Question 1

The U.S.Postal Service (USPS)argues that its express service is comparable to what is offered by FedEx and that its prices are much lower.Yet,FedEx dominates with more than a 45 percent share of the express-delivery market.Which of the following statements describes this situation?
A) The USPS is perceived as offering greater customer value.
B) FedEx is perceived as offering greater customer value.
C) FedEx and the USPS offer the same customer value.
D) Customer value is not an issue in deciding which express-delivery service to use.
E) The USPS should lower its prices even further to increase market share.

Accepted Answer

Customer value is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.

Question 2

Kellogg's gives consumers the chance to receive a free DVD.Consumers who buy five boxes of specially marked cereal can cut out the coupons and mail in their completed official form to get a free DVD.Kellogg's is engaging in:
A) transactional marketing
B) sports distribution
C) relationship marketing
D) one-to-one marketing
E) customer transformation

Accepted Answer

Relationship marketing is a strategy that entails forging long-term partnerships with customers.

Question 3

Which of the following statements about a typical sales-oriented business is TRUE?
A) The company develops its products to meet the needs of specific groups of people.
B) The primary goal of the company is profit through customer satisfaction.
C) The company invests the majority of its resources in promoting its products and services.
D) The company is in business to satisfy customers' wants and needs and deliver superior value.
E) All of these statements about a typical sales-oriented business are true.

Accepted Answer

A typical sales-oriented business invests the majority of its resources in promoting its products and services. While the company may develop its products to meet specific needs, the primary focus is on selling to as many customers as possible to maximize profit. Customer satisfaction is important, but it is secondary to the goal of making sales. Superior value may be a factor in attracting and retaining customers, but the ultimate driving force of the business is making profit through sales.

Question 4

The Geek Squad is a tech support station located inside every Best Buy electronics retail store.Best Buy gives intensive training to the Geeks.The purpose of this training is to:
A) improve customer service
B) give higher education benefits to employees
C) promote the company image by increasing public awareness
D) reduce the need of empowerment
E) increase employment levels

Accepted Answer

Leading marketers recognize the role of employee training in customer service.

Question 5

Frequent-flyer programs are an example of financial incentives to customers in exchange for their continuing patronage.After flying a certain number of miles or flying a specified number of times,the frequent-flyer program participant earns a free flight or some other award such as free lodging.Airlines that use frequent-flyer programs are practicing:
A) commitment selling
B) transaction marketing
C) transformational marketing
D) marketing engineering
E) relationship marketing

Accepted Answer

The strategy that entails forging long-term partnerships with customers is called relationship marketing.

Question 6

The Ritz Carlton has Service Values which guide employees in providing its Gold Standard service.One of the service values states "I own and immediately resolve guest problems." The Ritz Carlton management uses _____ to provide customer service.
A) training
B) deregulation
C) empowerment
D) commissioning
E) mediating

Accepted Answer

Empowerment is the delegation of authority to solve customers' problems quickly.

Question 7

_____ is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.
A) Opportunity cost
B) Marketing utility
C) Market quality
D) Satisfaction percentage
E) Customer value

Accepted Answer

Customer value is the relationship between the benefits a customer receives from a product or service and the sacrifice (such as time or money) required to obtain those benefits. It is a measure of the overall satisfaction a customer derives from a product or service, and is a key factor in determining customer loyalty and retention. The other answer choices are not directly related to the relationship between benefits and sacrifice.

Question 8

When customer expectations regarding product quality,service quality,and value-based price are met or exceeded,_____ is created.
A) a value line
B) a quality rift
C) planning excellence
D) customer satisfaction
E) expectation satisfaction

Accepted Answer

When customer expectations regarding product quality,service quality,and value-based price are met or exceeded,customer satisfaction is created.

Question 9

Networkcar.com sells a plug-in device that connects to computer diagnostic ports that are standard on cars.The device beams signals to dealers who can remotely diagnose or spot trouble.The device allows car dealerships to maintain a closer bond with their customers by offering maintenance before a problem leaves customers with an inoperable or possibly dangerous car.With the device,dealers can better engage in:
A) management empowerment
B) management-customer synergy
C) relationship marketing
D) transactional marketing
E) direct selling

Accepted Answer

Relationship management is a strategy that entails forging long-term partnerships with customers.

Question 10

_____ gives customers the feeling their concerns are being addressed and at the same time gives employees the feeling their expertise matters to management.
A) Management-employee synergy
B) Organizational entropy
C) Managerial reciprocity
D) Empowerment
E) Delegation

Accepted Answer

Empowerment is the delegation of authority to solve customers' problems quickly,usually by the first person that the customer notifies regarding a problem.

Question 11

96 percent of USAA home insurance policy holders report that USAA representatives meets their commitment in calling back customers quickly about claims.The most likely result of USAA's efforts
A) management empowerment
B) retailer-customer synergy
C) customer satisfaction
D) transactional marketing
E) disintermediation

Accepted Answer

When customer expectations regarding product quality,service quality,and value-based price are met or exceeded,customer satisfaction is created.

