Buad 3010 Text Bank Chp 1

Marketing An Introduction, 11e (Arm substantial) Chapter 1 Marketing Creating and Capturing client Value 1) ________ is defined as a loving and managerial process by which individual(a)s and shapings obtain what they use up and want through creating and exchanging harbor with separates. A) Value reengineering B) homo resource counseling C) Financing D) Marketing E) Root cause analysis invite out D rogue referee 5 both(prenominal)er tripping Chapter LO 1 vogue LO debate the thorough imaginations of market 2) The prototypic step in the selling process is ________.A) capturing honor from clients to create pro rivals and client faithfulness B) constructing an combine trade course that resigns top nonch rate C) mental synthesis advantageous races and creating client delight D) understanding the mart and customer ask and wants E) designing a customer-driven market strategy purpose D rascal reader 6 obstacle obligate Chapter LO 1 run for LO hand le the wake slight ideals of trade 3) ________ argon states of snarl deprivation. A) Needs B) Desires C) Demands D) Values E) Exchanges unattackableness of purpose A rascal reader 6 hassle Easy Chapter LO 2 cargoner LO talk over the ingrained plans of market 4) ________ argon human postulate as shaped by individual personality and culture. A) Offerings B) Wants C) Demands D) Values E) Exchanges fare B page reader 6 difficulty Easy Chapter LO 2 figure LO handle the thoroughgoing concepts of selling 5) When backed by debauching power, wants manufacture ________. A) well-disposed necessitate B) demands C) physical needs D) self-esteem needs E) exchanges practise B foliate reader 6 encumbrance Easy Chapter LO 2 configuration LO wrangle the essential concepts of merchandising 6) Abel presently has the purchase power to purchase the computer that he wanted for the last six months. Abels want has now become a(n) ________. A) need B) necessity C) demand D) fate E) desire effect C rascal ref 6 hindrance Ch all(prenominal)enging Chapter LO 2 AACSB uninflected skills stratum LO talk about the total concepts of market 7) ________ refers to the mistake of paying(a) to a great extent attention to the specific products a attach to convolutions than to the benefits and experiences produced by these products.A) Buyers remorse B) Out-of-home advertising C) Caveat emptor D) Marketing myopia E) Winners curse cause D rascal referee 7 difficultness head Chapter LO 2 trend LO establish the positive concepts of selling 8) The art and science of choosing target markets and expression profitable relationships with them is called ________. A) merchandise way B) market capitalization C) market liquidity D) market buzz E) selling liberalization termination A scallywag reader 9 barrier Easy Chapter LO 3 Course LO Discuss the complete concepts of merchandise ) Selecting particular segments of a population of customers to inspection and repair is called ________. A) apprize reengineering B) brand synchronizing C) mass customizing D) target selling E) selective administering Answer D scallywag reader 9 Difficulty checker Chapter LO 3 Course LO Discuss the primordial concepts of selling 10) The BakeWay Bite is a popular cookie sandwich marketed by the Posco Division of Home viandss. It is storied for its white cream-filled center. Home Foods created a different version of these biscuits for consumers in Ger more.To appeal to German consumers, Home Food created dark chocolate filling for the same cookie sandwiches. This is an example of ________. A) bulk breaking B) cost leading C) diversification D) target trade E) vertical integration Answer D rogue Ref 9 Difficulty contest Chapter LO 3 AACSB uninflected skills Course LO Discuss the first harmonic concepts of selling 11) A brands ________ is the plant of benefits or delimit it promises to deliver to consumers to fill up their nee ds. A) dominant affect B) fringe benefit C) cardinality D) time value propositionE) ingrained benefit Answer D foliate Ref 9 Difficulty Easy Chapter LO 3 Course LO Discuss the fundamental concepts of marketing 12) Which of the following marketing oversight concepts is approximately likely to lead to marketing myopia? A) the customer-driven marketing concept B) the customer-driving marketing concept C) the societal marketing concept D) the marketing concept E) the payoff concept Answer E Page Ref 10 Difficulty extend Chapter LO 3 Course LO Discuss the fundamental concepts of marketing 13) The output signal concept holds that ________.A) consumers get out not buy teeming of the firms products unless the firm undertakes a spectacular-scale selling and forward motion effort B) a partys marketing decisions should consider consumers wants, the federations requirements, consumers long haul interests, and societys long haul interests C) consumers result respect products tha t are available and highly cheap D) achieving organizational goals depends on versed the needs and wants of target markets and delivering the desired satisfactions smash than competitors do E) consumers will favor products that offer the most in quality, writ of execution, and innovative features Answer CPage Ref 10 Difficulty Moderate Chapter LO 3 Course LO Discuss the fundamental concepts of marketing 14) Henry Fords school of thought was to perfect the Model-T so that its cost could be reduced further for change magnitude consumer affordability. This reflects the ________. A) customer-driving marketing concept B) marketing concept C) societal marketing concept D) production concept