b.
utilitarian and hedonic
c.
personal and social
d.
primary and secondary
e.
temporal and stable
28. _____ value is derived from a product that helps a consumer solve problems and accomplish tasks that
are a part of being a consumer.
a.
Utilitarian
b.
Functional
c.
Terminal
d.
Purchase
e.
End-state
29. Sam needed a new pair of bicycle pedals. After visiting several stores to find the right ones, he
purchased a pair from a local store called All Things Sports and was satisfied that his needs were met.
Which of the following best describes the type of value Sam received?
a.
End-state value
b.
Premium value
c.
Terminal value
d.
Utilitarian value
e.
Purchase value
30. _____ value is the immediate gratification that comes from experiencing some activity.
a.
Hedonic
b.
Utilitarian
c.
End-state
d.
Process
e.
Terminal
31. Natalie and her friends enjoy visiting upscale stores together even if they do not purchase anything.
For them, the experience of shopping is an end in itself, not just a means to an end. While shopping,
which of the following types of values do Natalie and her friends experience?
a.
Utilitarian value
b.
Pleasure-seeking value
c.
Hedonic value
d.
Experiential value
e.
Augmented value
32. Which of the following is true about the two basic types of values?
a.
Utilitarian value is an end in and of itself rather than a means to an end.
b.
Hedonic value is very emotional and subjective in nature.
c.
Utilitarian value is the immediate gratification that comes from experiencing some
activity.
d.
Utilitarian value is immediate whereas hedonic value is delayed.
e.
Hedonic value is provided by an activity because the activity allows something good to
happen or be accomplished.
33. A planned way of doing something is known as _____.
a.
marketing myopia
b.
a mission
c.
a strategy
d.
utilization
e.
a terminal value
34. FordTech is a software company whose clients are based in France. The company has formed a team
to decide the direction the organization should take over the next five years. The focus of this team is
to increase their clientele in Europe. The company is keen on taking advantage of the opportunities and
avoiding threats in the changing environment. This team is involved in developing the _____ for the
organization.
a.
architecture
b.
layout
c.
schema
d.
blueprint
e.
strategy
35. Which of the following terms refers to the way a company goes about creating value for its customers?
a.
Schema
b.
Marketing strategy
c.
Social inclusion
d.
Blueprint
e.
Focus
36. When firms fail to realize how their products provide value, they run the risk of developing _____.
a.
marketing myopia
b.
cognitive dissonance
c.
negative affect
d.
marketing dissonance
e.
marketing disconnect
37. Cullen and MacNeil’s is a well-known store that sells writing material. The company faces strong
competition from the electronic media. If the company thinks of itself merely as a paper company
instead of a company that delivers the benefits users want, it could be taking a short-sighted view of its
business. That is, Cullen and MacNeil’s could suffer from _____.
a.
brain drain
b.
cognitive dissonance
c.
marketing disconnect
d.
marketing myopia
e.
product devaluation
38. _____ strategy deals with how the firm will be defined and sets general goals.
a.
Corporate
b.
Marketing
c.
Tactical
d.
Top-level
e.
Meta
39. Which of the following is an example of a marketing tactic?
a.
Implementing a new technology in order to reduce costs over the next few years
b.
Analyzing the budget for the next two years
c.
Focusing on the five-year plan
d.
Distributing a product only through discount stores
e.
Setting the company’s sales goal
40. A departmental store realizes that it needs to increase revenue in the face of severe budget cuts due to
the weak economy. The store has decided to run a sale every month and upgrade their stock more
regularly, so that customers don’t see the same products every month. They are going to begin offering
a wider selection of brands for men and women. They plan to advertise on billboards, on radio, on
television, and in newspapers throughout the state. The store will also send direct mail letters to
regular customers. The sale, the wide selection of brands, and the promotion are examples of _____.
a.
blue ocean strategy
b.
product differentiation
c.
marketing tactics
d.
marketing augmentation
e.
task implementation
41. A(n) _____product includes the original product plus the extra things needed to increase the value
from consumption.
a.
augmented
b.
secondary
c.
complete
d.
enhanced
e.
terminal
42. Andrea purchased an Apple iPad and an extended warranty. She also purchased a gaming application
specially developed for Apple iPad. The application purchased by Andrea, is an example of a(n) _____
product.
a.
terminal
b.
segmented
c.
extended
d.
augmented
e.
complete
43. The business practice wherein companies operate with the understanding that products provide value
in multiple ways is called the _____ concept.
a.
net worth
b.
total value
c.
value marketing
d.
product value
e.
multifaceted product
44. While buying a car, a potential buyer takes into consideration several aspects of the car, such as its
design, quality, ease of servicing, speed, and mileage. An automobile company, that takes into
consideration all these aspects while manufacturing and selling its cars, is said to be practicing the
_____ concept.
a.
value marketing
b.
multifaceted product
c.
total value
d.
product value
e.
net worth
45. The realization that a consumer is necessary and must play a part in order to produce value is the major
premise underlying the concept of _____.
a.
synergy
b.
value integration
c.
value internalization
d.
value co-creation
e.
dyadic valuation
46. Which of the following is an element of the marketing mix?
a.
