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Chapter 1 Marketing: Creating and Capturing Customer Value
1) All of the following are accurate descriptions of modern marketing, EXCEPT which
one?
A) Marketing is the creation of value for customers.
B) Marketing is managing profitable customer relationships.
C) Selling and advertising are synonymous with marketing.
D) Marketing involves satisfying customers' needs.
E) Marketing is used by for-profit and not-for-profit organizations.
Answer: C
Diff: 2 Page Ref: 2 and 4
Skill: Concept
Objective: 1-1
2) According to the opening scenario, the Tide marketing team is MOST concerned about
which of the following?
A) maintaining its brand share
B) fostering customers' emotional connections with their product
C) advertising their product's benefits
D) comparing the effectiveness of their product to other brands
E) incorporating consumer-generated marketing in the marketing mix
Answer: B
Diff: 2 Page Ref: 2
Skill: Concept
Objective: 1-1
3) According to management guru Peter Drucker, "The aim of marketing is to ________."
A) create customer value
B) identify customer demands
C) make selling unnecessary
D) set realistic customer expectations
E) sell products
Answer: C
Diff: 2 Page Ref: 5
Skill: Concept
Objective: 1-1
4) ________ is defined as a social and managerial process by which individuals and
organizations obtain what they need and want through value creation and exchange.
A) Selling
B) Advertising
C) Bartering
D) Marketing
E) Negotiating
Answer: D
Diff: 2 Page Ref: 5
Skill: Concept
Objective: 1-1
5) Which steps of the five-step marketing process are about understanding customers,
creating customer value, and building strong customer relationships?
A) the first two only
B) the first three only
C) the first four only
D) the last three only
E) the last four only
Answer: C
Diff: 2 Page Ref: 5
AACSB: Communication
Skill: Concept
Objective: 1-1
6) According to the simple five-step model of the marketing process, a company needs to
________ before designing a customer-driven marketing strategy.
A) determine how to deliver superior value
B) build profitable relationships with customers
C) use customer relationship management to create full partnerships with key customers
D) understand the marketplace and customer needs and wants
E) construct key components of a marketing program
Answer: D
Diff: 2 Page Ref: 5
AACSB: Communication
Skill: Concept
Objective: 1-2
7) ________ are human needs as shaped by individual personality and culture.
A) Needs
B) Wants
C) Demands
D) Values
E) Exchanges
Answer: B
Diff: 2 Page Ref: 6
Skill: Concept
Objective: 1-2
8) When backed by buying power, wants become ________.
A) social needs
B) demands
C) physical needs
D) self-esteem needs
E) exchanges
Answer: B
Diff: 1 Page Ref: 6
Skill: Concept
Objective: 1-2
9) What do companies call a set of benefits that they promise to consumers to satisfy their
needs?
A) market offering
B) value proposition
C) demand satisfaction
D) need proposition
E) evoked set
Answer: A
Diff: 1 Page Ref: 6
Skill: Concept
Objective: 1-2
10) Which of the following refers to sellers being preoccupied with their own products and
losing sight of underlying consumer needs?
A) selling myopia
B) marketing management
C) value proposition
D) marketing myopia
E) the product concept
Answer: D
Diff: 1 Page Ref: 6
Skill: Concept
Objective: 1-2
11) When marketers set low expectations for a market offering, the biggest risk they run is
________.
A) disappointing loyal customers
B) decreasing customer satisfaction
C) failing to attract enough customers
D) failing to understand their customers' needs
E) incorrectly identifying a target market
Answer: C
Diff: 1 Page Ref: 7
Skill: Concept
Objective: 1-2
12) ________ is the act of obtaining a desired object from someone by offering something
in return.
A) A value proposition
B) Exchange
C) Bribery
D) Value creation
E) Donation
Answer: B
Diff: 1 Page Ref: 7
Skill: Concept
Objective: 1-2
13) A(n) ________ is the set of actual and potential buyers of a product.
A) market
B) audience
C) group
D) segment
E) exchange
Answer: A
Diff: 1 Page Ref: 7
Skill: Concept
Objective: 1-2
14) Consumer research, product development, communication, distribution, pricing, and
service are all core ________ activities.
A) exchange
B) marketing
C) management
D) production
E) customer relationship management
Answer: B
Diff: 1 Page Ref: 7
AACSB: Communication
Skill: Concept
Objective: 1-2
15) Which of the following is the most likely result of a marketing strategy that attempts to
serve all potential customers?
A) All customers will be delighted.
B) Customer-perceived value will increase.
C) Customer evangelists will become unpaid salespersons for the service or product.
D) Not all customers will be satisfied.
E) The company will need to follow up with a demarketing campaign.
Answer: D
Diff: 3 Page Ref: 9
AACSB: Analytic Skills
Skill: Concept
Objective: 1-3
16) In the case of excess demand, ________ may be required to reduce the number of
customers or to shift demand temporarily or permanently.
A) marketing
B) demarketing
C) value marketing
D) surplusing
E) negotiating
Answer: B
Diff: 1 Page Ref: 9
Skill: Concept
Objective: 1-3
17) The art and science of choosing target markets and building profitable relationships
with them is called ________.
A) marketing management
B) positioning
C) segmentation
D) selling
E) differentiation
Answer: A
Diff: 1 Page Ref: 8
Skill: Concept
Objective: 1-3
18) Selecting which segments of a population of customers to serve is called ________.
A) market segmentation
B) positioning
C) customization
D) target marketing
E) managing the marketing effort
Answer: D
Diff: 1 Page Ref: 8
Skill: Concept
Objective: 1-3
19) Which of the following is the set of benefits a company promises to deliver the
customer to satisfy their needs?