Question 12

Because Charlene works the late shift,she really loves TiVo because it allows her to watch her favorite TV shows on her own schedule.TiVo provides what element of value to Charlene?
A) Offering products that perform
B) Earning her trust
C) Avoiding unrealistic pricing
D) Giving her facts
E) Co-creation

Accepted Answer

Co-creation allows customers to help create their own experience.

Question 13

_____ is a strategy that focuses on keeping and improving relationships with current customers.
A) Commitment selling
B) Relationship marketing
C) Transactional marketing
D) Market engineering
E) Organization-customer synergy

Accepted Answer

This is the definition of relationship marketing.

Question 14

Most successful relationship marketing strategies depend on:
A) customer-oriented personnel
B) effective training programs
C) employees with authority to make decisions and solve problems
D) teamwork
E) all of these

Accepted Answer

Successful relationship marketing strategies require a combination of customer-oriented personnel, effective training programs, employees with authority to make decisions and solve problems, and teamwork. Each of these factors is important in building strong and lasting relationships with customers. Without any one of these elements, a relationship marketing strategy is likely to be less effective. Therefore, the best choice is E, all of these.

Question 15

As part of instituting an empowerment program,a marketing director should:
A) hire college graduates who have the latest training in marketing management techniques
B) create a customer-service department and place a key staff person in charge of the department
C) train the company's staff to judge the quality of the products the firm produces
D) allow non-management employees to resolve problems on their own without prior approval from their immediate supervisors
E) conduct a survey of the company's marketing staff to learn about employee morale

Accepted Answer

Empowerment refers to firms that give employees expanded authority to solve customer problems on the spot without having to get management's permission first.

Question 16

_____ is the collaborative efforts of people to achieve common objectives.
A) Effort training
B) Teamwork
C) Empowerment
D) OJT training
E) Mediation

Accepted Answer

This is the definition of teamwork.

Question 17

Marketers interested in offering customer value can:
A) offer products that perform
B) give the buyer facts
C) offer organization-wide commitment in service and after-sales support
D) avoid unrealistic pricing
E) do all of these

Accepted Answer

To effectively offer customer value, marketers should do all of the options listed. They should offer products that perform well, provide factual information to buyers, demonstrate an organizational commitment to service and support, and avoid setting unrealistic prices. By doing all of these things, marketers can create a comprehensive approach to delivering value to customers, thereby increasing customer satisfaction and brand loyalty.

Question 18

Some market-oriented firms give employees expanded authority to solve customer problems on the spot.This is known as:
A) training
B) deregulation
C) empowerment
D) commissioning
E) mediating

Accepted Answer

Empowerment is the delegation of authority to solve customer problems quickly,usually by the first person that the customer notifies regarding a problem.

Question 19

Which of the following is the customer's evaluation of a good or service in terms of whether that good or service has met his or her needs and expectations?
A) Value
B) Perception
C) Attitude
D) Dissonance
E) Satisfaction

Accepted Answer

Failure to meet needs and expectations results and dissatisfaction with the good or service.

Question 20

Nordstrom department store emphasizes _____ by accepting returns on items not purchased there.
A) management empowerment
B) management-customer synergy
C) customer satisfaction
D) transactional marketing
E) direct selling

Accepted Answer

When customer expectations regarding product quality,service quality,and value-based price are met or exceeded,customer satisfaction is created.

Quiz 1: An Overview of Marketing

The U.S.Postal Service (USPS) argues that its express service is comparable to what is offered by FedEx and that its prices are much lower.Yet,FedEx dominates with more than a 45 percent share of the express-delivery market.Which of the following statements describes this situation?

Kellogg's gives consumers the chance to receive a free DVD.Consumers who buy five boxes of specially marked cereal can cut out the coupons and mail in their completed official form to get a free DVD.Kellogg's is engaging in:

Which of the following statements about a typical sales-oriented business is TRUE?

The Geek Squad is a tech support station located inside every Best Buy electronics retail store.Best Buy gives intensive training to the Geeks.The purpose of this training is to:

The Ritz Carlton has Service Values which guide employees in providing its Gold Standard service.One of the service values states "I own and immediately resolve guest problems." The Ritz Carlton management uses _____ to provide customer service.

_____ is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.

When customer expectations regarding product quality,service quality,and value-based price are met or exceeded,_____ is created.

_____ gives customers the feeling their concerns are being addressed and at the same time gives employees the feeling their expertise matters to management.

96 percent of USAA home insurance policy holders report that USAA representatives meets their commitment in calling back customers quickly about claims.The most likely result of USAA's efforts

Because Charlene works the late shift,she really loves TiVo because it allows her to watch her favorite TV shows on her own schedule.TiVo provides what element of value to Charlene?

_____ is a strategy that focuses on keeping and improving relationships with current customers.

Most successful relationship marketing strategies depend on:

As part of instituting an empowerment program,a marketing director should:

_____ is the collaborative efforts of people to achieve common objectives.

Marketers interested in offering customer value can:

Some market-oriented firms give employees expanded authority to solve customer problems on the spot.This is known as:

Which of the following is the customer's evaluation of a good or service in terms of whether that good or service has met his or her needs and expectations?

Nordstrom department store emphasizes _____ by accepting returns on items not purchased there.