Exam
Name___________________________________
 
1. 

All of the following are accurate descriptions of modern marketing, EXCEPT which one? 
A) 

Marketing is used by for-profit and not-for-profit organizations. 
B) 

Marketing is managing profitable customer relationships. 
C) 

Marketing involves satisfying customers' needs. 
D) 

Marketing is the creation of value for customers. 
E) 

Selling and advertising are synonymous with marketing. 
Answer  

E 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 28-29 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-1 
User1  
User2  

 
2. 

According to management guru Peter Drucker, "The aim of marketing is to ________." 
A) 

sell products 
B) 

identify customer demands 
C) 

make selling unnecessary 
D) 

create customer value 
E) 

set realistic customer expectations 
Answer  

C 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 29 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-1 
User1  
User2  

 
3. 

________ 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) 

Negotiating 
C) 

Bartering 
D) 

Advertising 
E) 

Marketing 
Answer  

E 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 29 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-1 
User1  
User2  

 
4. 

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 last four only 
C) 

the first four only 
D) 

the last three only 
E) 

the first three only 
Answer  

C 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 29 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-1 
User1  
User2  

 
5. 

According to the simple five-step model of the marketing process, a company needs to ________ before designing a customer-driven marketing strategy. 
A) 

use customer relationship management to create full partnerships with key customers 
B) 

determine how to deliver superior value 
C) 

build profitable relationships with customers 
D) 

construct key components of a marketing program 
E) 

understand the marketplace and customer needs and wants 
Answer  

E 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 29 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-1 
User1  
User2  

 
6. 

________ are human needs as shaped by individual personality and culture. 
A) 

Demands 
B) 

Wants 
C) 

Values 
D) 

Exchanges 
E) 

Needs 
Answer  

B 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 1 

Type MC 

WS 0 

Var 1 

Page Ref 30 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-2 
User1  
User2  

 
7. 

When backed by buying power, wants become ________. 
A) 

demands 
B) 

physical needs 
C) 

exchanges 
D) 

social needs 
E) 

self-esteem needs 
Answer  

A 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 1 

Type MC 

WS 0 

Var 1 

Page Ref 30 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-2 
User1  
User2  

 
8. 

A(n) ________ is some combination of products, services, information, or experiences offered to consumers to satisfy a need or want. 
A) 

evoked set 
B) 

demand satisfaction 
C) 

value proposition 
D) 

need proposition 
E) 

market offering 
Answer  

E 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 1 

Type MC 

WS 0 

Var 1 

Page Ref 30 
Created On  May 20 2007 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-2 
User1  
User2  

 
9. 

Which of the following refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs? 
A) 

marketing management 
B) 

marketing myopia 
C) 

value proposition 
D) 

selling myopia 
E) 

the product concept 
Answer  

B 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 1 

Type MC 

WS 0 

Var 1 

Page Ref 31 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-2 
User1  
User2  

 
10. 

When marketers set low expectations for a market offering, the biggest risk they run is ________. 
A) 

failing to understand their customers' needs 
B) 

incorrectly identifying a target market 
C) 

disappointing loyal customers 
D) 

failing to attract enough customers 
E) 

decreasing customer satisfaction 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 31 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-2 
User1  
User2  

 
11. 

________ is the act of obtaining a desired object from someone by offering something in return. 
A) 

Valuation 
B) 

Donation 
C) 

Exchange 
D) 

Value creation 
E) 

Bribery 
Answer  

C 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 1 

Type MC 

WS 0 

Var 1 

Page Ref 31 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-2 
User1  
User2  

 
12. 

A(n) ________ is the set of actual and potential buyers of a product. 
A) 

segment 
B) 

audience 
C) 

exchange 
D) 

group 
E) 

market 
Answer  

E 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 1 

Type MC 

WS 0 

Var 1 

Page Ref 31 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-2 
User1  
User2  

 
13. 

Consumer research, product development, communication, distribution, pricing, and service are all core ________ activities. 
A) 

production 
B) 

exchange 
C) 

customer relationship management 
D) 

management 
E) 

marketing 
Answer  

E 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 1 

Type MC 

WS 0 

Var 1 

Page Ref 31 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB Communication 
Skill Concept 
Objective 1-2 
User1  
User2  

 
14. 

The art and science of choosing target markets and building profitable relationships with them is called ________. 
A) 

positioning 
B) 

differentiation 
C) 

selling 
D) 

segmentation 
E) 

marketing management 
Answer  

E 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 1 

Type MC 

WS 0 

Var 1 

Page Ref 32 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
User1  
User2  

 
15. 

Selecting which segments of a population of customers to serve is called ________. 
A) 

customization 
B) 

positioning 
C) 

target marketing 
D) 

managing the marketing effort 
E) 

market segmentation 
Answer  

C 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 32 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
User1  
User2  

 
16. 

Which of the following is the set of benefits a company promises to deliver to customers to satisfy their needs? 
A) 

customer service 
B) 

a money-back guarantee 
C) 

low pricing 
D) 

an attribute 
E) 

a value proposition 
Answer  

E 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 33 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
User1  
User2  

 
17. 

Which customer question is answered by a company's value proposition? 
A) 

"What kind of experience will I have with products and services associated with this brand?" 
B) 

"What are the benefits of being a loyal consumer of your brand?" 
C) 

"What are the costs and benefits of your brand?" 
D) 

"Why should I buy your brand rather than a competitor's?" 
E) 

"How does your brand benefit society?" 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 3 

Type MC 

WS 0 

Var 1 

Page Ref 33 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
User1  
User2  

 
18. 

Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain? 
A) 

societal marketing concept 
B) 

production concept 
C) 

marketing concept 
D) 

selling concept 
E) 

product concept 
Answer  

B 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 33 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
User1  
User2  

 
19. 

Which of the following marketing management concepts is most likely to lead to marketing myopia? 
A) 

marketing 
B) 

customer-driven marketing 
C) 

societal marketing 
D) 

customer-driving marketing 
E) 

product 
Answer  

E 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 33 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
User1  
User2  

 
20. 

According to the production concept, consumers will favor products that are ________ and ________. 
A) 

available; affordable 
B) 

in high demand; hard to find 
C) 

advertised; affordable 
D) 

satisfying; quality focused 
E) 

segmented; convenient 
Answer  

A 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 33 
Created On  May 20 2007 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
User1  
User2  

 
21. 

The ________ concept is aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer the most in quality, performance, and innovative features. 
A) 

product 
B) 

marketing 
C) 

promotion 
D) 

production 
E) 

customer 
Answer  

A 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 1 

Type MC 

WS 0 

Var 1 

Page Ref 33 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
User1  
User2  

 
22. 

The product concept says that a company should do which of the following? 
A) 

make promoting products the top priority 
B) 

focus on making continuous product improvements 
C) 

market only those products with high customer appeal 
D) 

improve marketing of its best products 
E) 

focus on the target market and make products that meet those customers' demands 
Answer  

B 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 33 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
User1  
User2  

 
23. 

"Build a better mousetrap and the world will beat a path to your door" reflects the ________ concept. 
A) 

marketing 
B) 

target marketing 
C) 

production 
D) 

product 
E) 

selling 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 33 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
User1  
User2  

 
24. 

Which marketing orientation calls for aggressive promotional efforts and focuses on generating transactions to obtain profitable sales? 
A) 

marketing concept 
B) 

societal marketing concept 
C) 

product concept 
D) 

selling concept 
E) 

production concept 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 1 

Type MC 

WS 0 

Var 1 

Page Ref 34 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
User1  
User2  

 
25. 

Which marketing orientation holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do? 
A) 

product concept 
B) 

selling concept 
C) 

marketing concept 
D) 

production concept 
E) 

societal marketing concept 
Answer  

C 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 1 

Type MC 

WS 0 

Var 1 

Page Ref 34 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
User1  
User2  

 
26. 

According to the authors of your text, the ________  concept is a "sense and respond" philosophy rather than a "make and sell" philosophy.  
A) 

product  
B) 

societal marketing  
C) 

retailing  
D) 

production  
E) 

marketing  
Answer  

E 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 34 
Created On  Mar 10 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
User1  
User2  

 
27. 

A firm that uses the selling concept takes a(n) ________ approach. 
A) 

societal 
B) 

outside-in 
C) 

inside-out 
D) 

customer service 
E) 

passive 
Answer  

C 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 34 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
User1  
User2  

 
28. 

Herb Kelleher of Southwest Airlines used the marketing concept in his successful organization. Having a customer department rather than a marketing department, as suggested by Kelleher, is an example of a(n) ________ perspective. 
A) 

inside-out 
B) 

outside-in 
C) 

external 
D) 

traditional 
E) 

continuous improvement 
Answer  

B 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 34 
Created On  May 20 2007 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
User1  
User2  

 
29. 

Though often criticized, the selling concept is particularly appropriate and effective with which of the following types of products? 
A) 

specialty 
B) 

unsought 
C) 

demarketed 
D) 

shopping 
E) 

convenience 
Answer  

B 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 34 
Created On  May 20 2007 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
User1  
User2  

 
30. 

