Chapter 01
Creating Customer Relationships and Value through Marketing
Multiple Choice Questions
1. | In response to a growing interest in healthful, nutritious, organic products, Chobani created
A. | an Italian-style ragù sauce. |
B. | a Turkish-style cottage cheese. |
C. | a French-style butter. |
E. | an Asian-style teriyaki sauce. |
|
2. | Where did Hamdi Ulukaya, the creator of Chobani, Inc., want to place Chobani yogurt?
A. | in organic foods section of major grocery store chains |
B. | in warehouse club stores like Sam's Club or Costco |
C. | in the dairy case of major grocery store chains |
D. | in mass merchandise stores like Target |
E. | in independent organic cooperatives, farmer's markets, and major organic grocery stores like Whole Foods or Sprouts |
|
3. | All of the following are marketing mix strategies that Chobani has used to sell its yogurt except
A. | sponsor U.S. Olympic and Paralympic teams. |
B. | price the Chobani yogurt line below its major competitors (Yoplait and Dannon) to increase sales and market share. |
C. | use Facebook, YouTube, and other social media to promote Chobani yogurt. |
D. | rely on word of mouth to reach new customers. |
E. | air a Super Bowl commercial featuring a "yogurt bear." |
|
4. | Which of the following statements about marketing is most accurate?
A. | Unless you take a marketing class, you will never truly know anything about marketing. |
B. | Marketing is nothing more than common sense. |
C. | Marketing requires an innate sense of creativity; you either have it or you don't. |
D. | You can call yourself a marketing expert only if you have sold something. |
E. | You are already a marketing expert as you make marketing-related decisions every day. |
|
5. | Mark Zuckerberg is a co-founder of the social networking website called
|
6. | Initially, Facebook targeted which consumer market segment?
A. | grade school children ages 6 to 12 years old |
D. | adults with professional occupations |
E. | senior adults 55 years and older |
|
7. | Mark Zuckerberg encountered unimaginable success with his launch of "TheFacebook.com" website from his college dorm room. By the second week, it had almost __________ members.
|
8. | Marketing refers to
A. | the production of products or services that will generate the highest return on investment. |
B. | the strategies used in the advertising and promotion of products and services to customers around the globe. |
C. | the process of identifying target market segments for a product or service. |
D. | the activity involved in getting a product or service from the manufacturer to ultimate consumers and organizational buyers. |
E. | the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. |
|
9. | The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large is referred to as
|
10. | All of the following are true about marketing except
A. | marketing is a broader activity than advertising. |
B. | marketing stresses the importance of delivering genuine benefits in the offerings of goods, services, and ideas sold to customers. |
C. | marketing persuades people to buy the "wrong" things. |
D. | when an organization engages in marketing, it should also create value for its partners and society. |
E. | marketing is a broader activity than personal selling. |
|
11. | To serve both buyers and sellers, marketing seeks to __________ and satisfy the needs and wants of prospective customers.
|
12. | To serve both buyers and sellers, marketing seeks to discover and __________ the needs and wants of prospective customers.
|
13. | Whether an individual is buying for personal or household use, or an organization is buying for its own use or for resale, the individual or organization would be considered
A. | a prospective customer. |
B. | a dual-purpose marketing decision maker. |
C. | a potential distributor. |
|
14. | A student wants to buy a smartphone so she can share pictures with her friends. An insurance claims adjuster wants to buy a smartphone to document accidents (take pictures, write a report, etc.). If they both purchase the same model smartphone, such as an Apple iPhone, which statement is most accurate?
A. | The adjuster is a prospective customer because the smartphone will be used for work; the student is only a secondary user since the purpose of the smartphone is just for entertainment. |
B. | Both the adjuster and the student are potential customers because in their own way, they both benefit from the smartphone. |
C. | Neither the adjuster nor the student is a prospective customer since the company will pay for the adjuster's smartphone and the student's parents will pay for hers. |
D. | The student is the prospective customer since there are more students buying smartphones for personal use than there are insurance adjusters buying smartphones for business use. |
E. | Only a person who has bought a smartphone previously is a prospective customer because only previous owners of smartphones benefit from buying new ones. |
|
15. | The Terrafugia Transition is a 19-foot, two-seater, road-drivable, light-sport aircraft with an anticipated price of $279,000. The most likely prospective customers for this flying car would include
A. | students who attend college at least 500 miles away from home. |
B. | retired seniors receiving Social Security. |
C. | executives for whom time is extremely important. |
D. | teens who like to try new things. |
E. | families in need of a second vehicle. |
|
16. | In marketing, the idea of exchange refers to
A. | the negotiation phase between the manufacturer and the seller. |
B. | the financial remuneration (monetary payment) for a product or service. |
C. | the trade of things of value between buyer and seller so that each is better off after the trade. |
D. | the bartering of products and services between nongovernmental organizations or individuals. |
E. | the practice of swapping products and services for other products and services rather than for money. |
|
17. | Marketing seeks to discover the needs and wants of prospective customers and satisfy them. Essential to this process is the idea of exchange, which refers to
A. | the trade of things of value between buyer and seller so that each is better off after the trade. |
B. | the negotiation phase between the manufacturer and the seller. |
C. | the financial remuneration (monetary payment) for a product or service. |
D. | the transport of tangible goods to new owners. |
E. | the practice of swapping products and services for other products and services rather than for money. |
|
18. | The trade of things of value between buyer and seller so that each is better off after the trade is referred to as __________.
A. | financial remuneration |
|
19. | The American Red Cross creates advertisements to encourage people to donate blood. After viewing one, Amanda decided to donate a pint of blood. After she did, Amanda felt happy that she had performed a good deed. Did an exchange occur in a marketing sense?
A. | Yes, because the blood was donated to the Red Cross based on an advertisement, a marketing activity. |
B. | Yes, because the donated blood was exchanged for a feeling of satisfaction. |
C. | No, because the Red Cross is nonprofit organization. |
D. | No, because no money changed hands. |
E. | No, because the Red Cross, a service organization, did not provide Amanda with a product. |
|
20. | A church put advertisements in its weekly bulletins to encourage its members to participate in the services by telling a brief, positive story about how fellow members have helped them during times of need. Jack volunteered and shared his story during a service. Afterward, he felt joyous. Was this an exchange in a marketing sense?
A. | Yes, because the church ran an advertisement, a marketing activity. |
B. | No, because the church is nonprofit organization and these actions are expected without any expectation of "exchange." |
C. | No, because no money was exchanged. |
D. | Yes, because sharing his story at a service was exchanged for a feeling of joy. |
E. | No, because the church did not provide Jack with a tangible product or service. |
|
21. | A local college of business offers an outstanding graduate business school education program. Marissa pays the tuition to attend and earns her MBA with a concentration in marketing management. Upon graduating, she is offered a high-paying, fulfilling position. Was this a marketing exchange?
A. | No, because the university earned a profit from Marissa's tuition. |
B. | No, because money was exchanged in the form of tuition and Marissa's income will come from her employer, not the graduate school. |
C. | No, because the school did not provide Marissa with a tangible product, only the potential of an education. |
D. | Yes, because the university promised Marissa she would graduate on time, and she did. |
E. | Yes, because paying tuition was exchanged for knowledge that directly led to Marissa's high-paying, fulfilling new job. |
|
22. | A typical marketing department both shapes and ____________ its relationship with internal and external groups.
|
23. | An organization's marketing department relates to
A. | satisfying primarily consumer needs. |
B. | many people, organizations, and forces. |
C. | the needs and wants mostly of shareholders. |
D. | customers before other entities. |
E. | other internal departments. |
|
24. | ________________ is/are responsible for establishing the organization's mission and objectives.
|
25. | Although an organization's marketing activity focuses on assessing and satisfying consumer needs, an organization must also _______________ the interests of countless other people, groups, and forces that interact to shape the nature of its actions.
B. | strike a balance among |
|
26. | Which of the following statements about marketing activities is most accurate?
A. | Marketing is affected by society but rarely, if ever, affects society as a whole. |
B. | The marketing department both shapes and is shaped by its relationship with internal and external groups. |
C. | Marketing activities are the sole responsibility of the marketing department; other departments are involved only if there is an emergency (such as a product recall). |
D. | Environmental forces do not affect marketing activities as long as a firm closely monitors its environment through rigorous market research. |
E. | Marketing is essentially developing the right product and convincing potential customers that they "need" it, not just "want" it. |
|
27. | Which of the following statements about marketing activities is most accurate?
