Chapter 1 Marketing: Creating and Capturing Customer Value1) All of the following are accurate descriptions of modern marketing, EXCEPT which one?A) Marketing is the creation of value for customers.B) Marketing is managing profitable customer relationships.C) Selling and advertising are synonymous with marketing.D) Marketing involves satisfying customers' needs.E) Marketing is used by for-profit and not-for-profit organizations.Answer: CDiff: 2 Page Ref: 2 and 4Skill: Concept2) According to the opening scenario, the Tide marketing team is MOST concerned about which of the following?A) maintaining its brand shareB) fostering customers' emotional connections with their productC) advertising their product's benefitsD) comparing the effectiveness of their product to other brandsE) incorporating consumer-generated marketing in the marketing mixAnswer: B3) According to management guru Peter Drucker, "The aim of marketing is to________."A) create customer valueB) identify customer demandsC) make selling unnecessaryD) set realistic customer expectationsE) sell productsAnswer: CDiff: 2 Page Ref: 5Skill: Concept4) ________ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through value creation and exchange.A) SellingB) AdvertisingC) BarteringD) MarketingE) NegotiatingAnswer: DDiff: 2 Page Ref: 5Skill: Concept5) Which steps of the five-step marketing process are about understanding customers,creating customer value, and building strong customer relationships?A) the first two onlyB) the first three onlyC) the first four onlyD) the last three onlyE) the last four onlyAnswer: CDiff: 2 Page Ref: 5AACSB: CommunicationSkill: Concept6) When marketers set low expectations for a market offering, the biggest risk they run is ________.A) disappointing loyal customersB) decreasing customer satisfactionC) failing to attract enough customersD) failing to understand their customers' needsE) incorrectly identifying a target marketAnswer: CDiff: 1 Page Ref: 7Skill: Concept7) ________ is the act of obtaining a desired object from someone by offering something in return.A) A value propositionB) ExchangeC) BriberyD) Value creationE) DonationAnswer: BDiff: 1 Page Ref: 7Skill: Concept8) A(n) ________ is the set of actual and potential buyers of a product.A) marketB) audienceC) groupD) segmentE) exchangeAnswer: ADiff: 1 Page Ref: 7Skill: Concept9) Consumer research, product development, communication, distribution, pricing, and service are all core ________ activities.A) exchangeB) marketingC) managementD) productionE) customer relationship managementAnswer: BDiff: 1 Page Ref: 7AACSB: CommunicationSkill: Concept10) Which of the following is the most likely result of a marketing strategy that attempts to serve all potential customers?A) All customers will be delighted.B) Customer-perceived value will increase.C) Customer evangelists will become unpaid salespersons for the service or product.D) Not all customers will be satisfied.E) The company will need to follow up with a demarketing campaign.Answer: DDiff: 3 Page Ref: 9AACSB: Analytic SkillsSkill: Concept11) When customers don't know what they want or don't even know what's possible, the most effective strategy is ________ marketing.A) customer-drivenB) customer-drivingC) societalD) productionE) productAnswer: BDiff: 2 Page Ref: 11Skill: Concept12) 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) immediate healthE) value propositionsAnswer: CDiff: 2 Page Ref: 11AACSB: Ethical Reasoning13) Which concept holds that firms must strive to deliver value to customers in a way that maintains or improves the consumer's and society's well-being?A) marketingB) sellingC) productD) societal marketingE) equityAnswer: DDiff: 1 Page Ref: 11AACSB: Ethical ReasoningSkill: Concept15) The three areas of consideration that should be balanced in the societal marketing concept are consumer wants, society's interests, and ________.A) human welfareB) want satisfactionC) company profitsD) short-run wantsE) long-term needsAnswer: CDiff: 2 Page Ref: 11AACSB: Ethical ReasoningSkill: Concept15) The set of marketing tools a firm uses to implement its marketing strategy is called the ________.A) promotion mixB) product mixC) marketing mixD) TQME) marketing effortAnswer: CDiff: 2 Page Ref: 12Skill: ConceptObjective: 1-360) The final step in the marketing process is ________.A) capturing value from customersB) creating customer loyaltyC) creating customer lifetime valueD) understanding the marketplaceE) designing a customer-driven marketing strategyAnswer: ADiff: 1 Page Ref: 2116) Stew Leonard, the owner of a highly successful regional supermarket chain, reacts adversely to losing a single customer sale. He feels that this amounts to losing the entire stream of future purchases that a customer is likely to make