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Indicate whether the statement is true or false.
1. The actual physical production of goods is a marketing activity.
a. True
b. False
2. Promotion can help sustain interest in established products that have long been available.
a. True
b. False
3. Marketing activities do not always result in exchanges.
a. True
b. False
4. The marketing concept stresses that a business organization can best achieve its goal by providing customer satisfaction
through coordinated activities.
a. True
b. False
5. For a business organization to remain healthy and to survive, it must sell products and make profits.
a. True
b. False
6. A market orientation requires the organization-wide generation of market intelligence pertaining to current and future
customer needs, dissemination of the intelligence across departments, and organization-wide responsiveness to it.
a. True
b. False
7. The outcomes of a marketer’s decisions and actions may be affected by the variables in the marketing environment.
a. True
b. False
8. A target market is always defined by demographics.
a. True
b. False
9. The distribution variable in a marketing mix is directed toward making products available in the quantities desired to as
many target market customers as possible and keeping the total inventory, transportation, and storage costs as low as
possible.
a. True
b. False
10. Basic and extended warranties can reduce risk, a major customer cost.
a. True
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b. False
11. For an exchange situation to arise, only one condition must exist: two or more individuals, groups, or organizations
must each possess something that they value and are willing to give up to receive the “something of value” held by the
other individual, group, or organization.
a. True
b. False
12. Customer benefits include time and effort.
a. True
b. False
13. The marketing concept is a management philosophy, not a second definition of marketing.
a. True
b. False
14. In general, when marketers focus on customers chosen for their lifetime value, they earn lower profits in future
periods than when they focus on customers selected for other reasons.
a. True
b. False
15. Relationship marketing is short-term, mutually beneficial arrangements in which the buyer and seller focus on the
creation of satisfying exchanges.
a. True
b. False
16. To satisfy customers’ objectives as well as its own, a company must coordinate all its activities.
a. True
b. False
17. The broadest and simplest definition of marketing states that it is the development and efficient distribution of
products for consumer segments.
a. True
b. False
18. Customers are interested in a product’s price because they are concerned about the value obtained in an exchange.
a. True
b. False
19. Knowing about marketing can help you evaluate the types of corrective measures needed to stop questionable
marketing practices.
a. True
b. False
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20. In marketing, a product can be a good or a service but not an idea.
a. True
b. False
21. The marketing concept deals only with marketing activities.
a. True
b. False
22. To implement the marketing concept, an organization must first establish an information system to discover
customers’ real needs and then use the information to create products to satisfy those needs.
a. True
b. False
23. At the most basic level, profits can be obtained through relationships by acquiring new customers, enhancing the
profitability of existing customers, and extending the duration of customer relationships.
a. True
b. False
24. Target markets can be people who buy the product but do not necessarily use the product.
a. True
b. False
25. Profit, even at the expense of customers’ satisfaction, is the major thrust of the marketing concept.
a. True
b. False
26. A target market is a specific group of customers on whom an organization focuses its marketing efforts.
a. True
b. False
27. Services are provided by applying human and mechanical efforts to people or objects to provide intangible benefits to
customer.
a. True
b. False
28. The marketing concept directly affects marketing activities but should have negligible impact on other organizational
activities.
a. True
b. False
29. During the market orientation, businesspeople realized that products, which by this time could be made relatively
efficiently, would have to be promoted through much personal selling and advertising.
a. True
b. False
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30. Marketing costs consume about one-half of a buyer’s dollar.
a. True
b. False
31. Products can be goods, services, or ideas.
a. True
b. False
32. The marketing mix consists of three major variables: product, price, and distribution.
a. True
b. False
33. Marketing costs consume about one-quarter of a buyer’s dollar.
a. True
b. False
34. The marketing environment is a set of static, unchanging surroundings.
a. True
b. False
35. Customers are the focal point of all marketing activities.
a. True
b. False
36. During the market orientation, businesspeople realized that if they could produce products efficiently, customers
would buy them.