A. | Marketing is affected by society but rarely, if ever, affects society as a whole. |
B. | The marketing department works closely with other departments and employees to help implement an organization's marketing activities. |
C. | Marketing activities are the sole responsibility of the marketing department; other departments are involved only if there is an emergency (such as a product recall). |
D. | Environmental forces do not affect marketing activities as long as a firm closely monitors its environment through rigorous market research. |
E. | Marketing is essentially developing the right product and convincing potential customers that they "need" it, not just "want" it. |
|
28. | All of the following are departments within a typical organization except
|
29. | The __________ department of an organization is responsible for facilitating relationships, partnerships, and alliances with the organization's customers, shareholders, suppliers, and other organizations.
|
30. | The marketing department of an organization is responsible for facilitating
A. | relationships, partnerships, and alliances with the organization's customers, shareholders, suppliers, and other organizations. |
B. | healthy competition with other product manufacturers. |
C. | financial contracts with banks and other lending institutions. |
D. | alliances with firms with noncompetitive products that target similar markets. |
E. | the coordination between the various departments within the entire firm. |
|
31. | Which of the following statements about marketing departments is most accurate?
A. | The marketing department should work solely with people within its own department. |
B. | The marketing department should suggest where a firm should invest its money based on its knowledge of the market and environmental forces. |
C. | The marketing department is only responsible for the four Ps, not the seven Ps. |
D. | The marketing department is only responsible for market research, supervision of product development, and product promotion. |
E. | The marketing department must work closely with other departments and employees to help provide the customer-satisfying products required for the organization to survive and prosper. |
|
32. | All of the following are environmental forces that affect an organization except
|
33. | Which of the following is not an environmental force?
|
34. | Which of the following statements about marketing activities is most accurate?
A. | Marketing is affected by society but rarely, if ever, affects society as a whole. |
B. | The marketing department works closely with other departments and employees to implement marketing activities. |
C. | Marketing activities are the sole responsibility of the marketing department; other departments are involved only if there is an emergency (such as a product recall). |
D. | Environmental forces do not affect marketing activities as long as a firm closely monitors its environment through rigorous market research. |
E. | Marketing, after all is said and done, is essentially developing the right product and convincing potential customers that they "need" it, not just "want" it. |
|
35. | All of the following are factors required for marketing to occur except
A. | a desire and ability on the part of two or more parties (individuals or organizations) to be satisfied. |
B. | something to exchange between two or more parties (individuals or organizations). |
C. | two or more parties (individuals or organizations) with the same wants. |
D. | two or more parties (individuals or organizations) with unsatisfied needs. |
E. | a way for the parties (individuals or organizations) to communicate. |
|
36. | Four factors are required for marketing to occur: (1) __________; (2) a desire and ability of parties to be satisfied; (3) a way for the parties to communicate; and (4) something to exchange.
A. | a healthy competitive environment |
B. | an affordable and actionable advertising campaign |
C. | a sense of social responsibility |
D. | an ability to see hidden potential within an environmental force |
E. | two or more parties (individuals or organizations) with unsatisfied needs |
|
37. | Four factors are required for marketing to occur: (1) two or more parties (individuals or organizations) with unsatisfied needs; (2) __________; (3) a way for the parties to communicate; and (4) something to exchange.
A. | a healthy competitive environment |
C. | an affordable and actionable advertising campaign |
D. | a desire and ability on their part to be satisfied |
E. | an ability to see hidden potential within an environmental force |
|
38. | Four factors are required for marketing to occur: (1) two or more parties (individuals or organizations) with unsatisfied needs; (2) a desire and ability on their part to be satisfied; (3) __________; and (4) something to exchange.
A. | a way for the parties to communicate |
B. | a healthy competitive environment |
C. | an affordable and actionable advertising campaign |
D. | a sense of social responsibility |
E. | an ability to see hidden potential within an environmental force |
|
39. | Four factors are required for marketing to occur: (1) two or more parties (individuals or organizations) with unsatisfied needs; (2) a desire and ability on their part to be satisfied; (3) a way for the parties to communicate; and (4) __________.
A. | an affordable and actionable advertising campaign |
C. | a healthy competitive environment |
E. | an ability to see hidden potential within an environmental force |
|
40. | Which of the following conditions are necessary for marketing to occur?
A. | a changing environment, a method of assessing needs, a way to communicate, and an exchange location |
B. | parties with cash or credit, a product, a reasonable price, and a place to make an exchange |
C. | a quality product, a fair price, a clever method of promotion, and a place where a customer can buy the product |
D. | two or more parties with unsatisfied needs, a desire and an ability to satisfy them, a way to communicate, and something to exchange |
E. | an ability to see a trend within an environmental force, a product, and an affordable and actionable advertising campaign |
|
41. | For marketing to occur, there must be two or more parties with unsatisfied needs. Dr. Pepper Snapple Group distributes Country Time lemonade in cans through supermarkets at a price comparable to that of soft drinks. The most likely "second" party needed for marketing to occur would be
A. | people who are nostalgic about childhood lemonade stands they had during hot summers. |
B. | people with a desire for a beverage other than soda or water. |
C. | product demonstrators who offer samples of Country Time lemonade to shoppers at local supermarkets. |
D. | a local distributor of alcoholic beverages. |
E. | a nutritionist promoting the benefits of fresh fruit in people's diets. |
|
42. | A student would like to buy a cross-over SUV from a local dealer, but she thinks the payments will be too high. Marketing does not occur in this situation because
A. | two or more parties have unsatisfied needs. |
B. | there is no desire on the part of either party to satisfy its needs. |
C. | one of the involved parties does not have the ability to satisfy its needs. |
D. | there is no way for each party to communicate with one another. |
E. | there has been no assessment of consumer wants and needs. |
|
43. | A college student is taking a full course load, working 20 hours per week, and still has to take out a student loan to cover tuition. One day, he sees a classmate driving a new Lexus LFA sports coupe (price: $375,000) and feels he just has to have one for himself. What factor is most likely to prevent a successful marketing exchange between the student and the local Lexus dealer located in an affluent suburb about 20 miles from his university?
A. | The local Lexus dealer only has one Lexus LFA sports coupe in stock—red, which is the color he wants. |
B. | The student does not have the resources to qualify for a $375,000 auto loan. |
C. | Although the Lexus LFA sports coupe is a great car, there may be other cars with better gas mileage and resale value. |
D. | He's afraid that if someone at school sees him with the car, he might lose his student loan. |
E. | His girlfriend wants him to drive a Kia Soul. |
|
44. | A local candidate running for office would very much like to have your vote. She promises that she will "make the country better." Because all candidates for public office say this, you doubt you'll see real results and decide not to vote for her. Marketing will not occur in this situation because
A. | marketing doesn't apply to the voting process. |
B. | the desire and ability to satisfy needs is missing. |
C. | there is no direct way for the parties to communicate. |
D. | something to exchange is missing. |
E. | there is only one party involved in this situation. |
|
45. | The Arizona Biltmore in Phoenix is a resort hotel located less than a mile from the Biltmore Fashion Park, a large upscale shopping mall. The hotel wants to promote its proximity to the shopping center as well as its many other amenities to convention-goers from other states. Which of the following marketing actions would most likely help The Arizona Biltmore communicate with potential convention attendees?
A. | Place an ad in the in-flight magazines of all the major airlines targeting business/first-class fliers. |
B. | Send a mass mailing to all local businesses. |
C. | Set up information kiosks at several locations within the Biltmore Fashion Park. |
D. | Offer free made-to-order breakfasts for guests staying at the hotel on business. |
E. | Offer special discount rates to guests coming from the East Coast. |
|
46. | A farmhand would like to buy a moped scooter to commute to his job at a nearby ranch. He doesn't know how to find a dealer though, and doesn't have Internet access. Which of the following reasons explain why marketing fails to occur here?
