76. Wonder 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 was most
likely following the ________.
a.
selling concept
b.
production concept
c.
marketing concept
d.
customer concept
e.
retailing concept
77. 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.
78. 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.
79. 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.
80. 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 therefore 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 a new sweepstakes for frequent customers.
81. Long-term relationships with profitable customers is the key objective of
a.
personal selling.
b.
customer relationship management.
c.
production oriented firms.
d.
e-marketing.
e.
distribution channels.
82. 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
83. ____ 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
84. 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.
85. 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.
86. Which of the following would not be a customer cost considered in 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
87. 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 this product’s value?
a.
Speed of delivery
b.
Ease of installation
c.
Availability of technical support
d.
Availability of training assistance
e.
Monetary price
88. 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.
89. If Southwest Airlines offers a Groupon promotion for half-price fares, it must ensure that the number
of allowable Groupon participants doesn’t exceed the number of seats on the various flights in the
promotion. It must also ensure that it has clearly stated the promotional guidelines online in the offer
so consumers understand it fully. This relates to which of the following marketing management
activities?
a.
Strategic planning
b.
Planning
c.
Organizing
d.
Implementation
e.
Marketing control
90. Which of the following statements describes the best use of the Internet by a marketer?
a.
Gain information.
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 providing product
information.
91. Initiatives intended to improve an organization’s positive impact on society and the natural
environment are called
a.
environmental marketing
b.
green marketing
c.
socially-responsible marketing
d.
energy-conscious marketing
e.
socially-conscious marketing
92. If a family spends $2,000 a month on goods and services, how much of that $2,000 goes for marketing
activities?
a.
$2,000
b.
$1,500
c.
$1,000
d.
$500
e.
$0
93. For most firms, the costs of marketing activities consume approximately what portion of the
consumer’s dollar?
a.
One-half
b.
One-fifth
c.
One-fourth
d.
One-third
e.
One-sixth
94. In today’s market environment, you might pay $15 for a physical CD by your favorite musical artist.
Approximately how much of that price goes to activities related to marketing (promotion, distribution,
profit margins)?
a.
$1.70
b.
$3.40
c.
$5.10
d.
$7.50
e.
$12.75
95. Marketing activities are
a.
used by all sizes of organizations including for-profit, nonprofit, and government agencies.
b.
limited to use by larger for-profit and nonprofit organizations.
c.
implemented only to increase profits for the organization and to expand the scope of its
customer base.
d.
used by all types and sizes of businesses but are not used by nonprofit organizations.
e.
used by small businesses and small nonprofit organizations the most.
96. Marketing activities
a.
are aimed at persuading customers through advertising.
b.
involve mainly distribution and promotion decisions.
c.
and selling activities are basically the same.
d.
are important only when a firm is developing new products or entering new markets.
e.
help sell an organization’s products and generate financial resources for the firm.
97. Marketing knowledge and skills
a.
are not necessary for a nonprofit organization.
b.
enhance consumer awareness and help provide people with satisfying goods and services.
c.
constitute the marketing mix.
d.
were most important during the production era.
e.
are most valuable for advertising executives but less important for wholesalers and
distributors.
98. The public is becoming more aware of how marketers‘ activities affect the welfare of consumers and
society. As a result, more firms are working to
a.
raise prices in order to increase their profits so that they can contribute to philanthropic
causes.
b.
reduce the quality of their products in order to save money and provide less expensive
products to their consumers.
c.
reduce their profits by donating more time and money to improve social welfare and
environmental conditions.
d.
enact laws requiring companies to work toward the welfare of customers and society.
e.
create a responsible approach to developing long-term relationships with customers and
society.
99. Approximately what percentage of civilian workers in the United States performs marketing activities?
a.
25 to 33 percent
b.
81 to 92 percent
c.
42 to 50 percent
d.
64 to 76 percent
e.
10 to 20 percent
Scenario 1.1
Use the following to answer the questions.
Greensprings Cemetery in upstate New York, offers a full-service funeral and burial that is non-toxic
to the environment. All materials used in the burial are natural and will decompose with no negative
impact. Greensprings’ service is relatively new in the United States, but services of this type are
common in Great Britain. A typical burial in Greensprings’ cemetery includes a casket made from
bamboo, wicker, paper, or other natural material. There are no headstones of stone or concrete that will
detract from the landscape, but trees and plants as “markers” are allowed. The cost for a burial at
Greensprings is approximately $3,000, compared to about $6,000 at most traditional cemeteries.
