Chapter 1 Marketing: Creating and Capturing Customer Value
1) All of the following are accurate descriptions of modern marketing, EXCEPT which one? A) Marketing is the creation of value for customers.
B) Marketing is managing profitable customer relationships. C) Selling and advertising are synonymous with marketing. D) Marketing involves satisfying customers' needs.
E) Marketing is used by for-profit and not-for-profit organizations. Answer: C Diff: 2 Page Ref: 2 and 4 Skill: Concept Objective: 1-1
2) According to the opening scenario, the Tide marketing team is MOST concerned about which of the following?
A) maintaining its brand share
B) fostering customers' emotional connections with their product C) advertising their product's benefits
D) comparing the effectiveness of their product to other brands
E) incorporating consumer-generated marketing in the marketing mix Answer: B Diff: 2 Page Ref: 2 Skill: Concept Objective: 1-1
3) According to management guru Peter Drucker, \A) create customer value
B) identify customer demands C) make selling unnecessary
D) set realistic customer expectations E) sell products Answer: C Diff: 2 Page Ref: 5 Skill: Concept Objective: 1-1
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4) ________ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through value creation and exchange. A) Selling B) Advertising C) Bartering D) Marketing E) Negotiating Answer: D Diff: 2 Page Ref: 5 Skill: Concept Objective: 1-1
5) Which steps of the five-step marketing process are about understanding customers, creating customer value, and building strong customer relationships? A) the first two only B) the first three only C) the first four only D) the last three only E) the last four only Answer: C Diff: 2 Page Ref: 5 AACSB: Communication Skill: Concept Objective: 1-1
6) According to the simple five-step model of the marketing process, a company needs to ________ before designing a customer-driven marketing strategy. A) determine how to deliver superior value B) build profitable relationships with customers
C) use customer relationship management to create full partnerships with key customers D) understand the marketplace and customer needs and wants E) construct key components of a marketing program Answer: D Diff: 2 Page Ref: 5 AACSB: Communication Skill: Concept Objective: 1-2
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7) ________ are human needs as shaped by individual personality and culture. A) Needs B) Wants C) Demands D) Values E) Exchanges Answer: B Diff: 2 Page Ref: 6 Skill: Concept Objective: 1-2
8) When backed by buying power, wants become ________. A) social needs B) demands
C) physical needs D) self-esteem needs E) exchanges Answer: B Diff: 1 Page Ref: 6 Skill: Concept Objective: 1-2
9) What do companies call a set of benefits that they promise to consumers to satisfy their needs? A) market offering B) value proposition C) demand satisfaction D) need proposition E) evoked set Answer: A Diff: 1 Page Ref: 6 Skill: Concept Objective: 1-2
10) Which of the following refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs? A) selling myopia
B) marketing management C) value proposition D) marketing myopia E) the product concept Answer: D Diff: 1 Page Ref: 6 Skill: Concept Objective: 1-2
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Copyright ? 2010 Pearson Education, Inc. Publishing as Prentice Hall
11) When marketers set low expectations for a market offering, the biggest risk they run is ________.
A) disappointing loyal customers B) decreasing customer satisfaction C) failing to attract enough customers
D) failing to understand their customers' needs E) incorrectly identifying a target market Answer: C Diff: 1 Page Ref: 7 Skill: Concept Objective: 1-2
12) ________ is the act of obtaining a desired object from someone by offering something in return.
A) A value proposition B) Exchange C) Bribery
D) Value creation E) Donation Answer: B Diff: 1 Page Ref: 7 Skill: Concept Objective: 1-2
13) A(n) ________ is the set of actual and potential buyers of a product. A) market B) audience C) group D) segment E) exchange Answer: A Diff: 1 Page Ref: 7 Skill: Concept Objective: 1-2
14) Consumer research, product development, communication, distribution, pricing, and service are all core ________ activities. A) exchange B) marketing C) management D) production
E) customer relationship management Answer: B Diff: 1 Page Ref: 7 AACSB: Communication Skill: Concept Objective: 1-2
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15) Which of the following is the most likely result of a marketing strategy that attempts to serve all potential customers?
A) All customers will be delighted.
B) Customer-perceived value will increase.
C) Customer evangelists will become unpaid salespersons for the service or product. D) Not all customers will be satisfied.
E) The company will need to follow up with a demarketing campaign. Answer: D Diff: 3 Page Ref: 9 AACSB: Analytic Skills Skill: Concept Objective: 1-3
16) In the case of excess demand, ________ may be required to reduce the number of customers or to shift demand temporarily or permanently. A) marketing B) demarketing C) value marketing D) surplusing E) negotiating Answer: B Diff: 1 Page Ref: 9 Skill: Concept Objective: 1-3
17) The art and science of choosing target markets and building profitable relationships with them is called ________.
A) marketing management B) positioning C) segmentation D) selling
E) differentiation Answer: A Diff: 1 Page Ref: 8 Skill: Concept Objective: 1-3
18) Selecting which segments of a population of customers to serve is called ________. A) market segmentation B) positioning C) customization D) target marketing
E) managing the marketing effort Answer: D Diff: 1 Page Ref: 8 Skill: Concept Objective: 1-3
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Copyright ? 2010 Pearson Education, Inc. Publishing as Prentice Hall