1. Identify and describe the four major types of utility. Which one is influenced indirectly by marketing efforts?
2. What does it mean for a firm to have a strong production orientation? How does this differ from the marketing
concept?
3. Your firm would like to implement the marketing concept. What information will you need? Since the acquisition of
information costs money, justify your need for this information.
4. Why would relationship marketing be valuable to a company? Why would it be valuable to a customer?
5. What is a market?
6. Describe the two broad targeting approaches in business, and give an example of each.
7. What four main elements does the marketing mix contain?
8. What are the major forces in the marketing environment?
9. Describe the purpose of an executive summary, environmental analysis, and SWOT analysis, the first three
components of a marketing plan.
10. What is a company sales forecast? Why is it important to the sales department as well as to the people who handle
raw materials inventory, finished-goods inventory, hiring, and advertising?
11. Explain the difference between marketing research and marketing information systems.
12. What are the major steps in the consumer buying decision process? Describe the factors that are believed to affect
this process.
13. Is the business buyer or the individual consumer more likely to know more about the product being purchased?
Support your answer.
14. Would personal income, disposable income, or discretionary income be of the greatest interest to marketers?
Explain your answer.
Caroline’s Crafts ‘N Things
Sarah works for a retail shop called Caroline’s Crafts ‘N Things. Sarah was often quite rude to customers when
they annoyed her. One morning, her supervisor asked Sarah into her office and informed her that her behavior was
unacceptable. To be rude to one customer could cause several customers not to come back. Sarah’s supervisor told
her that retaining a customer is much cheaper than trying to get a new one. After their constructive discussion,
Sarah’s boss told her that she wanted her to go out on the floor that day and attempt to be more helpful to
customers.
Over the next few months, Sarah began to help customers learn more about the different products in the store and
often explained why the customer might want to purchase one product over another. In doing so, she realized the
importance of her role in the retail shop and began to truly enjoy her job. She started to think about the future of the
company. She even thought that the company could do very well if it were to sell its products on eBay. When she
brought this idea to her boss, her boss thought it was excellent, and asked Sarah to look further into the pros and
cons of her idea.
After evaluating Sarah‘s research, her boss decided to move forward with the idea, asking Sarah to head up this
new venture for the company. Sarah then realized that retail is not just about making the sale; the customer should
be the focus of all operations. Sarah now looks up to her boss, and is very glad that she was there to mentor her.
15. Refer to Caroline’s Crafts ‘N Things. When Sarah was brought into her boss’s office, what was her manager trying
to explain?
a. Customer motivation
b. Customer lifetime value
c. Disposable income
d. Marketing information system
e. Possession utility
16. Refer to Caroline’s Crafts ‘N Things. Caroline‘s purchased its Thanksgiving products in June. However, in October,
when the store finally displays the Thanksgiving products, which form of utility is being provided?
a. Possession
b. Place
c. Market
d. Time
e. Form
17. Refer to Caroline’s Crafts ‘N Things. Sarah should understand that all of the following are different types of utilities
except
a. form.
b. time.
c. possession.
d. place.
e. market.
18. Refer to Caroline’s Crafts ‘N Things. Doing business on eBay allows an entrepreneur to
a. develop a business-to–business selling model.
b. develop form utility.
c. create place utility.
d. find out what works, fast.
e. explore producer markets.
Your Best, Inc.
Christie worked for a retail company and noticed there were many things it could do better. She shared some of her
ideas with upper management, but it did not want to do things differently. When Christie went home to talk to her
husband, they both realized that, given her passion, it would be better for Christie to open her own business. After a
lot of consideration, she decided to open a sporting goods store called Your Best, Inc. She also knew just where to
open the store right next to her house.
To be certain to address all aspects of the business, Christie hired a marketing research firm to determine the best
location. Once all the research was compiled and analyzed, she realized that it would actually be better to open the
store in a different area. She also realized that deciding where to locate the business was not the only major
concern. More specifically, she would have to focus on the four elements of the marketing mix as well, creating a
whole marketing plan. Her husband mentioned the possibility of using online information services to help with the
business. With her husband’s support and a good marketing plan, Christie felt that she would be prepared to make
the right decisions.
19. Refer to Your Best, Inc. Marketing research involves
a. satisfying customers.
b. determining a target market.
c. creating a product mix.
d. interpreting information.
e. product promotion.
