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63) When demand for athletic shoes produced by Nike and endorsed by Michael Jordan is high,
Nike limits how many pairs of shoes are manufactured. This action maintains strong demand by
limiting supply. This decision contradicts the philosophy of which marketing concept?
A) marketing concept
B) product concept
C) production concept
D) societal marketing concept
E) selling concept
64) At a local farmers' market, Molly Malone sells mussels while shouting to passersby, "Fresh
seafood, get your fresh seafood here!" What kind of perspective is Molly taking?
A) customer-driving
B) inside-out
C) customer-driven
D) outside-in
E) niche marketing
65) Market segmentation is the process of seeking fewer customers and reduced demand for
profit maximization only.
66) The selling concept holds that consumers will not buy enough of the firm's products unless
the firm undertakes a large-scale selling and promotion effort.
67) An organization's department follows a customer-centered sense-and-respond philosophy.
The department is most likely practicing the product concept.
68) The production concept and the product concept are marketing management orientations
that are more likely to lead to marketing myopia.
69) The societal marketing concept calls on marketers to balance consumer wants and desires,
company profits, and society's interests.
70) Fast Food, Inc. views marketing as the process of finding and retaining profitable
customers by providing them with the food they want. Fast Food, Inc. practices societal
marketing.
71) Healthy Veggies, LLC, believes that marketing is a tool to use in finding customers and
keeping them by providing vegetables that are grown using chemical-free farming techniques
and selling through small family-owned stores. Healthy Veggies, LLC, practices societal
marketing.
72) The marketing mix refers to the set of marketing tools the firm uses to implement its
marketing strategy.
73) Company X, a manufacturer of office supplies, follows the selling concept. Explain how
the firm may lose sight of customer relationships with this marketing orientation.
74) Explain why electronics and pharmaceuticals manufacturers use customer-driving
marketing.
75) Compare the selling and marketing concepts, listing the key components of each
philosophy.
76) Briefly explain the societal marketing concept. Give an example of an organization that has
effectively used the societal marketing concept.
77) In which of the following situations has a company most actively embraced customer-
managed relationships?
A) American Airlines awards frequent flyer points to returning customers.
B) Paige Premium Denim jeans provide superior quality and perfect fit.
C) iRobot invites enthusiastic Roomba owners to develop and share their own uses for the
company's robotic vacuum cleaner.
D) Best Buy distinguishes between its best customers and its less profitable customers, stocking
merchandise to appeal to each group.
E) Toyota develops a marketing presence on social networks and other online communities.
78) Which of the following statements is true about creating customer loyalty and retention?
A) Losing a customer means losing the entire stream of purchases that the customer would
make over a lifetime of patronage.
B) Customer delight creates a rational preference and not an emotional relationship with the
brand.
C) The aim of customer relationship management is to focus solely on customer delight.
D) Losing a customer hardly makes a difference to a company's sales.
E) The aim of customer relationship management is to focus solely on customer satisfaction.
79) FedEx offers its customers fast and reliable package delivery. When FedEx customers
weigh these benefits against the monetary cost of using FedEx along with other costs of using
the service, they are acting upon ________.
A) brand loyalty
B) customer equity
C) customer-perceived value
D) customer lifetime value
E) a societal marketing campaign
80) Customer satisfaction is a goal that companies strive to earn. Companies can achieve
customer delight by ________.
A) regularly putting products on sale
B) promising only what they can deliver and then delivering more than they promise
C) offering promotional deals such as "buy one and get one free"
D) creating contests with exciting prizes
E) using celebrities to advertise the products
81) Building and maintaining profitable customer relationships by delivering superior customer
value and satisfaction is called ________.
A) customer lifetime value
B) customer-perceived value
C) customer relationship management
D) partner relationship management
E) customer equity
82) Which of the following marketing strategies should marketing managers focus on to
manage detailed information about individual customers and carefully manage customer
touchpoints to maximize customer loyalty?
A) customer divestment
B) customer-managed relationships
C) the societal marketing concept
D) partner relationship management
E) customer relationship management
83) ________ is determined by a customer's evaluation of the benefits and costs of a market
offering relative to those of competing offers.
A) Customer-perceived value
B) Customer lifetime value
C) Share of customer
D) Customer-managed relationship
E) Brand value proposition
84) Customer equity refers to ________.
A) a firm's current sales
B) the share a firm earns of a customer's purchasing in their product categories
C) the amount a customer is spending each year on certain products
D) the total combined customer lifetime value of all of the company's current and potential
customers
E) a firm's market share
85) It is most accurate to say that when customers purchase products they act on ________ as
they judge values and costs.
A) objective value
B) perceived value
C) customer lifetime value
D) company image
E) society's interests
86) The primary key to delivering customer satisfaction is to match product performance with
________.
A) the performance of competitive products
B) competitive prices
C) aggressive advertising
D) limited customer services
E) customer expectations
87) Which of the following terms refers to customers who make repeat purchases and tell
others about their positive experiences with a product or service?
A) barnacles
B) customer evangelists
C) butterflies
D) surrogate customers
E) market mavens
88) Sally recently purchased Brand X lotion. In comparing her perception of how the lotion
made her skin feel and look to her expectations about Brand X lotion, Sally was measuring her
level of ________.
A) share of customer
B) customer satisfaction
C) customer equity
D) customer-perceived value
E) customer lifetime value
89) Which of the following strategies would a company most likely use to increase customer
satisfaction?
