Chapter 1 Marketing (P3) – Flashcards

61) 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 their market share. B) Marketers want to increase the share they get of the customer's purchasing in their product categories. C) Marketers want to increase the profit margin with this target market. D) Marketers want to continuously increase their customers' levels of satisfaction. E) Marketers want to turn satisfied customers into delighted customers.

62) ________ is one of the best ways to increase share of customer. A) Targeting new customers B) Using bait and switch C) Cross-selling D) Divesting E) Partnership marketing

63) Amazon.com 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 Amazon.com capture a greater ________. A) partner value B) share of customer C) profit margin D) social network E) customer loyalty

64) Which of the following is the total combined customer lifetime values of all a company's current and potential customers? A) share of customer B) customer lifetime value C) customer equity D) profitability E) share of market

65) The ultimate aim of customer relationship management is to produce ________. A) customer equity B) market share C) sales volume D) a reliable database E) higher profit margins

66) A potentially highly profitable, short-term customer is a ________. A) true friend B) butterfly C) stranger D) barnacle E) true believer

67) 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) barnacles B) strangers C) butterflies D) true friends E) big fish

68) Afia, a team leader in charge of customer relationship management, is planning strategies for improving the profitability of her firm's least profitable but loyal customers. She is also examining methods for "firing" customers in this group who cannot be made profitable. To which of the following customer relationship groups do these customers belong? A) butterflies B) true friends C) strangers D) barnacles E) short-term customers

69) Since the beginning of the Great Recession, marketers have been emphasizing the ________ of their products more than ever. A) image B) value C) personality D) safety E) uniqueness

70) Which of the following has been the most common consumer response to the economic downturn that began in 2008? A) spending more on luxury items B) discontinuing any spending on luxury items C) spending less and choosing products more carefully D) spending less but choosing products less carefully E) saving more but spending more on credit cards

71) Which of the following is a true statement about the Great Recession that began in 2008? A) The economic crisis caused a short-term change in consumers' spending habits. B) The average home value increased after the stock market plunge. C) Decreasing energy prices provided consumers with unexpected savings. D) Consumers brought spending more in line with their incomes. E) Consumers quickly regained confidence in the economy.

72) Which of the following statements about the Internet is most accurate? A) Companies are cautiously using the Internet to build closer relationships with customers and marketing partners alike. B) After the dot-com meltdown of 2000, fewer consumers are buying products and services online. C) The Internet makes it easy for consumers to view, interact with, and create marketing content. D) Consumer e-commerce looks promising, but business-to-business e-commerce is declining. E) Web 2.0 involves a less balanced approach to online marketing than the original dot-com boom did.

73) Which version of the Web has introduced small, fast, and customizable applications that can be accessed through multifunction mobile devices? A) Web 1.0 B) Web 2.0 C) Web 3.0 D) Web 4.0 E) Web 5.0

74) Which of the following is currently the fastest-growing form of marketing? A) consumer-generated marketing B) online marketing C) mass media marketing D) societal marketing E) word-of-mouth marketing

75) As part of the rapid globalization of today's economy, companies are selling more locally produced goods in international markets and ________. A) taking a local view of their industry B) purchasing more supplies abroad C) reducing competition within their industry D) downplaying concerns for social responsibility E) competing solely in traditional marketplaces

76) Which of the following is most essential to any definition of marketing? A) demand management B) the production concept C) customer relationships D) making a sale E) making a profit

77) Greg Williams now has the buying power to purchase the computer system he has wanted for the last six months. Greg's want now has become a(n) ________. A) need B) necessity C) demand D) exchange E) transaction

78) Cathy's Clothes is a small retail chain successfully selling women's clothing and accessories with a profitable focus on buyers who have relatively modest means. This is an example of ________. A) convenience B) social marketing C) societal marketing D) target marketing E) value packing

79) An organic farmer has identified three distinct groups who might be interested in his products: vegetarians, people who are concerned about chemicals in their foods, and people who consider themselves innovators and trendsetters. These three groups are examples of ________. A) marketing mixes B) market segments C) value propositions D) mass markets E) marketing intermediaries

80) Jolene's firm markets preplanning services for a mortician. She finds that most of her target market wants to avoid discussing their future funeral needs, and she must somehow first get their attention. Jolene's firm most likely practices the ________. A) production concept B) marketing concept C) selling concept D) social marketing concept E) societal marketing concept

81) Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This reflects the ________ concept. A) product B) production C) selling D) marketing E) societal marketing

82) Railroads were once operated based on the thinking that users wanted trains rather than transportation, overlooking the challenge of other modes of transportation. This reflects the ________ concept. A) product B) production C) selling D) marketing E) societal marketing

83) Some fast-food restaurants offer tasty and convenient food at affordable prices, but in doing so they contribute to a national obesity epidemic and environmental problems. These fast-food restaurants overlook the ________ philosophy. A) marketing concept B) product concept C) production concept D) societal marketing concept E) selling concept

84) FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these benefits against the monetary cost of using FedEx along with any other costs of using the service, they are acting upon ________. A) loyalty B) relationship marketing C) customer-perceived value D) social relationships E) a societal marketing campaign

85) Sally purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her expectations for Brand X lotion, Sally was measuring her level of ________. A) share of customer B) customer satisfaction C) customer equity D) demand E) customer lifetime value

86) The Niketown running club that organizes twice weekly evening runs and follow-up meetings in the Nike Store is an example of which of the following? A) a frequency marketing program B) a basic customer relationship C) a club marketing program D) a partner relationship E) a structural benefit provided for top customers

87) Elisandra, a marketing manager at a regional chain restaurant, has decided to sponsor a contest calling for customers to create commercials for the restaurant. Winning entries will be posted on the organization's home page. Elisandra's plan is an example of ________. A) consumer-generated marketing B) partner relationship management C) customer lifetime value D) community development around a brand E) customer divestment

88) Kao Corp., which makes Ban deodorant, invited teenage girls to make an ad that would encourage other girls to buy the product. This program is an example of ________. A) societal marketing B) the production concept C) the selling orientation D) partner relationship management E) consumer-generated content

89) At Gina's Nails, the posted policy is "Without our customers, we don't exist." Gina and her staff aim to delight each customer, and they are quick to offer discounts or extra services whenever a customer is anything less than satisfied. Gina and her staff strive to make every customer a repeat customer. It is most accurate to say that instead of focusing on each individual transaction, Gina and her staff put a priority on ________. A) partner relationship management B) enlisting customer evangelists C) attracting "butterflies" D) converting "strangers" E) capturing customer lifetime value

90) Ben & Jerry's challenges all stakeholders, including employees, top management, and even ice cream scoopers in their stores, to consider individual and community welfare in their day-to-day decisions. Actions such as this by companies seizing the opportunity to do well by doing good reflects ________. A) environmentalism B) social responsibility C) profit marketing D) partnership management E) myopia

91) A church targeting different demographic groups to increase attendance is an example of ________. A) for-profit marketing B) not-for-profit marketing C) societal marketing D) customer evangelism E) caring capitalism

92) Your state's department of education has budgeted a significant amount of money for a radio, print, television, and online advertising campaign emphasizing the long-term benefits, both educationally and professionally, of reading every day. This is an example of a(n) ________ campaign. A) ethical B) social marketing C) for-profit D) consumer-generated E) differentiated

93) Which of the following is the most likely result of a marketing strategy that attempts to serve all potential customers? A) All customers will be delighted. B) Customer-perceived value will increase. C) Customer evangelists will become unpaid salespersons for the service or product. D) Not all customers will be satisfied. E) The company will need to follow up with a service campaign. Answer: D

94) Which of the following reflects the marketing concept? A) "The supplier is king." B) "Marketing should be viewed as foraging and not gardening." C) "This is what I make; won't you please buy it?" D) "This is what I want; won't you please make it?" E) "Customers need to be told where they want to go."

95) In which of the following situations has a company most actively embraced customer-managed relationships? A) American Airlines awards frequent flyer points to returning customers. B) Paige Premium Denim jeans provide a superior quality and a perfect fit. C) iRobot invites enthusiastic Roomba owners to develop and share their own programs and uses for the company's robotic vacuum. D) 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. E) Toyota develops a marketing presence on social networks and other online communities.

96) When the economy tightens, customer loyalty and customer retention become ________ for marketers. A) more important B) less important C) impossible D) long-term but not short-term goals E) short-term but not long-term goals