and accessibility. This can lead to increased customer satisfaction and loyalty.

Question 14

Which of the following best describes the acceptance of the marketing concept by American organizations?
A) The marketing concept has yet to be fully accepted by all organizations.
B) All organizations fully utilize the marketing concept to run their businesses.
C) Nearly half of all organizations are still in the sales orientation and have not implemented the marketing concept.
D) Most organizations have really not accepted the marketing concept because of its many costs and problems.
E) Although American organizations fully accept the marketing concept, many foreign companies do not.

Accepted Answer

While the marketing concept has gained widespread acceptance, there are still some organizations that have yet to fully embrace it. Additionally, some companies may struggle to fully implement the marketing concept due to various challenges and costs associated with it.

Question 15

Initiatives intended to improve an organization's positive impact on society and the natural environment are called
A) environmental marketing.
B) green marketing.
C) socially-responsible marketing.
D) energy-conscious marketing.
E) socially-conscious marketing.

Accepted Answer

The answer of Initiatives intended to improve an organization's positive...

Question 16

A market orientation is an organization-wide effort that includes all of the following activities except
A) researching customers' needs.
B) focusing on the marketing department only.
C) generating marketing intelligence for use in the organization.
D) being responsive to customers' ever-changing wants and needs.
E) disseminating marketing intelligence across departments within the organization.

Accepted Answer

The statement "focusing on the marketing department only" is not consistent with a market orientation. A market orientation involves an organization-wide effort in which all departments work together to understand and meet customers' needs. Therefore, option B is not correct.

Question 17

Ben is responsible for managing the customer satisfaction of Hampton Inn motel guests. Ben is currently analyzing the customer relationship management (CRM) program at Hampton Inn and is contemplating where he should begin making changes. Which of the following would be the beginning of a CRM program, and therefore the area Ben should consider first?
A) getting rid of the most unprofitable customers.
B) offering new types of hotel rooms for frequent guests.
C) expanding the number and locations of Hampton Inns.
D) providing information to customers through the Web, Facebook, or in person.
E) increasing the promotion budget with a new sweepstakes for frequent customers.

Accepted Answer

The beginning of a CRM program should focus on providing information to customers through various channels such as the Web, social media, or in-person interactions. This allows customers to feel more connected to the brand and builds trust, which is crucial for customer satisfaction. Getting rid of unprofitable customers or expanding locations can come later in the CRM process once a strong foundation has been built. Offering new hotel rooms or increasing promotion budgets can be effective ways to retain current customers, but they should not be the primary focus of the beginning of a CRM program.

Question 18

From the 1920s to the 1950s, demand for manufactured goods decreased, leading to the ____ orientation.
A) production
B) market
C) revolutionary
D) sales
E) reduction

Accepted Answer

During this period, the decrease in demand for manufactured goods led businesses to focus on selling what they produced, thus leading to the sales orientation. This approach emphasizes aggressive sales techniques to overcome consumer resistance and convince them to buy.

Question 19

Which of the following is not an example of the implementation of the marketing concept?
A) Jimmy Dean's Sausage introduces turkey sausage patties for a healthier alternative to pork.
B) Ford asks customers to vote online for a new color for next year's Ford Focus.
C) Burger King reduces the labor costs to produce its sausage-egg biscuits.
D) Microsoft offers rewards for users who can find flaws in its new software.
E) Volkswagen introduces pop-up rollover bars in its convertibles to protect its consumers in the event of a serious collision.

Accepted Answer

Burger King reducing labor costs does not demonstrate the implementation of the marketing concept, which emphasizes meeting customer needs and wants while also achieving organizational goals.

Question 20

During the Industrial Revolution demand for manufactured goods was
A) weak.
B) nonexistent.
C) declining.
D) strong.
E) mediocre.

Accepted Answer

The Industrial Revolution was characterized by an increase in demand for manufactured goods due to population growth, urbanization, and improved transportation. As factories and production methods became more efficient, the supply of goods increased, leading to a further increase in demand.

Quiz 1: An Overview of Strategic Marketing

Customer costs include anything the buyer must give up in order to obtain the benefits the product provides. The most obvious customer cost is

If a family spends $2,000 a month on goods and services, how much of that $2,000 goes for marketing activities?

Wonder introduced a new bread made with light whole wheat and packaged in smaller loaves as a response to the number of health-conscious customers who live alone. In this case, Wonder was most likely following the ________.

Scott, a buyer for a medium-sized company, is assessing the value of competing software products for use in his firm. Which of the following would not be a customer benefit considered in his determination of this product's value?

Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as

Which of the following would not be a customer cost considered in determination of product value?

The equation a buyer applies to assess a product's value is

Long-term relationships with profitable customers is the key objective of

T-Mobile implements a program of texting its current customers to find out what changes they would like to see in the services provided. The firm is exhibiting characteristics associated with which of the following orientations?

A junior marketing executive at MegaGrain Cereals suggests increasing the package size and price of its best-selling brand without increasing the amount of cereal inside the box. Her superior warns that this might be a bad idea because MegaGrain's long-term survival, like most companies, depends on

____ is a customer's subjective assessment of benefits relative to costs in determining the worth of a product.

Taco Bell is introducing some of its products into supermarkets, vending machines, college campuses, and other locations to increase its product availability and convenience. One reason Taco Bell is doing so is to

Which of the following best describes the acceptance of the marketing concept by American organizations?

Initiatives intended to improve an organization's positive impact on society and the natural environment are called

A market orientation is an organization-wide effort that includes all of the following activities except

From the 1920s to the 1950s, demand for manufactured goods decreased, leading to the ____ orientation.

Which of the following is not an example of the implementation of the marketing concept?

During the Industrial Revolution demand for manufactured goods was