Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
119. 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.
a.
True
b.
False
120. For an exchange to occur, at least one of the parties must be willing to give up his or her "something of value."
a.
True
b.
False
121. Marketing activities do not always result in exchanges.
a.
True
b.
False
122. The outcomes of a marketer's decisions and actions may be affected by the variables in the marketing environment.
a.
True
b.
False
123. Changes in the marketing environment always hurt marketing efforts.
a.
True
b.
False
124. The marketing environment is a set of static, unchanging surroundings.
a.
True
b.
False
125. The marketing concept stresses that a business organization can best achieve its goal by providing customer
satisfaction through coordinated activities.
a.
True
b.
False
126. Achievement of the firm's overall goals is part of the marketing concept.
a.
True
b.
False
127. The marketing concept is a philosophy that a business organization should employ to satisfy customers' needs while
achieving the overall goals of the organization.
a.
True
b.
False
128. The marketing concept is a philanthropic philosophy aimed at helping customers at the expense of the business
organization.
a.
True
b.
False
129. The marketing concept is a management philosophy, not a second definition of marketing.
a.
True
b.
False
130. The marketing concept deals only with marketing activities.
a.
True
b.
False
131. Profit, even at the expense of customers' satisfaction, is the major thrust of the marketing concept.
a.
True
b.
False
132. The marketing concept directly affects marketing activities but should have negligible impact on other organizational
activities.
a.
True
b.
False
133. The market concept stresses that an organization can best achieve its objectives by being customer-oriented.
a.
True
b.
False
134. The market concept developed out of a sequence of three eras: the production orientation, the marketing orientation,
and the industrial orientation.
a.
True
b.
False
135. During the market orientation, businesspeople realized that if they could produce products efficiently, customers
would buy them.
a.
True
b.
False
136. 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.
a.
True
b.
False
137. 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.
a.
True
b.
False
138. 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.
a.
True
b.
False
139. To satisfy customers' objectives as well as its own, a company must coordinate all its activities.
a.
True
b.
False
140. 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.
a.
True
b.
False
141. Relationship marketing is short-term, mutually beneficial arrangements in which the buyer and seller focus on the
creation of satisfying exchanges.
a.
True
b.
False
142. Customer relationship management is the use of information about customers to create marketing strategies that
develop and sustain desirable customer relationships.
a.
True
b.
False
143. 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.
a.
True
b.
False
144. Value = customer costs − customer benefits.
a.
True
b.
False
145. Basic and extended warranties can reduce risk, a major customer cost.
a.
True
b.
False
146. Customer benefits include time and effort.
a.
True
b.
False
147. The process people use to determine the value of a product is not highly scientific.
a.
True
b.
False
148. Marketing costs consume about one-quarter of a buyer's dollar.
a.
True
b.
False
149. Marketing costs consume about one-half of a buyer's dollar.
a.
True
b.
False
150. For a business organization to remain healthy and to survive, it must sell products and make profits.
a.
True
b.
False
151. Knowing about marketing can help you evaluate the types of corrective measures needed to stop questionable
marketing practices.
a.
True
b.
False
152. Approximately 20 percent of civilian employees in the United States perform marketing activities.
a.
True
b.
False
153. 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.
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
154. 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.
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
155. 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.
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
156. 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.
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.
157. 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.
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.
158. You will give the keynote address at the annual meeting of the American Manufacturing Association. You realize
most of the attendees think marketing is just advertising. So, you decide to start your keynote address by defining what
marketing is in order to set the proper context for your speech.
You define marketing as:
a.
the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying
exchange relationships with customers.
b.
the process of persuading or seeking to persuade a customer or organization to take a preferred course of
action.
c.
the process of speaking or writing in support or defense of a firm’s products or services.
d.
the process or practice of calling public attention to a firm’s goods and services through communications in
print media, social media or other forms of information distribution.
e.
the process of proving that a product or service offered by an organization meets or exceeds customers’
expectations.
159. The majority of the heads of marketing for most multinational corporations would likely describe marketing as a very
complex discipline. They will give a long list of variables and factors that impact a company’s marketing success. Most of
these variables and factors are part of what is called the marketing environment.
The U.S. unemployment rate would fall under which set of forces in the marketing environment?
a.
Sociocultural Forces
b.
Political Forces
c.
Economic Forces
d.
Competitive Forces
e.
International Trade Forces
160. You are starting a new job next week at a consumer products company in Redmond, Washington. You will be
responsible for managing the company’s inventory levels, as well as the related transportation and storage costs. You will
rely heavily on some previously-established relationships as you refine the firm’s interactions with its various
intermediaries.
Your job responsibilities primarily relate to which of the following marketing mix variables?
a.
Financial
b.
Price
c.
Distribution
d.
Promotion
e.
Product
161. Your competition is beating you on price in your most important product market. In response, you decide to launch a
new ad campaign focusing your customers on the price attribute of your marketing mix. You need a catchy slogan that
conveys the attractiveness of your product’s pricing.
Which of the following slogans should you use to convey this message most effectively?
a.
“Every Day You Get Our Best”
b.
