MARK 201 INTRODUCTION TO MARKETING CHAPTER 1 (CONCORDIA UNIVERSITY) COMPLETE COURSE EXAM TRIAL QUESTIONS AND ANSWERS SOLVED SOLUTION

MARK 201 INTRODUCTION TO MARKETING CHAPTER 1 (CONCORDIA UNIVERSITY) COMPLETE COURSE EXAM TRIAL QUESTIONS AND ANSWERS SOLVED SOLUTION Exam N ame MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) All of the following are accurate descriptions of modern marketing, EXCEPT which one? 1) A) Selling and advertising are synonymous with marketing. B) Marketing is the creation of value for customers. C) M arketing involves satisfying customers' needs. D) M arketing is managing profitable customer relationships. E) M arketing is used by for- profit and not- for- profit organizations. 2) According to the opening scenario, the Tide marketing team is MOST concerned about which of the 2) following? A) maintaining its brand share B) advertising their product's benefits C) comparing the effectiveness of their product to other brands D) incorporating consumer- generated marketing in the marketing mix E) fostering customers' emotional connections with their product 3) A ccording to management guru Peter Drucker, "The aim of marketing is to ." 3) A) make sell ing unnecessary B) create customer value C) sell products D) identify customer demands E) set realistic customer expectations 4) is defined as a social and managerial process by which individuals and organizations 4) obtain what they need and want through value creation and exchange. A) Selling B) Negotiating C) Bartering D) Advertising E) M arketing 5) Which steps of the five- step marketing process are about understanding customers, creating 5) customer value, and building strong customer relationships? A) the first three only B) the first four only C) the first two only D) the last four only E) the last three only 6) According to the simple five- step model of the marketing process, a company needs to 6) before designing a customer- driven marketing strategy. A) construct key components of a marketing program B) build profitable relationships with customers C) use customer relationship management to create full partnerships with key customers D) determine how to deliver superior value E) understand the marketplace and customer needs and wants 1 7) are human needs as shaped by individual personality and culture. 7) A) Values B) N eeds C) Demands D) Wants E) Exchanges 8) When backed by buying power, wants become . 8) A) exchanges B) social needs C) physical needs D) demands E) self- esteem needs 9) What do companies call a set of benefits that they promise to consumers to satisfy their needs? 9) A) value proposition B) demand satisfaction C) need proposition D) evoked set E) market offering 10) Which of the following refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs? A) selling myopia B) the product concept C) marketing management D) marketing myopia E) value proposition 10) 11) When marketers set low expectations for a market offering, the biggest risk they run is . 11) A) failing to attract enough customers B) failing to understand their customers' needs C) incorrectly identifying a target market D) decreasing customer satisfaction E) disappointing loyal customers 12) is the act of obtaining a desired object from someone by offering something in return. 12) A) Exchange B) Donation C) Value creation D) A value proposition E) Bribery 13) A(n) is the set of actual and potential buyers of a product. 13) A) segment B) group C) audience D) market E) exchange 14) Consumer research, product development, communication, distribution, pricing, and service are all core activities. A) production B) exchange C) marketing D) management E) customer relationship management 2 14) potential customers? A) Customer evangelists will become unpaid salespersons for the service or product. B) All customers will be delighted. C) Customer- perceived value will increase. D) The company will need to follow up with a demarketing campaign. E) N ot all customers will be satisfied. 16) In the case of excess demand, may be required to reduce the number of customers or to shift demand temporarily or permanently. A) demarketing B) marketing C) surplusing D) value marketing E) negotiating 17) The art and science of choosing target markets and building profitable relationships with them is call ed . A) positioning B) selling C) marketing management D) differentiation E) segmentation 16) 17) 18) Selecting which segments of a population of customers to serve is called . 18) A) customization B) target marketing C) positioning D) market segmentation E) managing the marketing effort 19) Which of the following is the set of benefits a company promises to deliver to the customer to satisfy their needs? A) a value proposition B) a money- back guarantee C) an attribute D) low pricing E) good customer service 19) 20) Which customer question is answ ered by a company's value proposition? 20) A) "How does your brand benefit me and society?" B) "What are the benefits of being a loyal consumer of your brand?" C) "What kind of experience will I have with products and services associated with this brand?" D) "What are the costs and benefits of your brand?" E) "Why should I buy your brand rather than a competitor's?" 3 efficiencies along the supply chain? A) product concept B) selling concept C) production concept D) marketing concept E) social marketing concept 22) Which of the following marketing management concepts is most likely to lead to marketing myopia? A) selling B) customer- driven marketing C) customer- driving marketing D) social marketing E) production 23) The concept is aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer the most in quality, performance, and innovative features. A) promotion B) production C) customer D) marketing E) product 22) 23) 24) The product concept says that a company should do which of the following? 