Exam
Name___________________________________

MULTIPLE CHOICE.  Choose the one alternative that best completes the statement or answers the question. 

1) 

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

1) 

_______ 

A) 

Marketing is managing profitable customer relationships. 

B) 

Marketing is the creation of value for customers. 

C) 

Selling and advertising are synonymous with marketing. 

D) 

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

E) 

Marketing involves satisfying customers' needs. 

2) 

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

2) 

_______ 

A) 

sell products 

B) 

create customer value 

C) 

set realistic customer expectations 

D) 

make selling unnecessary 

E) 

identify customer demands 

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. 

3) 

_______ 

A) 

Selling 

B) 

Negotiating 

C) 

Advertising 

D) 

Marketing 

E) 

Bartering 

4) 

Which steps of the five-step marketing process are about understanding customers, creating customer value, and building strong customer relationships? 

4) 

_______ 

A) 

the first three only 

B) 

the first two only 

C) 

the last three only 

D) 

the first four only 

E) 

the last four only 

5) 

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

5) 

_______ 

A) 

build profitable relationships with customers 

B) 

understand both the marketplace and the needs and wants of customers 

C) 

determine how to deliver superior value 

D) 

use customer relationship management to create full partnerships with key customers 

E) 

construct key components of a marketing program 

6) 

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

6) 

_______ 

A) 

Values 

B) 

Exchanges 

C) 

Demands 

D) 

Wants 

E) 

Needs 

7) 

When backed by buying power, wants become ________. 

7) 

_______ 

A) 

social needs 

B) 

demands 

C) 

exchanges 

D) 

physical needs 

E) 

self-esteem needs 

8) 

What do companies call a combination of products, services, information, or experiences which are presented to consumers to satisfy their needs? 

8) 

_______ 

A) 

value proposition 

B) 

evoked set 

C) 

market offerings 

D) 

need proposition 

E) 

market satisfaction 

9) 

________ refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs. 

9) 

_______ 

A) 

Marketing management 

B) 

Value proposition 

C) 

Marketing myopia 

D) 

Selling myopia 

E) 

The product concept 

10) 

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

10) 

______ 

A) 

disappointing loyal customers 

B) 

incorrectly identifying a target market 

C) 

failing to attract enough customers 

D) 

failing to understand their customers' needs 

E) 

decreasing customer satisfaction 

11) 

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

11) 

______ 

A) 

Exchange 

B) 

A value proposition 

C) 

Bribery 

D) 

Donation 

E) 

Value creation 

12) 

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

12) 

______ 

A) 

group 

B) 

market 

C) 

audience 

D) 

exchange 

E) 

segment 

13) 

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

13) 

______ 

A) 

management 

B) 

customer relationship management 

C) 

exchange 

D) 

production 

E) 

marketing 

14) 

Which statement gives the most likely result of a marketing strategy that attempts to serve all potential customers? 

14) 

______ 

A) 

The company will need to follow up with a demarketing campaign. 

B) 

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

C) 

Not all customers will be satisfied. 

D) 

All customers will be delighted. 

E) 

Customer-perceived value will increase. 

15) 

In the case of excess demand, ________ may be required to reduce the number of customers or to shift demand temporarily or permanently. 

15) 

______ 

A) 

marketing 

B) 

negotiating 

C) 

value marketing 

D) 

surplusing 

E) 

demarketing 

16) 

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

16) 

______ 

A) 

marketing management 

B) 

differentiation 

C) 

selling 

D) 

positioning 

E) 

segmentation 

17) 

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

17) 

______ 

A) 

managing the marketing effort 

B) 

customization 

C) 

positioning 

D) 

target marketing 

E) 

market segmentation 

18) 

________ is the set of benefits a company promises to deliver the customer to satisfy their needs. 

18) 

______ 

A) 

A value proposition 

B) 

A money-back guarantee 

C) 

Low pricing 

D) 

An attribute 

E) 

Good customer service 

19) 

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

19) 

______ 

A) 

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

B) 

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

C) 

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

D) 

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

E) 

"How does your brand benefit me and society?" 