E) selling concept Answer D Page Ref 10 Difficulty contend Chapter LO 3 AACSB analytic skills Course LO Discuss the fundamental concepts of marketing 5) According to the product concept, a company should ________. A) rectify marketing of its best(p) products only B) market only those products that hit high customer appeal C) focus on the target market and catch products that meet those customers demands D) devote its energy to fashioning continuous product improvements E) make promoting products the companys top priority Answer D Page Ref 10 Difficulty Moderate Chapter LO 3 Course LO Discuss the fundamental concepts of marketing 16) The selling concept holds that ________.A) consumers will not buy becoming of the firms products unless the firm undertakes a large-scale selling and promotion effort B) a companys marketing decisions should consider consumers wants, the companys requirements, consumers long-run interests, and societys long-run interests C) consumers will favor products that are available and highly low-priced D) achieving organizational goals depends on discriminating the needs and wants of target markets and delivering the desired satisfactions better than competitors do E) consumers will favor products that offer the most in quality, per manikinanc e, and innovative features Answer APage Ref 10 Difficulty Moderate Chapter LO 3 Course LO Discuss the fundamental concepts of marketing 17) Which of the following reflects the marketing concept philosophy? A) We dont have a marketing department, we have a customer department. B) Were in the business of making and selling maestro products. C) We build them so you bay window buy them. D) When its profits versus customers needs, profits will always win out. E) You wont predominate a better deal anywhere else. Answer A Page Ref 10-11 Difficulty Moderate Chapter LO 3Course LO Discuss the fundamental concepts of marketing 18) The ________ concept holds that achieving organizational goals depends on dealing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. A) marketing B) product C) production D) selling E) societal marketing Answer A Page Ref 10 Difficulty Easy Chapter LO 3 Course LO Discuss the fundamental concepts of marketin g 19) customer-driven marketing is most likely to mold puff up when ________ and when customers ________. A) a clear need exists are difficult to identifyB) customers do not know what they want have express budgets C) on that point are a couple of(prenominal) competitors are concerned about their long-run welfare D) a clear need exists know what they want E) a want exists behindnot afford it Answer D Page Ref 11 Difficulty Moderate Chapter LO 3 Course LO Discuss the fundamental concepts of marketing 20) When customers dont know what they want or dont how incessantly know whats practicable, the most effective strategy is ________ marketing. A) customer-driven B) customer-driving C) societal D) production E) product Answer B Page Ref 11 Difficulty Moderate Chapter LO 3Course LO Discuss the fundamental concepts of marketing 21) Josie enjoys her work at Futuristic Designs Inc. Her organization understands and anticipates customer needs even better than customers themselves do a nd creates products and work to meet existing and latent needs, now and in the future. Josies firm practices ________ marketing. A) product concept B) customer-driving C) societal D) obliger E) production concept Answer B Page Ref 11 Difficulty Challenging Chapter LO 3 AACSB Analytic skills Course LO Discuss the fundamental concepts of marketing 22) The societal marketing concept holds that ________.A) consumers will not buy enough of the firms products unless the firm undertakes a large-scale selling and promotion effort B) a companys marketing decisions should consider consumers wants, the companys requirements, consumers long-run interests, and societys long-run interests C) the society will favor products that are available and highly affordable D) achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do E) consumers will favor products that offer the most in quality, performanc e, and innovative features Answer BPage Ref 11 Difficulty Moderate Chapter LO 3 Course LO Discuss the fundamental concepts of marketing 23) The societal marketing concept seeks to establish a eternal sleep betwixt consumer short-run wants and consumer ________. A) short-run be B) short-run benefits C) long-run welfare D) long-run costs E) long-run reputation Answer C Page Ref 11 Difficulty Easy Chapter LO 3 Course LO Discuss the fundamental concepts of marketing 24) Some fast-food restaurants offer tasty and convenient food at affordable prices, but in doing so they contribute to the national obesity epidemic and environmental problems.These fast-food restaurants overlook the ________ concept. A) marketing B) product C) production D) societal marketing E) selling Answer D Page Ref 11 Difficulty Moderate Chapter LO 3 AACSB Ethical understanding and reasoning abilities Course LO Discuss the fundamental concepts of marketing 25) ________ marketing is socially and environmentally res ponsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. A) Customer-driven B) Mass C) SustainableD) Customer-driving E) Differential Answer C Page Ref 11 Difficulty Moderate Chapter LO 3 Course LO Discuss the fundamental concepts of marketing 26) The overall process of build and maintaining profitable customer relationships by delivering superior customer value and satisfaction is called ________. A) customer lifetime management B) societal marketing