Chapter 1Marketing: Managing Profitable Customer RelationshipsMultiple Choice1.Marketing seeks to create and manage profitable customer relationships by delivering_____ to customers.petitive pricesb.superior valuec.superior serviced.superior promotion(b; Easy)2.The marketing manager at Sunshine Car Washes is holding a training session for newemployees. She stresses that perhaps the most important concept of modernmarketing is _____.a.customer relationship managementb.e-mail advertisingc. a quality Web sited.properly trained sales people(a; Moderate)3.This business is now the best-known name on the Net.a.Barnes and Nobleb.Microsoftd.America Online(c; Easy)4.Jeff Bezos, founder of , wants to deliver a _____ to every customer.a.special experienceb.superior valuec.wide selection of productsd.none of the above(a; Easy) delivers all of the following benefits except one. Choose it.a.huge selectionb.good valuec.convenienced.no refund, credit only policy(d; Challenging)6.Selling on the Web presents serious challenges. has made large initialinvestments in computer systems, distribution centers, and _____.a.customer acquisitionb.inventoryc.employee trainingd.employee benefits(a; Moderate)7.Many experts predict that the future will belong to retailers who offer both “clicks”and _____.a.major discountsb.bricksc.superior locationsd.superior promotion(b; Easy)8.You have learned at work that today’s successful companies at all levels have onething in common: they are strongly customer focused and heavily committed to _____.a.obtaining the best CEOsb.increasing wealth to stockholdersc.marketingd.employee motivation(c; Moderate)9._____ is managing profitable customer relationships.a.Managementb.Controlc.Marketingd.Human Resources(c; Easy)10.The twofold goal of marketing is to attract new customers by promising superiorvalue and to _____.a.keep and grow current customers by delivering satisfactionb.keep and grow current customers by delivering competitive pricingc.keep and grow current customers by delivering friendly serviced.all of the above(a; Challenging)11.Highly successful companies know that if they take care of their customers,_____ will follow.a.frequent word of mouthb.market sharec.profitsd.market share and profits(d; Moderate)12.Marketing is more than _____ and advertising.a.distributionb.promotionc.sellingd.customer service(c; Easy)13.Today, marketing must be understood in terms of making a sale and _____.a.satisfying customer needsb.understanding customer valuec.customers’ self imagesd.brilliant advertising(a; Easy)14.Marketing is not only an exchange and managerial process, it is a _____.a.numbers gameb.social processc.cultural processd.subcultural process(b. Moderate)15.You have learned from experience as well as from this course that the most basicconcept underlying marketing is that of _____.a.selling and advertisingb.customer satisfactionc.retaining customersd.human needs(d; Easy)16.As a new assistant marketing manager trainee, you learn in an orientation meetingthat _____ are the form human needs take as they are shaped by culture andindividual personality.a.wantsb.demandsc.self conceptsd.desires(a; Moderate)17.Tommy Wang now has the buying power to purchase the computer system he haswanted for the last six months. Tommy’s want now has become a _____.a.needb.necessityc.demandd.none of the above(c; Easy)18.What do companies call a set of benefits that they promise to consumers to satisfytheir needs?a.marketing offerb.value propositionc.demand satisfactiond.need proposition(b; Moderate)19.You are preparing a combination of products, services, information, and experiencesto a market to satisfy needs and wants. What are you preparing?a.value propositionb.demand satisfactionc.tactical pland.marketing offer(d; Challenging)20.We must learn a valuable lesson in marketing. Many sellers make the mistake ofpaying more attention to the specific products they offer than to the _____ produced by those products.a.benefitsb.experiencesc.benefits and experiencesd.value satisfaction(c; Moderate)21.Smart marketers look beyond the attributes of the products and services they sell.They create brand _____ and brand _____ for consumers.a.awareness; preferenceb.recognition; preferencec.meaning; preferenced.meaning; experiences(d; Challenging)22.By orchestrating several services and products, companies can create, stage, andmarket brand _____.a.meaningb.experiencesc.awarenessd.preferences(b; Moderate)23.The difference between customer value and customer satisfaction is that value is thedifference between the values the customer gains from owning and using a product and the _____.a.costs of delivery of the productb.cost of obtaining the productc.cost of competing productsd.cost of the lost experience(b. Moderate)24.We can safely say that when a customer’s purchase lives up to his or her expectations,the customer is experiencing this state of being.a.customer valueb.self-esteemc.self-actualizationd.customer satisfaction(d; Moderate)25.At work, customers decide to satisfy needs and wants through exchange. Whatoccurs at this point?a.sellingb.customer servicec.marketingd.transaction