A. | There are not two or more parties with unsatisfied needs. |
B. | A desire to satisfy a need is missing. |
C. | No assessments of consumer wants and needs have been made. |
D. | There is no way for the parties involved to communicate. |
E. | The ability to satisfy a need is missing. |
|
47. | Suppose you want a snack after taking this exam. Dominos is located across the street from your College of Business classroom. Unfortunately, you forgot your wallet in the haste of getting to class on time to take the test. Therefore, you have no means to pay for the pizza. Which of the following reasons explain why marketing fails to occur here between you and Dominos?
A. | There are not two or more parties with unsatisfied needs. |
B. | The ability to satisfy a need is missing. |
C. | A desire to satisfy a need is missing. |
D. | No assessments of consumer wants and needs have been made. |
E. | There is no way for the parties involved to communicate. |
|
48. | John receives a coupon on his iPhone advising him about the location of a Domino's Pizza store.
A. | This is an example of demonstrating an unmet need |
B. | This is an example of discovering a consumer need |
C. | This is an example of the foundation of an exchange relationship |
D. | This is an example of a way for parties to communicate |
E. | This is an example of practicing ethics and sustainability |
|
49. | Domino's Pizza has addressed the first objective in marketing, which is to discover consumers'
A. | diversity of opinion to create advertising messages. |
B. | income to determine the most lucrative price point for a product. |
C. | lifetime value of an offering to the organization. |
D. | characteristics that would be useful to segment markets. |
E. | needs, to create products that could satisfy them. |
|
50. | Marketing discovers consumer needs by
A. | implementing a marketing program. |
B. | conducting effective marketing research. |
C. | balancing the marketing mix elements—the four Ps of the marketing program. |
D. | advertising to diverse groups of prospective buyers. |
E. | copying the products and services of competitors. |
|
51. | Studies of new product launches indicate that about __________ percent of the products fail.
|
52. | To avoid new-product failure, new-product expert Robert M. McMath suggests
A. | implementing a regional rather than a nationwide rollout of a new product. |
B. | building a hierarchical organizational structure so that more people have a chance to spot product problems. |
C. | focusing on customer benefits and learning from the past. |
D. | increasing the marketing budget, since "success comes to those who can outspend the competition." |
E. | releasing several different versions of a new product at the same time to see which one is most successful. |
|
53. | If you followed the suggestions of Robert M. McMath, which of the following provides the best advice for a marketer, such as Colgate, when launching a new consumer product, such as toothpaste?
A. | Anticipate the future five years out in terms of product form, ingredients, and packaging—to invent the "toothpaste of tomorrow!" |
B. | Give the product a mysterious name that is unrelated to the product's benefits but instead provokes consumer curiosity. |
C. | Initiate a Facebook campaign against beverages sweetened with high fructose corn syrup, which can contribute to tooth decay. |
D. | Create unusual packaging that has special shelving requirements. |
E. | Study past toothpaste product failures and learn from them. |
|
54. | A factor that might doom a product in the marketplace is referred to as
|
55. | Showstoppers refer to
A. | creative or innovative members of a marketing team. |
B. | unexpected alternative uses for a product that result in a sudden increase in sales. |
C. | factors that might doom a product in the marketplace. |
D. | a sudden loss of financial backing even though the item is in production. |
E. | a situation when a competitor's product suddenly beats a firm's new product to the marketplace. |
|
56. | The founders of StuffDOT, a social e-commerce site that seeks to reward consumers for their online shopping and sharing activity, believe that consumers deserve to share in payments from e-retailers that are generated by referring shoppers to their products. This requires consumers to understand the benefits well enough so that they
A. | carefully evaluate their needs rather than their wants. |
B. | have a chance to spot product problems. |
C. | change their shopping habits to take advantage of the opportunity. |
D. | are prepared to share credit card and other details with StuffDOT. |
E. | evaluate several different products at the same time. |
|
57. | Which of the following products failed in the marketplace because of perceived limited usefulness for consumers?
D. | 3M Post-it Flag+Highlighter |
|
58. | At the 2014 Clinton Global Initiative, PepsiCo and Coca-Cola announced an agreement to reduce the calorie content of their products by 20 percent before 2025. The new cola from Pepsi-Cola is sweetened with a combination of sugar and stevia leaf extract, resulting in a soft drink with the same flavor of Pepsi but only 60 calories. A potential showstopper for this product is likely to be
A. | a lack of advertising on television. |
B. | in the past, mid-calorie soft drinks such as Pepsi Next (2012) have not been successful. |
C. | a lower profit margin due to the added costs of expensive ingredients. |
D. | cannibalization of the company's existing sodas. |
E. | the use of a combination of sugar and stevia leaf instead. |
|
59. | A want is a ____ that is shaped by a person's knowledge, culture, and personality.
|
60. | Steve wants to eat a Cool Mint Chocolate Clif Bar because, based on his past experience, he knows it will satisfy his hunger
|
61. | A need refers to
A. | a sense of personal inadequacy based upon observations by others around you. |
B. | a sense of urgency, which causes a person to take action. |
C. | a feeling that is shaped by a person's knowledge, culture, or personality. |
D. | a feeling of being deprived of something, but not fully understanding what it may be. |
E. | a situation when a person feels deprived of basic necessities such as food, clothing, and shelter. |
|
62. | All of the following are examples of products or services that satisfy a consumer need except
|
63. | A __________ is a need that is shaped by a person's knowledge, culture, and personality.
|
64. | Which of the following statements best distinguishes between consumer needs and wants?
A. | Needs are far more influential than wants with respect to marketing decision making. |
B. | Wants affect marketing decisions primarily for planned purchases while needs affect marketing decisions primarily for impulse purchases. |
C. | Wants occur when a person feels deprived of basic necessities such as food, clothing, and shelter while needs are determined by a person's knowledge, culture, or personality. |
D. | Needs and wants are psychologically the same, but needs are those that a consumer can be guaranteed to satisfy. |
E. | Needs occur when a person feels deprived of basic necessities such as food, clothing, and shelter while wants are determined by a person's knowledge, culture, or personality. |
|
65. | A want refers to
A. | a sense of personal inadequacy based upon observations by others around you. |
B. | a powerful desire that causes a person to take action. |
C. | a need that is shaped by a person's knowledge, culture, or personality. |
D. | a feeling of being deprived of something, but not fully understanding what it may be. |
E. | a situation when a person feels deprived of basic necessities such as food, clothing, and shelter. |
|
66. | A television advertisement shows several teenagers searching through the refrigerator for something to satisfy their hunger. The refrigerator offers the teenagers many alternatives—celery, bologna, cottage cheese, and some Cool Mint Chocolate Clif Bars. The ad, which shows the teens happily selecting the Clif Bars, appeals to the consumers' __________ for sustenance to satisfy their hunger and attempts to shape their __________ for the advertised product.
|
67. | For a company that offers products such as the Cool Mint Chocolate Clif bar, a market refers to
A. | people with a similar want for a particular product or service. |
B. | people with both the desire and ability to buy a specific offering. |
C. | the central location for all buying and selling of products and services. |
D. | an open space or covered building where vendors convene to sell their offerings. |
E. | the free operation of supply and demand. |
|
68. | People with both the desire and ability to buy a specific offering such the Cool Mint Chocolate Clif bar are referred to as
|
69. | All markets ultimately are composed of
|
70. | Discovering consumer needs leads to
A. | purchases by customers. |
C. | sales and manufacturing department outcomes. |
D. | supplier and distributor outcomes. |
E. | concepts for new products. |
|
71. | Satisfying consumer needs is accomplished by
A. | designing a marketing program. |
B. | conducting marketing research. |
C. | discovering consumer needs. |
D. | developing a distribution strategy. |
E. | identifying target markets. |
|
72. | Product, price, promotion, and place are all components of
A. | the firm's required ongoing activities. |
C. | factors used to examine competitors' products. |
D. | the cluster of benefits that an organization develops to satisfy consumers' needs. |
E. | people with both the desire and the ability to buy a specific offering. |
|
73. | A target market refers to
A. | people who could purchase a product regardless of who ultimately uses it. |
B. | one or more specific groups of potential consumers toward which an organization directs its marketing program. |
C. | former customers who now use competitors' products. |
D. | the cluster of benefits that an organization develops to satisfy consumers' needs. |
E. | people with both the desire and the ability to buy a specific offering. |
|
74. | A target market refers to
A. | customers who have already purchased a firm's product at least once, have been satisfied, and are likely to be repeat purchasers. |
B. | both existing and potential customers who have used a competitor's product, are dissatisfied, and who now seek a different product or service to satisfy their needs. |
C. | a specific group of current consumers toward which an organization directs its advertising. |
D. | one or more specific groups of potential consumers who are seeking a product for which there are no current substitutes. |
E. | one or more specific groups of potential consumers toward which an organization directs its marketing program. |
|
75. | One or more specific groups of potential consumers toward which an organization directs its marketing program is referred to as a
|
76. | Kraft produces Lunchables, a prepackaged meal usually consisting of several crackers, small slices of meat, and small slices of cheese. Other items in the product line contain small bottles of Chiquita Strawberry Banana Fruit smoothie, Capri-Sun juice, or Kool-Aid. The box is bright yellow and the quantity of food contained within it is small. The target market for Kraft Lunchables is most likely
A. | moms with school-age children who pack a simple healthy lunch for them. |
B. | businesspeople looking for a fulfilling breakfast at the office. |
C. | business travelers on the run. |
D. | teenagers who are hungry for an after-school snack. |
E. | baby boomers who are trying to lose weight. |
|
77. | Which of the following people would most likely be the best target market for tickets to the home games of the Indianapolis Colts professional football team?