Which of the following reflects the marketing concept philosophy? 
A) 

"We don't have a marketing department; we have a customer department." 
B) 

"You won't find a better deal anywhere." 
C) 

"When it's profits versus customers' needs, profits will always win out." 
D) 

"We build them so you can buy them." 
E) 

"We're in the business of making and selling superior products." 
Answer  

A 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 3 

Type MC 

WS 0 

Var 1 

Page Ref 34 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
User1  
User2  

 
31. 

Customer-driven marketing usually works well when ________ and when customers ________. 
A) 

a clear need exists; are difficult to identify 
B) 

a firm can deliver the goods desired; are thoroughly researched 
C) 

a need exists; don't know what they want 
D) 

a clear need exists; know what they want 
E) 

customers know what they want; are loyal to the brand 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 3 

Type MC 

WS 0 

Var 1 

Page Ref 34 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
User1  
User2  

 
32. 

Marie Ortiz enjoys her work at Futuristic Designs, Inc. Her organization understands and anticipates customer needs even better than customers themselves do and creates products and services to meet current and future wants and demands. Marie's firm practices ________ marketing. 
A) 

customer-driven 
B) 

societal 
C) 

social 
D) 

customer-driving 
E) 

relationship 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 35 
Created On  Oct  9 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
User1  
User2  

 
33. 

When customers don't know what they want or don't even know what's possible, the most effective strategy is ________ marketing. 
A) 

production 
B) 

customer-driven 
C) 

product 
D) 

customer-driving 
E) 

societal 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 35 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
User1  
User2  

 
34. 

The societal marketing concept seeks to establish a balance between consumer short-run wants and consumer ________. 
A) 

value propositions 
B) 

immediate health 
C) 

long-run welfare 
D) 

short-run ethics 
E) 

short-run costs and profits 
Answer  

C 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 1 

Type MC 

WS 0 

Var 1 

Page Ref 35 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
User1  
User2  

 
35. 

Which marketing orientation holds that firms must strive to deliver value to customers in a way that maintains or improves the consumer's and society's well-being? 
A) 

product concept 
B) 

societal marketing concept 
C) 

marketing concept 
D) 

equity concept 
E) 

selling concept 
Answer  

B 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 1 

Type MC 

WS 0 

Var 1 

Page Ref 35 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB Ethical understanding and reasoning abilities 
Skill Concept 
Objective 1-3 
User1  
User2  

 
36. 

The three areas of consideration that should be balanced in the societal marketing concept are consumer wants, society's interests, and ________. 
A) 

want satisfaction 
B) 

human welfare 
C) 

short-run wants 
D) 

company profits 
E) 

long-term needs 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 35 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB Ethical understanding and reasoning abilities 
Skill Concept 
Objective 1-3 
User1  
User2  

 
37. 

The set of marketing tools a firm uses to implement its marketing strategy is called the ________. 
A) 

marketing mix 
B) 

marketing effort 
C) 

TQM 
D) 

promotion mix 
E) 

product mix 
Answer  

A 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 36 
Created On  Oct  7 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
User1  
User2  

 
38. 

Building, keeping, and growing profitable relationships by delivering customer value and satisfaction is called ________. 
A) 

customer relationship management 
B) 

customer perceived value 
C) 

societal marketing 
D) 

database marketing 
E) 

customer lifetime value 
Answer  

A 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 1 

Type MC 

WS 0 

Var 1 

Page Ref 36 
Created On  Oct  7 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
39. 

Of the following, which is the most important concept of modern marketing? 
A) 

properly trained sales people 
B) 

mass marketing 
C) 

customer relationship management 
D) 

e-mail advertising 
E) 

low prices 
Answer  

C 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 36 
Created On  Mar 10 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
40. 

You have just taken a new position in an organization and you're learning about the job functions of your new colleagues. You observe that your marketing manager is heavily involved in the process of building and maintaining profitable customer relationships. Your marketing manager frequently speaks about the need to acquire, keep, and grow customers. Your manager is concerned with which one of the following? 
A) 

the societal marketing concept 
B) 

customer-managed relationships 
C) 

customer divestment 
D) 

customer relationship management 
E) 

partner relationship management 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 37 
Created On  Oct  8 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
41. 

Customer-perceived value is determined by a customer's ________ of the benefits and costs of a market offering relative to those of competing offers. 
A) 

personal assessment 
B) 

rational expectations 
C) 

objective evaluation 
D) 

accurate assessment 
E) 

emotional understanding 
Answer  

A 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 36 
Created On  Oct  7 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
42. 

It is most accurate to say that customers buy from stores and firms that offer which of the following? 
A) 

the highest level of customer satisfaction 
B) 

the highest value for the dollar 
C) 

the most concern for society's interests 
D) 

the highest customer-perceived value 
E) 

the most attractive company image 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 3 

Type MC 

WS 0 

Var 1 

Page Ref 36 
Created On  Oct  7 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
43. 

The key to delivering customer satisfaction is to match ________ with ________. 
A) 

customer expectations; product performance 
B) 

company performance; unique products 
C) 

company performance; the competition's performance 
D) 

company performance; competitive prices 
E) 

relationship building; performance tools 
Answer  

A 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 37 
Created On  Oct  8 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
44. 

Which of the following is the term for customers who make repeat purchases and tell others about their positive experiences with a product or service? 
A) 

social customers 
B) 

full partners 
C) 

customer evangelists 
D) 

barnacles 
E) 

butterflies 
Answer  

C 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 37 
Created On  Oct  7 2008 

Modified On Jun  4 2011 
AACSB Communication 
Skill Concept 
Objective 1-4 
User1  
User2  

 
45. 

Which of the following strategies would a company most likely use to increase customer satisfaction? 
A) 

lowering prices 
B) 

limiting customer experiences with a brand 
C) 

"firing" unprofitable customers 
D) 

decreasing the variety of offered services 
E) 

divesting 
Answer  

A 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 3 

Type MC 

WS 0 

Var 1 

Page Ref 39 
Created On  Oct  7 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
46. 

You are an assistant marketing director for a firm in a market with many low-margin customers. What type of relationship would be most profitable for you to develop with these customers? 
A) 

basic relationships 
B) 

basic partnerships 
C) 

full partnerships 
D) 

club programs 
E) 

selective relationships 
Answer  

A 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 39 
Created On  Oct  8 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
47. 

A room upgrade offered by a hotel to a guest who often stays in the hotel is an example of a ________. 
A) 

frequency marketing program 
B) 

club marketing program 
C) 

partner relationship management technique 
D) 

basic customer relationship 
E) 

structural benefit  
Answer  

A 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 39 
Created On  Oct  7 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
48. 

Pete Sanchez, a recent graduate of business school, has a different approach than his marketing manager, who believes in keeping customers at arm's length and using mass media advertising. Pete knows that today few successful firms still practice true ________. 
A) 

mass marketing 
B) 

club marketing 
C) 

customer satisfaction 
D) 

market segmentation 
E) 

frequency marketing 
Answer  

A 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 40 
Created On  Oct  9 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
49. 

Which of the following has NOT contributed to the deeper, more interactive nature of today's customer relationships? 
A) 

video sharing 
B) 

e-mail 
C) 

online social networks 
D) 

traditional advertising 
E) 

Web sites 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 41 
Created On  Oct  7 2008 

Modified On Jun  4 2011 
AACSB Use of information technology 
Skill Concept 
Objective 1-4 
User1  
User2  

 
50. 

Which of the following best explains why consumers have greater power and control in today's marketplace? 
A) 

Implementation of the product concept has resulted in continually improving products. 
B) 

Customer-driven marketing creates products and services that meet customers' future needs. 
C) 

More companies are implementing societal marketing and weighing long-term costs and benefits. 
D) 

The production concept and competition have lowered prices. 
E) 

Through new communication technologies, customers have more access to information and more methods of sharing their opinions with other customers. 
Answer  

E 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 3 

Type MC 

WS 0 

Var 1 

Page Ref 41 
Created On  Oct  7 2008 

Modified On Jun  4 2011 
AACSB Use of information technology 
Skill Concept 
Objective 1-4 
User1  
User2  

 
51. 

The marketing world is embracing ________ because consumers can wield greater power and control in the marketplace through communication technologies. 
A) 

customer-managed relationships 
B) 

target marketing 
C) 

market segmentation 
D) 

partner relationship management 
E) 

supply chain management 
Answer  

A 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 41 
Created On  Mar 10 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
52. 

Greater consumer control means that companies must rely more on marketing by ________ than by ________. 
A) 

inspiration; competition 
B) 

producing; selling 
C) 

socialization; information 
D) 

attraction; intrusion 
E) 

interruption; involvement 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 41 
Created On  Oct  7 2008 

Modified On Jun  4 2011 
AACSB Communication 
Skill Concept 
Objective 1-4 
User1  
User2  

 
53. 

