Test Bank 11th Edition Customer-Driven Marketing Chapter.11

1.

Creating an innovative product that meets many users' needs is sufficient in today's volatile global marketplace.

 
 
True    False

2.

The customer value of a product refers to anything a buyer must give up to obtain the benefits the product provides.

 
 
True    False

3.

Trying to determine customers' true needs is difficult because no one fully understands what motivates people to buy things.

 
 
True    False

4.

Companies segment markets on the basis of demographic, geographic, psychographic, and behavioristic variables. 
 
True    False

5.

Buying behavior includes the behavior of both consumers purchasing products for personal or household use as well as organizations buying products for business use.

 
 
True    False

6.

It is necessary for nonprofits, government institutions, and even people to market themselves to spread awareness and achieve desired outcomes. 
 
True    False

7.

_____ is best described as a group of activities designed to expedite transactions by creating, distributing, pricing, and promoting goods, services, and ideas. 
 

8.

Marketing activities best create value by 
 

9.

For the products launched by companies to succeed, it is important that 
 

10.

Nadine is the marketing manager for a company that produces innovative educational technology products. Her colleagues have created a new set of simulations that allow philosophy students to respond to ethical dilemmas. All of the following are things Nadine and her colleagues must do to ensure that this new product succeeds in the market EXCEPT 
 

11.

_____ has the important function of providing revenue to sustain a firm. 
 

12.

Dennis goes to his favorite local bakery and hands the cashier $5 for a loaf of bread. Which of the following has just taken place? 
 

13.

Claudia and Jason are celebrating their 1-year wedding anniversary, and they have just gone for a couples massage at a spa. Jason hands his credit card to the cashier at the spa to pay for their massages. This is an example of a(n) 
 

14.

At the heart of all business is the_____, the act of giving up one thing in return for something else. 
 

15.

Which of the following is a condition required for an exchange to take place? 
 

16.

Jasmine went to a new salon in the area to get her hair cut and colored. However, the stylist cut her hair shorter than she wanted and wouldn't use the bold red color Jasmine wanted. As a result, Jasmine did not feel good about her purchase. What does this most likely mean for the future of this exchange relationship? 
 

17.

Daniel and Mark both collect baseball cards. Daniel has a valuable and rare card that Mark has been wanting for a long time. What must Mark do to convince Daniel to part with this card? 
 

18.

Social Smoothies is a small, local company that, in addition to making delicious smoothies, offers its customers live music, open microphone nights, free Internet access, and comfortable seating so they can enjoy their smoothies with friends or while working. In the case of this company, which of the following statements is most likely true? 
 

19.

Ryan has produced 1,000 jars of pickled oranges, using the oranges in his orchard. By concentrating his efforts on advertising and publicity, he is trying to encourage people to notice and buy his product. Through his promotional activities, Ryan is primarily engaging in the marketing function of 

20.

Burgerama Inc., a popular fast-food chain, is famous for its fries and hash browns. It is one of the few fast-food chains to exclusively use the potatoes from its own farms. However, its potatoes can be harvested for only three months of the year. Which of the following marketing functions can Burgerama employ to achieve time utility and satisfy year-round demand for its exclusive fries and hash browns? 
 

21.

Randall is a packer in the frozen foods section of a grocery store. He labels meat steaks with little or no fat as "AA" and meat steaks with more fat as "AB." When he does this, he is primarily engaging in the marketing function of 

22.

All of the following are activities marketing performs to accomplish objectives and generate exchanges EXCEPT 
 

23.

All of the following are examples of the activities marketing performs to accomplish objectives and generate exchanges EXCEPT 
 

24.

_____ is the chance of loss associated with marketing decisions. 
 

25.

The exchange process is expedited through 
 

26.

Amanda owns a rustic furniture store in New Hampshire. When customers buy her unique furniture pieces, she arranges a time for her employees to deliver the furniture to their homes using her delivery truck. This is an example of 
 

27.

Warehouses hold some products for lengthy periods in order to 
 

28.

_____ refers to standardizing products by dividing them into subgroups and displaying and labeling them so that consumers clearly understand their nature and quality. 
 

29.

Carl is the marketing manager of a large department store that sells a variety of household appliances, including refrigerators, washing machines and dryers, and stoves. What might Carl do to help customers finance these large, expensive items? 
 

30.

Through _____, marketers ascertain the need for new goods and services. 
 

31.

A customer's subjective assessment of benefits relative to costs in determining the worth of a product is known as 
 

32.

Megan is shopping for a new laptop computer. All the computer brands offer laptops with standard screens and keyboards, but each brand offers different software packages, memory amounts, processor speeds, hard drive sizes, and operating systems. Megan has noticed that the price of laptops varies depending on the features they include. In order to choose the best laptop computer for her, Megan will most likely 
 

33.