20) 

The ________ concept focuses primarily on improving efficiencies along the supply chain. 

20) 

______ 

A) 

selling 

B) 

product 

C) 

marketing 

D) 

production 

E) 

social marketing 

21) 

The ________ concept is most likely to lead to marketing myopia. 

21) 

______ 

A) 

social marketing 

B) 

selling 

C) 

production 

D) 

customer-driving marketing 

E) 

customer-driven marketing 

22) 

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. 

22) 

______ 

A) 

promotion 

B) 

customer 

C) 

product 

D) 

production 

E) 

marketing 

23) 

The product concept says that a company should ________. 

23) 

______ 

A) 

focus on making continuous product improvements 

B) 

improve the marketing of its best products 

C) 

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

D) 

market only those products with high customer appeal 

E) 

make promoting products the top priority 

24) 

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

24) 

______ 

A) 

selling 

B) 

marketing 

C) 

product 

D) 

production 

E) 

target marketing 

25) 

Which concept calls for aggressive selling and focuses on generating transactions to obtain profitable sales? 

25) 

______ 

A) 

product 

B) 

selling 

C) 

marketing 

D) 

societal marketing 

E) 

production 

26) 

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

26) 

______ 

A) 

marketing 

B) 

equity 

C) 

production 

D) 

product 

E) 

selling 

27) 

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

27) 

______ 

A) 

societal 

B) 

inside-out 

C) 

outside-in 

D) 

myopic 

E) 

customer service 

28) 

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

28) 

______ 

A) 

segmented; convenient 

B) 

satisfying; quality focused 

C) 

advertised; affordable 

D) 

available; affordable 

E) 

in high demand; hard to find 

29) 

Sam Barnett of MBC used the marketing concept in his successful organization. Barnett's statement that "We will invest in content that people want to watch" is an example of a(n) ________ perspective. 

29) 

______ 

A) 

inside-out 

B) 

external 

C) 

traditional 

D) 

outside-in 

E) 

modern 

30) 

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

30) 

______ 

A) 

specialty 

B) 

shopping 

C) 

demarketed 

D) 

unsought 

E) 

convenience 

31) 

Which of the following statements reflects the marketing concept philosophy? 

31) 

______ 

A) 

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

B) 

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

C) 

"We build them so you can buy them." 

D) 

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

E) 

"We will invest in content that people want to watch." 

32) 

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

32) 

______ 

A) 

a clear need exists; know what they want 

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; are difficult to identify 

E) 

customers know what they want; are loyal to the brand 

33) 

Samar enjoys her work at Mustakbaliah 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. Samar's firm practices ________ marketing. 

33) 

______ 

A) 

social 

B) 

customer-driving 

C) 

relationship 

D) 

customer-driven 

E) 

donor 

34) 

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

34) 

______ 

A) 

customer-driven 

B) 

product 

C) 

societal 

D) 

production 

E) 

customer-driving 

35) 

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

35) 

______ 

A) 

short-run ethics 

B) 

value propositions 

C) 

short-run costs and profits 

D) 

immediate health 

E) 

long-run welfare 

36) 

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

36) 

______ 

A) 

equity 

B) 

product 

C) 

societal marketing 

D) 

marketing 

E) 

selling 

37) 

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

37) 

______ 

A) 

human welfare 

B) 

short-run wants 

C) 

want satisfaction 

D) 

long-term needs 

E) 

company profits 

38) 

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

38) 

______ 

A) 

TQM 

B) 

product mix 

C) 

marketing mix 

D) 

promotion mix 

E) 

marketing effort 

39) 

________ is/are the most important concept of modern marketing. 

39) 

______ 

A) 

Societal marketing 

B) 

Low prices 

C) 

Properly trained salespeople 

D) 

Customer relationship management 

E) 

Consumer-generated marketing 

40) 

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

40) 

______ 

A) 

customer lifetime value 

B) 

societal marketing 

C) 

customer perceived value 

D) 

database marketing 

E) 

customer relationship management 

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. 