marketing(c; Challenging26.Marketing consists of actions taken to build and maintain desirable _____ with targetaudiences involving a product, service, idea, or other object.a.exchange transactionsb.exchange relationshipsc.exchange processesd.exchange communications(b; Easy)27.This group of buyers share a particular need or want that can be satisfied throughexchange relationships.a.segmentb.target marketc.marketd.buying group(c; Easy)28._____ means managing markets to bring about profitable exchange relationshipsby creating value and satisfying needs and wants.a.Sellingb.Promotingc.Marketingd.Relationship marketing(c; Easy)29.Li Wei has an interesting job. He is involved in getting, keeping, andgrowing customers through creating, delivering, and communicating superiorcustomer value. What is his job?a.general managerb.supervisorc.marketing managerd.sales manager(c; Challenging)30.Marketers are not concerned with serving all customers in every way. Rather, theywant to serve selected customers that they can serve_____.a.profitablyb.with superior customer servicec.welld.well and profitably(d; Moderate)31.Marketing managers are concerned with ways to deal with demand. They may needto find, increase, _____, or even _____ demand.a.avoid; slowb.change; reducec.maximize; changed.change; modify(b; Challenging)32.The five alternative concepts under which organizations conduct their marketingactivities include the production, _____, selling, marketing, and societal marketing concepts.a.promotionb.pricingc.distributiond.product(d; Moderate)33.We have learned by sad experience that the product concept can lead to marketing_____.a.failuresb.myopiac.problemsd.incongruences(b; Moderate)34.Jolene’s firm believes that consumers will not buy enough of the firm’s productsunless the firm undertakes a large-scale selling and promotion effort. Jolene’s firm is practicing the _____.a.production conceptb.marketing conceptc.selling conceptd.relationship concept(c; Easy)35.Most firms practice the selling concept when they face _____.a. a crisisb. a recessionc.fierce competitiond.overcapacity(d; Moderate)36.To practice the marketing concept, an organization must deliver the _____ better thancompetitors.a.desired satisfactionsb.attractive pricesc.level of serviced.advertising campaign(a; Moderate)37.Jonathan Nonis works in sales for a telemarketing firm. His firm uses the sellingconcept which takes a (an) _____ approach.a.outside-inb.myopicc.inside-outd.marketing concept(c; Easy)38.Herb Kelleher of Southwest Airlines uses the marketing concept in his successfulorganization. His perspective of having a customer department uses a (an) _____ perspective.a.outside-inb.externalc.inside-outd.modern(a; Challenging)39.Customer-driven marketing usually works well when _____ and when customers_____.a. a clear need exits; are easy to identifyb.customers know what they want; can afford itc. a firm can deliver the goods desired; are thoroughly researchedd. a clear need exists; know what they want(d; Challenging)40.Mary Tanaka enjoys her work at Times Designs, Pte Ltd. Her organizationunderstands customer needs even better than customers themselves do and creates products and services that will meet existing and latent needs, now and in the future.Mary’s firm practices _____ marketing.a.customer-drivenb.customer-drivingc.relationshipd.none of the above(b; Challenging)41.Now many companies are beginning to think of _____ interests as well as their owncustomers’ needs.a.society’sb.stockholders’c.investors’d.lenders’(a; Easy)42.The societal marketing concept seeks to establish a balance between consumer short-run wants and consumer_____.a.short-run costs and profitsb.short-run ethicsc.long-run welfared.health(c; Moderate)43.You find yourself in a new job. Your marketing manager is heavily involved in theprocess of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. Your manager is concerned with which one of the following?a.database managementb.Web site hitsc.relationship managementd.customer relationship management(d; Moderate)panies today face some new marketing realities that mean there are fewercustomers to go around. Changing demographics, _____, and overcapacity in many industries are great concerns.a.more sophisticated competitorsb.higher unemploymentc.slowing incomesd.9/11(a; Challenging)45._____ is an important concept when we realize that losing a customer means losingmore than a single sale. It means losing the entire stream of purchases that thecustomer would make over a lifetime of patronage.a.Heuristics profitc.Customer lifetime valued.Relationship marketing(c; Moderate)46.Experience has taught us that the key to building lasting customer relationships is tocreate superior customer value and _____.a.satisfactionb.great servicepetitive pricesd.long-term relationships(a; Easy)47.Customers buy from stores and firms that offer the highest _____.a.value for the dollarb.customer perceived valuec.level of customer satisfactiond.both b and c(b; Challenging)48.Since customers tend to act on perceived values, they often do not judge productvalues and costs _____.a.reliablyb.accuratelyc.objectivelyd.accurately or objectively(d; Moderate)49.Tommy Gray attempts to deliver customer satisfaction every day in his AudioExpressions installation business. He is a smart operator who knows that the key to this goal is to match _____ with _____.a.customer expectations; competitive pricespany performance; competitive pricesc.customer expectations; company performancepany performance; unique products(c; Moderate)50.All of the following are associated with highly satisfied customers except one.a.They are less price sensitive.b.They remain loyal for a longer period.c.They spend a higher percentage of their discretionary income on personal items.d.They talk favorably to others about the company and its products.