Jeremy has decided to buy a new car. Since he travels a lot, he is looking for a car that gets great gas mileage and has enough room for his luggage. He has done a lot of research online and gone to several car dealerships to test drive cars. He has finally decided to buy a Toyota Prius because he liked driving it, and it fits his criteria for great gas mileage and storage space. However, in order to buy the car, Jeremy must take a car loan. He also must get the car inspected and registered before he can start driving it. In this scenario, which of the following is a nonmonetary cost associated with Jeremy's car purchase? 
 

34.

For greater accessibility, Hakin Inc. has placed its products at every popular superstore. The convenience provided by the company is an example of reducing _____ costs. 
 

35.

_____ costs include anything a buyer must give up to obtain the benefits the product provides. 
 

36.

All of the following are true regarding how customers receive benefits from products EXCEPT they 
 

37.

In the context of the marketing concept, which is the first step that a business must take? 
 

38.

To gain an edge, businesses must 
 

39.

In which of the following scenarios is a business least likely to survive? 
 

40.

_____ is the goal of the marketing concept. 
 

41.

Monica owns an equestrian clothing store. After many customers complained that her clothing only fit petite riders, she decided to add a new brand of riding clothes that makes clothing for all body shapes and sizes. In regards to the marketing concept, which of the following statements describes Monica's decision? 
 

42.

Which of the following is an ineffective practice to follow while implementing the marketing concept? 
 

43.

Auto Giants is a large car dealership. It could sell its cars for $100 and give customers a lifetime guarantee, but based on the marketing concept, why shouldn't it do this? 
 

44.

All of the following are true regarding the marketing concept EXCEPT 
 

45.

In the context of the evolution of the marketing concept, the era of production orientation was characterized by 
 

46.

During the period of _____ orientation, the supply of manufactured goods caught up with and then exceeded demand, which made businesspeople realize they would have to promote their products to get buyers to desire them. 
 

47.

During the first half of the 20th century, businesspeople viewed _____ as the primary means of increasing profits. 
 

48.

Gary worked for a textile manufacturer during the first half of the 20th century. When the supply of his company's textiles exceeded customer demand, he realized that he would have to invest more money in advertising his products and go directly to his customers to convince them to purchase his products. Based on this scenario, Gary has most likely adopted the _____ orientation. 
 

49.

The market orientation approach emphasizes 
 

50.

A market orientation requires organizations to 
 

51.

Why is customer relationship management important in a market orientation? 
 

52.

Melinda is a marketing manager at a company that sells bicycles. A large part of her role is trying to assess what customers want and building long-term relationships with customers. Which of the following would likely complicate Melinda's job? 
 

53.

According to the market orientation, profits can be obtained through 
 

54.

Bobby owns a computer store that sells new and used computers and has a service department. When customers buy computers at his store, he offers a service package at a discounted rate. Additionally, he has an ongoing promotion that allows customers to trade in their old computers for new ones at much lower prices than his competitors can offer. He is able to do this because his service department can fix customers' old computers, which allows him to resell them to other customers. Based on this scenario, Bobby is focused on 
 

55.

_____ remains a major element of any strategy to develop and manage long-term customer relationships. 
 

56.

Tory is a marketing manager for a large chain of sporting goods stores. A significant part of her job is analyzing the purchase data of the company's customers. All of the following are benefits of doing this EXCEPT it 
 

57.

A _____ is a plan of action for developing, pricing, distributing, and promoting products that meet the needs of specific customers. 
 

58.

The first step in developing a marketing strategy is 
 

59.

Kristoff wants to start a new copyediting business. He identifies that his target market is publishing companies that outsource their copyediting projects. Now that he has identified his target market, what must he do next? 
 

60.

A _____ is best described as a group of people who have a need, purchasing power, and the desire and authority to spend money on goods, services, and ideas. 
 

61.

A _____ refers to a specific group of consumers on whose needs and wants a company focuses its marketing efforts. 
 

62.

Ferava Inc. is a company that markets its products—luxury wristwatches—exclusively to high-income individuals and celebrities. Thus, high-income individuals and celebrities are most likely Ferava Inc.'s 

63.

Red Unicorn Inc. is a company that manufactures wooden planks for construction. It has categorized its customers on the basis of their product requirements into construction companies, wholesalers, and government institutions. Which of the following marketing strategies is best illustrated in this scenario? 
 

64.

True Pharmaceuticals manufactures and sells a variety of drugs for a large market consisting of people of different genders, ages, educational backgrounds, lifestyles, geographic locations, and income levels. It assumes that all buyers have similar medical needs and wants. In this scenario, True Pharmaceuticals is most likely demonstrating a _____ to marketing. 
 

65.

Which of the following products is most suitable for selling through a total-market approach? 
 

66.

