82. 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.
d. energy-conscious marketing.
e. socially-conscious marketing.
83. 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.
Chapter 1 – Customer-Driven Strategic Marketing
84. 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.
85. Marketing knowledge and skills:
a. are not necessary for a nonprofit organization.
b. enhance consumer awareness and help provide people with satisfying goods and services.
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.
Chapter 1 – Customer-Driven Strategic Marketing
86. 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.
Chapter 1 – Customer-Driven Strategic Marketing
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.
87. 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
c. Distribution
d. Promotion
e. Promotion and price
Chapter 1 – Customer-Driven Strategic Marketing
88. Refer to Scenario 1.1. Greensprings’ main competitive advantage over traditional cemeteries comes from its
attention to the _____element in the marketing mix.
a. product
b. price
c. promotion
d. distribution
e. marketing research
89. Refer to Scenario 1.1. The customers of Greensprings Cemeteries most likely prefer it 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
Chapter 1 – Customer-Driven Strategic Marketing
90. 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
Chapter 1 – Customer-Driven Strategic Marketing
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 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.
91. Refer to Scenario 1.2. Paws and Claws’ target market is most likely to be _____.
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
Chapter 1 – Customer-Driven Strategic Marketing
92. 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
93. RefertoScenario1.2.PawsandClaws’additionofunexpectedservices,pickupanddelivery,and24houraccess
while charging a higher price than its competition is best described as:
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.
Chapter 1 – Customer-Driven Strategic Marketing
94. 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.
95. 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.
Chapter 1 – Customer-Driven Strategic Marketing
96. Marketing consists primarily of selling and advertising.
a. True
b. False
97. 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
98. Customers are the focal point of all marketing activities.
a. True
b. False
Chapter 1 – Customer-Driven Strategic Marketing
99. A family that organizes and advertises a garage sale is performing marketing activities.
a. True
b. False
100. A target market is a specific group of customers on whom an organization focuses its marketing efforts.
a. True
b. False
101. A target market is always defined by demographics.
a. True
b. False
Chapter 1 – Customer-Driven Strategic Marketing
102. Target markets are people who buy the product but do not necessarily use the product.
a. True
b. False
103. Marketing efforts do not involve the design and development of products.
a. True
b. False
104. Products can be goods, services, or ideas.
a. True
b. False
Chapter 1 – Customer-Driven Strategic Marketing
105. Services are provided by applying human and mechanical efforts to people or objects.
a. True
b. False
106. The actual physical production of goods is a marketing activity.
a. True
b. False
107. Promotion can help sustain interest in established products that have long been available.
a. True
b. False
Chapter 1 – Customer-Driven Strategic Marketing