(c; Moderate)51.Shania works hard with her Internet customers to create an emotional relationship forher customers with the products and services she and her staff sell. She and her staff have created _____.a.customer delightb.customer satisfactionc.customer valued.customer loyalty(a; Challenging)52.Beyond simply retaining good customers, marketers want to constantly increase their“share of customer.” Describe what this means 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 intheir product categories.c.Marketers want to increase the profit margin with this target market.d.none of the above(b; Challenging)53._____ is one of the best ways to increase share of customer.a.Selling uping bait and switchc.Cross sellingd.Relationship selling(c; Easy)54.Karrie Romanov wants to capture the full essence of customer relationshipmanagement. Which of the following will Karrie take into consideration?a.own the customers for lifeb.capture their lifetime valuec.build overall customer equityd.all of the above(d; Moderate)55.Is the following statement true? Clearly, the more loyal the firm’s customers, thehigher the firm’s customer equity.a.nob.yesc.maybed.cannot tell accurately(b; Easy)56.Surveys show that in markets with few customers and high margins, sellers want tocreate _____ with key customers.a.basic relationshipsb.relationship marketingc.extreme partnershipsd.full partnerships(d. Moderate)57.Some firms find themselves in markets with many low-margin customers. AsAssistant Marketing Director, what type of relationship would you develop with these customers?a.full partnershipsb.basic relationshipsc.relationship marketingd.key customer marketing(b; Challenging)58.Many organizations today realize that in addition to providing financial benefits tocustomers, they must also add _____ benefits.a.socialb.emotionalc.rationald.psychographic(a; Easy)59.By supplying customers with special equipment or computer linkages that help themmanage their orders, payroll, or inventory, a business marketer would be building customer relationships by adding _____.a.greater customer serviceb.partnership marketingc.structural tiesd.none of the above(c; Moderate)60.You have just read a report in a leading business magazine. It states that the majormarketing developments as we enter the new millennium can be summed up in what single theme?a.relationship marketingb.connectingc.partneringworking(b; Challenging)61.You will learn that marketing ultimately involves attracting, keeping, and _____profitable customers.a.trackingb.placing in a databasec.growingd.none of the above(c; Moderate)62.We can say that the major force behind the new “connectedness” is explosiveadvances in information, transportation, and _____.puter telecommunicationsb.improved market researchc.better-trained marketing departmentsd.Web sites(a; Easy)63.A tremendous advantage of modern communication and advertising tools is thatmarketers can zero in on selected customers with carefully _____.a.selected customer profilesb.customized productsc.flexible pricing rangesd.selected targeted messages(d; Moderate)64.You have just been told by your supervisor at work that a New Economy hasemerged. What is the technology behind this new force?a.the Internetb.Web sitesc.voice maild.cell phones(a; Easy)65.Pete Santina has just realized something that he needs to tell his marketing manager atwork. Pete knows that today few firms still practice true _____.a.production orientationb.sales orientationc.mass marketingd.market segmenting(c; Moderate)66.Many marketers use a concept today to determine which customers can be servedprofitably and which ones cannot. They target the winning ones for pampering.What is this concept called?a.selective relationship managementb.target marketingc.market segmentingd.selective targeting(a; Challenging)67.There is a trend today to do away with unprofitable customers. This ends upimproving the _____ of the firm.a.databaseb.profitabilityc.imaged.customer relationships(b; Moderate)68.In addition to connecting more deeply with customers, many companies are alsoconnecting more _____.a.directlyb.frequentlyc.inexpensivelyd.none of the above(a; Easy)69.Suzie Chan strengthens her company’s connections with partners all along the supplychain. What type of management is she using?a.outside partneringb.supplier connectingc.channelingd.supply chain(d; Easy)70.Most companies realize that they