20. Refer to Your Best, Inc. Christie thought about focusing on the four elements of the marketing mix. Which of the
following is one of those elements?
a. Production
b. Price
c. Power
d. Possession
e. Personal income
21. Refer to Your Best, Inc. In preparing a marketing plan, Christie should ensure that all of the following components
are included except a(n)
a. executive summary.
b. SWOT analysis.
c. production schedule.
d. environmental analysis.
e. evaluation and control.
22. Refer to Your Best, Inc. If Christie were to use information services available online, they would offer her access
to which of the following?
a. Databases
b. Financial assistance
c. Physical location
d. Production materials
e. Disposable income
23. Refer to Your Best, Inc. When Christie‘s business gets going, her income less all additional personal taxes would be
called her
a. business buying behavior.
b. disposable income.
c. IRS imposed income.
d. discretionary income.
e. total loss.
24. The organizational function and set of processes for creating, communicating, and delivering value to customers and
for managing customer relationships in ways that benefit the organization and its stakeholders is
a. production.
b. the chain of command.
c. marketing.
d. distribution.
e. dispersion.
25. Walmart has its own trucks that ship merchandise to its warehouses from the supplier for backstock purposes.
Walmart is carrying out which of the following functions?
a. Contracting with suppliers
b. Standardizing and grading its facilities
c. Buying and selling
d. Risking obsolescence of its products
e. Transporting and storing
26. Car dealers are financed by automobile manufacturers, and Walmart receives financing from its wholesalers and
manufacturers. What marketing functions do such activities perform?
a. Physical distribution
b. Standardization
c. Marketing information
d. Financing
e. Storage
27. Mattel, Inc. selects suppliers and obtains raw materials to make toys. The company is engaged in which function of
marketing?
a. Selling
b. Buying
c. Storing
d. Financing
e. Risk taking
28. Using information about customers to create marketing strategies that develop and sustain desirable long-term
customer relationships is known as
a. computer resource management.
b. customer resource management.
c. customer relationship management.
d. customer research management.
e. e-marketing.
29. New Seasons Market, a locally owned and operated one-stop grocery store based in Portland, Oregon is committed
to providing local products for its particular customer base. New Seasons strives to deepen customer trust and
loyalty by keeping close and regular connection with customers in a quest to better understand the customers’
needs and desires. New Seasons Market is creating a model for
a. form utility.
b. customer relationship management.
c. relationship marketing..
d. customer research management.
e. market segmentation.
30. What focuses on using information about customers to create marketing strategies that develop and sustain
desirable customer relationships?
a. Customer relationship management
b. Electronic data interchange
c. Business-to–consumer marketing
d. Strategic partnerships
e. The marketing concept
31. A Corvette, a dinner at the Olive Garden, and an overnight stay at a Hilton Hotel all satisfy human needs.
Therefore, each
a. is a service.
b. is a convenience product.
c. possesses utility.
d. is unique.
e. is created for an unsegmented market.
32. Sue Wallace is getting married on Saturday. She purchases flowers for the church ceremony early Saturday
morning from a local flower shop. Which of the following types of utility is not created by this activity?
a. Form
b. Place
c. Time
d. Possession
e. Ownership
33. The utility created by converting production inputs into finished products is called utility.
a. form
b. time
c. production
d. place
e. possession
34. utility is the only type of utility created by the production process.
a. Form
b. Time
c. Production
d. Place
e. Possession
35. Which of the following is not one of the four commonly recognized forms of utility?
a. Form
b. Time
c. Production
d. Place
e. Possession
36. The process of shipping fresh flowers from California to Texas gives utility to the flowers.
a. form
b. time
c. place
d. possession
e. very little
37. When Food Lion grocery stores offer milk and eggs at all of its locations, it is providing customers with utility.
a. time
b. place
c. form
d. marketing
e. possession
38. The utility created by making a product available at a location where customers wish to purchase it is called
utility.
a. form
b. time
c. production
d. place
e. possession
39. By selling Christmas trees from late November through December, Home Improvement is providing utility.
a. form
b. possession
c. place
d. time
e. marketing
40. The utility created by making a product available when customers wish to purchase it is called utility.
a. form
b. time
c. production
d. place
e. possession
41. The utility created by transferring ownership of a product to a buyer is called utility.
a. form
b. place
c. time
d. possession
e. ownership