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122. ____ is a customer’s subjective assessment of benefits relative to costs in determining the worth of a product.
a. Marketing orientation
b. Monetary price
c. Product assessment
d. Price assessment
e. Value
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.
123. Refer to Scenario 1.1. Greensprings’ competitors, the traditional cemeteries, focus on advertising and personal selling
of their services. This indicates a(n) ____ orientation.
a. sales
b. marketing
c. production
d. environmental
e. marketing concept
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.
124. Refer to Scenario 1.1. A new website has helped Greensprings’ pre-planned funeral business grow. These would
come under which of the following marketing mix variables?
a. Product
b. Price
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c. Distribution
d. Promotion
e. Promotion and price
125. Marketing is the process of
a. promoting products through personal selling and advertising to develop and maintain favorable relationships with
customers and stakeholders.
b. creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with
customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment.
c. delivering a standard of living to a society.
d. creating, distributing, promoting, and pricing goods, services, and ideas to facilitate the achievement of the firm’s
objectives.
e. focusing on customers’ needs.
126. . Making modifications to packaging or brand names involves the ____ component of the marketing mix.
a. price
b. promotion
c. market
d. distribution
e. product
127. The central focus of the marketer’s activities is to develop mutually-beneficial relationships with customers and
potential customers. If the marketer is able to convince the customer to buy the firm’s products, then the customer’s
lifetime value to the firm is enhanced. Marketers also seek to encourage the customer’s _________________ the firm’s
products because that will ____________ the customers’ lifetime value to the firm.
a. strong word-of-mouth communication about; increase.
b. critique of; increase.
c. passive word-of-mount communication about; maintain.
d. strong word-of-mouth communication about; stabilize
e. critique of; maintain
128. A marketing manager decides what combination of variables is needed to satisfy customers’ needs for a general type
of product. What are the essential variables that the marketing manager combines?
a. Product, price, distribution, and promotion variables
b. Marketing environment variables
c. Product and promotion variables
d. Product, price, and customer variables
e. Product, price, customer, and promotion variables
129. Approximately what percentage of civilian workers in the United States performs marketing activities?
a. 25 to 33 percent
b. 81 to 92 percent
c. 42 to 50 percent
d. 64 to 76 percent
e. 10 to 20 percent
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130. The application of mechanical and human efforts to either people or objects to provide intangible benefits to
customers is known as a(n)
a. issue.
b. experience
c. idea.
d. good.
e. service.
131. If a family spends $2,000 a month on goods and services, how much of that $2,000 goes for marketing activities?
a. $2,000
b. $1,500
c. $1,000
d. $500
e. $0
132. The marketing concept is a ______________ that guides the overall activities of an organization. It has evolved over
time from a ______________ in the second half of the 19th century to a _____________ today.
a. sales philosophy; product orientation; sales orientation
b. philanthropic philosophy; product orientation; market orientation
c. tactical philosophy; product orientation; market orientation
d. management philosophy; product orientation; market orientation
e. ethical philosophy; product orientation; sales orientation
133. The marketing concept is
a. a management philosophy.
b. synonymous with exchange.
c. a component of the marketing mix.
d. a function of the marketing environment.
e. focused solely on satisfying customer objectives.
134. The Church of the Latter Day Saints has used advertising for many years, airing a commercial TV spot that shows
parents actively playing games with their children. The Church is using marketing to promote its
a. goods.
b. services.
c. experiences.
d. production.
e. ideas.
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
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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.
135. Refer to Scenario 1.2. The fact that Paws and Claws is open 24 hours each day is part of the _______ marketing mix
variable while the swimming pool is part of the _______ variable.
a. Product; Distribution
b. Price; Product
c. Distribution; Promotion
d. Distribution; Product
e. Distribution; Environment
136. Which of the following statements about marketing environment forces is correct?
a. They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products.
b. They do not influence customers’ reactions to a firm’s marketing mix.
c. They fluctuate slowly and thereby create threats to a firm’s marketing mix.
d. They never fluctuate quickly.
e. They do not influence the way a marketing manager performs certain marketing activities.
137. In today’s market environment, you might pay $16 for a physical CD by your favorite musical artist. Approximately
how much of that price goes to activities related to marketing (promotion, distribution, profit margins)?
a. $10.25
b. $4.00
c. $5.10
d. $8.00
e. $12.75
138. Customer costs include anything the buyer must give up in order to obtain the benefits the product provides. The
most obvious customer cost is
a. risk.
b. time.
c. monetary price.
d. effort.
e. availability.
139. The marketing concept focuses on
a. achieving the goals of top executives.
b. creating maximum visibility for the firm.
c. maximizing sales in a way that helps to achieve organizational objectives.
d. maximizing market share in a way that helps to achieve organizational objectives.
e. satisfying customers’ needs in a way that helps to achieve organizational objectives.