Although business was slow at first, Greensprings is now experiencing an increase in the number of
burials, due to referrals and a newly-developed website. The owners of Greensprings were previously
in the cemetery business, and are active conservationist and wanted to make their business more
sustainable. After conducting research and finding that there were natural burial sites in Great Britain,
they wanted to provide an alternative to other environmentally-conscious Americans like themselves.
100. Refer to Scenario 1.1. A new website has helped Greensprings’ pre-planned funeral business grow.
These would come under which of the following marketing mix variables?
a.
Product
b.
Price
c.
Distribution
d.
Promotion
e.
Promotion and price
101. Refer to Scenario 1.1. Greensprings’ main competitive advantage over traditional cemeteries comes
from its attention to which element in the marketing mix?
a.
Product
b.
Price
c.
Promotion
d.
Distribution
e.
Marketing research
102. Refer to Scenario 1.1. Compared to Greensprings’ approach to funerals, traditional cemeteries are
using the ____ concept.
a.
marketing
b.
selling
c.
product
d.
people
e.
service
103. Refer to Scenario 1.1. The customers of Greensprings Cemeteries are most likely choosing the
Greensprings business because of its _______, which is evidence of a ______ _____.
a.
Pricing; Sales orientation
b.
Environmental consciousness; Market orientation
c.
Novelty; Production orientation
d.
Environmental consciousness; Business orientation
e.
Pricing; Profit orientation
104. Refer to Scenario 1.1. Greensprings’ competitors, the traditional cemeteries, focus on advertising and
personal selling of their services. This indicates a(n) ____ orientation.
a.
sales
b.
marketing
c.
production
d.
environmental
e.
marketing concept
Scenario 1.2
Use the following to answer the questions.
Paws and Claws Hotel is a full-service pet salon and boarding kennel. Paws and Claws has an
interactive website where customers can directly book a grooming appointment, obedience class, or
overnight accommodations for their dog or cat. Paws and Claws has several unexpected services, such
as a 600-square foot swimming pool, complete with slide and dog-friendly graduated steps to help
them exit the pool. Customers can also drop their dog or cat off each morning for pet day care. Paws
and Claws has a pick-up and delivery service, webcams in every kennel so that pet families can view
their pets while away, and pet “furniture” so that the cats and dogs can lie on sofas just like at home.
Paws and Claws is also open 24 hours a day, 365 days each year so that customers can pick up their
pet at any time.
The cost for an overnight stay at Paws and Claws averages $50, compared to competing kennels at
about $30. The day care costs are $25 for either a dog or cat. The majority of Paws and Claws’
competitors don’t offer the day care service, and require an two-day minimum for overnight stays.
Informal discussions with customers led to the addition of pet day care and 24-hour hours of operation.
Previously, Paws and Claws was more interested in competing based on its prices.
105. Refer to Scenario 1.2. Paws and Claws’ target market is most likely to be which of the following?
a.
The dogs and cats who stay there
b.
Pet owners who go on vacation frequently
c.
Families with small children and several pets
d.
Suburban families with two-income households
e.
Urban professionals who travel often
106. Refer to Scenario 1.2. The fact that Paws and Claws is open 24 hours each day is part of the _______
marketing mix variable while the swimming pool is part of the _______ variable.
a.
Product; Distribution
b.
Price; Product
c.
Distribution; Promotion
d.
Distribution; Product
e.
Distribution; Environment
107. Refer to Scenario 1.2. Previously, Paws and Claws was most likely using a ____ orientation, while
now it is now in the process of employing the _______.
a.
Sales; Marketing concept.
b.
Sales; Marketing mix.
c.
Promotion; Marketing concept.
d.
Sales; Promotion orientation.
e.
Sales; Product orientation.
108. Refer to Scenario 1.2. If Paws and Claws employs the philosophy of building a relationship with its
dog and cat customers, and their owners, it will be implementing the
a.
marketing concept.
b.
production concept.
c.
sales concept.
d.
marketing mix.
e.
marketing environment.
109. Refer to Scenario 1.2. Paws and Claws’ addition of unexpected services, pick-up and delivery, and 24-
hour access while charging a higher price than its competition is best described as which type of
value?
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.
TRUE/FALSE
110. Marketing consists primarily of selling and advertising.
111. The broadest and simplest definition of marketing states that it is the development and efficient
distribution of products for consumer segments.
112. Customers are the focal point of all marketing activities.
113. A family that organizes and advertises a garage sale is performing marketing activities.
114. A target market is a specific group of customers on whom an organization focuses its marketing
efforts.