C) customer relationship management D) database marketing E) sustainable customer management Answer C Page Ref 13 Difficulty Moderate Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 7) Which of the following terms refers to a customers military rank of the difference between all the benefits and all the costs of a marketing offer congener to those of competing offers? A) customer-perceived value B) custom er-oriented brand equity C) customer-perceived performance D) customer-oriented promotional assortment E) customer-oriented price mix Answer A Page Ref 13 Difficulty Moderate Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 28) Nickson released a sore range of watches that were titled after the historied mountaineer Adam Wills.These new watches were promoted through claims that the design is a favorite of Adam Wills who use a similar watch designed by Nickson for its high durability and quality on his expeditions. Such a measure to entice customers to buy ones products aims at creating ________. A) customer equity B) relationship marketing campaign C) customer-perceived value D) equitable relationship E) societal marketing campaign Answer C Page Ref 13 Difficulty Challenging Chapter LO 4 AACSB Analytic skills Course LO Discuss the fundamental concepts of marketing 29) Sally purchased the newly launched Jolie lotion.By attempting to find out if the lotions perc eived performance matches her expectations, Sally was measuring her level of customer ________. A) perceived value B) satisfaction C) equity D) engagement E) lifetime value Answer B Page Ref 14 Difficulty Challenging Chapter LO 4 AACSB Analytic skills Course LO Discuss the fundamental concepts of marketing 30) Ryan attempts to deliver customer satisfaction every day in his installation business, Audio Expressions. The unwrap to achieving this goal is to match the customer-perceived performance of his product with ________. A) company projectionsB) customer set C) customer expectations D) customer relationship levels E) company expectations Answer C Page Ref 14 Difficulty Challenging Chapter LO 4 AACSB Analytic skills Course LO Discuss the fundamental concepts of marketing 31) Bill recently bought a BMW M3. Bill had several preconceived notions on the elegance and reliability of the car. After the purchase, he discovered that the car had a lot more attributes than he initially per ceived. Hence, it created an worked up relationship with the car resulting in ________. A) customer delight B) customer satietyC) customer equity D) customer value E) customer engagement Answer A Page Ref 14 Difficulty Challenging Chapter LO 4 AACSB Analytic skills Course LO Discuss the fundamental concepts of marketing 32) Which of the following terms refers to the customers who make repeat purchases and notify others about their positive experiences with a product or service? A) hyper-satisfied customers B) customer evangelists C) viral marketing D) relationship partners E) social customers Answer B Page Ref 14 Difficulty Moderate Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 3) Companies posterior build customer relationships at many levels, depending on the temper of the target market. Hence, a company with few customers and high margins is most likely to seek to develop ________ with key customers. A) full partnerships B) staple fibre relationships C) selective relationships D) categorical partnerships E) community relationships Answer A Page Ref 16 Difficulty Moderate Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 34) You are an assistant marketing director for a firm in a market with many low-margin customers.Which of the following types of relationships would be most profitable for you to develop with these customers? A) full partnerships B) basic relationships C) categorical partnerships D) selective relationships E) community relationships Answer B Page Ref 16 Difficulty Challenging Chapter LO 4 AACSB Analytic skills Course LO Discuss the fundamental concepts of marketing 35) The Niketown running club that organizes twice weekly evening runs for Nike customers is an example of a ________. A) frequency marketing program B) customer-driven marketing event C) club marketing programD) consumer-generated marketing program E) sustainable marketing event Answer C Page Ref 16 Difficulty Challenging Chapter LO 4 AACSB Analytic skills Course LO Discuss the fundamental concepts of marketing 36) Greater consumer control means that companies must rely more on marketing by ________ rather than marketing by ________. A) interruption inter-group communication B) tenderness intrusion C) socialization breeding D) producing selling E) inspiration competition Answer B Page Ref 18 Difficulty Moderate Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 7) Which of the following is an example of consumer-generated marketing? A) Toyotas page on Facebook which provides development about its upcoming cars to its customers B) Nikes Nike Plus electronic network site which helps its customers to customize their shoes C) BMWs use of brand- think videos affix on video-sharing Web sites by its customers D) Neiman Marcuss InCircle Rewards program for its best customers E) the Lexus Covenant aimed at creating customer delight Answer C Page Ref 19 Difficulty Challenging Chapter LO 4 AACSB An alytic skills Use of information technology Course LO Discuss the fundamental concepts of marketing 8) Ellis, a marketing manager at a regional chain restaurant, has influenced to create a contest calling for customers to create