MKT501 TEST1

Chapter 1

Marketing: Managing Profitable Customer Relationships

GENERAL CONTENT: Multiple-Choice Questions

1.      Marketing seeks to create and manage profitable customer relationships by delivering _____ to customers.

a.       competitive prices

b.      superior value

2.      You have learned at work that today’s successful companies at all levels have one thing in common: they are strongly customer focused and heavily committed to _____.

a.       obtaining the best CEOs

b.      increasing wealth to stockholders

c.       marketing

3.      _____ is managing profitable customer relationships.

a.       Management

b.      Control

c.       Marketing

4.      The twofold goal of marketing is to attract new customers by promising superior value and to _____.

a.       keep and grow current customers by delivering satisfaction

b.      keep and grow current customers by delivering competitive pricing

5.      Highly successful companies know that if they take care of their customers, _____ will follow.

a.       frequent word of mouth

b.      market share

c.       profits

d.      sales and profits

6.      Marketing is more than _____ and advertising.

a.       distribution

b.      promotion

c.       selling

7.      Today, marketing must be understood in terms of not just making a sale but also _____.

a.       satisfying customers’ needs

b.      understanding customers’ value

8.      You have learned from experience as well as from this course that the most basic concept underlying marketing is that of _____.

a.       selling and advertising

b.      customer satisfaction

c.       retaining customers

d.      human needs

9.      As a new assistant marketing manager trainee, you learn in an orientation meeting that _____ are the form human needs take as they are shaped by culture and individual personality.

a.       wants

b.      demands

10.  What do companies call a set of benefits that they promise to consumers to satisfy their needs?

a.       marketing offer

b.      value proposition

11.  You are preparing a combination of products, services, information, and experiences to a market to satisfy needs and wants. What are you preparing?

a.       value proposition

b.      demand satisfaction

c.       tactical plan

d.      marketing offer

12.  We must learn a valuable lesson in marketing. Many sellers make the mistake of paying more attention to the specific products they offer than to the _____ produced by those products.

a.       benefits

b.      experiences

c.       benefits and experiences

13.  Smart marketers look beyond the attributes of the products and services they sell. They create brand _____ for consumers.

a.       awareness

b.      recognition

c.       preferences

d.      experiences

14.  By orchestrating several services and products, companies can create, stage, and market brand _____.

a.       meaning

b.      experiences

c.       awareness

15.  The difference between customer value and customer satisfaction is that value is the difference between the values the customer gains from owning and using a product and the _____.

a.       cost of delivery of the product

b.      cost of obtaining the product

16.  We can safely say that when a customer’s purchase lives up to his or her expectations, the customer is experiencing this state of being.

a.       customer value

b.      self-esteem

c.       self-actualization

d.      customer satisfaction

17.  At work, customers decide to satisfy needs and wants through exchange. What occurs at this point?

a.       selling

b.      customer service

c.       marketing

18.  Marketing consists of actions taken to build and maintain desirable _____ with target audiences involving a product, service, idea, or other object.

a.       exchange transactions

b.      exchange relationships

19.  This group of buyers shares a particular need or want that can be satisfied through exchange relationships.

a.       segment

b.      target market

c.       market

20.  Marketing is not carried on by sellers alone. _____ also carry on marketing.

a.       Suppliers

b.      Investors

c.       Web designers

d.      Buyers

21.  _____ means managing markets to bring about profitable exchange relationships by creating value and satisfying needs and wants.

a.       Selling

b.      Promoting

c.       Marketing

22.  Marketers are not concerned with serving all customers in every way. Rather, they want to serve selected customers that they can serve _____.

a.       profitably

b.      with superior customer service

c.       well

d.      well and profitably

23.  Marketing managers are concerned with ways to deal with demand. They may need to find, increase, _____, or even _____ demand.

a.       avoid; slow

b.      change; reduce

c.       maximize; change

24.  The federal government finds it necessary at times to limit demand by reducing the number of customers or to shift their demand temporarily or permanently. Name the term for this type of action.

a.       debugging

b.      deregulation

c.       demarketing

d.      gray marketing

25.  The five alternative concepts under which organizations conduct their marketing activities include the production, _____, selling, marketing, and societal marketing concepts.

a.       promotion

b.      pricing

c.       distribution

d.      product

e.       demarketing

Chapter 3

The Marketing Environment

True/False

26.  The microenvironment consists of larger societal forces that affect the microenvironment, such as demographic, economic, political, and cultural forces.

