Chapter 01 Test Bank
1. Marketing is defined as
A. any activity used to advertise and promote a product or service.
B. the set of activities needed to produce and deliver a product that produces the highest return on investment.
2. As it relates to customers, the aim of marketing is to
D. generate repeat sales from each and every customer.
E. reduce the number of customer complaints.
3. Marketers define customer value as
A. providing a product or a service to a customer such that he or she will purchase that same product or service again in the
future.
B. being able to sell products that generate little to no customer returns or complaints.
4. The perceived benefits, both monetary and nonmonetary, that customers receive from a product compared with the cost
associated with obtaining it is referred to as
A. benefit segmentation.
B. a marketing exchange.
5. What is the key to creating value?
D. convincing consumers that they need a product, even if they do not perceive that they do
E. making sure that products are priced lower than the competition
6. After listening to customer requests for travel routes to the Northwest, Southwest Airlines has added cross-country routes to
both Seattle and Portland. By providing its customers with benefits that meet their needs, Southwest is providing
A. benefit marketing.
B. customer service.
7. What percentage of new products fail in the marketplace?
A. 5 to 10 percent
B. less than 3 percent
8. According to your text, what is the secret of great marketing when it comes to creating value?
A. convincing customers that they need a product even if they do not
B. saturating the market with all forms of advertising promotions
9. The Fantastically Fit health club has just opened a new location in your neighborhood. The club has mailed a flyer to all
households in the area that contains information about the club and a coupon for a one-month free membership. In doing so,
Fantastically Fit is attempting to
D. market value.
E. deliver value.
10. On a personal level, as you begin looking for a job after you graduate, it will be critical for you to know how to
A. forecast value.
11. Having an efficient supply chain is directly related to which element of value?
A. marketing value
B. creating value
12. American Clothing Company manufactures clothes to be sold in retail stores. After the clothing is manufactured, it is shipped
to wholesalers who, in turn, use transportation companies to ship the product to various retail outlets. The manufacturer,
wholesaler, transportation company, and retailer all work together to create and deliver the product. This is an example of
D. forecasting value.
E. communicating value.
13. The set of multiple companies directly linked by one or more of the upstream and downstream flows of products, services,
finances, and information from a source to a consumer is referred to as
A. the production cycle.
14. Which of the following would be considered a member of a supply chain?
A. shipping companies
B. retailers
15. The process of planning, implementing, and controlling the flow of goods, services, and information between the point of
origin and the point of consumption in order to meet customer requirements is called
A. marketing.
B. production.
16. Which of the following accurately depicts the stages in the evolution of marketing?
D. marketing concept, production orientation, sales orientation, relationship marketing
E. sales orientation, production orientation, marketing concept, relationship marketing
17. Which era in the history of marketing began in the early years of the United States and lasted until the mid-1920s when the
growth in production outpaced consumer demand?
18. During what stage in the evolution of marketing did firms believe that quality products would sell themselves?
A. relationship marketing
B. sales orientation
C. customer orientation
19. A marketing strategy in which the firm focused on efficient processes and production to create quality products and reduce
unit costs was referred to as the
20. Which marketing strategy was especially important during the Great Depression when consumers did not have much money
and firms competed intensely for their dollars?
A. relationship marketing
B. production orientation
21. Which era in the history of marketing continued until the end of World War II?
A. production orientation
B. relationship marketing
22. Compare the following statements to determine which one best reflects the thinking behind the sales orientation era of
marketing?
A. Our products are of such great quality, they practically sell themselves.
B. It’s time we develop a strategy to attract and maintain more customers.
C. Our entire company needs to be focused on satisfying our customers’ needs.
23. What is the premise behind the marketing concept?
24. The marketing concept began to emerge in the
A. 1990s.
B. 1920s.
25. What era in the history of marketing best reflects the idea that a firm’s long-term success must include a company-wide effort
to satisfy customer needs?
A. customer orientation
B. production orientation
26. The focus of the marketing concept era was on
27. Compare the following statements regarding relationship marketing to determine which is most accurate?
A. Relationship marketing is best described as the use of personal selling to persuade consumers to buy products.
B. Relationship marketing has waned as a viable strategy with the advent of the Internet.
28. Outdoor Adventures is a company that sells clothing and gear related to all types of outdoor activities. In an effort to stave off
competition, the company has begun keeping a log of customer interests and hobbies so it can alert them to local events of
relevance, as well as send them articles that pertain to their favorite activities. In addition, Outdoor Adventures has added a
section to its website where customers can post pictures of themselves using the store’s gear. These efforts illustrate how the
firm is engaged in
A. personal selling.
B. societal marketing.
29. Which of the following trends is accurate regarding the future of marketing?
A. With the advent of technology, the basic goal of marketing has changed from how to create, communicate, and deliver value
to consumers to how to better segment and target consumer markets.