commercials for the restaurant. Winning entries will be posted on the organizations home page. Ellis plan is an example of ________ marketing. A) consumer-generated B) sustainable C) customer club D) differential E) mass Answer A Page Ref 19 Difficulty Challenging Chapter LO 4 AACSB Analytic skills Course LO Discuss the fundamental concepts of marketing 39) ________ describes a longer channel, stretching from raw materials to components to final products that are carried to final buyers.A) The tot up chain B) Direct marketing C) Partnership relationship marketing D) DSS E) CRM Answer A Page Ref 20 Difficulty Easy Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 40) The final step in the marketing process is ________. A) capturing value from customers B) constructing an integrated marketing program C) building profitable relationships with the customers D) understanding the mart E) designing a customer-driven marketing strategy Answer A Page Ref 20 Difficulty Moderate Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 1) At Kens boutique, the policy statement posted in the reception states that Without our customers, we dont exist. Ken and his staff aim to delight separately customer and they are quick to offer discounts or extra services whenever a customer is anything less than satisfied. Instead of pore on each individual transaction, Ken and his staff are putting a priority on ________. A) maintaining customer-perceived value B) managing partner relationships C) attracting butterflies D) converting strangers into butterflies E) capturing customer lifetime value Answer E Page Ref 21 Difficulty Challenging Chapter LO 4AACSB Analytic skills Course LO Discuss the fundamental concepts of marketi ng 42) ________ refers to the piece of ground of the customers purchase that a company gets in its product categories. A) Value proposition B) Share of customer C) tick off equity D) Customer ownership E) Customer equity Answer B Page Ref 21 Difficulty Moderate Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 43) ________ is the total combined customer lifetime values of all the companys current and electromotive force customers. A) Share of customer B) Customer payoff C) Customer equity D) Customer cardinality E) Customer perceived value Answer CPage Ref 22 Difficulty Moderate Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 44) The ultimate aim of customer relationship management is to produce ________. A) high customer equity B) high current market share C) steady sales volume D) high customer payoff E) profit maximization Answer A Page Ref 22 Difficulty Moderate Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 45) C ustomers can be classified into four relationship groups, gibe to their profitability and projected loyalty. Based on this classification, you should avoid ________ and shouldnt spend anything in them.A) barnacles B) strangers C) butterflies D) true believers E) true friends Answer B Page Ref 22-23 Difficulty Easy Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 46) Customers can be classified into four relationship groups, according to their profitability and projected loyalty. According to this classification, a highly profitable, short-term customer is known as a ________. A) true friend B) butterfly C) stranger D) barnacle E) true believer Answer B Page Ref 23 Difficulty Easy Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 7) Customers can be classified into four relationship groups, according to their profitability and projected loyalty. With reference to this classification, a firm should turn true friends into ________, who come back regularly and promulgate others about their good experiences with the company. A) barnacles B) butterflies C) strangers D) true believers E) stars Answer D Page Ref 23 Difficulty Easy Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 48) Carla, a team leader in charge of customer relationship management, is planning strategies for modify the profitability of her firms least rofitable but loyal customers. She is also examining methods for firing customers in this group who cannot be do profitable. To which of the following customer relationship groups do these customers belong? A) butterflies B) true friends C) strangers D) barnacles E) short-term customers Answer D Page Ref 23 Difficulty Challenging Chapter LO 4 AACSB Analytic skills Course LO Discuss the fundamental concepts of marketing 49) Which of the following has been the most common consumer response to the economic downturn that began in 2008? A) outlay more on luxury items B) discontinuing any spendi ng on luxury itemsC) spending less and choosing products more carefully D) spending more on leisure and travel E) saving more and spending more on food market items Answer C Page Ref 24 Difficulty Easy Chapter LO 5 50) Your states department of health has budgeted a significant amount of money for a radio, print, television, and online advertising campaign emphasizing the ill do of smoking. This is an example of a(n) ________ campaign. A) moral principleal B) social marketing C) for-profit D) consumer-generated E) differentiated Answer B Page Ref 28 Difficulty Challenging Chapter LO 5 AACSB Analytic skillsCourse LO Discuss the fundamental concepts of marketing 51) With its marketing strategy chosen, the company constructs an integrated marketing program consisting of a blend of marketing mix elements called the ________, that transforms the marketing strategy into corpo very value for customers. A) three stars B) customer values C) four