Which of the following is an example of consumer-generated marketing? 
A) 

Neiman Marcus's InCircle Rewards program for its best customers 
B) 

The Lexus Covenant aimed at creating customer delight 
C) 

Toyota's presence in online communities 
D) 

MasterCard's use of "Priceless" commercials shot by customers 
E) 

Nike's Nike Plus running Web site 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 42 
Created On  Oct  9 2008 

Modified On Jun  4 2011 
AACSB Communication 
Skill Concept 
Objective 1-4 
User1  
User2  

 
54. 

Partner relationship management focuses on working with ________ to bring more value to customers. 
A) 

competitors 
B) 

partners outside of the company only 
C) 

consumers 
D) 

partners inside and outside of the company 
E) 

interest groups 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 43 
Created On  Mar 10 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
55. 

In today's world, marketing should be done by ________ employees in an organization. 
A) 

only marketing, sales, and customer-support 
B) 

only management and marketing 
C) 

all 
D) 

only marketing 
E) 

only sales and technology 
Answer  

C 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 43 
Created On  Oct  7 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
56. 

Through ________, many companies today are strengthening their connections to all partners, from providers of raw materials to components to final products that are delivered to final buyers. 
A) 

customized marketing 
B) 

equity marketing 
C) 

supply chain management 
D) 

direct marketing 
E) 

partnership relationship marketing 
Answer  

C 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 43 
Created On  Oct  7 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
57. 

Suzie Chan strengthens her company's connections by treating suppliers of raw materials, vendors, and distributors as partners in delivering customer value. What type of management is she practicing? 
A) 

customer development 
B) 

outside partnering 
C) 

supply chain 
D) 

marketing 
E) 

inside partnering 
Answer  

C 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 43 
Created On  Oct  9 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
58. 

The final step in the marketing process is ________. 
A) 

designing a customer-driven marketing strategy 
B) 

understanding the marketplace 
C) 

creating customer lifetime value 
D) 

creating customer loyalty 
E) 

capturing value from customers 
Answer  

E 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 1 

Type MC 

WS 0 

Var 1 

Page Ref 44 
Created On  Oct  7 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
59. 

Stew Leonard, the owner of a highly successful regional supermarket chain, reacts adversely to losing a single customer sale. He feels that this amounts to losing the entire stream of future purchases that a customer is likely to make if she remains in the area. Stew Leonard's concern is an illustration of which of the following? 
A) 

customer lifetime value 
B) 

partner relationship management 
C) 

market share 
D) 

market share maintenance 
E) 

share of customer 
Answer  

A 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 44 
Created On  Oct  7 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
60. 

When an airline goes after a "share of travel" from its customers, it is attempting to increase ________. 
A) 

profit margins 
B) 

share of customer 
C) 

partner equity 
D) 

customer-managed relationships 
E) 

customer ownership 
Answer  

B 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 45 
Created On  Oct  7 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
61. 

Beyond simply retaining good customers, marketers want to constantly increase their "share of customer." What does this mean in marketing terms? 
A) 

Marketers want to increase the profit margin with this target market. 
B) 

Marketers want to continuously increase their customers' levels of satisfaction. 
C) 

Marketers want to increase their market share. 
D) 

Marketers want to increase the share they get of the customer's purchasing in their product categories. 
E) 

Marketers want to turn satisfied customers into delighted customers. 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 45 
Created On  May 20 2007 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
62. 

________ is one of the best ways to increase share of customer. 
A) 

Cross-selling 
B) 

Using bait and switch 
C) 

Targeting new customers 
D) 

Divesting 
E) 

Partnership marketing 
Answer  

A 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 45 
Created On  May 20 2007 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
63. 

Amazon.com leverages relationships with its 35 million customers by offering them music, videos, gifts, toys, consumer electronics, and office products, among other items. Based on previous purchase history, the company recommends related CDs, books, videos, or other products that might interest a customer. This most directly helps Amazon.com capture a greater ________. 
A) 

customer loyalty 
B) 

social network 
C) 

share of customer 
D) 

profit margin 
E) 

partner value 
Answer  

C 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 45 
Created On  Oct  7 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
64. 

Which of the following is the total combined customer lifetime values of all a company's current and potential customers? 
A) 

customer equity 
B) 

customer lifetime value 
C) 

profitability 
D) 

share of market 
E) 

share of customer 
Answer  

A 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 1 

Type MC 

WS 0 

Var 1 

Page Ref 45 
Created On  Oct  7 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
65. 

The ultimate aim of customer relationship management is to produce ________. 
A) 

customer equity 
B) 

sales volume 
C) 

higher profit margins 
D) 

market share 
E) 

a reliable database 
Answer  

A 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 3 

Type MC 

WS 0 

Var 1 

Page Ref 45 
Created On  Oct  7 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
66. 

A potentially highly profitable, short-term customer is a ________. 
A) 

barnacle 
B) 

true believer 
C) 

stranger 
D) 

true friend 
E) 

butterfly 
Answer  

E 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 46 
Created On  Oct  7 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
67. 

Customers can be classified into four relationship groups, according to their profitability and projected loyalty. Which type of customers have the highest profit potential and strong loyalty? 
A) 

strangers 
B) 

big fish 
C) 

barnacles 
D) 

true friends 
E) 

butterflies 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 46 
Created On  Oct  7 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
68. 

Afia, a team leader in charge of customer relationship management, is planning strategies for improving the profitability of her firm's least profitable but loyal customers. She is also examining methods for "firing" customers in this group who cannot be made profitable. To which of the following customer relationship groups do these customers belong? 
A) 

true friends 
B) 

butterflies 
C) 

strangers 
D) 

barnacles 
E) 

short-term customers 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 46 
Created On  Oct  8 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
69. 

Since the beginning of the Great Recession, marketers have been emphasizing the ________ of their products more than ever. 
A) 

safety 
B) 

image 
C) 

value 
D) 

personality 
E) 

uniqueness 
Answer  

C 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 47 
Created On  Mar 10 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-5 
User1  
User2  

 
70. 

Which of the following statements about the Internet is most accurate? 
A) 

After the dot-com meltdown of 2000, fewer consumers are buying products and services online. 
B) 

Web 2.0 involves a less balanced approach to online marketing than the original dot-com boom did. 
C) 

Companies are cautiously using the Internet to build closer relationships with customers and marketing partners alike. 
D) 

Consumer e-commerce looks promising, but business-to-business e-commerce is declining. 
E) 

The Internet makes it easy for consumers to view, interact with, and create marketing content. 
Answer  

E 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 50 
Created On  Oct  8 2008 

Modified On Jun  4 2011 
AACSB Use of information technology 
Skill Concept 
Objective 1-5 
User1  
User2  

 
71. 

Which version of the Web has introduced small, fast, and customizable applications that can be accessed through multifunction mobile devices? 
A) 

Web 4.0 
B) 

Web 2.0 
C) 

Web 5.0 
D) 

Web 3.0 
E) 

Web 1.0 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 50 
Created On  Mar 10 2008 

Modified On Jun  4 2011 
AACSB Use of information technology 
Skill Concept 
Objective 1-5 
User1  
User2  

 
72. 

Which of the following is currently the fastest-growing form of marketing? 
A) 

mass media marketing 
B) 

societal marketing 
C) 

online marketing 
D) 

consumer-generated marketing 
E) 

word-of-mouth marketing 
Answer  

C 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 3 

Type MC 

WS 0 

Var 1 

Page Ref 51 
Created On  Oct  8 2008 

Modified On Jun  4 2011 
AACSB Use of information technology 
Skill Concept 
Objective 1-5 
User1  
User2  

 
73. 

As part of the rapid globalization of today's economy, companies are selling more locally produced goods in international markets and ________. 
A) 

downplaying concerns for social responsibility 
B) 

competing solely in traditional marketplaces 
C) 

reducing competition within their industry 
D) 

purchasing more supplies abroad 
E) 

taking a local view of their industry 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 51 
Created On  Mar 10 2008 

Modified On Jun  4 2011 
AACSB Dynamics of the global economy 
Skill Concept 
Objective 1-5 
User1  
User2  

 
74. 

Which of the following is most essential to any definition of marketing? 
A) 

customer relationships 
B) 

demand management 
C) 

the production concept 
D) 

making a profit  
E) 

making a sale  
Answer  

A 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 29 
Created On  Mar 10 2008 

Modified On Jun  4 2011 
AACSB Reflective thinking skills 
Skill Application 
Objective 1-1 
User1  
User2  

 
75. 

Greg Williams now has the buying power to purchase the computer system he has wanted for the last six months. Greg's want now has become a(n) ________. 
A) 

demand 
B) 

exchange 
C) 

necessity 
D) 

transaction 
E) 

need 
Answer  

A 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 30 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB Analytic skills 
Skill Application 
Objective 1-2 
User1  
User2  

 
76. 

