Question 1

Quentin owns a computer store that sells new and used computers and has a service department. When customers buy computers at his store, he offers a service package at a discounted rate. Additionally, he has an ongoing promotion that allows customers to trade in their old computers for new ones at much lower prices than his competitors can offer. He is able to do this because his service department can fix customers' old computers, which allows him to resell them to other customers. Based on this scenario, Quentin is focused on

Accepted Answer

In this scenario, Quentin is focused on enhancing the profitability of existing customers and extending the duration of customer relationships by offering discounted service packages and a computer trade-in promotion.

Question 2

Because it provides a way for businesses to personalize customer relationships, ________ is a major element of any strategy to develop and manage long-term customer relationships.

Accepted Answer

Communication remains a major element of any strategy to develop and manage long-term customer relationships. By providing multiple points of interactions with customers, such as websites, telephone, fax, e-mail, and personal contact, companies can personalize customer relationships.

Question 3

Kellen wants to start a new copyediting business. He identifies his target market as publishing companies that outsource their copyediting projects. Now that he has identified his target market, what must he do next?

Accepted Answer

After identifying his target market, Kellen should develop an appropriate marketing mix to satisfy that target market. The marketing mix refers to four marketing activities-product, price, distribution, and promotion-that the firm can control to achieve specific goals within a dynamic marketing environment.

Question 4

Precision Movement Inc. is a company that markets its products-luxury wristwatches-exclusively to high-income individuals and celebrities. Thus, high-income individuals and celebrities are most likely Precision Movement Inc.'s

Accepted Answer

High-income individuals and celebrities are Precision Movement Inc.'s target market because this is the specific group of consumers on which this company focuses its marketing efforts.

Question 5

Total Auto Parts manufactures engines, brakes, mufflers, and batteries and sells them to car manufacturers. This is an example of

Accepted Answer

When Total Auto Parts manufactures engines, brakes, mufflers, and batteries and sells them to car manufacturers, this is an example of business-to-business (B2B) marketing. B2B marketing involves marketing products to customers who will use the product for resale, direct use in daily operations, or direct use in making other products.

Question 6

Home and More sells rugs, art, lamps, and other decorative pieces to homeowners, so they can express their personal styles in their homes. This is an example of

Accepted Answer

When Home and More sells rugs, art, lamps, and other decorative pieces to homeowners, this is an example of business-to-consumer (B2C) marketing. B2C marketing involves marketing products directly to the end consumer.

Question 7

Eclectic Furniture produces and sells unique furniture pieces to both individual homeowners and hotels. As a result, this company's products can be considered

Accepted Answer

Since Eclectic Furniture sells its furniture to individual homeowners and hotels, its products can be considered both consumer and business products. Hotels use these furniture products in their daily operations, while individual homeowners use them to satisfy personal and family needs.

Question 8

What is a challenge marketers in the United States will face in the future?

Accepted Answer

One of the challenges for marketers in the future will be to effectively address an increasingly racially diverse United States. In future decades, the purchasing power of minority market segments is set to grow by leaps and bounds. Companies will have to learn how to most effectively reach these growing segments.

Question 9

The Golden Group is a group of luxury hotels that caters exclusively to high-end customers who form a small part of the market and are willing to pay for luxurious amenities. The hotel has incorporated all possible luxuries to satisfy these customers. The marketing approach employed by The Golden Group best exemplifies

Accepted Answer

The marketing approach employed by The Golden Group best exemplifies niche marketing. Niche marketing is a narrow market segment focus when efforts are on one small, well-defined group that has a unique, specific set of needs. Niche segments are usually very small compared to the total market for the products.

Question 10

A skin care company develops face creams for different generations of customers-an acne treatment cream for adolescents and a wrinkle-reducing cream for older people. These face creams were developed on the basis of ________ segmentation.

Accepted Answer

These face creams have been developed on the basis of demographic segmentation, specifically age. Demographic market segmentation is based on age, sex, race, ethnicity, income, education, occupation, family size, religion, or social class. These characteristics are often closely related to customers' product needs and purchasing behavior, and they can be readily measured.

Question 11

An automobile company manufactures different cars for different market segments. It markets its SUVs for customers who live in the mountains, sedans for customers in the coastal plains, and smaller hatchback cars for those in big cities. In this scenario, the company is primarily using ________ variables of market segmentation.

Accepted Answer

In this scenario, the company is primarily using geographic variables of market segmentation. Geographic segmentation is on the basis of climate, terrain, natural resources, population density, or subcultural values. These influence consumer needs and product usage.

Question 12

A golf club manufacturer has separate product lines for male and female golfers. It manufactures several types of golf clubs geared to each segment. Which basis of market segmentation is this company using?

Accepted Answer

Demographic market segmentation is based on age, sex, race, ethnicity, income, education, occupation, family size, religion, or social class.