27.  The macroenvironment consists of the factors close to the company that affect its ability to service its customers, such as suppliers, customer markets, competitors, and publics.

28.  Your accounting department must measure revenues and costs to help the marketing department know how well it is achieving its objectives.

29.  Trudie Jones works for a firm that is a distribution channel member that helps the company find customers or make sales to them. Trudie works for a reseller.

30.  Marketing research firms, advertising agencies, media firms, and marketing consulting firms are referred to as marketing services agencies.

31.  As an employee of Bonkers Enterprises, you market wild and crazy games for teens to play at parties. You work in the business market.

32.  Today’s marketers recognize the importance of working with their intermediaries as channels through which they sell their products rather than as mere partners.

33.  No single competitive marketing strategy is best for all companies.

34.  Consumer organizations such as environmental and minority groups may question a company’s marketing decisions. This type of public is called the local public.

35.  The reason the demographic environment is of major interest to marketers is because it involves people, and people make up markets.

36.  The single most important demographic trend in the United States that marketers should understand is the changing family structure.

37.  It is important to note that as baby boomers reach their peak earning and spending years, they become markets for high-ticket items.

38.  Generation Yers buy a lot of products including cosmetics, cars, fast food, sweaters, boots, electronics, mountain bikes, and computers.

39.  By the year 2010, the generation Xers will take over the baby boomers as a primary market for almost every product category.

40.  Marketers must increasingly consider the special needs of nontraditional households because they are now growing more rapidly than traditional households.

41.  Recent shifts in where people live affect where people work.

42.  The American workforce today is better educated and more white collar.

43.  Companies in several industries are now waking up to the needs and potential of the gay and lesbian segment.

44.  The gay and lesbian market represents 54 million people and almost $1 trillion in annual spending power. It is larger than African Americans or Hispanics.

45.  Most household income is used up in purchasing foods, housing, and transportation.

46.        The significant trends in the natural environment include shortages of raw materials, increased pollution, and decreased government intervention.

47.        Significant reasons for business legislation to be enacted include protecting the interests of society, protecting consumers, and protecting companies from each other.

48.        The difference in the cultural environment between core values and beliefs and secondary values and beliefs is that the former are more open to change.

49.        When firms take aggressive action to affect the publics and forces in their marketing environment, they are taking an environmental management perspective.

50.        According to Engel’s laws, consumers tend to spend a smaller percentage of income on food as income rises.

51.        Environmental concerns have been on the decline in the past decade; more government legislation and the green movement may be the cause of this trend.

Chapter 4

Managing Marketing Information

Essay

52.    Discuss the functions of a marketing information system (MIS).

53.    Marketers can obtain needed information from internal data, marketing intelligence, and marketing research. Explain some common sources for each of these.

54.    Describe the basic marketing research process.

Chapter 5

Consumer Markets and Consumer Buyer Behavior

GENERAL CONTENT: Multiple-Choice Questions

55. What is the name of the company that makes the top-selling heavyweight motorcycles?

a.   Yamaha

b.   Kawasaki

c.   Honda American Classic

d.   Harley-Davidson

e.   BMW

56. The average Harley customer is _____.

a.   the Hell’s Angels crowd

b.   a young adult in his or her twenties

c.   a teenager

d.   a 46-year-old husband with a median household income

e.   a generation Xer with above-average income

57. What is NOT a universal Harley appeal?

a.   freedom

b.   dependence

c.   power

d.   baddest guy on the block

e.   B and D

58. _____ is never simple, yet understanding it is the essential task of marketing management.

a.   Brand personality

b.   Consumption pioneering

c.   Early adoption

d.   Consumer buying behavior

e.   Understanding the difference between primary and secondary data

59. Most large companies research _____ buying decisions to find out what they buy, where they buy, how and how much they buy, when they buy, and why they buy.

a.   market

b.   permanent

c.   consumer

60. How do consumers respond to various marketing efforts the company might use? The starting point is the _____ of a buyer’s behavior.