A. | all people with an interest in professional football |
B. | all people in the Midwest who have an interest in sports |
C. | all men who played on a varsity football team in high school |
D. | all people in the Indianapolis and surrounding areas interested in football |
E. | all people in Indiana who watch football on TV |
|
78. | Which of the following groups would be the least likely target market for a company producing canned food in single-serving sizes?
E. | vending machine owners |
|
79. | TUMI brand briefcases are very expensive, high-end briefcases that are generally sold in specialty luggage shops. Which of the following groups of people would be the most likely target market for TUMI briefcases?
|
80. | A local university offers business courses for a target market of people who currently work and want to take refresher courses for certification in their business field (marketing, accounting, etc.). Which of the following would be the most effective way to communicate with the target market, bearing in mind that communication must be both effective and economical?
A. | Put announcements on campus bulletin boards. |
B. | Distribute promotional materials during classes. |
C. | Advertise on national television. |
D. | Advertise on local hip-hop radio shows. |
E. | Advertise in the local newspaper. |
|
81. | The marketing manager's controllable factors—product, price, promotion, and place—that can be used to solve a marketing problem are referred to as
A. | the marketing concept. |
C. | the marketing program. |
E. | the marketing toolbox. |
|
82. | The marketing mix refers to
A. | the selection of product benefits and attributes that are to be added to or subtracted from a given product to create variations within a product line. |
B. | the specific ratio within a budget that divides resources between advertising, sales promotion, and personal selling. |
C. | the marketing manager's controllable factors—product, price, promotion, and place—that can be used to solve a marketing problem. |
D. | the allocation of resources within a firm toward individual marketing programs. |
E. | the environmental forces—social, economic, technological, competitive, and regulatory—that impact the marketing decisions for a particular product at any given time. |
|
83. | The marketing mix refers to
A. | the multiple sales and advertising strategies that can be used to promote a product. |
B. | the controllable forces—social, economic, technological, competitive, and regulatory—to which a marketing manager must constantly adapt. |
C. | the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online. |
D. | the marketing manager's controllable factors that can be used to solve marketing problems. |
E. | a set of complementary products that when sold together generate more sales than when sold separately. |
|
84. | Which of the following would a marketer use as a synonym for controllable marketing mix factors?
A. | the four Ps of marketing |
D. | marketing management factors |
E. | micromarketing factors |
|
85. | The four Ps of the marketing mix are
A. | priorities, personnel, placement, and profits. |
B. | prediction, production, pricing, and promotion. |
C. | product, price, production, and place. |
D. | product, price, promotion, and place. |
E. | predict, produce, package, and persuade. |
|
86. | All of the following constitute the four Ps of the marketing mix except
|
87. | The four Ps are commonly known as
A. | the environmental or uncontrollable forces. |
B. | the environmental or controllable factors. |
C. | the marketing mix or controllable factors. |
D. | the marketing mix or uncontrollable forces. |
E. | environmental factors, both controllable and uncontrollable. |
|
88. | The marketing mix elements are called __________ because they are the responsibility of the marketing department in an organization.
C. | stakeholder value generators |
D. | target market segments |
|
89. | The element of the marketing mix that describes a good, service, or idea to satisfy consumers' needs is known as
D. | the place or distribution. |
|
90. | The owners of Old School Brand Authentic Antique Foods researched Civil War records to come up with recipes used in the old-fashioned cookies the company produces and markets. This statement deals with which part of the marketing mix?
|
91. | The element of the marketing mix that describes what is exchanged for a product is known as
D. | the place or distribution. |
|
92. | Which element of the marketing mix is demonstrated when Mars, Inc., has a sale on M&M brand candies?
|
93. | The element of the marketing mix demonstrated when an art gallery suggests a $2 donation at the door is
|
94. | To attend a winter concert presented by the community chorus, every person had to donate one unwrapped toy at the concert hall door. This statement is most closely related to the __________ element of the marketing mix.
|
95. | The element of the marketing mix that describes a means of communication between the seller and buyer is known as
D. | the place or distribution. |
|
96. | The owners of Old School Brand Authentic Antique Foods researched Civil War records to come up with recipes for the old-fashioned products they market. Concern about the __________ element of the marketing mix would make them eager to be featured in an upcoming edition of Taste of Home magazine.
|
97. | The __________ element of the marketing mix is demonstrated when a company places an ad on a highway billboard.
|
98. | When a company places an ad on Google, the action is a tactic of the __________ element of the marketing mix.
|
99. | The element of the marketing mix that describes a means of getting the product to the consumer is known as
|
100. | The __________ element of the marketing mix is demonstrated when a newspaper carrier throws a paper on the customer's front porch.
|
101. | The ability to buy a soda from a vending machine demonstrates which element of the marketing mix?
|
102. | The cluster of benefits that an organization promises customers to satisfy their needs is referred to as a
A. | core benefit proposal. |
E. | customer value proposition. |
|
103. | A customer value proposition is
A. | the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price. |
B. | a statement that, before product development begins, identifies (1) a well-defined target market; (2) specific customers' needs, wants, and preferences; and (3) what the product will be and do to satisfy consumers. |
C. | a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation. |
D. | the characteristics of a product that make it superior to competitive substitutes. |
E. | the cluster of benefits that an organization promises customers to satisfy their needs. |
|
104. | Michelin's __________ can be summed up as "providing safety-conscious parents greater security in tires at a premium price."
A. | customer value proposition |
|
105. | The uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces are referred to as
A. | the 5 Fs of marketing. |
D. | a marketing ecosystem. |
|
106. | Which of the following is not an environmental force?
|
107. | Environmental forces refer to
A. | the internal strengths of a company that enable the firm to remain competitive. |
B. | the marketing manager's uncontrollable factors—product, price, promotion, and place—that can be used to solve marketing problems. |
C. | the unpredictable or uncontrollable availability of natural resources that can enhance or restrain a company's growth. |
D. | the marketing manager's uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces. |
E. | the marketing manager's controllable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces. |
|
108. | The five major environmental forces in a marketing decision are
A. | climate change, natural resources, pollution, natural disasters, and global conflict (war). |
B. | social, technological, economic, competitive, and regulatory. |
C. | corporate ownership, internal management, supplier partnerships, strategic alliances, and customer relationships. |
D. | product, price, promotion, place, and people. |
E. | ethics, sustainability, cultural awareness, diversity, and values. |
|
109. | Which of the following statements about environmental forces is most accurate?
A. | Environmental forces are almost always controllable if the marketing department correctly scans them. |
B. | An organization that incorporates the marketing concept can exert just as much influence on environmental forces as they can exert on that organization. |
C. | Environmental forces consistently result in negative outcomes for an organization. |
D. | Some environmental forces can actually enhance a firm's marketing opportunities. |
E. | Environmental forces can almost always be predicted. |
|
110. | Which of the following statements describes an environmental force?
