60. The U.S. Postal Service (USPS) argues that its express service is comparable to what is offered by
FedEx and that its prices are much lower. Yet, FedEx dominates with more than a 45 percent share of
the express-delivery market. Which of the following statements describes this situation?
a.
The USPS is perceived as offering greater customer value.
b.
FedEx is perceived as offering greater customer value.
c.
FedEx and the USPS offer the same customer value.
d.
Customer value is not an issue in deciding which express-delivery service to use.
e.
The USPS should lower its prices even further to increase market share.
61. Marketers interested in offering customer value can:
a.
offer products that perform
b.
give the consumer facts
c.
offer organization-wide commitment to service and after-the-sale support
d.
avoid unrealistic pricing
e.
do all of these
62. Chaz loves to play a Disney online pirate game in which he gets to create a pirate by choosing hair–
color, skin-color, clothing, and physical features. Then he gets to choose from a variety of quests and
can sail a ship, dig for treasure, fight skeleton pirates, or fight the British Navy. This game provides
what element of value?
a.
offering products that perform
b.
earning his trust
c.
avoiding unrealistic pricing
d.
giving him facts
e.
co-creation
63. Which of the following is the customer’s evaluation of a good or service in terms of whether that good
or service has met his or her needs and expectations?
a.
value
b.
perception
c.
attitude
d.
dissonance
e.
satisfaction
64. When customer expectations regarding product quality, service quality, and value-based price are met
or exceeded, _____ is created.
a.
a value line
b.
a quality rift
c.
planning excellence
d.
customer satisfaction
e.
expectation satisfaction
65. Ninety-six percent of USAA home insurance policy holders report that USAA representatives meets
their commitment in calling back customers quickly about claims. The most likely result of USAA’s
efforts is:
a.
management empowerment
b.
retailer-customer synergy
c.
customer satisfaction
d.
transactional marketing
e.
disintermediation
66. Xerox emphasizes _____ by replacing at its own expense any dissatisfied customer’s equipment within
a period of three years after purchase.
a.
management empowerment
b.
management-customer synergy
c.
customer satisfaction
d.
transactional marketing
e.
direct selling
67. _____ is a strategy that focuses on keeping and improving relationships with current customers.
a.
Commitment selling
b.
Relationship marketing
c.
Transactional marketing
d.
Market engineering
e.
Organization-customer synergy
68. Networkcar.com sells a plug-in device that connects to computer diagnostic ports that are standard on
cars. The device beams signals to dealers who can remotely diagnose or spot trouble. The device
allows car dealerships to maintain a closer bond with their customers by offering maintenance before a
problem leaves customers with an inoperable or possibly dangerous car. With the device, dealers can
better engage in:
a.
management empowerment
b.
management-customer synergy
c.
relationship marketing
d.
transactional marketing
e.
direct selling
69. Kellogg’s gives consumers the chance to receive a free DVD. Consumers who buy five boxes of
specially marked cereal can cut out the coupons and mail in their completed official form to get a free
DVD. Kellogg’s is engaging in:
a.
transactional marketing
b.
sports distribution
c.
relationship marketing
d.
one-to-one marketing
e.
customer transformation
70. Frequent-flyer programs are an example of financial incentives to customers in exchange for their
continuing patronage. After flying a certain number of miles or flying a specified number of times, the
frequent-flyer program participant earns a free flight or some other award such as free lodging.
Airlines that use frequent-flyer programs are practicing:
a.
commitment selling
b.
transaction marketing
c.
transformational marketing
d.
marketing engineering
e.
relationship marketing
71. Greenberg Smoked Turkey, Inc., is a nationwide mail-order business that operates without any
advertising. It does not accept credit cards, has no toll-free number for customers to call, and does not
have a Web site. This hopelessly old-fashioned company is also very profitable with thousands of
devoutly loyal customers—some of whom have ordered Greenberg smoked turkeys every year for the
last fifty years. Greenberg more than likely uses _____ to maintain these long-term ties to its
customers.
a.
reactive marketing
b.
synergistic management
c.
relationship marketing
d.
a sales orientation
e.
management empowerment
72. The Geek Squad is a tech support station located inside every Best Buy electronics retail store. Best
Buy gives intensive training to the Geeks. The purpose of this training is to:
a.
improve customer service
b.
give higher education benefits to employees
c.
promote the company image by increasing public awareness
d.
reduce the need of empowerment
e.
increase employment levels
73. Some market-oriented firms give employees expanded authority to solve customer problems on the
spot. This is known as:
a.
training
b.
deregulation
c.
empowerment
d.
commissioning
e.
mediating
74. _____ gives customers the feeling their concerns are being addressed and at the same time gives
employees the feeling their expertise matters to management.
a.
Management-employee synergy
b.
Organizational entropy
c.
Managerial reciprocity
d.
Empowerment
e.