41) 

______ 

A) 

objective evaluation 

B) 

emotional understanding 

C) 

personal assessment 

D) 

accurate assessment 

E) 

rational expectations 

42) 

It is most accurate to say that customers buy from stores and firms that offer ________. 

42) 

______ 

A) 

the most attractive company image 

B) 

the most concern for society's interests 

C) 

the highest value for the dollar 

D) 

the highest customer-perceived value 

E) 

the highest level of customer satisfaction 

43) 

________ is defined as the customer's evaluation of the differences between all the benefits and all the costs of a marketing offer relative to those of competing offers. 

43) 

______ 

A) 

Customer equity 

B) 

Customer-perceived value 

C) 

Marketing myopia 

D) 

Customer evangelism 

E) 

Customer satisfaction 

44) 

________ are customers who make repeat purchases and tell others about their positive experiences with a product or service. 

44) 

______ 

A) 

Customer spokespersons 

B) 

Satisfied customers 

C) 

Full partners 

D) 

Social customers 

E) 

Butterflies 

45) 

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

45) 

______ 

A) 

lowering prices 

B) 

decreasing the variety of services offered 

C) 

limiting customer experiences with a brand 

D) 

demarketing 

E) 

"firing" unprofitable customers 

46) 

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

46) 

______ 

A) 

club marketing program 

B) 

frequency marketing program 

C) 

partner relationship management technique 

D) 

structural benefit  

E) 

basic customer relationship 

47) 

Etisalat, the UAE based operator, was named by its customers "best in Dubai." Etisalat has a 24-hour customer contact center and provides its customers with a choice of 11 different payment methods. Etisalat is interested in ________. 

47) 

______ 

A) 

customer delight 

B) 

frequency marketing programs 

C) 

basic relationships 

D) 

customer-perceived value 

E) 

selective relationship management 

48) 

Which of the following equations refers to a delighted customer? 

48) 

______ 

A) 

Product performance > customer’s expectations 

B) 

Delighted customer < satisfied customer 

C) 

Product performance = customer’s expectations 

D) 

Product performance < customer’s expectations 

E) 

None of the above refer to customer delight 

49) 

Using customer profitability analysis to weed out unprofitable customers and to target winning ones for pampering is referred to as ________. 

49) 

______ 

A) 

database marketing 

B) 

marketing myopia 

C) 

customer relationship management 

D) 

selective relationship management 

E) 

positioning 

50) 

Ahmad Jaber, 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. Ahmad knows that  few successful firms still practice true ________ today and are instead turning to selective relationship management. 

50) 

______ 

A) 

frequency marketing 

B) 

customer satisfaction 

C) 

club marketing 

D) 

mass marketing 

E) 

market segmentation 

51) 

The toyota.com/hybrids website creates a community in which Prius, Camry, and Highlander hybrid 'believers' meet to share their reasons for buying hybrid vehicles, along with videos and messages on their experiences, both good and bad. This is an example of ________. 

51) 

______ 

A) 

a frequency marketing program 

B) 

a basic customer relationship 

C) 

a structural benefit provided for top customers 

D) 

a partner relationship 

E) 

an online social network 

52) 

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

52) 

______ 

A) 

traditional advertising 

B) 

e-mail 

C) 

online social networks 

D) 

video sharing 

E) 

websites 

53) 

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

53) 

______ 

A) 

More companies are implementing social marketing, and weighing long-term costs and benefits. 

B) 

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

C) 

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

D) 

The production concept and competition have lowered prices. 

E) 

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

54) 

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

54) 

______ 

A) 

interaction; intrusion 

B) 

interruption; involvement 

C) 

inspiration; competition 

D) 

producing; selling 

E) 

socialization; information 

55) 

To create customer value and build strong customer relationships, marketers know they cannot go it alone; therefore, they practice ________. 