A. | Several states have legislation that requires people transporting children to use age- and height-appropriate car seats. |
B. | Tupperware has more than 200,000 independent dealers who market its entire product line. |
C. | A car battery comes with a lifetime guarantee. |
D. | An automobile dealer offers a $500 rebate during the month of July. |
E. | A major bottler offers a 10-cent refund on returnable bottles. |
|
111. | The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and before- and after-sale service at a specific price is called
D. | value-based marketing. |
E. | a customer value proposition. |
|
112. | Customer value refers to
A. | the need of a customer to receive the highest quality product at the lowest possible price. |
B. | the least expensive product that will provide it with most of the basic benefits. |
C. | a statement that, before product development begins, identifies (1) a well-defined target market; (2) specific customers' needs, wants, and preferences; and (3) what the product will be and do to satisfy consumers. |
D. | the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price. |
E. | the cluster of benefits that an organization promises customers to satisfy their needs. |
|
113. | Which of the following statements about customer value is most accurate?
A. | Target customers assess customer value in terms of the combination of benefits (quality, convenience, etc.), regardless of the price. |
B. | Loyal customers are less profitable to firms in the long run since they expect lower prices over time in order to remain loyal. |
C. | Research suggests that firms can be most successful by being all things to all consumers. |
D. | It is impossible to place a dollar value on a loyal, satisfied customer. |
E. | To create value for targeted buyers, firms must build long-term relationships with them. |
|
114. | According to the textbook, Target has been successful by offering consumers the best
|
115. | According to the textbook, Starbucks provides its customers with the best
|
116. | If a bank is known for delivering customer value through its focus on taking care of customers, it is most likely focusing on providing its customers with the best
|
117. | Those who have flown on Singapore Air have experienced firsthand the great food that is served during the flight, the friendliness of the flight attendants, and the comfortable seating. Singapore Air creates customer value by providing its customers with
A. | the best airport experience. |
B. | the most convenient flight schedules. |
C. | the best price for the distance traveled. |
D. | the best in-flight service. |
E. | the greatest sense of personal safety. |
|
118. | Relationship marketing refers to
A. | the selection and the assignment of a firm's personnel for a specific product or product line to a group of current or prospective customers. |
B. | the belief that it is easier and less expensive to find new customers than to retain old ones. |
C. | the linking of the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits. |
D. | the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace. |
E. | exclusive legally binding contractual agreements between retailers and customers in order to create enhanced value for each party. |
|
119. | The linking of the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit is referred to as
A. | relationship marketing. |
D. | customer relationship management. |
|
120. | Which of the following statements about relationship marketing is most accurate?
A. | Relationship marketing has a short-term focus: increasing profits for the firm. |
B. | Relationship marketing begins before and ends after the sale. |
C. | Relationship marketing occurs when there is a personal, ongoing relationship between an organization and its customers. |
D. | Very few companies today are engaged in relationship marketing. |
E. | The Internet has allowed marketers to establish more personal relationships with customers. |
|
121. | In the performing arts world, box office technology has remained virtually unchanged since the 1980s. Tessitura is trying to change that by tracking every patron transaction, including ticket purchases, fund-raising, volunteering, and gift shop purchases, in one database. The information can help symphonies, operas, and theaters develop customer profiles to tailor sales messages to specific individuals. Tessitura will allow arts groups to engage in
B. | relationship marketing. |
|
122. | Publix Supermarkets and The Little Clinic signed an exclusive agreement, placing small walk-in health clinics inside selected stores. Publix customers can have simple medical needs addressed in a convenient and familiar environment seven days a week and pick up their prescriptions from the pharmacy without leaving the store. This is an example of
E. | relationship marketing. |
|
123. | A business traveler joined the Starwood Preferred Guest Program in order to earn points each time he stayed overnight in a Westin or Sheraton hotel. Once he has accumulated enough points, he can trade his points in for a free night's stay. As a member of this program, the traveler receives periodic updates on new hotels and learns of ways to earn additional points. The marketing term that best describes this scenario is
A. | relationship marketing. |
B. | customer satisfaction promotion. |
C. | customer relationship management. |
E. | supplier-consumer partnership. |
|
124. | A marketing program refers to
A. | a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers. |
B. | the selection of product benefits and attributes that are added to or subtracted from a given product to create variations within a product line. |
C. | the marketing manager's controllable factors—product, price, promotion, and place—that can be used to solve a marketing problem. |
D. | the specific ratio within a marketing budget that divides resources between advertising, promotions, and personal selling. |
E. | the allocation of resources within a firm toward individual marketing mix elements. |
|
125. | A __________ is a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.
E. | customer relationship management |
|
126. | After an assessment of needs, a marketing manager must translate ideas from consumers into concepts for products that a firm may develop. The concepts must then be converted into a tangible
B. | macromarketing agenda. |
C. | micromarketing agenda. |
|
127. | Market segments refer to
A. | the relatively heterogeneous groups of prospective buyers that result from the market segmentation process. |
B. | all buyers of a product or service who have previously purchased a particular firm's products or services and who intend to repeat that purchase sometime in the future. |
C. | the smallest number of buyers that have similar needs but do not react similarly in a buying situation. |
D. | the relatively homogenous groups of prospective buyers that have common needs and will respond similarly to a marketing action. |
E. | all potential buyers of a product or service who intend to purchase a firm's products or services but who have not yet done so. |
|
128. | The relatively homogenous groups of prospective buyers that have common needs and will respond similarly to a marketing action is referred to as
|
129. | The phrase "relatively homogeneous collections of prospective buyers" is most descriptive of
B. | organizational buyers. |
|
130. | In marketing, each __________ consists of people who are relatively similar to each other in terms of their consumption behavior.
C. | organizational buyer group |
D. | ultimate consumer group |
E. | qualified prospect group |
|
131. | An inventor for 3M, David Windorski, and a team of four college students, questioned dozens of students about how they study. They told the research team
A. | that Scotch tape had outgrown its usefulness to students. |
B. | to make new products that have higher quality. |
C. | that the average backpack was already too heavy. |
D. | that it would be reasonable to put Post-it Flags together with a highlighter. |
E. | to determine the ratio of 3M products to study aid products of other competitors. |
|
132. | The purpose of the introduction of 3M Post-it Flag Highlighters was to
A. | stay ahead of trends and focus its marketing program on only one segment. |
B. | stay ahead of trends and focus its marketing program on two mutually inclusive segments. |
C. | increase production economies of scale by reducing manufacturing and marketing costs for Post-it Flags and Post-it Notes. |
D. | preempt a competitive move by Sanford's Sharpie to introduce a similar product. |
E. | help college students with their studying. |
|
133. | Which of the following statements about 3M's marketing program for Post-it Flag Highlighters is most accurate?
A. | In his first attempt, David Windorski, a 3M inventor, designed the Post-it Flag Highlighter in exactly the right way to appeal to its target market. |
B. | Paralegals were initially the intended target market for the Post-it Flag Highlighter. |
C. | David Windorski, a 3M inventor, also developed the Post-it Flag Pen for the office worker segment. |
D. | The Post-it Flag Highlighter was not successful and was deleted from the Post-it Flag product line. |
E. | In development of the Post-it Flag Highlighter, David Windorski examined similar products of 3M's major competitors and simply made changes that would provide the "wow" factor. |
|
134. | The pricing strategy for 3M's Post-it Flag Highlighters was to
A. | match its principal competitors' highlighters' prices. |
B. | charge a price that would provide genuine value to the target customer segment. |
C. | set an initially low price with the intent of bringing down the price even further later if sales were less than anticipated. |
D. | place the product in discount office supply retailers to make it easier to purchase. |
E. | use the same pricing strategy as its 3M's Post-it Flag and Post-it Note offerings. |
|
135. | The 3M Post-it Flag Highlighter and Pen marketing programs were designed for what primary objective?
A. | the initial launch of two new 3M products |
B. | specific promotions to be used for long-range strategies |
C. | segmenting the market into 12 specific target market segments |
D. | marketing 3M products to foreign markets |
E. | positioning the products relative to major competitors |
|
136. | The place strategy in 3M's marketing program made it convenient for __________ to buy Post-it Flag Highlighters and Post-it Flag Pens.
