108. 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
109. Customers are interested in a product’s price because they are concerned about the value obtained in an exchange.
a. True
b. False
110. Price is seldom used as a competitive tool.
a. True
b. False
Chapter 1 – Customer-Driven Strategic Marketing
111. For an exchange to occur, it should provide a benefit or satisfaction to both parties involved in the transaction.
a. True
b. False
112. 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
113. Marketing activities do not always result in exchanges.
a. True
b. False
Chapter 1 – Customer-Driven Strategic Marketing
114. The outcomes of a marketer’s decisions and actions may be affected by the variables in the marketing environment.
a. True
b. False
115. Changes in the marketing environment always hurt marketing efforts.
a. True
b. False
116. The marketing environment is a set of static and constant surroundings.
a. True
b. False
Chapter 1 – Customer-Driven Strategic Marketing
117. Value is calculated as customer costs – customer benefits.
a. True
b. False
118. A major customer cost such as risk can be reduced by offering good basic warranties or extended warranties for
an additional charge.
a. True
b. False
119. Customer benefits include time and effort.
a. True
b. False
Chapter 1 – Customer-Driven Strategic Marketing
120. The process people use to determine the value of a product is not highly scientific.
a. True
b. False
121. The marketing concept stresses that a business organization can best achieve its goal by providing customer
satisfaction through coordinated activities.
a. True
b. False
122. Achievement of the firm’s overall goals is part of the marketing concept.
a. True
b. False
Chapter 1 – Customer-Driven Strategic Marketing
123. 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
124. The marketing concept is a philanthropic philosophy aimed at helping customers at the expense of the business
organization.
a. True
b. False
125. The marketing concept is a management philosophy, not a second definition of marketing.
a. True
b. False
Chapter 1 – Customer-Driven Strategic Marketing
126. The marketing concept deals only with marketing activities.
a. True
b. False
127. Profit, even at the expense of customers’ satisfaction, is the major thrust of the marketing concept.
a. True
b. False
128. The marketing concept directly affects marketing activities but should have negligible impact on other organizational
activities.
a. True
b. False
Chapter 1 – Customer-Driven Strategic Marketing
129. The market concept stresses that an organization can best achieve its objectives by being customer-oriented.
a. True
b. False
130. 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
131. During the market orientation, businesspeople realized that if they could produce products efficiently, customers
would buy them.
a. True
b. False
Chapter 1 – Customer-Driven Strategic Marketing
132. 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
133. 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
134. 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
Chapter 1 – Customer-Driven Strategic Marketing
135. To satisfy customers’ objectives as well as its own, a company must coordinate all its activities.
a. True
b. False
136. 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
137. 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
Chapter 1 – Customer-Driven Strategic Marketing
138. 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
139. 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
140. Marketing costs consume about one-half of a buyer’s dollar.
a. True
b. False
Chapter 1 – Customer-Driven Strategic Marketing
141. For a business organization to remain healthy and to survive, it must sell products and make profits.
a. True
b. False
142. The knowledge about marketing enables consumers to evaluate the types of corrective measures needed to stop
questionable marketing practices.
a. True
b. False
Chapter 1 – Customer-Driven Strategic Marketing