Quality
b.
Pricing
c.
Design
d.
Use
e.
Span
47. The market segment a company will serve with a specific marketing mix is referred to as the _____
market.
a.
target
b.
primary
c.
elementary
d.
capital
e.
dominant
48. Prime’s is a company that manufactures and markets suits for professional kayakers. These consumers
are predominantly males in the age group of 25-45 years. This market segment that Prime’s serves
with a specific marketing mix is called its _____.
a.
preferred market
b.
optimum market
c.
target market
d.
dominant market
e.
elementary market
49. _____ is the separation of a market into groups based on the different demand curves associated with
each group.
a.
Market zoning
b.
Market augmentation
c.
Market positioning
d.
Market segmentation
e.
Market selection
50. Community Trust Bank is analyzing its customer data to determine if groups other than the business
customers can be identified. The bank is looking at the frequency of branch visits, use of ATMs,
online banking activity, loan activity, and account balances for each customer. The bank has identified
three groups of customers based on these factors and is considering offering different products to
better meet the needs of each group. Which of the following marketing concepts is represented by this
exercise?
a.
Total value concept
b.
Market segmentation
c.
Value reengineering
d.
Marketing audit
e.
Environmental scanning
51. Which of the following terms is used to represent market sensitivity to changes in price or other
characteristics?
a.
Elasticity
b.
Differentiation
c.
Congruity
d.
Segmentation
e.
Positioning
52. A product with backward sloping demand displays _____.
a.
a negative price-quantity relationship
b.
a higher consumer sensitivity toward price than toward other product factors
c.
a neutral price-quantity relationship
d.
a positive price-quantity relationship
e.
a higher consumer sensitivity toward product quality than toward price
53. _____ refers to a marketplace condition in which consumers do not view all competing products as
identical to one another.
a.
Product positioning
b.
Product differentiation
c.
Marketing positioning
d.
Competitive advantage
e.
Market differentiation
54. Consumers do not view all types of coffee as identical to one another. Some prefer iced coffee, while
others will only drink non-fat latte. Still others will only drink chai latte or a cappuccino. This
marketplace condition in which consumers do not view all competing products as identical to one
another is called _____.
a.
product differentiation
b.
product variation
c.
market segmentation
d.
perceptual differentiation
e.
selective perception
55. Product _____ refers to the way a product is perceived by a consumer.
a.
differentiation
b.
augmentation
c.
positioning
d.
segmentation
e.
perception
56. Which of the following is used to depict graphically the positioning of competing products?
a.
Product blueprint
b.
Schema
c.
Perceptual map
d.
Product map
e.
Demand curve
57. A cosmetic manufacturer that targets young women was looking at a graphical display of how women
perceived different brands of cosmetics. They found that their brand was clustered with brands that are
targeted toward older women. This graphical depiction of the positioning of competing brands used by
the marketer is an example of a _____.
a.
perceptual map
b.
BCG matrix
c.
competitive matrix
d.
competitive array
e.
positioning plot
58. Which of the following, on a perceptual map, represents the combination of product characteristics
that provide the most value to an individual consumer or market segment?
a.
Touch point
b.
Maximum point
c.
Optimum point
d.
Ideal point
e.
Slope intercept
59. What do the x- and y-axes on a perceptual map represent?
a.
How competitors perform on the two most important attributes to consumers-price and
quality
b.
The ideal combination of attributes and the actual combination of attributes of all
competitors in the market
c.
Dimensions used to separate competitors on a specific characteristic
d.
Growth rate of the market and market shares of each competitor
e.
Factors used to identify market segments
60. The approximate worth of a customer to a company in economic terms is known as the _____.
a.
net present value (NPV)
b.
customer lifetime value (CLV)
c.
customer present value (CPV)
d.
customer future value (CFV)
e.
total customer value (TCV)
61. Customer lifetime value includes the net present value of the stream of profits over a customer’s
lifetime and _____.
a.
the costs associated with satisfying that customer
b.
the costs associated with keeping that customer for more than 10 years
c.
the retention rate for all customers
d.
opportunity cost saved from having loyal customers
e.
the worth attributed to the equity a good customer can bring
SUPERFOCUS SCENARIO
Superfocus is a revolutionary concept in eyeglasses—it even received a 2010 The Wall Street Journal
innovation award. It is a type of eyeglass that allows the wearer to change correction without changing
glasses, or having to look through a certain part of the lens like bifocal and progressive lens wearers
must do. The round lenses are actually two lenses with a clear fluid in-between. The outer lens is hard,
while the inner lens is flexible. There’s a little slider on the bridge that, when moved, pushes the fluid
and changes the shape of the inner, flexible lens. That, in turn, changes the correction, so a user can see
near, far, and everything in-between just by changing the position of the slider. The only catch is that
the lenses have to be perfectly round and the frames need to be made out of stainless steel or titanium
aluminum. This limits the frame style and color choices for consumers.