A. | external salespeople only |
D. | college students and office workers |
|
137. | Based on the marketing program 3M developed for its Post-it Flag Highlighters and Post-it Flag Pens, one can conclude that
A. | the market segments for Post-it Flag Highlighters and Post-it Flag Pens are identical. |
B. | the market segments for Post-it Flag Highlighters and Post-it Flag Pens are not realistic. |
C. | the Post-it Flag Highlighters and Post-it Flag Pens are priced unreasonably for the target markets. |
D. | the prices for 3M's Post-it Flag Highlighters and Post-it Flag Pens are set to maximize 3M's profits, not its distributors' profits. |
E. | the promotion strategy is designed to increase awareness among potential users. |
|
138. | All of the following statements about the overall marketing program for 3M's Post-it Flag Highlighters are true except
A. | David Windorski, a 3M inventor, designed the second generation of Post-it Flag Highlighters and Pens without the rotating cover to make it easier to insert replacement flags. |
B. | students were initially the intended target market for the Post-it Flag Highlighter. |
C. | in his first attempt, David Windorski, a 3M inventor, designed the Post-it Flag Highlighter in exactly the right way to appeal to its target market. |
D. | David Windorski, the designer of the Post-it Flag Highlighter, appeared on "The Oprah Winfrey Show" so she could thank him in person for "his most incredible invention." |
E. | 3M recently introduced additions to the Post-it Flag+ line: a Post-it Flag+ Gel Pen and a Post-it Flag+ Permanent Marker. |
|
139. | In U.S. business history, the marketing concept became a motivating force during
A. | the early years of the Civil War. |
E. | the first few years of the 21st century. |
|
140. | The __________ concept means that an organization strives to satisfy consumer needs while achieving its goals.
|
141. | Which of the following statements about the marketing concept is most accurate?
A. | The marketing concept can trace its roots to early Greek culture. |
B. | In using the marketing concept, companies tried to satisfy the needs of consumers while also achieving their goals. |
C. | In using the marketing concept, companies focus on sales and advertising. |
D. | The marketing concept is most effective when production is limited and the product will sell itself. |
E. | All U.S. firms are now operating with a marketing concept philosophy. |
|
142. | The idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization's goals reflects the
C. | principle of customer relationship management. |
D. | societal marketing concept. |
|
143. | The marketing concept refers to
A. | the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large. |
B. | the belief that an organization should continuously collect information about customers' needs, share this information across departments, and use it to create customer value. |
C. | the view that organizations should satisfy the needs of consumers in a way that provides for society's well-being. |
D. | the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace. |
E. | the idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization's goals. |
|
144. | Which of the following terms best describes the marketing concept?
|
145. | In 1952, General Electric's annual report stated, "The concept introduces…marketing…at the beginning rather than the end of the production cycle and integrates marketing into each phase of the business." This is a brief statement of what has come to be known as the
A. | sustainability perspective. |
E. | customer relationship management concept. |
|
146. | Firms such as General Electric, Marriott, and Facebook have achieved great success by putting a huge effort into implementing the marketing concept, giving their firms a
A. | production orientation. |
C. | customer relationship orientation. |
|
147. | Many companies subscribe to being "green" because they feel that consumers value this. Yet, in many of these same firms, office computers are left on 24 hours a day and office paper is not recycled. This example indicates it is not always easy for firms to act in accordance with the
B. | customer relationship management concept. |
D. | social entrepreneurship. |
|
148. | A market orientation refers to
A. | the orientation of an organization that focuses its efforts on continuously collecting information about the environment, keeping abreast of the actions of its competitors, and using this information to create product innovation. |
B. | the belief that the buying environment for any given industry is volatile and therefore all marketing decisions should be short-term and easily adaptable to change. |
C. | the orientation of an organization that focuses its efforts on continuously collecting information about customers' needs, sharing this information across departments, and using it to create customer value. |
D. | the belief that the buying environment for any given industry is relatively stable and therefore all marketing decisions should be long-term to prevent loss of focus. |
E. | the point of view that holds that there is always someone who needs or can benefit from your product, and if one segment fails, there is an even better one somewhere in the "market." |
|
149. | An organization with a market orientation
A. | focuses its efforts on continuously collecting information about the environment, keeping abreast of competitors' actions, and using this information to create product innovation. |
B. | identifies prospective buyers, understands them intimately, and develops favorable long-term perceptions of the organization and its offerings so that they will choose it in the marketplace. |
C. | strives to satisfy the needs of consumers while also trying to achieve its goals. |
D. | satisfies the needs of consumers in a way that provides for society's well-being. |
E. | focuses its efforts on continuously collecting information about customers' needs, sharing this information across departments, and using it to create customer value. |
|
150. | An organization that focuses its efforts on continuously collecting information about customers' needs, sharing this information across departments, and using it to create customer value is said to have a(n)
B. | macroeconomic orientation. |
E. | societal marketing orientation. |
|
151. | Customer relationship management refers to
A. | the view that organizations should satisfy the needs of consumers in a way that provides for society's well-being. |
B. | the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so buyers will choose them in the marketplace. |
C. | the idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization's goals. |
D. | the links an organization has to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit. |
E. | the cluster of benefits that an organization promises customers to satisfy their needs. |
|
152. | The United Way of Greater Toronto (UWGT), like many charities, was sitting on a gold mine of donor data. Unfortunately, UWGT was not certain how to use that information to its greatest advantage. UWGT could blanket past donors with generic mailings, but it could not offer donors information that would convince them to donate to UWGT over other charities. Which of the following tools would be most useful for the nonprofit organization to use?
A. | a flexible marketing system |
C. | a customer relationship management plan |
D. | a competitive intelligence framework |
E. | a customer-oriented marketing program |
|
153. | The internal response that customers have to all aspects of an organization and its offerings is referred to as
B. | relationship marketing. |
C. | internal customer audit. |
E. | customer relationship management. |
|
154. | Customer experience refers to
A. | the practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time. |
B. | the links an organization has to its customers for their mutual long-term benefits. |
C. | the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace. |
D. | the internal response that customers have to all aspects of an organization and its offerings. |
E. | the activities in which a firm participates to create a positive buying experience for customers. |
|
155. | Recently, Fortune magazine named Trader Joe's "America's hottest retailer" for its outstanding __________, including personal attention from employees in the store.
A. | customer value proposition |
B. | relationship marketing |
E. | customer relationship management |
|
156. | All of the following are aspects of Trader Joe's customer experience except
A. | it has a large and expensive research and development facility. |
B. | it offers unusual food products not available from other retailers. |
C. | it stocks yuppie-friendly staples on its shelves. |
D. | it sets low prices by offering its own brands, not national ones. |
E. | it provides rare employee "engagement" to help customers. |
|
157. | Today, the standards of marketing practice have shifted from the interests of producers to the interests of
A. | nonprofit organizations. |
|
158. | Social responsibility is
A. | the view that organizations should satisfy the needs of consumers in a way that provides for society's well-being. |
B. | the fundamental, passionate, and enduring principles of an organization that guide its conduct over time. |
C. | the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization's goals. |
D. | the idea that individuals and organizations are accountable to a larger society. |
E. | the recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth. |
|
159. | The idea that individuals and organizations are accountable to a larger society is known as
A. | the societal marketing concept. |
B. | social responsibility. |
D. | sustainable development. |
|
160. | You change the oil in your car yourself and dump the used oil down the sewer drain that ultimately flows into the local river. Oil manufacturers know this is not an isolated occurrence, so should they be concerned?
A. | No, you paid for the oil and you can dispose of it as you like. |
B. | No, the oil company will someday add a premium to the price to pay for oil cleanup in the environment. |
C. | Yes, this is the type of situation that can get "big oil" a lot of bad press. |
D. | Yes, this is an issue of social responsibility because the polluted water affects others in the society at large. |
E. | No, this is an issue solely between you and your neighbors. |
|
161. | Which of the following most directly explains why pharmaceutical giant Pfizer offered low-income senior citizens many of its most widely used prescriptions for $15 each per month?