Cathy's Clothes is a small retail chain successfully selling women's clothing and accessories with a profitable focus on buyers who have relatively modest means. This is an example of ________. 
A) 

convenience 
B) 

societal marketing 
C) 

value packing 
D) 

target marketing 
E) 

social marketing 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 32 
Created On  Oct  9 2008 

Modified On Jun  4 2011 
AACSB Analytic skills 
Skill Application 
Objective 1-3 
User1  
User2  

 
77. 

An organic farmer has identified three distinct groups who might be interested in his products vegetarians, people who are concerned about chemicals in their foods, and people who consider themselves innovators and trendsetters. These three groups are examples of ________.  
A) 

value propositions 
B) 

marketing intermediaries 
C) 

marketing mixes  
D) 

market segments  
E) 

mass markets  
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 32 
Created On  Dec 20 2006 

Modified On Jun  4 2011 
AACSB Analytic skills 
Skill Application 
Objective 1-3 
User1  
User2  

 
78. 

Jolene's firm markets preplanning services for a mortician. She finds that most of her target market wants to avoid discussing their future funeral needs, and she must somehow first get their attention. Jolene's firm most likely practices the ________. 
A) 

societal marketing concept 
B) 

social marketing concept 
C) 

marketing concept 
D) 

production concept 
E) 

selling concept 
Answer  

E 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 34 
Created On  May 20 2007 

Modified On Jun  4 2011 
AACSB Reflective thinking skills 
Skill Application 
Objective 1-3 
User1  
User2  

 
79. 

Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This reflects the ________ concept. 
A) 

marketing 
B) 

selling 
C) 

production 
D) 

product 
E) 

societal marketing 
Answer  

C 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 33 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB Analytic skills 
Skill Application 
Objective 1-3 
User1  
User2  

 
80. 

Railroads were once operated based on the thinking that users wanted trains rather than transportation, overlooking the challenge of other modes of transportation. This reflects the ________ concept. 
A) 

selling 
B) 

societal marketing 
C) 

product 
D) 

marketing 
E) 

production 
Answer  

C 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 3 

Type MC 

WS 0 

Var 1 

Page Ref 34 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB Analytic skills 
Skill Application 
Objective 1-3 
User1  
User2  

 
81. 

Some fast-food restaurants offer tasty and convenient food at affordable prices, but in doing so they contribute to a national obesity epidemic and environmental problems. These fast-food restaurants overlook the ________ philosophy. 
A) 

selling concept 
B) 

product concept 
C) 

marketing concept 
D) 

societal marketing concept 
E) 

production concept 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 35 
Created On  Oct  9 2008 

Modified On Jun  4 2011 
AACSB Reflective thinking skills 
Skill Application 
Objective 1-3 
User1  
User2  

 
82. 

FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these benefits against the monetary cost of using FedEx along with any other costs of using the service, they are acting upon ________. 
A) 

relationship marketing 
B) 

a societal marketing campaign 
C) 

loyalty 
D) 

customer-perceived value 
E) 

social relationships 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 3 

Type MC 

WS 0 

Var 1 

Page Ref 36 
Created On  Oct  9 2008 

Modified On Jun  4 2011 
AACSB Analytic skills 
Skill Application 
Objective 1-4 
User1  
User2  

 
83. 

Sally purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her expectations for Brand X lotion, Sally was measuring her level of ________. 
A) 

demand 
B) 

share of customer 
C) 

customer satisfaction 
D) 

customer equity 
E) 

customer lifetime value 
Answer  

C 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 3 

Type MC 

WS 0 

Var 1 

Page Ref 37 
Created On  Oct  8 2008 

Modified On Jun  4 2011 
AACSB Analytic skills 
Skill Application 
Objective 1-4 
User1  
User2  

 
84. 

The Niketown running club that organizes twice weekly evening runs and follow-up meetings in the Nike Store is an example of which of the following? 
A) 

a club marketing program 
B) 

a frequency marketing program 
C) 

a structural benefit provided for top customers 
D) 

a basic customer relationship 
E) 

a partner relationship 
Answer  

A 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 39 
Created On  Oct  9 2008 

Modified On Jun  4 2011 
AACSB Analytic skills 
Skill Application 
Objective 1-4 
User1  
User2  

 
85. 

Elisandra, a marketing manager at a regional chain restaurant, has decided to sponsor a contest calling for customers to create commercials for the restaurant. Winning entries will be posted on the organization's home page. Elisandra's plan is an example of ________. 
A) 

consumer-generated marketing 
B) 

customer divestment 
C) 

community development around a brand 
D) 

partner relationship management 
E) 

customer lifetime value 
Answer  

A 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 42 
Created On  Oct  8 2008 

Modified On Jun  4 2011 
AACSB Analytic skills 
Skill Application 
Objective 1-4 
User1  
User2  

 
86. 

Kao Corp., which makes Ban deodorant, invited teenage girls to make an ad that would encourage other girls to buy the product. This program is an example of ________.  
A) 

the production concept 
B) 

consumer-generated content  
C) 

the selling orientation  
D) 

partner relationship management 
E) 

societal marketing 
Answer  

B 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 42 
Created On  Dec 20 2006 

Modified On Jun  4 2011 
AACSB Analytic skills 
Skill Application 
Objective 1-5 
User1  
User2  

 
87. 

At Gina's Nails, the posted policy is "Without our customers, we don't exist." Gina and her staff aim to delight each customer, and they are quick to offer discounts or extra services whenever a customer is anything less than satisfied. Gina and her staff strive to make every customer a repeat customer. It is most accurate to say that instead of focusing on each individual transaction, Gina and her staff put a priority on ________. 
A) 

converting "strangers" 
B) 

partner relationship management 
C) 

capturing customer lifetime value 
D) 

enlisting customer evangelists 
E) 

attracting "butterflies" 
Answer  

C 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 3 

Type MC 

WS 0 

Var 1 

Page Ref 44 
Created On  Oct  8 2008 

Modified On Jun  4 2011 
AACSB Reflective thinking skills 
Skill Application 
Objective 1-4 
User1  
User2  

 
88. 

Ben & Jerry's challenges all stakeholders, including employees, top management, and even ice cream scoopers in their stores, to consider individual and community welfare in their day-to-day decisions. Actions such as this by companies seizing the opportunity to do well by doing good reflects ________.  
A) 

social responsibility 
B) 

partnership management 
C) 

environmentalism 
D) 

myopia 
E) 

profit marketing 
Answer  

A 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 51 
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Skill Application 
Objective 1-5 
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89. 

A church targeting different demographic groups to increase attendance is an example of ________. 
A) 

customer evangelism 
B) 

for-profit marketing 
C) 

societal marketing 
D) 

not-for-profit marketing 
E) 

caring capitalism 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
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Type MC 

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Skill Application 
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90. 

Your state's department of education has budgeted a significant amount of money for a radio, print, television, and online advertising campaign emphasizing the long-term benefits, both educationally and professionally, of reading every day. This is an example of a(n) ________ campaign. 
A) 

consumer-generated 
B) 

differentiated 
C) 

for-profit 
D) 

social marketing 
E) 

ethical 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

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Modified On Jun  4 2011 
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Skill Application 
Objective 1-5 
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91. 

Which of the following is the most likely result of a marketing strategy that attempts to serve all potential customers? 
A) 

Customer-perceived value will increase. 
B) 

Customer evangelists will become unpaid salespersons for the service or product. 
C) 

All customers will be delighted. 
D) 

Not all customers will be satisfied. 
E) 

The company will need to follow up with a service campaign. 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 32 
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AACSB Reflective thinking skills 
Skill Critical Thinking 
Objective 1-3 
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User2  

 
92. 

Which of the following reflects the marketing concept?  
A) 

"This is what I want; won't you please make it?" 
B) 

"The supplier is king." 
C) 

"Marketing should be viewed as foraging and not gardening." 
D) 

"This is what I make; won't you please buy it?" 
E) 

"Customers need to be told where they want to go." 
Answer  

A 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 3 

Type MC 

WS 0 

Var 1 

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Skill Critical Thinking 
Objective 1-3 
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User2  

 
93. 

In which of the following situations has a company most actively embraced customer-managed relationships? 
A) 

Toyota develops a marketing presence on social networks and other online communities. 
B) 

Paige Premium Denim jeans provide a superior quality and a perfect fit. 
C) 

iRobot invites enthusiastic Roomba owners to develop and share their own programs and uses for the company's robotic vacuum. 
D) 

Best Buy distinguishes between its best customers, called angels, and its less profitable customers, called demons, stocking merchandise to appeal to separate groups of its angels. 
E) 

American Airlines awards frequent flyer points to returning customers. 
Answer  

C 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 3 

Type MC 

WS 0 

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AACSB Reflective thinking skills 
Skill Critical Thinking 
Objective 1-4 
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94. 

When the economy tightens, customer loyalty and customer retention become ________ for marketers. 
A) 

more important 
B) 

impossible  
C) 

short-term but not long-term goals 
D) 

less important 
E) 

long-term but not short-term goals 
Answer  

A 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

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Skill Critical Thinking 
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User2  

 
Refer to the scenario below to answer the following questions.

	Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small, seaside motel to a thriving year-round resort in just a few years. Atop a bluff overlooking the Maine coast, Seagull Terrace had attracted thousands of visits during the summer months, but then faced a tremendous downturn in business during the winter months. "But, given the industry in the nearby towns, very little year-round competition, and our close proximity to Portland," Carol added, "I couldn't understand why seasonality had to hit Seagull Terrace so hard!"
	So Carol spent her first winter devising a new marketing plan. She put together a promotional package designed to attract business travelers year-round. Carol's plan, then, involved a seasonal promotional gimmickto be implemented from early winter to late spring–that would attract the same numbers as the large summer crowd. Her idea worked! During her second winter, Carol greeted numerous business travelersboth satisfied repeat guests as well as new guests who had been snagged by her promotional appeals.
	"We still have a long way to go," Carol admitted. "Our delicatessen offers delicious entrees, but we'd like to expand that. We provide health club privileges off-site, but we'd like to eventually provide our own. These are goals I hope to achieve in a few years. Our first project, however, included a renovation of our guest rooms and I'm quite proud of the results." Carol then added, "Actually there are so many possibilities. With an indoor pool area, I will eventually offer weekend get-aways throughout winter."
 
95. 

Which of the following groups is specifically part of Seagull Terrace's target market? 
A) 

young families 
B) 

seasonal business travelers 
C) 

summer campers 
D) 

retirees 
E) 

athletes 
Answer  

B 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

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AACSB Analytic skills 
Skill Application 
Objective 1-3 
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96. 

Carol Veldt's use of "promotional gimmicks" is an example of the ________ concept. 
A) 

societal marketing 
B) 

marketing 
C) 

production 
D) 

selling 
E) 

product 
Answer  

D 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

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AACSB Analytic skills 
Skill Application 
Objective 1-4 
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97. 

Renovations of the guest rooms at the Seagull Terrace and plans to add an indoor pool area are examples of the ________ concept. 
A) 

marketing 
B) 

product 
C) 

production 
D) 

societal marketing 
E) 

selling 
Answer  

B 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

Page Ref 34 
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Skill Application 
Objective 1-4 
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98. 

Carol Veldt has decided to ask selected guests to participate in an extensive survey about their experience at Seagull Terrace and about their most desired amenities and vacation experiences. By implementing the suggestions she receives from guests, Carol would be following the ________ concept. 
A) 

production 
B) 

marketing 
C) 

societal 
D) 

selling 
E) 

product 
Answer  

B 
Explanation  

A) 
B) 
C) 
D) 
E) 
Comment  
Diff 2 

Type MC 

WS 0 

Var 1 

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Modified On Jun  4 2011 
AACSB Analytic skills 
Skill Application 
Objective 1-4 
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99. 

Marketing is managing profitable customer relationships. 
Answer  

True 

False 
Explanation  
Comment  
Diff 1 

Type TF 

WS 0 

Var 1 

Page Ref 28 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-1 
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100. 

Human needs are shaped by culture and individual personality. 
Answer  

True 

False 
Explanation  
Comment  
Diff 2 

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WS 0 

Var 1 

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AACSB  
Skill Concept 
Objective 1-2 
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101. 

The difference between human needs and wants is that needs are not influenced by marketers. 
Answer  

True 

False 
Explanation  
Comment  
Diff 2 

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Objective 1-2 
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102. 

When backed by buying power, needs become wants. 
Answer  

True 

False 
Explanation  
Comment  
Diff 2 

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WS 0 

Var 1 

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AACSB  
Skill Concept 
Objective 1-2 
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103. 

Market offerings are limited to physical products. 
Answer  

True 

False 
Explanation  
Comment  
Diff 2 

Type TF 

WS 0 

Var 1 

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AACSB  
Skill Concept 
Objective 1-2 
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104. 

When sellers focus on existing needs and lose sight of underlying customer wants, they suffer from marketing myopia. 
Answer  

True 

False 
Explanation  
Comment  
Diff 3 

Type TF 

WS 0 

Var 1 

Page Ref 31 
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AACSB  
Skill Concept 
Objective 1-2 
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105. 

Only sellers of products, services, and ideas practice marketing; buyers do not. 
Answer  

True 

False 
Explanation  
Comment  
Diff 2 

Type TF 

WS 0 

Var 1 

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AACSB  
Skill Concept 
Objective 1-2 
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106. 

Market segmentation is the process of seeking fewer customers and reduced demand for profit maximization only. 
Answer  

True 

False 
Explanation  
Comment  
Diff 2 

Type TF 

WS 0 

Var 1 

Page Ref 32 
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Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
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107. 

The selling concept holds that consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort. 
Answer  

True 

False 
Explanation  
Comment  
Diff 1 

Type TF 

WS 0 

Var 1 

Page Ref 34 
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Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
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108. 

Your department holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do. Your department is practicing the selling concept. 
Answer  

True 

False 
Explanation  
Comment  
Diff 2 

Type TF 

WS 0 

Var 1 

Page Ref 34 
Created On  May 20 2007 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
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109. 

The societal marketing concept calls on marketers to balance consumer wants and desires, company profits, and society's interests. 
Answer  

True 

False 
Explanation  
Comment  
Diff 2 

Type TF 

WS 0 

Var 1 

Page Ref 35 
Created On  Oct  6 2008 

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AACSB Ethical understanding and reasoning abilities 
Skill Concept 
Objective 1-3 
User1  
User2  

 
110. 

The marketing mix includes production, price, promotion, and packaging; they are known as the four Ps of marketing. 
Answer  

True 

False 
Explanation  
Comment  
Diff 2 

Type TF 

WS 0 

Var 1 

Page Ref 36 
Created On  May 20 2007 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-3 
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111. 

For most marketers, customer relationship management (CRM) is exclusively a matter of customer data management. 
Answer  

True 

False 
Explanation  
Comment  
Diff 2 

Type TF 

WS 0 

Var 1 

Page Ref 36 
Created On  Oct  7 2008 

Modified On Jun  4 2011 
AACSB Use of information technology 
Skill Concept 
Objective 1-4 
User1  
User2  

 
112. 

Customer-perceived value is defined as the customer's evaluation of the perceived difference between all the benefits and all the costs of a marketing offer relative to those of competing offers. 
Answer  

True 

False 
Explanation  
Comment  
Diff 1 

Type TF 

WS 0 

Var 1 

Page Ref 36 
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Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
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113. 

Value has different meanings to and is perceived differently by different consumers. 
Answer  

True 

False 
Explanation  
Comment  
Diff 2 

Type TF 

WS 0 

Var 1 

Page Ref 37 
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Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
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User2  

 
114. 

Many companies now use customer profitability analysis to identify and weed out unprofitable customers. 
Answer  

True 

False 
Explanation  
Comment  
Diff 2 

Type TF 

WS 0 

Var 1 

Page Ref 40 
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Modified On Jun  4 2011 
AACSB Use of information technology 
Skill Concept 
Objective 1-4 
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User2  

 
115. 

Customer-managed relationships are marketing relationships that are initiated by and controlled by customers, not by marketers. 
Answer  

True 

False 
Explanation  
Comment  
Diff 2 

Type TF 

WS 0 

Var 1 

Page Ref 41 
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Skill Concept 
Objective 1-4 
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116. 

Consumer-generated marketing has yet to have much impact as a marketing force. 
Answer  

True 

False 
Explanation  
Comment  
Diff 2 

Type TF 

WS 0 

Var 1 

Page Ref 43 
Created On  Oct  8 2008 

Modified On Jun  4 2011 
AACSB Use of information technology 
Skill Concept 
Objective 1-4 
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User2  

 
117. 

To increase its "share of customer," a firm concentrates on retaining as many customers as possible over their lifetimes. 
Answer  

True 

False 
Explanation  
Comment  
Diff 2 

Type TF 

WS 0 

Var 1 

Page Ref 45 
Created On  May 20 2007 

Modified On Jun  4 2011 
AACSB  
Skill Concept 
Objective 1-4 
User1  
User2  

 
118. 

Web 1.0 connected people with information, and Web 2.0 is connecting people to multifunction mobile devices. 
Answer  

True 

False 
Explanation  
Comment  
Diff 2 

Type TF 

WS 0 

Var 1 

Page Ref 50 
Created On  Oct  8 2008 

Modified On Jun  4 2011 
AACSB Use of information technology 
Skill Concept 
Objective 1-5 
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User2  

 
119. 

An experience such as a vacation can be defined as a market offering. 
Answer  

True 

False 
Explanation  
Comment  
Diff 2 

Type TF 

WS 0 

Var 1 

Page Ref 30 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB Analytic skills 
Skill Application 
Objective 1-2 
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User2  

 
120. 

Amy's law office has developed a new format and wording for wills. The staff believes they offer the most in quality, performance, and innovative features. Her law office is practicing the production concept. 
Answer  

True 

False 
Explanation  
Comment  
Diff 3 

Type TF 

WS 0 

Var 1 

Page Ref 34 
Created On  May 20 2007 

Modified On Jun  4 2011 
AACSB Analytic skills 
Skill Application 
Objective 1-3 
User1  
User2  

 
121. 

