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Test Bank for Marketing: An Introduction, 14th Edition

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    1 Marketing: An Introduction, 14e (Armstrong/Kotler) Chapter 1 Marketing: Creating Customer Value and Engagement 1) Marketing, more than any other business function, deals with ________. A) customers B) sales C) advertising D) new products E) brands A nswer: A Diff: 1 LO: 1 - 1: Define marketing and outline the steps in the marketing process. AACSB: Application of knowledge 2) According to the five - step model of the marketing process, the first step in marketing is ________. A) capturing value from cu stomers to create profits and customer equity B) constructing an integrated marketing program that delivers superior value C) engaging customers, building profitable relationships, and creating customer delight D) understanding the marketplace and customer needs and wants E) designing a customer - driven marketing strategy Answer: D Diff: 2 LO: 1 - 1: Define marketing and outline the steps in the marketing process. AACSB: Analytical thinking 3) Today, marketing must not be understood in the old sense of ___ _____. A) creating a buying experience B) helping people connect with the people in their lives C) telling and selling D) creating a culture of warmth and belonging E) delivering value and satisfaction Answer: C Diff: 3 LO: 1 - 1: Define marketing and outl ine the steps in the marketing process. AACSB: Analytical thinking 4) Marketing is primarily concerned with engaging customers and secondarily with managing profitable customer relationships. Answer: FALSE Diff: 2 LO: 1 - 1: Define marketing and outline the steps in the marketing process. AACSB: Analytical thinking

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    2 5) What is marketing? Briefly describe the marketing process. Answer: Marketing can be defined as the process by which companies create value for customers and build strong customer relation ships in order to capture value from customers in return. The marketing process consists of five steps. In the first four steps, companies work to understand consumers, create customer value, and build strong customer relationships. In the final step, comp anies 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 long - term customer equity. Diff: 2 LO: 1 - 1: Define marketing and outline the steps in the marketing process. AACSB: Analytical thinking 6) ________ are defined as states of felt deprivation. A) Needs B) Ideas C) Demands D) Values E) Exchanges Answer: A Diff: 1 LO: 1 - 2: Explain the importance of understanding the marketplace and custome rs and identify the five core marketplace concepts. AACSB: Analytical thinking 7) ________ are the form human needs take as they are shaped by culture and individual personality. A) Wants B) Necessities C) Services D) Benefits E) Risks Answer: A Diff: 1 LO: 1 - 2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking

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    3 8) Consumers' needs and wants are fulfilled through ________. A) value B) demand C) desire D) ma rket offerings E) ideas Answer: D Diff: 1 LO: 1 - 2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 9) Abel now has the buying power to purchase the compute r that he wanted to buy six months ago. Abel's want has most likely become a ________. A) need B) value C) demand D) market offering E) desire Answer: C Diff: 3 LO: 1 - 2: Explain the importance of understanding the marketplace and customers and identify t he five core marketplace concepts. AACSB: Analytical thinking 10) To market the cause of suicide prevention, rapper Logic worked with the National Suicide Prevent Lifeline (NSPL) to create a video embedded with his song "1 - 800 - 273 - 8255," the NSPL phone n umber. This is an example of a marketing offering for a(n) ________. A) product B) person C) idea D) place E) exchange Answer: C Diff: 2 LO: 1 - 2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking

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    4 11) Marketers are said to suffer from marketing myopia when they ignore underlying consumer needs and focus excessively on ________. A) consumers' brand experiences B) competitors' threats C) consumers' existing wan ts D) competitors' strengths E) consumers' future demands Answer: C Diff: 2 LO: 1 - 2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Application of knowledge 12) The Walt Dis ney World Resort doesn't just offer amusement park rides, it uses its famed Disney magic to create carefully orchestrated ________. A) service offerings B) benefits C) wants D) values E) experiences Answer: E Diff: 2 LO: 1 - 2: Explain the importance of un derstanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 13) ________ is the act of obtaining a desired object from someone by offering something in return. A) Targeting B) Segmentation C) Diffe rentiation D) Exchange E) Positioning Answer: D Diff: 1 LO: 1 - 2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 14) When backed by buying power, wants be come needs. Answer: FALSE Diff: 2 LO: 1 - 2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking

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    5 15) Market offerings are limited to physical products. Answer: FALSE Diff: 1 LO: 1 - 2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Application of knowledge 16) Market offerings include entities such as people, places, information, an d ideas. Answer: TRUE Diff: 2 LO: 1 - 2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 17) When sellers pay less attention to the specific products they o ffer and more attention to the benefits and experiences produced by these products, they suffer from marketing myopia. Answer: FALSE Diff: 2 LO: 1 - 2: Explain the importance of understanding the marketplace and customers and identify the five core marketp lace concepts. AACSB: Application of knowledge 18) A greater focus on underlying customer needs than on existing customer wants leads to marketing myopia. Answer: FALSE Diff: 2 LO: 1 - 2: Explain the importance of understanding the marketplace and custom ers and identify the five core marketplace concepts. AACSB: Application of knowledge 19) A market is a segment of potential consumers who share a common need or want. Answer: TRUE Diff: 1 LO: 1 - 2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking

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    6 20) Using suitable examples, briefly compare and contrast the concepts of needs, wants, and demands. Discuss how these concepts relate to marketing practices. Answ er: Human needs are states of felt deprivation. Needs are part of the human make - up; they are not created by external forces. Humans have a basic physical need for food, clothing, warmth, and safety, a basic social need for belonging and affection, and a basic individual need for knowledge and self - expression. Unlike needs, wants are not innate. Instead, wants are needs shaped by culture, society, and individual personality. For example, an American needs food, wants a Big Mac and soft drink, and demands l unch at McDonalds. Wants become demands when they are backed by consumers' buying power. Marketers conduct extensive research to understand customers' needs, wants, and demands. They then attempt to fulfill customers' needs, wants, and demands through thei r market offerings. Diff: 3 LO: 1 - 2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 21) Explain market offerings and marketing myopia. Answer: Consumers' needs and wants are fulfilled through market offerings – some 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 services – activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything. Examples include banking, airline, hotel, retailing, and home repair services. More broadly, market offerings also include other enti ties, 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 mark eting myopia. They are so taken 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 thi nk 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 serves the customer's need better or less expensively. The customer will have the same need but will want the new product. Diff: 2 LO: 1 - 2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Application of knowledge

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    7 22) ________ is the art and science of choosing target markets and building profitable relationships with them. A) Differentiation B) Marketing management C) Positioning D) Segmentation E) Customer - perceived value Answer: B Diff: 1 LO: 1 - 3: Identify the key elements of a customer value - driven marketing stra tegy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking 23) Dividing a market into several sections of customers is known as ________. A) mass customization B) market positioning C) market segmenta tion D) value engineering E) undifferentiated marketing Answer: C Diff: 1 LO: 1 - 3: Identify the key elements of a customer value - driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking 24) Dollar General profitably appeals to families with more modest means. The retailer's approach is most likely referred to as ________. A) mass distribution B) cost leadership C) consumer - generated marketing D) target marketing E) undifferenti ated marketing Answer: D Diff: 3 LO: 1 - 3: Identify the key elements of a customer value - driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking

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    8 25) A brand's ________ is the set of benefits that it promises to deliver to consumers to satisfy their needs. A) dominant effect B) fringe benefit C) perquisite D) value proposition E) dividend yield Answer: D Diff: 1 LO: 1 - 3: Identify the key elements of a customer value - driven ma rketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking 26) JetBlue's promise to put "You Above All" by "bringing humanity back to travel" is their ________. A) value proposition B) segm entation strategy C) market offering D) selling concept E) production concept Answer: A Diff: 2 LO: 1 - 3: Identify the key elements of a customer value - driven marketing strategy and discuss the marketing management orientations that guide marketing strate gy. AACSB: Analytical thinking 27) The ________ concept holds that consumers will favor goods and services that offer the most in quality, performance, and innovative features. A) societal marketing B) marketing C) selling D) production E) product Answer : E Diff: 2 LO: 1 - 3: Identify the key elements of a customer value - driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking

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    9 28) PC manufacturer, Lenovo, focuses on low labor costs and mass distribution to ensure the continuous availability of its products at reasonable prices. Lenovo most likely follows the ________. A) customer - driving marketing concept B) marketing concept C) societal marketing concept D) production concept E) selling concept Answer: D Diff: 3 LO: 1 - 3: Identify the key elements of a customer value - driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking 29) Henry Ford's philosoph y was to perfect the Model - T so that its cost could be reduced further for increased consumer affordability. This most likely reflects the ________. A) customer - driving marketing concept B) marketing concept C) societal marketing concept D) production conc ept E) selling concept Answer: D Diff: 3 LO: 1 - 3: Identify the key elements of a customer value - driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking 30) The selling concept holds that ________. A) consumers will not buy enough of a firm's products unless the firm undertakes large - scale persuasion and promotion efforts B) a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long - run interests, and society's long - run interests C) consumers will only 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 satisf actions better than competitors do E) consumers will favor products that offer the most in quality, performance, and innovative features Answer: A Diff: 2 LO: 1 - 3: Identify the key elements of a customer value - driven marketing strategy and discuss the ma rketing management orientations that guide marketing strategy. AACSB: Analytical thinking

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    10 31) Which of the following is a difference between the marketing concept and the selling concept? A) The marketing concept focuses on customer needs, whereas the s elling concept focuses on existing products. B) The marketing concept focuses on customer conquest, whereas the selling concept focuses on targeting the right customers. C) The marketing concept takes an inside - out perspective, whereas the selling concept takes an outside - in perspective. D) The marketing concept is product - centered, whereas the selling concept is production - centered. E) The marketing concept focuses on short - term sales, whereas the selling concept strives to build long - term customer relatio nships. Answer: A Diff: 2 LO: 1 - 3: Identify the key elements of a customer value - driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking 32) The ________ concept holds that a chieving organizational goals depends on knowing 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 Diff: 1 LO: 1 - 3: Identify the key elements of a customer value - driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking 33) Which of the following concepts is based on a customer - centered philoso phy? A) the product concept B) the marketing concept C) the production concept D) the selling concept E) the distribution concept Answer: B Diff: 1 LO: 1 - 3: Identify the key elements of a customer value - driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Application of knowledge

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    11 34) Customer - driven marketing is most effective when ________. A) a clear need exists among customers, but the need is difficult to identify B) customers do not know what they want but are easily persuaded C) customers seek new products and technological innovations D) clear needs exist and customers know what they want E) customers have wants but cannot afford them Answer: D Diff: 2 LO: 1 - 3: Identify the key elemen ts of a customer value - driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Reflective thinking 35) ________ companies research customers deeply to learn about their desires, gather new product ideas, and test product improvements. A) Production - oriented B) Customer - driving C) Customer - driven D) Functional E) Societal Answer: C Diff: 1 LO: 1 - 3: Identify the key elements of a customer value - driven marketing strategy and discuss the marketing ma nagement orientations that guide marketing strategy. AACSB: Analytical thinking 36) The ABC, a leading provider of personal computer systems, began manufacturing tablet devices after predicting a future consumer need for portability. Which of the followi ng was most likely implemented by the ABC company? A) the selling concept B) customer - driving marketing C) the product concept D) sustainable marketing E) the production concept Answer: B Diff: 3 LO: 1 - 3: Identify the key elements of a customer value - dri ven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking

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    12 37) The societal marketing concept holds that ________. A) consumers will not buy enough of a firm's products unless the fi rm undertakes a large - scale selling and promotion effort B) a company's marketing decisions should focus on creating economic value in a way that also creates value for the surrounding environment C) the society will only 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: B Diff: 2 LO: 1 - 3: Identify the key elements of a customer value - driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking 38) Many leading b usiness and marketing thinkers are now preaching the concept of "shared value" which recognizes that ________ needs, not just economic needs, define markets. A) functional B) marketing C) individual D) societal E) physical Answer: D Diff: 2 LO: 1 - 3: Iden tify the key elements of a customer value - driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking; Ethical understanding and reasoning 39) Which of the following concepts calls for sustainable marketing? A) the societal marketing concept B) the marketing concept C) the selling concept D) the production concept E) the product concept Answer: A Diff: 1 LO: 1 - 3: Identify the key elements of a customer value - driven marketing strat egy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking; Ethical understanding and reasoning