A. | the profit motive since aging baby boomers are a large, profitable market |
B. | the social responsibility concept |
C. | the necessity of matching competitors' actions |
D. | new regulatory Medicare mandates as a result of the Affordable Care Act |
E. | the mandate by its industry's code of ethics |
|
162. | The societal marketing concept
A. | is the moral principles and values that govern the actions and decisions of an organization. |
B. | is the idea that organizations are part of a larger society and are accountable to that society for their actions. |
C. | actively tries to understand customer needs and satisfy them while satisfying the firm's goals. |
D. | involves conducting business in a way that protects the natural environment while making economic progress. |
E. | is the view that an organization should satisfy the needs of consumers in a way that provides for society's well-being. |
|
163. | The view that holds an organization should satisfy the needs of consumers in a way that also provides for society's well-being is known as
A. | the societal marketing concept. |
B. | the marketing concept. |
D. | social responsibility. |
|
164. | Innovators at 3M developed Scotchbrite Greener Clean scrub sponges from agave leaves. Customers appreciate this superior product (they don't rust or scratch) and like the fact that their purchase is environmentally responsible, making this an example of
A. | the societal marketing concept. |
B. | the marketing concept. |
|
165. | What kinds of organizations should engage in marketing?
A. | only those that can afford to advertise |
B. | only very large and established for-profit organizations |
C. | only Fortune 5,000 companies |
D. | every organization regardless of the kind |
E. | only if the organization has a profit motivation |
|
166. | Which of the following organizations engage in marketing?
B. | the San Francisco Opera |
D. | the president of the United States |
E. | Every organization or individual can engage in marketing to some extent. |
|
167. | Which of the following statements best describes a good?
A. | Goods are physical objects. |
B. | Goods are the only currency that can be used in an exchange. |
C. | Goods are intangible concepts and thoughts about ideas or causes. |
D. | Goods are the benefits organizations receive for selling products and services. |
E. | Goods can be either tangible or intangible. |
|
168. | Which of the following statements best describes a service?
A. | Services are physical objects. |
B. | Services are intangible items. |
C. | Services are thoughts about concepts, actions, or causes. |
D. | Services are the benefits organizations receive in exchange for selling products. |
E. | Services comprise the subset of tangible features of products. |
|
169. | Organizations such as American Airlines, U.S. Bank, and the Red Cross provide customers with products that are typically called
|
170. | A live theater performance cannot be touched like a physical object, but is still considered a product. To a marketer, this is an example of
|
171. | In marketing, thoughts about concepts, actions, or causes are referred to as
|
172. | A product
A. | consists of the benefits or customer value received by its sellers. |
B. | is the cluster of benefits that an organization promises customers to satisfy their needs. |
C. | is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfy consumers' needs and is received in exchange for money or something else of value. |
D. | consists of items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort. |
E. | is the set of intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. |
|
173. | A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value is known as
|
174. | Which answer reflects (in this order) a good, a service, and an idea that can be marketed?
A. | a candy bar, a wastepaper basket, and a vending machine |
B. | a CD, a concert, and a souvenir T-shirt |
C. | a political candidate, democracy, and freedom |
D. | an iPod, an iPhone, and an iPad |
E. | a toothbrush, laser teeth whitening, and dental hygiene |
|
175. | The Hermitage, a famous Russian art museum, was suffering financial difficulties as the result of lost funding and a decline in tourists. The decrease in visitors was blamed on a lack of awareness of the treasures contained in the museum. The Hermitage's director used a strategic alliance with IBM to create a website where people view some of the wonders of the Hermitage in an online virtual tour. The hope is that this sampling of paintings, sculptures, artifacts, etc., will encourage visitors to make a trip to the Hermitage and spend enough money there to cover operational costs. The Hermitage is a(n) __________ that uses online virtual tours to market itself worldwide.
|
176. | All of the following are examples of ideas that can be marketed except
A. | state governments in Arizona and Florida marketing the notion of taking a warm, sunny winter vacation in their states. |
B. | Apple using a TV ad to explain the features of an iPad mini (camera, screen resolution, user interface, etc.). |
C. | the Nature Conservancy marketing the cause of protecting the environment. |
D. | conservative politicians who attempt to persuade voters of the need to slash government spending to reduce the $17 trillion debt. |
E. | charities like the Red Cross marketing the idea that it's worthwhile for you to donate your time or money to their causes to benefit society. |
|
177. | Ultimate consumers are
A. | the people who use the products and services purchased for a household. |
B. | people who have already purchased a firm's product at least once, have been satisfied, and are likely to make repeat purchases. |
C. | people or organizations that have used a competitor's product and who have been dissatisfied, and who are still seeking a product or service to satisfy their needs. |
D. | those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale. |
E. | one or more specific groups of potential customers toward whom an organization directs its marketing program. |
|
178. | The people who use the products and services purchased for a household are called
A. | organizational buyers. |
|
179. | What is the marketing term for people, whether they are 80 years or 8 months old, who use products and services purchased for a household?
|
180. | Time Inc. has published a new magazine, All You, which is distributed only in Walmart stores. Who is the ultimate consumer for this magazine?
A. | the person who buys the magazine to read at home |
B. | the person who stocks the magazine rack at Walmart |
C. | the person who browses the magazine in the store but does not buy it |
D. | the salesperson for Time Inc. who sold the magazine to Walmart |
E. | All people, from the writer, to the seller, to the reader at home, are the ultimate consumers. |
|
181. | Which of the following is an example of an ultimate consumer?
A. | a newspaper reporter who receives a plane ticket to Washington, D.C., to cover the presidential inauguration |
B. | a schoolteacher who bought a ticket to the Summer Olympics opening ceremonies |
C. | an office receptionist who renews the magazines that are found in the office waiting room |
D. | a retailer who buys poster board to make signs for an upcoming store sale |
E. | a landscaping firm employee who buys a new wheelbarrow to use to haul mulch |
|
182. | Entities such as manufacturers, retailers, and government agencies that buy goods and services for their own use or for resale are referred to as
C. | organizational buyers. |
|
183. | Organizational buyers are described as
A. | only companies that purchase raw materials and natural resources for manufacturing. |
B. | employees who purchase household items for their personal use. |
C. | any individual or group making a purchase worth over $100,000. |
D. | manufacturers, retailers, or government agencies that buy products for their own use or for resale. |
E. | any organization that uses products purchased or meant for a household. |
|
184. | Which of the following is the best example of an organizational buyer?
A. | a mother buying milk for her young son |
B. | a store owner buying hand-painted slate signs to sell in her store |
C. | a computer programmer buying the latest game for his Xbox |
D. | a botanist buying a rose bush for his home garden |
E. | a parent buying a softball glove for a daughter |
|
185. | Effective marketing benefits society because it
A. | reduces competition, making the playing field more even. |
B. | improves the quality of products and services regardless of the cost. |
C. | allows companies to charge whatever price they want, regardless of product quality. |
D. | makes countries more competitive in world markets while simultaneously reducing competition in their home markets. |
E. | enhances competition, which improves the quality of products and services and lowers prices. |
|
186. | Utility refers to
A. | the number of alternative uses or benefits that can be provided by a single product or service. |
B. | the adaptability of a marketing program to adjust to changes in the marketing environment. |
C. | the benefits or customer value received by users of the product. |
D. | the fixed costs associated with the production of a single unit of a product within a product line. |
E. | the variable costs associated with the production of a single unit of a product within a product line. |
|
187. | The benefits or customer value received by users of a product is called
E. | customer lifetime value. |
|
188. | The four utilities marketing creates are
A. | product, price, promotion, and place. |
B. | form, function, value, and people. |
C. | monopoly, monopolistic competition, pure competition, and oligopoly. |
D. | form, place, time, and possession. |
E. | natural gas, fossil fuel, electricity, and water. |
|
189. | The value to consumers that comes from the production or alteration of a product or service constitutes __________ utility.
|
190. | Which of the following is an example of form utility?
A. | an iPhone with a "multi-touch" user interface for easy navigation |
B. | stamp vending machines that are located in drugstores |
C. | a service station that has a 24-hour ice machine available for use when the station is closed |
D. | a mobile phone company that offers six-month financing, same as cash |
E. | a gourmet candy store that offers a home delivery service |
|
191. | FreshCase packaging is the first-ever vacuum package for red meat that maintains the meat's appetizing color, reducing both food and plastic waste. This is an example of creating __________ utility in the case-ready meat category.
|
192. | The process of taking wool off sheep and using it to make soft sweaters shows how manufacturing can create __________ utility.
|
193. | The process of turning corn into ethanol shows how BioFuel Energy, a Minnesota ethanol producer, can create __________ utility.
|
194. | The value to consumers that comes from having the offering available where consumers need it constitutes __________ utility.
|
195. | Which of the following statements is an example of place utility?
