Test your Knowledge

Seagull Terrace offers its customers good accommodations,

local delicacies, and amazing seaside views. The overall
experience provided at the motel is a part of its ________.

■ A) market offering
■ B) target market
■ C) market segment
■ D) product positioning
■ E) marketing mix

Answer: A
In the Study Guide, Vargo & Lusch (2004) are cited as
saying that marketing initially started with a focus on
the distribution and exchange of commodities, they
describe this as being ...

■ a. Marketing orientation
■ b. Product-dominant logic
■ c. Profit-dominant logic
■ d. Marketing-dominant logic
■ e. Goods-dominant logic

Answer: E
 True/ False
The marketing orientation always promotes the customers' best
interests.
■ Answer: False
The marketing mix refers to the set of marketing tools the firm uses
to implement its marketing strategy.
■ Answer: TRUE
■ The meaning of value is perceived identically by all consumers.
■ Answer: FALSE
Marketer A develops a fast food restaurant which provides customers a place to consume
their food and also to socialise. The foods on offer take into account the prevailing culture
and the disposable income of their intended customers.

■ a. This marketer has taken into account customers' social needs, wants and demands.
■ b. This marketer has taken into account customers' physical and social needs, wants and
demands.
■ c. This marketer has taken into account customers' wants and demands.
■ d. The marketer has not taken into account customers social and physical needs, or their
wants and demands.
■ e. This marketer has taken into account customers' physical needs, wants and demands.
■ Answer: B
FedEx offers its customers fast and reliable package delivery. When
FedEx customers weigh these benefits against the monetary cost of
using FedEx along with other costs of using the service, they are
acting upon ________.

■ A) brand loyalty
■ B) customer equity
■ C) customer-perceived value
■ D) customer lifetime value
■ E) a societal marketing campaign

■ Answer: C
Sally recently purchased Brand X lotion. In comparing her perception
of how the lotion made her skin feel and look to her expectations
about Brand X lotion, Sally was measuring her level of ________.

■ A) share of customer
■ B) customer satisfaction
■ C) customer equity
■ D) customer-perceived value
■ E) customer lifetime value

■ Answer: B
Bead Beautiful is a jewelry brand targeted at preteen girls. What
needs do NOT fit with this audience, as the marketing team develops
a value proposition for Bead Beautiful?

■ A) variety of colors in products

■ B) price
■ C) quality of materials
■ D) mature designs
■ E) ease of availability

■ Answer: D
Which of the following refers to a set of benefits that a
company promises to deliver to customers to satisfy their
needs?

■ A) customer lock-in
■ B) a cartel
■ C) marketing mix
■ D) value proposition
■ E) market segmentation
■ Answer: D
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) All customers will directly turn into customer evangelists.
■ D) Not all customers will be satisfied.
■ E) Customers will not show interest in any other company's
products.
■ Answer: D
True/False

The macroenvironment consists of the factors close to the company

that affect its ability to serve its customers, such as suppliers,
customer markets, competitors, and publics.
■ Answer: FALSE

The introduction of new technologies is equally beneficial to all

industries.
■ Answer: FALSE
True/False

A company's marketing environment excludes the forces outside

the marketing department that affect marketing management's
ability to build and maintain successful relationships with target
customers.
■ Answer: FALSE

A business's suppliers are the most important actors in the

company's microenvironment.
■ Answer: FALSE
Sam has been directed to study the demographic, economic, political, and
cultural forces that affect an organization. In this instance, Sam has been
directed to study the ________ of the organization.

■ A) macroenvironment
■ B) microenvironment
■ C) internal environment
■ D) marketing mix
■ E) marketing intermediaries

■ Answer: A
 Companies can succeed against their competitors by all of the following
EXCEPT ________.

■ A) providing greater customer value and satisfaction

■ B) better meeting the needs of target customers
■ C) positioning their offerings strongly against competitors' offerings in the
minds of consumers
■ D) considering their own size and position compared to the competition
■ E) providing the same product as the competition

■ Answer: E
 Marketers can group people in a number of ways, including by birth date.
However, the following combination of groups has proven to be more
effective: ________.

■ A) income, lifestyle, life stage

■ B) profession, common values they seek in products they buy, lifestyle
■ C) lifestyle, life stage, common values they seek in products they buy
■ D) place of residence, life stage, lifestyle
■ E) race or nationality, lifestyle, common values they seek in products they
buy

■ Answer: C
 A value marketer is most likely to ________.

■ A) offer consumers superior quality of goods and services at a very high

price
■ B) offer consumers only those products that are associated with status and
prestige
■ C) offer consumers low quality goods and services at very low prices
■ D) offer consumers a balanced combination of product quality at a fair
price
■ E) deny discounts to consumers to increase profits

■ Answer: D
 As a consequence of the concern for the natural environment, many
companies are developing strategies and practices that support ________.

■ A) government intervention
■ B) environmental sustainability
■ C) deregulation
■ D) mass marketing
■ E) rapid exploitation of natural resources

■ Answer: B
 New technologies most likely lead to ________.

■ A) economic imbalance in society

■ B) reduced exports
■ C) trade deficits
■ D) an increased demand for unskilled labor
■ E) new markets and opportunities

■ Answer: E
 Trends in the natural environment include all of the following EXCEPT
________.

■ A) increased government intervention

■ B) the development of an environmental sustainability movement
■ C) increased pollution
■ D) decreased costs of product development
■ E) shortages of raw materials

■ Answer: D
 Marketers should understand that people's core beliefs and values tend to be
________.

■ A) fixed
■ B) highly flexible
■ C) similar around the world
■ D) constantly and rapidly changing
■ E) easily influenced by secondary beliefs

■ Answer: A