115. A target market is always defined by demographics.
116. Target markets can be people who buy the product but do not necessarily use the product.
117. The marketing mix consists of three major variables: product, price, and distribution.
118. In marketing, a product can be a good or a service but not an idea.
119. Marketing efforts do not involve the design and development of products.
120. Products can be goods, services, or ideas.
121. Services are provided by applying human and mechanical efforts to people or objects.
122. The actual physical production of goods is a marketing activity.
123. Promotion can help sustain interest in established products that have long been available.
124. The distribution variable in a marketing mix is directed toward making products available in the
quantities desired to as many target market customers as possible and keeping the total inventory,
transportation, and storage costs as low as possible.
125. Customers are interested in a product’s price because they are concerned about the value obtained in an
exchange.
126. Price is seldom used as a competitive tool.
127. For an exchange situation to arise, only one condition must exist: two or more individuals, groups, or
organizations must each possess something that they value and are willing to give up to receive the
“something of value” held by the other individual, group, or organization.
128. For an exchange to occur, at least one of the parties must be willing to give up his or her “something of
value.”
129. Marketing activities do not always result in exchanges.
130. The outcomes of a marketer’s decisions and actions may be affected by the variables in the marketing
environment.
131. Changes in the marketing environment always hurt marketing efforts.
132. The marketing environment is a set of static, unchanging surroundings.
133. The marketing concept stresses that a business organization can best achieve its goal by providing
customer satisfaction through coordinated activities.
134. Achievement of the firm’s overall goals is part of the marketing concept.
135. The marketing concept is a philosophy that a business organization should employ to satisfy
customers’ needs while achieving the overall goals of the organization.
136. The marketing concept is a philanthropic philosophy aimed at helping customers at the expense of the
business organization.
137. The marketing concept is a management philosophy, not a second definition of marketing.
138. The marketing concept deals only with marketing activities.
139. Profit, even at the expense of customers’ satisfaction, is the major thrust of the marketing concept.
140. The marketing concept directly affects marketing activities but should have negligible impact on other
organizational activities.
141. The market concept stresses that an organization can best achieve its objectives by being customer–
oriented.
142. The market concept developed out of a sequence of three eras: the production orientation, the
marketing orientation, and the industrial orientation.
143. During the market orientation, businesspeople realized that if they could produce products efficiently,
customers would buy them.
144. During the market orientation, businesspeople realized that products, which by this time could be
made relatively efficiently, would have to be promoted through much personal selling and advertising.
145. A market orientation requires the organization-wide generation of market intelligence pertaining to
current and future customer needs, dissemination of the intelligence across departments, and
organization-wide responsiveness to it.
146. To implement the marketing concept, an organization must first establish an information system to
discover customers’ real needs and then use the information to create products to satisfy those needs.
147. To satisfy customers’ objectives as well as its own, a company must coordinate all its activities.
148. At the most basic level, profits can be obtained through relationships by acquiring new customers,
enhancing the profitability of existing customers, and extending the duration of customer relationships.
149. Relationship marketing is short-term, mutually beneficial arrangements in which the buyer and seller
focus on the creation of satisfying exchanges.
150. Customer relationship management is the use of information about customers to create marketing
strategies that develop and sustain desirable customer relationships.
151. In general, when marketers focus on customers chosen for their lifetime value, they earn lower profits
in future periods than when they focus on customers selected for other reasons.
152. Value = customer costs − customer benefits.
153. Basic and extended warranties can reduce risk, a major customer cost.
154. Customer benefits include time and effort.
155. The process people use to determine the value of a product is not highly scientific.
156. Marketing management is the process of planning, organizing, implementing, and controlling
marketing activities to facilitate and expedite exchanges effectively and efficiently.
157. In marketing management, planning is a systematic process of assessing opportunities and resources,
determining marketing objectives, and developing a marketing strategy and plans for implementation
and control.
158. Organizing marketing activities hinges on coordination of marketing activities, motivation of
marketing personnel, and effective communication within the unit.
159. Implementation of marketing plans requires motivating marketing personnel, coordinating their
activities, and integrating their activities both with those in other areas of the company and with the
marketing efforts of personnel in external organizations.
160. Marketing costs consume about one-quarter of a buyer’s dollar.
161. Marketing costs consume about one-half of a buyer’s dollar.
162. For a business organization to remain healthy and to survive, it must sell products and make profits.
163. Knowing about marketing can help you evaluate the types of corrective measures needed to stop
questionable marketing practices.
164. Approximately 20 percent of civilian employees in this country perform marketing activities.