Ps D) perceived attributes E) five domain s Answer C Page Ref 29 Difficulty Moderate Chapter LO 5 Course LO Discuss the fundamental concepts of marketing 52) Marketing is managing profitable customer relationships. Answer line up Page Ref 5 Difficulty Moderate Chapter LO 1Course LO Discuss the fundamental concepts of marketing 53) The twofold goal of marketing is to attract new customers by brilliant superior value and to keep and grow current customers by delivering satisfaction. Answer square(a) Page Ref 5 Difficulty Moderate Chapter LO 1 Course LO Discuss the fundamental concepts of marketing 54) Wants are the form human needs take as they are shaped by culture and individual personality. Answer square Page Ref 6 Difficulty Moderate Chapter LO 2 Course LO Discuss the fundamental concepts of marketing 55) The difference between human needs and wants is that needs are not influenced by marketers.Answer TRUE Page Ref 6 Difficulty Moderate Chapter LO 2 Course LO Discuss the fundamental concepts of marketing 56) When back ed by buying power, needs become wants. Answer saturnine Page Ref 6 Difficulty Moderate Chapter LO 2 Course LO Discuss the fundamental concepts of marketing 57) Market whirls are limited to physical products. Answer fancied Page Ref 6 Difficulty Easy Chapter LO 2 Course LO Discuss the fundamental concepts of marketing 58) Market offerings can include products, services, information, or experiences offered to a market to retaliate a need or want.Answer TRUE Page Ref 6 Difficulty Easy Chapter LO 2 Course LO Discuss the fundamental concepts of marketing 59) When sellers pay less attention to the specific products they offer and more attention to the benefits and experiences produced by these products, they suffer from marketing myopia. Answer counterfeit Page Ref 7 Difficulty Moderate Chapter LO 2 Course LO Discuss the fundamental concepts of marketing 60) If marketers set consumer expectations too low, they may satisfy those who buy but fail to attract enough buyers. Answer TRU E Page Ref 7 Difficulty Easy Chapter LO 2 1) The process of dividing the market into segments of customers is known as market penetration. Answer FALSE Page Ref 9 Difficulty Moderate Chapter LO 3 Course LO Discuss the fundamental concepts of marketing 62) Marketing managers are interested in serving all customers in every way to delay competitive in todays markets. Answer FALSE Page Ref 9 Difficulty Moderate Chapter LO 3 Course LO Discuss the fundamental concepts of marketing 63) A brands value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs. Answer TRUE Page Ref 9Difficulty Easy Chapter LO 3 Course LO Discuss the fundamental concepts of marketing 64) The production concept and product concept are orientations that can lead to marketing myopia. Answer TRUE Page Ref 10 Difficulty Easy Chapter LO 3 Course LO Discuss the fundamental concepts of marketing 65) Nickson Cameras has developed a new design for cameras that their staff believes will offer the most in terms of quality, performance, and innovative features. Nickson Cameras is practicing the production concept here. Answer FALSE Page Ref 10 Difficulty Moderate Chapter LO 3 AACSB Analytic skillsCourse LO Discuss the fundamental concepts of marketing 66) The selling concept holds that consumers will not buy enough of the firms products unless it undertakes a large-scale selling and promotion effort. Answer TRUE Page Ref 10 Difficulty Easy Chapter LO 3 Course LO Discuss the fundamental concepts of marketing 67) The study difference between customer-driving marketing and customer-driven marketing is that the customer-driving marketing considers only existing needs. Answer FALSE Page Ref 11 Difficulty Moderate Chapter LO 3 Course LO Discuss the fundamental concepts of marketing 8) The societal marketing concept holds that a companys marketing decisions should consider consumers wants, the companys requirements, consumers long-run interests, and societys long-run interests. Answer TRUE Page Ref 11 Difficulty Moderate Chapter LO 3 Course LO Discuss the fundamental concepts of marketing 69) convergence, price, place, and promotion make up the elements of a firms marketing mix. Answer TRUE Page Ref 12 Difficulty Easy Chapter LO 3 Course LO Discuss the fundamental concepts of marketing 70) In its broadest sense, customer relationship management (CRM) is a customer data management activity.Answer FALSE Page Ref 13 Difficulty Moderate Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 71) Customer value is defined as the customers 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 Page Ref 13 Difficulty Moderate Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 72) To all consumers, value means sensible products at affordable prices. Answer FALSE Page Ref 13 Difficulty Easy Chapter LO 4 Course LO Dis cuss the fundamental concepts of marketing 3) Customer-perceived value depends on the products perceived performance relative to a buyers expectations. Answer FALSE Page Ref 14 Difficulty Moderate Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 74) In markets with few customers and high margins, sellers should try to develop basic relationships rather than full partnerships. Answer FALSE Page Ref 16 Difficulty Moderate Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 75) Club marketing programs reward customers who buy frequently or in large amounts. Answer FALSEPage Ref 16 Difficulty Moderate Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 76) Greater consumer control means that companies can no