a. True
b. False
37. Achievement of the firm’s overall goals is part of the marketing concept.
a. True
b. False
38. Changes in the marketing environment always hurt marketing efforts.
a. True
b. False
39. Approximately 20 percent of civilian employees in the United States perform marketing activities.
a. True
b. False
40. The process people use to determine the value of a product is not highly scientific.
a. True
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b. False
41. Marketing consists primarily of selling and advertising.
a. True
b. False
42. A family that organizes and advertises a garage sale is performing marketing activities.
a. True
b. False
43. The marketing concept is a philosophy that a business organization should employ to satisfy customers’ needs while
achieving the overall goals of the organization.
a. True
b. False
44. Price is seldom used as a competitive tool.
a. True
b. False
45. Marketing efforts do not involve the design and development of products.
a. True
b. False
46. The market concept stresses that an organization can best achieve its objectives by being customer-oriented.
a. True
b. False
47. The marketing concept is a philanthropic philosophy aimed at helping customers at the expense of the business
organization.
a. True
b. False
48. Value = customer costs − customer benefits.
a. True
b. False
49. The market concept developed out of a sequence of three eras: the production orientation, the marketing orientation,
and the industrial orientation.
a. True
b. False
50. For an exchange to occur, at least one of the parties must be willing to give up his or her “something of value.”
a. True
b. False
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51. Customer relationship management is the use of information about customers to create marketing strategies that
develop and sustain desirable customer relationships.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
52. Distribution, price, promotion, and product are all elements of
a. marketing strategy.
b. the marketing mix.
c. a target market.
d. a consumer good.
e. a business strategy.
53. 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.
54. Marketing knowledge and skills
a. are not necessary for a nonprofit organization.
b. are valuable personal and professional assets.
c. constitute the marketing mix.
d. were most important during the production era.
e. are most valuable for advertising executives but less important for wholesalers and distributors.
55. 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
56. 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
57. The marketing concept is best defined as
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a. a second definition of marketing.
b. a philosophy stating that an organization should try to satisfy customers’ needs through a coordinated set of
activities that allows the organization to achieve its goals.
c. the performance of business activities that direct the flow of goods and services from producer to customer or
user.
d. a philosophy stating that an organization should attempt to accomplish its goals with no regard for the needs of
customers.
e. the inclusion of marketing activities in the activities of an organization.
58. Which of the following scenarios involves the distribution element of the marketing mix?
a. Deciding whether or not a certain product should continue to be sold
b. Determining whether an advertising message would be more effective on television or in magazines
c. Choosing between a company jet or the airlines for executive travel
d. Deciding whether or not to have retail outlets in addition to a website
e. Developing a new warranty policy for an existing product
59. Changing the hours of operation for a service business involves the ____ component of the marketing mix.
a. product
b. price
c. distribution
d. promotion
e. marketing concept
60. 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.
61. Which one of the following statements by a company president best reflects the marketing concept?
a. We have organized our business to make certain that customers get what they want.
b. We believe that the marketing department must organize to sell what we produce.
c. We have organized an aggressive sales force in our company to promote our products.
d. We try to produce only high-quality, technically efficient products.
e. We try to encourage company growth.
62. The focal point of all marketing activities is
a. products.
b. the marketing mix.
c. profits.
d. sales.
e. customers.
63. A physical product you can touch is a(n)
a. service.
b. good.
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c. idea.
d. concept.
e. philosophy.
Scenario 1.2
Use the following to answer the questions.
Paws and Claws Hotel is a full-service pet salon and boarding kennel. Paws and Claws has an interactive website where
customers can directly book a grooming appointment, obedience class, or overnight accommodations for their dog or cat.
Paws and Claws has several unexpected services, such as a 600-square foot swimming pool, complete with slide and dog–
friendly graduated steps to help them exit the pool. Customers can also drop their dog or cat off each morning for pet day
care. Paws and Claws has a pick-up and delivery service, webcams in every kennel so that pet families can view their pets
while away, and pet “furniture” so that the cats and dogs can lie on sofas just like at home. Paws and Claws is also open
24 hours a day, 365 days each year so that customers can pick up their pet at any time.
The cost for an overnight stay at Paws and Claws averages $50, compared to competing kennels at about $30. The day
care costs are $25 for either a dog or cat. The majority of Paws and Claws’ competitors don’t offer the day care service,
and require an two-day minimum for overnight stays.