need partners to go beyond supply chainmanagement. What do we call this association?a.strategic alliancesb.strategic planningc.partneringd.mutual reciprocity(a; Moderate)71.Today, in countries around the world, managers are going beyond a local view of thecompany’s industry and competitors. _____ opportunities are becoming morecommon.a.Globalb.Ethnicc.Subculturald.Internal(a; Easy)72.Your authors have expressed that in the next century winning companies may well bethose that have built the best _____.a.channels of distributionb.sales forcec.global networksernmental relations(c; Moderate)73.Many firms today are taking a proactive orientation by becoming more socially and_____ responsible.a.environmentallyb.financiallyc.ethicallyd.all of the above(a; Challenging)74.Today, which of the following types of organizations use various marketing strategiesin addition to larger corporations?a.small businessesb.minority owned businessesc.not-for-profit organizationsd.all of the above(d; Easy)ernmental agencies are becoming more involved in marketing as the years pass.When a local government advertises keeping the area’s streams and water supply cleaner, it is involved in _____.a.green marketingb.social marketing campaignsc.demarketingd.environmental marketing(b; Challenging)76.Is it true that every type of organization can connect through marketing?a.yesb.noc.maybed.cannot be determined(a; Easy)77.A more modern view of marketing is that it has evolved from customer acquisition tocustomer _____.a.involvementb.carec.exploitationd.service(b; Easy)78.The old marketing view emphasized trying to make a profit on each sale rather thantrying to profit by managing what value?a.customer lifetime valueb.customer satisfaction indexc.cognitive dissonanced.all of the above(a; Challenging)79.Which word is missing from the following statement? Marketers need to _____,create, communicate, and deliver real value to customers.a.findb.understandc.explored.seek(b; Easy)80.Modern companies are improving their customer knowledge and customer _____.a.appreciationb.awarenessc.connectionsd.none of the above(c; Easy)True – False81.It is safe to say that today’s most important marketing concept is customerrelationship management.(True; Easy)82.The best-known dot com business name in the world is Ebay.(False; Moderate) is an outstanding marketing company. The key to its future is itsrelationships with its customers.(True; Easy)’s unique blend of benefits includes huge selection, good value,convenience, and customer satisfaction.(False; Moderate)85.Internet-based companies tend to spend tremendous outlays on customer acquisition. (True; Moderate)86.Like , today’s successful companies at all levels have one thing incommon – they are strongly supplier focused and heavily committed to cost savings. (False; Challenging)87.The simplest definition of modern marketing is managing profitable customerrelationships.(True; Easy)88.A thorough definition of marketing tells us that it is a business and managerialprocess by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.(False; Moderate)89.The difference between human needs and wants is that needs are states of feltdeprivation.(True; Easy)90.Harry Porter is addressing customer needs by putting forth a set of benefits hepromises to consumers to satisfy them. Harry is concerned with valueproposition.(True; Moderate)91.Smart marketers look beyond the attributes of the products and services they sell.They create brand meaning and brand experiences for consumers.(True; Moderate)92.Customer value in relation to a purchase depends on how well the product’sperformance lives up to the customer’s expectations.(False; Moderate)93. Marketing management is interested in serving all customers in every way toremain competitive in today’s markets.(False; Moderate)94. At times it becomes necessary to reduce demand for some products and services.When the government tries to reduce smoking of tobacco products, it adds more tax to the products and is practicing demarketing.(True; Easy)95. Aminah’s law office has developed a new format and wording for wills. The staffbelieves they offer the most in quality, performance, and innovative features. Her law office is practicing the production concept.(False; Moderate)96. The selling concept holds that consumers will not buy enough of the firm’sproducts unless it undertakes a large-scale selling and promotion effort. (True; Easy)97. Your department holds that achieving organizational goals depends on knowingthe needs and wants of target markets and delivering the desired satisfaction better than competitors do. Your department is practicing the selling concept. (False; Moderate)98. We say that the selling concept is an inside-out perspective.(True; Challenging)99. The major difference between customer-driving marketing and customer-drivenmarketing is that the former considers existing and latent needs, now and in thefuture.(True; Easy)100. The societal marketing concept questions whether the pure marketing concept overlooks possible conflicts between consumer short-run and long-run welfare. (True; Moderate)101. One Asian company, Kao, Japan’s largest toiletries group ‘wants to make a larger contribution to society to make life easier for people’. This firm practices societal marketing.