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140. Managing customer relationships requires identifying patterns of ____ and then using that information to focus on
the most promising and profitable customers.
a. demographics
b. buying behavior
c. retailer information
d. personality differences
e. stock market cycles
141. Which of the following companies is the best example of a service marketer?
a. FedEx
b. Sony
c. Abercrombie & Fitch
d. The Democratic Party
e. General Electric
142. You are starting a new job next week at a consumer products company in Redmond, Washington. You will be
responsible for managing the company’s inventory levels, as well as the related transportation and storage costs. You will
rely heavily on some previously-established relationships as you refine the firm’s interactions with its various
intermediaries.
Your job responsibilities primarily relate to which of the following marketing mix variables?
a. Financial
b. Price
c. Distribution
d. Promotion
e. Product
143. Marketing managers strive to develop a marketing mix that
a. minimizes marketing costs.
b. matches what competitors are offering.
c. best matches the abilities of the firm.
d. matches the needs of the target market.
e. generates the highest level sales.
144. Marketing activities are
a. used by all sizes of organizations including for-profit, nonprofit, and government agencies.
b. limited to use by larger for-profit and nonprofit organizations.
c. implemented only to increase profits for the organization and to expand the scope of its customer base.
d. used by all types and sizes of businesses but are not used by nonprofit organizations.
e. used by small businesses and small nonprofit organizations the most.
145. You will give the keynote address at the annual meeting of the American Manufacturing Association. You realize
most of the attendees think marketing is just advertising. So, you decide to start your keynote address by defining what
marketing is in order to set the proper context for your speech.
You define marketing as:
a. the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying
exchange relationships with customers.
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b. the process of persuading or seeking to persuade a customer or organization to take a preferred course of action.
c. the process of speaking or writing in support or defense of a firm’s products or services.
d. the process or practice of calling public attention to a firm’s goods and services through communications in print
media, social media or other forms of information distribution.
e. the process of proving that a product or service offered by an organization meets or exceeds customers’
expectations.
146. The Gap conducted marketing research to identify explanations for the sales declines their various retail stores (e.g.,
Gap, Banana Republic, and Old Navy) are experiencing across the United States. The research focused on understanding
the shopping habits and desires of their target market—the Millennial generation. The results indicate that Millennials are
more interested supporting organizations who stand for something—or support a cause or contribute to providing social
justice. The information can assist The Gap in reorganizing their company, developing new products and communicating
with their target audiences to be more effective. Based upon this information, which orientation best applies to The Gap?
a. sales orientation
b. target market orientation
c. market orientation
d. production orientation
147. When Ikea showcases rooms of furniture on its website, it lists each item in the room. However, if customers like all
of the items, they can purchase them as a bundle. Which of the following aspects of the marketing mix is Ikea likely
altering?
a. Price
b. Promotion
c. Distribution
d. Product
e. Target market
148. For most firms, the costs of marketing activities consume approximately what portion of the consumer’s dollar?
a. One-half
b. One-fifth
c. One-fourth
d. One-third
e. One-sixth
149. Marketing activities
a. are aimed at persuading customers through advertising.
b. involve mainly distribution and promotion decisions.
c. and selling activities are basically the same.
d. are important only when a firm is developing new products or entering new markets.
e. help sell an organization’s products and generate financial resources for the firm.
150. When DataComp Corp., a producer of software, delayed the introduction of its new spreadsheet app to modify the
package, its scheduled TV advertisements announcing the new product needed to be revised. In this case, a change in the
____ variable caused changes in the ____ variable of the marketing mix.
a. distribution; promotion
b. distribution; product
c. product; price
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d. product; promotion
e. promotion; price
151. According to the marketing concept, an organization should try to
a. consider short-run objectives and cash flow needs before developing new products.
b. define its business as “making a product.”
c. provide products that satisfy customers’ needs and allow the organization to achieve its goals.
d. put most of its emphasis on marketing activities and be less concerned with finance, accounting, and personnel.
e. view selling activities as the major means of increasing profits.
152. A New York-based brand and customer loyalty and engagement research consultancy firm called Brand Keys
conducts research annually to identify the top 100 brands with the highest levels of customer loyalty. Apple, WhatsApp,
Google, YouTube, and Kindle lead the pack and demonstrate that consumers are enjoying long-term engagement with
these companies. The top company’s ability to generate high levels of customer loyalty demonstrates these firms are
engaging in ________ marketing.
a. relationship marketing
b. competitive marketing
c. production marketing
d. sales-oriented marketing
153. The marketing mix is built around the
a. product.
b. company.
c. customer.
d. employee.
e. retail outlet.