if he or she remains in the area. Stew Leonard's concern is an illustration of which of the following?A) share of customerB) market shareC) profitabilityD) customer lifetime valueE) market share maintenanceAnswer: DDiff: 2 Page Ref: 22AACSB: Reflective ThinkingSkill: Concept17) Advertising Age, a magazine for advertising professionals, recently gave its Ad Agency of the Year award to ________.A) the consumerB) on-line marketersC) Frito-LayD) Coca-ColaE) YouTubeAnswer: ADiff: 3 Page Ref: 2018) Which of the following is an example of consumer-generated marketing?A) Toyota's presence in online communitiesB) Nike's Nike Plus running Web siteC) MasterCard's use of "Priceless" commercials shot by customersD) Neiman Marcus's InCircle Rewards program for its best customersE) The Lexus Covenant aimed at creating customer delightAnswer: CDiff: 2 Page Ref: 20Skill: Concept19) When an airline goes after a "share of travel" from its customers, it is attempting to increase ________.A) customer lifetime valueB) share of customerC) total customer spendingD) customer satisfactionE) customer ownershipAnswer: BDiff: 2 Page Ref: 22AACSB: Reflective ThinkingSkill: Concept20) Beyond simply retaining good customers, 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 increase the profit margin with this target market.D) Marketers want to continuously increase their customers' levels of satisfaction.E) Marketers want to turn satisfied customers into delighted customers.Answer: BDiff: 3 Page Ref: 22Skill: Concept21) Customers can be classified into four relationship groups, according to their profitability and projected loyalty. Which type of customers have the highest profit potential and strong loyalty?A) barnaclesB) strangersC) butterfliesD) true friendsE) big fishAnswer: DDiff: 2 Page Ref: 24Skill: Concept22) Which of the following statements about the Internet is most accurate?A) Companies are cautiously using the Internet to build closer relationships with customers and marketing partners alike.B) After the dot-com meltdown of 2000, fewer consumers are buying products and/or services online.C) The Internet makes it easy for consumers to view, interact with, and create marketing content.D) Consumer e-commerce looks promising, but business-to-business e-commerce is declining.E) Web 2.0 involves a less balanced approach to online marketing than the original dot-com boom did.Answer: CDiff: 2 Page Ref: 26AACSB: Use of ITSkill: Concept23) Which of the following is currently the fastest-growing form of marketing?A) consumer-generated marketingB) online marketingC) mass media marketingD) social marketingE) word-of-mouth marketingAnswer: BDiff: 3 Page Ref: 26AACSB: Use of ITSkill: Concept24) Today almost every company, small and large, is affected in some way by which of the following?A) the societal marketing conceptB) not-for-profit marketingC) global competitionD) customer-generated marketingE) caring capitalismAnswer: CDiff: 2 Page Ref: 26Skill: Concept25) Governmental 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 marketingE) partnership marketingAnswer: BDiff: 2 Page Ref: 29Skill: Concept26) Fast Food, Inc. views marketing as the science and art of finding, retaining, and growing profitable customers by providing them with the food they want. Fast Food, Inc. practices societal marketing.Answer: FALSEDiff: 2 Page Ref: 11AACSB: Reflective ThinkingSkill: Application27) The societal marketing concept calls on marketers to balance consumer wants and desires, company profits, and society's interests.Answer: TRUEDiff: 2 Page Ref: 11AACSB: Ethical ReasoningSkill: Concept28) For most marketers, customer relationship management (CRM) is exclusively a matter of customer data management.Answer: FALSEDiff: 2 Page Ref: 13Skill: Concept29) The marketing mix includes production, price, promotion, and packaging; this is known as the four Ps of marketing.Answer: FALSEDiff: 2 Page Ref: 12Skill: Concept30) Customer-perceived value is defined as the customer's evaluation of the perceived difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.Answer: TRUEDiff: 1 Page Ref: 13Skill: ConceptChapter 2 Company and Marketing Strategy:Partnering to Build Customer Relationships1) Which of the following involves adapting a firm to take advantage of opportunities in its constantly changing environment?A) long-range planningB) short-range planningC) media planningD) strategic planningE) annual planningAnswer: DDiff: 2 Page Ref: 38Skill: Concept2) When a firm develops and maintains a strategic fit between its goals and capabilities, it is performing ________.A) mission planningB) values planningC) strategic planningD) business-portfolio planningE) operations planningAnswer: CDiff: 1 Page Ref: 383) Which of the following is the first step in