longer rely on marketing by attraction. Answer FALSE Page Ref 18 Difficulty Moderate Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 77) Through consumer-generated marketing, consumers themselves are playing a big role in shaping their own brand experiences and those of others. Answer TRUE Page Ref 19 Difficulty Easy Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 8) In addition to being good at customer relationship management, marketers must also work closely with others inside and outside the company to jointly bring more value to customers. Answer TRUE Page Ref 20 Difficulty Moderate Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 79) Success at delivering customer value rests on how well their entire supply chain performs against competitors supply chains. Answer TRUE Page Ref 20 Difficulty Easy Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 80) Customer equity is a measure of the past value of the companys customer base.Answer FALSE Page Ref 22 Difficulty Moderate Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 81) Customers can be classified into four relationship groups, according to their prof itability and projected loyalty. With reference to this classification, barnacles are potentially profitable but not loyal. Answer FALSE Page Ref 23 Difficulty Moderate Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 82) Ever since the Great Recession, marketers are focusing on value-for-the-money, practicality, and durability in their product offerings and marketing pitches.Answer TRUE Page Ref 24 Difficulty Easy Chapter LO 5 Course LO Discuss the fundamental concepts of marketing 83) Most traditional brick-and-mortar companies have now become click-and-mortar companies. Answer TRUE Page Ref 27 Difficulty Easy Chapter LO 5 Course LO Discuss the fundamental concepts of marketing 84) In the final step, the company reaps the rewards of its strong customer relationships by capturing value from customers. Answer TRUE Page Ref 30 Difficulty Moderate Chapter LO 5 Course LO Discuss the fundamental concepts of marketing 5) What is marketing? Briefly describe the marketi ng process. Answer We define marketing as the process by which companies create value for customers and build strong customer relationships in order to get down value from customers in return. The marketing process consists of five steps. In the first four steps (Understand the marketplace and customer needs and wants, Design a customer-driven marketing strategy, Construct an integrated marketing program that delivers superior value, and Build profitable relationships and create customer delight), companies work to understand onsumers, create customer value, and build strong customer relationships. In the final step (Capture value from customers to create profits and customer equity), companies reap the rewards of creating superior customer value. By creating value for consumers, they in turn capture value from consumers in the form of sales, profits, and semipermanent customer equity. Page Ref 5-6 Difficulty Moderate Chapter LO 1 Course LO Discuss the fundamental concepts of marke ting 86) 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. contradictory 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 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 and then attempt to fulfill customers wants and demands through their market off erings. Page Ref 6 Difficulty Challenging Chapter LO 2 AACSB Analytic skills Course LO Discuss the fundamental concepts of marketing 87) Explain market offerings and marketing myopia. Answer Consumers needs and wants are fulfilled through market offerings just about combination of products, services, information, or experiences offered to a market to satisfy a need or a want.Market offerings are not limited to physical products. They also include servicesactivities or benefits offered for sale that are fundamentally intangible and do not result in the ownership of anything. Examples include banking, airline, hotel, retailing, and home repair services. more(prenominal) broadly, market offerings also include other entities, such as persons, places, organizations, information, and ideas. Many sellers make the mistake of paying more attention to the specific products they offer than to the benefits and experiences produced by these products. These sellers suffer from marketing myopia.T hey are so interpreted with their products that they focus only on existing wants and lose sight of underlying customer needs. They forget that a product is only a tool to solve a consumer problem. A manufacturer of quarter-inch drill bits may think that the customer needs a drill bit. But what the customer really needs is a quarter-inch hole. These sellers will have trouble if a new product comes along that distributes the customers need better or less expensively. The customer will have the same need but will want the new product. Page Ref 6-7 Difficulty Moderate Chapter LO 2 Course LO Discuss the fundamental concepts of marketing 8) How does a company decide whom it will serve? Answer A company decides whom it will serve by dividing the market into segments of customers (market segmentation) and selecting which segments it will go after (target marketing). Some mint think of marketing management as finding as many customers as possible and increasing demand. But marketing manag ers know that they cannot serve all customers in every way. By trying to serve all customers, they may not serve any customers well. Instead, the company wants to select only