Question 1

When Wonder introduced a new bread made with white whole wheat in response to customer demand, it was following which of the following philosophies?

Accepted Answer

The marketing concept focuses on understanding and meeting the needs and wants of customers, which is exactly what Wonder did by introducing a new bread made with white whole wheat in response to customer demand.

Question 2

A systematic process of assessing opportunities and resources, determining marketing objectives, and developing a marketing strategy and plans for implementation and control describes which of the following marketing management activities?

Accepted Answer

The answer of A systematic process of assessing opportunities and...

Question 3

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

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 4

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

Accepted Answer

Customer relationship management (CRM) focuses on building and maintaining long-term relationships with profitable customers. This involves understanding customers' needs and preferences, establishing two-way communication, providing personalized solutions, and consistently delivering value. Personal selling, production-oriented firms, e-marketing, and distribution channels can all play a role in achieving this objective, but CRM is the overarching strategy that aligns all these elements towards building strong customer relationships.

Question 5

____ is the degree to which an exchange helps achieve an organization's objectives.

Accepted Answer

Effectiveness is the degree to which an exchange (such as a business process or transaction) contributes to the achievement of an organization's objectives. It measures how well the exchange meets the intended goals or outcomes. While efficiency measures how well resources are used to achieve these goals, effectiveness measures the extent to which the goals themselves are achieved.

Question 6

In managing customer relationships, the three primary ways profits can be obtained are by

Accepted Answer

The three primary ways profits can be obtained in managing customer relationships are enhancing the profitability of existing customers, extending the duration of relationships with customers, and obtaining new customers. This approach focuses on improving the value of the existing customer base while also expanding the customer base. It is a customer-centric approach aimed at building long-term relationships and loyalty with customers.

Question 7

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

Accepted Answer

Relationship marketing is the strategy of building long-term relationships with customers by focusing on creating satisfying exchanges. It involves creating trust and loyalty between the buyer and seller, with both parties working to enhance the value of the exchange over time. This approach contrasts with older marketing models that focused on maximizing short-term profits, without considering the long-term impact on customer relationships.

Question 8

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

Accepted Answer

The junior marketing executive's suggestion goes against the principle of creating and maintaining satisfying exchange relationships with customers. Increasing the package size and price without increasing the amount of cereal inside the box could potentially deceive customers and harm the trust and loyalty they have with the brand. For long-term survival, companies must prioritize building and maintaining strong relationships with customers.

Question 9

If McDonald's runs a promotion advertising Big Macs for $1.50, it must ensure that each of the company's restaurants has sufficient staff and product on hand to handle expected demand. This relates to which of the following marketing management activities?

Accepted Answer

This scenario involves the execution of a specific promotion (Big Macs for $1.50), which is a part of the implementation stage of marketing management. McDonald's must ensure that it has enough staff and supplies to meet expected demand during the promotion period, which is a key aspect of implementation.

Question 10

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

Accepted Answer

Benefits received in the exchange for the products would not be considered a customer cost. Rather, it is one of the benefits that the customer receives from purchasing the product. Customer costs include any effort, time, money, or perceived risk that a customer incurs in order to purchase and use a product.

Question 11

____ of marketing plans hinges on coordination of marketing activities, motivation of marketing personnel, and effective communication within the marketing unit.

Accepted Answer

Implementation of marketing plans requires coordination of marketing activities, motivation of marketing personnel, and effective communication within the marketing unit. The other choices (B, C, D, E) are important aspects of marketing planning, but they do not specifically address the need for coordination, motivation, and communication during the implementation phase.

Question 12

Marketing management is defined as a process of

Accepted Answer

Marketing management involves planning, organizing, implementing, and controlling marketing activities to achieve the organization's objectives. It is a process that includes analyzing the market, understanding customer needs, developing marketing strategies, and implementing marketing programs to create and maintain profitable customer relationships. The ultimate goal of marketing management is to generate customer value and satisfaction, while also achieving the organization's financial objectives.

Question 13

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?

Accepted Answer

Monetary price is not a customer benefit, but rather a cost. The other options all provide benefits to the customer in terms of convenience, support, and ease of use.

Question 14

Customer relationship management (CRM) begins its focus on customers with

Accepted Answer

CRM begins its focus on customers with information. This includes gathering and analyzing information about customers' preferences, behaviors, and needs in order to develop personalized strategies for better serving and retaining them.

Question 15

Managing customer relationships requires identifying patterns of ____ and then using that information to focus on the most promising and profitable customers.

Accepted Answer

Managing customer relationships requires understanding their buying behavior in order to identify patterns and focus on the most profitable customers. Demographics, retailer information, personality differences, and stock market cycles may be informative in certain contexts, but are not necessarily the most relevant factors for managing customer relationships.

Question 16

____ refers to minimizing the resources an organization must spend to achieve a specific level of desired exchanges.

Accepted Answer

Efficiency refers to minimizing the resources (e.g. time, money, labor) an organization must spend to achieve a specific level of desired exchanges (e.g. sales, production). It focuses on doing things right in order to optimize output with minimal input. Therefore, choice C is the best answer.

Question 17

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

Accepted Answer

Taco Bell is introducing its products in various locations to increase its availability and convenience for customers, thus increasing customer value.

Question 18

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

Accepted Answer

Value is defined as a customer's subjective assessment of benefits relative to costs in determining the worth of a product. Marketing orientation refers to a company's focus on meeting the needs and wants of customers. Monetary price refers to the amount of money charged for a product. Product assessment and price assessment do not encompass the idea of subjective assessment of benefits relative to costs.

Question 19

The marketing unit can be organized by ____.

Accepted Answer

The marketing unit can be organized by functions, products, regions, types of customers or a combination of all four. This allows for a more holistic approach to marketing and better targeting of specific audiences or markets. Organizing by profitability or best-selling products alone may not take into account other important factors such as customer needs and preferences. Organizing by customer demographics and frequency of purchases can also be useful, but should be combined with other factors such as product or region to provide a more comprehensive view of the market.

Question 20

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

Accepted Answer

The monetary price is the most obvious and immediate customer cost, as it directly reflects the amount of money the customer must give up to obtain the product. While the other options can also be considered customer costs, they may not be as immediately apparent or significant as the price.

Quiz 1: Customer-Driven Strategic Marketing