strategic planning?A) set objectives and goalsB) develop the business portfolioC) define the company missionD) plan marketing strategiesE) identify threats and weaknessesAnswer: CDiff: 1 Page Ref: 394) Which of the following is NOT a step in the strategic planning process?A) defining the company missionB) setting company objectives and goalsC) designing the business portfolioD) planning marketing and other functional strategiesE) evaluating all members of the value chainAnswer: EDiff: 2 Page Ref: 395) Which of the following provides an answer to these questions: What is our business? Who are our customers? What do our customers value? What should our business be?A) objectives and goalsB) a mission statementC) a business portfolioD) marketing and functional strategiesE) operational strategiesAnswer: BDiff: 2 Page Ref: 39AACSB: CommunicationSkill: Concept6) After management has identified the key businesses making up its company, whatis the next step in portfolio analysis?A) identifying businesses in which to investB) assessing the attractiveness of its SBUsC) deciding whether to harvest any businessesD) completing short-range planningE) identifying SBUsAnswer: BDiff: 2 Page Ref: 417) The best known product portfolio planning method was developed by ________.A) the Boston Consulting GroupB) Philip KotlerC) Harvard UniversityD) the SRI Consulting FirmE) James P. HessAnswer: ADiff: 2 Page Ref: 418) Most portfolio analysis methods evaluate SBUs on two dimensions, namely________ and ________.A) market share; strength of the SBU's positionB) market diversification; relative market shareC) market or industry attractiveness; strength of the SBU's positionD) market growth rates; profitsE) market penetration; market development9) In the Boston Consulting Group approach, ________ provides a measure of market attractiveness.A) relative market shareB) market developmentC) market penetrationD) market growth rateE) market segmentationAnswer: DDiff: 2 Page Ref: 41Skill: Concept10) In the Boston Consulting Group approach, ________ serves as a measure of company strength in the market.A) relative market shareB) market developmentC) market diversificationD) market growth rateE) market segmentationAnswer: ADiff: 2 Page Ref: 4111) Each department in a company that carries out value-creating activities can be thought of as a link in the company's ________.A) market developmentB) product developmentC) business portfolioD) value chainE) value delivery networkAnswer: DDiff: 1 Page Ref: 46Skill: ConceptObjective: 2-312) Jack Welch, CEO at General Electric, said that "Companies can't give job security, only ________ can."A) developmentB) growthC) good strategyD) customersE) efficiencyAnswer: DDiff: 3 Page Ref: 47Skill: ConceptObjective: 2-313) Multinationals like Honda Motor Co. and Wal-Mart stores have designed programs to work closely with their suppliers to help them reduce their costs and improve quality. This illustrates the importance of an efficient ________.A) business portfolioB) low-cost operatorC) product mixD) value delivery networkE) value chainAnswer: DDiff: 2 Page Ref: 47Skill: ConceptObjective: 2-314) Which of the following is the marketing logic by which a company hopes to achieve profitable customer relationships?A) priceB) a consistent product mixC) the value delivery networkD) marketing strategyE) differentiationAnswer: DDiff: 1 Page Ref: 48Skill: ConceptObjective: 2-415) Lucy Ortiz is preparing a PowerPoint presentation of the marketing process to show at a sales meeting. ________ should appear in the center of her diagram depicting marketing strategies and the marketing mix.A) Sales goalsB) Customer value and relationshipsC) Company objectivesD) Customer retention ratesE) CompetitorsAnswer: BDiff: 1 Page Ref: 49Skill: ConceptObjective: 2-416) Which of the four Ps describes the goods-and-services combination the company offers to the target market?A) priceB) promotionC) productD) placeE) packageAnswer: CDiff: 1 Page Ref: 51Skill: ConceptObjective: 2-517) In the four Ps of the marketing mix, design, packaging, services, and variety all fall under the category of ________.A) productB) priceC) promotionD) placeE) positionAnswer: ADiff: 2 Page Ref: 51Skill: ConceptObjective: 2-418) Today the four Ps are compared to the four Cs. Product and place are called________ and ________, respectively.A) convenience; customer solutionB) customer cost; convenienceC) communication; customer solutionD) customer solution; convenienceE) communication; convenienceAnswer: DDiff: 3 Page Ref: 52Skill: ConceptObjective: 2-419) In the marketing management functions, an SWOT analysis should ________ a marketing plan.A) precedeB) coincide withC) followD) evaluateE) take priority overAnswer: ADiff: 2 Page Ref: 54Skill: ConceptObjective: 