Informal discussions with customers led to the addition of pet day care and 24-hour hours of operation. Previously, Paws
and Claws was more interested in competing based on its prices.
64. Refer to Scenario 1.2. Previously, Paws and Claws was most likely using a ____ orientation, while now it is now in
the process of employing the _______.
a. Sales; Marketing concept.
b. Sales; Marketing mix.
c. Promotion; Marketing concept.
d. Sales; Promotion orientation.
e. Sales; Product orientation.
65. Consumers buying products online have dramatically affected the ____ variable of the marketing mix.
a. product
b. price
c. distribution
d. research
e. promotion
66. In order to be successful in creating mutually-beneficial exchanges with customers, the marketer must focus on
creating value in fact and in the mind of the customer. For the most part, value is a customer’s ________________
assessment of benefits relative to costs. The marketer should recognize that the process people use to determine value
_______________.
a. objective; is scientific
b. subjective; is not scientific
c. objective; is not scientific
d. subjective; is scientific
e. objective; is completely rational
67. Which of the following is most likely to be an idea marketer?
a. Car salesperson
b. Airline pilot
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c. Attorney
d. Abuse counselor
e. Orthodontist
68. The marketing environment is the arena in which the marketer executes marketing strategies and techniques designed
to build relationships with customers. It includes a host of forces that surround the customer and affects the marketing
mix.
The marketing environment:
a. changes periodically, but at a slow enough pace for the skillful marketer to respond to effectively.
b. creates risks for the marketer, but seldom creates opportunities.
c. is not impacted by technology to any significant degree.
d. can be completely controlled by a skillful marketer using well-thought-out strategies.
e. includes legal and regulatory forces that affect the marketing mix.
69. In managing customer relationships, the three primary ways profits can be obtained are by
a. acquiring new customers, enhancing the profitability of new customers, and shortening the duration of
relationships with existing customers
b. enhancing the profitability of existing customers, eliminating customers who provide smaller profits, and finding
new customers.
c. extending the length of relationships with customers, cutting organizational costs, and enhancing the profitability
of new customers.
d. eliminating long-term customers who have decreased purchases, finding new customers, and increasing sales to
existing customers.
e. enhancing the profitability of existing customers, extending the duration of relationships with customers, and
obtaining new customers.
70. 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.
71. 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
72. The forces of the marketing environment include
a. political, legal and regulatory, sociocultural, technological, economic, and competitive.
b. sociocultural, legal, regulatory, economic, pricing strategies, and competitive.
c. legal, regulatory, political, sociocultural, pricing strategies, and technological.
d. legal and regulatory, competitive and noncompetitive forces that affect most lifestyles.
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e. political, legal and regulatory, pricing strategies,fairly static components.
73. Marketing facilitates exchange relationships between buyers and sellers. What is marketing’s intended outcome for
this relationship?
a. Profits for the seller
b. A good bargain on the product for the buyer
c. Reducing the seller’s inventory
d. One party having to compromise in the exchange
e. Satisfaction for both the buyer and seller
74. A commercial for the drink SunnyD explains how nutritious it is in comparison to other, more “sugary” drinks. While
children under 12 are the most likely consumers of SunnyD, the commercial is aimed at mothers. These mothers represent
SunnyD’s
a. target market.
b. consumer advocates.
c. marketing strategy.
d. marketing mix.
e. marketing tactic.
Scenario 1.1
Use the following to answer the questions.
Greensprings Cemetery in upstate New York, offers a full-service funeral and burial that is non-toxic to the environment.
All materials used in the burial are natural and will decompose with no negative impact. Greensprings’ service is relatively
new in the United States, but services of this type are common in Great Britain. A typical burial in Greensprings’ cemetery
includes a casket made from bamboo, wicker, paper, or other natural material. There are no headstones of stone or
concrete that will detract from the landscape, but trees and plants as “markers” are allowed. The cost for a burial at
Greensprings is approximately $3,000, compared to about $6,000 at most traditional cemeteries. Although business was
slow at first, Greensprings is now experiencing an increase in the number of burials, due to referrals and a newly–
developed website. The owners of Greensprings were previously in the cemetery business, and are active conservationist
and wanted to make their business more sustainable. After conducting research and finding that there were natural burial
sites in Great Britain, they wanted to provide an alternative to other environmentally-conscious Americans like
themselves.