The production concept and product concept are orientations that are more likely to lead to marketing myopia than the marketing concept and the societal marketing concept are. 
Answer  

True 

False 
Explanation  
Comment  
Diff 3 

Type TF 

WS 0 

Var 1 

Page Ref 33-34 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB Reflective thinking skills 
Skill Synthesis 
Objective 1-3 
User1  
User2  

 
122. 

Fast Food, Inc. views marketing as the science and art of finding, retaining, and growing profitable customers by providing them with the food they want. Fast Food, Inc. practices societal marketing. 
Answer  

True 

False 
Explanation  
Comment  
Diff 2 

Type TF 

WS 0 

Var 1 

Page Ref 35 
Created On  May 20 2007 

Modified On Jun  4 2011 
AACSB Analytic skills 
Skill Application 
Objective 1-3 
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User2  

 
123. 

Large-scale marketing approaches that foster two-way customer relationships are made possible by new communication technologies. 
Answer  

True 

False 
Explanation  
Comment  
Diff 2 

Type TF 

WS 0 

Var 1 

Page Ref 41 
Created On  Oct  8 2008 

Modified On Jun  4 2011 
AACSB Use of information technology 
Skill Critical Thinking 
Objective 1-4 
User1  
User2  

 
124. 

Briefly compare and contrast the concepts of needs, wants, and demands, giving an example of each. Discuss how these concepts relate to marketing practices. 
Answer  

Human needs are states of felt deprivation. Needs are part of the human make-up; they are not created by external forces. Humans have a basic physical need for food, clothing, warmth, and safety; a basic social need for belonging and affection; and a basic individual need for knowledge and self-expression. Unlike needs, wants are not innate; instead, wants are needs shaped by culture, society, and individual personality. For example, an American needs food but wants a Big Mac and a soft drink. An American with ten dollars needs food, wants a Big Mac and soft drink, and demands lunch at McDonalds. Wants become demands when they are backed by consumers' buying power. Marketers conduct extensive research to understand customers' wants and demands. They then attempt to fulfill customers' wants and demands through their market offerings. 
Comment  
Diff 2 

Type ES 

WS 0 

Var 1 

Page Ref 30 
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Skill Synthesis 
Objective 1-2 
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User2  

 
125. 

In a short essay, explain how and why marketers go beyond selling a product or service to create brand experiences.  
Answer  

Sellers are most effective when they focus more on the benefits and experiences produced by their products and services than on the specific products and services themselves. Smart marketers focus on creating a brand experience, incorporating several products and services for their customers. By doing so, marketers hope to increase customer satisfaction, creating a body of customers who will repeatedly purchase their market offerings and recommend those offerings to friends. 
Comment  
Diff 2 

Type ES 

WS 0 

Var 1 

Page Ref 31 
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Skill Application 
Objective 1-2 
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User2  

 
126. 

Compare the selling and marketing concepts, listing the key components of each philosophy.  
Answer  

The selling concept reflects an inside-out philosophy, while the marketing concept takes an outside-in perspective. The selling concept is typically practiced when an organization is marketing products or services that buyers do not normally think of purchasing, such as insurance or blood donation. Aggressive selling focuses on creating sales transactions rather than building long-term relationships with customers, with the aim of selling what the company makes rather than making what the customer wants. The marketing concept, on the other hand, is based upon identifying the needs and wants of target markets and then satisfying those needs and wants better than competitors do. In contrast to the selling concept, marketing focuses on the customer, not the product, as the path to profits.   
Comment  
Diff 2 

Type ES 

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Var 1 

Page Ref 34 
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Objective 1-3 
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127. 

Briefly explain the societal marketing concept. Give an example of an organization that has effectively used the societal marketing concept.  
Answer  

According to this concept, firms will succeed if they take underlying consumer needs and society's well being into account over the long term. A pure marketing concept can damage consumers' long-run welfare by focusing exclusively on satisfying consumers' short-run wants. Over a long period of time, this too-narrow focus can be damaging to the company. In setting their marketing strategies, marketers today need to balance company profits, consumer wants, and society's interests. UPS has a mission that stresses economic prosperity, social responsibility, and environmental stewardship. The company proactively seeks opportunities to act responsibly and efficiently. For example, UPS works to make its operations "green" and supports employees volunteering in their communities. 
Comment  
Diff 2 

Type ES 

WS 0 

Var 1 

Page Ref 35 
Created On  Oct  6 2008 

Modified On Jun  4 2011 
AACSB Ethical understanding and reasoning abilities 
Skill Synthesis 
Objective 1-3 
User1  
User2  

 
128. 

Define customer relationship management and explain its associated tools and levels of relationships. 
Answer  

Customer Relationship Management (CRM) is the process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. A company with mostly low-margin customers is likely to seek basic relationships, using brand-building advertising and sales promotion. An organization with few customers and high margins, on the other hand, will work to create full partnerships with key customers. To create stronger bonds with customers, some marketers use tools such as financial benefits or rewards based on frequency of purchase. Other tools include social benefits, like offering key customers the opportunity to network and create communities through club marketing programs. To retain current customers and remain profitable, companies today are going beyond transactional marketing to customer relationship management. The key is to create and sustain relationships for the long term.  
Comment  
Diff 3 

Type ES 

WS 0 

Var 1 

Page Ref 36-39 
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Modified On Jun  4 2011 
AACSB Reflective thinking skills 
Skill Application 
Objective 1-4 
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User2  

 
129. 

Explain why the aim of customer relationship management is to create not just customer satisfaction, but also customer delight.  
Answer  

Customer satisfaction cannot be taken for granted. Because brand loyalty is dependent upon strong customer satisfaction, companies strive to retain, satisfy, and even delight current customers. Firms create customer delight by promising only what they can deliver and then delivering more than what they promised. They also create emotional relationships with key customers. Delighted customers make repeated purchases and become customers for life. More importantly, they also essentially become an unpaid sales force for the firm as "customer evangelists" who tell other potential customers about their positive experiences with the product. 
Comment  
Diff 2 

Type ES 

WS 0 

Var 1 

Page Ref 36-37 
Created On  Oct  8 2008 

Modified On Jun  4 2011 
AACSB Reflective thinking skills 
Skill Critical Thinking 
Objective 1-4 
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User2  

 
130. 

In a short essay, discuss the challenges and advantages of new communication technologies for marketers as they work to build relationships with their customers. 
Answer  

Through the Internet and related technologies, people can now interact in direct and surprisingly personal ways with large groups of others, from neighbors within a local community to people across the world. With communication technologies such as e-mail, blogs, Web sites, online communities, and online social networks, today's marketers incorporate interactive approaches that help build targeted, two-way customer relationships. Marketers can create deeper consumer involvement and a sense of community surrounding a brand, making a brand a meaningful part of consumers' conversations and lives. However, while new communication tools create relationship-building opportunities for marketers, they also create challenges. They give consumers a greater voice, and therefore greater power and control in the marketplace. In fact, the marketing world is beginning to embrace customer-managed relationships. Today's consumers have more information about brands than ever before, and they have a wealth of platforms for airing and sharing their brand views with other consumers. This benefits companies when views of its products are positive, but can be damaging when customers share stories of negative experiences with a company's products. 
Comment  
Diff 2 

Type ES 

WS 0 

Var 1 

Page Ref 41-42 
Created On  Oct  8 2008 

Modified On Jun  4 2011 
AACSB Use of information technology 
Skill Application 
Objective 1-5 
User1  
User2  

 
131. 

Define customer equity and explain how a company can increase it. 
Answer  

Customer equity is the sum of the lifetime values of all a company's current and potential customers. Customer equity is dependent upon customer loyalty from a firm's profitable customers. Because customer equity is a reflection of a company's future, companies must manage it carefully, viewing customers as assets that need to be maximized. To increase customer equity, companies should work to delight their customers and establish full relationships with their most profitable customers. 
Comment  
Diff 2 

Type ES 

WS 0 

Var 1 

Page Ref 45 
Created On  Oct  8 2008 

Modified On Jun  4 2011 
AACSB Reflective thinking skills 
Skill Application 
Objective 1-4 
User1  
User2  

 
132. 