Why does the total-market approach work best for sellers of salt, sugar, and many agricultural products? 
 

67.

Plentiful Auto Parts manufactures engines, brakes, mufflers, and batteries and sells them to car manufacturers. This is an example of 
 

68.

Home Decor Emporium sells rugs, art, lamps, and other decorative pieces to homeowners, so they can express their personal styles in their homes. This is an example of 
 

69.

Rustic Rooms Furniture produces and sells unique furniture pieces to both individual homeowners and hotels. As a result, this company's products can be considered 
 

70.

Mitch's Sporting Goods Store decides to focus its new marketing campaigns on its yoga, softball, and tennis equipment in an attempt to attract more female customers. Which of the following is most likely the reason this store might want to focus on this market segment? 
 

71.

Which of the following is a challenge marketers in the United States will face in the future? 
 

72.

In the _____ approach to market segmentation, a company develops one marketing strategy for a single market segment. 
 

73.

Electronica Inc. is a mobile phone retailer that sells smartphones to high school students at easily affordable prices. The company has one marketing strategy for the entire market of high school students and focuses all its efforts on this one segment. In this scenario, Electronica Inc. is most likely using the _____ approach for marketing its smartphones. 
 

74.

In the _____ approach, the marketer aims its marketing efforts at two or more segments, developing a marketing strategy for each. 
 

75.

Kemmen Foods, a company that manufactures and sells breakfast cereals, has customized its cereal flavors to suit different lifestyles, personal tastes, and age groups. For example, it makes organic cereals for its health-conscious customers and colorful cereals with cartoon characters for children. Which of the following market segment approaches is Kemmen Foods using in this scenario? 
 

76.

In _____ marketing, all marketing efforts focus on one small, well-defined market segment that has a unique, specific set of needs. 
 

77.

Highland Green is a group of luxury hotels that caters exclusively to high-end customers who form a small part of the market. The hotel has incorporated all possible luxuries to satisfy these customers. The marketing approach employed by Highland Green best exemplifies 
 

78.

For a firm to successfully use a concentration or multisegment approach to market segmentation, all of the following requirements must be met EXCEPT 
 

79.

If a company develops an advertising campaign exclusively for a segment of consumers with a certain income and education, which of the following segmentation variables is the company using? 
 

80.

The Beautiful Skin Company develops several different face creams, including an acne treatment cream for adolescents and a wrinkle-reducing cream for older people. These face creams have been developed on the basis of _____ segmentation. 
 

81.

Which of the following is a basis for the psychographic segmentation of markets? 
 

82.

Gear Power Inc., an automobile company, manufactures different cars for different market segments. It markets its SUVs for customers who live in the mountains, sedans for customers in the coastal plains, and smaller hatchback cars for those in big cities. In this scenario, Gear Power Inc. is primarily using _____ variables of market segmentation. 
 

83.

Coral Soul Inc. manufactures a range of body care products. It has separate product lines dedicated to men and women, and each product line has its own range of shower gels, shampoos, and cosmetics. Which of the following bases of market segmentation has Coral Soul Inc. adopted? 
 

84.

Which of the following bases for market segmentation pertains to some characteristic of the consumer's actions toward the product—a characteristic that commonly involves some aspect of product use? 
 

85.

Thirst Tip, a beverage manufacturing company, has placed its products strategically in areas where the population density is high. The segmentation done by Thirst Tip is an example of _____ segmentation. 
 

86.

Uncommon Confections is a bakery that produces all gluten-free baked goods to target customers who have trouble digesting gluten but still want to be able to enjoy tasty treats. What type of segmentation is this company using? 
 

87.

In businesses, the _____ is an important variable—often the central focus—of the marketing mix, based on which the other variables are adjusted. 
 

88.

Gift Nation Inc. is deciding whether to sell its products through vending machines outside subway stations or in stores at popular malls. To which of the following elements in the marketing mix does this decision most closely relate? 
 

89.

Den Inc., a firm dealing with fashion clothing, is contemplating whether to sell its products in brick and mortar stores or to sell them at its online store. To which of the following elements in the marketing mix does this decision most closely relate? 
 

90.

Prism Phones wants to target college students and young professionals. The company has therefore decided to advertise its cell phones over social networking and other popular websites. Relative to television advertising, this strategy will help Prism Phones save costs and thus allow the firm to sell its phones at more competitive prices. Prism Phones' decision to advertise through different media than the ones adopted by other firms illustrates the _____ activities of the marketing mix. 
 

91.

Personal Fitness Gym provides its clients with personal training sessions, small group exercise classes, fitness machines and weights to use, and a separate kids' gym with day care specialists, so members can bring their children to the gym with them. These items are most closely associated with the _____ aspect of the marketing mix. 
 

92.

All of the following are true regarding products EXCEPT they 
 

93.