Delegation
75. The Ritz Carlton has Service Values which guide employees in providing its Gold Standard service.
One of the service values states “I own and immediately resolve guest problems.” The Ritz Carlton
management uses _____ to provide customer service.
a.
training
b.
deregulation
c.
empowerment
d.
commissioning
e.
mediating
76. As part of instituting an empowerment program, a marketing director should:
a.
hire college graduates who have the latest training in marketing management techniques
b.
create a customer-service department and place a key staff person in charge of the
department
c.
train the company’s staff to judge the quality of the products the firm produces
d.
allow non-management employees to resolve problems on their own without prior
approval from their immediate supervisors
e.
conduct a survey of the company’s marketing staff to learn about employee morale
77. _____ is the collaborative efforts of people to achieve common objectives.
a.
Effort training
b.
Teamwork
c.
Empowerment
d.
OJT training
e.
Mediation
78. TUFF SHED, Inc. is one of the leading suppliers of installed storage buildings and garages in the
United States. TUFF SHED mandates that sales, management and construction teams work together to
anticipate and eliminate potential problems. They make sure customers get the right buildings for their
needs, and they all are built well and in a timely manner.
By using teamwork TUFF SHED:
a.
operates successfully using a production orientation
b.
provides its customer with a high level of satisfaction
c.
has a high employee turnover rate
d.
does not deliver superior customer service
e.
has a sales orientation
79. A sales-oriented firm defines its business (or mission) in terms of:
a.
employees
b.
goods and services
c.
customers
d.
competitors
e.
benefits
80. A market-oriented firm defines its business in terms of:
a.
goods and services
b.
the benefits its customers seek
c.
employee empowerment
d.
competitive position
e.
customer satisfaction
81. Redefining the business mission of a mattress manufacturer as “a good night’s sleep,” rather than
stating the mission as “the manufacture of high-quality mattresses,” will:
a.
not stimulate an awareness of changes in consumer desires
b.
be too broad a statement to be of any real use in serving customers
c.
stifle creativity in discovering opportunities to serve customers
d.
help ensure the firm retains its focus on consumers
e.
ensure the core products will be retained
82. One of the reasons given for the decline of the passenger rail industry in the United States is that the
industry defined its mission as trains and not as transportation sources. The railroad industry failed to:
a.
define its mission in terms of the benefits its customers seek
b.
ignore the marketing concept of serving customer needs and wants
c.
realize “customers only want what they know”
d.
have a sales orientation
e.
empower the consumer
83. Walker Farms has heard from many of its customers that they would like organic produce. As a result
Walker Farms became a certified organic farm. Walker realizes that, while not all consumers are
willing to pay the higher prices for organic produce, his customers want the organic produce. Walker
realized:
a.
he missed sales by not concentrating on the average customer
b.
different customer groups have different needs and wants
c.
he is a sales-oriented farm
d.
his business is about selling the cheapest vegetables
e.
his aim is a goal of profit through maximum sales volume
84. All of the following are basic marketing mix decisions EXCEPT:
a.
sales
b.
price
c.
product design
d.
place (distribution)
e.
promotion
85. One way to identify the orientation of a firm is to examine its primary goal. If a firm seeks to achieve
profitability through sales volume, it would probably be:
a.
promotion-oriented
b.
price-oriented
c.
sales-oriented
d.
production-oriented
e.
retail-oriented
86. The manufacturer of Maine Kitchen Art bowls, spoons, and cutting boards knows marketing can make
his company a success. He wants to rely solely on promotion as the technique for attracting customers.
He advertises extensively in cooking magazines, offers coupons, and provides retailers who carry his
product with attractive displays. From this information, you know that Maine Kitchen Art has a _____
orientation.
a.
market
b.
societal
c.
production
d.
sales
e.
product
87. FujiFilm Computer Products has improved the efficiency and productivity of its plant, which
manufactures printing technology. For the new fiscal year, the company projects a production increase
of 25 percent and has instructed its sales force to aggressively distribute and promote the product. The
CEO is sure the market will absorb more product if the sales force is determined and assertive.
Apparently FujiFilm:
a.
has an outward organizational focus on its customers wants and preferences
b.
seeks its goals primarily through the use of intensive promotion
c.
directs its products to specific groups of people
d.
is in the business of satisfying customers
e.
profits through customer satisfaction
88. _____ is the primary tool used by a sales-oriented organization to achieve its corporate goals.
a.
Price
b.
Promotion
c.
Product design
d.
Place (distribution)
e.
Production
89. All of the following are good reasons to study marketing EXCEPT:
a.
Marketing creates consumer needs.
b.
Marketing plays an important role in society, coordinating the huge numbers of
transactions needed to provide goods and services.
c.
Marketing is a key function in business.
d.
Marketing offers outstanding career opportunities.
e.