30. In marketing, an exchange refers to
31. The activity of buyers and sellers trading things of value so that each is better off as a result is referred to as
A. a marketing interchange.
B. bartering.
C. personal selling.
32. A local family is advertising a 5K run to raise awareness for autism since one of their children suffers from the disorder.
Salina likes to run, so she decides to pay the fee to participate in the event. Afterward, she is pleased that she went and felt
good about helping out the family. Would this be considered a marketing exchange?
33. According to your text, what is the most basic concept in marketing?
A. streamlining production costs to generate maximum profits
B. satisfying the needs of stakeholders
C. getting all members of an organization to agree on a marketing plan
34. In marketing, states of felt deprivation are referred to as
A. opportunities.
B. wants.
35. In marketing terms, what is a person looking to satisfy if he or she feels deprived of basic necessities such as food, clothing,
shelter, transportation, or safety?
36. Daphne used to work in the city where she would take public transportation to work. However, she just took a new job in the
suburbs and now not only has to find a place to live, but also has to buy a car to get to and from her job. For Daphne, these
things represent
37. Which of the following products does not satisfy a consumer need?
38. Wants are the form that human needs take and are shaped by
A. culture, money, and geography.
B. lifestyle, demographics, and economic conditions.
C. money, desire, and ability.
39. What type of human need is shaped by personality, culture, or buying situation?
A. a craving
B. an emergency
40. An advertisement shows a group of boys playing soccer on a hot day. When they take a break, the boys runs to a cooler to
find something to quench their thirst. Inside the cooler are water bottles, cans of soda, fruit juices, and Gatorade. Immediately,
the boys fight over the Gatorade showing that it is clearly the best choice. In this ad, liquid refreshment represents a _____, and
Gatorade represents a _____.
A. craving; preference
B. want; need
41. What role, if any, did marketing play in the U.S. housing crisis that began in December 2007?
42. Which of the following accurately represents the 4 Ps of the marketing mix?
A. promotion, place, profit, and preference
B. production, promotion, profit, and participation
43. All of the following are elements contained in the 4 Ps of the marketing mix expect
44. The combination of activities that represent everything a firm can do to influence demand for its good, service, or idea is
referred to as the marketing
45. The four Ps are more formally referred to as the marketing
46. Which of the following questions relates to the place element of the marketing mix?
47. According to your text, any discussion of the marketing mix typically begins with which of the four Ps?
A. price
B. place
48. Which marketing mix element describes what a buyer exchanges with a seller?
A. perception
B. promotion
49. Which marketing mix element is typically the easiest to change?
A. product
B. place
50. Which marketing mix element involves decisions regarding logistics and managing the supply chain?
51. The owners of Have It Your Way Hot Dogs have decided to place an advertisement in the local minor league baseball team’s
program booklet. Which element of the marketing mix does this represent?
52. A new ice cream shop in town allows customers to create their own sundaes using various flavors of ice cream and
toppings. The store owners have decided to have a contest for the most unique customer creation. They are asking customers
to create a sundae, take a picture of their creation, and post it on their Facebook page as well as on Instagram so people can
vote for their favorite. The winning creation will be featured on the shop’s menu. This use of social media relates to which
element of the marketing mix?
53. The group of Internet-based applications that allow the creation and exchange of user-generated content is called
54. What term is used to describe the increasingly interconnected nature of the world economy?
A. the World Wide Web
B. internationalization
55. NAFTA is an international trade agreement between the United States
56. Compare the following statements to determine which one accurately describes the impact NAFTA has had on U.S. farmers.
A. Because of the negative view of NAFTA in other countries, U.S. farmers have found a difficult time getting their products
shipped into those countries.
B. Even though farmers can now ship and sell their products to other countries, the fees imposed for doing so have not allowed
farmers to generate any profit.
57. What type of marketing strategy is a company using if it consciously addresses customers, markets, and competition
throughout the world?
58. The name, term, symbol, design, or any combination of these that identifies and differentiates a firm’s products is known as
its
59. Tony the Tiger and the slogan They‘re Great are elements that help to identify Kellogg’s _______ from that of its
competitors
A. trademark
B. patent
60. The practice of measuring, managing, and analyzing market performance is referred to as
A. logistics.
B. the marketing concept.