Test bank for marketing an introduction 11th edition by armstrong

Test Bank for Marketing An Introduction 11th Edition by
Armstrong
Mutiple Choice Questions
________ is defined as a social and managerial process by which
individuals and organizations obtain what they need and want
through creating and exchanging value with others.
1.

A) Value reengineering

2.

B) Human resource management

3.

C) Financing

4.

D) Marketing

5.

E) Root cause analysis

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 ________.
1.

A) customer-driving marketing concept

2.

B) marketing concept

3.

C) societal marketing concept

4.

D) production concept

5.

E) selling concept

________ refers to the portion of the customer's purchase that a
company gets in its product categories.
1.

A) Value proposition

2.

B) Share of customer

3.

C) Brand equity

4.

D) Customer ownership


5.

E) Customer equity

Customer-driven marketing is most likely to work well when
________ and when customers ________.
1.

A) a clear need exists; are difficult to identify

2.

B) customers do not know what they want; have limited budgets

3.

C) there are few competitors; are concerned about their long-run welfare

4.

D) a clear need exists; know what they want

5.

E) a want exists; cannot afford it

The Niketown running club that organizes twice weekly evening
runs for Nike customers is an example of a ________.
1.

A) frequency marketing program

2.

B) customer-driven marketing event

3.

C) club marketing program

4.

D) consumer-generated marketing program

5.

E) sustainable marketing event

Abel now has the buying power to purchase the computer that he
wanted for the last six months. Abel's want has now become a(n)
________.
1.

A) need

2.

B) necessity

3.

C) demand

4.

D) exigency

5.

E) desire

The art and science of choosing target markets and building
profitable relationships with them is called ________.


1.

A) marketing management

2.

B) market capitalization

3.

C) marketing liquidity

4.

D) market buzz

5.

E) marketing liberalization

The final step in the marketing process is ________.
1.

A) capturing value from customers

2.

B) constructing an integrated marketing program

3.

C) building profitable relationships with the customers

4.

D) understanding the marketplace

5.

E) designing a customer-driven marketing strategy

The production concept holds that ________.
1.

A) consumers will not buy enough of the firm's products unless the firm
undertakes a large-scale selling and promotion effort

2.

B) a company's marketing decisions should consider consumers' wants, the
company's requirements, consumers' long-run interests, and society's long-run
interests

3.

C) consumers will favor products that are available and highly affordable

4.

D) achieving organizational goals depends on knowing the needs and wants
of target markets and delivering the desired satisfactions better than
competitors do

5.

E) consumers will favor products that offer the most in quality, performance,
and innovative features

Sally purchased the newly launched "Jolie" lotion. By attempting to
find out if the lotion's perceived performance matches her
expectations, Sally was measuring her level of customer
________.
1.

A) perceived value


2.

B) satisfaction

3.

C) equity

4.

D) engagement

5.

E) lifetime value

Which of the following marketing management concepts is most
likely to lead to marketing myopia?
1.

A) the customer-driven marketing concept

2.

B) the customer-driving marketing concept

3.

C) the societal marketing concept

4.

D) the selling concept

5.

E) the production concept

________ describes a longer channel, stretching from raw materials
to components to final products that are carried to final buyers.
1.

A) The supply chain

2.

B) Direct marketing

3.

C) Partnership relationship marketing

4.

D) DSS

5.

E) CRM

Customers can be classified into four relationship groups, according
to their profitability and projected loyalty. Based on this
classification, you should avoid ________ and shouldn't invest
anything in them.
1.

A) barnacles

2.

B) strangers

3.

C) butterflies

4.

D) true believers

5.

E) true friends

The BakeWay Bite is a popular cookie sandwich marketed by the
Posco Division of Home Foods. It is famous for its white creamfilled center. Home Foods created a different version of these
biscuits for consumers in Germany. To appeal to German
consumers, Home Food created dark chocolate filling for the same
cookie sandwiches. This is an example of ________.
1.

A) bulk breaking

2.

B) cost leadership

3.

C) diversification

4.

D) target marketing

5.

E) vertical integration

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.
1.

A) marketing

2.

B) product

3.

C) production

4.

D) societal marketing

5.

E) selling

Josie 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 existing and latent needs, now and in the future. Josie's firm
practices ________ marketing.
1.

A) product concept

2.

B) customer-driving


3.

C) societal

4.

D) donor

5.

E) production concept

Which of the following has been the most common consumer
response to the economic downturn that began in 2008?
1.

A) spending more on luxury items

2.

B) discontinuing any spending on luxury items

3.

