42. When Ikea Inc. 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
being adopted by Ikea?
a. Price
b. Promotion
c. Distribution
d. Product
e. Target market
43. 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
d. product; promotion
e. promotion; price
Chapter 1 – Customer-Driven Strategic Marketing
44. Marketing facilitates exchange relationships between buyers and sellers. What is the intended outcome for this
relationship in marketing?
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
45. 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 do not 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.
Chapter 1 – Customer-Driven Strategic Marketing
46. The forces of the marketing environment include:
a. political, legal and regulatory, sociocultural, technological, economic, and competitive.
b. sociocultural, legal, regulatory, economic, and competitive.
c. legal, regulatory, political, and sociocultural.
d. competitive and noncompetitive forces that affect most lifestyles.
e. fairly static components.
47. 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.
e. The forces change dramatically and quickly, and a change in one force is likely to affect the other forces.
Chapter 1 – Customer-Driven Strategic Marketing
48. 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
49. 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.
Chapter 1 – Customer-Driven Strategic Marketing
50. 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
51. 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.
Chapter 1 – Customer-Driven Strategic Marketing
52. 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.
53. The marketing concept is best defined as:
a. acustomer’ssubjectiveassessmentofbenefitsrelativetocostsindeterminingtheworthofaproduct.
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.
Chapter 1 – Customer-Driven Strategic Marketing
54. 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.
55. 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.
Chapter 1 – Customer-Driven Strategic Marketing
56. The marketing concept focuses on:
a. achieving the goals of top executives.
b. creating maximum visibility for the firm.
c. maximizing sales.
d. maximizing market share.
e. satisfying customers’ needs in a way that helps to achieve organizational objectives.
57. 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.
Chapter 1 – Customer-Driven Strategic Marketing
58. 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.
59. Campbell has introduced a line of low-sodium soups in response to customer demand. Which of the following
philosophies has been incorporated by Campbell?
a. Selling concept
b. Production concept
c. Customer concept
d. Marketing concept
e. Retailing concept
Chapter 1 – Customer-Driven Strategic Marketing
60. The H&R Block company intends 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
61. 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
Chapter 1 – Customer-Driven Strategic Marketing
62. During the Industrial Revolution demand for manufactured goods was:
a. weak.
b. non-existent.
c. declining.
d. strong.
e. paltry.
63. 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
Chapter 1 – Customer-Driven Strategic Marketing
64. U.S. Electric Inc., 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. Which of the following orientations has been adopted by this company?
a. Production
b. Sales
c. Market
d. Customer
e. Societal
65. TMobile Corp.TM
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 _____ orientation.
a. production
b. sales
c. market
d. social
e. development
Chapter 1 – Customer-Driven Strategic Marketing
66. 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. Fordaskscustomerstovoteonlineforanewcolorfornextyear’sFordFocus.
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.
67. Health Care Systems, Inc. rolls out an innovative nurse-on-call data system available online. The product is not
widely accepted because patients don’t see the need for such a service. According to the marketing concept, this
situation represents a failure in _____.
a. an information system to determine customer needs
b. the organizational structure
c. top-management commitment
d. technological advancement
e. scanning corporate capabilities
Chapter 1 – Customer-Driven Strategic Marketing
68. Wonder Inc. 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 Inc. was most likely following
the_____.
a. selling concept
b. production concept
c. marketing concept
d. customer concept
e. retailing concept
69. 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.
Chapter 1 – Customer-Driven Strategic Marketing
70. Laura, 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.
71. 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.
Chapter 1 – Customer-Driven Strategic Marketing
72. 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 the area Ben should
consider first?
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 new sweepstakes for frequent customers
73. Long-term relationships with profitable customers are the key objective of:
a. personal selling.
b. customer relationship management.
c. production oriented firms.
d. e-marketing.
e. distribution channels.
Chapter 1 – Customer-Driven Strategic Marketing
74. 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
75. _____ 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
Chapter 1 – Customer-Driven Strategic Marketing
76. 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.
77. 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.
Chapter 1 – Customer-Driven Strategic Marketing
78. Which of the following would not be a customer cost considered in the 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
79. 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 the value of
software products?
a. Speed of delivery
b. Ease of installation
c. Availability of technical support
d. Availability of training assistance
e. Monetary price
Chapter 1 – Customer-Driven Strategic Marketing
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. Which of the following statements describes the best use of the Internet by John, a marketer, to establish his
business units across the globe ?
a. Reach out to buyers
b. Relay product information
c. Facilitate the marketing process
d. Accumulate as many friends as possible
e. Facilitate the marketing exchange, obtain customer feedback, and provide product information
Chapter 1 – Customer-Driven Strategic Marketing