24) A) make promoting products the top priority B) focus on the target market and make products that meet those customers' demands C) focus on making continuous product improvements D) market only those products with high customer appeal E) improve marketing of its best products 25) "Build a better mousetrap and the world will beat a path to your door" reflects the concept. A) selling B) target marketing C) marketing D) production E) product 26) Which concept calls for aggressive selling and focuses on generating transactions to obtain profitable sales? A) selling B) societal marketing C) marketing D) production E) product 4 25) 26) of target markets and delivering the desired satisfactions better than competitors do? A) product B) marketing C) selling D) equity E) production 28) A firm that uses the selling concept takes a(n) approach. 28) A) myopic B) inside- out C) customer service D) societal E) outside- in 29) According to the production concept, consumers will favour products that are and . A) in high demand; hard to find B) segmented; convenient C) advertised; affordable D) satisfying; quality focused E) available; affordable 30) Herb Kelleher of Southw est Airlines used the marketing concept in his successful organization. Having a customer department rather than a marketing department, as suggested by Kelleher, is an exampl e of a(n) perspective. A) external B) traditional C) outside- in D) inside- out E) modern 31) Though often criticized, the selling concept is particularly appropriate and effective with which of the following types of products? A) shopping B) specialty C) demarketed D) unsought E) convenience 29) 30) 31) 32) Which of the following reflects the marketing concept philosophy? 32) A) "We don't have a marketing department; we have a customer department." B) "When it's profits versus customers' needs, profits will always win out." C) "We build them so you can buy them." D) "We're in the business of making and selling superior products." E) "You won't find a better deal anywhere." 33) Customer- driven marketing usually works well when and when customers . 33) A) customers know what they want; are loyal to the brand B) a need exists; don't know what they want C) a clear need exists; know what they w ant D) a firm can deliver the goods desired; are thoroughly researched E) a clear need exists; are difficult to identify 5 lOMoARcPSD| 34) Marie Ortiz enjoys her work at Futuristic Designs, Inc. Her organization understands and anticipates customer needs even better than customers themselves do and creates products and services to meet current and future wants and demands. Marie's firm practices marketing. A) customer- driven B) relationship C) social D) customer- driving E) donor 35) When customers don't know what they want or don't even know what's possible, the most effective strategy is _ marketing. A) production B) customer- driven C) product D) customer- driving E) societal 36) The societal marketing concept seeks to establish a balance between consumer short- run wants and consumer . A) immediate health B) value propositions C) short- run ethics D) short- run costs and profits E) long- run welfare 37) 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? A) marketing B) equity C) societal marketing D) selling E) product 38) The three areas of consideration that should be balanced in the societal marketing concept are consumer wants, society's interests, and . A) w ant satisfaction B) long- term needs C) short- run wants D) company profits E) human welfare 34) 35) 36) 37) 38) 39) The set of marketing tools a firm uses to implement its marketing strategy is called the . 39) A) TQM B) promotion mix C) marketing effort D) product mix E) marketing mix 6 lOMoARcPSD| 40) Of the following, which is the most important concept of modern marketing? 40) A) societal marketing B) properly trained salespeople C) customer relationship management D) low prices E) consumer- generated marketing 41) Building, keeping, and grow ing profitable relationships by delivering customer value and satisfaction is called . A) customer lifetime value B) societal marketing C) customer relationship management D) database marketing E) customer perceived value 42) Customer- perceived value is determined by a customer's of the benefits and costs of a market offering relative to those of competing offers. A) rational expectations B) accurate assessment C) objective evaluation D) personal assessment E) emotional understanding 43) It is most accurate to say that customers buy from stores and firms that offer which of the following? A) the most concern for society's interests B) the highest level of customer satisfaction C) the highest customer- perceived value D) the most attractive company image E) the highest value for the dollar 44) 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. A) Customer satisfaction B) Customer equity C) Customer evangelism D) Marketing myopia E) Customer- perceived value 45) Which of the following is the term for customers who make repeat purchases and tell others about their positive experiences with a product or service? A) butterflies B) social customers C) customer evangelists D) satisfied customers E) full partners 7 41) 42) 43) 44) 45) satisfaction? A) "firing" unprofitable customers B) limiting customer experiences with a brand C) decreasing the variety of offered services D) lowering prices E) demarketing 47) A room upgrade offered by a hotel to a guest who often stays in the