C) spending less and choosing products more carefully

4.

D) spending more on leisure and travel

5.

E) saving more and spending more on grocery items

Which of the following terms refers to the customers who make
repeat purchases and tell others about their positive experiences
with a product or service?
1.

A) hyper-satisfied customers

2.

B) customer evangelists

3.

C) viral marketing

4.

D) relationship partners

5.

E) social customers

The first step in the marketing process is ________.
1.

A) capturing value from customers to create profits and customer equity

2.

B) constructing an integrated marketing program that delivers superior value

3.

C) building profitable relationships and creating customer delight

4.

D) understanding the marketplace and customer needs and wants

5.

E) designing a customer-driven marketing strategy


Nickson released a new range of watches that were titled after the
famous mountaineer Adam Wills. These new watches were
promoted through claims that the design is a favorite of Adam Wills
who used a similar watch designed by Nickson for its high durability

and quality on his expeditions. Such a measure to entice customers
to buy one's products aims at creating ________.
1.

A) customer equity

2.

B) relationship marketing campaign

3.

C) customer-perceived value

4.

D) equitable relationship

5.

E) societal marketing campaign

Ryan attempts to deliver customer satisfaction every day in his
installation business, Audio Expressions. The key to achieving this
goal is to match the customer-perceived performance of his product
with ________.
1.

A) company projections

2.

B) customer values

3.

C) customer expectations

4.

D) customer relationship levels

5.

E) company expectations

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 real value for customers.
1.

A) three stars

2.

B) customer values

3.

C) four Ps

4.

D) perceived attributes


5.

E) five domains

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?
1.

A) full partnerships

2.

B) basic relationships

3.

C) categorical partnerships

4.

D) selective relationships

5.

E) community relationships

________ are human needs as shaped by individual personality
and culture.
1.

A) Offerings

2.

B) Wants

3.

C) Demands

4.

D) Values

5.

E) Exchanges

Your state's department of health has budgeted a significant
amount of money for a radio, print, television, and online advertising
campaign emphasizing the ill effects of smoking. This is an example

of a(n) ________ campaign.
1.

A) ethical

2.

B) social marketing

3.

C) for-profit

4.

D) consumer-generated

5.

E) differentiated


When backed by buying power, wants become ________.
1.

A) social needs

2.

B) demands

3.

C) physical needs

4.

D) self-esteem needs

5.

E) exchanges

Which of the following reflects the marketing concept philosophy?
1.

A) We don't have a marketing department, we have a customer department.

2.

B) We're in the business of making and selling superior products.

3.

C) We build them so you can buy them.

4.

D) When it's profits versus customers' needs, profits will always win out.

5.

E) You won't find a better deal anywhere else.

The societal marketing concept holds that ________.
1.

A) consumers will not buy enough of the firm's products unless the firm
undertakes a large-scale selling and promotion effort

2.

B) a company's marketing decisions should consider consumers' wants, the
company's requirements, consumers' long-run interests, and society's long-run
interests

3.

C) the society will favor products that are available and highly affordable

4.

D) achieving organizational goals depends on knowing the needs and wants
of target markets and delivering the desired satisfactions better than
competitors do

5.

E) consumers will favor products that offer the most in quality, performance,
and innovative features

The ________ concept holds that achieving organizational goals
depends on knowing the needs and wants of target markets and
delivering the desired satisfactions better than competitors do.


1.

A) marketing

2.

B) product

3.

C) production

4.

D) selling

5.

E) societal marketing

The societal marketing concept seeks to establish a balance
between consumer short-run wants and consumer ________.
1.

A) short-run costs

2.

B) short-run benefits

3.

C) long-run welfare

4.

D) long-run costs

5.

E) long-run reputation

Which of the following is an example of consumer-generated
marketing?
1.

A) Toyota's page on Facebook which provides information about its upcoming
cars to its customers

2.

B) Nike's Nike Plus Web site which helps its customers to customize their
shoes

3.

C) BMW's use of brand-related videos posted on video-sharing Web sites by
its customers

4.

D) Neiman Marcus's InCircle Rewards program for its best customers

5.

E) the Lexus Covenant aimed at creating customer delight

________ is the total combined customer lifetime values of all the
company's current and potential customers.
1.

A) Share of customer

2.

B) Customer payoff


3.

C) Customer equity

4.

D) Customer cardinality

5.

E) Customer perceived value

A brand's ________ is the set of benefits or values it promises to
deliver to consumers to satisfy their needs.
1.

A) dominant affect

2.

B) fringe benefit

3.