55) 

______ 

A) 

partner relationship management 

B) 

consumer-generated marketing 

C) 

customer equity 

D) 

attractive website design 

E) 

database marketing 

56) 

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

56) 

______ 

A) 

only by marketing, sales, and customer-support 

B) 

only by marketing 

C) 

only by management and marketing 

D) 

only by sales and technology 

E) 

all 

57) 

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. 

57) 

______ 

A) 

equity marketing 

B) 

supply chain management 

C) 

customized marketing 

D) 

partnership relationship marketing 

E) 

direct marketing 

58) 

Saloma Chahine 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? 

58) 

______ 

A) 

outside partnering 

B) 

inside partnering 

C) 

customer development 

D) 

marketing 

E) 

supply chain 

59) 

The final step in the marketing process is ________. 

59) 

______ 

A) 

creating customer loyalty 

B) 

understanding the marketplace 

C) 

capturing value from customers 

D) 

creating customer lifetime value 

E) 

designing a customer-driven marketing strategy 

60) 

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

60) 

______ 

A) 

customer lifetime value 

B) 

profitability 

C) 

market share maintenance 

D) 

share of customer 

E) 

market share 

61) 

Advertising Age, a magazine for advertising professionals, recently gave its Ad Agency of the Year award to ________. 

61) 

______ 

A) 

Frito-Lay 

B) 

on-line marketers 

C) 

YouTube 

D) 

the consumer 

E) 

Coca-Cola 

62) 

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

62) 

______ 

A) 

Heinz's contest for commercials shot by customers 

B) 

Vodafone providing its "Give Me a Loan Please" service, which offers a limited credit to its prepaid customers. 

C) 

Nike Middle East running a region-wide football initiative designed to give young players the chance to train like their favorite stars 

D) 

Toyota's presence in online communities 

E) 

Procter & Gamble assigning customer development teams  to each of its major  retailer accounts. 

63) 

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

63) 

______ 

A) 

customer ownership 

B) 

customer lifetime value 

C) 

share of customer 

D) 

total customer spending 

E) 

customer satisfaction 

64) 

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

64) 

______ 

A) 

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

B) 

Marketers want to turn satisfied customers into delighted customers. 

C) 

Marketers want to increase their market share. 

D) 

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

E) 

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

65) 

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

65) 

______ 

A) 

Relationship selling 

B) 

Using bait and switch 

C) 

Cross-selling 

D) 

Targeting new customers 

E) 

Partnership marketing 

66) 

Amazon.com leverages relationships with its 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 ________. 

66) 

______ 

A) 

customer equity 

B) 

customer lifetime value 

C) 

share of customer 

D) 

share of market 

E) 

profit margin 

67) 

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

67) 

______ 

A) 

customer equity 

B) 

share of customer 

C) 

profitability 

D) 

share of market 

E) 

customer lifetime value 

68) 

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

68) 

______ 

A) 

customer equity 

B) 

market share 

C) 

a reliable database 

D) 

higher profit margins 

E) 

sales volume 

69) 

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

69) 

______ 

A) 

true friend 

B) 

butterfly 

C) 

barnacle 

D) 

true believer 

E) 

stranger 

70) 

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? 

70) 

______ 

A) 

butterflies 

B) 

big fish 

C) 

strangers 

D) 

true friends 

E) 

barnacles 

71) 

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

71) 

______ 

A) 

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

B) 

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

C) 

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

D) 

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

E) 

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

72) 

________ is currently the fastest-growing form of marketing. 

72) 

______ 

A) 

Word-of-mouth marketing 

B) 

Mass media marketing 

C) 

Consumer-generated marketing 

D) 

Social marketing 

E) 

Online marketing 

73) 

Today almost every company, small and large, is affected in some way by ________. 

73) 

______ 

A) 

caring capitalism 

B) 

global competition 

C) 

customer-generated marketing 

D) 

the societal marketing concept 

E) 

not-for-profit marketing 

74) 

Governmental agencies are becoming more involved in marketing as the years pass. When a local government advertises to discourage smoking, encourage birth control, and advise wise spending of money on important items, it is involved in ________. 