A. | airlines that allow you to print your own boarding pass at home |
B. | a service station that adds a diesel fuel pump to its three unleaded gasoline pumps |
C. | a mobile phone company that offers six-month financing, same as cash |
D. | cold cut packages that can be zipped close for reuse |
E. | an iPhone with a "multi-touch" user interface for easy navigation |
|
196. | The value to consumers that comes from having the offering available when they need it constitutes __________ utility.
|
197. | What utility does UPS provide when it delivers new DVD releases to Best Buy stores before the Tuesday national release day?
|
198. | Dick's Sporting Goods carries baseballs year-round. The same is true for footballs and tennis equipment. With this strategy, Dick's Sporting Goods offers __________ utility for these products.
|
199. | Which of the following is an example of time utility?
A. | an iPhone with a "multi-touch" user interface for easy navigation |
B. | Goodwill's 24-hour drop-off box for clothing donations |
C. | a dry cleaner located inside a supermarket |
D. | a mobile phone company that offers six-month financing, same as cash |
E. | a new herbal supplement that offers a 30-day free trial |
|
200. | Redbox places vending machines at local convenience and grocery stores that allow customers to rent and return popular DVDs 24 hours a day. This creates both __________ and __________ utilities.
|
201. | The value to consumers that comes from making an item easy to purchase through the provision of credit cards and financial arrangements constitutes __________ utility.
|
202. | Which of the following is an example of possession utility?
A. | an iPhone with a large selection of new apps |
B. | the local dairy that offers to deliver bottles of milk to a customer's doorstep |
C. | disposable diapers that come equipped with resealable tabs |
D. | a gourmet food store that carries a line of ready-made salads |
E. | a mobile phone company that offers six-month financing, same as cash |
|
203. | Robert was running low on cash and could not buy his textbook by the first day of class if the bookstore did not accept his credit card. Luckily, the bookstore accepted his VISA card, so the bookstore created __________ utility for Robert.
|
204. | The founder of Chobani, who won the 2013 Ernst & Young World Entrepreneur of the Year award, is
B. | "Trader" Joe Demapolis. |
|
205. | The difference between "Greek" yogurt and "American" yogurt is that the latter
B. | has a thin consistency. |
C. | is not sweet enough for health-conscience palettes. |
D. | is only sold in health or natural food stores. |
E. | has high protein content. |
|
206. | All of the following are points of difference for Chobani yogurt except
A. | its shorter, wider cup that is more visible on retailers' shelves. |
B. | it is preservative-free. |
C. | it is a bit lower in protein than regular yogurt. |
D. | it uses a proprietary animal-based thickener to make its Greek-style yogurts. |
E. | it uses a straining process that removes excess liquid whey. |
|
207. | All of the following are current or prospective distribution channels for Chobani yogurt except
|
208. | Chobani used all of the following tactics to promote its Greek yogurt except
A. | sponsored the Food Network's "Rachael vs. Guy: Kids Kick-Off" TV show with its Chobani Champions Tubes. |
B. | created a website to provide consumers with recipes that use Chobani yogurt. |
C. | sponsored the 2012 and 2014 U.S. Olympic Teams. |
D. | used social networks Facebook, Twitter, Pinterest, and Instagram. |
E. | relied on word of mouth in its early years. |
|
Short Answer Questions
209. | Describe the marketing mix actions mentioned in the textbook that Chobani has taken since its founding in 2005.
|
210. | Why are you, as a student, already somewhat of a marketing expert before taking this course? Provide a specific example from your own personal experience and relate it to something you just "formally" learned about marketing.
|
211. | What is the abridged American Marketing Association definition of marketing according to the textbook? How does this differ from your previous notion of marketing before beginning this course?
|
212. | What are the two key objectives of marketing? Define "exchange" and explain how it supports these objectives.
|
213. | Some people may assume that for a marketer, the only thing of value for which he or she would "exchange" would be monetary (check, credit/debit, currency, and/or coin transactions). But what else can be exchanged? Provide an example of a nonmonetary transaction that still fits the criteria of exchange.
|
214. | In addition to consumers, what other people, groups, and environmental forces interact to influence an organization's marketing activities?
|
215. | What four factors are required for marketing to occur?
|
216. | In China, many people are removing their money from the state banks and lending it out themselves. The interest rate earned in a state bank account is about one-half the rate of inflation. On the other hand, lending money to friends, relatives, and even unrelated entrepreneurs can often earn the investor a rate at least double the inflation rate. The gray market, an underground network of investors and private businesses, moves the cash from lenders to businesses. Did marketing occur here? Explain your answer.
|
217. | Add your own personal experience and creativity to what you have learned about marketing. Formulate a plan to assess the needs of either (1) students who have too many textbooks to carry to and from class or (2) executives who are too busy to keep up with the latest information in their field.
|
218. | Define needs and wants. Can marketing shape a person's wants? Explain your answer.
|
219. | What are the three components of a person's ability to buy an offering?
|
220. | Explain the difference between a market and a target market. Provide a specific example of each.
|
221. | Describe two different target markets for two different products or services you, your friends, or your family have recently purchased or used.
|
222. | An inventor designs a scissors that has interchangeable blades that allow the user to switch from straight cuts to decorative cuts. Identify two possible target markets and explain your answer.
|
223. | Marketing managers use a combination of four tools in order to develop a complete marketing program to reach consumers. Briefly define these four tools.
|
224. | Imagine you have the sole marketing rights to a new herbal shampoo that stops hair loss and actually causes new hair growth. You plan to sell your product on an Internet website, which you will advertise on late-night television. You are also hoping to obtain free publicity to place stories in men's fashion magazines. You are planning to sell online a 15-ounce bottle for $24.99 plus $7.99 shipping and handling. Using the information provided, identify each element of your marketing mix.
|
225. | List the five environmental forces in a marketing decision that generally are outside the control of marketing managers.
|
226. | Why do some marketers feel that environmental forces are not entirely outside their influence?
|
227. | Do college students have a choice in which classes they take to earn a degree? Use what you have learned about the controllable and uncontrollable aspects of marketing in terms of how they might relate to course selection decision making. Incorporate marketing terms in your response.
|
228. | The Apple iPhone is rated by Consumer Reports as being one of the best smartphones in the industry. Define customer value. In what ways do you think the Apple iPhone provides value for its customers?
|
229. | Assume you are a salesperson for a direct marketing firm that does in-home jewelry parties. If most of your hosts or hostesses hold only one party a year, what strategies could you use to build strong customer relationships? If you are creating your own business for this example, make sure to describe your product(s) in your introductory sentence.
|
230. | During October, kiosk or "pop-up" stores appear in many malls for the holiday season. Typically, these kiosks sell gift boxes of cheese, jewelry, and other items people think are appropriate seasonal gifts. In January, these retailers vanish. Is it possible for such a retailer to use relationship marketing? Explain your answer.
|
231. | Twitter is a website that offers a social networking service, enabling its users to send and read other users' messages or conversations called tweets, which are text-based posts of up to 140 characters displayed on the user's profile page. Connected to each "tweet" is a rich details pane that provides additional information, deeper context, and embedded media. Companies are just beginning to use Twitter as a tool in their relationship marketing programs. In what ways could Twitter be used to benefit both the customer and the organization?
|
232. | Explain the marketing program that 3M used to reach the student target market for the Post-it Flag Highlighter and the rationale used for each element of the marketing mix.
|
233. | Explain the marketing program 3M used to reach the office worker segment with its Post-it Flag Pen.
|
234. | Define the marketing concept.
|
235. | It is said that goods, services, and ideas are marketed. Define goods, services, and ideas and give at least one example of each.
|
236. | What are the primary differences between an ultimate consumer and an organizational buyer? Select one product and explain the differences in either its use or purchase, depending on whether it was purchased by an ultimate consumer or an organizational buyer.
|
237. | In our free enterprise society, which three specific groups benefit from effective marketing?
|
238. | Explain what is meant by the concept of marketing utility. Identify and describe the four utilities created by marketing.
|
239. | At the BMW website, BMW.com, you can design your own BMW with the exact features you desire. If you choose to use this method to purchase a car, what type of utility(ies) has(have) been created?
|
240. | Explain Chobani's product strategy that makes Chobani yogurt different from its principal competitors.
|
241. | Describe Chobani's distribution (place) strategy.
|