_____ is a key element of the marketing mix because it relates directly to the generation of revenue and profits. 
 

94.

Oliver's Oil Company wants to increase customer demand for oil. What can Oliver do to accomplish this? 
 

95.

Which of the following statements is true regarding the distribution aspect of the marketing mix? 
 

96.

Which of the following is a social variable of buying behavior? 
 

97.

Global Mart Inc., a multinational chain of supermarkets, wants to open a new store in a country called Alheroni. Before launching itself in the new market, the management of Global Mart Inc. wants to collect primary data about Alheroni's market. Which of the following sources of information will it most likely use? 
 

98.

Which of the following is true of marketing research? 
 

99.

Mark runs a home improvement business. He is happy with the level of business he receives, but he wants to learn more about his customers, so he studies information compiled by the U.S. census bureau and other government agencies, databases created by marketing research firms, and sales and other internal reports. What kind of data is Mark using in this scenario? 
 

100.

All of the following are examples of companies using online marketing research EXCEPT 
 

101.

Gabrielle is a marketer for an online shoe store. An important task she performs regularly is measuring the website's traffic and performance. This task is known as 
 

102.

_____ refers to the decision processes and actions of people who purchase and use products. 
 

103.

In the context of the psychological variables of buying behavior, _____ is the process by which a person selects, organizes, and interprets information received from his or her senses. 
 

104.

Which of the following is a psychological variable of buying behavior? 
 

105.

Anna is an environmental activist who avoids buying paper-based products unless they are made from recycled paper. Which of the following psychological factors is primarily responsible for Anna's buying behavior in this scenario? 
 

106.

Derek dislikes buying branded clothes because he claims that they are a waste of money. In this scenario, Derek's buying behavior is most likely related to his 
 

107.

Every year, Jordan has bought a calendar to keep track of his appointments and events. However, this year, he bought a smartphone, which has a built in calendar, so he did not buy a new paper calendar. Which psychological variable does this scenario most closely describe? 
 

108.

_____ are a set of expectations for individuals based on some position they occupy. 
 

109.

_____ are commonly determined by ranking people into higher or lower positions of respect. 
 

110.

The groups with whom buyers identify and whose values or attitudes they adopt are referred to as 
 

111.

Lisa, Stanley, and Kendall have developed a common pattern of behavior. They all own large houses, drive fancy cars, and belong to an elite country club. Lisa, Stanley, and Kendall most likely belong to the same 
 

112.

Jennifer is highly influenced by celebrities in movies and advertisements. She wishes to dress like them and adopt their lifestyle. When she goes shopping, these celebrities are her point of comparison. In this scenario, the celebrities are Jennifer's 

113.

Every time David wants to change his cell phone, he takes the opinions of his colleagues and friends to decide which phone to buy. Thus, David's colleagues and friends are his 
 

114.

Maria is a Mexican American who manages a Mexican food restaurant. She often eats the food her restaurant sells, and several times a year, she travels to Mexico to visit her family and eat authentic Mexican cuisine. Which social variable does this scenario most closely describe? 
 

115.

Which of the following is an example of how a person's social role can influence his or her buying behavior? 
 

116.

Which of the following is a social role that a person may have? 
 

117.

Which of the following is least likely to be a competitive or economic force in the marketing environment? 
 

118.

Due to the increasing purchasing power and per capita income of the population of United Nombavia, True Couture Inc. decided to launch its premium line of clothing and bags in the country. Which of the following environmental forces primarily influenced True Couture Inc.'s decision?

119.

Which of the following best exemplifies regulatory forces in a marketing environment? 
 

120.

According to the foreign trade policy of the Republic of Cambria, multinational companies can enter its market only by merging with a local business partner. Which of the following environmental forces does this best reflect? 
 

121.

Which of the following is a social force that influences the marketing environment? 
 

122.

Daily Stop, a supermarket in California, was criticized by the community for its use of plastic bags. In view of the concerns raised by the members of the community, the supermarket's management made the decision to start using biodegradable bags. This decision has been influenced by _____ forces. 
 

123.

Kevin's music store developed a smartphone application to improve its distribution, promotion, and new-product development. In this scenario, Kevin's store is using _____ forces. 
 

124.

Specific laws require that advertisements be truthful and that all health claims be documented. This is an example of _____ forces. 
 

125.

Which of the following statements is true of the marketing environment? 
 

126.

Why does marketing require creativity and consumer focus? 
 

127.

Air Auto has developed a new car that runs on air, instead of fuel or electricity. This is an example of how laws addressing environmental issues can lead to 
 

128.

Electronva Inc., a consumer electronics company, wants to implement a multisegment approach to market segmentation. What requirements must be met to ensure that the strategy is successful?

129.

Delineate the psychological variables of buying behavior.

130.

How do businesses and the society benefit from marketing?