CHAPTER 1: MASTER TEST BANK
CREATING CUSTOMER RELATIONSHIPS AND VALUE THROUGH MARKETING
SHORT ESSAY QUESTIONS
1-231 CHAPTER OPENER: 3M
Explain the market research that David Windorski, 3M inventor, did to develop the Post-it Flag
1-173 CUSTOMER EXPERIENCE
Customer experience refers to
a. the practice of building ties to customers based on a salespersons attention and commitment
to customer needs over time.
b. the links an organization has to its customers for their mutua
1-193 WHAT IS MARKETED?
Organizations such as American Airlines, U.S. Bank, and Red Cross provide customers with
goods that are typically called a(n) _.
Rationale: Effective marketing benefits society. It enhances competition, which improves both
the quality of products and services and lowers their prices. This makes countries more
competitive in world markets and provides jobs and a higher standard of l
b. San Francisco Opera
c. the city of Denver
d. the president of the United States
e. Every organization or individual can engage in marketing to some extent.
Rationale: Every organization and individua
Rationale: Key term definitionproduct.
1-198 WHAT IS MARKETED?
Which answer reflects (in order) a good, a service, and an idea that can be marketed?
a. a candy bar, a wastepaper
Rationale: A service is an intangible item, consisting of airline trips, financial advice, or art
museums like the Hermitage.
1-200 ULTIMATE CONSUMERS
Rationale: Key term definitionultimate consumers.
1-202 ULTIMATE CONSUMERS
What is the marketing term for people, whether they are 80 years or 8 months old, who use
products and services purch
Which of the following is an example of an ultimate consumer?
a. a newspaper reporter who buys a plane ticket to Washington, D.C. to cover the presidential
b. a school teacher who bought a ticket to the Summer Olympics opening ceremonies
Rationale: The value to consumers that comes from the production or alteration of a good or
service constitutes form utility. The multitouch user interface adds an extra benefit to the
iPhone, making the product more valuable to the consumer.
1-214 FORM U
Rationale: Text term definitionideas.
a. consists of the benefits or customer value received by its sellers
1-169 ERAS OF U.S. BUSINESS HISTORY
In Figure 1-5 above, A represents which era in U.S. business history?
a. sales era
b. production era
c. age of consumerism
d. marketing concept era
e. customer relationship era
1-184 SOCIETAL MARKETING CONCEPT
Innovators at 3M developed Scotch-Brite Never Rust Wool Soap Pads from recycled plastic
bottles. Even though these soap pads are more expensive than competitive brands (Brillo and
SOS), customers are willing
Rationale: Text term definitionmacromarketing.
Which of the following is NOT a macromarketing-related issue?
a. determining whether advertising is wasteful
Rationale: Social responsibility is the idea that organizations are accountable to a larger society
for their actions.
1-182 SOCIETAL MARKETING CONCEPT
The societal marketing concept
a. is the
Which of the following statements best distinguishes macromarketing from micromarketing?
a. Macromarketing uses a marketing program while micromarketing does not.
b. Macromarketing is affected by environmental forces but micromarketing is not.
Rationale: As organizations have changed their orientation, societys expectations of marketers
have also changed. Today, the standards of marketing practice have shifted from an emphasis on
d. marketing concept era
e. customer relationship era
Rationale: The sales era covers the period from the 1920s to the 1960s. See Figure 1-5 in the
1-171 ERAS OF U.S. BUSINESS HISTORY
c. the idea that an organization should (1) strive to satisfy the needs of consumers (2) while also
trying to achieve the organizations goals.
d. the idea that individuals and organizations are accountable to a larger society.
e. the recognition of the ne
In 2010, Fortune magazine named Trader Joes Americas hottest retailer for its outstanding
a. customer value proposition
b. relationship marketing
c. customer experience
d. internal marketing
e. customer relationship management
d. any individual or group making a purchase worth over $100,000.
e. any man, woman, or child who uses products purchased for a household.
Rationale: Key term definitionorganizational buyers.
The four utilities marketing creates are
a. product, price, promotion, and place.
b. form, function, value, and people.
c. monopoly, monopolistic competition, pure competition, and oligopoly.
d. form, place, time, and possession.
e. natural gas, fossil fu
Traditionally, many marketing executives have treated these environmental factors as rigid,
absolute constraints that are entirely outside their influence. However, recent studies and
marketing successes have shown that a forward-looking, action-o
1-245 MARKETING MIX (4 Ps)
Imagine you have the sole marketing rights to a new herbal shampoo that stops hair loss and
actually causes new hair growth. You plan to sell your product on an Internet website, which you
will advertise on late nigh
Customer value is the unique combination of benefits received by targeted buyers that includes
quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific
price. Many successful firms have chosen to deliver ou
equipment to transport to the local soccer field for practice. This question offers a good
opportunity for class discussion of the more interesting examples and observations of students.
1-243 TARGET MARKET
activity of a firms marketing department is to scrutinize its consumers to understand what they
need and want and the trends and factors that shape them. However, a key issue is the amount of
freedom given to prospective customers to make their own buying
To serve both buyers and sellers, marketing seeks (1) to discover the needs and wants of
prospective customers and (2) to satisfy them. The key to achieving these two objectives is the
idea of exchange, which is the trade of things of value between buyer
partnerships, and alliances with the organizations customers, its shareholders (or often
representatives of groups served by a nonprofit organization), its suppliers, and other
organizations. Environmental forces such as social, economic, technological, c
There must be a desire and an ability to satisfy those needs. The lenders want to receive a higher
interest rate on their funds and the businesses need short-term loans. The money is available
since the lenders removed it from the state banks. (3) There m