customers that it can serve well and profitably.Ultimately, marketing managers must decide which customers they want to target and on the level, timing, and nature of their demand. Page Ref 9 Difficulty Moderate Chapter LO 3 Course LO Discuss the fundamental concepts of marketing 89) equivalence and contrast the product and production concepts. Answer The production concept holds that consumers will favor products that are available and highly affordable. Therefore, management should focus on modify production and distribution efficiency. This concept is one of the oldest orientations that guides sellers.The production concept is still a utilitarian philosophy in some situations. For example, both personal computer maker Lenovo and home appliance maker Haier control the highly competitive, price-sensitive Ch inese market through low labor costs, high production efficiency, and mass distribution. However, although useful in some situations, the production concept can lead to marketing myopia. Companies adopting this orientation run a major risk of focusing too narrowly on their own operations and losing sight of the real objective-satisfying customer needs and building customer relationships.The product concept holds that consumers will favor products that offer the most in quality, performance, and innovative features. Under this concept, marketing strategy focuses on making continuous product improvements. Product quality and improvement are important parts of most marketing strategies. However, focusing only on the companys products can also lead to marketing myopia. For example, some manufacturers believe that if they can build a better mousetrap, the world will beat a path to their doors. But they are often rudely shocked.Buyers may be looking for a better solution to a mouse probl em but not necessarily for a better mousetrap. The better solution might be a chemical spray, an exterminating service, a house cat, or something else that suits their needs even better than a mousetrap. Furthermore, a better mousetrap will not sell unless the manufacturer designs, packages, and prices it attractively places it in convenient distribution channels brings it to the attention of people who need it and convinces buyers that it is a better product.Page Ref 10 Difficulty Challenging Chapter LO 3 AACSB Analytic skills Course LO Discuss the fundamental concepts of marketing 90) 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 full 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 transaction 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. Under the marketing concept, customer focus and value are the paths to sales and profits. Instead of a product-centered make and sell philosophy, the marketing concept is a customer-centered sense and respond philosophy.The job is not to find the right customers for your product but to find the right products for your customers. Page Ref 10-11 Difficulty Challenging Chapter LO 3 AACSB Analytic skills Course LO Discuss the fundamental concepts of marketing 91) Briefly explain the societal marketing concept. Give an example of an organization that has effectively used the societal marketing concept. Answer The soc ietal marketing concept questions whether the pure marketing concept overlooks possible conflicts between consumer short-run wants and consumer long-run welfare.Is a firm that satisfies the immediate needs and wants of target markets always doing whats best for its consumers in the long run? The societal marketing concept holds that marketing strategy should deliver value to customers in a way that maintains or improves both the consumers and societys well-being. It calls for sustainable marketing, socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.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 Tylen ol capsules in 1982. Page Ref 11-12 Difficulty Moderate Chapter LO 3 AACSB Ethical understanding and reasoning abilities Course LO Discuss the fundamental concepts of marketing 92) narrow down customer perceived value. Answer Attracting and retaining customers can be a difficult task.Customers often face a bewildering array of products and services from which to choose. A customer buys from the firm that offers the highest customer-perceived value. It is defined as the customers evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers. Importantly, customers often do not judge values and costs accurately or objectively. They act on perceived value. Page Ref 13 Difficulty Easy Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 3) The aim of customer relationship management is to create not just customer satisfaction, but customer delight. Explain. 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. Page Ref 14 Difficulty Moderate Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 94) Companies can build customer relationships at many levels, depending on the nature of the target market. Explain the different types of relationships with examples. Answer At one extreme, a company with many low-margin customers may seek to develop basic relationships with them.For examp le, Nike does not phone or call on all of its consumers to get to know them personally. Instead, Nike creates relationships through brand-building advertising, public relations, and its numerous Web sites ad apps. At the other extreme, in markets with few customers and high margins, sellers want to create full partnerships with key customers. For example, Nike sales representatives work closely with the Sports Authority, Dicks