A) a money-back guarantee
B) low pricing
C) good customer service
D) a value proposition
E) an attribute
Answer: D
Diff: 1 Page Ref: 9
Skill: Concept
Objective: 1-3
20) Which customer question is answered by a company's value proposition?
A) "Why should I buy your brand rather than a competitor's?"
B) "How does your brand benefit me and society?"
C) "What are the costs and benefits of your brand?"
D) "What kind of experience will I have with products and services associated with this
brand?"
E) "What are the benefits of being a loyal consumer of your brand?"
Answer: A
Diff: 3 Page Ref: 9
AACSB: Communication
Skill: Concept
Objective: 1-3
21) Which of the following marketing management orientations focuses primarily on
improving efficiencies along the supply chain?
A) production concept
B) product concept
C) selling concept
D) marketing concept
E) social marketing concept
Answer: A
Diff: 2 Page Ref: 9
AACSB: Analytic Skills
Skill: Concept
Objective: 1-3
22) Which of the following marketing management concepts is most likely to lead to
marketing myopia?
A) customer-driven marketing
B) customer-driving marketing
C) social marketing
D) selling
E) production
Answer: E
Diff: 3 Page Ref: 9
Skill: Concept
Objective: 1-3
23) The ________ concept is aligned with the philosophy of continuous product
improvement and the belief that customers will choose products that offer the most in
quality, performance, and innovative features.
A) product
B) production
C) customer
D) marketing
E) promotion
Answer: A
Diff: 1 Page Ref: 10
Skill: Concept
Objective: 1-3
24) The product concept says that a company should do which of the following?
A) improve marketing of its best products
B) market only those products with high customer appeal
C) focus on the target market and make products that meet those customers' demands
D) focus on making continuous product improvements
E) make promoting products the top priority
Answer: D
Diff: 2 Page Ref: 10
Skill: Concept
Objective: 1-3
25) "Build a better mousetrap and the world will beat a path to your door" reflects the
________ concept.
A) production
B) marketing
C) selling
D) product
E) target marketing
Answer: D
Diff: 2 Page Ref: 10
AACSB: Reflective Thinking
Skill: Concept
Objective: 1-3
26) Which concept calls for aggressive selling and focuses on generating transactions to
obtain profitable sales?
A) marketing
B) production
C) product
D) selling
E) societal marketing
Answer: D
Diff: 1 Page Ref: 10
Skill: Concept
Objective: 1-3
27) Which concept holds that achieving organizational goals depends on knowing the
needs and wants of target markets and delivering the desired satisfactions better than
competitors do?
A) product
B) production
C) selling
D) marketing
E) equity
Answer: D
Diff: 1 Page Ref: 10
Skill: Concept
Objective: 1-3
28) A firm that uses the selling concept takes a(n) ________ approach.
A) outside-in
B) myopic
C) inside-out
D) societal
E) customer service
Answer: C
Diff: 2 Page Ref: 10
Skill: Concept
Objective: 1-3
29) According to the production concept, consumers will favor products that are ________
and ________.
A) satisfying; quality focused
B) advertised; affordable
C) in high demand; hard to find
D) segmented; convenient
E) available; affordable
Answer: E
Diff: 3 Page Ref: 9
Skill: Concept
Objective: 1-3
30) Herb Kelleher of Southwest Airlines used the marketing concept in his successful
organization. Having a customer department rather than a marketing department, as
suggested by Kelleher, is an example of a(n) ________ perspective.
A) outside-in
B) external
C) inside-out
D) modern
E) traditional
Answer: A
Diff: 3 Page Ref: 10
Skill: Concept
Objective: 1-3
31) Though often criticized, the selling concept is particularly appropriate and effective
with which of the following types of products?
A) convenience
B) shopping
C) specialty
D) unsought
E) demarketed
Answer: D
Diff: 2 Page Ref: 10
Skill: Concept
Objective: 1-3
32) Which of the following reflects the marketing concept philosophy?
A) "We don't have a marketing department; we have a customer department."
B) "We're in the business of making and selling superior products."
C) "We build them so you can buy them."
D) "When it's profits versus customers' needs, profits will always win out."
E) "You won't find a better deal anywhere."
Answer: A
Diff: 3 Page Ref: 10
AACSB: Reflective Thinking
Skill: Concept
Objective: 1-3
33) Customer-driven marketing usually works well when ________ and when customers
________.
A) a clear need exists; are difficult to identify
B) customers know what they want; are loyal to the brand
C) a firm can deliver the goods desired; are thoroughly researched
D) a clear need exists; know what they want
E) a need exists; don't know what they want
Answer: D
Diff: 2 Page Ref: 11
Skill: Concept
Objective: 1-3
34) Marie Ortiz enjoys her work at Futuristic Designs, Inc. Her organization understands
and anticipates customer needs even better than customers themselves do and creates
products and services to meet current and future wants and demands. Marie's firm
practices ________ marketing.
A) customer-driven
B) customer-driving
C) relationship
D) donor
E) social
Answer: B
Diff: 2 Page Ref: 11
Skill: Concept
Objective: 1-3
35) When customers don't know what they want or don't even know what's possible, the
most effective strategy is ________ marketing.
A) customer-driven
B) customer-driving
C) societal
D) production
E) product
Answer: B
Diff: 2 Page Ref: 11
Skill: Concept
Objective: 1-3
36) The societal marketing concept seeks to establish a balance between consumer
short-run wants and consumer ________.
A) short-run costs and profits
B) short-run ethics
C) long-run welfare
D) immediate health
E) value propositions
Answer: C
Diff: 2 Page Ref: 11