2-520) In a basic SWOT analysis the "T" stands for ________.A) timingB) trustC) threatsD) tradeE) tangibleAnswer: CDiff: 1 Page Ref: 53Skill: ConceptObjective: 2-521) The ________ organizational system's main advantage is that the company is organized around the needs of specific market segments.A) market managementB) geographicC) product managementD) verticalE) functionalAnswer: ADiff: 2 Page Ref: 56Skill: ConceptObjective: 2-522) An increasingly large number of firms are changing their organizational focus from ________ to ________.A) product management; functional managementB) product management; geographic managementC) brand management; customer managementD) geographic management; functional managementE) global management; regional managementAnswer: CDiff: 2 Page Ref: 57Skill: ConceptObjective: 2-523) Evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained is called ________.A) marketing controlB) strategic controlC) operating controlD) developmental controlE) efficiencyAnswer: ADiff: 1 Page Ref: 57Skill: ConceptObjective: 2-524) The marketing control process entails the following steps in order: setting goals, ________, evaluating performance, and ________.A) evaluating goals; measuring performanceB) achieving goals; measuring performanceC) taking corrective action; measuring performanceD) measuring performance; taking corrective actionE) taking corrective action; following upAnswer: DDiff: 2 Page Ref: 57Skill: ConceptObjective: 2-525) Which of the following is NOT a step in the marketing control process?A) setting goalsB) measuring performanceC) taking corrective actionD) defining the missionE) evaluating the causes of gaps between expected and actual performance Answer: DDiff: 3 Page Ref: 57Skill: ConceptObjective: 2-526) Mission statements should be realistic and general in nature.Answer: FALSEDiff: 2 Page Ref: 39Skill: ConceptObjective: 2-127) ABC Fortunes has just developed a formal statement of its purpose. This firm has put together a mission statement.Answer: TRUEDiff: 1 Page Ref: 39Skill: ConceptObjective: 2-128) Mission statements should both emphasize the company's strengths in the marketplace and be motivating.Answer: TRUEDiff: 2 Page Ref: 39AACSB: CommunicationSkill: ConceptObjective: 2-129) At America Online, "we create customer connectivity, anytime, anywhere," is a product-oriented business definition.Answer: FALSEDiff: 3 Page Ref: 39AACSB: Reflective ThinkingSkill: ApplicationObjective: 2-130) "At Nike, we sell shoes" is a market-oriented business definition.Answer: FALSEDiff: 3 Page Ref: 40AACSB: Reflective ThinkingSkill: ApplicationObjective: 2-1Chapter 3 Analyzing the Marketing Environment1) You are directed to study the actors close to the company that affect its ability to serve its customers-departments within the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. What are you studying?A) the macroenvironmentB) the microenvironmentC) the marketing environmentD) the demographic environmentE) the global environmentAnswer: BDiff: 1 Page Ref: 66Skill: ConceptObjective: 3-12) Which of the following terms is used to describe the factors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers?A) the marketing environmentB) the cultural environmentC) strategic planningD) target marketsE) the marketing mixAnswer: ADiff: 1 Page Ref: 66Skill: ConceptObjective: 3-13) You are directed to study the demographic, economic, natural, technological, political, and cultural factors that are larger societal forces affecting your company. What are you studying?A) the macroenvironmentB) the microenvironmentC) the external environmentD) the marketing mixE) the global environmentAnswer: ADiff: 1 Page Ref: 66Skill: ConceptObjective: 3-14) Which of the following is NOT a type of factor in a company's macroenvironment?A) demographicB) economicC) technologicalD) competitiveE) politicalAnswer: DDiff: 1 Page Ref: 66Skill: ConceptObjective: 3-15) All of the groups within a company are called the ________.A) cultureB) diversityC) internal environmentD) climateE) rangeAnswer: CDiff: 2 Page Ref: 67Skill: ConceptObjective: 3-16) Which type of market buys goods and services to produce public services or totransfer them to others who need them?A) governmentB) resellerC) wholesaleD) consumerE) retailAnswer: ADiff: 1 Page Ref: 69Skill: ConceptObjective: 3-17) Rachel Patino works for a wholesale company called Distributors Unlimited. She is responsible for buying and selling goods at a profit to small retailers. What is her market?A) businessB) resellerC) wholesaleD) consumerE) retailAnswer: BDiff: 1 Page Ref: 69Skill: ConceptObjective: 3-18) Your marketing department is currently researching the size, density, location, age, and occupations of your target market. Which environment is being