A) decreasing the variety of offered services
B) divesting
C) lowering prices
D) "firing" unprofitable customers
E) limiting customer experiences with a brand
90) Hank is an assistant marketing director for a firm in a market with many low-margin
customers. What type of relationship with these customers would be the most profitable for
him?
A) full partnerships
B) basic relationships
C) causal relationships
D) club marketing programs
E) inverse relationships
91) A room upgrade offered by a hotel to a guest who often stays in the hotel is an example of
________.
A) a frequency marketing program
B) a basic relationship
C) a club marketing program
D) partner relationship management
E) sustainable marketing
92) A gym equipment manufacturer encourages customers to become members of the firm's
Web site. Membership provides customers with exercise tips as well as discounts on gym
equipment and workout apparel. This is an example of ________.
A) a frequency marketing program
B) a basic customer relationship
C) a club marketing program
D) the selling concept
E) consumer-generated marketing
93) The marketing world is most likely embracing ________ because consumers wield greater
power now with many platforms for airing and sharing their brand views with other consumers.
A) partner relationship management
B) supply chain management
C) customer-managed relationships
D) market segmentation
E) consumer ethnocentrism
94) Greater consumer control means that companies can no longer rely on ________.
A) promoting brand-consumer interaction
B) marketing by intrusion
C) creating market offerings and messages that involve consumers
D) developing marketing concepts with an outside-in perspective
E) marketing by attraction
95) Kao Corp., a deodorant manufacturer, invited teenage girls to make an ad that would
encourage other girls to buy the product. This program is an example of ________.
A) societal marketing
B) the production concept
C) the selling concept
D) partner relationship management
E) consumer-generated marketing
96) Elisandra, a marketing manager at a regional chain restaurant, has decided to organize a
contest calling for customers to create commercials for the restaurant. Winning entries will be
posted on the organization's home page. Elisandra's plan is an example of ________.
A) consumer-generated marketing
B) partner relationship management
C) customer lifetime value
D) community development around a brand
E) customer divestment
97) Through ________, companies today are strengthening their connections with all partners,
from providers of raw materials and components to those involved in the delivery of final
goods and services.
A) supply chain management
B) direct marketing
C) customer relationship marketing
D) customized marketing
E) inventory management
98) The final step in the marketing process is ________.
A) capturing value from customers
B) creating customer delight
C) creating customer lifetime value
D) understanding the marketplace
E) designing a customer-driven marketing strategy
99) "Losing a customer once means losing the entire stream of possible purchases that the
customer would make over an extended period of patronage." This statement specifically
indicates loss in terms of ________.
A) customer-perceived value
B) marketing offerings
C) partner relationship management
D) customer lifetime value
E) value proposition
100) At Gina's retail stores, the posted policy reads, "Without our customers, we don't exist."
Gina and her staff aim to delight each customer, and they are quick to offer discounts or extra
services whenever a customer is anything less than satisfied. Gina and her staff strive to make
every customer a repeat customer. It is most accurate to say that instead of focusing on each
individual transaction, Gina and her staff put a priority on ________.
A) managing partner relationships
B) selling new products
C) attracting "butterflies"
D) converting "barnacles" to "strangers"
E) capturing customer lifetime value
101) The portion of the customer's purchasing that a company gets in its product categories is
known as ________.
A) customer-perceived value
B) share of customer
C) customer insight
D) consumption function
E) induced consumption
102) Apart from retaining good customers, most marketers want to constantly increase their
"share of customer." What does this mean in marketing terms?
A) Marketers want to increase their market share.
B) Marketers want to increase the share they get of the customer's purchasing in their product
categories.
C) Marketers want to diversify their operations and customize their products to cater to the
entire market.
D) Marketers want to continuously increase their customers' levels of satisfaction.
E) Marketers want to turn satisfied customers into delighted customers.
103) ________ is one of the best ways to increase share of customer.
A) Targeting new customers
B) Using bait and switch
C) Cross-selling
D) Divesting
E) Partnership marketing
104) Keith, a clothing store owner, offers product suggestions to customers based on their
current purchases. Which of the following is Keith trying to increase?
A) shared value
B) share of customer
C) social responsibility
D) customer-generated marketing
E) customer loyalty
105) Which of the following refers to the total combined customer lifetime value of all of the
company's current and potential customers?
A) share of customer
B) marketing mix
C) customer equity
D) target market
E) customer-perceived value
106) In the context of customer relationship groups, a potentially profitable and short-term
customer is referred to as a ________.
A) true friend
B) butterfly
C) stranger
D) barnacle
E) market maven
107) Customers can be classified into four relationship groups based on their profitability and
projected loyalty. Which customer type is associated with high profitability and long-term
loyalty?
A) barnacles
B) strangers
C) butterflies
D) true friends
E) cash cows
108) A company should not always target all possible customers. Which kind of customer is
not the most valuable to a company, but, can over time, contribute to the firm's success?
A) butterflies
B) shooting stars
C) barnacles
D) true friends
E) strangers
109) A financial services firm has several loyal customers who conduct business with them
exclusively. However, the company has noticed that this customer group is the least profitable
for the company, and in some cases, it increases their losses when engaging in business with
this group. Which of the following customer groups is being referred to in this scenario?
A) butterflies
B) true friends
C) strangers
D) barnacles
E) cash cows
