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Chapter 1: Marketing and Customer Value

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Chapter 1: Marketing and Customer Value

30 problems · 0 figures

Knowledge Check 1.1.1 §1.1 source ↗

Coca-Cola’s mission is to refresh the world, and to that end, it has ensured that you can buy a Coke product at numerous locations—vending machines, convenience stores, restaurant fountains, stadiums, etc. What type of utility has marketing created through this process?
  1. a.
    Form utility
  2. b.
    Time utility
  3. c.
    Place utility
  4. d.
    Possession utility

Answer

C. Place utility
Place utility addresses convenience in terms of where a consumer can purchase your company’s product.

Knowledge Check 1.1.2 §1.1 source ↗

Which of the following provides the most complete definition of marketing?
  1. a.
    Marketing creates value.
  2. b.
    Marketing is made up of every process involved in moving a product or service from your organization to the consumer.
  3. c.
    Marketing includes distribution decisions.
  4. d.
    Marketing is about building relationships.

Answer

B. Marketing is made up of every process involved in moving a product or service from your organization to the consumer.
Marketing is a complex activity and includes creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Knowledge Check 1.1.3 §1.1 source ↗

Which of the following is not an external interested party?
  1. a.
    Employees
  2. b.
    Customers
  3. c.
    Suppliers
  4. d.
    Society

Answer

A. Employees
Employees are internal parties.

Knowledge Check 1.1.4 §1.1 source ↗

The total potential profits a company earns from its current and potential customers is known as ________.
  1. a.
    customer equity
  2. b.
    the value proposition
  3. c.
    customer value
  4. d.
    the marketing process

Answer

A. customer equity
Customer equity is the total potential profits a company earns from its current and potential customers.

Knowledge Check 1.1.5 §1.1 source ↗

At which step in the marketing process would the lifetime values to a company’s customers be considered?
  1. a.
    Developing a customer-driven marketing strategy
  2. b.
    Delivering high customer value
  3. c.
    Growing profitable customer relations
  4. d.
    Capturing value from customers

Answer

D. Capturing value from customers
The aim of successful customer relationship management is to produce high customer equity.

Knowledge Check 1.2.1 §1.2 source ↗

Which of the following is NOT one of the 4Ps of marketing?
  1. a.
    Product
  2. b.
    Price
  3. c.
    Place
  4. d.
    Positioning

Answer

D. Positioning
The 4Ps of marketing are product, price, place, and promotion.

Knowledge Check 1.2.2 §1.2 source ↗

Which of the 4Ps focuses on determining how much consumers would be willing to pay for a product or service?
  1. a.
    Product
  2. b.
    Price
  3. c.
    Place
  4. d.
    Promotion

Answer

B. Price
Price is the amount consumers pay for a product or service.

Knowledge Check 1.2.3 §1.2 source ↗

Which of the 4Ps of marketing focuses on how and where to deliver the product to the consumer most likely to buy it?
  1. a.
    Product
  2. b.
    Price
  3. c.
    Place
  4. d.
    Promotion

Answer

C. Place
Place—sometimes known as distribution—involves focusing on how and where to deliver the product to consumers most likely to buy it.

Knowledge Check 1.2.4 §1.2 source ↗

DiJuan, a marketer for a soft drink company, ensures that his company’s products are available in numerous locations—vending machines, convenience stores, restaurants, and supermarkets. Which element of the 4Ps is DiJuan addressing?
  1. a.
    Product
  2. b.
    Price
  3. c.
    Promotion
  4. d.
    Place

Answer

D. Place
Place— sometimes known as distribution—involves focusing on how and where to deliver the product to consumers most likely to buy it.

Knowledge Check 1.2.5 §1.2 source ↗

You’re a marketer trying to determine which trade shows you might want to include in your marketing mix. Which element of the marketing mix would address this concern?
  1. a.
    Product
  2. b.
    Price
  3. c.
    Place
  4. d.
    Promotion

Answer

D. Promotion
In the realm of promotion advertising, direct mail, social media communications, trade shows, events, coupons, and media choices are among the many aspects considered.

Knowledge Check 1.3.1 §1.3 source ↗

The extent to which the supply chain adds value to our marketing strategy is best addressed by our evaluation of which of the 5Ms?
  1. a.
    Materials
  2. b.
    Money
  3. c.
    Machinery
  4. d.
    Minutes

Answer

A. Materials
Materials considers the availability of the resources needed for product. It is the element that looks at the supply.