75. Refer to Scenario 1.1. The customers of Greensprings Cemeteries are most likely choosing the Greensprings business
because of its _______, which is evidence of a ______ _____.
a. Pricing; Sales orientation
b. Environmental consciousness; Market orientation
c. Novelty; Production orientation
d. Environmental consciousness; Business orientation
e. Pricing; Profit orientation
76. Organizations should define themselves not according to the products they produce but according to
a. how profitable they are.
b. the price of their stock.
c. the abundance of their product selection.
d. how they treat employees.
e. how they satisfy customers.
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77. A recent Council of Supply Chain Management Professionals meeting featured an executive from Dell Computer,
known for their ability to customize computers to customers’ needs as well as their ability to provide quality products at
economical prices through their retail channel. The executive discussed the capabilities of their firm regarding the ability
to produce products that are “built–to–order” and noted that recent customer insight showed customers were less willing to
wait 7 to 10 days to receive their computer even though it was built to their specifications. As a result of this customer
trend, Dell began forging relationships with retailers such as WalMart to provide a limited number of computer models in
the retailers’ store. In order to fulfill the orders to WalMart, Dell was required to make changes in their production and
manufacturing such as holding more products in inventory and utilizing different modes of transportation. For example,
Dell was able to shift from a focus on air transportation to over-the-road trucking which enabled them to cut costs in some
areas. As Dell shifted from a “build–to–order” manufacturer to a “make–to–stock” manufacturer they also had to make
investments in customer analytics to identify customer needs as well as collect insight regarding pricing. This customer
insight was especially important to the retail partners like WalMart who requires their vendors to justify product stock
decisions and provide proof that retail inventory will sell at the projected price points. Dell’s ability to modify their
business model by forging relationships with retailers such as WalMart as well as customer insights has helped the
company achieve its revenue and profitability goals.
Which variable of the marketing mix is most impacted by Dell’s decision to become a “make–to–stock” manufacturer?
a. product variable
b. pricing variable
c. distribution variable
d. promotion variable
78. A target market
a. involves a large number of customers.
b. is a specific group of customers on whom an organization focuses its marketing efforts.
c. already has several competitors vying for customers’ business.
d. is the same as a salesperson’s prospective client list.
e. is a customer group classified as people with similar demographic characteristics.
79. The marketing concept is a management philosophy that affects
a. only marketing activities.
b. all efforts of the organization.
c. mainly the efforts of sales personnel.
d. mainly customer relations.
e. only business organizations.
80. 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.
81. 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
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d. energy-conscious marketing
e. socially-conscious marketing
82. A marketing manager for a small computer manufacturer is analyzing the potential effects of political, legal,
sociocultural, and economic forces on the firm’s operations. The marketing manager is examining the ____ that
influence(s) the firm’s strategy.
a. operating situation
b. marketing environment
c. surroundings
d. economic conditions
e. trends
83. The forces of the marketing environment primarily affect marketers in three ways: They influence customers by
affecting their lifestyles and preferences for products; they determine whether or how a marketing manager can perform
certain marketing activities; and they
a. affect a marketing manager’s decisions and actions by influencing buyers’ reactions to the firm’s marketing mix.
b. dictate that changes be made to the existing marketing mix despite any negative reactions from customers.
c. make most new products obsolete very quickly so that research and development must continually develop new
products.
d. cause most advertising to be ineffective at communicating product benefits due to rapidly changing environmental
forces.
e. change a customer’s decisions about the appropriate marketing mix for the company and its various products.
84. The three basic forms that a product can take are
a. markets, products, and images.
b. goods, ideas, and intangibles.
c. brands, services, and tangibles.
d. services, ideas, and goods.
e. ideas, services, and things.
85. A change in the minimum drinking age in any given state illustrates a change in the ____ for Miller Brewing.
a. marketing mix
b. marketing environment
c. marketing concept
d. marketing task
e. product concept
Scenario 1.2
Use the following to answer the questions.
Paws and Claws Hotel is a full-service pet salon and boarding kennel. Paws and Claws has an interactive website where
customers can directly book a grooming appointment, obedience class, or overnight accommodations for their dog or cat.