Marketing affects your day-to–day life as a consumer.
90. What is the fundamental objective of most businesses?
a.
employee empowerment, teamwork, and relationship marketing
b.
satisfied stakeholders
c.
low costs and high quality
d.
customer loyalty and retention
e.
survival, profits, and growth
NARRBEGIN: Ritz-Carlton Hotels
Ritz-Carlton Hotels
Cesar Ritz, the founder of the original Ritz-Carlton, Boston, was known as the “king of hoteliers and
the hotelier to kings.” Today, there are more than 70 Ritz-Carlton hotels spanning 24 countries with
38,000 employees. These are not typical employees, though. They are described as “Ladies and
Gentlemen serving Ladies and Gentlemen.” Each employee participates in an intensive orientation
program and recertification programs throughout their careers with the company, and many are
allowed $2,000 to fix a guest’s problem on the spot without managerial approval. So renowned is the
Ritz way of doing business that the company offers a Leadership Center for executives and managers
of other companies to learn and implement the Ritz way of customer service. It doesn’t stop with
employees, though. Ritz-Carlton hotels recently launched “Give Back Getaways” in 2008 that allow
guests to volunteer in locales where they are vacationing. The hotel also offers “Vow to Help Others”
which is a program that donates a portion of a wedding couple’s reception costs to those in need. The
chief operating officer’s words sum up Ritz–Carlton’s philosophy best when he stated, “If we really do
our job, we really don’t need sales anymore. Satisfied guests are your advertising.”
NARREND
91. Refer to Ritz-Carlton Hotels. The chief operating officer’s statement regarding sales and advertising
illustrates which marketing management philosophy embraced by this company?
a.
sales
b.
market
c.
production
d.
societal
e.
promotional
92. Refer to Ritz-Carlton Hotels. The “Give Back Getaways” and “Vow to Help Others” programs offered
by Ritz-Carlton hotels are applications of which marketing management philosophy?
a.
societal
b.
sales
c.
production
d.
market
e.
retail
93. Refer to Ritz-Carlton Hotels. Ritz-Carlton embodies an organization-wide commitment in service and
support so that customers attain benefits relative to the price they pay for this service. Which element
of an organization’s focus is this commitment satisfying?
a.
empowerment
b.
customer value
c.
customer acquisition
d.
creativity
e.
primary goal making
94. Refer to Ritz-Carlton Hotels. A guest’s suitcase was lost while in the care of hotel employees, and that
guest needed his suit for an important business meeting. The desk clerk took the guest to a local mall
to purchase clothing and shoes totaling $850. The fact that Ritz-Carlton employees have the authority
to solve customers’ problems quickly illustrates that these employees are given:
a.
authority training
b.
customer value giving
c.
cross-utilization
d.
teamwork
e.
empowerment
95. Refer to Ritz-Carlton Hotels. Customer-oriented personnel, effective training programs, employees
with authority to make decisions and solve problems, and teamwork all work together at Ritz-Carlton
to implement which type of strategy?
a.
relationship marketing
b.
social marketing
c.
internal marketing
d.
external marketing
e.
empowered marketing
NARRBEGIN: Circuses
Circuses
As recently as twenty years ago circuses came to town with tents, animals, clowns, and other
performers. An advance man arrived about two weeks before the circus actually arrived, covered the
community with posters, and gave out free tickets to schoolchildren. If the advance man had done a
good job, when the circus arrived and opened its tent doors, three hundred to six hundred people would
fill its seats. When the largest circus organizations merged, the newly formed Ringling Bros. and
Barnum & Bailey’s Greatest Show on Earth began performing in 4,000-seat arenas.
Attendance, however, has stagnated in recent years. People have stopped going to the circus because
they miss the circus tent and the close intimate atmosphere it created. The newest thing in circuses is a
return to the tent atmosphere with an emphasis on the types of entertainment that were popular years
ago. Antique circus wagons, calliope music, and cotton candy are replacing the exotic animals and the
prima donna performers. To satisfy the needs of this new audience, the tent circus now sells lattes and
wine.
NARREND
96. Refer to Circuses. The aggressive promotions used by advance men indicate that decades ago the
circuses probably had a _____ orientation.
a.
sales
b.
market
c.
production
d.
societal
e.
product
97. Refer to Circuses. Now circuses are trying to satisfy customers’ needs and wants and to profit through
customer satisfaction. They have adopted a _____ orientation.
a.
societal
b.
selling
c.
production
d.
market
e.
retail
98. Refer to Circuses. To exhibit a societal marketing orientation, circuses could:
a.
rely on publicity and avoid any promotions
b.
empower their employees to satisfy customer wants
c.
donate a percentage of their profits to local educational institutions
d.
use relationship marketing
e.