74) 

______ 

A) 

social marketing campaigns 

B) 

green marketing 

C) 

partnership marketing 

D) 

demarketing 

E) 

environmental marketing 

75) 

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

75) 

______ 

A) 

necessity 

B) 

need 

C) 

demand 

D) 

exchange 

E) 

transaction 

76) 

To reduce power usage, many power companies use ________ to encourage customers to have better energy use monitoring. 

76) 

______ 

A) 

target marketing 

B) 

marketing 

C) 

demarketing 

D) 

market segmentation 

E) 

the production concept 

77) 

Sara's Clothes is a small retail chain successfully selling women's clothing and accessories, which has a profitable focus on buyers who have relatively modest means. This is an example of ________. 

77) 

______ 

A) 

target marketing 

B) 

social marketing 

C) 

market segmentation 

D) 

convenience 

E) 

value packing 

78) 

Maya's firm markets preplanning services for a life insurance company. She finds that most of her target market wants to avoid discussing issues revolving around death, and she must somehow first get their attention. Maya's firm is most likely practicing the ________ concept. 

78) 

______ 

A) 

production 

B) 

marketing 

C) 

relationship 

D) 

selling 

E) 

societal marketing 

79) 

The computer maker Lenovo dominates the highly competitive, price-sensitive Chinese PC
market “through low labor costs, high production efficiency, and mass distribution”. This reflects the ________ concept. 

79) 

______ 

A) 

production 

B) 

societal marketing 

C) 

product 

D) 

selling 

E) 

marketing 

80) 

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

80) 

______ 

A) 

selling 

B) 

societal marketing 

C) 

product 

D) 

production 

E) 

marketing 

81) 

Which of the following statements reflects the marketing concept?  

81) 

______ 

A) 

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

B) 

"The supplier is king." 

C) 

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

D) 

"Marketing should be viewed as hunting and not gardening." 

E) 

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

82) 

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 ________ concept. 

82) 

______ 

A) 

product 

B) 

societal marketing 

C) 

selling 

D) 

production 

E) 

marketing 

83) 

Members of the sales team at Company XYZ only visit prospective customers who purchase a minimum of $50,000 of Product M per year. XYZ is using ________. 

83) 

______ 

A) 

selective relationship management 

B) 

demarketing 

C) 

a frequency marketing program 

D) 

a value proposition 

E) 

a club marketing program 

84) 

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, and frequently speaks about the need to deliver superior customer value and satisfaction. Your manager is concerned with which one of the following? 

84) 

______ 

A) 

the societal marketing concept 

B) 

website hits 

C) 

partner relationship management 

D) 

database management 

E) 

customer relationship management 

85) 

Samira 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, Samira was measuring her level of ________. 

85) 

______ 

A) 

customer lifetime value 

B) 

customer equity 

C) 

demand 

D) 

customer-perceived value 

E) 

customer satisfaction 

86) 

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

86) 

______ 

A) 

loyalty 

B) 

social relationships 

C) 

a societal marketing campaign 

D) 

relationship marketing 

E) 

customer-perceived value 

87) 

Mounir attempts to deliver customer satisfaction every day in his Lebanese restaurant. He is a smart manager who knows that the key to this goal is to match ________ with ________. 

87) 

______ 

A) 

relationship building; performance tools 

B) 

customer expectations; company performance 

C) 

company performance; competitive prices 

D) 

company performance; competition 

E) 

company performance; unique products 

88) 

Sonia works hard to create an emotional relationship between her Internet customers and the beauty products and services that she and her staff sell. By promoting a company culture that values exceptional value and service, Sonia aims to create customer ________ by going beyond the expected. 

88) 

______ 

A) 

equity 

B) 

satisfaction 

C) 

involvement 

D) 

value 

E) 

delight 

89) 

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

89) 

______ 

A) 

club programs 

B) 

basic partnerships 

C) 

full partnerships 

D) 

selective relationships 

E) 

basic relationships 

90) 

Malak, 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. Malak's plan is an example of ________. 