(True; Moderate)102. Your supervisor is concerned with the entire stream of purchases each customer makes over the lifetime of his or her patronage. We call this customer lifetimevalue.(True; Easy)103. Customers buy from businesses that offer the highest customer perceived value. (True; Easy)104. A smart company tries to delight customers by promising more than it can deliver and delivering more than it promises.(False; Moderate)105. Loyal customers must be more than satisfied, they must be highly satisfied. (True; Easy)106. To increase their “share of customer”, a firm concentrates on retaining as many customers as possible over their lifetimes.(False; Challenging)107. To practice customer equity, a company must be concerned with the total combined customer lifetime values of all major purchasers of its products. (False; Challenging)108. In order to develop full partnerships with key customers, firms should add financial and social benefits to customer purchases.(True; Moderate)109. The major marketing development of our day is summed up in a single theme called “connecting.”(True; Moderate)Essay110. Define marketing in more than one way.In its simplest definition it is managing profitable customer relationships. It alsomeans satisfying customer needs. Marketing is applied as a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.(Easy; pp. 4 and 5)111. How do marketers differentiate between needs, wants, and demands?Marketers realize that humans have needs when they are in a state of feltdeprivation. These needs take on the form of wants as they are shaped by culture and individual personality. When backed by buying power, wants becomedemands. Companies research demands and supply the needs that drive them. (Easy; p. 5)112. Explain marketing management in today’s terms.Marketing management is the art and science of choosing target markets andbuilding profitable relationships with them. This involves getting, keeping, andgrowing customers through creating, delivering, and communicating superiorcustomer value. Thus, marketing management involves managing demand, which in turn involves managing customer relationships.(Moderate; p 10)113. Distinguish between value proposition and marketing offer.Companies address needs by putting forth a value proposition, which means a set of benefits that they promise to consumers to satisfy their needs. It is fulfilledthrough a marketing offer which offers some combination of products, services,information, or experiences to satisfy needs and wants in the market. (Challenging; p. 6)114. Describe the five marketing management orientations.The production concept holds that consumers will favor products that areavailable and highly affordable. The product concept holds that consumers will favor products that offer the most in quality, performance, and innovativefeatures. Those who follow the selling concept hold that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling andpromotion effort. Using the marketing concept means that achievingorganizational goals depends on knowing the needs and wants of target marketsand delivering satisfactions better than competitors do. The societal marketingconcept holds that the firm should determine the needs, wants, and interests oftarget markets.(Challenging: pp. 10 - 12)115. Explain customer relationship management.Customer relationship is no longer defined as a customer database managementactivity. It is now the overall process of building and maintaining profitablecustomer relationships by delivering superior customer value and satisfaction.(Easy; p. 13)116. Discuss strategies for building lasting customer relationships.Determining the customers’ lifetime values is the place to start. Next, customerperceived value and satisfaction must be built and delivered. When a firm builds customer loyalty and retention, it grows its share of customers and its “share ofcustomer” through customer relationships and equity(Challenging; pp. 13 - 16)117. Analyze the major challenges facing marketers heading into the new “connected”millennium.Marketers must connect faster and better with customers. The latest technologies must be used to ensure delivery of time-based competition. Web sites and e-commerce must be fine-tuned to connect with more carefully selected customers.Many companies are connecting directly with customers to customize their mix of products and services. Partnership relationship and supply chain managementmust be built with strategic alliances to make those domestic and globalchallenges.(Challenging; pp. 17 - 22)118. Explain why is such a successful company. uses the latest in Web technology to build strong, one-to-onecustomer relationships based on creating genuine customer value. It turns a long-term profit as a result. This company has amassed 35 million customers by being relentlessly customer driven. A special experience is delivered to every customer to build customer loyalty.(Moderate; pp. 3 and 4)21。