In a short essay, describe and compare the four types of customers classified by their potential profitability to an organization. Explain how an organization should manage each type of customer. 
Answer  

The four types of customers are strangers, butterflies, true friends, and barnacles.  "Strangers" have low potential profitability and loyalty. A company's offerings do not fit well with a stranger's wants and demands. Companies should not invest in building a relationship with this type of customer. Another type of customer in which a company should not invest is the "barnacle." Barnacles are highly loyal but not very profitable because there is a limited fit between their needs and the company's offerings. The company might be able to improve barnacles' profitability by selling them more, raising their fees, or reducing service to them. However, if they cannot be made profitable, they should be "fired." Like strangers, "butterflies" are not loyal. However, they are potentially profitable because there is a good fit between the company's offerings and their needs. Like real butterflies, this type of customer will come and go without becoming a permanent, loyal consumer of a company's products. Companies should use promotional blitzes to attract these customers, create satisfying and profitable transactions with them, and then cease investing in them until the next time around. The final type of customers is "true friends"; they are both profitable and loyal. There is a strong fit between their needs and the company's offerings, so the company should make continuous relationship investments in an effort to go beyond satisfying and to delight these customers. A company should try to convert true friends into customer evangelists who tell others about their good experiences with the company. 
Comment  
Diff 3 

Type ES 

WS 0 

Var 1 

Page Ref 46 
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Modified On Jun  4 2011 
AACSB Reflective thinking skills 
Skill Critical Thinking 
Objective 1-4 
User1  
User2  

 
133. 

Explain how the Internet has transformed the way in which we do business today. 
Answer  

The Internet links individuals and businesses of all types to each other. The Internet allows firms access to exciting new marketspaces. In addition to the click-only dot-coms, traditional "brick-and-mortar" companies of the past are now "click-and-mortar" companies, with online presences aimed at attracting new customers and strengthening bonds with current customers. Approximately 75% of American Internet users now shop online, making a Web presence a necessity for any organization. With Web 3.0, the virtual world goes everywhere with us on multifunction mobile devices. Because consumers are always connected, business must be as well. 
Comment  
Diff 2 

Type ES 

WS 0 

Var 1 

Page Ref 50 
Created On  Oct  8 2008 

Modified On Jun  4 2011 
AACSB Use of information technology 
Skill Application 
Objective 1-5 
User1  
User2  

 
134. 

What should sellers consider if they wish to avoid marketing myopia? 
Answer  

Sellers should consider the particular benefits and experiences desired by their customers, and not just pay attention to the specific products they offer. 
Explanation  
Comment  
Diff 2 

Type SA 

WS 0 

Var 1 

Page Ref 31 
Created On  May 20 2007 

Modified On Jun  4 2011 
AACSB Reflective thinking skills 
Skill Application 
Objective 1-2 
User1  
User2  

 
135. 

You are a manufacturer of tents, sleeping bags, and outdoor cooking equipment. How might you go about creating brand experiences for your customers? 
Answer  

Such manufacturers should focus on the benefits enjoyed through the use of their products, such as access to the great outdoors, shared family experiences, and relived memories of the consumer's youth. 
Explanation  
Comment  
Diff 2 

Type SA 

WS 0 

Var 1 

Page Ref 31 
Created On  May 20 2007 

Modified On Jun  4 2011 
AACSB Reflective thinking skills 
Skill Synthesis 
Objective 1-2 
User1  
User2  

 
136. 

Think about suppliers and other marketing partners. A modern marketing system relies on profitable relationships all along the way. How might Wal-Mart rely on its marketing partners in order to offer low prices? 
Answer  

Wal-Mart must rely on suppliers that will consistently provide quality merchandise at low costs. 
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137. 

The marketing team at Bead Beautiful, a line of jewelry targeted at pre-teenage girls, is meeting to formulate the products' value proposition. What should team members consider as they define a value proposition for Bead Beautiful? 
Answer  

In considering Bead Beautiful's value proposition, the marketing team should identify the benefits and values the company promises to deliver to customers to satisfy their needs. The value proposition should differentiate Bead Beautiful from other similar products, answering the customer's question "Why should I buy this brand rather than a competitor's?" 
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138. 

When demand for Beanie Babies was at its highest, manufacturers purposefully maintained strong demand by limiting supply, which drove the price of Beanie Babies up.  Compare the actions of these manufacturers to the production concept. 
Answer  

The production concept holds that consumers favor products that are available and affordable. According to this concept, manufacturers work to increase production and improve manufacturing efficiency. Beanie Babies manufacturers purposefully limited production, making their products less available and less affordable, a technique that contradicts the philosophy of the production concept. 
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139. 

Company X carries organizational and office supplies and follows the selling concept. Explain how Company X may lose sight of customer relationships with their marketing orientation. 
Answer  

The company's aim is to sell its supplies rather than make what the market wants; such a strategy creates sales transactions but not long-term relationships. The company's likely faulty assumption is that customers who are persuaded to buy the product will like it or that they will buy the product again even if they weren't really initially satisfied. Company X will not foster customer loyalty with this approach. 
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140. 

In nineteenth-century Dublin, Molly Malone sold cockles and mussels while shouting to passers by, "alive-alive-oh." Was Molly taking an outside-in or inside-out perspective? Explain. 
Answer  

The vendor's approach was inside-out. The cockles and mussels are available. The vendor's job was then to attract willing buyers. 
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141. 

Explain why electronics and pharmaceuticals manufacturers may use customer-driving marketing. 
Answer  

In such industries, consumers do not know exactly what new products are available; therefore, consumers rely on such firms to tell them what they need. 
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142. 

Explain how storing customer information in a database might better prepare car-maker Saturn in customer relationship management (CRM). 
Answer  

Managing detailed information about customers may allow Saturn to design new models around customer demographics and desires for specific features. These "touchpoints" can be the key to long-term customer loyalty. 
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143. 

What determines whether sellers pursue basic relationships or full partnerships with customers? 
Answer  

The type of relationship a seller seeks to create with its customers is dependent on the number of customers and their profitability. A company with many low-margin customers develops basic relationships; a company with just a few high-margin customers invests resources to create full partnerships. 
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144. 

How can a marketer increase "share of customer"? 
Answer  

The marketer can offer greater variety to customers; in addition, the marketer can train employees to cross-sell and up-sell in order to market more products and services to existing customers. 
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145. 

Explain what marketers can expect from individuals in the customer relationship group classified as "butterflies." 
Answer  

"Butterflies" are profitable but not loyal. Marketers should enjoy this type of customer "for the moment" because they soon flutter off. Marketers should create profitable and satisfying transactions with "butterflies," then cease investing in them until the next time around. Marketers can expect transactions with butterflies when conditions are optimal for the customer, but they should not expect butterflies to become loyal customers.  
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146. 

Able works in the marketing department of an international company. In what ways might Able use modern technologies to conduct market research in order to learn more about and better serve his company's customers? 
Answer  

Able could use videoconferencing to monitor customer focus groups discussing the company's products and services in various locations. Able could use online data services to learn more about the needs and wants of his customers, or he could create a customer database for the company to target individual customers with tailored offers. 
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147. 

In what ways might even a local retailer find itself touched by global competition? 
Answer  

A local retailer might have global suppliers and customers. The retailer's goods may come from abroad, or components of those goods may be produced or assembled abroad. In addition, a local retailer may also sell goods over the Internet to international customers. 
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148. 

How is marketing being applied in the not-for-profit sector? 
Answer  

Firms in the not-for-profit sector use marketing to enhance their images, to encourage donor marketing to attract memberships and donors, and to design social marketing campaigns to encourage specific causes. 
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1. 

E 

2. 

C 

3. 

E 

4. 

C 

5. 

E 

6. 

B 

7. 

A 

8. 

E 

9. 

B 

10. 

D 

11. 

C 

12. 

E 

13. 

E 

14. 

E 

15. 

C 

16. 

E 

17. 

D 

18. 

B 

19. 

E 

20. 

A 

21. 

A 

22. 

B 

23. 

D 

24. 

D 

25. 

C 

26. 

E 

27. 

C 

28. 

B 

29. 

B 

30. 

A 

31. 

D 

32. 

D 

33. 

D 

34. 

C 

35. 

B 

36. 

D 

37. 

A 

38. 

A 

39. 

C 

40. 

D 

41. 

A 

42. 

D 

43. 

A 

44. 

C 

45. 

A 

46. 

A 

47. 

A 

48. 

A 

49. 

D 

50. 

E 

51. 

A 

52. 

D 

53. 

D 

54. 

D 

55. 

C 

56. 

C 

57. 

C 

58. 

E 

59. 

A 

60. 

B 

61. 

D 

62. 

A 

63. 

C 

64. 

A 

65. 

A 

66. 

E 

67. 

D 

68. 

D 

69. 

C 

70. 

E 

71. 

D 

72. 

C 

73. 

D 

74. 

A 

75. 

A 

76. 

D 

77. 

D 

78. 

E 

79. 

C 

80. 

C 

81. 

D 

82. 

D 

83. 

C 

84. 

A 

85. 

A 

86. 

B 

87. 

C 

88. 

A 

89. 

D 

90. 

D 

91. 

D 

92. 

A 

93. 

C 

94. 

A 

95. 

B 

96. 

D 

97. 

B 

98. 

B 

99. 

TRUE 

100. 

FALSE 

101. 

TRUE 

102. 

FALSE 

103. 

FALSE 

104. 

FALSE 

105. 

FALSE 

106. 

FALSE 

107. 

TRUE 

108. 

FALSE 

109. 

TRUE 

110. 

FALSE 

111. 

FALSE 

112. 

TRUE 

113. 

TRUE 

114. 

TRUE 

115. 