Question 13

A beverage manufacturing company has placed its products strategically in areas where the population density is high. This is an example of ________ segmentation.

Accepted Answer

Geographic segmentation is done on the basis of climate, terrain, natural resources, population density, or subcultural values. These influence consumer needs and product usage.

Question 14

Guilt-Free Sweets is a bakery that produces all gluten-free baked goods to target customers who have trouble digesting gluten but still want to be able to enjoy tasty treats. What type of segmentation is this company using?

Accepted Answer

Guilt-Free Sweets is using benefit segmentation, which is a type of behavioristic segmentation. Another example of this is low-fat, low-carb food products, which target people who desire the benefits of a healthier diet.

Question 15

Strength and Fitness Gym provides its clients with personal training sessions, small group exercise classes, fitness machines and weights to use, and a separate kids' gym with day care specialists, so members can bring their children to the gym with them. These items are most closely associated with the ________ aspect of the marketing mix.

Accepted Answer

The services Strength and Fitness Gym offers are its products. Products can be goods, services, ideas, or some combination of these items. They are a complex mix of tangible and intangible attributes that provide satisfaction and benefits.

Question 16

An oil company wants to increase customer demand for oil. What can the company do to accomplish this?

Accepted Answer

To stimulate customer demand, the company can reduce the price of its oil. Prices can be changed quickly to stimulate demand or respond to competitors' actions.

Question 17

Small Treasure Gifts is deciding whether to sell its products in kiosks outside subway stations or in stores at popular malls. What element of the marketing mix does this decision most closely relate?

Accepted Answer

The decision relates to distribution (sometimes referred to as "place"), or making products available to customers in the quantities desired.

Question 18

A fashion clothier is contemplating whether to sell its products in brick and mortar stores or to sell them at its online store. What element of the marketing mix does this decision most closely relate?

Accepted Answer

The decision relates to distribution (sometimes referred to as "place"), or making products available to customers in the quantities desired.

Question 19

A systematic, objective process of getting information about potential customers to guide marketing decisions is referred to as

Accepted Answer

Marketing research is a systematic, objective process of getting information about potential customers to guide marketing decisions. Marketing research is vital because the marketing concept cannot be implemented without information about customers.

Question 20

Rich runs a home improvement business. He is happy with the level of business he receives, but he wants to learn more about his customers, so he studies information compiled by the U.S. census bureau and other government agencies, databases created by marketing research firms, and sales and other internal reports. What kind of data is Rich using in this scenario?

Accepted Answer

In this scenario, Rich is using secondary data, which are compiled inside or outside the organization for some purpose other than changing the current situation. Marketers typically use information compiled by the U.S. census bureau and other government agencies, databases created by marketing research firms, and sales and other internal reports to gain information about customers.

Quiz 11: Customer-Driven Marketing

Because it provides a way for businesses to personalize customer relationships, ________ is a major element of any strategy to develop and manage long-term customer relationships.

Kellen wants to start a new copyediting business. He identifies his target market as publishing companies that outsource their copyediting projects. Now that he has identified his target market, what must he do next?

Precision Movement Inc. is a company that markets its products-luxury wristwatches-exclusively to high-income individuals and celebrities. Thus, high-income individuals and celebrities are most likely Precision Movement Inc.'s

Total Auto Parts manufactures engines, brakes, mufflers, and batteries and sells them to car manufacturers. This is an example of

Home and More sells rugs, art, lamps, and other decorative pieces to homeowners, so they can express their personal styles in their homes. This is an example of

Eclectic Furniture produces and sells unique furniture pieces to both individual homeowners and hotels. As a result, this company's products can be considered

What is a challenge marketers in the United States will face in the future?

A skin care company develops face creams for different generations of customers-an acne treatment cream for adolescents and a wrinkle-reducing cream for older people. These face creams were developed on the basis of ________ segmentation.

A golf club manufacturer has separate product lines for male and female golfers. It manufactures several types of golf clubs geared to each segment. Which basis of market segmentation is this company using?

A beverage manufacturing company has placed its products strategically in areas where the population density is high. This is an example of ________ segmentation.

Guilt-Free Sweets is a bakery that produces all gluten-free baked goods to target customers who have trouble digesting gluten but still want to be able to enjoy tasty treats. What type of segmentation is this company using?

An oil company wants to increase customer demand for oil. What can the company do to accomplish this?

Small Treasure Gifts is deciding whether to sell its products in kiosks outside subway stations or in stores at popular malls. What element of the marketing mix does this decision most closely relate?

A fashion clothier is contemplating whether to sell its products in brick and mortar stores or to sell them at its online store. What element of the marketing mix does this decision most closely relate?

A systematic, objective process of getting information about potential customers to guide marketing decisions is referred to as