90) 

______ 

A) 

customer lifetime value 

B) 

partner relationship management 

C) 

selective relationship management 

D) 

consumer-generated marketing 

E) 

community development around a brand 

91) 

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 ________. 

91) 

______ 

A) 

enlisting customer evangelists 

B) 

converting "strangers" 

C) 

capturing customer lifetime value 

D) 

maintaining customer-perceived value 

E) 

attracting "butterflies" 

92) 

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 customer relationship group do these customers belong? 

92) 

______ 

A) 

barnacles 

B) 

strangers 

C) 

true friends 

D) 

butterflies 

E) 

short-term customers 

93) 

The Egyptian government designed a massive campaign aiming to gain people's trust of the tax-collection process. This is an example of ________. 

93) 

______ 

A) 

caring capitalism 

B) 

customer spokesperon 

C) 

societal marketing 

D) 

for-profit marketing 

E) 

not-for-profit marketing 

94) 

SEKEM's work relates to the production and marketing of a range of organic products. A number of specialized companies are involved, each working for sustainable development in relation to different fields such as economics, education, and health care. Actions such as this by companies seizing the opportunity to do well by doing good reflects ________.  

94) 

______ 

A) 

partnership management 

B) 

myopia 

C) 

environmentalism 

D) 

profit marketing 

E) 

social responsibility 

95) 

The IQRA’ Association developed a program called "Alkabir Yaqra’ Li-saghir" ("the older reads for the younger") which encouraged Lebanese youth, especially school students, to develop reading as a lifelong habit. The coverage of this program was in print media, radio, television as well as online. This is an example of a(n) ________ campaign. 

95) 

______ 

A) 

social marketing 

B) 

ethical 

C) 

for-profit 

D) 

consumer-generated 

E) 

differentiated 

Refer to the scenario below to answer the following questions.
	Riham Wafaie, owner of Seagull Terrace, watched her investment grow from a small, seaside motel to a booming year-round resort in just a few years. In a prime location, overlooking the sea, 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 a major business city," Riham added, "I couldn't understand why seasonality had to hit Seagull Terrace so hard!"
	So Riham spent her first winter devising a new marketing plan. She put together a promotional package designed to attract business travellers year-round. Riham's plan, then, involved a seasonal promotional gimmick (an attention-grabber) 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, Riham greeted numerous business travellers — both satisfied repeat guests as well as new ones who had been attracted by her promotional appeals.
	"We still have a long way to go," Riham admitted. "Our food store 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." Riham then added, "Actually there are so many possibilities! With an indoor pool area, I will eventually offer weekend getaways throughout winter."

96) 

Which groups are specifically part of Seagull Terrace's target market? 

96) 

______ 

A) 

athletes 

B) 

young families 

C) 

seasonal business travelers 

D) 

retirees 

E) 

summer campers 

97) 

Riham Wafaie's use of "promotional gimmicks (attention-grabbers)" is an example of the ________ concept. 

97) 

______ 

A) 

marketing 

B) 

selling 

C) 

societal marketing 

D) 

production 

E) 

product 

98) 

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

98) 

______ 

A) 

selling 

B) 

product 

C) 

marketing 

D) 

production 

E) 

societal marketing 

99) 

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

99) 

______ 

A) 

product 

B) 

selling 

C) 

societal 

D) 

production 

E) 

marketing 

TRUE/FALSE.  Write 'T' if the statement is true and 'F' if the statement is false. 

100) 

Selling is managing profitable customer relationships. 

100) 

_____ 

101) 

Human needs are shaped by culture and individual personality. 

101) 

_____ 

102) 

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

102) 

_____ 

103) 

When backed by buying power, needs become demands. 

103) 

_____ 

104) 

Market offerings are limited to physical products. 

104) 

_____ 

105) 

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

105) 

_____ 

106) 

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

106) 

_____ 

107) 

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

107) 

_____ 

108) 

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

108) 

_____ 

109) 

Demarketing is a marketing philosophy focused upon product differentiation and positioning. 