Superfocus can be purchased through eye care professionals or directly from the manufacturer online.
The company has recently started using direct-response television advertising to drive traffic to the
website so consumers can learn more about this product and sign up for a free trial offer. With prices
starting at $700 a pair, the free trial might help overcome some resistance due to the relatively high
price.
62. Refer to Superfocus Scenario. Superfocus glasses were developed for people who have multiple
prescriptions but do not like bifocals or who have to continually change glasses for different tasks like
reading, computer work, or driving. By solving this problem for consumers, which type of value is
being delivered by Superfocus?
a.
Hedonic
b.
Rational
c.
Complete
d.
Utilitarian
e.
Relative
63. Refer to Superfocus Scenario. The advertising, distribution through the website and eye care providers,
the price, and the free trial offer are examples of Superfocus’s _____.
a.
marketing tactics
b.
corporate strategy
c.
company mission
d.
value proposition
e.
product differentiation
64. Refer to Superfocus Scenario. Superfocus is trying to separate its market into different groups based
on age so that it can create customized products for each group. This indicates that Superfocus is
conducting the process of _____.
a.
value reengineering
b.
mass marketing
c.
total quality management
d.
social marketing
e.
market segmentation
65. Refer to Superfocus Scenario. People who need multifocal lenses are the company’s _____ market.
a.
capital
b.
target
c.
dominant
d.
focal
e.
augmented
66. Refer to Superfocus Scenario. While consumers need and want this type of eyeglass, they also want
something that looks fashionable. Most consumers would not consider the round, silver stainless steel
or titanium aluminum charcoal gray frame fashionable. Thus, on a perceptual map, Superfocus would
_____.
a.
not be positioned as a very useful product
b.
be positioned close to competitors
c.
be in a quadrant all by itself
d.
not even appear
e.
not be very close to the ideal point
FAST FOOD SCENARIO
Daniel, an entrepreneur, is planning to open a fast-food restaurant. He wants to cash in on the huge
population of busy professionals who usually don’t have the time for a sit-down meal. They prefer
instead to grab a bite on the go. Daniel has done his fair share of research, and he found that though
fast-food restaurants cater to the need for a quick bite, consumers feel guilty of indulging in what they
thought was “unhealthy.” Daniel conceptualized a place that will offer a quick bite as a healthy
alternative, so consumers would not have to suffer from guilt. Daniel is looking at establishing a long-
term relationship based on trust with his customers.
67. Refer to Fast Food Scenario. Busy professionals, who usually don’t have the time for a sit-down meal,
prefer to grab a bite on the go; even when it means indulging in unhealthy food habits. This is an
example of _____ influence on consumer behavior.
a.
tangential
b.
internal
c.
situational
d.
intellectual
e.
personal
68. Refer to Fast Food Scenario. Daniel found that though fast-food restaurants cater to the need for a
quick bite, consumers feel guilty of indulging in “unhealthy” food habits. This experience of guilt can
be best described as _____ associated with the consumption of fast food.
a.
intuition
b.
affect
c.
memory
d.
cognition
e.
motivation
69. Refer to Fast Food Scenario. Daniel is looking at establishing a long-term relationship based on trust
with his customers. In doing so, Daniel is adopting a(n) _____ orientation.
a.
Association Behavior Management
b.
Customer Relationship Management
c.
Investor Margin Management
d.
Relationship Quality Management
e.
Marketing Profitability Management
70. Refer to Fast Food Scenario. Daniel conceptualized a place that will offer a quick bite as a healthy
alternative, so consumers would not have to suffer from guilt. In doing so, Daniel is offering _____
value to his customers.
a.
augmented
b.
utilitarian
c.
hedonic
d.
temporal
e.
tangential
71. Refer to Fast Food Scenario. Daniel wants to cash in on the huge population of busy professionals who
usually don’t have the time for a sit-down meal. They prefer instead to grab a bite on the go. They are
Daniel’s _____ for his new restaurant.
a.
capital
b.
target
c.
dominant
d.
focal
e.
augmented
ESSAY
1. Describe the Consumer Value Framework (CVF), including its basic components.
2. Define consumer value, and compare and contrast utilitarian value and hedonic value. Describe two
situations – one in which you received utilitarian value and the other in which you experienced hedonic
value. Which made you more satisfied? Explain why.
3. Explain why marketing plays an important strategic role in an organization and describe where
marketing strategy fits in the bigger organization.
4. Define market segmentation and explain how it is a marketplace condition. Describe different market
segments of McDonald’s customers.
5. Explain how perceptual maps are useful in understanding consumers and delivering superior value.
6. Explain the concept of Customer Lifetime Value (CLV). Think of a product you have purchased (e.g.,
toothpaste, soft drink, computer) and estimate your lifetime value to the manufacturer of a specific
brand. What can the marketer of that brand do to ensure you remain loyal to that brand?