hotel is an example of a . A) club marketing program B) partner relationship management technique C) structural benefit D) basic customer relationship E) frequency marketing program 48) iRobot, the makers of Roomba, have involved their customers in product development, marketing, and technical support in an effort to foster which of the following? A) basic relationships B) frequency marketing programs C) customer- perceived value D) customer delight E) selective relationship management 49) In which of the following situations has a company most actively turned its consumers into marketing partners? A) American Airlines awards frequent flyer points to returning customers. B) Paige Premium Denim jeans provide a superior quality and a perfect fit. C) Best Buy distinguishes between its best customers, called angels, and its less profitable customers, called demons, stocking merchandise to appeal to separate groups of its angels. D) Toyota develops a marketing presence on social networks and other online communities. E) iRobot invites enthusiastic Roomba owners to develop and share their own programs and uses for the company's robotic vacuum. 50) Using customer profitability analysis to weed out unprofitable customers and target winning ones for pampering is referred to as . A) positioning B) database marketing C) selective relationship management D) marketing myopia E) customer relationship management 51) Pete Sanchez, a recent graduate of business school, has a different approach than his marketing manager, who believes in keeping customers at arm's length and using mass media advertising. Pete knows that today few successful firms still practice true and are instead turning to selective relationship management. A) club marketing B) market segmentation C) customer satisfaction D) frequency marketing E) mass marketing 8 47) 48) 49) 50) 51) the Nike Store is an example of which of the following? A) a structural benefit provided for top customers B) a basic customer relationship C) a partner relationship D) a frequency marketing program E) a club marketing program 53) Which of the following has NOT contributed to the deeper, more interactive nature of today's customer relationships? A) traditional advertising B) e- mail C) video sharing D) Web sites E) online social networks 54) Which of the following best explains why consumers have greater power and control in today's marketplace? A) Customer- driven marketing creates products and services that meet customers' future needs. B) The production concept and competition have lowered prices. 53) 54) D) Implementation of the product concept has resulted in continually improving products. E) M ore companies are implementing social marketing and weighing long- term costs and benefits. 55) Greater consumer control means that companies must rely more on marketing by than by . A) producing; selling B) interruption; involvement C) inspiration; competition D) interaction; intrusion E) socialization; information 56) To create customer value and build strong customer relationships, marketers know they cannot go it alone; therefore, they practice . A) customer equity B) database marketing C) consumer- generated marketing D) partner relationship management E) attractive Web site design 55) 56) 57) In today's world, marketing should be done by employees in an organization. 57) A) sales and technology B) all C) marketing, sales, and customer- support D) marketing E) management and marketing 9 providers of raw materials to components to final products that are delivered to final buyers. A) direct marketing B) customized marketing C) equity marketing D) supply chain management E) partnership relationship marketing 59) Suzie Chan strengthens her company's connections by treating suppliers of raw materials, vendors, and distributors as partners in delivering customer value. What type of management is she practicing? A) outside partnering B) inside partnering C) supply chain D) customer development E) marketing 59) 60) The final step in the marketing process is . 60) A) creating customer lifetime value B) designing a customer- driven marketing strategy C) creating customer loyalty D) understanding the marketplace E) capturing value from customers 61) 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? A) market share B) share of customer C) profitability D) customer lifetime value E) market share maintenance 62) Advertising Age, a magazine for advertising professionals, recently gave its Ad Agency of the Year aw ard to . A) on- line marketers B) the consumer C) YouTube D) Coca- Cola E) Frito- Lay 61) 62) 63) Which of the following is an example of consumer- generated marketing? 63) A) Toyota's presence in online communities B) M asterCard's use of "Pricel ess" commercials shot by customers C) Nike's Nike Plus running Web site D) The Lexus Covenant aimed at creating customer delight E) Neiman Marcus's InCircle Rewards program for its best customers 10 . A) customer lifetime value B) customer satisfaction C) share of customer D) customer ownership E) total customer spending 65) Beyond simply retaining good customers, marketers want to constantly increase their "share of customer." What does this mean in marketing terms? A) Marketers want to increase the profit margin with this target market. B) M arketers want to continuously increase their customers' levels of satisfaction. C) Marketers want to turn satisfied customers into delighted customers. D) M arketers want to increase their market share. E) Marketers want to increase the share they get of the customer's purchasing in their product categories. 65) 66) is one of the best ways to increase share of customer. 