researched?A) demographicB) psychographicC) economicD) geographicE) culturalAnswer: ADiff: 1 Page Ref: 70Skill: ConceptObjective: 3-29) The three largest generational groups in America are the baby boomers, Generation Xers, and ________.A) seniorsB) MillennialsC) teensD) tweensE) toddlersAnswer: BDiff: 1 Page Ref: 71AACSB: Multicultural and DiversitySkill: ConceptObjective: 3-210) As a group, ________ are the most affluent Americans.A) baby boomersB) Generation XersC) the MillennialsD) echo boomersE) seniorsAnswer: ADiff: 2 Page Ref: 71AACSB: Multicultural and DiversitySkill: ConceptObjective: 3-211) "Dreams don't retire" is the theme of a(n) ________ marketing campaign aimed at baby boomers.A) financial servicesB) anti-aging productsC) travel and entertainmentD) fitness productsE) technological productsAnswer: ADiff: 2 Page Ref: 73Skill: ConceptObjective: 3-212) In 1950, women made up under 40 percent of the workforce; now they make up ________ percent.A) 35B) 40C) 43D) 46E) 59Answer: EDiff: 3 Page Ref: 75AACSB: Multicultural and DiversitySkill: ConceptObjective: 3-213) Which of the following is a trend that depicts the increasingly nontraditional nature of today's American family?A) working women making up a smaller percentage of the workforceB) the falling percentage of married couples with childrenC) dual-income families declining in numberD) stay-at-home dads declining in numberE) the declining reliance on convenience foods and servicesAnswer: BDiff: 2 Page Ref: 75AACSB: Multicultural and DiversitySkill: ConceptObjective: 3-214) Over the past two decades, the U.S. population has shifted most heavily toward the ________ states.A) MidwesternB) NorthernC) SunbeltD) SoutheasternE) NortheasternAnswer: CDiff: 2 Page Ref: 76Skill: ConceptObjective: 3-215) Which of the following geographical areas has NOT seen a recent population increase?A) micropolitan areasB) suburbsC) the WestD) the NortheastE) the SouthAnswer: DDiff: 3 Page Ref: 76Skill: ConceptObjective: 3-216) Which of the following American government agencies is charged with setting and enforcing pollution standards?A) the Environmental Protection Agency (EPA)B) the Federal Trade Commission (FTC)C) the Food and Drug Administration (FDA)D) the Consumer Product Safety CommissionE) the Federal Energy Regulatory CommissionAnswer: ADiff: 2 Page Ref: 81AACSB: Ethical ReasoningSkill: ConceptObjective: 3-317) Which of the following has encouraged marketers to pursue environmentally sustainable strategies?A) the EPAB) the black marketC) the green movementD) deregulationE) green interventionAnswer: CDiff: 2 Page Ref: 82AACSB: Ethical ReasoningSkill: ConceptObjective: 3-318) Which of the following is a result of regulations set up by the Food and Drug Administration and the Consumer Product Safety Commission?A) The time between new product ideas and their introduction to the market has decreased.B) Spending on research and development has decreased.C) Research costs for companies have grown.D) More companies have failed to meet safety standards.E) Companies are more focused on making practical, affordable versions of products. Answer: CDiff: 2 Page Ref: 83AACSB: Ethical ReasoningSkill: ConceptObjective: 3-319) Marketers should be aware of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society. This is most accurately described as the ________ environment.A) socio-legalB) culturalC) politicalD) legal-technologicalE) economicAnswer: CDiff: 1 Page Ref: 84AACSB: Ethical ReasoningSkill: ConceptObjective: 3-420) Even the most liberal advocates of free-market economies agree that the system works best with ________ regulation.A) privateB) maximumC) intermittentD) at least someE) noAnswer: DDiff: 2 Page Ref: 84AACSB: Ethical ReasoningSkill: ConceptObjective: 3-421) When the marketing manager Suzie Kwan discusses factors and forces outside marketing, such as political that affect marketing management's ability to build and maintain successful relationships with target customers, she is talking about the external marketing concept.Answer: FALSEDiff: 2 Page Ref: 66Skill: ApplicationObjective: 3-122) The microenvironment consists of larger societal forces that affect a company, such as demographic, economic, political, and cultural forces.Answer: FALSEDiff: 1 Page Ref: 66Skill: ConceptObjective: 3-123) The macroenvironment consists of the factors close to the company that affect its ability to serve its customers, such as suppliers, customer markets, competitors, and publics.Answer: FALSEDiff: 1 Page Ref: 66Skill: ConceptObjective: 3-124) Trudie Jones works for a distribution channel firm that helps several electronics companies find customers or make sales to them. Trudie works for a reseller. Answer: TRUEDiff: 3 Page Ref: 67AACSB: Reflective ThinkingSkill: ApplicationObjective: 3-1。