109) 

_____ 

110) 

When it becomes necessary to reduce demand for a product or service, an organization may use demarketing to reduce or shift the number of customers. 

110) 

_____ 

111) 

The production concept and product concept are orientations that can lead to marketing myopia. 

111) 

_____ 

112) 

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. 

112) 

_____ 

113) 

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

113) 

_____ 

114) 

Your department believes 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. 

114) 

_____ 

115) 

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. 

115) 

_____ 

116) 

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

116) 

_____ 

117) 

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

117) 

_____ 

118) 

The marketing mix includes production, price, promotion, and packaging; this is known as the four Ps of marketing. 

118) 

_____ 

119) 

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. 

119) 

_____ 

120) 

With selective relationship management, companies use customer profitability analysis to eliminate losing customers and target winning ones. 

120) 

_____ 

121) 

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

121) 

_____ 

122) 

Consumer-generated marketing, a relatively new phenomenon, has so far had little impact as a marketing force. 

122) 

_____ 

123) 

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

123) 

_____ 

124) 

Web 2.0 is distinguished by its poorly conceived e-tailers and Web start-ups. 

124) 

_____ 

SHORT ANSWER.  Write the word or phrase that best completes each statement or answers the question. 

125) 

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

125)  

____________ 

126) 

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

126)  

____________ 

127) 

A modern marketing system relies on profitable relationships all along the way. How might Géant rely on suppliers and other marketing partners in order to offer high quality goods at attractive prices? 

127)  

____________ 

128) 

Imagine that when demand for a product is at its highest, a manufacturer decides to purposefully maintain strong demand by limiting supply, therefore driving prices up. If this were the case, explain how such manufacturers would NOT be carrying out the production concept. 

128)  

____________ 

129) 

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? 

129)  

____________ 

130) 

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. 

130)  

____________ 

131) 

In Lebanon, street hawkers like Abou Hassan sell watermelons while shouting to passers by, "3al-sikin ya batikh." to attract their attention and entice the purchaser to check how good and fresh the watermelon is. Is Abou Hassan taking an outside-in or inside-out perspective? Explain. 

131)  

____________ 

132) 

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

132)  

____________ 

133) 

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

133)  

____________ 

134) 

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

134)  

____________ 

135) 

How can a marketer increase "share of customer"? 

135)  

____________ 

136) 

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

136)  

____________ 

137) 

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

137)  

____________ 

138) 

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

138)  

____________ 

139) 

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

139)  

____________ 

ESSAY.  Write your answer in the space provided or on a separate sheet of paper. 

140) 

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

141) 

Explain how and why marketers go beyond selling a product or service to create brand experiences.  

142) 

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

143) 

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

144) 

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

145) 

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

146) 

In a short essay, discuss the challenges and advantages that new communication technologies have created for marketers. 

147) 

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

148) 

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. 

149) 

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

 

1) 

C 

2) 

D 

3) 

D 

4) 

D 

5) 

B 

6) 

D 

7) 

B 

8) 

C 

9) 

C 

10) 

C 

11) 

A 

12) 

B 

13) 

E 

14) 

C 

15) 

E 

16) 

A 

17) 

D 

18) 

A 

19) 

D 

20) 

D 

21) 

C 

22) 

C 

23) 

A 

24) 

C 

25) 

B 

26) 

A 

27) 

B 

28) 

D 

29) 

D 

30) 

D 

31) 

E 

32) 

A 

33) 

B 

34) 

E 

35) 

E 

36) 

C 

37) 

E 

38) 

C 

39) 

D 

40) 

E 

41) 

C 

42) 

D 

43) 

B 

44) 

A 

45) 

A 

46) 

B 

47) 

A 

48) 

A 

49) 

D 

50) 

D 

51) 

E 

52) 

A 

53) 

B 

54) 

A 

55) 

A 

56) 

E 

57) 

B 

58) 

E 

59) 

C 

60) 

A 

61) 

D 

62) 

A 

63) 