Paws and Claws has several unexpected services, such as a 600-square foot swimming pool, complete with slide and dog–
friendly graduated steps to help them exit the pool. Customers can also drop their dog or cat off each morning for pet day
care. Paws and Claws has a pick-up and delivery service, webcams in every kennel so that pet families can view their pets
while away, and pet “furniture” so that the cats and dogs can lie on sofas just like at home. Paws and Claws is also open
24 hours a day, 365 days each year so that customers can pick up their pet at any time.
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The cost for an overnight stay at Paws and Claws averages $50, compared to competing kennels at about $30. The day
care costs are $25 for either a dog or cat. The majority of Paws and Claws’ competitors don’t offer the day care service,
and require a two-day minimum for overnight stays.
Informal discussions with customers led to the addition of pet day care and 24 hours of operation. Previously, Paws and
Claws was more interested in competing based on its prices.
86. Refer to Scenario 1.2. Paws and Claws’ target market is most likely to be which of the following?
a. The dogs and cats who stay there
b. Pet owners who go on vacation frequently
c. Families with small children and several pets
d. Suburban families with two-income households
e. Urban professionals who travel often
87. A recent Council of Supply Chain Management Professionals meeting featured an executive from Dell Computer,
known for their ability to customize computers to customers’ needs as well as their ability to provide quality products at
economical prices through their retail channel. The executive discussed the capabilities of their firm regarding the ability
to produce products that are “built–to–order” and noted that recent customer insight showed customers were less willing to
wait 7 to 10 days to receive their computer even though it was built to their specifications. As a result of this customer
trend, Dell began forging relationships with retailers such as WalMart to provide a limited number of computer models in
the retailers’ store. In order to fulfill the orders to WalMart, Dell was required to make changes in their production and
manufacturing such as holding more products in inventory and utilizing different modes of transportation. For example,
Dell was able to shift from a focus on air transportation to over-the-road trucking which enabled them to cut costs in some
areas. As Dell shifted from a “build–to–order” manufacturer to a “make–to–stock” manufacturer they also had to make
investments in customer analytics to identify customer needs as well as collect insight regarding pricing. This customer
insight was especially important to the retail partners like WalMart who requires their vendors to justify product stock
decisions and provide proof that retail inventory will sell at the projected price points. Dell’s ability to modify their
business model by forging relationships with retailers such as WalMart as well as customer insights has helped the
company achieve its revenue and profitability goals.
Which environmental factor is exemplified by the customer trend that consumers were no longer willing to wait 7 to 10
days for a “build–to–order” computer and led Dell to modify their business model to become a “make–to–stock”
manufacturer?
a. economic
b. competitive
c. legal and regulatory
d. sociocultural
88. The product variable of the marketing mix can include all of the following except
a. creation of brand names.
b. consumer perception of the product price.
c. development of product packaging.
d. warranty issues
e. repair services.
89. A recent Council of Supply Chain Management Professionals meeting featured an executive from Dell Computer,
known for their ability to customize computers to customers’ needs as well as their ability to provide quality products at
economical prices through their retail channel. The executive discussed the capabilities of their firm regarding the ability
to produce products that are “built–to–order” and noted that recent customer insight showed customers were less willing to
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wait 7 to 10 days to receive their computer even though it was built to their specifications. As a result of this customer
trend, Dell began forging relationships with retailers such as WalMart to provide a limited number of computer models in
the retailers’ store. In order to fulfill the orders to WalMart, Dell was required to make changes in their production and
manufacturing such as holding more products in inventory and utilizing different modes of transportation. For example,
Dell was able to shift from a focus on air transportation to over-the-road trucking which enabled them to cut costs in some
areas. As Dell shifted from a “build–to–order” manufacturer to a “make–to–stock” manufacturer they also had to make
investments in customer analytics to identify customer needs as well as collect insight regarding pricing. This customer
insight was especially important to the retail partners like WalMart who requires their vendors to justify product stock
decisions and provide proof that retail inventory will sell at the projected price points. Dell’s ability to modify their
business model by forging relationships with retailers such as WalMart as well as customer insights has helped the
company achieve its revenue and profitability goals.
