154. If you have always been committed and loyal to Hewlett-Packard technology products, your customer lifetime
value to Hewlett-Packard would likely be quite high.
a. True
b. False
155. CRM technology allows companies to make an investment in building long-term relationships with their customers.
a. True
b. False
156. The power of a good or service to satisfy a human need is called utility.
a. True
b. False
157. Form utility is created by making a product available at a location where customers wish to purchase it.
a. True
b. False
158. There are four kinds of utility: time, form, place, and price.
a. True
b. False
159. The four types of utility are time, place, form, and purpose.
a. True
b. False
160. The only kind of utility created by production is time utility, because the producer makes that product available to
the customer at the time it is needed.
a. True
b. False
161. Time, place, and possession utility have no real value in terms of money.
a. True
b. False
162. Marketing activities amount to about one-half of every dollar that consumers spend.
a. True
b. False
163. An essential aspect of the marketing concept is ensuring that the firm has adequate production capabilities to satisfy
future demand.
a. True
b. False
164. From the start of the Industrial Revolution until the early twentieth century, business had a strong production
orientation.
a. True
b. False
165. The evolution of customer orientation started with businesses having a strong sales orientation, followed by a
production orientation, and finally a customer orientation.
a. True
b. False
166. The Whirlybird Vacuum Cleaner Company has a field sales team of 1,000 that goes door-to–door giving in-home
demonstrations of the company’s products. The product demonstrations often come with some high-pressure sales
pitches. Whirlybird uses a strong sales orientation in moving its products.
a. True
b. False
167. Implementation of the marketing concept requires a firm to obtain information on what customers’ needs are and
how those needs are being met by products currently on the market.
a. True
b. False
168. One way to segment a market is according to whether the purchaser is a consumer or a business-to–business user.
a. True
b. False
169. Reseller markets consist of intermediaries such as wholesalers that buy finished products and sell them for a profit.
a. True
b. False
170. No product can be marketed successfully by using the undifferentiated approach.
a. True
b. False
171. Within a market, a group of individuals or firms that share one or more common characteristics is called a target
group.
a. True
b. False
172. Market segmentation means dividing consumers according to their wants, income, and geographic location.
a. True
b. False
173. A firm should have no more than one market segment in its marketing strategy.
a. True
b. False
174. The four elements of the marketing mix are product, price, distribution, and promotion.
a. True
b. False
175. Examples of product ingredients of the marketing mix include design of the product and trade names, packaging,
and warranties.
a. True
b. False
176. The pricing ingredient is concerned primarily with the producer‘s costs of design.
a. True
b. False
177. The distribution ingredient is concerned only with transportation and storage.
a. True
b. False
178. A firm’s marketing activities are affected by external and generally uncontrollable forces.
a. True
b. False
179. A marketing plan is a written document that specifies an organization‘s resources, objectives, and strategy.
a. True
b. False
180. A marketing plan specifies an organization’s resources, objectives, marketing strategy, and implementation and
control efforts to be used in marketing a specific product or product group.
a. True
b. False
181. Long-range marketing plans typically cover two years.
a. True
b. False
182. Sales forecasts generally are not affected by the level of marketing effort planned for the forecast period.
a. True
b. False
183. Organizations usually use only one method for forecasting sales.
a. True
b. False
184. Sales are only forecasted in the long range, covering more than five years.
a. True
b. False
185. Sales forecasts are used by managers in different divisions of an organization.
a. True
b. False
186. Accurate and timely information is the foundation of effective marketing, especially of the marketing concept.
a. True
b. False
187. A marketing information system is computer-based and uses information from both internal and external sources.
a. True
b. False
188. A marketing information system manages information from both internal and external sources.
a. True
b. False
189. At Mattel, a marketing information system stores data on regional sales activities, promotional costs, and
international inventory levels. These data are examples of external sources.
a. True
b. False
190. A marketing information system provides information for specific marketing projects.
a. True
b. False
191. Marketing research, like a marketing information system, involves a continuous process.
a. True
b. False
192. Buying behavior may be defined as the decisions and actions of people involved in buying and using products.
a. True
b. False
193. Consumers use different types of decision behaviors when buying different products.
a. True
b. False
194. Consumers are usually better informed than business buyers about the products they buy.
a. True
b. False
195. A consumer usually will go through all of the steps of the consumer buying decision process for every purchase.
a. True
b. False
196. The income an individual receives from all sources less the Social Security taxes that the individual must pay is
called personal income.
a. True
b. False
197. Marketers are most interested in discretionary income because consumers have the most choice in spending it.
a. True
b. False