66) A) Partnership marketing B) Targeting new customers C) Cross- selling D) Relationship selling E) Using bait and switch 67) A leverages relationships with its 35 million customers by offering them music, videos, gifts, toys, consumer electronics, and office products, among other items. Based on previous purchase history, the company recommends related CDs, books, videos, or other products that might interest a customer. This most directly helps A capture a greater . A) share of customer B) customer lifetime value C) profit margin D) share of market E) customer equity 68) Which of the following is the total combined customer lifetime values of all a company's current and potential customers? A) share of market B) customer lifetime value C) customer equity D) profitability E) share of customer 67) 68) 69) The ultimate aim of customer relationship management is to produce . 69) A) higher profit margins B) customer equity C) a reliable database D) sales volume E) market share 11 A) stranger B) butterfly C) true friend D) true believer E) barnacle 71) Customers can be classified into four relationship groups, according to their profitability and projected loyalty. Which type of customers have the highest profit potential and strong loyalty? A) true friends B) barnacles C) strangers D) butterflies E) big fish 71) 72) Which of the following statements about the Internet is most accurate? 72) A) Consumer e- commerce looks promising, but business- to- business e- commerce is declining. B) 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) Web 2.0 involves a less balanced approach to online marketing than the original dot- com boom did. 73) Which of the following is currently the fastest- grow ing form of marketing? 73) A) word- of- mouth marketing B) consumer- generated marketing C) social marketing D) online marketing E) mass media marketing 74) Today almost every company, small and large, is affected in some way by which of the following? 74) A) caring capitalism B) the societal marketing concept C) global competition D) not- for- profit marketing E) customer- generated marketing 75) Governmental agencies are becoming more involved in marketing as the years pass. When a local government advertises keeping the area's streams and water supply cleaner, it is involved in . A) demarketing B) green marketing C) environmental marketing D) partnership marketing E) social marketing campaigns TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 75) 76) Selling is managing profitable customer relationships. 76) 12 78) The difference between human needs and wants is that needs are not influenced by marketers. 78) 79) When backed by buying power, needs become demands. 79) 80) Market offerings are limited to physical products. 80) 81) An experience such as a vacation can be defined as a market offering. 81) 82) When sellers focus on existing needs and lose sight of underlying customer wants, they suffer from marketing myopia. 82) 83) Only sellers of products, services, and ideas practice marketing; buyers do not. 83) 84) M arket segmentation is the process of seeking fewer customers and reduced demand for profit maximization only. 84) 85) Demarketing is a marketing philosophy focused upon product differentiation and positioning. 85) 86) 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. 86) 87) The production concept and product concept are orientations that can lead to marketing myopia. 87) 88) 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. 89) Computer maker Lenovo dominates the highly competitive, price- sensitive Chinese PC market through low labour costs, high production efficiency, and mass distribution. This is an example of the product concept. 90) Your department holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do. Your department is practicing the selling concept. 91) Fast Food, Inc. views marketing as the science and art of finding, retaining, and grow ing profitable customers by providing them with the food they want. Fast Food, Inc. practices societal marketing. 92) The societal marketing concept calls on marketers to balance consumer wants and desires, company profits, and society's interests. 93) For most marketers, customer relationship management (CRM ) is exclusively a matter of customer data management. 94) The marketing mix includes production, price, promotion, and packaging; this is known as the four Ps of marketing. 13 88) 89) 90) 91) 92) 93) 94) between all the benefits and all the costs of a marketing offer relative to those of competing offers. 96) With selective relationship management, companies use customer profitability analysis to eliminate losing customers and target winning ones. 97) In markets with few customers and high margins, sellers want to create full partnerships with key customers. 98) Consumer- generated marketing, a relatively new phenomenon, has so far had little impact as a marketing force. 99) To increase their "share of customer," a firm concentrates on retaining as many customers as possible over their lifetimes. 96) 97) 98) 99) 100) Web 2.0 is distinguished by its poorly conceived e- tailers and Web start- ups. 100) 101) When backed by buying power, wants become human needs. 101) 102) EarthShare powerfully markets the idea that individuals and organizations can be involved in creating a healthy and sustainable environment. Their marketing offering is not a physical product but an idea. 102) 103) Marketing occurs when people decide to satisfy needs and wants through exchange relationships. 103) 104) H olt Renfrew and Harry Rosen stores only want to select customers they can serve well and profitably so they target affluent professionals.