C 

64) 

E 

65) 

C 

66) 

C 

67) 

A 

68) 

A 

69) 

B 

70) 

D 

71) 

D 

72) 

E 

73) 

B 

74) 

A 

75) 

C 

76) 

C 

77) 

A 

78) 

D 

79) 

A 

80) 

C 

81) 

C 

82) 

B 

83) 

A 

84) 

E 

85) 

E 

86) 

E 

87) 

B 

88) 

E 

89) 

E 

90) 

D 

91) 

C 

92) 

A 

93) 

E 

94) 

E 

95) 

A 

96) 

C 

97) 

B 

98) 

B 

99) 

E 

100) 

FALSE 

101) 

FALSE 

102) 

TRUE 

103) 

FALSE 

104) 

FALSE 

105) 

TRUE 

106) 

FALSE 

107) 

FALSE 

108) 

FALSE 

109) 

FALSE 

110) 

TRUE 

111) 

TRUE 

112) 

TRUE 

113) 

FALSE 

114) 

FALSE 

115) 

FALSE 

116) 

TRUE 

117) 

FALSE 

118) 

FALSE 

119) 

TRUE 

120) 

TRUE 

121) 

TRUE 

122) 

FALSE 

123) 

FALSE 

124) 

FALSE 

125) 

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

126) 

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

127) 

Géant must rely on suppliers that will provide good quality merchandise at low cost, a low-cost and efficient distribution system, an accurate and efficient customer relationship database system, and a strong partnership with each of the members of its supply chain. 

128) 

The production concept holds that consumers favor products that are available and affordable. With this concept, manufacturers work to increase production and improve manufacturing efficiency, and thus eventually lower the price paid by the consumer. 

129) 

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?" 

130) 

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. 

131) 

The vendor's approach was inside-out. The watermelon is available. The vendor's job was then to attract willing buyers. 

132) 

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. 

133) 

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

134) 

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. 

135) 

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. 

136) 

"Butterflies" are profitable but not loyal. Marketers should enjoy this type of customer "for the moment" because they soon flutter off. They 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.  

137) 

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

138) 

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. 

139) 

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

140) 

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, a Muslim needs food to break the fast during Ramadan but wants dates, harees, and laban drink. A child needs food but wants a Big Mac, French fries, and a soft drink. When backed by buying power, wants become demands. The child with ten dollars needs food, wants a Big Mac and soft drink, and demands lunch at mcdonald's.  Marketers conduct extensive research to understand customers' wants and demands. They then attempt to fulfill customers' wants and demands through their market offerings. 

141) 

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. 

142) 

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 on 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.   

143) 

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. Johnson & Johnson is an example of a company that has successfully implemented the societal marketing concept. The organization stresses honesty, integrity, and putting people before profits, an ethic that helped Johnson & Johnson quickly address and recover from the poisonous tampering of Tylenol capsules in 1982.

As another example, The National Bank of Kuwait (NBK) focuses both on making profit and helping society by engaging in activities such as feeding the poor in the month of Ramadan and
arranging a walkathon every year to increase health awareness. 

144) 

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 key partnerships with select 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. Another approach adds structural ties to the aforementioned financial and social benefits. Hence, 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.  

145) 

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"  or "customer spokespersons" who tell other potential customers about their positive experiences with the product. 

146) 

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, websites, 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. 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. 

147) 

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. 

148) 

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. 

149) 

The Internet links individuals and businesses of all types to each other. The Internet allows firms access to exciting new marketspaces. The Internet has spawned an entirely new breed of "click only" companies the "dot-coms." The post-Internet frenzy of the late 1990s has introduced companies that are both savvy and face promising futures. These companies use a set of new Web technologies to reach customers, including blogs (web logs), vlogs (video-based logs), and social networking sites. "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 65% of American Internet users now shop online, making a web presence a necessity for any organization. Although e-commerce penetration in the Arab world has not grown at the same pace, it has certainly become more familiar in some specific industries such as airlines, hotels, and jewelry.