emphasize customer value
99. Refer to Circuses. One of the tent venues is called Barnum’s Kaleidoscope, and it is in a permanent
location with the hopes that people who see the show will want to return and see it again as well as
bring their friends and relatives to the production. Which of the following techniques would most
likely advance this strategy of referrals and repeat business?
a.
relationship marketing
b.
empowerment
c.
a sales orientation
d.
authority to delegate
e.
transactional marketing
100. Refer to Circuses. The circus’s goal of redesigning the circus experience is being completed through
the coordination of many marketing activities, such as value pricing, a product that includes exciting
performances, tent venue locations, and promotion. These activities make up the _____ for the
circuses.
a.
opportunity analysis
b.
value of marketing
c.
marketing environment
d.
target market
e.
marketing mix
NARRBEGIN: Starbucks Loyalty Rewards
Starbucks Loyalty Rewards
The First Starbucks opened in 1970 in Seattle Washington. The demand for its coffee grew and
Starbucks added more than 6,000 stores located in over 30 countries. In its more than 30 year history,
Starbucks has never given out coupons for its coffee. Starbucks had only to make its coffee and
customers came. Recently consumer quality perception of the Starbucks brand has started to fall.
Starbucks started a consumer-response blog to learn more about what consumers expect from
Starbucks. One of the most frequent requests was for a customer rewards program. In response
Starbucks has started the Starbuckscard rewards which offers free refills on brewed coffee, free
beverage with whole bean purchase, beverage customization and free Wi-Fi. Starbucks also put
coupons in a national newspaper for those consumers who love coupons and created a new brew of
coffee for those who prefer a milder coffee taste. Starbucks is hoping with these improvements will
restore customers’ loyalty and confidence.
NARREND
101. Refer to Starbucks. For more than thirty years Starbucks held the orientation of “If we build it, they
will come.” This philosophy is most in line with a _____ orientation.
a.
sales
b.
market
c.
production
d.
societal
e.
product
102. Refer to Starbucks. Which of the four conditions did NOT exist in the minds of the Starbucks
consumer, resulting in declining sales?
a.
Each party has something of value to the other party
b.
Each party is capable of communication and delivery
c.
Each party is free to accept or reject the exchange offer
d.
Each party believes it is appropriate or desirable to deal with the other party
e.
There must be at least two parties for exchange to occur
103. Refer to Starbucks. The creation of a consumer-response blog is an example of _____.
a.
how to increase sales
b.
technology at its best
c.
relationship marketing
d.
good training
e.
product improvements
104. Refer to Starbucks. Starbucks customers wanted more value from their coffee. Starbucks management
responded to customers through the Starbuckscard rewards program. Which element of value was
Starbucks management working to increase?
a.
Products that perform
b.
Earning trust
c.
Avoiding unrealistic pricing
d.
Giving the buyer facts
e.
Co-creation
105. Refer to Starbucks. The fact that management realized that coffee drinkers had different needs whether
be using coupons, wanting a milder brew of coffee or free Wi-Fi shows that Starbucks is now using a
_____ oriented approach.
a.
sales
b.
market
c.
production
d.
societal
e.
product
ESSAY
1. Explain how marketing is both a philosophy and a set of activities.
2. What is the American Marketing Association’s (AMA) definition of marketing and what does
marketing entail?
3. Describe the concept of exchange and list the five conditions that must be satisfied for exchange to
occur. If all conditions are met, does that guarantee exchange will occur? Explain why or why not.
4. What is the marketing concept? According to the marketing concept, what determines if a sale will
actually occur?
5. Name and describe the four marketing management philosophies.
6. If a firm has a production orientation, what types of questions does management ask after assessing its
resources?
7. An entrepreneur has set up a company to manufacture and market GPS systems for hunters. He has
decided a sales orientation would best suit his new company. What are important considerations for
this firm when it adopts this orientation? What are potential pitfalls of this orientation the owner needs
to understand?
8. Explain the marketing concept and market orientation. What three requirements are necessary to
implement a market orientation?
9. Explain the societal marketing orientation and describe an example of a company implementing this
orientation.
10. What is customer value? What are the six ways marketers can make sure customers perceive their
companies/products as sources of value?
11. Compare and contrast the sales and market orientations using the following five characteristics as
guidelines: (1) organization’s focus, (2) business the organization is in, (3) people to whom the product
is directed, (4) the organization’s primary goal, and (5) tools used to achieve that goal.
12. Consider the following statement: “Relationship marketing is not possible in a firm embracing a
production orientation.” Do you agree or disagree with this statement? Explain your answer.
13. Discuss the elements needed to implement successful relationship marketing strategies.
14. List the three advantages of defining the company’s business in terms of the benefits customers seek
instead of in terms of goods and services.
15. There are several important reasons to study marketing. Name three of these reasons.
16. Explain how marketing is important to business and society.
17. Explain how marketing affects consumers’ everyday life? How will the study of marketing enable you
to be a better consumer?