Based on the information provided in the Scenario regarding Dell, which orientation would best describe their approach to
marketing?
a. production orientation
b. sales orientation
c. competitive orientation
d. market orientation
90. Kashi Heart to Heart cereal is aimed at people concerned about their heart health. These people represent the Kashi
a. marketing mix.
b. marketing strategy.
c. target market.
d. marketing tactic.
e. consumer advocates.
91. 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.
92. Your competition is beating you on price in your most important product market. In response, you decide to launch a
new ad campaign focusing your customers on the price attribute of your marketing mix. You need a catchy slogan that
conveys the attractiveness of your product’s pricing.
Which of the following slogans should you use to convey this message most effectively?
a. “Every Day You Get Our Best”
b. “Growing and Protecting Your Wealth”
c. “Expect More. Pay Less”
d. “There Is No Substitute”
e. “Always On Time…..Or You Don’t Pay A Dime”
93. 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?
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a. communicating with current customers via Facebook.
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.
94. The marketing environment is best described as being
a. composed of controllable variables.
b. composed of variables independent of one another.
c. an indirect influence on the performance of marketing activities.
d. dynamic and changing.
e. slow, with infrequent fluctuations.
95. You believe one of the most effective ways to remind your staff about key marketing concepts and objectives is to
give them desk plaques with simple phrases. You want to create a phrase that reminds them that their primary focus
should be creating customer value.
Which of the following phrases best tells the story of what customer value is?
a. “Customer Benefits = Customer Value – Customer Costs”
b. “Customer Value = Customer Benefits + Customer Costs”
c. “Customer Costs > Customer Benefits = Customer Value”
d. “Customer Value = Customer Benefits – Customer Costs”
e. “Customer Value = Customer Benefits = Customer Costs”
96. The hospitality industry including restaurants, hotels, and airlines rely on business travelers for a large portion of their
revenue and profitability. Research indicates that business travelers need to stay connected or tethered to their devices and
office even when on the road or between business appointments. In addition, business travelers demand convenience and
enhanced services such as remote check-in and check-out via their smartphone, checking flight schedules and delays
through travel applications, and access to rental cars without having to stop at the rental car counter. Organizations
serving the business travel market segment must provide enhanced services such as free wireless Internet access. The
research related to the business travel market segment indicates that companies serving these customers must be able to
leverage _______ changes in the marketing environment by providing customers with a variety of new products or
services such as wireless Internet, remote check-in, and remote access to rental cars.
a. sociocultural
b. economic
c. technological
d. political
97. Netflix has one of the highest customer loyalty ratings in the entertainment industry with approximately 74% of
current subscribers continuing to renew their subscription with Netflix on a month-to-month basis. In addition, many
customers have cancelled their cable or satellite subscriptions and rely almost exclusively on streaming services such as
Netflix for their entertainment. Netflix offers three different payment options or plans for customers—the basic plan at
$7.99 per month, standard plan at $8.99 per month, or a premium plan at $11.99 per month. Thus, subscribers who renew
on a monthly basis would pay between $95.88 and $143.88 per year to continue their Netflix service. If 74% of
subscribers continue their service on an annual basis, Netflix is able to build a stable revenue stream based upon repeat
purchasers. A quick snapshot of one customer revealed that the customer had subscribed to the Premium plan for five
years and generated over $700 in revenue to Netflix. Which of the following marketing terms best captures the importance
of customer loyalty and its impact on Netflix?
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a. customer impact score
b. customer retail calculation
c. customer lifetime value
d. customer profitability value
98. As the Industrial Revolution came to the United States, most firms operated in a(n) ____ orientation.
a. market
b. societal
c. sales
d. evolutionary
e. production
99. Mothers Against Drunk Driving (MADD) is a group that works to change attitudes and laws about driving under the
influence of alcohol. MADD primarily markets
a. goods
b. ideas.
c. services.
d. political figures.
e. applications.
100. Your company provides oil exploration services to major oil companies in Russia. The United States government just
announced it is imposing economic sanctions on Russia because of the military actions it has taken in Ukraine.