a.   belief

b.   subculture

c.   postpurchase feeling

d.   stimulus-response

e.   postpurchase dissonance

61. Marketing stimuli consist of the four Ps. Which is not one of these Ps?

a.   product

b.   political

c.   price

d.   promotion

62. Which is NOT a part of the buyer’s black box?

a.   observable buyer responses

b.   product choice

c.   need recognition

63. The marketer wants to understand how the stimuli are changed into responses inside the consumer’s _____, which has two parts. First, the buyer’s characteristics influence how he or she perceives and reacts to the stimuli. Second, the buyer’s decision process itself affects the buyer’s behavior.

a.   culture

b.   black box

64. _____ is the most basic cause of a person’s wants and behavior.

a.   Culture

b.   Brand personality

c.   Cognitive dissonance

65. Marketers are always trying to spot _____ in order to discover new products that might be wanted.

a.   lifestyles

b.   cultural shifts

c.   groups

66. Each culture contains smaller _____, or groups of people with shared value systems based on common life experiences and situations.

a.   alternative evaluations

b.   cognitive dissonances

c.   subcultures

67. Four important subcultures mentioned by the author include all EXCEPT _____.

a.   Hispanics

b.   African Americans

c.   mature consumers

d.   opinions leaders

e.   Asian Americans

68. Which is NOT included in the U.S. Hispanic market?

a.   Americans of Cuban descent

b.   Mexicans

c.   Spaniards

d.   those of Puerto Rican descent

69. _____ consumers tend to buy more branded, higher-quality products. They are very brand loyal, and they favor companies who show special interest in them.

a.   Hispanic

b.   African American

c.   Asian

True/False

70. Maslow’s theory is that human needs are arranged in a hierarchy. They include physiological needs, safety needs, social needs, esteem needs, and self-actualization needs. An unsatisfied need motivates one to take action to satisfy it.

71. Alternative evaluation is the process by which people select, organize, and interpret information to form a meaningful picture of the world.

72. The consumer’s purchase decision will be to buy the most preferred brand, but two factors can come between the purchase intention and purchase decision. The first factor is need recognition.

73. After purchasing the product, the consumer will be satisfied or dissatisfied and will engage in postpurchase behavior.

74. Almost all major purchases result in cognitive dissonance, or discomfort caused by postpurchase conflict.

75. When a consumer learns about a new product for the first time and makes a decision to try it, it is called the alternative evaluation process.

76. People differ greatly in their readiness to try new products. In each product area, there are “consumption pioneers.” They are also called laggards.

77. Early adopters are guided by respect; they are opinion leaders in their communities and adopt new ideas early but carefully.

78. The early majority are deliberate; although they rarely are leaders, they adopt new ideas before the average person.

79. The late majorities are skeptical; they adopt an innovation only after their friends have tried it.

80.    In general, innovators tend to be relatively older, more mature, and have a lower income than late adopters.

81.    Five characteristics are especially important in influencing an innovation’s rate of adoption. Two of these are relative advantage and compatibility.

82.    Although consumers in different countries have different values, attitudes, and behaviors, the products they buy are very similar to each other.

83.    Dissonance-reducing buying behavior occurs when consumers are highly involved with an expensive, infrequent, or risky purchase but see a lot of difference among brands.

84.    Alternative evaluation is how the consumer processes information to arrive at brand choices. Consumers do not use a simple and single evaluation process in all buying situations.

85.    The consumer’s purchase decision will be to buy the most preferred brand, but two factors can come between the purchase intention and purchase decision. The first factor is need recognition.

Chapter 6

Business Markets and Business Buyer Behavior

86    Provide an overview of the business buying process.

87. Scenario

            A-1 Stampings, Inc., produces 14 metal stampings for the automotive industry. For the next model year, six of those stampings will require a slight change—two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation.

            In the meantime, the purchasing agent Richard Koehl has been asked to reduce the number of A-1’s steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Till now, he had selected his suppliers based on quality and price, but a major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of A-1’s suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others.

            Richard contacted various employees at A-1 who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of producing specific types of steel. The production control manager, in addition, could provide input regarding which types of steel worked best in which presses. Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on the surface of them. Each person contributed the necessary information to help Richard in making his decision.

1.Explain how the business buying process took place in this scenario.

2.Explain the complexity of the buying decision in this scenario.

88. How do marketers differentiate among needs, wants, and demands?

89. Explain marketing management in today’s terms.

90.        What goes into a company’s macroenvironment?

91.        Describe important factors in the marketing environment.