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    13 40) Cosmetic retailer Lush knows that doing what's right benefits both customers and the company. Their p remium beauty products are made by hand from the freshest possible natural ingredients. This is an example of the ________ concept. A) marketing B) product C) production D) societal marketing E) selling Answer: D Diff: 2 LO: 1 - 3: Identify the key element s of a customer value - driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking; Ethical understanding and reasoning 41) ________ marketing is defined as socially and environment ally 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. A) Customer - driven B) Mass C) Sustainable D) Customer - driving E) Ambush Answer: C Diff: 2 LO: 1 - 3: Identify the key elements of a customer value - driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking; Ethical understanding and reasoning 42) The product co ncept is a customer - centered, sense - and - respond philosophy. Answer: FALSE Diff: 1 LO: 1 - 3: Identify the key elements of a customer value - driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: An alytical thinking 43) A brand's value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs. Answer: TRUE Diff: 1 LO: 1 - 3: Identify the key elements of a customer value - driven marketing strategy and disc uss the marketing management orientations that guide marketing strategy. AACSB: Application of knowledge

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    14 44) The selling concept holds that consumers will favor products that offer the most in quality, performance, and innovative features. Answer: FALS E Diff: 1 LO: 1 - 3: Identify the key elements of a customer value - driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking 45) Xenon Corp. releases frequent updates to improve it s expensive software products. This marketing approach used by the firm is most likely based on the production concept. Answer: FALSE Diff: 2 LO: 1 - 3: Identify the key elements of a customer value - driven marketing strategy and discuss the marketing manag ement orientations that guide marketing strategy. AACSB: Analytical thinking 46) Organizations that follow the production concept most likely practice socially and environmentally responsible marketing. Answer: FALSE Diff: 2 LO: 1 - 3: Identify the key e lements of a customer value - driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking 47) Product, price, place, and promotion make up the elements of a firm's marketing mix. Ans wer: TRUE Diff: 1 LO: 1 - 3: Identify the key elements of a customer value - driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking 48) Why do companies generally divide a marke t into segments of customers? Answer: A company decides whom it will serve by dividing the market into segments of customers and selecting which segments it will go after. Some people think of marketing management as finding as many customers as possible and increasing demand. But marketing managers know that they cannot serve all customers in every way. By trying to serve all customers, they may not serve any customer well. Hence, companies usually want to select only customers that they can serve well an d profitably. Ultimately, marketing managers must decide which customers they want to target and on the level, timing, and nature of their demand. Diff: 2 LO: 1 - 3: Identify the key elements of a customer value - driven marketing strategy and discuss the mar keting management orientations that guide marketing strategy. AACSB: Application of knowledge

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    15 49) Compare and contrast the product and production concepts. Answer: The production concept holds that consumers will favor products that are available and hi ghly affordable. Therefore, it dictates that management should focus on improving production and distribution efficiency. This concept is one of the oldest orientations that guides sellers. The production concept is still a useful philosophy in some situat ions. For example, both personal computer maker Lenovo and home appliance maker Haier dominate the highly competitive, price - sensitive Chinese market through low labor costs, high production efficiency, and mass distribution. However, although useful in so me 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 custom er 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 a nd improvement are important parts of most marketing strategies. However, focusing only on products can also lead to marketing myopia. For example, manufacturers of mousetraps might believe that if they can build a better mousetrap, their profits will soar but they are often rudely shocked. Buyers may be looking for a better solution to a mouse problem 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 suit s 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. Diff: 3 LO: 1 - 3: Identify the key elements of a customer value - driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking 50) Compare the selling and marketing concepts, and list the key components of each concept. Answer: The selling concept reflects an inside - out perspective, while the marketing concept takes an outside - in perspective. The selling concept is typically practice d when an organization markets 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 customer s, with the aim of selling what a company makes rather than making what the customer wants. The marketing concept, on the other hand, is based on identifying the needs and wants of target markets and then satisfying those needs and wants better than compet itors 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 th e right customers for a product but to find the right products for customers. Diff: 3 LO: 1 - 3: Identify the key elements of a customer value - driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking

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