Knowledge Check 1.3.2 §1.3 source ↗

________ consist of third-party sellers such as retailers, wholesalers, and other resellers in the distribution channel.
  1. a.
    Suppliers
  2. b.
    Market intermediaries
  3. c.
    Partners
  4. d.
    Customers

Answer

B. Market intermediaries
Market intermediaries are retailers, wholesalers, and others in the distribution channel who help deliver products to the end user.

Knowledge Check 1.3.3 §1.3 source ↗

If you wanted to fill a gap in the marketplace, you would have to carefully consider ________ to see what is already available on the market.
  1. a.
    the competition
  2. b.
    the customers
  3. c.
    the public
  4. d.
    the resellers

Answer

A. the competition
The competition has to be assessed to see how well and to what degree the need you hope to fulfill is currently being addressed.

Knowledge Check 1.3.4 §1.3 source ↗

Which of the domains of the macroenvironment are most likely to be responsible for cutting-edge innovations?
  1. a.
    Economic
  2. b.
    Technological
  3. c.
    Political and legal
  4. d.
    Social and cultural

Answer

B. Technological
The technological domain is responsible for emerging production technologies as well as the creation of new innovations that make possible new products.

Knowledge Check 1.3.5 §1.3 source ↗

You want to target a market more narrowly than simply using demographic data. You are also considering segmenting on people’s attitudes and interests. Which domain of the macroenvironment is most likely to be a relevant data source for your decision-making?
  1. a.
    Economic factors
  2. b.
    Natural factors
  3. c.
    Political and legal factors
  4. d.
    Social factors

Answer

D. Social factors
The social and cultural domain is concern with such things as social trends, attitudes, and opinions.

Knowledge Check 1.4.1 §1.4 source ↗

The product concept focuses on ________.
  1. a.
    the quality of the product a company intends to sell
  2. b.
    the operations of manufacturing the product a company intends to sell
  3. c.
    the selling strategies a company will use to sell the product
  4. d.
    the needs of the customer

Answer

A. the quality of the product a company intends to sell
The product concept is concerned most with the quality of the product a company intends to sell.

Knowledge Check 1.4.2 §1.4 source ↗

Which of the marketing eras or concepts is most closely related to sustainability and environmental consciousness?
  1. a.
    Production concept
  2. b.
    Marketing concept
  3. c.
    Societal marketing concept
  4. d.
    Sales concept

Answer

C. Societal marketing concept
The societal marketing concept involves meeting consumers’ and businesses’ current needs while simultaneously being aware of the environmental impact of marketing decisions on future generations’ ability to meet their needs.

Knowledge Check 1.4.3 §1.4 source ↗

During which marketing era concept would companies not only produce products but also try to persuade customers through advertising and personal selling to purchase those products?
  1. a.
    Production concept
  2. b.
    Product concept
  3. c.
    Selling concept
  4. d.
    Marketing concept

Answer

C. Selling concept
The goal of the selling concept was simple: beat the competition. Customer needs and satisfaction took a back seat to beating the competition.

Knowledge Check 1.4.4 §1.4 source ↗

Which of the following accurately represents the evolution of marketing?
  1. a.
    Production, product, sales, marketing, societal
  2. b.
    Product, sales, production, marketing, societal
  3. c.
    Marketing, production, sales, societal, product
  4. d.
    Societal, production, sales, marketing, product

Answer

A. Production, product, sales, marketing, societal
This order accurately represents the evolution of marketing.

Knowledge Check 1.4.5 §1.4 source ↗

During the societal marketing concept, ________.
  1. a.
    customers’ wants and needs were first identified as essential
  2. b.
    trustfulness, honesty, and transparency became most important
  3. c.
    promotional efforts to move inventory were essential
  4. d.
    the customer was the focus

Answer

B. trustfulness, honesty, and transparency became most important
During the societal era, it was recognized that society as a whole, had to be considered in all activities.

Knowledge Check 1.5.1 §1.5 source ↗

________ needs are those that provide the “wow” factor in a customer’s purchase.
  1. a.
    Stated
  2. b.
    Real
  3. c.
    Unstated
  4. d.
    Delight

Answer

D. Delight
A delight need is an added value you may get from the seller without prior expectation or request for the same.