This situation is an example of which of the following types of forces that constantly impact a company’s dynamic
marketing environment?
a. Technological force
b. Sociocultural force
c. Political force
d. Legal and regulatory force
e. Economic force
101. To fully appreciate what an effective marketing concept means to the firm, the marketer must first understand that
_______________ is the major focus of the marketing concept. This in turn should enable the firm to _______________.
Ultimately, this all leads to _________________.
a. customer satisfaction; earn long-term profits; increased shareholder value
b. securing management; earn long-term profits; management continuity
c. employee satisfaction; earn long-term profits; positive labor relations
d. selling products; earn long-term profits; organizational stability
e. regulatory compliance; earn long-term profits; reduced regulatory costs
102. The successful marketer understands that the key to her success is the relationships her firm is able to develop with
current customers and potential customers. Moreover, her goal is to achieve the full potential of each of these
relationships for the benefit of the firm.
This marketer clearly understands
a. that the only way for the firm to increase profits is to constantly acquire new customers.
b. that customers’ needs, desires and habits are homogeneous.
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d. that data is of limited use in helping the firm understand the needs of customers.
e. that customer lifetime value only includes the value of what customers purchase from the firm.
103. 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?
a. An information system to determine customer needs
b. The organizational structure
c. Top-management commitment
d. Technological advancement
e. Scanning corporate capabilities
Scenario 1.2
Use the following to answer the questions.
Paws and Claws Hotel is a full-service pet salon and boarding kennel. Paws and Claws has an interactive website where
customers can directly book a grooming appointment, obedience class, or overnight accommodations for their dog or cat.
Paws and Claws has several unexpected services, such as a 600-square foot swimming pool, complete with slide and dog-
friendly graduated steps to help them exit the pool. Customers can also drop their dog or cat off each morning for pet day
care. Paws and Claws has a pick-up and delivery service, webcams in every kennel so that pet families can view their pets
while away, and pet “furniture” so that the cats and dogs can lie on sofas just like at home. Paws and Claws is also open
24 hours a day, 365 days each year so that customers can pick up their pet at any time.
The cost for an overnight stay at Paws and Claws averages $50, compared to competing kennels at about $30. The day
care costs are $25 for either a dog or cat. The majority of Paws and Claws’ competitors don’t offer the day care service,
and require an two-day minimum for overnight stays.
Informal discussions with customers led to the addition of pet day care and 24-hour hours of operation. Previously, Paws
and Claws was more interested in competing based on its prices.
104. Refer to Scenario 1.2. Paws and Claws’ addition of unexpected services, pick-up and delivery, and 24–hour access
while charging a higher price than its competition is best described as which type of value?
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.
105. StarKist Tuna announced a dolphin-safe policy and stopped buying tuna from fishing vessels that net dolphins. This
decision indicates a response to concerns about
a. target market selection.
b. the marketing environment.
c. the reduction of marketing costs.
d. marketing mix decisions.
e. efficiency in marketing activities.
106. Deciding to add gel insoles to its running shoes would be a change in the ____ element of the marketing mix for
Nike.
a. price
b. good
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c. product
d. promotion
e. distribution
107. The marketing concept affects
a. just the marketing department.
b. all organizational activities.
c. only marketing and finance.
d. only production and marketing.
e. few decisions in an organization.
108. 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.
109. Marketing professionals understand the challenges and implications of marketing in an inter-connected, global
economy. While the discipline is primarily focused on building mutually-beneficial customer relationships for the firm, it
has many other positive influences on the global economy that many in the general public are not aware of. For example,
marketing creates a successful economy and leads to a _______________ for people all over the world. Additionally,
______________ can promote the welfare of customers and the firm’s stakeholders.
a. equal standard of living; green marketing
b. higher standard of living; socially responsible marketing
c. higher level of education; target marketing
d. higher level of political awareness; socially responsible marketing
e. higher level of healthcare; non-profit marketing
110. The majority of the heads of marketing for most multinational corporations would likely describe marketing as a very
complex discipline. They will give a long list of variables and factors that impact a company’s marketing success. Most of
these variables and factors are part of what is called the marketing environment.