154. U.S. Electric, the maker of a highly innovative xenon light bulb used in large, manufacturing facilities, finds that it
has excess inventory. The firm increases its direct marketing budget by 20 percent and adds three new sales
representatives. This company is operating as if it were in which of the following orientations?
a. Production
b. Sales
c. Market
d. Customer
e. Societal
155. Issues of inventory levels and storage costs are both concerns relating to the ____ variable of the marketing mix.
a. distribution
b. product
c. exchange
d. price
e. promotion
156. When DuPont develops new carpet fibers that are highly stain-resistant and durable, it must educate consumers about
the product’s benefits. This calls for activity in which of the following marketing mix variables?
a. Price
b. Promotion
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c. Distribution
d. Product
e. Packaging
157. The public is becoming more aware of how marketers’ activities affect the welfare of consumers and society. As a
result, more firms are working to
a. raise prices in order to increase their profits so that they can contribute to philanthropic causes.
b. reduce the quality of their products in order to save money and provide less expensive products to their
consumers.
c. reduce their profits by donating more time and money to improve social welfare and environmental conditions.
d. enact laws requiring companies to work toward the welfare of customers and society
e. create a responsible approach to developing long-term relationships with customers and society.
158. Creating long-term relationships with customers is a key component to surviving and thriving in today’s competitive
business landscape. One tactic many companies are deploying is the use of membership or loyalty programs where
customers can accumulate points and receive discounts or free merchandise. For example, Kimpton Hotels encourages
customers to join their membership program and provide key contact information such as their e-mail, address, and phone
number. Kimpton Hotels offers benefits such as upgrades and free room nights based on the number of stays or points a
customer has accumulated. This example demonstrates how Kiimpton Hotels is utilizing:
a. marketing mix deployment
b. customer relationship management
c. marketing technology
d. competitive insight
159. Which of the following would not be a customer cost considered in determination of product value?
a. Product’s purchase price
b. Time spent purchasing the product
c. Effort spent purchasing the product
d. Benefits received in the exchange for the products
e. Risk of purchasing the product
160. The equation a buyer applies to assess a product’s value is
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.
161. In the last several years, the Western part of the United States has faced severe drought conditions with a lack of rain
in states such as New Mexico, Arizona, and California. In these communities, WalMart collects rainwater in underground
tanks and saves it to water the store’s landscaping. In addition, WalMart takes advantage of other opportunities to
conserve water. They have installed high-efficiency urinals that reduce water use by 87% compared to the conventional 1-
gallon-per-flush urinals throughout all new stores. These high-efficiency toilets use 20% less water compared to allowable
EPA standards of up to 1.6 gallons per flush. Based upon this information, it seems that WalMart is engaging in:
a. environmental marketing
b. sustainable marketing
c. eco-marketing
d. green marketing
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162. The H&R Block company wants to adopt the marketing concept as a business philosophy. To be consistent with this
decision, which of the following philosophies is most appropriate?
a. The customer is always right.
b. Making money is our business.
c. Sell, sell, sell.
d. Keep prices low.
e. Focus on today.
163. A market orientation is an organization-wide effort that includes all of the following activities except
a. researching customers’ needs.
b. focusing on the marketing department only.
c. generating marketing intelligence for use in the organization.
d. being responsive to customers’ ever-changing wants and needs.
e. disseminating marketing intelligence across departments within the organization.
164. During the Industrial Revolution demand for manufactured goods was
a. weak.
b. nonexistent
c. declining.
d. strong.
e. mediocre.
165. When Campbell’s introduced a line of low-sodium soups in response to customer demand, it was following which
one of the following philosophies?
a. Selling concept
b. Production concept
c. Customer concept
d. Marketing concept
e. Retailing 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.
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.
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166. Refer to Scenario 1.2. If Paws and Claws employs the philosophy of building a relationship with its dog and cat
customers, and their owners, it will be implementing the
a. marketing concept.
b. production concept.
c. sales concept.
d. marketing mix.
e. marketing environment.
167. The definition of marketing implies that ____ should receive benefits from exchange relationships.
a. only customers
b. only businesses
c. company management
d. both customers and businesses
e. only the most important customers
168. What does it mean for a company to be marketing-oriented? What are the most important factors involved in being
marketing-oriented?
169. Explain why marketing efforts should be oriented toward creating and sustaining satisfying exchange relationships.
170. Describe several activities encompassed by the distribution variable.
171. Define the term value, and explain how people determine a product’s value.
172. Suppose you are a marketing manager at Procter & Gamble for a new, all-purpose cleaning product. List four
marketing mix variables and describe the decisions and activities associated with each.
173. Define the term target market and provide an example for a product of your choice.
174. Why is marketing important to businesses and to the economy?
175. Discuss the concept of green marketing and why it is important to marketers.
176. Explain why a knowledge of marketing is beneficial for all students.
177. Describe the three different types of products.
178. What is meant by the term marketing concept, and what departments of a company does it affect?
179. What is meant by the term relationship marketing? How does relationship marketing affect the customer?
180. What are the three ways that marketing environment forces affect a marketer’s ability to create satisfying exchange
relationships?
181. Discuss the evolution of the marketing concept through the various types of orientation.
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Answer Key
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