uninfected Goods, Foot Locker, and other large retailers. In between these two extremes, other levels of customer relationships are appropriate.Beyond offering consistently high value and satisfaction, marketers can use specific marketing tools to develop stronger bonds with customers. For example, many companies offer frequency marketing programs that reward customers who buy frequently or in large amounts. Airlines offer frequent-flyer programs, hotels give room upgrades to their frequent guests, and supermarkets give patronage discounts to very important c ustomers. Other companies sponsor club marketing programs that offer members special benefits and create member communities. Page Ref 16 Difficulty Moderate Chapter LO 4Course LO Discuss the fundamental concepts of marketing 95) Discuss the opportunities and advantages that new communication technologies have created for marketers. Answer Through the cyberspace 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, online social networks, and Twitter, todays 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 purposeful part of consumers conversations and lives. However, while new communication tools creat e relationship-building opportunities for marketers, they also create challenges. They give consumers a greater voice, and therefore greater power and control in the marketplace. Todays 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 companys products. Page Ref 18 Difficulty Challenging Chapter LO 4 AACSB Analytic skills Use of information technology Course LO Discuss the fundamental concepts of marketing 96) Compare and contrast between customer-managed relationships and consumer-generated marketing. Answer Todays 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.Thus, the marketing world is now embracing not only custo mer relationship management, but also customer-managed relationships. Greater consumer control means that companies can no longer rely on marketing by intrusion. Instead, marketers must practice marketing by attractioncreating market offerings and messages that involve consumers rather than interrupt them. Hence, most marketers now augment their mass-media marketing efforts with a generous mix of direct marketing approaches that promote brand-consumer interaction. For example, many brands are creating dialogues with consumers via their own or existing online social networks.A growing part of the new customer dialogue is consumer-generated marketing, by which consumers themselves are playing a bigger role in shaping their own brand experiences and those of others. This might happen through uninvited consumer-to-consumer exchanges in blogs, video-sharing sites, and other digital forums. But increasingly, companies are inviting consumers to play a more active role in shaping products and brand messages. Harnessing consumer-generated content can be a time-consuming and costly process. Page Ref 18-19 Difficulty Moderate Chapter LO 4 AACSB Communication abilitiesCourse LO Discuss the fundamental concepts of marketing 97) Define customer equity and explain why it is important to a company. Answer Customer equity is the sum of the lifetime values of all of the companys current and potential customers. Customer equity is dependent upon customer loyalty from a firms profitable customers. Because customer equity is a reflection of a companys future, companies must manage it carefully, viewing customers as assets that need to be maximized. Page Ref 22 Difficulty Easy Chapter LO 4 Course LO Discuss the fundamental concepts of marketing 8) Describe and compare the four types of customers classified by their potential profitability to an organization. Identify how an organization should manage each type of customer. Answer The four types of customers are strangers, butterfl ies, true friends, and barnacles. 1. Strangers have low potential profitability and loyalty. A companys offerings do not fit well with a strangers wants and demands. Companies should not invest in building a relationship with this type of customer. 2. 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 companys 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. 3. Like strangers, butterflies are not loyal. However, they are potentially profitable because there is a good fit between the companys offerings and their needs. Like real butterflies, this type of customer will come and go without becoming a permanent, loyal consumer of a companys 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. 4. The final type of customers is true friends they are both profitable and loyal. There is a strong fit between their needs and the companys 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 delight true friends so they will tell others about their good experiences with the company.Page Ref 22-23 Difficulty Challenging Chapter LO 4 AACSB Analytic skills Course LO Discuss the fundamental concepts of marketing 99) Explain how the Internet has alter 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. The Internet has spawned an entirely new breed of click only companiesthe dot-coms. The post-Interne t fury 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), cell phones, video games, 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. More than 75% of American Internet users now shop online, making a Web presence a necessity for any organization. Page Ref 26-27 Difficulty Challenging Chapter LO 5 AACSB Use of information technology Course LO Describe the steps involved in development an advertising campaign