The U.S. unemployment rate would fall under which set of forces in the marketing environment?
a. Sociocultural Forces
b. Political Forces
c. Economic Forces
d. Competitive Forces
e. International Trade Forces
111. Which of the following best characterizes the forces of the marketing environment?
a. The forces are relatively stable over time and are interrelated with one another.
b. There are few overlapping aspects of these forces; therefore, a change in one is unlikely to result in a change in
another.
c. The various forces ensure that the marketing environment will remain fairly certain in the future.
d. These forces change dramatically over time, but a change in one force is unlikely to impact another force.
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e. The forces change dramatically and quickly, and a change in one force is likely to affect the other forces.
112. The element of the marketing mix used to increase awareness of a product or company is
a. communication.
b. product.
c. price.
d. distribution.
e. promotion.
113. Which one of the following statements is true regarding the global impact of marketing?
a. Marketing encourages governments to be more open and transparent with their citizens.
b. Marketing facilitates the efficient allocation and distribution of natural resources around the world.
c. Marketing is effective in minimizing the cyclical ups and downs in the global economy.
d. Marketing improves the quality of life of customers.
e. Only for-profit organizations utilize marketing.
114. Boca Burger’s website features information about products, recipes, and nutritional values, but customers cannot
actually purchase products from the website. This website is most likely used primarily as a ____ marketing tool.
a. promotional
b. distributional
c. pricing
d. targeting
e. production
115. The primary value that a marketer expects to receive from a customer in an exchange relationship is
a. the price charged for the product.
b. customer satisfaction.
c. references to other potential customers.
d. quality merchandise that meets expectations.
e. few returns of the merchandise purchased.
116. 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
117. Rob Donaldson runs a successful wholesale business that sells equipment to restaurants throughout the Midwest. He
is considering purchasing his own fleet of trucks to deliver the equipment instead of relying on a shipper as he is currently
doing. This most closely represents a decision about
a. which market he should target.
b. the best way to distribute his products.
c. how to effectively promote his business.
d. the product he provides to his customer.
e. which supplier he should use.
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Scenario 1.1
Use the following to answer the questions.
Greensprings Cemetery in upstate New York, offers a full-service funeral and burial that is non-toxic to the environment.
All materials used in the burial are natural and will decompose with no negative impact. Greensprings’ service is relatively
new in the United States, but services of this type are common in Great Britain. A typical burial in Greensprings’ cemetery
includes a casket made from bamboo, wicker, paper, or other natural material. There are no headstones of stone or
concrete that will detract from the landscape, but trees and plants as “markers” are allowed. The cost for a burial at
Greensprings is approximately $3,000, compared to about $6,000 at most traditional cemeteries. Although business was
slow at first, Greensprings is now experiencing an increase in the number of burials, due to referrals and a newly-
developed website. The owners of Greensprings were previously in the cemetery business, and are active conservationist
and wanted to make their business more sustainable. After conducting research and finding that there were natural burial
sites in Great Britain, they wanted to provide an alternative to other environmentally-conscious Americans like
themselves.
118. Refer to Scenario 1.1. Greensprings’ main competitive advantage over traditional cemeteries comes from its attention
to which element in the marketing mix?
a. Product
b. Price
c. Promotion
d. Distribution
e. Marketing research
119. Toyota conducts extensive consumer research and discovered that Latinos are reportedly 15% more likely
to buy a Japanese auto brand, like Nissan, Honda, or Toyota, than any other group ethnic group. Toyota is
interested in the Latino market since they represent 20% to 30% of the brands’ overall consumers. Due to its
extensive use of research and customer insight, Toyota has been the top-selling brand for Hispanics for over 10
years thanks to effective marketing, like the “Somos Muchos Toyota” campaign and the implementation of
Total Toyota in 2014. Toyota created the Total Toyota strategy, or T2, to increase its focus on minority
communities and enhance sales by heading up the project with a team of minority leaders in local business
communities. Based upon this information, which orientation best applies to Toyota?
a. sales orientation
b. target market orientation
c. market orientation
d. production orientation
120. The marketing concept is a philosophy that states that an organization should try to satisfy customers’ needs and also
a. increase market share.
b. increase sales.
c. achieve the organization’s goals.
d. produce high-quality products.
e. coordinate its activities to increase production.
121. Which of the following is essentially an uncontrollable factor in developing a marketing mix?
a. Product adaptations
b. Pricing strategies
c. Government regulations
d. Advertising campaigns
e. Retail locations