“Growing and Protecting Your Wealth”
c.
“Expect More. Pay Less”
d.
“There Is No Substitute”
e.
“Always On Time…..Or You Don’t Pay A Dime”
162. You believe one of the most effective ways to remind your staff about key marketing concepts and objectives is to
give them desk plaques with simple phrases. You want to create a phrase that reminds them that their primary focus
should be creating customer value.
Which of the following phrases best tells the story of what customer value is?
a.
“Customer Benefits = Customer Value – Customer Costs”
b.
“Customer Value = Customer Benefits + Customer Costs”
c.
“Customer Costs > Customer Benefits = Customer Value”
d.
“Customer Value = Customer Benefits – Customer Costs”
e.
“Customer Value = Customer Benefits = Customer Costs”
163. In order to be successful in creating mutually-beneficial exchanges with customers, the marketer must focus on
creating value in fact and in the mind of the customer. For the most part, value is a customer’s ________________
assessment of benefits relative to costs. The marketer should recognize that the process people use to determine value
_______________.
a.
objective; is scientific
b.
subjective; is not scientific
c.
objective; is not scientific
d.
subjective; is scientific
e.
objective; is completely rational
164. Your company provides oil exploration services to major oil companies in Russia. The United States government just
announced it is imposing economic sanctions on Russia because of the military actions it has taken in Ukraine.
This situation is an example of which of the following types of forces that constantly impact a company’s dynamic
marketing environment?
a.
Technological force
b.
Sociocultural force
c.
Political force
d.
Legal and regulatory force
e.
Economic force
165. The marketing environment is the arena in which the marketer executes marketing strategies and techniques designed
to build relationships with customers. It includes a host of forces that surround the customer and affects the marketing
mix.
The marketing environment:
a.
changes periodically, but at a slow enough pace for the skillful marketer to respond to effectively.
b.
creates risks for the marketer, but seldom creates opportunities.
c.
is not impacted by technology to any significant degree.
d.
can be completely controlled by a skillful marketer using well-thought-out strategies.
e.
includes legal and regulatory forces that affect the marketing mix.
166. The marketing concept is a ______________ that guides the overall activities of an organization. It has evolved over
time from a ______________ in the second half of the 19th century to a _____________ today.
a.
sales philosophy; product orientation; sales orientation
b.
philanthropic philosophy; product orientation; market orientation
c.
tactical philosophy; product orientation; market orientation
d.
management philosophy; product orientation; market orientation
e.
ethical philosophy; product orientation; sales orientation
167. To fully appreciate what an effective marketing concept means to the firm, the marketer must first understand that
_______________ is the major focus of the marketing concept. This in turn should enable the firm to _______________.
Ultimately, this all leads to _________________.
a.
customer satisfaction; earn long-term profits; increased shareholder value
b.
securing management; earn long-term profits; management continuity
c.
employee satisfaction; earn long-term profits; positive labor relations
d.
selling products; earn long-term profits; organizational stability
e.
regulatory compliance; earn long-term profits; reduced regulatory costs
168. The successful marketer understands that the key to her success is the relationships her firm is able to develop with
current customers and potential customers. Moreover, her goal is to achieve the full potential of each of these
relationships for the benefit of the firm.
This marketer clearly understands
a.
that the only way for the firm to increase profits is to constantly acquire new customers.
b.
that customers’ needs, desires and habits are homogeneous.
c.
that customer loyalty leads to increasing long-term profitability for the firm.
d.
that data is of limited use in helping the firm understand the needs of customers.
e.
that customer lifetime value only includes the value of what customers purchase from the firm.
169. The central focus of the marketer’s activities is to develop mutually-beneficial relationships with customers and
potential customers. If the marketer is able to convince the customer to buy the firm’s products, then the customer’s
lifetime value to the firm is enhanced. Marketers also seek to encourage the customer’s _________________ the firm’s
products because that will ____________ the customers’ lifetime value to the firm.
a.
strong word-of-mouth communication about; increase.
b.
critique of; increase.
c.
passive word-of-mount communication about; maintain.
d.
strong word-of-mouth communication about; stabilize
e.
critique of; maintain
170. Marketing professionals understand the challenges and implications of marketing in an inter-connected, global
economy. While the discipline is primarily focused on building mutually-beneficial customer relationships for the firm, it
has many other positive influences on the global economy that many in the general public are not aware of. For example,
marketing creates a successful economy and leads to a _______________ for people all over the world. Additionally,
______________ can promote the welfare of customers and the firm’s stakeholders.
a.
equal standard of living; green marketing
b.
higher standard of living; socially responsible marketing
c.
higher level of education; target marketing
d.
higher level of political awareness; socially responsible marketing
e.
higher level of healthcare; non-profit marketing
171. Which one of the following statements is true regarding the global impact of marketing?
a.
Marketing encourages governments to be more open and transparent with their citizens.
b.
Marketing facilitates the efficient allocation and distribution of natural resources around the world.
c.
Marketing is effective in minimizing the cyclical ups and downs in the global economy.
d.
Marketing improves the quality of life of customers.
e.
Only for-profit organizations utilize marketing.