FALSE 

116. 

FALSE 

117. 

FALSE 

118. 

FALSE 

119. 

TRUE 

120. 

FALSE 

121. 

TRUE 

122. 

FALSE 

123. 

TRUE 

124. 

Human needs are states of felt deprivation. Needs are part of the human make-up; they are not created by external forces. Humans have a basic physical need for food, clothing, warmth, and safety; a basic social need for belonging and affection; and a basic individual need for knowledge and self-expression. Unlike needs, wants are not innate; instead, wants are needs shaped by culture, society, and individual personality. For example, an American needs food but wants a Big Mac and a soft drink. An American with ten dollars needs food, wants a Big Mac and soft drink, and demands lunch at McDonalds. Wants become demands when they are backed by consumers' buying power. Marketers conduct extensive research to understand customers' wants and demands. They then attempt to fulfill customers' wants and demands through their market offerings. 

125. 

Sellers are most effective when they focus more on the benefits and experiences produced by their products and services than on the specific products and services themselves. Smart marketers focus on creating a brand experience, incorporating several products and services for their customers. By doing so, marketers hope to increase customer satisfaction, creating a body of customers who will repeatedly purchase their market offerings and recommend those offerings to friends. 

126. 

The selling concept reflects an inside-out philosophy, while the marketing concept takes an outside-in perspective. The selling concept is typically practiced when an organization is marketing products or services that buyers do not normally think of purchasing, such as insurance or blood donation. Aggressive selling focuses on creating sales transactions rather than building long-term relationships with customers, with the aim of selling what the company makes rather than making what the customer wants. The marketing concept, on the other hand, is based upon identifying the needs and wants of target markets and then satisfying those needs and wants better than competitors do. In contrast to the selling concept, marketing focuses on the customer, not the product, as the path to profits.   

127. 

According to this concept, firms will succeed if they take underlying consumer needs and society's well being into account over the long term. A pure marketing concept can damage consumers' long-run welfare by focusing exclusively on satisfying consumers' short-run wants. Over a long period of time, this too-narrow focus can be damaging to the company. In setting their marketing strategies, marketers today need to balance company profits, consumer wants, and society's interests. UPS has a mission that stresses economic prosperity, social responsibility, and environmental stewardship. The company proactively seeks opportunities to act responsibly and efficiently. For example, UPS works to make its operations "green" and supports employees volunteering in their communities. 

128. 

Customer Relationship Management (CRM) is the process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. A company with mostly low-margin customers is likely to seek basic relationships, using brand-building advertising and sales promotion. An organization with few customers and high margins, on the other hand, will work to create full partnerships with key customers. To create stronger bonds with customers, some marketers use tools such as financial benefits or rewards based on frequency of purchase. Other tools include social benefits, like offering key customers the opportunity to network and create communities through club marketing programs. To retain current customers and remain profitable, companies today are going beyond transactional marketing to customer relationship management. The key is to create and sustain relationships for the long term.  

129. 

Customer satisfaction cannot be taken for granted. Because brand loyalty is dependent upon strong customer satisfaction, companies strive to retain, satisfy, and even delight current customers. Firms create customer delight by promising only what they can deliver and then delivering more than what they promised. They also create emotional relationships with key customers. Delighted customers make repeated purchases and become customers for life. More importantly, they also essentially become an unpaid sales force for the firm as "customer evangelists" who tell other potential customers about their positive experiences with the product. 

130. 

Through the Internet and related technologies, people can now interact in direct and surprisingly personal ways with large groups of others, from neighbors within a local community to people across the world. With communication technologies such as e-mail, blogs, Web sites, online communities, and online social networks, today's marketers incorporate interactive approaches that help build targeted, two-way customer relationships. Marketers can create deeper consumer involvement and a sense of community surrounding a brand, making a brand a meaningful part of consumers' conversations and lives. However, while new communication tools create relationship-building opportunities for marketers, they also create challenges. They give consumers a greater voice, and therefore greater power and control in the marketplace. In fact, the marketing world is beginning to embrace customer-managed relationships. Today's consumers have more information about brands than ever before, and they have a wealth of platforms for airing and sharing their brand views with other consumers. This benefits companies when views of its products are positive, but can be damaging when customers share stories of negative experiences with a company's products. 

131. 

Customer equity is the sum of the lifetime values of all a company's current and potential customers. Customer equity is dependent upon customer loyalty from a firm's profitable customers. Because customer equity is a reflection of a company's future, companies must manage it carefully, viewing customers as assets that need to be maximized. To increase customer equity, companies should work to delight their customers and establish full relationships with their most profitable customers. 

132. 

The four types of customers are strangers, butterflies, true friends, and barnacles.  "Strangers" have low potential profitability and loyalty. A company's offerings do not fit well with a stranger's wants and demands. Companies should not invest in building a relationship with this type of customer. Another type of customer in which a company should not invest is the "barnacle." Barnacles are highly loyal but not very profitable because there is a limited fit between their needs and the company's offerings. The company might be able to improve barnacles' profitability by selling them more, raising their fees, or reducing service to them. However, if they cannot be made profitable, they should be "fired." Like strangers, "butterflies" are not loyal. However, they are potentially profitable because there is a good fit between the company's offerings and their needs. Like real butterflies, this type of customer will come and go without becoming a permanent, loyal consumer of a company's products. Companies should use promotional blitzes to attract these customers, create satisfying and profitable transactions with them, and then cease investing in them until the next time around. The final type of customers is "true friends"; they are both profitable and loyal. There is a strong fit between their needs and the company's offerings, so the company should make continuous relationship investments in an effort to go beyond satisfying and to delight these customers. A company should try to convert true friends into customer evangelists who tell others about their good experiences with the company. 

133. 

The Internet links individuals and businesses of all types to each other. The Internet allows firms access to exciting new marketspaces. In addition to the click-only dot-coms, traditional "brick-and-mortar" companies of the past are now "click-and-mortar" companies, with online presences aimed at attracting new customers and strengthening bonds with current customers. Approximately 75% of American Internet users now shop online, making a Web presence a necessity for any organization. With Web 3.0, the virtual world goes everywhere with us on multifunction mobile devices. Because consumers are always connected, business must be as well. 

134. 

Sellers should consider the particular benefits and experiences desired by their customers, and not just pay attention to the specific products they offer. 

135. 

Such manufacturers should focus on the benefits enjoyed through the use of their products, such as access to the great outdoors, shared family experiences, and relived memories of the consumer's youth. 

136. 

Wal-Mart must rely on suppliers that will consistently provide quality merchandise at low costs. 

137. 

In considering Bead Beautiful's value proposition, the marketing team should identify the benefits and values the company promises to deliver to customers to satisfy their needs. The value proposition should differentiate Bead Beautiful from other similar products, answering the customer's question "Why should I buy this brand rather than a competitor's?" 

138. 

The production concept holds that consumers favor products that are available and affordable. According to this concept, manufacturers work to increase production and improve manufacturing efficiency. Beanie Babies manufacturers purposefully limited production, making their products less available and less affordable, a technique that contradicts the philosophy of the production concept. 

139. 

The company's aim is to sell its supplies rather than make what the market wants; such a strategy creates sales transactions but not long-term relationships. The company's likely faulty assumption is that customers who are persuaded to buy the product will like it or that they will buy the product again even if they weren't really initially satisfied. Company X will not foster customer loyalty with this approach. 

140. 

The vendor's approach was inside-out. The cockles and mussels are available. The vendor's job was then to attract willing buyers. 

141. 

In such industries, consumers do not know exactly what new products are available; therefore, consumers rely on such firms to tell them what they need. 

142. 

Managing detailed information about customers may allow Saturn to design new models around customer demographics and desires for specific features. These "touchpoints" can be the key to long-term customer loyalty. 

143. 

The type of relationship a seller seeks to create with its customers is dependent on the number of customers and their profitability. A company with many low-margin customers develops basic relationships; a company with just a few high-margin customers invests resources to create full partnerships. 

144. 

The marketer can offer greater variety to customers; in addition, the marketer can train employees to cross-sell and up-sell in order to market more products and services to existing customers. 

145. 

"Butterflies" are profitable but not loyal. Marketers should enjoy this type of customer "for the moment" because they soon flutter off. Marketers should create profitable and satisfying transactions with "butterflies," then cease investing in them until the next time around. Marketers can expect transactions with butterflies when conditions are optimal for the customer, but they should not expect butterflies to become loyal customers.  

146. 

Able could use videoconferencing to monitor customer focus groups discussing the company's products and services in various locations. Able could use online data services to learn more about the needs and wants of his customers, or he could create a customer database for the company to target individual customers with tailored offers. 

147. 

A local retailer might have global suppliers and customers. The retailer's goods may come from abroad, or components of those goods may be produced or assembled abroad. In addition, a local retailer may also sell goods over the Internet to international customers. 

148. 

Firms in the not-for-profit sector use marketing to enhance their images, to encourage donor marketing to attract memberships and donors, and to design social marketing campaigns to encourage specific causes.