C) cardinality

4.

D) value proposition

5.

E) fundamental benefit

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
________.
1.

A) true friend

2.

B) butterfly

3.

C) stranger

4.

D) barnacle

5.

E) true believer

When customers don't know what they want or don't even know
what's possible, the most effective strategy is ________ marketing.
1.

A) customer-driven

2.

B) customer-driving

3.

C) societal

4.

D) production

5.

E) product


Carla, 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?
1.

A) butterflies

2.

B) true friends

3.

C) strangers

4.

D) barnacles

5.

E) short-term customers

Companies can build customer relationships at many levels,
depending on the nature of the target market. Hence, a company
with few customers and high margins is most likely to seek to
develop ________ with key customers.
1.

A) full partnerships

2.

B) basic relationships

3.

C) selective relationships

4.

D) categorical partnerships

5.

E) community relationships

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 perceived. Hence, it created an emotional relationship
with the car resulting in ________.
1.

A) customer delight

2.

B) customer satiety

3.

C) customer equity


4.

D) customer value

5.

E) customer engagement

________ marketing is 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.
1.

A) Customer-driven

2.

B) Mass

3.

C) Sustainable

4.

D) Customer-driving

5.

E) Differential

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 tell others about their good experiences
with the company.

1.

A) barnacles

2.

B) butterflies

3.

C) strangers

4.

D) true believers

5.

E) stars

The ultimate aim of customer relationship management is to
produce ________.
1.

A) high customer equity

2.

B) high current market share

3.

C) steady sales volume

4.

D) high customer payoff


5.

E) profit maximization

According to the product concept, a company should ________.
1.

A) improve marketing of its best products only

2.

B) market only those products that have high customer appeal

3.

C) focus on the target market and make products that meet those customers'
demands

4.

D) devote its energy to making continuous product improvements

5.

E) make promoting products the company's top priority

The overall process of building and maintaining profitable customer
relationships by delivering superior customer value and satisfaction
is called ________.
1.

A) customer lifetime management

2.

B) societal marketing

3.

C) customer relationship management

4.

D) database marketing

5.

E) sustainable customer management

________ refers to the mistake of paying more attention to the
specific products a company offers than to the benefits and

experiences produced by these products.
1.

A) Buyer's remorse

2.

B) Out-of-home advertising

3.

C) Caveat emptor

4.

D) Marketing myopia

5.

E) Winner's curse

At Ken's boutique, the policy statement posted in the reception
states that "Without our customers, we don't exist." Ken and his


staff aim to delight each customer and they are quick to offer
discounts or extra services whenever a customer is anything less
than satisfied. Instead of focusing on each individual transaction,
Ken and his staff are putting a priority on ________.
1.

A) maintaining customer-perceived value

2.

B) managing partner relationships

3.

C) attracting "butterflies"

4.

D) converting "strangers" into "butterflies"

5.

E) capturing customer lifetime value

Selecting particular segments of a population of customers to serve
is called ________.
1.

A) value reengineering

2.

B) brand synchronizing

3.

C) mass customizing

4.

D) target marketing

5.

E) selective administering

________ are states of felt deprivation.
1.

A) Needs

2.

B) Desires

3.

C) Demands

4.

D) Values

5.

E) Exchanges

Greater consumer control means that companies must rely more on
marketing by ________ rather than marketing by ________.
1.

A) interruption; involvement


2.

B) attraction; intrusion

3.

C) socialization; information

4.

D) producing; selling

5.

E) inspiration; competition

Ellis, a marketing manager at a regional chain restaurant, has
decided to create a contest calling for customers to create
commercials for the restaurant. Winning entries will be posted on
the organization's home page. Ellis' plan is an example of
________ marketing.

1.

A) consumer-generated

2.

B) sustainable

3.

C) customer club

4.

D) differential

5.

E) mass

Which of the following terms refers to a customer's evaluation of the
difference between all the benefits and all the costs of a marketing
offer relative to those of competing offers?
1.

A) customer-perceived value

2.

B) customer-oriented brand equity

3.

C) customer-perceived performance

4.

D) customer-oriented promotional mix

5.

E) customer-oriented price mix

The selling concept holds that ________.
1.

A) consumers will not buy enough of the firm's products unless the firm
undertakes a large-scale selling and promotion effort


2.

3.

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 favor products that are available and highly affordable

4.

D) achieving organizational goals depends on knowing the needs and wants
of target markets and delivering the desired satisfactions better than
competitors do

5.

E) consumers will favor products that offer the most in quality, performance,
and innovative features