Knowledge Check 1.5.2 §1.5 source ↗

In the exchange process, the ________ is the individual who purchases the product or service, and the ________ is the individual who actually uses the product or service.
  1. a.
    buyer; seller
  2. b.
    buyer; customer
  3. c.
    customer; consumer
  4. d.
    consumer, customer

Answer

C. customer; consumer
The customer is the individual or business that purchases the product or service. The consumer is the user of the product or service.

Knowledge Check 1.5.3 §1.5 source ↗

Which of the following terms refers to the promised value of a product or service?
  1. a.
    Valuation
  2. b.
    Value proposal
  3. c.
    Value assessment
  4. d.
    Value proposition

Answer

D. Value proposition
The value that a product promises to deliver is called the value proposition.

Knowledge Check 1.5.4 §1.5 source ↗

________ is/are the benefit(s) to the customer or consumer relative to the cost of the product or service.
  1. a.
    Value
  2. b.
    The exchange process
  3. c.
    Stated needs
  4. d.
    Expectations

Answer

A. Value
The benefit(s) to the customer or consumer relative to the cost is known as value.

Knowledge Check 1.5.5 §1.5 source ↗

Which of the following best describes a satisfactory exchange process?
  1. a.
    One that allows the seller to incur the highest profit possible
  2. b.
    One that allows the buyer to pay the lowest price possible
  3. c.
    One that fairly addresses the needs of both the seller and buyer
  4. d.
    One that is most convenient without regard for either the seller or buyer

Answer

C. One that fairly addresses the needs of both the seller and buyer
The exchange process is designed to allow for the transaction to occur without either party feeling like the other has benefitted at its own cost.

Knowledge Check 1.6.1 §1.6 source ↗

Customer relationship management is accomplished by all of the following EXCEPT ________.
  1. a.
    establishing and tracking customer interactions
  2. b.
    finding ways of improving customer satisfaction from prior customer experiences
  3. c.
    communicating with customers in a personalized way
  4. d.
    offering the lowest price of all the companies on the market

Answer

D. offering the lowest price of all the companies on the market
All the other choices are ways of achieving customer relationship management. Offering the lowest price of all companies on the market is not.

Knowledge Check 1.6.2 §1.6 source ↗

What do you call the process of managing customer information in order to maximize brand loyalty?
  1. a.
    Marketing
  2. b.
    Customer relationship management
  3. c.
    Consumer retention management
  4. d.
    Branding

Answer

B. Customer relationship management
Customer relationship management (CRM) is the means through which companies track, manage, and analyze customer interactions.

Knowledge Check 1.6.3 §1.6 source ↗

An ongoing positive relationship between a customer and a business is known as ________.
  1. a.
    customer equity
  2. b.
    customer loyalty
  3. c.
    customer retention
  4. d.
    customer lifetime value (CLV)

Answer

B. customer loyalty
Customer loyalty is a customer’s willingness to repeatedly return to a company to conduct business.

Knowledge Check 1.6.4 §1.6 source ↗

Which type of customer relationship management (CRM) system would pool data from outside companies and organizations in order to create even better experiences for their customers?
  1. a.
    Customer loyalty programs
  2. b.
    Operational CRM
  3. c.
    Analytical CRM
  4. d.
    Collaborative CRM

Answer

D. Collaborative CRM
Collaborative CRM is sharing customer data with outside companies. It can give the company a fuller perspective on customers by collaborating with other companies in order to obtain data to which it would not otherwise have access.

Knowledge Check 1.6.5 §1.6 source ↗

A program that offers discounts and special incentives designed to attract and retain customers is called a ________.
  1. a.
    customer loyalty program
  2. b.
    sweepstakes
  3. c.
    discount plan
  4. d.
    CRM software

Answer

A. customer loyalty program
A customer loyalty program offers rewards, discounts, and other special incentives designed to attract and retain customers.

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Problems and answers are adapted from Principles of Marketing by Maria Gomez Albrecht, Mark Green and Linda Hoffman, OpenStax, and are used under the CC BY-NC-SA 4.0 licence. Access for free at https://openstax.org/books/principles-marketing/pages/1-unit-introduction. Illustrations: Copyright Rice University, OpenStax, under CC BY-NC-SA 4.0 license. This adaptation is released under the same licence, is non-commercial, and is neither affiliated with nor endorsed by OpenStax or Rice University.